- Quarterly Report (10-Q)

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 March 31, 2009

o TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____________ to ___________

Commission File Number 33-19048-NY

AMERICAN METAL & TECHNOLOGY, INC.

(Exact Name of Small Business Issuer as specified in its charter)

Delaware	22-2856171
(State or other jurisdiction of incorporation or organization)	(I.R.S. employer identification no.)

	633 W. 5 th Street, 28 th Floor Los Angeles, CA 90071
	(Address of principal executive offices) (Zip Code)

	Registrant's telephone number, including area code: (213) 223-2321

Indicate by check mark whether the Issuer:

(1) Has 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 registrant was required to file such reports):

Yes x No o

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

Large Accelerated Filer	o	Accelerated Filer	o

Non-Accelerated Filer	o	Smaller Reporting Company	x

(2) Has been subject to such filing requirements for the past 90 days.

Yes x No o

10,720,268 shares of the registrant's Common Stock, $.0001 per share, were outstanding as of March 31, 2009.

AMERICAN METAL & TECHNOLOGY, INC.

TABLE OF CONTENTS

FORM 10-Q

	PART I FINANCIAL INFORMATION

Item Number		Page

Item 1.	Financial Statements	3

	Consolidated Balance Sheet as of March 31, 2009 and December 31, 2008 (Unaudited)	3

	Consolidated Statements of Income and Other Comprehensive Income for the Three Months Ended March 31, 2009 and 2008 (Unaudited)	4

	Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2009 and 2008 (Unaudited)	5

	Notes to Financial Statements	6 - 15

Item 2.	Management’s Discussion and Analysis of Financial Condition or Plan of Operation	16

Item 3.	Qualitative and Quantitative Disclosures About Market Risk	19

Item 4T.	Controls and Procedures	20

	PART II OTHER INFORMATION	20

Item 1.	Legal Proceedings	20

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	20

Item 3.	Defaults upon Senior Securities	20

Item 4.	Submission of Matters to a Vote of Security Holders	20

Item 5.	Other Information	20

Item 6.	Exhibits and Reports on Form 8-K	21

	Signatures	21

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

AMERICAN METAL & TECHNOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AS OF MARCH 31, 2009 AND DECEMBER 31, 2008
(UNAUDITED)

	March 31, 2009		December 31, 2008
ASSETS

Current Assets
Cash and cash equivalents	$	8,477,595	$	7,569,046
Accounts receivable - net		882,600		2,424,157
Investment in marketable securities		775		93,906
Other receivables		115,796		352,250
Advances to suppliers		475,830		390,368
Inventories		1,492,543		1,079,741
Current assets of the entity held for disposal		-		69,476
Total Current Assets		11,445,139		11,978,944

Property, Plant And Equipment, net		4,388,559		4,160,737

Construction in Progress		2,565,085		2,884,437

Intangible Assets, net		669,227		684,639

Total Assets	$	19,068,010	$	19,708,757

LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities
Accounts payable	$	998,862	$	1,544,995
Accrued liabilities and other payables		59,513		95,039
Accrued bonuses		351,913		351,913
Amount due to related parties		817,086		813,082
Unearned revenue		54,174		8,645
Liability of the entity held for disposal		-		645

Total Current Liabilities		2,281,548		2,814,319

Commitments

Shareholders' Equity
Common stocks; $0.0001 par value, 30,000,000 shares authorized, 10,720,268 shares issued and outstanding		1,072		1,072
Additional paid in capital		7,786,114		7,786,114
Deferred expense-warrants		-		(20,435	)
Statutory reserve		1,418,851		1,412,586
Accumulated other comprehensive income		1,861,901		1,865,844
Retained earnings		5,718,524		5,849,257

Total Stockholders' Equity		16,786,462		16,894,438

Total Liabilities and Shareholders' Equity	$	19,068,010	$	19,708,757

The accompanying notes are an integral part of the consolidated financial statements.

AMERICAN METAL & TECHNOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 2009 AND 2008
(UNAUDITED)

	2009			2008

Net sales	$	1,282,299		$	4,896,515
Cost of goods sold		(887,586	)		(3,437,120	)
Gross profit		394,713			1,459,395
Operating expenses
Selling expenses		(3,800	)		(16,258	)
Operating and administrative expenses		(526,441	)		(480,946	)
Total operating expenses		(530,241	)		(497,204	)
Income (loss) from operations		(135,528	)		962,191
Other income (expense)
Interest income		110,474			5,728
Loss on disposal of marketable securities		(29,512	)		35,651
Other Income (expense)		(1,071	)		1,041
Total other income		79,891			42,420
Income(loss) before minority interests		(55,637	)		1,004,611
Minority interests		-			(12,585	)
Net income (loss) from continuing operations		(55,637	)		1,017,196
Loss from entity held for disposal		(68,831	)		-
Net Income (Loss)		(124,468	)		1,017,196
Other comprehensive items:
Reclassification on disposal of marketable securities		58,382			-
Unrealized gain (loss) from marketable securities		234			(66,190	)
Foreign currency translation adjustment		(62,559	)		547,366
Comprehensive income (loss)	$	(128,411	)	$	1,498,372
Basic and diluted weighted average shares outstanding *		10,720,268			8,998,568
Net earnings (loss) per share from continuing operations	$	0.00		$	0.11
Net earnings (loss) per share from entity held for disposal	$	(0.01	)	$	-
Basic and diluted net earnings (loss) per share *	$	(0.01	)	$	0.11

*Basic and diluted shares are the same because there are no anti dilutive effect
The accompanying notes are an integral part of the consolidated financial statements.

AMERICAN METAL & TECHNOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2009 AND 2008
(UNAUDITED)

	2009			2008
Cash flows from operating activities:
Net income (loss)	$	(124,468	)	$	1,017,196
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Minority interest		-			(12,585	)
Amortization of deferred expense-warrants		20,435			4,418
Loss on disposal of marketable securities		29,512			(35,651	)
Bad debt expenses		-			33,317
Depreciation and amortization		123,307			87,088
(Increase)/decrease in assets:
Accounts receivable		1,533,155			(270,300	)
Note receivable		-			29,334
Other receivables		233,723			81,202
Inventory		(416,386	)		(35,971	)
Advance to suppliers		(86,767	)		(724,723	)
Increase/(decrease) in liabilities:
Accounts payable		(575,841	)		288,502
Other payable and accrued expenses		(349	)		65,421
Unearned revenue		45,551			77,943
Net cash provided by operating activities from continuing operations		781,870			605,192
Net cash provided by operating activities of entity held for disposal		45,931			-
Net cash provided by operating activities		827,801			605,192

Cash flows from investing activities:
Additions to construction in progress		-			(68,427	)
Cash received for short-term investment		121,700			-
Purchase of equipment and leasehold improvements		(42,460	)		(4,383	)
Net cash provided by (used in) investing activities from continuing operations		79,241			(72,810	)
Net cash provided by investing activities of entity held for disposal		22,901			-
Net cash provided by (used in) investing activities		102,142			(72,810	)

Cash flows from financing activities:
Purchase of marketable securities		-			(40,620	)
Proceeds (Payments) from (to) related party loan		4,004			-
Net cash provided by (used in) financing activities		4,004			(40,620	)

Net increase in cash and cash equivalents		933,947			491,762

Effects of exchange rate change in cash		(25,398	)		252,750

Cash and cash equivalents-beginning balance		7,569,046			6,037,193

Cash and cash equivalents-ending balance	$	8,477,595		$	6,781,705

Supplement disclosure of cash flow information:
Income taxes paid	$	-		$	-
Interest expenses paid	$	-		$	-

The accompanying notes are an integral part of the consolidated financial statements.

AMERICAN METAL & TECHNOLOGY, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1. Organization and description of business

On June 1, 2007, American Metal & Technology, Inc. (AMTI , "We, "Us, "Our" or the "Company" ) formally changed its name from Murray United Development Corporation to American Metal & Technology, Inc.

The Company entered into a Stock Purchase Agreement on November 6, 2006 (the "Agreement") with American Metal Technology Group, a Nevada corporation (“AMTG"), pursuant to which the Company acquired one hundred (100%) percent of AMTG's outstanding common stock from the AMTG Stockholders and AMTG became a wholly-owned subsidiary of the company in a two step reverse takeover transaction on May 22, 2007. In connection with this transaction, and in addition to the 173,253,434 shares of common stock outstanding immediately prior to closing, the Company issued 1,213,295,563 shares to the stockholders and consultants of AMTG (1,142,388,273 shares to AMTG's former shareholders, including 20,000,000 shares of common stock issues to AMTG as investment upon completion of the due diligence period to the Agreement, and redistributed proportionally to AMTG's shareholders as of May 22, 2007, and 70,907,300 shares to AMTG's consultants). These shares represent more than eighty five (85%) of the Company's issued and outstanding shares of voting capital stock on a fully diluted basis, and therefore the former shareholders of AMTG and its consultants effectively have control of the Company. In addition, as a condition of the closing of the Agreement, the Company issued an additional 10,000,000 shares of common stock to a former officer and director of the Company in connection with the cancellation of all indebtedness to him, and his assumption of all liabilities and the assignment all assets of the Company immediately prior to closing. AMTG is now a wholly owned subsidiary of the Company.

The exchange of shares with AMTG has been accounted for as a reverse acquisition under the purchase method of accounting since the shareholders of AMTG obtained control of the consolidated entity. Accordingly, the merger of the two companies has been recorded as a recapitalization of AMTG, with AMTG being treated as the continuing entity. The historical financial statements presented herein are those of AMTG. The continuing company has retained December 31 as its fiscal year end.

Reflecting the change of ownership, the Company filed a Certificate of Amendment to its Certificate of Incorporation to change its name to American Metal & Technology, Inc., which became effective June 1, 2007.

The Company now through AMTG via its subsidiaries, Beijing Tong Yuan Heng Feng Technology Co., Ltd. and American Metal Technology (Lang Fang) Co., Ltd., is mainly in the business of manufacturing and sales of high-precision investment casting and metal fabrication products in the People's Republic of China (“ China”) . The Company's production involves high-precision investment casting and machined products, including valves, pipe fittings, etc.

AMTG was incorporated on January 13, 2004 under the laws of the state of Nevada. On June 1, 2004, AMTG entered into an equity purchase agreement with Beijing Sande Technology (Holding) Co., Ltd. (“ BST”) to acquire 80% ownership of Beijing Tong Yuan Heng Feng Technology Co., Ltd. (“ BJTY”) . As a result, AMTG issued 7,200 shares of his pre-split common stock to BST in exchange for 80% ownership of BJTY. On August 2, 2004, AMTG incorporated American Metal Technology (Lang Fang) Co., Ltd. (“ AMLF”) in Hebei, China, for the purpose of expanding the production facility of BJTY. On August 8, 2004, AMTG and AMLF together entered into an equity purchase agreement with Beijing Sande Shang Mao Co., Ltd. (BSS ) for the remaining 20% of BJTY. As a result, AMTG which issued 1,800 shares of pre-split common stock to BSS and AMLF becomes the owner of 20% shareholder of BJTY. AMTG later acquired the 20% ownership of BJTY from AMLF and owns 100% of BJTY. On November 12, 2004, AMTG effectuated a forward split of all the outstanding shares of common stock on a 1,000 for 1 basis. On November 2005, AMTG sold 5% of BJTY to an unrelated party for $240,000. As set forth below, the Company repurchased such shares pursuant to an Equity Purchase Agreement Executed on September 22, 2008.

On September 22, 2008, the Company entered in an Equity Purchase Agreement ("the Agreement") with Wen Ge Ren (the "Seller"), a shareholder owning a 5% stock interest in Beijing Tong Yuan Heng Feng Technology Co., Ltd ("BJTY"), which is 95% owned through the Company's wholly owned subsidiary American Metal Technology Group. Pursuant to the Agreement, the Company shall pay to the Seller US $390,299. The Seller has agreed to accept from the Company the equivalent of US $92,566.46 or RMB 629,451.91 and balance of US $297,732.57 pursuant to the issuance of such number of shares of restricted Common Stock based upon the amount equal to 75% of the average of the closing bid price of the Company's Common Stock for the five-day trading period commencing on September 18, 2008. The Company shall deliver to the Seller the cash consideration and duly executed share certificates representing the underlying shares registered in the name of the Seller within 60 days from the date of signature. The Company delivered the cash consideration and issued 317,581 shares to the Seller prior to September 30, 2008.

On October 31, 2008, the Board of Directors adopted resolutions, authorizing incentive compensation to key members of its management if the Company has four million ($4,000,000) dollars or more in net income for the fiscal year of 2008 excluding expenses relating to the incentive compensation, as reflected in the audited Financial Statements of the Company as filed with the Securities and Exchange Commission. The incentive compensation shall be paid by the issuance of shares of common stock by the Company as follows: (A) 533,333 shares of common stock determined by multiplying the initial four million ($4,000,000) dollars of net income by ten (10%) percent and dividing the product by an agreed value of $0.75 per share and (B) such number of additional shares of common stock determined by multiplying the amount of net profit in excess of four million ($4,000,000) dollars by twenty (20%) percent and dividing such product by an agreed value of $0.75 per share. As of March 31, 2009, such shares have not been issued.

AMERICAN METAL & TECHNOLOGY, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

2. Summary of significant accounting policies

The accompanying unaudited financial statements of the Company have been prepared in accordance with generally accepted accounting principles for interim financial information. Accordingly, they do not include all of the information required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the interim periods are not necessarily indicative of the results for any future period. These statements should be read in conjunction with the Company's audited financial statements and notes thereto for the fiscal year ended December 31, 2008. The results of the three month period ended March 31, 2009 are not necessarily indicative of the results to be expected for the full fiscal year ending December 31, 2009.

Principal of consolidation

The consolidated financial statements of American Metal Technology, Inc. reflect the activities of the following subsidiaries:

Subsidiaries		Percentage Of Ownership
American Metal Technology Group, (“AMTG") Co., Ltd.	U.S.	100	%
American Metal Technology (Lang Fang) Co., Ltd.	P.R.C.	100	%
Beijing Tong Yuan Heng Feng (Technology) Co., Ltd.	P.R.C.	100	%
Lighting Power Global Limited	B.V.I.	100	%

The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. All significant inter-company transactions and accounts have been eliminated in the consolidation.

Use of estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted 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 consolidated financial statements and the amount of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made. However, actual results could differ materially from those results.

Cash and cash equivalents

For Statement of Cash Flows purposes, the Company considers all cash on hand and in banks, including accounts in book overdraft positions, certificates of deposit and other highly-liquid investments with maturities of three months or less, when purchased, to be cash and cash equivalents. As of March 31, 2009 and December 31, 2008, cash and cash equivalent amounted to $8,477,594 and $7,569,046, respectively. The cash is deposited with four banks in China and is not insured.

Accounts receivable

The Company's policy is to maintain reserves for potential credit losses for accounts receivable. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves. As of March 31, 2009 and December 31, 2008, the Company had accounts receivable of $882,600 and $2,424,157, net of allowance of $197,119 and $62,716 respectively.

Advances to suppliers

The company advances to certain vendors for the purchase of material. As of March 31, 2009 and December 31, 2008, the advances to suppliers amounted to $475,830 and $390,368 respectively.

AMERICAN METAL & TECHNOLOGY, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

2. Summary of significant accounting policies - continued

Revenue recognition

The Company's revenue recognition policies are in compliance with Staff accounting bulletin (SAB) 104. Sales revenue is recognized at the date of shipment to customers when a formal arrangement exists, the price is fixed or determinable, the delivery is completed, no other significant obligations of the Company exist and collectability is reasonably assured. Payments received before all of the relevant criteria for revenue recognition are satisfied are recorded as unearned revenue. Unearned revenue as of March 31, 2009 and December 31, 2008 amounted to $54,174 and $8,645 respectively.

The Company's revenue consists of invoiced value of goods, net of a value-added tax (VAT). No product return or sales discount allowance is made as products delivered and accepted by customers are normally not returnable and sales discount is normally not granted after products are delivered.

Foreign currency translation

The reporting currency of the Company is the US dollar. The Company uses their local currency, Renminbi (RMB), as their functional currency. Results of operations and cash flow are translated at average exchange rates during the period, and assets and liabilities are translated at the unified exchange rate at the end of the period. Translation adjustments resulting from this process are included in accumulated other comprehensive income in the statement of shareholders' equity. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred.

Accumulated other comprehensive income amounted to $1,861,901 and $1,865,844 as of March 31, 2009 and December 31, 2008, respectively. Accumulated other comprehensive income is comprised of unrealized gain from available for sale securities of $234 and foreign currency translation gain of $1,861,667 as of March 31, 2009.

Income taxes

The Company utilizes SFAS No. 109, "Accounting for Income Taxes," which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. At March 31, 2009 and December 31, 2008, there was no significant book to tax differences.

Local PRC Income Tax

The Company is governed by the Income Tax Law of the PRC concerning subsidiaries located in PRC. Under the Income Tax Laws of the PRC, Chinese enterprises are generally subject to an income tax at an effective rate of 33% (30% state income taxes plus 3% local income taxes) on income reported in the statutory financial statements after appropriate tax adjustments.

The Company does not have any significant deferred tax asset or liabilities in the PRC tax jurisdiction.

Beginning January 1, 2008, the new Enterprise Income Tax (EIT) law replaced the existing laws for Domestic Enterprises (DES) and Foreign Invested Enterprises (FIEs). The new standard EIT rate of 25% replaced the 33% rate previously applicable to both DES and FIEs. The Company evaluated the effect of the new EIT law on its financial position, and the two years tax exemption, three years 50% tax reduction tax holiday for production-oriented FIEs will be continued. The Company is exempted from income tax in Peoples Republic of China, for the three months ended March 31, 2009 and 2008.

Segment reporting

Statement of Financial Accounting Standards No. 131 ("SFAS 131"), "Disclosure about Segments of an Enterprise and Related Information" requires use of the "management approach" model for segment reporting. The management approach model is based on the way a company's management organizes segments within the company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company.

SFAS No. 131 has no effect on the Company's consolidated financial statements as the Company operates in one reportable business segment - manufacture and marketing high-precision investment casting and metal fabrication products in China.

AMERICAN METAL & TECHNOLOGY, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

2. Summary of significant accounting policies - continued

Recent accounting pronouncements

In March 2008, the FASB issued FASB Statement No. 161, Disclosures about Derivative Instruments and Hedging Activities. The new standard is intended to improve financial reporting about derivative instruments and hedging activities by requiring enhanced disclosures to enable investors to better understand their effects on an entity’s financial position, financial performance, and cash flows. It is effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008, with early application encouraged. The new standard also improves transparency about the location and amounts of derivative instruments in an entity’s financial statements; how derivative instruments and related hedged items are accounted for under Statement 133; and how derivative instruments and related hedged items affect its financial position, financial performance, and cash flows. Management does not believe the effect of this pronouncement on financial statements will have a material effect.

In May of 2008, FASB issued SFASB No.162, “The Hierarchy of Generally Accepted Accounting Principles”. The pronouncement mandates the GAAP hierarchy reside in the accounting literature as opposed to the audit literature. This has the practical impact of elevating FASB Statements of Financial Accounting Concepts in the GAAP hierarchy. This pronouncement will become effective 60 days following SEC approval. The Company does not believe this pronouncement will impact its financial statements.

In May 2008, FASB issued SFASB No. 163, Accounting for Financial Guarantee Insurance Contracts-an interpretation of FASB Statement No. 60. The scope of the statement is limited to financial guarantee insurance (and reinsurance) contracts. The pronouncement is effective for fiscal years beginning after December 31, 2008. The company does not believe this pronouncement will impact its financial statements.

In December 2007, the FASB issued SFAS No. 141(R), “Business Combinations”. This Statement replaces SFAS No. 141, Business Combinations. This Statement retains the fundamental requirements in Statement 141 that the acquisition method of accounting (which Statement 141 called the purchase method) be used for all business combinations and for an acquirer to be identified for each business combination. This Statement also establishes principles and requirements for how the acquirer: a) recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed, and any noncontrolling interest in the acquiree; b) recognizes and measures the goodwill acquired in the business combination or a gain from a bargain purchase and c) determines what information to disclose to enable users of the financial statements to evaluate the nature and financial effects of the business combination. SFAS No. 141(R) will apply prospectively to business combinations for which the acquisition date is on or after Company’s fiscal year beginning January 1, 2009. While the Company has not yet evaluated this statement for the impact, if any, that SFAS No. 141(R) will have on its consolidated financial statements, the Company will be required to expense costs related to any acquisitions after January 1, 2009.

On December 30, 2008 FASB issued FIN 48-3, “Effective Date of FASB Interpretation No. 48 for Certain Nonpublic Enterprises”. This FSP defers the effective date of FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes, for certain non-public enterprises as defined in paragraph 289, as amended, of FASB Statement No. 109, Accounting for Income Taxes, including non-public not-for-profit organizations. However, non-public consolidated entities of public enterprises that apply U. S. GAAP are not eligible for the deferral. Nonpublic enterprises that have applied the recognition, measurement, and disclosure provisions of Interpretation 48 in a full set of annual financial statements issued prior to the issuance of this FSP also are not eligible for the deferral. This FSP shall be effective upon issuance. The Company does not believe this pronouncement will impact its financial statements.

On January 12, 2009 FASB issued FSP EITF 99-20-01, “Amendment to the Impairment Guidance of EITF Issue No. 99-20”. This FSP amends the impairment guidance in EITF Issue No. 99-20, “Recognition of Interest Income and Impairment on Purchased Beneficial Interests and Beneficial Interests That Continue to be Held by a Transferor in Securitized Financial Assets,” to achieve more consistent determination of whether an other-than-temporary impairment has occurred. The FSP also retains and emphasizes the objective of an other-than-temporary impairment assessment and the related disclosure requirements in FASB Statement No. 115, Accounting for Certain Investments in Debt and Equity Securities, and other related guidance. The FSP is shall be effective for interim and annual reporting periods ending after December 15, 2008, and shall be applied prospectively. Retrospective application to a prior interim or annual reporting period is not permitted. The Company does not believe this pronouncement will impact its financial statements.

3. Marketable Securities

The Company’s securities are classified as available-for-sale and, as such, are carried at fair value. The securities comprised of shares of common stock of third party customers and securities purchased. Securities classified as available-for-sale may be sold in response to changes in interest rates, liquidity needs, and for other purposes. The Company does not currently have any held-to-maturity or trading securities.

Unrealized holding gains and losses for available-for-sale securities are excluded from earnings and reported as a separate component of stockholder’s equity. Realized gains and losses for securities classified as available-for-sale are reported in earnings based upon the adjusted cost of the specific security sold.

Marketable securities classified as available for sale consisted of the following as of March 31, 2009 and December 31, 2008:

	March 31, 2009		December 31, 2008
Marketable Securities	Various		Various
Cost	$	541	$	164,689
Market Value		775		93,906
Unrealized Gain (Loss) for the year ended	$	234	$	(70,783	)
Accumulated Unrealized Gain (Loss)		234		(58,382	)

As of March 31, 2009, the Company evaluated its marketable securities holdings by valuing the securities according to the quoted price of the securities on the stock exchange.

AMERICAN METAL & TECHNOLOGY, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

4. Other receivables

Other receivables consisted of the following at March 31, 2009 and December 31, 2008. The receivables are due from unrelated parties, interest free, unsecured, and due on demand.

	March 31, 2009		December 31, 2008
Note receivable	$	106,246	$	117,259
Tax receivable		7,081		194,638
Others		2,469		40,353
Totals	$	115,796	$	352,250

5. Inventories

Inventories consisted of the following at March 31, 2009 and December 31, 2008:

	March 31, 2009		December 31, 2008
Supplies and raw materials	$	870,244	$	522,008
Work in process		595,159		539,386
Finished goods		27,140		18,347
Totals	$	1,492,543	$	1,079,741

6. Property, Plant and Equipment

Property, Plant and Equipment consist of the following at March 31, 2009 and December 31, 2008:

	March 31, 2009			December 31, 2008
Building and improvements	$	977,999		$	981,311
Vehicle		112,549			112,930
Machinery and equipments		4,512,910			4,174,913
Totals		5,603,458			5,269,154
Less: accumulated depreciation		(1,214,899	)		(1,108,417	)
	$	4,388,559		$	4,160,737

Depreciation expenses for the year ended March 31, 2009 and 2008 were $108,349 and $74,328, respectively.

7. Construction in Progress:

As of March 31, 2009 and December 31, 2008, construction in progress, representing construction for additional facilities at its Langfang manufacturing center, amounted to $2,565,085 and $2,884,437, respectively.

8. Intangible assets

The intangible assets comprised of the following at March 31, 2009 and December 31, 2008:

	March 31, 2009		December 31, 2008
Land use right, net	$	604,004	$	609,378
Permits, net		65,223		75,261
Total	$	669,227	$	684,639

Land use right:

Per the People's Republic of China's governmental regulations, the Government owns all land. However, the government grants the user a “land use right” (the Right) to use the land. The Company has recognized the amounts paid for the acquisition of rights to use land as intangible asset and amortizing over a period of fifty years.

AMERICAN METAL & TECHNOLOGY, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

8. Intangible assets - continued

American Metal Technology (Lang Fang) Co., Ltd. acquired land use rights during the year ended 2004 for a total amount of $663,740. The land use right is for fifty years. The intangible assets consist of the following as of March 31, 2009 and December 31, 2008:

	March 31, 2009			December 31, 2008
Intangible assets	$	663,740		$	665,987
Less: accumulated amortization		(59,736	)		(56,609	)
	$	604,004		$	609,378

Permits:

Permits amounted to $65,223 and $75,261 as of March 31, 2009 and December 31, 2008 respectively and are amortized over 5 years:

	2009			2008
Prepaid expenses	$	76,865		$	196,333
Less: accumulated amortization		(11,642	)		(121,072	)
	$	65,223		$	75,261

Intangible assets of the Company are reviewed annually as to whether their carrying value has become impaired. The Company considers assets to be impaired if the carrying value exceeds the future projected cash flows from related operations. The Company also re-evaluates the periods of amortization to determine whether subsequent events and circumstances warrant revised estimates of useful lives. As of March 31, 2008 the Company expects these assets to be fully recoverable.

Total amortization expenses for the year ended March 31, 2009 and 2008 amounted to $14,958 and $12,760 respectively. Amortization expenses for next five years after March 31, 2009 are as follows:

1 year after March 31, 2009	$	53,000
2 year after March 31, 2009		49,000
3 year after March 31, 2009		13,000
4 year after March 31, 2009		13,000
5 year after March 31, 2009		13,000
Total	$	141,000

9. Other payable and accrued expenses

Other payable and accrued expenses consisted of the following at March 31, 2009 and December 31, 2008:

	2009		2008
Payable to other companies	$	-	$	12,731
Taxes payable		453		-
Accrued expenses		59,060		82,953
Totals	$	59,513	$	95,684

10. Due to related parties

Due to related parties amounted to $817,086 and $813,082 as of March 31, 2009 and December 31, 2008. Due to related parties include $766,486 due to an entity, 33% of which is owned by the President and CEO of the Company and $50,600 due to the President and CEO of the Company as of March 31, 2009. Due to related parties include $762,482 due to an affiliate owned by the CEO of BJTY and AMLF and $50,600 due to shareholder as of December 31, 2008. Due to related parties payable are due on demand, interest free, and unsecured.

AMERICAN METAL & TECHNOLOGY, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

11. Stockholders’ equity

Additional paid in capital

The local government in Lang Fang required the Company’s subsidiary American Metal Technology (Lang Fang) Co., Ltd, to increase its investments in Lang Fang with respect to its 2 nd phase construction. On May 8, 2008, the Board of Directors authorized the transfer of $2,245,981 from the Company’s Retained Earnings to Paid in Capital.

Statutory reserve

As stipulated by the Company Law of the People's Republic of China (PRC), net income after taxation can only be distributed as dividends after appropriation has been made for the following:

Making up cumulative prior years' losses, if any;

ii)

Allocations to the "Statutory surplus reserve" of at least 10% of income after tax, as determined under PRC accounting rules and regulations, until the fund amounts to 50% of the Company's registered capital;

iii)

Allocations of 5-10% of income after tax, as determined under PRC accounting rules and regulations, to the Company's "Statutory common welfare fund", which is established for the purpose of providing employee facilities and other collective benefits to the Company's employees; and Statutory common welfare fund is no longer required per the new cooperation law executed in 2006.

iv)

Allocations to the discretionary surplus reserve, if approved in the shareholders' general meeting.

In accordance with the Chinese Company Law, the Company has allocated 10% of its net income to surplus. The amount allocated to the statutory reserve amounted to $6,265 and $114,251 for the three months ended March 31, 2009 and 2008, respectively.

The total statutory reserve, as of March 31, 2009 and December 31, 2008, amounted to $1,418,851 and $1,412,586 respectively.

Deemed dividend

On July 11, 2008, the Company acquired from the Chairman and the President of Company, fifty thousand (50,000) shares of common stock, representing 100% of the issued and outstanding shares, of Lighting Power Global Limited, a British Virgin Island company, incorporated on May 29, 2008, pursuant to the BVI Business Company Act, 2004, resulting in the Company becoming the sole shareholder of Lighting Power Global Limited. The Company agreed to reimburse the Chairman and the President for any loans made and/or expenses incurred with respect to the acquisition and ownership of the shares of common stock of Lighting Power Global Limited, which amounted to $50,000. The company recorded deemed dividend and related party payable in the amount of $50,000 at December 31, 2008.

On March 18, 2009, the Board of Directors authorized the Company to transfer and resell the Company’s ownership of fifty thousand (50,000) shares of common stock, representing 100% of the issued and outstanding shares of Lighting Power Global Limited, a British Virgin Island company, to the Chairman and the President of Company, resulting in the President becoming the sole shareholder of Lighting Power Global Limited. The Board of Directors also authorized the Company to cancel any funds due to the President for any loans made and /or expenses incurred with respect to the original acquisition and ownership of the shares of common stock of Lighting Power Global Limited.

12. Options and warrants

Stock Options

In April 2002 the Company issued options to purchase 40,000 shares of common stock at $3.00 per share. The options were issued to an employee under a non qualified option plan. As of April, 2007, all options have expired. No options were issued during the three months ended March 31, 2009.

Warrants

As a result of the exercises and expiration of warrants, the Company has no Class A and Class B warrants as of December 31, 2007. 99,320 Class B warrants, and 3,333 underwriter's B warrants expired on March 12, 2007.

On March 15, 2008, the Company issued to CCG Investor Relations Partners LLC warrants to purchase 50,000 shares to assist the Company in the execution of its investor relations strategy.

AMERICAN METAL & TECHNOLOGY, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

12. Options and warrants - continued

The assumptions used in calculating the fair value of warrants granted using the Black-Scholes option pricing model are as follows:

Risk-free interest rate		4.12	%
Expected life of the warrants	4 year
Expected volatility		70	%
Expected dividend yield		0	%

These warrants were recorded at the fair value of $100,796. The Company has been expensing the fair value of these warrants over the term of the agreement.

During the three months ended March 31, 2009, the Company expensed $20,435 and deferred $0 in the consolidated financial statements.

The following table summarizes the warrants outstanding as of March 31, 2009:

	Warrants outstanding		Weighted Average Exercise Price		Aggregate Intrinsic Value
Outstanding, December 31, 2008		50,000	$	5	$	-
Granted		-	$	-	$	-
Forfeited/Canceled		-	$	-		-
Exercised		-		-		-
Outstanding, March 31, 2009		50,000	$	5	$	-

The weighted average remaining contractual life of warrants outstanding is 3 years as of March 31, 2009.

13. Current vulnerability due to certain concentrations

BJTY and AMLF’s operations are all carried out in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environments in the PRC, and by the general state of the PRC's economy.

The Company’s operations in the PRC are subject to specific considerations and significant risks not typically associated with companies in the North America and Western Europe. These include risks associated with, among others, the political, economic and legal environments and foreign currency exchange. The Company's results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things.

Major customers and major vendors

One major customer accounted for 76% of the net revenue for the three months ended March 31, 2009. The Company had $791,680, accounts receivable from this customer as of March 31, 2009. One major customer accounted 76% of the net revenue for the three months ended March 31, 2008. The company had $1,620,009 accounts receivable from the customer as of March 31, 2008.

A majority of our customers ultimately sell our products to users in Europe which subjects us to a substantial risk of an economic downturn to Europe.

Our President and Chief Executive Officer and a Director, and the Secretary of the Company and a Director own 35% and 21.6%, respectively of a company now known as Beijing Sande Technology (Holding) Co., Ltd. (“Beijing Sande”) which is a Chinese Corporation which, in turn, owns approximately 20% of Beijing Micro Matic Machinery, Ltd, which is the 76% customer referred to above. The controlling interest of approximately 80% of Beijing Micro Matic Machinery, Ltd. is owned by Denmark Micro Matic International SA, (“Denmark Micro”) an entity registered in Denmark.

Three vendors provided 74% of the Company’s purchase of raw materials for the three months ended March 31, 2009. The Company had $550,405 accounts payable to those vendors as of March 31, 2009. Two vendors provided 76% of the company’s purchase of raw materials for the three months ended March 31, 2008. The company had $690,301 accounts payable to those vendors as of March 31, 2008.

The Company extends credit to its customers based upon its assessment of their credit worthiness and generally does not require collateral. Credit losses have not been significant.

AMERICAN METAL & TECHNOLOGY, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

14. Commitments

Consulting agreements:

On March 15, 2008, the Company signed a letter of engagement with CCG Investor Relations Partners LLC. According to the terms of the agreement, CCG agreed to assist the company in the execution of its investor relations strategy. The agreement was for a twelve-month period and the Company agreed to pay $7,000 per month to CCG and issue warrants to purchase 50,000 shares of the Company's common stock at an exercise price of $5 per share. These warrants were recorded at the fair value of $100,796 based on 70% volatility, 4.12% discount rate and 0% annual rate of quarterly dividends. The Company has been expensing the fair value of these warrants over the term of the agreement. As of September 1, 2008, we terminated our agreement with CCG Investor Relations Partners LLC.

During the three months ended March 31, 2009, the Company expensed $20,435 and deferred $0 in the consolidated financial statements.

15. Minority interest

16. Entity Held for Disposal

As a result, Lighting Power Global Limited is reported as an entity held for disposal in the accompanying financials.

The components of loss from operations related to the entity held for disposal for the three months ended March 31, 2009 is shown below:

		2009
Net sales	$	-

Cost of sales		-

Gross profit		-

Operating expenses
Operating and administrative expenses		68,682
Total operating expenses		68,682

Loss from operations		(68,682	)

Non-operating expenses
Other expense		149

Net Loss before income tax		(68,831	)

Provision for Income tax		-

Net loss from entity held for disposal	$	(68,831	)

AMERICAN METAL & TECHNOLOGY, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

16. Entity Held for Disposal - continued

Assets and liabilities for the entity held for disposal as of March 31, 2009 and December 31, 2008 are as follows:

	March 31, 2009		December 31, 2008
Assets
Cash and cash equivalents	$	-	$	22,901
Account receivable, net		-		46,575
Total Current assets		-		69,476

Liabilities
Other payable		-		645
Total Liabilities		-		645

Net Asset Held for Disposal	$	-	$	68,831

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION OR PLAN OF OPERATION .

The following discussion and analysis provides information which we believe is relevant to an assessment and understanding of our results of operations and financial condition. This discussion should be read in conjunction with the financial statements and notes thereto appearing elsewhere in this Form 10-Q.

Statements in this Form 10-Q which are not statements of historical or current fact constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause our actual results to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements that explicitly describe such risks and uncertainties, readers are urged to consider statements labeled with the terms "believes," "belief," "intends," "anticipates" or "plans" to be uncertain and forward-looking. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in our reports filed with the Securities and Exchange Commission.

Critical Accounting Policies and Estimates

The preparation of financial statements and related disclosures in conformity with U.S. generally accepted accounting principles and the Company's discussion and analysis of its financial condition and operating results require the Company's management to make judgments, assumptions, and estimates that affect the amounts reported in its consolidated financial statements and accompanying notes. Note 2 "Summary of Significant Accounting Policies" of Notes to Consolidated Financial Statements in this Form 10-Q describes the significant accounting policies and methods used in the preparation of the Company's consolidated financial statements. Management bases its estimates on historical experience and on various other assumptions it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ from these estimates and such differences may be material.

Management believes the Company's critical accounting policies and estimates are those related to revenue recognition, allowance for doubtful accounts, inventory valuation, impairment of long-lived assets, foreign currency translation and income taxes. Management considers these critical policies because they are both important to the portrayal of the Company's financial condition and operating results, and they require management to make judgments and estimates about inherently uncertain matters. The Company's senior management has reviewed these critical accounting policies and related disclosures with the Company's Board of Directors.

Revenue recognition

Allowance for doubtful accounts

The Company's policy is to maintain reserves for potential credit losses for accounts receivable. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves. As of March 31, 2009, the Company had net accounts receivable of $882,600, net of allowance of $197,119.

Inventory valuation

Inventories are valued at the lower of cost or market value using weighted average method. Management compares the cost of inventory with the market value and an allowance is made for writing down the inventory to its market value, if lower.

Impairment of long-lived assets

The Company applies the provisions of Statement of Financial Accounting Standard No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets" ( "FAS No. 144" ), issued by the Financial Accounting Standards Board ( "FASB" ). FAS No. 144 requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through the estimated undiscounted cash flows expected to result from the use and eventual disposition of the assets. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value.

The Company tests long-lived assets, including property, plant and equipment and intangible assets subject to periodic amortization, for recoverability at least annually or more frequently upon the occurrence of an event or when circumstances indicate that the net carrying amount is greater than its fair value. Assets are grouped and evaluated at the lowest level for their identifiable cash flows that are largely independent of the cash flows of other groups of assets. The Company considers historical performance and future estimated results in its evaluation of potential impairment and then compares the carrying amount of the asset to the future estimated cash flows expected to result from the use of the asset. If the carrying amount of the asset exceeds estimated expected undiscounted future cash flows, the Company measures the amount of impairment by comparing the carrying amount of the asset to its fair value. The estimation of fair value is generally measured by discounting expected future cash flows as the rate the Company utilizes to evaluate potential investments. The Company estimates fair value based on the information available in making whatever estimates, judgments and projections are considered necessary. There was no impairment of long-lived assets for the three months ended March 31, 2009 and March 31, 2008.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION OR PLAN OF OPERATION . - continued

Foreign currency translation

Income taxes

The Company utilizes SFAS No. 109, "Accounting for Income Taxes," which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. At March 31, 2009 and 2008, there was no significant book to tax differences.

RESULTS OF OPERATIONS

We design and manufacture high-precision casting and machined parts based on blueprints supplied by our customers. To set us apart from competition, we streamlined production cycle by providing a one stop solution to include all three integral processes in making high precision parts, which are molding design and fabrication, high precision investment casting and CNC machining process. Our products are almost exclusively component parts for use in final products, which are either assembled or manufactured outside China or are manufactured and assembled in China and exported to foreign markets. Our primary focus during 2008 has been to increase demand for our castings and machined parts outside China, and we experienced significant growth in existing and new markets with existing and new customers. During the three months ended March 31, 2009, as further set forth below, due to the worldwide economic slowdown, we recognized that we would experience a reduction in revenue and have been working towards reducing our operating expenses.

To capitalize on the increased demand for our products, we commenced significant capital expansion and capital improvement efforts, utilizing most of the net proceeds received from our equity financing in 2007 to expand and enhance our manufacturing capabilities. By the end of first quarter ended March 31, 2008, we completed the first phase of the expansion plan. Phase one entails a 53,819 square foot manufacturing space, 5 turning centers and 60 CNC Mazak Lathe, 19 of which were delivered and became operational in the three months ended December 31, 2007 and the three months ended March 31, 2008 and the last of which became operational on or about April 7, 2008. All of the new high-precision lathe machines are equal in size and capacity to the Company's existing machines.

In February 2008, we announced that we were planning to invest $3 million to build additional facilities at our Langfang manufacturing center. The new facilities marked the second phase of a multiphase plan to transform the Company’s capacity and capabilities for the foreseeable future. This second phase of our multiphase expansion plan will add two buildings totaling approximately 10,916 square meters, increasing annual capacity for casting products by 50% to 3,600 tons from 2,400 tons.

During the first quarter of fiscal year 2009, we completed construction of the first building, which is a factory with a workspace of 6,654.84 square meters. The factory entails a 4,500 square meter metal casting shop, a 1,000 square meter electronic shop, a 500 square meter mould shop, and a 600 square meter inventory and assorted sets shop. The second building will be a 4,260.84 square meter four level staff dormitory which will accommodate 600 staff members. We have not completed the construction of the second building.

As of December 31, 2008, we had 323 employees working at our factories compared to 256 at the same time in the prior year. Prior to December 2008, the Company operated with three shifts per day for seven days each week. Due to the global economic downturn, in December 2008, the Company reduced shifts to one shift per day. From January 2009 through the date of this Quarterly Report, the Company has been operating one shift per day. As of March 31, 2009, we had 225 full time employees.

As of March 2009, the Company’s sales dropped approximately 80% as compared to December 2008. We experienced an approximate 70% decline in our orders from our European customers. We anticipate that during 2009 we will achieve 40% of the sales which we received during the fiscal year ended December 31, 2008. Depending upon the condition of the economy, we may experience a net loss for 2009.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION OR PLAN OF OPERATION . - continued

RESULTS OF OPERATIONS - continued

Revenue

Revenue for the three months ended March 31, 2009 was $1,282,299 a decrease of 73.81% as compared to $4,896,515 for the three months ended March 31, 2008. Gross profit for the three months ended March 31 2009, was $394,713, or approximately 30.78% of revenues, compared to $1,459,395, or 29.80% of revenues, for the same period in 2008.

The decrease is primarily due to the approximate 70% decline in orders from our European customers.

Expenses from Operations

Total expenses, comprised mostly of general and administrative expenses were approximately $530,241 for the three month period ended March 31, 2009, a net increase of $33,037 compared to $497,204 for the three month period ended March 31, 2008.

The increase in operating expenses for the three months ended March 31, 2009 was mainly due to a prior increase in expenses as a result of increased revenues which the Company experienced in fiscal year 2008. Although revenues have decreased during the first quarter of 2009, the Company did not decrease its operating expenses at the same rate.

Interest Income and Expense

Net interest income for the three months ended March 31, 2009 was $110,474 as compared to net interest income of $5,728 for the three months ended March 31, 2008.

This increase is primarily due to the increase in our cash and cash equivalents.

Other Income (Expense)

Other expense for the three months ended March 31, 2009 was (1,071) as compared to other expense of $1041 for the three months ended March 31, 2008.

Net Income

We had net loss of ($124,468) for the three months ended March 31, 2009 as compared to net income of $1,017,196 for the three months ended March 31, 2008.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION OR PLAN OF OPERATION . - continued

LIQUIDITY AND CAPITAL RESOURCES

Our cash and cash equivalents were $8,477,595 on March 31, 2009. Through the fiscal year ended December 31, 2008, we met our liquidity needs through the revenue derived pursuant to the sale of our precision metal castings and electronic circuit boards manufactured at facilities controlled by our subsidiary corporations in the People’s Republic of China.

Ultimately, our success is dependent upon our ability to generate revenues from the sale of precision metal casting and electronic circuit boards manufactured in facilities located in the People’s Republic of China.

During the three month period ended March 31, 2009, net cash provided by operating activities was $827,801, and net cash provided from financing activities was $4,004.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements.

Material Commitments

None.

Purchase of Significant Equipmen t

None.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

As of March 31, 2009 we have investments of $775 in marketable securities. During the three months ended March 31, 2009, we recorded a loss of ($29,512) on the disposal of such securities. Although these investments represent less than one (1%) percent of our total assets, and, accordingly, do not represent a significant component of our assets, there can be no assurance that there will not be significant fluctuations in the equity markets that reduce the value of these investments including, but not limited to, a total loss of the value of these investments.

We require substantial amounts of raw materials in our operations, including metals and energy. We purchase all of our raw materials from outside sources, and our metals purchases are from a select group of suppliers. As a result, our purchases of metals are concentrated with a few suppliers and any interruptions in their ability to supply these materials could have a material adverse effect on our financial position, results of operations and/or cash flows. The availability and price of raw materials may also be subject to shortages in supply, suppliers’ allocations to other purchasers, and interruptions in production by suppliers (including by reason of labor strikes or work stoppages at our suppliers’ plants). In addition, although we are subject to changes in exchange rates and worldwide price levels of raw materials, our contracts with our suppliers provide that we are not responsible for any 3-5% increase in commodity prices, including price increases resulting from currency fluctuations. Our management has in the past and intends in the future to pass any additional increases in price to our customers.

Our subsidiary corporations in the People’s Republic of China conduct business in the local currency and therefore, we are exposed to foreign currency exchange risk resulting from fluctuations in foreign currencies. This risk could adversely impact our results and financial condition. We believe our current exposure to fluctuations in foreign currency exchange rates is immaterial, based upon the aforementioned provisions with respect to price increases found in our contracts with our suppliers. We have not entered into any foreign currency exchange and option contracts to reduce our exposure to foreign currency exchange risk and the corresponding variability in operating results as a result of fluctuations in foreign currency exchange rates.

ITEM 4T. CONTROLS AND PROCEDURES

Our principal executive and financial officer, after evaluating the effectiveness of our “disclosure controls and procedures” (as defined in the Securities Exchange Act of 1934 Rules 13a-15(e) and 15d-15(e)), has concluded that as of the fiscal quarter ended March 31, 2009 our disclosure controls and procedures were ineffective to provide reasonable assurance that information required to be disclosed by us in the reports that we file or submit under the Exchange Act (i) is accumulated and communicated to our management, including, our Chief Executive Officer and Principal Financial Officer, as appropriate to allow timely decisions regarding required disclosure, and (ii) is recorded, processed, summarized and reported within the time periods specified in the Commission’s rules and forms.

There have been no changes in our internal control over financial reporting identified during the period covered by this report which have materially affected, or were reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

We know of no material, existing or pending legal proceedings against our company, nor are we involved as a plaintiff in any material proceeding or pending litigation. There are no proceedings in which any of our directors, officers or affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our interest.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

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

None.

ITEM 5. OTHER INFORMATION

None.

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

(A) Exhibits

Exhibit Number

Description

31	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32	Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

(B) 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.