UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
x10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended November 30, 2009
August 31, 2010 OR
o [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to __________
Commission File Number:file number: 333-118138
Quantum Energy, Inc.
(Exact ------------------------------------------------------ (Exact name of registrant as specified in its charter)
Nevada
98-0428608
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification Number)
Nevada 98-0428608 ------------------------ ------------------------ (State of incorporation) (I.R.S. Employer ID No.) 7250 NWN.W. Expressway, Suite 260
OKLAHOMA CITY,Oklahoma City, OK 73132
(Address --------------------------------------------------------- (Address of principal executive offices)
(405) 728-3800
(Registrant’sZip Code) Issuer's telephone number, including area code)
(Former name, former address and former fiscal year, if changed since last report)
code: (405) 728-3800 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 twelve 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[X] No o
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes o   No o

[ ] Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large"large accelerated filer,” “accelerated filer”" "accelerated filer" and “smaller"smaller reporting company”company") in Rule 12b-2 of the Exchange Act.

Large accelerated filer o[ ] Accelerated filer o

[ ] Non-accelerated filer o[ ] Smaller reporting company x

[X] Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes o[X] No x
At January 7,[ ] As of October 19, 2010, there were 47,000,00047,000 shares of the Registrant’s Common Stockregistrant's common stock outstanding.


PART 1. FINANCIAL FORWARD-LOOKING STATEMENTS This document contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are "forward-looking statements" for purposes of federal and state securities laws, including, but not limited to, any projections of earnings, revenue or other financial items; any statements of the plans, strategies and objections of management for future operations; any statements concerning proposed new services or developments; any statements regarding future economic conditions or performance; any statements or belief; and any statements of assumptions underlying any of the foregoing. Forward-looking statements may include the words "may", "could", "estimate", "intend", "continue", "believe", "expect" or "anticipate" or other similar words. These forward-looking statements present our estimates and assumptions only as of the date of this report. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the dates on which they are made. We do not undertake to update forward- looking statements to reflect the impact of circumstances or events that arise after the dates they are made. You should, however, consult further disclosures we make in future filings of our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and inherent risks and uncertainties. The factors impacting these risks and uncertainties include, but are not limited to: o inability to raise additional financing for working capital and product development; o inability to fulfill and plan an event for an organization; o deterioration in general or regional economic, market and political conditions; o the fact that our accounting policies and methods are fundamental to how we report our financial condition and results of operations, and they may require management to make estimates about matters that are inherently uncertain; o adverse state or federal legislation or regulation that increases the costs of compliance, or adverse findings by a regulator with respect to existing operations; 2 o changes in U.S. GAAP or in the legal, regulatory and legislative environments in the markets in which we operate; o inability to efficiently manage our operations; o inability to achieve future operating results; o our ability to recruit and hire key employees; o the inability of management to effectively implement our strategies and business plans; and o the other risks and uncertainties detailed in this report. In this form 10-Q references to "Your Event", "the Company", "we", "us", and "our" refer to Your Event, Inc. AVAILABLE INFORMATION


ITEM I. FINANCIAL STATEMENTS



We file annual, quarterly and special reports and other information with the SEC. You can read these SEC filings and reports over the Internet at the SEC's website at www.sec.gov. You can also obtain copies of the documents at prescribed rates by writing to the Public Reference Section of the SEC at 100 F Street, NE, Washington, DC 20549 on official business days between the hours of 10:00 am and 3:00 pm. Please call the SEC at (800) SEC-0330 for further information on the operations of the public reference facilities. We will provide a copy of our annual report to security holders, including audited financial statements, at no charge upon receipt to of a written request to us at Quantum Energy, Inc., 7250 N.W. Expressway, Oklahoma City, OK 73132. 3 QUANTUM ENERGY INC.
(An Exploration Stage Company)
INTERIM FINANCIAL STATEMENTS

November 30, 2009






Page
Financial Statements:F-1
Condensed Balance Sheets
F-2
Condensed Statements of Operations
F-3
Condensed Statements of Cash Flow
F-4
Notes to Interim Financial Statements
F-5




See Accompanying Notes




QUANTUM ENERGY, INC.
INTERIM BALANCE SHEETS
(Stated in US Dollars)

 November 30,February 28,
 20092009
ASSETS
(Unaudited) 
   
Current assets  
     Cash and cash equivalents$                828$             1,036
   
Other assets  
Other equipment, net of accumulated depreciation of $4,865197787
   
TOTAL ASSETS$             1,025$             1,823
   
LIABILITIES AND STOCKHOLDERS’ (DEFICIT)
   
Current liabilities  
Accounts payable and accrued liabilities
$         550,831$         442,384
     Promissory notes payable
2,017,708
2,017,708
Due to related party20,25020,250
Total current liabilities2,588,7892,480,342
Common stock issuance liability               762,500762,500
         Total liabilities3,351,289
3,242,842
   
Stockholders’ (deficit)  
Common stock, par value $0.001 per share:  
75,000,000 shares authorized: 47,000,000  
Shares issued and outstanding, respectively  47,00047,000
Additional paid-in capital
1,685,913
1,685,913
Retained (deficit)
(5,083,177)
(4,973,932)
Total stockholders’ (deficit)
(3,350,264)
(3,241,019)
   
TOTAL LIABILITIES AND STOCKHOLDERS’ (DEFICIT)$             1,025$             1,823












F- 1




SEE ACCOMPANYING NOTES


August 31, February 28, 2010 2010 Unaudited Audited ------------ ------------ Assets Current assets Cash and cash equivalents $ 671 $ 784 ------------ ------------ Total current assets $ 671 $ 784 ============ ============ Liabilities and Stockholders' (Deficit) Current liabilities Accounts payable and accrued liabilities $ 643,684 582,093 Promissory notes payable 2,017,708 2,017,708 Due to related party 20,250 20,250 ------------ ------------ Total current liabilities 2,681,642 2,620,051 Common stock issuance liability 762,500 762,500 ------------ ------------ Total liabilities 3,444,142 3,382,551 Stockholders' (deficit) Common stock, par value $0.001 per share: 75,000,000 shares authorized: 47,000 shares issued and outstanding, respectively 47 47 Additional paid-in capital 1,732,866 1,732,866 Accumulated (deficit) (5,176,384) (5,114,680) ------------ ------------ Total stockholders' (deficit) (3,443,471) (3,381,767) ------------ ------------ Total Liabilities and Stockholders' (deficit) $ 671 $ 784 ============ ============
The accompanying notes are an integral part of these financial statements 4 QUANTUM ENERGY INC.
INTERIM STATEMENTS OF OPERATIONS
For the nine months ended November 30, 2009 and 2008
(Stated Statements of Operations (Stated in US Dollars)
(Unaudited)

 Three months endedNine months ended
 November 30,November 30,
  2009200820092008
     
Net oil and gas revenue $           -$          -$              -$              -
     
     
Operating expenses    
Amortization, depletion and depreciation472296591557
Management fees -7,5003,00023,900
Marketing
 - 427-9,043
Office and administration
 583868362,492
Professional fees
 2,94712,49616,83041,130
Total operating expenses3,47721,10521,25777,122
     
Net loss before other income (expenses)(3,477) (21,105)(21,257)(77,122)
     
Other items    
Interest expense(26,447)(25,953) (79,923) (77,877)
Currency translation(1,879)4,619(8,065)6,227
Total other income (expenses)(28,326)(21,334)(87,988)(71,650)
     
     
Net loss (31,803)(42,449)$  (109,245)$ (148,772)
     
Basic and diluted loss per share $    (0.00)$        (0.00)$        (0.00)$       (0.00)
     
Weighted average number of shares outstanding47,000,00047,000,000 47,000,000 47,000,000
     
     
     
     
     
     











F-2

SEE ACCOMPANYING NOTES

Three Months Ended Six Months Ended August 31, August 31, 2010 2009 2010 2009 ------------- ------------- ------------- ------------- Net oil and gas revenue $ - $ - $ - $ - ------------- ------------- ------------- ------------- Operating expenses Amortization, depletion and depreciation - 59 - 118 Management fees - - - 3,000 Office and administration 44 375 113 779 Professional fees 961 10,013 8,919 13,882 ------------- ------------- ------------- ------------- Total operating expenses 1,005 10,447 9,032 17,779 ------------- ------------- ------------- ------------- Net loss before other income (expenses) (1,005) (10,447) (9,032) (17,779) Other income (expenses) Interest expense (26,738) (26,738) (53,476) (53,476) Currency translation 1,302 (2,597) 804 (6,186) ------------- ------------- ------------- ------------- Total other income (expenses) (25,436) (29,335) (52,672) (59,662) ------------- ------------- ------------- ------------- Net loss $ (26,441) $ (39,782) $ (61,704) $ (77,441) ============= ============= ============= ============= Basic and diluted loss per share $ (0.56) $ (0.85) $ (1.31) $ (1.65) ============= ============= ============= ============= Weighted average number of shares outstanding 47,000 47,000 47,000 47,000 ============= ============= ============= =============
The accompanying notes are an integral part of these financial statements 5 QUANTUM ENERGY INC.
IMTERIM STATEMENTS OF CASH FLOWS
For the nine months ended November 30, 2009 and 2008
(Stated Statements of Cash Flows (Stated in US Dollars)
(Unaudited)


  Nine months ended
   November 30,
   20092008
     
Operating Activities    
Net loss
  $    (109,245)$    (148,772)
Adjustment to reconcile net loss to net cash used by operating activities    
Amortization, depreciation and depletion  591557
Changes in operating assets and liabilities    
Prepaid expenses  -2,500
Accounts payable and accrued liabilities  108,44676,358
Related party payable  -7,950
     
Cash (used in) operating activities  (208)(61,407)
     
Financing Activities    
Promissory notes payable  -22,948
Cash provided by financing activities  -22,948
     
Decrease in cash during the period  
(208)
 (38,459)
     
Cash, beginning of the period  
1,036
40,823
     
Cash, end of the period  $           828   $        2,364
     
Supplemental disclosure of cash flow information:    
Cash paid for income tax purposes  $                -$                 -
Cash paid for interest  $                -$                 -
     

















F-3


SEE ACCOMPANYING NOTES


Six Months Ended August 31, 2010 2009 ------------- ------------- Operating Activities Net loss $ (61,704) $ (77,441) Adjustment to reconcile net loss to net cash used by operating activities Amortization, depreciation and depletion - 118 Changes in operating assets and liabilities Accounts payable and accrued liabilities 61,591 77,167 ------------- ------------- Cash (used in) operating activities (113) (156) ------------- ------------- Decrease in cash during the period (113) (156) Cash, beginning of the period 784 1,036 ------------- ------------- Cash, end of the period $ 671 $ 880 ============= ============= Supplemental disclosure of cash flow information: Cash paid for interest $ - $ - ============= =============
The accompanying notes are an integral part of these financial statements 6 QUANTUM ENERGY INC.
STATEMENT OF STOCKHOLDERS’ (DEFICIT)
For Notes to the nine months ended November 30, 2009
(Stated in US Dollars)
(Unaudited)




 Common SharesPaid - inAccumulated 
 NumberPar ValueCapital(Deficit)Total
      
Balance, February 28, 200947,000,00047,0001,685,913(4,973,932)(3,241,019)
      
Loss for the period---(109,245)(109,245)
      
Balance, November 30, 200947,000,000$ 47,000$ 1,685,913(5,083,177)(3,350,264)
      































F-4

QUANTUM ENERGY, INC.
NOTES TO THE INTERIM FINANCIAL STATEMENTS
November 30, 2009
(Stated in US Dollars)
(Unaudited)


Note 1                 Basis of Presentation of Interim Financial Statements

While the August 31, 2010 Note 1 Interim Reporting The information presented in the accompanying interim nine-monththree-month financial statements is unaudited, it includes all adjustments which are, inunaudited. In the opinion of management, the accompanying financial statements reflect all adjustments necessary to present fairly theour financial position at August 31, 2010, results of operations and cash flows for the interim period presented.six months ended August 31, 2010 and 2009. All such adjustments are of a normal recurring nature. Except as disclosed below, theseIn preparing the accompanying financial statements, management has made certain estimates and assumptions that affect reported amounts in the financial statements and disclosures of contingencies. Actual results may differ from those estimates. The results for interim periods are not necessarily indicative of annual results. These interim financial statements follow the same accounting policies and methods of their application as Quantum Energy, Inc.’s (“'s ("the Company’s”Company's") audited February 28, 20092010 annual financial statements.

The results of operations for the nine-month period ended November 30, 2009, are not necessarily indicative of the results to be expected for the year ending February 28, 2010.

These unaudited interim Accordingly, these financial statements should be read in conjunction with the February 28, 20092010 audited financial statements of the Company.

Note 2 Nature and Continuance of Operations

a)  Organization

Boomers and Going Concern QUANTUM ENERGY INC. ("the Company") was incorporated under the name "Boomers Cultural Development Inc. (“" under the Company”) was incorporated inlaws of the State of Nevada United States of America, on February 5, 2004. On May 18, 2006 the name of the Company wascompany changed from Boomers Cultural Development Inc.its name to Quantum Energy Inc.

b)  Going Concern

These financial statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern, which assumes that the Company will be able to meet its obligations and continue its operations for its next fiscal year.  Realization values may be substantially different from carrying values as shown and these financial statements do not give effect to adjustments that would be necessary to the carrying values and classification of assets and liabilities should the Company be unable to continue as a going concern.  At November 30, 2009, the Company had not yet achieved profitable operations, has accumulated losses of ($5,083,177) since its inception, has a working capital deficiency of $2,587,961 and expects to incur further losses in the development of its business, all of which casts substantial doubt about the Company’s ability to continue as a going concern.  The Company’s ability to continue as a going concern is dependent upon its ability to generate future profitable operations and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due.  Management has no formal plan in place to address this concern but considers that the Company will be able to obtain additional funds by equity financing and/or related party advances, however there is no assurance of additional funding being available.

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles inapplicable to a going concern, which assumes that the United StatesCompany will be able to meet its obligations and continue its operations for its next fiscal year. Realization values may be substantially different from carrying values as shown and these financial statements do not give effect to adjustments that would be necessary to the carrying values and classification of America. Because a precise determination of many assets and liabilities should the Company be unable to continue as a going concern. The continuation of the Company as a going concern is dependent upon future events, the preparationcontinued financial support from its shareholders, the ability of financial statements forthe Company to obtain necessary equity financing to continue operations and to determine the existence, discovery and successful exploitation of economically recoverable reserves in its resource properties, confirmation of the Company's interests in the underlying properties, and the attainment of profitable operations. At August 31, 2010, the Company had not yet achieved profitable operations, has a period necessarily involvesworking capital deficiency of $2,680,971 and expects to incur further losses in the usedevelopment of estimates, which have been made using careful judgment. Actual results may vary from these estimates.


F-5



its business. These factors raise substantial doubt regarding the Company's ability to continue as a going concern. 7 QUANTUM ENERGY INC.
NOTES TO THE INTERIM FINANCIAL STATEMENTS
November 30, 2009
 (Stated in US Dollars)
(Unaudited)

Notes to the Interim Financial Statements August 31, 2010 Note 2                 3 Summary of Significant Accounting Policies

The financial statements have, in management’smanagement's opinion been properly prepared within reasonable limits of materiality and within the framework of the significant accounting policies summarized below:

a) Cash and Cash Equivalents

For purposes of the balance sheet and the statement ofCash Equivalents Cash and cash flows, the Company considers allequivalents include highly liquid debt instruments purchasedinvestments with maturityoriginal maturities of three months or less to beless. As at August 31, 2010, cash equivalents. Asand cash equivalents consist of November 30, 2009,cash only. b) Foreign Currency Translation The Company's functional currency is the Company had no cash equivalents

b)  Foreign Currency Translation

United States dollar. The Company’sCompany uses the U.S.United States dollar as its reporting currency for consistency with registrants of the Securities and Exchange Commission (“SEC”("SEC") and in accordance with the SFAS No. 52. TransactionsASC 830-10. Assets and liabilities were translated at the exchange rate in Canadian dollarseffect at the period end and capital accounts are translated into U.S. dollars as follows:

i)  monetary items at the rate prevailing at the balance sheet date;
ii)  non monetary items at the historical exchange rate;
iii)  revenue and expenses at the average rate in effect during the period.

Gainsat historical rates. Income statement accounts are translated at the average rates of exchange prevailing during the period. Any exchange gains and losses are recordedincluded in the statementStatement of operations.

c)  Other Equipment

Other equipment is recorded at cost.  DepreciationOperation. Note 4 Common Stock Effective July 30, 2010, the Board of computer equipment is atDirectors authorized a rate1,000 for 1 reverse stock split of 30% per annum, on a straight-line basis.  Depreciation of office equipment is at a rate of 20% per annum, on a straight-line basis.

d)  Basic and Diluted Loss Per Share

In accordance with SFAS No. 128 – “Earnings per Share”, the basic loss perCompany's issued common share is computed by dividing net loss availablestock. One thousand (1,000) old issued common shares were reverse split into one (1) new issued common share. All references in the accompanying financial statements to common stockholders by the weighted average number of common shares outstanding.  Diluted loss per common share is computed similarissued have been restated to basic loss per common share except thatreflect the denominator is increased to include thereverse stock split. The authorized number of additional common shares that would have been outstanding if the potentialremains at 75,000,000 common shares had beenwith a par value of $0.001. At August 31, 2010, 47,000 shares of common stock were issued and if theoutstanding. The Company has agreed to issue an additional common250 shares were dilutive.  At November 30, 2009, the Company had no stock equivalents that were anti-dilutive and excluded in the earnings per share computation.

e)  Financial Instruments

The carrying value of the Company’s financial instruments consisting of cash, accounts payable, accrued liabilities and notes payable approximate their fair value dueCompany's common stock to the short term maturity of such instruments.  Unless otherwise noted, it is management’s opinion that the Company is not exposed to significant interest, currency or credit risks arising from these financial statements.



F-6

SEE ACCOMPANYING NOTES


a debt holder. 8 QUANTUM ENERGY INC.
NOTES TO THE INTERIM FINANCIAL STATEMENTS
November 30, 2009
 (Stated Notes to the Interim Financial Statements August 31, 2010 Note 5 Promissory Notes Payable The Company's outstanding notes payable and accrued interest are summarized as follows: August 31, 2010 Note Payable Accrued Interest ---------------------------------- Fourteen (14) 4% notes payable to investors in US Dollars)
(Unaudited)


Note 2                 Significant Accounting Policies (continued)

Recent Accounting Pronouncements

On December 12, 2007, the Financial Accounting Standards Board ratified the consensus reachedoil and gas investments by the Emerging Issues Task ForceCompany, unsecured and due on Issue No. 07-01 “Accounting for Collaborative Arrangements”. Thisdemand $1,594,760 $325,953 10% note payable to an investor in oil and gas investments by the Company, unsecured and due on demand 172,948 74,018 10% note payable to a company that sold oil and gas properties to the Company, secured by the oil and gas properties and due on demand 250,000 87,601 ---------------------------------- $2,017,708 $487,572 ================================== In 2006 the Company agreed to issue will be effective250,000 shares of its common stock in connection with the purchase of oil and gas properties. Due to non-payment of the $250,000 note payable by the Company these shares were valued at $3.05 per share and interest expenses of $381,250 was recognized for the fiscal year beginning January 1,years ended February 28, 2007 and 2009. This pronouncement isThe 250,000 shares have not expectedbeen issued as of August 31, 2010, therefore, the liability section of the accompanying balance sheet reflects a "Common stock issuance liability" of $762,500. Interest expense related to have a material impact on the Company’snotes payable at August 31, 2010 was $53,476 ($53,476 - 2009). Note 6 Subsequent Events The Company has evaluated subsequent events through October 19, 2010, the date which the financial statements were available to be issued and has determined that there were no subsequent events that warrant disclosure or recognition in the financial statements.
In September 2006, 9 ITEM 2. MANAGEMENT DISCUSSSION AND ANALYSIS OR PLAN OF OPERATION Overview The following discussion and analysis is intended to help the Financial Accounting Standards Board issued Statementreader understand our business, financial condition, results of Financial Accounting Standards No. 157, “Fair Value Measurements” (SFAS 157), which provides expanded guidance for using fair value to measure assetsoperations, liquidity and liabilities. SFAS 157 establishes a hierarchy for data used to value assetscapital resources. This discussion and liabilities at fair value, the information used to measure fair value,analysis should be read in conjunction with our financial statements and the effect of fair value measurements on earnings. Implementation of SFAS 157 was required on January 1, 2008 for financial assets and liabilities,accompanying notes included in this report, as well as other assetsour audited financial statements and liabilitiesthe accompanying notes included in our annual report on Form 10-K/A for the year ended February 28, 2010. The financial information with respect to the six month periods ended August 31, 2010 and August 31, 2009 that are carried at fair value on ais discussed below is unaudited. In the opinion of management, this information contains all adjustments, consisting only of normal recurring basis inaccruals, necessary to state fairly the unaudited financial statements. FASB Financial Staff Position No. FAS 157-2 deferred implementationThe results of operations for other non-financial assets and liabilities for one year. Examples of non-financial assets and liabilitiesthe interim periods are asset retirement obligations and non-financial assets and liabilities initially measured at fair value in a business combination. The adoption of SFAS 157 did not have a material impact on the financial statements.
The Financial Accounting Standards Board revised Statement of Financial Accounting Standards No. 141 (Revised 2007) “Business Combinations” (SFAS 141R) in 2007. The revision broadens the application of SFAS 141 to cover all transactions and events in which an entity obtains control over one or more other businesses. This standard requires that transaction costs related to business combinations be expensed rather than be included in the acquisition cost. This Statement applies prospectively to business combinations for which the acquisition date is on or after the beginningnecessarily indicative of the first annual reporting period beginning on or after December 15, 2008. The impactresults of this standard will be on the fair value recorded for future business combinations after adoption.
On February 2007, the Financial Accounting Standards Board issued Statement No. 159 “The Fair Value Option for Financial Assets and Financial Liabilities – Including an amendment of FASB Statement No. 115”. The fair value option established by this statement permits all entities to choose to measure eligible items at fair value at specified election dates. Companies are required to report unrealized gains and losses on items for which the fair value option has been elected in earnings at each subsequent reporting date. This Statement is effective as of the beginning of an entity’s first fiscal year that begins after November 15, 2007. It does not affect any existing accounting literature that requires certain assets and liabilities to be carried at fair value. The Company has not elected the fair value option for any eligible items.

In December 2007, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 160 “Noncontrolling Interest in Consolidated Financial Statements – an Amendment of ARB 51” (SFAS 160). SFAS 160 clarifies that a noncontrolling interest in a subsidiary is an ownership interest in the consolidated entity that should be reported as equity in the consolidated financial statements. It also requires consolidated net income to be reported at amounts that include the amounts attributable to both parent and the noncontrolling interest, and requires disclosure, on the face of the consolidated statement of income, of the amounts of consolidated net income attributable to the parent and to the noncontrolling interest. SFAS 160 is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2008. Adoption of this standard does not have a material impact on the Company’s financial statements.
F-7

SEE ACCOMPANYING NOTES

QUANTUM ENERGY, INC.
NOTES TO THE INTERIM FINNCIAL STATEMENTS
November 30, 2009
 (Stated in US Dollars)

Note 2                 Significant Accounting Policies (continued)

Recent Accounting Pronouncements (continued)

In March 2008, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 161 “Disclosures about Derivative Instruments and Hedging Activities – An Amendment of FASB Statement No. 133” (SFAS 161), that requires new and expanded disclosures regarding hedging activities. These disclosures include, but are not limited to, a prescribed tabular presentation of derivative data; financial statement presentation of fair values on a gross basis, including those that currently qualify for netting under FASB Interpretation No. 39’ and specific footnote narrative regarding how and why derivatives are used. The disclosures are required in all interim and annual reports. SFAS 161 is effective for fiscal and interim periods beginning after November 15, 2008.

On December 31, 2008, the SEC published the final rules and interpretations updating its oil and gas reporting requirements. Many of the revisions are updates to definitions in the existing oil and gas rules to make them consistent with the petroleum resource management system, which is a widely accepted standardoperations for the management of petroleum resources that was developed by several industry organizations. Key revisions include the ability to include nontraditional resources in reserves, the use of new technology for determining reserves, permitting disclosure of probable and possible reserves, and changes to the pricing used to determine reserves in that companies must use a 12-month average price. The average is calculated using the first-day-of-the-month price for each of the 12 months that make up the reporting period. The SEC will require companies to comply with the amended disclosure requirements for registration statements filed after January 1, 2010, and for annual reports forfull fiscal years ending on or after December 15, 2009. Early adoption is not permitted. The Company is currently evaluating the impact that the adoption will have on the financial statements.
























F- 8



SEE ACCOMPANYING NOTES


ITEM 2. MANAGEMENT’S DISCUSSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview
year. Unless the context otherwise requires, all preferencesreferences to “Quantum,” “our,” “us,” “we”"Quantum," "our," "us," "we" and the “Company”"Company" refer to Quantum Energy, Inc. and its subsidiaries, as a combined entity.
We were incorporated on February 5, 2004, in the State of Nevada. Our principal executive offices are located at 7250 NW Expressway, Suitesuite 260, Oklahoma City, OK. Our telephone number is (405) 728-3800.
Starting in May of 2006, we decided to embark on a new business path in oil and gas exploration and acquisitions. We acquired interests in numerous oil and& gas properties in the Barnett Shale area of West Texas. Our business strategy is to acquire interest in the properties of, and working interests in the production owned by, established oil and gas production companies, whether public or private, in the United States oil producing areas. We believe such opportunities exist in the United States. We also believe that these opportunities have considerable future potential for the development of additional oil reserves. Such new reserves might come from the development of existing but as yet undeveloped reserves as well as from future success in exploration.

Barnett Shale Developments; after the initial success of the Barnett Shale leases, the production program in the Barnett Shale area encountered substantial difficulties. Numerous wells throughout this extensive area experienced production difficulties. In addition to the production problems was the severe drop in natural gas prices. All of the wells in which the Company had interests were suspended and all marginal wells have been capped, resulting in the Company abandoning the Company’sCompany's interest in the Barnett Shale area
When and if funding becomes available, we plan to acquire high-quality oil and gas properties, primarily "proven producing and proven undeveloped reserves." We will also explore low-risk development drilling and work-over opportunities with experienced, well-established operators.
Results 10 Liquidity and Capital Resources At August 31, 2010 the Company had a working capital deficiency of Operations
Three months ended November 30, 2009 compared to three months ended November 30, 2008
Revenues for the three months ended November 30, 2009 and November 30, 2008 were $nil.
Operating expenses totaled $3,447 for the three months ended November 30, 2009$2,680,971 as compared to operating expenses$2,619,267 as at February 28, 2010. The total assets of $21,105 for the three months ended November 30, 2008. This was a decreaseCompany were $671, consisting of $17,658 or 84%. This decrease was primarily due to a decrease in management fees, professional fees, office and administration expenses and marketing costs incurred by the Company.
Interest expense for the three months ended November 30, 2009 was $26,447 ascash compared to interest expensestotal assets of $25,963 for$784 at February 28, 2010. At August 31, 2010 the three months ended November 30, 2008.total current liabilities of the Company increased to $2,681,642 from $2,620,051 at February 28, 2010. This was an increase of $484 and consistent with the interest calculations computed on funds from the date the funds were received.
The net loss for the three months ended November 30, 2009 was $31,803 as compared to $42,449 for the three months ended November 30, 2008. The decrease in losses for the three months ended November 30, 2009current liabilities was due to the decrease in operating expenses.
Nine months ended November 30, 2009 compared to nine months ended November 30, 2008
Revenues for the nine months ended November 30, 2009 and November 30, 2008 were $nil.
Operating expenses totaled $21,257 for the nine months ended November 30, 2009 as compared to operating expenses of $77,122 for the nine months ended November 30, 2008. This was a decrease of $55,865 or 72%. This decrease was primarily due to a decrease in management fees, professional fees, office and administration expenses and marketing costs incurred by the Company.
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Interest expense for the nine months ended November 30, 2009 was $79,923 as compared to interest expenses of $77,877 for the nine months ended November 30, 2008. This was an increase of $2,046 and consistent with the interest calculations computed on funds from the date the funds were received.
The net loss for the nine months ended November 30, 2009 was $109,245 as compared to $148,772 for the nine months ended November 30, 2008. The decrease in losses for the nine months ended November 30, 2009 was due to the decrease in operating expense.
Liquidity and Capital Resources
Total current assets as of November 30, 2009 were $828 as compared to $1,036 as of February 29, 2009, all in cash. Additionally, we had a shareholders’ deficit in the amount of $3,350,264 as of November 30, 2009 as compared to $3,241,019 as of February 28, 2009, a direct result of the Company not obtaining sufficient revenues.
accrued interest. The Company had a negative cash flow of $208$113 from operating activities for ninethe six months ended November 30,August 31, 2010 ($156 - 2009) a decrease of cash outflow of $43. Results of Operations Three months ended August 31, 2010 to three months ended August 31, 2009 asFor the three (3) months ended August 31, 2010 operating expenses were $1,005 compared to $10,447 for the three (3) months ended August 31, 2009. This decrease of $9,442 was due to a decrease in professional fees and administration costs. The Company posted a net loss of $26,441 for the three (3) months ended August 31, 2010, compared to a negative cash flownet loss of $61,407$39,782 for the ninethree (3) months ended November 30, 2008,August 31, 2009. Six months ended August 31, 2010 to six months ended August 31, 2009 For the six (6) months ended August 31, 2010 operating expenses were $9,032 compared to $17,779 for the six (6) months ended August 31, 2009. This decrease of $8,747 was due to a decrease in cash outflowprofessional fees, management fees and administration costs. The Company posted a net loss of approximately 99%. This$61,704 for the six (6) months ended August 31, 2010, compared to a net loss of $77,441 for the six (6) months ended August 31, 2009. The decrease of $15,737 was the result ofdue to a decrease in our net loss for the period, partially offset by an increase in our accounts payable and accrued liabilities.
There was no cash inflow from financing activities.
The on-going negative cash flow from operations raises substantial doubt about our ability to continue as a going concern. The Company’s ability to continue as a going concern is dependent on the ability to raise additional capital and implement its business plan.
The Company has not attained profitable operations and will require additional funding in order to cover the anticipated professional fees and general administrativeoperating expenses and to proceed with the anticipated investigation to identify and purchase new mineral properties worthy of exploration or any other business opportunities that may become available to it. The Company anticipates that additional funding will be required in the form of equity financing from the sale of common stock. However, the Company cannot provide investors with any assurance that sufficient funding from the sale of common stock to fund the purchase and the development of any future projects can be obtained. The Company believes that debt financing will not be an alternative for funding future corporate programs. The Company does not have any arrangements in place for any future equity financings.
As of November 30, 2009 the Company had a working capital deficiency of $2,587,961 as compared to $2,479,306 as of February 28, 2009. A major portion of debt is attributed to payments made for mineral properties, and operating deficiency.
currency translation costs. At November 30, 2009August 31, 2010 there was no bank debt.
Off-Balance Sheet Arrangements
There are no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to stockholders.
11 Going Concern
The Company has not attained profitable operations and is dependent upon obtaining financing to pursue its business objectives. For these reasons, the Company’sCompany's auditors stated in their report on the Company’sCompany's audited financial statements that they have substantial doubt the Company will be able to continue as a going concern without further financing.

The Company may continue to rely on equity sales of the common shares in order to continue to fund the Company’sCompany's business operations. Issuances of additional shares will result in dilution to existing stockholders. There is no assurance that the Company will achieve any additional sales of the equity securities or arrange for debt or other financing to fund planned business activities.
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ITEM Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Not applicable.

ITEM 4.  CONTROLS AND PROCEDURES.
Evaluation of Disclosure Controls and Procedures
We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed by us in As of the reports that we file or submit toend of the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified by the Securities and Exchange Commission’s rules and forms, and that information is accumulated and communicated to our management, including our principal executive and principal financial officer (whom we refer to in this periodic report as our Certifying Officer), as appropriate to allow timely decisions regarding required disclosure. Our management evaluated, with the participation of our Certifying Officer, the effectiveness of our disclosure controls and procedures as of November 30, 2009, pursuant to Rule 13a-15(b) under the Securities Exchange Act. Based upon that evaluation, our Certifying Officer concluded that, as of November 30, 2009, our disclosure controls and procedures were effective.
Changes in Internal Controls
Therenine (9) months ended January 31, 2010, there were no changes in our internal control over financial reporting that occurred during the quarter ended November 30, 2009, that havehas materially affected, or areis reasonably likely to materially affect, our internal control over financial reporting.

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PART II
Item 1. Legal Proceedings.
We are not currently a party to any legal proceedings and, to our knowledge, no such proceedings are threatened or contemplated.
Item 1.A. Risk Factors
Not applicable.
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 of Security Holders.
None.
Item 5. Other Information.
None.
Item 6. Exhibits
Exhibit No.
Description of Exhibit
31.1
Rule 13a-14 Certification of Chief Executive Officer and Chief Financial Officer
32.1
Section 1350 Certification of Chief Executive Officer  and Chief Financial Officer

Exhibit No. Description of Exhibit - ----------- ---------------------- 31.1 Rule 13a-14 Certification of Chief Executive Officer and Chief Financial Officer 32.1 Section 1350 Certification of Chief Executive Officer and Chief Financial Officer 13 SIGNATURES
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.
Quantum Energy, Inc.



QUANTUM ENERGY INC. By: /s/ Sharon Farris
--------------------------- Sharon Farris
President and Chief Executive Officer (acting principal financial officer)
Date: January 13,October 19, 2010



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