Earth Search Sciences (ESSE) 10-Q 2010 Q1 Quarterly report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x           QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarter ended June 30, 2009

¨           TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______to_______

Commission File No. 000-19566

EARTH SEARCH SCIENCES, INC.

(Exact Name of Registrant as Specified in its Charter)

Nevada	87-0437723
(State or other Jurisdiction of Incorporation or Organization)	(IRS Employer Identification Number)

306 Stoner Loop Road, Lakeside, MT 59922

(Address of Principal Executive Offices, Including Zip Code)

Registrant's telephone number, including area code: (406) 751-5200

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, and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

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

Large accelerated filer ¨	Accelerated filer ¨
Non-accelerated filer ¨	Smaller reporting companyx

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

Number of shares of common stock outstanding at August 7, 2009: 194,655,705

EARTH SEARCH SCIENCES, INC.

TABLE OF CONTENTS

FORM 10-Q

QUARTER ENDED June 30, 2009

PART I FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements (Unaudited)	Page
Consolidated Balance Sheets as of June 30, 2009 and March 31, 2009	3
Consolidated Statements of Operations for the three month periods ended June 30, 2009 and 2008	4
Consolidated Statements of Cash Flows for the three month period ended June 30, 2009 and 2008	5
Consolidated Statement of Changes in Stockholders’ Deficit for the three month period ended June 30, 2009	6
Selected notes to consolidated financial statements	7-8
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	9-12
Item 3. Quantitative and Qualitative Disclosures About Market Risk	12
Item 4T. Controls and Procedures	12
PART II OTHER INFORMATION REQUIRED
Item 1. Legal Proceedings	13
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	13
Item 3. Defaults Upon Senior Securities	13
Item 4. Submission of Matters of a Vote of Security Holders	13
Item 5. Other information	13
Item 6. Exhibits	13

EARTH SEARCH SCIENCES, INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

	June 30, 2009		March 31, 2009
ASSETS
Current assets:
Cash	$	67,400	$	70,618
Prepaid expenses		9,698		13,448
Loan costs, net of accumulated amortization of $259,089 and $258,003, respectively		16,481		17,567
Total current assets		93,579		101,633
Property and equipment, net accumulated depreciation of $1,066,142 and $1,040,180, respectively		76,285		102,247
Intangible asset – patent		25,300		25,300
Deposits		887,076		914,516
TOTAL ASSETS	$	1,082,240	$	1,143,696
LIABILITIES
Current liabilities:
Accounts payable	$	1,441,155	$	1,513,631
Accounts Payable – related parties		407,822		389,968
Accrued expenses		3,660,077		3,395,875
Current portion of notes payable		2,878,440		2,128,440
Settlement obligation		8,686,824		8,686,824
Current portion of notes payable – related parties		3,061,058		2,557,258
Total current liabilities		20,135,376		18,671,996
Long term portion of notes payable		-		500,000
Long term portion of notes payable – related parties		-		500,000
Total liabilities		20,135,376		19,671,996
Commitments and contingencies		-		-
STOCKHOLDERS’ DEFICIT
Preferred stock, 300,000,000 shares authorized, $.001 par value, none issued or outstanding or none issued and outstanding		-		-
Common stock, $.001 par value; 300,000,000 shares authorized; 194,655,705 and 194,655,705 shares issued and outstanding, respectively		194,654		194,654
Additional paid-in capital		53,390,070		53,315,070
Treasury Stock		(200,000)		(200,000)
Accumulated deficit		(72,437,860)		(71,838,024)
Total stockholders’ deficit		(19,053,136)		(18,528,300)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT	$	1,082,240	$	1,143,696

See accompanying notes to unaudited consolidated financial statements.

EARTH SEARCH SCIENCES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

	Three months ended June 30,
	2009		2008
Revenues	$	-	$	-
Operating expenses
Depreciation and amortization		25,962		25,962
General and administrative		392,282		275,706
Total expenses		418,244		301,668
Loss from operations		(418,244)		(301,668)
Interest expense		(181,592)		(119,579)
Net loss	$	(599,836)	$	(421,247)
Basic and diluted:
Loss per share	$	(0.00)	$	(0.00)
Weighted average common shares outstanding		194,655,705		111,376,933

See accompanying notes to unaudited consolidated financial statements.

EARTH SEARCH SCIENCES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Three Months Ended
	June 30,
	2009		2008
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(599,836)	$	(421,247)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization		25,962		25,962
Amortization of deferred finance costs		1,086		7,004
Common stock issued for services		-		285,202
Common stock issued for vendor payable		-		129,969
Imputed interest		75,000		11,405
Changes in assets and liabilities:
Accounts payable and accrued expenses		203,951		(282,895)
Accounts payable – related party		17,854		-
Accrued interest – related parties		50,215		44,544
Prepaid expenses and other current asset		3,750		-
NET CASH USED IN OPERATING ACTIVITIES		(222,018)		(200,056)
CASH FLOWS FROM INVESTING ACTIVITIES
Cash paid for prototype		(35,000)		-
NET CASH USED IN OPERATING ACTIVITIES		(35,000)		-
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from stockholder loans, net		3,800		-
Repayment on related party debt		-		(65,032)
Proceeds from issuance of common stock		-		345,000
Proceeds from issuance of convertible notes		250,000		-
Principal payments on short-term debt		-		(68,299)
NET CASH PROVIDED BY FINANCING ACTIVITIES		253,800		211,669
NET INCREASE (DECREASE) IN CASH		(3,218)		11,613
CASH AT BEGINNING OF PERIOD		70,618		8,821
CASH AT END OF PERIOD	$	67,400	$	20,434
SUPPLEMENTAL CASH FLOW INFORMATION:
Interest paid	$	53	$	110,738
Taxes paid		-		-

See accompanying notes to unaudited consolidated financial statements.

EARTH SEARCH SCIENCES, INC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 - BASIS OF PRESENTATION

The accompanying unaudited interim consolidated financial statements of Earth Search Sciences, Inc. ("ESSI") have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission ("SEC"), and should be read in conjunction with the audited financial statements and notes thereto contained in ESSI's Annual Report filed with the SEC on Form 10-KSB for the fiscal year ended March 31, 2009. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosure contained in the audited consolidated financial statements for 2009 as reported in the 10-KSB have been omitted.

We do not expect the adoption of recently issued accounting pronouncements to have a significant impact on our results of operations, financial position or cash flow.

NOTE 2 - GOING CONCERN

As shown in the accompanying financial statements, we incurred a net loss of $599,836 for the three months ended June 30, 2009 and had an accumulated deficit of $72,437,860 and a working capital deficit of $20,041,797 as of June 30, 2009. These conditions raise substantial doubt as to ESSI's ability to continue as a going concern. Management is trying to raise additional capital through sales of stock and or loans to the Company. The financial statements do not include any adjustments that might be necessary if ESSI is unable to continue as a going concern.

NOTE 3 – DEBT

During the quarter ended June 30, 2009 our subsidiary General Synfuels International issued $250,000 of 10% convertible promissory notes. These notes will automatically convert to equity, at a price equal to 70% of the purchase price per share paid by equity investors, upon an equity financing in GSI of at least $3,000,000. The notes contain a change of control feature and become due and payable at 1.5 times the principal amount upon a change of control. We evaluated the conversion feature under SFAS No. 133 and determined that the convertible shares are not readily convertible into cash and therefore does not meet the provisions of net settlement.

In connection with the notes, we issued a warrant that allows the debt holder to purchase $250,000 in GSI’s Series A Preferred Stock at fair market value. Because there is no strike price for the warrant as it is equal to the fair value of the equity securities on the date of issuance, no value was assigned to the warrant.

NOTE 4 – SUBSEQUENT EVENTS

On July 9, 2009, the holders of our $2.5 million convertible notes that were issued in connection with the purchase of GSI agreed to exchange their convertible notes for convertible preferred stock with an equal face value. The preferred stock is convertible at $0.08 cents per share and the entire $2.5 million is convertible into an aggregate 31,250,000 shares of series C preferred shares.

The Series C Convertible Preferred shares contain dividend participation and voting rights on an as converted basis.  In addition, the Series C Convertible Preferred shareholders have preferential rights over other classes of stock in the event of liquidation. The Series C Convertible Preferred shares contain a mandatory conversion feature which is triggered on the fifth anniversary of the closing date, or July 8, 2014.  These preferred shares are convertible into an aggregate of 31,250,000 common shares.

FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q, including "Management's Discussion and Analysis of Financial Condition and Results of Operations" in this Item 2 of Part I of this Quarterly Report include forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by forward-looking statements.

In some cases, you can identify forward-looking statements by terminology such as "may," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "proposed," "intended," or "continue" or the negative of these terms or other comparable terminology. You should read statements that contain these words carefully, because they discuss our expectations about our future operating results or our future financial condition or state other "forward-looking" information. There may be events in the future that we are not able to accurately predict or control. You should be aware that the occurrence of any of the events described in this Quarterly Report could substantially harm our business, results of operations and financial condition, and that upon the occurrence of any of these events, the trading price of our securities. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, growth rates, levels of activity, performance or achievements. We are under no duty to update any of the forward-looking statements after the date of this Quarterly Report to conform these statements to actual results.

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

CORPORATE FOCUS

Earth Search Sciences, Inc. (ESSI) is a Utah corporation. We have five wholly-owned subsidiaries: Skywatch Exploration, Inc., Polyspectrum Imaging, Inc., Geoprobe, Inc., STDC, Inc and General Synfuels International (GSI). In addition, there are five majority-owned consolidated subsidiaries: Earth Search Resources, Inc., Eco Probe, Inc., ESSI Probe 1 LC, Petro Probe, Inc. and Terranet, Inc. All subsidiaries except Petro Probe were inactive during fiscal 2007 and 2008. General Synfuels International became active during the quarter ending December 31, 2008.

We did not generate any revenue during fiscal year 2008, have no current business operations and are currently focused on two potential business ventures.

Starting in July 2008, Luis Lugo replaced Larry Vance as CEO of ESSI and joined the Board of Directors. Mr. Vance remains as Chairman of Board of ESSI. 

First, we are working with certain investors to develop and employ technology in the extraction of oil and gas from oil shale. During the third quarter of 2008 ESSI acquired General Synfuels International, Inc, owner of the world-wide proprietary rights, patent, technology, construction plans and materials and operational capability for a gasification process to recover the oil and gas from oil shale.GSI has refined the design and begun development of our proof of concept prototype. However, the current state of the financial markets has negatively impacted our ability to raise the additional funds necessary to complete our prototype. Our current plan is to complete a field test of this technology as early as the fourth quarter of 2009 and subsequent commercial development as early as 2011.  Additionally we have secured oil shale land in both Wyoming and Colorado.

GSI continues to develop additional patents related to our technology and as part of that process we are exploring a tar sands application.  We anticipate the tar sands application to be used internationally.

Second, we are seeking joint venture opportunities with private industry, universities and state and federal agencies to develop, package and deliver, through the application of our hyperspectral remote sensing solutions, applications and associated technologies, superior airborne mapping products and services. Our airborne hyperspectral remote sensing technology is designed to identify specific surface substances and materials by measuring the reflectance of light from their surface. Their first spectroscopic instrument, the PROBE 1, was initially developed with the assistance of NASA and used a small aircraft as the instrument platform to obtain data from high altitudes over many different terrains. The information was precise enough to enable detailed analysis of a dynamic environment or object in a manner previously unattainable, and can be used for the discovery of certain natural resources.

Exploitation of Oil and Gas from Oil Shale

On August 15th of 2008 ESSI acquired all of the outstanding shares of General Synfuels International, Inc. (GSI), an entity controlled by certain management and directors of ESSI. This transaction was accounted for as an asset purchase due to the fact that GSI was dormant, did not have customers or employees and only held certain proprietary rights, patent, technology and construction plans for a gasification process to recover the oil and gas from oil shale. In addition, the asset was recorded at its historical cost due to the fact that this transaction was between entities under common control. Prior to the acquisition, both entities were controlled by certain members of management. The $5,494,700 value in excess of the historical cost of the asset was recorded as compensation expense.

ESSI paid the individual GSI Shareholders $5,500,000: 33,333,333 shares of common stock valued at $3,000,000 based on the closing price of ESSI’s stock on the date of the transaction; and $2,500,000 in the form of promissory notes payable to the GSI shareholders in five equal payments of $500,000. ESSI is currently negotiating a change in the payment terms of the notes at ESSI’s election, each promissory note payable can be converted into ESSI common stock at a 40% discount to the average trading price of ESSI common stock 5 days prior to the emission of payment. Because this transaction was between related parties, the patent asset was recorded at its historical cost of $5,300 and the remaining value of $5,494,700 was recorded as compensation expense for the period ended September 30, 2008, as the shareholders didn’t contribute any additional assets, tangible or intangible of value. ESSI has also entered into a Consulting Agreement with each of the GSI Shareholders. The GSI Shareholders are Ken Danchuk, Ron McQueen and Larry Vance.

Due to the current market conditions and fund raising environment ESSI is currently in negotiations with the GSI acquisition note holders to restructure the promissory notes. These notes are currently in default.

GSI is currently examining various private oil shale sites in Colorado and Wyoming for a test plant as well as starting the process of applying for a Bureau of Land Management R&D oil shale lease. The test plant is budgeted for approximately $8 million as a first stage development cost. The purpose of this plant is to prove the technology.

During the quarter ended June 30, 2009, we held $887,076 in deposits related to the development of a prototype related to the oil shale gasification process acquired through GSI.  During the quarter GSI received a credit in the amount of $27,440 from ISI. Additionally, $35,000 was paid during the three months ended June 30, 2009, with the balance of $100,020 recorded as accounts payable. Once the prototype is complete, further investment will be required for commercial production.

Hyperspectral Remote Sensing Solutions

In the past, we have utilized an aircraft mounted hyperspectral remote sensing instrument to gather precise geological data from the surface of the Earth. Solar energy is reflected from surface materials and the instrument, called "Probe-1", captures the data in digital form. The Probe-1 is a "whiskbroom style" instrument that collects data in a cross-track direction by mechanical scanning and in an along-track direction by movement of the airborne platform. The instrument acts as an imaging spectrometer in the reflected solar region of the electromagnetic spectrum (0.4 to 2.5 nm). In the VNIR and SWIR, the at-sensor radiance is dispersed by four spectrographs onto four detector arrays. Spectral coverage is nearly continuous in these regions with small gaps in the middle of the 1.4 and 1.9 nm atmospheric water bands. In order to avoid geometric distortions in the recorded imagery, the Probe-1 is mounted on a 3 axis, gyro-stabilized mount. Geolocation of nadir pixels is assisted by the recording of aircraft GPS positional data and tagging each scan line with a time that is referenced to the UTC time interrupts from the GPS receiver.

The spectral data is processed to identify unique spectra in the image. The captured and processed spectra are compared to a library of known material spectra called "digital fingerprints" and the output allows the identification of mineral, compounds and organic matter and the determination of vegetative conditions.

We are actively seeking funding to engineer and manufacture a third generation probe instrument, which will be capable of analyzing substantially more data inputs, including chemical, light, pressure, vibration, and acceleration. The new design will operate at extremely high speed with excellent resolution. We expect that the combination of substantially improved analysis and higher resolution will open up new markets.

We are currently evaluating hyperspectral imagery collected to date so that we can determine whether this archive of information can be used to locate mineral properties.

Our aircraft was grounded in 2006 for FAA required maintenance and repairs. As a result, our hyperspectral remote sensing operations have ceased until such time that we raise sufficient funding to repair our aircraft or purchase a new aircraft.

RESULTS OF OPERATIONS

Our data collection aircraft was grounded for repairs for FAA required maintenance in 2006 and has not been operational since that time. As a result, we had no revenues during the three months ended June 30, 2009 or 2008.

Depreciation and amortization expense was $25,962 for the three month period ended June 30, 2009 and June 30, 2008.

General and administrative expenses were $392,282 for the three month period ended June 30, 2009, compared to $275,706 for the corresponding period of 2008 . General and administrative expenses are higher primarily due to the additional activity in General Synfuels International, Inc.

Interest expense for the three month period ended June 30, 2009, was $181,592 compared to interest expense of $119,579 for the corresponding period in 2008. The increase in interest expense is primarily due to the added interest from the GSI Acquisition notes.

LIQUIDITY AND CAPITAL RESOURCES

Net cash used in operating activities was $222,018 for the three month period ended June 30, 2009 compared to net cash used by operating activities of $200,056 for the three month period ended June 30, 2008. The increase in cash used in operations is primarily due to deposits related to our oil shale recovery prototype and the payment of various accounts payable.

Net cash used by investing activities was $35,000 for the three month ended June 30, 2009 compared to $0 for the three month period ended June 30, 2008. The increase in cash used in investing is primarily due to deposit related to our oil shale recovery prototype .

Net cash provided by financing activities was $253,800 for the three month period ended June 30, 2009 compared to cash provided of $211,669 for the same period of 2008. During the three months ended June 30, 2009, we received $250,000 in debt financing. This compared to cash proceeds from a private placement of $345,000 for the similar period in 2008 that was offset by payments on debt and financing costs of $133,331.

We are experiencing working capital deficiencies because of operating losses. We have operated with funds received from the sale of common stock, the issuance of notes and no operating revenue. Our ability to continue as a going concern is dependent upon continued debt or equity financings until or unless we are able to generate cash flows to sustain ongoing operations. We plan to increase the number of revenue producing services through the development of our oil shale extraction technology and the use of additional hyperspectral instruments and thereby continue as a going concern. There can be no assurance that we can generate sufficient operating cash flows or raise the necessary funds to continue as a going concern.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As a smaller reporting company, ESSI is not required to provide disclosure under this Part I, Item 3.

ITEM 4T. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

Our management, principally our Chief Executive Officer, evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report. Based on that evaluation, our management concluded that our disclosure controls and procedures as of the end of the period covered by this report were not effective such that the information required to be disclosed by us in reports filed under the Securities Exchange Act of 1934 is (i.) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and (ii) accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate to allow timely decisions regarding disclosure. As part of our management’s assessment of internal controls over financial reporting as of March 31, 2009 we identified material weaknesses in our internal controls which we viewed as an integral part of our disclosure controls and procedures. The material weakness is identified below and as of June 30, 2009 have been partially remediated.

There is an over-reliance upon independent financial reporting consultants for review of critical accounting areas and disclosures and material non-standard transactions.

There is a lack of sufficient accounting staff which results in a lack of segregation of duties necessary for a good system of internal control. 

Changes in Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting that occurred during the period covered by this report that have materially affected, or that are reasonably likely to materially affect our internal control over financial reporting.

PART II

OTHER INFORMATION REQUIRED

Item 1. Legal proceedings

None

Item 2. Unregistered sales of equity securities

During the three month period ended June 30, 2009, we did not issue any shares of unregistered equity securities.

Item 3. Defaults upon senior securities

None

Item 4. Submission of matters to a vote of security holders

None

Item 5. Other information

None

Item 6. Exhibits

Exhibit Number	Description
3.1	Articles of Incorporation, as amended (Incorporated by reference to Exhibit 3.1 to the Registrant's Forms 10-K for the fiscal years ended March 31, 1995 and March 31, 1996).
3.2	Bylaws (Incorporated by reference to Exhibit 3.2 to the Registrants’ Form 10-K for the fiscal year ended March 31, 1995).
10.1	Purchase and Sale of Business Agreement between Earth Search Sciences, Inc. and Ken Danchuk, Ron McQueen and Larry Vance dated August 15, 2008 (Incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8K as filed September 9, 2008)
10.2	Promissory Note of Earth Search Sciences, Inc. in favor of Ken Danchuk dated August 15, 2008 (Incorporated by reference to Exhibit 10.2 to the Registrant’s Current Report on Form 8K as filed September 9, 2008)
10.3	Promissory Note of Earth Search Sciences, Inc. in favor of Ron McQueen dated August 15, 2008 (Incorporated by reference to Exhibit 10.3 to the Registrant’s Current Report on Form 8K as filed September 9, 2008)
10.4	Promissory Note of Earth Search Sciences, Inc. in favor of Larry Vance dated August 15, 2008 (Incorporated by reference to Exhibit 10.4 to the Registrant’s Current Report on Form 8K as filed September 9, 2008)
10.5	Agreement for Consulting Services between Earth Search Sciences, Inc. and Ken Danchuk dated August 15, 2008 (Incorporated by reference to Exhibit 10.5 to the Registrant’s Current Report on Form 8K as filed September 9, 2008)
10.6	Agreement for Consulting Services between Earth Search Sciences, Inc. and Ron McQueen dated August 15, 2008 (Incorporated by reference to Exhibit 10.6 to the Registrant’s Current Report on Form 8K as filed September 9, 2008)
10.7	Agreement for Consulting Services between Earth Search Sciences, Inc. and Larry Vance dated August 15, 2008 (Incorporated by reference to Exhibit 10.7 to the Registrant’s Current Report on Form 8K as filed September 9, 2008)
10.8	Agreement for Debt Settlement between Earth Search Sciences, Inc. and Larry Vance dated July 9, 2009
10.9	Agreement for Debt Settlement between Earth Search Sciences, Inc. and Ken Danchuk dated July 9, 2009
11.1	Agreement for Debt Settlement between Earth Search Sciences, Inc. and Ron McQueen dated July 9, 2009
31.1	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (Filed herewith)
31.2	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (Filed herewith)
32.1	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (Filed herewith)
32.2	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (Filed herewith)

SIGNATURE

 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.

	EARTH SEARCH SCIENCES, INC.
Date: August 7, 2009	/s/ Luis F. Lugo
	Luis F. Lugo
	Principal Executive Officer
Date: August 7, 2009	/s/ Charles G. Bridge
	Charles Bridge
	Principal Accounting Officer