Edgar Filing: SOLANEX MANAGEMENT INC

Filed by Automated Filing Services Inc. (604) 609-0244 - Solanex Management Inc.- Form 10-QSB

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

Form 10-QSB /A

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

For the quarterly period ended September 30, 2007

[ ] 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.)

Suite 440 - 1555 E. Flamingo Road
Las Vegas, Nevada 89119
(Address of principal executive offices)

1(888) 678-9446
(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 [ X ] No [ ] (2) Yes [ X ] No [ ]

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

State the number of shares outstanding of each of the Issuer's classes of common equity, as of the latest practicable date: As of July 25, 2007 the Issuer had 12,033,730 shares of common stock, par value $0.001, issued and outstanding.

Transitional Small Business Disclosure Format (Check one): Yes [ ] No [ X ]

PART I - FINANCIAL INFORMATION

ITEM 1.	INTERIM FINANCIAL STATEMENTS
	Balance Sheets	4
	Statements of Operations	5
	Statements of Cash Flows	6
	Notes to Financial Statements	7

ITEM 2.	MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
	Plan of Operations	11
	Liquidity and Capital Resources	15

ITEM 3.	CONTROLS AND PROCEDURES	16

PART II - OTHER INFORMATION

ITEM 1.	LEGAL PROCEEDINGS	16

ITEM 2.	CHANGES IN SECURITIES AND USE OF PROCEEDS	16

ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	16

ITEM 4.	SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS	16

ITEM 5.	OTHER INFORMATION	16

ITEM 6.	EXHIBITS AND REPORTS ON FORM 8-K	16

SIGNATURES		17

PART I - FINANCIAL INFORMATION

Item 1.

FINANCIAL STATEMENTS

Our unaudited consolidated financial statements included in this Form 10-QSB are as follows:

	F-1	Consolidated Balance Sheets as of September 30, 2007 and December 31, 2006; and
	F-2	Consolidated Statements of Operations for the three months and nine months ended September 30, 2007 and 2006 and for the cumulative period from inception October 12, 2000 to September 30, 2007; and
	F-3	Consolidated Statements of Cash Flows for the nine months ended September 30, 2007 and 2006, and for the cumulative period from inception October 12, 2000 to September 30, 2007; 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-QSB. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the interim period ended September 30, 2007 are not necessarily indicative of the results that can be expected for the full year ending December 31, 2007.

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 September 30, 2007. The Company's auditors have expressed a going concern qualification with respect to the Company's audited financial statements at December 31, 2006.

Solanex Management Inc.
(A Development Stage Company)
Interim Consolidated Balance Sheets
(expressed in U.S. dollars)

		September 30,			December 31,
		2007			2006
		(Unaudited)


ASSETS
Current
Cash	$	27,498		$	93,797
Prepaid expense		1,147			0
Account receivable		710			0
		29,355			93,797


LIABILITIES
Current
Accounts payable and accrued liabilities	$	152,786		$	141,835
Promissory notes and loans payable (note 6)		173,500			128,500
		326,286			270,335

STOCKHOLDERS’ DEFICIENCY

Capital Stock
Authorized:
100,000,000 common shares, par value of $0.001 per share
20,000,000 preferred shares, par value of $0.001 per share

Issued and outstanding:
12,033,730 common shares (December 2006 – 12,033,730)		12,034			12,034

Additional paid-in capital		395,005			395,005

Share Subscriptions		0			0

Deficit accumulated during the development stage		(703,970	)		(583,577	)
		(296,931	)		(176,538	)
	$	29,355		$	93,797

(The accompanying notes are an integral part of the financial statements)

Solanex Management Inc.
(A Development Stage Company)
Interim Consolidated Statements of Operations
(expressed in U.S. dollars)
(Unaudited)

														CUMULATIVE
														PERIOD FROM
														INCEPTION
														OCTOBER 12
		THREE MONTHS ENDED						NINE MONTHS ENDED						2000 TO
		SEPTEMBER 30						SEPTEMBER 30						SEPTEMBER 30
		2007			2006			2007			2006			2007

Revenue	$	0		$	0		$	0		$	0		$	0

Expenses
Administration		14,953			938			30,370			29,490			129,996
Consulting fees		5,677			25,488			41,923			62,479			191,450
Feasibility study		0			0			0			0			9,250
Foreign exchange loss (gain)		(339	)		430			(1,532	)		239			855
Office and rent		3,766			11,692			16,718			34,360			147,661
Organization expenses		0			0			0			0			6,228
Professional fees		5,379			6,585			32,913			32,133			118,530
Technology cost		0			0			0			0			100,000
		29,436			45,133			120,392			158,701			703,970

Net Loss For The Period	$	(29,436	)	$	(45,133	)	$	(120,392	)	$	(158,701	)	$	(703,970	)


Basic And Diluted Loss Per Share	$	(0.00	)	$	(0.00	)	$	(0.01	)	$	(0.01	)


Weighted Average Number
Of Shares Outstanding		12,033,730			11,033,778			12,033,730			10,935,745

(The accompanying notes are an integral part of the financial statements)

Solanex Management Inc.
(A Development Stage Company)
Interim Consolidated Statements of Cash Flows
(expressed in U.S. dollars)
(Unaudited)

								CUMULATIVE
								PERIOD FROM
								INCEPTION
		NINE MONTHS ENDED						OCTOBER 12,
		SEPTEMBER 30						2000 TO
		2007			2006			SEPTEMBER 30,
								2007

Cash Flows Used in Operating Activities
Net loss for the period	$	(120,392	)	$	(158,701	)	$	(703,970	)

Adjustments For Items Not Affecting Cash:
Expenses not paid with cash		(1,532	)		239			7,048
Net Changes in Non Cash Operating Working Capital
Items:
Change in prepaid expense		(1,147	)		0			(1,147	)
Change in accounts receivable		(710	)		0			(710	)
Change in accounts payable and accrued liabilities		10,950			28,693			248,055
		(112,831	)		(129,769	)		(450,724	)

Cash Flows From Financing Activities
Issuance of common stock, net of share subscriptions		0			125,000			264,998
Share subscriptions		0			60,000			0
Loans payable		45,000			(11,159	)		215,272
		45,000			173,841			480,270

Foreign Exchange Effect On Cash		1,532			(239	)		(2,048	)

Increase (Decrease) In Cash		(66,299	)		43,833			27,498

Cash, Beginning Of Period		93,797			15,430			0

Cash, End Of Period	$	27,498		$	59,263		$	27,498

Supplemental Disclosure Of Cash Flow Information:
Interest paid	$	0		$	0		$	0
Income taxes paid		0			0			0

Non-Cash Financing Activities:
Stock issued for the acquisition of technology	$	0		$	0		$	3,500
Stock issued on conversion of promissory notes		0			16,772			26,772
Stock issued for organization of the Company		0			0			1,500
Stock issued to settle payables		0			0			95,269

(The accompanying notes are an integral part of the financial statements)

Solanex Management Inc.
(a Development Stage Company)
NOTES TO INTERIM FINANCIAL STATEMENTS
Nine Months Ended September 30, 2007

1.	ORGANIZATION AND BASIS OF PRESENTATION

Solanex Management Inc., herein (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 September 30, 2007 both subsidiary companies were inactive.

The Company intends to develop and market technology specializing in portable high temperature steam generation technology for the resource and environmental industries as well as in high temperature soil remediation. Systems include a portable high temperature burner system and high temperature burner gasifier systems.

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 director of the Company and a principal of EcoTech Waste Management Systems, Inc. (EcoTech).

2.	DEVELOPMENT STAGE COMPANY AND GOING CONCERN

In a development stage company, management devotes most of its activities to preparing the business for operations. The ability of the Company to emerge from the development stage with respect to any planned principal business activity is dependent upon its successful efforts to obtain additional equity financing and/or attain profitable operations. There is no guarantee that the Company will be able to obtain any equity financing or sell any of its products at a profit. There is, therefore, doubt regarding the Company’s ability to continue as a going concern.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

	(a)	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.

	(b)	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 periods. Actual results could differ from these estimates.

(c)	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:

	i)	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.

(d)	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 value of these financial instruments approximate their carrying values, unless otherwise noted.

3.	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-KSB for the year ended December 31, 2006.

In the opinion of the Company’s management these financial statements reflect all adjustments necessary to present fairly the Company’s financial position at September 30, 2007 and the results of its operations for the three and nine months then ended. The results of operations for the three and nine months ended September 30, 2007 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 $703,970 to September 30, 2007.

These factors raise substantial doubt about the Company’s ability to continue as a going concern and 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.

4.	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 on site 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.

As of December 31, 2006, the Company had paid $85,500 to EcoTech, and the remaining $14,500 is included in accounts payable and accrued liabilities. 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.

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.

The Company’s president, Colin Hall, is also a principal of EcoTech.

5.	PROMISSORY NOTES AND LOANS PAYABLE

The promissory notes may be converted in whole or in part into common shares of the Company at the option of the lender at a mutually agreed price per share. The promissory notes are unsecured and bear no interest. Of these notes, three promissory notes, aggregating principal amounts of $20,000, were due prior to September 30, 2007. Renewal dates or terms have not yet been negotiated for these notes. All other principal amounts are due on demand.

6.	RELATED PARTY TRANSACTIONS AND AMOUNTS OWING

Stock issued to settle debt has been issued at fair market values as estimated by the Company.

On October 12, 2000 the Company issued 3,500,000 shares of common stock at $0.001 per share in compensation for the acquisition of a license agreement to certain technology and intellectual property, and issued 1,500,000 shares of common stock at $0.001 per share in compensation for organizational expenses.

In 2003 the Company issued 310,000 restricted shares of common stock at $0.01 per share pursuant to a private placement in the amount of $3,100, and issued 281,725 free trading and 2,267,000 restricted shares of common stock for settlement of a $96,939 payable.

On December 1, 2003 the Company acquired and cancelled 750,000 restricted shares of common stock for the consideration of $1.00.

On April 12, 2004 the Company issued 419,300 shares of common stock at $0.04 per share in settlement of $16,772 in promissory notes payable.

On September 30, 2005 the Company recorded the issuance of 2,130,705 common shares at $0.04 per share in settlement of share subscriptions received by the Company on October 1, 2004.

On February 9, 2006 the Company issued 1,000,000 shares of common stock at $0.10 per share pursuant to a private placement in the amount of $100,000 and issued 375,000 shares for cash at $0.04 in the amount of $15,000.

On June 9, 2006 the Company issued 250,000 shares of common stock at $0.04 per share in settlement of a $10,000 promissory note payable.

On September 28, 2006 the Company issued 750,000 restricted shares of common stock at $0.10 per share pursuant to a private placement in the amount of $75,000.

7.	RELATED PARTY TRANSACTIONS AND AMOUNTS OWING

Colin V. Hall, the Company’s President and the developer of the Company’s technology, together with EcoTech Waste Management Inc., a company of which he is a principal, owned 29.1% (2005: 36.2%) of the issued and outstanding shares of the Company as of September 30, 2007. As of September 30, 2007, $14,500 (2006: $14,500) was owing to EcoTech for services performed during prior periods. This amount is included in accounts payable and accrued liabilities.

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

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 Desructor 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 are currently in a preliminary stage of review of a placer gold recovery operation located on property in Chile.

Plan of Operation

Our plans for the next 12 months related to our Thermal Destructor are currently secondary to pursuing marketing efforts with our Steam Injection System. Our Steam Injector System is designed to aid in heavy oil and bitumen retrieval using technology borrowed from the Thermal Destructor. While we plan to focus our resources in marketing the Steam Injection System for its intended purpose, we also plan to cross-market our Thermal Destructor for potential clients in the same industry (oil production) that are in need of soil contamination cleanup on their old oil fields.

Product Development

We intend to finalize the technical designs for our Steam Injection System within the next twelve months and begin the sale and manufacture of Steam Injection Systems to oil companies who do or could utilize steam injection as a method to recover oil held in Bitumen or oil sands. Our marketing program will begin in earnest prior to the completion of the finalization of our technical designs.

During the coming year, we will also seek out other applications for our technology, and may modify our product development plans based on new applications and opportunities that arise.

We have hired John Matthews as our field operations specialist to finalize designs for technical applications. Mr. Matthews has worked with Mr. Colin Hall, our officer and director, for 37 years and has detailed knowledge of our Steam Injection System and Thermal Destructor. These designs are necessary for integrating our products into proposed contracts, as described below under our discussion of “Manufacturing.” We expect Mr. Matthews to:

- provide services that include analyses of operation of field units, in connection with our Thermal Destructor) operation; and
- be a liaison with site engineers for specifications of our Steam Injection System.

In the build-up of client and field readiness during this first year, Mr. Matthews will also act as designer of promotional materials and displays and he will assist management with the overall design of the Steam Injection System, its presentation and technology. We have a verbal arrangement to compensate our designer and expect to incur roughly $40,000 on our designer in the next twelve months. Colin Hall, the Company’s president, will oversee the overall project, including design, marketing and finance.

Manufacturing
During the next year, we plan to contract with third parties to manufacture and assemble our Steam Injection System according to our technical specifications. There are a number of manufacturing facilities capable of producing equipment of this type and size. We have made initial arrangements with TS2000-Star Vehicle Technologies Inc. (www.ts2000-star.com), a company that has production facilities under construction in Malakwa, British Columbia in a joint venture with Heromin, the North American arm of Yituo China Manufacturing Group (“YTO”). YTO is a large company in China with approximately 52,000 employees (www.yto.com.cn). We are currently pursuing bids from other manufacturing companies, and intend to sign a contract with at least one company in the coming year.

The TS2000/Heromin Joint Venture has indicated that it may open a U.S. facility in the Free Trade Zone at the Port of Bellingham, once the Canadian operation is running smoothly in about 16 months. With assembly in Bellingham of components manufactured in China (heavy steel components) and others in the United States (controls, computer systems and electronics), an alliance with this manufacturer should prove very advantageous in our U.S. operations.

Because our Steam Injection System requires a significant amount of capital to manufacture, we will not maintain a standing inventory of products. As is customary with companies that develop and manufacture large construction and/or mining equipment, each unit will be made to order, manufactured to the customer’s specifications in order to meet their unique needs. This will provide the most appropriate product to our customer and reduces our need to tie up large amounts of capital in inventory.

When a customer purchases one of our Steam Injection Systems, we plan to send a field operations specialist to their operations site. Our specialist will interview the customer’s engineers, survey the operations site, and collect other relevant data. He will then provide our technicians and our contract manufacturer with 3D terrain and site modeling and design specifications based upon the customer’s needs. As our liaison with the customer’s site engineers, he will provide information such as required delivery temperatures and pressures and pumping distances. He will also help determine the number of systems we will need to supply to meet the customer’s needs for a particular operations site.

Marketing
To date, interest in our technology has been generated, through the direct efforts of our sole executive officer, Mr. Hall, with engineers and engineering firms servicing the oil production industry in North America. Through this contact, Mr. Hall has been able to generate some positive interest in our technology. Additionally, Mr. Hall is commencing a program to identify marginal oil shale opportunities from which oil could not previously be profitably recovered because of the high fixed costs associate with building large, permanent steam-generation units. By offering access to our technology, which will make oil recovery from such properties a profitable operation, Mr. Hall is seeking joint ventures with oil firms to bring those oil shale deposits into production.

In the next twelve months, we intend to continue to use the services of Mr. Hall to sell our technology, seeking joint ventures as well as direct sales. If future sales justify the expense, however, we may employ sales personnel to market our products to potential customers. These representatives will be responsible for soliciting, selecting and securing opportunities within a particular regional territory. We expect to pay such representatives on a commission basis, with commissions depending on the size of the sale. We expect to provide service and support to our representatives, including advertising, technical data sheets and design services on a fee basis, and sales materials. We do not intend to incur the costs of marketing and sales personnel in the next twelve months unless our revenues are enough to absorb the cost of these personnel, especially as it will be some months before we have field-ready systems to offer.

Access International Matting (“AIM”) and Heromin Machinery (Canada) will assist Mr. Hall in the development of an overall project marketing plan and a project financial plan. The intention is to have the first customer finance the initial plant, which it is anticipated will take nine months to build. AIM has recently employed three people to develop the Heromin market and we are to be represented by AIM on an ad-hoc, commission only basis. A web site describing Solonex Management's services is under construction and will be linked from the TS2000, ecoTECH, Heromin and AIM sites.

We are also currently working with engineering firms that are connected with steam stimulation or steam-assisted gravity drainage projects in Alberta, Canada. We hope to secure an agreement in the next 12 months with one or more of these firms on a project in Alberta. We anticipate that an engineering firm will help us provide consulting on engineering and product application needs, monitor the finished system’s performance, and with proven performance, thereafter recommend the system to the firm’s clients, with an option to invest in, or take over the program.

Financing Plans

The completion of our business plan for the next twelve months is contingent upon us obtaining additional financing. As of September 30, 2007 we had cash in the amount of $27,498. We have forecasted expenditures of $150,000 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 Colin Hall nor EcoTech Waste Management Systems, Inc. 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.

We have not contacted any broker-dealers or other parties regarding our financing plans but may do so in the fourth quarter of 2007. 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 2007. Our anticipated expenses through December 31, 2007 are:

We have agreed to pay $40,000 towards the cost of marketing of our products and technology to our first customer. The marketing funds were included in our budget to September 30, 2007.

Quarter 4 – October/November/December 2007

Once the technical drawings for the prototype have been completed, we expect to require minimal additional funding as we will continue looking for a commercial and financial partner at this stage.

We will require the $12,000 that has been budgeted for this quarter to cover the costs associated with the general administration and regulatory reporting requirements of our Company, and additional funds that may be required based on our progress over the year.

We expect to have a working relationship with a commercial and financial partner by December 31, 2007. Therefore, we expect to reassess our financing requirements during this quarter. The initial requirements for research and development of our technology will have been paid for and we hope the initial sales and marketing program for our prototype will have been completed.

Results of Operations for the three and nine months ended September 30, 2007 and 2006
No revenue was recorded for the three or nine month periods ended September 30, 2007 and no revenue has been generated since inception.

Net loss for the three months period ended September 30, 2007 was $29,436 compared to a loss of $45,133 for the three months ended September 30, 2006. The expenditures comprising the loss for the three months ended September 30, 2007 consisted primarily of administrative expenses in the amount of $14,953 (2006 - $938), consulting and professional fees in the amount of $11,056 (2006 - $32,073) and office/rent in the amount of $3,766 (2006 - $11,692). During the three months ended September 30, 2007 we expended $nil on our review of our Company’s high temperature burner technology and other opportunities available to it in the resource sector ($nil for the comparable period in 2006).

Net loss for the nine months period ended September 30, 2007 was $120,392 compared to a loss of $158,701 for the nine months ended September 30, 2006. The expenditures comprising the loss for the nine months ended September 30, 2007 consisted primarily of administrative expenses in the amount of $30,370 (2006 - $29,490), consulting and professional fees in the amount of $74,836 (2006 - $94,612) and office/rent in the amount of $16,718 (2006 - $34,360). During the nine months ended September 30, 2007 we expended $36,246 on outside consultants (included in consultants and professional fees above) in our review of our Company’s high temperature burner technology and other opportunities available to it in the resource sector ($36,991 for the comparable period in 2006).

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 September 30, 2007 or during the three months ended September 30, 2006.

As of September 30, 2007 the Company has a working capital deficiency of $296,931 (at December 31, 2006 $176,538). 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 September 30, 2007 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 10QSB, 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 quarter ended September 30, 2007 nor did the Company commence any lawsuits during the same period.

ITEM 2. Changes in Securities and Use of Proceeds

During the nine months ended September 30, 2007 the Company issued the following securities: No shares 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

Exhibit Number	Description of Exhibit
31.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

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/ Colin Hall
	Colin Hall, President
	President and Director

Date:	August 8, 2008