10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

[X]	Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
	For the quarterly period ended April 30, 2013
[  ]	Transition Report pursuant to 13 or 15(d) of the Securities Exchange Act of 1934
	For the transition period from __________ to__________
	Commission File Number: 333-145794

Harmonic Energy, Inc.

(Exact name of registrant as specified in its charter)

Nevada	26-0164981
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

3rd Floor, 207 Regent Street, London W1B 3HH, United Kingdom

(Address of principal executive offices)

+44 (0)20 76177300    

(Registrant’s telephone number)

___________________________

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days [X] Yes [ ] No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). [ ] Yes [X] No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.

[ ] Large accelerated filer Accelerated filer	[ ] Non-accelerated filer
[X] Smaller reporting company

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

State the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 63,037,262 as of June 10, 2013.

1

	TABLE OF CONTENTS
		Page
PART I – FINANCIAL INFORMATION
Item 1:	Financial Statements	3
Item 2:	Management’s Discussion and Analysis of Financial Condition and Results of Operations	4
Item 3:	Quantitative and Qualitative Disclosures About Market Risk	7
Item 4:	Controls and Procedures	7
PART II – OTHER INFORMATION
Item 1:	Legal Proceedings	8
Item 1A:	Risk Factors	8
Item 2:	Unregistered Sales of Equity Securities and Use of Proceeds	8
Item 3:	Defaults Upon Senior Securities	8
Item 4:	Mine Safety Disclosures	8
Item 5:	Other Information	8
Item 6:	Exhibits	8

2

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

Our financial statements included in this Form 10-Q are as follows:

F-1	Balance Sheets as of April 30, 2013 and July 31, 2012 (unaudited)
F-2	Statements of Operations for the three and nine months ended April 30, 2013 and 2012 and period from May 1, 2007 (Inception) to April 30, 2013 (unaudited)
F-3	Statements of Cash Flows for the nine months ended April 30, 2013 and 2012 and period from May 1, 2007 (Inception) to April 30, 2013 (unaudited)
F-4	Notes to Financial Statements

These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and the SEC instructions to Form 10-Q. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the interim period ended April 30, 2013 are not necessarily indicative of the results that can be expected for the full year.

3

HARMONIC ENERGY, INC.

(A DEVELOPMENT STAGE COMPANY)

BALANCE SHEETS (unaudited)

AS OF APRIL 30, 2013 AND JULY 31, 2012

	April 30, 2013			July 31, 2012
ASSETS
Current Assets
Cash and equivalents	$	5,751		$	56,446
Prepaid expenses		16,447			13,947
Advance to director		3,365			0
Deferred financing costs, net of amortization of $1,667		3,333			0
Total Current Assets		28,896			70,393
Other Assets
License agreement		525,000			525,000
TOTAL ASSETS	$	553,896		$	595,393
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Current Liabilities
Accrued expenses	$	38,180		$	39,381
Accrued interest		1,000			0
Note payable		50,000			0
License fee payable		175,000			175,000
Total Current Liabilities		264,180			214,381
Long-term Liabilities
License fee payable, net of current portion		175,000			175,000
Total Liabilities		439,180			389,381
Stockholders’ Equity
Common Stock, $.001 par value, 100,000,000 shares authorized, 63,037,262 and shares issued and outstanding (63,037,262 – July 31, 2012)		63,037			63,037
Additional paid-in capital		282,489			282,489
Stock warrants		249,409			249,409
Deficit accumulated during the development stage		(480,219	)		(388,923	)
Total Stockholders’ Equity		114,716			206,012
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	553,896		$	595,393

See accompanying notes to financial statements.

F-1

HARMONIC ENERGY, INC.

(A DEVELOPMENT STAGE COMPANY)

STATEMENTS OF OPERATIONS (unaudited)

FOR THE THREE MONTHS AND NINE MONTHS ENDED APRIL 30, 2013 AND 2012

FOR THE PERIOD FROM MAY 1, 2007 (INCEPTION) TO APRIL 30, 2013

	Three months ended April 30, 2013			Three months ended April 30, 2012			Nine months ended April 30, 2013			Nine months ended April 30, 2012			Period from May 1, 2007 (Inception) to April 30, 2013
Revenues	$	—		$	—		$	—		$	—		$	200
General and administrative expenses:
Professional fees		10,328			4,200			28,933			7,700			310,256
Website development		—			—			—			—			9,000
Consulting fees		—			—			43,000			—			204,543
Office and miscellaneous		9,224			6,295			18,363			6,295			39,604
Total general and administrative expenses		19,552			10,495			90,296			13,995			563,403
Loss from operations
Other expenses		(19,552	)		(10,495	)		(90,296	)		(13,995	)		(563,203	)
Gain on settlement of accrued expense		—			—			—			—			86,748
Interest expense		(750	)		(300	)		(1,000	)		(900	)		(3,764	)
Total other income (expense)		(750	)		(300	)		(1,000	)		(900	)		82,984
Net income (loss) for the period	$	(20,302	)	$	(10,795	)	$	(91,296	)	$	(14,895	)	$	(480,219	)
Net loss per share: Basic and diluted	$	0.00		$	0.00		$	0.00		$	0.00
Weighted average shares outstanding: Basic and diluted		63,037,262			62,370,595			63,037,262			203,203,928

See accompanying notes to financial statements.

F-2

HARMONIC ENERGY, INC.

(A DEVELOPMENT STAGE COMPANY)

STATEMENTS OF CASH FLOWS (unaudited)

FOR THE NINE MONTHS ENDED APRIL 30, 2013 AND 2012

FOR THE PERIOD FROM MAY 1, 2007 (INCEPTION) TO APRIL 30, 2013

	Nine months ended April 30, 2013			Nine months ended April 30, 2012			Period from May 1, 2007 (Inception) to April 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss for the period	$	(91,296	)	$	(14,895	)	$	(480,219	)
Change in non-cash working capital items
Gain on settlement of accrued expenses		0			0			(86,748	)
Changes in assets and liabilities:
(Increase) in prepaid expenses		(2,500	)		0			(16,447	)
Increase (decrease) in accrued expenses		(201	)		4,499			125,928
Increase in accrued interest – related party		0			900			2,764
Net Cash Used in Operating Activities		(93,997	)		(9,496	)		(454,722	)
CASH FLOWS FROM INVESTING ACTIVITIES
(Increase) in advance to director		(3,365	)		0			(3,365	)
Acquisition of license agreement		0			(175,000	)		(175,000	)
Net Cash Used in Investing Activities		(3,365	)		(175,000	)		(178,365	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock and stock warrants		0			500,000			581,225
Proceeds from note payable		50,000			0			50,000
Deferred financing costs		(3,333	)		0			(3,333	)
Offering costs		0			(60,000	)		(68,491	)
Proceeds from note payable – related party		0			0			79,437
Net Cash Provided by Financing Activities		46,667			440,000			638,838
NET INCREASE (DECREASE) IN CASH		(50,695	)		255,504			5,751
Cash, beginning of period		56,446			0			0
Cash, end of period	$	5,751		$	255,504		$	5,751
SUPPLEMENTAL CASH FLOW INFORMATION:
Interest paid	$	0		$	0		$	0
Income taxes paid	$	0		$	0		$	0
SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES:
Conversion of note payable – related party and accrued interest to contributed capital	$	0		$	0		$	1,210
Forgiveness of shareholder debt and accrued interest	$	0		$	0		$	80,991
License fee payable issued for acquisition of license agreement	$	0		$	525,000		$	525,000

See accompanying notes to financial statements.

F-3

HARMONIC ENERGY, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO THE FINANCIAL STATEMENTS

APRIL 30, 2013

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Business

Harmonic Energy, Inc. (the Company), formerly known as Aviation Surveillance Systems, Inc. and Fairytale Ventures, Inc., was incorporated in the State of Nevada on May 1, 2007.  The Company is currently developing a new business focused on the disposition and recycling of scrap tires through tire re-manufacturing and carbonization of scrap tire components.  The Company has not realized significant revenues to date and therefore is classified as a development stage company.

Development Stage Company

The accompanying financial statements have been prepared in accordance with generally accepted accounting principles related to development-stage companies. A development-stage company is one in which planned principal operations have not commenced or if its operations have commenced, there has been no significant revenues there from.

Basis of Presentation

The accompanying unaudited interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (“SEC”), and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s Form 10-K filed with the SEC as of and for the period ended July 31, 2012. In the opinion of management, all adjustments necessary for the financial statements to be not misleading for the interim periods presented have been reflected herein.  The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. The Company has adopted a July 31 fiscal year end.

Fair Value of Financial Instruments

The Company’s financial instruments consist of cash and cash equivalents, prepaid expenses, advance to director, accrued expenses, a note payable, and a license fees payable. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements.

Use of Estimates

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

Basic (Loss) per Common Share

Basic (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. There are 666,667 common stock warrants outstanding as of April 30, 2013.

Revenue Recognition

The Company recognizes revenue when products are fully delivered or services have been provided and collection is reasonably assured.

F-4

HARMONIC ENERGY, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO THE FINANCIAL STATEMENTS

APRIL 30, 2013

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Advertising Costs

The Company’s policy regarding advertising is to expense advertising when incurred. The Company has not incurred any advertising expense as of April 30, 2013 and 2012.

Cash and Cash Equivalents

For purposes of the Statement of Cash Flows, the Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents to the extent the funds are not being held for investment purposes.

Reclassifications

Certain accounts and financial statement captions in the prior periods have been reclassified to conform to the current period financial statements.

Income Taxes

Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized.

Stock-Based Compensation

Stock-based compensation is accounted for at fair value in accordance with ASC Topic 718. To date, the Company has not adopted a stock option plan and has not granted any stock options. As of April 30, 2013, the Company has not issued any stock-based payments to its employees.

Recent Accounting Pronouncements

Harmonic Energy does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position or cash flow.

NOTE 2 – PREPAID EXPENSES

Prepaid expenses consisted of $1,515 of prepaid transfer agent services and $12,432 of prepaid legal services as well as $2,500 of site lease deposits.

NOTE 3 – LICENSE AGREEMENT

On March 14, 2012, the Company entered into a License Purchase Agreement with Kouei International, Inc. The Company acquired the exclusive rights in North America and Europe to use the Tyrolysis™ technology owned by Kouei Industries Co., Ltd. of Japan. Kouei International holds these rights under license from Kouei Industries and, pursuant to the agreement, has assigned them to the Company. The Tyrolysis™ technology is a comprehensive ‘closed-loop’ solution for the management of scrap tires, which allows for all scrap tires to be either re-manufactured into new tires or reduced, through a carbonization process, into marketable chemical products such as diesel fuel, carbon black and syn-gas.

F-5

HARMONIC ENERGY, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO THE FINANCIAL STATEMENTS

APRIL 30, 2013

NOTE 3 – LICENSE AGREEMENT (CONTINUED)

Under the terms of the agreement, the Company is required to pay a total of $525,000 of which $175,000 was due within 90 days of the closing of the agreement (which has been paid), as well as $175,000 due 90 days after the first payment and $175,000 due 90 days after the second payment has been made. The balance due on the license fee payable was $350,000 as of April 30, 2013.

During the period ended April 30, 2013, Kouei Industries agreed to extend the second payment due date to June 30, 2013 and the third payment due date to September 30, 2013. All other terms of the agreement remain the same.

In addition, the Company is to pay a royalty of 3% of all revenues in respect of gross sales for a period of 5 years, and a royalty of $2.50 per remanufactured passenger tire and a royalty of $3.00 per remanufactured light truck and truck tire at the end of each month for a period of 5 years. There have been no revenues generated from the license agreement as of April 30, 2013.

NOTE 4 – ACCRUED EXPENSES

Accrued expenses consisted of the following as of April 30, 2013 and July 31, 2012:

	2013		2012
Accrued legal fees	$	2,680	$	2,681
Accrued accounting and audit fees		5,500		6,700
Accrued filing fees		0		0
Accrued consulting fees		30,000		30,000
Total Accrued Expenses	$	38,180	$	39,381

NOTE 5 – LOAN PAYABLE – RELATED PARTY

On June 14, 2010, the Company signed a promissory note for $20,000 with an officer.  The loan was due on June 14, 2011, bears 6% interest and is unsecured. The terms of the notes were revised to adjust maturity to due on demand during the year ended July 31, 2011. Interest expense on this loan was $1,200 for the years ended July 31, 2012 and 2011. During the year ended July 31, 2012, the shareholder forgave the balance of the loan and all accrued interest. The forgiveness of debt of $22,554 was recorded as contributed capital.

In association with the change in control during the year ended July 31, 2013, the selling shareholders paid certain legal and accounting expenses on behalf of the company. A total of $58,437 was paid by the shareholder and has been recorded as contributed capital.

NOTE 6 – ADVANCE TO DIRECTOR

Advances to director are non-interest bearing and have no specified terms of repayment. The advance was repaid in full in May 2013.

F-6

HARMONIC ENERGY, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO THE FINANCIAL STATEMENTS

APRIL 30, 2013

NOTE 7 – NOTE PAYABLE

On January 9, 2013, the Company signed a promissory note for $50,000. The loan is due on January 9, 2014, bears interest at 8% and is unsecured.

Finance costs related to the issuance of the note in the amount of $5,000 have been deferred and are being amortized over the term of the note payable.

NOTE 8 – CAPITAL STOCK

The Company has 90,000,000 shares of $0.001 par value common stock authorized.

The Company has 10,000,000 shares of $0.001 par value preferred stock authorized.

On May 14, 2007, the Company received $4,000 from its founders for 58,994,015 shares of its common stock. On June 22, 2007, the Company completed an unregistered private offering under the Securities Act of 1933, as amended, relying upon the exemption from registration afforded by Rule 504 of Regulation D promulgated there under.  The Company sold 23,450,110 shares of its $0.001 par value common stock at a price of $0.004 per share for $11,925 in cash.

On July 21, 2008, the Company’s shares of common stock were forward split on the basis of 1.84356289 shares for 1.

On May 1, 2009, the Company’s shares of common stock were forward split on the basis of 1.6 shares for 1.

On March 15, 2010, the Company sold 191,176,470 shares of common stock for total cash proceeds of $65,000.

On November 3, 2011, a shareholder of the company voluntarily returned 1,250,000 shares of common stock to treasury for cancellation.

On February 22, 2012, a shareholder of the company voluntarily returned 210,000,000 shares of common stock to treasury for cancellation

On March 12, 2012, the Company the Company’s shares of common stock were forward split on the basis of 5 shares for 1. All share and per share data in the accompanying financial statements and footnotes has been adjusted retrospectively for the effects of the stock split.

On March 27, 2012, the Company received subscription proceeds of $500,000 related to a subscription agreement for 666,667 shares of common stock and common stock warrants $0.75 per unit. The common stock warrants were valued using the Black-Scholes valuation method. The valuation was made using the following assumptions and the proceeds were allocated based on the fair value of the common stock and common stock warrants:

Stock price at grant date	$	1.00
Exercise price	$	1.12
Term		4 years
Risk-free interest rate		0.37	%
Volatility		284	%

F-7

HARMONIC ENERGY, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO THE FINANCIAL STATEMENTS

APRIL 30, 2013

NOTE 8 – CAPITAL STOCK (CONTINUED)

As of April 30, 2013, the Company had 63,037,262 shares of common stock issued and outstanding.

There are no shares of preferred stock issued and outstanding as of April 30, 2013.

NOTE 9 – COMMITMENTS AND CONTINGENCIES

Harmonic Energy neither owns nor leases any real or personal property. An officer has provided office services without charge. There is no obligation for this arrangement to continue. Such costs are immaterial to the financial statements and accordingly are not reflected herein. The officers and directors are involved in other business activities and most likely will become involved in other business activities in the future.

NOTE 10 – GOING CONCERN

The accompanying financial statements have been prepared in conformity with generally accepted accounting principle, which contemplate continuation of the Company as a going concern.  However, the Company has an accumulated deficit of $480,219 as of April 30, 2013.  The Company currently has a working capital deficit, and has not completed its efforts to establish a stabilized source of revenues sufficient to cover operating costs over an extended period of time.

Management anticipates that the Company will be dependent, for the near future, on additional investment capital to fund operating expenses The Company intends to position itself so that it may be able to raise additional funds through the capital markets. In light of management’s efforts, there are no assurances that the Company will be successful in this or any of its endeavors or become financially viable and continue as a going concern.

NOTE 11 – INCOME TAXES

As of April 30, 2013, the Company had net operating loss carry forwards of approximately $480,219 that may be available to reduce future years’ taxable income in various amounts through 20321. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards.

The provision for Federal income tax consists of the following for the nine months ended April 30, 2013 and 2012:

	2013			2012
Federal income tax benefits attributable to:
Current operations	$	31,041		$	5,064
Less: valuation allowance		(31,041	)		(5,064	)
Net provision for Federal income taxes	$	0		$	0

F-8

HARMONIC ENERGY, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO THE FINANCIAL STATEMENTS

APRIL 30, 2013

NOTE 11 – INCOME TAXES (CONTINUED)

The cumulative tax effect at the expected rate of 34% of significant items comprising our net deferred tax amount is as follows as of April 30, 2013 and July 31, 2012:

	April 30, 2013			July 31, 2012
Deferred tax asset attributable to:
Net operating loss carryover	$	163,275		$	132,234
Less: valuation allowance		(163,275	)		(132,234	)
Net deferred tax asset	$	0		$	0

Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of $480,219 for Federal income tax reporting purposes are subject to annual limitations. Should another change in ownership occur net operating loss carry forwards may be further limited as to use in future years.

NOTE 12 – SUBSEQUENT EVENTS

In accordance with ASC Topic 855-10, the Company has analyzed its operations subsequent to April 30, 2013 to the date these financial statements were issued, and has determined that it does not have any material subsequent events to disclose in these financial statements other than the events described above.

F-9

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

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.” 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. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which 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.

Company Overview

We are a Nevada corporation, formed May 1, 2007.  We are currently developing a new business which will provide a comprehensive solution for the disposition and recycling of scrap tires through tire re-manufacturing and carbonization of scrap tire components. Tire re-manufacturing is a process that takes high quality used tires, removes the old tread and sidewall markings, and then applies new rubber to the tread and sidewall. The used casing along with the new rubber is vulcanized under high pressure and heat to produce a new tire. This is the same process used by new tire manufacturers except that they make the casing (the most costly part of the tire). Carbonization is a technology that heats tires in an oxygen free environment and turns spent tire casings into diesel fuel, carbon black, steel, and syn-gas.

On March 14, 2012, we entered into a License Purchase Agreement (the “Agreement”) with Kouei International, Inc. (“Kouei International”). Under the Agreement, we have acquired the exclusive rights in North America and Europe to use the Tyrolysis™ technology owned by Kouei Industries Co., Ltd. of Japan (“Kouei Industries”). Kouei International holds these rights under license from Kouei Industries and, pursuant to the Agreement, has assigned them to us. The Tyrolysis™ technology is a comprehensive ‘closed-loop’ solution for the management of scrap tires, which allows for all scrap tires to be either re-manufactured into new tires or reduced, through a carbonization process, into marketable chemical products such as diesel fuel, and steel. The carbon char material will be upgraded to produce a general purpose carbon black that can be used again in the rubber, plastic and asphalt industries. Syn-gas is used for process heat within the system.

Under the Agreement, as currently extended, we have agreed to pay Kouei International a total purchase price of $525,000 as follows:

• $175,000 – due within ninety (90) days of closing (which has been paid)
• $175,000 – due on or before June 30, 2013
• $175,000 – due on or before September 30, 2013

In addition, the Agreement calls for Kouei International to be paid ongoing royalties for the next five (5) years as follows:

• 3% of gross sales
• $2.50 per remanufactured passenger tire
• $3.50 per remanufactured light truck and truck tire

4

The Agreement provides us with full access to Kouei International’s properties, books, records, information, technical drawings, contacts and equipment supplied by Kouei Industries. In addition, Kouei International will be contracted for a two year period to help with the transaction and successful implementation of the technology transfer. During this term, Kouei International may be required to provide its engineering expertise and/or participate in industry technology presentations.

Management is currently evaluating facilities locations in Europe and North America. We plan for our facilities to receive scrap tires and produce both re-manufactured tires and commodity chemicals produced through the Tyrolysis™ carbonization technology. We hope to have 6 to 10 plants operational in Europe and North America within the next 5 years.

Our planned facilities will need to be located near suitable sources of scrap tires and other scrap rubber materials. In preparation for a potential recycling plant to be located in Michigan, we entered into a Tire Feedstock Agreement (the “Agreement”) with Enertech R.D., LLC (“Enertech”) on April 11, 2012. Under the Agreement, we have agreed to purchase all of Enertech’s output of scrap tires and other low-value rubber-based materials (referred to as “Feedstock”) for a term of ten (10) years. We intend to use the Feedstock to supply a planned tire recycling facility. Enertech’s estimated daily output of Feedstock is approximately 200 tons per day, though actual output will fluctuate in response to Enertech’s flow of business operations. The maximum daily output that we are required to accept under the Agreement is 300 tons. If Enertech’s output diminishes to less than 100 tons on each of five successive days, we may rescind the Agreement on 20 days written notice.

The Agreement requires us to pay Enertech a fee of $30 per ton for chipped, two-inch-minus scrap tires which are 90% to 95% steel free. The price per ton will be adjusted annually in accordance with future negotiations between the parties. The Feedstock will be delivered to us at a distance of up to 2 miles from Enertech’s facility in Michigan. We will be required to pay for delivery costs for distances beyond two miles.

The Agreement is conditional upon:

1. Our building and operating a tire recycling facility, located within 2 miles of Enertech’s facility in Michigan, that is capable of processing Enertech’s total Feedstock output, and
2. Our registering with the Michigan Environmental Protection Agency and complying with all permit and license requirements for the tire recycling facility which will accept Enertech’s output of Feedstock.
   

On February 19, 2013, we entered into a Purchase Order (the “Agreement”) with Carbon Black Sales (“CBS”). Under the Agreement, we have agreed to sell to CBS, and CBS has agreed to purchase from us, a minimum of 30,000 tons per year of refined carbon black made from tires during the term of the agreement. The Agreement is conditioned upon our having a tire recycling facility in commercial operation within the next three (3) years. The term of the Agreement is ten years from the date of our initial delivery of product to CBS. The carbon black to be supplied by us under the agreement must meet certain quality standards. The price per-ton for all carbon black sold to CBS under the Agreement will be 60% below the prices established by the Sid Richardson Carbon Ltd. price list for N660 carbon black. The site and specific facility from which the carbon black will be supplied to CBS will be confirmed in the future and prior to our first delivery of product. The Agreement calls for us to supply carbon black from the designated facility exclusively to CBS. CBS has agreed to purchase its carbon black exclusively from our designated facility and may not purchase from another supplier except upon our written consent, which will not be unreasonably withheld. CBS may terminate the Agreement if, for any period of forty-five (45) days after our initial delivery of product, we are unable to produce any additional product. We may terminate the Agreement if CBS is unable to take delivery of product for a period of ten (10) consecutive days.

Management estimates that approximately $50 million in new equity will be required in order to procure the necessary equipment, facilities, and supplies for our planned business and to commence our planned tire recycling operations. We currently do not have any firm arrangements for equity or debt financing and we may not be able to obtain financing when required, in the amount necessary to commence our planned operations, or on terms which are feasible in the opinion of management.

5

Results of operations for the three and nine months ended April 30, 2013 and 2012, and for the period from May 1, 2007 (date of inception) through April 30, 2013.

We have not earned significant revenues since the inception of our business and we earned no revenues during the three and nine months ended April 30, 2013 and 2012.  We are presently in the development stage of our business and we can provide no assurance that we will produce significant revenues or, if revenues are earned, that we will be profitable.

We have incurred net losses in the amount of $480,219 from our inception on May 1, 2007 through the period ending April 30, 2013.  During the three months ended April 30, 2013, we incurred expenses and a net loss of $20,302, compared to expenses and a net loss of $10,795 for the three months ended April 30, 2012. During the nine months ended April 30, 2013, we incurred expenses and a net loss of $91,296, compared to expenses and a net loss of $14,895 for the nine months ended April 30, 2012. Our losses are attributable to our operating expenses combined with a lack of significant revenues during our current stage of development. Our expenses have increased in the three and nine months ended April 30, 2013 primarily as a result of increased consulting and professional fees incurred as we prepare to launch our new tire recycling business.

Prior to the generation of revenues, we expect that our expenses will continue to increase significantly as we progress with the development of our new business.

Liquidity and Capital Resources

As of April 30, 2013, we had current assets of $28,896, consisting of cash in the amount of $5,751, prepaid expenses in the amount of $16,447, deferred financing costs of $3,333, and advances due from a director of $3,365. As of April 30, 2013, we had current liabilities of $264,180, consisting of license fees payable of $175,000, a note payable of $50,000, accrued expenses of $38,180, and accrued interest of $1,000.  Thus, we had a working capital deficit of $235,284 as of April 30, 2013. The largest component of our current liabilities is a $175,000 license fee payable under our License Purchase Agreement with Kouei International. This represents the second of the three installment payments called for under the agreement.

On January 9, 2013, we received financing in the amount of $50,000 under Note issued to Legacy Global Markets. The Note bears interest at a rate of eight percent (8%) per year, with all principal and interest coming due on January 9, 2014.

On May 15, 2012, we raised a total of $500,000 in a private offering of common stock and warrants. Our efforts to secure equity financing for our planned operations is ongoing. We will need additional funding in order to complete our payments under the License Purchase Agreement with Kouei International. We have not established profitable operations and will be dependent upon obtaining financing to pursue a long-term business plan. As discussed above, we will also require substantial new equity financing in the approximate amount of $50 million to successfully pursue the full scope of our planned tire recycling operations. We currently do not have any arrangements for financing and we may not be able to obtain financing when required. For these reasons our auditors stated in their report that they have substantial doubt we will be able to continue as a going concern.

Off Balance Sheet Arrangements

As of April 30, 2013, there were no off balance sheet arrangements.

6

Going Concern

We have negative working capital, have incurred losses since inception, and not yet established a source of revenues. These factors create substantial doubt about our ability to continue as a going concern. The financial statements do not include any adjustment that might be necessary if we are unable to continue as a going concern.

Our ability to continue as a going concern is dependent on generating cash from the sale of our common stock and/or obtaining debt financing and attaining future profitable operations. Management’s plans include selling our equity securities and obtaining debt financing to fund our capital requirement and ongoing operations; however, there can be no assurance we will be successful in these efforts.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

A smaller reporting company is not required to provide the information required by this Item.

Item 4. Controls and Procedures

We carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of April 30, 2013. This evaluation was carried out under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, Jamie Mann. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of April 30, 2013, our disclosure controls and procedures are not effective. There have been no changes in our internal controls over financial reporting during the quarter ended April 30, 2013.

Management determined that the material weaknesses that resulted in controls being ineffective are primarily due to lack of resources and number of employees. Material weaknesses exist in the segregation of duties required for effective controls and various reconciliation and control procedures not regularly performed due to the lack of staff and resources.

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act are recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.

Limitations on the Effectiveness of Internal Controls

Our management does not expect that our disclosure controls and procedures or our internal control over financial reporting will necessarily prevent all fraud and material error.   Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the internal control. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, control may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate.

7

PART II – OTHER INFORMATION

Item 1. Legal Proceedings

We are not a party to any pending legal proceeding. We are not aware of any pending legal proceeding to which any of our officers, directors, or any beneficial holders of 5% or more of our voting securities are adverse to us or have a material interest adverse to us.

Item 1A: Risk Factors

A smaller reporting company is not required to provide the information required by this Item.

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

None.

Item 3. Defaults upon Senior Securities

None

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

1. On May 28, 2013, our board of directors and majority of our shareholders approved our 2013 Stock Option Plan. Under our 2013 Stock Option Plan, the maximum aggregate number of shares of our common stock that may be optioned and sold under the Plan is equal to ten percent (10%) of our issued and outstanding common stock.

2. Also on May 28, 2013, we entered into a Business Consulting Agreement with Rene Berlinger. Under the Agreement, the consultant will assist us with general business development, sales and marketing for our products, and development of potential sites for our planned facilities, including identifying locations suitable for grants applicable to our business and sites with suitable proximity to potential sources of feedstock. The consultant will be compensated under the Agreement by the issuance of 4 million shares of our common stock registered on Form S-8. The term of the Agreement is one year. The Agreement supersedes and replaces in its entirety our former Consulting Agreement with Seahorse Investments, Ltd., of which the consultant is a principal. The foregoing is a summary of the material terms of the Business Consulting Agreement, and not a complete description of all of its provisions. The Agreement should be reviewed in its entirety for further information.

Item 6. Exhibits

Exhibit Number	Description of Exhibit
4.1	2013 Stock Option Plan
10.1	Business Consulting Agreement with Rene Berlinger
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

8

SIGNATURES

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

	Harmonic Energy, Inc.
Date:	June 11, 2013
By:	/s/ Jamie Mann
Title:	Jamie Mann, Chief Executive Officer

9

EX-4.1

2013 STOCK OPTION PLAN OF

Harmonic Energy, Inc.

A Nevada Corporation

May 28, 2013

STOCK OPTION PLAN OF

Harmonic Energy, Inc.

TABLE OF CONTENTS

	Page No.
PURPOSE OF THE PLAN	1
TYPES OF STOCK OPTIONS	1
DEFINITIONS	1
ADMINISTRATION OF THE PLAN	2
GRANT OF OPTIONS	3
STOCK SUBJECT TO PLAN	4
TERMS AND CONDITIONS OF OPTIONS	4
TERMINATION OR AMENDMENT OF THE PLAN	9
INDEMNIFICATION	9
EFFECTIVE DATE AND TERM OF THE PLAN	10
MISCELLANEOUS	10

STOCK OPTION PLAN OF

Harmonic Energy, Inc.

A Nevada Corporation

1. PURPOSE OF THE PLAN

The purpose of this Plan is to strengthen Harmonic Energy, Inc. (hereinafter the “Company”) by providing incentive stock options as a means to attract, retain and motivate key corporate personnel, through ownership of stock of the Company, and to attract individuals of outstanding ability to render services to and enter the employment of the Company or its subsidiaries.

2. TYPES OF STOCK OPTIONS

There shall be two types of Stock Options (referred to herein as "Options" without distinction between such different types) that may be granted under this Plan: (1) Options intended to qualify as Incentive Stock Options under Section 422 of the Internal Revenue Code (“Qualified Stock Options”), and (2) Options not specifically authorized or qualified for favorable income tax treatment under the Internal Revenue Code (“Non-Qualified Stock Options”).

3. DEFINITIONS

The following definitions are applicable to the Plan:

(1) Board. The Board of Directors of the Company.

(2) Code. The Internal Revenue Code of 1986, as amended from time to time.

(3) Common Stock. The shares of Common Stock of the Company.

(4) Company. Harmonic Energy, Inc., a Nevada corporation.

(5) Consultant. An individual or entity that renders professional services to the Company as an independent contractor and is not an employee or under the direct supervision and control of the Company.

(6) Disabled or Disability. For the purposes of Section 7, a disability of the type defined in Section 22(e)(3) of the Code. The determination of whether an individual is Disabled or has a Disability is determined under procedures established by the Plan Administrator for purposes of the Plan.

(7) Fair Market Value. For purposes of the Plan, the “fair market value" per share of Common Stock of the Company at any date shall be: (a) if the Common Stock is listed on an established stock exchange or exchanges or the NASDAQ National Market, the closing price per share on the last trading day immediately preceding such date on the principal exchange on which it is traded or as reported by NASDAQ; or (b) if the Common Stock is not then listed on an exchange or the NASDAQ National Market, but is quoted on the NASDAQ Small Cap Market, the NASDAQ electronic bulletin board or the National Quotation Bureau pink sheets, the average of the closing bid and asked prices per share for the Common Stock as quoted by NASDAQ or the National Quotation Bureau, as the case may be, on the last trading day immediately preceding such date; or (c) if the Common Stock is not then listed on an exchange or the NASDAQ National Market, or quoted by NASDAQ or the National Quotation Bureau, an amount determined in good faith by the Plan Administrator.

1

(8) Incentive Stock Option. Any Stock Option intended to be and designated as an "incentive stock option" within the meaning of Section 422 of the Code.

(9) Non-Qualified Stock Option. Any Stock Option that is not an Incentive Stock Option.

(10) Optionee. The recipient of a Stock Option.

(11) Plan Administrator. The board or the Committee designated by the Board pursuant to Section 4 to administer and interpret the terms of the Plan.

(12) Stock Option. Any option to purchase shares of Common Stock granted pursuant to Section 7.

4. ADMINISTRATION OF THE PLAN

This Plan shall be administered by the Board of Directors or by a Compensation Committee (hereinafter the “Committee”) composed of members selected by, and serving at the pleasure of, the Board of Directors (the “Plan Administrator”). Subject to the provisions of the Plan, the Plan Administrator shall have authority to construe and interpret the Plan, to promulgate, amend, and rescind rules and regulations relating to its administration, to select, from time to time, among the eligible employees and non-employee consultants (as determined pursuant to Section 5) of the Company and its subsidiaries those employees and consultants to whom Stock Options will be granted, to determine the duration and manner of the grant of the Options, to determine the exercise price, the number of shares and other terms covered by the Stock Options, to determine the duration and purpose of leaves of absence which may be granted to Stock Option holders without constituting termination of their employment for purposes of the Plan, and to make all of the determinations necessary or advisable for administration of the Plan. The interpretation and construction by the Plan Administrator of any provision of the Plan, or of any agreement issued and executed under the Plan, shall be final and binding upon all parties. No member of the Committee or Board shall be liable for any action or determination undertaken or made in good faith with respect to the Plan or any agreement executed pursuant to the Plan.

If a Committee is established, all of the members of the Committee shall be persons who, in the opinion of counsel to the Company, are outside directors and "non-employee directors" within the meaning of Rule 16b-3(b)(3)(i) promulgated by the Securities and Exchange Commission. From time to time, the Board may increase or decrease the size of the Committee, and add additional members to, or remove members from, the Committee. The Committee shall act pursuant to a majority vote, or the written consent of a majority of its members, and minutes shall be kept of all of its meetings and copies thereof shall be provided to the Board. Subject to the provisions of the Plan and the directions of the Board, the Committee may establish and follow such rules and regulations for the conduct of its business as it may deem advisable.

At the option of the Board, the entire Board of Directors of the Company may act as the Plan Administrator during such periods of time as all members of the Board are “outside directors” as defined in Treas. Regs. §1.162-27(e)(3), except that this requirement shall not apply during any period of time prior to the date the Company's Common Stock becomes registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended.

2

5. GRANT OF OPTIONS

The Company is hereby authorized to grant Incentive Stock Options as defined in section 422 of the Code to any employee or director (including any officer or director who is an employee) of the Company, or of any of its subsidiaries; provided, however, that no person who owns stock possessing more than 10% of the total combined voting power of all classes of stock of the Company, or any of its parent or subsidiary corporations, shall be eligible to receive an Incentive Stock Option under the Plan unless at the time such Incentive Stock Option is granted the Option price is at least 110% of the fair market value of the shares subject to the Option, and such Option by its terms is not exercisable after the expiration of five years from the date such Option is granted.

An employee may receive more than one Option under the Plan. Non-Employee Directors shall be eligible to receive Non-Qualified Stock Options in the discretion of the Plan Administrator. In addition, Non-Qualified Stock Options may be granted to employees, officers, directors and consultants who are selected by the Plan Administrator.

3

6. STOCK SUBJECT TO PLAN

The stock available for grant of Options under the Plan shall be shares of the Company's authorized but unissued, or reacquired, Common Stock. Subject to adjustment as provided herein, the maximum aggregate number of shares of the Company’s common stock that may be optioned and sold under the Plan is ten percent (10%) of the issued and outstanding shares of the Company’s Common Stock on the date this Plan is adopted by the Company’s Board of Directors. The maximum aggregate number of shares of the Company’s Common Stock that may be optioned and sold under the Plan will be increased effective the first day of each of the Company’s fiscal quarters, by an amount equal to the lesser of:

(1) The number of shares which is equal to 10% of the outstanding shares of the Common Stock on the first day of the applicable fiscal quarter, less the number of shares of Common Stock which may be optioned and sold under the Plan prior to the first day of the applicable fiscal quarter; and

(2) a lesser number of shares of Common Stock determined by the board of directors of the Company.

The maximum number of shares for which an Option may be granted to any Optionee during any calendar year shall not exceed three percent (3%) of the issued and outstanding common shares of the Company. In the event that any outstanding Option under the Plan for any reason expires or is terminated, the shares of Common Stock allocable to the unexercised portion of the Option shall again be available for Options under the Plan as if no Option had been granted with regard to such shares.

7. TERMS AND CONDITIONS OF OPTIONS

Options granted under the Plan shall be evidenced by agreements (which need not be identical) in such form and containing such provisions that are consistent with the Plan as the Plan Administrator shall from time to time approve. Such agreements may incorporate all or any of the terms hereof by reference and shall comply with and be subject to the following terms and conditions:

(1) Number of Shares. Each Option agreement shall specify the number of shares subject to the Option.

(2) Option Price. The purchase price for the shares subject to any Option shall be determined by the Plan Administrator at the time of the grant, but shall not be less than 85% of Fair Market Value per share. Anything to the contrary notwithstanding, the purchase price for the shares subject to any Incentive Stock Option shall not be less than 100% of the Fair Market Value of the shares of Common Stock of the Company on the date the Stock Option is granted. In the case of any Incentive Stock Option granted to an employee who owns stock possessing more than 10% of the total combined voting power of all classes of stock of the Company, or any of its parent or subsidiary corporations, the Option price shall not be less than 110% of the Fair Market Value per share of the Common Stock of the Company on the date the Option is granted. For purposes of determining the stock ownership of an employee, the attribution rules of Section 424(d) of the Code shall apply.

4

(3) Notice and Payment. Any exercisable portion of a Stock Option may be exercised only by: (a) delivery of a written notice to the Company prior to the time when such Stock Option becomes unexercisable herein, stating the number of shares bring purchased and complying with all applicable rules established by the Plan Administrator; (b) payment in full of the exercise price of such Option by, as applicable, delivery of: (i) cash or check for an amount equal to the aggregate Stock Option exercise price for the number of shares being purchased, (ii) in the discretion of the Plan Administrator, upon such terms as the Plan Administrator shall approve, a copy of instructions to a broker directing such broker to sell the Common Stock for which such Option is exercised, and to remit to the Company the aggregate exercise price of such Stock Option (a “cashless exercise”), or (iii) in the discretion of the Plan Administrator, upon such terms as the Plan Administrator shall approve, shares of the Company's Common Stock owned by the Optionee, duly endorsed for transfer to the Company, with a Fair Market Value on the date of delivery equal to the aggregate purchase price of the shares with respect to which such Stock Option or portion is thereby exercised (a "stock-for-stock exercise"); (c) payment of the amount of tax required to be withheld (if any) by the Company, or any parent or subsidiary corporation as a result of the exercise of a Stock Option. At the discretion of the Plan Administrator, upon such terms as the Plan Administrator shall approve, the Optionee may pay all or a portion of the tax withholding by: (i) cash or check payable to the Company, (ii) a cashless exercise, (iii) a stock-for-stock exercise, or (iv) a combination of one or more of the foregoing payment methods; and (d) delivery of a written notice to the Company requesting that the Company direct the transfer agent to issue to the Optionee (or his designee) a certificate for the number of shares of Common Stock for which the Option was exercised or, in the case of a cashless exercise, for any shares that were not sold in the cashless exercise. Notwithstanding the foregoing, the Company, in its sole discretion, may extend and maintain, or arrange for the extension and maintenance of credit to any Optionee to finance the Optionee's purchase of shares pursuant to the exercise of any Stock Option, on such terms as may be approved by the Plan Administrator, subject to applicable regulations of the Federal Reserve Board and any other laws or regulations in effect at the time such credit is extended.

(4) Terms of Option. No Option shall be exercisable after the expiration of the earliest of: (a) ten years after the date the Option is granted, (b) three months after the date the Optionee's employment with the Company and its subsidiaries terminates, or a Non-Employee Director or Consultant ceases to provide services to the Company, if such termination or cessation is for any reason other than Disability or death, (c) one year after the date the Optionee's employment with the Company, and its subsidiaries, terminates, or a Non-Employee Director or Consultant ceases to provide services to the Company, if such termination or cessation is a result of death or Disability; provided, however, that the Option agreement for any Option may provide for shorter periods in each of the foregoing instances. In the case of an Incentive Stock Option granted to an employee who owns stock possessing more than 10% of the total combined voting power of all classes of stock of the Company, or any of its parent or subsidiary corporations, the term set forth in (a) above shall not be more than five years after the date the Option is granted.

5

(5) Exercise of an Option. No Option shall be exercisable during the lifetime of an Optionee by any person other than the Optionee. Subject to the foregoing, the Plan Administrator shall have the power to set the time or times within which each Option shall vest or be exercisable and to accelerate the time or times of vesting and exercise; provided, however each Option shall provide the right to exercise at the rate of at least 20% per year over five years from the date the Option is granted. Unless otherwise provided by the Plan Administrator, each Option will not be subject to any vesting requirements. To the extent that an Optionee has the right to exercise an Option and purchase shares pursuant hereto, the Option may be exercised from time to time by written notice to the Company, stating the number of shares being purchased and accompanied by payment in full of the exercise price for such shares.

(6) No Transfer of Option. No Option shall be transferable by an Optionee otherwise than by will or the laws of descent and distribution.

(7) Limit on Incentive Stock Option. The aggregate Fair Market Value (determined at the time the Option is granted) of the stock with respect to which an Incentive Stock Option is granted and exercisable for the first time by an Optionee during any calendar year (under all Incentive Stock Option plans of the Company and its subsidiaries) shall not exceed $100,000. To the extent the aggregate Fair Market Value (determined at the time the Stock Option is granted) of the Common Stock with respect to which Incentive Stock Options are exercisable for the first time by an Optionee during any calendar year (under all Incentive Stock Option plans of the Company and any parent or subsidiary corporations) exceeds $100,000, such Stock Options shall be treated as Non-Qualified Stock Options. The determination of which Stock Options shall be treated as Non-Qualified Stock Options shall be made by taking Stock Options into account in the Order in which they were granted.

6

(8) Restriction on Issuance of Shares. The issuance of Options and shares shall be subject to compliance with all of the applicable requirements of law with respect to the issuance and sale of securities, including, without limitation, any required qualification under state securities laws. If an Optionee acquires shares of Common Stock pursuant to the exercise of an Option, the Plan Administrator, in its sole discretion, may require as a condition of issuance of shares covered by the Option that the shares of Common Stock be subject to restrictions on transfer. The Company may place a legend on the share certificates reflecting the fact that they are subject to restrictions on transfer pursuant to the terms of this Section. In addition, the Optionee may be required to execute a buy-sell agreement in favor of the Company or its designee with respect to all or any of the shares so acquired. In such event, the terms of any such agreement shall apply to the optioned shares.

(9) Investment Representation. Any Optionee may be required, as a condition of issuance of shares covered by his or her Option, to represent that the shares to be acquired pursuant to exercise will be acquired for investment and without a view toward distribution thereof, and in such case, the Company may place a legend on the share certificate(s) evidencing the fact that they were acquired for investment and cannot be sold or transferred unless registered under the Securities Act of 1933, as amended, or unless counsel for the Company is satisfied that the circumstances of the proposed transfer do not require such registration.

(10) Rights as a Shareholder or Employee. An Optionee or transferee of an Option shall have no right as a stockholder of the Company with respect to any shares covered by any Option until the date of the issuance of a share certificate for such shares. No adjustment shall be made for dividends (Ordinary or extraordinary, whether cash, securities, or other property), or distributions or other rights for which the record date is prior to the date such share certificate is issued, except as provided in paragraph (13) below. Nothing in the Plan or in any Option agreement shall confer upon any employee any right to continue in the employ of the Company or any of its subsidiaries or interfere in any way with any right of the Company or any subsidiary to terminate the Optionee's employment at any time.

(11) No Fractional Shares. In no event shall the Company be required to issue fractional shares upon the exercise of an Option.

(12) Exercise in the Event of Death. In the event of the death of the Optionee, any Option or unexercised portion thereof granted to the Optionee, to the extent exercisable by him or her on the date of death, may be exercised by the Optionee's personal representatives, heirs, or legatees subject to the provisions of paragraph (4) above.

7

(13) Recapitalization or Reorganization of the Company. Except as otherwise provided herein, appropriate and proportionate adjustments shall be made (1) in the number and class of shares subject to the Plan, (2) to the Option rights granted under the Plan, and (3) in the exercise price of such Option rights, in the event that the number of shares of Common Stock of the Company are increased or decreased as a result of a stock dividend (but only on Common Stock), stock split, reverse stock split, recapitalization, reorganization, merger, consolidation, separation, or like change in the corporate or capital structure of the Company. In the event there shall be any other change in the number or kind of the outstanding shares of Common Stock of the Company, or any stock or other securities into which such common stock shall have been changed, or for which it shall have been exchanged, whether by reason of a complete liquidation of the Company or a merger, reorganization, or consolidation with any other corporation in which the Company is not the surviving corporation, or the Company becomes a wholly-owned subsidiary of another corporation, then if the Plan Administrator shall, in its sole discretion, determine that such change equitably requires an adjustment to shares of Common Stock currently subject to Options under the Plan, or to prices or terms of outstanding Options, such adjustment shall be made in accordance with such determination.

To the extent that the foregoing adjustments relate to stock or securities of the Company, such adjustment shall be made by the Plan Administrator, the determination of which in that respect shall be final, binding, and conclusive. No right to purchase fractional shares shall result from any adjustment of Options pursuant to this Section. In case of any such adjustment, the shares subject to the Option shall he rounded down to the nearest whole share. Notice of any adjustment shall be given by the Company to each Optionee whose Options shall have been so adjusted and such adjustment (whether or not notice is given) shall be effective and binding for all purposes of the Plan.

In the event of a complete liquidation of the Company or a merger, reorganization, or consolidation of the Company with any other corporation in which the Company is not the surviving corporation, or the Company becomes a wholly-owned subsidiary of another corporation, any unexercised Options granted under the Plan shall be deemed cancelled unless the surviving corporation in any such merger, reorganization, or consolidation elects to assume the Options under the Plan or to issue substitute Options in place thereof; provided, however, that notwithstanding the foregoing, if such Options would be cancelled in accordance with the foregoing, the Optionee shall have the right exercisable during a ten-day period ending on the fifth day prior to such liquidation, merger, or consolidation to exercise such Option in whole or in part without regard to any installment exercise provisions in the Option agreement.

8

(14) Modification, Extension and Renewal of Options. Subject to the terms and conditions and within the limitations of the Plan, the Plan Administrator may modify, extend or renew outstanding options granted under the Plan and accept the surrender of outstanding Options (to the extent not theretofore exercised). The Plan Administrator shall not, however, without the approval of the Board, modify any outstanding Incentive Stock Option in any manner that would cause the Option not to qualify as an Incentive Stock Option within the meaning of Section 422 of the Code. Notwithstanding the foregoing, no modification of an Option shall, without the consent of the Optionee, alter or impair any rights of the Optionee under the Option.

(15) Other Provisions. Each Option may contain such other terms, provisions, and conditions not inconsistent with the Plan as may be determined by the Plan Administrator.

8. TERMINATION OR AMENDMENT OF THE PLAN

The Board may at any time terminate or amend the Plan; provided that, without approval of the holders of a majority of the shares of Common Stock of the Company represented and voting at a duly held meeting at which a quorum is present or the written consent of a majority of the outstanding shares of Common Stock, there shall be (except by operation of the provisions of sections (6) or (7)(13) above) no increase in the total number of shares covered by the Plan, no change in the class of persons eligible to receive options granted under the Plan, no reduction in the limits for determination of the minimum exercise price of Options granted under the Plan, and no extension of the limits for determination of the latest date upon which Options may be exercised; and provided further that, without the consent of the Optionee, no amendment may adversely affect any then outstanding Option or any unexercised portion thereof.

9. INDEMNIFICATION

In addition to such other rights of indemnification as they may have as members of the Board Committee that administers the Plan, the members of the Plan Administrator shall be indemnified by the Company against reasonable expense, including attorney's fees, actually and necessarily incurred in connection with the defense of any action, suit or proceeding, or in connection with any appeal therein to which they, or any of them, may be a party by reason of any action taken or failure to act under or in connection with the Plan or any Option granted thereunder, and against any and all amounts paid by them in settlement thereof (provided such settlement is approved by independent legal counsel selected by the Company). In addition, such members shall be indemnified by the Company for any amount paid by them in satisfaction of a judgment in any action, suit, or proceeding, except in relation to matters as to which it shall have been adjudged that such member is liable for negligence or misconduct in the performance of his or her duties, provided however that within sixty (60) days after institution of any such action, suit, or proceeding, the member shall in writing offer the Company the opportunity, at its own expense, to handle and defend the same.

9

10. EFFECTIVE DATE AND TERM OF THE PLAN

This Plan shall become effective on the date of adoption by the Company’s Board of Directors. Unless sooner terminated by the Board in its sole discretion, this Plan will expire five calendar years from the date of its adoption.

11. MISCELLANEOUS

Any dispute arising out of this Plan or any provision hereof, or of any agreement issued or executed under the Plan shall be resolved by the Plan Administrator, and the decision of the Plan Administrator shall be final and binding upon all parties.

IN WITNESS WHEREOF, the Company by its duly authorized officer, has caused this Plan to be executed as of the 28th day of May, 2013.

Harmonic Energy, Inc.

/s/ Jamie Mann

By: Jamie Mann

Its: President and CEO

10

EX-10.1

Business Consulting Agreement

This Business Consulting Agreement (the “Agreement”) is entered into and effective May 28, 2013 by and between:

Rene Berlinger

Trust Company Complex,

Ajeltake Road, Ajeltake

Majuro MH96960 Marshall Islands
(“Consultant”)

And

Harmonic Energy, Inc.
3rd Floor, 207 Regent Street

London, England W1B 3HH

(“Company”)

WITNESSETH

WHEREAS, Consultant provides consultation and advisory services relating to business development and marketing; and

WHEREAS, the Company desires to be assured of the services of the Consultant in order to avail itself to the Consultant’s experience, skills, knowledge and abilities. The Company is therefore willing to engage the Consultant and the Consultant agrees to be engaged upon the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the foregoing, of the mutual promises and covenants set forth herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1. Consulting Services: Effective as of May 28, 2013, the Company hereby engages and Consultant hereby accepts the engagement to become a consultant to the Company and to render such advice, consultation, information and services to the Company including (a) assistance with general business development, sales and marketing for the Company’s products (tires, oil, carbon and steel); (b) assistance with developing potential sites for the Company’s planned facilities, including identifying locations suitable for grants applicable to the Company’s business and sites with suitable proximity to potential sources of feedstock; and (c) such other managerial assistance as the Company shall deem necessary or appropriate for its business.

2. Prior Agreement Superseded. The Consulting Agreement between the Company and Seahorse Investments, Ltd., of which the Consultant is a principal, shall be considered superseded and amended in its entirety by the terms of this Agreement.

3. Payment: In consideration for entering into this agreement, the Company agrees to irrevocably issue to the Consultant 4,000,000 shares of the Company upon the execution of this agreement, to be registered with the Securities and Exchange Commission via an S-8 registration statement. In the previous Consulting Agreement the Consultant was paid US $70,000 for services provided to the Company; however the Company currently owes the consultant US $140,000 which the Company has agreed to convert into 1,750,000 shares at nominal value of $0.08 per share of the Company. Going forward the Company has agreed that the Consultant shall receive 2,250,000 for future consideration of the services provided under this agreement. This agreement supersedes the previous consulting agreement signed March 1^st, 2012 and is an accurate reflection of the services provided by the Consultant.

4. Expenses: The Consultant is responsible for all their travel and other expenses incurred.

1

5. Personnel: Consultant shall be an independent contractor and no personnel utilized by Consultant in providing services hereunder shall be deemed an employee of the Company. Moreover, neither Consultant nor any other such person shall be empowered hereunder to act on behalf of the Company. Consultant shall have the sole and exclusive responsibility and liability for making all reports and contributions, withholdings, payments and taxes to be collected, withheld, made and paid with respect to persons providing services to be performed hereunder on behalf of the Company, whether pursuant to any social security, unemployment insurance, worker’s compensation law or other federal, state or local law now in force and effect hereafter enacted.

6. Term and Termination: The term of this Agreement shall be effective on June 1^st, 2013 and shall continue in effect for a period of one (1) year thereafter. This Agreement may be extended upon agreement by both parties, unless or until the Agreement is terminated. The Company or Consultant may cancel this Agreement on thirty (30) days written notice, at which time no further obligations will be due from either party.

7. Non-Assignability: The rights, obligations, and benefits established by this Agreement shall not be assignable by Consultant. This Agreement shall be binding upon and shall insure to the benefit of the parties and their successors.

8. Confidentiality: Consultant acknowledges and agrees that confidential and valuable information proprietary to and obtained during Consultants’ engagement by , shall not be, directly or indirectly, disclosed without the prior express written consent of , unless and until such information is otherwise known to the public generally through no fault of Consultant. All documents containing confidential information provided to Consultant by the Company shall clearly and conspicuously be marked with the word “Confidential.”

9. Limited Liability: Neither Consultant nor any of his employees, officers or directors shall be liable for consequential or incidental damages of any kind to the Company that may arise out of or in connection with any services performed by Consultant hereunder.

10. Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada without giving effect to the conflicts of law principles thereof or actual domicile parties. Any dispute arising out of this Agreement shall be resolved in the courts sited in Clark County, Nevada, to the exclusion of all other venues.

11. Notice: Notice hereunder shall be in writing and shall be deemed to have been given at the time when deposited for mailing with the United States Postal Service enclosed in a registered or certified postpaid envelope addressed to the respective party at the address of such party first above written or at such other address as such party may fix by notice given pursuant to this paragraph.

12. Miscellaneous: No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision and no waiver shall constitute a continuing waiver. No waiver shall be binding unless executed in writing by the party making the waiver. No supplement, modification, or amendment of the Agreement shall be binding unless executed in writing and agreed upon by all parties. The Agreement supersedes all prior understandings, written or oral, and constitutes the entire Agreement between the parties hereto with respect to the subject matter hereof.

13. Counterparts: This Agreement may be executed in counterparts and by facsimile, each of such counterparts so executed will be deemed to be an original and such counterparts together will constitute one and the same instrument and notwithstanding the date of execution will be deemed to bear the first date written above.

2

IN WITNESS WHEREOF, the Company and Consultant have duly executed this Agreement as of the day and year first above written.

Harmonic Energy, Inc.	Rene Berlinger
/s/ Jamie Mann	/s/ Rene Berlinger
By:  Jamie Mann Its:   President and CEO	Consultant

3

EX-31.1

CERTIFICATIONS

I, Jamie Mann, certify that;

1. I have reviewed this quarterly report on Form 10-Q for the quarter ended April 30, 2013 of Harmonic Energy, Inc.;

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

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

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

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

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

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

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

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

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

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

Date: June 11, 2013

/s/ Jamie Mann

By: Jamie Mann

Title: Chief Executive Officer

EX-31.2

CERTIFICATIONS

I, Jamie Mann, certify that;

1. I have reviewed this quarterly report on Form 10-Q for the quarter ended April 30, 2013  of Harmonic Energy, Inc.;

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

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

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

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

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

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

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

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

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

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

Date: June 11, 2013

/s/ Jamie Mann

By: Jamie Mann

Title: Chief Financial Officer

EX-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

In connection with the quarterly Report of Harmonic Energy, Inc (the “Company”) on Form 10-Q for the quarter ended April 30, 2013 filed with the Securities and Exchange Commission (the “Report”), I, Jamie Mann, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the consolidated financial condition of the Company as of the dates presented and the consolidated result of operations of the Company for the periods presented.

By:	/s/ Jamie Mann
Name:	Jamie Mann
Title:	Principal Executive Officer, Principal Financial Officer and Director
Date:	June 11, 2013

This certification has been furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

XML

SUBSEQUENT EVENTS

9 Months Ended

Apr. 30, 2013

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

In accordance with ASC Topic 855-10, the Company has analyzed its operations subsequent to April 30, 2013 to the date these financial statements were issued, and has determined that it does not have any material subsequent events to disclose in these financial statements other than the events described above.

XML

Statements of Operations (USD $)	3 Months Ended		9 Months Ended		72 Months Ended
	Apr. 30, 2013	Apr. 30, 2012	Apr. 30, 2013	Apr. 30, 2012	Apr. 30, 2013
Income Statement [Abstract]
Revenues					$ 200
General and administrative expenses:
Professional fees	10,328	4,200	28,933	7,700	310,256
Website development					9,000
Consulting fees			43,000		204,543
Office and miscellaneous	9,224	6,295	18,363	6,295	39,604
Total general and administrative expenses	19,552	10,495	90,296	13,995	563,403
Other expenses	(19,552)	(10,495)	(90,296)	(13,995)	(563,203)
Gain on settlement of accrued expense					86,748
Interest expense	(750)	(300)	(1,000)	(900)	(3,764)
Total other income (expense)	(750)	(300)	(1,000)	(900)	82,984
Net income (loss) for the period	$ (20,302)	$ (10,795)	$ (91,296)	$ (14,895)	$ (480,219)
Net loss per share: Basic and diluted	$ 0.00	$ 0.00	$ 0.00	$ 0.00
Weighted average shares outstanding: Basic and diluted	63,037,262	62,370,595	63,037,262	203,203,928

XML

LOAN PAYABLE - RELATED PARTY

9 Months Ended

Apr. 30, 2013

Related Party Transactions [Abstract]

LOAN PAYABLE - RELATED PARTY

On June 14, 2010, the Company signed a promissory note for $20,000 with an officer.  The loan was due on June 14, 2011, bears 6% interest and is unsecured. The terms of the notes were revised to adjust maturity to due on demand during the year ended July 31, 2011. Interest expense on this loan was $1,200 for the years ended July 31, 2012 and 2011. During the year ended July 31, 2012, the shareholder forgave the balance of the loan and all accrued interest. The forgiveness of debt of $22,554 was recorded as contributed capital.

In association with the change in control during the year ended July 31, 2013, the selling shareholders paid certain legal and accounting expenses on behalf of the company. A total of $58,437 was paid by the shareholder and has been recorded as contributed capital.

XML

ACCRUED EXPENSES - SCHEDULE OF ACCRUED EXPENSES (Details) (USD $)	Apr. 30, 2013	Jul. 31, 2012
Notes to Financial Statements
Accrued legal fees	$ 2,680	$ 2,681
Accrued accounting and audit fees	5,500	6,700
Accrued filing fees	0	0
Accrued consulting fees	30,000	30,000
Total Accrued Expenses	$ 38,180	$ 39,381

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Apr. 30, 2013

Accounting Policies [Abstract]

Nature of Business

Nature of Business

Harmonic Energy, Inc. (the Company), formerly known as Aviation Surveillance Systems, Inc. and Fairytale Ventures, Inc., was incorporated in the State of Nevada on May 1, 2007.  The Company is currently developing a new business focused on the disposition and recycling of scrap tires through tire re-manufacturing and carbonization of scrap tire components.  The Company has not realized significant revenues to date and therefore is classified as a development stage company.

Development Stage Company

Development Stage Company

The accompanying financial statements have been prepared in accordance with generally accepted accounting principles related to development-stage companies. A development-stage company is one in which planned principal operations have not commenced or if its operations have commenced, there has been no significant revenues there from.

Basis of Presentation

Basis of Presentation

The accompanying unaudited interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (“SEC”), and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s Form 10-K filed with the SEC as of and for the period ended July 31, 2012. In the opinion of management, all adjustments necessary for the financial statements to be not misleading for the interim periods presented have been reflected herein.  The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. The Company has adopted a July 31 fiscal year end.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

The Company’s financial instruments consist of cash and cash equivalents, prepaid expenses, advance to director, accrued expenses, a note payable, and a license fees payable. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements.

Use of Estimates

Use of Estimates

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

Basic (Loss) per Common Share

Basic (Loss) per Common Share

Basic (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. There are 666,667 common stock warrants outstanding as of April 30, 2013.

Revenue Recognition

Revenue Recognition

The Company recognizes revenue when products are fully delivered or services have been provided and collection is reasonably assured.

Advertising Costs

Advertising Costs

The Company’s policy regarding advertising is to expense advertising when incurred. The Company has not incurred any advertising expense as of April 30, 2013 and 2012.

Cash and Cash Equivalents

Cash and Cash Equivalents

For purposes of the Statement of Cash Flows, the Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents to the extent the funds are not being held for investment purposes.

Reclassifications

Reclassifications

Certain accounts and financial statement captions in the prior periods have been reclassified to conform to the current period financial statements.

Income Taxes

Income Taxes

Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized.

Stock-Based Compensation

Stock-Based Compensation

Stock-based compensation is accounted for at fair value in accordance with ASC Topic 718. To date, the Company has not adopted a stock option plan and has not granted any stock options. As of April 30, 2013, the Company has not issued any stock-based payments to its employees.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Harmonic Energy does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position or cash flow.

XML

NOTE PAYABLE (Details Narrative) (USD $)	Jan. 09, 2013
Notes to Financial Statements
Promissory note payable, prinicpal amount	$ 50,000
Promissory note payable, due date	Jan. 09, 2014
Promissory note payable, interest rate	8.00%
Finance costs	$ 5,000

XML

ADVANCE TO DIRECTOR (Details Narrative)	9 Months Ended
	Apr. 30, 2013
Notes to Financial Statements
Advances to director repayment due	May 01, 2013

XML

INCOME TAXES - DEFERRED TAX ASSET (Details) (USD $)	Apr. 30, 2013	Jul. 31, 2012
Deferred tax asset attributable to:
Net operating loss carryover	$ 163,275	$ 132,234
Less: valuation allowance	(163,275)	(132,234)
Net deferred tax asset	$ 0	$ 0

XML

LOAN PAYABLE - RELATED PARTY (Details Narrative) (USD $)	12 Months Ended
	Jul. 31, 2012	Jul. 31, 2011	Jul. 14, 2010
Related Party Transactions [Abstract]
Promissory note, prinicipal amount			$ 20,000
Promissory note, due date			Jun. 14, 2011
Promissory note, fixed interest rate			6.00%
Promissory note, maturity date			Jul. 31, 2011
Promissory note, interest expense	1,200	1,200
Percentage of amount of loan and accrued interest forgiven	100.00%
Contributed capital pursuant to promissary note forgiveness	22,554
Contributed capital	$ 58,437

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Apr. 30, 2013

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Business

Harmonic Energy, Inc. (the Company), formerly known as Aviation Surveillance Systems, Inc. and Fairytale Ventures, Inc., was incorporated in the State of Nevada on May 1, 2007.  The Company is currently developing a new business focused on the disposition and recycling of scrap tires through tire re-manufacturing and carbonization of scrap tire components.  The Company has not realized significant revenues to date and therefore is classified as a development stage company.

Development Stage Company

The accompanying financial statements have been prepared in accordance with generally accepted accounting principles related to development-stage companies. A development-stage company is one in which planned principal operations have not commenced or if its operations have commenced, there has been no significant revenues there from.

Basis of Presentation

The accompanying unaudited interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (“SEC”), and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s Form 10-K filed with the SEC as of and for the period ended July 31, 2012. In the opinion of management, all adjustments necessary for the financial statements to be not misleading for the interim periods presented have been reflected herein.  The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. The Company has adopted a July 31 fiscal year end.

Fair Value of Financial Instruments

The Company’s financial instruments consist of cash and cash equivalents, prepaid expenses, advance to director, accrued expenses, a note payable, and a license fees payable. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements.

Use of Estimates

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

Basic (Loss) per Common Share

Basic (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. There are 666,667 common stock warrants outstanding as of April 30, 2013.

Revenue Recognition

The Company recognizes revenue when products are fully delivered or services have been provided and collection is reasonably assured.

Advertising Costs

The Company’s policy regarding advertising is to expense advertising when incurred. The Company has not incurred any advertising expense as of April 30, 2013 and 2012.

Cash and Cash Equivalents

For purposes of the Statement of Cash Flows, the Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents to the extent the funds are not being held for investment purposes.

Reclassifications

Certain accounts and financial statement captions in the prior periods have been reclassified to conform to the current period financial statements.

Income Taxes

Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized.

Stock-Based Compensation

Stock-based compensation is accounted for at fair value in accordance with ASC Topic 718. To date, the Company has not adopted a stock option plan and has not granted any stock options. As of April 30, 2013, the Company has not issued any stock-based payments to its employees.

Recent Accounting Pronouncements

Harmonic Energy does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position or cash flow.

XML

LICENSE AGREEMENT

9 Months Ended

Apr. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

LICENSE AGREEMENT

On March 14, 2012, the Company entered into a License Purchase Agreement with Kouei International, Inc. The Company acquired the exclusive rights in North America and Europe to use the Tyrolysis™ technology owned by Kouei Industries Co., Ltd. of Japan. Kouei International holds these rights under license from Kouei Industries and, pursuant to the agreement, has assigned them to the Company. The Tyrolysis™ technology is a comprehensive ‘closed-loop’ solution for the management of scrap tires, which allows for all scrap tires to be either re-manufactured into new tires or reduced, through a carbonization process, into marketable chemical products such as diesel fuel, carbon black and syn-gas.

Under the terms of the agreement, the Company is required to pay a total of $525,000 of which $175,000 was due within 90 days of the closing of the agreement (which has been paid), as well as $175,000 due 90 days after the first payment and $175,000 due 90 days after the second payment has been made. The balance due on the license fee payable was $350,000 as of April 30, 2013.

During the period ended April 30, 2013, Kouei Industries agreed to extend the second payment due date to June 30, 2013 and the third payment due date to September 30, 2013. All other terms of the agreement remain the same.

In addition, the Company is to pay a royalty of 3% of all revenues in respect of gross sales for a period of 5 years, and a royalty of $2.50 per remanufactured passenger tire and a royalty of $3.00 per remanufactured light truck and truck tire at the end of each month for a period of 5 years. There have been no revenues generated from the license agreement as of April 30, 2013.

XML

ADVANCE TO DIRECTOR

9 Months Ended

Apr. 30, 2013

Notes to Financial Statements

ADVANCE TO DIRECTOR

Advances to director are non-interest bearing and have no specified terms of repayment. The advance was repaid in full in May 2013.

XML

ACCRUED EXPENSES

9 Months Ended

Apr. 30, 2013

Notes to Financial Statements

ACCRUED EXPENSES

Accrued expenses consisted of the following as of April 30, 2013 and July 31, 2012:

	2013		2012
Accrued legal fees	$	2,680	$	2,681
Accrued accounting and audit fees		5,500		6,700
Accrued filing fees		0		0
Accrued consulting fees		30,000		30,000
Total Accrued Expenses	$	38,180	$	39,381

XML

CAPITAL STOCK (Details Narrative) (USD $)	Apr. 30, 2013	Jul. 31, 2012	Mar. 27, 2012	Mar. 12, 2012	Feb. 22, 2012	Nov. 03, 2011	Mar. 15, 2010	May 01, 2009	Jul. 21, 2008	Jun. 22, 2007	May 14, 2007
Equity [Abstract]
Common Stock Stock Authorized	90,000,000	90,000,000
Common Stock Par Value Per Share	$ 0.001	$ 0.001
Preferred Stock Stock Authorized	10,000,000
Preferred Stock Par Value Per Share	$ 0.001
Proceeds From Issuance of Common Stock to Founders											$ 4,000
Shares issued to founders											58,994,015
Common Stock Shares Issued For Cash							191,176,470			23,450,110
Common Stock Par Value Per Share										$ 0.001
Common Stock Stated Value Per Share										$ 0.004
Proceeds From Issuance Of Common Stock For Cash							65,000			11,925
Forward Split Ratio									1.84356289:1
Forward Split Ratio 2								1.60:1
Voluntarily return of common stock to treasury for cancellation					210,000,000	1,250,000
Forward Split Ratio 3				5:1
Cash received pursuant to subscription agreement			$ 500,000
Common Stock Shares Issued Pursuant To Subscription Agreement			666,667
Common Stock Warrant Value Per Share			$ 0.75
Common Stock Shares Issued and Outstanding	63,037,262	63,037,262

XML

INCOME TAXES (Details Narrative) (USD $)	9 Months Ended
	Apr. 30, 2013
Income Tax Disclosure [Abstract]
Operating Loss Carryforwards	$ 480,219
Carryforward Expiration Date	Jan. 01, 2032
Effective Income Tax Rate	34.00%

XML

Balance Sheets (Parenthetical) (USD $)	Apr. 30, 2013	Jul. 31, 2012
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	90,000,000	90,000,000
Common stock, issued and outstanding	63,037,262	63,037,262

XML

COMMITMENTS AND CONTINGENCIES

9 Months Ended

Apr. 30, 2013

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

Harmonic Energy neither owns nor leases any real or personal property. An officer has provided office services without charge. There is no obligation for this arrangement to continue. Such costs are immaterial to the financial statements and accordingly are not reflected herein. The officers and directors are involved in other business activities and most likely will become involved in other business activities in the future.

XML

Statements of Cash Flows (USD $)	9 Months Ended		72 Months Ended
	Apr. 30, 2013	Apr. 30, 2012	Apr. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss for the period	$ (91,296)	$ (14,895)	$ (480,219)
Change in non-cash working capital items
Gain on settlement of accrued expenses	0	0	(86,748)
Changes in assets and liabilities:
(Increase) in prepaid expenses	(2,500)	0	(16,447)
Increase (decrease) in accrued expenses	(201)	4,499	125,928
Increase in accrued interest - related party	0	900	2,764
Net Cash Used in Operating Activities	(93,997)	(9,496)	(454,722)
CASH FLOWS FROM INVESTING ACTIVITIES
(Increase) in advance to director	(3,365)	0	(3,365)
Acquisition of license agreement	0	(175,000)	(175,000)
Net Cash Used in Investing Activities	(3,365)	(175,000)	(178,365)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock and stock warrants	0	500,000	581,225
Proceeds from note payable	50,000	0	50,000
Deferred financing costs	(3,333)	0	(3,333)
Offering costs	0	(60,000)	(68,491)
Proceeds from note payable - related party	0	0	79,437
Net Cash Provided by Financing Activities	46,667	440,000	638,838
NET INCREASE (DECREASE) IN CASH	(50,695)	255,504	5,751
Cash, beginning of period	56,446	0	0
Cash, end of period	5,751	255,504	5,751
SUPPLEMENTAL CASH FLOW INFORMATION:
Interest paid	0	0	0
Income taxes paid	0	0	0
SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES:
Conversion of note payable - related party and accrued interest to contributed capital	0	0	1,210
Forgiveness of shareholder debt and accrued interest	0	0	80,991
License fee payable issued for acquisition of license agreement	$ 0	$ 525,000	$ 525,000

XML

Balance Sheets (USD $)	Apr. 30, 2013	Jul. 31, 2012
Current Assets
Cash and equivalents	$ 5,751	$ 56,446
Prepaid expenses	16,447	13,947
Advance to director	3,365	0
Deferred financing costs, net of amortization of $1,667	3,333	0
Total Current Assets	28,896	70,393
Other Assets
License agreement	525,000	525,000
TOTAL ASSETS	553,896	595,393
Current Liabilities
Accrued expenses	38,180	39,381
Accrued interest	1,000	0
Note payable	50,000	0
License fee payable	175,000	175,000
Total Current Liabilities	264,180	214,381
Long-term Liabilities
License fee payable, net of current portion	175,000	175,000
Total Liabilities	439,180	389,381
Stockholders Equity
Common Stock, $.001 par value, 100,000,000 shares authorized, 63,037,262 and shares issued and outstanding (63,037,262 - July 31, 2012)	63,037	63,037
Additional paid-in capital	282,489	282,489
Stock warrants	249,409	249,409
Deficit accumulated during the development stage	(480,219)	(388,923)
Total Stockholders Equity	114,716	206,012
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY	$ 553,896	$ 595,393

XML

GOING CONCERN (Details Narrative) (USD $)	Apr. 30, 2013	Jul. 31, 2012
Notes to Financial Statements
Deficit accumulated during the development stage	$ 480,219	$ 388,923

XML

LICENSE AGREEMENT (Details Narrative) (USD $)	3 Months Ended		9 Months Ended		72 Months Ended
	Apr. 30, 2013	Apr. 30, 2012	Apr. 30, 2013	Apr. 30, 2012	Apr. 30, 2013	Jan. 31, 2013	Jul. 31, 2012	Mar. 15, 2012
Goodwill and Intangible Assets Disclosure [Abstract]
License Agreement Prinicipal Amount	$ 525,000		$ 525,000		$ 525,000		$ 525,000	$ 525,000
License fee payable installment no. 1								175,000
Term of days before closing at of agreement to pay first installment								90 days
License fee payable installment no. 2								175,000
Term of days After First Payment To Pay Second Installment								90 days
License fee payable installment no. 3								175,000
Term of days After Second Payment To Pay Third Installment								90 days
License fee payable installment no. 4								350,000
Balance on License Agreement						350,000
Extension Due Date for Second Installment						Jun. 30, 2013
Extension Due Date for Third Installment						Sep. 30, 2013
Royalty Of All Revenues						3.00%
Term for Payment of Royalty Of All Revenues						5 years
Revenues					$ 200

XML

CAPITAL STOCK

9 Months Ended

Apr. 30, 2013

Equity [Abstract]

CAPITAL STOCK

The Company has 90,000,000 shares of $0.001 par value common stock authorized.

The Company has 10,000,000 shares of $0.001 par value preferred stock authorized.

On May 14, 2007, the Company received $4,000 from its founders for 58,994,015 shares of its common stock. On June 22, 2007, the Company completed an unregistered private offering under the Securities Act of 1933, as amended, relying upon the exemption from registration afforded by Rule 504 of Regulation D promulgated there under.  The Company sold 23,450,110 shares of its $0.001 par value common stock at a price of $0.004 per share for $11,925 in cash.

On July 21, 2008, the Company’s shares of common stock were forward split on the basis of 1.84356289 shares for 1.

On May 1, 2009, the Company’s shares of common stock were forward split on the basis of 1.6 shares for 1.

On March 15, 2010, the Company sold 191,176,470 shares of common stock for total cash proceeds of $65,000.

On November 3, 2011, a shareholder of the company voluntarily returned 1,250,000 shares of common stock to treasury for cancellation.

On February 22, 2012, a shareholder of the company voluntarily returned 210,000,000 shares of common stock to treasury for cancellation

On March 12, 2012, the Company the Company’s shares of common stock were forward split on the basis of 5 shares for 1. All share and per share data in the accompanying financial statements and footnotes has been adjusted retrospectively for the effects of the stock split.

On March 27, 2012, the Company received subscription proceeds of $500,000 related to a subscription agreement for 666,667 shares of common stock and common stock warrants $0.75 per unit. The common stock warrants were valued using the Black-Scholes valuation method. The valuation was made using the following assumptions and the proceeds were allocated based on the fair value of the common stock and common stock warrants:

Stock price at grant date	$	1.00
Exercise price	$	1.12
Term		4 years
Risk-free interest rate		0.37	%
Volatility		284	%

As of April 30, 2013, the Company had 63,037,262 shares of common stock issued and outstanding.

There are no shares of preferred stock issued and outstanding as of April 30, 2013.

XML

INCOME TAXES - FEDERAL INCOME TAX (Details) (USD $)	9 Months Ended
	Apr. 30, 2013	Apr. 30, 2012
Federal income tax benefits attributable to:
Current operations	$ 31,041	$ 5,064
Less: valuation allowance	31,041	5,064
Net provision for Federal income taxes	$ 0	$ 0

XML

INCOME TAXES

9 Months Ended

Apr. 30, 2013

Income Tax Disclosure [Abstract]

INCOME TAXES

As of April 30, 2013, the Company had net operating loss carry forwards of approximately $480,219 that may be available to reduce future years’ taxable income in various amounts through 2032. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards.

The provision for Federal income tax consists of the following for the nine months ended April 30, 2013 and 2012:

	2013			2012
Federal income tax benefits attributable to:
Current operations	$	31,041		$	5,064
Less: valuation allowance		(31,041	)		(5,064	)
Net provision for Federal income taxes	$	0		$	0

The cumulative tax effect at the expected rate of 34% of significant items comprising our net deferred tax amount is as follows as of April 30, 2013 and July 31, 2012:

	April 30, 2013			July 31, 2012
Deferred tax asset attributable to:
Net operating loss carryover	$	163,275		$	132,234
Less: valuation allowance		(163,275	)		(132,234	)
Net deferred tax asset	$	0		$	0

Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of $480,219 for Federal income tax reporting purposes are subject to annual limitations. Should another change in ownership occur net operating loss carry forwards may be further limited as to use in future years.

XML

NOTE PAYABLE

9 Months Ended

Apr. 30, 2013

Notes to Financial Statements

NOTE PAYABLE

On January 9, 2013, the Company signed a promissory note for $50,000. The loan is due on January 9, 2014, bears interest at 8% and is unsecured.

Finance costs related to the issuance of the note in the amount of $5,000 have been deferred and are being amortized over the term of the note payable.

XML

PREPAID EXPENSES

9 Months Ended

Apr. 30, 2013

Notes to Financial Statements

PREPAID EXPENSES

Prepaid expenses consisted of $1,515 of prepaid transfer agent services and $12,432 of prepaid legal services as well as $2,500 of site lease deposits.

XML

ACCRUED EXPENSES (Tables)

9 Months Ended

Apr. 30, 2013

Notes to Financial Statements

SCHEDULE OF ACCRUED EXPENSES

	2013		2012
Accrued legal fees	$	2,680	$	2,681
Accrued accounting and audit fees		5,500		6,700
Accrued filing fees		0		0
Accrued consulting fees		30,000		30,000
Total Accrued Expenses	$	38,180	$	39,381

XML

GOING CONCERN

9 Months Ended

Apr. 30, 2013

Notes to Financial Statements

GOING CONCERN

The accompanying financial statements have been prepared in conformity with generally accepted accounting principle, which contemplate continuation of the Company as a going concern.  However, the Company has an accumulated deficit of $480,219 as of April 30, 2013.  The Company currently has a working capital deficit, and has not completed its efforts to establish a stabilized source of revenues sufficient to cover operating costs over an extended period of time.

Management anticipates that the Company will be dependent, for the near future, on additional investment capital to fund operating expenses The Company intends to position itself so that it may be able to raise additional funds through the capital markets. In light of management’s efforts, there are no assurances that the Company will be successful in this or any of its endeavors or become financially viable and continue as a going concern.

XML

PREPAID EXPENSES (Details Narrative) (USD $)	Apr. 30, 2013
Notes to Financial Statements
Prepaid transfer agent services	$ 1,515
Prepaid Legal Services	12,432
Site Lease Deposit	$ 2,500

XML

INCOME TAXES (Tables)

9 Months Ended

Apr. 30, 2013

Income Tax Disclosure [Abstract]

FEDERAL INCOME TAX

	2013			2012
Federal income tax benefits attributable to:
Current operations	$	31,041		$	5,064
Less: valuation allowance		(31,041	)		(5,064	)
Net provision for Federal income taxes	$	0		$	0

DEFERRED TAX ASSET

	April 30, 2013			July 31, 2012
Deferred tax asset attributable to:
Net operating loss carryover	$	163,275		$	132,234
Less: valuation allowance		(163,275	)		(132,234	)
Net deferred tax asset	$	0		$	0

XML

Document and Entity Information	9 Months Ended
	Apr. 30, 2013	Jun. 10, 2013
Document And Entity Information
Entity Registrant Name	HARMONIC ENERGY, INC.
Entity Central Index Key	0001404935
Document Type	10-Q
Document Period End Date	Apr. 30, 2013
Amendment Flag	false
Current Fiscal Year End Date	--07-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		63,037,262
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2013

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)	9 Months Ended
	Apr. 30, 2013	Oct. 31, 2012
Accounting Policies [Abstract]
Date of Incorporation	May 01, 2007
Fiscal Year End	--07-31
Common stock warrants outstanding		666,667