Edgar Filing: SOLANEX MANAGEMENT INC

CC Filed by Filing Services Canada Inc. 403-717-3898

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

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

OF 1934

For the quarterly period ended June 30, 2009

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

OF 1934

For the quarterly transition period ended ______

0-49632

Commission file number:

Solanex Management Inc.

(Exact name of small business issuer as specified in its charter)

Nevada	#98-0361151
(State of Incorporation)	(I.R.S. Employer Identification No.)

1500 East Tropicana Avenue, Suite 100

____Las Vegas, Nevada 89119____

(Address of principal executive offices)

(702) 932-1576______

(Issuer's telephone number)

Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the issuer was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. (1) Yes ☐ No (2) Yes ☐ No

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

State the number of shares outstanding of each of the Issuer's classes of common equity, as of the latest practicable date: As of August 12, 2009 the Issuer had 15,460,080 shares of common stock, par value $0.001, issued and outstanding.

Transitional Small Business Disclosure Format (Check one): Yes ☐ No ☐

PART I - FINANCIAL INFORMATION

ITEM 1.

INTERIM FINANCIAL STATEMENTS

Consolidated Balance Sheets

Consolidated Statements of Operations

Consolidated Statements of Cash Flows

Notes to Financial Statements

ITEM 2.

MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

Plan of Operations

Liquidity and Capital Resources

ITEM 3.

CONTROLS AND PROCEDURES

PART II -OTHER INFORMATION

ITEM 1.

LEGAL PROCEEDINGS

ITEM 2.

CHANGES IN SECURITIES AND USE OF PROCEEDS

ITEM 3.

DEFAULTS UPON SENIOR SECURITIES

ITEM 4.

SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

ITEM 5.

OTHER INFORMATION

ITEM 6.

EXHIBITS AND REPORTS ON FORM 8-K

SIGNATURES

CERTIFICATIONS

PART I - FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS


Our unaudited consolidated financial statements included in this Form 10-Q are as follows:
F-1	Consolidated Balance Sheets as of June 30, 2009 and December 31, 2008; and
F-2	Consolidated Statements of Operations for the three months and six months ended June 30, 2009 and 2008 and for the cumulative period from inception October 12, 2000 to June 30, 2009; and
F-3	Consolidated Statements of Cash Flows for the three months and six months ended June 30, 2009 and 2008, and for the cumulative period from inception October 12, 2000 to June 30, 2009; and
F-4	Notes to Consolidated Financial Statements.

These interim consolidated financial statements of the Company have been prepared without audit in accordance with accounting principles generally accepted in the United States of America for interim financial information and the SEC instructions to Form 10-Q. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the interim period ended June 30, 2009 are not necessarily indicative of the results that can be expected for the full year ending December 31, 2009.

The interim consolidated financial statements of the Company were prepared by management and commence on the following page, together with related notes. In the opinion of management, the interim consolidated financial statements fairly present the financial condition of the Company at June 30, 2009. The Company's auditors have expressed a going concern qualification with respect to the Company's audited financial statements at December 31, 2008.


SOLANEX MANAGEMENT, INC.
A Development Stage Company
Consolidated Balance Sheets


ASSETS

			June 30,		December 31,
			2009		2008
			(unaudited)
CURRENT ASSETS

	Cash		$	-	$	959

		TOTAL ASSETS	$	-	$	959


LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES

	Accounts payable and accrued expenses		$	175,124	$	180,887
	Payable to related parties			13,823		5,000
	Promissory notes payable			17,252		10,500

		Total Current Liabilities		206,199		196,387

STOCKHOLDERS' EQUITY

	Preferred stock; 20,000,000 shares authorized,
	at $0.001 par value, none issued or outstanding
	and outstanding			-		-
	Common stock; 100,000,000 shares authorized,
	at $0.001 par value, 15,460,080 shares
	issued and outstanding			15,460		15,460
	Additional paid-in capital			734,214		734,214
	Deficit accumulated during the development stage			(955,873)		(945,102)

		Total Stockholders' Equity		(206,199)		(195,428)

		TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	-	$	959


SOLANEX MANAGEMENT, INC.
A Development Stage Company
Statements of Operations
(unaudited)


											Since Inception
			For the Three Months Ended				For the Six Months Ended				Through
			June 30,				June 30,				June 30,
			2009		2008		2009		2008		2009

REVENUES			$	-	$	-	$	-	$	-	$	-
COST OF SALES				-		-		-		-		-
GROSS PROFIT				-		-		-		-		-

OPERATING EXPENSES

	General and administrative			2,158		8,765		2,921		15,140		189,379
	Consulting fees			-		15,000		-		30,000		343,389
	Office and rent			-		-		-		3,836		153,824
	Professional fees			1,450		1,491		9,260		18,511		159,594
	Technology cost			-		-		-		-		100,000

		Total Operating Expenses		3,608		25,256		12,181		67,487		946,186

LOSS FROM OPERATIONS				(3,608)		(25,256)		(12,181)		(67,487)		(946,186)

OTHER INCOME (EXPENSE)
	Gain on settlement of debt			-		-		1,410		-		1,410
	Interest expense			-		(999)		-		(1,973)		(6,868)
	Foreign exchange gain (loss)			-		128		-		40		(4,229)

LOSS BEFORE INCOME TAXES				(3,608)		(26,127)		(10,771)		(69,420)		(955,873)
INCOME TAX EXPENSE				-		-		-		-		-

NET LOSS			$	(3,608)	$	(26,127)	$	(10,771)	$	(69,420)	$	(955,873)


BASIC LOSS PER SHARE			$	-0.00	$	-0.00	$	-0.00	$	-0.01


WEIGHTED AVERAGE
NUMBER OF SHARES
OUTSTANDING				15,460,080		12,033,730		15,460,080		12,033,730


SOLANEX MANAGEMENT, INC.
(A Development Stage Company)
Statements of Cash Flows
(unaudited)

								Since Inception
				For the Six Months Ended				Through
				June 30,				June 30,
				2009		2008		2009

OPERATING ACTIVITIES

	Net loss			$	(10,771)	$	(69,420)	$	(955,873)
	Adjustments to reconcile net loss to
	net cash used by operating activities:
		Common stock issued for services			-		-		127,387
		Gain on settlement of debt			(1,410)		-		(1,410)
	Changes in operating assets and liabilities:
		Prepaid expenses			-		1,147		-
		Accounts payable and accrued expenses			(4,353)		38,907		300,848

			Net Cash Used in Operating Activities		(16,534)		(29,366)		(529,048)

INVESTING ACTIVITIES

	Purchase of fixed assets				-		-		-

			Net Cash Used in Investing Activities		-		-		-

FINANCING ACTIVITIES

	Proceeds from loans payable				7,252		20,260		264,524
	Related party payable				8,323		710		8,323
	Repayment of loans payable				-		-		(5,000)
	Issuance of common stock				-		-		264,998

			Net Cash Provided by Financing Activities		15,575		20,970		532,845

		FOREIGN CURRENCY EFFECT ON CASH			-		-		(2,387)
		NET DECREASE IN CASH			(959)		(8,396)		1,410
		CASH AT BEGINNING OF PERIOD			959		12,061		-

		CASH AT END OF PERIOD		$	-	$	3,665	$	-

SUPPLEMENTAL DISCLOSURES OF
	CASH FLOW INFORMATION

	CASH PAID FOR:
		Interest		$	-	$	-	$	-
		Income taxes		$	-	$	-	$	-
	NON CASH FINANCING ACTIVITIES:
		Common stock issued for technology		$	-	$	-	$	3,500
		Common stock issued for debt		$	-	$	-	$	226,772
		Common stock issued for payables		$	-	$	-	$	119,404
		Common stock issued for services		$	-	$	-	$	120,000

SOLANEX, INC.

(A Development Stage Company)

Notes to Consolidated Financial Statements

June 30, 2009 and December 31, 2008

1. ORGANIZATION AND BASIS OF PRESENTATION

Solanex Management Inc (the "Company") was incorporated in the State of Nevada on October 12, 2000 under the name EcoSoil Management Inc. and is in its developmental stage. The Company changed its name to Solanex Management Inc. on December 6, 2001. To date the Company's activities have been organizational, directed at acquiring a principal asset, raising initial capital, and developing its technology and business plan.

The interim financial statements of the Company are consolidated with the financial statements of its two wholly owned subsidiary companies: Solanex Placer Inc. and Solanex Recovery Inc. All inter company accounts and transactions have been eliminated on consolidation. At June 30, 2009 both subsidiary companies were inactive.

On October 12, 2000 Solanex acquired a license to certain technology and intellectual property from Colin V. Hall, the developer of the technology, and a group of investors. The license granted a non-exclusive right to manufacture, market and sell a thermal destructor for site remediation to industrial, petrochemical and site remediation organizations. The intellectual property assets acquired include all licensing, modification, marketing, distribution and sales rights worldwide in perpetuity. Under the terms of the Agreement and Assignment of Intellectual Property Rights Mr. Hall was compensated $2,000 dollars and 1,500,000 shares of Solanex common stock, and the group of investors were compensated an aggregate of 2,000,000 shares of Solanex common stock. The original agreement contemplated that the license may be revoked if the Company did not manufacture at least one Thermal Destructor within 3 years of the Licensing date. This Agreement and License of Intellectual Property Rights has been renewed on a month to month basis and has been supplemented with a joint venture agreement between Solanex Management Inc. and EcoTech Waste Management Systems, Inc., the terms of which continue to be negotiated. Mr. Hall is a former director of the Company and a principal of EcoTech Waste Management Systems, Inc. (EcoTech).

The accompanying financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows at June 30, 2009, and for all periods presented herein, have been made.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company's December 31, 2008 audited financial statements. The results of operations for the periods ended June 30, 2009 and 2008 are not necessarily indicative of the operating results for the full years.

2. DEVELOPMENT STAGE COMPANY AND GOING CONCERN

The Company's financial statements are prepared using generally accepted accounting principles in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and allow it to continue as a going

SOLANEX, INC.

(A Development Stage Company)

Notes to Consolidated Financial Statements

June 30, 2009 and December 31, 2008

concern. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations.

In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management's plan is to obtain such resources for the Company by obtaining capital from management and significant shareholders sufficient to meet its minimal operating expenses and seeking equity and/or debt financing. However management cannot provide any assurances that the Company will be successful in accomplishing any of its plans.

The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Technology Development Costs

The costs to acquire and develop new technology and enhancements to existing technology are expensed as incurred until such time as technological feasibility is demonstrated.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles 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

Foreign Currency Translation

The Company’s functional currency is the U.S. dollar. Transactions in foreign currency are translated into U.S. dollars as follows:

monetary items at the rate prevailing at the balance sheet date;

ii)

non-monetary items at the historical exchange rate;

iii)

revenue and expense items at the average rate in effect during the applicable accounting period.

Financial Instruments

The Company’s financial instruments consist of cash, accounts payable and accrued liabilities, and loans payable.

Unless otherwise noted, it is management’s opinion that the Company is not exposed to significant interest or credit risks arising from these financial instruments. The fair values of these financial instruments approximate their carrying values, unless otherwise noted.

SOLANEX, INC.

(A Development Stage Company)

Notes to Consolidated Financial Statements

June 30, 2009 and December 31, 2008

Recent Accounting Pronouncements

In May 2009, the FASB issued FAS 165, “Subsequent Events”. This pronouncement establishes standards for accounting for and disclosing subsequent events (events which occur after the balance sheet date but before financial statements are issued or are available to be issued). FAS 165 requires and entity to disclose the date subsequent events were evaluated and whether that evaluation took place on the date financial statements were issued or were available to be issued. It is effective for interim and annual periods ending after June 15, 2009. The adoption of FAS 165 did not have a material impact on the Company’s financial condition or results of operation.

In June 2009, the FASB issued FAS 166, “Accounting for Transfers of Financial Assets” an amendment of FAS 140. FAS 140 is intended to improve the relevance, representational faithfulness, and comparability of the information that a reporting entity provides in its financial statements about a transfer of financial assets: the effects of a transfer on its financial position, financial performance , and cash flows: and a transferor’s continuing involvement, if any, in transferred financial assets. This statement must be applied as of the beginning of each reporting entity’s first annual reporting period that begins after November 15, 2009. The Company does not expect the adoption of FAS 166 to have an impact on the Company’s results of operations, financial condition or cash flows.

In June 2009, the FASB issued FAS 167, “Amendments to FASB Interpretation No. 46(R)”. FAS 167 is intended to (1) address the effects on certain provisions of FASB Interpretation No. 46 (revised December 2003), Consolidation of Variable Interest Entities, as a result of the elimination of the qualifying special-purpose entity concept in FAS 166, and (2) constituent concerns about the application of certain key provisions of Interpretation 46(R), including those in which the accounting and disclosures under the Interpretation do not always provided timely and useful information about an enterprise’s involvement in a variable interest entity. This statement must be applied as of the beginning of each reporting entity’s first annual reporting period that begins after November 15, 2009. The Company does not expect the adoption of FAS 167 to have an impact on the Company’s results of operations, financial condition or cash flows.

In June 2009, the FASB issued FAS 168, “The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles”. FAS 168 will become the source of authoritative U.S. generally accepted accounting principles (GAAP) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the Securities and Exchange Commission (SEC) under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. On the effective date of this Statement, the Codification will supersede all then-existing non-SEC accounting and reporting standards. All other nongrandfathered non-SEC accounting literature not included in the Codification will become nonauthoritative. This statement is effective for financial statements issued for interim and annual periods ending after September 15, 2009.The Company does not

expect the adoption of FAS 168 to have an impact on the Company’s results of operations, financial condition or cash flows.

SOLANEX, INC.

(A Development Stage Company)

Notes to Consolidated Financial Statements

June 30, 2009 and December 31, 2008

4. BASIS OF ACCOUNTING PRESENTATION

These unaudited interim financial statements have been prepared by management on a going concern basis in accordance with accounting principles generally accepted in the United States of America for interim financial information, are condensed and do not include all disclosures required for annual financial statements. This disclosure presumes funds will be available to finance on-going development, operations and capital expenditures and the realization of assets and the payment of liabilities in the normal course of operations for the foreseeable future.

The organization and business of the Company, significant accounting policies followed by the Company and other information are contained in the notes to the Company’s audited financial statements filed as part of the Company’s Form 10-K for the year ended December 31, 2008.

In the opinion of the Company’s management these financial statements reflect all adjustments necessary to present fairly the Company’s financial position at June 30, 2009 and the results of its operations for the nine months then ended. The results of operations for the three months and six months ended June 30, 2009 are not necessarily indicative of the results to be expected for the entire fiscal year.

The Company has minimal capital resources presently available to meet obligations normally expected by similar companies and has an accumulated deficit of $955,873 to June 30, 2009.

These factors raise substantial doubt about the Company’s ability to continue as a going concern. The Company is dependent on its ability to obtain and maintain an appropriate level of financing on a timely basis and to achieve sufficient cash flows to cover obligations and expenses. The outcome of these matters cannot be predicted. These financial statements do not give effect to any adjustments to the amounts and classification of assets and liabilities that may be necessary should the Company be unable to continue as a going concern.

LICENSE AND TECHNOLOGY RIGHTS

On October 12, 2000, the Company acquired a license to certain technology and intellectual property from Colin V. Hall, the developer of the technology, and a group of investors. The license granted a non-exclusive right to manufacture, market and sell a thermal destructor (“soil Remediator”) for onsite remediation to industrial, petrochemical and site remediation organizations. The technology and intellectual property acquired included all licensing, modification, marketing, distribution and sales rights worldwide in perpetuity. Under the terms of the Agreement and License, a cash payment of $2,000 was made on behalf of the Company and the Company issued 3,500,000 shares of common stock.

On October 1, 2002 the Company entered into a joint venture agreement (the “Agreement”) with EcoTech Waste Management Systems (1991) Inc. (“EcoTech”) to design the systems for the soil Remediator and provide marketing and business concept expertise. Under the terms of the Agreement, EcoTech will evaluate, improve and complete the assets of the Company, and market and/or find customers for the assets of the Company. Furthermore, EcoTech will search for, recommend and advise the Company on the acquisition of further technology, complementary to the current business direction and assets of the Company. In consideration for the services provided by EcoTech, the Company is required to pay $100,000 to EcoTech over the life of the contract (3 years), in cash or common stock.

SOLANEX, INC.

(A Development Stage Company)

Notes to Consolidated Financial Statements

June 30, 2009 and December 31, 2008

As of June 30, 2009 the Company had paid $85,500 to EcoTech, and the remaining $14,500 is included in amounts payable to related parties. This agreement is being renegotiated by both parties.

On May 23, 2006 the Company entered into a joint venture with EcoTech (“the Strategic Alliance Agreement”) to develop a portable soil remediation system to clean soils contaminated by industrial use. The Company agreed to pay $40,000 in marketing costs for the initial customer (increasing to $50,000 for each subsequent customer).

Further, EcoTech agreed to build portable high temperature burner units for a cost not to exceed $2 million per unit. The Company would then be the exclusive distributor under revenue sharing arrangements to be negotiated. No units have been built and no revenue has been generated to date.

On October 12, 2006 the Company and EcoTech signed an addendum to the Strategic Alliance Agreement, whereby, in consideration for $2,000 to be paid to EcoTech, the parties agreed to expand their business relationship to include portable high temperature steam generation technology and to market portable high temperature burner gasifier systems.

6. PROMISSORY NOTES PAYABLE

The promissory notes may be converted in whole or in part into common shares of the Company at the option of the lender(s) at a mutually agreed price per share. The promissory notes are unsecured and bear no interest and are due on demand. Management has imputed interest ranging from 2% to 8% and accrued the interest in the event of conversion. The interest accrued totaled $-0- and $999 for the three months ended June 30, 2009 and 2008, respectively. The Company owed $17,252 and $10,500 for the promissory notes payable at June 30, 2009 and December 31, 2008, respectively.

7. COMMON STOCK

During 2008 the Company issued 1,200,000 shares of common stock at $0,10 per share in exchange for services rendered to the Company.

During 2008 the Company issued 2,226,350 shares of common at $0.10 per share to fulfill debt obligations.

8. CONTRACTUAL OBLIGATIONS AND COMMITMENTS

The Company has no significant contractual obligations or commitments with any parties respecting executive compensation, consulting arrangements, rental premises or other matters, except as disclosed elsewhere in these notes. Management services provided and rental of premises are on a month to month basis.

9. SUBSEQUENT EVENTS

of its business model and considers the availability of electric power from the gasification of Municipal Solid Waste to be an added benefit to potential customers, especially Municipal, State and Federal Governments. The LOI calls for a due diligence period which is to conclude on or before the 21st of October, 2009. According to the terms of the agreement, the Company would acquire any and all rights to projects that have been initiated by Alten Power Corporation, including but not limited to feasibility/viability assessments for waste to energy facilities in Central and South America, the United States and Canada. The transfer would be completed following payment of $200,000.00 (Two Hundred Thousand USD) plus 3 million common shares of Solanex.

ITEM 2. Management’s Discussion and Analysis or Plan

Forward-Looking Statements

Certain statements, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives, and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements generally are identified by the words “believes,” “project,” “expects,” “anticipates,” “estimates,” “intends,” “strategy,” “plan,” “may,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. We intend such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and are including this statement for purposes of complying with those safe-harbor provisions. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties and may cause actual results to differ materially from the forward-looking statements. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse affect on our operations and future prospects on a consolidated basis include, but are not limited to: changes in economic conditions, legislative/regulatory changes, availability of capital, interest rates, competition, and generally accepted accounting principles. These risks and uncertainties should also be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Further information concerning our business and additional factors that could materially affect our financial results is included herein and in our other filings on EDGAR.

The following discussion should be read in conjunction with the accompanying unaudited interim financial statements.

Overview of Our Business

We were incorporated as EcoSoil Management Inc. under the laws of the State of Nevada on October 12, 2000. We changed our name to Solanex Management Inc. (“Solanex” or “the Company”) on December 6, 2001. To date, our activities have been organizational in nature, directed at acquiring our principal assets, raising capital, and implementing measures under our business plan in hopes of achieving revenues.

Our business is divided into three areas: the development, manufacture, and sale of the Thermal Destructor; the development, manufacture, and sale of the portable Steam Injection System; and, investing in mineral resource properties.

Thermal Destructors

A Thermal Destructor is a self contained, mobile, soil residue combustion system to be used for cleaning contaminated sites by sterilizing soil. The Thermal Destructor consists of a high efficiency, waste or gas-fired combustion chamber and an exhaust gas, low-pressure drop liquid scrubber effective in trapping pollutants in air emissions. A common use of the Thermal Destructor is what oilfield engineers refer to as “post-op dirt burning”, the practice of cleaning up hydrocarbon spills at the end of the life of a production

well by passing the soil and substrate through a rotary kiln, such as in our device, whereby the hydrocarbons are burned, delivering sterile and cleaned soil and clay residues.

Steam Injection System

The Steam Injection System is an offshoot from our original high temperature Thermal Destructor also being developed for use by the oil industry. We have utilized the body, drive mechanism, and heating components from the Thermal Destructor to create a portable high temperature, high pressure steam generation unit.

The Steam Injection System is designed specifically for use in oil fields where high-pressure steam can be injected into the oil formation to soften the material in which the oil is trapped and to help dilute and separate heavy oil from the earth. The injection of steam under high pressure also creates channels and cracks through which the oil can flow to the well. This is a tertiary retrieval method used to capture oil from wells already exhausted via primary and secondary means of oil retrieval.

The most immediate market for a quick-deployment, mobile or short term steam generation and delivery system such as our Steam Injection System is companies who are in the bitumen/heavy oil exploitation business. Bitumen is a semisolid, degraded, tar-like form of oil that does not flow at normal temperatures and pressures. Bitumen cannot be produced from a well unless it is heated or diluted. Most of today's major commercial on-site bitumen projects use steam to heat and dilute the bitumen.

Expansion of Business into Resource Sector

By using our contacts in the resources sector we have considered implementing steps including taking our Company into a new channel of business by way of actively seeking mineral resource property opportunities. We turned down an opportunity to acquire an option interest in a sand and gravel deposit for payment of up to $75,000 over four years and the issuance of up to 2,000,000 shares of common stock. Management believed that acquiring the option at this stage was premature in our development and would divert needed capital away from our core business pursuits. However, we have continued our search in the resource sector and intend to seize the right opportunity when our capital resources permit and when the timing is right. We currently have no projects under review and must obtain sufficient funding to cover our projected working capital requirements.

Plan of Operation

Our plans for the next 12 months are focused on pursuing financing.

The Company has been unable to obtain financing for its Thermal Destructor and Steam Injection System and, subsequent to June 30, 2009, has abandoned these projects. The Company continues to seek out other opportunities in the resource, renewable and alternative energy sectors which may become available to the Company and which may be funded at levels of funding attainable by the Company.

Subsequent to the end of the quarter, Mr. Dave Eckert was elected as a Director. On July 14, 2009, Mr. Colin Hall voluntarily resigned as President, Secretary, Treasurer and Director of the Company. On July 14, 2009, Mr. Dave Eckert was appointed President and Chief Executive Officer, Secretary, Treasurer, and principal financial officer. On August 10, 2009, Mr. Derek Bartlett was also elected to the Board of Directors.

Subsequent to the end of the quarter, the Company entered into a Letter of Intent ("LOI") dated July 27th 2009 to acquire certain sales, marketing and distribution rights to a Waste to Energy technology from Alten Power Corporation. The Company has elected to enhance the incineration/gasification component of its business model and considers the availability of electric power from the gasification of Municipal Solid Waste to be an added benefit to potential customers, especially Municipal, State and Federal

Governments. The LOI calls for a due diligence period which is to conclude on or before the 21st of October, 2009. According to the terms of the agreement, the Company would acquire any and all rights to projects that have been initiated by Alten Power Corporation, including but not limited to feasibility/viability assessments for waste to energy facilities in Central and South America, the United States and Canada. The transfer would be completed following payment of $200,000.00 (Two Hundred Thousand USD) plus 3 million common shares of Solanex.

Financing Plans

The completion of our business plan for the next twelve months is contingent upon us obtaining additional financing. As of June 30, 2009 we had cash in the amount of $-0-. We have forecasted expenditures of $30,000 for the next twelve months. Therefore, we will require financing to pursue our business plan for the next twelve months. We plan to offer equity securities in an exempt offering as a means of meeting our financial requirements over the next twelve months. Although neither David Eckert, Derek Bartlett, nor any other shareholders nor third parties have any legal obligations to infuse additional capital, it is anticipated that each party will continue to do so as reasonably necessary by providing short-term demand loans carrying a market interest rate. If we are unable to obtain additional financing, our business plan will be significantly delayed or will fail. Should this failure to finance occur, the Company would abandon its current business plan.

We have not contacted any broker-dealers or other parties regarding our financing plans but may do so in the future. We have not identified any broker-dealers to assist in our financing efforts. Currently, we believe we have the required funds to cover our expenses through the end of December 2009.

Results of Operations for the three months ended June 30, 2009 and 2008

No revenue was recorded for the three month period ended June 30, 2009 and no revenue has been generated since inception.

Net loss for the three months ended June 30, 2009 was $3,608 compared to a loss of $26,127 for the three months ended June 30, 2008. The expenditures comprising the loss for the three months ended June 30, 2009 consisted primarily of administrative expenses in the amount of $2,158 (2008 - $8,765), professional fees in the amount of $1,450 (2008 - $1,491), and consulting fees of $-0- (2008 - $15,000).

The Company has kept its office and business operations at a minimum and has relied mainly on its directors as the Company assesses its business plan and direction.

Results of Operations for the six months ended June 30, 2009 and 2008

No revenue was recorded for the six month period ended June 30, 2009 and no revenue has been generated since inception.

Net loss for the six months ended June 30, 2009 was $10,771 compared to a loss of $69,420 for the six months ended June 30, 2008. The expenditures comprising the loss for the three months ended June 30, 2009 consisted primarily of administrative expenses in the amount of $2,921 (2008 - $15,140), professional fees in the amount of $9,260 (2008 - $18,511), consulting fees of $-0- (2008 - $30,000) and office/rent in the amount of $-0- (2008 - $3,836).

The Company has kept its office and business operations at a minimum and has relied mainly on its directors as the Company assesses its business plan and direction.

Liquidity and Capital Resources

The Company has not earned any revenue since inception and has been able to pay its expenses and costs through the issuance of common shares as well as by loans from directors and other shareholders. The Company did not issue any shares during the three months ended June 30, 2009 or during the three months ended June 30, 2008.

As of June 30, 2009 the Company has a working capital deficiency of $206,199 (at December 31, 2008 $195,428). The Company needs to raise additional funds through the sale of stock or borrowing just to maintain the corporate existence of the Company. The Company may not be successful in its efforts to obtain equity financing and/or attain profitable operations. There is doubt regarding the Company’s ability to continue as a going concern.

The Company’s cash requirements to operate for a fiscal year are estimated at $150,000. The Company is currently seeking out options for financing from shareholders or private placements.

Off Balance Sheet Arrangements

As of June 30, 2009 there were no off balance sheet arrangements.

ITEM 3. Controls and Procedures

(a) Evaluation of disclosure controls and procedures. Based on the evaluation of the Company's disclosure controls and procedures (as defined in Rules 13a-14(c) and 15d-14(c) under the Securities Exchange Act of 1934) as of the filing date of this Quarterly Report on Form 10Q, our chief executive officer and acting chief financial officer have concluded that our disclosure controls and procedures are designed to ensure that the information we are required to disclose in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms and are operating in an effective manner.

(b) Changes in internal controls. There were no changes in our internal controls or in other factors that could affect these controls subsequent to the date of their most recent evaluation.

PART II - OTHER INFORMATION

ITEM 1. Legal Proceedings

To the Company’s knowledge, there are no lawsuits nor were any lawsuits commenced against the Company during the three months ended June 30, 2009 nor did the Company commence any lawsuits during the same period.

ITEM 2. Changes in Securities and Use of Proceeds

During the three months ended June 30, 2009 the Company issued the following securities:

No shares were issued during this period.

Use of Proceeds

Not applicable.

ITEM 3. Defaults Upon Senior Securities

Not applicable.

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

No matters were put forward to a vote of the security holders of the Company this quarter.

ITEM 5. Subsequent Events

None.

ITEM 6. Exhibits and Reports on Form 8-K

Exhibits

None.

Reports on Form 8-K

None.

SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Solanex Management Inc.

By:

/s/ Dave Eckert

Dave Eckert

President and Director

Date:

August 14, 2009

CERTIFICATIONS OF CEO PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

Exhibit 31.1

I, Dave Eckert, certify that

1. I have reviewed this quarterly report on Form 10-Q of Solanex Management Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

c) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

August 14, 2009

/s/ Dave Eckert_______________

Dave Eckert

Chief Executive Officer

CERTIFICATIONS OF CFO PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

Exhibit 31.2

I, Dave Eckert, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Solanex Management Inc.;

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

August 14, 2009

/s/ Dave Eckert_______________

Dave Eckert

Chief Financial Officer

CERTIFICATIONS PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C. SECTION 1350)

Exhibit 32.1

In connection with the quarterly report of Solanex Management Inc. a Nevada corporation (the “Company”), on Form 10-Q for the quarter ended June 30, 2009, as filed with the Securities and Exchange Commission (the “Report”), Dave Eckert, Chief Executive Officer of the Company do hereby certify, pursuant to § 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. § 1350), that to his knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

By: /s/ Dave Eckert_______________

Name: Dave Eckert

Title: Chief Executive Officer

Date: August 14, 2009

[A signed original of this written statement required by Section 906 has been provided to Solanex Management Inc. and will be retained by Solanex Management Inc. and furnished to the Securities and Exchange Commission or its staff upon request.]

CERTIFICATIONS PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C. SECTION 1350)

Exhibit 32.1

In connection with the quarterly report of Solanex Management Inc., a Nevada corporation (the “Company”), on Form 10-Q for the quarter ended June 30, 2009, as filed with the Securities and Exchange Commission (the “Report”), Dave Eckert, Chief Financial Officer of the Company do hereby certify, pursuant to § 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. § 1350), that to his knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

By: /s/ Dave Eckert____________

Name: Dave Eckert

Title: Chief Financial Officer

Date: August 14, 2009