UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 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 January 31, 2011

[ ]

Transition Report pursuant to 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period ___________________to

Commission File Number 0-21255

IAS ENERGY, INC.

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


Oregon		91-1063549
(State or other jurisdiction of incorporation or		(IRS Employer Identification No.)
organization)

#240 – 11780 Hammersmith Way
Richmond, BC, Canada		V7A 5A9
(Address of principal executive offices)		(Postal or Zip Code)

Issuer’s telephone number, including area code:		(604) 278-5996

(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.

Yes x No o

Indicate by check mark whether the registrant has submitted electronically and posted on its Web site, if any, every Interactive Date File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes o No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definition of ‘‘accelerated filer and large accelerated filer’’ in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer

Accelerated filer

Non-accelerated filer

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 o No x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 71,898,062 common shares outstanding as of March 31, 2010.

PART I. FINANCIAL INFORMATION

Item 1.

Financial Statements

Our unaudited interim consolidated financial statements follow. These statements are presented in U.S. dollars and are prepared in accordance with generally accepted accounting principles in the United States.

F-1

IAS Energy, Inc.

(A Development Stage Company)

Interim Consolidated Financial Statements

(Expressed in U.S. Dollars)
(Unaudited)

January 31, 2011

Reader’s Note:

The unaudited interim consolidated financial statements of IAS Energy, Inc. (the “Company”) for the nine month period ended January 31, 2011 have been prepared by management and have not been reviewed by the Company’s auditors.

F-2

IAS Energy, Inc. and Subsidiary

(A Development Stage Company)

Consolidated Balance Sheets


	January 31, 2011	April 30, 2010
	(Unaudited)
Assets
Current Assets
Cash	$ 572	$ 72,322
Available-for-sale securities	11,282	15,102
Accounts receivable and prepaid expenses	3,947	17,842
Due from related parties	14,426	1,630
Total Current Assets	30,227	106,896

Property and equipment	366	585

Total Assets	$ 30,593	$ 107,481

Liabilities and Stockholders’ Deficit
Current Liabilities
Accounts payable	$ 92,148	84,359
Accrued liabilities	6,480	7,442
Due to related parties	1,753,839	1,717,434
Debentures	25,000	25,000
Total Liabilities	1,877,467	1,834,235

Stockholders’ Deficit
Preferred Stock, 50,000,000 shares authorized, none issued
and outstanding	-	-
Common stock and additional paid-in capital in excess of par:
Class A voting, 100,000,000 common shares authorized
without par value, 71,898,062 and 71,403,562 shares issued and outstanding, respectively	13,418,608	13,362,158
Class B non-voting, 100,000,000 common shares authorized
without par value, none issued and outstanding	-	-
Accumulated other comprehensive income (loss)	4,487	1,985
Deficit accumulated during the development stage	(15,269,969)	(15,090,897)
Total Stockholders’ Deficit	(1,846,874)	(1,726,754)

Total Liabilities and Stockholders’ Deficit	$ 30,593	$ 107,481

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

F-3

IAS Energy, Inc. and Subsidiary

(A Development Stage Company)

Consolidated Statements of Operations

(Unaudited)


					December 13, 1994
	Three Months Ended		Nine Months Ended		(Inception)
	January 31,	January 31,	January 31,	January 31,	through
	2011	2010	2011	2010	January 31, 2011
Revenue
Oil and natural gas sales	$ 16,498	$ 7,427	$ 43,627	$ 13,876	$ 165,209
Service revenue	2,401	-	22,350	-	30,076
Total Revenue	18,899	7,427	65,977	13,876	195,285

Operating expenses
Depletion and depreciation	-	-	-	-	5,897
Lease operating expense	1,314	-	13,078	20,355	37,055
License	-	-	-	-	16,500
Office and administrative	55,336	27,823	180,480	170,501	1,295,152
Professional fees	4,613	-	41,306	55,534	742,388
Transfer agent and regulatory	1,877	2,257	10,913	6,989	53,961
Gain on write-off of payables	-	-	-	-	(63,487)
Loss from equity investment	-	-	-	-	76,535
Impairment – goodwill	-	-	-	-	7,018,592
Impairment – petroleum interest	-	2,467	-	53,462	384,106
Total Operating Expenses	63,140	32,547	245,777	306,841	9,503,559

Loss from operations	(44,241)	(25,120)	(179,800)	(292,965)	(9,371,414)

Other Income (Expenses)
Gain on sale of available-for-sale securities	-	17,729	2,369	23,433	125,870
Interest expense	(547)	(547)	(1,641)	(1,641)	(19,443)
Gain on license obligation	-	-	-	-	1,000
Gain (loss) on settlement of obligation to issue shares	-	-	-	-	48,750

Loss before discontinued operations	(44,788)	(7,938)	(179,072)	(271,173)	(9,215,237)
Discontinued operations	-	-	-	-	(6,054,732)

Net loss	(44,788)	(7,938)	(179,072)	(271,173)	(15,269,969)

Other comprehensive income (loss)
Unrealized gain (loss) on available-for-sale securities	2,548	3,874	2,502	65,994	128,471
Reclassification adjustment for gains included in net loss	-	-	-	-	(122,320)
Loss on foreign currency translation	-	(7,108)	-	(9,292)	(1,664)
Total other comprehensive income (loss)	2,548		2,502		4,487

Comprehensive loss	$ (42,240)	$ (11,172)	$ (176,570)	$ (214,471)	$ (15,265,482)

Loss Per Share – Basic and Diluted	$ (0.00)	$ (0.000)	$ (0.00)	$ (0.004)

Weighted average number of class A common shares
Outstanding – basic and diluted	71,898,000	70,438,562	71,698,000	70,339,190

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

F-4

IAS Energy, Inc. and Subsidiary

(A Development Stage Company)

Consolidated Statements of Cash Flows

(Unaudited)


			December 13, 1994
	Nine Months Ended		(Inception)
	January 31,		through
	2011	2010	January 31, 2011
Cash flows from operating activities:
Net loss	$ (179,072)	$ (271,173)	$ (15,269,969)
Adjustments to reconcile loss to net cash used by
operating activities
Assets written-off	-	-	455,957
Bad debt expense	-	-	9,649
Depreciation and depletion	219	-	193,402
Gain on shares cancelled	-	-	(10)
Gain on sale of available-for-sale securities	(2,369)	(23,433)	(125,870)
Gain on write-off of payables	-	-	(549,562)
Shares issued for services	-	-	630,125
Shares issued for convertible debenture interest	-	-	18,786
Loss on settlement of obligation to issue shares	-	-	(53,750)
Shares issued to settle obligation	-	-	107,500
Warrants issued for services	-	-	18,681
Stock-based compensation	-	71,946	349,003
Loss from equity investment	-	-	76,535
Impairment loss on oil and gas properties	-	33,107	381,533
Impairment loss on goodwill	-	-	7,018,592
Change in operating assets and liabilities
Prepaid expenses and accounts receivable	13,895	7,731	64,273
Inventory	-	-	(28,615)
Accrued revenues from oil and gas properties	-	-	(9,649)
Accounts payable and accrued liabilities	6,827	46,243	524,876
Due from related parties	(12,796)	-	104,773
Net Cash Used in Operating Activities	(173,296)	(135,579)	(6,083,740)

Cash flows from investing activities:
Acquisition, net of cash received	-	-	(350,000)
Cash acquired from Power Telecom	-	-	13,960
Purchase of property and equipment	-	-	(100,211)
Purchase of license	-	-	(250,000)
Increase in patent protection costs	-	-	(266,822)
Investment in oil and gas properties	-	-	(555,000)
Recoveries to oil and gas properties	-	-	277,500
Proceeds from sale of available-for-sale securities	8,737	121,750	256,079
Purchase of securities	-	-	(115,878)
Net Cash Provided by (Used in) Investing Activities	8,737	121,750	(1,090,372)

Cash flows from financing activities:
Advances from related parties	36,405	35,711	2,288,152
Bank indebtedness (repayment)	-	(6,755)	-
Proceeds from issuance of common stock	56,450	7,500	4,493,277
Proceeds from convertible debentures	-	-	400,000
Proceeds from common stock subscribed	-	-	4,000
Net Cash Provided by Financing Activities	91,855	36,456	7,185,429

Effect of exchange rate changes on cash	(46)	(9,292)	(10,745)

Net increase (decrease) in cash	(71,750)	13,335	572
Cash, beginning of year	72,322	275	-
Cash, end of year	$ 572	$ 13,610	$ 572

Supplemental Disclosures:
Interest paid	$ 1,094	$ -	$ 5,907
Income tax paid	-	-	-

Non-cash investing and financing activities:
Issuance of common stock to settle related party debt	$ -	$ -	$ 892,741
and accrued interest converted	-	-	394,661
Issuance of common stock for technology	-	-	1
Issuance of common stock for revenue interest	-	33,108	53,425
Net liabilities assumed from acquisition	-	-	267,653
Issuance of common stock for investment	-	-	6,477,474
Unrealized gain on available-for-sale securities	$ -	$ -	$ 3,394

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

F-6

IAS Energy, Inc. and Subsidiary

(A Development Stage Company)

Consolidated Statements of Stockholders’ Equity (Deficit)

(Unaudited)


					Deficit
	Class A Common Stock				Accumulated	Accumulated		Total
	and Additional		Obligation		During the	Other		Stockholders’
	Paid-in Capital		to Issue		Development	Comprehensive		Equity
	Shares	Amount		Shares	Stage		Income (Loss)		(Deficit)

Balance – April 30, 2008	58,408,039	$ 10,770,353		$ 147,338	$ (7,188,362)		$ 36,650		$ 3,765,979
Reclassification adjustment for gains included in net loss	-	(121,763)		-	121,763		-		-
Settlement of obligation to issue shares	505,778	147,338		(147,338)	-		-		-
Shares issued for cash	100,000	20,000		-	-		-		20,000
Shares issued pursuant to option exercise	50,000	2,500		-	-		-		2,500
Shares issued pursuant to exercise of option to purchase
investment in Power Telecom (Note 3)	11,000,000	2,197,001		-	-		-		2,197,001
Stock-based compensation	-	135,630		-	-		-		135,630
Net loss for the year	-	-		-	(659,111)		-		(659,111)
Foreign company translation adjustment	-	-		-	-		(1,664)		(1,664)
Unrealized loss on available-for-sale securities	-	-		-	-		(100,824)		(100,824)

Balance – April 30, 2009	70,063,817	13,151,059		-	(7,725,710)		(65,838)		5,359,511
Shares issued pursuant to oil revenue agreement	224,745	33,107		-	-		-		33,107
Shares issued pursuant to option exercise	150,000	7,500		-	-		-		7,500
Option and warrant expense	-	73,992		-	-		-		73,992
Shares issued for cash	965,000	96,500		-	-		-		96,500
Net loss for the period	-	-		-	(7,365,187)		-		(7,365,187)
Unrealized gain on available-for-sale securities	-	-		-	-		67,823		67,823

Balance – April 30, 2010	71,403,562	13,362,158		-	(15,090,897)		1,985		(1,726,754)
Shares issued for cash	494,500	49,450		-	-		-		49,450
Share issuance cost	-	(3,000)		-	-		-		(3,000)
Subscription received	-	10,000		-	-		-		10,000
Net loss for the period	-	-		-	(179,072)		-		(179,072)
Unrealized loss on available-for-sale securities	-	-		-	-		2,502		2,502

Balance – January 31, 2011	71,898,062	$ 13,418,608		$ -	$ (15,269,969)		$ 4,487		$ (1,846,874)

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

F-7

IAS Energy, Inc. and Subsidiary

(A Development Stage Company)

Notes to the Interim Consolidated Financial Statements

(Unaudited)

Note 1 - Nature of Business and Basis of Presentation

IAS Energy, Inc. was incorporated on December 13, 1994 pursuant to the Laws of the State of Oregon. The Company is a Development Stage Company. On May 24, 2007, the Company changed its name to IAS Energy, Inc. The Company has minimal oil and gas revenues and is acquiring and developing a video-sharing website, as described in Note 3.

These consolidated financial statements include the accounts of the Company and its 60% owned subsidiary, Power Telecom Limited (“Power Telecom”), since the date the Company acquired control on September 3, 2008.

In a development stage company, management devotes most of its activities to establishing a new business, including raising capital to acquire interest in the website. Planned principle activities have not yet produced any revenues and the Company has suffered operating losses as is normal in development stage companies.

Basis of accounting and principles of consolidation

These unaudited interim consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States and are expressed in U.S. dollars for interim financial information using the same accounting policies and methods of application as the audited consolidated financial statements of the Company for the year ended April 30, 2010. These unaudited interim consolidated financial statements do not include all the information and note disclosures required by generally accepted accounting principles for annual financial statements of the Company and should be read in conjunction with the audited consolidated financial statements of the Company as at April 30, 2010. In the opinion of management, all adjustments considered necessary for fair presentation have been included in these financial statements. Interim results are not necessarily indicative of the results expected for the fiscal year.

Note 2 - Going Concern

The Company incurred a net loss of $179,072 and $271,173 during the nine months ended January 31, 2011 and 2010, respectively and at January 31, 2011 had an accumulated deficit of $15,269,969 since its inception. The Company also has working capital deficit of $1,847,240 at January 31, 2011. These factors raise substantial doubt about the ability of the Company to continue as a going concern. The consolidated financial statements have been prepared on a going basis and do not include any adjustments that might result from the outcome of this uncertainty.

At January 31, 2011, the Company has suffered losses from development stage activities to date. Although management is currently attempting to implement its business plan, and is seeking additional sources of equity or debt financing, there is no assurance these activities will be successful.

Note 3 - Acquisition

On November 26, 2007, the Company entered into an Equity Share Purchase Agreement (the “Agreement”) with all of the stockholders of Power Telecom, a corporation organized under the laws of Hong Kong. Pursuant to the Agreement the Company, at its option, has the right to purchase all of the issued and outstanding shares of capital stock of Power Telecom. The consideration to be paid under the Agreement consists of 55,000,000 Class A shares of common stock of the Company and the Company is required to make cash payments to Power Telecom totaling $650,000 towards the further development of Power Telecom’s business. Power Telecom owns the rights to the Chinese website www.video1314.com, an information sharing website. The Company paid a non-refundable deposit of $50,000 to Power Telecom upon execution of the Agreement and an additional $300,000 capital contribution. Pursuant to the Agreement, the Company received a series of irrevocable exclusive options to purchase up to 100% of the shares of Power Telecom in stages as described below:

(i)

To purchase an initial 20% interest in Power Telecom, the Company must issue 10,000,000 Class A common shares, pay $50,000 to Power Telecom and issue 1,000,000 Class A common shares as a finder’s fee. The Company exercised this option on November 26, 2007. The 11,000,000 common shares issued were recorded at a fair value of $1,880,032.

F-8

(ii)

To purchase an additional 20% interest in Power Telecom, the Company must issue an additional 10,000,000 Class A common shares, pay a further $100,000 to Power Telecom, and issue an additional 1,000,000 Class A common shares as a finder’s fee. The Company exercised this option on March 5, 2008. The 11,000,000 common shares issued were recorded at a fair value of $2,400,441.

(iii)

To purchase an additional 20% interest in Power Telecom, the Company must issue an additional 10,000,000 Class A common shares, pay a further $150,000 to Power Telecom, and issue an additional 1,000,000 Class A common shares as a finder’s fee. The Company exercised this option on September 3, 2008. The 11,000,000 common shares issued were recorded at a fair value of $2,197,001.

(iv)

(v)

In accordance with FASB ASC 805, acquisitions of a controlling interest are accounted for under the purchase method of accounting. Under the purchase method of accounting, assets acquired and liabilities assumed are recorded at their estimated fair values. Goodwill is recorded to the extent the purchase price consideration, including certain acquisition and closing costs, exceeds the fair value of the net identifiable assets acquired at the date of the acquisition.

Effective September 3, 2008, the Company owned a 60% interest in Power Telecom by having issued 33,000,000 Class A shares of common stock of the Company and making an equity contribution of $350,000 to Power Telecom for working capital purposes.

Up until September 2, 2008, the Company’s 40% investment in Power Telecom was accounted for using the equity method with the Company’s share of losses being $76,535 since acquisition. Upon purchasing the 60% interest, the acquisition was accounted for using the purchase method and the consolidated statements of operations and cash flows include the results of operations of Power Telecom from September 3, 2008 to April 30, 2009. The losses applicable to the non-controlling interest of Power Telecom have been allocated only to the Company’s interest as the losses exceed the non-controlling interest in the common shares of Power Telecom.

The purchase price of the 60% interest of Power Telecom is detailed as follows:

Capital contribution in cash

$ 350,000

Fair value of shares of IAS’s common stock:

First tranche of 11 million shares

1,880,032

Second Tranche of 11 million shares

2,400,441

Third tranche of 11 million shares

2,197,001

Loss in equity investment prior to September 3, 2008

(76,537)

Total Purchase Price

$ 6,750,937

The acquisition has been accounted for in accordance with the provision of FASB ASC 805. The total purchase price was allocated to the net tangible assets based on the estimated fair values. The final allocation of the purchase price is as follows:

F-9


Assets purchased:
Cash and cash equivalents	$ 13,960
Receivables, prepaids and other current assets	2,562
Goodwill	7,018,592

Total assets acquired	7,035,114

Liabilities assumed:
Accounts payable and accrued liabilities	(284,177)

Total liabilities assumed	(284,177)

Purchase price	$ 6,750,937

Goodwill represents the excess of the purchase price over the estimated fair value of the assets acquired net of the fair value of liabilities assumed in an acquisition. FASB ASC 350 requires that intangible assets with indefinite lives, including goodwill, be evaluated on an annual basis for impairment or more frequently if an event occurs or circumstances change that could potentially result in impairment. The goodwill was tested by performing the two-step impairment test. For the year ended April 30, 2009, no impairment was recorded. During the year ended April 30, 2010, impairment was recorded and the full amount of goodwill of $7,018,592 was written-off.

The first tranche of 11,000,000 shares issued on November 26, 2007, used the five-day average trading price of $0.23, before the announcement was made 23 October 2007, in the calculation of the fair value.

The second tranche of 11,000,000 shares issued on March 5, 2008, used the five-day average trading price of $0.28 in the calculation of the fair value.

The third tranche of 11,000,000 shares issued on July 30, 2008, used the five-day average trading price of $0.25 in the calculation of the fair value.

Since these shares have trading restrictions, the aggregate fair value was calculated using the above prices, over the estimated time (based on trading restrictions) to achieve free trading status, using a 10% discount factor.

Pro forma information

The following consolidated pro forma financial information presents the combined results of operations of the Company and Power Telecom for the year ended April 30, 2009 as if the acquisitions had occurred at May 1, 2008, including the issuance of the Company’s common shares as consideration for the acquisition of Power Telecom.


	Consolidated Pro Forma
	Years Ended
	April 30,
	2009	2008

Revenues	$ 38,346	$ 26,300
Net loss	(748,576)	(1,261,652)
Basic and diluted loss per common share	$ (0.01)	$ (0.03)

The amounts of revenue and net loss of Power Telecom since the acquisition date included in the consolidated income statement for the year ended April 30, 2009 are $7,726 and $166,395, respectively.

The consolidated pro forma financial information does not include adjustments to remove certain private company expenses, which may not be incurred in future periods. Similarly, the unaudited consolidated pro forma financial information does not include adjustments for additional expenses, such as rent, insurance, and other expenses that would have been incurred subsequent to the acquisition date. The unaudited consolidated pro forma financial information does not necessarily reflect the results of operations that would have occurred had the Company and Power Telecom been a single entity during these periods.

F-10

As part of the Option Agreement, the Company granted 1,000,000 stock options as stock based compensation to the subsidiary’s key employees to purchase 1,000,000 Class A common shares of the Company at a price of $0.33 per share for a period of five years. The 1,000,000 stock options were recorded at a fair value of $267,954. The options vest as to 12.5% upon grant date and an additional 12.5% every 90 days thereafter.

Change in control

Per the Option Agreement dated November 26, 2007 (Option Agreement) between the Company, Mr. Samuel Kam, a businessman and the shareholders of Biotonus Clinique Bon Port (Hong Kong) Limited, who collectively owns 100% of the issued and outstanding shares of Power Telecom, upon the exercise of the fourth option as described above, Mr. Samuel Kam and the shareholders of Biotonus Clinique Bon Port (Hong Kong) Limited will own the majority shares of common stock of the Company.

In addition, pursuant to the Option Agreement, upon the Company fully exercising the options described above, the Board of Directors of the Company shall consist of five persons, three to be nominated by Mr. Samuel Kam and the shareholders of Biotonus Clinique Bon Port (Hong Kong) Limited and two to be nominated by John Robertson, the current President of the Company. From the Option Agreement until the earlier of the date that the Company has fully exercised the options and December 31, 2013, Mr. Samuel Kam and the shareholders of Biotonus Clinique Bon Port (Hong Kong) Limited covenant to vote their shares of the Company in favor of the composition of the Board of Directors of the Company as John Robertson, the current President of IAS, shall so direct in writing. Thus the control of the company will remain with Mr. John Robertson at least before December 31, 2013.

As at January 31, 2011 and the date of these financial statements the Company does not intend to exercise options to acquire further interest in Power Telecom.

Note 4 - Asset Retirement Obligation

The total future asset retirement obligation was estimated by management based on the Company’s net ownership interest in all wells and facilities, estimated costs to reclaim and abandon the wells and facilities, and the estimated timing of the costs to be incurred in future periods. Although the Company’s wells are producing, the Company has estimated the total ARO to be $Nil As of January 31, 2011 and April 30, 2010, because the costs to be incurred in shutting down the wells are estimated to be minimal.

Note 5 - Related Party Transactions

Related party transactions were in the normal course of operations and are recorded at their exchange amounts. Amounts due to and from related parties are unsecured, non-interest bearing and due on demand. Related parties consist of companies that have common directors and/or officers with the Company and companies that are controlled by a significant shareholder of the Company.

As at January 31, 2011, the Company had an amounts receivable from related companies of $14,426 (April 30, 2010 - $1,630). The amount comprised of advances and/or expenses paid by the Company. The amounts are non-interest bearing, unsecured and without specific terms of repayment.

As at January 31, 2011, the Company owed related companies $1,753,839 (April 30, 2010- $1,717,434) comprised of advances and/or expenses paid on behalf of the Company. The amounts are non-interest bearing, unsecured and without specific terms of repayment.

During the nine months ended January 31, 2011, the Company accrued fees to a professional law firm in which a partner of the firm is an officer and director of the Company for legal fees of $1,125 (2010 - $188).

On April 7, 2008, the Company entered into an agreement with Teryl Resources Corp (“Teryl”), a related company, to sell to Teryl the remaining 40% working interest in the three gas wells located in Know and Laurel Counties, Kentucky. In consideration, the Company received an initial payment of $25,000 and the balance will be determined after an independent valuation report prepared by a qualified petroleum geologist. During the year ended April 30, 2009 both parties agreed to indefinitely suspend the agreement due to the characteristics of the well and the low production volumes. As at January 31, 2011 and the date of this filing the sale was not completed. As such, the $25,000 paid to the Company during the year ended April 30, 2009 was recorded as due to Teryl.

F-11

During the nine months ended January 31, 2011 the Company incurred $120,463 (HK$912,600) (2010 - $117,725; HK$912,600) management fees to the general manager of Power Telecom who is a shareholder owning more than 10% of the Company’s outstanding Class A common shares.

During the nine months ended January 31, 2011 the Company incurred $6,367 (2010 - $Nil) management fees to the president of the Company.

The Company shares office space with companies with related directors and officers. The Company occupied this space rent-free during the nine months ended January 31, 2011 and 2009.

Note 6 - Debentures

As at January 31, 2011 and April 30, 2010, the Company had two notes outstanding with an aggregate principal amount of $25,000. The notes are unsecured and bear interest at 8.75% per annum. The notes are in default as they originally matured on June 15, 2000. During the nine months ended January 31, 2011 the Company accrued and paid interest expense of $1,641 (2010 - $1,641) on the two notes.

Note 7 - Available-For-Sale-Securities

The available-for-sale securities have been accounted for using the fair value method. The Company recorded gain of $2,369 (2010- $23,433) on sale of available for sale securities during the nine months ended January 31, 2011. Cost and fair value of the securities are as follows:


Nine Months Ended January 31, 2011			Nine Months Ended January 31, 2010
Cost	Unrealized Gain	Fair Value	Cost	Unrealized Gain	Fair Value

$6,795	$4,487	$11,282	$21,565	$7,877	$29,442

Fair Value Measurements

The Company values its marketable securities held for sale under FASB ASC 820 which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements.

As defined in ASC 820, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable. The Company classifies fair value balances based on the observability of those inputs. ASC 820 establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurement).

The three levels of the fair value hierarchy defined by ASC 820 are as follows:

Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of financial instruments such as exchange-traded derivatives, marketable securities and listed equities.

Level 2 – Pricing inputs are other than quoted prices in active markets included in level 1, which are either directly or indirectly observable as of the reported date. Level 2 includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors, and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are

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supported by observable levels at which transactions are executed in the marketplace. Instruments in this category generally include non-exchange-traded derivatives such as commodity swaps, interest rate swaps, options and collars.

Level 3 – Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value.

The Company uses Level 1 to value its marketable securities available for sale.

The following table sets forth by level with the fair value hierarchy the Company’s financial assets and liabilities measured at fair value on January 31, 2011 and April 30, 2010:


January 31, 2011:	Level 1	Level 2	Level 3	Total
Assets
Marketable securities available for sale	$ 11,282	$ -	$ -	$ 11,282
Liabilities
None	$ -	$ -	$ -	$ -

April 30, 2010:	Level 1	Level 2	Level 3	Total
Assets
Marketable securities held for sale	$ 15,102	$ -	$ -	$ 15,102
Liabilities
None	$ -	$ -	$ -	$ -

Note 8 - Common Stock

On July 31, 2009, the Company issued 224,745 Class A common shares to a private company controlled by the President of the Company to fulfill its obligation per agreement. The fair value of the shares of $33,107 was recorded as a loss on the impairment of petroleum interest during the year ended April 30, 2010.

During the year ended April 30, 2010, the Company issued 150,000 Class A common shares at $0.05 per share upon the exercise of stock options for proceeds of $7,500.

During the year ended April 30, 2010, the Company sold 965,000 units under a private placement for cash proceeds of $96,500. Each unit consisted of one Class A common shares and one common stock warrant. The warrants are exercisable at $0.15 per share and have a term of one year.

On June 2, 2010 the Company issued 374,500 units pursuant to a private placement for total proceeds of $37,450. Each unit consisted of one common share and one share purchase warrant to purchase one additional Common Share at a price of $0.15 per share, exercisable on or before June 1, 2011.

On July 30, 2010 the Company issued 120,000 units pursuant to a private placement for total proceeds of $12,000. Each unit consisted of one common share and one share purchase warrant to purchase one additional common share at a price of $0.15 per share, exercisable on or before July 29, 2011.

During the nine months ended January 31, 2011 the Company received $10,000 as subscription for private placement of 100,000 shares of the Company’s common stock at $0.10 per share. The related common shares were issued on March 17, 2011.

Note 9 – Common Stock Options

The Company has a Stock Option Plan to issue up to 2,500,000 Class A common shares to certain key directors and employees, approved and registered October 2, 1996, as amended. Pursuant to the Plan, the Company has granted stock options to certain directors and employees.

On October 22, 2007, the Company approved the 2007 Stock Option Plan to issue up to 2,000,000 Class A common shares to directors and employees and registered them on Form S-8 with the Securities and Exchange Commission.

On April 19, 2010, the Company granted 50,000 stock options from the 2007 Stock Option Plan to an employee exercisable

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at $0.20 per share, through April 19, 2015. The fair value of options was estimated to be $8,185 on the date of grant using the Black-Scholes option pricing model using the following weighted average assumptions: risk free interest rate of 2.54%, expected volatility of 187%, an expected option life of 5 years and no expected dividends.

On February 12, 2009, the Company granted 50,000 stock options from the 2007 Stock Option Plan to an employee exercisable at $0.20 per share, through February 12, 2014. The fair value of options was estimated to be $618 on the date of grant using the Black-Scholes option pricing model using the following weighted average assumptions: risk free interest rate of 1.28%, expected volatility of 185%, an expected option life of 2.5 years and no expected dividends.

These options granted on April 19, 2010 and February 12, 2009 vest as follows:

[i]

25% of the options vest upon granting of the option; such initial vest is referred to as the “First Vesting”;

[ii]

The second 25% of the options vest 90 days from the date of exercise of the First Vesting; such second vesting is referred to as the “Second Vesting”;

[iii]

The third 25% of the options vest 90 days from the date of exercise of the Second Vesting; such third vesting is referred to as the “Third Vesting”;

[iv]

The fourth and final 25% of the options vest 90 days from the date of the exercise of the Third Vesting; and

[v]

The options expire 60 months from the date of grant.

On April 1, 2009, the Company granted 200,000 common stock options from the 2007 Stock Option Plan to a consultant exercisable at $0.05 per share, up to April 1, 2010. The fair value of options was estimated to be $6,610 on the date of grant using the Black-Scholes option pricing model using the following weighted average assumptions: risk free interest rate of 0.41%, expected volatility of 224.44%, an expected option life of 0.5 years and no expected dividends.

These options vest as follows:

[i]

25% of the options vest upon granting of the option; such initial vest is referred to as the “First Vesting”;

[ii]

The second 25% of the options vest 30 days from the date of exercise of the First Vesting; such second vesting is referred to as the “Second Vesting”;

[iii]

The third 25% of the options vest 30 days from the date of exercise of the Second Vesting; such third vesting is referred to as the “Third Vesting”;

[iv]

The fourth and final 25% of the options vest 30 days from the date of the exercise of the Third Vesting; and

[v]

The options expire 12 months from the date of grant.

During the nine months ended January 31, 2011 and 2010, the Company recorded stock-based compensation of $nil and $71,946, respectively. At January 31, 2011 and April 30, 2010 the Company had $207,544 unrecognized compensation cost related to non-vested stock options, which will be recognized over future periods.

A summary of the Company’s stock option activity for the nine months ended January 31, 2011 and 2010 is as follows:


	Nine Months Ended January 31, 2011		Nine Months Ended January 31, 2011
		Weighted		Weighted
		Average		Average
		Exercise		Exercise
	Options	Price	Options	Price
Outstanding at beginning of period	2,275,000	$ 0.29	2,375,000	$ 0.28
Exercised	-	-	(150,000)	0.05
Outstanding at end of period	2,275,000	$ 0.29	2,225,000	$ 0.29
Exercisable at end of period	1,250,000	$ 0.32	1,237,500	$ 0.32

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The intrinsic value of “in the money” options at January 31, 2011 and April 30, 2010 was $nil.

At January 31, 2011, the range of exercise prices and the weighted average remaining contractual life of the outstanding options was $0.20 to $0.96 per share and 1.37 years, respectively.

At April 30, 2010, the range of exercise prices and the weighted average remaining contractual life of the outstanding options was $0.20 to $0.96 per share and 2.13 years, respectively.

Note 10 - Common Stock Warrants

During the nine months ended January 31, 2011 the Company issued 1,494,500 common stock warrants as part of a private placement. The warrants are exercisable at $0.15 per share and have a term of one year.

During the years ended April 30, 2010, the Company issued 965,000 common stock warrants as part of a private placement. The warrants are exercisable at a price of $0.15 per share and have a term of one year.

A summary of the Company’s common stock warrant activity for the nine months ended January 31, 2011 and 2010 is as follows:


	Nine months ended January 31, 2011		Nine months ended January 31, 2010
		Weighted		Weighted
		Average		Average
		Exercise		Exercise
	Warrants	Price	Warrants	Price
Outstanding at beginning of period	965,000	$ 0.15	210,000	$ 0.33
Issued	1,459,500	0.15	-	-
Exercised	-	-	-	-
Expired	(965,000)	$ 0.15	(210,000)	0.33
Cancelled	-	-	-	-
Outstanding at end of period	1,459,500	$ 0.15	-	$ -
Exercisable at end of period	1,459,500	$ 0.15	-	$ -

The intrinsic value of “in the money” warrants at January 31, 2011 and April 30, 2010 was $nil.

At January 31, 2011, the range of exercise prices and the weighted average remaining contractual life of the outstanding warrants was $0.15 per share and 0.35 year, respectively.

At April 30, 2010, the range of exercise prices and the weighted average remaining contractual life of the outstanding warrants was $0.15 per share and 1.09 years, respectively.

Note 11 - Oil and Gas Properties

(a)

The Company entered into an agreement on April 6, 2005 with a private company controlled by the President of the Company to acquire a working interest in two oil wells located in Burleson County, Texas. The Company agreed to issue up to 1,000,000 shares of restricted common stock at the rate of one share for every $0.10 of revenue from the wells. The Company issued 775,255 of the shares due during the year ended April 30, 2009 and issued the remaining 224,745 shares on July 31, 2009 to complete the transaction.

The Company’s portion of revenue earned from these wells during the nine months ended January 31, 2011 and 2010 totaled $43,627 and $13,876, respectively.

The wells are producing but a value cannot be placed on them due to the characteristics of the well and the low production volumes. As a result, all costs are impaired immediately. Total impairment recorded on the above wells was $Nil and $53,462 for the nine months ended January 31, 2011 and 2010, respectively.

(b)

On 4 May 2006, the Company entered into an agreement with Energy Source Inc. (“ESI”) to drill up to 24 gas wells located in Kentucky. The Company can earn a 100% working interest (60% net revenue interest) in four gas wells by

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paying $185,000 per well and has the option to acquire a 100% working interest (60% net revenue interest) in an additional 20 wells over an 18-month period at a price to be agreed upon. Each well is subject to a 12.5% net revenue interest to the landowner and a 27.5% interest to ESI. On 18 May 2006, the Company entered into an agreement with Teryl, a public company related by common directors and officers, to farm-out a 40% working interest, outlined above, subject to a 12.5% net revenue interest to the landowner and a 27.5% interest to ESI, in consideration for paying 50% of the total costs of the wells. The Company received $277,500 from Teryl during the year ended April 30, 2007, representing 50% of the cost of drilling the first, second and third wells. On 28 September 2006, the Company assigned a 20% working interest (12% net revenue interest) in the third well drilled as part of a financing agreement.

The Company’s portion of revenue earned from these wells during the nine months ended January 31, 2011 and 2010 totaled $Nil.

Due to the nature of these wells and the low production volumes, the Company is unable to estimate proved reserves. As a result all costs are impaired immediately.

Note 12 – Subsequent Event

On March 17, 2011 the Company issued 100,000 shares of the Company’s common stock at $0.10 per share for total subscription total proceeds of $10,000 received during the nine months ended January 31, 2011.

Item 2.

Management's Discussion and Analysis of Financial Condition and

Results of Operations

Forward-Looking Statements

Certain statements contained in this Quarterly Report on Form 10-Q constitute "forward-looking statements." These statements, identified by words such as “plan,” "anticipate," "believe," "estimate," "should," "expect" and similar expressions include our expectations and objectives regarding our future financial position, operating results and business strategy. These statements reflect the current views of management with respect to future events and are subject to risks, uncertainties and other factors that may cause our actual results, performance or achievements, or industry results, to be materially different from those described in the forward-looking statements. Such risks and uncertainties include those set forth in our 10-K for the fiscal year ended April 30, 2010. We do not intend to update the forward-looking information to reflect actual results or changes in the factors affecting such forward-looking information. We advise you to carefully review the reports and documents we file from time to time with the Securities and Exchange Commission (the “SEC”), particularly our Annual Reports on Form 10-K, our Quarterly Reports on Form 10-Q and our Current Reports on Form 8-K.

All dollar amounts in this Quarterly Report are in U.S. dollars unless otherwise stated.

Business Overview

We are a development stage company incorporated in the state of Oregon in 1994. Our principal business operations are conducted in British Columbia and in China. Our principal business operation is the continued operation and development of the Video1314 website. We have a moderate oil and gas revenue from our oil and gas interest in Texas.

We currently own a 60% interest in Power Telecom Limited (“PTL”) and have an option to purchase the remaining 40% interest. PTL owns a 100% beneficial interest in www.video1314.com (“Video1314”) a Chinese Web 2.0 platform similar to YouTube (www.youtube.com).

Video1314 is a fast growing Chinese Web 2.0 platform, similar to www.youtube.com, that allows users to share videos, music, and audio as well as sell goods and services using videos in its marketplace. Since its launch, Video1314 has attracted millions of users and is fast becoming one of Asia’s top Web2.0 destinations. Video1314 currently serves the Greater China region, which includes mainland China, Hong Kong, Macau and Taiwan. The features of the site are focused on free online photo, video and audio sharing; a marketplace to buy and sell goods using video, photo and audio technologies; and online educational gaming.

For the month of July, 2010 Video1314 recorded 69,388,229 hits compared to 4,000,000 hits per month in November 2007, representing an increase of 1,635% over less than three years.

In July, 2010 Video1314 signed its advertising agreement with Guru Online's Maximizer advertising program. With visitor numbers in the millions, Video1314 is garnering advertiser's sponsorships and targeting profits with the help of leading advertising agent Guru Online, Hong Kong. Guru Online's customers include HSBC, Nike, Coca-Cola, Sony, Apple, Citibank, Visa, Nokia, Dell, Motorola, Bank of China, Samsung, etc. Video1314 aims at signing major partnership and sponsorship agreements for each vertical channel in the coming months.

In November 2010 Video1314.com site adopted HTML5 for its entire video platform. HTML5 is a new standard for structuring and presenting content on the Internet. The adoption of HTML5 also ensures compatibility with all of Apple's products, such as the iPhone, iPad and iTouch. By offering compatibility with Apple's products, Video1314 hopes to further increase its viewers and user base. There are an estimated over 5.3 million iPhones in Asia.

Our plan of operation for the twelve months following the date of this report is to continue to develop the Video1314 website business. We anticipate spending approximately $300,000 for general and administrative expenses, including fees we will incur in complying with reporting obligations.

As of January 31, 2011, we had a working capital deficit of $1,857,240, compared to a working capital deficit of $1,727,339 as at April 30, 2010. Further losses are expected until we are able to generate sufficient revenues from our 60% interest in Video1314 to cover our expenses.

Results of Operations for Nine months Ending January 31, 2011 (“2011”) Compared to the Nine months Ended January 31, 2010 (“2010”)

We had a net loss of $179,072 during the nine months ending January 31, 2011, compared to a net loss of $271,173 during the nine months ending January 31, 2010.

During the nine months ending January 31, 2011 upon completion of well repair we generated revenue of $43,627 from and incurred operating expenses of $13,078 for our oil and gas production. During the same period in 2010, we generate oil and gas revenue of $13,876 and incurred cost of $20,355.

During the nine months ending January 31, 2011 PTL generated revenue of $22,351 from web design and advertisement, which was absent during the same period in 2010.

Office and administrative expenses decreased by $9,979 from $170,501in 2010 to $180,480 in 2011. Significant changes are as follows:

In 2010 we had stock based compensation expense of $71,946 for stock options granted and vested during the period; in the same period of fiscal 2011 we did not have stock options granted or vested;

In 2010 we incurred consulting fees of $16,267; in 2011 consulting fees increased to $32,742 due to the consulting fees of $12,500 paid to Tritos Inc. for shareholder information advice and public relations services, which was absent in 2010, as well as investor relation fees of $10,000 paid to VNC Associates in 2011 which was not incurred in 2010. Such costs increased in 2011 when the management intends in raise more equity with the improvement in the capital market.

Professional fees decreased by $14,228 from $55,534 in 2010 to $41,306 in 2011 because starting from the end of 2010 we streamlined our financial reporting process; while accounting and auditor review fees were significant in 2010 due to audit and accounting services in relation to completion of the acquisition of 60% interest in Power Telecom.

Transfer agent and regulatory fees increased by $3,924 from $6,989 in 2010 to $10,913 in 2011 as a result of increased share transactions in the current period.

The impairment loss on petroleum interests decreased from $50,995 in 2010 to $Nil in 2011, due to the fact that our wells are producing and consistently producing net income and generating positive cash flow during the current period after the wells were repaired at the end of fiscal 2010.

Related party transactions and balances

During the nine months ended January 31, 2011, the Company accrued fees to a professional law firm in which a

partner of the firm is an officer and director of the Company for legal fees of $1,125 (2010 - $188).

During the nine months ended January 31, 2011 the Company incurred $6,367 (2010 - $Nil) management fees to the president of the Company.

The Company shares office space with companies with related directors and officers. The Company occupied this space rent-free during the nine months ended January 31, 2011 and 2009.

Liquidity and Capital Resources

In the past, we have derived most of our development and operating capital primarily from the issuance of capital stock and advances from related parties. We have also received minimal revenue from our oil and gas wells. Although we intend to continue utilizing these sources, there is no assurance that these sources and methods would continue to be available in the future.

We advanced an additional $36,405 during the nine months ended January 31, 2011 from our affiliated companies with common officers and directors. The total amount owing to related parties is $1,753,839 or 93.42% of total current liabilities as at January 31, 2011. The balances owing to related parties are non-interest bearing, unsecured and repayable on demand. Our affiliated companies have indicated that they will not be demanding repayment of these funds during the next fiscal year and will advance, or pay expenses on our behalf if further funds are needed.

As of January 31, 2011, our cash position was $572, compared to $72,322 as of April 30, 2010, and we had a working capital deficit of $1,847,240 at January 31, 2011. We anticipate that our estimated cash requirements for operational expenses for the fiscal year ending April 30, 2011 will be approximately $300,000.

In the event that no other sources of capital were available to us in the future, on a reasonable financial basis, we would face the same obstacles as many small, undercapitalized companies do, and, in the worst case, we could be forced to reorganize or liquidate, either of which consequence would likely have an adverse financial effect upon our shareholders.

During the nine months ended January 31, 2011we financed our cash used in operations of $173,296 (2010 - $135,579) as follows:

(a)

proceeds from issuance of common shares $56,450 (2010 - $7,500) from the issuance of Common Shares;

(b)

advance from related parties of $36,405 (2010 - $35,711); and

(c)

$8,737 from the sale of available for sale securities (2010 - $121,750).

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to our stockholders.

Critical Accounting Policies

Please see our audited consolidated financial statements for the year ended April 30, 2010 for certain accounting policies that are most important to the portrayal of our current financial condition and results of operations.

Contractual Obligations

We do not currently have any contractual obligations requiring any payment obligation from us.

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

Item 4.

Controls and Procedures

Disclosure Controls

We maintain disclosure controls and procedures, as defined in Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934 (the "Exchange Act"), that are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

We carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of January 31, 2011. Based on the evaluation of these disclosure controls and procedures, and in light of the material weaknesses found in our internal controls over financial reporting, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were not effective.

Changes in Internal Control

We have not been able to implement any of the recommended changes to our internal control over financial reporting included in our Annual Report on Form 10-K for the year ended April 30, 2010.

During the nine months ended January 31, 2011, there were no changes in our internal controls over financial reporting (as defined in Rule 13a-15(e) and Rule 15d-15(e) under the Exchange Act) that have materially affected or are reasonably likely to materially affect our internal control over financial reporting.

PART II- OTHER INFORMATION

Item 1.

Legal Proceedings

We are not a party to any pending legal proceeding. Management is not aware of any threatened litigation, claims or assessments.

Item 1A.

Risk Factors

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information required under this item.

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3.

Defaults Upon Senior Securities

None.

Item 4.

(Removed and Reserved)

Item 5.

Other Information

None.

Item 6.

Exhibits and Report on Form 8-K

(a)

Exhibit(s)

31.1

Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2

Certification pursuant to 18 U.S.C. Section 1350, 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

(b)

Reports on Form 8-K

None.

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.

March 31, 2011

IAS ENERGY, INC.

/s/ John G. Robertson

John G. Robertson,

Chief Executive Officer

IAS ENERGY, INC. 10-Q