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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-K

(Mark One)
☑	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the fiscal year ended February 28, 2021

☑	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended February 28, 2022

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

Commission file number 333-225892

Quantum Energy Inc.

(Exact name of registrant as specified in its charter)

Nevada	98-0428608
(State or other jurisdiction of	(IRS employer
incorporation or organization)	identification no.)
3825 Rockbottom
Henderson, NV	89030
North Las Vegas, NV	89030
(Address of principal executive offices)	(Zip code)

Registrant’s telephone number, including area code:

702-323-6455

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class

Trading Symbol

Name of Each Exchange

on Which Registered

Common stock, $0.001 Par Value

QEGY

OTC.PK

Securities registered pursuant to Section 12(g) of the Act:

None

Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☑

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 ☐ No ☑

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. Yes ☐ No ☑

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted 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 such files). Yes ☐ No ☑

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405) is not contained herein, and will not be contained, to the best of Registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a 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	☒	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 has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting form that prepared or issued its audit report. Yes ☒ No ☐

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

The aggregate market value of the common voting stock held by non-affiliates of the Registrant as of the last business day of the Registrant’s most recently completed third fiscal quarter, was $1,260,969.

As ~~_February~~of February 28, ~~2021~~2022 there were 48,491,485 Shares of issuer’s common stock, $0.001 par value, issued and outstanding.

TABLE OF CONTENTS

		Page
Glossary of Key Terms		3
Part I
Item 1.	Business	4
Item 1A.	Risk Factors	107
Item 1B.	Unresolved Staff Comments	7
Item 2.	Properties	107
Item 3.	Legal Proceedings	107
Item 4.	Mine Safety Disclosures	107
Part II
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	118
Item 6.	Selected Financial Data	1410
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	1410
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	1610
Item 8.	Financial Statements and Supplementary Data	1610
Item 9.	Changes in and Disagreements With Accountants on Accounting and Financial Disclosure	3124
Item 9A.	Controls and Procedures	3124
Item 9B.	Other Information	3224
Part III
Item 10.	Directors, Executive Officers and Corporate Governance	3225
Item 11.	Executive Compensation	3427
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	3528
Item 13.	Certain Relationships and Related Transactions, and Director Independence	3829
Item 14.	Principal Accountant Fees and Services	3830
Part IV
Item 15.	Exhibits and Financial Statement Schedules	3931

GLOSSARY OF KEY TERMS

Adjusted diluted EPS from continuing operations	Non-GAAP measure defined as diluted earnings per share from continuing operations before the one-time, non-cash income tax benefit

Adjusted income from continuing operations	Non-GAAP measure defined as income from continuing operations before the one-time, non-cash income tax benefit


GAAP	Generally Accepted Accounting Principles
QEGY	Quantum Energy Inc.
SEC	United States Securities and Exchange Commission

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

Except for historical information, this Annual Report contains forward-looking statements within the meaning of the federal securities laws. Such forward-looking statements are based on management’s current expectations, assumptions, and beliefs concerning future developments and their potential effect on our business and are subject to risks and uncertainties that could negatively affect our business, operating results, financial condition, and stock price. We have attempted to identify forward-looking statements by terminology including “anticipates,” “believes,” “can,” “continue,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts,” “should,” “will,” “would”, “if, “shall”, “might”, “will likely result, “projects”, “goal”, “objective”, or “continues”, or the negative of these terms or other comparable terminology, although the absence of these words does not necessarily mean that a statement is not forward-looking. Additionally, statements concerning future matters such as our business strategy, development of new products, sales levels, expense levels, cash flows, future commercial and financing matters, future partnering opportunities and other statements regarding matters that are not historical are forward-looking statements.

Although the forward-looking statements in this Annual Report reflect our good faith judgment, based on currently available information, they involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including those described in the section titled “Risk Factors.” Moreover, we intend to operate in one or more very competitive and rapidly changing industry. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our 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 we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this Annual Report may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. Moreover, except as required by law, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. We undertake no obligation to update publicly any forward-looking statements for any reason after the date of this Annual Report to conform these statements to actual results or to changes in our expectations. You should, however, review the factors and risks we describe in the reports we will file from time to time with the SEC after the date we file this Annual Report. Readers are urged to carefully review and consider the various disclosures made in this Annual Report.

CERTAIN REFERENCES AND NAMES OF OTHERS USED HEREIN

This Annual Report may contain additional trade names, trademarks, and service marks of others, which are the property of their respective owners. Except as otherwise disclosed herein, we do not intend our use or display other companies’ trade names, trademarks, or service marks to imply a relationship with, or endorsement or sponsorship of us by, these other companies.

PART I

The terms “we,” “our,” “us”, “Quantum Energy” and the “Company” refer to Quantum Energy Inc. and its subsidiaries, unless the context suggests otherwise.

ITEM 1. Business.

General

We, Quantum Energy Inc., are a Nevada corporation. We were originally incorporated as Boomers Cultural Development, Inc. (“Boomers”) on February 5, 2004, in the State of Nevada to be a service-oriented firm that would integrate the cultural interests of baby boomers with destination learning, by packaging onsite personal growth, education, and entertainment seminars with a variety of vacation destinations. On May 18, 2006, our name was changed to Quantum Energy, Inc. and our business focus was changed to concentrate on the energy industry and, in particular, refining, as well as the oil and gas portions of the energy industry. We currently have two 100% owned subsidiaries: Dominion Energy Processing Group, Inc. (“DEPG”), a Canadian Federal business corporation, which is our 100% owned Canadian subsidiary and FTPM Resources, Inc., a Texas corporation.

In connection with our efforts in the energy industry, we acquired interests in various oil & gas properties in the Barnett Shale area of West Texas. After the initial success of the Barnett Shale leases, the production program in the Barnett Shale area encountered substantial difficulties. Numerous wells throughout this extensive area experienced production difficulties. In addition to the production problems was the severe drop in natural gas prices. As a result, all of the wells in which we had interests were suspended and all marginal wells were capped, and we abandoned our interest in the Barnett Shale area. From 2008 through 2010, we planned, when and if funding became available, to acquire high-quality oil and gas properties, primarily proven producing and proven undeveloped reserves as well as exploring low-risk development drilling and work-over opportunities with experienced, well-established operators. However, the needed substantial finding for these for opportunities was not available. From 2010 to 2017, we continued to consider and explore other energy industry opportunities. We focused on the development and operation of an oil refinery to refine oil from the Bakken formation. In 2013, we entered into various transactions in pursuit of the financing needed for the development of such a refinery and we pursued other potential energy related opportunities. However, we were not able to raise the substantial funding that would be needed to acquire the land, obtain the required permits, and developing and operating such a refinery. During the period from October 2017 to April 2019, among other things: we reviewed all of the outstanding agreements and transactions that we had entered into between August 2013 and November 2017 and we began to renegotiate, rescind or settle all of those agreements that had proven not to be in our best interest or in the best interest of our stockholders. In this regard, the shares of our common stock that had been issued in connection with such cancelled transactions were returned to us and shares of our Series B Preferred Stock that had been issued were returned and cancelled.

~~Since~~From December 5, 2016 to about September 2020, we have ~~continued~~pursued toenergy ~~pursue~~and ~~energy~~refining opportunities, including alternative energy opportunities, as well as, the substantial financing needed by such energy opportunities as follows:

~~(i)~~On ~~Provided~~April ~~substantial~~15, ~~financing is available~~2018, we ~~focused~~entered oninto ~~developing~~ a ~~smaller~~(conditional) ~~“state-of-the~~binding ~~art”,~~letter ~~energy~~of ~~efficient,~~intent ~~40,000 BPD full slate refinery in Stoughton~~ (~~southeastern) Saskatchewan, Canada (~~the “~~Stoughton~~IEC ~~Refinery~~LOI”) inwith ~~the~~Inductance ~~heart~~Energy ofCorporation ~~the~~Energy ~~Viewfield~~Corporation, ~~oil~~a ~~field~~Wyoming ~~area~~corporation of(“IEC”), ~~the~~which ~~Bakken~~purports ~~formation. The Stoughton Refinery was~~ to behave ~~designed~~developed toan ~~use~~alternative ~~light~~source ~~sweet~~of ~~crude~~energy ~~feedstock~~through ~~from~~ the ~~Bakken~~invention ~~formation~~and indevelopment ~~the~~of ~~Viewfield~~magnetic ~~oil~~“earth ~~field~~engines”. ~~area~~Pursuant ofto the ~~Province~~IEC ofLOI ~~Saskatchewan~~, ~~Canada~~if toall ~~produce a limited number~~ of ~~products for~~ the ~~local~~conditions ~~market.~~contained Wein ~~planned~~the toIEC ~~utilize~~LOI ~~Bakken~~are ~~crude~~satisfied, as(a) ~~our~~we ~~feedstock since it~~ would bemerge ~~the~~with ~~most~~a ~~plentiful~~newly ~~crude~~formed ~~slate~~subsidiary inof ~~the~~IEC ~~Viewfield~~with ~~oil~~us ~~field~~being ~~area where~~ the ~~Stoughton~~surviving ~~Refinery~~company, ~~was~~(b) towe bewould ~~located.~~issue ~~We planned~~ to ~~refine~~IEC ~~and~~such ~~sell~~number ~~a variety~~ of ~~refined~~new ~~products~~shares toof our ~~customers,~~Common ~~including~~Stock ~~natural~~as ~~gas~~shall ~~liquids,~~represent ~~gasoline,~~60% ~~jet~~of ~~fuel,~~our ~~diesel,~~then ~~drilling~~issued ~~mud~~and ~~oil,~~outstanding ~~ultra-low~~shares ~~sulfur~~of ~~fuel~~Common ~~oil~~Stock, and ~~sulfur~~(c) ~~and~~IEC ~~feedstocks.~~would Inprovide ~~this~~to ~~regard~~us, onas ~~August~~the 2,surviving ~~2016~~company, weup ~~formed~~to ~~our Canadian subsidiary~~$50, ~~Dominion Energy Processing Group~~000, ~~Inc~~000(USD). ~~for~~The ~~purposes~~LOI ofultimately ~~the~~expired ~~pre-development~~without ~~work,~~being ~~construction and operation of the Stoughton Refinery~~implemented.

InOn ~~connection~~April ~~with~~2, ~~our~~2019, ~~efforts~~we ~~regarding~~and ~~developing~~our ~~and~~wholly ~~operating~~owned ~~the~~subsidiary ~~Stoughton~~FTPM ~~Refinery~~Resources, weInc. ~~identified~~entered ainto ~~480~~non-~~acre~~binding ~~site~~Letter inof ~~Stoughton,~~Intent ~~Saskatchewan~~with ~~(the~~Easy Energy systems Inc. (“~~Land~~EESI”) ~~on which~~ to ~~construct~~form ~~the~~a ~~Stoughton~~joint ~~Refinery~~venture ~~provided various tests to confirm~~ the ~~validity~~purpose ~~and suitability~~ of ~~the~~developing ~~hydrology~~ and ~~the~~marketing ~~Land for the construction and operation~~ of ~~the~~clear ~~Stoughton~~glucose ~~Refinery.~~using ~~The~~EESI’s ~~Land~~patented isModular ~~located~~Energy ~~approximately~~Production ~~100~~System ~~kilometers~~technology ~~north~~(“MEPS®”). ofEESI’s ~~the~~Modular ~~Canadian~~Energy ~~USA~~Production ~~border~~Systems inare ~~southeastern~~small-scale ~~Saskatchewan~~modular inbiorefineries ~~the~~for ~~regional municipality of Tecumseth in~~ the ~~heart~~production of ~~the~~alternative ~~Viewfield~~liquid ~~oil~~biofuels ~~field~~and ~~area~~other ofproducts ~~the~~from ~~Bakken~~various ~~formation~~feedstocks. ~~The~~MEPS® ~~Land~~modules ~~has~~are ~~sufficient~~fully ~~acreage~~automated, toself-contained ~~accommodate~~shipping ~~expansion~~container ofsized modules (the ~~Stoughton~~“Modules”) ~~Refinery~~that ~~facilities~~contain toa ~~included~~specific ~~future~~scientific ~~ethanol~~process ~~and rail-car load and unload facilities. According~~ to aprocess ~~2015~~energy ~~report~~based ~~from~~on the ~~National~~particular ~~Energy~~targeted ~~Board~~Feedstock. ~~(an~~The ~~independent~~Modules ~~economic~~are ~~regulatory~~factory-built ~~agency~~and ~~created~~can inbe ~~1959~~connected bytogether ~~the~~in ~~Government~~a matter of ~~Canada,~~weeks ~~the~~to ~~unconventional,~~convert ~~marketable~~different ~~resources~~forms of ~~the~~Feedstock ~~Bakken~~into indifferent ~~the~~forms ~~Viewfield~~of ~~oil~~renewable ~~field~~energy ~~area~~and ~~are~~other ~~expected~~high tovalue beproducts. ~~74 million m³ (464 million barrels) (see “~~The ~~Ultimate~~Modules ~~Potential~~can ~~for~~be ~~Unconventional~~shipped ~~Petroleum~~to ~~from~~remote ~~the~~villages ~~Bakken~~and ~~Formation~~cities ofall ~~Saskatchewan~~over ~~– Energy Briefing Note” April 2015 of~~ the ~~National~~world. ~~Energy~~That ~~Board~~joint ~~(an~~venture ~~independent~~was ~~economic~~to ~~regulatory~~have ~~agency~~been ~~created~~owned in33% ~~1959~~ by ~~the~~FTPM ~~Government~~and of67% ~~Canada,~~by ~~http://www~~EESI.~~nebone.gc.ca/nrg/sttstc/crdlndptrlmprdct/rprt/2015bkkn/2015bkkneng. pdf).~~

On ~~December~~June 528, ~~2016~~2019, we ~~executed~~and aEESI ~~Farm~~modified ~~Contract~~that ofproposed ~~Purchase~~joint ~~and~~venture ~~Sale~~transaction ~~(the~~and ~~“Land~~we ~~Contract”)~~entered ~~with~~into ~~the~~a ~~landowner.~~Binding ~~The~~Letter ~~purchase price~~ of ~~the~~Intent ~~Land under~~ (the ~~Land~~June ~~Contract~~28, ~~was~~2019 ~~$500,000(CAD).~~Binding WeLetter ~~paid~~of ~~$10,000(USD~~Intent”) ~~($7,822(CAD))~~with asEESI ~~a deposit on the Land. Our obligation~~ to ~~purchase~~form ~~the~~a ~~Land~~joint ~~under~~venture ~~the~~(hereinafter ~~Land~~referred ~~Contract is subject~~ to ~~certain~~as ~~terms and conditions including: (~~“JV-1”) ~~the~~for ~~completion of~~ the ~~various~~purpose ~~tests to confirm the validity and suitability~~ of ~~the~~creating ~~hydrology~~ and ~~the~~funding ~~Land~~multiple ~~for~~operating ~~the~~joint ~~construction~~venture ~~and~~limited ~~operation~~liability ofcompanies ~~the~~(each ~~Stoughton~~an ~~Refinery;~~“Operating (2JV”) ~~the~~each ~~proposed Stoughton Refinery meeting all requirements~~ of ~~various~~which ~~Saskatchewan~~to ~~government~~be ~~laws,~~focused ~~and~~on ~~bylaws~~a ~~and~~different ~~being~~vertical ~~fully~~market ~~approved~~feedstock byutilizing ~~all levels of~~ the ~~Saskatchewan~~MEPS® ~~government~~technology ~~and~~to ~~agencies;~~create ~~and~~energy. ~~(3)~~Each ~~the~~Operating ~~Land~~JV ~~purchase~~is ~~being~~expected ~~approved~~to ~~the~~be ~~Saskatchewan~~assigned ~~Farm~~exclusive ~~Land~~distribution ~~Security~~rights ~~Board~~based ~~(collectively~~on ~~the~~a ~~“Predevelopment~~territory ~~Work”).~~and/or ~~The~~specified ~~Land~~Feedstock, ~~Contract~~and ~~had~~each ~~an initial expiration date~~ of ~~December~~which ~~15,~~will ~~2017,~~be ~~however,~~financed weby ~~have~~the ~~negotiated~~funding ~~several~~source ~~extensions~~ of ~~the~~that ~~Land~~Operating ~~Contract~~JV. ~~until~~Each ~~October~~Operating ~~31,~~JV ~~2019~~would ~~(unless~~be ~~further~~owned ~~extended),~~50% ~~for~~by ~~removal~~that offunding ~~all~~source ~~terms~~for ~~and conditions to~~ the ~~purchase~~particular ofLLC ~~the Land~~ and the ~~purchase~~remaining ~~price~~50% ofby ~~the~~JV-1 ~~Land~~(which ~~under~~will ~~the~~be ~~Land~~split ~~Contract~~equally ~~was~~between ~~increased~~us toand ~~$525,000(CAD~~EESI). NoThat ~~assurances~~joint ~~can~~venture bewas ~~given~~ultimately ~~that we will be able to obtain all required governmental approvals~~terminated.

IfAt the ~~viability~~beginning ~~and~~of ~~suitability~~March of2020, we again enter discussions with Inductance Energy Corporation (“IEC”), as we were in April 2018. In this particular instance IEC was offering to bring to the ~~Land~~table ~~for~~several significant investors interested in funding the ~~development~~Company through its regulatory cleanup. It was suggested that MP Special Purpose Corporation (“MP”), ~~construction~~would be interested in signing a joint commitment letter so long as necessary shares were set aside in return for the significant effort that would be expended by both IEC and ~~operation~~MP. On March 22, 2020 IEC began due diligence on the Company, with the permission of its Board of Directors, for the ~~Stoughton~~purpose ~~Refinery~~of isforming ~~validated~~future business alliances including joint ventures, joint stock ownership, and ~~provided~~capital weraises. ~~have~~Due ~~obtained~~diligence on the ~~required~~Company ~~substantial~~was ~~capital,~~completed by IEC at the beginning of July of 2020. The results of such within forwarded to the various investors of MP. The Company and ~~provided~~MP ~~substantial~~signed ~~funding~~an isAgreement ~~available~~and Plan of Asset Acquisition (“Plan”), weon ~~intend~~September 22, 2020 to ~~commence~~allow the ~~process~~Company to enter into the refining of ~~obtaining~~rare ~~necessary~~earth ~~permits~~materials from various locations under the control of MP and ~~approvals~~IEC. The Plan was assignable to ~~develop~~IEC, ~~construct~~or ~~and~~other ~~operate~~investors or investor group’s willing to fund the ~~Stoughton~~growth ~~Refinery~~of the Company through a private investment into a public entity, otherwise known as a PIPE (“PIPE”).

Since early November 2020 the Company expanded its board to include directors William Hinz, Douglas Bean, and Anthony Ker. The company also recruited and contractually hired Harry Ewert as its new CEO. Mr. Ewert also joined the Board of Directors. The Company recruited and contractually hired William Westbrook as its CFO. Both Mr. Ewert and Mr. Westbrook began their contracts in early December with the Company.

After the expanded Board of Directors was seated, and at the start of Mr. Ewert and Mr. Westbrook’s contracts, the Company moved quickly to establish a strategic and tactical operating plan to enter the rare earth refining market. The company established a technical committee which helped build out a plan to develop a private investment path. In addition, the Company moved to conduct due diligence on the former Willwood Air Force Base located in Wyoming at which IEC had been granted a special use permit for the processing of rare earth materials, and the manufacturer of permanent magnets.

In January 2021 the Company settled on a $50 million private placement offering, that would include a proposed $15 municipal bond package as offered by the town of Byron Wyoming, only 9 miles from the 164 acre former Willwood Air Force Base. The company decided to include the $15 million bond package in its $50 million private placement offering, therefore needing to raise $35 million of new equity in the company. The Board of Directors voted previously to authorize the development of a private placement memorandum to be filed with the SEC so that the private placement offering could be discussed with current and potential individual investors, and investor groups in the United States and Canada.

The Company has experienced strong demand for participation in its private placement offering, and expanded its staff to include two additional finance positions, as well as plans to expand its internal accounting staff.

AsThe ofCompany ~~the~~has ~~date~~developed ofa ~~this~~strategic ~~report~~plan for hiring experienced professionals, weincluding ~~have~~those ~~been~~that ~~unable~~are tocredentialed ~~raise~~and ~~the~~hold ~~substantial~~licenses ~~funds~~in ~~required~~engineering, tomining, ~~acquire~~and ~~the~~chemical ~~Land~~engineering. orThis ~~complete~~increased depth of personnel surrounding the ~~predevelopment~~granting ~~work~~of ora license from IEC to ~~construct~~the Company for the ~~proposed~~exclusive ~~Stoughton~~production ~~Refinery~~of magnetic materials and assemblies. NoThe ~~Assurances~~decision ~~can~~on bethe ~~given~~granting ~~that~~of wea ~~will~~license ~~obtain~~from ~~the~~IEC, ~~needed~~on ~~substantial~~an ~~capital~~exclusive tobasis, ~~acquire~~would ~~and~~be ~~validate~~made ~~the~~by ~~suitability~~IEC ofonly if the ~~Land~~Company orcould toshow ~~develop,~~substantial ~~construct~~progress in its capital raise efforts, and ~~operate~~its ~~the~~ability ~~Stoughton~~to ~~Refinery~~attract technical expertise.

~~(ii)~~As ~~On April 15, 2018, we entered into a (conditional) binding letter of intent (~~the ~~“IEC~~Company ~~LOI”)~~experienced ~~with~~success Inductance Energy Corporation Energy Corporation, a Wyoming corporation (“IEC”), which purports to have developed an alternative source of energy through the invention and development of magnetic “earth engines”. Pursuant to the IEC LOI , if all of the conditions contained in ~~the~~both ~~IEC~~its ~~LOI~~private ~~are~~placement ~~satisfied~~efforts, ~~(a)~~as wewell ~~would merge with a newly formed subsidiary of IEC with us being the surviving company, (b) we would issue to IEC such number of new shares of our Common Stock~~ as ~~shall~~its ~~represent~~exploratory ~~60%~~efforts offor ~~our~~sources ~~then issued and outstanding shares~~ of ~~Common~~rare ~~Stock~~earths, ~~and (c) IEC would provide to us, as~~ the ~~surviving~~Company ~~company,~~put upforth toexpanded ~~$50,000,000(USD),~~efforts ~~a portion of which (estimated at $7,500,000 CAD) we would use~~ to ~~validate~~execute ~~the viability and suitability of the development of the Stoughton Refinery~~ on ~~the~~its ~~land~~new ~~(“Land”)~~strategic ~~for~~and ~~intended~~tactical ~~sight~~business plans in ~~Stoughton~~order ~~Saskatchewan Canada, which would include obtaining environmental and engineering studies~~ to ~~validate~~begin ~~the~~refining ~~viability~~rare ~~and~~earth materials ~~suitability of the intended site~~ for the ~~Stoughton~~recovery ~~Refinery, and if the site is determined to be viable and suitable, we would commence the process~~ of ~~obtaining~~oxides ~~the required permits to build the Stoughton Refinery~~ and wemetals would acquire the Land, and (c) we would pay other related costs. The conditions to the IEC LOI were not satisfied and on April 23, 2019, we entered into a Mutual Agreement with IEC to cancel and rescind the IEC LOI. The parties agreed that ~~the~~are ~~mutual~~required ~~cancellation/rescission~~for ~~is based on~~ the ~~inability~~production of ~~the~~various ~~parties~~magnetic ~~to reach an agreement that serves their respective best interests and priorities~~products, and ~~that the cancellation/rescission of the IEC LOI will enable each party to pursue its unique opportunities and interests~~assemblies.

~~(iii)~~The OnCompany ~~April~~developed ~~2, 2019, we and our wholly owned subsidiary FTPM Resources, Inc. entered into non-binding Letter of Intent with Easy Energy systems Inc. (“EESI”) to form~~ a ~~joint~~straightforward ~~venture~~strategic ~~the purpose of developing~~ and ~~marketing~~tactical ofbusiness ~~clear~~plan ~~glucose~~that ~~using~~could ~~EESI’s~~be ~~patented~~executed ~~Modular~~around ~~Energy~~3 ~~Production~~basic ~~System~~business ~~technology~~segments; ~~(“MEPS®”).~~Mining, ~~EESI’s~~Minerals ~~Modular Energy Production Systems are small-scale modular biorefineries for the production of alternative liquid biofuels~~ and ~~other products from various feedstocks~~Magnets. ~~MEPS®~~These ~~modules~~3 ~~are~~segments ~~fully~~would ~~automated,~~become ~~self-contained shipping container sized modules (the “Modules”) that contain~~ a ~~specific~~highly ~~scientific~~focused ~~process~~center ~~to process energy based on the particular targeted Feedstock. The Modules are factory-built and can be connected together in a matter~~ of ~~weeks~~work tofor ~~convert different forms of Feedstock into different forms of renewable energy and other high value products. The Modules can be shipped to remote villages and cities all over~~ the ~~world~~Company. ~~That joint venture was to have been owned 33% by FTPM and 67% by EESI.~~

OnVarious ~~June~~work ~~28,~~at ~~2019,~~the weCompany ~~and~~by ~~EESI~~its ~~modified~~technical committee had shown that ~~proposed~~the ~~joint~~Company ~~venture~~could ~~transaction~~enter ~~and~~the wemining ~~entered~~industry ~~into~~through a ~~Binding~~very ~~Letter~~unique path of ~~Intent~~recovering ~~(the~~rare ~~June~~earth ~~28,~~and ~~2019~~ferrite ~~Binding~~magnet ~~Letter~~material offrom ~~Intent”)~~discarded ~~with~~appliances, ~~EESI~~computers, toand ~~form~~other asources ~~joint~~in ~~venture~~the ~~(hereinafter~~United ~~referred~~States toand asCanada. ~~“JV-1”)~~Secondly, ~~for~~ the ~~purpose~~Company ofwould ~~creating~~concentrate ~~and~~its ~~funding~~efforts ~~multiple~~on ~~operating~~the ~~joint~~recovery ~~venture~~of ~~limited~~rare ~~liability~~earth ~~companies~~materials ~~(each~~from another ~~“Operating~~waste ~~JV”)~~streams ~~each~~including offly ~~which~~ash toand befly ~~focused~~bottom onwaste astreams ~~different~~from ~~vertical~~combusted ~~market~~coal ~~feedstock~~burning ~~utilizing~~power ~~the~~plants ~~MEPS®~~in ~~technology~~the toUnited ~~create~~States ~~energy~~and Canada. ~~Each~~It ~~Operating JV~~ is ~~expected~~estimated tothat beover ~~assigned~~1 ~~exclusive~~billion ~~distribution~~tons ~~rights~~of ~~based~~this onmaterial aexists ~~territory~~ and~~/or~~ ~~specified Feedstock~~dumpsites, and ~~each~~far ofgreater ~~which~~than ~~will~~4 bebillion ~~financed~~pounds ~~by the funding source~~ of ~~that~~this ~~Operating~~material ~~JV.~~is ~~Each~~still ~~Operating~~generated JVfrom ~~would~~coal beburning ~~owned~~power ~~50%~~plants byand ~~that~~other ~~funding~~sources ~~source~~in ~~for~~ the ~~particular~~United ~~LLC~~States ~~and~~alone ~~the~~each ~~remaining 50% by JV-1 (which will be split equally between us~~ and ~~EESI)~~every year.

~~(iv)~~Successful Onrecovery ~~April~~from 8,these ~~2019,~~waste westreams entered into a non-binding memorandum of understanding (“Peconic MOU”) with Peconic Energy Inc., a Wyoming corporation. Peconic is presently engaged in the business of exploring for oil, gas and other hydrocarbons within the State of Texas and is the owner of certain lands located in Gonzales and Wilson counties Texas, which lands are ~~considered~~described byas Peconic to be prospective for finding oil, gas and other hydrocarbons. Pursuant to the Peconic MOU, if the parties negotiated and executed a binding agreement, we would acquire 100% of Peconic for shares of newly created preferred stock and we were to contribute to Peconic a loan of $500,000 and an additional $150,000 of bridge financing from a funding source introduced by Peconic.follows;

~~Also~~1. Rare Earth and Ferrite (Iron) Magnets that are used in a wide variety of appliances and electronics that can be recovered, onthat ~~April~~were 17disposed of in the United States and Canada. These appliances include; televisions, ~~2019~~computers, werefrigerators, ~~loaned~~microwaves, ~~$30~~dishwashers,~~000~~ toas ~~Peconic~~well ~~Energy~~as motor vehicles, ~~Inc.~~and ~~(“the~~used ~~Peconic~~electrical ~~Loan”)~~motors. ~~This~~Quantum ~~loan~~ is ~~evidenced~~working bywith a ~~secured~~wide ~~convertible~~variety ~~promissory~~of ~~note~~returned ~~(“Peconic~~merchandise ~~Note”)~~centers, ~~which~~landfills, ~~provides~~and ~~for~~other ~~interest~~recycling ~~which~~businesses ~~shall~~to ~~accrue~~secure atthese ~~rate~~resources. These types of ~~12%~~magnet ~~per~~resources ~~annum~~can orbe ~~40%~~mechanically ofgathered, ~~the~~and ~~gross~~reprocessed ~~revenues~~for ~~generated~~use by ~~the maker~~IEC, ~~whichever~~and isother ~~greater,~~customers. ~~the~~2. ~~principal~~Fly ~~balance~~ash and ~~all~~fly ~~accrued~~bottom ~~interest~~waste ~~being~~streams. ~~due~~Fly ash and ~~payable~~fly 18bottom ~~months~~waste ~~from~~streams are the ~~date~~remaining byproduct of coal combustion. There are billions of pounds of fly ash and fly bottom waste that are produced each and every year in the ~~note~~United States and Canada, as well as foreign countries. ~~The~~Currently ~~Peconic~~Quantum ~~Note~~has istwo ~~secured~~large bydevelopmental ~~100%~~projects to recover and test both fly ash and fly bottom waste streams for their rare earth content. These two sources currently produce just over 1.4 billion pounds of fly ash and fly bottom waste on an annual basis. Well-known resource testing shows that most fly ash, as well as fly bottom waste streams on average contain about 1.85% rare earth material. 3. Coal and other mining resources. Currently in the ~~Peconic’s~~United ~~assets~~States and Canada, the mining of coal to be consumed in coal power plants is ~~convertible~~in atrapid ~~any~~decline. ~~time~~Coal ~~during~~producing ~~the~~states ~~term~~such as Wyoming, Kentucky, and West Virginia must move from a coal-based economy or continue to face declining royalty revenues from these natural resources. Rare earth minerals could be one answer to this problem. It is well known from a wide variety of ~~the~~Department ~~note~~of ~~into~~Energy ~~40%~~studies that coal, and coal byproducts contain high concentrations of ~~the~~rare ~~Peconic’s~~earth ~~assets~~materials. ~~(see~~Quantum ~~(v)~~is ~~below~~in ~~regarding~~negotiations ~~Power~~with Upseveral ~~Lending~~operating ~~Group~~and ~~Ltd~~now defunct coal bearing properties in order to secure rights to process and refine rare earth materials.).

~~Pursuant~~Refining torare ~~the~~earth ~~Peconic~~materials ~~MOU~~from used magnets, iffly ~~definitive~~ash ~~agreements~~and ~~were~~fly ~~not~~bottom ~~executed~~waste bystreams, ~~the~~and ~~close~~coal ofreserves ~~business~~range onin ~~April~~difficulty ~~22,~~from ~~2019~~very simple, ~~the~~to ~~Peconic~~a ~~MOU~~chemical ~~would~~process becommonly ~~automatically~~called ~~rescinded~~ion exchange, and precipitation. ~~Definitive~~Both ~~agreements~~practices ~~were~~have ~~not~~been ~~executed~~in place for many decades, worldwide, and ~~the~~are ~~proposed~~still ~~transaction~~used ~~with~~to ~~Peconic~~this ~~was~~day ~~automatically~~for ~~rescinded.~~most Asmining ofrecovery ~~the~~operations ~~date~~in ofaddition ~~this~~to ~~report~~these 2 common practices, nomembrane ~~further~~recovery, ~~action~~similar to reverse osmosis, is ~~anticipated~~finding ~~relating~~favor toby ~~the~~a ~~Peconic~~wide ~~MOU~~variety of professionals, in many geographic areas. W

The reprocessing of waste stream magnets whether ferrite (iron), or rare earth, such as neodymium iron boron magnets, is a relatively simple process where the waste material is pulverized to approximately 80 mesh (177 microns), then re-blended into the required recipe, and then reformed in, to produce a value-added product. a choice of several different processes.

Refining rare earth materials from fly ash and fly bottom waste, is similar to recovering rare earth materials from coal ash, or coal seam material. It is a well-known ion exchange and precipitation process. A chemical process in which a wide variety of diluent made from acids and caustics are used to precipitate individual rare earth elements from waste streams. This can also include the recovery of rare earth materials from various membranes, such as membranes similarly used in reverse osmosis processes used to clean water. Membranes are size to very specific microns, and once the process is complete, the desired elements are recovered from recycling the membrane material.

The reclaiming of base materials that are suitable to be processed to extract rare Earth materials is heavily tied to wastewater treatment. While large quantities of water are not required to reclaim rare earth containing material, water can be used along with magnetic separation in the early stages of recovery. Wastewater resulting from these early-stage processes needs to be treated and then reintroduced into the process, thereby limiting the loss of treatment water to evaporation. Wastewater treatment also allows waste sludge to be minimalized, and dried for disposal in a common landfill. Typically these dried sludges are less than 1% of the overall material processed. The Company is currently seeking to purchase several different proven waste water technologies and systems to market alongside its rare earth recovery systems.

(v) In connection with the Peconic MOU (see (iv) above), on April 9, 2019 we entered into a Securities Purchase Agreement with Power Up Lending Group Ltd. (“Power Up”) providing for the issuance of a Convertible Promissory Note (the “Power Up Note”) in the principal amount of $45,000. From this loan, we in turn loaned $30,000 to Peconic. The Power Up Note bears 12% interest with the principal balance and all accrued interest being due and payable on April 9, 2020. The Power Up Note provides for default interest at 22%, in the event of default. The Power Up Note contains conversion terms whereby Power Up has the right to convert the Power Up Note into shares of the Company’s common stock at a 39% discount on the lowest closing price of the Company’s common stock during the prior 20 trading day period. The conversion option expired on October 7, 2020. On June 18, 2019, we received a default notice from Power Up stating that we are in default under the Power Up Note because, among other reasons, we failed to comply with the reporting requirements of the Securities Exchange Act of 1934 as required by the Note, and therefore accelerating the terms of the Power Up Note and demanding that the Company pay the default sum of $67,500 together with accrued interest and accrued default interest with respect to the Power Up Note. We are currently seeking to reach a settlement of this matter with Power Up but as of the date of this report no settlement has been reached.

(vi) On April 16, 2019, we entered into a Non-Binding Memorandum of Understanding (“EESI Infrastructure MOU”) to acquire EESI Infrastructure Series, LLC (“EESI Infrastructure”). The prospective EESI Infrastructure acquisition, if consummated as contemplated in the EESI Infrastructure MOU, would provide an Engineering, Procurement and Construction (“EPC”) guarantee for the construction of an addition to the existing $11.2 million plant of EESI Systems in Emmetsburg, Iowa. This addition would add a 9.3 Mega Watt dual gas power plant to EESI Systems’ Emmetsburg facility at an anticipated cost of approximately $10 million dollars. The EPC guarantee would provide a Warranty Bond Guarantee to ensure the plant will remain operational for 18 months after completion of the Emmetsburg facility Power Plant. The EESI Infrastructure MOU also contemplated that we would issue shares of newly authorized preferred stock and that cash would be paid to EESI Infrastructure. Upon signing the EESI Infrastructure MOU, we advanced $25,000 to the EESI Infrastructure. As of the date of this report, the transactions contemplated by the EESI Infrastructure MOU have not been consummated, we are currently seeking to get a refund from EESI Infrastructure of the $25,000 we advanced to EESI Infrastructure and no further action is anticipated relating to the EESI Infrastructure MOU.

(vii) Effective May 24, 2019, we entered into an Asset for Stock Swap Agreement (“Swap Agreement”) with the Looper Family Office, LLC, a Texas limited liability company and Quay View Partners, LLC (“Sellers”) pursuant to which the Sellers agreed to convey to us 100% of their rights, titles and interests in and to certain identified oil and gas producing properties in exchange for 100,000 shares of a newly created Series W Preferred Convertible Preferred Stock and a $250,000 loan from us to the Sellers. Pursuant to the Swap Agreement, if consummated, we would own the leases through a wholly owned subsidiary to be formed and the Series W Preferred Convertible Stock would be issued to secure debt and or equity for such subsidiary. We were also to contribute a loan of $250,000 to the Sellers, funded in two installments as follows: the first upon the execution of the Swap Agreement and the second on or before June 7, 2019. We were not able to obtain the funding of such loan. On June 21, 2019, the Sellers notified us that the Swap Agreement was cancelled because we had not provided the consideration required under the Swap Agreement. No payments were made by the Company, no assets were transferred to the Company and no shares of Series W Preferred Stock were issued to the Sellers. As of the date of this report, no further action is anticipated relating to the Swap Agreement;

(viii) In connection with the June 28, 2019, Binding Letter of Intent with EESI and to monetize the distribution rights to EES’ modular Technologies, (a) on July 8, 2019, JV-1 entered into a License and Operating Agreement – Major Terms Summary with Raul Factor BV (“RF”) pursuant to which the RF and JV-1 created a new joint venture to be named Easy Energy Systems – Europe (“EES-E”) and pursuant to which the EES-E Operating JV purchased the distribution rights for the EESI “MEPS®” technology for the territory of the European Union, and (b) on July 8, 2019, JV-1 entered into a License and Operating Agreement – Major Terms Summary with RF pursuant to which the parties created a new joint venture to be named Easy Energy Turf & Carpet (“EETC”) and pursuant to which the EETC Operating JV purchased the global distribution rights to EESI’s MEPS® technology for turf & carpet feedstock. Each of EES-E and EETC is owned 25% by us, 25% by EES and 50% by Raul Factor The aggregate purchase price paid for the licensing and distribution for EES-E and EETC was $150,000 (US).

In connection with and as part of the foregoing joint venture transactions with JV-1 and RF, on July 11, 2019, the principals of RF, who are existing holders of our common stock, purchased for an aggregate price of $200,000, 1,000,000 additional restricted shares of our common stock and warrants to purchase 1,000,000 restricted shares (at an exercise price of $0.25 per share) of our common stock, and pursuant to the EES-E and EETC Joint Ventures we agreed to use the proceeds from the sale of such shares and warrants to purchase from EESI the above mentioned EES-E and EETC distribution rights for an aggregate price of $150,000, and we then assigned such distribution rights to EES-E and EETC respectively. Raul Factor also agreed to invest the required reasonable funding as determined by the board of directors of EETC for the startup, working capital, specific module development and required 6 months of economic demonstration of carpet and artificial turf into energy or value-added products for EETC. Also, EES agreed to contribute its module technologies developed by or available via license agreements from others to EES further on to EES-E via license agreements conforming to the terms set forth in these License and Operating Agreements. Raul Factor also agreed to fund additional capital requirements;

Pursuant to this June 28, 2019, Binding Letter of Intent, the parties agreed to, among other things, that within 90 days from the date of the Binding Letter of Intent, we would raise $10,000,000 in capital for use by EESI. As of the date of this report, we were not able to raise such capital. In connection therewith, on October 29, 2019, delivered to us the terms of a proposed termination of the June 28, 2019 Binding Letter of Intent. As of the date of this report this the terms of such termination have not been finalized.

We intend to continue to pursue business opportunities in the energy and alternative energy industries, as well as other industries that we believe are viable and to obtain the financing needed for such opportunities. Our ability to pursue any future plan of operation is dependent upon our ability to obtain financing. To date, our primary sources of financing have been sales of our debt and equity securities.

Consulting Agreement

On April 9, 2019, we entered into a Consulting Agreement with Windsor Consulting Group to provide services related to our fund-raising efforts. Pursuant to this agreement, the Consultant agreed to make introductions to private “accredited investors”, but will not act in the capacity of selling agent or broker on behalf of the Company and the Consultant will not assist in the preparation of any offering documents or materials to be used in the solicitation of potential investors. On the successful completion of a financing transaction introduced by the Consultant, we agreed to compensate the Consultant as follows: in connection with equity financing, up to $220,000, including a $10,000 payment upon execution of the Consulting Agreement and a 3-year warrant to purchase 210,000 shares of the Company’s common stock at an exercise price of $1.00 per share; and in connection with debt financing, up to $60,000 plus a 3-year warrant to purchase up to 60,000 shares of the Company’s common stock at an exercise price of $1.00 per share. This agreement expired on October 7, 2020. No equity or debt financing transactions have been completed as of the date of this report.

Crowdfunding Agreement

On August 29, 2019, we entered into a month-to-month Listing and Marketing Agreement with Funding OTC (“FOTC”) to establish a crowd funding investment platform to raise approximately $1,000,000. We paid $15,000 for the initial engagement with FOTC. We plan to use funds received under the crowdfunding arrangement to further develop an “Ocean Clean-Up” initiative to use the Easy Energy Systems, Inc technology to convert plastic to fuel. For its services, FOTC will receive $37,500 per month - $15,000 from the Company and $22,500 from funds received under the agreement. In the event that the crowdfunding campaign is unsuccessful, we will bear no obligation or liability to otherwise pay the $22,500 to FOTC. As of the date of this report, no crowdfunding transaction has commenced, no funds have been raised under this agreement and no money is owed to FOTC pursuant to the terms of Listing and Marketing Agreement.

Competition

If we are able to obtain the substantial financing needed to develop, construct and operate the Stoughton Refinery in the Bakken region of Stoughton, Saskatchewan Canada, as a new entrant to the refining industry, we believe that we will face significant competition and barriers to entry from larger companies such as Valero Energy Corp and BP and others. Because of their geographic diversity, larger and more complex refineries, integrated operations and greater resources, some of our competitors may be better able to withstand volatile market conditions, to compete on the basis of price, to obtain crude oil in times of shortage, and to bear the economic risk inherent in all phases of the refining industry. Because we have not yet commenced the development or operation of the Stoughton Refinery, we have not commenced competing with other refineries or distributors of refined oil products.

Also, if we can commence operating the Stoughton Refinery and/or the Operating JVs commence operations, we will be competing with alternative energy sources, including, in particular, electricity. Electric utilities offer electricity as a rival energy source and compete for the space heating, water heating and cooking markets. Promotional incentives, improved equipment efficiencies and promotional rates all contribute to the acceptability of electrical equipment. The principal means to compete against alternative fuels is lower prices, and natural gas historically has maintained its price advantage in the residential, commercial and industrial markets.

Employees

We have noseven (7) employees as of the date of this report.

Intellectual Property

As of the date of this report, we do not own any patents, trademarks, licenses, franchises, concessions, and royalty agreements, or other intellectual property contracts., but the Company is actively in negotiations for an exclusive technical license from IEC, and is seeking to purchase, acquire, or license a series of wastewater technologies

Available Information

Our Periodic Reports including Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other reports, and amendments to those reports, and other forms that we file with or furnish to the Securities and Exchange Commission (SEC) are available to review on the SEC’s EDGAR website.

Corporate Governance

In accordance with and pursuant to relevant related rules and regulations of the SEC, the Board of Directors of the Company has established and periodically updated our Corporate Governance Guidelines and Code of Conduct, which is applicable to all directors, officers and employees of the Company. We have established an audit committee of our board of directors. We intend to appoint three directors to our audit committee and least one of the appointees shall be independent and shall be an audit committee financial expert.

ITEM 1A.

Risk Factors.

Not applicable to a smaller reporting company.

ITEM 2.

Properties.

Our corporate headquarters are comprised of 10,000 square feet of floor space located at 3825 Rockbottom Drive, ~~Henderson~~North Las Vegas, NV 89030. ~~The~~One ~~building~~of isour ~~owned~~shareholders bymakes athe ~~shareholder,~~office wespace ~~have~~available noto us without a lease, and we pay no rent.

ITEM 3.

Legal Proceedings.

None.

ITEM 4.

Mine Safety Disclosures.

Not applicable.

107

PART II

ITEM 5.

Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

Our common stock is currently available for trading on the OTC Pink (over-the-counter pink sheets) under the trading symbol “QEGY.” The following table sets forth the high and low bid prices (USD) for our Common Stock per quarter as reported by the OTC Markets based on our fiscal year end February 28, 2018, 2019, and 2020 ~~and our fiscal quarterly periods in 2019~~. These prices represent quotations between dealers without adjustment for retail mark-up, markdown or commission and may not represent actual transactions.

Fiscal Year 2020	HIGH		LOW
First Quarter (Mar. 1, 2019 – May 31, 2019)	$	.18	$	.15
Second Quarter (June 1, 2019 – August 31, 2019)		.14		.09
Third Quarter (Sept. 1, 2019 – Nov. 30, 2019)		.13		.05
Fourth Quarter (Dec. 1, 2019 – Feb. 28, 2020)		.27		.06
Fourth Quarter (Dec. 1, 2019 – Feb. 28, 2021)		.99		.20
Fiscal Year 2019
First Quarter (Mar. 1, 2018 – May 31, 2018)	$	0.25	$	0.106
Second Quarter (June 1, 2018 – August 31, 2018)		0.75		0.20
Third Quarter (Sept. 1, 2018 – Nov. 30, 2018)
Fourth Quarter (Dec. 1, 2018 – Feb. 28, 2019)
Fiscal Year 2018
First Quarter (Mar. 1, 2017 – May 31, 2017)		0.309		0.15
Second Quarter (Jun. 1, 2017- Aug. 31, 2017)		0.229		0.10
Third Quarter (Sept. 1, 2017 – Nov. 30, 2017)		0.165		0.153
Fourth Quarter (Dec. 1, 2017 – Feb. 28, 2018)		0.175		0.066

Holders

As of June 1, 2021, there were 58 holders of record of our common stock.

Dividends

We have not declared any cash dividends on our Common Stock since our inception and do not anticipate paying such dividends in the foreseeable future. We plan to retain any future earnings for use in our business. Any decisions as to future payments of dividends will depend on our earnings and financial position and such other facts, as the Board of Directors deems relevant.

Securities authorized for issuance under equity compensation plans

We have not adopted an equity compensation plan and no securities have been authorized or reserved for issuance under any equity compensation plan.

Description of Securities

The following description is a summary of the material terms of the provisions of our Articles of Incorporation and Bylaws. The Articles of Incorporation and Bylaws have been filed with the SEC as exhibits to our registration statement on Form S-1.

Common Stock

We are authorized to issue 495,000,000 shares of Common Stock with $0.001 par value per share. As of our fiscal year ended February 28, ~~2021~~2022, there were 4823,~~491~~016,~~485~~330 shares of Common Stock issued and outstanding and 3,688,524 shares reserved for issuance upon the exercise of issued and outstanding options.

Each share of Common Stock entitles the holder to one vote, either in person or by proxy, at meetings of stockholders. The holders are not permitted to vote their shares cumulatively. Accordingly, the holders of our Common Stock who hold, in the aggregate, more than fifty percent of the total voting rights can elect all of our directors and, in such event, the holders of the remaining minority shares will not be able to elect any of such directors. The vote of the holders of a majority of the issued and outstanding shares of Common Stock entitled to vote thereon is sufficient to authorize, affirm, ratify or consent to such act or action, except as otherwise provided by law.

Holders of Common Stock are entitled to receive ratably such dividends, if any, as may be declared by the Board of Directors out of funds legally available. We have not paid any dividends since our inception, and we presently anticipate that all earnings, if any, will be retained for development of our business. Any future disposition of dividends will be at the discretion of our Board of Directors and will depend upon, among other things, our future earnings, operating and financial condition, capital requirements, and other factors.

Holders of our Common Stock have no preemptive rights or other subscription rights, conversion rights, redemption or sinking fund provisions. Upon our liquidation, dissolution or windup, the holders of our Common Stock will be entitled to share ratably in the net assets legally available for distribution to stockholders after the payment of all of our debts and other liabilities. There are not any provisions in our Articles of Incorporation or our Bylaws that would prevent or delay change in our control.

Our stock transfer agent is ~~Pacific~~ClearTrust, ~~Stock Transfer~~LLC., located at ~~6725~~16540 ~~Via~~Pointe ~~Austi~~Village ~~Pkwy~~Dr, Suite ~~300,~~205 ~~Las Vegas~~Lutz, ~~Nevada~~Florida ~~89119~~33558.

Preferred Stock

We are authorized to issue 5,000,000 shares of preferred stock, par value $0.001 per share. As of our fiscal year ended February 28, ~~2021~~2022, ~~and as of~~ the ~~date~~Company ofissued ~~this report~~915,000 no shares of its preferred stock ~~were~~class ~~issued and outstanding~~D. Our preferred stock is not quoted on any market or system and there is currently no market for our preferred stock.

Promissory Notes

In April 2019, the Company borrowed $12,500 from Jeffrey Mallmes, President, Treasurer, and director of the Company, and $12,500 from Raleigh Kone, Co-Chairman of the Company’s board of directors, Executive Vice President, and director of the Company. These loans are evidenced by promissory demand notes which bear interest at the rate of 6% per annum, computed on the basis of actual number of days based upon a 360-day year. Each lender also received warrants to purchase 225,000 shares of the Company’s common stock. The warrants have an exercise price of $0.25 and expire three years after issuance. The principal and interest due under these notes are outstanding as of the issuance of these financial statements.

Separately in April 2019, the Company borrowed $3,325 from Raleigh Kone and John Provacek, which loans are evidenced by demand promissory notes that bear interest at the rate of 6% per annum. In connection with the loan from Mr. Provacek, the Company also issued to Mr. Provacek a warrant to purchase 25,000 shares of the Company’s common stock at an exercise price of $0.25, which warrant expires three years after issuance. The Company also borrowed $3,390, from Jeffrey Mallmes, which loan is evidenced by a demand promissory note that bears interest at the rate of 6% per annum.

On October 22, 2019 and October 23, 2019, the Company borrowed approximately $90,0000 from six of its current stockholders in reliance on the Regulation D and Regulation S exemptions from the securities registration requirement of the Securities Act of 1933, as amended. These loans are evidenced by promissory notes that bear interest at the rate of 8% per annum and are convertible into shares of the Company’s common stock, at $0.05 per share.

Emerging Growth Company

We are an emerging growth company under the JOBS Act. We shall continue to be deemed an emerging growth company until the earliest of:

1.	the last day of our first fiscal year following the fifth anniversary of the Company’s S-1 Registration which was declared effective on December 26, 2018;

2.	the last day of our fiscal year during which we had annual gross revenues are $1 billion or more;

3. the date on which we have, during the previous 3-year period, issued more than $1 billion in non-convertible debt securities; or

3.	the date on which we have, during the previous 3-year period, issued more than $1 billion in non-convertible debt securities; or

4.	the date on which we are deemed to be a “large accelerated filer”, as defined in section 240.12b-2 of title 46, Code of Federal Regulations, or any successor thereto.

4. the date on which we are deemed to be a “large accelerated filer”, as defined in section 240.12b-2 of title 46, Code of Federal Regulations, or any successor thereto.

As an emerging growth company, we are exempt from Section 404(a) and (b) of Sarbanes Oxley. Section 404(a) requires issuers to publish information in their annual reports concerning the scope and adequacy of the internal control structure and procedures for financial reporting. This statement shall also assess the effectiveness of such internal controls and procedures. Section 404(b) requires that the registered accounting firm shall, in the same report, attest to and report on the assessment and the effectiveness of the internal control structure and procedures for financial reporting.

As an emerging growth company, we are also exempt from Section 14A(a) and (b) of the Exchange Act, which require the stockholder approval of executive compensation and golden parachutes. These exemptions are also available to us as a Smaller Reporting Company.

We have elected to use the extended transition period for complying with new or revised accounting standards under Section 102(b)(2) of the Jobs Act, that allows us to delay the adoption of new or revised accounting standards that have different effective dates for public and private companies until those standards apply to private companies. As a result of this election, our financial statements may not be comparable to companies that comply with public company effective dates.

139

ITEM 6. Selected Financial Data

Not applicable to a smaller reporting company.

ITEM 7.

Management’s Discussion and Analysis of Financial Condition and Results of Operations.

INTRODUCTION

This section provides management’s discussion of the financial condition, changes in financial condition and results of operations of Quantum Energy Inc. with specific information on results of operations and liquidity and capital resources. It includes management’s interpretation of our financial results, the factors affecting these results, the major factors expected to affect future operating results and future investment and financing plans. This discussion should be read in conjunction with our consolidated financial statements and notes thereto.

Several factors exist that could influence our future financial performance, some of which are described in Item 1A above, “Risk Factors”. They should be considered in connection with evaluating forward-looking statements contained in this report or otherwise made by or on behalf of us since these factors could cause actual results and conditions to differ materially from those set out in such forward-looking statements.

Cautionary Statement for the Purposes of the Safe Harbor under the Private Securities Litigation Reform Act of 1995

The statements contained in this Annual Report on Form 10-K may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical fact included in this Report are forward-looking statements made in good faith by us and are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. When used in this Report, or any other of our documents or oral presentations, the words “anticipate”, “believe”, “estimate”, “expect”, “forecast”, “goal”, “intend”, “objective”, “plan”, “projection”, “seek”, “strategy” or similar words are intended to identify forward-looking statements. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the statements relating to our strategy, operations, markets, services, and other factors all of which are difficult to predict and many of which are beyond our control. Accordingly, while we believe these forward-looking statements to be reasonable, there can be no assurance that they will approximate actual experience or that the expectations derived from them will be realized. Further, we undertake no obligation to update or revise any of our forward-looking statements whether as a result of new information, future events or otherwise.

Results of Operations

Year Ended February 28, ~~2021~~2022 Compared to Year Ended February 2928, ~~2020~~2021.

~~Operating~~Sales ~~expenses~~ for the year ended February 28, ~~2021~~2022 ~~were~~was $~~210~~324,~~929~~240 compared to $~~234,359~~-0- for the year ended February 28, ~~2020~~2021. ~~The~~Cost ~~decrease~~of ingoods ~~operating~~sold ~~expenses~~for ~~was due to~~ the ~~fact~~year ~~that~~ended ~~the~~February ~~Company~~28, ~~had~~2022 nowas ~~cash~~$109,253 compared to ~~operate~~$-0- ~~therefore~~for ~~professional~~the ~~fees~~year ~~and~~ended ~~general~~February ~~and~~28, ~~administrative~~2021. Operating expenses ~~decreased~~for bythe ~~$109,126.~~year ~~Management~~ended ~~and~~February ~~consulting~~28, ~~fees~~2022 ~~however~~was ~~did~~$59,003,351 compared ~~increase~~to by $86622,~~584~~696 for the year ended February 28, 2021. ~~Other~~The increase in operating expenses was due to the fact that the Company had cash available and therefore were able to resume operations and their SEC filings. Other income and (expense) for the year ended February 28, ~~2021~~2022 ~~were~~was $611,~~470~~184,313 compared to $~~817~~(6,~~189~~814,746) for the year ended February 2928, ~~2020~~2021. During the year ended February 28, ~~2021~~2022 the Company had $~~-0-~~221,268 in ~~bad~~gain ~~debts~~on debt settlement, $2110,~~787~~616,456 in unrealized gain on ~~derivative~~common ~~for~~stock apayable, ~~convertible~~gain ~~note~~on issued common stock payable, ~~incurred~~of $28360,~~257~~000 ~~in interest expense~~ and ~~had~~ $~~-0-~~(13,411) in interest expense ~~– warrants~~, compared to the year ended February 2928, ~~2020~~2021 ~~when~~where the Company had $30(21,~~000~~787) ~~in bad debts, $138,185~~ loss on derivative for a convertible note payable, ~~incurred~~ $45(6,~~743~~808,276) in ~~interest~~unrealized ~~expense,~~loss ~~$453,261~~on incommon ~~interest~~stock ~~expense~~payable ~~– warrants~~ and incurred ($~~150~~28,~~000~~257) in ~~joint~~interest ~~venture write off~~expense.

Net Income (Loss)

Net income (loss) for the years ended February 28, ~~2021~~2022 and ~~February~~2021 ~~29, 2020~~ was ($~~217~~47,~~399~~604,051) and $1(7,~~051~~437,~~548~~442), respectively. The decrease in ~~loss~~income of $~~834~~(40,~~149~~166,609) was due to the ~~decrease~~sales of $324,240, the cost of goods sold of $109,253, the increase in operating expenses of $2358,~~430~~380,655 and ~~the~~increase ~~changes~~in to other ~~expenses~~income asand ~~mentioned~~(expense) ~~above~~of $17,999,059.

Liquidity and Capital Resources:

As of February 28, ~~2021~~2022, our assets totaled $4718,490,088 which consisted of $6,366,730 in cash, $118,358 in work in progress and $12,005,000 in deposits - related party. The Company's total liabilities were $121,~~130~~007,~~129,~~525 which consisted of accounts payable and accrued expenses, accounts payable and accrued expenses – related parties, common stock payable – for contracts/agreements, ~~convertible~~, ~~note~~common stock payable, ~~derivative~~– ~~liability~~deposits received on subscriptions agreements, promissory notes payable and promissory notes payable – related parties. As of February 28, ~~2021~~2022, the Company had an accumulated deficit of $1267,~~628~~452,~~254~~348 and working capital deficit of $114,~~130~~522,~~082~~437.

~~The~~Cash ~~Company's~~Used ~~significant~~in ~~operating~~Operating losses raise substantial doubt about its ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. As indicated herein, we need capital for the implementation of our business plan, and we will need additional capital for continuing our operations. We do not have sufficient revenues to pay our operating expenses at this time. Unless the Company is able to raise working capital, it is likely that the Company will either have to cease operations or substantially change its methods of operations or change its business plan. For the next 12 months the Company has an oral commitment from its CEO to advance funds as necessary to meeting our operating requirement.Activities

~~Cash~~Net ~~(Used~~cash used in) ~~Operating~~operating ~~Activities~~activities for the years ended February 28, 2022 and 2021 was $3,426,104 and $210,367, respectively. The increase in the amount used was attributed to the resumption of operations.

Net cash used in operating activities for the year ended February 28, 2021 and February 29, 2020 was $-0- and $206,571, respectively. The decrease amount was attributed to interest expense on convertible note warrants, joint venture write off and (gain) loss on derivative.

Cash from Investing Activities

Net cash used in investing activities was $~~-0-~~11,618,261 and $~~150~~1,200,000 for the ~~year~~years ended February 28, ~~2021~~2022 and ~~February 29~~2021, ~~2020~~respectively due to the purchase of treasury stock of $813,261 ~~respectively~~and deposits to a related party of $10,805,000.

Cash from Financing Activities

Net cash provided by financing activities was $~~-0-~~19,441,587 and $3,379,828 for the ~~year~~for the years ended February 28, ~~2021,~~2022 and ~~was~~2021, ~~$355~~respectively,~~040~~ ~~for~~which ~~year~~was ~~ended~~due ~~February~~to ~~29,~~cash ~~2020~~received ~~which~~from ~~was~~sale ~~all~~of ~~due~~common tostock of $25,000, cash received from ~~notes~~sale of common stock subscriptions of $19,484,087 and repayment of a convertible note payable of $67,500.

1510

CRITICAL ACCOUNTING POLICIES

The Company has identified certain accounting policies, described below, that are most important to the portrayal of its current financial condition and results of operations. The Company’s significant accounting policies are disclosed in the notes to the audited financial statements included in this Annual Report.

ITEM 7A.

Quantitative and Qualitative Disclosures About Market Risk.

~~The~~Not ~~Company does not hold any derivative instruments and does not engage in any hedging activities~~applicable.

ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

Index to Financial Statements:

~~Audited~~B ~~financial~~F ~~statements~~Borgers asCPA ofPC FirmID ~~February~~5041 Denver ~~28,~~Colorado. ~~2021,~~United ~~including:~~States

1.Audited ~~Report~~financial ofstatements ~~Independent Registered Public Accounting Firm; 2. Consolidated Balance Sheets~~ as of February 28, ~~2021 and 2020; 3. Consolidated Statements of Operations for the years ended February 28~~2022, 2021 and 2020; 4. Consolidated Statement of Changes in Stockholders’ Deficit for the years ended February 28, 2021 and 2020; 5. Consolidated Statements of Cash Flows for the years ended February 28, 2021 and 2020; 6. Consolidated Notes to Financial Statements.including:

161. Report of Independent Registered Public Accounting Firm; 2. Consolidated Balance Sheets as of February 28, 2022 and 2020; 3. Consolidated Statements of Operations for the years ended February 28, 2022 and 2020; 4. Consolidated Statement of Changes in Stockholders’ Deficit for the years ended February 28, 2022 and 2020; 5. Consolidated Statements of Cash Flows for the years ended February 28, 2022 and 2020; 6. Consolidated Notes to Financial Statements.

Report of Independent Registered Public Accounting Firm

To the shareholders and the board of directors of Quantum Energy, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance ~~sheet~~sheets of Quantum Energy, Inc. ~~(the "Company")~~ as of February 28, 2022 and 2021, the related ~~statement~~statements of operations, stockholders' equity (deficit), and cash flows for the ~~year~~years then ended, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of February 28, 2022 and 2021, and the results of its operations and its cash flows for the ~~year~~years then ended, in conformity with accounting principles generally accepted in the United States.

Substantial Doubt about the Company’s Ability to Continue as a Going Concern

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 3 to the financial statements, the Company has suffered recurring losses from operations and has a significant accumulated deficit. In addition, the Company continues to experience negative cash flows from operations. These factors raise substantial doubt about the Company's ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 3. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

~~Substantial~~/S/ ~~Doubt~~BF ~~about~~Borgers ~~the~~CPA ~~Company’s Ability to Continue as a Going Concern~~PC

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 3 to the financial statements, the Company’s significant operating losses raise substantial doubt about its ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

/s BF Borgers CPA PC

BF Borgers CPA PC

We have served as the Company's auditor since 2020

PCAOB ID 5041

Lakewood, CO

~~June~~August 1425, ~~2021~~2022

1712

QUANTUM ENERGY, INC. CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS

				(Restated)
February 28,	2022			2021

ASSETS
Current Assets
Cash	$	6,366,730		$	1,969,508
Work in Progress		118,358			—

Total Current Assets		6,485,088			1,969,508

Deposits - Related Party		12,005,000			1,200,000

Total Assets	$	18,490,088		$	3,169,508


LIABILITIES AND STOCKHOLDERS' DEFICIT

Current Liabilities
Accounts Payable and Accrued Expenses	$	166,080		$	220,140
Accounts Payable and Accrued Expenses - Related Parties		217,584			305,170
Common Stock Payable - for Contracts/Agreements		1,990,107			1,500,000
Common Stock Payable - Deposits Received on Subscription Agreements		18,515,734			9,128,104
Convertible Note Payable		—			67,500
Derivative Liability		—			116,399
Promissory Notes Payable		76,305			76,305
Promissory Notes Payable - Related Parties		41,715			106,015

Total Current Liabilities		21,007,525			11,519,633

Total Liabilities		21,007,525			11,519,633

Stockholders' Deficit
Preferred Stock Class D - $0.001 Par; 1,500,000 Shares Authorized, 915,000 and -0- Issued and Outstanding, Respectively		915			—
Common Stock - $0.001 Par; 495,000,000 Shares Authorized, 332,324 and 323,277 Issued; 332,324 and 323,277 Outstanding, Respectively		332			323
Additional Paid-In-Capital		64,933,850			11,497,849
Accumulated Deficit		(67,452,348	)		(19,848,297	)
Treasury Stock - 186,096 Shares at Par $0.001		(186	)		—

Total Stockholders' Deficit		(2,517,437	)		(8,350,125	)

Total Liabilities and Stockholders' Deficit	$	18,490,088		$	3,169,508

	February 28, 2021			February 28, 2020
ASSETS
CURRENT ASSETS:
Cash	$	47		$	47
TOTAL CURRENT ASSETS		47			47
Deposits		--			--
TOTAL ASSETS	$	47		$	47
LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES:
Accounts payable and accrued liabilities	$	220,140		$	147,888
Accounts payable and accrued liabilities, related parties		343,770			176,837
Common stock payable		200,000			200,000
Convertible note payable		67,500			67,500
Derivative liability		116,399			138,185
Promissory notes payable		76,305			76,305
Promissory notes payable, related parties		106,015			106,015
					-
TOTAL CURRENT LIABILITIES		1,130,129			912,730
TOTAL LIABILITIES		1,130,129			912,730
STOCKHOLDERS' DEFICIT
Common Stock, $.001 par value; 495,000,000 shares authorized; 48,491,485 shares issued and outstanding, respectively		48,491			48,491
Additional paid-in capital		11,449,681			11,449,681
Accumulated deficit		(12,628,254	)		(12,410,855	)
TOTAL STOCKHOLDERS' DEFICIT		(1,130,082	)		(912,683	)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$	47		$	47

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

1813

QUANTUM ENERGY, INC. CONSOLIDATED STATEMENTS OF OPERATIONS

CONSOLIDATED STATEMENTS OF OPERATIONS

				(Restated)
For the Years Ended February 28,	2022			2021

Sales	$	324,240		$	—

Cost of Goods Sold		109,253			—

Gross Profit		214,987			—

Operating Expenses
General and Administrative		1,816,320			240,467
Management Fees and Consulting		55,636,607			98,334
Professional Fees		1,550,424			283,895

Total Operating Expenses		59,003,351			622,696

Loss Before Other Income and (Expense)		(58,788,364	)		(622,696	)

Other Income and (Expense)
Gain on Debt Settlement		221,268			—
Gain (Loss) on Derivative		—			21,787
Unrealized Gain (Loss) on Common Stock Payable		10,616,456			(6,808,276	)
Gain on Issued Common Stock Payable		360,000			—
Interest Expense		(13,411	)		(28,257	)

Total Other Income and (Expense)		11,184,313			(6,814,746	)

Income (Loss) Before Income Tax Expense		(47,604,051	)		(7,437,442	)

Income Tax Expense		—			—

Net Income (Loss)	$	(47,604,051	)	$	(7,437,442	)

Weighted Average Number of Common Shares - Basic and Diluted		45,798,221			48,491,485
Net Income (Loss) Per Common Shares - Basic and Diluted	$	(1.04	)	$	(0.15	)

	For the year ended
	February 28, 2021			February 29, 2020
OPERATING EXPENSE
Advertising and marketing	$	--		$	888
Management fees and compensation		98,334			11,750
General and administrative		--			37,791
Professional fees		112,595			183,930
TOTAL OPERATING EXPENSES		210,929			234,359
Other Expenses
Bad Debts		--			30,000
Loss on derivative		(21,787	)		138,185
Interest expense		28,257			45,743
Interest expense - warrants		--			453,261
Joint Venture – write off		--			150,000
Total Other Expenses		6,470			817,189
Total Expenses
Loss before income tax expense		(217,399	)		(1,051,548	)
Income tax expense		-			-
NET LOSS		(217,399	)		(1,051,548	)
Weighted Average Number of Common shares
Basic and diluted	$	48,491.485		$	48,491,485
Net Loss per common shares
Basic and diluted loss per share	$	(0.00	)	$	(0.02	)
Basic and diluted weighted average number shares outstanding

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

1914

QUANTUM ENERGY, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT FOR THE THREE AND NINE MONTHS ENDED FEBRUARY 28, 2021 AND FEBRUARY 29, 2020 - UNAUDITED

				(Restated)
For the Years Ended February 28,	2022			2021

Cash Flows from Operating Activities

Net Income (Loss) for the Period	$	(47,604,051	)	$	(7,437,442	)

Non-Cash Adjustments:
Common Stock Subscribed for Rent		—			240,000
Preferred Stock Issued for Consulting Services		53,985,000			—
Common Stock Payable for Consulting Services		1,610,107			—
Gain on Derivative		—			(21,787	)
Unrealized (Gain) Loss on Common Stock Payable		(10,616,456	)		6,808,276
Gain on Debt Settlement		(221,268	)		—
Gain on Issued Common Stock Payable		(360,000	)		—
Changes in Assets and Liabilities:
Work In Progress		(118,358	)		—
Accounts Payable and Accrued Expenses		(30,065	)		72,253
Accounts Payable and Accrued Expenses - Related Parties		(71,013	)		128,333

Net Cash Flows Used In Operating Activities		(3,426,104	)		(210,367	)

Cash Flows from Investing Activities
Cash Purchase of Treasury Stock		(813,261	)		—
Deposits - Related Party		(10,805,000	)		(1,200,000	)

Net Cash Flows Used In Investing Activities		(11,618,261	)		(1,200,000	)

Cash Flows from Financing Activities
Cash Purchase of Common Stock		25,000			—
Proceeds from Stock Subscription		19,484,087			3,379,828
Repayment of Convertible Note Payable		(67,500	)		—

Net Cash Flows Provided By Financing Activities		19,441,587			3,379,828

Net Change in Cash		4,397,222			1,969,461

Cash - Beginning of Year		1,969,508			47

Cash - End of Year	$	6,366,730		$	1,969,508

Cash Paid During the Year for:
Interest	$	2,500		$	—
Income Taxes	$	—		$	—

	Common Stock				Additional					Total
	$0.001 Par				Paid-In		Accumulated			Stockholders'
	Shares		Amount		Capital		Deficit			Deficit
Balance – March 1, 2019	$	48,491,485	$	48,491	$	10,996,420	$	(11,359,307	)	$	(314,396	)
Value of Warrants for Convertible Note		—		—		453,261		—			453,261
Net Loss		—		—		—		(1,051,548	)		(1,051,548	)
Balance – February 29, 2020	$	48,491,485	$	48,491	$	11,449,681	$	(12,410,855	)	$	(912,683	)
Net Loss		—		—		—		(217,399	)		(217,399	)
Balance – February 28, 2021		48,491,485	$	48,491	$	11,449,681	$	(12,628,254	)	$	(1,130,082	)

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

2015

~~QUANTUM~~CONSOLIDATED ~~ENERGY~~STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT FOR THE YEARS ENDED FEBRUARY 28, ~~INC.~~2022 AND FEBRUARY 29, 2020

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Preferred Stock Class D				Common Stock				Additional					Treasury Stock				Total
	$0.001 Par				$0.001 Par				Paid-In		Accumulated			$0.001 Par				Stockholders'
For the Years Ended February 28, 2021	Shares		Amount		Shares		Amount		Capital		Deficit			Shares		Amount		Deficit

Balance - March 1, 2020		—	$	—		323,277	$	323	$	11,497,849	$	(12,410,855	)		—	$	—	$	(912,683	)

Net Loss		—		—		—		—		—		(7,437,442	)		—		—		(7,437,442	)

Balance - February 28, 2021		—	$	—		323,277	$	323	$	11,497,849	$	(19,848,297	)		—	$	—	$	(8,350,125	)

	For the year ended
	Preferred Stock Class D						Common Stock				Additional						Treasury Stock					Total
	February 28, 2021			February 29, 2020
	$0.001 Par						$0.001 Par				Paid-In			Accumulated			$0.001 Par					Stockholders'
CASH FLOWS FROM OPERATING ACTIVITIES:
For the Years Ended February 28, 2022	Shares			Amount			Shares		Amount		Capital			Deficit			Shares		Amount			Deficit
Net loss	$	(217,399	)	$	(1,051,548	)
Balance - March 1, 2021		—		$	—			323,277	$	323	$	11,497,849		$	(19,848,297	)		—	$	—		$	(8,350,125	)
Non Cash Adjustments
Issuance of Preferred Stock		915,000			915			—		—		53,984,085			—			—		—			53,985,000
Bad debts		-			30,000
Cash Purchase of Common Stock		—			—			2,381		2		24,998			—			—		—			25,000
Deposits written off		-			7,822
Common Stock Issued from Subscriptions		—			—			6,667		7		239,993			—			—		—			240,000
(Gain) Loss on derivative		(21,787	)		138,185
Purchase of Treasury Stock		—			—			—		—		(813,075	)		—			186,096		(186	)		(813,261	)
Interest on default of convertible note		-			22,500
Net Income								—		—		—			(47,604,051	)		—		—			(47,604,051	)
Interest expense on convertible note warrants		-			453,261
Balance - February 28, 2022		915,000		$	915			332,324	$	332	$	64,933,850		$	(67,452,348	)		186,096	$	(186	)	$	(2,517,437	)
Joint venture – write off		-			150,000
Changes in assets and liabilities:
Notes receivable		-			(30,000	)
Accounts payable and accrued liabilities		72,253			79,557
Accounts payable and accrued liabilities, related parties		166,933			(6,348	)
Net Cash Flows Used in Operating Activities		-			(206,571	)
Cash Flows from Investing Activities
Investment in Joint Venture		-			(150,000	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from notes payable		-			68,325
Proceeds from stock subscription		-			200,000
Cash proceeds received from convertible note payable		-			45,000
Proceeds from notes payable, related party		-			41,715
Net Cash Provided By Financing Activities		-			355,040
Net Change in Cash		-			(1,531	)
Cash Beginning of Year		47			1,578
Cash End of Year	$	47		$	47
Cash Paid During the Year for:
Interest	$	-		$	-
Income Taxes		-			-

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

2116

NOTE 1 -

NATURE OF OPERATIONS

QUANTUM ENERGY INC. (“the Company”) was incorporated under the name “Boomers Cultural Development Inc.” under the laws of the State of Nevada on February 5, 2004. On May 18, 2006, the Company changed its name to Quantum Energy, Inc.

The Company is a development stage diversified holding company with an emphasis in land holdings, refinery and fuel distribution.

The Company is domiciled in the Unites States of America and trades on the OTC market under the symbol QEGY.

NOTE 2 -

SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

This summary of significant accounting policies is presented to assist in understanding the financial statements. The financial statements and notes are representations of the Company’s management, which is responsible for their integrity and objectivity. These financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”).

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries FTPM Resources Ltd. and Dominion Energy Processing Group, Inc. after elimination of the intercompany accounts and transactions.

Use of Estimates

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

Risks and uncertainties

The Company’s operations are subject to significant risks and uncertainties, including financial, operational, technological and other risks associated with operating an emerging business, including the potential risk of business failure.

Cash and cash equivalents

The Company considers all highly liquid investments with original maturities of three months or less when acquired to be cash equivalents.

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES - continued

Fair value of financial instruments

The Company's financial instruments include cash and cash equivalents, promissory notes payable, and promissory notes payable - related parties. All instruments are accounted for on a cost basis, which, due to the short maturity of these financial instruments, approximates fair value at February 28, ~~2021~~2022 and ~~February 29~~2021, ~~2020,~~ respectively.

When required to measure assets or liabilities at fair value, the Company uses a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used. The Company determines the level within the fair value hierarchy in which the fair value measurements in their entirety fall. The categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Level 1 uses quoted prices in active markets for identical assets or liabilities, Level 2 uses significant other observable inputs, and Level 3 uses significant unobservable inputs. The amount of the total gains or losses for the period are included in earnings that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date.

At February 28, ~~2021~~2022 and ~~February 29~~2021, ~~2020,~~ the Company had no assets or liabilities accounted for at fair value on a recurring basis.

NOTE 2 -

SIGNIFICANT ACCOUNTING POLICIES - continued

Long-Lived Assets

The Company reviews long-lived assets which include a deposit on land purchase for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Events relating to recoverability may include significant unfavorable changes in business conditions or a forecasted inability to achieve break-even operating results over an extended period. The Company evaluates the recoverability of long-lived assets based upon forecasted undiscounted cash flows and reports any impairment at the lower of the carrying amount or the fair value less costs to sell.

Stock-based Compensation

The Company estimates the fair value of options to purchase common stock using the Black-Scholes model, which requires the input of some subjective assumptions. These assumptions include estimating the length of time stock options will be held before they are exercised (“expected life”), the estimated volatility of the Company’s common stock price over the expected term (“volatility”), forfeiture rate, the risk-free interest rate and the dividend yield. Changes in the subjective assumptions can materially affect the estimate of fair value of stock-based compensation. Options granted have a ten-year maximum term and varying vesting periods as determined by the Board of Directors. The value of shares of common stock awards is determined based on the closing price of the Company’s stock on the date of the award.

Related Parties

In accordance with ASC 850 “Related Party Disclosure”, a party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company; its directors, officers, and management; members of the immediate families of principal owners of the Company and its management; and other parties with which the Company may deal with if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests.

New Accounting Pronouncements

The Company has implemented all new accounting pronouncements that are in effect and is evaluating any that may impact its financial statements, including the new lease standard. The Company does not have any leases and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

23NOTE 3 - GOING CONCERN

NOTE 3 – GOING CONCERN

These consolidated financial statements have been prepared in accordance with U.S. GAAP to a going concern, which assumes that the Company will be able to meet its obligations and continue its operations for the next twelve months.

As shown in the accompanying financial statements, the Company has incurred operating losses since inception. As of February 28, ~~2021~~2022 and ~~February 29~~2021, ~~2020,~~ the Company has limited financial resources with which to achieve the objectives and obtain profitability and positive cash flows. As shown in the accompanying ~~condensed~~ consolidated balance sheets and ~~condensed~~ consolidated statements of operations, the Company has an accumulated deficit and a working capital deficit at February 28, ~~2021~~2022 and ~~February 29, 2020~~2021. Achievement of the Company's objectives will be dependent upon the ability to obtain additional financing, generate revenue from current and planned business operations, and control costs. The Company plans to fund its future operations by joint venturing, obtaining additional financing from investors, and/or lenders, and attaining additional commercial revenue. However, there is no assurance that the Company will be able to achieve these objectives, therefore substantial doubt about its ability to continue as a going concern exists.

~~NOTE 4 – EARNINGS PER SHARE~~18

NOTE 4 -

EARNINGS PER SHARE

Basic Earnings Per Share (“EPS”) is computed as net income (loss) available to common stockholders divided by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from common shares issuable through stock options and warrants.

The dilutive effect of outstanding securities as of February 28, ~~2021~~2022 and ~~February 29~~2021, ~~2020,~~ respectively, would be as follows:

	February 28, 2021		February 29, 2020
	February 28, 2022		February 28, 2021
Warrants		21,925,000		32,925,000
TOTAL POSSIBLE DILUTION		21,925,000		3,925,000

At February 28, ~~2021~~2022 and ~~February 29~~2021, ~~2020,~~ respectively, the effect of the Company's outstanding options and warrants would have been anti-dilutive.

NOTE 5 –- OTHER ASSETS

~~Peconic~~Work ~~Note~~in ~~Receivable~~Progress

OnWork ~~April~~in ~~17,~~progress ~~2019,~~consists ~~the Company loaned funds under a secured convertible promissory note (“Peconic Note”) to Peconic Energy, Inc. (“Peconic”) for the principal amount~~ of ~~$30,000~~partially ~~with~~manufactured ~~the principal balance~~ and ~~all~~raw ~~accrued~~rare ~~interest~~earth ~~being~~metal ~~due~~products ~~and~~used ~~payable~~in 18production months from the date of the note. Interest shall be accrued at rate of 12% per annum or 40% of the gross revenues generated by the maker, whichever is greater. The Peconic Note is secured by 100% of the Peconic’s assets and is convertible at any time during the term of the note into 40% of the Peconic’s assets. For the period ended May 31, 2019, it was determined that it was highly unlikely that the Company would collect this note receivable. Therefore, the Company allowed for this note in the amount of $30118,~~000~~358 onat ~~May~~February 3128, ~~2019~~2022.

24Deposits – Related Party

~~NOTE~~Deposits 5 – ~~OTHER~~Related ~~ASSETS~~Party consist of deposits made to a related party that share board members of the Company. A with a letter of intent signed on October 12,2021 calls for the purchase of shares of common stock of the related party to obtain a majority stake at $2.10 for up to eighteen (18) months with closing on December 15, 2022. The letter of intent is non-binding ~~continued~~and if the majority shares are not obtained the deal is terminated and the money is refunded. Hence, the classification of deposits of $12,005,000 at February 28, 2022. The Company is expecting to acquire majority ownership by the closing date.

~~Deposit~~NOTE on6 ~~land~~- ~~purchase~~PROMISSORY and CONVERTIBLE NOTES PAYABLE

On December 5, 2016, the Company executed a Farm Contract of Purchase and Sale with a landowner in Stoughton, Saskatchewan (“the Stoughton Agreement”). The purchase price of the property is $500,000 (Canadian) subject to certain terms and conditions including approval of the purchase by the Saskatchewan Farmland Review board, the Company completing various test for hydrology and land suitability, the proposed refinery project meeting all requirements of various Saskatchewan government laws and bylaws, and full approval by all levels of provincial government and agencies. The Company paid $7,822 as a deposit on the property.

The purchase contract originally expired on December 15, 2017; however, the contract was amended to extend the closing date to July 10, 2018 for removal of all terms and conditions to the purchase.

On June 8, 2018, the Company amended the Stoughton Agreement to a purchase price of $525,000 (Canadian) and extended the option to purchase the property until December 31, 2018 for no additional consideration. The Stoughton Agreement expired on December 31, 2018.

On June 3, 2019, by mutual agreement of the parties, the Stoughton Agreement was extended until October 31, 2019 for no additional consideration. At the date of the report for the period ended May 31, 2019, the Stoughton Agreement had been terminated. (Note 13). Due to the termination of the agreement, the Company reclassed this deposit of $7,822 to accounts payable related party as the deposit was refunded but the money was given to a related party to pay amounts due him.

NOTE 6 – PROMISSORY and CONVERTIBLE NOTES PAYABLE

The Company’s outstanding notes payable are summarized as follows:

	February 28, 2021		February 29 2020
	February 28 2022		February 28 2021
0% unsecured note payable - December 2013, due on demand	$	2,000	$	2,000
0% unsecured note payable - November 2015, due on demand		980		980
8% unsecured note payable - October 2018, due on demand		5,000		5,000
6% unsecured note payable – April 2019, due on demand		3,325		3,325
8% unsecured notes payable - October 2019, due on demand		65,000		65,000
Total Notes Payable	$	76,305	$	76,305

Interest expense for the years ended February 28, ~~2021~~2022 and ~~February~~2021 ~~29, 2020~~ was $5,~~807and~~814 and $25,~~805~~807, respectively.

Convertible note payable consists of one note payable in the amount of $-0- and $67,500 at February 28, ~~2021~~2022 and ~~February 29~~2021, ~~2020,~~ respectively. The note which was issued in April 2019 for $45,000 ~~accrues~~accrued interest at an annual rate of 12% and ~~matures~~matured in April 2020. In the event of default, the note principal is increased by 150% times the outstanding principal and provides for default interest at 22%. ~~Interest~~The ~~expense~~conversion ~~for~~option ~~the~~expired years ended February 28, 2021 and February 29, 2020 was $14,852 and $34,144, respectively. Due to the conversation features of this note the Company calculated a derivative utilizing a Black Scholes method. This method used the following inputs to obtain the derivative value on ~~February~~October 287, 2021. Stock value of $0.75, discounted exercise price of 39% of the lowest stock market price 20 days prior to the valuation date, volatility of 403.96%. Discount Bond equivalent yield of 0.080%. Derivative liability at February 28, 2021 was $116,399 and (gain) loss on derivatives for the years ended February 28, 2021 and February 29, 2020 ~~was $(21,787) and $138,185, respectively~~.

2519

NOTE 6 –- PROMISSORY and CONVERTIBLE NOTES PAYABLE - continued

~~The conversion option expires on October 7, 2020.~~ On June 18, 2019, the Company received a default notice from Power Up stating that the Company iswas in default under the Power Up Note because, among other reasons, the Company failed to comply with the reporting requirements of the Securities Exchange Act of 1934 as required by the Note, and therefore accelerating the terms of the Power Up Note and demanding that the Company pay the default sum of $67,500 together with accrued interest and accrued default interest with respect to the Power Up Note. The Company reached a settlement of this matter with Power Up as of April 2021 in the amount of $70,200. Included in gain on debt conversion of $140,395 for the year ended February 28, 2022, is $23,996 of accrued interest that was not paid and $116,399 of derivative liability.

NOTE 7 –- PROMISSORY NOTES PAYABLE, RELATED PARTY AND OTHER RELATED PARTY TRANSACTIONS

The Company’s outstanding notes payable, related party are summarized as follows:

	February 28, 2021		February 29, 2020
	February 28, 2022			February 28, 2021
0% unsecured note payable - October 2015, due on demand	$	2,300	$	2,300
0% unsecured note payable - October 2015, due on demand -written off in settlement		––		$	2,300
0% unsecured note payable – November 2015, due on demand		2,000		2,000
0% unsecured note payable – November 2015, due on demand – written off in settlement		––			2,000
8% unsecured note payable - October 2018, due on demand		60,000		60,000
8% unsecured note payable - October 2018, due on demand – written off in settlement		––			60,000
6% unsecured note payable – April 2019, due on demand		15,825		~~15,825~~	15,825
6% unsecured note payable – April 2019, due on demand		15,890		~~15,890~~	15,890
8% unsecured note payable - October 2019, due on demand		10,000		~~10,000~~	10,000
TOTAL	$	~~106~~41,~~015~~715	$	~~106,015~~$	106,015

Interest expense for the years ended February 28, ~~2021~~2022 and ~~February~~2021 ~~29, 2020~~ was $7,~~598~~597 and $87,~~794~~598, respectively.

Starting January 1, 2019, the Company began accruing a monthly management fee of $15,000 due to an advisory company owned by Andrew J. Kacic, the Company’s former chief executive officer (“CEO”). During the year ended February 28, 2019, the Company recognized management fees of $30,000 under this agreement which amount is included in “Accounts payable and accrued liabilities, related parties” on the consolidated balance sheet at February 28, 2019. Since February 28, 2019, no additional management fees have been accrued since the parties are in dispute. There were no similar management fees due the CEO prior to December 31, 2018. Certain directors and officers of the Company dispute the management fee asserting that no consulting agreement has been executed. It is possible that the amount ultimately paid to the advisory company will be other than the accrued balance of $30,000 due to continuing negotiations between the board of directors and the former CEO. The disputed amount as of the date of these financials is $150,000, which is the remaining 10 (ten) months of the management fee for the calendar year ended 2019. Amounts due to Andrew Kacic at ~~February~~November 2830, 2021 and February 2928, ~~2020~~2021 were $107,868 and $17,868, respectively. In January 2022, the Company settled their dispute with Andrew Kacic and paid him $88,000. Included in this settlement was $107,868 in accounts payable – related parties, $64,300 in notes payable related parties and $16,573 in accrued interest – related parties. Write off of the notes payable and the accrued interest are included in gain on debt conversion in the amount of $80,873 for the year ended February 28, 2022. Write off of $19,868 of accounts payable related parties is included in professional fees at February 28, 2022.

Certain officers, directors and ~~directors~~other related parties of the Company ~~had~~have paid various expenses on behalf of the Company. Balances due to the officers, directors and a related company for reimbursement of these expenses were $~~235~~198,~~902~~803 and $~~158~~197,~~969~~302 at February ~~28,~~2022 ~~2021and~~and February 2928, ~~2020~~2021, respectively, which amounts are included in “Accounts payable and accrued liabilities - related parties” on the consolidated balance sheets.

2620

NOTE 8 –- COMMON STOCK PAYABLE

Common Stock Payable – for Contracts/Agreements

Common stock payable for contracts/agreements consist of 1 million shares owed to Raul Factor per the joint venture agreement (Note 11) and 1 million shares owed to landlord for rent at February 28, 2021. On June 7, 2021, 6,667 shares were issued to the landlord. These shares were adjusted to its fair value of $600,000 on June 7, 2021, and $150,000 was recognized as unrealized gain on that date. The Company also recognized a gain on the issuance of these shares in the amount of $360,000. At February 28, 2022, the fair value of the remaining shares owed to Raul Factor were adjusted to its fair value of $380,000 based on the closing price of the stock on that date. The Company recognized unrealized gain (loss) on common stock payable of $370,000 and $(1,060,000) during the years ended February 28, 2022 and 2021, respectively. At February 28, 2022 the Company also owed 3,354,037 shares to various people which was valued at the market rate at date of agreement totaling $1,610,107.

Common Stock Payable – Deposits Received on Subscriptions Agreements

Common stock payable for deposits received on stock subscription agreements consist of 48,898,440 shares owed to various investors who have paid for these shares. At February 28, 2022, the fair value of the these shares were adjusted to its fair value of $18,515,734 based on the closing price of the stock on that date. The Company recognized unrealized gain (loss) on common stock payable of $10,246,456 and $(5,748,276) during years ended February 28, 2022 and 2021, respectively.

NOTE 9 -

COMMON STOCK

Common stock

The Company is authorized to issue 495,000,000 shares of its common stock with a par value of $0.001 per share. All shares of common stock are equal to each other with respect to voting, liquidation, dividend, and other rights. Owners of shares are entitled to one vote for each share owned at any Shareholders’ meeting.

On February 23, 2022, the board of directors approved a 150 to 1 reverse stock split. The reverse has been retrospectively accounted for at March 1, 2020 in the statements of changes in stockholders’ deficit.

Preferred stock

The Company is authorized to issue 5,000,000 shares of its preferred stock with a no-par value per share with no designation of rights and preferences. The Company issued 915,000 shares of its preferred stock class D to pay consulting services in the amount of $53,985,000 during the year ended February 28, 2022. These shares have voting rights of 100 to 1. The shares value was based on the market price of the Company’s common stock of $0.59 on the measurement date multiplied by the voting rights of 100. The reverse stock split did not affect preferred stock.

~~NOTE~~Treasury ~~9 - WARRANTS~~Stock

OnDuring ~~July~~year ~~10,~~ended ~~2017~~February 28, ~~in conjunction with a Private Placement~~2022, the Company ~~issued~~bought ~~500~~back 27,~~000~~914,411 ~~warrants to purchase~~ shares of ~~the~~its ~~Company’s~~ common stock ~~with~~in anthe ~~exercise~~amount ~~price~~ of $~~0.21~~813,261 ~~per~~and ~~share~~placed ~~expiring~~it in ~~one year~~treasury. InOn ~~March~~February ~~2018~~23, ~~by mutual agreement~~2022, the ~~Company~~board ~~amended~~of ~~500,000~~directors ~~common~~approved ~~stock~~a ~~purchase~~150 ~~warrants~~to ~~from~~1 anreverse ~~exercise~~stock ~~price~~split. ofThe ~~$0.21~~reverse ~~per~~has ~~share~~been toretrospectively ~~$1.00~~accounted ~~per~~for ~~share~~at ~~and~~March ~~extended~~1, 2020 in the ~~expiration~~statements ~~date~~of tochanges ~~June~~in 9,stockholders’ ~~2020~~deficit.

On March 20, 2019 and April 17, 2019, the Company issued 1,250,000 and 675,000 warrants respectively to purchase 1,925,000 additional shares of its common stock to eight investors. Each warrant is for thirty-six months from date of issuance with an exercise price of $0.25. The value of the warrants calculated at March 20 and April 17, 2019 was $200,439 and $76,243 for a combined total of $276,682 and is in included in interest expense - warrants on the consolidated statements of operations for the year ended February 29, 2020. The value of the warrants was calculated utilizing a Black Scholes method which used the market value of the stock based on the issue date, an exercise price of $0.25, a volatility of 228% and a discount bond equivalent range of 2.34% - 2.37%.21

OnNOTE ~~June~~10 28, 2019, the Company issued 1,000,000 warrants with an exercise price of $0.25. On the same date the Company also extended the term of 1,000,000 warrants and adjusted the exercise price of these warrants to $0.25. The term of the new warrants are for eighteen months from date of issuance. The extended warrants term is 500,000 for two years and 500,000 for two and a half years. The value of the warrants calculated was $176,579 and is in included in interest expense -~~warrants~~ on the consolidated statements of operations for the year ended February 29, 2020. The value of the warrants was calculated utilizing a Black Scholes method which used the market value of the stock based on the issue date, an exercise price of $0.25, volatility of 360.99%, 351.88% and 339.45% and a discount bond equivalent of 1.75 and 1.71%WARRANTS

The following is a summary of the Company’s warrants issued and outstanding:

February 28, 2021

February 28, 2020

February 28, 2022

February 28, 2021

Warrants

Price (a)

Warrants

Price (a)

Beginning balance

32,925,000

.25

23,~~129~~925,~~802~~000

1.0025

Issued

––

~~2,925,000~~

––

~~.19~~

Exercised

––

Expired

(1,000,000

)

––

(1,~~129~~000,~~802~~000

)

––

Ending balance

21,925,000

0.25

32,925,000

.25

(a)

Weighted average exercise price per shares

27The following table summarizes additional information about the warrants granted by the Company as of November 30, 2021 and February 28, 2021:

NOTE 9 – WARRANTS – continued

Date of Grant	Warrants outstanding		Warrants exercisable		Price		Remaining term (years)
March 20, 2019		1,250,000		1,250,000		.25		.05
April 17, 2019		675,000		675,000		.25		.13
Total warrants		1,925,000		1,925,000	$	.25		.08

~~The following table summarizes additional information about the warrants granted by the Company as of February 28, 2021 and February 29, 2020:~~22

Date of Grant	Warrants outstanding		Warrants exercisable		Price		Remaining term (years)
November 19, 2016		500,000		500,000	$	.25		0.22
July 10, 2017		500,000		500,000		.25		0.78
March 20, 2019		1,250,000		1,250,000		.25		1.05
April 17, 2019		675,000		675,000		.25		1.13
Total warrants		2,925,000		2,925,000	$	.25		.89

NOTE 11 -

OTHER MATTERS- Joint Venture

QUANTUM ENERGY, INC.

CONSOLIDATED NOTES TO FINANCIAL STATEMENTS

February 28, 2021

NOTE 9 – WARRANTS - continued

Date of Grant	Warrants outstanding		Warrants exercisable		Price		Remaining term (years)
November 19, 2016		500,000		500,000	$	.25		0.22
July 10, 2017		500,000		500,000		.25		0.78
March 20, 2019		1,250,000		1,250,000		.25		1.05
April 17, 2019		675,000		675,000		.25		1.13
Total warrants		2,925,000		2,925,000	$	.25		.89

NOTE 10 – OTHER MATTERS- Joint Venture

Easy Energy Systems Inc. Memorandums of Understanding

On April 2, 2019, the Company and its subsidiary FTPM Resources, Inc. entered into a Non-Binding Memorandum of Understanding (“MOU-1”) with Easy Energy Systems, Inc. (“EESI Systems”). Pursuant to the MOU-1, if certain conditions are met, including the availability of financing: (i) EESI Systems and FTPM will enter into a joint venture, which would be owned 33% by FTPM and 67% by EESI Systems, for the purpose of developing and marketing of “clear glucose”; FTPM will have a 90-day option beginning April 30, 2019, to merge with EESI Systems, whereby EESI Systems will be the surviving entity; EESI Systems will have the right to acquire shares of preferred stock of the Registrant, with such rights and preferences as the parties shall agree; and EESI Systems will have the right to appoint members to the board of directors of the Registrant. EESI Systems designs, manufacturers, operates and sells its patented 1M, 2M, and 5M gallon per year, small-scale, modular biorefineries for the production of alternative liquid biofuels from organic waste streams.

On April 16, 2016 the Company entered into a separate Non-Binding Memorandum of Understanding (“MOU-2”) to acquire EESI Infrastructure Series, LLC (“EESI Infrastructure”). The prospective EESI Infrastructure acquisition, if consummated as provided in the MOU-2, would provide a guarantee for the construction of an addition to the existing plant of EESI Systems in Emmetsburg, Iowa. This addition will add a 9.3 Mega Watt dual gas power plant to EESI Systems’ Emmetsburg facility at an anticipated cost of approximately $10 million. Upon signing the MOU-2, the Company paid $25,000 to the EESI Infrastructure. Due to the uncertainty of this agreement, the $25,000 deposit has been expensed in General and Administrative expenses for the year ended February 29, 2020.

As of May 9, 2021, no action has been performed under either MOU.

Private Placement – Raul Factor

InPursuant ~~furtherance~~to of(2) ~~the~~two ~~June~~prior ~~28,~~License ~~2019~~and Operating Agreements, ~~Binding~~the ~~Letter~~principals of ~~Intent~~Raul ~~with~~Factor ~~EESI~~BV ~~and~~agreed to ~~monetize~~provide ~~the~~an ~~distribution~~aggregate ~~rights~~of $200,000 (USD) to ~~EES’~~purchase ~~modular~~an ~~Technologies~~aggregate of 1,000,000 (units of Quantum at a) onprice ~~July~~of 8,$0.20 ~~2019~~per Unit, ~~JV-1~~(for ~~entered~~an ~~into~~aggregate aof ~~License~~1,000,000 ~~and~~shares ~~Operating~~of ~~Agreement~~the –Company’s ~~Major~~common ~~Terms~~stock ~~Summary~~plus ~~with~~18 ~~Raul~~month ~~Factor~~warrants BVto ~~(“RF”)~~purchase ~~pursuant~~an toaggregate ~~which~~of 1,000,000 shares of the RFCompany’s ~~and~~common ~~JV-1~~stock ~~created~~at a ~~new~~price ~~joint~~of ~~venture~~$0.25 per share. Pursuant to bethese ~~named~~transactions, ~~Easy~~the ~~Energy~~Company ~~Systems~~agreed –to ~~Europe~~use ~~(“EES-E”)~~$150,000 ~~and~~of ~~pursuant~~the proceeds from the sale of the Units to ~~which~~purchase the distribution rights of EES-E ~~joint~~and ~~venture~~EETC ~~purchased~~and in turn the Company would assign such distribution rights ~~for~~to EES-E and EETC respectively. Also, Raul Factor agreed to invest the ~~EESI~~required ~~“MEPS®”~~reasonable ~~technology~~funding ~~for~~as determined by the ~~territory~~board of directors of EETC for the ~~European~~startup, ~~Union~~working capital, specific module development and ~~(b)~~required on6 ~~July~~months 8,of ~~2019~~economic demonstration of carpet and artificial turf into energy or value-added products for EETC. Also, JVEES agreed to contribute its module technologies developed by or available via license agreements from others to EES further on to EES-1E ~~entered~~via ~~into~~license aagreements conforming to the terms set forth in these License and Operating ~~Agreement~~Agreements. –Raul ~~Major~~Factor ~~Terms~~also ~~Summary~~agreed ~~with~~to RFfund ~~pursuant~~additional tocapital ~~which~~requirements. At the ~~parties~~date ~~created~~of athis ~~new~~report, ~~joint~~while ~~venture~~the $200,000 was received from Raul Factor, the stock has yet to be ~~named~~issued. ~~Easy~~As ~~Energy~~of ~~Turf~~February &28, ~~Carpet~~2022, ~~(“EETC”)~~the ~~and~~stock ~~pursuant~~was tovalued ~~which~~at $380,000 utilizing the ~~EETC~~closing ~~joint~~price on November 30, 2021.

~~venture~~Also, ~~purchased~~as part of the ~~global~~transactions ~~distribution~~contemplated ~~rights~~by these agreements: (i) the stock purchase warrant issued on November 20, 2016, to ~~EESI~~Kevin Holinaty to purchase 500,000 shares of the Company’s ~~MEPS®~~common ~~technology~~stock ~~for~~(“Warrant ~~turf~~No. &002”) ~~carpet~~was ~~feedstock.~~amended ~~Each~~to extend the exercise period of ~~EES-E~~the warrant through May 19, 2021 and ~~EETC~~to ischange ~~owned~~the ~~25%~~exercise byprice ~~us,~~to $0.25% byper ~~EES~~share; (ii) the stock purchase warrant issued to Kevin Holinaty issued on June 9, 2017, and ~~50%~~amended byon ~~Raul~~March ~~Factor~~15, ~~The~~2018, ~~aggregate~~to purchase ~~price~~250,000 ~~paid~~shares ~~for~~of the ~~licensing~~Company’s ~~and~~common ~~distribution~~stock ~~for~~(“Warrant ~~EES-E~~No. 003”) was amended to extend the exercise period to December 9, 2021, and ~~EETC~~to ~~was~~change the exercise price to $~~150~~0.25 per share; (iii) the stock purchase warrant issued to Haaye de Jong to purchase 250,000 shares of the Company’s common stock was amended to extend the exercise period to December 9, 2021, and to change the exercise price to $0.25 per share; (USiv) the Company issued a warrant to Kevin Holinaty to purchase 500,000 shares of the common stock at a price of $0.25 Atper ~~February~~share, 29which warrant has an exercise period until December 20, 2020,; (v) the Company issued a warrant to Haaye de Jong to purchase ~~price~~500,000 ~~for~~shares of the ~~joint~~common ~~venture~~stock ~~was~~at ~~expensed~~a asprice itof ~~was~~$0.25 ~~determined~~per ~~that~~share, ~~the~~which ~~joint~~warrant ~~venture~~has ~~was~~an ~~not~~exercise ~~viable~~period until December 20, 2020. (See Note 10).

NOTE 10 – OTHER MATTERS- Joint Venture - continued

In connection with and as part of the foregoing joint venture transactions with JV-1 and RF, on July 11, 2019, the principals of RF, who are existing holders of our common stock, purchased for an aggregate price of $200,000, 1,000,000 additional restricted shares of our common stock and warrants to purchase 1,000,000 restricted shares (at an exercise price of $0.25 per share) of our common stock, and pursuant to the EES-E and EETC Joint Ventures the Company agreed to use the proceeds from the sale of such shares and warrants to purchase from EESI the above mentioned EES-E and EETC distribution rights for an aggregate price of $150,000, and the Company then assigned such distribution rights to EES-E and EETC respectively. Raul Factor also agreed to invest the required reasonable funding as determined by the board of directors of EETC for the startup, working capital, specific module development and required 6 months of economic demonstration of carpet and artificial turf into energy or value-added products for EETC. Also, EES agreed to contribute its module technologies developed by or available via license agreements from others to EES further on to EES-E via license agreements conforming to the terms set forth in these License and Operating Agreements. Raul Factor also agreed to fund additional capital requirements.

Pursuant to this June 28, 2019, Binding Letter of Intent, the parties agreed to, among other things, that within 90 days from the date of the Binding Letter of Intent, the Company would raise $10,000,000 in capital for use by EESI. As of the date of this report, the Company was not able to raise such capital. In connection therewith, on October 29, 2019, delivered to us the terms of a proposed termination of the June 28, 2019 Binding Letter of Intent. As of the date of this report this the terms of such termination have not been finalized.

Pursuant to these two License and Operating Agreements, the principals of Raul Factor BV agreed to provide an aggregate of $200,000 (USD) to purchase an aggregate of 1,000,000 units of Quantum at a price of $0.20 per Unit, (for an aggregate of 1,000,000 shares of the Company’s common stock plus 18 month warrants to purchase an aggregate of 1,000,000 shares of the Company’s common stock at a price of $0.25 per share. Pursuant to these transactions, the Company agreed to use $150,000 of the proceeds from the sale of the Units to purchase the distribution rights of EES-E and EETC and in turn the Company would assign such distribution rights to EES-E and EETC respectively. Also, Raul Factor agreed to invest the required reasonable funding as determined by the board of directors of EETC for the startup, working capital, specific module development and required 6 months of economic demonstration of carpet and artificial turf into energy or value-added products for EETC. Also, EES agreed to contribute its module technologies developed by or available via license agreements from others to EES further on to EES-E via license agreements conforming to the terms set forth in these License and Operating Agreements. Raul Factor also agreed to fund additional capital requirements.

Also, as part of the transactions contemplated by these agreements: (i) the stock purchase warrant issued on November 20, 2016, to Kevin Holinaty to purchase 500,000 shares of the Company’s common stock (“Warrant No. 002”) was amended to extend the exercise period of the warrant through May 19, 2021 and to change the exercise price to $0.25 per share; (ii) the stock purchase warrant issued to Kevin Holinaty issued on June 9, 2017, and amended on March 15, 2018, to purchase 250,000 shares of the Company’s common stock (“Warrant No. 003”) was amended to extend the exercise period to December 9, 2021, and to change the exercise price to $0.25 per share; (iii) the stock purchase warrant issued to Haaye de Jong to purchase 250,000 shares of the Company’s common stock was amended to extend the exercise period to December 9, 2021, and to change the exercise price to $0.25 per share; (iv) the Company issued a warrant to Kevin Holinaty to purchase 500,000 shares of the common stock at a price of $0.25 per share, which warrant has an exercise period until December 20, 2020; (v) the Company issued a warrant to Haaye de Jong to purchase 500,000 shares of the common stock at a price of $0.25 per share, which warrant has an exercise period until December 20, 2020. (See Note 9).

The sale of the Units and the warrants to Kevin Holinaty and Haaye de Jong, the principals of Raul Factor, who have represented that they are “accredited investors” and non-U.S. citizens and in offshore transactions, was made in reliance on Rule 506 of Regulation D and on Regulation S.

30NOTE 12 - Risks and Uncertainties

Coronavirus Impact (COVID-19)

Due to the recent outbreak of the coronavirus reported in many countries worldwide, local and federal governments have issued travel advisories, canceled large scale public events and closed schools. In addition, companies have begun to cancel conferences and travel plans and require employees to work from home. Global financial markets have also experienced extreme volatility and disruptions to capital and credit markets.

We are unable to predict the impact of the coronavirus on our operations at this time. Adverse events such as health-related concerns about working in our offices, the inability to travel, potential impact on our business partners and customers, and other matters affecting the general work and business environment could harm our business and delay the implementation of our business strategy. The adverse events may also adversely impact our ability to raise capital or to continue as a going concern. We continue to monitor the recent outbreak of the coronavirus on our operations.

Suprock Litigation

On December 10, 2021, the Company filed an action against the Suprock Parties in the United States District Court of the State of Nevada. (See: 2:21-cv-02184-JAD-BNW Quantum Energy Inc. v. PCS Advisors LLC et al). The complaint alleges breach of implied covenant of good faith & fair dealing, unjust enrichment, and breach of contract. The Company is seeking the return of the shares of its common stock and monetary damages.

ITEM 9.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.

For the years ended February 28, ~~2021~~2022 and 2020 there were no disagreements with our auditors on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure. For the years ended February 28, ~~2021~~2022 and 2020, there were no “reportable events” as that term is described in Item 304(a)(1)(v) of Regulation S-K.

ITEM 9A.

CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures

At the end of the period covered by this Annual Report on Form 10-K, an evaluation was carried out under the supervision of and with the participation of our management, including the Principal Executive Officer and the Principal Financial Officer of the effectiveness of the design and operations of our disclosure controls and procedures (as defined in Rule 13a – 15(e) and Rule 15d – 15(e) under the Exchange Act) as of the end of the period covered by this report. Based on that evaluation, the Principal Executive Officer and the Principal Financial Officer have concluded that our disclosure controls and procedures were not effective in ensuring that: (i) information required to be disclosed by the Company in reports that it files or submits to the Securities and Exchange Commission under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in applicable rules and forms and (ii) material information required to be disclosed in our reports filed under the Exchange Act is accumulated and communicated to our management, including our CEO and CFO, as appropriate, to allow for accurate and timely decisions regarding required disclosure.

Disclosure controls and procedures were not effective due primarily to a material weakness in the segregation of duties in the Company’s internal control of financial reporting as discussed below.

Internal Control over Financial Reporting

Management is responsible for establishing and maintaining adequate internal control over financial reporting for the Company (including its consolidated subsidiaries) and all related information appearing in our Annual Report on Form 10-K. Our internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America

Management conducted an evaluation of the design and operation of our internal control over financial reporting as of the end of the period covered by this report, based on the criteria in a framework developed by the Company’s management pursuant to and in compliance with the criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations (COSO) of the Treadway Commission. This evaluation included review of the documentation of controls, evaluation of the design effectiveness of controls, walkthroughs of the operating effectiveness of controls and a conclusion on this evaluation. Based on this evaluation, management has concluded that our internal control over financial reporting was not effective, because management identified a material weakness in the Company’s internal control over financial reporting related to the segregation of duties as described below.

While the Company does adhere to internal controls and processes that were designed and implemented based on the COSO report, it is difficult with a very limited staff to maintain appropriate segregation of duties in the initiating and recording of transactions, thereby creating a segregation of duties weakness. Due to: (i) the significance of segregation of duties to the preparation of reliable financial statements; (ii) the significance of potential misstatement that could have resulted due to the deficient controls; and (iii) the absence of sufficient other mitigating controls, we determined that this control deficiency resulted in more than a remote likelihood that a material misstatement or lack of disclosure within the annual or interim financial statements may not be prevented or detected.

Management’s Remediation Initiatives.

Management has evaluated, and continues to evaluate, avenues for mitigating our internal controls weaknesses, but mitigating controls to completely mitigate internal control weaknesses have been deemed to be impractical and prohibitively costly, due to the size of our organization at the current time. Management expects to continue to use reasonable care in following and seeking improvements to effective internal control processes that have been and continue to be in use at the Company.

Changes in internal controls over financial reporting

There were no changes in the Company’s internal control over financial reporting that occurred prior to the Company’s most recent financial quarter that materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

ITEM 9B.

Other Information.

Not applicable.

PART III

ITEM 10.

Directors, Executive Officers and Corporate Governance.

EXECUTIVE OFFICERS OF THE REGISTRANT

The board of directors elects our executive officers annually. A majority vote of the directors who are in office is required to fill vacancies. Each director shall be elected for the term of one year, and until his/her successor is elected and qualified, or until ~~her~~their earlier resignation or removal. The following table sets forth certain information as of February 28, ~~2020 and as of January 1~~2022, ~~2021,~~ regarding the directors and executive officers of the Company. It is followed by a brief description of the business experience of each executive officer.

Name	Age		~~Position at February 28, 2020~~	Position	~~Position at January 1, 2021~~
Jeffrey Mallmes	62		Director, Chairman, President and Treasurer		Director, President and Treasurer
Robert Henry		50		Director
Andrew J. Kacic	72		Director and Secretary		Director, Co-Chairman of the Board,
Harry Ewert		61		Director and CEO
Raleigh C Kone	64		--		Chief Executive Officer and Secretary
William Hinz		76		Director and Chairman
Douglas C. Bean		56		Director and Treasurer
Anthony Ker		65		Director and Secretary
Jeffrey Mallmes		64		Director
William Westbrook		45		Chief Financial Officer

~~Jeffrey~~Robert ~~Mallmes~~ Henry – ~~Currently a~~ Director~~, President and Treasurer~~

AsMr. ofHenry ~~February~~has ~~28,~~over ~~2020,~~30 ~~Mr.~~years’ ~~Mallmes~~experience ~~was~~in avarious ~~director,~~executive ~~the~~positions ~~Chairman,~~at ~~President~~both ~~and~~Fortune ~~Treasurer~~100 ofcompanies ~~the~~as ~~Company~~well as in several smaller and start up organizations. OnHe ~~April~~has 23served these entities as Director, ~~2019~~Vice-President, President and Owner. Mr. ~~Mallmes,~~Henry’s aprimary ~~current~~expertise ~~director~~is in transportation and ~~then~~logistics. aMr. ~~member~~Henry ofhas ~~the~~led ~~Audit~~projects ~~Committee~~internationally in Kuwait, ~~Compensation~~Abu ~~Committee~~Dhabi and ~~the~~Dubai, ~~Nominating~~as ~~and~~well ~~Corporate~~as ~~Governance~~large ~~Committee~~to ofmid-size ~~the~~oil ~~Registrant’s~~and ~~Board,~~gas ~~and~~projects ~~the~~in ~~Chairman,~~North ~~President~~Dakota and ~~Treasurer~~Minnesota. ofIn the ~~Registrant~~past, ~~ceased~~he tohas beworked ~~Chairman~~for ofseveral ~~the~~different ~~Registrant~~railroads, ~~and~~including asthe aUnion ~~member~~Pacific ofRailroad, ~~the~~BNSF ~~Audit Committee~~Railway, ~~Compensation~~Arkansas ~~Committee~~& ~~and~~Missouri ~~the~~Railroad ~~Nominating~~ and ~~Corporate~~Twin ~~Governance~~Cities ~~Committee~~& ofWestern ~~the Registrant~~Railroad. He ~~will~~worked ~~continue to serve~~ as ~~director~~a consultant, ~~President~~leading ~~and~~the ~~Treasurer~~rail ofpractice ~~the~~for ~~Registrant~~Wilbur ~~and~~Smith, hewho ~~has~~later ~~also~~merged ~~been~~with ~~appointed~~CDM ~~President~~to ofbecome ~~the~~CDM ~~Registrant’s~~Smith. ~~subsidiary~~Mr. ~~Dominion~~Henry ~~Energy~~was ~~Processing~~project ~~Group,~~manager ~~Inc.~~and Heworked ~~will~~on ~~serve~~State inRail ~~those~~Plans ~~positions~~and ~~until~~passenger ~~his~~rail ~~successor~~capability isplans ~~duly~~for ~~elected~~state ordepartments ~~appointed~~of ~~and qualified~~transportation.

Mr. Mallmes has been a prolific entrepreneur having successfully owned, operated and financially backed several profitable and growth-oriented companies in Western Canada, in the welding, fabrication and auto parts businesses in British Columbia and Alberta. Mr. Mallmes business experience also involved working in and manufacturing for the oil industry. However, he has no experience in developing, constructing and operating an oil refinery.25

~~Mr.~~Harry ~~Mallmes’~~Ewert – Director private sector business successes enabled him to enter the public sector in 2014 when he was elected as a Councilor of the Sicamous, BC District Council, the governing body of the District of Sicamous, BC. Mr. Mallmes’ platform focused on economic development through fiscally responsible capital projects and community driven initiatives including, researching and building district energy systems, establishing advanced technology to improve forest conservation (Community Forest), developing water shed modules, and working with local stakeholders building affordable homes for Canadian Veterans.CEO

~~Since~~Mr. heEwert ~~became~~has anspent ~~officer~~the ofpast ~~Quantum,~~35+ heyears ~~has~~in ~~successfully~~senior ~~negotiated~~leadership ~~the~~roles ~~cancellation~~across ofthe ~~various~~technology ~~unprofitable~~sector ~~business~~as ~~relationships~~owner, ~~the return of 39~~director,~~699,800~~ ~~shares of Common Stock to the Company~~president, ~~the return~~ and ~~cancellation~~chief ofoperating ~~the~~officer. ~~Company’s~~Mr. ~~outstanding~~Ewert ~~shares~~brings ofexpertise ~~Series~~in Aguiding ~~Preferred~~global ~~Stock~~ and ~~the~~national ~~Series~~organizations B(such ~~Preferred~~as ~~Stock~~IKON and heRicoh ~~re-negotiated~~USA) ~~the~~in ~~terms~~creative ~~of all outstanding stock options~~ and ~~stock~~practical ~~purchase~~business ~~warrants~~methods. toThese ~~adjust~~collective ~~the~~experiences ~~applicable~~have ~~per~~resulted ~~shares~~in ~~exercise~~significant ~~prices~~participation ~~from~~across ~~either~~private ~~$0.13,~~equity ~~$0.21,~~and ~~$0.22,~~commercial orreal $0estate.~~40, to $1.00 per share.~~

32William Hinz – Director and Chairman

~~From March 1997 to the present,~~ Mr. ~~Mallmes~~Hinz ~~has~~became ~~been~~a ~~the~~director ~~president~~ and ~~owner~~chairman of ~~The~~the ~~Big~~board ~~Barge~~on ~~Company,~~February ~~Sicamous~~28, ~~BC, Canada, which is a holding company through which Mr~~2022. ~~Mallmes~~He ~~owns~~brings ~~the~~more ~~following~~than ~~businesses:~~40 ~~The~~years ~~Big~~of ~~Barge~~senior ~~Dock~~executive ~~Systems~~experience ~~(from~~due ~~2006~~ to ~~the~~his ~~present),~~experience ~~Sicamous~~as BCchairman, ~~Canada~~CEO, ~~which~~corporate ~~designs~~director and ~~builds~~president ~~marinas;~~for ~~and~~several ~~Alberta~~global 1234567 Inc. Land Holding Company (from 2010 to March 2017), that owns and leases a building and land in Calgary, Alberta, Canada, and Oopik Inc., Sicamous, BC, Canada, a holding company that owns shares of our Common Stock. Mr. Mallmes sold his interest in these businesses and is currently an investor in other public and private companies.

~~Andrew~~Prior Jto ~~Kacic~~joining –Quantum, ~~Currently~~Mr. Hinz served as CEO of Easy Energy Systems Inc. from April 2010 to 2011. From 2011 to 2014 he served as CEO of TrailerPro Technologies,. ~~Director~~CEO Coand chairman of HB-~~Chairman,~~Medtek ~~Chief~~(TASE) Inc., Executive ~~Officer~~Vice President of Operations and ~~Secretary~~then President of Stolper-Fabralloy Company, Group President and CEO of Triumph Aerospace. Mr. Hinz’ career began at AlliedSignal Aerospace (now Honeywell) where he rose through the ranks to hold various executive level positions from Senior VP of Repair & Overhaul, President & CEO of European Operations, and finally President and CEO of Aerospace.

~~On February 28, 2020,~~ Mr. ~~Kacic~~Hinz ~~was~~spent amost ~~director and Secretary~~ of ~~the~~his ~~Corporation~~career ofin the ~~Company.~~aerospace ~~On April 23, 2019, Andrew J. Kacic, a current director~~ and ~~then~~medical ~~Secretary of the Company was also appointed as Co-Chairman of the Board and Chief Executive Officer of the Company~~industries. HeFrom ~~will~~2007 ~~continue~~ to ~~serve as a member of the Audit Committee~~2014, ~~Compensation~~he ~~Committee~~served ~~and~~as ~~the~~chairman ~~Nominating~~ and ~~Corporate~~platform ~~Governance~~leader ~~Committee~~ of the ~~Company’s~~aerospace ~~Board. He will serve in those positions until his successor is duly elected or appointed~~ and ~~qualified. Mr.~~automotive ~~Kacic~~industries isfor an experienced executive with more than 40 years of oil & gas development, exploration and operations and more than 40 years as an investment banker. From 1986 to the present, Mr. Kacic has been the founder and President of Advisory Services, Inc. (ASI), a ~~Scottsdale,~~New ~~Arizona~~York based ~~corporate~~private ~~consulting~~equity firm. ~~Through~~focused ~~ASI,~~on ~~Mr.~~the ~~Kacic~~acquisition ~~has served as an officer~~ and~~/or~~ ~~director~~turnaround of ~~various~~US ~~companies~~based ~~for which ASI was engaged as a consultant including the following: from 2014 to 2016~~manufacturers, ~~Mr.~~such ~~Kacic served~~ as ~~the~~MD ~~CEO and a director of Quantum Energy Inc.; from 1999 to 2001 Mr. Kacic served as CFO of Beaudry Motor Company~~Helicopters, ~~Southern~~American ~~Arizona~~LaFrance, ~~an automotive~~ and RVGlobal ~~retailer~~Automotive ~~with~~Systems. ~~annual sales in excess of $350 million; from 1990 to 1998~~ Mr. ~~Kacic~~Hinz ~~served~~attended as the ~~President~~University of ~~American Resources of Delaware~~Tennessee, ~~Inc.~~located ~~(formerly~~in aKnoxville ~~NASDAQ~~Tennessee ~~company)~~in ~~and its subsidiary Southern Gas Company~~1966, ~~Versailles Kentucky, an oil, gas~~ and ~~transmission~~he ~~company.~~attended ~~From 1980 to 1986 Mr. Kacic served as CEO for~~ the ~~oil~~University ~~and~~of ~~gas~~Phoenix ~~companies~~from ~~Proper~~1985 ~~Power & Energy, Inc. and Barclay Road Inc~~ to ~~assist in their SEC filings and corporate restructuring~~1987. From 2011 to 2012 Mr. Kacic served as CEO of Securities Network, Inc., an Arizona based NASD licensed broker-dealer with 22 offices and more than 140 licensed registered representatives. Mr. Kacic is currently based in Bigfork, Montana as a consultant for investment related services, including oil and gas related services.

~~Raleigh~~Douglas C. ~~Kone~~ Bean – ~~currently~~ Director, ~~Co-Chairman of the Board~~ and ~~Executive Vice President~~Treasurer

~~On April 23, 2019, Raleigh C~~Mr. ~~Kone,~~Bean ~~age~~has ~~64,~~served ~~a stockholder of the Registrant was appointed~~ as a director, ~~Co-Chairman~~ of the ~~Board,~~Company ~~and~~since ~~Executive~~November, ~~Vice-President of the Company~~2020. ~~Mr.~~He ~~Kone~~also ~~will~~currently ~~serve~~serves as aExecutive ~~member~~Vice ofPresident ~~the~~& ~~Audit~~Co-Founder ~~Committee, Compensation Committee and the Nominating and Corporate Governance Committee~~ of ~~the~~Inductance ~~Registrant’s~~Energy ~~Board.~~Corporation, Hea ~~will~~corporation ~~serve~~located in ~~those~~Cody, ~~positions until his successor is duly elected or appointed and qualified~~Wyoming. Mr. ~~Kone~~Bean is a ~~highly~~ ~~experienced~~Co-Founder ~~investment~~& ~~and~~Manager ~~life~~of ~~insurance~~WYO ~~professional. He~~TECH ~~has~~Investment ~~been~~Group, ~~continuously licensed in the Financial Services industry since 1984. From 2018 to the present~~LLC, ~~he has held positions in Symmetry Insurance Company and for~~ a ~~brief~~Wyoming ~~time~~company ~~with~~where ~~Wells~~he ~~Fargo~~worked ~~Banking. Mr. Kone served~~ from ~~2005~~2016 to the present ~~as Managing Member of Global Green TK LLC, which is primarily interested in environmentally friendly land development, high tech Green energy sources and waste to energy projects~~. ~~From~~ ~~2015~~His toeclectic ~~2018~~career hehas ~~was~~utilized anhis ~~independent~~talents ~~contractor~~while ~~District~~employed ~~Advisor~~by ~~for~~Hilton ~~First~~Hotels ~~Command~~& ~~Financial~~Mirage ~~Services,~~Resorts ~~Headquartered~~as ina FtCredit ~~Worth,~~& ~~TX. He~~International ~~daily~~Marketing ~~coordinated~~Executive ~~and was responsible~~ for ~~the~~over ~~well-being and fiduciary compliance of~~ 10 ~~advisors~~years ~~who~~from ~~coordinated~~1989 ~~over~~to ~~3,000~~2000. ~~investors~~While ~~with~~at aHilton ~~combined asset base over $600 million. Additionally,~~ Mr. ~~Kone~~Bean was ~~directly~~primarily responsible for developing ~~and~~business ~~managing~~from ~~over~~a $1Japan, ~~Billion~~Thailand, in& ~~personal~~Malaysia ~~lines~~customer ofbase; ~~insurance~~as ~~coverage. From~~well ~~2008 to 2015 he served~~ as ~~the~~USA ~~Vice~~domestic ~~President~~clients. inFrom ~~charge~~2005 ofto ~~Development and Training for an area stretching from Atlanta~~2006, ~~GA to Fair Banks AK. .~~ Mr. ~~Kone~~Bean ~~provided~~served ~~guidance~~as ~~and~~a ~~support~~Marketing toDirector ~~over~~for 40World ~~separate~~Financial ~~Office~~Group ~~managers~~within ~~and~~the ~~their~~AEGON ~~financial services teams~~Companies. Mr. ~~Kone~~Bean ~~has~~attended aBrigham ~~Masters~~Young ofUniversity ~~Business~~and ~~Administration~~the ~~from The Golden Gate~~ University, ~~San Francisco, CA; a Master~~ of ~~Telecommunications~~Nevada inat ~~Business~~Las ~~Administration from The Golden Gate University, San Francisco, CA; a Chartered Leadership Fellow in the American College of Financial Services~~Vegas.

33Anthony Ker – Director and Secretary

Mr. Ker has served as director of the Company from 2020 to the present. From 2015 to the present, he has also served as CFO at Ridgeline Canada Inc., an environmental services company that provides consulting services to the Oil and Gas industry. Mr. Ker became a director of the company in 2015 and he has worked at Ridgeline since 2015. Since 2012, Mr. Ker has also served as Interim CEO/Director of RDX Technologies, Inc., a publicly traded water treatment company. Mr. Ker is a director of Inductance Energy Corporation, and he has held this position since 2018. Inductance Energy is developing efficient energy sources using magnetic propulsion technology. Prior to these positions, Mr. Ker held various leadership positions as Director of search minerals (Rare Earth Exploration and mine development), CEO at Gryphon Gold Corporation (Gold mining), Transcontinental Printing Inc., National Gold Corporation (EVP, Gold mining), International Forest Products and Weldwood of Canada. Mr. Ker earned a Bachelor of Science degree in Forestry from the University of British Columbia in 1979.

William Westbrook – Chief Financial Officer

William Westbrook has served as the Chief Financial Officer of Quantum since December 9, 2020. Mr. Westbrook possesses a background in technology, cross-border trade, real estate development, corporate finance, national politics, and economics. Mr. Westbrook has approximately 8 years’ experience with managing small publicly traded enterprises, in reporting and compliance within the international trade, real estate, software, and international energy industries. At Quantum Mr. Westbrook oversees the finance and accounting necessary for compliance with US and international regulatory requirements. From March 1 2008 to April 1, 2021, Mr. Westbrook worked as a consultant and interim officer for various small to medium size companies in the same capacity. During this time he worked to develop an online platform for physical commodity arbitrage that addresses the issue of scarcity through economic information and logistics management software. From 2006 to 2007, Mr. Westbrook worked as an assistant controller for Lennar Land Development, a branch of Lennar Corp., where he performed accounting operations and new land purchase analysis. In 2001 Mr. Westbrook received a Bachelor of Arts in Economics from Brigham Young University, located in Provo Utah.

Jeffrey Mallmes

Mr. Mallmes served as the President of the Company from November, 2017 to September, 2020. He has also served as a director of the Company from November 2017 to the present. From 1997 to the present Mr. Mallmes has owned and operated Big Barge Dock Systems, Inc. That company builds marinas.

Code of Ethics Policy

In November 2017, we adopted a code of ethics that applies to our principal executive officer, principal financial officer, principal accounting officer or controller or persons performing similar functions.

Corporate Governance

In November 2017, we established an audit committee, a compensation committee and a nominating and corporate governance committee and we adopted charters for each of these committees. As of January 1, 2021, each of these committees has three directors, one of which was independent. Mr. Ballmann was appointed as the audit committee financial expert. As of the date of this report, Mr. Ballmann has resigned as a director and as a member of these committees. Also, as of the date of this report, none of these committees have formally met or become functional. In the near future, we intend to appoint a new independent director who will qualify as a financial expert on our audit committee.

Audit Committee and Audit Committee Financial Expert

Our board of directors has determined that Mr. Ballmann, who at the time was a member of the audit committee, qualified as an “audit committee financial expert” as defined in item 407(d)(5)(ii) of Regulation S-K and is “independent” as the term is used in item 7(d)(3)(iv) of schedule 14a under the Securities Exchange Act of 1934, as amended. Mr. Ballmann is no longer a director and therefore is no longer a member of the Audit Committee. We intend to appoint a new independent director who will be an audit committee financial expert on our audit committee.

ITEM 11.

Executive Compensation.

The following table sets forth information concerning all cash and non-cash compensation awarded to, earned by or paid to the named persons for services rendered in all capacities for the years ending February 28, 2019 and February 28, 2020.

Name and Position	Year Ended Feb 28	Salary ($)	~~Salary ($)~~	Bonus ($)		Stock Awards	~~Bonus ($)~~	Option Awards		Non-Equity Incentive Plan Compensation Earnings ($)	~~Stock Awards~~	Non- Qualified Deferred Compensation Earnings ($)		All Other Compensation ($)	~~Option Awards~~	Total		~~Non-Equity Incentive Plan Compensation Earnings ($)~~		~~Non-Qualified Deferred Compensation Earnings ($)~~		~~All Other Compensation ($)~~			~~Total~~
Stanley F.	2020			—				—				—				—			—		—		—		$	0
Harry Ewert, CEO and Director	2020	$	250,000		—		—		—		—		—		—	$	250,000
Wilson former CEO	2019			—				—				—				—			—		—		63,500	(1)	$	63,500
Andrew Kacic, Director	2020			—				—				—				—			—		—		—			—
	2019			—				—				—				—			—		—		33,000	(2)	$	33,000
Jeffrey Mallmes, Chairman, President, Treasurer and	2020			—				—				—				—			—		—		—			—
Director(3)	2019			—				—				—				—			—		—		—			—
Harry Ewart, CEO and Director	2020		$	250,000				—				—				—			—		—		—			—

~~(1) Paid as a consulting fee to Mr. Wilson.~~27

(2) Paid as a consulting fee to Mr. Kacic.

(3) Mr. Mallmes was appointed our Chairman, President and Treasurer on November 8, 2017 and a director on October 30, 2017. On April 23, 2019, Mr. Mallmes, a current director and then a member of the Audit Committee, Compensation Committee and the Nominating and Corporate Governance Committee of the Registrant’s Board, and the Chairman, President and Treasurer of the Registrant ceased to be Chairman of the Registrant and as a member of the Audit Committee, Compensation Committee and the Nominating and Corporate Governance Committee of the Registrant. He will continue to serve as director, President and Treasurer of the Registrant and he has also been appointed President of the Registrant’s subsidiary Dominion Energy Processing Group, Inc. Mr. Mallmes received no compensation for serving in those positions during the year ended February 28, 2021.

We may elect to award a cash bonus to key employees, directors, officers and consultants based on meeting individual and corporate planned objectives.

We do not have any standard arrangements by which directors are compensated for any services provided as a director. No cash has been paid to the directors in their capacity as such.

ITEM 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

The following tables set forth, as of the February 28, ~~2021~~2022, the ownership of our Common Stock by each person known by us to be the beneficial owner of more than 5% of our outstanding Common Stock, and by our directors, and our executive officers and directors as a group. To the best of our knowledge, the persons named have sole voting and investment power with respect to such shares, except as otherwise noted. There are not any pending or anticipated arrangements that may cause a change in control.

		Amount and
		Amount and Nature of Beneficial Ownership		Percent of Class
		Nature of
		Beneficial
		Ownership		Percent of Class
Name and Address of Beneficial Owner	Title of Class		(1)		(2)
Jeffrey Mallmes (3)
1200 Trans Canada Highway
Sicamous, BC, Canada V0E2VO	Common Stock		7,584,395		15.64	%
Kandy, LP (4)
PO Box 1169
Big Fork, Montana 59911	Common Stock		7,449,622		15.47	%
Robert C. Henry 1742 Carriage
Dr.
Victoria, MN 55386	Common Stock		3,000,000		6.19	%
Stanley Wilson
6711 East Camelback Road, #17
Scottsdale, Arizona, 85251	Common Stock		3,000,000		6.19	%

Security Ownership of Management
		Amount and
		Nature of
		Beneficial		Percent of Class
Name and Address of Beneficial Owner	Title of Class	Ownership (1)			(2)
Jeffrey Mallmes (3)
1200 Trans Canada Highway
Sicamous, BC, Canada V0E2VO	Common Stock		7,584,395		15.64	%
Kandy LP (4)
PO Box 1169
Big Fork, Montana 59911	Common Stock		7,449,622		15.47	%
Raleigh C. Kone (5)
(address)
All Officers and Directors as a group
(5 person) (3) (4)	Common Stock		16,334,017		33.68	%

Security Ownership of Management
	(1)	The number and percentage of shares beneficially owned is determined under rules of the SEC and the information is not necessarily indicative of beneficial ownership for any other purpose. Under such rules, beneficial ownership includes any shares as to which the individual has sole or shared voting power or investment power and also any shares which the individual has the right to acquire within 60 days through the exercise of any stock option or other right. The persons named in the table have sole voting and investment power with respect to all shares of Common Stock shown as beneficially owned by them, subject to community property laws where applicable and the information contained in the footnotes to this table.
			Amount and
	(2)	Based on 48,491,485 shares of Common Stock issued and outstanding as of February 28, 2022.
			Nature of
	(3)	Jeffrey Mallmes, director, beneficially owns directly and indirectly an aggregate of 7,584,395 shares of our Common Stock as follows: directly, 3,459,173 restricted shares and 352,097 unrestricted shares; indirectly 2,000,000 restricted shares in the name of The Big Barge Company Inc. (which is owned by Mr. Mallmes); and indirectly 1,773,125 restricted shares in the name of Oopik Holdings LTD (which is owned by Mr. Mallmes). Mr. Mallmes disclaims any beneficial ownership of shares owned by Janice Mallmes, his wife.
			Beneficial		Percent of Class
	(4)	Andrew J. Kacic beneficially controls the shares held by Kandy, LP. Mr. Kacic is also owns indirectly through Kandy, L.P. a 3-year warrant to purchase 1,000,000 shares of our common stock at $0.25 per share.
Name and Address of Beneficial Owner	Title of Class		Ownership (1)			(2)
	(5)	Mr. Kone owns a 3 year warrant issued March 20, 2019 to purchase 150,000 shares of common stock and a 3 year warrant to purchase 225,000 shares of common stock.
Jeffrey Mallmes (3)
1200 Trans Canada Highway
Sicamous, BC, Canada V0E2VO	Common Stock			7,584,395		15.64	%
Andrew J. Kacic (4)
PO Box 1169
Big Fork, Montana 59911	Common Stock			7,449,622		15.47	%
Raleigh C. Kone (5)
(address)
All Officers and Directors as a group
(5 person) (3) (4)	Common Stock			16,334,017		33.68	%

(1) The number and percentage of shares beneficially owned is determined under rules of the SEC and the information is not necessarily indicative of beneficial ownership for any other purpose. Under such rules, beneficial ownership includes any shares as to which the individual has sole or shared voting power or investment power and also any shares which the individual has the right to acquire within 60 days through the exercise of any stock option or other right. The persons named in the table have sole voting and investment power with respect to all shares of Common Stock shown as beneficially owned by them, subject to community property laws where applicable and the information contained in the footnotes to this table.28

(2) Based on 48,491,485 shares of Common Stock issued and outstanding as of February 28, 2021.

(3) Jeffrey Mallmes, our President, Treasurer and director, beneficially owns directly and indirectly an aggregate of 7,584,395 shares of our Common Stock as follows: directly, 3,459,173 restricted shares and 352,097 unrestricted shares; indirectly 2,000,000 restricted shares in the name of The Big Barge Company Inc. (which is owned by Mr. Mallmes); and indirectly 1,773,125 restricted shares in the name of Oopik Holdings LTD (which is owned by Mr. Mallmes). Mr. Mallmes disclaims any beneficial ownership of shares owned by Janice Mallmes, his wife.

(4) Andrew J. Kacic beneficially controls the shares held by Kandy, LP. Mr. Kacic is Co- Chairman, CEO, Secretary and a director of the Company. Mr. Kacic also owns indirectly through Kandy, L.P. a 3-year warrant to purchase 1,000,000 shares of our common stock at $0.25 per share.

(5) Mr. Kone owns a 3 year warrant issued march 20, 2019 to purchase 150,000 shares of common stock and a 3 year warrant to purchase 225,000 shares of common stock.

March 2019 Promissory Note Payable

On March 15, 2019, the Company borrowed $5,000 from Raleigh Kone, a stockholder. This loan is evidenced by a demand promissory note which bears interest at the rate of 8% per annum, computed on the basis of actual number of days based upon a 360-day year. Mr. Kone became a director and co-Chairman of the Company’s board of directors and Executive Vice President on April 23, 2019. The principal and interest due under this note are outstanding as of the date of this filing.

April 2019 Promissory Notes Payable

Separately in April 2019, the Company borrowed $3,325 from Raleigh Kone and John Provacek. These loans are evidenced by demand promissory notes that bear interest at the rate of 6% per annum. In connection with the loan from Mr. Provacek, the Company also issued to Mr. Provacek a warrant to purchase 25,000 shares of the Company’s common stock at an exercise price of $0.25, which warrant expires three years after issuance. The Company also borrowed $3,390, from Jeffrey Mallmes, which loan is evidenced by a demand promissory note that bears interest at the rate of 6% per annum.

Warrants

In March and April 2019, the Company’s board of directors authorized the issuance of 1,925,000 warrants to purchase shares of the Company’s common stock to officers, directors and other individuals as incentives for said individuals continuing efforts to find opportunities for and provide services to the Company. The warrants have an exercise price of $0.25 and are exercisable for three years.

ITEM 13.

Certain Relationships and Related Transactions, and Director Independence.

~~Letter~~March of2019 ~~Intent~~Promissory ~~with~~Note ~~Inductance Energy Corporation~~Payable

On ~~April~~March 15, ~~2018~~2019, wethe ~~entered~~Company ~~into~~borrowed a$5,000 ~~conditional~~from ~~binding~~Raleigh ~~letter~~Kone, ofa ~~intent~~stockholder. ~~with~~This ~~Inductance~~loan ~~Energy~~is ~~Corporation~~evidenced by a ~~Wyoming~~demand ~~corporation~~promissory ~~(“IEC”),~~note ~~pursuant to~~ which ifbears ~~all~~interest ofat the ~~conditions~~rate ~~were satisfied, (a) we would be merged with a newly formed subsidiary~~ of ~~IEC~~8% ~~with~~per ~~us being the surviving company~~annum, ~~(b)~~computed weon ~~would~~the ~~issue~~basis toof ~~IEC~~actual ~~such~~ number of ~~new~~days ~~shares~~based ofupon ~~our~~a ~~Common~~360-day ~~Stock~~year. asMr. ~~shall~~Kone ~~represent~~became ~~60%~~a ofdirector ~~our then issued~~ and ~~outstanding~~co-Chairman ~~shares~~ of ~~Common Stock, and (c) ) IEC would provide to us as~~ the ~~surviving~~Company’s ~~company~~board ~~up to $50,000,000(USD) (the “IECAZ Financing”), a portion~~ of ~~which~~directors ~~(estimated at $7,500,000 (CAD)) as the necessary funds we intend to use to validate the viability~~ and ~~suitability~~Executive ofVice ~~the~~President ~~development of the Stoughton Refinery~~ on ~~the~~April ~~intended sight in Stoughton Saskatchewan Canada~~23, ~~which~~2019. ~~would~~The ~~include~~principal ~~(i) obtaining environmental~~ and ~~engineering~~interest ~~studies~~due tounder ~~validate~~this ~~the~~note ~~viability~~are ~~and~~outstanding ~~suitability~~as of ~~the~~February ~~intended site for the Stoughton Refinery~~28, ~~and (ii) if the site is determined to be viable, we would acquire the land, and (iii) we would obtain the required permits to build the Stoughton Refinery and (iv) we would pay other related costs~~2022.

~~Jeffrey~~April ~~Mallmes,~~2019 ~~our~~Promissory ~~director,~~Notes President, Treasurer and director is a stockholder of WYOTECH the entity that is an affiliate of IEC and owns the technology that is used by IEC and he is also a stockholder of IEC. William Hinz, our former director, is Chairman and CEO and a director of IEC and is also an owner of WYOTECH and IEC. Also, Richard Ethington, our former director, is the Chief Financial Officer of Inductance Energy Corporation. No assurances can be given that the conditions to the letter of intent with IEC will be satisfied or that the transactions or financing contemplated in the letter of intent will be consummated.Payable

OnIn April 232019, ~~2019~~the Company borrowed $12,500 from Jeffrey Mallmes, President, Treasurer, and director of the ~~letter~~Company, and $12,500 from Raleigh Kone, CEO and director of ~~intent~~the ~~with~~Company. ~~IEC~~These ~~was~~loans ~~cancelled~~are evidenced by ~~mutual~~promissory ~~agreement~~demand notes which bear interest at the rate of 6% per annum, computed on the basis of actual number of days based upon a 360-day year. Each lender also received warrants to purchase 225,000 shares of the Company’s common stock. The warrants have an exercise price of $0.25 and expire three years after issuance. The principal and interest due under these notes are outstanding as of February 28, 2022.

Director Independence

Our one independent director, as the term “independent” is defined by the rules of the NASDAQ Stock Market, Mr. Ballmann resigned on October 6, 2019. We intend to appoint a new independent director who will be an audit committee financial expert on our audit committee.

Advances from related parties

Mr. Mallmes and certain stockholders of the Company have advanced to the Company in the aggregate approximately $200,000 ~~which~~during ~~was~~the period from 06/26/2018 to 03/30/2019 These funds were used to pay legal, accounting and various operating expenses of the Company.

ITEM 14.

Principal Accountant Fees and Services.

Audit Fees

The aggregate fees billed by BF Borgers, Independent Registered Public Accounting Firm, for professional services rendered for the audit of our annual financial statements for the fiscal years ended ~~December~~February 3129, 2020 and ~~2019~~February 28, 2022 were $ 48,600 and $ 48,600, respectively, with a total for both years of $ .97,200

Audit Related Fees

None.

Tax Fees

The aggregate tax fees billed by BF Borgers, Independent Registered Public Accounting Firm, for professional services rendered for tax services for the fiscal years ended ~~December~~February 3128, ~~2020~~2022 and ~~2019~~February 29, 2020 was $-0- and $-0-,respectively.

3830

All Other Fees

There were no other fees billed by BF Borgers, Independent Registered Public Accounting Firm, for professional services rendered during the fiscal years ended December 31, 2020 and 2019, other than as stated under the captions Audit Fees, Audit-Related Fees, and Tax Fees.

Section 16A Beneficial Ownership Reporting Compliance

All Section 16A reporting is current with the filings of both Form 3s and Form 4s.

PART IV

ITEM 15.

Exhibits and Financial Statement Schedules.

(a)

1. and 2. Financial statements and financial statement schedules.

The financial statements and financial statement schedule listed in the Index to Financial Statements in Item 8 are filed as part of this Form 10-K.

3931

3. Exhibits

Exhibit Number	Description	Page Number or Incorporation by Reference to
3.1	Articles of Incorporation	Exhibit 3.1 to Form S-1 filed 6.26.18
3.2	Bylaws	Exhibit 3.2 to Form S-1 filed 6.26.18
3.3	Certificate of Amendment to the Articles of Incorporation	Exhibit 3.3 to Form S-1 filed 6.26.18
3.4	Certificate of Amendment to the Articles of Incorporation 5.24.06	Exhibit 3.4 to Form S-1A filed 11.28.18
3.5	Certificate of Amendment to the Articles of Incorporation 6.12.06	Exhibit 3.5 to Form S-1A filed 11.28.18
3.6	Certificate of Amendment to the Articles of Incorporation 9.16.13	Exhibit 3.6 to Form S-1A filed 11.28.18
3.7	Certificate of Amendment to the Articles of Incorporation 3.20.14	Exhibit 3.7 to Form S-1A filed 11.28.18
3.8	Certificate of designation 3.20.14	Exhibit 3.8 to Form S-1Afiled 11.28.18
3.9	Cert of Designation 4.03.14	Exhibit 3.9 to Form S-1A filed 11.28.18
3.10	Cert of Amendment 6.11.18	Exhibit 3.10 to Form S-1A filed 11.28.18
3.11	Cert of withdrawal of designation of certificate designation 11.26.18	Exhibit 3.11 to Form S-1A filed 11.28.18
3.12	Articles of Incorporation 12.05.18	Exhibit 3.12 to Form S-1A filed 12.6.18
10.1	Audit Committee Charter	Exhibit 10.1 to Form S-1 filed 6.26.18
10.2	Compensation Committee charter	Exhibit 10.2 to Form S-1 filed 6.26.18
10.3	Nominating and corporate governance committed charter	Exhibit 10.3 to Form S-1 filed 6.26.18
10.6	Cancellation of Series A Preferred Stock	Exhibit 10.6 to Form S-1 filed 6.26.18
10.7	Cancellation of Series B Preferred Stock	Exhibit 10.7 to Form S-1 filed 6.26.18

4032

14	Code of Business Conduct and Ethics	Exhibit 14.1 to Form S-1 filed 6.26.18
21	List of Subsidiaries of Quantum Energy Inc.	Exhibit 21.1 to Form S-1A filed 11.9.18
31.1	~~Section~~Mutual ~~302~~Agreement ~~Certification~~to Cancel/Rescind Binding Letter of ~~Chief~~Intent ~~Executive~~with ~~Officer~~IEC dated 4.23.19	~~Filed Herewith~~
31.2	~~Section~~Asset ~~302~~Swap ~~Certification~~Agreement of– ~~Chief~~5.24.19 ~~Financial~~w/ ~~Officer~~Looper and Quay	~~Filed Herewith~~
32.1	~~Section~~Form ~~906~~of ~~Certification~~certificate of ~~Chief~~Designation, ~~Executive~~Preferences ~~Officer~~and Rights of Series W Convertible Preferred Stock (not filed in Nevada)	~~Filed Herewith~~
32.2	Section 906 Certification of Chief Financial Officer	~~Filed Herewith~~
99.1	Mutual Agreement to Cancel/Rescind Binding Letter of Intent with IEC dated 4.23.19	Exhibit 99.1 to Form 8-K filed 4.26.19
99.2	Asset Swap Agreement – 5.24.19 w/ Looper and Quay	Exhibit 99.3 to Form 8-K filed 5.31.19
99.3	Form of certificate of Designation, Preferences and Rights of Series W Convertible Preferred Stock (not filed in Nevada)	Exhibit 99.4 to Form 8-K filed 5.31.19

Interactive Data File

101.INS Inline XBRL Instance Document*

101.SCH Inline XBRL Taxonomy Extension Schema*

101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase*

101.DEF Inline XBRL Taxonomy Extension Definition Linkbase*

101.LAB Inline XBRL Taxonomy Extension Labels Linkbase*

101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase*

104 Cover Page Interactive Data File (embedded within the Inline XBRL and contained in Exhibit 101)

	*	To be filed by amendment.
	**	These certifications pursuant to 18 U.S.C. Section 1350 by the Company’s Chief Executive Officer and Chief Financial Officer, furnished as Exhibit 32 to this Annual Report on Form 10-K, will not be deemed to be filed with the Securities and Exchange Commission or incorporated by reference into any filing by the Company under the Securities Act of 1933 or the Securities Exchange Act of 1934, except to the extent that the Company specifically incorporates such certifications by reference.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) 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 ENERGY INC. (Registrant)

By:
/s/ HARRY EWERT		Date: ~~June~~August 1425, ~~2021~~2022
Harry Ewert
CEO

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