UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

 

 

 

FORM 10-Q

 

 

 

 

 

 

 

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

 

 

For the quarterly period ended:  

January 31, 2010

 

 

 

 

 

 

 

[   ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

 

 

 

For the transition period from

___________

to

____________

 

 

 

 

 

 

 

 

Commission file number:

333-158203

 

 

 

 

 

 

 

 

 

ECO ENERGY PUMPS, INC.

 

 

(Exact name of registrant as specified in its charter)

 

 

 

 

 

 

 

 

Nevada

 

 

26-3550371

 

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

 

 

 

 

 

 

 

112 North Curry Street, Carson City, NV   89703-4934

 

 

(Address of principal executive offices)   (Zip Code)

 

 

 

 

 

 

 

 

(775) 284 3713

 

 

(Registrant’s telephone number, including area code)

 

 

 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     

 

Yes |X| No |_|

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.

Large accelerated filer  [  ]

 Accelerated filer [   ]

Non-accelerated filer [   ]  (Do not check if a smaller reporting company)     

    Smaller reporting company [X]

Indicate by check mark whether the registrant is a shell company (as defined in rule 12b-2 of the Exchange Act).


Yes |X| No |_|

Indicate the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date:  As of January 31, 2010, the registrant had 9,552,500 shares of common stock, $0.001 par value, issued and outstanding.







INDEX


 

 

 

 

 

Page

 

 

Number

 

PART I – FINANCIAL INFORMATION

 

 

 

 

Item 1

Financial Statements

3

 

 

 

Item 2

Management’s Discussion and Analysis of Financial Condition and Results of Operations

9

 

 

 

Item 3

Quantitative and Qualitative Disclosures About Market Risk

10

 

 

 

Item 4

Controls and Procedures

11

 

 

 

 

 

 

 

PART II – OTHER INFORMATION

 

 

 

 

Item 1

Legal Proceedings

12

 

 

 

Item 2

Unregistered Sales of Equity Securities and Use of Proceeds

12

 

 

 

Item 3

Defaults Upon Senior Securities

12

 

 

 

Item 4

Submission of  Matters to a Vote of  Security Holders

12

 

 

 

Item 5

Other Information

12

 

 

 

Item 6

Exhibits

13

 

 

 






















ECO ENERGY PUMPS, INC.

(A Development Stage Company)


FINANCIAL STATEMENTS


JANUARY 31, 2010




















BALANCE SHEET


STATEMENT OF OPERATION


STATEMENT OF STOCKHOLDERS’ EQUITY


STATEMENT OF CASH FLOWS


NOTES TO FINANCIAL STATEMENTS








ECO ENERGY PUMPS, INC.

(A Development Stage Company)


BALANCE SHEET



 

January 31, 2010

October 31, 2009

(Audited)

 

 

 

ASSETS

 

 

Trust Account

 299

 2,799

CURRENT ASSETS

 299

 2,799

TOTAL ASSETS

$ 299

$ 2,799

 

 

 

LIABILITIES AND STOCKHOLDER’S EQUITY

 

 

 

 

 

CURRENT LIABILITIES

 

 

Accrued Expenses

 9,700

 9,400

Loans from Related Party

 2,995

 1,995

TOTAL CURRENT LIABILITIES

$ 12,695

$ 11,395

 

 

 

STOCKHOLDER’S EQUITY (DEFICIT )

 

 

Capital stock (Note 4)

 

 

Authorized

 

 

75,000,000 shares of common stock, $0.001 par value,

 

 

Issued and outstanding

 

 

9,552,500 shares of common stock

 9,552

 9,552

     Additional Paid in Capital

 4,798

 4,798

Accumulated Deficit during development stage

 (26,746)

 (22,946)

TOTAL STOCKHOLDER’S EQUITY/(DEFICIT)

$ (12,396)

$ (8,596)

TOTAL LIABILITES AND STOCKHOLDER’S EQUITY/(DEFICIT)

$ 299

$ 2,799



















The accompanying notes are an integral part of these financial statements






ECO ENERGY PUMPS, INC.

(A Development Stage Company)


STATEMENT OF OPERATIONS



 

 








Three months to January 31, 2010

 








Three months to January 31, 2009

 

Cumulative results of operations from October 14, 2008 (date of inception) to  January 31, 2010

REVENUE

$

-

$

-

$

-

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

Professional Fees

$

(3,500)

$

(5,250)

$

(22,270)

Office and general

 

 (300)

 

 (20)

 

 (4,476)

 

 

 

 

 

 

 

NET LOSS

$

(3,800)

$

(5,270)

$

(26,746)

 

 

 

 

 

 

 

Provision for income taxes

$

-

$

-

$

-


NET LOSS, after taxes

$


(3,800)

$


(5,270)

$


(26,746)

BASIC AND DILUTED LOSS PER COMMON SHARE

$


 0.00

$


 0.00

$


0.00

 

 

 

 

 

 

 

WEIGHTED AVERAGE NUMBER OF BASIC AND DILUTED COMMON SHARES OUTSTANDING

 


   9,552,500

 


    9,300,000

 


 

 

 

 

 

 

 
























The accompanying notes are an integral part of these financial statements






ECO ENERGY PUMPS, INC.

(A Development Stage Company)


STATEMENT OF STOCKHOLDERS’ EQUITY (DEFICIT)


FROM INCEPTION (October 14, 2008) TO January 31, 2010




Common Stock

Additional Paid-in Capital



Share Subscription Receivable

Deficit Accumulated During the Development Stage

Total

Number of shares

Amount

 

 

 

 

 

 

 

Common stock issued for cash at $0.001 per share

 

 

 

 

 

 

- November 6, 2008

 9,300,000

$ 9,300

$         -

$ (4,300)

$         -

$ 5,000

 

 

 

 

 

 

 

Common stock issued at $0.02 per share.

 

 

 

 

 

 

- June 29, 2009

252,500

 252

 4,798

        

 

         5,050

Subscription Received

 

 

 

 4,300

 

 4,300

Net Loss for the period ended October 31, 2009


-


-


-


        -


(22,946)


 (22,946)

 

 

 

 

 

 

 

Balance, October 31, 2009 (Audited)

 9,552,500

 9,552

 4,798

        -

(22,946)

 (8,596)


Net Loss for the period ended January 31, 2010


-


-


-


        -


       (3,800)


 (3,800)


Balance, January 31, 2010

 9,552,500

 9,552

 4,798

        -

(26,746)

 (12,396)




























The accompanying notes are an integral part of these financial statements






ECO ENERGY PUMPS, INC.

(A Development Stage Company)


STATEMENT OF CASH FLOWS






Three Months to January 31, 2010




Three months to January 31,2009


October 14, 2008 (date of inception) to

January 31, 2010

 

 

 

 

 

 

 

 

OPERATING ACTIVITIES

 

 

 

Net loss

$  (3,800)

$ (5,270)

$ (26,746)

Accrued Expenses

 300

4,500

9,700


NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES

(3,500)

(770)

(17,046)

 

 

 

 

FINANCING ACTIVITIES

 

 

 

Common Shares

 -

5,000

14,350

   Loans from related party

 1,000

-

2,995

 

 

 

 

NET CASH PROVIDED BY FINANCING ACTIVITIES

 1,000

5,000

17,345

 

 

 

 

NET INCREASE (DECREASE) IN CASH

               (2,500)

4,230

299

 

 

 

 

CASH, BEGINNING OF PERIOD

              2,799

                -

-

 

 

 

 

CASH, END OF PERIOD

$ 299

$ 4,230

$ 299

 

 

 

 

 

 

 

 


Cash paid for:

Interest

$                       -

$                       -

$                       -


Income taxes

$                       -

$                       -

$                       -

















The accompanying notes are an integral part of these financial statements




ECO ENERGY PUMPS, INC.

(A Development Stage Company)

NOTES TO THE FINANCIAL STATEMENTS


January 31, 2010



NOTE 1 - CONDENSED FINANCIAL STATEMENTS


The accompanying financial statements have been prepared by the Company without audit.  In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows at January 31, 2010, and for all periods presented herein, have been made.


Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted.  It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s October 31, 2009 audited financial statements.  The results of operations for the periods ended January 31, 2010 and 2009 are not necessarily indicative of the operating results for the full years.


NOTE 2 - GOING CONCERN


The company has incurred losses since inception totalling $26,746.  


The Company’s financial statements are prepared using generally accepted accounting principles in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and allow it to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations.


In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management’s plan is to obtain such resources for the Company by obtaining capital from management and significant shareholders sufficient to meet its minimal operating expenses and seeking equity and/or debt financing. However management cannot provide any assurances that the Company will be successful in accomplishing any of its plans.


The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations. 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 3 - SUBSEQUENT EVENTS


The Company has evaluated subsequent events from the balance sheet date through April 22, 2010 and has determined that there are no events to disclose.










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Item 2. Management`s Discussion and Analysis of Financial Condition and Results of Operations


This section of this report includes a number of forward-looking statements that reflect our current views with respect to future events and financial performance.  Forward looking statements are often identified by words like: believe, expect, estimate, anticipate, intend, project and similar expressions or words which, by their nature, refer to future events.  You should not place undue certainty on these forward-looking statements, which apply only as of the date of this report.  These forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or our predictions.


Overview


ECO ENERGY PUMPS, INC. ("Eco Energy Pumps", "the Company", “our” or "we") was incorporated in the State of Nevada as a for-profit company on October 14, 2008.  The Company is a development stage company that intends to develop an efficient water pump powered by solar energy with an exclusive pump design. This product will be economical, portable and versatile; excellent for using in farms, irrigation, livestock watering and locations without power lines in general, such as remote homes and villages. It will be capable of pumping water from no matter how deep.


Its main differential will be the exclusive rotary style, positive flow pump, which will be able to pump water continually with little waste of energy.


Plan of Operation


The Company has not yet generated any revenue from its operations.  As of the fiscal quarter ended January 31, 2010 we had $229 of cash on hand. We incurred operating expenses in the amount of $3,800 in the quarter ended January 31, 2010. These operating expenses were comprised of professional fees and office and general expenses.


Our current cash holdings will not satisfy our liquidity requirements and we will require additional financing to pursue our planned business activities.  We have registered 4,000,000 of or our common stock for sale to the public.  Our registration statement became effective on April 10, 2009 and we are in the process of seeking equity financing to fund our operations over the next 12 months.  


Management believes that if subsequent private placements are successful, we will generate sales revenue within the following twelve months thereof. However, additional equity financing may not be available to us on acceptable terms or at all, and thus we could fail to satisfy our future cash requirements.


If Eco Energy Pumps is unsuccessful in raising the additional proceeds through a private placement offering it will then have to seek additional funds through debt financing, which would be very difficult for a new development stage company to secure. Therefore, the company is highly dependent upon the success of the anticipated private placement offering described herein and failure thereof would result in Eco Energy Pumps having to seek capital from other resources such as debt financing, which may not even be available to the company. However, if such financing were available, because Eco Energy Pumps is a development stage company with no operations to date, it would likely have to pay additional costs associated with high risk loans and be subject to an above market interest rate. At such time these funds are required, management would evaluate the terms of such debt financing and determine whether the business could sustain operations and growth and manage the debt load. If Eco Energy Pumps cannot raise additional proceeds via a private placement of its common stock or secure debt financing it would be required to cease business operations. As a result, investors in Eco Energy Pumps common stock would lose all of their investment.


Over the 12 month period starting upon the end of the sale of our stock, our company must raise capital and start its sales. The first stage of our operations over this period is to develop the prototype of our exclusive solar pump system and make all the adjustments necessary to assure high quality. We expect to complete this step within 120 days of the end of the sale of our stock.


The second stage is to develop our company’s website with detailed information and animated demonstrations of our unique pump system. We expect to complete this step in 180 days after the end of the sale of our stock.


The third stage consists in our product Marketing and Sales campaign including: finding a storage space and buying pump supplies; exposition in Trade Shows across North America; distribution of flyers and brochures and demonstration of our products to non-governmental and governmental Institutions that are funding the development of extraction and delivery of water and sanitation in Africa and in development stage countries in general. We expect to be fully operational within 360 days after the end of the sale of our stock.


If we are unable to complete any phase of our systems development or marketing efforts because we don’t have enough money, we will cease our development and or marketing operations until we raise money. Attempting to raise capital after failing in any phase of our business development plan would be difficult. As such, if we cannot secure additional proceeds we will have to cease operations and investors would lose their entire investment.


We do not currently have any employees and management does not plan to hire employees at this time. We do not expect the purchase or sale of any significant equipment and has no current material commitments.




Off Balance Sheet Arrangement


The company is dependent upon the sale of its common shares to obtain the funding necessary to carry its business plan.  Our President, John David Palmer has undertaken to provide the Company with operating capital to sustain its business over the next twelve month period, as the expenses are incurred, in the form of a non-secured loan. However, there is no contract in place or written agreement securing these agreements.  Investors should be aware that Mr. Palmer expression is neither a contract nor agreement between him and the company.


Other than the above described situation the Company does not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on the Company's financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.



Item 3. Quantitative and Qualitative Disclosures about Market Risk


Not required.






Item 4. Controls and Procedures


The management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting, as required by Sarbanes-Oxley (SOX) Section 404 A. The Company’s internal control over financial reporting is a process designed under the supervision of the Company’s Chief Executive Officer and Chief Financial Officer to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the Company’s financial statements for external purposes in accordance with U.S. generally accepted accounting principles.


As of January 31, 2010 management assessed the effectiveness of the Company’s internal control over financial reporting based on the criteria for effective internal control over financial reporting established in



8




SEC guidance on conducting such assessments.  Based on that evaluation, they concluded that, during the period covered by this report, such internal controls and procedures were not effective to detect the inappropriate application of US GAAP rules as more fully described below. This was due to deficiencies that existed in the design or operation of our internal control over financial reporting that adversely affected our internal controls and that may be considered to be material weaknesses.


The matters involving internal controls and procedures that the Company’s management considered to be material weaknesses under the standards of the Public Company Accounting Oversight Board were: (1) lack of a functioning audit committee and lack of a majority of outside directors on the Company's board of directors, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures; (2) inadequate segregation of duties consistent with control objectives; (3) insufficient written policies and procedures for accounting and financial reporting with respect to the requirements and application of US GAAP and SEC disclosure requirements; and (4) ineffective controls over period end financial disclosure and reporting processes. The aforementioned material weaknesses were identified by the Company's Chief Financial Officer in connection with the review of our financial statements as January 31, 2010 and communicated the matters to our management.


Management believes that the material weaknesses set forth in items (2), (3) and (4) above did not affect the Company's financial results. However, management believes that the lack of a functioning audit committee and lack of a majority of outside directors on the Company's board of directors, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures can affect the Company's results and its financial statements for the future years.

We are committed to improving our financial organization. As part of this commitment, we will create a position to  segregate duties consistent with control objectives and will increase our personnel resources and technical accounting expertise within the accounting function when funds are available to the Company: i) Appointing one or more outside directors to our board of directors who shall be appointed to the audit committee of the Company resulting in a fully functioning audit committee who will undertake the oversight in the establishment and monitoring of required internal controls and procedures; and ii) Preparing and implementing sufficient written policies and checklists which will set forth procedures for accounting and financial reporting with respect to the requirements and application of US GAAP and SEC disclosure requirements.

Management believes that the appointment of one or more outside directors, who shall be appointed to a fully functioning audit committee, will remedy the lack of a functioning audit committee and a lack of a majority of outside directors on the Company's Board. In addition, management believes that preparing and implementing sufficient written policies and checklists will remedy the following material weaknesses (i) insufficient written policies and procedures for accounting and financial reporting with respect to the requirements and application of US GAAP and SEC disclosure requirements; and (ii) ineffective controls over period end financial close and reporting processes. Further, management believes that the hiring of additional personnel who have the technical expertise and knowledge will result proper segregation of duties and provide more checks and balances within the department. Additional personnel will also provide the cross training needed to support the Company if personnel turn over issues within the department occur. This coupled with the appointment of additional outside directors will greatly decrease any control and procedure issues the company may encounter in the future.


We will continue to monitor and evaluate the effectiveness of our internal controls and procedures and our internal controls over financial reporting on an ongoing basis and are committed to taking further action and implementing additional enhancements or improvements, as necessary and as funds allow.




9




There have been no changes in our internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Rules 13a-15 or 15d-15 under the Exchange Act that occurred during the small business issuer's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.



PART II - OTHER INFORMATION


Item 1. Legal Proceedings


The Company is not a party to any pending legal proceedings, and no such proceedings are known to be contemplated.


No director, officer, or affiliate of the issuer and no owner of record or beneficiary of more than 5% of the securities of the issuer, or any security holder is a party adverse to the small business issuer or has a material interest adverse to the small business issuer.




Item 2. Unregistered Sales of Equity Securities and  Use of Proceeds


        None.




Item 3. Defaults Upon Senior Securities


        None


Item 4. Submission of Matters to a Vote Security Holders


        None


Item 5. Other Information


    None


Item 6. Exhibits


3.1 Articles of Incorporation [1]


3.2 By-Laws [1]


31.1  Rule 13(a)-14(a)/15(d)-14(a) Certification of Chief Executive Officer


31.2  Rule 13(a)-14(a)/15(d)-14(a) Certification of Chief Financial Officer *


32.1  Section 1350 Certification of Chief Executive Officer


32.2  Section 1350 Certification of Chief Financial Officer **



10





[1]     Incorporated by reference from the Company’s filing with the Commission on March 25, 2009.

*     Included in Exhibit 31.1

**    Included in Exhibit 32.1

                                   

SIGNATURES


Pursuant to the requirements of the Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


                        


ECO ENERGY PUMPS, INC.



BY:      /s/ John David Palmer

 ----------------------

John David Palmer

President, Secretary Treasurer, Principal Executive Officer,

Principal Financial Officer and sole Director



Dated:  April 28, 2010




11





 

Exhibit 31.1  

                                                         


CERTIFICATIONS




I, John David Palmer, certify that:




1. I have reviewed this quarterly report of ECO ENERGY PUMPS, 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, results of operations and cash flows of the small business issuer as of, and for, the periods presented in this report;


4. The registrant’s other certifying officer 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)) and internal control over financial reporting (as defined in the Exchange Act Rules 13a-15(f) and 15d – 15(f)) for the registrant and have:


a) Designed such disclosure controls and procedures, or caused such 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) Designed such internal control over financial reporting, or caused such control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;


c) Evaluated the effectiveness of the registrant’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


d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the small business issuer’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and  


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


a) All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’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 registrant’s internal control over financial reporting.





12





/s/ John David Palmer

- -----------------------------------

John David Palmer


President, Secretary Treasurer, Principal Executive Officer,

Principal Financial Officer and sole Director


Dated:  April 28, 2010



13




           

 

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 on Form 10-Q for the three-month period ending January 31, 2010 of ECO ENERGY PUMPS, INC., a Nevada corporation (the "Company"), as filed with the Securities and Exchange Commission on the date hereof (the "Quarterly Report"), I, John David Palmer, Chairman, President and 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:


1. The Quarterly Report fully complies with the requirements of Section 13(a) or15(d) of the Securities and Exchange Act of 1934, as amended; and


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



/s/ John David Palmer

- -----------------------------------

John David Palmer


President, Secretary Treasurer, Principal Executive Officer,

Principal Financial Officer and sole Director


Dated:  April 28, 2010







14