UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

FORM 10-Q

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

For the quarterly period ended September June 30, 2017.2021.

or

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

For the transition period from ____________________________________ to ________________________________________

Commission File Number:file number 333-139746

TRANSACT ENERGY CORP.

(Exact name of registrant as specified in its charter)

210-888-0785

(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

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. [X]Yes [   ] No

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). [X] Yes [   ] 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. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). [   ] Yes [X] No

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.court [   ] Yes [   ] No

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as ofSeptemberJune 30, 20172021:

55,189,298

61,630,907 common shares issued and outstandingoutstanding. 0 preferred shares.

1

PART I - FINANCIAL INFORMATION

ITEM 1. 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 SeptemberJune 30, 20172021 and 20162020 and for the periods then ended 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 December 31, 20162020 management prepared financial statements. The results of operations for the periods ended SeptemberJune 30, 20172021 and 20162020 are not necessarily indicative of the operating results for the full year.

TRANSACT ENERGY CORP.

[A Development Stage Company]

FINANCIAL STATEMENTS

September 30, 2017

(Unaudited – Prepared by Management)

TRANSACT ENERGY CORP.

[A Development Stage Company]Company]

(Unaudited - Prepared by Management)

2

3

4

5

TRANSACT ENERGY CORP.

[(A Development Stage Company]Company)

NOTES TO INTERIM BALANCE SHEET

(Unaudited - Prepared by Management)

FINANCIAL STATEMENTS

June 30, 2021

(Unaudited – Prepared by Management)

SEPTEMBER 30, 2017

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization- TransAct Energy Corp. (“the Company”) was organized under the laws of the State of Nevada on March 15, 2006. The Company is in the business of developing and managing zero emission waste optimizationto value plants globally. The Company has generated nominal revenues and is considered a development stage company as defined in Accounting Standards Codification (“ASC”) Topic No. 915. The Company has, at the present time,now, not paid any dividends and any dividends that may be paid in the future will depend upon the financial requirements of the Company and other relevant factors.

Interim Condensed Financial Statements -The accompanying interim 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 SeptemberJune 30, 20172021 and 20162020 and for the periods then ended 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 December 31, 20162020 unaudited financial statements. The results of operations for the periods ended SeptemberJune 30, 20172021 and 20162020 are not necessarily indicative of the operating results for the full year.

Cash and Cash Equivalents - The Company considers all highly liquid debt investments purchased with a maturity of three months or less to be cash equivalents.

Software and related amortization- Software is recorded at cost and the Company provides for amortization using the straight linestraight-line method over three years.one year.

Income Taxes -The Company accounts for income taxes in accordance with ASC Topic No. 740, “Accounting for Income Taxes.”

The Company adopted the provisions of ASC Topic No. 740, “Accounting for Income Taxes”, on January 1, 2007. As a result of the implementation of ASC Topic No. 740, the Company recognized approximately no increase in the liability for unrecognized tax benefits.

The Company has no tax positions at September 30, 2017on December 31, 2020 and 20162019 for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility.

The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. During the years ended December 31, 20162020 and 2015,2019, the Company recognized no interest and penalties. The Company had no accruals for interest and penalties at SeptemberJune 30, 20172021 and September 30, 2016. All tax years starting with 2008 are open for examination.2020.

Loss Per Share - The computation of loss per share is based on the weighted average number of shares outstanding during the period presented in accordance with ASC Topic No. 260, “Earnings Per Share” [See Note 11]9].

Accounting Estimates- The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimated by management.

Recently Enacted Accounting Standards- In September 2009, the FASB established the Accounting Standards Codification (“Codification” or “ASC”) as the source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in accordance with generally accepted accounting principles in the United States (“GAAP”). Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) issued under authority of federal securities laws are also sources of GAAP for SEC registrants. Existing GAAP was not intended to be changed as a result of the Codification, and accordingly the change did not impact our financial statements. The ASC does change the way the guidance is organized and presented.

6

TRANSACT ENERGY CORP.

[A Development Stage Company]Company]

NOTES TO FINANCIAL STATEMENTS

June 30, 2021

(Unaudited – Prepared by Management)

SEPTEMBER 30, 2017

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Accounting Standards Update (“ASU”) ASU No. 2009-05 (ASC Topic 820), which amends Fair Value Measurements and Disclosures – Overall, ASU No. 2009-13 (ASC Topic 605), Multiple-Deliverable Revenue Arrangements, ASU No. 2009-14 (ASC Topic 985), Certain Revenue Arrangements that include Software Elements, and various other ASU’s No. 2009-2 through ASU No. 2011-8 which contain technical corrections to existing guidance or affect guidance to specialized industries or entities were recently issued. These updates have no current applicability to the Company or their effect on the financial statements would not have been significant.

Investment in Leases -All costs such as bid fees and lease rental payments related to the acquisition of energy leases are deferred and amortized on a straight-line basis over the term of the lease (See Note 3).

lease.

Foreign Currency Translation- The Financial statements are presented in United States dollars. In accordance with ASC 830 “Foreign Currency Matters”, foreign denominated monetary assets and liabilities are translated into their United States dollar equivalents using foreign exchange rates which prevailed at the balance sheet date. Non-monetary assets and liabilities are translated at the exchange rates prevailing at the transaction date. Revenue and expenses are translated at average rate of exchange during the year. Gains or losses resulting from foreign currency transactions are included in results of operation.

Stock Offering Costs - Costs incurred in connection with stock offerings will be deferred and offset against the proceeds of the stock offering. Costs incurred in connection with unsuccessful offerings will be expensed.

Reclassification – Certain prior year amounts have been reclassified to conform with current year presentation.

NOTE 2 – LOANS RECEIVABLE – RELATED PARTY

The $12,000, $5,000, $7,000, $212,000 and $12,520 loans receivable from a company whose sole shareholder holds less than 10% in TransAct, are secured and were due on November 1, November 10, November 29, December 6 and December 6, 2010, respectively. The loans are secured by certain assets and equipment of the company and bear interest at rates between 15% and 18% per annum for the terms of the loans. At

On June 30, 2011 and December 31, 2010 interest receivable was $50,954. These notes have not been granted an extension, are in default and management has formally demanded payment of the outstanding principal and interest and may pursue legal action if the cost of said action can be justified. At December 31, 2010 the Company recorded a total allowance of $299,475 charged to operations including principal of $248,521 and interest of $50,954.

NOTE 3 –- SOFTWARE

NOTE 4 – NOTES PAYABLE

The $10,000 convertible promissory note payable to a company whose shareholders hold less than 10% in TransAct is unsecured, bears interest at 10% per annum and was due and payable on March 31, 2010. The payee had the option to convert the entire principal amount on or before April 29, 2009 into common shares of the Company based on a conversion rate of $.00345 per share. No interest was payable if the principal was converted to shares of the Company. The payee did not exercise its conversion option. The note is currently outstanding and in October 2010 the Company issued a check in the amount of $11,876 as payment in full of principal and interest which was returned un-cashed by the payee. The Company is currently in dispute regarding the expiration date of the conversion option in the agreement and the note remains in default. At SeptemberOn June 30, 2017,2021, accrued interest was $ 8,935$12,686.

The $17,500 promissory note payable to a company whose shareholders hold less than 10% in TransAct is unsecured, bears interest at 10% per annum and is due on demand. This note is currently in default. At SeptemberOn June 30, 2017,2021, accrued interest was $14,881.$21,448.

7

TRANSACT ENERGY CORP.

[A Development Stage Company]Company]

NOTES TO FINANCIAL STATEMENTS

June 30, 2021

(Unaudited – Prepared by Management)

SEPTEMBER 30, 2017

NOTE 4 -– NOTES PAYABLE – CONTINUED

The $25,000 convertible promissory note dated June 10, 2010 and $40,000 convertible promissory note dated October 5, 2010 bore interest at 8% per annum and were due and payable on March 11, 2011 and July 7, 2011, respectively.

The holder had the option to convert the entire principal amount of each particular note on or before March 11, 2011 and July 7, 2011 into common shares of the Company based on a conversion rate of 60% of the market price being the average of the lowest three trading prices over the past ten days prior to the conversion. At no time, could the holder convert into an amount of shares which would result in the holder and its affiliates to beneficially own more than 4.99% of the outstanding shares of common stock. In February 2011 the holder elected to convert $12,000 of the June 10, 2010 note into 404,040 common shares of the Company which were issued. In February 2011 the terms of the June 10, 2010 and October 5, 2010 convertible promissory notes were amended by both parties to include a repayment option. Under this repayment option the borrower had the right to repay the balance of a note in cash equal to 150% of the outstanding principal and interest. On February 24, 2011, the Company paid $22,000 including $9,000 of interest to repay the remaining $13,000 balance of the June 10, 2010 note. In addition, on April 21, 2011 the Company paid $61,600 including $21,600 of interest to repay the $40,000 note dated October 5, 2010. A beneficial conversion feature of $53,334 has been recorded as a discount to the notes with an offset to additional paid in capital. The discount was amortized over the life of the notes. The remaining unamortized discount has been expensed as interest since the note was repaid.(CONTINUED)

The $25,000 and $15,243.90 ($20,000 CAD) promissory notes payable dated April 22, 2011 and March 31, 2011 respectively are unsecured and bear interest at 60% per annum or $2,500 and $1,445 ($2,000 CAD) respectively whichever is greater. The notes are due on demand and may be prepaid in whole or part without penalty. Accrued interest was $ 155,762 at September$246,357 on June 30, 2017.2021.

The $ 3,811 ($5,000 CAD) promissory note payable dated September 12, 2011 is unsecured and bears interest at $ 361$361 up to September 16, 2011 and $ 36$36 per diem until all principal and interest is repaid. The note is due on demand and may be prepaid in whole or part without penalty. Accrued interest was $ 82,971 at September$132,015on June 30, 2017.2021.

The $100,000 promissory note payable dated JuneSeptember 30, 2013, is unsecured and is non-interest bearing.

A $22,030 promissory note payable dated February 24, 2011 to a former officer (more than 1 year ago,) bears interest of $6,000 and was due on March 4, 2011. This note is accruing interest at $360 per day for every day after March 4, 2011 until the note is repaid in full. At SeptemberOn June 30, 2017,2021, accrued interest was $ 871,313.$1,364,153.

A $46,660 promissory note payable dated April 22, 2011 to a former officer (more than 1 year ago) bears interest at 1% per diem. A beneficial conversion feature of $2,750 was recorded as a discount to the notes with the offset to Additional Paid in Capital. In May 2011 the holder of the note converted $10,000 of principal into 750,000 shares of common stock and the discount was expensed to interest. The remaining balance of $36,660 is due on demand. At SeptemberOn June 30, 2017,2021 accrued interest was $868,421.$1,373,527.

A $3,000 convertible promissory note payable to a former officer (more than 1 year ago) is secured by certain assets and equipment of the Company and bore interest at 8% per annum through the due date in November 2010 and is currently in default and bearing interest at 60% the highest lawful rate.. A beneficial conversion feature of $3,000 has been recorded as a discount to the note with an offset to additional paid in capital. The discount was fully amortized in 2010. At SeptemberOn June 30, 2017,2021, accrued interest was $13,544$20,306.

A $9,980 short-term loan dated January 23, 2018 is unsecured and bears fixed interest of $3000 and was due March 5^th, 2018.This note is currently in default. Interest at the option of the Lender may be paid in stock at a 75% discount to market. On June 30, 2021, we accrued interest of $87,791.

A $4,980 short-term loan dated February 26, 2018 is unsecured and bears fixed interest of $1500 and was due in March 2018.This note is currently in default. Interest at the option of the Lender may be paid in stock at a 75% discount to market. On June 30, 2021 we accrued $43,893 in interest.

A $10,000 convertible note$4,980 short-term loan dated June 22, 2015May 29, 2018 is unsecured and bears interest at 8%of $35.71 per annum. Theday and was due in June 30, 2018.This note is currently in default. On June 30, 2021 we accrued $40,286 in interest.

A $60,000 short-term loan dated June 6, 2018 is unsecured and bears interest of $3,000 per day. On June 30, 2021 we accrued $3,360,000 in interest.

A $3,980 short-term loan dated July 25, 2018 is unsecured and bears interest of $28.49 per day and was due on May 11, 2016 unless converted to common stock in advanceAug 31, 2018.This note is currently in default. On June 30, 2021 we accrued $30,513 in interest.

A $5,000 short-term loan dated January 25, 2019 is unsecured and bears interest of that date.$28.49 per day and was due February 25, 2019.This note is currently in default. On June 30, 2021 we accrued $31,679 in interest.

A $5,000 short-term loan dated February 28, 2019 is unsecured and bears interest of $28.49 per day and was due March 23, 2019.This note is currently in default. On June 30, 2021 we accrued $30,464 in interest.

A $10,000 short-term loan dated April 26, 2019 is unsecured and bears interest of 71.4257 per day. This note is currently in default. At SeptemberOn June 30, 2017,2021 we accrued interest was $1,825.$56,862 in interest.

A $2,980 short term loan dated May 24, 2017 is unsecured and was to be returned on June 14^th with a $600 bonus as interest. The loan was repaid Aug 28, 2017. Total interest paid was $2020.

The $100,000 convertible note payable to a company whose shareholders hold less than 10% in TransAct is unsecured, bears interest at 8% per annum and is due Dec 2, 2016. At September 6, 2016 accrued interest was $3945, the note was converted on June 6 and is considered paid in full see Note 6.

8

TRANSACT ENERGY CORP.

[A Development Stage Company]Company]

NOTES TO FINANCIAL STATEMENTS

June 30, 2021

(Unaudited – Prepared by Management)

SEPTEMBER 30, 2017

NOTE 4 -– NOTES PAYABLE – CONTINUED(CONTINUED)

A $15,000 convertible note dated May 9, 2019 is unsecured and bears interest of 12% per annum. The note was due May 5, 2020 unless converted to common stock. On Feb 4, 2021, the note and accrued $2,969 in interest were converted to restricted common stock. (note 6)

A $10,000 convertible note dated September 18, 2017July 25, 2019 is unsecured and bears interest atof 12% per annum. The note was due July 24, 2020 unless converted to common stock. On Feb 4, 2021, the note and accrued $1,726 in interest were converted to restricted common stock. (note 6)

A $5,000 short-term loan dated August 26, 2019 is unsecured and bears interest of 35.7143 per day. This note is currently in default. On June 30, 2021 we accrued $24,071 in interest.

A $4,995 short-term loan dated November 21, 2019 is unsecured and bears interest of 35.7143 per day August 26, 2019. This note is currently in default. On June 30, 2021 we accrued $20,964 in interest.

A $4,995 short-term loan dated December 20, 2019 is unsecured and bears interest of 35.7143 per day. On June 30, 2021 we accrued $19,929 in interest.

A $3,980 short-term loan dated March 20, 2020 is unsecured and bears interest of 28.57144 per day. On June 30, 2021 we accrued $13,343 in interest.

A $2,500 convertible note dated April 22, 2020 is unsecured and bears interest of 12% per annum. The note is due on September 18, 2018April 21, 2021 unless converted to common stockstock. On Feb 4, 2021, the note and accrued $208 in advance of that date. The note wasinterest were converted in October 2017 see Note 11 Subsequent Events.to restricted common stock. (note 6)

A $5500$5,000 convertible note dated September 23, 2017December 1, 2020 is unsecured and bears interest at 8%of 12% per annum. The note is due on September 21, 2018November 01, 2021 unless converted to common stockstock. On June 30, 2021 we had accrued $347 in advanceinterest.

A $15,000 convertible note date February 5^th, 2021 is unsecured and bears interest of that date.12% per annum. The note is due February 3^rd, 2022 unless converted to common stock. On February 8^th,2021, the note was converted (note 6).

A $5,000 convertible note dated June 4, 2021 is unsecured and bears interest of 12% per annum. The note is due June 3, 2022 unless converted to common stock. On June 30, 2021 we had accrued $43 in October 2017 see Note 11 Subsequent Events.interest.

NOTE 5 -– NOTES PAYABLE – RELATED PARTIES

PromissoryThere are no notes were paid out uppayable to and including the end of December 2015 to an officer and shareholder were secured by certain assets and equipment of the Company and bared interest at 8% and 10% per annum and were duerelated parties on demand. All notes were paid including interest. At December 31, 2016, accrued and remaining interest was $0.June 30, 2021.

Accrued interest and late fees for the notes at September 30, 2017 and December 31, 2016 was $2,020,820 and $1,791,739 respectively.

NOTE 6 - CAPITAL STOCK

Preferred Stock- The Company has authorized 10,000,000 shares of preferred stock, $.001 par value, with such rights, preferences and designations and to be issued in such series as determined by the Board of Directors. No shares are issued and outstanding aton June 30, 2017.2021.

Common Stock- The Company has authorized 100,000,000 shares of common stock, $.001 par value, with such rights, preferences, and designations and to be issued in such series as determined by the Board of Directors.

In December 2010 proceeds were received for 200,000 common shares at $.15 per share and 50,000 common shares at $.20 per share for a total of $ 40,000. These shares were issued in June 2011.

In January 2011 the Company issued 588,235 common shares at $.17 per share for total proceeds received of $100,000.

TRANSACT ENERGY CORP.

[A Development Stage Company]

FINANCIAL STATEMENTS

June 30, 2021

(Unaudited – Prepared by Management)

NOTE 6 – CAPITAL STOCK (CONTINUED)

In February 2011 the Company issued 404,040 common shares pursuant to a convertible option of a note payable totaling $12,000 at $.0297 per share.

In June 2011 the Company issued 200,000 common shares for compensation services at a value of $.015 per share.

In June 2011 the Company issued 750,000 common shares pursuant to a convertible option of a note payable totaling $10,000 at $.013 per share.

In June 2011, the Company issued 175,739 common shares at a value of $.015 per share in exchange for consulting services accrued as a liability at December 31, 2010 in the amount of $ 37,500. The difference of $34,864 has been recorded as a gain on debt settlement.

In May 2012, the Company issued 3,316,500 common shares for consulting services at a value of $.035 per share (see Note 10).

In May 2012, the Company issued 275,000 common shares as a fee related to financing services at a value of $.0182 per share.

In May 2012 the Company issued 625,000 common shares for compensation services at a value of $.05 per share.

In May 2012 the Company issued 119,783 common shares for compensation services at a value of $.045 per share.

In May 2013 the Company issued 2,600,000 common shares as payment related to a technology purchase agreement at a value of $.0502 per share.

9

TRANSACT ENERGY CORP.

[A Development Stage Company]

NOTES TO FINANCIAL STATEMENTS

(Unaudited – Prepared by Management)

SEPTEMBER 30, 2017

NOTE 6 - CAPITAL STOCK – CONTINUED

In May 2013 the Company issued 500,000 common shares for compensation services at a value of $.0501 per share.

At June 30, 2013 the Company caused the cancellation of 250,000 shares that had been issued for compensation services 125,000 shares at a value of $.0501 and 125,000 shares at $.05.

In August 2013 the Company issued 555,556 common shares pursuant to a convertible option of notes payable totaling $20,000 at $.036 per share.

In March 2014 the Company authorized the issuance of 450,000 common shares for compensation services at a value of $.041 per share.

In March 2014, the Company authorized the issuance of 14,210,235 common shares for $397,887 of compensation payable.

In April 2014, the Company authorized the issuance of 200,000 common shares for compensation services at a value of $.05 per share.

In April 2014 the Company authorized the issuance of 474,360 common shares pursuant to a convertible option of notes payable totaling $23,718 at $.05 per share.

In August 2014, the Company authorized the issuance of 221,778 common shares pursuant to a convertible option of notes payable totaling $9,980 at $.045 per share.

In August 2014 the Company authorized the issuance of 300,000 common shares pursuant to a convertible option of notes payable totaling $18,000 at $.06 per share.

In September 2014 the Company authorized the issuance of 665,750 common shares pursuant to a convertible option of notes payable totaling $39,975 at $.06 per share.

In September 2014, the Company authorized the issuance of 641,715 common shares pursuant to a convertible option of notes payable totaling $44,920 at $.07 per share.

TRANSACT ENERGY CORP.

[A Development Stage Company]

FINANCIAL STATEMENTS

June 30, 2021

(Unaudited – Prepared by Management)

NOTE 6 – CAPITAL STOCK (CONTINUED)

In October 2014, the Company authorized the issuance of 229,750 common shares pursuant to a restricted securities agreement totaling $50,545 at $0.22 per share.

In December 2014, the Company authorized the issuance of 140,000 common shares for compensation services of $26,600 at $0.19 per share.

In December 2014, the Company authorized the issuance of 233,921 common shares for $33,333.68 of compensation payable at $0.1425.

In March 2015, the Company authorized the issuance of 99,750 common shares pursuant to a convertible option of notes payable totaling $9,975 at $.10 per share.

In March 2015, the Company authorized the issuance of 166,834 common shares pursuant to a convertible option of notes payable totaling $20,020 at $.12 per share.

In March 2015, the Company authorized the issuance of 66,667 common shares pursuant to a convertible option of notes payable totaling $7,000 at $.1050 per share.

In October 2015, the Company authorized the issuance of 124,750 common shares pursuant to a convertible option of notes payable totaling $4,990 at $.04 per share.

In November 2015, the Company authorized the issuance of 147,725 common shares pursuant to a convertible option of notes payable totaling $5,909 at $.04 per share.

10

TRANSACT ENERGY CORP.

[A Development Stage Company]

NOTES TO FINANCIAL STATEMENTS

(Unaudited – Prepared by Management)

SEPTEMBER 30, 2017

NOTE 6 - CAPITAL STOCK – CONTINUED

In November 2015, the Company authorized the issuance of 73,563 common shares pursuant to a convertible option of notes payable totaling $5,885 at $.08 per share.

In December 2015, the Company authorized the issuance of 536,000 common shares for compensation payable totaling $27,336 at $.051 per share.

In April 2016, the Company authorized the issuance of 104,688 common shares pursuant to a convertible option of notes payable totaling $8,375 at $.08 per share.

In June 2016, the Company authorized the issuance of 2,050,000 common shares pursuant to a convertible option of notes payable totaling $102,500 at $.05 per share.

In August 2016, the Company authorized the issuance of 142,857 common shares pursuant to a convertible option of a note payable totaling $10,000 at $.07per share. In the same period the Company authorized the issuance of 305,522 common shares pursuant to a convertible option a of note payable totaling $19,975 at $.06538 per share.

In September 2016, the Company authorized the issuance of 142,643 common shares pursuant to a convertible option of notes payable totaling $9,985 at $.07 per share.

In December 2016, the company authorized the issuance of 185,249 common shares pursuant to convertible option of notes payable totaling $14,819.95 at a value of $.08 per share.

In the same period the Company authorized the issuance of 645,000 common shares for compensation services totaling $38,700 at a value of $0.06 per share.

In January 2017, the Company authorized the issuance of 89,864 common shares pursuant to a convertible option of notes payable totaling $2,489 at $.0646per share and $2500 @ $0.487$0.0487 per share.

TRANSACT ENERGY CORP.

[A Development Stage Company]

FINANCIAL STATEMENTS

June 30, 2021

(Unaudited – Prepared by Management)

NOTE 6 – CAPITAL STOCK (CONTINUED)

In February 2017, the Company authorized the issuance of 200,000 common shares pursuant to a convertible option of notes payable totaling $10,000 at $.05 per share.

In May 2017, the Company authorized the issuance of 428,542377,207 common shares pursuant to convertible option of notes payable totaling $13,500 at $0.0487 per share and $5,000 at $0.5 per share.

In July 2017, the Company authorized the issuance of 160,000 common shares pursuant to convertible option of a note payable totaling $8,000 at $0.05 per share.

In September 2017, the Company authorized the issuance of 1,703,882 common shares pursuant to convertible option of notes payable totaling $111,990 at $0.07 per share, $5,000 at $0.0782 and $5,261 at $0.13125 per share.

In October 2017, the Company authorized the issuance of 327,895 common shares pursuant to convertible option of notes payable totaling $20,435 at $0.12 per share, $20,000 at $0.1269 per share.

In December 2017, the Company authorized the issuance of 27,297 common shares pursuant to convertible option of a note payable of $6,006 at $0.22 per share. In the same period the

Company authorized the issuance of 257,027 common shares for compensation services totaling $59,836 at a value of $0.2328 per share.

In April 2018, the Company authorized the issuance of 190,476 common shares pursuant to convertible option of notes payable totaling $10,000 at $0.0525 per share.

In May 2018, the Company authorized the issuance of 1,000,000 common shares pursuant to a partial payment for a land acquisition agreement in the amount of $90,000 at $0.09 per share and 250,000 common shares pursuant to a compensation agreement at $0.09 per share.

In July 2018, the Company authorized the issuance of 47,421 common shares pursuant to convertible option of notes payable totaling $4,965 at $0.1047 per share.

In November 2018, the Company authorized the issuance of 459,627 common shares pursuant to convertible option of notes payable totaling $10,000 at $0.0575 and $20,000 at $0.07 per share respectively.

In December 2018, the Company authorized the issuance of 131,355 common shares pursuant to convertible option of a note and interest payable totaling $13,135.51 at $0.10 per share. In the same period the Company authorized the issuance of 723,552 common shares for compensation services totaling $57,884 at a value of $0.08 per share.

In January 2019, the Company authorized the issuance of 106,985 common shares pursuant to convertible option of notes payable totaling $7,275 at $0.068 per share, respectively.

In June 2019, The Company authorized the issuance of 200,000 common shares pursuant to a convertible option of a note payable totaling $10,000 at $0.05 per share, respectively.

In July 2019, The Company authorized the issuance of 200,000 common shares pursuant to a convertible option of a note payable totaling $10,000 at $0.05 per share respectively.

In September 2019, The Company authorized the issuance of 222,222 common shares pursuant to a convertible option of a note payable totaling $10,000 at $0.045 per share respectively.

TRANSACT ENERGY CORP.

[A Development Stage Company]

FINANCIAL STATEMENTS

June 30, 2021

(Unaudited – Prepared by Management)

NOTE 6 – CAPITAL STOCK (CONTINUED)

In April 2020, the Company authorized the issuance of 839,286 common shares pursuant to convertible option of a note $10,000 at $0.08 per share and $10,000 at $0.014 per share. In the same period the Company authorized the issuance of 556,471 common shares for 2019 director compensation services totaling $55,647 at a value of $0.10 per share.

In February 2021, the Company authorized the issuance of 901,995 common shares pursuant to convertible option of notes $15,000 at $0.10, $10,000 at $0.04, $2,500 at $0.05 and $15,000 at $0.04 per share.

NOTE 7 – GOING CONCERN

The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate continuation of the Company as a going concern. However, the Company has a working capital deficit and has incurred losses since its inception. These factors raise substantial doubt about the ability of the Company to continue as a going concern. In this regard, management is proposing to raise any necessary additional funds not provided by operations through loans and/or through additional sales of its common stock. There is no assurance that the Company will be successful in raising this additional capital or in achieving profitable operations. The financial statements do not include any adjustments that might result from the outcome of these uncertainties.

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TRANSACT ENERGY CORP.

[A Development Stage Company]

NOTES TO FINANCIAL STATEMENTS

(Unaudited – Prepared by Management)

SEPTEMBER 30, 2017

NOTE 8 - RELATED PARTY TRANSACTIONS

Management Compensation – The Company has accrued executive compensation of $1,554,149$2,665,256 to the CEO and President of the Company from inception to the period ended SeptemberJune 30, 20172021 (See Note 10).

The Company has accrued executive compensation of $229,866 to the Chief People Officer of the Company to the period ended December 31, 2020 (See Note 10).

The Company has accrued executive compensation of $115,601 to the SVP Technology of the Company to the period ended April 1, 2016 (See Note 10).

The Company has accrued executive compensation of $181,700 to the SVP of Real Estate and Project Development of the Company after entering a Release and Settlement terminating their Employment Contract to the period ended December 31, 2020 (See Note 10)

The Company has accrued executive compensation of $63,101 to the Directors of the Company and its subsidiaries to the period ended December 31, 2020 (See Note 10)

NOTE 9 - LOSS PER SHARE

The following data shows the amounts used in computing loss per share for the periods presented:

Dilutive loss per share was not presented; as the Company had no common equivalent shares

Shares for all periods presented that would affect the computation of diluted loss per share.

TRANSACT ENERGY CORP.

[A Development Stage Company]

FINANCIAL STATEMENTS

June 30, 2021

(Unaudited – Prepared by Management)

NOTE 10 – COMMITMENTS AND CONTINGENCIES

Compensation agreement– The President and Chief Executive Officer agreement pays an annual base salary of $250,000,$303,277, with a cash bonus annually based on 5% of EBITDA and a stock bonus formulated around the return on invested capital where the issued and outstanding stock of the Company times the rate of return divided by ten will equate to the stock issued.

Compensation agreement– The Senior Vice President of Technology agreement pays an annual base salary of $100,000 Starting June 2013, with a cash bonus annually based on 0.25% of EBITDA and a stock bonus formulated around the return on invested capital where the issued and outstanding stock of the Company times the rate of return divided by forty will equate to the stock issued. This contract was terminated effective April 1, 2016.

Consulting Agreement-On May 3, 2012, the company entered into an agreement whereby 3,015,000 free trading shares are to be issued in exchange for a $20,000 advance to the Company and the settlement of any and all obligations given to the parties of the agreement. These shares are intended to be sold to cover their costs including the advances and any balance of these shares not used in settlement would be used to raise capital and split evenly between the parties. The portion that goes to the consulting company will be expensed as consulting fees.

To facilitate the terms of this agreement the Company by way of special resolution identified certain shareholders of the Company that had sufficientenough unrestricted common shares and agreed to replace the unrestricted shares with restricted common shares plus an incentive of an additional 10% of bonus shares. In May 30, 2012 the Company issued 3,316,500 common shares, including 301,500 bonus shares, valued at $.036 per share. In June 2014, the company returned the original $20,000, the shares remain outstanding.

Loan Agreement-Pursuant to an Agreement on June 28^th, 2012 that was extended to August 31, 2012 and then on Aug 30^th, 2012 to November 15^th, 2012 and was extended to May 15, 2014; where originally on May 11, 2012 the Company arranged for 3,005,000 free trading shares to be placed as additional security for a $100,000 loan as a retainer for a financing of 100 million dollars. The Company had a Memorandum of Understanding (MOU) to receive one third or 30 million dollars of this financing. The financing was not completed. If these shares are used to repay the loan the Company will have to issue the shares used plus 10% additional shares to the contributing shareholders and expense whatever shares used as financing costs. The shares remain outstanding.

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TRANSACT ENERGY CORP.

[A Development Stage Company]

NOTES TO FINANCIAL STATEMENTS

(Unaudited – Prepared by Management)

SEPTEMBER 30, 2017

NOTE 10 – COMMITMENTS AND CONTINGENCIES (Continued)

Share-purchase Agreement – On January 30, 2014 the Company entered a share-purchase agreement for shares in a proposed subsidiary that would own and operate a zero-emissions waste optimization plant (Z.E.W.O.P._TM) in Puebla, Mexico. The agreement provided for the purchaser to own up to 45% of the subsidiary. The Purchaser advanced $300,000 of the proposed 30% of CAPEX to the Company. The Company to facilitate a phase one engineering review. With a positive outcome to the review the Company has now formed the subsidiary in question Puebla ZEWOP 1 and was formalizing the share purchase agreement between our wholly owned subsidiary TransAct Mexico and the Puebla Waste Consortium (“PWC”).

1. The Puebla ZEWOP 1 share purchase agreement was not updated, and the terms of the original agreement have not been fulfilled by the consortium resulting in the termination of the same. The subsidiary is currently not committed to build and operate a 1320 tonne per day Z.E.W.O.P._TMestimated at $320 Million USD. The Company has a receivable due from the subsidiary at March 31, 2016 of $96,755.

Consulting Agreement-On August 20^th, 2014, the company entered into an Engineering Services Agreement to facilitate the design/build of the proprietary reactors for the Puebla, MX Zero Emissions Waste Optimization Plant. The estimated cost of the contract is $450,000 over 12 months, out of pocket reimbursements, cost plus 10% on all material and outside labor and a stock bonus of 150,000250,000 common shares upon completion of the scope of work. This agreement will be amended to reflect the new location of the plant. All amounts under the agreement are current. This agreement was amended see Note 11, Subsequent Events.

Subscription Agreement-Pursuant to an Agreement on September 27^th, 2014 the company agreed to sell restricted securities of the Company in the form of common stock upon receipt of three tranches of capital equaling $1,200,000 each. The common stock was to be sold for $0.50 for the first tranche of 2,400,000 shares and was due in the week of September 28, 2014, $1.00 for the second tranche of 1,200,000 shares and was due in the week of March 1, 2015, $1.50 for the third tranche of 800,000 shares due on August 2^nd, 2015. February 2015 the subscribers of $3.6 Million dollars of our common stock advised us they would be unable to fulfill their commitment under the restricted securities agreement. We have received the same in writing and agreed to a settlement with the parties involved where they purchase 526,316 common shares @ $0.19. To date $12,440 has been received of the agreed $100,000. Under the terms of the agreement the funds received up to December 2015 were treated as forfeited and the settlement agreement terminated. We are now entitled to exercise any punitive rites of the original agreement.

TRANSACT ENERGY CORP.

[A Development Stage Company]

FINANCIAL STATEMENTS

June 30, 2021

(Unaudited – Prepared by Management)

NOTE 10 – COMMITMENTS AND CONTINGENCIES (CONTINUED)

Consulting Agreement – On June 1, 2017, the Company through its subsidiary Transact Energy Mexico S de R.L. de C. V. contracted with a private consultant to secure a binding Waste Management Agreement with the Municipality of Zapopan. The agreement pays $30 Million pesos (approximately $1.7$1.47 Million USD) as a success fee only. This group is responsible for helping us secure the September 13, 2017 waste supply agreement in Guadalajara. Once this plant is approved the fee is due.

Waste Supply and Disposal Agreement- On September 13, 2017 the Company through its subsidiary Puebla Z.E.W.O.P. 1, S.de R.L. de C.V. contracted with Hasars, S.A. de C.V. to purchase four-hundred and eighty-one thousand, eight hundred (481,800) metric tons (MT) per year at a cost of $180 Mexican Pesos per MT or approximately $2 Million USD per annum. The contract is for a ten-year period initially and conditional on us producing a certified operational ZEWOP_TM.

Land Purchase Agreement – On October 25^th, 2017the Company through its subsidiaryPuebla Z.E.W.O.P. 1, S.de R.L. de C.V. entered into a land purchase agreement for 18.42 hectares of industrial use land in El Salto, Jalisco, Mexico. In May 2019 we renewed negotiations through TransAct Energy Mexico for the lands revised at 19.57 hectares and a price of approximately $10,423,75. The deal is pending title insurance and the title preparation. The $90,000 deposit paid with stock may be reclaimed and settled with cash. On January 7^th, 2021, the Company through its subsidiary TransAct Energy Mexico S. de·R.L. de C.V. modified the agreement to a Lease Purchase Agreement for the 19.57-hectare lands in El Salto, Jalisco, Mexico at 403,000 Mexican Pesos (Approx. $20,000) per month for up to 2 years with all payments contributing to the purchase starting March 1^st, 2021.

Consulting Agreement – On November 27, 2017, the Company agreed to engage the services of Ericho Communications Ltd for a one-year term starting February 1, 2018. The company is obligated to a monthly fee of $20,000 USD during the term. The Company with Ericho agreed to postpone the agreement temporarily, currently the Company has accrued $60,000 in fees under this agreement to the end of December 31, 2018.

Consulting Agreement – On December 1, 2017, the Company contracted with a private consultant to secure a binding Waste Management Agreement within the State of Rio de Janeiro. The agreement pays $4,875,000 Reais (approximately $1.53 Million USD) as a success fee only.

Consulting Agreement – On February 1, 2018 the Company through its subsidiary Puebla Z.E.W.O.P. 1, S.de R.L. de C.V. contracted with an Engineering firm to review the El Salto lands described above. The agreement pays the equivalent of $5,000 dollars as a fee. The Company provided 1/3 as a deposit the balance is now due.

Compensation agreement– On April 1, 2018 the Company contracted for a Senior Vice President of Real Estate and Project Development. The Agreement pays an annual base salary of $185,000 with a COLI. Starting April 2018, with a performance bonus annually of up to 50% of their salary based on delivering ZEWOP^TM. projects undertaken on time, budget and of expected quality as per set formulas. The contract has now been settled and both parties released pending receipt of long term financing.

Accounting Engagement – On June 13, 2018, the Company engaged Piercy Bowler Taylor & Kern, certified public accountants of Las Vegas Nevada to prepare the 2012 through 2017 financial statements of the company for audit and subsequently refiling with the Securities and Exchange Commission. Further they are engaged to complete all outstanding tax returns to the US Internal Revenue Service and to act as our US accountants on an ongoing basis. The engagement requires an engagement fee of $5,000 before work starts.

Appraisal Engagement – On June 13^th, 2018, the Company engaged on behalf of TransAct Mexico CBRE S.A. de C.V. to appraise the 18.42-hectare industrial site in El Salto, Mexico. The fee to receive the appraisal is outstanding at $8,500 USD.

Sale of ZEWOP_tm Technology – On December 31, 2018, as part of its long-term global tax strategy Transact Energy Corp sold all rights to its Zero Emissions Waste Optimization Plant technology to its wholly owned subsidiary TransAct Energy Global Limitedfor the sum of $20 Million USD. The Company will receive an initial payment of $2 Million USD on or before April 11^th, 2019, and then $6 Million each over the years 2019, 2020 and 2021. TransAct Energy Global Limited will be responsible for disseminating the technology globally. No payments to date.

TRANSACT ENERGY CORP.

[A Development Stage Company]

FINANCIAL STATEMENTS

June 30, 2021

(Unaudited – Prepared by Management)

NOTE 10 – COMMITMENTS AND CONTINGENCIES (CONTINUED)

Compensation agreement– On September 1, 2018 the Company contracted for a Chief People Officer. The Agreement pays an annual base salary of $275,838 (250K Euro) starting September 2019, with bonus provisions if performance expectations met. Suspended June.

Preferred Vendor Agreement - On December 31, 2020, the Company entered a Preferred Supplier Agreement with Covarrubia Engineering. The Agreement provides for them to be awarded the engineering, procurement, and construction (EPC) contract for the Companies intended manufacturing facilities planned over the next five years provided they are competitive in the tender process. They in turn agreed to lend the Company $14 Million for two years at 2.65% on or before April 30^th, 2021. This remains outstanding.

NOTE 11 – SUBSEQUENT EVENTS

In September 2017 convertible notes were issued in the amount of $15,500. These notes were converted to 128,916 common shares at $0.12 per share in October 2017.

In October three convertible notes totaling $24,965 were issued bearing interest at 8% per annum. The notes were converted, and 198,979 common shares subsequently issued 41,375 at $0.12 per share and the balance at $0.1269.

On October 25, 2017, our subsidiary Puebla Z.E.W.O.P. 1, S. de R.L. de C.V. entered into a conditional, Land Purchase Agreement for 18.4 hectares in the municipality of El Salto. The purchase price is the equivalent of approximately $10 Million USD.

On November 6, 2017 the Company amended an engineering contract for its reactors from a 150,000-common share bonus to a 250,000-common share bonus payable upon completion. The company paid a total of $25,000 towards this contract in October and November.None

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ITEM 2. PLAN OF OPERATIONS

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

FORWARD-LOOKING STATEMENT NOTICE

This Form 10-Q contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. For this purpose, any statements contained in this Form 10-Q that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, words such as “may,” “will,” “expect,” “believe,” “anticipate,” “estimate” or “continue” or comparable terminology are intended to identify forward-looking statements. These statements by their nature involve substantial risks and uncertainties, and actual results may differ materially depending on a variety of factors, many of which are not within our control. These factors include but are not limited to economic conditions generally and in the industries in which we may participate; competition within our chosen industry, including competition from much larger competitors; technological advances and failure to successfully develop business relationships.

OUR BUSINESS

Our business is using sustainable energy in emissions-free processing of municipal solid waste into globally traded commodities.

We formed TransAct Energy Corp. as a Nevada corporation on March 15, 2006. Although our original business plan called for the securing and managing of any energy leasehold, the Company focused on securing producing and non-producing oil and gas leases in Alberta, Canada. On September 7, 2006, we acquired a one hundred percent (100%) interest in a Petroleum and Natural Gas Lease, from the province of Alberta, Canada for twelve thousand and fifty-one dollars ($12,051), the MedHat Project. We did not develop this resource. We looked to expand our holdings in Alberta through acquisitions and joint ventures for the following two years. We have since allowed this lease to lapse and moved away from this focus.

In 2008, the Company was introduced to Dr. Mory Ghomshei one of the world’s leading geothermal experts and two of his geothermal power projects in British Columbia, Canada. We worked with independent companies Aqua Terra Power and Aqua Terra Geothermal through the balance of 2009 on the two geothermal power projects in British Columbia. Other than lending Aqua Terra funds no formal arrangement was entered pending them securing drill permits on the two projects.

These licenses lapsed under their original owners and were re-posted by the government for public tender; an Ontario corporation associated with Dr. Ghomshei acquired most of the original licenses and has received drilling permits. We entered discussions with this entity in the latter half of 2011 to form a Farm-in relationship. We have put these discussions on hold pending the completion of our first waste optimization plant although we are maintaining dialogue with Dr. Ghomshei as it relates to utilizing Geothermal in the plants themselves.

TransAct in mid-2009 started introducing the concept of geothermal power to markets in Western and South Asia with the plan to enter joint venture relationships to develop geothermal power projects in these areas. To enter these markets as a power producer the Company found it strategic to develop traditional carbon fueled power projects in addition. After discussions with the Republic of Iraq regarding geothermal opportunities in Northern Iraq, the Company, together with Spectrum Energy Project Investments (a UAE power company), submitted applications to the Basra Investment Commission to develop/manage three natural gas power plants. These multi-billion dollarmulti-billion-dollar projects comecame with long-term power purchase agreements (PPA) and sovereign guarantees and our application through Spectrum was shortlisted. We were unsuccessful in completing our acquisition of 50% of Spectrum and the initial offering lapsed.

On August 31, 2009, TransAct Energy completed and closed its initial public offering at twenty-five cents ($0.25) per share selling one million one hundred and two thousand shares (1,102,000) for a total capital raise of two-hundred and seventy-four thousand three hundred and ninety-eight dollars ($274,398 USD). The majority of these funds were placed with Aqua Terra Power as convertible notes to secure and develop the four (4) geothermal licenses in British Columbia, Canada; the balance was used to pay the costs of the offering and a small amount went to working capital. The Company was approved for listing on the OTCBB in December 2009 and received the trading symbol “TEGY.”

Throughout 2010 we laid the ground workgroundwork for large power projects in South Europe, Asia and Africa; smaller projects for solar, waste to energy and hydrogen fuel cells specifically in India. We worked to secure markets for geothermal, new solar photo-voltaic, waste to energy and hydrogen fuel cell generators.

Joint development agreement negotiations took place in December 2010 clearing the way for Transact to enter one major project in South East Asia in 2011. The 2011 year was frustrated with the company’s inability to collect raised or earned funds into the company’s bank account. Thus projects, joint ventures and previous efforts were postponed or lost permanently. While we did maintain the company’s trading status the year was taken up with collection efforts and supporting business relationships while in limbo. We did initiate discussions on new waste to energy technologies to leverage the work we had done previously in this sector.

14

The Company’s 2012 efforts were focused on building out a Waste Optimization division. We completed amodified our Business Plan for this divisionfocus and entered a Joint Development Agreement with the owners of a small scale, proprietary, zero emissions waste optimization plant (“ZEWOP”ZEWOP_tm”) that had been operating a 20 tonne per day plant for two years. We reconnected with clients in India and Brazil for future waste optimization opportunities. From the second quarter, through to the end of 2012 we worked to raise the necessary funds to build a municipal scale plant (500(500+ tonnes per day) in Scotland.

2013 continued as a building year for both the company and its Waste Optimization division. We completed the acquisition of the ZEWOP_tm technology from the Scottish Inventor and brought him on as a long-term member of our team. We successfully negotiated a relationship with the international firm Fichtner Consulting Engineers to complete the certification of our plants going forward. We identified suppliers of waste for the proposed United Kingdom plants, initiated the relationships for the uptake of the Natural Gas and Electricity in the United Kingdom and tentatively sourced the capital required for the first plant in the United Kingdom. Globally we negotiated the intent to build a plant in Mexico that includes the required equity and waste. In Brazil, we initiated a relationship to create a green energy fund in order to grow both the market in Brazil and the other strategic areas of South America. Initial talks have taken place with potential development partners for a few of the major Brazil markets pending the success of the Mexico plant.

Throughout 2014 TransAct worked to finalize the engineering review and agreements necessary to develop the first Zero Emissions Waste Optimization PlantsZEWOP_TMtm (Z.E.W.O.P. _TM) in Puebla, Mexico. The plant under design is capable of processing 1320 metric tons per day of Municipal Solid Waste (“MSW”) and is estimated to cost approximately three hundred million dollars. In late November Fichtner Consulting Engineers reported they believed the Z.E.W.O.P.ZEWOP _TMtmcould process the MSW 100% into useable products without emissions. The Fichtner report provided TransAct the opportunity to submit the Waste Supply Agreement to the Municipality of Puebla, prepare off-take agreements for interested buyers of the Z.E.W.O.P.ZEWOP _TMtmproducts and formalize the share purchase agreement with the Puebla Waste Consortium (“PWC”). PWC intended on providing 30% of the capital required to build the Z.E.W.O.P.ZEWOP _TMtm, while TransAct negotiates third party lenders for the remaining 70% of the cost through debt instruments.

The Company delivered the results of the Fichtner Report to the Puebla City Staff in December of 2014. The cost of the plant was more than originally discussed because it included garbage pre-processing and their waste contained more water. This affected the required equity and although it was never stated appears to be cause of the PWC hesitation. We also found out subsequently there was legal wrangling and back room negotiations between the existing MSW concession holders and the municipal/state government, affecting their ability to sign with us. After 6 months with no movement forward for the MSW feedstock from the City of Puebla,Management set out in 2015 to secure an alternate source of MSW. After reviewing and discussing several alternative municipalities we are now negotiating the details of an MSW supply agreement. The agreement we had with the Puebla Waste Consortium iswas terminated however the sales efforts were all to National/International companies whose interest in our products will not change with a change in location. The one hundred-million-dollar equity for the plant in Puebla disappeared with the termination of the consortium contract. An alternative source of the plant equity is being sought during 2015/16 with a variety of investors coming forward during this period. As soon as we finalize the feed-stockfeedstock and sales contracts we will seek to formalize the required equity.

Because of the specialized nature of many of the Z.E.W.O.P.ZEWOP _TMtmcomponents, we initiated some of the equipment procurement; thus, we entered a design/supply agreement for our proprietary reactors with a specialized engineering firm.

2014 saw the Company form subsidiary corporations in Ireland and Mexico. In Ireland we established the wholly owned subsidiary “TransAct Energy Global Ltd”Limited”, this company will in turn wholly own each national subsidiary. The first national subsidiary of TransAct Global is “TransAct Energy Mexico S.DE R.L. DE C.V.” which will own a majority shareholding of each holding company that owns a Z.E.W.O.P.ZEWOP _TMtm like the Mexican corporation “Puebla ZEWOP 1, S. DE R.L. DE C.V.”.

At the beginning of 2015 we focused on finalizing the sale of the anticipated Z.E.W.O.P. _TMZEWOP^tmproducts. These efforts included getting signed letters of intent from qualified buyers and preparing formal legal agreements for the same. We now have letters of intent from multiple qualified buyers for all the expected product and agreements ready to be signed subject to us finalizing our feed-stock agreement (Waste Supply Agreement) for the first plant.

In summary 2015’s efforts focused on completing the due-diligence for the Mexican candidate feed-stocks including matching equity partners and buyers of the resulting products. To that end we now have several feed-stock agreements to negotiate through to a final agreement or dismiss depending on the outcome of the negotiations. The potential equity partners have been identified subject to finalizing the feed-stock agreement and pre-sales of the future products. The clients that signed letters of intent for the products have also been briefed on the potential feed-stock cities to re-confirm their commitment. Every effort was made during the year to keep the candidate banks for debt financing informed of our progress and they appear to be continuing with their support.

2016 we focused on finalizing contracts for the required MSW feed-stock.feedstock. The results were a signed memorandum of understanding (MOU) with a private contractor in Mexico City and a municipality outside of Asuncion, Paraguay; a letter of invitation from the Republic of Panama; and a formal proposal to a municipality in the State of Jalisco, Mexico now awaiting the formal request for proposal coming in 2017. The Mexico City MOU was followed in December 2016 with a Waste Supply Agreement. Each opportunity willwas negotiated to satisfy our need for thirteen-hundred and twenty metric tons per day of MSW feed-stockfeedstock perZ.E.W.O.P.ZEWOP _TM.tm.

15

The First Quarter 2017 continued withwas Transacts breakthrough year as it finally secured the negotiations aroundrequired feedstock under long-term contract for its first ZEWOP_tm to be in Mexico’s second largest city Guadalajara. We immediately secured a strategically located industrial site in El Salto and have proceeded to pre-sell the Waste Supply Agreement with Technosilicatos Mexico, fine tuningproducts from the agreement which now awaits final signatures. future ZEWOP_tm.

In anticipation of this signing, both real estate acquisition and financing2018 we focused on completing the due diligence for the new plant were progressed.

Business development efforts atEl Salto site, the start of 2017 included furthering discussions with another large waste management company in Mexico,pre-development capital required to pay for the Municipality/its contractors in Asuncion, Paraguay,building-site and the main contractor/haulerscompletion of all preliminary design work required to secure an EPC Contractor (Engineering, Procurement and Construction) through the tender process to build the ZEWOP_tm. Due diligence was completed proving the site suitable for Rio de Janeiro, Brazil.our proposed use and the landowners have so far continued to wait for us to close on the site.

The endpre-development capital was committed to as a bridge-loan, but to date has not been received.

Figure 1: Concept Rendering of El Salto ZEWOP_tm

Plant is estimated at 31,355 sq. meters. Using approximately 7.2 hectares.

2019 was dominated with closing the funds to build the El Salto ZEWOP_tm and preparing the Company for operating status. This included continued meetings with members of the second quarter found us no closernew Mexican government to concludingforward our waste management approach in Mexico and renegotiating the contract with Tecnosilicatospurchase of the El Salto lands anticipating a closing. We started the process of acquiring a sustainable geothermal technology that will provide most of the energy required to operate the ZEWOP_tm. Our incoming COO and CPO started working through the people requirements for Mexico.

We acquired another Irish corporation to hold our physical assets in Ireland as we start the search for facilities to house our global accounting, human resources and research/development offices in Dublin. To that end Christina Kenny officially came on as our Chief People Officer starting the process of identifying our first hires for both the global administration and the El Salto ZEWOP_tm.

2020 had two focuses: We continued raising the predevelopment capital for El Salto, Mexico City,and new business development initiatives that could result in cash flow. Raising the pre-development capital for El Salto during COVID-19 Pandemic led to the loss of several funders, however, as companies adjusted it created new opportunities. We reduced our initial capital requirements by $10 Million through negotiating a lease/purchase agreement on the El Salto lands. Then after many single-family office contacts we are not abandoningnegotiated the potential contract, howeverbalance of the funds required. We have secured a $14 Million loan expected in April 2021with an office that owns an EPC Contractor and we have electedagreed to engagetheir preferred vendor status, provided they are competitive through the servicestender process. In terms of business development, we contracted to develop a local lobbyistretail business using our core reactor technology. The retail opportunity is now in the business planning stage.

The first half of 2021 has been focused on planning and team building in anticipation of starting the predevelopment phase of the El Salto ZEWOP_tm. In that process we clearly identified our purpose “To Help humanity restore its balance with nature” and our Mission “To utilize latent energies and human off casts to go directcreate resources that enhance the Economy, the Environment and Communities we operate in.” All corporate activity undertaken will work towards our vision of “a world where all energy and resources used to sustain humanity, have no impact on the new, Mexico City administration in regard to establishingbiosphere.” To that end we spent time examining our own direct concessionfuture risk and resilience strategies, examining our supply-mesh and creating a detailed plan for waste processing as per their new mandate. At the same time, we engaged a private consultantfirst ninety-days after launch. We continued to work on our behalf to negotiatefinalizing the required predevelopment funds both with the municipalityoriginal commitment from the beginning of Zapopan our formal proposal2021that has not yet completed and with several others in progress for waste management presented a year ago.

In the third quarter of 2017 we signed the engagement letter with the Latin desk of the USA based international financial group (name under non-disclosure) for the raise of the debt portion of our first Z.E.W.O.P.^TM’s development cost. We then went on to finalize a waste supply agreement with Hasars of Guadalajara, Mexico.quarter.

PLAN OF OPERATION

TransAct Energy Corp. has elected to focus entirely on the global development and dissemination of its zero emissions waste optimization plants (Z.E.W.O.P. TM)ZEWOP_tm. The Z.E.W.O.P. TMZEWOP_tm makes ecological, economic, cultural, and social sense. Becoming an engine that supports the circular economy in any community it enters, sustainably.sustainably; Municipalities can now be paid instead of paying to manage their MSW. In the process, TransAct is able to incorporate many of the energy technologies it has worked on including, geothermal and solar.

Our near-term strategy going forwardIt is too exploitour intent during the eighteen-months that it should take to construct the first municipal scale ZEWOP_tm; to debug any mechanical/operational issues of the design. After the first building is complete (approximately one-year in), we will secure the second site in Guadalajara and start its construction as soon as the first plant is certified operational. We will complete the assembly of the second ZEWOPtm to perfect the project management process, creating a cookie cutter approach to ZEWOP_tm erection.

The first two ZEWOP_tm gives us the opportunity to recruit and train the project managers’ expertise to effectively work with our EPC contractors in the development of each new ZEWOP_tm; with a focusing on streamlining the supply chain of required materials and relationships that have been establishedequipment.

During the estimated twenty-four to thirty months, it will take to get the first two ZEWOPtm underway, we intend on imbedding a team in Mexico. Despite the delaysEurope to secure feedstock and setbacks of Puebla our efforts will continue throughout 2017 to finalize the Waste Supply Agreement in a large Mexican market, signing off on 75-80% of our product sales under off-take agreements and initiating the engineering review of our selected sitedevelopment sites for the plant in Mexico. These agreements completed should leadnext twenty ZEWOPtm. This approach will be continued around the globe, selecting major markets that are politically and economically ready to adopt our approach to sustainable manufacturing using solid waste. Upon receipt (in the financing commitment we have been seekingsecond quarter of 2021) of the loan funds required for the $200 Million (+/-) debt portionpredevelopment of the El Salto, ZEWOPtm; our pre-described timeline will start.

With a firm start date and location of the first Z.E.W.O.P._TMZEWOPtm TransAct Energy Mexico can proceed to finalize long-term offtake agreements. We will reengage Fichtner Consulting Engineers to prepare working drawings, that while being approved under permits and permissions will go to tender for a guaranteed procurement and construction contract (EPC). In 2017 we should be ableWe have selected a preferred vendor for this role, however, they still have to completecompete in the Z.E.W.O.P._TM building/plant design and initiate the permit/permission applicationEPC tender process. SimultaneouslyWhen these steps are completed, we intend to work through an EPC contract and its related subcontracts. on finalizing the tentative financing commitments we have in place with two international investment banks.

TransAct hopes to establishintends on establishing the manufacturing of our proprietary reactors in Mexico toin 2021. We have already initiated discussions for a joint venture agreement with an ISO 9001 and ASME capable manufacturer. Our facility would supply the demand for both Mexico, South America, Central America, Canada and the USA. Subject to our funding draw down schedule and the permit/permission process we intend on site preparation and initial construction of the Z.E.W.O.P._TM buildings in the latter part of 2018. Provided all equipment manufacturers can supply their components we intend on assembling the plant and commissioning the same in 2019.

Once TransAct is confident the development of the first Z.E.W.O.P.ZEWOP_TM is well underway it will proceed with the scheduling and planning of additional plants. This will include another plant in Mexico, our first European Z.E.W.O.P._TM. South America, including Paraguay, Brazil and Argentina have generated multiple opportunities for Z.E.W.O.P._TM including the capital required to develop these opportunities. We intend on continuing to work these opportunities to secure a foothold in these markets.

Z.E.W.O.P._TMtm can demonstrate to Mexico and the World a municipal scale solution to managingmanufacturing using solid waste without emissions and land filling.emissions. Although we have been approached to build in the other North American cities, we feel the market is best approached when the first Z.E.W.O.P.ZEWOP_TMtm is fully operational to garner government agency support. This will insure a smoother entry into the other North American markets, onceOnce we break ground, we will make sure major municipalities throughout the US and Canada are aware of our process, so we get on thetheir technology review lists. This will ensure a smoother entry into North American markets,

Besides finding capital for individual projects, untilUntil the first revenues from operations come in, our corporate operations will continue to be funded by raising money through private placements or public offerings. We anticipate bringing on an expanded management team to oversee our operational growth throughout thisthe upcoming year and plan to raise additional capital as required. The first $4 Million of this budgeted capital should come in after the signing of the Waste Supply Agreement in 2017.

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For the balance of the 2017 year the Company’s focus is to:

1.)Secure working capital for the Company significant enough to maintain accounts payable as current and fund day to day corporate costs through to cash-flow from first operations, including expansion of corporate management team in order facilitate global dissemination of Z.E.W.O.P.^TM; 

2.)Complete the development of the Z.E.W.O.P.^TM in Mexico as follows; 

a.Finalize Waste Supply (now completed) and Product Purchase Agreements; 

b.Secure all required permits and permissions (initiated);  

c.Finalize debt portion of plant cost (initiated); 

d.Complete EPC contracts and supplier agreements; 

e.Initiate site development, construction, and assembly of plant. 

3.)Initiate second Mexico Z.E.W.O.P. TM contracts to launch development in 2018(initiated). 

4.)Enter waste supply contracts in Brazil. 

5.)Continue with European market entrance towards end of 2017. 

SUBSEQUENT EVENTS

In September 2017 convertible notes were issued in the amount of $15,500. These notes were converted to 128,916 common shares at $0.12 per share in October 2017.None

In October three convertible notes totaling $24,965 were issued bearing interest at 8% per annum. The notes were converted, and 198,979 common shares subsequently issued 41,375 at $0.12 per share and the balance at $0.1269.

On October 25, 2017, our subsidiary Puebla Z.E.W.O.P. 1, S. de R.L. de C.V. entered into a conditional, Land Purchase Agreement for 18.4 hectares in the municipality of El Salto. The purchase price is the equivalent of approximately $10 Million USD.

On November 6, 2017 the Company amended an engineering contract for its reactors from a 150,000-common share bonus to a 250,000-common share bonus payable upon completion. The company paid a total of $25,000 towards this contract in October and November.

RESULTS OF OPERATIONS

Results of Operations for Three Months Ending June 30, 20172021, Compared to Three Months Ending June 30, 20162020

We did not generate any material revenue from JulyApril 1, 20172021, to SeptemberJune 30, 20172021, as was the same for the three-month period in 2016.2020. For the three months ended SeptemberJune 30, 20172021, our general and administrative expenses were $102,368$78,931 compared to $80,973$195,945 for the same period in 2016.2020. Expenses consisted primarily of compensation of $62,800, Consulting $12,429, Travel $9,183 and accounting $7,722.$75,891. Compensation was $62,500, Consulting $6,250, Travel $753 with Accounting of $8,197$191,945 for the same period ending SeptemberJune 30, 2016.2020.

Interest Expense for the three months ending SeptemberJune 30, 20172021, was $77,724$392,880 compared to $78,093$391,864 for the same period in 2016.2020. As a result, we have reported a net loss before taxes of ($180,0923)471,811) for the Three Months ended SeptemberJune 30, 20172021, compared to a loss of ($156,132)587,809) for the same period last year.

Results of Operations for the NineSix Months Ended SeptemberJune 30, 20172021, Compared to the NineThe Six Months Ended SeptemberJune 30, 2016

2020

We did not generate any revenue from January 1, 20172021 to SeptemberJune 30, 20172021 as was the same for the nine-monthsix-month period in 2016.2020. For the ninesix months ended SeptemberJune 30, 20172021, our general and administrative expenses were $251655$161,674 compared to $262,855$392,143 for the same period in 2016.2020. The main expenses for both periodsexpense was compensation which was $154,071 for the period ending 2021 and interest.$383,889 for the period ending June 2020. Interest expense for the six-month period ending June 30, 2021 was $779,408 compared to $779,306 for the same period ending June 30, 2020. As a result, we have reported a net loss of $(485,929)($941,082) for the Nine Month period ended SeptemberJune 30, 2017 compared to $(498,659) for the same period in 2016.2021. Our total net loss from January 1, 2020, through June 30, 2020 was ($1,171,449).

Stock-Based Compensation Costs

There was $0 stock basedstock-based compensation forrecorded during the period ended September, 2017 and the same for 2016. Any shares issued are a part of our executive compensation plan, and are issued to obtain, retain and motivate our directors, executives and employees.June 30, 2021.

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LIQUIDITY AND CAPITAL RESOURCES

As of SeptemberJune 30, 2017,2021, our current assets are $242,368$403,749 made up of prepaid expenses of $110,124,$294,763, receivables of $96,755$108,495 and $35,489$491 cash on hand. Our current liabilities consist of accounts payable in the amount of $287,484,$345,783, accrued interest of $2,020,820,$6,934,457 compensation payable of $1,669,750$3,255,524 and Notes payable, net of any discount of $258,715.$366,110.

NEED FOR ADDITIONAL FINANCING

We estimate our upcoming operating expenses to increase substantially as we transcend from development stage to operating stage and could bemaybe as much as $4,000,000.00 per year or more.$24,000,000.00 this year. We do not have conditionalany commitments through our subsidiaries for capital expenditures related to the first plant in Mexico andhowever we do anticipate entering into further commitments to secure additional plants going forwards.acquisitions. We believe we will need additional funds to cover our expenses and commitmentsacquisitions for the next twelve months. Our need for capital may change dramatically as we pursue our business plan during that period. At present, we have no material understandings, commitments or agreements with respect to the acquisition of any business venture or capital commitments. Further, we cannot assure that we will be successful in consummating business opportunities on favourable terms, or we will be able to profitably manage any business opportunities. Should we require additional capital, we may seek additional advances from officers, sell common stock or find other forms of debt financing.

As per our previously filed 8K the Company raised $3.6 Million in capital to cover the next fourteen months to expected cash flow from our Z.E.W.O.P. _TMin Mexico. This financing fell through; however, we fully intend on replacing it which may result in further dilution of shares.

There is no guarantee the Company will not need to raise further significant capital over the next year, some of which may need to be done by way of selling equity in the Company or its subsidiaries. Depending on the market price and the terms that can be negotiated this will result in the dilution of current shareholders of the Company’s stock or earnings from proposed plants.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Not required by smaller reporting companies.

ITEM 4T. CONTROLS AND PROCEDURES.

(a)Evaluation of Disclosure Controls and Procedures. The Company’s management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934, as amended). We are committed to maintaining disclosure controls and procedures designed to ensure that information required to be disclosed in our periodic reports filed under the Securities Exchange Act of 1934, as amended, or the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate, to allow for timely decisions regarding required disclosure.  

In designing and evaluating our disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures and implementing controls and procedures.

Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of our disclosure controls and procedures, as such term is defined under Rules 13a-15(e) and 15d-15(e) promulgated under the Exchange Act. Based on this evaluation, our principal executive officer and our principal financial officer concluded that our disclosure controls and procedures were effective at a reasonable assurance level as of SeptemberJune 30, 2017,2021, the end of the period covered by this report.

(b)Changes in Internal Control over Financial Reporting. There were no changes in the Company's internal controls or procedures over financial reporting, known to the chief executive officer or the chief financial officer that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting. 

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PART II – OTHER INFORMATION

��

ITEM 1. LEGAL PROCEEDINGS.

Our Company is not a party to any bankruptcy, receivership or other legal proceeding currently.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

Year to date 2,530,953 common0 shares have been sold by way of conversion of notes payable into Company securities were sold during the ninethree months ended SeptemberJune 30, 2017. The proceeds were used primarily for payables, general and administrative expenses.2021.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

None

ITEM 4. REMOVED AND RESERVED

None.

ITEM 5. OTHER INFORMATION.

Up to the period ended SeptemberJune 30, 2017,2021, the Company worked diligently on its business and maintaining its reporting status with the SEC. However due to finances we are forced to file our Annual Report without auditors review the company is delinquent in required filings with the SEC as determined by the NASD.Because of filing unaudited statements and changes to the over the counter bulletin board (“OTCBB”) we were downgraded from the OTCQB to the OTC Pinks. When we amend our filings to include audited statements for 2012, 2013, 2014, 2015, 2016, 2017, 2018, 2019 and 20172020 we can reapply to the OTCBB for a OTCQB listing. We have started the process of engaging a US accounting firm to prepare all filings and financial statements for the auditors.auditors subject to funding.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8K.8-K.

(a) Exhibits

Copies of the following documents are included as exhibits to this report pursuant to Item 601 of Regulation S-K.

(b) Reports on Form 8-K (none)

*The Exhibit attached to this Form 10-Q shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to liability under that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing. 

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SIGNATURES

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

TRANSACT ENERGY CORP.

2025