UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

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

For the quarterly period ended ~~September~~ 30March 31, ~~2017~~2018

o☐ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

ENERGY & TECHNOLOGY, CORP.

(Exact name of registrant as specified in Charter)

DELAWARE

333-143215

26-0198662

(State or other jurisdiction of

incorporation or organization)

(Commission File No.)

(IRS Employee
Identification No.)

Petroleum Towers, Suite 530

3639 Ambassador Caffery Blvd

Mail to: P.O. Box 52523

Lafayette, LA 70505

(Address of Principal Executive Offices)

+ 1-337- 984-2000

(Issuer Telephone number)

+ 1-337- 988-1777

Issuer Fax Number

www.engt.com

www.energyntechnology.com

Securities registered under Section 12(b) of the Exchange Act:	None.

Securities registered under Section 12(g) of the Exchange Act:	Common stock, par value $0.001 per share.
	(Title of class)

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 the Securities Act.

Yes o☐ No x ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

Yes o☐ No x☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding twelve months (or 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. ~~Yesx~~Yes ☒ No o☐

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

Large accelerated filer ¨☐ Accelerated filer ¨☐ Non-accelerated filer ¨☐ Smaller reporting company ☒ (Do not check if a smaller reporting company) ~~Smaller reporting company x~~ Emerging growth company ¨☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨☐

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

According to the Company’s transfer agent of record, Olde Monmoth Stock Transfer Agent’s latest records, the number of shares outstanding of each of the Company’s classes of common equity, as of the end of the fiscal quarter covered by this report, is 165,560,766 shares of common stock. The company has issued no stock since that date.

ENERGY & TECHNOLOGY, CORP.

FORM 10-Q

~~September~~March 3031, ~~2017~~2018

INDEX

PART I — FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

Item 1.	Financial Statements	1
Item 2.	Management’s Discussion and Analysis of Financial Condition	10
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	12
Item 4.	Control and Procedures	12

PART II—OTHER INFORMATION

Item 1.	Legal Proceedings	13
Item 2.	Risk Factors	13
Item 3.	Unregistered Sales of Equity Securities and Use of Proceeds	13
Item 4.	Defaults Upon Senior Securities	13
Item 5.	Submission of Matters to a Vote of Security Holders	13
Item 6.	Other Information	13
Item 7.	Exhibits and Reports on Form 8-K	13

SIGNATURE		14

Item 1.	Financial Statements	1
Item 2.	Management’s Discussion and Analysis of Financial Condition	11
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	15
Item 4.	Control and Procedures	15
PART II — OTHER INFORMATION
Item 1.	Legal Proceedings	16
Item 2.	Risk Factors	16
Item 3.	Unregistered Sales of Equity Securities and Use of Proceeds	16
Item 4.	Defaults Upon Senior Securities	16
Item 5.	Submission of Matters to a Vote of Security Holders	16
Item 6.	Other Information	16
Item 7.	Exhibits and Reports on Form 8-K	16
SIGNATURE		17

INTRODUCTORY NOTE

This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 about Energy & Technology, Corp. (the “Company”) and our subsidiaries, Technical Industries, Inc. (TII), Energy Pipe, LLC (EP), (a variable interest entity), and Energy Technology Manufacturing & Threading, LLC (ETMT), (a variable interest entity), that are subject to risks and uncertainties. Forward-looking statements include information concerning future financial performance, business strategy, projected plans and objectives. Statements preceded by, followed by or that otherwise include the words “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “may increase,” “may fluctuate” and similar expressions of future or conditional verbs such as “will,” “should,” “would,” and “could” are generally forward-looking in nature and not historical facts. Actual results may differ materially from those projected, implied, anticipated or expected in the forward-looking statements. Readers of this quarterly report should not rely solely on the forward-looking statements and should consider all uncertainties and risks throughout this report. The statements are representative only as of the date they are made. The Company, Technical Industries, Inc. (TII), Energy Pipe, LLC (EP), and Energy Technology Manufacturing & Threading, LLC (ETMT), (sometimes referred to herein on a consolidated basis as the Company, we, us, or similar phrasing) undertakes no obligation to update any forward-looking statement.

These forward-looking statements, implicitly and explicitly, include the assumptions underlying the statements and other information with respect to the Company's beliefs, plans, objectives, goals, expectations, anticipations, estimates, financial condition, results of operations, future performance and business, including management's expectations and estimates with respect to revenues, expenses, return on equity, return on assets, efficiency ratio, asset quality and other financial data and capital and performance ratios.

Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, these statements involve risks and uncertainties that are subject to change based on various important factors, some of which are beyond the control of the Company. The following factors, among others, could cause the Company's results or financial performance to differ materially from its goals, plans, objectives, intentions, expectations and other forward-looking statements:

● general economic and industry conditions; ● our capital requirements and dependence on the sale of our equity securities; ● the liquidity of the Company’s common stock will be affected by the lack of a trading market; ● industry competition; ● shortages in availability of qualified personnel; ● legal and financial implications of unexpected catastrophic events; ● regulatory or legislative changes effecting the industries we serve; and ● reliance on, and the ability to attract, key personnel.

● our capital requirements and dependence on the sale of our equity securities;

● the liquidity of the Company’s common stock will be affected by the lack of a trading market;

● industry competition;

● shortages in availability of qualified personnel;

● legal and financial implications of unexpected catastrophic events;

● regulatory or legislative changes effecting the industries we serve; and

● reliance on, and the ability to attract, key personnel.

For a discussion of these and other risks and uncertainties that could cause actual results to differ from those contained in the forward-looking statements, see “Risk Factors” in the Company’s S-1 Report filed with the SEC, which is available on the SEC’s website at www.sec.gov. All forward-looking statements are qualified in their entirety by this cautionary statement, and the Company undertakes no obligation to revise or update this Quarterly Report on Form 10-Q to reflect events or circumstances after the date hereof. New factors emerge from time to time, and it is not possible for us to predict which factors, if any, will arise. In addition, the Company cannot assess the impact of each factor on the Company’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

PART I. Financial Information

ITEM 1. Financial Statements

ENERGY & TECHNOLOGY, CORP.

Consolidated Balance Sheets

As of ~~September~~March 3031, ~~2017~~2018 and December 31, ~~2016~~2017

	September 30,			December 31,
	March 31,			December 31,
	2017			2016
	2018			2017
	(Unaudited)			(Unaudited)
Assets
Current Assets
Cash and Cash Equivalents	$	~~165~~110,~~407~~351		$	~~158~~36,~~068~~168
Investments		2,~~889~~332			42,~~521~~289
Accounts Receivable
Trade, Net		~~398~~372,~~023~~059			~~244~~273,~~373~~183
Inventory, Net		903,373			1903,~~008,121~~373
Prepaid Expenses		2374,~~016~~300			750,~~393~~835
Other Current Assets		72164,~~445~~010			33126,~~713~~168
Total Current Assets		1,~~565~~626,~~153~~424			1,~~456~~392,~~188~~016
Property and Equipment, Net
Held for Operations, Net		2,~~191~~060,~~828~~551			2,~~426~~099,~~044~~840
Construction in Progress		350,418			~~356~~350,~~667~~418
		2,542,246			2,782,710
		2,410,969			2,450,258
Total Assets	$	4,~~107~~037,~~400~~393		$	43,~~238~~842,~~898~~274
Liabilities and Stockholders' Equity
Current Liabilities
Accounts Payable	$	~~865~~860,~~230~~943		$	~~614~~978,~~585~~740
Accrued Liabilities		72257,~~351~~212			~~172~~82,~~142~~035
Accrued Rent		2,~~370~~445,000			2,~~257~~407,500
Current Maturities of Notes Payable		4,~~390~~476,~~304~~442			4,~~270~~425,~~179~~147
Due to Affiliates		~~834~~841,~~571~~709			~~515~~858,~~385~~545
Income Taxes Payable		25,287			25,287
Total Current Liabilities		8,~~557~~906,~~743~~593			78,~~855~~777,~~079~~254
Long-Term Liabilities
Notes Payable		1510,~~342~~922			2213,~~057~~142
Total Liabilities	$	8,~~573~~917,~~085~~516		$	78,~~877~~790,~~136~~396
Stockholders' Equity
Preferred Stock - $.001 Par Value; 10,000,000 Shares Authorized, None Issued		-			-
Common Stock - $.001 Par Value; 250,000,000 Shares Authorized, 169,198,117 Shares and 169,186,117 shares Issued at September 30, 2017 and December 31, 2016, respectively		169,198			169,198
Common Stock - $.001 Par Value; 250,000,000 Shares Authorized, 169,198,117
Shares Issued at March 31, 2018 and December 31, 2017, respectively		169,198			169,198
Paid-In Capital		4,209,592			4,209,592
Treasury Stock, at cost (3,637,351 Shares)		(4,076,441	)		(4,076,441	)
Retained Earnings		(45,~~768~~182,~~034~~472	)		(35,~~940~~250,~~587~~470	)
Total Stockholders' Equity		(4,~~465~~880,~~685~~122	)		(34,~~638~~948,~~237~~121	)
Total Liabilities and Stockholders' Equity	$	4,~~107~~037,~~400~~393		$	43,~~238~~842,~~898~~274

See notes to consolidated financial statements.

ENERGY & TECHNOLOGY, CORP.

Consolidated Statements of Operations (Unaudited)

For the Three Months Ended ~~September~~March 3031, ~~2017~~ 2018 and ~~September~~March 3031, ~~2016~~2017

For the Nine Months Ended September 30, 2017 and September 30, 2016

	Three Months Ended
	March 31,			March 31,
	2018			2017


Revenues	$	793,698		$	544,654
Cost of Revenues
Materials and Supplies		56,374			67,241
Contractor		121,557			113,747
Depreciation		19,696			64,463
Employees and Related Costs		138,098			102,906
Repairs and Maintenance		30,166			28,335
Insurance		8,259			16,996
Other Costs		128,360			106,578

Total Cost of Revenues		502,510			500,265

Gross Profit		291,188			44,389

Operating Expenses
Selling, General, and Administration		221,313			318,136
Depreciation		27,054			27,525

Total Operating Expenses		248,368			345,662

Income (Loss) from Operations		42,821			(301,273	)

Other Income (Expense)
Income from Insurance Claim		78,281
Investment Income (Expense)		55			(726	)
Interest Expense		(53,159	)		(5,388	)

Total Other Income (Expense)		25,177			(6,114	)

Loss Before Provision for Income Taxes		67,998			(307,387	)

Benefit for Income Taxes		0			0

Loss	$	67,998		$	(307,387	)

Loss per Share - Basic	$	NM		$	NM

Loss per Share - Diluted	$	NM		$	NM

	Three Months Ended						Nine Months Ended
	September 30,			September 30,			September 30,			September 30,
	2017			2016			2017			2016
Revenues	$	733,091		$	429,828		$	2,112,773		$	1,286,190
Cost of Revenues
Materials and Supplies		72,960			27,189			262,008			63,641
Subcontract Labor		191,767			97,838			475,575			251,358
Depreciation		64,463			64,347			193,389			205,107
Employees and Related Costs		102,501			86,453			325,448			260,191
Repairs and Maintenance		74,097			8,807			150,504			16,208
Insurance		13,666			21,224			45,928			61,489
Other Costs		113,340			116,436			374,299			296,978
Patent Amortization
Total Cost of Revenues		632,795			422,294			1,827,151			1,154,972
Gross Profit		100,296			7,534			285,622			131,218
Operating Expenses
Selling, General, and Administration		376,812			305,683			1,056,683			760,449
Depreciation		27,525			27,525			82,576			82,975
Total Operating Expenses		404,337			333,208			1,139,259			843,424
Loss from Operations		(304,042	)		(325,674	)		(853,637	)		(712,206	)
Other Income (Expense)
Income from Claim Settlement		61,397			-			61,397			-
Income from Lawsuit Settlement		-			-			105,816
Investment Income (Expense)		(53	)		(423	)		(1,514	)		(2,182	)
Interest Expense		(127,809	)		(290,051	)		(139,509	)		(298,203	)
Total Other Income (Expense)		(66,465	)		(290,474	)		26,190			(300,385	)
Loss Before Provision for Income Taxes		(370,506	)		(616,148	)		(827,447	)		(1,012,591	)
Benefit for Income Taxes		0			0			0			0
Income/(Loss)	$	(370,506	)	$	(616,148	)	$	(827,447	)	$	(1,012,591	)
Loss per Share - Basic	$	NM		$	NM		$	NM		$	NM
Loss per Share - Diluted	$	NM		$	NM		$	NM		$	NM

See notes to consolidated financial statements.

ENERGY & TECHNOLOGY CORP.

Consolidated Statements of Changes in Stockholders' Equity

For ~~the~~ ~~Years~~theyears ~~Ended~~ended ended December 31, ~~2016~~ 2018 and ~~the~~December ~~Nine Months Ended September 30~~31, 2017

											Additional					Total
	Common Stock				Treasury Stock						Additional Paid-In		Retained			Total Stockholders'
	Common Stock				Treasury Stock						Paid-In		Retained			Stockholders'
	Shares		Amount		Shares			Amount			Capital		Earnings			Equity
Balance at January 1, 2016		169,186,117	$	169,186		(3,637,351	)	$	(4,076,441	)	$	4,204,564	$	(2,650,031	)	$	(2,352,722	)
Balance at January 1, 2017		169,198,117	$	169,198		(3,637,351	)	$	(4,076,441	)	$	4,209,591		(3,940,586	)	$	(3,638,238	)
Stock Issued		12,000	$	12								5,027				$	5,039
Net (Loss)		-		-					-			-		(1,309,884	)	$	(1,309,884	)
Net (Loss)		-		-					-			-		(1,290,555	)	$	(1,290,555	)
Balance at December 31, 2017		169,198,117	$	169,198		(3,637,351	)	$	(4,076,441	)	$	4,209,591	$	(5,250,470	)	$	(4,948,121	)
Balance at December 31, 2016		169,198,117	$	169,198		(3,637,351	)	$	(4,076,441	)	$	4,209,591	$	(3,940,586	)	$	(3,638,238	)
Balance at January 1, 2018		169,198,117		169,198		(3,637,351	)		(4,076,441	)		4,209,591		(5,250,470	)		(4,948,121	)
Balance at January 1, 2017		169,198,117		169,198		(3,637,351	)		(4,076,441	)		4,209,591		(3,940,586	)		(3,638,238	)
Net Income (Loss)		-		-								-		67,998		$	67,998
Net (Loss)		-		-								-		(827,447	)	$	(827,447	)
Balance at December 31, 2018		169,198,117	$	169,198	$	(3,637,351	)	$	(4,076,441	)	$	4,209,591	$	(5,182,472	)	$	(4,880,122	)
Balance at September 30, 2017		169,198,117	$	169,198	$	(3,637,351	)	$	(4,076,441	)	$	4,209,591	$	(4,768,033	)	$	(4,465,685	)

See notes to consolidated financial statements.

ENERGY & TECHNOLOGY, CORP.

Consolidated Statements of Cash Flows

For the ~~Nine~~Three Months Ended ~~September~~March 3031, ~~2017~~ 2018 and ~~2016~~2017

	Nine Months Ended
	Three Months Ended
	September 30,			September 30,
	March 31,			March 31,
	2017			2016
	2018			2017
Cash Flows from Operating Activities
Net Income (Loss)	$	~~(827~~67,~~447~~998	)	$	(1307,~~012,591~~388	)
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities
Adjustments to Reconcile Net Income to Net Cash Provided by
Depreciation		275,965			288,082
Operating Activities
Fair Value of Investments		1,632			43,685
Depreciation		46,750			91,988
Accrued Interest		118,057			284,253
Change in FMV of Investments	$	(43	)		757
Changes in Assets and Liabilities
Trade Receivables		(~~153~~98,~~651~~876	)		(48346,~~342~~777	)
Inventory		~~104,748~~-			-31,597
Prepaid Expenses		(1523,~~623~~465	)		(724,~~845~~257	)
Accounts Payable		~~250~~(117,~~643~~797	)		3197,~~218~~455
Accrued Payroll and Payroll Liabilities		(99,791	)		(27,781	)
Accrued Liabilities		175,177			33,132
Accrued Rent		~~112~~37,500			~~112~~37,500
Net Cash Provided by Operating Activities		~~(232~~87,~~967~~244	)		(~~336~~385,~~821~~993	)
Cash Flows from Investing Activities
Other Assets		(3837,~~732~~842	)		~~171~~(11,~~435~~904	)
Patent Cost		-			(26,061	)
Purchase of Property		(7,461	)
Purchase of Property and Equipment		(35,501	)		(60,591	)
Net Cash Provided by (Used in) Investing Activities		(45,303	)		(11,904	)
Net Cash Provided by (Used in) Investing Activities		(74,233	)		84,783
Cash Flows from Financing Activities
Issuance of Stock		-
Borrowings (Principal Repayments) to Affiliates		(16,833	)		256,277
Borrowings (Principal Repayments) to Affiliates		319,186			310,417
Borrowings (Principal Repayments) on Notes Payable		49,075			12,917
Borrowings (Principal Repayments) on Notes Payable		(4,647	)		(12,961	)
Net Cash Provided by (Used in) Financing Activities		32,242			269,194
Net Cash Provided by (Used in) Financing Activities		314,539			297,456
Net Increase (Decrease) in Cash and Cash Equivalents		74,183			(128,703	)
Net Increase (Decrease) in Cash and Cash Equivalents		7,339			45,418
Cash and Cash Equivalents, Beginning of Year		36,168			158,068
Cash and Cash Equivalents, Beginning of Year		158,068			38,981
Cash and Cash Equivalents, End of Year	$	110,351		$	29,365
Cash and Cash Equivalents, End of Year		165,407			84,399
Supplemental Disclosure of Cash Flow Information
Cash Paid During the Period for Interest	$	2113,~~452~~807		$	5,~~577~~388

See notes to consolidated financial statements.

ENERGY &TECHNOLOGY, CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.

Note 1.

Organization

This Financial statement is unaudited.

Energy and Technology, Corp. (the Company) was formed November 29, 2006 under the laws of the State of Delaware in order to acquire and to take over the assets and business of Technical Industries, Inc. (TII). On that date, the Company issued 125,000,000 shares of common stock to American Interest, LLC, in exchange for founder services rendered. The fair value of these services was considered immaterial, and no amounts were recognized in the financial statements. At the time the shares were issued to American Interest, LLC, the Company had no assets, operations, or cash flows. As such, the stock had no value at the time the Company was established. The par value was arbitrarily established in order to comply with the State of Delaware laws. In order to reflect the par value of the shares issued, the Company recognized a discount on capital stock as a contra-equity account within the equity section of the consolidated balance sheets.

On January 3, 2007, the Company entered into a Stock Exchange Agreement and Share Exchange (the Agreement) whereby the sole shareholder of TII exchanged all of the outstanding shares of TII to the Company in exchange for 50,000,000 shares of Company stock. Accordingly, TII became a wholly-owned subsidiary of the Company. The assets acquired and liabilities assumed were recorded at the carrying value to TII since TII and the Company were under common control prior to the acquisition.

TII specializes in the non-destructive testing of structures, vessels, oilfield equipment and pipe, including magnetic and ultrasonic testing, utilizing the latest technologies. These technologies enable TII to (i) provide detailed information to customers regarding each pipe tested, and (ii) reach energy reserves present technology cannot reach without extra cost to the oil and gas companies. Because of the intense scrutiny applied to each section of pipe, TII is able to generate data which allows the pipe to be used in the most extreme conditions, and has been proven especially useful in critical and deep water drilling operations in the Gulf of Mexico.

On August 29, 2009, the Company effected a name change from Technical Industries & Energy Corp. to Energy & Technology, Corp. to better reflect the nature of the Company’s business.

Note 2.

Summary of Significant Accounting Policies

Basis of Presentation and Consolidation

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Technical Industries, Inc., the accounts of Energy Pipe, LLC (a variable interest entity), and the accounts of Energy Technology Manufacturing & Threading, LLC (a variable interest entity). All significant intercompany balances and transactions have been eliminated.

The consolidated financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of financial information for the interim periods presented. These adjustments are of a normal recurring nature and include appropriate estimated provisions.

Basis of Accounting

Assets, liabilities, revenues and expenses are recognized on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect amounts reported in the financial statements. Accordingly, actual results could differ from those estimates due to information that becomes available subsequent to the issuance of the financial statements or for other reasons.

Revenue Recognition

Revenue for inspection services and manufacturing and threading services is recognized upon completion of the services rendered. Revenue for the sales of pipe is recognized when pipe is delivered and the customer takes ownership and assumes the risks of loss, collection of the relevant receivable is probable, persuasive evidence of an arrangement exists, and the sales price is fixed or determinable.

ENERGY & TECHNOLOGY, CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.

Note 2. Summary of Significant Accounting Policies (Continued)

Trade Receivables

Trade accounts receivable are carried at their estimated collectible amounts. Trade credit is generally extended on a short-term basis; thus receivables do not bear interest, although a finance charge may be applied to amounts past due. Trade accounts receivable are periodically evaluated for collectability based on past credit.

Allowance for Doubtful Accounts

The company calculates the allowance based on the history with customers and their current financial condition. Provisions of uncollectible amounts are determined based on management’s estimate of collectability. Allowance for doubtful accounts was $3,078 and $3,078 at ~~September~~March 3031, ~~2017~~2018 and at December 31, ~~2016~~2017, respectively.

Inventory

Inventory is stated at the lower of cost determined by the specific identification method or market. At ~~September~~March 3031, ~~2017~~2018 and at at December 31, ~~2016~~2017, inventory consisted of pipe available for sale.

ENERGY & TECHNOLOGY, CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.

Note 2.

Summary of Significant Accounting Policies (Continued)

Property and Equipment

Property and equipment are stated at cost. Expenditures for property and equipment and items that substantially increase the useful lives of existing assets are capitalized at cost and depreciated. Routine expenditures for repairs and maintenance are expensed as incurred. The cost and related accumulated depreciation of property and equipment disposed of are eliminated from the accounts, and any resulting gain or loss is recognized. Depreciation is provided utilizing the straight-line method over the estimated useful lives of the assets capitalized.

Valuation of Long-Lived Assets

In the event facts and circumstances indicate that carrying amounts of long-lived assets may be impaired, the Company evaluates the recoverability of its long-lived assets using the estimated future undiscounted cash flows associated with the asset compared to the asset’s carrying amount to determine if a write-down is required, pursuant to the provisions of Financial Accounting Standards Board (FASB) ASC 360-10-35. Any impairment loss is measured as the difference between the carrying amount and the fair value of the impaired asset.

Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of temporary cash investments and trade receivables. Concentration of credit risk with respect to trade receivables is limited due to the Company’s large number of customers. At the end of the fiscal quarter covered by this report, the balance due from ~~two~~three customers represented ~~53.5~~ 76.4 % of receivables, and sales to three customers represented 7071.62 % of revenues.

The Company maintains cash balances at several financial institutions, and periodically maintains cash in bank accounts in excess of insured limits. The Company has not experienced any losses and does not believe that significant credit risk exists as a result of this practice.

Advertising

The Company charges the costs of advertising to expense as incurred. Advertising expense was $82,~~052~~740 and $51,~~653~~762, for the ~~nine~~three months ended ~~September~~March 3031, ~~2017~~2018 and ~~2016~~2017, respectively.

Cash Flows

For purposes of the consolidated statement of cash flows, the Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents.

Income Taxes

The Company recognizes income taxes in accordance with FASB ASC 740, “Income Taxes” (formerly Statement of Financial Accounting Standards (SFAS) No. 109, Accounting for Income Taxes). ASC 740 uses the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred income taxes are recognized for the tax consequences of “temporary differences” by applying enacted statutory tax rates applicable to future years to the difference between financial statement carrying amounts and the tax basis of existing assets and liabilities. Deferred taxes are also recognized for operating losses and tax credits that are available to offset future income taxes.

ENERGY &TECHNOLOGY, CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.

Note 2. Summary of Significant Accounting Policies (Continued)

When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any.

Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above would be reflected as a liability for unrecognized tax benefits in the consolidated balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest and penalties associated with unrecognized tax benefits would be classified as additional income taxes in the statement of operations.

Emerging Growth Company Critical Accounting Policy Disclosure

The Company qualifies as an “emerging growth company” under the 2012 JOBS Act. Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. As an emerging growth company, the Company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company may elect to take advantage of the benefits of this extended transition period in the future.

Recent Accounting Pronouncements

Management does not expect any impact from the adoption of new accounting pronouncements.

Comprehensive Income

The Company had no components of comprehensive income. Therefore, net income (loss) equals comprehensive income (loss) for the periods presented.

~~Note 3. Patent~~6

On September 4, 2007, the Company was awarded a patent from the United States Patent and Trademark Office pertaining to the development of specialized testing procedures for tubing casing, line pipe, and expandable liners utilized by oil-exploration companies.

In a prior year, the Company’s costs associated with its development of these testing procedures and application for patent have been capitalized and recognized as an asset in the Company’s balance sheet, and was being amortized over 20 years. Audit findings for 2014 resulted in the write off of the Patents and the related Accumulated Amortization due to the fact that they were internally created. The Company has capitalized all legal expenses incurred in the defense of the Patent.

ENERGY &TECHNOLOGY, CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.

Note 3.

Patent

On September 4, 2007, the Company’s chief executive officer was awarded a patent from the United States Patent and Trademark Office pertaining to his development of specialized testing procedures for tubing casing, line pipe, and expandable liners utilized by oil-exploration companies which was subsequently transferred to the Company.

Note 4.

Property and Equipment

Property and equipment consists of the following at ~~September~~March 3031, ~~2017~~2018 and December 31, ~~2016~~2017, respectively:

	2017		2016
Buildings and Improvements	$	3,157,937	$	3,157,937
Equipment		5,~~975~~982,~~208~~669		5,949,208
Autos and Trucks		276,682		260,932
Office Furniture		34,025		34,025
Construction in Progress		350,418		356,667
		9,794,270		9,758,769
		9,801,731		9,758,769
Less: Accumulated Depreciation		-7,~~252~~390,~~024~~763		-67,~~976~~068,~~059~~048
Total	$	2,~~542~~410,~~246~~969	$	2,~~782~~690,~~710~~722

Depreciation expense amounted to $~~275~~46,~~965~~750 and $~~288~~91,~~082~~988 for the ~~nine~~three months ended ~~September~~March 3031, 2017 and 2016, respectively.

Note 5.

Related Party Transactions

Energy & Technology, Corp is a holding company. Its subsidiaries include: Technical Industries, Inc. (NDT Inspection Services, maintenance, and storage are done in this company), Energy Technology Manufacturing & Threading, LLC (threading and manufacturing services are done in this company), and Energy Pipe, LLC (pipe sales are done in this company). All significant intercompany transactions are eliminated in consolidation.

Additionally, St. Charles Real Estate Corp LLC owns the land in Houston, Texas where the Company maintains its pipe inventory, as well as the Houston facility. The Company has a month to month lease for $12,500 with St. Charles Real Estate but is accruing rent instead of paying. As of ~~September~~March 3031, ~~2017~~2018 and December 31, ~~2016~~2017 the total owed is $2,~~370~~445,000 and $2,~~257~~407,500, respectively. St. Charles ~~Real~~ Real Estate Corp LLC is owned by various members of the Sfeir family.

The Company has one balance due American Interest, LLC (AIC) the majority stockholder of the Energy & Technology, Corp.: A note AIC, LLC. purchased from Mustang for the original purchase of the Company which bears interest at 8%. Included in due to affiliates at September 30, 2017 and December 31, 2016 respectively, is ($31,657 ) and $33,732, respectively, in acquisition debts paid by affiliates upon the acquisition of the Company in 1999. The affiliates maintain a lien on the Company’s accounts receivable and equipment to secure this loan. The amounts due to the affiliates have no set terms of repayment and bear interest at 8.00%.

Note 6.

Notes Payable

Notes payable at ~~September~~March 3031, ~~2017~~2018 and December 31, ~~2016~~2017 consist of the following:

	2017		~~2016~~2017
Secured fixed term note of $48,601.50 due November 2020; fixed interest rate of 3.39%		2419,~~258~~838		3022,~~749~~057
Unsecured variable term note of $3,935,217 ; fixed interest rate of 4.0%		4,~~376~~455,~~880~~584		4,~~258~~416,~~823~~232
Secured fixed term note of $31,905.36 due March 2018; fixed interest rate of 5.4%		-		2,664
Secured fixed term note of $22,214 due December 2018; fixed interest rate of 6.95%		11,942		-
Secured fixed term note of $29,374 due November 2017; fixed interest rate of 6.95%		4,509		-
	$	4,487,364	$	4,438,289
	$	4,405,646	$	4,292,236
Less: Current Portion		4,476,442		4,425,147
Less: Current Portion		4,390,304		4,270,179
Long-Term Portion	$	10,922	$	13,142
Long-Term Portion	$	15,342	$	22,057

Following are maturities of long-term debt at December 31, ~~2016~~2017:

Fiscal Year Ending December 31,	Amount
2018		7,352
2019		7,352
2020		73,~~353~~570
Total	$	2210,~~057~~922

8Note 7. Equity

The Company is authorized to issue 250,000,000 shares of common stock at a par value of $.001 per share. The number of shares issued and outstanding are 165,560,766 and 165,560,766 as of March 31, 2018 and December 31, 2017, respectively. The Company is authorized to issue 10,000,000 shares of preferred stock. As of March 31, 2018 and December 31, 2017, there were no shares issued and outstanding. In 2014, the company purchased 3,617,075 shares of common stock now in Treasury.

ENERGY &TECHNOLOGY, CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.

Note 7. Equity

The Company is authorized to issue 250,000,000 shares of common stock at a par value of $.001 per share. The number of shares issued and outstanding are 165,560,766 and 165,560,766 as of September 30, 2017 and December 31, 2016, respectively. The Company issued 12,000 of stock in lieu of services performed on June 30, 2016. The Company is authorized to issue 10,000,000 shares of preferred stock. As of June 30, 2017 and December 31, 2016, there were no shares issued and outstanding. As of the end of the period covered by this report, the company is currently considering trading shares for the $3,935,217 note that is listed in the current liability section noted in Note 6, which was previously reported in error that the deal was consummated.

Note 8.

Earnings per Share

Earnings (loss) per share are calculated in accordance with ASC 260 “Earnings per Share”. The weighted average number of common shares outstanding during each period is used to compute basic earnings (loss) per share. Diluted earnings per share are computed using the weighted average number of shares and potentially dilutive common shares outstanding. Dilutive potential common shares are additional common shares assumed to be exercised. Potentially dilutive common shares consist of stock options and are excluded from the diluted earnings per share computation in periods where the Company has incurred a net loss, as their effect would be considered anti-dilutive.

There were no potentially dilutive common stock equivalents as of the end of the fiscal quarter covered by this report, therefore basic earnings per share equals diluted earnings per share for the fiscal quarter covered by this report. As the Company incurred a net loss during the fiscal quarter covered by this report, the basic and diluted loss per common share is the same amount, as any common stock equivalents would be considered anti-dilutive.

The weighted average common shares outstanding were 165,560,766 and 165,560,766 for the fiscal quarter covered by this report and the year ended December 31, ~~2016~~2017.

Note 9.

Commitments

The Company leases office premises, operating facilities, and equipment under operating leases expiring in various years through 2030. The Company also leases land for operating purposes on a month to month basis.

Note 10.

Litigation and Contingent Liabilities

In the ordinary course of our business, we are, from time to time, subject to various legal proceedings, including matters involving employees, customers, and suppliers. We may enter into discussions regarding settlement of claims or lawsuits, and may enter into settlement agreements, if we believe settlement is in the best interest of our stockholders. We do not believe that any existing legal proceedings or settlements, individually or in the aggregate, will have a material effect on our financial condition, results of operations, or liquidity.

Note 11.

Major Customers

For the end of the fiscal quarter covered by this report, the Company had three customers which generated revenues in excess of 10% of the Company’s total revenues. Revenues for these customers were approximately 7078.602% of total revenues~~, and total balance due from these customers at the end of the fiscal quarter covered by this report was $249,909~~.

Note 12.

Estimated Fair Value of Financial Instruments

The following disclosure is made in accordance with the requirements of FASB ASC 825, Financial Instruments. Financial instruments are defined as cash and contractual rights and obligations that require settlement, directly or indirectly, in cash. In cases where quoted market prices are not available, fair values have been estimated using the present value of future cash flows or other valuation techniques.

The result of these techniques are highly sensitive to the assumptions used, such as those concerning appropriate discount rates and estimates of future cash flows, which require considerable judgment. Accordingly, estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current settlement of the underlying financial instruments. ASC 825 excludes certain financial instruments and all non-financial instruments from its disclosure requirements. These disclosures should not be interpreted as representing an aggregate measure of the underlying value of the Company.

9While these estimates of fair value are based on management's judgment of appropriate factors, there is no assurance that if the Company had disposed of such items at March 31, 2018 or December 31, 2017, the estimated fair values would have been achieved. Market values may differ depending on various circumstances not taken into consideration in this methodology. The estimated fair values at March 31, 2017 and December 31, 2016, should not necessarily be considered to apply at subsequent dates.

	March 31,				December 31,
	2018				2017
	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
Financial Assets
Investments	$	2,332	$	2,332	$	2,289	$	2,289

	$	2,332	$	2,332	$	2,289	$	2,289

ENERGY &TECHNOLOGY, CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.

Note 12.

Estimated Fair Value of Financial Instruments (Continued)

While these estimates of fair value are based on management's judgment of appropriate factors, there is no assurance that if the Company had disposed of such items at September 30, 2017 or December 31, 2016, the estimated fair values would have been achieved. Market values may differ depending on various circumstances not taken into consideration in this methodology. The estimated fair values at September, 2017 and December 31, 2016, should not necessarily be considered to apply at subsequent dates.

	September 30,				December 31,
	2017				2016
	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
Financial Assets
Investments	$	2,888	$	2,888	$	4,520	$	4,520
	$	2,888	$	2,888	$	4,520	$	4,520

The following methods and assumptions were used by the Company in estimating fair values for financial instruments:

Cash and cash equivalents: The carrying amount reported in the balance sheet approximates fair value.

Notes Payable: The fair value of notes payable approximates the carrying amount reported in the balance sheet.

Due to Affiliates: The carrying amount of due to affiliates approximates fair values.

Note 13.

Subsequent Events

In accordance with the subsequent events topic of the FASB ASC, Topic No. 855, Subsequent Events, the Company evaluates events and transactions that occur after the balance sheet date for potential recognition in the financial statements. The effects of all subsequent events that provide additional evidence of conditions that existed at the balance sheet date are recognized in the financial statements at the end of the fiscal quarter covered by this report. In preparing these financial statements, the Company evaluated the events and transactions through the date these financial statements were issued.

109

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

General

Headquartered in Lafayette, Louisiana, with production facilities in Houston, Texas and Abbeville, Louisiana, Energy & Technology, Corp. provides non-destructive testing (NDT) services, OCTG and oilfield pipe sales, service and storage, and rig and equipment sales. Originally founded on May 11, 1971 as an inspection company, Energy & Technology, Corp. currently serves customers throughout the oil patch of Louisiana and Texas as well as in Canada, Mexico, and in the Gulf of Mexico. The Company’s customer base of over 130 accounts consists of major oil companies, steel mills, material suppliers, drilling companies, tool rental companies, and natural gas storage operators. As noted in Note 11, the company is dependent on a few customers, mainly from the U.S. Government and D.O.T. sub-contracts, due to the oil industry decline. The company’s customers base has slowed down and many closed or bankrupt. Due to the nature of its technology, the Company maintains competitive advantages in offshore deep water and other onshore critical projects. In order to increase revenue and add services andproduct in the current depressed energy industry, the company is now involved in project management, contracting, engineering, manufacturing, procurement, rentals, equipment and supplies providers, coating, storage, maintenance, drilling completion, and logistics.

Technical Industries, Inc., a wholly owned subsidiary of Energy & Technology, Corp., manufactures its own proprietary NDT equipment. The Company’s patented ultrasonic systems have some of the largest OD and pipe length capabilities in the industry and the deepest penetration capability offered for wall thickness measurement. The Company holds patents on certain exclusive inspection technology that allows oil and gas companies to use their current drill strings and other equipment to reach depths that were previously unreachable. This technology can make wells safer, increase the success rate for critical wells, and greatly reduce the chances of a failure. As the industry moves to ever deeper reserves and makes advances in horizontal drilling, oil and gas wells are becoming more and more expensive and difficult to drill, making this technology more of a necessity.

In the oilfield pipe sales and storage segment, Energy & Technology, Corp utilizes a state-of-the-art web based inventory management system that allows each client to view and track projects during processing, to locate inventory throughout the plant, and access reports, bill of ladings, tally sheets, logs and other required information.

Key Ongoing Operational Processes:

Update ISO Certification

Energy & Technology, Corp. recognizes that quality is every bit as important as price and prompt service. This is even truer of the Company’s typical client, who often contracts for services that other companies are not able to provide. In response to our clients’ requirements, the Company has obtained the latest ISO: 9001 certification by Moody’s, recognized in the industry as representing the highest quality control available. As the Company’s business lines are very synergistic, management feels that it can leverage this dominant position to increase share in the markets in which it competes, and likely more in the critical service arena.

Increased Sales and Marketing Effort

Energy & Technology, Corp. hired three qualified personnel in order to help the marketing and sales effort. New business was generated from referrals, technical sessions given to oil and gas and industry related companies, the Company website, and through the use of a marketing company on a limited basis. Recently, several new deep water well permits were issued in the Gulf of Mexico. As a result, ENGT has experienced significant new interest from major oil and gas companies - including site visits and evaluations - for its VisonArray™ deep water and critical well technologies, and ENGT Manufacturing facilities. Currently, there are several employees whose duties are focused on sales, and one marketing and promotional activity director. Management believes revenue can be greatly increased by expanding the Company's sales force.

Diversification

Energy & Technology, Corp. has diligently worked to diversify its business model by adding sales, service, and storage of OCTG and all types of oilfield pipe, as well as equipment leasing and sales. Additional growth will come domestically, but management feels that overseas expansion is critical to the ultimate success of the business plan.

Critical Accounting Policies

The Company has identified the following accounting policies to be the critical accounting policies of the Company:

Revenue Recognition. Revenue for inspection services and manufacturing and threading services are recognized upon completion of the services rendered. Revenue for the sales of pipe is recognized when pipe is delivered and the customer takes ownership and assumes the risks of loss, collection of the relevant receivable is probable, persuasive evidence of an arrangement exists, and the sales price is fixed or determinable.

Inventory. Inventory is stated at the lower of cost determined by the specific identification method or market. At the end of the fiscal quarter covered by this report, inventory consisted of pipe available for sale.

Property and Equipment. Property and equipment are stated at cost. Expenditures for property and equipment and items that substantially increase the useful lives of existing assets are capitalized at cost and depreciated. Routine expenditures for repairs and maintenance are expensed as incurred. The cost and related accumulated depreciation of property and equipment disposed of are eliminated from the accounts, and any resulting gain or loss is recognized. Depreciation is provided utilizing the straight-line method over the estimated useful lives of the assets capitalized.

Valuation of Long-Lived Assets. In the event facts and circumstances indicate that carrying amounts of long-lived assets may be impaired, the Company evaluates the recoverability of its long-lived assets using the estimated future undiscounted cash flows associated with the asset compared to the asset’s carrying amount to determine if a write-down is required, pursuant to the provisions of SFAS Financial Accounting Standards Board (FASB) ASC 360-10-35. Any impairment loss is measured as the difference between the carrying amount and the fair value of the impaired asset.

~~Discussion of Changes in Financial Condition from December 31, 2016 to September 30, 2017~~10

AtDiscussion ~~September~~of ~~30,~~Changes ~~2017,~~in ~~total~~Financial ~~assets~~Condition ~~amounted~~from ~~to $4,107,400 compared to $4,238,898 at~~ December 31, ~~2016,~~2017 ~~a decrease of $131,499, or 3.10%. The decrease is primarily due~~ to aMarch ~~decrease in inventory of $104~~31,~~748~~ and a decrease in net property and equipment held for operations of $234,215, partially offset by an increase of net accounts receivable of $153,651, increase of prepaid expenses of $15,623 and an increase in cash and cash equivalents of $7,339.2018

~~Our~~At ~~liabilities~~March ~~at September 30~~31, ~~2017~~2018, ~~totaled~~total assets amounted to $84,~~573~~037,~~085~~393 compared to $73,~~877~~842,~~136~~274 at December 31, ~~2016~~2017, an increase of $~~695~~195,~~949~~119, or 8 5.848%. The increase is primarily due to an increase in ~~accrued~~cash ~~rent~~and cash equivalents of $~~112~~74,~~500,~~183 and by an increase in net accounts ~~payable~~ receivable of $~~250~~98,~~645~~876, ~~and~~ anpartially ~~increase~~offset by a decrease in ~~due~~net toproperty ~~affiliates~~plant and equipment of $~~319~~39,~~186~~289.

~~Total~~Our ~~stockholder’s~~liabilities ~~equity~~at ~~decreased~~March ~~from~~31, (2018, totaled $38,~~638~~917,~~237)~~516 compared to $8,790,396 at December 31, ~~2016~~2017, toan (increase of $4127,~~465~~120,~~685)~~ ator ~~September 30, 2017~~1.45%. The ~~This~~increase ~~decrease was~~is primarily due to ~~our~~an ~~net~~increase ~~loss~~in ~~for~~accrued ~~the~~rent ~~end~~of $37,500, an increase in accrued liabilities of ~~the~~$175,177, ~~fiscal~~and ~~quarter~~an increase ~~covered~~in bynotes ~~this~~payable ~~report~~of $49,075.

Total stockholder’s equity increased from ($4,948,121) at December 31, 2017, to ($4,880,122) at March 31, 2018. This increase was due to our net income for the end of the fiscal quarter covered by this report.

Cash and Cash Equivalents

Cash and Cash Equivalents totaled $~~165~~110,~~407~~351 at ~~September~~March 3031, ~~2017~~2018, an increase of $774,~~339~~183 from the balance of $~~158~~36,~~068~~168 at December 31, ~~2016.~~ 2017. The increase in cash and cash equivalents was primarily due to the cash generated from operating activities partially offset by by the amounts used to reduce debt for the end of the fiscal quarter covered by this report.

Inventory

Inventory consists primarily of pipe held for sale to our customers. We began purchasing pipe for sale to customers in December, 2007. This was an opportunity for us to expand our services to our customers. It is anticipated that the Company will continue its efforts to expand its sales of pipe.

Property and Equipment

The decrease in property and equipment is primarily due to depreciation for the end of the fiscal ~~period~~quarter covered by this report of $~~275~~46,~~965~~750.

Accounts Payable

Accounts payable at ~~September~~March 3031, ~~2017~~2018 totaled $~~865~~860,~~230~~943 compared to $~~614~~978,~~585~~740 at December 31, ~~2016~~2017, ana ~~increase~~decrease of $~~250~~117,~~645~~797. The ~~increase is~~decrease is primarily due to the accounts owed in the course of operations.

12Discussion of Results of Operations for the Three Months Ended March 31, 2018 compared to the Three Months Ended March 31, 2017

Discussion of Results of Operations for the Three Months Ended September 30, 2017 compared to the Three Months Ended September 30, 2016

Revenues

Our revenue for the three months ended ~~September~~March 3031, ~~2017~~2018, was $~~733~~793,~~091~~698, compared to $~~429~~544,~~828~~653, for the three months ended ~~September 30~~March 31, ~~2016~~ 2017 an increase of $~~303~~249,~~264, or 70~~045.~~6%.~~ The increase is attributable primarily to an increase in exploration technologies.

The following table presents the composition of revenue for the three months ended ~~June~~March 3031, 2017 and 2016:

	2017					2016					Variance
	2016					2017					Variance
Revenue:	Dollars		Percentage			Dollars		Percentage			Dollars
Exploration Technologies	$	~~422~~464,~~372~~570		5758.65	%	$	~~226~~238,~~941~~984		3143.09	%	$	~~195~~225,~~431~~586
Drilling, OCTG, & Equipment Sales	$	-91,535		011.05	%	$	-28,871		05.03	%	$	-62,664
Warehouse & Storage Fees	$	7170,~~651~~463		9.8.9	%	$	6776,~~870~~401		914.30	%	$	3(5,~~781~~938	)
Rebillable Income	$	~~112~~67,~~784~~928		158.46	%	$	3733,~~996~~364		56.21	%	$	7434,~~788~~564
Rental Income	$	-		0.0	%	$	67,635		9.2	%	$	(67,635	)
Manufacturing	$	99,202		12.5	%	$	167,033		30.7	%	$	(67,831	)
Manufacturing	$	126,284		17.2	%	$	29,385		4.0	%	$	96,899
Total Revenue	$	793,698		100.0	%	$	544,653		100.0	%	$	249,045
Total Revenue	$	733,091		100.0	%	$	429,828		100.0	%	$	303,264

Cost of Revenue and Gross Profit

Our cost of revenue for the three months ended ~~September~~March 3031, ~~2017~~2018, was $~~632~~502,~~795~~510, ~~or 86.3% of revenues,~~ compared to $~~422~~500,~~294~~266, ~~or 98.2% of revenues,~~ for the three months ended ~~September 30~~March 31, ~~2016~~2017. The overall ~~increase~~decrease in our cost of revenue is primarily due to ~~an increase~~a decrease in ~~Subcontract Labor due to the increase of jobs~~Depreciation.

The following table presents the composition of cost of revenue for the three months ended ~~June~~March 3031, ~~2017~~2018 and ~~2016~~2017:

	2017					2016					Variance
	2018					2017					Variance
Cost of Revenue:	Dollars		Percentage			Dollars		Percentage			Dollars
Employee and Related Costs	$	102,501		16.2	%	$	86,453		13.7	%	$	16,048
Materials and Supplies		56,374		11.2	%		67,241		13.4	%	$	(10,867	)
Materials and Supplies		72,960		11.5	%		27,189		4.3	%	$	45,771
Contractor		121,557		24.2	%		113,747		22.7	%	$	7,810
Subcontract Labor		191,767		30.3	%		97,838		15.5	%	$	93,929
Depreciation		19,696		3.9	%		64,463		12.9	%	$	(44,767	)
Depreciation and Amortization		64,463		10.2	%		64,347		10.2	%	$	116
Employees and Related Costs		138,098		27.5	%		102,906		20.6	%	$	35,192
Repairs and Maintenance		7430,~~097~~166		116.70	%		828,~~807~~335		15.47	%	$	651,~~290~~831
Insurance		138,~~666~~259		21.26	%		2116,~~224~~996		3.4	%	$	(78,~~558~~737	)
Other Costs		~~113~~128,~~340~~360		1725.95	%		~~116~~106,~~436~~578		1821.43	%	$	(321,~~096~~782	)
Total Cost of Revenues	$	~~632~~502,~~795~~510		100.0	%	$	~~422~~500,~~294~~266		66100.70	%	$	~~210~~2,~~501~~244

Due to limitations with the pool of qualified individuals, we utilized the services of subcontractors to assist us in providing timely and quality service to our customers. We will continue our efforts to attract employ and retain qualified individuals to serve the needs of our customers.

Operating Expenses

For the three months ended ~~September~~March 3031, ~~2017~~2018, our operating expenses totaled $~~404~~248,~~337~~368 as compared to $~~333~~345,~~208~~662 in ~~2016~~2017, representing a andecrease ~~increase~~ of $7197,~~129, or 21~~294.~~35%.~~ The largest components of our operating expense for ~~2017~~2018 consist of salaries and wages and professional services. Salaries and wages for general and administrative personnel was $~~163~~108,~~823.36~~539 for the three months ended ~~September~~ 30March 31, ~~2017~~2018, compared to $~~119~~131,~~442~~175 for the three months ended ~~September~~March 3031, ~~2016, an increase of $44,381, or 37~~2017.~~16%.~~ The ~~increase~~ decrease is primarily attributable to the company ~~hiring~~eliminating the role of a Chief Operational Officer. Professional services expense ~~decreased~~ increased from $518,~~075~~370 for the three months ended ~~September~~March 3031, ~~2016~~2018, to $2921,~~723~~833 for the three months ended ~~September~~March 3031, 2017, a decrease of $2113,~~352, or 71~~463.~~84%.~~ The ~~increase~~decrease is primarily a result of a decrease in ~~legal~~consulting fees.

Other Income and Expense

Other income and expense consists of investment income, interest expense, ~~Insurance Claim Settlements,~~ and gains and losses from the sale and disposal of assets. Other ~~Expense~~income, net, totaled $6625,~~465~~177 for the three months ended ~~September~~March 3031, ~~2017~~2018, compared to other expense, net, of $16,~~012~~114,~~591,~~ for the ~~three months ended September 30, 2016, a decrease of $946,126 or 93.4%. This decrease is~~ ~~primarily due to the settlement of a lawsuit. Interest expense totaled $127,809 for the~~ three months ended ~~September~~March 3031, 2017, as ~~compared to $13,600 for the three months ended September 30, 2016,~~ an increase of $~~114~~31,~~209~~291. ~~Interest~~ ~~expense~~This ~~pertains primarily~~increase tois ~~amounts~~primarily due to ~~affiliates~~income asfrom ~~well~~insurance asclaim ~~to our notes payable with third parties~~settlement.

~~Discussion~~Interest ofexpense ~~Results~~totaled of$53,159 ~~Operations~~ for the ~~Nine~~three ~~Months~~months ~~Ended~~ended ~~September~~March 3031, ~~2017~~2018, as compared to $5,388 for the ~~Nine~~three ~~Months~~months ~~Ended~~ended ~~September~~March 3031, 2017, ~~2016~~an increase of $47,771. Interest expense pertains primarily to amounts due to affiliates as well as to our notes payable with third parties.

Revenues

Our revenue for the nine months ended September 30, 2017, was $2,112,773, compared to $1,793,615, for the nine months ended September 30, 2016, an increase of $319,158, or 17.8%. The increase is attributable primarily to an increase in exploration technologies.

The following table presents the composition of revenue for the nine months ended September 30, 2017 and 2016:

	2017					2016					Variance
	Dollars		Percentage			Dollars		Percentage			Dollars
Exploration Technologies	$	1,149,853		156.9	%	$	858,589		117.1	%	$	291,264
Drilling, OCTG, & Equipment Sales	$	95,712		13.1	%	$	-		0.0	%	$	95,712
Warehouse & Storage Fees	$	224,269		30.6	%	$	221,630		30.2	%	$	2,639
Rebillable Income	$	231,741		31.6	%	$	237,377		32.4	%	$	(5,636	)
Manufacturing	$	411,197		56.1	%	$	476,019		64.9	%	$	(64,822	)
Total Revenue	$	2,112,773		100.0	%	$	1,793,615		100.0	%	$	319,158

Cost of Revenue and Gross Profit

Our cost of revenue for the nine months ended September 30, 2017, was $1,827,151, or 86.48% of revenues, compared to $1,865,631, or 100.4% of revenues, for the nine months ended September 30, 2016. The overall decrease in our cost of revenue is primarily due to a decrease in Depreciation and Amortization.

The following table presents the composition of cost of revenue for the nine months ended September 30, 2017 and 2016:

	2017					2016					Variance
Cost of Revenue:	Dollars		Percentage			Dollars		Percentage			Dollars
Employee and Related Costs	$	325,448		17.8	%	$	379,032		20.7	%	$	(53,584	)
Materials and Supplies		262,008		14.3	%		125,382		6.9	%	$	136,626
Subcontract Labor		475,575		26.0	%		354,301		19.4	%	$	121,274
Depreciation and Amortization		193,389		10.6	%		360,859		19.7	%	$	(167,470	)
Repairs and Maintenance		150,504		8.2	%		97,427		5.3	%	$	53,077
Insurance		45,928		2.5	%		111,283		6.1	%	$	(65,355	)
Other Costs		374,299		20.5	%		437,347		23.9	%	$	(63,048	)
Total Cost of Revenues	$	1,827,151		100.0	%	$	1,865,631		102.1	%	$	(38,480	)

Operating Expenses

For the nine months ended September 30, 2017, our operating expenses totaled $1,139,259 as compared to $843,423 in 2016, representing an increase of $295,836, or 35.08%. The largest components of our operating expense for 2017 consist of salaries and wages and Professional Services. Salaries and wages for general and administrative personnel was $460,610 for the nine months ended September 30, 2017, compared to $301,221 for the nine months ended September 30, 2016, an increase of $159,389, or 52.91%. Professional Services increased from $156,034 for the nine months ended September 30, 2016, to $162,099 for the nine months ended September 30, 2017, an increase of $6,065, or 3.89%.

Other Income and Expense

Other income and expense consists of investment income, interest expense, Income from Lawsuit Settlement, Insurance Claim Settlement, and gains and losses from the sale and disposal of assets. Other Income, net, totaled $26,190 for the nine months ended September 30, 2017, compared to other expense, net, of $1,012,591, for the nine months ended September 30, 2016, an increase of $1,038,781 or 100.3%. This is primarily the result from Income from Lawsuits settled. Interest expense totaled $139,509 for the nine months ended September 30, 2017, as compared to $298,203 for the nine months ended September 30, 2016, a decrease of $158,694, or 53.22%. Interest expense pertains primarily to amounts due to affiliates as well as to our notes payable with third parties.

Capital Resources and Liquidity

As of the end of the fiscal quarter covered by this report, we had $~~165~~110,~~407~~351 in cash and cash equivalents. Our cash outflows have consisted primarily of expenses associated with our operations. These outflows have been offset by the timely inflows of cash from our customers for sales that have been made. We have been able to utilize our relationships with affiliated entities to stabilize our liquidity needs.

We believe we can satisfy our cash requirements for the next twelve months only with our current cash and additional loans. However, completion of our plan of operation is subject to attaining adequate revenue. We cannot assure investors that adequate revenues will be generated. In the absence of our projected revenues, we may be unable to proceed with our plan of operations. Even without adequate revenues within the next twelve months, we still anticipate being able to continue with our present activities, but we will require financing to potentially achieve our growth goals.

In the event we are not successful in reaching our initial revenue targets, additional funds may be required, and we may not be able to proceed with our business plan for the development and marketing of our core services. Should this occur, we would likely seek additional financing to support the continued operation of our business.

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

We do not hold any derivative instruments and do not engage in any hedging activities.

Item 4. CONTROLS AND PROCEDURES

(a) Evaluation of Disclosure Controls. The Company maintains a set of disclosure controls and procedures that are designed to ensure that information required to be disclosed in the reports filed or submitted under the Securities Exchange Act of 1934, as amended (“Exchange Act”), is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), as appropriate, to allow timely discussion regarding required disclosure. Management, with the participation of the CEO and CFO, evaluated the effectiveness of disclosure controls and procedures (as defined in Rule 13a-15(e) of the Exchange Act) as of the end of the period covered by this report. Based on this evaluation, the CEO and CFO concluded that the disclosure controls and procedures were effective as of the end of the fiscal period covered byin this report .

It should be noted that any system of controls, however well designed and operated, can provide only reasonable, and not absolute, assurance that the objectives of the system are met. In addition, the design of any control system is based in part upon certain assumptions about the likelihood of future events. Because of these and other inherent limitations of control systems, there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

(b) Changes in internal control over financial reporting. There have been no changes in the Company’s internal control over financial reporting during the ~~second~~first quarter of 2017 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

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PART II - OTHER INFORMATION

Item 1. Legal Proceedings

Item 1A. Risk Factors.

None.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities.

None

Item 4. Submission of Matters to a Vote of Security Holders.

None.

Item 5. Other Information.

None

Item 6. Exhibits and Reports of Form 8-K.

(a) Exhibits

31.1	Certification of George M. Sfeir, President, Chief Executive Officer, Chief Financial Officer, Treasurer, and a Director of Energy & Technology Corp., pursuant to Rule 15d-14(a) of the Securities Exchange Act of 1934 as amended.

32.1	Certifications pursuant to Section 906 of Sarbanes Oxley Act of 2002

(b) Reports of Form 8-K

None.

Item 7. Up-dates and Clarifications to prior non-financial information

None.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	ENERGY & TECHNOLOGY, CORP.
Date: November 14, 2017	By:	/s/ George M. Sfeir
Date: May 15, 2018	By:	/s/ George M. Sfeir
		George M. Sfeir
		Chief Executive Officer, Chief Financial Officer, President, Director, and Treasurer

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