Bravatek Solutions (BVTK) 10-Q 2009 Q3 Quarterly report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended September 30, 2009

[]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: 000-1449574

eCrypt Technologies, Inc.

 (Exact name of registrant as specified in its charter)

Colorado	32-0201472
(State or other jurisdiction of incorporation)	(IRS Employer Identification Number)
4750 Table Mesa Dr. Boulder CO, 80305
(Address of principal executive offices)
1.866.241.6868
(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for 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). Not Applicable.

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.

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

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

As of November 16, 2009 the Issuer had 33,379,554 shares of common stock issued and outstanding.

PART I-FINANCIAL INFORMATION

ITEM 1.

FINANCIAL STATEMENTS.

The financial statements of eCrypt Technologies, Inc. (the "Company" or “eCrypt”), a Colorado corporation, included herein were prepared, without audit, pursuant to rules and regulations of the Securities and Exchange Commission (“SEC”).  Because certain information and notes normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America were condensed or omitted pursuant to such rules and regulations, these financial statements should be read in conjunction with the financial statements and notes thereto included in the audited financial statements of the Company in the Company's Form 10-K for the fiscal year ended March 31, 2009.

eCRYPT TECHNOLOGIES, INC.

(A DEVELOPMENT STAGE COMPANY)

FINANCIAL STATEMENTS

PERIOD ENDED SEPTEMBER 30, 2009

INDEX TO FINANCIAL STATEMENTS:	Page
Balance Sheets	­­3
Statements of Operations	4
Statements of Stockholders’ Equity	5
Statements of Cash Flows	6
Notes to Unaudited Financial Statements	7-13

2

eCrypt Technologies, Inc.
(A Development Stage Company)
BALANCE SHEETS
As of September 30, 2009 and March 31, 2009
			September 30,	March 31,
			2009	2009
			(Unaudited)	(Audited)
ASSETS
CURRENT ASSETS
	Cash		$            16,498	$           95,994
	Interest receivable		-	-
	Prepaid expenses		1,285	3,438
	TOTAL CURRENT ASSETS		17,783	99,432
Property and equipment, net			21,160	29,076
OTHER ASSETS
	License-net		4,444	6,111
	TOTAL OTHER ASSETS		4,444	6,111
TOTAL ASSETS			$            43,387	$         134,619
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
	Accounts payable and accrued liabilities		$              1,211	$             3,223
	Accrued interest on convertible loan-related party		7,338	5,185
	Deferred revenue		-	15,450
	Convertible loan-related party		23,800	23,800
TOTAL CURRENT LIABILITIES			32,349	47,658
TOTAL LIABILITIES			32,349	47,658
STOCKHOLDERS' EQUITY
	Common Stock (500,000,000 shares authorized; par value .001;
		33,379,554 shares issued and outstanding)	33,380	33,380
	Additional paid in capital		173,322	173,322
	Subscription payable		-	4,875
	Deficit accumulated during the development stage		(195,664)	(124,616)
TOTAL STOCKHOLDERS' EQUITY			11,038	86,961
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY			$            43,387	$         134,619
The accompanying notes are an integral part of these financial statements.

3

eCrypt Technologies, Inc.
(A Development Stage Company)
STATEMENTS OF OPERATIONS
(Unaudited)
		For the three months ended September 30,2009	For the three months ended September 30,2008	For the six months ended September 30,2009	For the six months ended September 30,2008	Cumulative amount from inception (April 19, 2007) to September 30,2009
REVENUES
	Sales	$          12,143	$          15,450	$          27,594	$          15,450	$         84,944
OPERATING EXPENSES
	Amortization and depreciation	4,804	5,370	9,582	9,865	35,206
	General and administrative	29,579	14,851	55,370	34,084	160,782
	Professional fees	23,539	13,538	31,831	15,818	77,509
TOTAL OPERATING EXPENSES		57,922	33,759	96,783	59,767	273,497
OPERATING LOSS		(45,779)	(18,309)	(69,189)	(44,317)	(188,553)
OTHER INCOME AND (EXPENSES)
	Interest expense	(1,552)	(637)	(2,494)	(1,746)	(9,384)
	Interest income	189	59	635	156	2,273
	TOTAL OTHER INCOME AND (EXPENSES)	(1,363)	(578)	(1,859)	(1,590)	(7,111)
NET LOSS BEFORE INCOME TAXES		(47,142)	(18,887)	(71,048)	(45,907)	(195,664)
PROVISION FOR INCOME TAXES		-	-	-	-	-
NET LOSS		$        (47,142)	$        (18,887)	$       (71,048)	$        (45,907)	$     (195,664)
Earnings (Loss) per Share
	Basic	-	-	-	-
	Diluted	(0.00)	(0.00)	(0.00)	(0.00)
WEIGHTED AVERAGE SHARES OUTSTANDING
	Basic	33,379,554	33,203,992	33,379,554	33,203,992
The accompanying notes are an integral part of these financial statements.

4

eCrypt Technologies, Inc.
(A Development Stage Company)
STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
For the Period April 19, 2007 (Inception) to September 30, 2009
(Unaudited)
				Stock	Retained	Total
Par Value of $0.001	Common Shares		Paid in	Subscriptions	Earnings	Stockholders'
	Number	Amount	Capital	Payable	(Deficit)	Equity
Balance at Inception (April 19, 2007)	-	$                -	$                   -	$                 -	$                 -	$               -
Shares issued	29,003,992	29,004	26,126	-	-	55,130
Net loss for the period	-	-	-	-	(32,505)	(32,505)
Balance March 31, 2008	29,003,992	$      29,004	$          26,126	$                 -	$          (32,505)	$         22,625
Shares issued	4,200,000	4,200	15,700	-	-	19,900
Net loss for the period	-	-	-	-	(27,021)	(27,021)
Balance June 30, 2008	33,203,992	$      33,204	$          41,826	$                 -	$          (59,526)	$         15,504
Stock subscriptions	-	-	-	-	-	-
Net loss for the period	-	-	-	-	(18,887)	(18,887)
Balance September 30, 2008	33,203,992	$      33,204	$          41,826	$                 -	$          (78,413)	$         (3,383)
Shares issued	138,562	139	103,782	-	-	103,921
Net loss for the period	-	-	-	-	(15,014)	(15,014)
Balance December 31, 2008	33,342,554	$      33,343	$        145,608	$                 -	$          (93,427)	$         85,524
Stock subscriptions	-	-	-	4,875	-	4,875
Shares issued	37,000	37	27,714	-	-	27,751
Net loss for the period	-	-	-	-	(31,189)	(31,189)
Balance March 31, 2009	33,379,554	$      33,380	$        173,322	$         4,875	$        (124,616)	$         86,961
Stock cancelled	-	-	-	(4,875)	-	(4,875)
Net loss for the period	-	-	-	-	(71,048)	(71,048)
Balance September 30, 2009 (unaudited)	33,379,554	$      33,380	$        173,322	$                 -	$        (195,664)	$         11,038
The accompanying notes are an integral part of these financial statements.

5

eCrypt Technologies, Inc.
(A Development Stage Company)
STATEMENTS OF CASH FLOWS
(Unaudited)
			For the six months ended September 30, 2009	For the six months ended September 30, 2008	Cumulative amount from Inception (April 19, 2007) to September 30, 2009
				(Restated)
CASH FLOWS FROM OPERATING ACTIVITIES
	Net loss		$           (71,048)	$        (45,907)	$        (195,664)
	Adjustments for Non-cash Items:
		Amortization and depreciation	9,582	9,865	35,206
		Interest on convertible debt-related party	2,153	1,548	7,338
	Changes in operating assets and liabilities:
		Accounts payable and accrued liabilities	(2,011)	(661)	1,212
		Interest receivable	-	339	-
		Deferred revenue	(15,450)	46,350	-
		Prepaid expenses	2,153	(8,185)	(1,285)
NET CASH USED IN OPERATING ACTIVITIES			(74,621)	3,347	(153,193)
CASH FLOWS FROM INVESTING ACTIVITIES
	License		-	-	(10,000)
	Computer equipment		-	(1,687)	(9,189)
	Computer software		-	(5,259)	(13,783)
	Equipment		-	-	(27,839)
NET CASH USED IN INVESTING ACTIVITIES			-	(6,946)	(60,811)
CASH FLOWS FROM FINANCING ACTIVITIES
	Proceeds from common stock issuance		-	19,900	206,702
	Stock subscriptions		(4,875)	-	-
	Proceeds from convertible loan-related party		-	-	23,800
Net cash provided by financing activities			(4,875)	19,900	230,502
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			(79,496)	16,303	16,498
CASH AND CASH EQUIVALENTS
Beginning of year			95,994	19,528	-
End of year			$            16,498	$           35,831	$           16,498
Supplemental disclosures of cash flow information:
	Interest on convertible loan-related party		$              2,153	$             1,548	$            7,338
The accompanying notes are an integral part of these financial statements.

6

eCRYPT TECHNOLOGIES, INC.

NOTES TO FINANCIAL STATEMENTS

For the Period April 19, 2007 (Inception) through September 30, 2009

1.

Nature of Operations

eCrypt Technologies Inc., a Colorado corporation (“the Company”), was incorporated on April 19, 2007.  The Company develops and sells encryption software which secures the transmission of, storage of, and access to digital information.  Software applications range from device based (for Personal Digital Assistants (“PDAs”), wireless handheld devices, laptop and desktop computers, pocket computers, cellular phones, smartphones, and other file storage devices), to server-based encryption software for email servers and for file-store server.

In addition to information security software, the Company also offers IT Consulting and Managed Private Network Services.

2.

Significant Accounting Policies

Basis of Presentation

The financial statements and accompanying notes are prepared in accordance with generally accepted accounting principles of the United States of America (“US GAAP”). Interim results are not necessarily indicative of results for a full year. The information included in this Form 10-Q should be read in conjunction with information included in the Form 10-K.

In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present fairly the financial position as of September 30, 2009 and the results of operations and cash flows presented herein have been included in the financial statements.  Operating results for the six months ended September 30, 2009 are not necessarily indicative of the results that may be expected for the year ending March 31, 2010.  The financial statements should be read in conjunction with the Form 10-K for the year ended March 31, 2009 of the Company.

The  Company  has  evaluated  subsequent  events  through  the  date  which the financial statements were available to be issued, November 16, 2009.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that impact the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as at the date of the financial statements and the reported amounts of revenue and expense during the reporting period.  Actual results could differ from those estimates.

Cash, Cash Equivalents and Investments

Cash equivalents consist of highly liquid investments with original maturities at the date of purchase of three months or less.  Short term investments mature in less than one year from the balance sheet date.

The Company places its cash and short-term investments with financial institutions with high credit quality investments in accordance with its investment policy designed to protect the principal investment.  Therefore, the Company believes that its exposure due to concentration of credit risk is minimal and has not experienced credit losses on investments in these instruments to date.

7

eCRYPT TECHNOLOGIES, INC.

NOTES TO FINANCIAL STATEMENTS

For the Period April 19, 2007 (Inception) through September 30, 2009

Property and Equipment

Property and Equipment are stated at cost less accumulated depreciation.  Depreciation is calculated using the straight line basis over their useful lives:

Computer equipment	2 years straight line basis
Computer software	1 years straight line basis
Equipment	5 years straight line basis

Revenue Recognition

Product revenue and miscellaneous income are recognized as earned.

Income Taxes

The Company accounts for income taxes as outlined in the Accounting Standards Codification ("ASC") 740 "Income Taxes", which was previously the Financial Accounting Standards Board (FASB) Statement No. 109, ("Accounting for Income Taxes" "Statement 109"). Under Statement 109, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under Statement 109, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

Related Parties

Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions.  Parties are also considered to be related if they are subject to common control or common significant influence.

Financial Instruments

The Company’s financial instruments consist of cash and cash equivalents, highly liquid short-term investments, interest receivable, accounts payable and accrued liabilities, stockholder loans and a convertible loan.  The Company does not hold or issue financial instruments for trading purposes and does not hold any derivative financial instruments.

The Company’s investment policy is to achieve, in order of importance, the financial objectives of preservation of principal, liquidity and return on investment.  Investments are made in U.S. obligations and bank securities provided the obligations are guaranteed or carry ratings appropriate for the policy.

The policy risks are primarily the opportunity cost of the conservative nature of the allowable investments.  As the Company is currently in the development stage, the Company has chosen to avoid investments of a trade or speculative nature.

Foreign Currency Translation

The measurement currency of the Company is the U.S. dollar. Transactions in foreign currencies are translated at the exchange rate in effect at the transaction date.  Monetary assets and liabilities denominated in other than the measurement currency are translated at the exchange rates in effect at the balance sheet date.  The resulting exchange gains and losses are recognized in earnings.

8

eCRYPT TECHNOLOGIES, INC.

NOTES TO FINANCIAL STATEMENTS

For the Period April 19, 2007 (Inception) through September 30, 2009

Net Earnings (Loss) per Share

Basic and diluted net loss per share information is presented under the requirements of SFAS No.128, Earnings per Share. Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding for the period, less shares subject to repurchase. Diluted net loss per share reflects the potential dilution of securities by adding other common stock equivalents, including stock options, shares subject to repurchase, warrants and convertible notes in the weighted-average number of common shares outstanding for a period, if dilutive. The computation of earnings (loss) per share is as follows:

	Six months ended September 30, 2009	Six months ended September 30, 2008
Net Loss	$      (71,048)	$ (45,907)
Weighted-average number of shares outstanding
Basic	33,379,554	33,203,992
Earnings (Loss) per share
Basic	(0.00)	(0.00)

3.

Property and Equipment

The components of the Company’s equipment are presented below:

		September 30, 2009	September 30, 2009	March 31, 2009
		Accumulated
	Cost	Amortization	Net	Net
Computer equipment	$9,189	$6,585	$2,604	$4,899
Computer software	13,783	13,750	33	2,861
Equipment	27,839	9,315	18,524	21,316
	$50,811	$29,650	$21,161	$29,076

Intangibles

The components of the Company’s license are presented below:

9

eCRYPT TECHNOLOGIES, INC.

NOTES TO FINANCIAL STATEMENTS

For the Period April 19, 2007 (Inception) through September 30, 2009

		Sept. 30, 2009	Sept. 30, 2009	March 31,
		Accumulated		2009
	Cost	Amortization	Net	Net
License	$10,000	5,555	4,445	6,111
	$10,000	$5,555	$4,445	$6,111

4.

Stockholders’ Equity

a)

Authorized:

500,000,000 Common shares with par value $0.001 each

  10,000,000 Preferred shares with no par value

b)

Issued or outstanding:

	Number of      shares	Amount
Balance, April 19, 2007	-	$           -
Common shares issued and outstanding	33,379,554	33,380
Paid in capital	-	173,322
Balance, March 31, 2009	33,379,554	$206,702
Common shares issued and outstanding	-	-
Paid in capital	-	-
Balance, September 30, 2009	33,379,554	$206,702

On October 09, 2008, the company announced a 4:1 forward stock split on its common shares. 33,203,992 common shares were issued for 8,300,998 common shares.

On November 12, 2009 the Board of Directors of the Company consented to and approved a four-for-one forward split of the Company’s 33,379,554 issued and outstanding shares of common stock.  Pursuant to Rule 10b-17, the Forward Split will become effective 10 days following the submission of the required notification forms to FINRA. The Company anticipates the effective date to be November 24, 2009.  On the effective date, the Company’s transfer agent will cause to be issued and mailed to the eligible shareholders of record, three additional shares of common stock for each share of common stock held by the shareholder.  The forward split will result in the increase in the number of shares of the Company’s common stock issued and outstanding to 133,518,216 while keeping the number of authorized shares and par value of such shares the same.

5.

Stock Subscriptions

The Company issued private placement subscription agreements. The total amount of common shares subscribed for cash at September 30, 2009 is $0.

6.

Convertible Loan-Related Party

On July 02, 2007, the Company issued a convertible debenture with a face value totaling $23,800. This loan, or any portion, is convertible at any time until paid in full at a rate of 1 common share per $0.001 of

10

eCRYPT TECHNOLOGIES, INC.

NOTES TO FINANCIAL STATEMENTS

For the Period April 19, 2007 (Inception) through September 30, 2009

the debt converted.  The loan bears interest at an annual rate of 12% percent compounded monthly. In accordance with EITF 98-5 the intrinsic value of the beneficial conversion feature has been recorded and valued at $0.  

7.

Advertising Costs

The Company’s policy regarding advertising is to expense advertising when incurred. The Company incurred $4,544 and $12,936 of advertising expense included in General and Administrative expenses in the six months ended September 30, 2009 and 2008.

8.

Deferred Revenue, Commitments, and Contingencies

On July 1^st, 2008 the Company entered into an agreement to provide a client with network services for a one year term.

The agreement provides for a prepayment of $61,800 for the full term of the contract. At September 30, 2009 the contract has been fulfilled.

9.

Uncertainty as a Going Concern

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. However, the Company has suffered recurring losses from operations and has a net capital deficiency that raises substantial doubt about its ability to continue as a going concern.

The Company’s ability to continue as a going concern is dependent upon its ability to generate profitable operations in the future and/or obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management has plans to seek additional capital through a private placement and public offering of its common stock. These plans, if successful, will mitigate the factors which raise substantial doubt about the Company’s ability to continue as a going concern.

10.

 Recent Accounting Pronouncements

FASB Accounting Standards Codification

(Accounting Standards Update (“ASU”) 2009-01)

In June 2009, FASB approved the FASB Accounting Standards Codification (“the Codification”) as the single source of authoritative nongovernmental GAAP. All existing accounting standard documents, such as FASB, American Institute of Certified Public Accountants, Emerging Issues Task Force and other related literature, excluding guidance from the Securities and Exchange Commission (“SEC”), have been superseded by the Codification. All other non-grandfathered, non-SEC accounting literature not included in the Codification has become nonauthoritative. The Codification did not change GAAP, but instead introduced a new structure that combines all authoritative standards into a comprehensive, topically organized online database. The Codification is effective for interim or annual periods ending after September 15, 2009, and impacts the Company’s financial statements as all future references to authoritative accounting literatu re will be referenced in accordance with the Codification. There have been no changes to the content of the Company’s financial statements or disclosures as a result of implementing the Codification during the quarter ended September 30, 2009.

As a result of the Company’s implementation of the Codification during the quarter ended September 30, 2009, previous references to new accounting standards and literature are no longer applicable. In the

11

eCRYPT TECHNOLOGIES, INC.

NOTES TO FINANCIAL STATEMENTS

For the Period April 19, 2007 (Inception) through September 30, 2009

current quarter financial statements, the Company will provide reference to both new and old guidance to assist in understanding the impacts of recently adopted accounting literature, particularly for guidance adopted since the beginning of the current fiscal year but prior to the Codification.

Subsequent Events

(Included in Accounting Standards Codification (“ASC”) 855 “Subsequent Events”, previously SFAS No. 165 “Subsequent Events”)

SFAS No. 165 established general standards of accounting for and disclosure of events that occur after the balance sheet date, but before the financial statements are issued or available to be issued (“subsequent events”). An entity is required to disclose the date through which subsequent events have been evaluated and the basis for that date. For public entities, this is the date the financial statements are issued. SFAS No. 165 does not apply to subsequent events or transactions that are within the scope of other GAAP and did not result in significant changes in the subsequent events reported by the Company. SFAS No. 165 became effective for interim or annual periods ending after June 15, 2009 and did not impact the Company’s financial statements. The Company evaluated for subsequent events through the issuance date of the Company’s financial statements. No recognized or non-recognized subsequent events were not ed.

Determination of the Useful Life of Intangible Assets

(Included in ASC 350 “Intangibles — Goodwill and Other”, previously FSP SFAS No. 142-3

“Determination of the Useful Lives of Intangible Assets”)

FSP SFAS No. 142-3 amended the factors that should be considered in developing renewal or extension assumptions used to determine the useful life of a recognized intangible asset under previously issued goodwill and intangible assets topics. This change was intended to improve the consistency between the useful life of a recognized intangible asset and the period of expected cash flows used to measure the fair value of the asset under topics related to business combinations and other GAAP. The requirement for determining useful lives must be applied prospectively to intangible assets acquired after the effective date and the disclosure requirements must be applied prospectively to all intangible assets recognized as of, and subsequent to, the effective date. FSP SFAS No. 142-3 became effective for financial statements issued for fiscal years beginning after December 15, 2008, and interim periods within those fiscal years. The adoption of F SP SFAS No. 142-3 did not impact the Company’s financial statements.

Noncontrolling Interests

(Included in ASC 810 “Consolidation”, previously SFAS No. 160 “Noncontrolling Interests in Consolidated Financial Statements an amendment of ARB No. 51”)

SFAS No. 160 changed the accounting and reporting for minority interests such that they will be recharacterized as noncontrolling interests and classified as a component of equity. SFAS No. 160 became effective for fiscal years beginning after December 15, 2008 with early application prohibited. The Company implemented SFAS No. 160 at the start of fiscal 2009 and no longer records an intangible asset when the purchase price of a noncontrolling interest exceeds the book value at the time of buyout. Any excess or shortfall for buyouts of noncontrolling interests in mature restaurants is recognized as an adjustment to additional paid-in capital in stockholders’ equity. Any shortfall resulting from the early buyout of noncontrolling interests will continue to be recognized as a benefit in partner investment expense up to the initial amount recognized at the time of buy-in. Additionally, operating losses can be allocated to noncontrol ling interests even when such allocation results in a deficit balance (i.e. book value can go negative).

12

eCRYPT TECHNOLOGIES, INC.

NOTES TO FINANCIAL STATEMENTS

For the Period April 19, 2007 (Inception) through September 30, 2009

The Company presents noncontrolling interests (previously shown as minority interest) as a component of equity on its consolidated balance sheets. Minority interest expense is no longer separately reported as a reduction to net income on the consolidated income statement, but is instead shown below net income under the heading “net income attributable to noncontrolling interests.” The adoption of SFAS No. 160 did not have any other material impact on the Company’s financial statements.

Accounting for Transfers of Financial Assets

In June 2009,  the  FASB  issued  SFAS  No. 166,  "Accounting  for Transfers of Financial  Assets,  an  amendment  to  SFAS  No. 140,"  ("SFAS 166"). SFAS  166 eliminates  the concept of a "qualifying special-purpose entity," changes  the requirements  for  derecognizing  financial  assets,  and  requires additional disclosures  in  order  to  enhance  information reported to users of financial statements  by providing greater transparency  about  transfers  of  financial assets, including  securitization transactions,  and  an  entity's  continuing involvement  in  and  exposure  to  the  risks related to transferred financial assets.  SFAS 166 is effective for fiscal years beginning after November 15, 2009. The Company will adopt SFAS 166 in fiscal 2010. The Company does not expect that the adoption of SFAS 166 will have a material impact on the financial statements.

Consolidation of Variable Interest Entities — Amended

(To be included in ASC 810 “Consolidation”, SFAS No. 167 “Amendments to FASB Interpretation No. 46(R)”)

SFAS No. 167 amends FASB Interpretation No. 46(R) “Consolidation of Variable Interest Entities regarding certain guidance for determining whether an entity is a variable interest entity and modifies the methods allowed for determining the primary beneficiary of a variable interest entity. The amendments include: (1) the elimination of the exemption for qualifying special purpose entities, (2) a new approach for determining who should consolidate a variable-interest entity, and (3) changes to when it is necessary to reassess who should consolidate a variable-interest entity. SFAS No. 167 is effective for the first annual reporting period beginning after November 15, 2009, with earlier adoption prohibited. The Company will adopt SFAS No. 167 in fiscal 2010 and does not anticipate any material impact on the Company’s financial statements.

11.

 Subsequent Events

As disclosed on Form 8-KA filed with the Securities and Exchange Commission on November 13, 2009, on November 12, 2009, the Board of Directors of the Company, consented to and approved a Four-for-one forward split of the Company’s 33,379,554issued and outstanding shares of common stock (the “Forward Split”) while maintaining the current number of authorized shares of common stock (500,000,000 shares) and the current par value per share ($0.001). The Company set the Record Date for determining the shareholders entitled to receive the Forward Split shares as November 12, 2009.  Pursuant to Rule 10b-17, the Forward Split will become effective 10 days following the submission of the required notification forms to FINRA. The Company anticipates the effective date to be November 24, 2009 (the “Effective Date”).  As a result of the Forward Split, all shareholders of record on the Record Date will receive 4 shares of common stock for every one share of common stock they currently own.  On the Effective Date, the Company’s transfer agent will cause to be issued and mailed to the eligible shareholders of record, three additional shares of common stock for each share of common stock held by the shareholder, thereby effectuating the Forward Split on a 4:1 basis.  The Forward Split will result in the increase in the number of shares of the Company’s common stock issued and outstanding to 133,518,216 while keeping the number of authorized shares and par value of such shares the same.  

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ITEM 2.

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

SPECIAL NOTE OF CAUTION REGARDING FORWARD-LOOKING STATEMENTS

CERTAIN STATEMENTS IN THIS REPORT, INCLUDING STATEMENTS IN THE FOLLOWING DISCUSSION, ARE WHAT ARE KNOWN AS "FORWARD LOOKING STATEMENTS", WHICH ARE BASICALLY STATEMENTS ABOUT THE FUTURE. FOR THAT REASON, THESE STATEMENTS INVOLVE RISK AND UNCERTAINTY SINCE NO ONE CAN ACCURATELY PREDICT THE FUTURE. WORDS SUCH AS "PLANS," "INTENDS," "WILL," "HOPES," "SEEKS," "ANTICIPATES," "EXPECTS "AND THE LIKE OFTEN IDENTIFY SUCH FORWARD LOOKING STATEMENTS, BUT ARE NOT THE ONLY INDICATION THAT A STATEMENT IS A FORWARD LOOKING STATEMENT. SUCH FORWARD LOOKING STATEMENTS INCLUDE STATEMENTS CONCERNING OUR PLANS AND OBJECTIVES WITH RESPECT TO THE PRESENT AND FUTURE OPERATIONS OF THE COMPANY, AND STATEMENTS WHICH EXPRESS OR IMPLY THAT SUCH PRESENT AND FUTURE OPERATIONS WILL OR MAY PRODUCE REVENUES, INCOME OR PROFITS. NUMEROUS FACTORS AND FUTURE EVENTS COULD CAUSE THE COMPANY TO CHANGE SUCH PLANS AND OBJECTIVES OR FAIL TO SUCCESSFULLY IMPLEMENT SUCH PLANS OR ACHIEVE SUCH OBJECTIVES, OR CAUSE SUCH PRESENT AND FUTURE OPERATIONS TO FAIL TO PRODUCE REVENUES, INCOME OR PROFITS. THEREFORE, THE READER IS ADVISED THAT THE FOLLOWING DISCUSSION SHOULD BE CONSIDERED IN LIGHT OF THE DISCUSSION OF RISKS AND OTHER FACTORS CONTAINED IN THIS REPORT ON FORM 10-Q AND IN THE COMPANY'S OTHER FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION. NO STATEMENTS CONTAINED IN THE FOLLOWING DISCUSSION SHOULD BE CONSTRUED AS A GUARANTEE OR ASSURANCE OF FUTURE PERFORMANCE OR FUTURE RESULTS.

Overview & Plan of Operation

eCrypt Technologies, Inc. was incorporated in the State of Colorado, on April 19, 2007.  The Company provides encryption software which secures the transmission of, storage of, and access to digital information.  Currently the Company is in the developmental stage and is in the process of establishing its business operations.  eCrypt’s primary business focus is on Information Security solutions which assist individuals and entities in securely transmitting, storing, and accessing information.  The Company believes its business will come from three primary areas: (1) Software sales; (2) Managed Communication Network Services (“MCNS”); and (3) Information Technology (“IT”) consulting services.  The Company believes that a majority of its revenues will be derived from software sales, while some of its revenue will be derived from MCNS and IT consulting se rvices.

Software Sales - eCrypt is developing and plans to sell device-based encryption and security software for Personal Digital Assistants (“PDAs”), wireless handheld devices, laptop and desktop computers, pocket computers, cellular phones, smartphones, and other file storage devices. The Company has developed, and is now selling via its eCommerce website, its flagship product,eCrypt, encryption software for messaging on BlackBerry® smartphones, and,eCrypt PayPerUse, a pay-per-use version of its flagship product; as of September 30, 2009, the Company had not earned any revenue from sales ofeCrypt, oreCrypt PayPerUse. The Company is also in the process of developing the next generation version of eCrypt.

 eCrypt is also developing and plans to sell device-based encryption and security software which protects email, Short Message Service (“SMS”), peer-to-peer (“P2P”), PIN-to-PIN, Instant Messaging (“IM”), Multimedia Message Service (“MMS”), and voice communications for users on such devices and mobile

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devices.  Additionally, eCrypt is developing and plans to sell device-based secure access interfaces which allow users to conduct financial activities on mobile devices, as well as secure access User Interfaces (“UIs”) for mobile devices.  eCrypt has the ability to customize its device-based encryption and security software, as well as its secure access UIs, for the purpose of securely storing, communicating and accessing information.  In addition to the device-based software, eCrypt is also developing and plans to sell appliance-based encryption software for email servers and for the files stored on servers.  

Managed Communications Network Service –eCrypt also operates a Managed Communications Network Services business through which eCrypt assists its clients with managing their electronic communication needs.  

IT ConsultingServices– eCrypt also will provide IT consulting services through which eCrypt will assist its clients with establishing solutions for deficiencies or weaknesses in the client’s business equipment, communications infrastructure, communications network security, and/or business practices in relation to the security of information.

Over the next twelve (12) months, eCrypt will continue developing product enhancements and strengthening strategic alliances.  In particular, eCrypt plans to complete development of the second generation version of it’s flagship producteCryptfor use on BlackBerry® smartphones, and commence development of additional language support for both versions ofeCrypt ,and eCrypt PayPerUses.  The Company has commenced research for development of encryption software solutions for platforms other than the Bl ackBerry® smartphone as well as research for development of other security software for mobile devices.  

As a result of CEO and President, Brad Lever, representing the Company at theWireless Enterprise Symposium (“WES”) in May of 2009, the Company has established several strategic distribution alliances with international Wireless Communications Networks.  The Company will be seeking to formalize and utilize these relationships in the first or second quarter of the 2010 fiscal year.  Furthermore, eCrypt will pursue strategic engagements of individuals considered to be leading authorities in the field of cryptography for the purposes of seeking advice, testing software, and providing other relevant product-specific research and guidance.

In addition to the foregoing, in an effort to advance the business operations of the Company, over the next twelve (12) months the Company plans to undertake the following actions in the order in which they are listed:

1.

complete development of the second generation version ofeCryptfor use on BlackBerry® smartphones;

2.

commence and complete BETA testing of the second generation version ofeCryptfor use on  BlackBerry® smartphones;

3.

commence distribution of second generation version ofeCrypt, in accordance with all applicable import and export rules and regulations;

The foregoing business actions are goals of the Company.  There is no assurance that the Company will be able to complete any, or all, of the foregoing actions.

Results of Operations

The following discussion and analysis provides information that we believe is relevant to an assessment and understanding of our results of operation and financial condition for the three and six months ended

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September 30, 2009. The following discussion should be read in conjunction with the financial statements and related notes appearing elsewhere in this Form 10-Q.

Our financial statements are stated in US Dollars and are prepared in accordance with generally accepted accounting principals of the United States (“GAAP”).

Results of Operation for eCrypt Technologies, Inc. for the Three Months Ended September 30, 2009 Compared to the Three Months Ended September 30, 2008.

Revenue

During the three months ended September 30, 2009, the Company had revenues of $12,143, as compared to revenues of $15,450 during the three months ended September 30, 2008, a decrease of $3,307, or approximately 21%.  All revenues during the current quarter were from the Company’s MCNS services.  The decrease in revenue experienced by the Company in the 2^nd quarter of 2009 as compared to the 2^nd quarter of 2008 was primarily attributable to the fact that certain MCNS customers renewed only a portion of their MCNS service during the three months ended September 30, 2009.

Operating Expenses

During the threemonths ended September 30, 2009, the Company had operating expenses of $57,922, as compared to operating expenses of $33,759 during the threemonths ended September 30, 2008, an increase of $24,163, or approximately 72%. The increase in operating expenses experienced by the Company was primarily attributable to the fact that the Company experienced increases in general and administrative expenses, interest expense, and professional fees during the three month period ended September 30, 2009 as compared to the same period in 2008.

The following chart illustrates the changes in our operating expenses for the three month period ended September 30, 2009, as compared to the three month period ended September 30, 2008:

		Three month period ended September 30,
		2009		2008	% Change
Operating expenses:
Depreciation	$	4,804	$	5,370	-10.5%
General and Administrative		29,579		14,851	99%
Professional Fees		23,539		13,538	74%
Total operating expenses	$	57,922	$	33,759	72%

Net Loss

The Company had a net loss of $(47,142) for thethreemonths ended September 30, 2009, as compared to a net loss of $(18,887) for thethreemonths ended September 30, 2008, a change of $28,255 or approximately 150%.  The change in net loss experienced by the Company was primarily attributable to the fact that the Company experienced an increase in operating expenses during the three months ended September 30, 2009 as compared to the same period in 2008.

Results of Operation for eCrypt Technologies, Inc. for the Six Months Ended September 30, 2009 Compared to the Six Months Ended September 30, 2008.

Revenue

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During the six months ended September 30, 2009, the Company had revenues of $27,594 as compared to revenues of $15,450 during the six months ended September 30, 2008, an increase of $12,144, or approximately 78.6%.  All revenues during the six months were from the Company’s MCNS services.  The increase in revenue experienced by the Company was primarily attributable to the fact that certain customers renewed their MCNS service.

Operating Expenses

During the sixmonths ended September 30, 2009, the Company had operating expenses of $96,783

 as compared to operating expenses of $59,767 during the sixmonths ended September 30, 2008, an increase of $37,016, or approximately 62%. The increase in operating expenses experienced by the Company was primarily attributable the fact that the Company experienced increases in general and administrative expenses, interest expense, and professional fees during the six month period ended September 30, 2009 as compared to the same period in 2008.

The following chart illustrates the changes in our operating expenses for the six month period ended September 30, 2009, as compared to the six month period ended September 30, 2008:

		Six month period ended September 30,
		2009		2008	% Change
Operating expenses:
Depreciation	$	9,582	$	9,865	-2.9%
General and Administrative		55,370		34,084	62.4%
Professional Fees		31,831		15,818	101%
Total operating expenses	$	96,783	$	59,767	62%

Net Loss

The Company had a net loss of $(71,048) for thesixmonths ended September 30, 2009, as compared to a net loss of $(45,907) for thesixmonths ended September 30, 2008, a change of $25,141, or approximately 55%.  The change in net loss experienced by the Company was primarily attributable to the fact that the Company experienced an increase in operating expenses during the six months ended September 30, 2009 as compared to the same period in 2008.

Liquidity and Capital Resources

Currently, we have limited operating capital.  The Company anticipates that it will require approximately $2,000,000 of working capital to complete all of its desired business activity during the next twelve months.  The Company has earned limited revenue from its business operations relating to its MCNS business through which eCrypt assists its clients with managing their electronic communication needs.  We expect that our current capital and our other existing resources will be sufficient only to provide a limited amount of working capital, and the revenues generated from our business operations alone may not be sufficient to fund our operations or planned growth.  During the next twelve months, we plan on generating the necessary capital to fund our business operations and complete our desired business activity through sales of our flagship product,eCrypt, andeCrypt PayperUse..  As of the pe riod ended September 30, 2009, we have not generated any revenue through sales ofeCryptoreCrypt PayPerUse.   If we are unable to generate the necessary capital through the sales ofeCrypt, andeCrypt PayPerUse, we may conduct a private placement offering to raise the necessary working capital to fund our business operations.   We may be unable to obtain the additional capital required.   Our inability to generate capital

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or raise additional funds when required will have a negative impact on our operations, business development and financial results.   

The following discussion outlines the state of our liquidity and capital resources for the three month period ended September 30, 2009:

Total Current Assets & Total Assets

Our unaudited balance sheet reflects that: i) as of September 30, 2009, we have total current assets of $17,783, as compared to total current assets of $99,432 at March 31, 2009, a decrease of $81,649, or approximately 82%; and ii) as of September 30, 2009, we have total assets of $43,387, compared to total assets of $134,619 as of March 31, 2009, a decrease of $91,232, or approximately 68%.  The decrease in the Company’s total current assets and total assets from March 31, 2009 to September 30, 2009 was primarily attributable to the fact that the Company experienced a decrease in its available cash.

Cash  As of September 30, 2009, our unaudited balance sheet reflects that we have cash of $16,498, as compared to $95,994 at March 31, 2009, a decrease of $79,496, or approximately 83%.  The decrease in the Company’s cash from March 31, 2009 to September 30, 2009 was primarily attributable to fact that the Company utilized available cash to pay for operating expenses.

Total Current Liabilities

Our unaudited balance sheet reflects that: i) as of September 30, 2009, we have total current liabilities of $32,349, as compared to total current liabilities of $47,658 at March 31, 2009, a decrease of $15,309, or approximately 32%; and ii) as of September 30, 2009, we have total liabilities of $32,349, as compared to total liabilities of $47,658 at March 31, 2009, a decrease of $15,309, or approximately 32%.  The decrease in the Company’s total current liabilities and total liabilities from March 31, 2009 to September 30, 2009 was primarily attributable to the Company earning previously deferred revenue for its MCNS services.

Deferred Revenue As of September 30, 2009, our unaudited balance sheet reflects that we have deferred revenue of $0, as compared to deferred revenue of $15,450 as of March 31, 2009.  The decrease in our deferred revenue was attributable to the fact that the Company provided the required MCNS services to earn the deferred revenue.

Cash Flow for the Company for the Six Month Period Ended September 30, 2009 as Compared to the Six Month Period Ended September 30, 2008

Cash Flows From Operating Activities During the six month period ended September 30, 2009, the net cash used by the Company in operating activities was $74,621 as compared to net cash used in operating activities of $(3,349) during the six month period ended September 30, 2008, a change of $77,970.  The increase in our net cash used in operating activities was primarily attributable to an increase in net loss, and an increase in accounts payable and accrued liabilities.

Cash Flows From Financing Activities During the six month period ended September 30, 2009, the net cash provided by financing activities was $(4,875) as compared to net cash provided by financing activities of $19,900 for the during the six month period ended September 30, 2008, a change of $24,775.  The change in net cash (used) provided by financing activities was primarily attributable to the fact that the Company did not engage in fundraising activities during the period, and also received one returned payment for a previous subscription by an individual for the purchase of the Company’s common stock pursuant to the terms of the private placement conducted by the Company.

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Cash Flows From Investing Activities During the six month period ended September 30, 2009, the net cash used in investing activities was $(0.00) as compared to net cash used in investing activities of $(6,946) for the during the six month period ended September 30, 2008, a change of $6,946.  The change in net cash used in investing activities was primarily attributable to the fact that the Company did not engage in any investing activities during the six period ended September 30, 2009.

Off Balance Sheet Arrangements

The Company does not have any off-balance sheet arrangements.

ITEM 4T.

CONTROLS AND PROCEDURES.

Disclosure Controls and Procedures

The Securities and Exchange Commission defines the term “disclosure controls and procedures” to mean a company's controls and other procedures of an issuer that are designed to ensure that information required to be disclosed in the reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Securities Exchange Act of 1934 is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosu re.  The Company maintains such a system of controls and procedures in an effort to ensure that all information which it is required to disclose in the reports it files under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified under the SEC's rules and forms and that information required to be disclosed is accumulated and communicated to principal executive and principal financial officers to allowtimely decisions regarding disclosure.

As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our chief executive officer and chief financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures.  Based on this evaluation, our chief executive officer and chief financial officer concluded that our disclosure controls and procedures are designed to provide reasonable assurance of achieving the objectives of timely alerting them to material information required to be included in our periodic SEC reports and of ensuring that such information is recorded, processed, summarized and reported within the time periods specified.  Our chief executive officer and chief financial officer also concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report to provide reasonable assurance of the achievem ent of these objectives.  

Changes in Internal Control over Financial Reporting

There was no change in the Company's internal control over financial reporting during the period ended September 30, 2009, that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

PART II-OTHER INFORMATION

ITEM 1.

LEGAL PROCEEDINGS.

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The Company is not a party to any pending legal proceedings, and no such proceedings are known to be contemplated. No director, officer or affiliate of the Company and no owner of record or beneficial owner of more than 5% of the securities of the Company, or any associate of any such director, officer or security holder is a party adverse to the Company or has a material interest adverse to the Company in reference to pending litigation.

ITEM 1A.

 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.

(a)

The following exhibits are filed herewith:

31.1

Certifications pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2

Certifications pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1

Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2

Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

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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.

eCRYPT TECHNOLOGIES, INC.

By:  /S/ Brad Lever

Brad Lever, Chief Executive Officer, Chief Financial Officer

Date:  November 16, 2009

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