SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q
PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934For the Quarter Ended
June 30, 2005Commission File Number
0-9392CLX INVESTMENT COMPANY, INC.
(Exact Name of Registrant as Specified in Its Charter)






Colorado84-0749623(State or other jurisdiction of
incorporation or organization)(IRS Employer Identification Number)43180 Business Park Drive #202, Temecula, CA92590(Address of principal executive offices)(Zip Code)(951) 587-9100
Issuer's telephone number, including area code
CLX Energy, Inc.
(Registrant's Former Name and Address)




Check whether the Issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [ X] No[  ]



Indicate the number of shares outstanding of each of the issuer's class of common stock, as of the last practicable date.



ClassOutstanding at August
  8, 2005Common Stock, $0.01 par value16,247,634 shares




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PART I  FINANCIAL INFORMATION







Item 1. Financial Statements









CLX INVESTMENT COMPANY, INC.







FINANCIAL STATEMENTS



June 30, 2005















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|CLX Investment Company, Inc.                                               |                                                                                                                                      |          
|-------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------ | ---------
|Balance Sheets                                                             |                                                                                                                                     
|ASSETS                                                                     |                                                                                                                                     
|                                                                           |                                                                                                                                      |          
|2005                                                                       | 2004                                                                                                                                
|                                                                           |                                                                                                                                      |          
|Current Assets                                                             |                                                                                                                                      |          
|                                                                           | Cash                                                                                                                                 | $        
|Total Current Assets                                                       |                                                                                                                                      | 15,593   
|Equipment, Net                                                             |                                                                                                                                      | -        
|Investments (See Schedule)                                                 |                                                                                                                                      |          
|                                                                           | Investments                                                                                                                          |          
|                                                                           | Total Investments                                                                                                                    |          
|                                                                           | Total Assets                                                                                                                         | $        
|LIABILITIES AND STOCKHOLDERS' DEFICIT                                      |                                                                                                                                      |          
|Current Liabilities                                                        |                                                                                                                                      |          
|                                                                           | Accounts Payable                                                                                                                     | $        
|                                                                           | Accounts Payable  related party                                                                                                     |          
|                                                                           | Interest Payable                                                                                                                     |          
|                                                                           | Convertible Debentures                                                                                                               |          
|                                                                           | Total Current Liabilities                                                                                                            |          
|                                                                           | Total Liabilities                                                                                                                    |          
|Stockholders' Equity                                                       |                                                                                                                                      |          
|                                                                           | Preferred Stock, Authorized 20,000,000 Shares, $0.01 Par Value, 9,000,000 and 0 Shares Issued and Outstanding respectively           |          
|                                                                           | Common Stock,  Authorized 1,980,000,000 Shares, $0.01 Par Value, 12,997,634 and 1,197,634 Shares Issued and Outstanding respectively |          
|                                                                           | Additional Paid in Capital                                                                                                           |          
|                                                                           | Retained Deficit                                                                                                                     |          
|Total Stockholders' Deficit                                                |                                                                                                                                      | (132,324)
|                                                                           | Total Liabilities and Stockholders' Deficit                                                                                          | $        
|                                                                           | Net Asset Value                                                                                                                      | $        
|                                                                           |                                                                                                                                      |          
|The accompanying notes are an integral part of these financial statements.



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|CLX Investment Company, Inc.                                                          
|--------------------------------------------------------------------------------------
|Schedule of Investments                                                               
|June 30, 2005                                                                         
|(Unaudited)                                                                           
|EQUITY INVESTMENTS:                                                                   
|                                                                                      
|Company                                                                               
|                                                                                      
|eStrategy Solutions, Inc.                                                             
|Total Investment                                                                      
|                                                                                      
|COMMERCIAL LOANS:                                                                     
|                                                                                      
|Company                                                                               
|                                                                                      
|eStrategy Solutions, Inc.                                                             
|Interest on Credit Line                                                               
|Total Loans                                                                           
|TOTAL INVESTMENTS AND LOANS                                                           
|                                                                                      
|                                                                                      
|Fair value determined by the Company's Board of Directors using the following formula:
|                                                                                      
|(1)- The cost of the investment                                                       
|The accompanying notes are an integral part of these financial statements.            

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|CLX Investment Company, Inc.
Statements of Operations
(Unaudited)         
|--------------------------------------------------------------------------
|                                                                          
|                                                                          
|Investment Revenue                                                        
|Interest Income                                                           
|Total Revenues                                                            
|Operating Expenses                                                        
|General & Administrative                                                  
|Professional fees                                                         
|Total Operating Expenses                                                  
|Net Operating Income (Loss)                                               
|Other Income (Expense)                                                    
|Gain on forgiveness of Debt                                               
|Interest Expense                                                          
|Total Other Expense                                                       
|LOSS FROM CONTINUING OPERATIONS                                           
|INCOME (LOSS) FROM DISCONTINUED OPERATIONS NET OF ZERO TAX EFFECT         
|Income Tax Expense                                                        
|Net Income (Loss)                                                         
|Net Income (Loss) Per Share                                               
|Weighted Average Shares Outstanding                                       
|                                                                          
|The accompanying notes are an integral part of these financial statements.

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|CLX Investment Company, Inc.                                                         
|-------------------------------------------------------------------------------------
|                                                                                     
|Statements of Stockholders' Equity (Deficit)                                         
|                                                                                     
|                                                                                     
|                                                                                     
|Balance, September 30,2003                                                           
|October, 2003 retirement of Treasury stock                                           
|September 2, 2004, sale of subsidiary for exchange of shares                         
|Net loss for period ended September 30, 2004                                         
|Balance, September 30,2004                                                           
|Stock issued on conversion of debentures, November through December, 2004 (unaudited)
|Beneficial Conversion Expense related to Convertible Debentures (unaudited)          
|Stock issued for cash sale on January 17, 2005 (unaudited)                           
|Preferred Stock issued February 1, 2005 (unaudited)                                  
|Restricted stock issued for cash on February 1, 2005 (unaudited)                     
|Stock issued on conversion of debentures, January through March, 2004 (unaudited)    
|Stock issued on conversion of debentures, April, 2004 (unaudited)                    
|Stock issued for cash sale on June, 2005 (unaudited)                                 
|Net Loss for period ended June 30, 2005 (unaudited)                                  
|                                                                                     



The accompanying notes are an integral part of these financial
statements.

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|CLX Investment Company, Inc.                                           
|-----------------------------------------------------------------------
|Statements of Cash Flows                                               
|                                                                       
|                                                                       
|                                                                       
|Cash Flows from Operating Activities:                                  
|Net Loss                                                               
|Adjustments to Reconcile Net Loss to Net Cash   Provided by Operations:
|Depreciation and depletion                                             
|Abandoned leases                                                       
|Gain on sale of assets                                                 
|Beneficial Conversion expense                                          
|Financing costs                                                        
|Gain on write off of Debt                                              
|Bad Debt Allowance                                                     
|Changes in Operating Assets and Liabilities:                           
|(Increase) Decrease in:                                                
|Accounts receivable                                                    
|Prepaid expense                                                        
|Increase (Decrease) in:                                                
|Accrued expense                                                        
|Accounts payable                                                       
|Net Cash Used by Operating Activities                                  
|Cash Flows from Investing Activities:                                  
|Purchase of Property and Equipment                                     
|Proceeds from sale of property and equipment                           
|Investment in subsidiary                                               
|Advances line of Credit                                                
|Net Cash Provided (Used) by Investing Activities                       
|Cash Flows from Financing Activities:                                  
|Reductions to long-term debt                                           
|Cash sale of stock                                                     
|Proceeds from convertible debentures                                   
|Repayments of convertible debentures                                   
|Net Cash Provided (Used) by Financing Activities                       
|Increase Decrease in Cash                                              
|Cash and Cash Equivalents at Beginning of Period                       
|Cash and Cash Equivalents at End of Period                             
|Cash Paid For:                                                         
|Interest                                                               
|Income Taxes                                                           
|Non-Cash Investing and Financing Activities:                           

|Stock issued for conversion of convertible  debentures                     |  | $ | 66,000 |  |  | -
|-------------------------------------------------------------------------- |  | - | ------ |  |  | -
|                                                                          
|The accompanying notes are an integral part of these financial statements.

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CLX INVESTMENT COMPANY, INC.

Notes to the Financial Statements

June 30, 2005 and 2004



NOTE 1 - NATURE OF ORGANIZATION



This summary of significant accounting policies of CLX Investment Company, Inc. is presented to assist in understanding the Company's financial statements. The financial statements and notes are representations of the Company's management who are responsible for their integrity and objectivity. In the opinion of management, all adjustments which are necessary for a fair presentation of the financial statements have been included.  These accounting policies conform to accounting principles generally accepted in the United States of America and have been consistently applied in the preparation of the financial statements.



a. Organization and Business Activities



CLX Investment Company, Inc. (the Company or CLXN) is an investment company reporting under the Investment Company Act of 1940 as a Business Development Company. The Company was incorporated on December 12, 1977 under the laws of the State of Colorado as Calvin Exploration Company, Inc. to engage in any lawful activity as shall be appropriate under laws of the State of Colorado. The Company was organized to engage in on-shore oil and gas exploration, development and production in the continental United States. The Company's oil and gas activities concentrated primarily in Colorado, Kansas, Oklahoma and Wyoming. In 1993 the name of the Company was changed to CLX Energy, Inc. Up until September 1, 2004 the Company engaged in only one industry segment and line of business; the acquisition, exploration, development and operation of oil and gas properties for its own account.



On September 13, 2004, the Company filed with the Securities and Exchange Commission to become a Business Development Corporation as defined under the Investment Act of 1940. Additionally, on September 13, 2004, the Company filed an offering circular with the SEC for up to $5,000,000 of common stock under Regulation E of the Investment Act to raise capital and to make investments in eligible emerging or early-stage companies in various fields of business by arranging for and contributing capital and providing management assistance. In anticipation of the election to become a BDC, the Company changed its name to CLX Investment Company, Inc. on September 1, 2004 to properly reflect the nature of its business.



On May 24, 2004 the Company appointed new management and moved its headquarters to Temecula, CA. At the same time the Company formed CLX Oil & GAS, LLC a wholly owned subsidiary of CLX Energy, Inc. and transferred all of the oil and gas operations of the Company (including the assets and liabilities pertaining to such operations) into CLX Oil & Gas, LLC. On September 1, 2004 the Company sold 100% of its interest in CLX Oil & Gas, LLC to certain shareholders of the Company in exchange for shares of CLX Energy, Inc. The shareholders returned 1,433,552 shares in exchange for 100% interest in CLX Oil & GAS, LLC. The Board of Directors approved the "Securities Purchase and Sale Agreement" and also obtained a fairness opinion from Lehrer Financial and Economic Advisory Service indicating that the Securities Purchase and Sale Agreement was a fair and equitable exchange. The sale of the subsidiary has been accounted for as an asset sale transaction and all gas and oil operations are reported as discontinued operations on the financial records.



The Company presently has one portfolio investment: eStrategy Solutions, Inc., a four-year-old e-learning and cost recovery solutions company.



NOTE 2 - CONVERTIBLE DEBENTURES



During the quarter ended June 30, 2005, the Company issued $70,000 of convertible debentures of which $40,000 was used to retire previously issued debentures and the balance, $30,000 was used to support operations. The debentures have terms of 120 days, accrue interest at 8% per annum, and convert at a discount of 50% of the closing bid for the Company's common stock on the date of conversion. All convertible debentures are convertible at the option of the holder or the Company and automatically convert into common stock in the event of bankruptcy or liquidation. During the quarter ended June 30, 2005, the Company converted $10,000 of convertible debentures issued in private quarters into 1,000,000 shares of common stock.   The Company recorded a beneficial conversion expense of $30,000 during the quarter ended June 30, 2005 bringing the total of beneficial conversions expense recorded this fiscal year to $345,000.



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The Company does not consider the convertible debentures to be Senior Securities as defined by the Investment Company Act of 1940 since, at the Companys option, the obligation can be converted into common stock thus placing the debentures on a parity with common stock.  The Company is required to maintain net asset to Senior Security coverage of 200%.  If convertible debentures were deemed to be Senior Securities the Companys coverage would be negative, resulting in an out of compliance condition.



NOTE 3  EQUITY TRANSACTIONS



During the quarter ended June 30, 2005, the Company issued 1,000,000 shares of common stock on the conversion of $10,000 of convertible debentures.  The Company also issued 2,000,000 shares of common stock for a cash sale of $20,000.  This stock was issued unrestricted under the Companys exemption from registration pursuant to Regulation E.



During the nine months ended June 30, 2005, the Company issued a total of 6,600,000 shares pursuant to its offering statement under Regulation E for the conversion of convertible debentures. The shares were issued at a conversion price of $0.01 per share.



During the nine months ended June 30, 2005 the Company also issued a total of 2,200,000 shares pursuant to its offering statement under Regulation E for the sale of common stock.  The shares were issued at a sales price of $0.01 per share.



The shares sold pursuant to the Companys offering circular under Regulation E were sold by the Companys officer and directors without the assistance of any broker dealers. The Company relied on Regulation E in making these sales. No advertising or general solicitation was employed in offering these shares. Each purchaser received a copy of the Companys offering circular. The shares sold in reliance on Regulation E are not restricted securities.



During the nine months ended June 30, 2005 the Company also issued 3,000,000 restricted shares for a sale price of $0.005 per share.



NOTE 4 - SUBSEQUENT EVENTS



Stock Transactions



Subsequent to June 30, 2005 the Company issued 300,000 shares of common stock on the conversion of $3,000 of convertible debentures.  In addition, the Company also issued 1,700,000 shares of common stock for cash totaling $17,000.



Subsequent to June 30, 2005 the Company has restructured its Preferred Stock position in order to comply with the capital requirement of the Investment Company Act of 1940. The Company cancelled 100,000 shares of Series A Preferred  Stock and reissued 100,000 shares of Series B Preferred Stock, which as its sole preference has the ability to appoint a majority of the Board of Directors. Additionally, 1,250,000 shares of Series A were converted into restricted common stock of the Company and the remaining balance of 7,650,000 Series A was cancelled leaving no shares of Series A Preferred Stock issued and outstanding.

Convertible Debentures



Subsequent to June 30, 2005 the company issued a convertible debenture for $25,000. The debenture is payable in 120 days, accrues interest at 8% per annum, and converts at a discount of 50% of the closing bid on the day of conversion, or at the lowest price allowable as set by CLX Investment Company, Inc. in an effective registration statement or exemption notification as filed with the Commission for the Company's common stock on the date of conversion. The debenture is convertible at the option of the holder or the Company, and automatically converts into common stock in the event of bankruptcy or liquidation.  This brings the total to $300,000 convertible debentures outstanding.



Portfolio Investments



Subsequent to June 30, 2005 the Company advanced an additional $7,021 to eStrategy Solutions, Inc. against the line of credit agreement of $250,000, bringing the total advanced under the credit line to $199,810.



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On July 15, 2005, the Company entered into a financing agreement with Action View International, Inc. (AVWI) wherein the Company will provide a line of credit to AVWI in the amount of $350,000. The line of credit accrues interest at 8% per annum and is to be repaid in an amount equal to the great of 25% of net monthly income (EBIT) or $25,000 per month commencing on the earlier of nine months from the date of the final draw down, or the month following the third consecutive month in which AVWI generates net income (EBIT) of at least $50,000. As consideration AVWI shall issue CLXN a total of 2,000,000 shares of AVWI restricted common stock, the shares will be issued in proportion with the line of credit being drawn upon.



NOTE 5 - GOING CONCERN

The ability of the Company to continue as a going concern is dependant upon its ability to successfully seek out and consummate investments, or to secure other sources of financing such that it may commence profitable operations. Further, if the Company is not able to generate positive cash flow from operations, or is unable to secure adequate funding under acceptable terms, there is substantial doubt that the company an continue as a going concern. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.



NOTE 6 -
DISCONTINUED OPERATIONS

In September 2004, the
Company disposed of its oil and gas operations and filed with the Securities and
Exchange Commission to become a Business Development Corporation as defined
under the Investment Act of 1940. Accordingly, all operations associated with
the oil and gas operations have been presented as discontinued in the accompanying financials
statements.

Summary of Discontinued Operations for June 30, 2004 and for the Nine Months
ended June 30, 2004
Summary of selected Balance Sheet Data:

|                                        |   | June 30, 2004
|--------------------------------------- | - | -------------
|                                        |   |              
|Assets                                  | $ | 625,699      
|                                        |   |              
|Liabilities                             |   | 432,901      
|Stockholders Equity                     |   | 192,798      
|Total Liabilities & Stockholders Equity | $ | 625,699      



Summary of Selected Income
Statement Data:



|                        | Nine Months   |  | Three Months 
|----------------------- | ------------- |  | -------------
|                        | Ended         |  | Ended        
|                        | June 30, 2004 |  | June 30, 2004
|                        |               |  |              
|Revenues                | 286,427       |  | 99,677       
|Operating Expenses      | 313,588       |  | 94,235       
|Other income (expenses) | 10,281        |  | (891)        
|Net income (loss)       | (16,880)      |  | 4,551        











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MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS

OF OPERATIONS AND FINANCIAL CONDITION



GENERAL



The statements contained in this Quarterly Report on Form 10-Q that are not historical facts may contain forward-looking statements that involve a number of known and unknown risks and uncertainties that could cause actual results to differ materially from those discussed or anticipated by management. Potential risks and uncertainties include, among other factors, general business conditions, government regulations, manufacturing practices, competitive market conditions, success of the Company's business strategy, delay of orders, changes in the mix of products sold, availability of suppliers, concentration of sales in markets and to certain customers, changes in manufacturing efficiencies, development and introduction of new products, fluctuations in margins, timing of significant orders, and other risks and uncertainties currently unknown to management.



CRITICAL ACCOUNTING POLICIES



The Company's financial statements and related public financial information are based on the application of accounting principles generally accepted in the United States of America ("GAAP"). GAAP requires the use of estimates; assumptions, judgments and subjective interpretations of accounting principles that have an impact on the assets, liabilities, revenue and expense amounts reported. These estimates can also affect supplemental information contained in the external disclosures of the Company including information regarding contingencies, risk and financial condition. We believe our use of estimates and underlying accounting assumptions adhere to GAAP and are consistently and conservatively applied. We review valuations based on estimates for reasonableness and conservatism on a consistent basis throughout the Company. Primary areas where financial information of the Company is subject to the use of estimates, assumptions and the application of judgment include acquisitions, valuation of long-lived and intangible assets, and the realizability of deferred tax assets. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ materially from these estimates under different assumptions or conditions.



Valuation Of Long-Lived And Intangible Assets

The recoverability of long lived assets requires considerable judgment and is evaluated on an annual basis or more frequently if events or circumstances indicate that the assets may be impaired. As it relates to definite life intangible assets, we apply the impairment rules as required by SFAS No. 121, "Accounting for the Impairment of Long-Lived Assets and Assets to Be Disposed Of" as amended by SFAS No. 144, which also requires significant judgment and assumptions related to the expected future cash flows attributable to the intangible asset. The impact of modifying any of these assumptions can have a significant impact on the estimate of fair value and, thus, the recoverability of the asset.



Income Taxes



We recognize deferred tax assets and liabilities based on the differences between the financial statement carrying amounts and the tax bases of assets and liabilities. We regularly review our deferred tax assets for recoverability and establish a valuation allowance based upon historical losses, projected future taxable income and the expected timing of the reversals of existing temporary differences. As of June 30, 2005, we estimated the allowance on net deferred tax assets to be one hundred percent of the net deferred tax assets.



Valuation of Investments



As an investment company under the Investment Company Act of 1940, the Company is not permitted to employ the equity method of accounting for ownership in subsidiaries.  As a result, we do not consolidate the operations and balance sheets of our portfolio investments regardless of the percent of ownership.  In lieu thereof, we are required to carry the value of our portfolio investments at fair market value.

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As required by ASR 118, the investment committee of the company is required to assign a fair value to all investments. To comply with Section 2(a)(41) of the Investment Company Act and Rule 2a-4 under the Investment Company Act, it is incumbent upon the board of directors to satisfy themselves that all appropriate factors relevant to the value of securities for which market quotations are not readily available have been considered and to determine the method of arriving at the fair value of each such security. To the extent considered necessary, the board may appoint persons to assist them in the determination of such value, and to make the actual calculations pursuant to the board's direction. The board must also, consistent with this responsibility, continuously review the appropriateness of the method used in valuing each issue of security in the company's portfolio. The directors must recognize their responsibilities in this matter and whenever technical assistance is requested from individuals who are not directors, the findings of such intervals must be carefully reviewed by the directors in order to satisfy themselves that the resulting valuations are fair.



No single standard for determining "fair value...in good faith" can be laid down, since fair value depends upon the circumstances of each individual case. As a general principle, the current "fair value" of an issue of securities being valued by the board of directors would appear to be the amount which the owner might reasonably expect to receive for them upon their current sale. Methods which are in accord with this principle may, for example, be based on a multiple of earnings, or a discount from market of a similar freely traded security, or yield to maturity with respect to debt issues, or a combination of these and other methods. Some of the general factors which the directors should consider in determining a valuation method for an individual issue of securities include: 1) the fundamental analytical data relating to the investment, 2) the nature and duration of restrictions on disposition of the securities, and 3) an evaluation of the forces which influence the market in which these securities are purchased and sold. Among the more specific factors which are to be considered are: type of security, financial statements, cost at date of purchase, size of holding, discount from market value of unrestricted securities of the same class at time of purchase, special reports prepared by analysis, information as to any transactions or offers with respect to the security, existence of merger proposals or tender offers affecting the securities, price and extent of public trading in similar securities of the issuer or comparable companies, and other relevant matters.



The board has arrived at the following valuation method for its investments. Where there is not a readily available source for determining the market value of any investment, either because the investment is not publicly traded, or is thinly traded, and in absence of a recent appraisal, the value of the investment shall be based on the following criteria:



1. Total amount of the Company's actual investment ("AI"). This amount shall include all loans, purchase price of securities, and fair value of securities given at the time of exchange.

2. Total revenues for the preceding twelve months ("R").

3. Earnings before interest, taxes and depreciation ("EBITD")

4. Estimate of likely sale price of investment ("ESP")

5. Net assets of investment ("NA")

6. Likelihood of investment generating positive returns (going concern).



The estimated value of each investment shall be determined as follows:

- Where no or limited revenues or earnings are present, then the value shall be the greater of the investment's a) net assets, b) estimated sales price, or c) total amount of actual investment.
- Where revenues and/or earnings are present, then the value shall be the greater of two point five times (2.5x) revenues or six times (6x) earnings, plus the greater of the net assets of the investment or the total amount of the actual investment.
- Under both scenarios, the value of the investment shall be adjusted down if there is a reasonable expectation that the Company will not be able to recoup the investment or if there is reasonable doubt about the investments ability to continue as a going concern.

The Board of Directors of the Company, using the above formula, has valued the Companys investments at $192,789.  The Board has not retained independent appraisers to assist in the valuation of the portfolio investments because the cost was determined to be prohibitive for the current levels of investments.



COMPANY STRATEGY

CLX Investment Company, Inc. (the Company or CLXN) is an investment company reporting under the Investment Company Act of 1940 as a Business Development Company. The Company was incorporated on December 12, 1977 under the laws of the State of Colorado as Calvin Exploration Company, Inc. to engage in any lawful activity as shall be appropriate under laws of the State of Colorado. The Company was organized to engage in on-shore oil and gas exploration, development and production in the continental United States. The Company's oil and gas activities concentrated primarily in Colorado, Kansas, Oklahoma and Wyoming. In 1993 the name of the Company was changed to CLX Energy, Inc. Up until September 1, 2004 the Company engaged in only one industry segment and line of business; the acquisition, exploration, development and operation of oil and gas properties for its own account.



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On May 24, 2004 the Company appointed new management and moved its headquarters to Temecula, CA. At the same time the Company formed CLX Oil & GAS, LLC a wholly owned subsidiary of CLX Energy, Inc. and transferred all of the oil and gas operations of the Company (including the assets and liabilities pertaining to such operations) into CLX Oil & Gas, LLC. On September 1, 2004 the Company sold 100% of its interest in CLX Oil & Gas, LLC to certain shareholders of the Company in exchange for shares of CLX Energy, Inc. The shareholders returned 1,433,552 shares in exchange for 100% interest in CLX Oil & GAS, LLC. The Board of Directors approved the "Securities Purchase and Sale Agreement" and also obtained a fairness opinion from Lehrer Financial and Economic Advisory Service indicating that the Securities Purchase and Sale Agreement was a fair and equitable exchange. The sale of the subsidiary has been accounted for as an asset sale transaction and all gas and oil operations are reported as discontinued operations on the financial records.



On September 13, 2004, the Company filed with the Securities and Exchange Commission to become a Business Development Corporation as defined under the Investment Act of 1940. Additionally, on September 13, 2004, the Company filed an offering circular with the SEC for up to $5,000,000 of common stock under Regulation E of the Investment Act to raise capital and to make investments in eligible emerging or early-stage companies in various fields of business by arranging for and contributing capital and providing management assistance. In anticipation of the election to become a BDC, the Company changed its name to CLX Investment Company, Inc. on September 1, 2004 to properly reflect the nature of its business.



The Company made its first portfolio acquisition on December 6, 2004, by entering into an agreement to acquire 40% of eStrategy Solutions, Inc., a four-year-old e-learning and cost recovery solutions company, in exchange for $60,000 and an agreement to provide an operating line of credit of $250,000.  eStrategy Solutions, Inc is the Company's only portfolio investment at June 30, 2005.



Investment Strategy

CLX Investments Company, Inc. intends to make strategic investments in cash-flow positive companies with perceived growth potential. The Investment Committee has adopted a charter wherein these two criteria will be weighed against other criteria including strategic fit, investment amount, management ability, etc. In principle, the Company will prefer to make investments in companies where the Company can acquire at least a 51% ownership interest in the outstanding capital of the portfolio company, or exert some other management control.



As a Business Development Company, the Company is required to have at least 70% of its assets in "eligible portfolio companies." It is stated in the Investment Committee Charter that the Company will endeavor to maintain this minimum asset ratio.



Portfolio Investments

The Company presently has one portfolio investment: eStrategy Solutions, Inc., a Texas corporation specializing in the development, and marketing of e-learning software solutions. The Company owns 49% of the common stock of eStrategy Solutions, Inc., which it acquired in exchange for cash and an open line of credit.  eStrategy Solutions already has training software in place but is projecting a late January completion date for its expanded content delivery platform, which is expected to significantly increase the user capacity of its training programs.  The implementation of this new platform is expected to allow the company to expand its customer base and grow revenues unfettered by current system limitations.

The Texas Department of Information Resources has recently renewed its contract to engage the services of eStrategy Solutions. Under the terms of the contract, eStrategy Solutions can be retained by agencies to serve as the provider for agency defined training courses via web-based training. The contract includes development costs, notification to participants, delivery, testing, and management reporting, encompassing all state agencies, all institutions of higher learning, all independent school districts, counties and municipalities. To date, there have been several thousand deliveries covering over 20 courses. In addition to delivery, eStrategy Solutions provides completion documentation and management reports.



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In the State of Texas, eStrategy Solutions has focused its business strategy on a large market niche that has a clear need for low-cost, highly effective e-learning programs.   eStrategy Solutions has proven a new unique sales and pricing model that targets a defined portion of overlooked clients. By focusing on thousands of licensing, regulatory agencies and certificate granting organizations, eStrategy Solutions offers enterprise level software features at low-cost, and it further creates a cost-recovery method which produces funds needed to deploy a robust e-learning system.  An example of this cost-recovery method is at work with the Texas Board of Chiropractic Examiners (CE). This agency chose eStrategy Solutions to host the learning system at no cost, convert the mandatory CE course to an attractive web based delivery to thousands of chiropractic professionals. The convenience of online secure payment and 24-hour access to courses become a source of savings for the user and eStrategy simply splits the revenue with the agency.



eStrategy Solutions market is not just limited to Texas.  The model that has been developed in Texas is applicable to all the other states as well.  The market potential for e-learning is in the billions of dollars and eStrategy Solutions is expected to grow and capture a significant percentage of its specific market segment.



RESULTS OF OPERATIONS



Quarter ended June 30, 2005 compared to quarter ended June 30, 2004



During the quarter ended June 30, 2005, the Company incurred a net loss of $106,084 compared to a profit of $4,551 for the same quarter of 2004. The current loss is primarily due to an interest expense of $30,000 related to the beneficial conversion feature of new debentures and operating expenses, which were $73,111 for the quarter ended June 30, 2005.   The Company will be able to keep future operating costs at a minimum based on the management agreement it has in place to outsource all its administrative support.  Interest expense for the quarter ended June 30, 2005 was $35,078.  Operations in the prior year quarter included operations of the companys oil and gas subsidiary, which was disposed of subsequent to June 30, 2004.



The nine month period ended June 30, 2005 compared to the nine month period ended June 30, 2004Revenues for the nine months ended June 30, 2005 were $3,299 compared with revenues of $0 for the nine months ended June 30, 2004. Operating expenses for the nine months ended June 30, 2005 were $206,956, generating a net loss of $647,824, or $0.10 per share, compared with a net loss of $16,880, or $0.01 per share, for the nine months ended June 30, 2004.   Revenues for the nine-months ended June 30, 2004 were derived from the sale of oil and gas.  Subsequent to June 30, 2004, the Company disposed of its oil and gas operations and became an investment company. As an investment company, CLX is not permitted to use the equity method of accounting and therefore does not consolidate the revenues and expenses of its portfolio companies regardless of ownership interest.  Revenues for CLX will therefore be limited to realized and unrealized gains on investments, dividends and interest earned, and any management fees charged to portfolio companies.

Liquidity and Capital Resources



The accompanying financial statements have been prepared in conformity with principles of accounting applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred operating losses in the quarter ended June 30, 2005, and some of the past years and has generated an accumulated deficit of $1,335,522. The Company requires additional capital to meet its operating requirements. Management plans to increase cash flows through the sale of securities and through the issuance of convertible debentures.   The portfolio company, eStrategy Solution, is cash flow positive but will require additional funds against its line of credit to further expand its content delivery platform.  Funds will also be required for additional portfolio investments.  There are no assurances that such capital raising plans will be successful. No adjustments have been made to the accompanying financial statements as a result of this uncertainty.



As of June 30, 2005, the Company had total cash and current assets of $15,593 and current liabilities of $340,706. The Company generated cash for operations through the sale of common stock and convertible debentures.   The debentures issued have terms of 120 days, accrue interest at 8%, and are convertible into common stock at a discount to market of 50% from the closing bid price on the date of conversion. Through June 30, 2005, the Company raised $720,000 all of which was from convertible debentures.  Of this total, $375,000 was repaid in cash, $66,000 was converted to common stock and $1,000 was written off as forgiveness of debt leaving a balance of $278,000. Subsequent to June 30, 2005, an additional $3,000 was converted to common stock.  On September 13, 2004, the Company filed a notification with the Securities and Exchange Commission of its intent to raise capital through the issuance of securities exempt from registration under Regulation E of the Securities Act of 1933. This exemption allows the Company to sell up to $5,000,000 of securities exempt from registration.   Subsequent to June 30, 2005 the company raised another $25,000 by issuing an additional convertible debenture under the same terms. There is no assurance that the Company will be able to raise any additional funds through the issuance of the remaining convertible debentures or that any funds made available will be adequate for the Company to continue as a going concern. Further, if the Company is not able to generate positive cash flow from operations, or is unable to secure adequate funding under acceptable terms, there is substantial doubt that the company can continue as a going concern.

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RISKS AND UNCERTAINTIES



An investment in the Company involves a high degree of risk. In addition to matters discussed elsewhere in this report, careful consideration should be given to the following risk factors. This report contains certain forward-looking statements that involve risks and uncertainties. Our actual results could be substantially different from the results we anticipate in these forward-looking statements because of one or more of the factors described below and/or elsewhere in this report. If any of these risks were to actually occur, our business, results of operations and financial condition would likely suffer materially. The risks outlined below are those which management believes are material to an understanding of our business and the risks inherent in it, but such list is not exclusive of every possible risk which may impact the Company and its shareholders in the future. Additional risks and uncertainties not presently known to us or that we currently deem immaterial may also appear or increase in significance, and could therefore impair our projected business results of operations and financial condition.



Risks Related to Our Business



Our future operating results are subject to a number of risks, including our ability or inability to implement our strategic plan and to raise sufficient financing as required. Inability of our management to guide growth effectively, including implementing appropriate systems, procedures and controls, could have a material adverse effect on our business, financial condition and operating results.



Our future growth depends on the addition of portfolio companies that are cash flow positive and can contribute to the overall growth of the Company.  The Company has a plan to implement acquisitions and is presently evaluating several companies to see if they will fit the criteria that have been established.  The future performance of the companies acquired will determine if these evaluations were correct.  And although part of the process is to evaluate the history of the companies to determine stability in their respective industries there is no assurance that this stability will continue.  Change in revenue or expense projections or even changes in the industry that cannot be adjusted to will could adversely affect performance.



We require additional funds to support our business operations.



We require additional capital in order to implement our current business plan as contemplated in this report. CLX Investment Company intends to attempt to raise funds during the fourth fiscal quarter of 2005 through the issuance of convertible debentures and the sale stock exempt from registration to accredited investors. If we are unable to raise the necessary capital we require, which we estimate to be a minimum of $500,000 and not more than $2,000,000, then we may not be able to operate our business in the manner described in this report.  Our inability to raise the funds we require, when we require them and on terms that are reasonably acceptable to our management, would have a materially adverse effect upon our ability to maintain and grow our business.



If we do raise the funds we require to grow the business, it could result in substantial dilution to our existing shareholders.



To the extent that much of our financing will be raised through the issuance of convertible debentures, stock will be issued at a discount to the market upon conversion of the debt resulting in substantial dilution to our existing shareholders which is disproportionate to the value of the funds received by us in such transaction. There is no guarantee that additional financing will be available to us on acceptable terms when needed, or at all.



Our failure to effectively manage our growth could have a material adverse effect on our business.



We expect our business to grow rapidly. Such growth will place a significant strain on our management systems and resources. We will need to continue to improve our operational and financial systems and managerial controls and procedures, and we will need to continue to expand, train and manage our workforce.

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If we are unable to retain key personnel or attract new personnel, it could have a material adverse effect on our business.



The loss of services of any of our key personnel or our inability to successfully attract and retain qualified personnel in the future would have a material adverse effect on our business. We do not maintain key person life insurance on any of our employees.



Risks Related To Our Industry



Laws and regulations may prohibit or severely restrict our ability to raise capital.



Various government agencies in the United States and throughout the world regulate capital raising practices. If we are unable to continue our business in our existing manner then we may not be able to acquire additional portfolio investments, which would hamper or even cause our business to fail. Additionally, government agencies and courts may use their powers and discretion in interpreting and applying laws in a manner that limits our ability to operate or otherwise harm our business. Also, if any governmental authority brings a regulatory enforcement action against us that interrupts our ability to raise capital, or which results in a significant fine or penalty assessed against us, our business could suffer.



CONTROLS AND PROCEDURES.



As required by Rule 13a-15 under the Securities Exchange Act of 1934 (the Exchange Act"), we carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures within the 90 days prior to the filing date of this report. This evaluation was carried out under the supervision and with the participation of the Companys Chief Executive Officer, Ms. Tammy Dunn and Chief Financial Officer, Mr. Kenneth Wiedrich. Based upon that evaluation, the Companys Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are effective in timely alerting management to material information relating to us and required to be included in our periodic SEC filings. There have been no significant changes in our internal controls or in other factors that could significantly affect internal controls subsequent to the date we carried out our evaluation.



Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosures.



PART II.

Other Information

Item 1.Legal Proceedings



None



Item 2.Changes in Securities



During the nine months ended June 30, 2005, the Company issued 6,600,000 shares of common stock in payment of $66,000 of convertible debentures. The Company also issued 2,200,000 shares of its common stock for cash of $22,000. These shares were issued pursuant to its offering statement under Regulation E.



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The shares sold pursuant to the Companys offering circular under Regulation E were sold by the Companys officer and directors without the assistance of any broker dealers. The Company relied on Regulation E in making these sales. No advertising or general solicitation was employed in offering these shares. Each purchaser received a copy of the Companys offering circular. The shares sold in reliance on Regulation E are not restricted securities.



During the nine months ended June 30, 2005, the Company issued 3,000,000 shares of restricted common stock for cash at $.005 per share. These shares were sold directly by the Company, and no underwriters were involved in the transaction. The Company relied on section 4(2) of the Securities Act of 1933 in making the sales of securities. No advertising or general solicitation was employed in offering the shares. The securities sold were offered for investment purposes only and not for the purpose of resale or distribution. The transfer of the shares sold was appropriately restricted by the Company.



Item 3.Defaults Upon Senior Securities



None



Item 4.Submission of Matters to Vote of Security Holders



None



Item 5.Other Information

None



Item 6.Exhibits and Reports on Form 8-K



(a) Exhibits



| | 31.1 | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
| | ---- | --------------------------------------------------------------------------------------------------
| | 31.2 | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
| | 32.1 | Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
| | 32.2 | Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002



(b) Reports on Form 8-K



Subsequent to June 30, 2005, the Company filed the following Current Reports on Form 8-K with the Securities Exchange Commission as follows:



Form 8-K filed on July 6, 2005, in which the Company announced effective July 1, 2005, Shane H. Traveller voluntarily resigned as Chief Executive Officer and President of the Company. Effective as of the same date, to fill the vacancy created by Mr. Travellers resignation, the Board of Directors appointed Ms. Tammy Dunn as Chief Executive Officer and President.



Form 8-K filed on July 13, 2005, in which the Company announced effective July 12, 2005, Shane H. Traveller voluntarily resigned as Chief Financial Officer of the Company. Effective as of the same date, to fill the vacancy created by Mr. Travellers resignation, the Board of Directors appointed Mr. Kenneth Wiedrich as Chief Financial Officer. Mr. Traveller will continue in the capacity of Chairman of the Board of Directors and Mr. Wiedrich will retain the position of Chief Financial Officer in addition to Secretary of the Company.



Form 8-K filed on August
9, 2005, in which the Company announced effective August 8, 2005, Shane H. Traveller voluntarily resigned as the Companys Chairman of the Board of Directors. Effective as of the same date, to fill the vacancy created by Mr. Travellers resignation, the Board of Directors appointed Robert McCoy, an existing director of the company, as Chairman of the Board of Directors.  Also on this date, James Bickel was appointed as a member of the board and he agreed to serve.

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SIGNATURE PAGE



In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.







|Dated: August 15, 2005 | /s/ Tammy Dunn         
|---------------------- | -----------------------
|                       | Tammy Dunn             
|                       | Chief Executive Officer









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EXHIBIT 31.1



SECTION 302

CERTIFICATION OF CHIEF EXECUTIVE OFFICER



I, Tammy Dunn, certify that:



1. I have reviewed this quarterly report on Form 10-Q of CLX Investment Company, Inc.;



2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;



3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, the results of operations and cash flows of the small business issuer as of, and for, the periods presented in this report;



4. The small business issuer's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the small business issuer and have:



(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the small business issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;



(b) evaluated the effectiveness of the small business issuer's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and



(c) disclosed in this report any change in the small business issuer's internal control over financial reporting that occurred during the small business issuer's most recent fiscal quarter (the small business issuer's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the small business issuer's internal control over financial reporting; and



5. The small business issuer's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the small business issuer's auditors and the audit committee of the small business issuer's board of directors (or persons performing the equivalent functions):



(a) all significant deficiencies in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the small business issuer's ability to record, process, summarize and report financial information; and



(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer's internal control over financial reporting.



|Date: August 15, 2005 | By: /s/ Tammy Dunn
Tammy Dunn, Chief Executive Officer
|--------------------- | ------------------------------------------------------



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EXHIBIT 31.2



SECTION 302

CERTIFICATION OF CHIEF FINANCIAL OFFICER



I, Kenneth Wiedrich, certify that:



1. I have reviewed this quarterly report on Form 10-Q of CLX Investment Company, Inc.;



2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;



3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, the results of operations and cash flows of the small business issuer as of, and for, the periods presented in this report;



4. The small business issuer's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the small business issuer and have:



(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the small business issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;



(b) evaluated the effectiveness of the small business issuer's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and



(c) disclosed in this report any change in the small business issuer's internal control over financial reporting that occurred during the small business issuer's most recent fiscal quarter (the small business issuer's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the small business issuer's internal control over financial reporting; and



5. The small business issuer's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the small business issuer's auditors and the audit committee of the small business issuer's board of directors (or persons performing the equivalent functions):



(a) all significant deficiencies in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the small business issuer's ability to record, process, summarize and report financial information; and



(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer's internal control over financial reporting.



|Date: August 15, 2005 | By: /s/ Kenneth Wiedrich
Kenneth Wiedrich, Chief Financial Officer
|--------------------- | ------------------------------------------------------------------



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EXHIBIT 32.1



CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002



In connection with the Quarterly Report of CLX Investment Company, Inc. (the "Company") on Form 10-Q for the period ending June 30, 2005, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Tammy Dunn, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge and belief:



(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and



(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of the operation of the Company.



| | /s/ Tammy Dunn
Tammy Dunn
Chief Executive Officer
August 15, 2005
| | -----------------------------------------------------------------









EXHIBIT 32.2



CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002



In connection with the Quarterly Report of CLX Investment Company, Inc. (the "Company") on Form 10-Q for the period ending June 30, 2005, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Kenneth Wiedrich, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge and belief:



(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and



(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of the operation of the Company.



| | /s/ Kenneth Wiedrich
Kenneth Wiedrich
Chief Financial Officer
August 15, 2005
| | -----------------------------------------------------------------------------









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