----

|   |   |                                                                                |
|--------|--------|-------------------------------------------------------------------------------------|
| x      |   | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIESEXCHANGE ACT OF 1934 |

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

|                                                           |   |                                 |
|----------------------------------------------------------------|--------|--------------------------------------|
| Nevada                                                         |   | 26-0014658                           |
| (State or other jurisdiction of incorporation or organization) |   | (I.R.S. Employer Identification No.) |

|                           |   |                                   |
|--------------------------------|--------|----------------------------------------|
| Common Stock, $0.001 par value |   | OTCQB                                  |
| (Title of class)               |   | (Name of exchange on which registered) |

----

----

|     | PART I                                                                                                             | Page   |
|----------|--------------------------------------------------------------------------------------------------------------------|--------|
|     |                                                                                                               |   |
| ITEM 1   | Description of Business                                                                                            | 5      |
|     |                                                                                                               |   |
| ITEM 1A. | Risk Factors                                                                                                       | 10     |
|     |                                                                                                               |   |
| ITEM 1B. | Unresolved Staff Comments                                                                                          | 17     |
|     |                                                                                                               |   |
| ITEM 2.  | Properties                                                                                                         | 17     |
|     |                                                                                                               |   |
| ITEM 3.  | Legal Proceedings                                                                                                  | 17     |
|     |                                                                                                               |   |
| ITEM 4.  | [Removed and Reserved]                                                                                             | 18     |
|     |                                                                                                               |   |
|     |                                                                                                               |   |
|     | PART II                                                                                                            |   |
|     |                                                                                                               |   |
| ITEM 5.  | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | 19     |
|     |                                                                                                               |   |
| ITEM 6.  | Selected Financial Data                                                                                            | 20     |
|     |                                                                                                               |   |
| ITEM 7.  | Management’s Discussion and Analysis of Financial Condition and Results of Operations                        | 20     |
|     |                                                                                                               |   |
| ITEM 7A. | Quantitative and Qualitative Disclosures About Market Risk                                                         | 25     |
|     |                                                                                                               |   |
| ITEM 8.  | Financial Statements and Supplementary Data                                                                        | 25     |
|     |                                                                                                               |   |
| ITEM 9.  | Changes In and Disagreements with Accountants on Accounting and Financial Disclosure                               | 25     |
|     |                                                                                                               |   |
| ITEM 9A. | Controls and Procedures                                                                                            | 25     |
|     |                                                                                                               |   |
| ITEM 9B. | Other Information                                                                                                  | 26     |
|     |                                                                                                               |   |
|     |                                                                                                               |   |
|     | PART III                                                                                                           |   |
|     |                                                                                                               |   |
| ITEM 10. | Directors, Executive Officers, and Corporate Governance                                                            | 26     |
|     |                                                                                                               |   |
| ITEM 11. | Executive Compensation                                                                                             | 30     |
|     |                                                                                                               |   |
| ITEM 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters                     | 36     |
|     |                                                                                                               |   |
| ITEM 13. | Certain Relationships and Related Transactions, and Director Independence                                          | 38     |
|     |                                                                                                               |   |
| ITEM 14. | Principal Accountant Fees and Services                                                                             | 40     |
|     |                                                                                                               |   |
| ITEM 15. | Exhibits and Financial Statement Schedules                                                                         | 41     |
|     |                                                                                                               |   |
|     | Signature Page                                                                                                     | 44     |

----

ITEM 1.   DESCRIPTION OF BUSINESS

|   | ● | seven patents covering elements of our technology from the United States Patent and Trademark Office (“USPTO”) |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------|

|   | ● | five European validations of European patent EP 1723180 |
|--------|---------|---------------------------------------------------------|

----

|   | ● | one PCT international patent application                                                                                                                          |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |    |                                                                                                                                                              |
|   | ● | three trademarks issued by the USPTO – “EZ RecoatTM”, “Ecology CoatingsTM” and “Liquid NanotechnologyTM” |
|   |    |                                                                                                                                                              |
|   | ● | 200+ proprietary coatings formulations.                                                                                                                           |

----

| · | The substitution of lower cost paper instead of expensive and non-recyclable plastic.  EcoQuickTM coated paper can replace polymer laminates on paper, labels and packaging.           |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · | High speed curing – seconds, not minutes - compatible with high speed print operations e.g. 400 feet per minute for use on flexographic, digital and gravure printed labels and packaging. |
| · | Barrier protection – revolutionary thin film properties with tremendous resistance to water, gas and chemical barriers and low oxygen transmission.                                             |
| · | Nanotechnology-enhanced formulations provide coating performance including superior adhesion and abrasion resistance.                                                                                 |

| · | The UV curing process uses 80 percent less energy, reduces manufacturing floor space needs by up to 80 percent, and eliminates curing bottlenecks.                                                |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · | High speed curing – seconds compared to minutes for heat-cured solvent-based and powder coatings.                                                                                           |
| · | Barrier protection –Unique thin film properties such as water and chemical resistance, and low oxygen transmission reducing corrosion.                                                      |
| · | EcoBlocTM enhanced formulations provide unique coating performance including superior adhesion to difficult-to-adhere-to metals with improved scratch resistance.                            |
| · | Increases manufacturing productivity since UV curing uses no heat; so complex products containing metal parts with rubber gaskets do not need to be disassembled prior to the coating and curing. |
| · | Reduces and/or eliminates EPA compliance burden and cost.                                                                                                                                         |

----

|   | • |   | Attendance and technical presentations at industry trade shows and conventions;                                                                                                              |
|--------|---------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |    |   |                                                                                                                                                                                         |
|   | • |   | Internal and external sales forces, with a force of industry-specific sales people who will identify, call upon and build ongoing relationships with key purchasers and targeted industries; |
|   |    |   |                                                                                                                                                                                         |
|   | • |   | Fostering joint development agreements and other research arrangements with industry leaders and third party consortiums;                                                                    |
|   |    |   |                                                                                                                                                                                         |
|   | • |   | Print advertising in journals with specialized industry focus;                                                                                                                               |
|   |    |   |                                                                                                                                                                                         |
|   | • |   | Web advertising, including supportive search engines and Web site registration with appropriate sourcing entities;                                                                           |
|   |    |   |                                                                                                                                                                                         |
|   | • |   | Public relations, industry-specific venues, as well as general media, to create awareness of us and our products. This will include membership in appropriate trade organizations; and       |
|   |    |   |                                                                                                                                                                                         |
|   | • |   | Brand identification through trade names associated with us and our products.                                                                                                                |

----

|   | · | Seven patents covering elements of our technology from the United States Patent and Trademark Office (“USPTO”) |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------|

|   | · | Five European validations of European patent EP 1723180. |
|--------|--------|----------------------------------------------------------|

|   | · | One PCT international patent application |
|--------|--------|------------------------------------------|

|   | · | Three trademarks issued by the USPTO – “EZ RecoatTM”, “Ecology CoatingsTM” and “Liquid NanotechnologyTM” |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | 200+ coatings formulations. |
|--------|--------|-----------------------------|

----

ITEM 1A.  RISK FACTORS

----

----

----

----

----

----

----

ITEM 1B. UNRESOLVED STAFF COMMENTS

ITEM 2. PROPERTIES

ITEM 3.  LEGAL PROCEEDINGS

----

ITEM 4. [Removed and Reserved]

----

|    |   |                                                                                                               |
|---------|--------|--------------------------------------------------------------------------------------------------------------------|
| ITEM 5. |   | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |

|                                 | High Close |   | Low Close |
|--------------------------------------|------------|--------|-----------|
|                                 |       |   |      |
| Fiscal Year Ended September 30, 2011 |       |   |      |
| 1st Quarter                          | $.09       |   | $.01      |
| 2nd Quarter                          | $.08       |   | $.04      |
| 3rd Quarter                          | $.20       |   | $.10      |
| 4th Quarter                          | $.51       |   | $.02      |
|                                 |       |   |      |
| Fiscal Year Ended September 30, 2010 |       |   |      |
| 1st Quarter                          | $.49       |   | $.21      |
| 2nd Quarter                          | $.28       |   | $.15      |
| 3rd Quarter                          | $.18       |   | $.09      |
| 4th Quarter                          | $.09       |   | $.04      |

|                                                   | Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights | Weighted Average Exercise Price of Outstanding Options, Warrants and Rights | Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans |
|--------------------------------------------------------|---------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------|----------------------------------------------------------------------------------------------|
|                                                   |                                                                                        |                                                                        |                                                                                         |
| Equity compensation plans approved by security holders | 5,351,180                                                                                   | $.79                                                                        | 148,820                                                                                      |
|                                                   |                                                                                        |                                                                        |                                                                                         |

----

|               |       | Number of                                                 |                    | Conversion                                                                               |
|--------------------|------------|-----------------------------------------------------------|-------------------------|------------------------------------------------------------------------------------------|
| Issued to          | Issue Date | Preferred Shares                                          | Price                   | Price (1)                                                                                |
| Fairmount Five     | 2/28/2011  |       350                        | $ 1,000                 |  $           0.06            |
| John Bonner        | 3/3/2011   |        120             |    1,000 |               0.06 |
| Fairmount Five     | 3/4/2011   |         475       |    1,000 |               0.06 |
| Fairmount Five     | 3/9/2011   |         220       |    1,000 |               0.06 |
| Fairmount Five     | 4/12/2011  |         100       |    1,000 |               0.06 |
| Fairmount Five     | 5/9/2011   |          100 |    1,000 |               0.06 |
| Fairmount Five     | 5/31/2011  |          100 |    1,000 |               0.06 |
| Fairmount Dividend | 6/1/2011   |        14              |    1,000 |               0.06 |
| Bonner Dividend    | 6/1/2011   |         2         |    1,000 |               0.06 |
| Fairmount Five     | 6/29/2011  |          100 |    1,000 |               0.06 |
| Fairmount Five     | 7/26/2011  |          100 |    1,000 |               0.06 |
| Fairmount Five     | 8/26/2011  |          100 |    1,000 |               0.06 |
| Fairmount Five     | 9/23/2011  |          100 |    1,000 |               0.06 |

| (1)   | Each share is convertible into shares of common stock at $.06 per share. |
|-----------------|--------------------------------------------------------------------------|

ITEM 6  SELECTED FINANCIAL DATA

|   | Not applicable since we are a smaller reporting company as defined under the applicable SEC rules. |
|--------|----------------------------------------------------------------------------------------------------|

ITEM 7  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

----

| ·   | The elimination of consulting contracts that cost approximately $221,000 in the fiscal year ended September 30, 2010. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------|

| ·   | A decrease of approximately $25,000 in reimbursed expenses to consultants. |
|--------------------|----------------------------------------------------------------------------|

| ·   | These decreases were partially offset by an increase in legal fees of approximately $29,000 associated with advice to our Board of Directors regarding additional investment, our 2011 shareholder meeting, and our reverse stock split. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | An increase of approximately $310,000 in non-cash compensation option expense associated with the issuance of employee options in April 2011. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Approximately $68,000 in salary and benefits paid to new sales and laboratory employees starting in April 2011. |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

| ·   | $20,000 paid in directors fees in 2011. |
|--------------------|-----------------------------------------|

----

----

|                           |   |   |      |   |             |   |      |      |   |   |      |   |   |          |   |   |   |   |   |   |
|--------------------------------|--------|--------|-----------|--------|------------------|--------|-----------|-----------|--------|--------|-----------|--------|--------|---------------|--------|--------|--------|--------|--------|--------|
| Contractual                    |   |   |      |   |             |   |      |      |   |   |      |   |   |          |   |
| Obligations                    |   | Total  |      |   | Less Than 1 Year |   |      | 1-3 Years |   |   | 4-5 Years |   |   | After 5 Years |   |
| Notes Payable                  |   | $      | 1,150,332 |   |             | $      | 1,150,332 |      |   | $      | -         |   |   | $             | -      |   |   | $      | -      |   |
|                           |   |   |      |   |             |   |      |      |   |   |      |   |   |          |   |   |   |   |   |   |
| Interest on notes payable      |   |   | 405,274   |   |             |   | 405,274   |      |   |   | -         |   |   |          | -      |   |   |   | -      |   |
| Contractual Service Agreements |   |   | 433,333   |   |             |   | 433,333   |      |   |   | -         |   |   |          | -      |   |   |   | -      |   |
| Office Leases                  |   |   | 14,000    |   |             |   | 14,000    |      |   |   | -         |   |   |          | -      |   |   |   | -      |   |
| Equipment Leases               |   |   | -         |   |             |   | -         |      |   |   | -         |   |   |          | -      |   |   |   | -      |   |
|                           |   |   |      |   |             |   |      |      |   |   |      |   |   |          |   |
| Total Contractual Obligations  |   | $      | 2,002,939 |   |             | $      | 2,002,939 |      |   | $      | -         |   |   | $             | -      |   |   | $      | -      |   |
|                           |   |   |      |   |             |   |      |      |   |   |      |   |   |          |   |

----

| Contract ServiceProvider | Purpose                 | Monthly Amount | Expiration |    | Less Than1 Year | 1-3Years | 4-5Years | After 5Years | Total |
|--------------------------|-------------------------|----------------|------------|---------|-----------------|----------|----------|--------------|-------|
|                     |                    |           |       |    |            |     |     |         |
| J.M. Land Company        | Warren, MI Headquarters | $              | 4/17/12    | $14,000 |            |     |     | $14,000      |

|                   |   |            |
|------------------------|--------|-----------------|
| Computer equipment     |   | 3-10 years |
| Furniture and fixtures |   | 3-7 years  |
| Test equipment         |   | 5-7 years  |
| Software               |   | 3 years    |

----

ITEM 7A.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 8  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

ITEM 9  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

ITEM 9A  CONTROALS AND PROCEDURES

----

ITEM 9B  OTHER INFORMATION

ITEM 10  DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

| Name                                   | Age | Position                                                    |
|----------------------------------------|-----|-------------------------------------------------------------|
| James Juliano                          | 58  | Chairman                                                    |
| Joe Nirta                              | 48  | Director                                                    |
| James Orchard                          | 61  | Director                                                    |
| Sally Ramsey                           | 58  | Director and Vice President – New Product Development |
| Nick DeMiro                            | 45  | Director                                                    |
| John M. (“Pete”) Salpietra | 57  | Director                                                    |
| Bob Crockett                           | 53  | Chief Executive Officer                                     |
| F. Thomas Krotine                      | 70  | Vice President – Business Development                 |
| Daniel V. Iannotti                     | 56  | Vice President, General Counsel & Secretary             |
| Kevin Stolz                            | 48  | CFO, Controller and Chief Accounting Officer                |

----

----

----

----

ITEM 11. EXECUTIVE COMPENSATION

|   |          |                                                                                                                |
|--------|---------------|---------------------------------------------------------------------------------------------------------------------|
|   | •  | attract and retain talented and experienced executives in the coatings industry;                                    |
|   |          |                                                                                                                |
|   | •  | motivate and fairly reward executives whose knowledge, skills and performance are critical to our success; and |
|   |          |                                                                                                                |
|   | •  | provide fair and competitive compensation.                                                                          |

----

|               |                       | Current     |
|--------------------|----------------------------|-------------|
|               |                       | Annual      |
| Name               | Title                      | Salary      |
| Robert G. Crockett | CEO                        | $200,000(1) |
| Daniel Iannotti    | VP, General Counsel        | $100,000    |
| Sally Ramsey       | VP-New Product Development | $100,000(2) |
| Tom Krotine        | VP-Business Development    | $100,000(3) |
| Kevin Stolz        | CFO                        | $42,000(4)  |
|               |                       |        |

| (1)   | Beginning on May 15, 2010 and continuing through April 30, 2011, Mr. Crockett deferred $6,666.67 of his monthly salary. As of 9/30/11, Mr. Crockett had deferred $40,000 of his salary. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Ms. Ramsey’s salary was increased from $60,000 on May 1, 2011 to $100,000. |
|-----------------|----------------------------------------------------------------------------------|

| (3)   | Mr. Krotine’s salary increased from $65,000 to $100,000 on May 1, 2011. |
|-----------------|-------------------------------------------------------------------------------|

| (4)   | Mr. Stolz’s salary has been  $42,000 per year since September 1, 2009. |
|-----------------|----------------------------------------------------------------------------------------|

----

----

|                                   |   |   |   |   |   |   |     |   |   |   |         |   |   |          |   |   | All Other    |   |     |   |   |
|----------------------------------------|--------|--------|--------|--------|--------|--------|----------|--------|--------|--------|--------------|--------|--------|---------------|--------|--------|--------------|--------|----------|--------|--------|
|                                   |   | Fiscal |   |   | Salary |   |     | Bonus  |   |   | Stock Awards |   |   | Option Awards |   |   | Compensation |   |     | Total  |   |
| Name and Principal Position            |   | Year   |   |   | ($)    |   |     | ($)    |   |   | ($)          |   |   | ($)(1)        |   |   | ($)(2)       |   |     | ($)    |   |
|                                   |   |   |   |   |   |   |     |   |   |   |         |   |   |          |   |   |         |   |     |   |   |   |   |   |   |   |   |   |
| Robert G. Crockett                     |   |   | 2011   |   |   |   | $200,000 |   |   |   | -0-          |   |   |          |   |   |         |   | $352,920 |   |   |   | $11,298 |   |   |   | $564,218 |   |
| CEO                                    |   |   | 2010   |   |   |   | $200,000 |   |   |   | -0-          |   |   |          | -0-    |   |         |   | $-0-     |   |   |   | $22,023 |   |   |   | $22,023 |   |
|                                   |   |   | 2009   |   |   |   | $200,000 |   |   |   | -0-          |   |   |          | -0-    |   |         |   | $411,867 |   |   |   | $21,261 |   |   |   | $633,128 |   |
|                                   |   |   |   |   |   |   |     |   |   |   |         |   |   |          |   |   |         |   |     |   |   |   |   |   |   |   |   |   |
|                                   |   |   |   |   |   |   |     |   |   |   |         |   |   |          |   |   |         |   |     |   |   |   |   |   |   |   |   |   |
| Daniel V. Iannotti                     |   |   | 2011   |   |   |   | $100,000 |   |   |   | -0-          |   |   |          | -0-    |   |         |   | $58,820  |   |   |   | $11,364 |   |   |   | $170,184 |   |
| VP, General Counsel & Secretary    |   |   | 2010   |   |   |   | $105,875 |   |   |   | -0-          |   |   |          | -0-    |   |         |   | $-0-     |   |   |   | $17,388 |   |   |   | $123,263 |   |
|                                   |   |   | 2009   |   |   |   | $115,000 |   |   |   | -0-          |   |   |          | -0-    |   |         |   | $280,264 |   |   |   | $17,015 |   |   |   | $412,279 |   |
|                                   |   |   |   |   |   |   |     |   |   |   |         |   |   |          |   |   |         |   |     |   |   |   |   |   |   |   |   |   |
|                                   |   |   |   |   |   |   |     |   |   |   |         |   |   |          |   |   |         |   |     |   |   |   |   |   |   |   |   |   |
| Sally Ramsey                           |   |   | 2011   |   |   |   | $85,417  |   |   |   | -0-          |   |   |          | -0-    |   |         |   | $411,740 |   |   |   | $11,364 |   |   |   | $508,521 |   |
| Vice President New Product Development |   |   | 2010   |   |   |   | $73,750  |   |   |   | -0-          |   |   |          | -0-    |   |         |   | -0-      |   |   |   | $17,388 |   |   |   | $91,588 |   |
|                                   |   |   | 2009   |   |   |   | $89,167  |   |   |   | -0-          |   |   |          | -0-    |   |         |   | -0-      |   |   |   | $17,265 |   |   |   | $106,432 |   |
|                                   |   |   |   |   |   |   |     |   |   |   |         |   |   |          |   |   |         |   |     |   |   |   |   |   |   |   |   |   |
|                                   |   |   |   |   |   |   |     |   |   |   |         |   |   |          |   |   |         |   |     |   |   |   |   |   |   |   |   |   |
| F. Thomas Krotine                      |   |   | 2011   |   |   |   | $79,583  |   |   |   | -0-          |   |   |          | -0-    |   |         |   | $58,820  |   |   |   | $5,296 |   |   |   | $138,999 |   |
| Vice President Business Development    |   |   | 2010   |   |   |   | $63,583  |   |   |   | -0-          |   |   |          | -0-    |   |         |   | -0-      |   |   |   | $6,170 |   |   |   | $69,753 |   |
|                                   |   |   | 2009   |   |   |   | $50,667  |   |   |   | -0-          |   |   |          | -0-    |   |         |   | $104,288 |   |   |   | $8,873 |   |   |   | $163,828 |   |
|                                   |   |   |   |   |   |   |     |   |   |   |         |   |   |          |   |   |         |   |     |   |   |   |   |   |   |   |   |   |
|                                   |   |   |   |   |   |   |     |   |   |   |         |   |   |          |   |   |         |   |     |   |   |   |   |   |   |   |   |   |
| Kevin P. Stolz                         |   |   | 2011   |   |   |   | $42,000  |   |   |   | -0-          |   |   |          | -0-    |   |         |   | $9,803   |   |   |   | $14,205 |   |   |   | $66,008 |   |
| Chief Financial Officer                |   |   | 2010   |   |   |   | $42,000  |   |   |   | -0-          |   |   |          | -0-    |   |         |   | -0-      |   |   |   | $12,698 |   |   |   | $54,698 |   |
|                                   |   |   | 2009   |   |   |   | $67,667  |   |   |   | -0-          |   |   |          | -0-    |   |         |   | $18,304  |   |   |   | $22,438 |   |   |   | $108,409 |   |
|                                   |   |   |   |   |   |   |     |   |   |   |         |   |   |          |   |   |         |   |     |   |   |   |   |   |   |   |   |   |

|   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|

| (1)    |   |  Represents the grant date fair value of the award, calculated in accordance with ASC 718. A summary of the assumptions made in the valuation of these awards is provided under Notes 1 and 7 to our financial statements. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                      |
| (2)    |   |  Represents medical insurance premiums paid on behalf of the executives shown as well as health care deductible reimbursements.                                                                                                      |

----

| Name (a)          | Grant Date (b) | Estimated Future Payouts Under Non-Equity Incentive Plan Awards | Estimated Future Payouts Under Equity Incentive Plan Awards | All Other Stock Awards: Number of Shares of Stocks or Units (#)(i) | All Other Option Awards: Number of Securities Underlying Options(#) (j) | Exercise or Base Price of Option Awards($/Share)(k) | Grant Date Fair Value of Stock and Option Awards(l) |
|------------------------|---------------------|-----------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------------------|------------------------------------------------------------------------------|-----------------------------------------------------|-----------------------------------------------------|
| Threshold ($) (c) | Target($)(d)        | Max. ($)(e)                                                     | Threshold(#)(f)                                             | Target(#)(g)                                                            | Max(#) (h)                                                              |                                                |                                                |   |   |   |
|                   |                |                                                            |                                                        |                                                                    |                                                                         |                                                |                                                |   |   |   |   |   |
| Robert Crockett        |  4/28/11       |                                                            |                                                        |                                                                    |                                                                         |                                                |                                                |   |  1,800,000 |  .20 |  $352,920 |   |
|                   |                |                                                            |                                                        |                                                                    |                                                                         |                                                |                                                |   |   |   |   |   |
| Daniel Iannotti        |  4/28/11       |                                                            |                                                        |                                                                    |                                                                         |                                                |                                                |   |  300,000 |  .20 |  $58,820 |   |
|                   |                |                                                            |                                                        |                                                                    |                                                                         |                                                |                                                |   |   |   |   |   |
| Kevin Stolz            |  4/28/11       |                                                            |                                                        |                                                                    |                                                                         |                                                |                                                |   |  50,000 |  .20 |  $9,803 |   |
|                   |                |                                                            |                                                        |                                                                    |                                                                         |                                                |                                                |   |   |   |   |   |
| Sally Ramsey           |  4/28/11       |                                                            |                                                        |                                                                    |                                                                         |                                                |                                                |   |  2,100,000 |  .20 |  $411,740 |   |
|                   |                |                                                            |                                                        |                                                                    |                                                                         |                                                |                                                |   |   |   |   |   |
| Thomas Krotine         |  4/28/11       |                                                            |                                                        |                                                                    |                                                                         |                                                |                                                |   |  300,000 |  .20 |  $58,820 |   |

----

|               |   |          |      |   |          |   |    |           |   |   |            |   |   |                |    |   |               |   |   |   |   |   |   |   |   |
|--------------------|--------|---------------|-----------|--------|---------------|--------|---------|----------------|--------|--------|-----------------|--------|--------|---------------------|---------|--------|--------------------|--------|--------|--------|--------|--------|--------|--------|--------|
|               |   | Option Awards |      |   | Stock Awards  |   |
|               |   | Number of     |      |   | Number of     |   |    |           |   |   |            |   |   |                |    |   |               |   |
|               |   | Securities    |      |   | Securities    |   |    |           |   |   |            |   |   |                |    |   |               |   |
|               |   | Underlying    |      |   | Underlying    |   |    |           |   |   |            |   |   |                |    |   | Market Value of    |   |
|               |   | Unexercised   |      |   | Unexercised   |   |    |           |   |   |            |   |   | Number of Shares or |    |   | Shares or Units of |   |
|               |   | Options       |      |   | Options       |   |    | Option         |   |   |            |   |   | Units of Stock That |    |   | Stock That         |   |
|               |   | (#)           |      |   | (#)           |   |    | Exercise Price |   |   | Option          |   |   | Have Not Vested     |    |   | Have Not Vested    |   |
| Name               |   | Exercisable   |      |   | Unexercisable |   |    | ($)            |   |   | Expiration Date |   |   | (#)                 |    |   | ($)(1)             |   |
|               |   |          |      |   |          |   |    |           |   |   |            |   |   |                |    |   |               |   |   |   |   |   |   |   |
| Robert G. Crockett |   |          | -0-       |   |          |   | 600,000 |           |   |   | .20             |   |   |                | 4/28/21 |   |               |   | -      |   |   |   | -      |   |
|               |   |          | -0-       |   |          |   | 600,000 |           |   |   | .20             |   |   |                | 4/28/21 |   |               |   | -      |   |   |   | -      |   |
|               |   |          | -0-       |   |          |   | 600,000 |           |   |   |  .20       |   |   |                | 4/28/21 |   |               |   | -      |   |   |   | -      |   |
|               |   |          |      |   |          |   |    |           |   |   |            |   |   |                |    |   |               |   |   |   |   |   |   |   |
| Daniel Iannotti    |   |          | -0-       |   |          |   | 100,000 |           |   |   | .20             |   |   |                | 4/28/21 |   |               |   | -      |   |   |   | -      |   |
|               |   |          | -0-       |   |          |   | 100,000 |           |   |   | .20             |   |   |                | 4/28/21 |   |               |   | -      |   |   |   | -      |   |
|               |   |          | -0-       |   |          |   | 100,000 |           |   |   | .20             |   |   |                | 4/28/21 |   |               |   | -      |   |   |   | -      |   |
|               |   |          |      |   |          |   |    |           |   |   |            |   |   |                |    |   |               |   |   |   |   |   |   |   |
|               |   |          |      |   |          |   |    |           |   |   |            |   |   |                |    |   |               |   |   |   |   |   |   |   |
| Sally Ramsey       |   |          | 2,100,000 |   |          |   | 0       |           |   |   | .20             |   |   |                | 4/28/21 |   |               |   |   |   |   |   |   |   |
|               |   |          |      |   |          |   |    |           |   |   |            |   |   |                |    |   |               |   |   |   |   |   |   |   |
|               |   |          |      |   |          |   |    |           |   |   |            |   |   |                |    |   |               |   |   |   |   |   |   |   |
| F. Thomas Krotine  |   |          | -0-       |   |          |   | 100,000 |           |   |   | .20             |   |   |                | 4/28/21 |   |               |   | -      |   |   |   | -      |   |
|               |   |          | -0-       |   |          |   | 100,000 |           |   |   | .20             |   |   |                | 4/28/21 |   |               |   | -      |   |   |   | -      |   |
|               |   |          | -0-       |   |          |   | 100,000 |           |   |   | .20             |   |   |                | 4/28/21 |   |               |   | -      |   |   |   | -      |   |
|               |   |          |      |   |          |   |    |           |   |   |            |   |   |                |    |   |               |   |   |   |   |   |   |   |
|               |   |          |      |   |          |   |    |           |   |   |            |   |   |                |    |   |               |   |   |   |   |   |   |   |
| Kevin P. Stolz     |   |          | -0-       |   |          |   | 16,667  |           |   |   | .20             |   |   |                | 4/28/21 |   |               |   |   |   |   |   |   |   |
|               |   |          | -0-       |   |          |   | 16,667  |           |   |   | .20             |   |   |                | 4/28/21 |   |               |   |   |   |   |   |   |   |
|               |   |          | -0-       |   |          |   | 16,666  |           |   |   | .20             |   |   |                | 4/28/21 |   |               |   |   |   |   |   |   |   |

|              |   | Option Awards |   |   | Stock Awards |   |
|-------------------|--------|---------------|--------|--------|--------------|--------|
|              |   | Number of     |   |   | Value        |   |   | Number of |   |   | Value |   |
|              |   | Shares        |   |   | Realized     |   |   | Shares |   |   | Realized |   |
|              |   | Acquired      |   |   | On           |   |   | Acquired |   |   | on |   |
|              |   | on Exercise   |   |   | Exercise     |   |   | on |   |   | Vesting |   |
| Name              |   | (#)           |   |   | ($)          |   |   | Vesting (#) |   |   | ($) |   |
|              |   |          |   |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Robert Crockett   |   |          | -      |   |         |   | - |   |   |   | - |   |   |   | - |   |
|              |   |          |   |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Daniel Iannotti   |   |          | -      |   |         |   | - |   |   |   | - |   |   |   | - |   |
|              |   |          |   |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Sally Ramsey      |   |          | -      |   |         |   | - |   |   |   | - |   |   |   | - |   |
|              |   |          |   |   |         |   |   |   |   |   |   |   |   |   |   |   |
|              |   |          |   |   |         |   |   |   |   |   |   |   |   |   |   |   |
| F. Thomas Krotine |   |          | -      |   |         |   | - |   |   |   | - |   |   |   | - |   |
|              |   |          |   |   |         |   |   |   |   |   |   |   |   |   |   |   |
|              |   |          |   |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Kevin P. Stolz    |   |          | -      |   |         |   | - |   |   |   | - |   |   |   | - |   |
|              |   |          |   |   |         |   |   |   |   |   |   |   |   |   |   |   |

----

| Name              | Fees Earned or Paid in Cash($)(1) | Stock Awards | Option Awards($) (1) | Non-Equity Incentive Plan compensation($) | Nonqualified Deferred Compensation Earnings($) | All Other Compensation($) | Total Compensation($) |
|-------------------|-----------------------------------|--------------|----------------------|-------------------------------------------|------------------------------------------------|---------------------------|-----------------------|
| James Juliano     | $20,000                           | -            | $3,921               | -                                         | -                                              | -                         | $ 23,921              |
| Joseph Nirta      | -                                 | $ 3,921      | -                    | -                                         | -                                              | -                         | $3,921                |
| James Orchard     | -                                 | -            | $19,607              | -                                         | -                                              | -                         | $19,607               |
| Nick DeMiro(2)    | -                                 | -            | $19,607              | -                                         | -                                              | -                         | $19,607               |
| John Salpietra(3) | -                                 | -            | $3,921               | -                                         | -                                              | -                         | $3,921                |

| (1)   | Represents the grant date fair value of the award, calculated in accordance with ASC 718.  A summary of the assumptions made in the valuation of these awards is provided under Note A to our financial statements. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | On March 24, 2011, Mr. DeMiro was appointed as a member of our Board of Directors.   |
|-----------------|------------------------------------------------------------------------------------------------|

| (3)   | On March 24, 2011, Mr. Salpietra was appointed as a member of our Board of Directors. |
|-----------------|---------------------------------------------------------------------------------------|

ITEM 12  SECURITY OWENERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

----

|                                                              |   | Amount and    |        |   |       |
|-------------------------------------------------------------------|--------|---------------|-------------|--------|------------|
|                                                              |   | Nature        |        |   |       |
|                                                              |   | of Beneficial |        |   |       |
| Name and Address of Beneficial Owner(1)                           |   | Ownership     |        |   | Percentage |
|                                                              |   |          |        |   |       |   |   |
| James Juliano/Fairmount Five/Equity 11, Ltd.(2)                   |   |          | 34,269,620  |   |       |   | 73.4% |
| 24663 Mound RoadWarren, MI  48091                       |   |          |        |   |       |   |   |
|                                                              |   |          |        |   |       |   |   |
| Sally Ramsey(3)                                                   |   |          | 2,700,000   |   |       |   | 5.8% |
| 1238 Brittain RoadAkron, OH  44310                      |   |          |        |   |       |   |   |
|                                                              |   |          |        |   |       |   |   |
| Richard Stromback(4)                                              |   |          | 2,361,381   |   |       |   | 5.1% |
| 1050 NorthoverBloomfield Hills, MI  48304               |   |          |        |   |       |   |   |
|                                                              |   |          |        |   |       |   |   |
| John Bonner43230 Garfield Rd Ste 160Clinton Township, MI 48038    |   |          | 2,024,284   |   |       |   | 4.3% |
|                                                              |   |          |        |   |       |   |   |
| Doug Stromback                                                    |   |          | 600,000     |   |       |   | 1.3% |
| 2000 DelawareRedford, MI  48240                         |   |          |        |   |       |   |   |
|                                                              |   |          |        |   |       |   |   |
| Deanna Stromback                                                  |   |          | 600,000     |   |       |   | 1.3% |
| 2000 DelawareRedford, MI  48240                         |   |          |        |   |       |   |   |
|                                                              |   |          |        |   |       |   |   |
| Joseph Nirta(2)                                                   |   |          | -0-         |   |       |   |   |
| 5600 Orion RoadRochester, MI  48306                     |   |          |        |   |       |   |   |
|                                                              |   |          |        |   |       |   |   |
| James Orchard                                                     |   |          | -0-         |   |       |   |   |
| 24663 Mound RoadWarren, MI  48091                       |   |          |        |   |       |   |   |
|                                                              |   |          |        |   |       |   |   |
| Nick DeMiro                                                       |   |          | -0-    |   |       |   |   |
| 24663 Mound RoadWarren, MI  48091                       |   |          |        |   |       |   |   |
|                                                              |   |          |        |   |       |   |   |
| John M. (“Pete”) Salpietra                            |   |          |        |   |       |   |   |
| 24663 Mound Road                                                  |   |          |        |   |       |   |   |
| Warren, MI 48091                                                  |   |          |        |   |       |   |   |
|                                                              |   |          |        |   |       |   |   |
| Robert Crockett                                                   |   |          | -0-    |   |       |   |   |
| 24663 Mound RoadWarren, MI  48091                       |   |          |        |   |       |   |   |
|                                                              |   |          |        |   |       |   |   |
| F. Thomas Krotine                                                 |   |          | 2,000  |   |       |   | * |
| 1238 Brittain RoadAkron, OH  44310                      |   |          |        |   |       |   |   |
|                                                              |   |          |        |   |       |   |   |
| Daniel Iannotti                                                   |   |          |        |   |       |   |   |
| 24663 Mound RoadWarren, MI  48091                       |   |          |        |   |       |   |   |
|                                                              |   |          |        |   |       |   |   |
| Kevin Stolz                                                       |   |          |        |   |       |   |   |
| 24663 Mound RoadWarren, MI  48091                       |   |          |        |   |       |   |   |
|                                                              |   |          |        |   |       |   |   |
| All executive officers and directors as a group (10 persons) |   |          | 42,557,285  |   |       |   | 91.2% |

----

ITEM 13  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, DIRECTOR INDEPENDENCE

| Outstanding Principal Balance on 9/30/2011 | Outstanding Principal Balance on 9/30/2010 | Accrued Interest on 9/30/2011 | Accrued Interest on 9/30/2010 |
|--------------------------------------------|--------------------------------------------|-------------------------------|-------------------------------|
|                                       |                                       |                          |                          |
| $7,716                                     | $7,716                                     | $913                          | $494                          |
| $6,500                                     | $6,500                                     | $699                          | $350                          |
| $3,600                                     | $3,600                                     | $343                          | $152                          |
| $3,516                                     | $3,516                                     | $282                          | $98                           |
| $5,000                                     | $5,000                                     | $387                          | $125                          |
| $6,500                                     | $6,500                                     | $496                          | $157                          |

----

----

ITEM 14.  PRINCIPAL ACCOUNTANT FEES AND SERVICES

|               |                             |   |   |   |   |   |   |   |
|--------------------|----------------------------------|--------|--------|--------|--------|--------|--------|--------|
|               | For the Year Ended September 30, |   |
|               | 2011                             |   | 2010   |   |   |   |   |
|               |                             |   |   |   |   |   |   |   |
| Audit Fees         | $61,900                          |   | $      | 61,900 |   |   |   |
|               |                             |   |   |   |   |   |   |
| Audit Related Fees | -0-                              |   |   | 11,500 |   |   |   |
|               |                             |   |   |   |   |   |   |
| Tax Fees           | 14,385                           |   |   | 3,450  |   |   |   |
|               |                             |   |   |   |   |   |   |
| All Other Fees     | -0-                              |   |   | -0-    |   |   |   |
|               |                             |   |   |   |   |   |   |
| Total Fees         | $76,285                          |   | $      | 76,450 |   |   |   |

----

ITEM 15.  EXHIBITS

| (a)   | Financial Statements |
|-----------------|----------------------|

CONSOLIDATED BALANCE SHEETS - ASSETS

CONSOLIDATED BALANCE SHEETS – LIABILITIES AND STOCKHOLDERS’ DEFICIT

CONSOLIDATED STATEMENTS OF OPERATIONS

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT)

CONSOLIDATED STATEMENTS OF CASH FLOWS

----

| (b)   | Exhibits |
|-----------------|----------|

| ExhibitNumber | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.1           | Agreement and Plan of Merger entered into effective as of April 30, 2007, by and among OCIS Corp., a Nevada corporation, OCIS-EC, INC., a Nevada corporation and a wholly-owned subsidiary of OCIS, Jeff W. Holmes, R. Kirk Blosch and Brent W. Schlesinger and ECOLOGY COATINGS, INC., a California corporation, and Richard D. Stromback, Deanna Stromback and Douglas Stromback. (1)                                                                                                                                                                                                                      |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 3.2           | Amended and Restated Articles of Incorporation of Ecology Coatings, Inc., a Nevada corporation.(1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 3.3*          | By-laws.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 4.1           | Form of Common Stock Certificate. (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.1          | Promissory Note between Ecology Coatings, Inc., a California corporation, and Richard D. Stromback, dated November 13, 2003. (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.2          | Promissory Note between Ecology Coatings, Inc., a California corporation, and Deanna Stromback, dated December 15, 2003. (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.3          | Promissory Note between Ecology Coatings, Inc., a California corporation, and Douglas Stromback, dated August 10, 2004. (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.4          | Employment Agreement between Ecology Coatings, Inc., a California corporation and Sally J.W. Ramsey dated January 1, 2007. (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.5          | License Agreement with E.I. Du Pont De Nemours and Ecology Coatings, Inc., a California corporation, dated November 8, 2004. (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.6          | License Agreement between Ecology Coatings, Inc., a California corporation and Red Spot Paint & Varnish Co., Inc., dated May 6, 2005. (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.7          | Lease for laboratory space located at 1238 Brittain Road, Akron, Ohio  44310. (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.8          | 2007 Stock Option and Restricted Stock Plan. (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.9          | Form of Stock Option Agreement.  (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.10         | Allonge to Promissory Note dated November 13, 2003 made in favor of Richard D. Stromback dated February 6, 2008. (2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.11         | Allonge to Promissory Note dated December 15, 2003 made in favor of Deanna. Stromback dated February 6, 2008. (2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.12         | Allonge to Promissory Note dated August 10, 2004 made in favor of Douglas Stromback dated February 6, 2008. (2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.13         | Promissory Note made in favor of Mitch Shaheen dated June 18, 2008. (3)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.14         | Promissory Note made in favor of Mitch Shaheen dated July 10, 2008. (4)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.15         | Extension of Promissory Note made in favor of Richard D. Stromback dated July 10, 2008. (3)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.16         | Warrant W-6. (5)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.17         | Warrant W-8. (6)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.18         | Warrant W-9. (7)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.19         | Warrant W-10. (8)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.20         | Warrant W-11. (9)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.21         | Warrant W-12. (10)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.22         | First Amendment to Employment Agreement of Sally J.W. Ramsey dated December 15, 2008. (11)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.23         | Employment Agreement with Robert G. Crockett dated September 21, 2009. (12)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.24         | Second Amendment of Employment Agreement with Sally J.W. Ramsey dated September 15, 2009. (12)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.25         | Promissory note dated May 11, 2010 in favor of John Salpietra (13)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.26         | Employment Agreement with Daniel Iannotti dated May 17, 2010 (14)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.27         | Headquarters Lease with Omega Development Corporation dated June 17, 2010 (15)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.28         | Extension of Salpietra Promissory Note Due Date dated October 15, 2010 (16)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.29         | Salpietra Note extension dated January 18, 2011 (17)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.30         | Fairmount Five Convertible Preferred Securities Agreement dated March 9, 2011 (18)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.31         | John Bonner Convertible Preferred Securities Agreement dated March 11, 2011 (18)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.32         | Extension of Salpietra Promissory Note dated December 4, 2011(19)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.33         | BASF License Agreement.(20)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 21.1          | List of subsidiaries. (2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 23.1*         | Consent of UHY LLP, an independent registered public accounting firm for incorporation of audit opinion by reference into Form S-8.                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 31.1*         | Certification of the Chief Executive Officer required by Rule 13a-14(a) or Rule 15d-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 31.2*         | Certification of the Chief Financial Officer required by Rule 13a-14(a) or Rule 15d-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 32.1*         | Certification of the Chief Executive Officer and Chief Financial Officer Certifications pursuant to 18 U.S.C. Section 1350,  as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                      |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|  101*    | The following financial information from the Ecology Coatings, Inc. Annual Report on Form 10-K for the fiscal year ended September 30, 2011, formatted in XBRL (eXtensible Business Reporting Language) and furnished electronically herewith: (i) CONSOLIDATED BALANCE SHEETS – ASSETS; (ii) CONSOLIDATED BALANCE SHEETS – LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT); (iii) CONSOLIDATED STATEMENTS OF OPERATIONS; (iv) STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (DEFICIT); (v) CONSOLIDATED STATEMENTS OF CASH FLOWS; and (vi) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS. |

----

----

SIGNATURES

| Date:  |   December 16 , 2011 |   | ECOLOGY COATINGS, INC.                                         |
|--------|------------------------------------------|--------|----------------------------------------------------------------|
|   |                                     |   | Registrant)                                                    |
|   |                                     |   |                                                           |
|   |                                     |   | By: /s/ Robert G. Crockett                                     |
|   |                                     |   | Robert G. Crockett                                             |
|   |                                     |   | Its:  Chief Executive Officer                        |
|   |                                     |   |   (Authorized Officer)                                    |
|   |                                     |   |                                                           |
|   |                                     |   | By:  /s/ Kevin Stolz                                 |
|   |                                     |   | Kevin Stolz                                                    |
|   |                                     |   | Its:  Chief Financial Officer                        |
|   |                                     |   | (Principal Financial Officer and Principal Accounting Officer) |

|                                                                             |   |                                                                                  |   |                               |
|----------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------|--------|------------------------------------|
| Signatures                                                                       |   | Title                                                                                 |   | Date                               |
|                                                                             |   |                                                                                  |   |                               |
|                                                                             |   |                                                                                  |   |                               |
| /s/ Robert G. CrockettRobert G. Crockett                                         |   | Chief Executive Officer(Principal Executive Officer)                                  |   | December 16 , 2011       |
|                                                                             |   |                                                                                  |   |                               |
| /s/Kevin P. StolzKevin P. Stolz                                                  |   | Chief Financial Officer(Principal Financial Officer and Principal Accounting Officer) |   | December 16  , 2011 |
|                                                                             |   |                                                                                  |
| /s/ James JulianoJames Juliano                                                   |   | Director                                                                         |   | December 16  , 2011 |
|                                                                             |   |                                                                                  |   |                               |
| /s/ Sally RamseySally Ramsey                                                     |   | Director & Vice President – New Product Development                    |   | December 16 , 2011       |
|                                                                             |   |                                                                                  |   |                               |
| /s/ Joseph NirtaJoseph Nirta                                                     |   | Director                                                                              |   | December 16  , 2011 |
|                                                                             |   |                                                                                  |   |                               |
| /s/ James OrchardJames Orchard                                                   |   | Director                                                                              |   | December 16  , 2011 |
|                                                                             |   |                                                                                  |   |                               |
| /s/ Nick DeMiroNick DeMiro                                                       |   | Director                                                                              |   | December 16 , 2011       |
|                                                                             |   |                                                                                  |   |                               |
| /s/ John M. (“Pete”) SalpietraJohn M. (“Pete”) Salpietra |   | Director                                                                              |   | December 16 , 2011       |

----

----

| ECOLOGY COATINGS, INC. AND SUBSIDIARY |   |
|---------------------------------------|--------|
| Consolidated Balance Sheets           |   |
| ASSETS                                |   |
|                                  |   | September 30, 2011  |   |   | September 30, 2010 |   |
|                                  |   |   |   |   |   |   |
| Current assets                        |   |   |   |   |   |   |
| Cash                                  |   | $ | 71,784 |   |   | $ | 2,814 |   |
| Prepaid expenses                      |   |   | 30,137 |   |   |   | 30,337 |   |
|                                  |   |   |   |   |   |   |   |   |
| Current Assets                        |   |   | 101,921 |   |   |   | 33,151 |   |
|                                  |   |   |   |   |   |   |   |   |
| Property and equipment                |   |   |   |   |   |   |   |   |
| Computer equipment                    |   |   | 31,650 |   |   |   | 30,111 |   |
| Furniture and fixtures                |   |   | 22,803 |   |   |   | 21,027 |   |
| Test equipment                        |   |   | 40,598 |   |   |   | 11,096 |   |
| Signs                                 |   |   | 213 |   |   |   | 213 |   |
| Software                              |   |   | 6,057 |   |   |   | 6,057 |   |
| Video                                 |   |   | 48,177 |   |   |   | 48,177 |   |
| Property and equipment                |   |   | 149,498 |   |   |   | 116,681 |   |
| Accumulated depreciation              |   |   | (89,837) |   |   |   | (74,756) |   |
|                                  |   |   |   |   |   |   |   |   |
| Plant and equipment, net              |   |   | 59,661 |   |   |   | 41,925 |   |
|                                  |   |   |   |   |   |   |   |   |
| Other                                 |   |   |   |   |   |   |   |   |
| Patents-net                           |   |   | 198,915 |   |   |   | 211,845 |   |
| Trademarks-net                        |   |   | 8,899 |   |   |   | 7,014 |   |
|                                  |   |   |   |   |   |   |   |   |
| Other assets                          |   |   | 207,814 |   |   |   | 218,859 |   |
|                                  |   |   |   |   |   |   |   |   |
| Total Assets                          |   | $ | 369,396 |   |   | $ | 293,935 |   |

----

| ECOLOGY COATINGS, INC. AND SUBSIDIARY                                                                                                                                            |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Consolidated Balance Sheets                                                                                                                                            |   |
| LIABILITIES AND STOCKHOLDERS' DEFICIT                                                                                                                                            |   |
|                                                                                                                                                                             |   | September 30, 2011 |   |   | September 30, 2010 |   |
|                                                                                                                                                                             |   |   |   |   |   |   |
| Current liabilities                                                                                                                                                              |   |   |   |   |   |   |
| Accounts payable                                                                                                                                                                 |   |   $ | 27,945 |   | $ |   | 989,459 |   |
| Accounts payable - related party                                                                                                                                                 |   |   | - |   |   |   | 242,730 |   |
| Credit card payable                                                                                                                                                              |   |   | - |   |   |   | 114,622 |   |
| Accrued liabilities                                                                                                                                                              |   |   | 217,951 |   |   |   | 71,500 |   |
| Interest payable                                                                                                                                                                 |   |   | 405,274 |   |   |   | 398,191 |   |
| Notes payable                                                                                                                                                                    |   |   | 250,000 |   |   |   | 582,300 |   |
| Notes payable - related party                                                                                                                                                    |   |   | 900,332 |   |   |   | 828,332 |   |
| Preferred dividends payable                                                                                                                                                      |   |   | 31,566 |   |   |   | 60,618 |   |
| Total current liabilities                                                                                                                                                        |   |   | 1,833,068 |   |   |   | 3,287,752 |   |
|                                                                                                                                                                             |   |   |   |   |   |   |   |   |
| Commitments and Contingencies (Note 5)                                                                                                                                           |   |   |   |   |   |   |   |   |
|                                                                                                                                                                             |   |   |   |   |   |   |   |   |
| Stockholders' Deficit                                                                                                                                                            |   |   |   |   |   |   |   |   |
| Preferred stock - 10,000,000 $.001 par value shares authorized; 1,938 and 3,657 shares issued and outstanding as of September 30, 2011 and September 30, 2010, respectively      |   |   | 7 |   |   |   | 4 |   |
| Common stock - 90,000,000 $.001 par value shares authorized; 14,158,506 and 32,910,684 issued and outstanding as of September 30, 2011 and September 30, 2010, respectively |   |   | 14,159  |   |   |   | 32,934  |   |
| Additional paid-in capital                                                                                                                                                       |   |   | 27,296,580 |   |   |   | 22,738,182 |   |
| Accumulated Deficit                                                                                                                                                              |   |   | (28,774,419) |   |   |   | (25,764,937) |   |
|                                                                                                                                                                             |   |   |   |   |   |   |   |   |
| Total Stockholders' Deficit                                                                                                                                                      |   |   | (1,463,673) |   |   |   | (2,993,817) |   |
|                                                                                                                                                                             |   |   |   |   |   |   |   |   |
| Total Liabilities and Stockholders'                                                                                                                                              |   |   |   |   |   |   |   |   |
| Deficit                                                                                                                                                                          |   | $ | 369,396 |   |   | $ | 293,935 |   |

----

| ECOLOGY COATINGS, INC. AND SUBSIDIARY |   |
|---------------------------------------|--------|
| Consolidated Statements of Operations |   |

|                                         |   | For the Year Ended |   | For the Year Ended                                            |   |
|----------------------------------------------|--------|--------------------|--------|---------------------------------------------------------------|--------|
|                                         |   | September 30, 2011 |   | September 30, 2010                                            |   |
|                                         |   |               |   |                                                          |   |
|                                         |   |               |   |                                                          |   |
| Revenues                                     |   | $3,190             |   | $         14,860 |   |
|                                         |   |               |   |                                                          |   |
| Officer salaries and fringe benefits         |   | 570,718            |   | 552,800                                                       |   |
| Professional fees                            |   | 217,799            |   | 434,121                                                       |   |
| Other general andadministrative expense      |   | 1,102,536          |   | 917,412                                                       |   |
| Total general andadministrative expenses     |   | 1,891,053          |   | 1,904,333                                                     |   |
|                                         |   |               |   |                                                          |   |
| Operating loss                               |   | (1,887,863)        |   | (1,889,473)                                                   |   |
|                                         |   |               |   |                                                          |   |
| Other income (expenses)                      |   |               |   |                                                          |   |
| Income from forgiveness of payables and debt |   | 872,861            |   | 206,983                                                       |   |
| Other non-operating income                   |   | 1,268              |   | -                                                             |   |
| Interest expense                             |   | (204,917)          |   | (218,570)                                                     |   |
| Total other income (expenses),net            |   | 669,212            |   | (11,587)                                                      |   |
|                                         |   |               |   |                                                          |   |
| Net loss                                     |   | $(1,218,651)       |   | $(1,901,060)                                                  |   |
|                                         |   |               |   |                                                          |   |
| Preferred dividend – beneficial        |   |               |   |                                                          |   |
| conversion features                          |   | (1,698,334)        |   | (988,544)                                                     |   |
| Preferred dividends – stockdividends   |   | (92,497)           |   | (186,516)                                                     |   |
|                                         |   |               |   |                                                          |   |
| Net loss available to commonshareholders     |   | (3,009,482)        |   | (3,076,120)                                                   |   |
|                                         |   |               |   |                                                          |   |
| Basic and diluted net loss per share         |   | $(0.31)            |   | $(0.47)                                                       |   |
|                                         |   |               |   |                                                          |   |
| Basic and diluted weighted average           |   |               |   |                                                          |   |
| shares outstanding                           |   | 9,738,194          |   | 6,582,137                                                     |   |

----

| ECOLOGY COATINGS, INC. AND SUBSIDIARY                                                                             |
|-------------------------------------------------------------------------------------------------------------------|
| Statement of Changes in Stockholders’ Equity (Deficit) for the Years Ended September 30, 2011 and 2010 |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   | Additional |   |   |   |   |   | Total |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   | Paid In |   |   | Accumulated |   |   | Stockholders' |
|                                                                                                              |   | Common Stock |   |   | Preferred Stock |   |   | Capital |   |   | Deficit |   |   | Equity |
|                                                                                                              |   | Shares |   |   | Amount |   |   | Shares |   |   | Amount |   |   |   |   |   |   |   |   | (Deficit) |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at September 30, 2009                                                                                     |   |   | 32,835,684 |   |   | $ | 32,859 |   |   |   | 3,002 |   |   | $ | 2 |   |   | $ | 20,645,299 |   |   | $ | (22,688,817 | ) |   | $ | (2,010,657) |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance of preferred stock                                                                                       |   |   |   |   |   |   |   |   |   |   | 491 |   |   |   | 2 |   |   |   | 490,998 |   |   |   |   |   |   |   | 491,000 |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Beneficial conversion feature on preferred stock                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 988,544 |   |   |   | (988,544) |   |   |   | - |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock option expense                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 427,308 |   |   |   |   |   |   |   | 427,308 |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock issued for services                                                                                         |   |   |  75,000 |   |   |   |  75 |   |   |   |   |   |   |   |   |   |   |   | 22,425 |   |   |   |   |   |   |   | 22,500 |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred dividends                                                                                               |   |   |   |   |   |   |   |   |   |   | 164 |   |   |   | - |   |   |   | 163,608 |   |   |   | (186,516) |   |   |   | (22,908) |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Loss                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (1,901,060) |   |   |   | (1,901,060) |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at September 30, 2010                                                                                     |   |   | 32,910,684 |   |   | $ | 32,934 |   |   |   | 3,657 |   |   | $ | 4 |   |   |   | 22,738,182 |   |   |   | (25,764,937) |   |   |   | (2,993,817) |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Adjustment for 5 for 1 reverse split                                                                              |   |   | (26,328,547) |   |   |   | (39,957) |   |   |   |   |   |   |   |   |   |   |   | 39,957 |   |   |   |   |   |   |   | - |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance of preferred stock                                                                                       |   |   |    |   |   |   |   |   |   |   | 1,865 |   |   |   | 1 |   |   |   | 1,864,999 |   |   |   |   |   |   |   | 1,865,000 |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Beneficial conversion feature on preferred stock                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1,698,334 |   |   |   | (1,698,334) |   |   |   | - |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock option expense                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |      730,243 |   |   |   |   |   |   |   | 730,243 |
| Stock issued for payables                                                                                         |   |   | 675,000 |   |   |   | 675 |   |   |   |   |   |   |   |   |   |   |   | 113,825 |   |   |   |   |   |   |   | 114,500 |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Conversion of preferred shares                                                                                    |   |   | 6,901,369 |   |   |   | 20,507 |   |   |   | (3,706) |   |   |   | (3) |   |   |   | (20,504) |   |   |   |   |   |   |   | - |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred dividends                                                                                               |   |   |   |   |   |   |    |   |   |   | 122 |   |   |   | - |   |   |   | 121,549 |   |   |   | (92,497) |   |   |   | 29,052 |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Loss                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (1,218,651) |   |   |   | (1,218,651) |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at September 30, 2011                                                                                     |   |   | 14,158,506 |   |   | $ | 14,159 |   |   |   | 1,938 |   |   | $ | 2 |   |   |   | 27,296,585 |   |   |   | (28,774,419) |   |   |   | (1,463,673) |

----

| ECOLOGY COATINGS, INC. AND SUBSIDIARY                 |
|-------------------------------------------------------|
| Consolidated Statements of Cash Flows                 |
|                                                  |
|                                                  | For the | For the |
|                                                  | Year Ended | Year Ended |
|                                                  | September 30, 2011 | September 30, 2010 |
| OPERATING ACTIVITIES                                  |   |   |
| Net  loss                                   | $(1,218,651) | $(1,901,060) |
| Adjustments to reconcile net loss                     |   |   |
| to net cash used in operating activities:             |   |   |
| Income from forgiveness of payables and debt          | (872,861) | (206,983) |
| Depreciation and amortization                         | 34,179 | 45,248 |
| Stock option expense                                  | 730,243 | 427,308 |
| Issuance of stock for payables, services              | 114,500 | 22,500 |
| Loss from patent abandonment                          | - | 222,112 |
| Changes in Asset and Liabilities                      |   |   |
| Prepaid expenses                                      | 200 | (28,937) |
| Accounts payable                                      | (511,608) | (168,021) |
| Accrued liabilities                                   | 146,451 | (4,584) |
| Credit card payable                                   | (22,719) | - |
| Interest payable                                      | 7,083 | 209,140 |
| Net Cash Used In Operating Activities                 | (1,593,182) | (1,047,235) |
| INVESTING ACTIVITIES                                  |   |   |
| Purchase of  property and equipment         | (32,817) | (1,400) |
| Increase in patents and trademarks                    | (8,928) | (9,968) |
| Net Cash Used in Investing Activities                 | (38,745) | (11,368) |
| FINANCING ACTIVITIES                                  |   |   |
| Bank overdraft                                        | - | (200) |
| Repayment of debt                                     | (236,103) | - |
| Proceeds from issuance of debt                        | 292,000 | 570,616 |
| Proceeds from issuance of convertible preferred stock | 1,645,000 | 491,000 |
| Net Cash Provided By Financing Activities             | 1,700,897 | 1,061,416 |
|                                                  |   |   |
| Net Change in Cash                                    | 68,970 | 2,814 |
|                                                  |   |   |
| CASH AT BEGINNING                                     |   |   |
| BEGINNING OF PERIOD                                   | 2,814 | - |
| CASH AT END                                           |   |   |
| OF PERIOD                                             | $71,784 | $               2,814 |

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| ECOLOGY COATINGS, INC. AND SUBSIDIARY                          |
|----------------------------------------------------------------|
| Consolidated Statements of Cash Flows                          |
|                                                           |
|                                                           | For the | For the |
|                                                           | Year Ended | Year Ended |
|                                                           | September 30, 2011 | September 30, 2010 |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW                           |   |   |
| INFORMATION                                                    |   |   |
| Interest paid                                                  | $         193,897 | $            26,534 |
|                                                           |   |   |
|  SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES |   |   |

|  Debt converted into preferred shares | $         220,000 | $             2,500 |
|--------------------------------------------|----------------------------------------------------------------|--------------------------------------------------------------------------------------|
|                                       |                                                           |                                                                                 |
|                                       |                                                           |                                                                                 |
|                                       |                                                           |                                                                                 |

----

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| Computer equipment              | 3-10 years |
|---------------------------------|------------|
| Furniture and fixtures          | 3-7 years  |
| Test equipment                  | 5-7 years  |
| Signs                           | 7 years    |
| Software                        | 3 years    |
| Marketing and Promotional Video | 3 years    |

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |  September 30, 2011  | September 30, 2010 |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|--------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                           |               |   |   |   |   |
| George Resta Note:  Subordinated note payable, 25% per annum, unsecured, principal and interest was due June 30, 2008; the Company extended the maturity for 30 days, to July 30, 2008 in exchange for warrants to purchase 3,000 shares of the Company’s common stock at $8.75 per share. Additionally, the Company granted the note holder warrants to purchase 2,500 shares of the Company’s common stock at $8.75 per share. The note, together with accrued interest of $29,067 then owing, was settled on March 4, 2011.                                                                                                                                                                                                                                                                                                                         |   | $-                             |               |   |   | $38,743 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                           |               |   |   |   |   |
| Investment Hunter, LLC Note:  Subordinated note payable, 25% per annum, unsecured, principal and interest was due June 30, 2008; the Company extended the maturity for 30 days, to July 30, 2008 in exchange for warrants to purchase 3,000 shares of the Company’s common stock at $8.75 per share. Additionally, the Company granted the note holder warrants to purchase 25,000 shares of the Company’s common stock at $8.75 per share. The note, together with accrued interest of $164,830 was settled on March 4, 2011                                                                                                                                                                                                                                                                                                                          |   | -                              |               |   |   | 293,557 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                           |               |   |   |   |   |
| Mitchell Shaheen Note:  Subordinated note payable, 25% per annum, unsecured, principal and interest was due July 18, 2008. Additionally, the Company issued a warrant to purchase 20,000 shares of the Company’s common stock at a price equal to $3.75 per share (the “Warrant”). The Warrant is exercisable immediately and carries a ten (10) year term. The Holder may convert all or part of the then-outstanding Note balance into shares at $2.50 per share. If applicable, the Company has agreed to include the Conversion Shares in its first registration statement filed with the Securities and Exchange Commission. Demand for repayment was made on August 27, 2008. Accrued interest of $183,776 and $127,653 was outstanding as of September 30, 2011 and September 30, 2010, respectively. This note is currently in default.  |   | 150,000                        |               |   |   | 150,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                           |               |   |   |   |   |
| Mitchell Shaheen Note:  Subordinated note payable, 25% per annum, unsecured, principal and interest was due August 10, 2008. Additionally, the Company issued a warrant to purchase 20,000 shares of the Company’s common stock at a price equal to $2.50 per share (the “Warrant”). The Warrant is exercisable immediately and carries a ten (10) year term. The Holder may convert all or part of the then-outstanding Note balance into shares at $2.50 per share. If applicable, the Company has agreed to include the Conversion Shares in its first registration statement filed with the Securities and Exchange Commission. Demand for repayment was made on August 27, 2008. Accrued interest of $125,850 and $87,878 was outstanding as of September 30, 2011 and September 30, 2010, respectively. This note is currently in default. |   | 100,000                        |               |   |   | 100,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                           |               |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $250,000                       |               |   |   | $582,300 |   |

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|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|--------|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | a.     |   | We lease office and lab facilities in Akron, OH on a month-to-month basis for $1,200 per month.  Rent expense for the three months ended June 30, 2011 and 2010 was $18,600 and $21,000, respectively. Rent expense for the six months ended June 30, 2011 and 2010 was $9,000 and $10,800, respectively.                                                                                                                                                                                                                                                                             |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | b.     |   | Effective May 1, 2011, we entered into a lease with J.M. Land Company for office space for our headquarters located in Warren, Michigan.  The lease was effective May 1, 2011 and expires on April 30, 2012.  This lease replaces the earlier lease agreement on the same premises.   Monthly rent is $1,000 and  we pay the gas and electric utilities for our headquarters building which has historically averaged approximately $1,000 per month.  Rent and utilitiesexpenses for the year ended September 30, 2011 totaled $13,121. |

| Year Ending September 30, | Amount  |
|---------------------------|---------|
|                      |    |
| 2012                      | $14,000 |
|                      |    |
| TOTAL:                    | $14,000 |

----

|    |   | Strike |   | Date               |   | Expiration         |
|---------|--------|--------|--------|--------------------|--------|--------------------|
| Number  |   | Price  |   | Issued             |   | Date               |
| 20,000  |   | $3.75  |   | July 28, 2008      |   | July 28, 2018      |
| 1,000   |   | $3.75  |   | August 20, 2008    |   | August 20, 2018    |
| 5,000   |   | $3.75  |   | August 27, 2008    |   | August 27, 2018    |
| 100,000 |   | $3.75  |   | August 29, 2008    |   | August 29, 2018    |
| 75,000  |   | $3.75  |   | September 26, 2008 |   | September 26, 2018 |
| 9,400   |   | $3.75  |   | January 23, 2009   |   | January 23, 2014   |
| 3,000   |   | $3.75  |   | February 10, 2009  |   | February 10, 2014  |
| 2,500   |   | $3.75  |   | February 18, 2009  |   | February 18, 2014  |
| 4,000   |   | $3.75  |   | February 26, 2009  |   | February 26, 2014  |
| 2,300   |   | $3.75  |   | March 10, 2009     |   | March 10, 2014     |
| 8,000   |   | $3.75  |   | March 26, 2009     |   | March 26, 2014     |
| 2,150   |   | $3.75  |   | April 14, 2009     |   | April 14, 2014     |
| 3,350   |   | $3.75  |   | April 29, 2009     |   | April 29, 2014     |

----

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|                                 | Weighted Average Exercise Price Per Share | Number of Options | Weighted Average (Remaining) Contractual Term | AggregateFairValue |
|--------------------------------------|-------------------------------------------|-------------------|-----------------------------------------------|--------------------|
| Outstanding as of September 30, 2009 | $5.65                                     | 1,026,224         | 9.2                                           | $4,569,065         |
| Granted                              | $.30                                      | 60,000            | 9.9                                           | $16,055            |
| Exercised                            | $    -                | -                 | -                                             | -                  |
| Forfeited                            | $    -                | -                 | -                                             | -                  |
| Outstanding as of September 30, 2010 | $5.25                                     | 1,086,224         | 7.9                                           | $4,585,120         |
| Exercisable                          | $6.05                                     | 796,328           | 6.8                                           | $4,336,532         |
| Granted                              | $.20                                      | 4,860,000         | 9.5                                           | 952,855            |
| Exercised                            |   $-                            | -                 | -                                             | -                  |
| Forfeited                            | $4.32                                     | 595,044           | -                                             | 1,388,212          |
| Outstanding as of September 30, 2011 | $.79                                      | 5,351,180         | 9.3                                           |  4,149,763    |
| Exercisable                          | $1.40                                     | 2,588,180         | 9.0                                           | 3,656,002          |

|                    | 2011    | 2010         |
|-------------------------|---------|--------------|
| Dividend                | None    | None         |
| Expected volatility     | 260%    | 83.2%-230.8% |
| Risk free interest rate | 1.03%   | 0.26%-0.31%  |
| Expected life           | 3 years | 3-5 years    |

----

| Tax Rate Reconciliation                                                                      |   |   | 2011                                                                                         | 2010                                                                       |
|----------------------------------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------------------------------|----------------------------------------------------------------------------|
| Income tax expense (benefit) at the statutory rate                                           |   |   |       (414,341)                                                |  (646,360)                                                            |
| Compensation and BCF expense                                                                 |   |   |         248,283                                      |   145,285                                                        |
| Other permanent differences, net                                                             |   |   | (4,182)                                                                                      |         13,830                     |
| Valuation Allowance                                                                          |   |   |         170,240                                      |      487,246                                      |
|                                                                                         |   |   |  $              - |  $           - |
| The States in which we currently operate did not have a corporate income tax in effect as of |   |
| September 30, 2011 and 2010.                                                                 |   |   |                                                                                         |                                                                       |

|                              |   |   | 2011                                                                                                                                   |   | 2010                                                                                                                             |   |
|-----------------------------------|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------|--------|
| Assets:                           |   |   |                                                                                                                                   |   |                                                                                                                             |   |
| Federal loss carry forwards       |   |   |  $4,465,948                                                                                                                  |   |  $      4,035,538                                                                             |   |
| Cash basis accounting differences |   |   | 138,024                                                                                                                                |   | 403,322                                                                                                                          |   |
| Liability:                        |   |   |                                                                                                                                   |   |                                                                                                                             |   |
| Depreciation timing differences   |   | 15,245 |                                                                                                                                   | 10,117 |                                                                                                                             |
|                              |   |   |                                                                                                                                   |   |                                                                                                                             |   |
| Deferred tax asset                |   |   | 4,619,217                                                                                                                              |   | 4,448,977                                                                                                                        |   |
|                              |   |   |                                                                                                                                   |   |                                                                                                                             |   |
| Valuation  allowance    |   |   | (4,619,217)                                                                                                                            |   | (4,448,977)                                                                                                                      |   |
|                              |   |   |                                                                                                                                   |   |                                                                                                                             |   |
| Net deferred tax asset            |   |   |  $                     - |   |  $                    - |   |

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