UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(MARK ONE)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED March 31, 2009

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

COMMISSION FILE NUMBER: 0-53225

ECOSOLUTIONS INTL

(Exact name of registrant as specified in its charter)

Nevada		04-3803966
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)

295 East Main Street, Suite 1,

Ashland, Oregon 97520

(Address of principal executive offices)

(541) 552-9360

Issuer’s telephone number:

(Former Name or Former Address, 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:

Yes x No o .

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

Large accelerated filer ¨	Accelerated filer ¨

Non-accelerated filer ¨	Smaller reporting company x

Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date:

As of May 1, 2009, the issuer had 25,992,884 shares of common stock outstanding.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act):

Yes ¨ No x

ECOSOLUTIONS INTL

FORM 10-Q

For the quarterly period ended March 31, 2009

TABLE OF CONTENTS

	PART I

ITEM 1.	Condensed Financial Statements	3
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	26
ITEM 4T.	Controls and Procedures	26

	PART II

ITEM 1.	Legal Proceedings	27
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	27
ITEM 3.	Defaults Upon Senior Securities	27
ITEM 4.	Submission of Matters to a Vote of Security Holders	27
ITEM 5.	Other Information	27
ITEM 6.	Exhibits	28

PART I

ITEM 1. FINANCIAL STATEMENTS .

ecoSolutions Intl

Condensed Balance Sheets

	March 31,			December 31,
	2009			2008
	(Unaudited)
Assets

Current assets:
Cash	$	16,225		$	12,906
Trade accounts receivable		-			8,419
Prepaid expenses, deposits and advances		156,359			54,697

Total current assets		172,584			76,022

Property and equipment, net of accumulated depreciation		47,282			71,737
Deferred financing costs		56,945			46,295
Accounts receivable non-current (related party - see Note 6)		28,770			27,270
Security deposits		5,454			5,454

Total assets	$	311,035		$	226,778

Liabilities and Stockholders’ Deficit

Current liabilities:
Accounts payable (related party balances of $53,721 and $46,911, respectively - see Note 6)	$	244,862		$	258,638
Accrued liabilities		67,081			52,279
Accrued payroll - officer/stockholders		105,000			115,807
Current portion of loans payable and interest payable (related party balances of $484,694 and $262,937, respectively)		487,490			274,537

Total current liabilities		904,433			701,261

Loans and interest payable, (including related party balances of $3,012,926 and $2,944,514, respectively, less current portion)		3,025,396			2,971,890

Total liabilities		3,929,829			3,673,151

Stockholders’ deficit:
Common stock, par value $.001; 100,000,000 shares authorized; 25,492,884 and 24,417,884 shares issued and outstanding at March 31, 2009 and December 31, 2008, respectively		25,493			24,418
Additional paid-in capital		2,418,469			2,047,152
Accumulated deficit		(6,062,756	)		(5,517,943	)

Total stockholders’ deficit		(3,618,794	)		(3,446,373	)

Total liabilities and stockholders' deficit	$	311,035		$	226,778

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

ecoSolutions Intl

Condensed Statements of Operations (Unaudited)

	Three Months Ended
	March 31, 2009			March 31, 2008

Product sales	$	88,284		$	1,733,805
Shipping revenue		-			24,294
Licensing revenue		27,856			-
Services income from related party		1,500			1,500

Net sales		117,640			1,759,599

Cost of goods sold		86,462			1,376,206

Gross profit		31,178			383,393

Selling, general and administrative expenses:
Payroll and benefits		167,186			258,525
Expense for outside consultants		199,956			19,127
Professional fees		35,149			28,502
Other selling, general and administrative expenses		64,242			120,749

Total selling, general and administrative expenses		466,533			426,903

Operating loss		(435,355	)		(43,510	)

Interest expense, net		109,458			99,450

Net loss	$	(544,813	)	$	(142,960	)

Net loss per share, basic and diluted	$	(0.02	)	$	(0.01	)

Weighted average shares used in per share calculations:
Basic and diluted		24,565,662			13,930,404

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

ecoSolutions Intl

Condensed Statements of Cash Flows (Unaudited)

Increase (Decrease) in Cash

	Three Months Ended
	March 31, 2009			March 31, 2008
Cash flows used for operating activities:
Net loss	$	(544,813	)	$	(142,960	)

Adjustments to reconcile net loss to net cash provided by (used for) operating activities:
Depreciation		5,790			6,335
Gain from sale of property and equipment		(3,123	)		-
Issuance of common stock for services		164,000			6,250
Stock option compensation expense		208,392			37,459
Convertible promissory note beneficial conversion feature		31,011			41,874

Changes in assets and liabilities:
(Increase) decrease in assets:
Trade accounts receivable		6,919			(258,678	)
Finished goods inventory		-			11,281
Prepaid expenses, deposits and advances		(101,662	)		70,787
Deferred financing costs		(10,650	)		-

Increase (decrease) in liabilities:
Accounts payable and accrued liabilities		(9,781	)		(90,203	)
Accrued interest		72,770			43,963
Customer deposits liability		-			(7,526	)

Net cash used for operating activities		(181,147	)		(281,418	)

Cash flows provided by (used for) investing activities:
Acquisition of property and equipment		-			(6,220	)
Proceeds from sale of property and equipment		21,788			-
Net cash provided by (used) in investing activities		21,788			(6,220	)

Cash flows provided by (used in) financing activities:
Borrowings on notes payable		186,389			182,700
Repayments on notes payable		(23,711	)		(230,378	)
Proceeds from issuance of common stock		-			567,978

Net cash provided by financing activities		162,678			520,300

Net increase in cash		3,319			232,662
Cash, beginning of period		12,906			10,755

Cash, end of period	$	16,225		$	243,417

Supplemental disclosure of cash flow information:
Cash paid during the period for interest	$	5,677		$	13,614

Supplemental disclosure of non-cash financing activities:
Conversion of promissory notes to common stock	$	-		$	167,495

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

ecoSolutions Intl

Notes to Condensed Financial Statements

Quarterly Period Ended March 31, 2009

(1)	Summary of Significant Business and Accounting Policies:

Basis of Presentation

The accompanying condensed balance sheet as of December 31, 2008, which has been derived from audited financial statements, and the unaudited interim condensed financial statements as of March 31, 2009 have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X and therefore do not include all of the information and footnotes required by accounting principles accepted in the United States for comparable annual financial statements. In the opinion of the management of the Company, the accompanying unaudited interim condensed financial statements include all adjustments, including those that are normal and recurring considered necessary to present fairly the financial position as of March 31, 2009, and the results of operations for the three months ended March 31, 2009. Unaudited interim results are not necessarily indicative of the results for the full year. The Company’s operating results will fluctuate for the foreseeable future. Therefore, period-to-period comparisons should not be relied upon as predictive of the results in future periods. The results of operations for the three months ended March 31, 2009 are not necessarily indicative of the results to be expected for any subsequent periods. Certain notes and other information have been condensed or omitted from the interim condensed financial statements presented in this quarterly report. These unaudited interim condensed financial statements should be read in conjunction with the financial statements of the Company for the year ended December 31, 2008 and notes thereto contained in the information filed in our Annual Report on Form 10-K.

Certain reclassifications have been made to prior years to conform to the current year presentation. These changes include the reclassification of employee stock option expense from other selling, general and administrative expense into payroll and benefits on the condensed statement of operations.

Business Organization

ecoSolutions Intl (formerly 360 Interchange, Inc.) (the “Company”) was founded on July 24, 2004 as an Oregon corporation. The Company reincorporated in Nevada on January 3, 2005. No discontinuance of Company operations occurred during this period. On March 17, 2008, the Company changed its name to ecoSolutions Intl.

Business Activity

The Company sources products from overseas, selling to various retailers, distributors or manufacturing customers located in the United States or overseas. Through March 31, 2009, the Company’s product sourcing has originated from Asia, with major product categories of wood flooring products and foam products such as yoga mats, flooring underlayment, ecoFoamÔ for sandals and the licensing of ecoFoamÔ. The Company has developed exclusive business arrangements with certain Asian manufacturers to market and sell eco-friendly products, focusing on selling plastic alternatives to polyvinyl chloride (PVC).

Use of Estimates

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

Fair Value

Unless otherwise indicated, the fair values of all reported assets and liabilities, which represent financial instruments, none of which are held for trading purposes, approximate carrying values of such amounts.

ecoSolutions Intl

Notes to Condensed Financial Statements

Quarterly Period Ended March 31, 2009

(1)	Summary of Significant Business and Accounting Policies (Continued):

Going Concern

The condensed financial statements have been prepared on a going concern basis which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company incurred a net loss of $544,813 for the three months ended March 31, 2009. The Company had a working capital deficiency of $731,849 and an accumulated deficit of $6,062,756 as of March 31, 2009. These factors raise substantial doubt about the Company’s ability to continue as a going concern for a reasonable period of time. Management’s intention is set forth in a business plan which assumes increased operating revenues and additional financing. These business plans include the potential of obtaining financing through bridge loans and equity financing arrangements, maintaining a revenue focus of targeting large potential customers with the Company’s eco-friendly plastic alternative products and controlling selling, general and administrative expenses. However, there is no assurance that the Company will be successful in these efforts, which raises substantial doubt as to its ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the plan’s success, as well as, achieving profitable operations in the future. The condensed financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

Comprehensive Loss

Comprehensive loss consists of net loss and other gains and losses affecting stockholders equity that, under generally accepted accounting principles, are excluded from net loss in accordance with SFAS No. 130, "Reporting Comprehensive Income” (FAS No. 130). The Company, however, does not have any components of other comprehensive loss as defined by SFAS No. 130. For the three months ended March 31, 2009 and 2008, comprehensive income consists only of net loss and, therefore, a Statement of Other Comprehensive Loss has not been included in these condensed financial statements.

ecoSolutions Intl

Notes to Condensed Financial Statements

Quarterly Period Ended March 31, 2009

(1)	Summary of Significant Business and Accounting Policies (Continued):

Segment Reporting

Statement of Financial Accounting Standards No. 131, “Disclosures about Segments of an Enterprise and Related Information” (SFAS 131), establishes standards for reporting information on operating segments in interim and annual financial statements. In accordance with this guidance, the Company has determined that it has one operating segment. The Company has historically sold wood flooring, foam underlayment for flooring, yoga mats and ecoFoamÔ for sandals and is in the process of transitioning to the selling of eco-friendly plastic alternatives. The chief operating decision-makers review the Company’s operating results on a consolidated basis, discrete financial information is not available for each product line and the operations are managed as a single operating segment.

Recent Accounting Pronouncements

FSP FAS 107-1 and APB 28-1 - In April 2009, the FASB issued FASB Staff Position No. FAS 107-1 and APB 28-1, "Interim Disclosures about Fair Value of Financial Instruments," which requires disclosures about fair value of financial instruments for interim reporting periods of publicly traded companies as well as in annual financial statements. This Staff Position is effective for interim reporting periods ending after June 15, 2009, with early adoption permitted for periods ending after March 15, 2009. Management does not believe the adoption of this staff position will have a material impact on the Company's financial position or results of operations.

FSP FAS 115-2 and FAS 124-2 - In April 2009, the FASB issued FASB Staff Position No. FAS 115-2 and FAS 124-2, "Recognition and Presentation of Other-Than-Temporary Impairments," which amends the other-than-temporary impairment guidance in U.S. GAAP for debt securities to make the guidance more operational and to improve the presentation and disclosure of other-than-temporary impairments on debt and equity securities in the financial statements. This Staff Position is effective for interim and annual reporting periods ending after June 15, 2009, with early adoption permitted for periods ending after March 15, 2009. The Company has not determined the impact, if any, of its adoption of this staff position.

FSP FAS 141(R)-1 - In April 2009, the FASB issued FASB Staff Position No. FAS 141(R)-1, “Accounting for Assets Acquired and Liabilities Assumed in a Business Combination That Arise from Contingencies” (FSP FAS 141(R)-1), that amends and clarifies FASB Statement No. 141 (revised 2007), “Business Combinations”. FAS 141(R)-1 addresses application issues raised by preparers, auditors, and members of the legal profession on initial recognition and measurement, subsequent measurement and accounting, and disclosure of assets and liabilities arising from contingencies in a business combination. This Staff Position is effective for assets or liabilities arising from contingencies in business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2008. Management will evaluate the impact FSP FAS 141(R)-1 may have on the accounting for any future business combinations that may be considered.

FSP FAS 157-4 - In April 2009, the FASB issued FASB Staff Position No. FAS 157-4, “Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly” (FSP FAS 157-4). FSP FAS 157-4 provides additional guidance for estimating fair value in accordance with FASB Statement No. 157, “Fair Value Measurements”, when the volume and level of activity for the asset or liability have significantly decreased. This Staff Position also includes guidance on identifying circumstances that indicate a transaction is not orderly. This Staff Position shall be effective for interim and annual reporting periods ending after June 15, 2009, and shall be applied prospectively. Early adoption is permitted for periods ending after March 15, 2009. Earlier adoption for periods ending before March 15, 2009 is not permitted. The Company has not determined the impact, if any, of its adoption of this staff position.

FSP FAS 157- 3 – In October 2008, the FASB issued FASB Staff Position No. FAS 157-3, “Determining the Fair Value of a Financial Asset in a Market That Is Not Active” (FSP 157-3), which clarifies the application of SFAS 157 when the market for a financial asset is inactive. Specifically, FSP 157-3 clarifies how (1) management’s internal assumptions should be considered in measuring fair value when observable data are not present, (2) observable market information from an inactive market should be taken into account, and (3) the use of broker quotes or pricing services should be considered in assessing the relevance of observable and unobservable data to measure fair value. The guidance in FSP FAS 157-3 is effective immediately and management does not believe that this will have an impact on the Company’s financial statements.

FSP APB 14-1 – In May 2008, the FASB issued FSP APB 14-1 , “Accounting for Convertible Debt Instruments That May Be Settled in Cash Upon Conversion (Including Partial Cash Settlement).” This FSP applies to convertible debt securities that, upon conversion by the holder, may be settled by the issuer fully or partially in cash (rather than settled fully in shares) and specifies that issuers of such instruments should separately account for the liability and equity components in a manner that reflects the issuer’s nonconvertible debt borrowing rate when related interest cost is recognized. This FSP is effective for our company beginning January 1, 2009 with retrospective application to all periods presented. The Companhy's adoption of FSP APB 14-1 did not have a material effect on its financial statements.

(2)	Customer Concentrations:

The customer accounts receivable balance is $0 at March 31, 2009 and $8,419 due from two customers at December 31, 2008. For the quarter ended March 31, 2009, two customers of our foam products accounted for approximately ninety-nine percent (99%) of our sales revenues.

(3)	Property and Equipment:

Property and equipment as of March 31, 2009 and December 31, 2008 consisted of the following:

	(Unaudited) March 31,		December 31,
	2009		2008

Automobiles	$	19,084	$	69,798
Computer equipment		31,730		31,730
Furniture and fixtures		19,050		19,050
Computer software		13,019		13,019
Leasehold improvements		12,262		12,262
Telephone equipment		4,021		4,021
Camera equipment		2,461		2,461

		101,627		152,341
Less accumulated depreciation		54,345		80,604

	$	47,282	$	71,737

Depreciation expense amounted to $5,790 and $6,335 for the three months ended March 31, 2009 and 2008, respectively. Automobiles with a net book value of $14,051 are collateralized against automobile loan balances of $15,264 as of March 31, 2009.

ecoSolutions Intl

Notes to Condensed Financial Statements

Quarterly Period Ended March 31, 2009

(4)	Loans Payable and Accrued Interest:

Loans payable and accrued interest as of March 31, 2009 and December 31, 2008 are summarized as follows:

	(Unaudited) March 31,		December 31,
	2009		2008

Convertible promissory note including interest to William Patridge, President and CEO, for funding of the Company bearing interest at 10.0% (which commenced accrual as of January 2006), due January 2013, payable as $388,870 in 2009, $1,000,000 in 2011, $1,000,000 in 2012 and $1,012,926 in 2013	$	3,401,796	$	3,144,514

Automobile loan payable, bearing interest at 5.3%, secured by automobile, payable in monthly principal and interest installments of $822, matures June 2011. Paid in full in March 2009 through sale of automobile.		-		23,044

Automobile loan payable, bearing interest at 7.5%, secured by automobile, payable in monthly principal and interest installments of $321, matures December 2013		15,266		15,932

Convertible promissory notes including interest to related parties, bearing interest at 6.0%, interest payable at maturity, net of unamortized debt discount of $34,649, maturities of July 2009		95,824		62,937

		3,512,886		3,246,427
Less current portion		487,490		274,537

	$	3,025,396	$	2,971,890

ecoSolutions Intl

Notes to Condensed Financial Statements

Quarterly Period Ended March 31, 2009

As of March 31, 2009, the outstanding balance of the Company convertible promissory note (“Patridge Note”) issued to William Patridge (“Patridge”), President and Chief Executive Officer, is $3,401,796 for funding of the Company since inception. The Patridge note bears interest at 10.0% and is due January 2, 2013. Installment payments on this note are $388,870 due on June 30, 2009, $1,000,000 due on January 2, 2011, $1,000,000 due on January 2, 2012 and $1,012,926 due on January 2, 2013. For the three months ended March 31, 2009, Patridge provided $186,389 of borrowings to the Company. Patridge may at any time, in his sole discretion, convert all or a portion of the principal amount outstanding, together with accrued interest, into shares of common stock, at a conversion price of $0.50 per share of common stock. The fair market value stock price on December 31, 2008, the initial date of the Patridge Note, and March 31, 2009, the note date for the additional borrowings since December 31, 2008, as quoted on the OTC Bulletin Board, were $0.35 and $0.33 per share, respectively. In accordance with guidance under Emerging Issues Task Force Abstract 00-27, “Application of Issue No. 98-5 to Certain Convertible Instruments”, no beneficial conversion was recorded due to the conversion price of $0.50 per share being higher than the fair market value of the stock on the note issuances dates. For the three months ended March 31, 2009 and 2008, $70,895 and $48,067 of interest expense, respectively, has been recorded on the Patridge Note. In accordance with the guidance under SFAS 133 “Accounting for Derivative Instruments and Hedging Activities,” SFAS 150 “Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity”, EITF 00-19 “Accounting for Derivative Financial Instruments Indexed To, and Potentially Settled In, a Company’s Own Stock,” EITF 05-02 “Meaning of Conventional Convertible Debt Instrument in Issue No. 00-19” and EITF 07-5 “Determining Whether an Instrument (or Embedded Feature) Is Indexed to an Entity's Own Stock,” such notes were determined to be conventional convertible and no separate derivative accounting was considered necessary.

On July 8, 2008, the Company issued to T Squared Investments LLC (“T Squared”), a related party, a convertible promissory note in the aggregate principal amount of $100,000 (“T Squared Note”) at an interest rate of 6% per annum. On July 8, 2008, the Company issued to Westside Capital LLC (“Westside”), a convertible promissory note in the aggregate principal amount of $25,000 (“Westside Note”) at an interest rate of 6% per annum. Westside is managed by the same managing partners as T Squared. The T Squared Note and the Westside Note mature and are payable, together with accrued interest, one year from the date of issuance. T Squared and Westside may at any time, in their sole discretion, convert all or a portion of the principal amount outstanding, together with accrued interest, into shares of common stock, at a conversion price of $0.50 per share of common stock. As of March 31, 2009, accrued interest of $5,473 is included in the notes payable balance. In accordance with Emerging Issues Task Force Abstract 00-27, “Application of Issue No. 98-5 to Certain Convertible Instruments”, the beneficial conversion feature of $125,000 was recorded as a discount to the notes at issuance and is being amortized over the one year lives of the notes using the effective interest method and effective interest rate of 6%. For the three months ended March 31, 2009 and 2008, amortization of the discount was recorded as interest expense of $31,011 and $0, respectively. The unamortized debt discount is presented as a contra amount in current portion of loans and interest payable of $34,649 as of March 31, 2009. Contractual interest expense for the three months ended March 31, 2009 and 2008 was $1,875 and $0, respectively. In accordance with the guidance under SFAS 133 “Accounting for Derivative Instruments and Hedging Activities,” SFAS 150 “Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity”, EITF 00-19 “Accounting for Derivative Financial Instruments Indexed To, and Potentially Settled In, a Company’s Own Stock,” EITF 05-02 “Meaning of Conventional Convertible Debt Instrument in Issue No. 00-19” and EITF 07-5 “Determining Whether an Instrument (or Embedded Feature) Is Indexed to an Entity's Own Stock,” such notes were determined to be conventional convertible and no separate derivative accounting was considered necessary.

The aggregate maturities of loans payable and accrued interest at March 31, 2009 were as follows (unaudited):

Year ending December 31,
2009	$	486,770
2010		2,958
2011		1,003,187
2012		1,003,435
2013		1,016,536
Thereafter		-

	$	3,512,886

(5)	Deferred Costs:

During the year ended December 31, 2008 and the quarter ended March 31, 2009, the Company incurred $56,945 cumulative direct costs associated with the efforts to raise capital for the business. In accordance with Staff Accounting Bulletin 5, “Miscellaneous Accounting,” Topic A, “Expenses of Offering,” these costs were capitalized and are reported as a long-term asset on the accompanying Condensed Balance Sheet. Upon the completion of a contemplated offering, these costs will be offset against equity proceeds or amortized over the term of financing proceeds. In addition to this offering, the Company expects to continue capital raising activities in the forms of bridge loans during 2009.

ecoSolutions Intl

Notes to Condensed Financial Statements

Quarterly Period Ended March 31, 2009

(6)	Related Party Transactions:

The Company’s office business facility located in Ashland, Oregon is owned by Main and Second Street LLC, a company which William Patridge, Chairman, Chief Executive Officer, President and principal stockholder of the Company is the sole managing member and is not a variable interest entity per FASB Interpretation 46R, “Consolidation of Variable Interest Entities (as amended)” (FIN 46R). Rent expense was accrued but not paid per agreement with William Patridge since inception through December 31, 2007. Beginning January 1, 2008, the Company paid the monthly rent due through November 2008, however, December 2008 through March 2009 payments were accrued but not paid. The monthly terms are set at a fixed price, which can increase with notification from Main and Second Street LLC. The rental agreement is not collateralized. The liability to Main and Second Street LLC as of March 31, 2009 of $53,721 is classified within current liabilities as payment is expected within the next twelve months.

Fees for management services provided by the Company to Patridge & Company of Nevada LLC are recorded as services income and recorded in non-current accounts receivable as services are incurred. William Patridge is the managing member of Patridge & Company of Nevada LLC. As of March 31, 2009, the noncurrent accounts receivable balance was $28,770 and fees earned for the three months ended March 31, 2009 were $1,500. As of March 31, 2009, the amount past due over ninety days is $27,270. This non-interest bearing accounts receivable balance is classified as a non-current asset as likelihood exists that collection over the next twelve months may not occur. However, the Company anticipates full collectability in the long-term.

As of March 31, 2009, the Company has convertible promissory notes outstanding to William Patridge, President and Chief Executive Officer of $3,401,798 and to T Squared Investments LLC and Westside Capital LLC of an aggregate balance net of unamortized debt discount of $95,824. T Squared Investments LLC is a beneficial owner of the Company, and Westside Capital LLC is managed by the same managing partners. Terms of these convertible promissory notes are discussed in Note 4.

Westside Capital LLC also provides consulting services to the Company and received compensation through non-qualified stock options to purchase 1,000,000 shares of the Company's common stock. The stock options were granted on May 5, 2008 under the Company's 2007 Equity Incentive Plan. The exercise price of the options is $0.40 per share, with a vesting period of three years and a term of five years. The Company accounts for equity instruments issued in exchange for the receipt of goods or services from other than employees in accordance with Statement of Financial Accounting Standard No. 123R, "Share Based Payments" ("SFAS 123R"). The Company utilized the Black Scholes option-pricing model and expensed $16,118 for the three months ended March 31, 2009 related to these services, with a remaining unrecognized compensation cost of $128,942 as of March 31, 2009. As of March 31, 2009, none of the stock options have vested and the current fair value at March 31, 2009 of these non-vested non-employee options to purchase 1,000,000 shares of the Company's common stock was $252,332. See Note 9 for further discussion of stock options.

(7)

Leases:

The Company maintains an office in Shanghai, China that is obligated under a non-cancelable operating lease for office space that expires in July 2009. The office space in Ashland, Oregon, rented from Main and Second Street LLC, is on a month-to-month basis. The Company leases a company automobile with lease payments beginning November 2007 and ending October 2012. Total minimum rental lease expense for all leases was $22,733 and $19,632 for the three months ended March 31, 2009 and 2008, respectively. Lease expense is recorded within other selling, general and administrative expenses in the condensed statements of operations.

The aggregate future minimum annual lease payments under non-cancelable operating leases as of March 31, 2009 were as follows (unaudited):

Year Ended December 31,
2009	$	23,851
2010		19,284
2011		19,284
2012		14,463
2013		-
Thereafter		-

	$	76,882

ecoSolutions Intl

Notes to Condensed Financial Statements

Quarterly Period Ended March 31, 2009

(8)

Equity

The Company’s authorized capital stock consists of 100,000,000 shares of common stock, $0.001 par value per share, and 20,000,000 shares of preferred stock, par value $0.001 per share. As of March 31, 2009 and December 31, 2008, the Company has no shares of preferred stock issued and outstanding, and 25,492,884 and 24,417,884 shares of common stock issued and outstanding, respectively. Common stock issuances for services rendered during the three months ended March 31, 2009 of 1,025,000 shares are discussed in Note 10. Common stock issuances for stock option exercises during the three months ended March 31, 2009 of 50,000 shares are discussed in Note 9.

ecoSolutions Intl

Notes to Condensed Financial Statements

Quarterly Period Ended March 31, 2009

(9)	Stock Options:

The Company has granted non-qualified and incentive stock option agreements (the “Agreements”) to certain employees, advisors, consultants and board members. The Agreements provide for the grant of stock options, exercisable for shares of the Company’s common stock. In May 2007, the Board of Directors, by unanimous written consent, adopted the 2007 Equity Incentive Plan and Incentive Stock Option agreement. For the three months ended March 31, 2009, the Company granted options to purchase 2,500,000 shares of the Company’s common stock. These options were granted with an exercise price ranging from $0.16 to $0.20 per share. These options were granted with vesting terms between zero and three years and expire in five years. For the three months ended March 31, 2009, 50,000 non-employee options were exercised with an intrinsic value of $8,500. Cash proceeds to be received by the Company through a cashless exercise of these options is $8,000. For the three months ended March 31, 2009, 415,000 options were forfeited with 6,264,500 options outstanding.

A summary is as follows:

						Weighted
				Weighted		Average
				Average		Remaining
	Number			Exercise		Contractual
	of shares			Price		Life

Balance at December 31, 2008		4,229,500		$	0.257		3.51

Granted		2,500,000		$	0.168
Exercised		(50,000	)		0.160
Forfeited		(415,000	)		0.265

Balance at March 31, 2009 (Unaudited)		6,264,500		$	0.222		3.79

Exercisable at March 31, 2009 (Unaudited)		1,929,169		$	0.214		3.18

Commencing January 1, 2006, the Company adopted Statement of Financial Accounting Standard No. 123R, “Share Based Payments ” (“SFAS 123R”), which requires all share-based payments, including grants of stock options, to be recognized in the income statement as an operating expense, based on fair values.

The Company accounts for equity instruments issued in exchange for the receipt of goods or services from other than employees in accordance with SFAS 123R and the conclusions reached by the Emerging Issues Task Force, Issue 96-18, “Accounting for Equity Instruments That are Issued to Other Than Employees for Acquiring, or in Conjunction with Selling, Goods or Services”, (EITF 96-18). Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably measurable. The value of the equity instruments issued for consideration other than employee services is determined on the earlier of a performance commitment or completion of performance by the provider of goods or services as defined by EITF 96-18. During the three months ended March 31, 2009, options to purchase 1,000,000 shares of the Company’s common stock were granted to non-employees, of which 500,000 were granted with immediate vesting. The current fair value at March 31, 2009 of the non-vested non-employee options to purchase 500,000 shares of the Company’s common stock was $134,905.

Under SFAS 123R, forfeitures are estimated at the time of valuation and reduce expense ratably over the vesting period. This estimate is adjusted periodically based on the extent to which actual forfeitures differ, or are expected to differ, from the previous estimate. The Company utilized a 10% forfeiture rate. The Company recognized $208,392 and $37,459 of stock option expense for the three months ended March 31, 2009 and 2008, respectively. As of March 31, 2009, there was $530,010 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under existing stock option plans, with a weighted average remaining contractual life of 3.77 years. The total fair value of shares vested and non-vested as of December 31, 2008 was $1,222,557, of which $405,940 is attributed to employee options. The intrinsic value of vested options to purchase 1,929,169 shares is $286,575 as of March 31, 2009.

ecoSolutions Intl

Notes to Condensed Financial Statements

Quarterly Period Ended March 31, 2009

(9)	Stock Options (Continued):

The fair value of options granted to employees was estimated using the Black Scholes option-pricing model. These same assumptions were also used in applying the Black Scholes option-pricing model for any stock based option compensation paid to non-employees. For the three months ended March 31, 2009, expected future volatility is based on review of historical volatilities for similar public companies. With the Company’s limited trading history and infancy in its product line, management believes that the historical volatility of the Company’s stock price does not best represent the expected volatility of the stock price. Management intends to continue to consistently use the same group of publicly traded peer companies to determine volatility in the future until such time that sufficient information regarding the volatility of the Company’s share price becomes available or unless the selected companies become unreliable for this purpose. The fair value of options at the date of grant and the assumptions utilized are indicated in the following table:

	(Unaudited)
	Three Months Ended
	March 31, 2009

Weighted average of fair value at date of grant for options granted during the period	$	0.168

Risk-free interest rates		1.14%-1.28	%
Expected option life in years		5
Expected stock price volatility		94.9%-97.6	%
Expected dividend yield		-

The following summarizes the activity of the Company’s non-vested options for the three months ended March 31, 2009.

				Weighted
				Average
				Exercise
	Shares			Price

Non-vested at December 31, 2008		2,882,332			$	0.259
Granted		2,500,000				0.168
Vested		(632,001	)			0.182
Forfeited		(415,000	)			0.265

Non-vested at March 31, 2009 (Unaudited)		4,335,331			$	0.225

ecoSolutions Intl

Notes to Condensed Financial Statements

Quarterly Period Ended March 31, 2009

(10)	Shares Granted for Services:

Services provided by consultants were recorded as compensation expense in other selling, general and administrative expenses for the three months ended March 31, 2009 and 2008 of $20,446 and $188, respectively. The fair market value of common stock used to value the services during 2009 ranged from $0.16 to $0.25 per share and was based on the closing prices of quotations on the OTC Bulletin Board on the measurement dates. The fair market value of common stock used to value the services during 2008 was $0.15 per share and was based on the offering price under Rule 504 of Regulation D. Shares issued for such services during the three months ended March 31, 2009 and 2008 were 1,025,000 and 41,666, respectively, representing a total fair value on March 31, 2009 of $338,250 and $13,750, respectively.

ecoSolutions Intl

Notes to Condensed Financial Statements

Quarterly Period Ended March 31, 2009

(11)	Loss per Share:

The Company has adopted Statement of Financial Accounting Standards No. 128, “Earnings per Share” (SFAS 128). SFAS 128 provides for the calculation of basic and diluted earnings per share. Basic earnings per share includes no dilution and is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of an entity, such as stock options, warrants or convertible securities. Loss per share is computed as net loss divided by the weighted average of common shares outstanding for the period, as follows:

	(Unaudited)
	Three Months Ended March 31,
	2009				2008

Net loss available to common stockholders		$	(544,813	)		$	(142,960	)

Weighted average common shares outstanding, basic and diluted			24,565,662				13,930,404

Basic and diluted loss per share		$	(0.02	)		$	(0.01	)

At March 31, 2009, common stock equivalents of 13,329,038, comprised of stock options to purchase 6,264,500 shares and convertible promissory notes convertible to 7,064,538 shares were outstanding and could affect future periods, but were not included in the computation of diluted loss per common share as the effect would be anti-dilutive. At March 31, 2008, common stock equivalents of 10,810,650, comprised of stock options to purchase 3,154,500 shares and preferred stock convertible to 7,656,150 shares were not included in the computation of diluted loss per common share as the effect would be anti-dilutive.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS .

This Report, including any documents which may be incorporated by reference into this Report, contains “Forward-Looking Statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are “Forward-Looking Statements” for purposes of these provisions, including any projections of revenues or other financial items, any statements of the plans and objectives of management for future operations, any statements concerning proposed new products or services, any statements regarding future economic conditions or performance, and any statements of assumptions underlying any of the foregoing. All Forward-Looking Statements included in this document are made as of the date hereof and are based on information available to us as of such date. We assume no obligation to update any Forward-Looking Statement. In some cases, Forward-Looking Statements can be identified by the use of terminology such as “may,” “will,” “expects,” “plans,” “anticipates,” “intends,” “believes,” “estimates,” “potential,” or “continue,” or the negative thereof or other comparable terminology. Although we believe that the expectations reflected in the Forward-Looking Statements contained herein are reasonable, there can be no assurance that such expectations or any of the Forward-Looking Statements will prove to be correct, and actual results could differ materially from those projected or assumed in the Forward-Looking Statements. Future financial condition and results of operations, as well as any Forward-Looking Statements are subject to inherent risks and uncertainties, including any other factors referred to in our press releases and reports filed with the Securities and Exchange Commission. All subsequent Forward-Looking Statements attributable to the company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements.

Introductory Comment

The following discussion should be read in conjunction with our unaudited financial statements (including the notes thereto) included elsewhere in this report and our audited financial statements and the notes thereto, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Item 1A, “Risk Factors” included in our Annual Report on Form 10-K for the year ended December 31, 2008.

Throughout this Quarterly Report on Form 10-Q, the terms “we,” “us,” “our,” “our company,” and “the Company” refer to ecoSolutions Intl, a Nevada corporation.

Organizational History

Our company was originally incorporated as “360 Interchange, Inc.” under the laws of the State of Oregon on July 24, 2004. On January 3, 2005, we reincorporated under the laws of the State of Nevada. We subsequently changed our name to “ecoSolutions Intl” on March 17, 2008 to reflect our current business focus. Our principal executive offices are located at 295 East Main Street, Suite 1, Ashland, Oregon 97520, and our telephone number is (541) 552-9360. Due to our business relationships in Asia, we also maintain a branch office located at 2299 Yan An Road, West Shanghai Mart, Suite 3B55, Shanghai, 200336 PRC. We maintain a website at http://www.ecosolutionsintl.com . Our Internet website(s) and the information contained therein, or connected thereto, are not and are not intended to be incorporated into this Quarterly Report on Form 10-Q.

Until 2007, we were a trading company operating out of the State of Oregon focusing on the sale of wood flooring and yoga mat products in North America. However, we have not generated significant revenues from our trading company operations, and have incurred net operating losses since our inception in 2004. At March 31, 2009, our accumulated deficit was approximately $6.1 million.

The wood flooring industry is dependent on activity in the construction and real estate markets, and our operations in this industry have been affected by the financial troubles in the real estate market. In addition, the number of trading companies has grown substantially with foreign companies competing with the Asian traditional traders. There has also been a growth resulting from the Internet explosion, in that there are now many sites offering direct communication with the factories and manufacturers, and functioning effectively as online trading companies. As more companies in the United States become savvy about working directly with factories, trading companies have to adapt and become more service oriented to retain their customer base. This has presented significant challenges for what we believe to be an already crowded market.

Due to growing troubles in the real estate market and its ancillary industries, and sluggish industry sales resulting from stiff competition, in early 2007, our Board of Directors considered entering into a number of other businesses that would enable us to be able to provide our shareholders with future value. Our Board subsequently decided to develop a business in the alternative plastics market as a distributor of non-PVC plastics and bioplastics, having concluded that there was a significant opportunity to participate in the rapidly growing eco-consciousness and “green” industry, including the sale of eco-friendly alternatives to ordinary consumer goods.

In 2007, we adjusted our business plan to focus primarily on providing ecologically friendly alternatives to plastic, PVC (polyvinyl chloride, commonly called vinyl), rubber and non-sustainable wood products throughout the world. While currently maintaining a presence in the wood flooring and yoga mats space as we transition into our new business plan, we have extended our business operations to include the development and sales of a range of competitive to premium priced products that are environmentally attractive alternatives to more toxic and damaging materials such as PVC. During this transition, management reports sales from all product lines under a single segment as discrete product line information is not available and this is consistent with the review by the chief decision makers of the Company.

In particular, in connection with our new line of business, we are offering a suite of products classifiable into one of three broad product lines, namely: (i) a Correlative Product Line, (ii) an Enriched Product Line, and (iii) an Overall Sustainability Product Line. The nature and types of products included in our Correlative Product Line will be products designed to contain no toxic PVC materials compared with non-green substitutes, which contain PVC. Products in our Correlative Product Line will perform similarly to the non-green substitutes that they replace but their production will emphasize their inclusion of more readily recyclable and eco-friendly materials. Our Enriched Product Line will include products manufactured with an eco-friendly focus, as in the case of our Correlative Products; however, our Enriched Products will feature improvements in product performance (compared to their non-green competitors) in addition to the “green” nature of these products. Our Overall Sustainability Product Line will feature products that improve the overall sustainability of the materials that they replace by using technology that builds upon the other two categories, including benefits relating to biodegradability, among others.

More specifically, we currently market ecoPlastic™, ecoFoam™ and ecoWrap™ suites of products. Our ecoPlastic™ brand represents our primary suite of products, and includes products/materials from our Correlative Product Line, Enriched Product Line and Overall Sustainability Product Line. Our ecoFoam™ suite includes offerings from our Correlative Product Line and Enriched Product Line only, and represents a subset of our ecoPlastic™ suite. Our ecoWrap™ suite includes offerings from our Correlative Product Line and represents a subset of our ecoPlastic™ suite. For additional details regarding our principal product offerings, please see “Item 2 Business - Principal Products.”

We are presently focused on building a brand around our suite of eco-friendly solutions and products, including our ecoPlastic™, ecoFoam™ and ecoWrap™ product lines, and co-brand opportunities with our customers. Given the 350 billion pounds per year of plastics that are produced annually, growing at a rate of 5% per annum, we believe that we are targeting a market with enormous growth opportunities for our products. Additionally, with our broader line of product offerings, relative to more conventional players in the bioplastics space, we offer environmentally friendly solutions in a way that non-diversified bioplastics companies cannot.

Business Strategy

Our goal is to develop and successfully commercialize cost-competitive environmentally sustainable alternatives to conventional petroleum-based plastics. To accomplish this, we have divided our operations to focus on the development and commercialization of both bioplastic alternatives, as well as alternatives though while not purely “bioplastic,” nonetheless provide immediate solutions to several of the environmental and health concerns associated with the consumption of conventional plastics.

While our competitors in the bioplastics space are focusing almost exclusively on bioplastics where the practical applications have so far been limited (65% of bioplastics in 2007 were estimated to be limited to the packaging and food industries), we intend to develop and market products that provide immediate solutions to ecological and health issues. For manufacturers and other companies that are plagued by public relations nightmares of manufacturing unsafe products, the closest thing to a solution is to eliminate PVC from its production process. PVC has been declared to be the equivalent of public enemy number one for many manufacturers, and as such, the eradication of PVC in the production process is far more important than the relative environmental merits of bioplastics versus petroleum based plastics. In addition, despite the positive press that bioplastics have received in recent years, their applications are still quite limited in the marketplace and are dwarfed by the opportunities for eco-friendly petroleum-based plastics, a segment which we believe is being ignored by competitors in the strictly bioplastics market.

For industries like toy manufacturing, where the intensity of negative press has steadily increased with highly publicized toy recalls, the pressure to find non-toxic applications has never been greater. Yet, the challenges of manufacturing a toy that won’t biodegrade too quickly, but is safe for young children, remain difficult for producers. For applications like these, bioplastics have not emerged as a viable solution and are not expected to in the near term. Instead, we believe that eco-friendly petroleum-based plastics, similar to the products available in our ecoPlastic™ and ecoFoam™ solutions, are perfectly positioned for application in the toy industry to address some of the concerns about conventional petroleum-based plastics.

We plan to provide alternatives to conventional plastics. Although not strictly bioplastic, our alternatives meet most of the criteria for inclusion in this market category because the production and consumption is gentler on the environment, and they are non-toxic, fully recyclable and degradable. It is our plan to market our ecoPlastic™, ecoFoam™ and ecoWrap™ suites of products as currently viable alternatives to toxic PVC-based plastics, the component found in most conventional plastics. Available in an endless array of applications from building materials to toys and blister pack material for consumer goods packaging, ecoPlastic™, ecoFoam™ and ecoWrap™ are an ecologically advantageous, currently available, and cost competitive alternative to toxic PVC that addresses the broader plastics market applications relative to pure bioplastics. As a result, given the relative infancy of the bioplastics market and limited commercial applications for such products, we believe that our ecoPlastic™, ecoFoam™ and ecoWrap™ solutions provide us with immediate and substantial returns at the same time that we are carving out market share into the future bioplastic boom.

Our current product line consists of our branded ecoPlastic™, ecoFoam™ and ecoWrap™ products, sold in the form of plastic pellets, foam or stretch wrap to manufacturers or other large companies who process these materials into everyday products. These eco-friendly non-PVC alternatives utilize no heavy metals in production, contain no chloride, latex, lead or phthalates and do not outgas toxic fumes. The products are also typically photodegradable and recyclable, allowing for many generations of products to be made from the original material.

Compared with conventional petroleum-based plastics, our ecoPlastic™ and ecoFoam™ lines of products possess the following characteristics:

º Versatile - Products that are manufactured for several plastic uses and applications, from next-step materials to bio-based plastics.

º Mature - Materials that have been in research and production for years and some are protected by U.S.A. and Asian patents.

º Viable - Materials that are ready for production today and in most cases can be formulated to meet specific production needs.

º Environmentally Friendly - Materials that are easily recyclable, have less impact on the environment in production and, in many instances, are degradable.

While current practical commercially profitable applications for pure bioplastics are limited, in addition to our efforts in the non-PVC alternative plastic space, we also plan to identify current applications for pure bioplastics that have proven to possess successful commercialization opportunities. One popular use of bioplastic products is shopping bags - which can possess all of the functionality of their conventional plastic counterparts in addition to the advantages of bioplastics, including biodegradability. We currently have an agreement in place with an Asian manufacturer for the supply of such bioplastic shopping bags.

We are also working to build a brand around our ecoSolutions™ suite of services. This typically involves working with manufacturers and customers to understand their specific plastic needs and applications, and designing bioplastic or non-PVC alternatives to conventional plastics to meet such needs. With our suite of ecoSolutions™, we are targeting and servicing the broadest market of applications that address toxic and environmentally hazardous products within the plastics industry. Given the 350 billion pounds per year of plastics that are produced annually in the United States, growing at a rate of 5% per annum, we are targeting a market with enormous growth opportunities for our products. With our broader line of products, we offer environmentally conscious solutions in a way that non-diversified bioplastics companies cannot.

The materials we distribute under our ecoPlastic™, ecoFoam™ and ecoWrap™ suites are marketed as a greener and eco-friendly alternative to the conventional plastics available today. As such, we consider our core market to be the plastics industry, and all other industries associated with the plastics industry, such as the vendors who supply plastic parts, components and other raw materials to plastics manufacturers and retailers who sell to end consumers. To the extent manufacturers employ the use of plastic materials in their productions processes, we believe that an opportunity exists for marketing our products to such vendors and suppliers. In summary, we consider our primary markets to include, and intend to market our products to, (i) manufacturers of plastic products (whether plastic parts, components or final products) (ii) manufacturers who do not necessarily produce plastic products or components but nonetheless utilize plastic raw materials in their production processes, (iii) businesses that support the foregoing manufacturers by supplying plastic raw materials to them, and (iv) retailers who sell plastic products to consumers or who use plastic products in their operations.

Opportunities for Branding

The market for branded products and services with attributes of environmental responsibility and sustainability is an emerging business opportunity. We believe that manufacturers are positioning products as environmentally responsible or superior to gain a competitive advantage, as they believe consumer preferences are shifting with increasing eco-awareness. Over the past year, we have witnessed a steady increase in the number of major global companies that have begun to position themselves and their product lines as being more environmentally responsible. A recent example of this kind of corporate awareness program includes General Electric’s “Ecomagination,” a program dedicated to General Electric’s manufacture and introduction into the marketplace of eco-friendly and eco-conscious product lines.

We believe that with increasing “green” awareness on the part of the consumer, such eco-branding influences consumer behavior in two ways - first, it introduces “green” as a considered attribute or characteristic of a given product at the point of sale, and second, it enables consumers to comparison shop based on “green”. As consumers become more eco-conscious and adjust behavior to reflect such preferences, we anticipate that manufacturers and service providers will begin to seek out ways to distinguish themselves based on the “green” attributes of the products (much in the same manner as General Electric). Therefore, we view the market for environmentally friendly or “green” branded products as having stellar business potential for our ecoFoam™, ecoPlastic™, ecoWrap™ and ecoSolutions™ brands. Co-branding enables our customers to convey environmental responsibility to their end consumers by referencing our brand with their product. In addition, we anticipate that such co-branding opportunities will expand the visibility of our products in the marketplace.

We are in current discussions with customers and potential customers in the industries of toys, shoes, fitness products, shopping bags, flooring, automobiles and retail regarding the opportunities for branding. We intend to contact companies in other industries that use plastic materials regarding branding opportunities of our products as we continue to grow our business.

Customers

For the quarter ended March 31, 2009, two customers of our foam products accounted for approximately ninety-nine percent (99%) of our sales revenues. We have, however, entered into two licensing agreements related to our customers use of ecoFoam Ô and ecoPlastic Ô , respectively, and are in the process of talking with several other companies who have indicated an interest in our new products which will broaden and diversify our customer base.

Business Model

Our business model strongly emphasizes costs controls and just-in-time inventory practices. Our operations department ensures that all raw materials and other inputs are purchased to fill only firm orders. At no time in the sales cycle is inventory held unnecessarily. Thus, the probability of us holding excess goods as inventory is minimized but can exist. We are continually looking for proprietary materials or relationships to give our company a proprietary position in order to strengthen our product portfolio.

Principal Products

Generally, our suite of products and materials can be classified into one of three categories, which we market under our ecoPlastic™ , ecoFoam™ or ecoWrap™ brands:

º Correlative Products . These products are next-step solutions, making a big impact on reducing the volume of materials in production that are more damaging to the environment and personal health (including exclusion of toxic PVC). Correlative products will perform similarly to what they replace, but are more environmentally friendly by being readily recyclable and eco-friendly in their production.

º Enriched Products . These products provide material performance gains as well as “green” performance. These products will often be recyclable and gentler on the environment similar to our Correlative Products, but add benefits such as degradability and significant enhancements to the production process and final product.

º Overall Sustainability Products . This category represents products that improve the overall sustainability of the materials they are replacing by using technology that builds upon the other two categories. These advantages include biodegradability, materials made from renewable resources and a more comprehensive approach to “greening” the supply chain.

We obtain our non-PVC materials from a variety of manufacturers in Asia whom we believe hold the intellectual property rights in respect of the production of non-PVC plastics.

Intellectual Property

We have filed applications with the United States Patent and Trademark Office (“USPTO”) to register our “ecoPlastic,” “ecoFoam,” and “ecoSolutions” trademarks, in varying stages of investigation and approval by the USPTO. We are also the registered owners of 12 Internet domain names.

We do not currently possess any patentable technology relating to our operations in the bioplastics and non-PVC plastics markets. However, as we design and implement our business plan, we may acquire proprietary, protected (protectable) technology applicable to our operations. If we do acquire such technology, we presently anticipate that it will be in connection with any acquisitions or other business combinations in which we may be involved, or through joint ventures and other collaborative efforts with manufacturers in the non-PVC and bioplastics industry.

Competition

The plastics market is large, with many established players; however, it is concentrated in the conventional, non-biodegradable petroleum-based segment. Since our business plan includes offerings of plastic products with a “green” slant, we believe that our most comparable competitors include players in the eco-friendly plastics market, including manufacturers, suppliers and providers of bioplastics and similar plastics product offerings. A few conventional plastics companies, such as DuPont, have taken steps toward producing plastics based on renewable resources and with a more eco-friendly slant; such product offerings by conventional plastics companies fall within our sphere of competition. We are not aware of any competitors who specialize in supplying non-PVC plastics in the United States.

Recent Developments

None.

Critical Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported assets, liabilities, sales and expenses in the accompanying condensed financial statements. The SEC has defined that critical accounting policies are the ones that are the most important to the portrayal of the Company’s financial condition and results of operations, and those that require the most subjective and complex judgments, often employing the use of estimates about the effect of matters that are inherently uncertain. On an ongoing basis, management evaluates its estimates, including those related to revenue recognition, bad debts, impairment of long-lived assets, accrued liabilities and certain expenses. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ materially from these estimates under different assumptions, judgments or conditions. For additional information, see Part I, Item 1, “Financial Statements – Note 1 – Summary of Business and Significant Accounting Policies” of this Form 10-Q. Although we believe that our estimates, assumptions and judgments are reasonable, they are based upon information presently available. Actual results may differ significantly from these estimates under different assumptions, judgments or conditions.

Recent Accounting Pronouncements

See Note 1 to our condensed financial statements for additional information.

Results of Operations

Revenues and Gross Profit. Our revenues for the quarter ended March 31, 2009 were $117,640, representing a decrease of approximately $1,642,000 compared to revenues of $1,759,599 for the quarter ended March 31, 2008. The revenue decrease was due to no sales of wood flooring products as we have transitioned out of selling these products. Our repositioning efforts include a revamped business strategy to optimize the opportunities available in the rapidly growing eco-conscious industries, specifically targeting replacements for conventional plastics. We will continue to sell and service existing wood flooring customers, where appropriate, but do not plan to target new potential wood flooring customers. Our product mix changed between quarters from approximately 96% revenues from wood flooring and approximately 4% from foam products (consisting of yoga mats and underlayment for flooring) in first quarter of 2008 to 100% from foam products (consisting of yoga mats, ecoFoamÔ sandals and ecoFoam Ô licensing revenues) in the first quarter of 2009. The revenue dollar change was a decrease of approximately $1,681,000 from wood flooring and an increase of approximately $39,000 from foam products between quarters. As we continue to reposition our company into selling our ecoPlastic Ô, ecoFoam Ô and ecoWrap Ô lines, we anticipate product mix fluctuations to continue to occur during 2009.

Our gross profit for the quarter ended March 31, 2009 was $31,178, representing a decrease of approximately $352,000 compared to $383,393 for the quarter ended March 31, 2008. Gross profit for the first quarter of 2009 as a percentage of revenues was 26.5% compared to 21.8% for the first quarter of 2008. The dollar decrease in gross profit resulted from the lower sales for the quarter. The gross margin rate increase corresponded to licensing revenues related to the use of our ecoFoam Ô brand where there is no offsetting cost of goods sold.

Operating Expenses. Our selling, general and administrative expenses for the quarter ended March 31, 2009 were $466,533, representing an increase of approximately $40,000 or 9.3% compared to $426,903 for the quarter ended March 31, 2008. As a percentage of revenues, selling, general and administrative expenses were 396.6% for the first quarter of 2009 compared to 24.3% for the first quarter of 2008. Approximately $181,000 of this increase, an increase of 945.4%, was due to expense for outside consultants, including cash and non-cash stock based compensation, due to a higher quantity and value of stock and stock options issued for services under Statement of Financial Accounting Standard No. 123R (SFAS 123(R)). Offsetting this increase was a decrease of approximately $91,000, a decrease of 35.3%, for lower payroll and benefits expense, including stock based compensation, from fewer employee positions reduced from 12 to 7.5 full time equivalents and reduced sales commissions due to lower sales. Lower expenses occurred in travel of approximately $35,000 or 70.5% as we took fewer trips to Asia, and product samples and postage of approximately $14,000 or 90.6% as fewer product sample shipments occurred during the quarter.

Other Expenses. Our other expenses consist of net interest expense. For the quarter ended March 31, 2009, other expenses were $109,458, representing an increase of approximately $10,000 or 10.1% compared to $99,450 for the quarter ended March 31, 2008. This increase was primarily due to additional interest expense incurred on higher cumulative borrowings provided through loans from our President and Chief Executive Officer, William Patridge of approximately $22,000, partially offset by lower interest expense of approximately $11,000 for amortization of the beneficial conversion feature discount on convertible promissory notes between the quarters.

Liquidity and Capital Resources

As of March 31, 2009 we had $16,225 in cash and a working capital deficit of $731,849, as compared with $12,906 in cash at December 31, 2008 and a working capital deficit of $625,239 and $243,417 in cash at March 31, 2008 and a working capital deficit of $1,062,338. Cash used to fund operating activities for the first quarter of 2009 was $181,147 compared to $281,418 for the first quarter of 2008, representing a decrease of approximately $100,000. This decrease resulted primarily from lower selling, general and administrative cash expenses and lower payments on accounts payable, partially offset by lower net sales and gross profits in 2009.

Cash provided by investing activities of $21,788 for the first quarter of 2009 was approximately $28,000 higher than cash used for investing activities in the amount of $6,220 for the first quarter of 2008. This increase was due to a sale of a company automobile this year and no capital additions this year. Cash provided by financing activities of $162,678 for the first quarter of 2009 decreased by approximately $358,000 compared to $520,300 for the first quarter of 2008. This decrease was due to last year’s net proceeds raised from the sale of 4,345,320 shares of our common stock in an offering under Rule 504 of Regulation D promulgated under the Securities Act of 1933 (as amended) and an additional private placement common stock sale of 300,000 shares, totaling combined net proceeds of approximately $568,000. This amount was partially offset by higher net borrowings on notes payable of approximately $210,000 this year.

Since our inception, we have financed our operations primarily through sales of our common stock, issuance of convertible promissory notes, outside loans, and loans and convertible debt provided by our President and Chief Executive Officer. We have no credit lines or facilities as of March 31, 2009, nor have we ever had a credit facility since our inception. We anticipate requiring additional cash to fund our operations in 2009. We anticipate this funding to come from loans from William Patridge, debt bridge financing or loans of up to $2,000,000 during the first half of 2009, and additional debt or equity financing in the second half of 2009 of $2,000,000 to $7,000,000. Any such sale of common stock or other securities will lead to further dilution of the equity ownership of existing holders of our common stock. The proceeds from additional financing anticipated will be required to meet our current liabilities of $904,433 as of March 31, 2009. Of this amount, $388,870 is due to William Patridge on June 30, 2009. Our proceeds from financing will also need to pay non-cancelable lease commitments of $23,851 during 2009, pay down other current liabilities of $491,712 as of March 31, 2009 and to fund our monthly operating activities during 2009.

We currently have no material commitments for capital expenditures.

Because of our operating losses and negative cash flows incurred since inception, our independent auditors have included an explanatory paragraph in its report on our financial statements for 2008 and 2007 expressing doubt regarding our ability to continue as a going concern. Our ability to fund our liquidity and working capital needs in the near future will be dependent upon successful execution of our current business strategy and repositioning efforts. We will have to obtain significant additional capital through the sale of additional equity and/or debt securities, and from other financing activities, such as strategic partnerships, in order to execute our business plan. The economic downturn and the current challenges facing the financial markets may make it difficult for us to raise capital, or to raise capital on terms acceptable to the Company. Therefore, there is no assurance that we will obtain any outside financing, or that we will do so on favorable terms, and no assurance can be given that we will have sufficient capital available to operate beyond May 2009 or that we will be able to affect our new business plan in the non-PVC and bioplastics market.

We have no off-balance sheet arrangements as defined in Item 303(a)(4) of Regulation S-K.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK .

Not applicable.

ITEM 4T. CONTROLS AND PROCEDURES.

Disclosure Controls and Procedures

Our management, with the participation of the Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) of the Securities and Exchange Act of 1934, as amended) as of the period covered by this quarterly report. Based upon this evaluation, management has concluded that the Company’s disclosure controls and procedures are effective at a reasonable assurance level in ensuring that information required to be disclosed by us in our reports is recorded, processed, summarized and reported within the required time periods. The foregoing conclusion is based, in part, on the fact that we are a small public company.

Management’s Report on Internal Control over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over our financial reporting. Internal control over financial reporting is a process to provide reasonable assurance regarding the reliability of our financial reporting for external purposes in accordance with accounting principles generally accepted in the United States. Internal control over financial reporting includes policies and procedures that: (i) pertain to maintaining records that in reasonable detail accurately and fairly reflect our transactions; (ii) provide reasonable assurance that transactions are recorded as necessary for preparation of our financial statements and that receipts and expenditures of company assets are made in accordance with management authorization; (iii) provide reasonable assurance that unauthorized acquisition, use or disposition of company assets that could have a material effect on our financial statements would be prevented or detected on a timely basis; and (iv) such information is accumulated and communicated to our management, including William Patridge, our Chief Executive Officer, and Jane Emkes, our Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Because of its inherent limitations, internal control over financial reporting is not intended to provide absolute assurance that a misstatement of our financial statements would be prevented or detected.

For the quarter ended March 31, 2009, our Chief Executive Officer and Chief Financial Officer evaluated the effectiveness of our internal controls over financial reporting pursuant to the Exchange Act Rule 13a-14. Based on their evaluation, we have concluded that as of the end of the period covered by this quarterly report, our internal controls over financial reporting are effective at a reasonable assurance level in ensuring that information required to be disclosed by us in our reports is recorded, processed, summarized and reported within the required time periods. The foregoing conclusion is based, in part, on the fact that we are a small public company in the development stage of our new business operations.

Changes in Internal Controls. There was no change in our internal control over financial reporting during the quarter ended March 31, 2009, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II

ITEM 1. LEGAL PROCEEDINGS .

There have been no material developments with respect to any of the legal proceedings described in our previously filed Annual Report on Form 10-K for the fiscal year ended December 31, 2008.

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

During the quarter covered by this quarterly report, the Company sold equity securities and such sales were not registered under the Securities Act of 1933. For additional details regarding such sales of equity securities, please refer to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on April 22, 2009.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES .

None.

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

None.

ITEM 5. OTHER INFORMATION.

None.

ITEM 6. EXHIBITS.

10.1	Convertible Promissory Note, dated as of March 31, 2009, issued by
	ecoSolutions Intl in favor of William Patridge*
31.1	Rule 13a-14(a) Certification, as adopted pursuant to Section 302 of the
	Sarbanes-Oxley Act of 2002 *
31.2	Rule 13a-14(a) Certification, as adopted pursuant to Section 302 of the
	Sarbanes-Oxley Act of 2002 *
32.1	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
	Section 906 of the Sarbanes-Oxley Act of 2002*
32.2	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
	Section 906 of the Sarbanes-Oxley Act of 2002*

*Filed herewith.

SIGNATURES

In accordance with Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	ECOSOLUTIONS INTL

Date: May 14, 2009	By:	/s/ William Patridge
		William Patridge Chief Executive Officer

ecoSolutions Intl 10-Q