UNITED ~~STATES~~STATESSECURITIES ~~SECURITIES~~ AND EXCHANGE ~~COMMISSION Washington~~COMMISSIONWashington, D.C. ~~20549~~ 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended ~~December~~March 31, ~~2011~~ 2012

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

For the transition period from ~~________to~~________ to ________

COMMISSION FILE NUMBER 000-52686

QUANTUM SOLAR POWER CORP. (Exact name of registrant as specified in its charter)

NEVADA	27-1616811
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
300-1055 West Hastings Street
Vancouver, BC	V6E 2E9
Vancouver, British Columbia, Canada	V6E 2E9
(Address of principal executive offices)	(Zip Code)

(604) -681-7311 (Registrant's telephone number, including area code)

N/A (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.

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

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

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: As of ~~February~~May 38, 2012, the Issuer had ~~149~~150,~~641~~179,~~692~~742 shares of common stock, issued and outstanding.

PART I - FINANCIAL INFORMATION

ITEM 1.

FINANCIAL STATEMENTS.

The accompanying unaudited financial statements have been prepared in accordance with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X, and, therefore, do not include all information and footnotes necessary for a complete presentation of financial position, results of operations, cash flows, and stockholders' equity in conformity with generally accepted accounting principles. In the opinion of management, all adjustments considered necessary for a fair presentation of the results of operations and financial position have been included and all such adjustments are of a normal recurring nature. Operating results for the ~~six~~nine month period ended ~~December~~March 31, ~~2011~~2012 are not necessarily indicative of the results that can be expected for the year ending June 30, 2012.

As used in this Quarterly Report, the terms "we,” "us,” "our,” and “Quantum” mean Quantum Solar Power Corp., unless otherwise indicated. All dollar amounts in this Quarterly Report are in U.S. dollars unless otherwise stated.

QUANTUM SOLAR POWER CORP.

(A Development Stage Company)

BALANCE SHEETS

Unaudited

(Expressed in United States Dollars)

		December 31,			June 30,
		March 31,			June 30,
		2011			2011
		2012			2011
					(Audited)
ASSETS
Current
Cash	$	1422,~~322~~554		$	343,289
Receivables		6513,~~872~~661			-
Prepaid expenses		1614,~~799~~732			1,676
Total Current Assets		9650,~~993~~947			344,965
Equipment (Note 3)		~~935~~911,~~928~~615			1,668
Patents (Note 4)		1,~~458~~438,~~077~~892			1,496,448
Total Assets	$	2,~~490~~401,~~998~~454		$	1,843,081
LIABILITIES AND STOCKHOLDERS' EQUITY
Current
Accounts payable and accrued liabilities (Note 7)	$	541,100		$	162,417
Accounts payable and accrued liabilities	$	875,156		$	162,417
Total Liabilities		541,100			162,417
Subscriptions received in advance (Note 6)		195,000			-
Loan payable (Note 5)		12,909			-
Total Liabilities		1,083,065			162,417
Stockholders' equity
Preferred stock, $0.001 par value 10,000,000 shares authorized - no shares issued and outstanding
Preferred stock, $0.001 par value 10,000,000 shares authorized - no shares issued and outstanding Common stock, $0.001 par value 400,000,000 shares authorized and 150,179,742 shares outstanding as of March 31, 2012 (June 30, 2011 – 146,927,692) (Note 6)		150,179			146,927
Common stock, $0.001 par value 400,000,000 shares authorized and 149,641,692 shares outstanding as of December 31, 2011 (June 30, 2011 – 146,927,692) (Note 5)		149,641			146,927
Commitment to issue shares (Note 6)		18,700			60,000
Commitment to issue shares (Note 5)		15,500			60,000
Additional paid in capital (Note 6)		11,522,198			8,221,991
Additional paid in capital (Note 5)		11,347,239			8,221,991
Accumulated deficit during development stage		(10,372,688	)		(6,748,254	)
Accumulated deficit during development stage		(9,562,482	)		(6,748,254	)
Total Stockholders' Equity		1,318,389			1,680,664
Total Stockholders' Equity		1,949,898			1,680,664
Total Liabilities and Stockholders' Equity	$	2,401,454		$	1,843,081
Total Liabilities and Stockholders' Equity	$	2,490,998		$	1,843,081
Nature and continuance of operations (Note 1)
Subsequent event (Note 9)

Nature and continuance of operations (Note 1) Subsequent event (Note 8)

The accompanying notes are an integral part of these financial statements.

F-1

QUANTUM SOLAR POWER CORP.

(A Development Stage Company)

STATEMENTS OF OPERATIONS

Unaudited

(Expressed in United States Dollars)

														For the
														period from
		For the three			For the three			For the ~~six~~nine			For the ~~six~~nine			April 14, 2004
		months ended			months ended			months ended			months ended			(Inception) to
		December 31,			December 31,			December 31,			December 31,			December 31,
		March 31,			March 31,			March 31,			March 31,			March 31,
		2011			2010			2011			2010			2011
		2012			2011			2012			2011			2012
OPERATING EXPENSES
Amortization of equipment	$	24,~~314~~313		$	278		$	2449,~~743~~056		$	~~556~~834		$	2650,~~411~~724
Amortization of patents		19,~~186~~185			19,185			3857,~~371~~556			3857,~~371~~556			~~153~~172,~~482~~667
General and administrative (Note 7)		234,616			168,958			454,340			351,958			1,443,891
General and administrative (Note 8)		155,934			50,073			610,274			402,030			1,599,825
Professional fees		~~348~~166,~~102~~388			~~148~~125,~~775~~230			~~512~~679,~~838~~226			~~221~~346,~~211~~442			1,~~265~~432,~~654~~042
Research and development (Note 7)		454,468			868,924			880,639			1,270,924			3,885,923
Research and development (Note 8)		353,569			614,390			1,234,208			1,885,314			4,239,492
Stock-based compensation (Note 5)		154,689			79,855			903,322			234,778			2,309,146
Stock-based compensation (Note 6)		90,817			923,849			994,139			1,158,627			2,399,963
		(1,235,375	)		(1,285,975	)		(2,814,253	)		(2,117,798	)		(9,084,507	)
		(810,206	)		(1,733,005	)		(3,624,459	)		(3,850,803	)		(9,894,713	)
OTHER ITEM
OTHER ITEMS
Interest income		25-			-			25			-			25
Impairment of intangible assets		-			-			-			-			(106,000	)
		25			-			25			-			(105,975	)
		-			-			25			-			(105,975	)
Loss and comprehensive loss for the period	$	(1810,~~235,350~~206	)	$	(1,~~285~~733,~~975~~005	)	$	(23,~~814~~624,~~228~~434	)	$	(23,~~117~~850,~~798~~803	)	$	(910,~~190~~000,~~482~~688	)
Basic and diluted loss per common share	$	(0.01	)	$	(0.01	)	$	(0.02	)	$	(0.0103	)
Weighted average number of common shares outstanding		~~148~~149,~~879~~757,~~627~~139			~~145~~146,~~190~~758,~~610~~720			~~147~~148,~~903~~516,~~659~~993			~~143~~144,~~750~~738,~~673~~718

The accompanying notes are an integral part of these financial statements.

F-2

QUANTUM SOLAR POWER CORP.

(A Development Stage Company)

STATEMENTS OF STOCKHOLDERS’ EQUITY

Unaudited

(Expressed in United States Dollars)

							Additional			Commitment			Accumulated			Total
													Accumulated			Total
							Paid in			to Issue			Deficit During			Stockholders'
							Additional Paid			Commitment to			Deficit During			Stockholders'
	Shares			Amount			in Capital			Issue Shares			the Dev. Stage			Equity
Balance, April 14, 2004 (Inception)	-		$	-		$	-		$	-		$	-		$	-
Common shares issued at par	117,200,000			15			92,485			-			-			92,500
Net loss	-			-			-			-			(9,557	)		(9,557	)
Loss	-			-			-			-			(9,557	)		(9,557	)
Balance, June 30, 2004	117,200,000			15			92,485			-			(9,557	)		82,943
Net loss	-			-			-			-			(40,111	)		(40,111	)
Loss	-			-			-			-			(40,111	)		(40,111	)
Balance, June 30, 2005	117,200,000			15			92,485			-			(49,668	)		42,832
Net loss	-			-			-			-			(26,654	)		(26,654	)
Loss	-			-			-			-			(26,654	)		(26,654	)
Balance, June 30, 2006	117,200,000			15			92,485			-			(76,322	)		16,178
Net loss	-			-			-			-			(15,652	)		(15,652	)
Loss	-			-			-			-			(15,652	)		(15,652	)
Balance, June 30, 2007	117,200,000			15			92,485			-			(91,974	)		526
Common shares issued at $2.00 per share	100,000			100			199,900			-			-			200,000
Net loss	-			-			-			-			(166,032	)		(166,032	)
Loss	-			-			-			-			(166,032	)		(166,032	)
Balance, June 30, 2008	117,300,000			115			292,385			-			(258,006	)		34,494
Net loss	-			-			-			-			(28,747	)		(28,747	)
Loss	-			-			-			-			(28,747	)		(28,747	)
Balance, June 30, 2009	117,300,000			115			292,385			-			(286,753	)		5,747
Private placement	280,000			280			559,720			-			-			560,000
Share issuance costs	-			-			(4,140	)		-			-			(4,140	)
Stock-based compensation	-			-			159,709			-			-			159,709
Commitment to issue shares	-			-			-			112,632			-			112,632
Acquisition of patents	71,500,000			71,500			1,540,059			-			-			1,611,559
Shares issued for services	50,000			50			99,950			-			-			100,000
Par value reclassification	-			117,185			(117,185	)		-			-			-
Return to treasury	(47,000,000	)		(47,000	)		47,000			-			-			-
Net loss	-			-			-			-			(1,360,963	)		(1,360,963	)
Loss	-			-			-			-			(1,360,963	)		(1,360,963	)
Balance, June 30, 2010	142,130,000			142,130			2,577,498			112,632			(1,647,716	)		1,184,544
Dividend-warrants	-			-			372,000			-			(372,000	)		-
Private placement	4,049,560			4,049			4,045,511			-			-			4,049,560
Return to nonqualified investors	(8,000	)		(8	)		(15,992	)		-			-			(16,000	)
Exercise of warrants	372,000			372			3,348			-			-			3,720
Share issued as finder’s fees	161,500			161			161,339			-			-			161,500
Shares issued as finder’s fees	161,500			161			161,339			-			-			161,500
Share issuance costs	-			-			(390,237	)		-			-			(390,237	)
Stock-based compensation	-			-			1,246,115			-			-			1,246,115
Shares issued for services	222,632			223			222,409			(112,632	)		-			110,000
Commitment to issue shares	-			-			-			60,000			-			60,000
Net loss	-			-			-			-			(4,728,538	)		(4,728,538	)
Loss	-			-			-			-			(4,728,538	)		(4,728,538	)
Balance, June 30, 2011	146,927,692			146,927			8,221,991			60,000			(6,748,254	)		1,680,664
Private placements	2,~~374~~662,~~000~~050			2,~~374~~662			2,~~071~~128,~~626~~948			-			-			2,~~074~~131,~~000~~610
Share issued for services	340,000			340			150,860			(60,000	)		-			91,200
Shares issued for services	590,000			590			178,110			(60,000	)		-			118,700
Share issuance costs	-			-			(~~560~~990	)		-			-			(~~560~~990	)
Stock-based compensation	-			-			~~903~~994,~~322~~139			-			-			~~903~~994,~~322~~139
Commitment to issue shares	-			-			-			1518,~~500~~700			-			1518,~~500~~700
Net loss	-			-			-			-			(2,814,228	)		(2,814,228	)
Loss	-			-			-			-			(3,624,434	)		(3,624,434	)
Balance, December 31, 2011	149,641,692		$	149,641		$	11,347,239		$	15,500		$	(9,562,482	)	$	1,949,898
Balance, March 31, 2012	150,179,742		$	150,179		$	11,522,198		$	18,700		$	(10,372,688	)	$	1,318,389

The accompanying notes are an integral part of these financial statements.

F-3

QUANTUM SOLAR POWER CORP.

(A Development Stage Company)

STATEMENTS OF CASH FLOWS

Unaudited

(Expressed in United States Dollars)

								For the Period			~~For the Period~~
		For the six			For the six			For the six			April 14, 2004
		For the nine			For the nine			April 14, 2004
		months ended			months ended			~~months~~(Inception) ~~ended~~to			~~(Inception) to~~
		December 31,			December 31,			December 31,			December 31,
		March 31,			March 31,			March 31,
		2011			2010			2009			2011
		2012			2011			2012
CASH FLOWS FROM OPERATING ACTIVITIES
Loss for the period	$	(23,~~814~~624,~~228~~434	)	$	(23,~~117~~850,~~798~~803	)	$	(1510,~~328~~000,688	)	$	~~(9,190,482~~	)
Items not affecting cash:
Amortization of equipment		2449,~~743~~056			~~556~~834			-50,724			~~26,411~~
Amortization of intangible assets		38,371			38,371			-			153,482
Amortization of patents		57,556			57,556			172,667
Impairment of intangible assets		-			-			-106,000			~~106,000~~
Stock-based compensation		~~903~~994,~~322~~139			~~234~~1,~~778~~158,627			-2,399,963			~~2,309,146~~
Shares for management services		-			-			-100,000			~~100,000~~
Shares for consulting and management bonuses		~~106~~137,~~700~~400			~~160~~140,000			-420,032			~~389,332~~
Changes in non-cash working capital items:
Warrants for consultants					773
(Increase) decrease in receivables		(65,872	)		4,638			-			(65,872	)
Changes in non-cash working capital items:
(Increase) decrease in prepaid expenses		(15,123	)		9,699			-			(16,799	)
Increase in receivables		(13,661	)		(29,988	)		(13,661	)
(Decrease) increase in accounts payable and accrued liabilities		378,683			(143,179	)		1,607			550,100
(Increase) decrease in prepaid expenses		(13,056	)		9,699			(14,732	)
Net cash used in operating activities		(1,443,404	)		(1,812,935	)		(13,721	)		(5,638,682	)
(Decrease) increase in accounts payable and accrued liabilities		712,739			(122,420	)		884,156
CASH FLOWS FROM INVESTING ACTIVITIES
Net cash used in operating activities		(1,700,261	)		(2,635,722	)		(5,895,539	)
Equipment		(3,620	)		-			-			(6,956	)
CASH FLOWS FROM INVESTING ACTIVITIES
Scientific equipment		(955,383	)		-			-			(955,383	)
Equipment		(3,620	)		-			(6,956	)
Purchase of technology rights		-			-			-			(15,000	)
Scientific equipment		(955,383	)		-			(955,383	)
Purchase of intangible assets		-			-			-			(100,000	)
Purchase of technology rights		-			-			(15,000	)
Net cash used in investing activities		(959,003	)		-			-			(1,077,339	)
Purchase of intangible assets		-			-			(100,000	)
CASH FLOWS FROM FINANCING ACTIVITIES
Net cash used in investing activities		(959,003	)		-			(1,077,339	)
Proceeds from line of credit and loans payable		-			-			500			43,713
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock		2,074,000			3,963,060			-			6,976,060
Increase in loan payable		12,909			-			12,909
Proceeds from exercise of warrants		-			3,720			-			3,720
Proceeds from line of credit and loans payable		-			-			43,713
Share issuance costs		(560	)		(262,509	)		-			(233,437	)
Proceeds from issuance of common stock		2,131,610			3,973,060			7,033,670
Refunds to nonqualified investors		-			(16,000	)		-			(16,000	)
Proceeds from exercise of warrants		-			3,720			3,720
Subscriptions received in advance		-			10,000			-			-
Share issuance costs		(990	)		(228,524	)		(233,867	)
Cash used to pay line of credit and loans payable		-			(18,713	)		-			(43,713	)
Refunds to nonqualified investors		-			(16,000	)		(16,000	)
Net cash provided by financing activities		2,073,440			3,679,558			500			6,730,343
Subscriptions received in advance		195,000			-			195,000
Change in cash during the period		(328,967	)		1,866,623			(13,221	)		14,322
Cash used to pay line of credit and loans payable		-			(18,713	)		(43,713	)
Cash, beginning of period		343,289			70,230			13,247			-
Net cash provided by financing activities		2,338,529			3,713,543			6,995,432
Cash, end of period	$	14,322		$	1,936,853		$	26		$	14,322
Change in cash during the period		(320,735	)		1,077,821			22,554
Supplemental disclosures with respect to cash flows (Note 6)
Cash, beginning of period		343,289			70,230			-
Cash, end of period	$	22,554		$	1,148,051		$	22,554
Supplemental disclosures with respect to cash flows (Note 7)

The accompanying notes are an integral part of these financial statements.

F-4

QUANTUM SOLAR POWER CORP. (A Development Stage Company) NOTES TO THE FINANCIAL STATEMENTS (Expressed in United States Dollars) Unaudited ~~DECEMBER~~MARCH 31, ~~2011~~2012

1.	NATURE AND CONTINUANCE OF OPERATIONS
	Quantum Solar Power Corp. (the “Company”) was incorporated in Nevada on April 14, 2004. The Company is a development stage company engaged in the business of developing and commercializing next generation solar power technology under the name Next Generation Device™ abbreviated NGD™. Quantum’s NGD™ is a patent pending, functioning, laboratory model that demonstrates its utility in solar power conversion.
	The Company operates in one reportable segment being the research and development of solar power technology in Canada and the United States of America. Revenues will be substantially derived from royalty based licensing arrangements in this reporting segment.
	Going Concern
	These financial statements have been prepared consistent with accounting policies generally accepted in the United States (“U.S. GAAP”) assuming the Company will continue as a going concern. Currently, the Company has no sales and has incurred a net loss of $2,814,228 for the six months ended December 31, 2011 and an accumulated loss of $9,190,482 for the period from April 14, 2004 (inception) to December 31, 2011. The Company also relies on patents and contractual restrictions to protect intellectual property. The existing provisional and future patents could be challenged. The future of the Company is dependent upon its ability to obtain financing and protect its proprietary process upon future profitable operations from development and commercialization of an NGD™. Management has plans to seek additional capital through private placements and public offerings of its common stock. These factors raise substantial doubt that the Company will be able to continue as a going concern.
	These financial statements have been prepared consistent with accounting policies generally accepted in the United States (“U.S. GAAP”) assuming the Company will continue as a going concern. Currently, the Company has no sales and has incurred a loss of $3,624,434 for the nine months ended March 31, 2012 and an accumulated loss of $10,000,688 for the period from April 14, 2004 (inception) to March 31, 2012. The Company has been unable to fund research activities. Consequently, research activities have been suspended. The Company also relies on patents and contractual restrictions to protect intellectual property. The existing provisional and future patents could be challenged. These conditions indicate the existence of a material uncertainty that may cost a significant doubt about the Company’s ability to continue as a going concern. The future of the Company is dependent upon its ability to obtain financing, resume research activities and protect its proprietary process upon future profitable operations from development and commercialization of an NGD™.
	Management's plans for the continuation of the Company as a going concern include financing the Company's operations through issuance of its common stock. If the Company is unable to complete its financing requirements or achieve revenue as projected, it will then modify its expenditures and plan of operations to coincide with the actual financing completed and actual operating revenues. There are no assurances, however, with respect to the future success of these plans.
	Management is in the process of obtaining additional financing, which may involve debt or equity offerings, and negotiating an agreement to continue conducting research. If the Company is unable to complete its financing requirements or achieve revenue as projected, it will then modify its expenditures and plan of operations to coincide with the actual financing completed. There are no assurances, however, with respect to the future success of these plans.
	The accompanying financial statements do not include any adjustments to the recorded assets or liabilities that might be necessary should the Company fail in any of the above objectives and is unable to operate for the coming year.
2.	SIGNIFICANT ACCOUNTING POLICIES
	Basis of Presentation
	The accompanying financial statements have been prepared in accordance with U.S. GAAP and are expressed in U.S. dollars. The financial statements have been prepared under the guidelines of Accounting and Reporting by Development Stage Enterprises. A development stage enterprise is one in which planned principal operations have not commenced, or if its operations have commenced, there have been no significant revenues therefrom. As of December 31, 2011, the Company had not commenced its planned principal operations. These financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended June 30, 2011, included in the Company’s Annual Report on Form 10-K, filed September 13, 2011, with the Securities Exchange Commission. For a full description of the Company’s significant accounting policies, refer to the footnotes to the audited financial statements for the Company for its fiscal year ended June 30, 2011 included in the Company’s Annual Report in Form 10-K for that year.
	The accompanying financial statements have been prepared in accordance with U.S. GAAP and are expressed in U.S. dollars. The financial statements have been prepared under the guidelines of Accounting and Reporting by Development Stage Enterprises. A development stage enterprise is one in which planned principal operations have not commenced, or if its operations have commenced, there have been no significant revenues therefrom. As of March 31, 2012, the Company had not commenced its planned principal operations. These financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended June 30, 2011, included in the Company’s Annual Report on Form 10-K, filed September 13, 2011, with the Securities Exchange Commission. For a full description of the Company’s significant accounting policies, refer to the footnotes to the audited financial statements for the Company for its fiscal year ended June 30, 2011 included in the Company’s Annual Report in Form 10-K for that year.

F-5

QUANTUM SOLAR POWER CORP. (A Development Stage Company) NOTES TO THE FINANCIAL STATEMENTS (Expressed in United States Dollars) Unaudited ~~DECEMBER~~MARCH 31, ~~2011~~2012

2.	SIGNIFICANT ACCOUNTING POLICIES (cont’d)
	Equipment
	Equipment is recorded at cost less accumulated amortization. Amortization is provided annually on assets placed in use on a straight-line basis over 3 years for computer equipment and 5 years for scientific equipment.
	Recent accounting pronouncements
	Recent accounting pronouncements that the Company has adopted or will be required to adopt in the future are summarized below.
	In January 2010, the FASB issued ASU 2010-06, “Improving Disclosures about Fair Value Measurements,” which amends ASC 820, “Fair Value Measures and Disclosures.” ASU 2010-06 requires disclosure of transfers into and out of Level 1 and Level 2 fair value measurements, and also requires more detailed disclosure about the activity within Level 3 fair value measurements. The changes to the ASC as a result of this update are effective for annual and interim reporting periods beginning after December 15, 2009 (adopted July 1, 2010), except for requirements related to Level 3 disclosures, which are effective for annual and interim reporting periods beginning after December 15, 2010 (July 1, 2011 for the Company). This guidance requires new disclosures only, and had no impact on the financial statements.
	In January 2010, the FASB issued ASU 2010-06, “Improving Disclosures about Fair Value Measurements,” which amends ASC 820, “Fair Value Measurements and Disclosures.” ASU 2010-06 requires disclosure of transfers into and out of Level 1 and Level 2 fair value measurements, and also requires more detailed disclosure about the activity within Level 3 fair value measurements. The changes to the ASC as a result of this update are effective for annual and interim reporting periods beginning after December 15, 2009 (adopted July 1, 2010), except for requirements related to Level 3 disclosures, which are effective for annual and interim reporting periods beginning after December 15, 2010 (July 1, 2011 for the Company). This guidance requires new disclosures only, and had no impact on the financial statements.
	In April 2010, the FASB issued ASU 2010-13, Compensation – Stock Compensation (Topic 718), amending ASC 718. ASU 2010-13 clarifies that a share-based payment award with an exercise price denominated in the currency of a market in which the entity’s equity securities trade should not be classified as a liability if it otherwise qualifies as equity. ASU 2010-13 also improves GAAP by improving consistency in financial reporting by eliminating diversity in practice. ASU 2010-13 is effective for interim and annual reporting periods beginning after December 15, 2010 (July 1, 2011 for the Company). The Company has adopted this standard and it had no impact on the Company’s financial reporting and disclosures.
	In December 2010, the FASB issued ASU No. 2010-28—When to Perform Step 2 of the Goodwill Impairment Test for Reporting Units with Zero or Negative Carrying Amounts. This update provides amendments to Accounting Standards Codification (“ASC”) Topic 350—Intangibles, Goodwill and Other that requires an entity to perform Step 2 impairment test even if a reporting unit has zero or negative carrying amount. The first step is to identify potential impairments by comparing the estimated fair value of a reporting unit to its carrying value, including goodwill. If the carrying value of a reporting unit exceeds the estimated fair value, a second step is performed to measure the amount of impairment, if any. The second step is to determine the implied fair value of the reporting unit’s goodwill, measured in the same manner as goodwill is recognized in a business combination, and compare that amount with the carrying amount of the goodwill. If the carrying value of the reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. ASU No. 2010-28 is effective beginning January 1, 2011. As a result of this standard, goodwill impairments may be reported sooner than under current practice. The Company does not expect ASU No. 2010-28 to have a material impact on the financial statements.
	In December 2010, the FASB issued ASU 2010-29, which contains updated accounting guidance to clarify the acquisition date that should be used for reporting pro forma financial information when comparative financial statements are issued. This update requires that a company should disclose revenue and earnings of the combined entity as though the business combination(s) that occurred during the current year had occurred as of the beginning of the comparable prior annual reporting period only. This update also requires disclosure of the nature and amount of material, nonrecurring pro forma adjustments. The provisions of this update, which are to be applied prospectively, are effective for business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2010, with early adoption permitted. The Company has adopted this standard and it had no impact on the Company’s financial reporting and disclosures.
	In December 2010, the FASB issued ASU 2010-29, which contains updated accounting guidance to clarify the acquisition date that should be used for reporting pro forma financial information when comparative financial statements are issued. This update requires that a company should disclose revenue and earnings of the combined entity as though the business combination(s) that occurred during the current year had occurred as of the beginning of the comparable prior annual reporting period only. This update also requires disclosure of the nature and amount of material, nonrecurring pro forma adjustments. The provisions of this update, which are to be applied prospectively, are effective for business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2010, with early adoption permitted. The impact of this update on the Company’s financial statements will depend on the size and nature of future business combinations.

F-6

QUANTUM SOLAR POWER CORP. (A Development Stage Company) NOTES TO THE FINANCIAL STATEMENTS (Expressed in United States Dollars) Unaudited ~~DECEMBER~~MARCH 31, ~~2011~~2012

2.	SIGNIFICANT ACCOUNTING POLICIES (cont’d)
	Recent accounting pronouncements (cont’d)
	In May 2011, the FASB issued ASU No. 2011-04, “Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs”, which is intended to improve comparability of fair value measurements presented and disclosed in financial statements prepared in accordance with U.S. generally accepted accounting principles and International Financial Reporting Standards. This standard clarifies the application of existing fair value measurement requirements including (1) the application of the highest and best use valuation premise, (2) the methodology to measure the fair value of an instrument classified in a reporting entity’s shareholders’ equity, (3) disclosure requirements for quantitative information on Level 3 fair value measurements and (4) guidance on measuring the fair value of financial instruments managed within a portfolio. In addition, the standard requires additional disclosures of the sensitivity of fair value to changes in unobservable inputs for Level 3 securities. This standard is effective for interim and annual reporting periods ending on or after December 15, 2011. Based on the Company’s evaluation of the ASU, the adoption of ASU 2011-04 will not have material impact on the Company’s financial statements.
	In May 2011, the FASB issued ASU No. 2011-04, “Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs”, which is intended to improve comparability of fair value measurements presented and disclosed in financial statements prepared in accordance with U.S. generally accepted accounting principles and International Financial Reporting Standards. This standard clarifies the application of existing fair value measurement requirements including (1) the application of the highest and best use valuation premise, (2) the methodology to measure the fair value of an instrument classified in a reporting entity’s shareholders’ equity, (3) disclosure requirements for quantitative information on Level 3 fair value measurements and (4) guidance on measuring the fair value of financial instruments managed within a portfolio. In addition, the standard requires additional disclosures of the sensitivity of fair value to changes in unobservable inputs for Level 3 securities. This standard is effective for interim and annual reporting periods ending on or after December 15, 2011. The Company has adopted this standard and it had no impact on the Company’s financial reporting and disclosures.
	In June 2011, the FASB issued ASU No. 2011-05, “Presentation of Comprehensive Income”, which requires that comprehensive income be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. The standard also requires entities to disclose on the face of the financial statements reclassification adjustments for items that are reclassified from other comprehensive income to net earnings. This standard no longer allows companies to present components of other comprehensive income only in the statement of equity. This standard is effective for interim and annual reporting periods beginning after December 15, 2011. The adoption of this guidance is not expected to have a significant impact on the Company’s financial statements other than the prescribed change in presentation.
	In June 2011, the FASB issued ASU No. 2011-05, “Presentation of Comprehensive Income”, which requires that comprehensive income be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. The standard also requires entities to disclose on the face of the financial statements reclassification adjustments for items that are reclassified from other comprehensive income to net earnings. This standard no longer allows companies to present components of other comprehensive income only in the statement of equity. This standard is effective for interim and annual reporting periods beginning after December 15, 2011. The Company has adopted this standard and it had no impact on the Company’s financial reporting and disclosures.
	In September 2011, the FASB issued ASU No. 2011-08, “Intangibles—Goodwill and Other (Topic 350): Testing Goodwill for Impairment” (“ASU 2011-08”). ASU 2011-08 is intended to simplify how entities, both public and nonpublic, test goodwill for impairment. ASU 2011-08 permits an entity to first assess qualitative factors to determine whether it is “more likely than not” that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test described in Topic 350. The more-likely-than-not threshold is defined as having a likelihood of more than 50%. ASU 2011-08 is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. Although early adoption is permitted, the Company will adopt ASU 2011-08 as of January 1, 2012. Based on the Company’s evaluation of this ASU, the adoption of ASU 2011-08 will not have a material impact on the Company’s financial statements.
	In September 2011, the FASB issued ASU No. 2011-08, “Intangibles—Goodwill and Other (Topic 350): Testing Goodwill for Impairment” (“ASU 2011-08”). ASU 2011-08 is intended to simplify how entities, both public and nonpublic, test goodwill for impairment. ASU 2011-08 permits an entity to first assess qualitative factors to determine whether it is “more likely than not” that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test described in Topic 350. The more-likely-than-not threshold is defined as having a likelihood of more than 50%. ASU 2011-08 is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. Although early adoption is permitted, the Company adopted ASU 2011-08 as of January 1, 2012. Based on the Company’s evaluation of this ASU, the adoption of ASU 2011-08 did not have a material impact on the Company’s financial statements.
	In December 2011, the FASB issued ASU No. 2011-11, “Balance Sheet (Topic 210)—Disclosures about Offsetting Assets and Liabilities” (“ASU 2011-11”). The update requires entities to disclose information about offsetting and related arrangements of financial instruments and derivative instruments. ASU 2011-11 is effective for the Company in the first quarter of its fiscal year ending June 30, 2014 (“fiscal 2014”). The Company currently believes there will be no significant impact on its financial statements.

F-7

QUANTUM SOLAR POWER CORP. (A Development Stage Company) NOTES TO THE FINANCIAL STATEMENTS (Expressed in United States Dollars) Unaudited ~~DECEMBER~~MARCH 31, ~~2011~~2012

2.	SIGNIFICANT ACCOUNTING POLICIES (cont’d)
	Recent accounting pronouncements (cont’d)
	In December 2011, the FASB issued ASU 2011-12, “Comprehensive Income (Topic 220) – Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05. ASU 2011-12 defers only those changes in Update No. 2011-05 that relate to the presentation of the reclassification adjustments. Under the amendments in Update No. 2011-05, entities are required to present reclassification adjustments and the effect of those reclassification adjustments on the face of the financial statements where net income presented, by component of net income, and on the face of the financial statements where other comprehensive income is presented, by component of other comprehensive income. In addition, the amendments in Update No. 2011-05 require that reclassification adjustments be presented in interim financial periods. This standard is effective for interim and annual reporting periods beginning after December 15, 2011. The adoption of this guidance is not expected to have a significant impact on the Company’s financial statements other than the prescribed change in presentation.
	In December 2011, the FASB issued ASU 2011-12, “Comprehensive Income (Topic 220) – Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05. ASU 2011-12 defers only those changes in Update No. 2011-05 that relate to the presentation of the reclassification adjustments. Under the amendments in Update No. 2011-05, entities are required to present reclassification adjustments and the effect of those reclassification adjustments on the face of the financial statements where net income is presented, by component of net income, and on the face of the financial statements where other comprehensive income is presented, by component of other comprehensive income. In addition, the amendments in Update No. 2011-05 require that reclassification adjustments be presented in interim financial periods. This standard is effective for interim and annual reporting periods beginning after December 15, 2011. The Company has adopted this standard and it had no impact on the Company’s financial reporting and disclosures.
3.	EQUIPMENT

		Six months ended						Year ended
		Nine months ended						Year ended
		December 31, 2011						June 30, 2011
		March 31, 2012						June 30, 2011
				Accumulated		Net				Accumulated		Net
		Cost		Amortization		Book Value		Cost		Amortization		Book Value
Computer equipment	$	6,956	$	2,~~526~~955	$	4,~~430~~001	$	3,336	$	1,668	$	1,668
Scientific equipment		955,383		2347,~~885~~769		~~931~~907,~~498~~614		-		-		-
Total	$	962,339	$	2650,~~411~~724	$	~~935~~911,~~928~~615	$	3,336	$	1,668	$	1,668

During the six months ended December 31, 2011, the Company purchased $940,343 of scientific equipment through the agreement with Canadian Integrated Optics International Ltd. of Douglas, Isle of Man (“CIOI”) (Note 4) and $15,040 of scientific equipment through another vendor. The Company began amortizing the equipment on October 1, 2011 with an estimated useful life of 5 years and has recorded $23,885 in accumulated amortization as at December 31, 2011.

	During the nine months ended March 31, 2012, the Company purchased $940,343 of scientific equipment through the agreement with Canadian Integrated Optics International Ltd. of Douglas, Isle of Man (“CIOI”) (Note 4) and $15,040 of scientific equipment through another vendor. The Company began amortizing the equipment on October 1, 2011 with an estimated useful life of 5 years and has recorded $47,769 in accumulated amortization as at March 31, 2012.

4.	TECHNOLOGY PURCHASE AGREEMENT

	On April 15, 2008, the Company entered into a License agreement (“The Agreement”) with CIOI, to manufacture and market CIOI’s patent pending solar technology based on a new approach for the generation of solar power. On May 7, 2008 the Agreement was subsequently amended and executed by CIOI and on May 16, 2008 the agreement was executed by the Company and is subject to certain terms and conditions. The purchase price paid in cash for the License was $100,000. These costs were later written-off and charged to operations in fiscal 2008.

	In December 2009, the Company executed an agreement with CIOI to purchase technology and associated provisional patents related to the development of certain solar technology in exchange for 71,500,000 common stock of the Company valued at $1,611,559. The two provisional patents and the pending patent application have an estimated useful life of 21 years. The Company has recorded $172,667 in accumulated amortization as at March 31, 2012.

4.	TECHNOLOGY PURCHASE AGREEMENT
	On April 15, 2008, the Company entered into a License agreement (“The Agreement”) with CIOI, to manufacture and market CIOI’s patent pending solar technology based on a new approach for the generation of solar power. On May 7, 2008 the Agreement was subsequently amended and executed by CIOI and on May 16, 2008 the agreement was executed by the Company and is subject to certain terms and conditions. The purchase price paid in cash for the License was $100,000. These costs were later written-off and charged to operations in fiscal 2008.
	In December 2009, the Company executed an agreement with CIOI to purchase technology and associated provisional patents related to the development of certain solar technology in exchange for 71,500,000 common stock of the Company valued at $1,611,559. The two provisional patents and the pending patent application have an estimated useful life of 21 years. The Company has recorded $153,482 in accumulated amortization as at December 31, 2011.

F-8

8QUANTUM SOLAR POWER CORP. (A Development Stage Company) NOTES TO THE FINANCIAL STATEMENTS (Expressed in United States Dollars) Unaudited MARCH 31, 2012

QUANTUM SOLAR POWER CORP. (A Development Stage Company) NOTES TO THE FINANCIAL STATEMENTS (Expressed in United States Dollars) Unaudited DECEMBER 31, 2011

5.	LOAN PAYABLE

	During the quarter ended March 31, 2012, the Company entered into a loan agreement in the amount of EUR 9,980 (US$12,909). The loan is non-interest bearing, unsecured and has no specific terms of repayment.

6.	STOCKHOLDERS’ EQUITY

	On May 7, 2004, the Company issued 69,200,000 of its common shares for cash of $86,500.

	On June 30, 2004, the Company issued 48,000,000 of its common shares for cash of $6,000.

	The Company completed a private placement on April 15, 2008 to issue 100,000 common shares at a price of $2.00 per share. The net proceeds received were $200,000. No commissions were paid and no registration rights have been granted.

	On December 16, 2009, the Company entered into an agreement with CIOI as amended, wherein the Company agreed to purchase all of their solar cell technology in consideration of 71,500,000 restricted shares of common stock. As part of the transaction, the Company’s President returned and cancelled 47,000,000 shares of the Company’s common stock.

	In April 2010, 50,000 shares valued at $100,000 were issued as compensation for a performance bonus to a director of the Company.

	In April 2010, the Company completed a private placement to issue 280,000 shares at a price of $2.00 per share. The net proceeds received were $560,000.

	During the year ended June 30, 2011, 10,000 shares were issued through a private placement at $1 per share for proceeds of $10,000. A total of 161,500 shares valued at $161,500 were issued as finders’ fees.

	During the year ended June 30, 2011, 274,060 shares were issued through a private placement at a stock price of $1.00 per share; net proceeds were $274,060 of which $76,500 was received during the year ended June 30, 2010. The Board granted 372,000 warrants to those shareholders who had purchased shares at $2.00 per share to allow them to purchase a matching number of shares at $0.01 in order to make them whole as a result of the change in the share sale price.

	During the year ended June 30, 2011, 62,632 shares were issued for consulting services and 50,000 for a management performance bonus relating to services performed.

	During the year ended June 30, 2011, a further 3,765,500 shares were issued through two private placements and a total of $228,737 in share issue costs were paid. In addition, 372,000 shares were issued when the warrants described above were exercised. Net proceeds were $3,769,220, all of which were received during the year. A refund of $16,000 was paid to several investors who previously paid for 8,000 shares and were found not to be qualified.

	During the year ended June 30, 2011, 60,000 shares valued at $60,000 for consulting services and 50,000 shares valued at $50,000 for a management performance bonus relating to services provided were issued.

	During the quarter ended December 31, 2011, 1,974,000 shares were issued through a private placement at a stock price of $1.00 per share for net proceeds of $1,974,000. The Company paid $560 of share issuance costs in relation to the private placement. A further 400,000 shares were issued through a private placement at a stock price of $0.25 per share for net proceeds of $100,000.

5.	STOCKHOLDERS’ EQUITY
	On May 7, 2004, the Company issued 69,200,000 of its common shares for cash of $86,500.
	On June 30, 2004, the Company issued 48,000,000 of its common shares for cash of $6,000.
	The Company has completed a private placement on April 15, 2008 to issue 100,000 common shares at a price of $2.00 per share. The net proceeds received were $200,000. No commissions were paid and no registration rights have been granted.
	On December 16, 2009, the Company entered into an agreement with CIOI as amended, wherein the Company agreed to purchase all of their solar cell technology in consideration of 71,500,000 restricted shares of common stock. As part the transaction, the Company’s President returned and cancelled 47,000,000 shares of the Company’s common stock.
	In April 2010, 50,000 shares valued at $100,000 were issued as compensation for a performance bonus to a director of the Company.
	In April 2010, the Company completed a private placement to issue 280,000 shares at a price of $2.00 per share. The net proceeds received were $560,000.
	In February 2011, 10,000 shares were issued through a private placement at $1 per share for proceeds of $10,000. A total of 161,500 shares valued at $161,500 were issued as finders’ fees.
	During the year ended June 30, 2011, 274,060 shares were issued through a private placement at a stock price of $1.00 per share; net proceeds were $274,060 of which $76,500 was received during the year ended June 30, 2010. The Board granted 372,000 warrants to those shareholders who had purchased shares at $2.00 per share to allow them to purchase a matching number of shares at $0.01 in order to make them whole as a result of the change in the share sale price.
	During the year ended June 30, 2011, 62,632 shares were issued for consulting services and 50,000 for a management performance bonus relating to services performed.
	During the year ended June 30, 2011, a further 3,765,500 shares were issued through two private placements and a total of $228,737 in share issue costs were paid. In addition, 372,000 shares were issued when the warrants described above were exercised. Net proceeds were $3,769,220, all of which were received during the year. A refund of $16,000 was paid to several investors who previously paid for 8,000 shares and were found not to be qualified.
	During the year ended June 30, 2011, 60,000 shares valued at $60,000 for consulting services and 50,000 shares valued at $50,000 for a management performance bonus relating to services provided were issued during the year.
	During the period ended December 31, 2011, 1,974,000 shares were issued through a private placement at a stock price of $1.00 per share for net proceeds of $1,974,000. The Company paid $560 of share issuance costs in relation to the private placement. A further 400,000 shares were issued through a private placement at a stock price of $0.25 per share for net proceeds of $100,000.
	During the period ended December 31, 2011, 90,000 shares valued at $88,700 were issued in accordance to the terms of a consulting contract entered into during fiscal 2010, of which $60,000 was previously recorded as commitment to issue shares as at June 30, 2011.
	During the period ended December 31, 2011, 250,000 shares valued at $62,500 were issued for consulting services based on a consulting agreement entered on December 1, 2011.

F-9

9QUANTUM SOLAR POWER CORP. (A Development Stage Company) NOTES TO THE FINANCIAL STATEMENTS (Expressed in United States Dollars) Unaudited MARCH 31, 2012

QUANTUM SOLAR POWER CORP. (A Development Stage Company) NOTES TO THE FINANCIAL STATEMENTS (Expressed in United States Dollars) Unaudited DECEMBER 31, 2011

6.	STOCKHOLDERS’ EQUITY (cont’d)

	During the quarter ended December 31, 2011, 90,000 shares valued at $88,700 were issued in accordance to the terms of a consulting contract entered into during fiscal 2010, of which $60,000 was previously recorded as commitment to issue shares at June 30, 2011.

	During the quarter ended December 31, 2011, 250,000 shares valued at $62,500 were issued for consulting services based on a consulting agreement entered on December 1, 2011.

	During the quarter ended March 31, 2012, 288,050 units were issued through a private placement at a stock price of $0.20 per unit for net proceeds of $57,610. Each unit consists of one share and one share purchase warrant. Each warrant entitles the subscribers to purchase an additional common share at an exercise price of $0.25 per share, expiring on March 25, 2013. The Company paid $430 of share issuance costs in relation to the private placement.

	During the quarter ended March 31, 2012, 250,000 shares valued at $27,500 were issued for consulting services based on a consulting agreement entered on December 1, 2011.

	Commitment to issue shares

	According to the terms of a contract entered into during the year ended June 30, 2010, the Company agreed to issue 10,000 shares per month to a consultant. As at March 31, 2012, the Company has a commitment to issue 60,000 common shares at a value of $18,700.

	Subscriptions received in advance

	During the quarter ended March 31, 2012, the Board of Directors of the Company approved an offering of up to 5,000,000 units at a price of $0.20 per unit of which $195,000 was received. Each unit will consist of one share and one share purchase warrant, with each warrant entitling the subscriber to purchase an additional share for a three month period following the date of issuance at an exercise price of $0.25.

	Stock options and warrants

	On February 28, 2011, the Company implemented a formal stock option plan under which it is authorized to grant options to directors, officers, employees and eligible consultants of the Company enabling them to acquire up to 14,650,000 shares of the Company. Under the plan, the exercise price of each option equals the market price of the Company’s stock, less applicable discount, as calculated on the date of grant. The options can be granted for a maximum term of 5 years. Vesting provisions are set at the discretion of the Company. The Plan has not been approved by the Company’s stockholders.

5.	STOCKHOLDERS’ EQUITY (cont’d)
	Commitment to issue shares
	According to the terms of a contract entered into during the year ended June 30, 2010, the Company agreed to issue 10,000 shares per month to a consultant. As at December 31, 2011, the Company has a commitment to issue 30,000 common shares at a value of $15,500.
	Stock options and warrants
	On February 28, 2011, the Company implemented a formal stock option plan under which it is authorized to grant options to directors, officers, employees and eligible consultants of the Company enabling them to acquire up to 14,650,000 shares of the Company. Under the plan, the exercise price of each option equals the market price of the Company’s stock, less applicable discount, as calculated on the date of grant. The options can be granted for a maximum term of 5 years. Vesting provisions are set at the discretion of the Company. The Plan has not been approved by the Company’s stockholders.
	Stock options and warrants are summarized as follows:

F-10

	Warrants					Stock Options
				Weighted					Weighted
				Average		Number of			Average
	Number of			Exercise		Stock			Exercise
	Warrants			Price		Options			Price
Balance outstanding at April 14, 2004 (inception) to June 30, 2009	-		$	-		-		$	-
Granted	-			-		500,000			0.50
Balance outstanding at June 30, 2010	-			-		500,000			0.50
Granted	372,000			0.01		-			-
Granted	50,000			1.90		-			-
Exercised	(372,000	)		(0.01	)	-			-
Granted	-			-		1,300,000			1.50
Balance outstanding at June 30, 2011	50,000			1.90		1,800,000			1.22
Expired/cancelled	(1,875	)		(1.00	)	(791,668	)		(0.94	)
Granted	1,875			1.00		1,666,668			1.00
Balance outstanding at December 31, 2011	50,000		$	1.90		2,675,000		$	1.17
Exercisable at December 31, 2011	50,000		$	1.90		1,627,082		$	1.31

QUANTUM SOLAR POWER CORP.

(A Development Stage Company)

NOTES TO THE FINANCIAL STATEMENTS

(Expressed in United States Dollars)

Unaudited

MARCH 31, 2012

106. STOCKHOLDERS’ EQUITY (cont’d) Stock options and warrants (cont’d) Stock options and warrants are summarized as follows:

QUANTUM SOLAR POWER CORP. (A Development Stage Company) NOTES TO THE FINANCIAL STATEMENTS (Expressed in United States Dollars) Unaudited DECEMBER 31, 2011

	Warrants					Stock Options
				Weighted					Weighted
				Average		Number of			Average
	Number of			Exercise		Stock			Exercise
	Warrants			Price		Options			Price

Balance outstanding at April 14, 2004 (inception) to June 30, 2009	-		$	-		-		$	-

Granted	-			-		500,000			0.50

Balance outstanding at June 30, 2010	-			-		500,000			0.50

Granted	372,000			0.01		-			-
Granted	50,000			1.90		-			-
Exercised	(372,000	)		(0.01	)	-			-
Granted	-			-		1,300,000			1.50

Balance outstanding at June 30, 2011	50,000			1.90		1,800,000			1.22

Expired/cancelled	(50,000	)		(1.90	)	(2,466,668	)		(1.14	)
Granted	288,050			0.25		1,666,668			1.00

Balance outstanding at March 31, 2012	288,050		$	0.25		1,000,000		$	0.35

Exercisable at March 31, 2012	288,050		$	0.25		875,000		$	0.35

5.The ~~STOCKHOLDERS’~~following ~~EQUITY~~table ~~(cont’d)~~summarizes information about stock options and warrants outstanding at March 31, 2012:

Stock options and warrants (cont’d)

	Number outstanding		Exercise Price	Expiry Date
Options	500,000	$	0.50	January 1, 2013
	500,000	$	0.20	March 6, 2016
Warrants	288,050	$	0.25	March 25, 2013

~~The~~F-11 ~~following table summarizes information about stock options and warrants outstanding at December 31, 2011:~~

	Number outstanding		Exercise Price	Expiry Date
Options	250,000	$	1.60	February 28, 2012
	500,000	$	0.50	January 1, 2013
	25,000	$	1.10	June 19, 2014
	1,000,000	$	1.00	August 31, 2014
	900,000	$	1.60	March 16, 2016
Warrants	50,000	$	1.90	January 14, 2012*
*Expired subsequent to December 31, 2011

QUANTUM SOLAR POWER CORP.

(A Development Stage Company)

NOTES TO THE FINANCIAL STATEMENTS

(Expressed in United States Dollars)

Unaudited

MARCH 31, 2012

Stock-based compensation

6.	STOCKHOLDERS’ EQUITY (cont’d)

	Stock-based compensation

	During the nine months ended March 31, 2012, the Company granted 1,666,668 options (2011 – 1,250,000) to employees and consultants of the Company, with a weighted average fair value of $0.86 (2011 - $0.75) per option, which are being recognized over the vesting periods of the options. The Company cancelled 1,666,668 of these options during the nine month period ended March 31, 2012.

	Total stock-based compensation for the nine months ended March 31, 2012 was $994,139 (2011 - $1,158,627).

	The Company used the Black-Scholes option pricing model to determine the fair value of options granted.

	The fair value of stock options has been estimated with the following assumptions:

During the six months ended December 31, 2011, the Company granted 1,666,668 options (2010 – 100,000) to employees and consultants of the Company, with a weighted average fair value of $0.86 (2010 - $0.75) per option, which are being recognized over the vesting periods of the options. The Company cancelled 666,668 of these options during the period ended December 31, 2011.

	Period ended	Year ended	Year ended
	March 31,	June 31,	June 31,
	2012	2011	2010

Dividend yield	0.00%	0.00%	0.00%
Expected volatility	171.49%	143.30%	239%
Risk free interest rate	1.32%	2.62%	2.03%
Expected life of options	3.00 years	3.85 years	2.00 years

~~Total~~7. ~~stock-based~~SUPPLEMENTAL ~~compensation~~DISCLOSURE ~~for~~WITH ~~the six~~RESPECT ~~months~~TO ~~ended~~CASH ~~December 31, 2011 was $903,322 (2010 - $234,778).~~ FLOWS

The Company used the Black-Scholes option pricing model to determine the fair value of options granted.

For the period

For the nine

from April 14,

months ended

2004 (inception)

March 31, 2012

March 31, 2011

March 31, 2010

to March 31, 2012

Cash paid for interest

Cash paid for income taxes

~~The~~Significant ~~fair~~non-cash ~~value~~transaction offor the ~~stock~~nine ~~options~~months ~~has~~ended ~~been~~March ~~estimated~~31, ~~with~~2012 ~~the following assumptions~~included:

	2011	2010	2009
Dividend yield	0.00%	0.00%	-
Expected volatility	171.49%	229%	-
Risk free interest rate	1.32%	1.93%	-
Expected life of options	3.00 years	1.83 years	-

Reclassifying $60,000 from commitment to issue shares to common stock and additional paid in capital, for the issuance of 60,000 common shares.

6.Significant ~~SUPPLEMENTAL~~non-cash ~~DISCLOSURE~~transactions ~~WITH~~for the ~~RESPECT~~nine TOmonths ~~CASH~~ended ~~FLOWS~~March 31, 2011 include the Company:

								For the period
		For the six		For the six		For the six		from April 14,
		months ended		months ended		months ended		2004(inception)
		December 31,		December 31,		December 31,		to December 31,
		2011		2010		2009		2011
Cash paid for interest	$	-	$	-	$	-	$	-
Cash paid for income taxes	$	-	$	-	$	-	$	-

	a)	Reclassifying $112,632 from commitment to issue shares to common stock and additional paid in capital, for the issuance of 112,632 common shares.
	b)	Granting 372,000 warrants for a fair value of $372,000 to various shareholders as a dividend; and
	c)	Issuing 161,500 common shares at a value of $161,500 as finder’s fees.

11F-12

QUANTUM SOLAR POWER CORP. (A Development Stage Company) NOTES TO THE FINANCIAL STATEMENTS (Expressed in United States Dollars) Unaudited ~~DECEMBER~~MARCH 31, ~~2011~~2012

6. SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS (cont’d) Significant non-cash transaction for the six months ended December 31, 2011 included:

8.	RELATED PARTY TRANSACTIONS

	During the nine months ended March 31, 2012, the Company:

	a)	paid or accrued $111,302 (2011 - $Nil) for management fees to a director and officer of the Company, of which $32,872 (2011 - $Nil) is included in accounts payable and accrued liabilities as at March 31, 2012;

	b)	paid or accrued $1,188,988 (2011 - $1,885,314) in research and development costs and $940,343 (2011 - $Nil) in scientific equipment with CIOI, a former significant shareholder, of which $515,730 (2011 – $224,471) is included in accounts payable and accrued liabilities as at March 31, 2012.

	These transactions are in the normal course of operations and are measured at the exchange amount, which is the amount of consideration established and agreed to by the parties.

9.	SUBSEQUENT EVENT

	Subsequent to March 31, 2012, the Company:

	a)	In April 2012, the Company granted stock options to officers and directors of the Company to purchase 5,950,000 common shares, exercisable at an exercise price of $0.20 per share, expiring on April 12, 2015.

	b)	Entered into a loan agreement for the principal amount of CAD$475,000 (the “Loan”).

		The Loan is to be advanced to the Company, subject to certain conditions, according to the following schedule: (i) CAD$175,000 to be advanced on April 25, 2012 (held in escrow); (ii) CAD$150,000 to be advanced on May 25, 2012; and (iii) CAD$150,000 to be advanced on June 25, 2012. The loan accrues interest at 9% per annum from the date of the first advance and matures on April 23, 2015. The loan will be secured by certain assets. At any time lender may elect to receive shares in exchange for any portion of the principal or interest outstanding on the Loan on the basis of one share for each USD $0.02 of indebtedness converted. In the event of a default, the lender may elect to receive shares on the basis of one share for each USD $0.01 of indebtedness converted. The funds and executed documents are held in escrow subject to reaching a new research agreement and can be rescinded at any time. There are no assurances that a new research agreement will be reached or that the Company will receive and funds from the Loan.

	a)	Issuing 90,000 common shares at a value of $88,700 from commitment to issue shares to share capital and additional paid in capital.
	b)	Committing to issue 30,000 common shares at a value of $15,500 recorded as consulting fees.

F-13

Significant non-cash transactions for the six months ended December 31, 2010 include the Company:

a) Issuing 112,632 common shares at a value of $112,632 from commitment to issue shares to share capital and additional paid in capital; b) Granting 372,000 warrants for a fair value of $372,000 to various shareholders as a dividend; and c) Committing to issue 242,956 common shares at a value of $242,956 as finder’s fees.

7. RELATED PARTY TRANSACTIONS During the six months ended December 31, 2011, the Company:

	a)	paid or accrued $91,867 (2010 - $Nil) for management fees to a director and officer of the Company, of which $11,581 (2010 - $Nil) is included in accounts payable and accrued liabilities as at December 31, 2011;
	b)	paid or accrued $837,045 (2010 - $868,924) in research and development costs and $940,343 (2010 - $Nil) in scientific equipment with CIOI, a former significant shareholder, of which $348,388 (2010 – $212,814) is included in accounts payable and accrued liabilities as at December 31, 2011.

	These transactions are in the normal course of operations and are measured at the exchange amount, which is the amount of consideration established and agreed to by the parties.
8.	SUBSEQUENT EVENT
	Subsequent to December 31, 2011, the Board of Directors of the Company approved an offering of up to 5,000,000 units at a price of $0.20 per unit of which $170,000 was received subsequent to December 31, 2011. Each unit will consist of one share and one share purchase warrant, with each warrant entitling the subscriber to purchase an additional share for a three month period following the date of issuance at an exercise price of $0.25.

ITEM 2.

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

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

Certain statements contained in this Quarterly Report constitute "forward-looking statements". These statements, identified by words such as “plan,” "anticipate," "believe," "estimate," "should," "expect" and similar expressions, include our expectations and objectives regarding our future financial position, operating results and business strategy. These statements reflect the current views of management with respect to future events and are subject to risks, uncertainties and other factors that may cause our actual results, performance or achievements, or industry results, to be materially different from those described in the forward-looking statements. Such risks and uncertainties include those set forth under this caption "Management's Discussion and Analysis of Financial Condition and Results of Operation" and elsewhere in this Quarterly Report. We intend to discuss in our Quarterly and Annual Reports any events and circumstances that occurred during the period to which such document relates that are reasonably likely to cause actual events or circumstances to differ materially from those disclosed in this Quarterly Report. We advise you to carefully review the reports and documents we file from time to time with the United States Securities and Exchange Commission (the “SEC”).

OVERVIEW

We were incorporated on April 14, 2004 under the laws of the State of Nevada. Our principal executive offices are located at Suite 300, 1055 West Hastings Street, Vancouver, BC, Canada V6E 2E9.

We are currently engaged in the research, development and marketing of next generation solar power generation devices utilizing our patent pending technology (the “Next Generation Device™ or NGD™ Technology”) for photovoltaic devices that do not use silicon or other, rare earth elements. Once we have completed development, we expect to derive substantially all revenues from royalty based licensing arrangements.

The NGD™ Technology, which is covered by two provisional U.S. patents and one Patent Cooperation Treaty Application, differs from conventional solar technology as it does not require expensive silicon based absorber components or rare earth elements. Our researchers at Simon Fraser University in British Columbia, Canada have developed and built a proof of concept prototype of a next generation device utilizing the NGD™ Technology (see “Technology Acquisition” and “NGDTM Technology” below).

During the ~~three~~nine months ended ~~December~~March 31, ~~2011~~2012, we invested in $955,383 in technological equipment and ~~expended~~ $~~454~~1,~~468~~234,208 onin research and development for our NGDTM Technology.

The equipment we purchased consisted of the following:

	(1)	Two PVD75 thin-film deposition tools: These tools are used for metal and dielectric depositions via evaporation and sputtering. They complement the existing tools that we have access to at the research facility at Simon Fraser University. These tools have allowed us to increase the number of thin film deposition processes, which in turn enable improvements in process repeatability, thin film property enhancements, and device fabrication throughput.

	(2)	FEI NanoSEM 430 scanning electron microscope: This microscope allows us unrestricted access to an ultra-high resolution microscope with elemental analysis capabilities. It further has special capabilities for imaging insulating samples, which is critical for work on glass substrates. This microscope is used to characterize all the films and devices produced by the thin film deposition tools, and allows us to run more efficient device optimization cycles.

We are a development stage company. We have not earned any revenue to date nor have we entered into any licensing agreements to date. We do not anticipate earning revenue until we have completed the development and testing of our NGD™ Technology. We are presently in the development stage of our business and we can provide no assurance that we will be able to complete commercial development or successfully sell or license products incorporating our solar power generation devices, once development and testing is complete. We have limited operations. We conduct all of our research and development on a contractual basis with Simon Fraser University. We have relied on the sale of our securities and loans or capital infusions from our officers and directors to fund our operations to date.

successfully sell or license products incorporating our solar power generation devices, once development and testing is complete. We have limited operations. We conduct all of our research and development on a contractual basis with Simon Fraser University. We have relied on the sale of our securities and loans or capital infusions from our officers and directors to fund our operations to date.

RECENT CORPORATE DEVELOPMENTS

Since the filing of our Quarterly Report for the fiscal quarter ended ~~September~~December 3031, 2011 with the SEC, we experienced the following significant corporate developments:

(1)	On November 22, 2011, we issued 30,000 shares of our common stock to a consultant, pursuant to the terms of a business consulting agreement between the Company and the consultant dated April 19, 2010. These shares were issued in reliance on Regulation S of the Securities Act. The consultant represented that he was not a “U.S. Person” as defined under Regulation S of the Securities Act and not acquiring the shares for the account or benefit of a U.S. Person.
(2)	On December 1, 2011, we entered into a consulting agreement (the “Mirador Agreement”), with Mirador Consulting LLC, (“Mirador”). Under the terms of the Mirador Agreement, Mirador agreed to provide us with consulting services (the “Services”). The Mirador Agreement is effective December 1, 2011 and is for a term of 6 months. In consideration of the Services, we issued 250,000 shares of our common stock (the “Shares”) to Mirador on execution and agreed to issue 250,000 shares after the three month anniversary of the Mirador Agreement unless the Mirador Agreement has been terminated prior to that date. The Corporation may cancel the Mirador Agreement at any time, without cause, by providing 30 days notice. Mirador represented that it is an “Accredited Investor” as defined under Regulation D of the Securities Act of 1933 (the “Securities Act”).
(3)	On December 1, 2011, we entered into a consulting agreement (the “PCC Agreement”), with Pristine Capital Corp. (“PCC”). Effective December 31, 2011, we terminated the PCC Agreement. The PCC Agreement was effective December 1, 2011 and was for a term of 3 months. Under the terms of the PCC Agreement, PCC agreed to provide us with investor relations consulting services. In consideration of PCC’s consulting services, we were required to pay $100,000 CDN including HST to PCC at the beginning of each month that the PCC Agreement was in effect. We decided to cancel the PCC Agreement in order to focus our resources on developing our NGDTM Technology. We were permitted to terminate the PCC Agreement without cause and did not incur any early termination penalties.
(4)	On December 1, 2011, our Board of Directors approved a private placement offering of up to 400,000 units (each a “Unit”) at a price of $0.25 US per Unit pursuant to Regulation S of the United States Securities Act. Each Unit consisted of one share of our common stock and one share purchase warrant, with each warrant entitling the subscriber to purchase an additional share of our common stock for a one year period following the date of issuance at an exercise price equal to $0.30 US per share. On December 7, 2011, we issued 400,000 Units to one subscriber. The subscriber represented that it was not a "U.S. Person" as defined under Regulation S of the Act and not acquiring the shares for the account or benefit of a U.S. Person.
(5)	On January 13, 2012, our Board of Directors approved an offering (the “Foreign Units Offering”) of up to 5,000,000 units (each a “Unit”) at a price of $0.20 US per Unit pursuant to Regulation S of the Securities Act. Each Unit will consist of one share of our common stock and one share purchase warrant, with each warrant entitling the subscriber to purchase an additional share of our common stock for a three month period following the date of issuance at an exercise price equal to $0.25 US per share. We have received proceeds of $170,000 under the Foreign Units Offering but we have not issued any securities under this offering to date. Proceeds from the Foreign Units Offering will be used to for the development and marketing of our NGDTM Technology and for general corporate purposes. There is no assurance that the Foreign Units Offering or any part of it will be completed.

Changes to Executive Officers and Directors

~~TECHNOLOGY~~We ~~ACQUISITION~~adjusted our operational strategy to increase research and development activities and decrease administrative expenses where possible.

WeOn ~~acquired~~February ~~the~~9, ~~NGDTM~~2012, ~~Technology~~Stephen onPleging ~~December~~resigned 16as our President, ~~2009~~Chief byExecutive anOfficer, ~~agreement~~Chairman (and as a director in order to assist us in cutting non-research costs. Mr. Pleging remains a strong believer in our technology and is prepared to be involved as a consultant, particularly once the development ~~“Technology~~of ~~Acquisition~~our NGDTM solar device reaches the appropriate stage. There were no disagreements between Mr. Pleging and us regarding any matter relating to our operations, policies or practices.

On February 9, 2012, Stella Guo resigned as our Vice President of Corporate Development and as a director in order to assist us in our efforts to reduce administrative costs to increase its research and development activities. Ms. Guo determined that her appointment as a director and officer was premature, as her services cannot be effectively utilized while the NGD^TMtechnology is not yet at the stage where we should consider expanding its operations into Asia. When the NGD^TMTechnology is ready for licensing and commercial deployment, Ms. Guo will discuss with management and the Board of Directors whether they would like her to provide us with consulting services to assist us in strategic planning, developing strategic partnerships and facilitating agreements with Asian manufacturing partners. There were no disagreements between Ms. Guo and us regarding any matter relating to our operations, policies or practices.

On February 9, 2012, we appointed Andras Pattantyus-Abraham, as our President and Chief Executive Officer. Mr. Pattantyus-Abraham is our Chief Technology Officer and a director.

Issuance under Foreign Private Placement

On February 27, 2012, we issued 288,050 units (each a “Unit”) at a price of $0.20 per unit pursuant to Regulation S of the United States Securities Act of 1933, as amended (the “Act”). Each Unit consists of one share of our common stock and one share purchase warrant (each a “Warrant”). Each Warrant entitles the holder to purchase an additional share of our common stock for a three month period following the date of the issuance at an exercise price equal to $0.25 per share.

On March 26, 2012, we extended the expiry date of the Warrants from May 27, 2012 to March 25, 2013.

Issuance to Consultant

On March 27, 2012, we issued 250,000 shares of our common stock to Mirador Consulting LLC (“Mirador”) pursuant to the terms of a consulting agreement. Mirador represented that it is an “Accredited Investor” as defined under Regulation D of the Act.

~~Agreement”)~~Grant ~~with Canadian Integrated Optics (IOM) Limited, (“CIO”). In consideration~~ of ~~the~~Non-Qualified ~~NGD™~~Stock Technology, we issued 71,500,000 shares of our common stock to CIO (of which CIO transferred over 99% pursuant to the terms of a takeover bid, under Canadian Securities Laws) and Desmond Ross, our former director and executive officer, returned 47,000,000 shares to the treasury. Under the Technology Acquisition Agreement, we also agreed to pay CIO, or such other parties designated by CIO, for ongoing development and research costs under CIO’s existing research agreement (the “CIO Research Agreement) with Simon Fraser University (“SFU”). The initial term of the CIO Research Agreement was until July 30, 2010. Options

~~Subsequent~~On toApril ~~entering into the Technology Acquisition Agreement~~12, ~~CIO entered into an amendment agreement to the CIO Research Agreement~~2012, ~~whereby~~we ~~SFU~~granted ~~agreed~~options ~~to extend~~ (the ~~term~~“Options”) ~~until December 31, 2010 and in~~to ~~consideration~~purchase ~~of which we paid $310~~5,~~076 CDN. On December 23~~950,000 ~~2010,~~shares ~~CIO~~of ~~entered into~~our ~~another~~common ~~amendment~~stock ~~agreement~~at ~~dated~~a ~~January~~price ~~1, 2011, whereby SFU agreed to further extend the term until July 31, 2011 and in consideration~~ of ~~which we will pay~~ $~~476,482 CDN plus expenses, during the term~~0.20 Onper ~~July~~share ~~28, 2011, CIO~~to ~~entered~~consultants ~~into~~and ~~another~~directors ~~amendment~~eligible ~~agreement~~under ~~dated~~our ~~July 2,~~ 2011, ~~whereby~~Stock ~~SFU~~Incentive ~~agreed to further extend the term until December 31, 2011 and in consideration of which we will pay $599,593 CDN plus expenses, during the term~~Plan. ~~CIO entered into~~The ~~another~~Options ~~amendment~~expire ~~agreement~~on ~~dated~~April ~~January 2~~12, ~~2012, whereby SFU agreed to further extend the term until June 29, 2012 and in consideration of which we will pay $594,401 CDN plus expenses, during the term~~2015.

~~During~~The ~~the~~Options ~~six~~granted ~~months~~to ~~ended~~our ~~December~~directors ~~31,~~were ~~2011,~~as ~~we incurred $880,639 USD under the CIO Research Agreement.~~ follows:

Name	Number of Options	Date Exercisable	Expiration Date
Andras Pattantyus Abraham	750,002 166,666 166,666 166,666	04/12/2012 06/30/2012 09/30/2012 12/31/2012	04/12/2015 04/12/2015 04/12/2015 04/12/2015
Daryl Ehrmantraut	937,502 104,166 104,166 104,166	04/12/2012 06/30/2012 09/30/2012 12/31/2012	04/12/2015 04/12/2015 04/12/2015 04/12/2015
Graham Hughes	250,000	4/12/2012	04/12/2015

Escrowed Loan Agreement

On April 23, 2012, we entered into a loan agreement (the “Loan Agreement”) with Foundation Freehold Ltd. (“Foundation”) for the principal amount of CDN $475,000 (the “Loan”). Our lawyers are holding the funds and executed documents in escrow and performance by all parties is subject to CIO-BC (as defined below) reaching a new agreement with SFU (as defined below). See “Technology Acquisition” below.

The Loan is to be advanced to us, subject to certain conditions, according to the following schedule:

	(i)	$175,000 to be advanced on April 25, 2012 (which has been advanced to our lawyers);
	(ii)	$150,000 to be advanced on May 25, 2012; and
	(iii)	$150,000 to be advanced on June 25, 2012.

The loans are to be evidenced by promissory notes to be executed by us in favor of Foundation. We will be required to pay 9% annual interest on the Loan from the day of the first advance. The Loan is due on April 23, 2015. To secure the repayment of the Loan, we have agreed to provide a guarantee by 0935493 B.C. Ltd, our wholly owned subsidiary to be secured by a PVD 75 Deposition tool and Nova NanoSEM 430 Ultra-high resolution FESEM microscope.

At any time, Foundation may elect to receive shares of our common stock in exchange for any portion of the principal or interest outstanding on the Loan on the basis of one share for each USD $0.02 of indebtedness converted. In the event of a default, Foundation my elect to receive shares on the basis of one share for each USD $0.01 of indebtedness converted. Foundation represented that it was not a “US Person” as that term is defined by Regulation S of the Act.

There are no assurances that a new agreement with SFU will be reached, that SFU will allow us to continue to use their facilities to conduct our research and development activities or that we will receive any funds the Loan agreement.

TECHNOLOGY ACQUISITION

We acquired the NGD^TMTechnology on December 16, 2009 by an agreement (the “Technology Acquisition Agreement”) with Canadian Integrated Optics (IOM) Limited, (“CIO”). In consideration of the NGD™ Technology, we issued 71,500,000 shares of our common stock to CIO (of which CIO transferred over 99% pursuant to the terms of a takeover bid, under Canadian Securities Laws) and Desmond Ross, our former director and executive officer, returned 47,000,000 shares to the treasury. Under the Technology Acquisition Agreement, we also agreed to pay CIO, or such other parties designated by CIO, including Canadian Integrated Optics (BC) Ltd. (“CIO-BC”), for ongoing development and research costs under CIO-BC’s existing research agreement (the “CIO-BC Research Agreement) with Simon Fraser University (“SFU”). The initial term of the CIO-BC Research Agreement was until July 30, 2010.

Subsequent to entering into the Technology Acquisition Agreement, CIO-BC entered into an amendment agreement to the CIO-BC Research Agreement, whereby SFU agreed to extend the term until December 31, 2010. On December 23, 2010, CIO-BC entered into another amendment agreement dated January 1, 2011, whereby SFU agreed to further extend the term until July 31, 2011. On July 28, 2011, CIO-BC entered into another amendment agreement dated July 2, 2011, whereby SFU agreed to further extend the term until December 31, 2011. CIO-BC entered into another amendment agreement dated January 2, 2012, whereby SFU agreed to further extend the term until June 29, 2012 and in consideration of which we will pay $594,401 CDN plus expenses, during the term.

We have not had enough cash to make our payments to CIO-BC for ongoing research and development costs. As a result, CIO-BC has fallen behind with its payments under the CIO-BC Research Agreement and the CIO-BC Research Agreement has been suspended by SFU. We are now working with CIO-BC to negotiate a new agreement with SFU. We have entered into the Loan Agreement, which will allow us to continue our research and development activities. However, the Loan Agreement and the first advance thereunder are held in escrow contingent on SFU allowing us to use their facilities to continue our research and development activities. There are no assurances that a new agreement with SFU will be reached, that SFU will allow us to continue to use their facilities to conduct our research and development activities or that we will be advanced any funds under the Loan agreement.

NGD™ TECHNOLOGY

Our NGD™ Technology is a patent pending, technology and proof of concept prototype for producing solar power without the necessity of utilizing expensive silicon based absorber components or other rare earth elements.

Solar cells based on the NGD™ Technology can reach a regime of cost and efficiency not obtainable with conventional solar cells. As a result, we believe our NGD™ Technology has the potential to enable the manufacture of solar cells at significantly less cost per Watt than current producers.

Thin Film solar cell technologies have proven inexpensive to manufacture but are at present only capable of efficiencies in the 10% power conversion efficient (“PCE”) range. Crystalline silicon solar cells are in the 15% to 20% PCE range but are very expensive to manufacture due to the cost of silicon processing. The reason for both these shortfalls is directly linked with the semiconductors used in the fabrication process.

All currently available solar cell technologies rely on a photovoltaic effect in which an incoming solar photon knocks loose a negative charge, leaving behind a positive charge, in a semiconducting material such as silicon. The positive and negative charges are then collected through separate conducting layers to be delivered as current to a load. Defects within the semiconductor layer can affect the power conversion efficiency by reducing the voltage and the current delivered to the load. Elimination of these defects can only occur through expensive purification and processing.

The NGD™ Technology’s principle of operation avoids the detrimental effects of defects within the semiconductor absorber layers by disposing of it altogether, and thus has the potential to simultaneously satisfy the requirements of high power conversion efficiencies and low costs. In addition, by eliminating expensive and exotic materials and manufacturing in a continuous rather than batch or wafer based process, we believe module costs can be reduced well below $1 per Watt-peak (W_p), the nominal price of a solar module widely recognized as the standard of solar commercial enablement.

The market for solar energy has been limited by the costs of panels and by their low efficiencies. Quantum expects that with its low cost, high efficiency NGD™ Technology that the economics of solar power will prove to be superior to alternatives and that new and unforeseen markets will open for solar devices. 6

The market for solar energy has been limited by the costs of panels and by their low efficiencies. Quantum expects that with its low cost, high efficiency NGD™ that the economics of solar power will prove to be superior to alternatives and that new and unforeseen markets will open for solar devices.

The solar panel business has been in a high growth phase over the past years however it is not sustainable since the growth has been fundamentally based on the availability of tax incentives, subsidies and other inducements. The economics of unsubsidized solar power are not attractive except in certain niche applications where choices are limited and the high costs can be justified.

An average crystalline silicon cell solar module has an efficiency of 15%, an average thin film cell solar module has an efficiency of 6%. Thin film manufacturing costs potentially are lower, though. Crystalline silicon cell technology forms about 90% of solar cell demand. The balance comes from thin film technologies. Approximately 45% of the cost of a silicon cell solar module is driven by the cost of the silicon wafer, a further 35% is driven by the materials required to assemble the solar module.

Thin film manufacturer First Solar is reported in some publications to have approximately $6 billion in contracts between 2010 and 2013. If First Solar were to have the opportunity to accept contracts worth $1 trillion and had the manufacturing capability to fulfill these contracts they would still be inhibited and negatively governed by material availability. According to the U.S. Geological Survey, there is enough tellurium available in global reserves to meet only 0.02 Terawatts (“TRW”) of energy provision using existing thin film technology. The same applies to San Jose, California-based Nanosolar’s Indium supply. Both companies current material choices (according to the Andrea Feltrin, Alex Freundlich Report, Photovoltaics and Nanostructures Laboratories, Center for Advanced Materials and Physics Department, University of Houston, Texas) limits these companies forever to sub-Gigawatt energy production (maximum 0.02 TRW per year).

Current Thin Film companies are coming close to competing commercially with coal but the materials they use such as tellurium and indium are very rare and capable of meeting only 0.13% of the worldwide energy demand even if they accessed the entire worldwide reserves of these materials.

PLAN OF OPERATION

The following discussion and analysis summarizes our plan of operation for the next twelve months, our results of operations for the ~~six~~nine month period ended ~~December~~March 31, ~~2011~~2012 and changes in our financial condition ~~from~~ from June 30, 2011. This discussion should be read in conjunction with the Management’s Discussion and Analysis of Financial Condition and Results of Operation included in our Annual Report on Form 10-K for the year ended June 30, 2011 filed with the SEC on September 13, 2011.

If we can obtain sufficient financing we intend to continue the final development of our NGD™ Technology, and identify and engage original equipment manufacturers (“OEM’s”) interested in licensing our technology. We anticipate that the licensing agreements will be between us and OEM’s with the expertise and facilities required to mass manufacture solar cells based on our NGD™ technology and that the OEM’s will distribute the solar cells worldwide using their existing sales and marketing channels and at their expense. The cost of manufacture will be solely the responsibility of the OEM’s. We expect to receive revenue on royalties based on the number of cells produced by the OEM’s. This business model should allow us to maximize capital resources available at startup and through our OEM licensees positively address the demand for high efficiency solar cell devices. This business model should enable us to increase revenues and create brand recognition without the time, capital and risk associated with manufacturing plant construction.

We anticipate that the licensing agreements will be between us and OEM’s with the expertise and facilities required to mass manufacture solar cells based on our NGD™ technology and that the OEM’s will distribute the solar cells worldwide using their existing sales and marketing channels and at their expense. The cost of manufacture will be solely the responsibility of the OEM’s. We expect to receive revenue on royalties based on the number of cells produced by the OEM’s. This business model should allow us to maximize capital resources available at startup and through our OEM licensees positively address the demand for high efficiency solar cell devices. This business model should enable us to increase revenues and create brand recognition without the time, capital and risk associated with manufacturing plant construction.

We are currently reviewing our expenditures and discussing with our consultants ways to reduce our costs so that a greater percentage of funds raised can be expended on our research program.

There is no assurance that we will be able to obtain sufficient financing to proceed with our plan of operation.

RESULTS OF OPERATIONS

Three and Six		Three Months Ended					Percentage			Six Months Ended					Percentage
Three and Nine		Three Months Ended					Percentage			Nine Months Ended					Percentage
Months Summary		~~December~~March 31					Increase /			~~December~~March 31					Increase /
		2011			2010		(Decrease)			2011			2010		(Decrease)
		2012			2011		(Decrease)			2012			2011		(Decrease)
Revenue	$	-		$	-		n/a		$	-		$	-		n/a
Operating Expenses		(1810,~~235,375~~206	)		(1,~~285~~733,~~975~~005	)	(353.~~9)%~~2	)%		(23,~~814~~624,~~253~~459	)		(23,~~117~~850,~~798~~803	)	32(5.9%	)%
Interest Income		25			-		100.0%			25			-		100.0%
Net Loss	$	(810,206	)	$	(1,733,005	)	(53.2	)%	$	(3,624,434	)	$	(3,850,803	)	(5.9	)%
Net Loss	$	(1,235,350	)	$	(1,285,975	)	(3.9)%		$	(2,814,228	)	$	(2,117,798	)	32.9%

For the period from inception on April 14, 2004 to ~~December~~March 31, ~~2011~~2012, we have not earned any operating revenue. We had an accumulated net loss of $910,~~190~~000,~~482~~688 since inception. We incurred total operating expenses of $9,~~084~~894,~~507~~713 since inception.

We have not earned any revenues since inception. We do not anticipate earning revenues until such time as we complete further development of, and enter into licensing agreements for our NGD™ Cell Technology. We are presently in the development stage of our business and we can provide no assurance that we will be able to generate revenues from sales of our product or that the revenues generated will exceed the operating costs of our business.

Operating Expenses

We have incurred operating expenses in the amount of $1810,~~235,375~~206 for the fiscal quarter ended ~~December~~March 31, ~~2011~~2012. Operating expenses for this ~~period~~ period included the following expenses:

Three Months Ended December 31, 2011

Three Months Ended December 31, 2010

Percentage Increase / (Decrease)

Six Months Ended December 31, 2011

Six Months Ended December 31, 2010

Percentage Increase / (Decrease)

Three Months Ended March 31, 2012

Three Months Ended March 31, 2011

Percentage Increase / (Decrease)

Nine Months Ended March 31, 2012

Nine Months Ended March 31, 2011

Percentage Increase / (Decrease)

Amortization of equipment

24,~~314~~313

278

~~8646~~8645.07%

2449,~~743~~056

~~556~~834

~~4350~~5782.20%

Amortization of patents

19,~~186~~185

19,185

0.0%

3857,~~371~~556

0.0%

General and administrative

~~234~~155,~~616~~934

~~168~~50,~~958~~073

38211.94%

~~454~~610,~~340~~274

~~351~~402,~~958~~030

2951.18%

Professional fees

~~348~~166,~~102~~388

~~148~~125,~~775~~230

~~134~~32.09%

~~512~~679,~~838~~226

~~221~~346,~~211~~442

~~131~~96.81%

Research and Development

~~454~~353,~~468~~569

~~868~~614,~~924~~390

(4742.75)%

~~880~~1,~~639~~234,208

1,~~270~~885,~~924~~314

(3034.75 )%

Stock Based Compensation

~~154~~90,~~689~~817

79923,~~855~~849

93(90.72)%

~~903~~994,~~322~~139

~~234~~1,~~778~~158,627

~~284~~(14.82 )%

Total Operating Expenses

1810,~~235,375~~206

1,~~285~~733,~~975~~005

(353.92)%

23,~~814~~624,~~253~~459

23,~~117~~850,~~798~~803

32(5.9 )%

Our operating expenses for the three and nine months ended March ~~December~~ 31, ~~2011~~ 2012 have decreased as a result of decreased operations in the development of our NGDTM Technology. This has resulted in decreased research and development activities. The decrease ~~in operating expenses~~ was partially offset by ~~increases~~ inincreased ~~amortization of equipment,~~ general and administrative expenses, ~~professional fees~~ and ~~stock~~increased ~~based~~professional ~~compensation~~fees.

Our operating expenses for the six months ended December 31, 2011 have increased as a result of increases in amortization of equipment, general and administrative expenses, professional fees and stock based compensation. The increase in operating expenses was partially offset by decreased research and development activities.

General and administrative expenses primarily relate to fees paid to our: (i) officers, directors, consultants and employees; and (ii) amounts incurred in connection with investor relations activities.

Professional fees relate to legal and accounting fees in connection with meeting our ongoing reporting obligations under the Exchange Act.

Research and development expenses primarily relate to amounts paid under the CIO Research Agreement as other consulting expenses incurred in connection with the development of our NGD™ Technology.

Stock based compensation relates to recorded expenses for stock options granted to our directors, officers and consultants.

WeProfessional ~~anticipate~~fees ~~our~~related ~~operating expenses will increase as we undertake our plan of operation. The increase will be attributable~~ to ~~our development,~~meeting of our ~~NGD™ Technology. We also anticipate our~~ ongoing ~~operating expenses will also increase as a result of our ongoing~~ reporting ~~requirements~~ ~~under~~requirements with the ~~Exchange Act~~SEC.

We anticipate our operating expenses will increase as we undertake our plan of operation. The increase will be attributable to our development, of our NGD™ solar cell technology. We also anticipate our ongoing operating expenses will also increase as a result of our ongoing reporting requirements under the Exchange Act.

Net Loss

We incurred a loss in the amount of $910,~~190~~000,~~482~~668 for the period from inception to ~~December~~March 31, ~~2011~~2012. Our loss was attributable to the costs of operating expenses which primarily consisted of research and development costs, general and administrative expenses and professional fees paid in connection with ~~acquiring our assets,~~ preparing and filing our Current, Quarterly and Annual Reports.

LIQUIDITY AND CAPITAL RESOURCES

Working Capital
							Percentage
		At December 31, 2011			At June 30, 2011		Increase / Decrease
		At March 31, 2012			At June 30, 2011		Increase / Decrease
Current Assets	$	9650,~~993~~947		$	344,965		(7185.92)%
Current Liabilities		(~~541~~1,~~100~~083,065	)		(162,417	)	~~233~~566.28%
Working Capital Surplus (Deficit)	$	(~~444~~1,~~107~~032,118	)	$	182,548		(~~343~~665.34)%

Cash Flows
		Six Months Ended			Six Months Ended
		Nine Months Ended			Nine Months Ended
		December 31, 2011			December 31, 2010
		March 31, 2012			March 31, 2011
Cash Used in Operating Activities	$	(1,~~433~~700,~~404~~261	)	$	(12,~~812~~635,~~935~~722	)
Cash Used in Investing Activities		(959,003	)		-
Cash Provided by Investing Activities		959,003			-
Cash Provided by Financing Activities		2,~~073~~338,~~440~~529			3,~~679~~713,~~558~~544
Net Increase (Decrease) in Cash During Period	$	(~~328~~320,~~967~~735	)	$	1,~~866~~077,~~623~~821

As at ~~December~~March 31, ~~2011~~2012, we had cash of $1422,~~322~~554 and a working capital deficit of $~~444~~1,~~107~~032,118.

The change in our working capital at ~~December~~March 31, ~~2011~~2012 from our year ended June 30, 2011 is primarily a result of ~~the~~ increases in accounts ~~payable~~ payable and accrued liabilities and decreases in cash. The decrease in our cash ~~flows~~ flows during the ~~six~~nine month period ended on ~~December~~March 31, ~~2011~~2012 is primarily due to purchases of equipment used in our research and development activities and decreases in proceeds from the issuance of our common stock.

The equipment we purchased consisted of the following:

	(1)	Two PVD75 thin-film deposition tools: These tools are used for metal and dielectric depositions via evaporation and sputtering. They complement the existing tools that we have access to at the research facility at Simon Fraser University. These tools have allowed us to increase the number of thin film deposition processes, which in turn enable improvements in process repeatability, thin film property enhancements, and device fabrication throughput.
	(2)	FEI NanoSEM 430 scanning electron microscope: This microscope allows us unrestricted access to an ultra-high resolution microscope with elemental analysis capabilities. It further has special capabilities for imaging insulating samples, which is critical for work on glass substrates. This microscope is used to characterize all the films and devices produced by the thin film deposition tools, and allows us to run more efficient device optimization cycles.

substrates. This microscope is used to characterize all the films and devices produced by the thin film deposition tools, and allows us to run more efficient device optimization cycles.

Future Financings

As of ~~December~~March 31, ~~2011~~2012, we had cash on hand of $1422,~~322~~554. Since ~~our~~ our inception, we have used proceeds from the sales of our common stock to raise money for our operations and for our technology acquisition. We have not attained profitable operations and are dependent upon obtaining financing to pursue our plan of operation. For these reasons, our auditors stated in their report to our audited financial statements for the year ended June 30, 2011, that there is substantial doubt that we will be able to continue as a going concern.

On January 13, 2012, our Board of Directors approved an offering (the “Foreign Units Offering”) of up to 5,000,000 units (each a “Unit”) at a price of $0.20 US per Unit pursuant to Regulation S of the Securities Act. Each Unit will consist of one share of our common stock and one share purchase warrant, with each warrant entitling the subscriber to purchase an additional share of our common stock for a three month period following the date of issuance at an exercise price equal to $0.25 US per share. WeOn February 27, 2012, we issued 288,050 Units for proceeds of $57,610 under the Foreign Units Offering. As of March 31, 2012, we have received subscriptions for additional proceeds of $~~170~~195,000 under the Foreign Units Offering but we have not ~~issued~~yet ~~any~~issued the securities ~~under this offering~~ to ~~date~~the subscribers.

~~Proceeds~~We have no revenues to date from ~~the~~our ~~Foreign~~inception. ~~Units~~We ~~Offering~~anticipate continuing to rely on loans or equity sales of our common stock in order to continue to fund our business operations. Issuances of additional shares will result bein ~~used~~dilution to ~~for~~our existing stockholders. We do not believe that we have ~~the~~obtained ~~development~~sufficient ~~and~~financing ~~marketing~~to ofcover our ~~NGDTM~~anticipated ~~Technology~~expenses ~~and~~over ~~for~~the ~~general~~next ~~corporate~~four ~~purposes~~months. There is no assurance that ~~the~~we ~~Foreign~~will ~~Units~~achieve ~~Offering~~any oradditional ~~any part~~sales of our itequity ~~will~~securities beor ~~completed.~~arrange for debt or other financing for to fund our planned business activities.

We have no revenues to date from our inception. We anticipate continuing to rely on equity sales of our common stock in order to continue to fund our business operations. Issuances of additional shares will result in dilution to our existing stockholders. We believe that we have obtained sufficient financing to cover our anticipated expenses over the next twelve months. However, there is no assurance that we will achieve any of additional sales of our equity securities or arrange for debt or other financing for to fund our planned business activities.

OFF-BALANCE SHEET ARRANGEMENTS

WeAs at March 31, 2012, we have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources .

CRITICAL ACCOUNTING POLICIES

Our significant accounting policies are disclosed in Note 2 to our audited financial statements included in our Annual Report for the year ended June 30, 2011.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Not Applicable.

ITEM 4. CONTROLS AND PROCEDURES.

Disclosure Controls and Procedures

We carried out an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of ~~December~~March 31, ~~2011~~2012 (the “Evaluation Date”). This evaluation ~~was~~ was carried out under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were not effective as of the Evaluation Date as a result of the material weaknesses in internal control over financial reporting discussed in our Annual Report on Form 10-K for the fiscal year ended June 30, 2011.

910

Notwithstanding the assessment that our internal control over financial reporting was not effective and that there were material weaknesses as identified in this report, we believe that our financial statements contained in our Quarterly Report on Form 10-Q for the fiscal quarter ended ~~December~~March 31, ~~2011~~ 2012 fairly present our financial condition, results of operations and cash flows in all material respects.

Changes in internal control over financial reporting

There were no changes in our internal control over financial reporting that occurred during the fiscal quarter months ended ~~December~~March 31, ~~2011 that~~2012 that have materially affected, or that are reasonably likely to materially affect, our internal control over financial reporting.

1011

PART II - OTHER INFORMATION

ITEM 1.

LEGAL PROCEEDINGS.

None.

ITEM 1A.

RISK FACTORS.

IfCIO-BC ~~photovoltaic~~Agreement ~~technology~~ is ~~not~~currently ~~suitable~~suspended. ~~for~~If ~~widespread~~CIO-BC cannot ~~adoption,~~reach oran ifagreement ~~sufficient~~with ~~demand~~SFU, ~~for~~we ~~solar~~will ~~modules~~not ~~does~~receive ~~not~~any ~~develop~~funds orunder ~~takes~~the Loan ~~longer~~Agreement toand ~~develop~~may ~~than~~not webe ~~anticipate,~~able weto ~~may~~continue ~~never~~our ~~earn~~research ~~revenues~~and ~~or become~~development ~~profitable.~~activities on our NGDTM Technology.

~~The~~We ~~solar~~have ~~energy~~not ~~market~~had isenough atcash ato ~~relatively~~make ~~early~~our ~~stage~~payments ofto CIO-BC for ~~development~~ongoing research and ~~the~~development ~~extent~~costs. toAs ~~which~~a ~~solar~~result, ~~modules~~CIO-BC ~~will~~has befallen ~~widely~~behind with ~~adopted~~its ~~is uncertain.~~payments Ifunder ~~photovoltaic~~the ~~technology~~CIO-BC ~~proves~~Research ~~unsuitable~~Agreement ~~for~~and ~~widespread~~the ~~adoption~~CIO-BC Research orAgreement ifhas ~~demand~~been ~~for~~suspended ~~solar~~by ~~modules~~SFU. ~~fails~~We toare ~~develop~~now ~~sufficiently,~~working wewith ~~may~~CIO-BC beto ~~unable~~negotiate toa ~~grow~~new ~~our~~agreement ~~business~~with orSFU. ~~generate~~We ~~sufficient~~have ~~net~~entered ~~sales~~into the Loan Agreement, which will allow us to ~~sustain~~continue ~~profitability~~our research and development activities. In ~~addition~~However, ~~demand~~the ~~for~~Loan Agreement ~~solar~~and ~~modules~~the infirst ~~our~~advance ~~targeted~~thereunder ~~markets~~are ~~may~~held ~~not~~in ~~develop~~escrow orcontingent on SFU ~~may~~allowing ~~develop~~us to ause ~~lesser~~their ~~extent~~facilities ~~than~~to wecontinue ~~anticipate~~our research and development activities. ~~Many~~There ~~factors~~are ~~may~~no ~~affect~~assurances ~~the~~that a new agreement with SFU will be ~~viability~~reached, ofthat ~~widespread~~SFU ~~adoption~~will ofallow ~~photovoltaic~~us ~~technology~~to ~~and~~continue ~~demand~~to ~~for~~use ~~solar~~their facilities to conduct ~~modules,~~our ~~including~~research and development activities or that we will be advanced any funds under the ~~following:~~Loan agreement.

1.We ~~cost-effectiveness~~will ofrequire ~~the~~financing ~~electricity generated by photovoltaic power systems compared~~ to ~~conventional~~conduct ~~energy~~further ~~sources~~research and products, including conventional energy sources, such as natural gas, and other non-solar renewable energy sources, such as wind; 2. availability and substance of government subsidies, incentives and renewable portfolio standards to support the development ~~of the solar energy industry; 3~~activities. ~~performance~~There ~~and~~is ~~reliability~~no ofassurance photovoltaic systems compared to conventional and other non-solar renewable energy sources and products; 4. success of other renewable energy generation technologies, such as hydroelectric, tidal, wind, geothermal, solar thermal, concentrated photovoltaic, and biomass; 5. fluctuations in economic and market conditions that ~~affect~~we ~~the~~will ~~price~~be ~~of,~~able ~~and~~to ~~demand~~secure financing ~~for,~~on ~~conventional~~acceptable ~~and~~terms ~~non-solar renewable energy sources, such as increases~~ or ~~decreases~~at ~~in the price of oil, natural gas and other fossil fuels; and 6~~all. ~~fluctuations in capital expenditures by end-users of solar modules, which tend to decrease when the economy slows and interest rates increase.~~

AnIf ~~increase~~photovoltaic intechnology ~~interest~~is ~~rates~~not orsuitable ~~lending rates or tightening of the supply of capital in the global financial markets (including a reduction in total tax equity availability) could make it difficult~~ for ~~end-users to~~widespread ~~finance~~adoption, ~~the~~or ~~cost~~if ofsufficient ~~a photovoltaic system and could reduce the~~ demand for solar modules ~~utilizing~~does ~~our~~not ~~NGD™~~develop ~~Technology and/~~or ~~lead~~takes longer to adevelop ~~reduction~~than inwe ~~the average~~anticipate, ~~selling~~we ~~price~~may ~~for~~never ~~photovoltaic~~earn ~~modules.~~revenues or become profitable.

~~Many~~The ~~of potential~~ solar ~~technology~~energy ~~customers~~market ~~will~~is ~~depend~~at ~~on debt~~a ~~financing~~relatively toearly ~~fund~~stage ~~the initial capital expenditure required to develop,~~of ~~build~~development and ~~purchase~~the aextent ~~photovoltaic~~to ~~system.~~which Assolar amodules ~~result,~~will anbe ~~increase~~widely inadopted ~~interest~~is ~~rates~~uncertain. orIf ~~lending~~photovoltaic ~~rates~~technology ~~could~~proves ~~make~~unsuitable ~~it difficult~~ for ~~our~~widespread ~~potential customers to~~adoption ~~secure the financing necessary to develop, build, purchase~~ or ~~install~~if ~~a photovoltaic system on favorable terms, or at all, and thus lower~~ demand for ~~our~~ solar modules ~~which~~fails ~~could~~to ~~limit~~develop ~~our~~sufficiently, ~~growth~~we ormay ~~reduce~~be ~~our net sales. Due~~ unable to ~~the overall~~grow ~~economic outlook,~~ our ~~end-users~~business ~~may change their decision~~ or ~~change~~generate ~~the timing~~sufficient ofnet ~~their~~sales ~~decision~~ to ~~develop,~~sustain ~~build, purchase or install a photovoltaic system~~profitability. In addition, wedemand ~~believe~~for ~~that~~solar amodules ~~significant~~in ~~percentage of~~ our ~~end-users install~~targeted ~~photovoltaic~~may ~~systems~~not asdevelop ~~an investment, funding the initial capital expenditure through a combination of equity and debt. An increase in interest rates and/~~or ~~lending rates could lower an investor’s return on investment in a~~may ~~photovoltaic~~develop ~~system, increase equity return requirements or make alternative investments more attractive relative~~ to ~~photovoltaic~~a ~~systems,~~lesser ~~and,~~extent inthan ~~each~~we ~~case, could cause these end-users to seek alternative investments~~anticipate. AMany ~~reduction~~factors inmay affect the ~~supply~~viability of ~~project~~widespread ~~debt~~adoption ~~financing or tax equity investments could reduce the number~~ of ~~solar~~photovoltaic ~~projects~~technology ~~that receive financing~~ and ~~thus lower~~ demand for solar modules., including the following:

~~Existing~~1. ~~regulations~~cost-effectiveness of the electricity generated by photovoltaic power systems compared to conventional energy sources and ~~policies~~products, including conventional energy sources, such as natural gas, and ~~changes~~other tonon-solar ~~these regulations~~renewable energy sources, such as wind; 2. availability and ~~policies~~substance ~~may~~of ~~present~~government ~~technical~~subsidies, ~~regulatory~~incentives and ~~economic~~renewable ~~barriers~~ portfolio standards to support the ~~purchase~~development of the solar energy industry; 3. performance and ~~use~~reliability of photovoltaic systems compared to conventional and other non-solar renewable energy sources and products; 4. success of other renewable energy generation technologies, ~~which~~such ~~may~~as ~~significantly~~hydroelectric, ~~reduce~~ tidal, wind, geothermal, solar thermal, concentrated photovoltaic, and biomass; 5. fluctuations in economic and market conditions that affect the price of, and demand for, ~~our~~conventional and non-solar ~~modules~~renewable energy sources, such as increases or decreases in the price of oil, natural gas and other fossil fuels; and 6. fluctuations in capital expenditures by end-users of solar modules, which tend to decrease when the economy slows and interest rates increase.

11An increase in interest rates or lending rates or tightening of the supply of capital in the global financial markets (including a reduction in total tax equity availability) could make it difficult for end-users to finance the cost of a photovoltaic system and could reduce the demand for solar modules utilizing our NGD™ Technology and/or lead to a reduction in the average selling price for photovoltaic modules.

The market for electricity generation products is heavily influenced by foreign, federal, state and local government regulations and policies concerning the electric utility industry, as well as policies promulgated by electric utilities. These regulations and policies often relate to electricity pricing and technical interconnection of customer-owned electricity generation. In the United States and in a number of other countries, these regulations and policies have been modified in the past and may be modified again in the future. These regulations and policies could deter end-user purchases of photovoltaic products and investment in the research and development of photovoltaic technology. For example, without a mandated regulatory exception for photovoltaic systems, utility customers are often charged interconnection or standby fees for putting distributed power generation on the electric utility grid. If these interconnection standby fees were applicable to photovoltaic systems, it is likely that they would increase the cost to our end-users of using photovoltaic systems which could make them less desirable, thereby harming our business, prospects, results of operations and financial condition. In addition, electricity generated by photovoltaic systems mostly competes with expensive peak hour electricity, rather than the less expensive average price of electricity. Modifications to the peak hour pricing policies of utilities, such as to a flat rate for all times of the day, would require photovoltaic systems to achieve lower prices in order to compete with the price of electricity from other sources. 12

WeMany ~~anticipate~~of ~~that~~potential solar ~~modules~~technology ~~utilizing~~customers ~~our~~will ~~technology~~depend ~~and~~on ~~their~~debt ~~installation~~financing ~~will~~to befund ~~subject~~the initial capital expenditure required to ~~oversight~~develop, build and ~~regulation~~purchase a photovoltaic system. As a result, an increase in ~~accordance~~interest ~~with~~rates ~~national~~or ~~and~~lending ~~local~~rates ~~ordinances~~could ~~relating~~make it difficult for our potential customers to secure ~~building~~the ~~codes~~financing necessary to develop, ~~safety~~build, purchase or install a ~~environmental~~photovoltaic ~~protection~~system on favorable terms, ~~utility~~or ~~interconnection~~at all, and ~~metering~~thus ~~and~~lower ~~related~~demand for our ~~matters.~~solar Itmodules iswhich ~~difficult~~could tolimit ~~track~~our ~~the~~growth ~~requirements~~or ofreduce ~~individual~~our ~~states~~net ~~and design~~sales. ~~equipment~~Due to ~~comply~~the overall ~~with~~economic ~~the~~outlook, ~~varying~~our ~~standards.~~end-users ~~Any~~may ~~new~~change ~~government regulations~~their decision or ~~utility~~change ~~policies~~the timing ~~pertaining~~of their decision to ~~our~~develop, ~~solar~~build, ~~modules~~purchase ~~may~~or ~~result~~install ina photovoltaic system. In addition, we believe that a significant ~~additional~~percentage ~~expenses~~of toour usend-users install photovoltaic systems as an investment, ~~our~~funding ~~resellers~~the initial capital expenditure through a combination of equity and ~~their~~debt. ~~customers~~An increase in interest rates and/or lending rates could lower an investor’s return on investment in a photovoltaic system, asincrease equity return requirements or make alternative ainvestments ~~result~~more attractive relative to photovoltaic systems, and, in each case, could cause athese ~~significant~~end-users to seek alternative investments. A reduction in ~~demand~~the supply ~~for~~of ~~our~~project debt financing or tax equity investments could reduce the number of solar projects that receive financing and thus lower demand for solar modules.

WeExisting ~~face~~regulations ~~intense~~and ~~competition~~policies ~~from~~and ~~manufacturers~~changes ofto these ~~crystalline~~regulations ~~silicon~~and ~~solar~~policies ~~modules,~~may ~~thin~~present ~~film~~technical, ~~solar~~regulatory ~~modules~~ and ~~solar~~economic ~~thermal and~~barriers ~~concentrated~~to ~~photovoltaic~~the ~~systems;~~purchase ifand ~~global~~use ~~supply~~of ~~exceeds~~photovoltaic ~~global demand~~products, ~~it could~~which ~~lead~~may tosignificantly areduce demand ~~reduction in the average selling price~~ for ~~photovoltaic~~our solar modules.

The ~~solar~~market ~~energy~~for ~~and~~electricity ~~renewable~~generation ~~energy~~products ~~industries~~is ~~are both~~heavily ~~highly~~influenced ~~competitive~~by foreign, federal, state and ~~continually~~local ~~evolving~~government regulations and policies concerning the electric utility industry, as ~~participants~~well ~~strive~~as policies promulgated by electric utilities. These regulations and policies often relate to electricity pricing and technical interconnection of customer-owned ~~distinguish~~electricity ~~themselves~~generation. ~~within~~In ~~their~~the ~~markets~~United States and ~~compete~~in ~~with~~a number of other countries, these regulations and policies have been modified in the ~~larger~~past ~~electric~~and may be ~~power~~modified ~~industry~~again in the future. ~~Within~~These regulations and policies could deter end-user purchases of photovoltaic products and investment in the ~~global~~research and development of photovoltaic ~~industry~~technology. For example, wewithout ~~face~~a ~~competition~~mandated ~~from~~regulatory ~~crystalline~~exception ~~silicon~~for ~~solar~~photovoltaic ~~module~~systems, ~~manufacturers~~utility customers are often charged interconnection or standby fees for putting distributed power generation on the electric utility grid. If these interconnection standby fees were applicable to photovoltaic systems, ~~other~~it ~~thin~~is ~~film~~likely ~~solar~~that they would increase the ~~module~~cost ~~manufacturers~~to ~~and~~our ~~companies~~end-users ~~developing~~of ~~solar~~using ~~thermal~~photovoltaic systems which could make them less desirable, thereby harming our business, prospects, results of operations and financial ~~concentrated~~condition. In addition, electricity generated by photovoltaic systems mostly competes with expensive peak hour electricity, rather than the less expensive average price of electricity. Modifications to the peak hour pricing policies of utilities, such as to a flat rate for all times of the day, would require photovoltaic ~~technologies~~systems to achieve lower prices in order to compete with the price of electricity from other sources.

~~Even~~We ifanticipate ~~demand~~that ~~for~~ solar modules ~~continues~~utilizing our technology and their installation will be subject to ~~grow~~oversight and regulation in accordance with national and local ordinances relating to building codes, ~~the~~safety, environmental ~~rapid~~protection, utility interconnection and metering and related ~~expansion~~matters. ~~plans~~It is difficult to track the requirements of ~~many~~individual states and design equipment to comply with the varying standards. Any new government regulations or utility policies pertaining to our solar ~~cell~~modules may result in significant additional expenses to us, our resellers and ~~module~~their ~~manufacturers~~customers and, as a result, could ~~create~~cause ~~periods where~~a ~~supply~~significant ~~exceeds~~reduction in demand for our solar modules.

~~During~~We ~~any~~face ~~such~~intense ~~period,~~competition ~~our~~from ~~competitors~~manufacturers ~~could decide to reduce~~of ~~their~~crystalline ~~sales~~silicon ~~price~~solar ~~in response to competition~~modules, ~~even~~thin ~~below~~film ~~their manufacturing cost, in order to generate sales. As a result our partners may be unable to sell~~ solar modules ~~based~~and onsolar ~~our~~thermal ~~technology at attractive prices, or for a profit,~~and ~~during~~concentrated ~~any~~photovoltaic ~~period~~systems; ofif ~~excess~~global supply ofexceeds ~~solar~~global ~~modules~~demand, ~~which would reduce our net~~it ~~sales~~could ~~and~~lead ~~adversely~~to ~~affect~~a ~~our~~reduction ~~results~~in ofthe ~~operations. Also, we may decide to lower our~~ average selling price tofor ~~certain customers in certain markets in~~photovoltaic ~~response to competition~~modules.

~~Our~~The ~~failure~~solar toenergy ~~further~~and ~~refine~~renewable ~~our~~energy ~~technology~~industries are both highly competitive and ~~develop~~continually evolving as participants strive to distinguish themselves within their markets and compete with the larger electric ~~introduce~~power ~~improved~~industry. Within the global photovoltaic ~~products~~industry, ~~could~~we ~~render~~face competition from crystalline silicon solar ~~modules~~module ~~based~~manufacturers, onother ~~our technology~~thin ~~uncompetitive~~film orsolar module ~~obsolete~~manufacturers and ~~reduce~~companies ~~our~~developing ~~net~~solar ~~sales~~thermal and ~~market~~concentrated photovoltaic ~~share~~technologies.

WeEven ~~will~~if ~~need~~demand tofor ~~invest significant financial resources in research and development to continue to improve our module conversion efficiency and to otherwise keep pace with technological advances in the~~ solar ~~energy industry.~~modules ~~However,~~continues ~~research and development activities are inherently uncertain and we could encounter practical difficulties in commercializing our research results. We seek~~ to ~~continuously improve our products and processes~~grow, ~~and~~ the rapid ~~resulting~~expansion ~~changes~~plans ~~carry potential risks in the form~~ of ~~delays,~~many ~~additional~~solar ~~costs or~~cell ~~other unintended contingencies. In addition, our significant expenditures on research~~ and ~~development~~module ~~may~~manufacturers ~~not produce corresponding benefits. In addition, other companies~~ could ~~potentially~~create ~~develop a highly reliable renewable energy~~periods ~~system~~where ~~that~~supply ~~mitigates~~exceeds ~~the~~demand. ~~intermittent power production drawback of many renewable energy systems, or offers other value-added improvements from the perspective of utilities and other system~~

1213

~~owners,~~During inany ~~which~~such ~~case~~period, ~~such~~our ~~companies~~competitors could ~~compete~~decide ~~with~~to usreduce their sales price in response to competition, even if ~~the~~below ~~levelized~~their manufacturing cost, ofin ~~electricity~~order ~~associated~~to ~~with~~generate ~~such~~sales. ~~new~~As ~~system~~a isresult ~~higher than~~our ~~that~~partners ofmay ~~our~~be ~~systems.~~unable ~~Our~~to sell solar modules ~~may~~based beon ~~rendered~~our ~~obsolete~~technology byat ~~the~~attractive prices, or for a profit, ~~technological~~during ~~advances~~any period of ~~our~~excess ~~competitors~~supply of solar modules, which ~~could~~would reduce our net sales and ~~market~~adversely ~~share~~affect our results of operations. Also, we may decide to lower our average selling price to certain customers in certain markets in response to competition.

Our failure to ~~protect~~further refine our ~~intellectual~~technology ~~property~~and ~~rights~~develop ~~may~~and ~~undermine~~introduce ~~our~~improved ~~competitive~~photovoltaic ~~position~~products ~~and~~could ~~litigation~~render tosolar ~~protect~~modules ~~our~~based ~~intellectual~~on our ~~property~~technology ~~rights~~uncompetitive or ~~defend~~obsolete ~~against~~and ~~third-party~~reduce ~~allegations~~our ofnet ~~infringement~~sales ~~may~~and bemarket ~~costly~~share.

~~Protection~~We ofwill ~~our~~need ~~proprietary~~to ~~processes,~~invest ~~methods~~significant ~~and~~financial ~~other~~resources in ~~technology~~research isand ~~critical~~development to continue to improve our ~~business.~~module ~~Failure~~conversion efficiency and to ~~protect~~otherwise ~~and~~keep ~~monitor~~pace with technological advances in the ~~use~~solar energy ofindustry. ~~our~~However, ~~existing~~research ~~intellectual~~and ~~property~~development ~~rights~~activities are inherently uncertain and we could ~~result~~encounter practical difficulties in ~~the~~commercializing ~~loss~~our ofresearch ~~valuable technologies~~results. We ~~rely~~seek ~~primarily~~to oncontinuously ~~patents,~~improve ~~trademarks~~our products and processes, ~~trade~~and ~~secrets~~the resulting changes carry potential risks in the form of delays, additional costs ~~copyrights~~or ~~and~~other ~~contractual~~unintended ~~restrictions~~contingencies. toIn ~~protect~~addition, our ~~intellectual~~significant ~~property.~~expenditures on ~~Our~~research ~~existing~~and ~~provisional~~development ~~patents~~may ~~and~~not ~~future~~produce ~~patents~~corresponding ~~could~~benefits. beIn ~~challenged~~addition, ~~invalidated,~~other ~~circumvented~~companies orcould ~~rendered~~potentially ~~unenforceable.~~develop ~~Our~~a ~~pending~~highly ~~patent~~reliable renewable energy ~~applications~~system ~~may~~that ~~not~~mitigates ~~result~~the inintermittent ~~issued~~power ~~patents~~production drawback of many renewable energy systems, or ifoffers ~~patents~~other ~~are~~value-added ~~issued~~improvements tofrom usthe perspective of utilities and other system owners, in which case such companies could compete with us even if the levelized cost of electricity associated with such ~~patents~~new ~~may~~system ~~not~~is behigher ~~sufficient~~than tothat ~~provide~~of ~~meaningful~~our ~~protection~~systems. ~~against~~Our solar modules may be rendered obsolete by the technological advances of our competitors, orwhich ~~against~~could reduce ~~competitive~~our ~~technologies.~~net sales and market share.

WeOur ~~also~~failure ~~rely~~to ~~upon~~protect ~~unpatented~~our ~~proprietary~~intellectual ~~manufacturing expertise,~~property ~~continuing~~rights ~~technological innovation and other trade secrets to~~may ~~develop~~undermine ~~and maintain~~ our competitive position. ~~While we generally enter into confidentiality agreements with our associates~~ and ~~third~~litigation ~~parties~~ to protect our ~~intellectual~~ intellectual property, ~~such~~rights ~~confidentiality agreements are limited in duration and could be breached and may not provide meaningful protection for our trade secrets~~ or ~~proprietary~~defend ~~manufacturing~~against ~~expertise.~~third-party ~~Adequate~~allegations ~~remedies may not be available in the event~~ of ~~unauthorized~~infringement ~~use or disclosure of our trade secrets and manufacturing expertise. In addition, others~~ may obtain knowledge of our trade secrets through independent development or legal means. The failure of our patents or confidentiality agreements to protect our processes, equipment, technology, trade secrets and proprietary manufacturing expertise, methods and compounds could have a material adverse effect on our business. In addition, effective patent, trademark, copyright and trade secret protection may be ~~unavailable or limited in some foreign countries, especially any developing countries into which we may expand our operations~~costly. ~~In some countries we have not applied for patent, trademark or copyright protection.~~

~~Third~~Protection ~~parties~~of ~~may infringe or misappropriate~~ our proprietary ~~technologies~~ ~~or other intellectual property rights~~processes, ~~which~~methods ~~could~~and ~~have a material~~other ~~adverse~~technology ~~effect~~is oncritical to our business,. ~~financial~~Failure ~~condition~~to protect and ~~operating~~monitor ~~results. Policing~~the ~~unauthorized~~ use of ~~proprietary technology can be difficult and expensive. Also, litigation may be necessary to enforce~~ our existing intellectual property rights, ~~protect~~could ~~our~~result ~~trade~~in ~~secrets or determine~~ the ~~validity~~loss ~~and scope~~ of valuable ~~the proprietary rights of others~~technologies. We ~~cannot~~rely ~~assure~~primarily ~~you~~on ~~that~~patents, ~~the~~trademarks, ~~outcome~~trade ofsecrets, ~~such~~copyrights ~~potential~~and ~~litigation~~contractual ~~will~~restrictions beto inprotect our ~~favor.~~intellectual ~~Such litigation may be costly~~property. ~~and~~Our ~~may~~existing ~~divert~~provisional ~~management~~patents ~~attention~~ and ~~other~~future ~~resources~~patents ~~away~~could ~~from~~be ~~our business.~~challenged, Aninvalidated, ~~adverse~~circumvented ~~determination~~or inrendered ~~any~~unenforceable. ~~such~~Our ~~litigation~~pending ~~may impair our intellectual~~patent ~~property~~applications ~~rights and~~ may ~~harm~~not ~~our~~result ~~business,~~in ~~prospects~~issued ~~and reputation. In addition~~patents, weor ~~have~~if nopatents ~~insurance~~are ~~coverage~~issued ~~against~~to ~~litigation costs and would have~~us, tosuch ~~bear~~patents ~~all~~may ~~costs~~not ~~arising~~be ~~from~~sufficient ~~such litigation~~ to ~~the~~provide ~~extent~~meaningful weprotection ~~are unable to~~against ~~recover~~competitors ~~them~~or ~~from~~against ~~other~~competitive ~~parties~~technologies.

We ~~have~~also ~~yet~~rely toupon ~~attain~~unpatented ~~profitable~~proprietary ~~operations~~manufacturing expertise, continuing technological innovation and other trade secrets to develop and maintain our competitive position. While we ~~will~~generally ~~need~~enter into ~~additional~~confidentiality ~~financing~~agreements with our associates and third parties to ~~fund~~protect ~~continued~~our intellectual property, such confidentiality agreements are limited in duration and could be breached and may not provide meaningful protection for our trade secrets or proprietary manufacturing expertise. Adequate remedies may not be available in the event of unauthorized use or disclosure of our trade secrets and manufacturing expertise. In addition, others may obtain knowledge of our trade secrets through independent development or legal means. The failure of ~~solar~~our patents ~~energy~~or ~~products~~confidentiality agreements to protect our processes, equipment, technology, trade secrets and proprietary manufacturing expertise, methods and compounds could have a material adverse effect on our business. In addition, effective patent, trademark, copyright and trade secret protection may be unavailable or limited in some foreign countries, especially any developing countries into which we may expand our operations. In some countries we have not applied for patent, trademark or copyright protection.

WeThird ~~have~~parties ~~incurred~~may ainfringe ~~net~~or ~~loss~~misappropriate ofour ~~$9,190,482~~proprietary technologies ~~for~~or ~~the~~other ~~period~~intellectual ~~from inception~~property ~~to December 31~~rights, ~~2011,~~which ~~and~~could have ~~earned~~a nomaterial adverse ~~revenues~~effect toon ~~date.~~our Webusiness, ~~expect to~~financial ~~spend~~condition ~~additional~~and ~~capital~~operating inresults. Policing ~~order~~unauthorized ~~produce~~use ~~and~~of ~~market~~proprietary ~~solar~~technology ~~energy~~can ~~products~~be difficult and ~~which~~expensive. weAlso, ~~are~~litigation ~~licensed~~may tobe ~~do,~~necessary ~~and~~to ~~establish~~enforce our ~~infrastructure and organization~~intellectual toproperty ~~support~~rights, ~~anticipated~~protect ~~operations.~~our Wetrade ~~cannot~~secrets beor ~~certain~~determine ~~whether~~the wevalidity ~~will~~and ~~ever~~scope ~~earn~~of athe ~~significant~~proprietary ~~amount~~rights of ~~revenues~~others. orWe ~~profit,~~cannot ~~or,~~assure ifyou ~~we do,~~ that wethe ~~will~~outcome beof ~~able~~such topotential ~~continue~~litigation ~~earning~~will ~~such~~be ~~revenues~~in orour ~~profit~~favor. ~~Also,~~Such ~~any~~litigation ~~economic weakness~~ may ~~limit~~be ~~our~~costly and ~~ability~~may todivert ~~continue~~management ~~development~~attention and ~~ultimately~~other ~~market~~resources away from our ~~products~~business. ~~and~~An ~~services.~~adverse ~~Any~~determination ofin ~~these~~any ~~factors~~such ~~could~~litigation ~~cause~~may impair our ~~stock~~intellectual property ~~price~~rights ~~to decline~~ and ~~result~~ inmay ~~investors~~harm ~~losing~~our abusiness, ~~portion~~prospects orand ~~all~~reputation. ofIn addition, ~~their~~we ~~investment.~~have ~~These~~no ~~factors raise~~insurance ~~substantial~~coverage ~~doubt~~against ~~that~~litigation wecosts ~~will~~and bewould ~~able~~ have to ~~continue~~bear asall acosts ~~going~~arising ~~concern.~~from ~~We have~~such ~~cash~~litigation into the ~~amount~~extent ofwe ~~$14,322~~are asunable atto recover ~~December~~them ~~31,~~from ~~2011.~~other parties.

We do not believe that we have obtained sufficient financing to fund our anticipated expenditures for the next twelve months. There is no assurance that we will be able to obtain financing to continue our development and marketing of our NGDTM Technology. 14

13We have yet to attain profitable operations and we will need additional financing to fund continued development of solar energy products.

~~Our~~We ~~financial~~have ~~statements~~incurred ~~included~~a ~~with~~net ~~this~~loss ~~Quarterly~~of ~~Report~~$10,000,688 for the period from ~~have~~inception ~~been~~to ~~prepared~~March ~~assuming~~31, ~~that~~2012, weand ~~will~~have ~~continue~~earned asno arevenues ~~going~~to ~~concern~~date. IfWe expect to spend additional capital in order produce and market solar energy products which we are ~~not~~ ~~able~~licensed to do, and establish our infrastructure and organization to support anticipated operations. We cannot be certain whether we will ever earn a significant amount of revenues or profit, ~~then~~or, if we ~~may~~do, ~~not~~that we will be able to continue asearning asuch ~~going~~revenues or profit. Also, any economic weakness may limit ~~concern~~our ability to continue development and ~~our~~ultimately ~~financial~~market ~~condition~~our products and services. ~~business~~Any ~~prospects~~of ~~will~~these befactors ~~adversely~~could cause our stock price to decline and result ~~affected~~in investors losing a portion or all of their investment. These factors raise substantial doubt that we will be able to continue as a going concern. ~~and~~We ~~adversely~~have cash ~~affect~~in ~~our~~the ~~ability~~amount toof ~~obtain~~$22,554 ~~additional financing~~as at March 31, 2012.

~~Our~~We ~~short~~do ~~operating~~not ~~history~~believe ~~makes~~that ~~our~~we ~~business~~have ~~difficult~~obtained sufficient financing to ~~evaluate,~~fund ~~accordingly,~~our weanticipated ~~have~~expenditures afor ~~limited~~the ~~operating~~next ~~history~~four ~~upon~~months. ~~which~~We tocurrently ~~base~~do annot ~~evaluation~~have ofsufficient ~~our~~arrangements ~~business~~for future financing and ~~prospects.~~we may not be able to obtain financing when required.

Our ~~business~~financial isstatements inincluded ~~the~~with ~~early~~this ~~stage~~Quarterly ofReport have ~~development~~been ~~and~~prepared assuming that we ~~have~~will continue as a going concern. If we are not ~~generated~~able ~~any~~to earn revenues, orthen ~~profit~~we tomay ~~date.~~not Webe ~~commenced~~able ~~our~~to ~~operations~~continue ~~in April,~~as ~~2004.~~a ~~Because~~going concern ofand our ~~limited~~financial ~~operating~~condition ~~history,~~and ~~investors~~business ~~may~~prospects ~~not~~will ~~have~~be adversely ~~adequate~~affected. ~~information~~These onfactors ~~which~~raise ~~they~~substantial ~~can~~doubt ~~base~~that anwe ~~evaluation~~will ofbe ~~our~~able ~~business~~to ~~and~~continue ~~prospects.~~as Toa ~~date,~~going weconcern ~~have~~and ~~done~~adversely ~~the~~affect ~~following:~~our ability to obtain additional financing.

1.Our ~~Completed~~short ~~organizational~~operating ~~activities;~~history 2.makes ~~Developed~~our a business ~~plan;~~difficult 3.to evaluate, ~~Obtained~~accordingly, ~~interim~~we ~~funding;~~have 4.a ~~Engaged~~limited ~~consultants~~operating ~~for~~history ~~professional~~upon ~~services;~~which ~~and~~to 5.base ~~Acquired~~an evaluation ~~NGD™~~of ~~Technology~~our business and prospects.

InOur ~~order~~business tois ~~establish~~in ~~ourselves as a technology supplier, we are dependent upon continued funding and~~ the ~~successful~~early ~~development~~stage of ~~the~~development ~~NGD™ Technology~~ and ~~products.~~we ~~Failure to obtain funding for continued development and~~have ~~marketing~~not ~~would~~generated ~~result~~any inrevenues usor ~~having~~profit ~~difficulty~~to ~~establishing~~date. ~~licensing~~We ~~agreements for~~commenced our ~~technology~~operations orin April, ~~achieving profitability~~2004. ~~Investors~~Because ~~should~~of beour ~~aware~~limited ofoperating ~~the increased risks~~history, ~~uncertainties,~~investors ~~difficulties~~may ~~and~~not ~~expenses~~have adequate weinformation ~~face~~on aswhich ~~a development~~they ~~stage~~can ~~company~~base ~~and~~an evaluation of our business ~~may fail~~ and prospects. ~~investors~~To ~~may~~date, ~~lose~~we ~~their entire~~have ~~investment.~~done the following:

We1. ~~have~~Completed aorganizational ~~limited~~activities; ~~operating~~2. ~~history~~Developed ~~upon~~a ~~which to base an evaluation of our~~ business ~~and~~plan; ~~prospects~~3. ~~Our~~Obtained ~~business~~interim ~~and~~funding; prospects must be considered in light of the risks, expenses and difficulties frequently encountered by companies in their early stage of development, particularly companies in new and rapidly evolving markets such as renewable energy4. ~~These risks~~Engaged ~~include~~consultants ~~the initial completion of a developed product, the demand~~ for ~~the company’s~~professional ~~product,~~services; ~~the company’s ability to adapt to rapid technological change, the level of product~~ and ~~price~~5. ~~competition,~~Acquired ~~the~~NGD™ ~~company’s success in setting up and expanding distribution channels and whether the company can develop and market new products and control costs~~Technology.

ToIn ~~address~~order ~~these~~to ~~risks,~~establish weourselves ~~must~~as ~~successfully~~a ~~implement~~technology ~~our~~supplier, we ~~business~~are ~~plan~~dependent ~~and~~upon ~~marketing~~continued ~~strategies.~~funding Weand ~~may~~the ~~not~~successful ~~successfully~~development ~~implement~~of ~~all~~the orNGD™ ~~any~~Technology ofand ~~our~~products. ~~business~~Failure ~~strategies~~to orobtain ~~successfully~~funding ~~address~~for ~~the~~continued ~~risks~~development and ~~uncertainties~~marketing ~~that~~would weresult ~~encounter.~~in Weus ~~have~~having nodifficulty ~~history~~establishing oflicensing ~~earning revenues and~~agreements ~~there~~for isour notechnology ~~assurance~~or ~~that~~achieving weprofitability. ~~will~~Investors should be ~~able~~aware toof ~~generate~~the increased ~~revenues~~risks, ~~from~~uncertainties, ~~sales~~difficulties ~~or that~~and ~~the~~expenses ~~revenues~~we ~~generated~~face ~~will~~as ~~exceed~~a development ~~the~~stage ~~operating~~company ~~costs~~and of our business. may fail and investors may lose their entire investment.

~~Operating~~We ~~results~~have ~~are~~a ~~difficult~~limited operating history upon which to ~~predict,~~base ~~with~~an evaluation of our business and prospects. Our business and prospects must be considered in light of the ~~result~~risks, expenses and difficulties frequently ~~that~~encountered weby ~~may~~companies ~~not~~in ~~achieve~~their ~~profitability~~early stage of development, particularly companies in new and ~~our~~rapidly ~~business~~evolving ~~may~~markets ~~fail~~such as renewable energy. These risks include the initial completion of a developed product, the demand for the company’s product, the company’s ability to adapt to rapid technological change, the level of product and price competition, the company’s success in setting up and expanding distribution channels and whether the company can develop and market new products and control costs.

~~Our~~To ~~future~~address ~~financial~~these ~~results~~risks, ~~are~~we ~~uncertain~~must ~~due~~successfully toimplement aour business ~~number~~plan and marketing strategies. We may not successfully implement all or any of our business strategies or successfully address the risks and ~~factors,~~uncertainties ~~many~~that we encounter. We have no history of ~~which~~earning ~~are~~revenues ~~outside~~and there ~~our~~is ~~control.~~no ~~These~~assurance ~~factors~~that ~~include:~~we will be able to generate revenues from sales or that the revenues generated will exceed the operating costs of our business.

1. Our ability to successfully license our technology to OEM’s and the ability of licensees to attract customers; 2. Our ability to generate revenue through the licensing of the NGD™ Technology; 3. The amount and timing of costs relating to expansion of our operations; 4. The announcement or introduction of competing distributors and products of competitors; and 5. General economic conditions and economic conditions specific to the solar power generation.15

WeOperating ~~believe~~results ~~that we can compete favorably on these factors. However, we will have no control over how successful our competitors~~ are ~~in addressing~~difficult ~~these~~to ~~factors. These factors could negatively impact on our financial results~~predict, with the result that we may not achieve profitability and our business may fail.

14Our future financial results are uncertain due to a number of factors, many of which are outside our control. These factors include:

We1. ~~will~~Our ~~require~~ability ~~additional~~to ~~financing~~successfully license our technology to OEM’s and ~~may~~the ~~not~~ability beof ~~able~~licensees to ~~continue~~ attract customers; 2. Our ability to generate revenue through the licensing of the NGD™ Technology; 3. The amount and timing of costs relating to expansion of our operations; if4. ~~additional~~The ~~financing~~announcement isor ~~not~~introduction ~~obtained~~of competing distributors and products of competitors; and 5. General economic conditions and economic conditions specific to the solar power generation.

AsWe ofbelieve ~~December~~that ~~31, 2011,~~ we ~~had~~can ~~cash~~compete infavorably ~~the~~on ~~amount~~these ~~of $14,322~~factors. ~~Our total expenditures over the next twelve months are anticipated to be approximately $2~~However,~~000,000,~~ ~~the~~we ~~majority~~will ofhave ~~which~~no iscontrol ~~due~~over tohow ~~the~~successful ~~development and marketing of~~ our ~~products~~competitors ~~and~~are ~~general, legal, accounting and administrative~~in ~~expenses~~addressing ~~associated~~these ~~with~~factors. ~~our~~These ~~reporting~~factors ~~obligations~~could ~~under~~negatively ~~the~~impact ~~Exchange Act. Depending~~ on ~~the success of~~ our ~~initial marketing efforts~~financial results, wewith ~~estimate~~the result that we ~~will~~ ~~require~~may ~~further~~not ~~funding~~achieve toprofitability ~~implement an advertising campaign to establish~~ and ~~enhance awareness of~~ our ~~products.~~business may fail.

~~The~~We ~~accompanying financial statements have been prepared assuming that we~~ will continue as a going concern. As discussed in Note 1 of our June 30, 2011 year end audited financial statements, we are in the development stage of operations, have had losses from operations since inception, and have insufficient working capital available to meet ongoing financial obligations over the next fiscal year. After the fiscal year end, we will require additional financing ~~for any operational expenses~~ and tomay ~~pursue~~not ~~our~~be ~~plan~~able ~~of operation. We will require additional capital and financing in order~~ to continue ~~otherwise~~operations ~~our business~~if ~~will fail. We have no agreements for~~ additional financing ~~and~~is ~~there~~not ~~can be no assurance that additional funding will be available to us on acceptable terms in order to enable us to complete our plan of operation~~obtained.

As of March 31, 2012, we had cash in the amount of $22,554. We have ~~will~~not ~~depend~~obtained onsufficient ~~recruiting~~financing to fund our anticipated business activities over the next four months. Our total expenditures over the next twelve months are anticipated to be approximately $1,100,000 the majority of which is due to the development and ~~retaining~~marketing ~~qualified~~of our products and general, ~~personnel~~legal, accounting and administrative expenses associated with our reporting obligations under the ~~inability~~Exchange Act. Depending on the success of our initial marketing efforts, we estimate that we will require further funding to doimplement an soadvertising ~~would~~campaign ~~seriously~~to ~~harm~~establish and enhance awareness of our ~~business~~products.

~~Our~~The ~~success~~accompanying isfinancial ~~dependent~~statements inhave ~~part~~been ~~on the services of certain key~~prepared ~~management~~assuming ~~personnel,~~that ~~including~~we ~~Steven~~will ~~Pleging,~~continue ~~our~~as ~~Chairman,~~a ~~Chief~~going ~~Executive Officer and President, Daryl J~~concern. ~~Ehrmantraut,~~As ~~our~~discussed ~~Chief~~in ~~Operating~~Note ~~Officer,~~1 ~~Dr. Andras~~of ~~Pattantyus-Abraham,~~ our June ~~Chief Technology Officer~~30, ~~Graham~~2011 R.year ~~Hughes,~~end ~~our Chief~~audited ~~Financial~~financial ~~Officer~~statements, ~~Secretary~~we ~~and~~are ~~Treasurer,~~in ~~and~~the ~~Stella Guo, our Vice~~development ~~President~~stage of ~~Corporate~~operations, ~~Development. We~~ have anhad ~~employment~~losses ~~agreement~~from ~~with~~operations ~~Mr. Ehrmantraut~~since inception, ~~Mr. Pleging~~ and ~~Ms.~~have insufficient ~~Guo.~~working Wecapital doavailable ~~not~~to ~~have~~meet ~~employment~~ongoing ~~agreements~~financial ~~with~~obligations ~~Mr.~~over ~~Hughes~~the ornext ~~Dr.~~fiscal ~~Pattantyus-Abraham~~year. WeAfter dothe ~~not~~fiscal ~~have~~year ~~any~~end, ~~employment~~we ~~agreements with~~will ~~any~~require ~~third parties providing services to us. The experience of these~~additional ~~individuals~~financing isfor anany ~~important~~operational ~~factor~~expenses ~~contributing~~and to pursue our ~~success~~plan ~~and~~of ~~growth~~operation. ~~and~~We ~~the~~will ~~loss~~require ofadditional ~~one~~capital orand ~~more~~financing ofin ~~these~~order ~~individuals~~to ~~could~~continue ~~have~~otherwise ~~a material adverse~~our ~~effect~~business onwill ~~our company~~fail. ~~Our~~We ~~future~~have ~~success~~no ~~also~~agreements ~~depends~~for onadditional ~~our~~financing ~~attracting, retaining~~ and ~~motivating~~there ~~highly~~can be ~~skilled~~no ~~personnel~~assurance ~~and~~that weadditional ~~may~~funding will be ~~unable~~available to ~~retain our~~us ~~key~~on ~~personnel~~acceptable terms orin ~~attract,~~order ~~assimilate~~to orenable ~~retain~~us ~~other~~to ~~highly~~complete ~~qualified personnel~~our inplan ~~the~~of ~~future~~operation.

We ~~may~~will ~~also~~depend ~~experience~~on ~~difficulty~~recruiting ~~in hiring~~ and retaining ~~highly~~ ~~skilled consultants with appropriate qualifications. We are materially~~qualified ~~dependent~~personnel onand ~~our financial consultant. If we are unable to retain~~ the ~~services of~~inability ~~this consultant, or if we are unable~~ to ~~attract~~do aso ~~qualified~~would ~~employee~~seriously ~~or financial~~harm ~~consultant, we may be unable to prepare financial statements, which could cause~~ our business ~~to fail~~. ~~Even if we invest significant resources to recruit, train and retain qualified personnel, we may not be successful in our efforts.~~

Our success is dependent in part on the services of certain key management personnel, including Dr. Andras Pattantyus-Abraham our Chief Executive Officer, President and Chief Technology Officer, Graham R. Hughes, our Chief Financial Officer, Secretary and Treasurer, and Daryl J. Ehrmantraut our Chief Operating Officer. We ~~may~~have ~~become~~an ~~liable~~employment ~~for~~agreement ~~defects~~with Mr. Ehrmantraut. We do not have employment agreements with Mr. Hughes or ~~patent~~Dr. ~~disputes~~Pattantyus-Abraham. We ~~that~~do not have any employment agreements with any third parties providing ~~arise~~services to us. The experience of these individuals is an important factor contributing to our success and ~~this~~growth and the loss of one or more of these individuals could ~~negatively~~have ~~affect~~a material adverse effect on our ~~business~~company. Our future success also depends on our attracting, retaining and motivating highly skilled personnel and we may be unable to retain our key personnel or attract, assimilate or retain other highly qualified personnel in the future.

We may become liable for ~~any~~ defects ~~that exist in the NGD™ Technology,~~ or ~~any~~ patent disputes. ~~If we are deemed to be liable for any~~that ~~defects~~arise orand ~~licensing issues,~~ this ~~will~~could ~~have~~negatively aaffect ~~material adverse impact on~~ our ~~financial~~ ~~condition and results of operation~~business.

~~Because~~We may become liable for any defects that exist in the NGD™ Technology, or any patent disputes. If we are ~~significantly~~deemed ~~smaller~~to ~~and~~be ~~less~~liable ~~established~~for weany ~~may~~defects ~~lack~~or ~~the~~licensing ~~financial~~issues, ~~resources~~this ~~necessary~~will tohave ~~compete~~a ~~effectively~~material ~~and~~adverse ~~sustain~~impact on our ~~profitability.~~financial condition and results of operation.

Our future success depends on our ability to compete effectively with other distributors of other solar technology. Many of these competitors are more established, offer more products, services and features, have a greater number of clients, locations, and employees, and also have significantly greater financial, technical, marketing, public relations, name recognition, and other resources than we have. While our objective is to continue to develop our technology, if we do not compete effectively with current and future competitors, we may not generate enough revenue to be profitable. Any of these factors could cause our stock price to decline and result in investors losing a portion or all of their investment. Increased competition may result in increased operating costs and the inability to generate revenues, any one of which could materially adversely affect our business, results of operations and financial condition. Many of our current and 16

15Because we are significantly smaller and less established we may lack the financial resources necessary to compete effectively and sustain profitability.

~~potential~~Our future success depends on our ability to compete effectively with other distributors of other solar technology. Many of these competitors are more established, offer more products, services and features, have a greater number of clients, locations, and employees, and also have significantly greater financial, technical, marketing, public relations, name recognition, and other resources than we have. While our objective is to continue to develop our technology, if we do not compete effectively with current and future competitors, we may not generate enough revenue to be profitable. Any of these factors could cause our stock price to decline and result in investors losing a portion or all of their investment. Increased competition may result in increased operating costs and the inability to generate revenues, any one of which could materially adversely affect our business, results of operations and financial condition. Many of our current and potential competitors have significantly greater financial, marketing, customer support, technical and other resources than us. As a result, such competitors may be able to attract potential customers away from us, and they may be able to devote greater resources to the development and promotion of their products than we can.

We do not intend to pay dividends in the near future.

We have not declared any dividends and we do not plan to declare any dividends in the foreseeable future. Our board of directors determines whether to pay dividends on our issued and outstanding shares. The declaration of dividends will depend upon our future earnings, our capital requirements, our financial condition and other relevant factors. The Nevada Revised Statutes, however, do prohibit us from declaring dividends where, after giving effect to the distribution of the dividend:

1.	We would not be able to pay our debts as they become due in the usual course of business; or
2.	Our total assets would be less than the sum of our total liabilities plus the amount that would be needed to satisfy the rights of stockholders who have preferential rights superior to those receiving the distribution.

Our board does not intend to declare any dividends on our shares for the foreseeable future.

Our business is exposed to foreign currency fluctuations causing negative changes in exchange rates to result in greater costs.

A portion of our expenses and capital spending will be transacted in Canadian dollars. We do not have a foreign currency hedging program in place. Due to the unpredictable behavior of foreign currency exchange rate fluctuations we cannot assure that this will not have a material adverse impact on our financial condition and results of operation.

Because our stock is a penny stock, stockholders will be more limited in their ability to sell their stock.

The SEC has adopted rules that regulate broker-dealer practices in connection with transactions in penny stocks. Penny stocks are generally equity securities with a price of less than $5.00, other than securities registered on certain national securities exchanges or quoted on the NASDAQ system, provided that current price and volume information with respect to transactions in such securities is provided by the exchange or quotation system.

Because our securities constitute "penny stocks" within the meaning of the rules, the rules apply to us and to our securities. The rules may further affect the ability of owners of shares to sell our securities in any market that might develop for them. As long as the quotation price of our common stock is less than $5.00 per share, the common stock will be subject to Rule 15g-9 under the Exchange Act. The penny stock rules require a broker-dealer, prior to a transaction in a penny stock, to deliver a standardized risk disclosure document prepared by the SEC, that:

1. contains a description of the nature and level of risk in the market for penny stocks in both public offerings and secondary trading; 2. contains a description of the broker's or dealer's duties to the customer and of the rights and remedies available to the customer with respect to a violation to such duties or other requirements of securities laws; 3. contains a brief, clear, narrative description of a dealer market, including bid and ask prices for penny stocks and the significance of the spread between the bid and ask price; 4. contains a toll-free telephone number for inquiries on disciplinary actions; 5. defines significant terms in the disclosure document or in the conduct of trading in penny stocks; and

1617

2. contains a description of the broker's or dealer's duties to the customer and of the rights and remedies available to the customer with respect to a violation to such duties or other requirements of securities laws; 3. contains a brief, clear, narrative description of a dealer market, including bid and ask prices for penny stocks and the significance of the spread between the bid and ask price; 4. contains a toll-free telephone number for inquiries on disciplinary actions; 5. defines significant terms in the disclosure document or in the conduct of trading in penny stocks; and 6. contains such other information and is in such form, including language, type, size and format, as the SEC shall require by rule or regulation.

The broker-dealer also must provide, prior to effecting any transaction in a penny stock, the customer with: (a) bid and offer quotations for the penny stock; (b) the compensation of the broker-dealer and its salesperson in the transaction; (c) the number of shares to which such bid and ask prices apply, or other comparable information relating to the depth and liquidity of the market for such stock; and (d) a monthly account statements showing the market value of each penny stock held in the customer's account. In addition, the penny stock rules require that, prior to a transaction in a penny stock not otherwise exempt from those rules, the broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser's written acknowledgment of the receipt of a risk disclosure statement, a written agreement to transactions involving penny stocks, and a signed and dated copy of a written suitability statement. These disclosure requirements may have the effect of reducing the trading activity in the secondary market for our stock.

ITEM 2.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

OnIssuance November 22, 2011, we issued 30,000 shares of our common stock to a consultant, pursuant to the terms of a business consulting agreement between the Company and the consultant dated April 19, 2010. These shares were issued in reliance on Regulation S of the Securities Act. The consultant represented that he was not a “U.S. Person” as defined under ~~Regulation~~Foreign SUnits ~~of the Securities Act and not acquiring the shares for the account or benefit of a U.S. Person.~~Offering

On ~~December~~February 727, ~~2011~~2012, we issued ~~400~~288,~~000~~050 units (each a “Unit”) at at a price of $0.2520 US per ~~Unit~~unit pursuant to Regulation S of the United States Securities Act ~~to one~~of ~~subscriber~~1933, as amended (the “Act”). Each Unit ~~consisted~~consists of one share of our common stock and one share purchase warrant, ~~with~~ (each ~~warrant~~a ~~entitling~~“Warrant”). Each Warrant entitles the ~~subscriber~~holder to purchase an additional share of our common stock for a ~~one~~three ~~year~~month period following the date of the issuance at an exercise price equal to $0.3025 US per share. ~~The subscriber represented that it was not a "U.S. Person" as defined under Regulation S of the Act and not acquiring the shares for the account or benefit of a U.S. Person.~~

~~ITEM~~On 3.March ~~DEFAULTS~~26, ~~UPON~~2012, ~~SENIOR~~we ~~SECURITIES~~extended the expiry date of the Warrants from May 27, 2012 to March 25, 2013.

~~None.~~Issuance to Consultant

~~ITEM~~On 5March 27, 2012, we issued 250,000 shares of our common stock to Mirador Consulting LLC, (“Mirador”) pursuant to the terms of a consulting agreement. ~~OTHER~~Mirador ~~INFORMATION~~represented that it is an “Accredited Investor” as defined under Regulation D of the Act.

~~None~~ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

17None.

ITEM 64. ~~EXHIBITS~~MINE SAFETY DISCLOSURES.

~~The~~Not ~~following exhibits are either provided with this Quarterly Report or are incorporated herein by reference~~applicable.

Exhibit
Number	Description of Exhibits
3.1	Articles of Incorporation.(1)
3.2	Certificate of Change Pursuant to NRS 78.209 increasing the issued and authorized capital of common stock to 350,000,000 shares, par value $0.001 per share.(3)
3.3	Certificate of Change Pursuant to NRS 78.209 increasing the issued and authorized capital of common stock to 400,000,000 shares, par value $0.001 per share.(3)
3.4	Certificate of Amendment to Articles of Incorporation.(3)
3.5	Certificate of Amendment to Articles of Incorporation.(3)
3.6	Bylaws, as amended.(1)
10.1	Technology Acquisition Agreement between Quantum and Canadian Integrated Optics (IOM) Ltd. dated December 16, 2009.(3)
10.2	CEO Employment Agreement between Quantum and Daryl J. Ehrmantraut dated January 1, 2010.(4)
10.3	Investor relations Consulting Services Contract between Quantum and Green Street Capital Partners, LLC dated January 6, 2010. (2)
10.4	Office Space Lease Agreement between Quantum and Santa Fe Business Incubator, Inc. dated January 19, 2010. (2)
10.5	Revolving Line of Credit Agreement between Quantum and Canadian Integrated Optics (IOM) Ltd. dated February 20, 2010.(3)
10.6	Consulting Agreement between Quantum and Caisey Harlingten dated April 19, 2010. (4)
10.7	Office Space Lease Agreement between Quantum and Santa Fe Business Incubator, Inc. dated July 27, 2010. (4)
10.8	Office Space Lease Agreement between Quantum and Guinness Business Center Ltd. dated June 21, 2010 and Addendum dated August 17, 2010. (4)
10.9	Finder’s Fee Agreement between Quantum and 1536476 Alberta Ltd. dated for reference August 30, 2010. (4)
10.10	Investor Relations Consulting Agreement between Quantum and Teatyn Enterprises Inc. dated for reference January 15, 2011.(5)
10.11	2011 Stock Incentive Plan.(6)
10.12	Task Order Agreement between Quantum and SgurrEnergy Ltd. dated April 28, 2011.(7)
10.13	Investor Relations Consulting Agreement between Quantum and John Thornton dated for reference March 1, 2011(8)
10.14	Public Relations Agreement dated June 21, 2011 between the Company and Vorticom Inc.(9)
10.15	Consulting Agreement dated July 18, 2011 between the Company and Advantag Aktiengesellschaft.(10)
10.16	English translation of the Consulting Agreement dated July 18, 2011 between the Company and Advantag Aktiengesellschaft.(10)
10.17	Consulting Agreement dated for reference July 8, 2011 between the Company and Quorum Capital Corporation.(11)
10.18	Executive Services Agreement dated for reference August 8, 2011 between the Company, Team Solar BV and Steven Pleging(12)

18ITEM 5. OTHER INFORMATION.

Exhibit
Number	Description of Exhibits
10.19	Employment Agreement dated effective September 1, 2011 between the Company and Stella Guo.(3)
10.20	Release Agreement dated October 5, 2011 between the Company and Quorum Capital Corporation.
10.21	Investor Relations Consulting Agreement dated December 1, 2011 between the Company and Pristine Capital Corp.(14)
10.22	Consulting Agreement dated December 1, 2011 between the Company and Mirador Consulting LLC.(14)
14.1	Code of Ethics.(3)
31.1	Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
99.1	Audit Committee Charter.(3)
101.INS	XBRL Instance Document.
101.SCH	XBRL Taxonomy Extension Schema.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase.
101.DEF	XBRL Taxonomy Extension Definition Linkbase.
101.LAB	XBRL Taxonomy Extension Label Linkbase.
101.PRE	XBRL Taxonomy Extension Presentation Linkbase.

None.

(1)	Previously filed as an exhibit to our Registration Statement on Form S-1 originally filed with the SEC on September 21, 2004.
(2)	Previously filed as an exhibit to our Quarterly Report on Form 10-Q for the period ended December 31, 2009 filed with the SEC on February 17, 2010.
(3)	Previously filed as an exhibit to our Quarterly Report of Form 10-Q for the period ended March 31, 2010 filed with the SEC on May 17, 2010.
(4)	Previously filed as an exhibit to our Annual Report on Form 10-K for the year ended June 30, 2010 filed with the SEC on September 13, 2010.
(5)	Previously filed as an exhibit to our Current Report on Form 8-K filed with the SEC on February 3, 2011.
(6)	Previously filed as an exhibit to our Current Report on Form 8-K filed with the SEC on March 4, 2011.
(7)	Previously filed as an exhibit to our Current Report on Form 8-K filed with the SEC on May 3, 2011.
(8)	Previously filed as an exhibit to our Quarterly Report of Form 10-Q for the period ended March 31, 2011 filed with the SEC on May 10, 2010.
(9)	Previously filed as an exhibit to our Current Report on Form 8-K filed with the SEC on June 27, 2011.
(10)	Previously filed as an exhibit to our Current Report on Form 8-K filed with the SEC on July 20, 2011.
(11)	Previously filed as an exhibit to our Current Report on Form 8-K filed with the SEC on August 11, 2011.
(12)	Previously filed as an exhibit to our Current Report on Form 8-K filed with the SEC on September 1, 2011.
(13)	Previously filed as an exhibit to our Annual Report on Form 10-K filed with the SEC on September 13, 2011.
(14)	Previously filed as an exhibit to our Current Report on Form 8-K filed with the SEC on December 7, 2011.

19ITEM 6. EXHIBITS.

~~SIGNATURES~~The following exhibits are either provided with this Quarterly Report or are incorporated herein by reference.

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.

Exhibit
Number	Description of Exhibits
3.1	Articles of Incorporation.⁽¹⁾
3.2	Certificate of Change Pursuant to NRS 78.209 increasing the issued and authorized capital of common stock to 350,000,000 shares, par value $0.001 per share.⁽³⁾
3.3	Certificate of Change Pursuant to NRS 78.209 increasing the issued and authorized capital of common stock to 400,000,000 shares, par value $0.001 per share.⁽³⁾
3.4	Certificate of Amendment to Articles of Incorporation.⁽³⁾
3.5	Certificate of Amendment to Articles of Incorporation.⁽³⁾
3.6	Bylaws, as amended.⁽¹⁾
10.1	Technology Acquisition Agreement between Quantum and Canadian Integrated Optics (IOM) Ltd. dated December 16, 2009.⁽³⁾
10.2	CEO Employment Agreement between Quantum and Daryl J. Ehrmantraut dated January 1, 2010.⁽⁴⁾
10.3	Investor relations Consulting Services Contract between Quantum and Green Street Capital Partners, LLC dated January 6, 2010. ⁽²⁾
10.4	Office Space Lease Agreement between Quantum and Santa Fe Business Incubator, Inc. dated January 19, 2010. ⁽²⁾
10.5	Revolving Line of Credit Agreement between Quantum and Canadian Integrated Optics (IOM) Ltd. dated February 20, 2010.⁽³⁾
10.6	Consulting Agreement between Quantum and Caisey Harlingten dated April 19, 2010. ⁽⁴⁾
10.7	Office Space Lease Agreement between Quantum and Santa Fe Business Incubator, Inc. dated July 27, 2010. ⁽⁴⁾
10.8	Office Space Lease Agreement between Quantum and Guinness Business Center Ltd. dated June 21, 2010 and Addendum dated August 17, 2010. ⁽⁴⁾
10.9	Finder’s Fee Agreement between Quantum and 1536476 Alberta Ltd. dated for reference August 30, 2010. ⁽⁴⁾
10.10	Investor Relations Consulting Agreement between Quantum and Teatyn Enterprises Inc. dated for reference January 15, 2011.⁽⁵⁾
10.11	2011 Stock Incentive Plan.⁽⁶⁾
10.12	Task Order Agreement between Quantum and SgurrEnergy Ltd. dated April 28, 2011.⁽⁷⁾
10.13	Investor Relations Consulting Agreement between Quantum and John Thornton dated for reference March 1, 2011⁽⁸⁾
10.14	Public Relations Agreement dated June 21, 2011 between the Company and Vorticom Inc.⁽⁹⁾
10.15	Consulting Agreement dated July 18, 2011 between the Company and Advantag Aktiengesellschaft.⁽¹⁰⁾
10.16	English translation of the Consulting Agreement dated July 18, 2011 between the Company and Advantag Aktiengesellschaft.⁽¹⁰⁾
10.17	Consulting Agreement dated for reference July 8, 2011 between the Company and Quorum Capital Corporation.⁽¹¹⁾
10.18	Executive Services Agreement dated for reference August 8, 2011 between the Company, Team Solar BV and Steven Pleging⁽¹²⁾

			QUANTUM SOLAR POWER CORP.
Dated:	February 7, 2012	By:	/s/ Steven Pleging
			STEVEN PLEGING
			Chief Executive Officer and President
			(Principal Executive Officer)
Dated:	February 7, 2012	By:	/s/ Graham R. Hughes
			GRAHAM R. HUGHES
			Chief Financial Officer, Secretary and Treasurer
			(Principal Accounting Officer)

Exhibit
Number	Description of Exhibits
10.19	Employment Agreement dated effective September 1, 2011 between the Company and Stella Guo.⁽³⁾
10.20	Release Agreement dated October 5, 2011 between the Company and Quorum Capital Corporation.⁽¹⁴⁾
10.21	Investor Relations Consulting Agreement dated December 1, 2011 between the Company and Pristine Capital Corp.⁽¹⁵⁾
10.22	Consulting Agreement dated December 1, 2011 between the Company and Mirador Consulting LLC.⁽¹⁵⁾
14.1	Code of Ethics.⁽³⁾
31.1	Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
99.1	Audit Committee Charter.⁽³⁾
101.INS	XBRL Instance Document.
101.SCH	XBRL Taxonomy Extension Schema.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase.
101.DEF	XBRL Taxonomy Extension Definition Linkbase.
101.LAB	XBRL Taxonomy Extension Label Linkbase.
101.PRE	XBRL Taxonomy Extension Presentation Linkbase.

(1)	Previously filed as an exhibit to our Registration Statement on Form S-1 originally filed with the SEC on September 21, 2004.
(2)	Previously filed as an exhibit to our Quarterly Report on Form 10-Q for the period ended December 31, 2009 filed with the SEC on February 17, 2010.
(3)	Previously filed as an exhibit to our Quarterly Report of Form 10-Q for the period ended March 31, 2010 filed with the SEC on May 17, 2010.
(4)	Previously filed as an exhibit to our Annual Report on Form 10-K for the year ended June 30, 2010 filed with the SEC on September 13, 2010.
(5)	Previously filed as an exhibit to our Current Report on Form 8-K filed with the SEC on February 3, 2011.
(6)	Previously filed as an exhibit to our Current Report on Form 8-K filed with the SEC on March 4, 2011.
(7)	Previously filed as an exhibit to our Current Report on Form 8-K filed with the SEC on May 3, 2011.
(8)	Previously filed as an exhibit to our Quarterly Report of Form 10-Q for the period ended March 31, 2011 filed with the SEC on May 10, 2010.
(9)	Previously filed as an exhibit to our Current Report on Form 8-K filed with the SEC on June 27, 2011.
(10)	Previously filed as an exhibit to our Current Report on Form 8-K filed with the SEC on July 20, 2011.
(11)	Previously filed as an exhibit to our Current Report on Form 8-K filed with the SEC on August 11, 2011.
(12)	Previously filed as an exhibit to our Current Report on Form 8-K filed with the SEC on September 1, 2011.
(13)	Previously filed as an exhibit to our Annual Report on Form 10-K filed with the SEC on September 13, 2011.
(14)	Previously filed as an exhibit to our Quarterly Report on Form 10-Q filed with the SEC on November 8, 2011.
(15)	Previously filed as an exhibit to our Current Report on Form 8-K filed with the SEC on December 7, 2011.

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.

			QUANTUM SOLAR POWER CORP.



Dated:	May 14, 2012	By:	/s/ Andras Pattantyus-Abraham
			ANDRAS PATTANTYUS-ABRAHAM
			Chief Executive Officer, President and Chief
			Technology Officer
			(Principal Executive Officer)




Dated:	May 14, 2012	By:	/s/ Graham R. Hughes
			GRAHAM R. HUGHES
			Chief Financial Officer, Secretary and Treasurer
			(Principal Accounting Officer)

Filing Compare · QUANTUM SOLAR POWER CORP.