SECURITIES
          AND EXCHANGE COMMISSION
 WASHINGTON,
          D.C.20549
 
 FORM 10-QSB
 
 QUARTERLY
          REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE
 SECURITIES
          EXCHANGE ACT OF 1934
 
 FOR
          THE
          QUARTERLY PERIOD ENDED **June 30, 2007**
 
 Commission
          File #000-31935
 
 **EARTHBLOCK
          TECHNOLOGIES, INC.**
 (Exact
          name of small business issuer as specified in its charter)
 
 **NEVADA**
 (State
          or
          other jurisdiction of incorporation or organization)
  **65-0729440**
 (IRS
          Employer Identification Number)
 
 **2637
          Erie Avenue, Suite 207, Cincinnati, OH 45208**
 (Address
          of principal executive offices) (Zip Code)
 
 **(513)533-1220**
 (Registrant’s
          telephone no., including area code)
 
 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 [ ]
 
 Title
              of Class Number of Shares
              Outstanding:Common Stock, par value $.001 per share 101,965,018 outstanding
              as
              of August 13, 2007.  Preferred Stock,
              par value $.001 per
              share two (2) outstanding as of August 13, , 2007.
 Documents
            Incorporated by Reference: None
 -1-
  EARTHBLOCK TECHNOLOGIES,
          INC.
  FORM 10-QSB
 
 Table
          of
          Contents
 PART
                      I-- FINANCIAL INFORMATION
                3Item
                      1-- Financial Statements
                3Item
                      2-- Management's Discussion and Analysis or Plan of
                      Operation
                18Item
                      3-- Controls and Procedures
                22PART
                      II-- OTHER INFORMATION
                23Item
                      2-- Changes in Securities and Use of Proceeds
                23Item
                      6-- Exhibits and Reports on Form 8-K
                23SIGNATURES
                24
  -2-
 Part
              I -
              Financial Information
 Item
            1 Financial Statements
  *Pollard-Kelley
                Auditing Services, Inc......................................................................*
 *Auditing
                Services                                              4500
                Rockside Road, Suite 450 Independence OH  44131
                330-836-2558*
 
 
 
 
 
 *Report
                of Independent Certified Public Accountants*
 
 
 Board
                  of
                  Directors
 EarthBlock
                  Technologies, Inc. and Subsidiary
 (A
                  Development Stage Company)
 
 We
                  have
                  reviewed the accompanying consolidated balance sheets of EarthBlock
                  Technologies, Inc. and Subsidiary (A Development Stage Company)
                  as of June 30,
                  2007 and the related consolidated statements of income, stockholders’ equity,
                  and cash flows for the three-month and six-month periods ended
                  June 30,
                  2007.  These interim financial statements are the responsibility of
                  the Company’s management.
 
 We
                  conducted our review in accordance with the standards of the Public
                  Company
                  Accounting Oversight Board.  A review of interim financial statements
                  consists principally of applying analytical procedures and making
                  inquiries of
                  persons responsible for financial and accounting matters.  It is
                  substantially less in scope than an audit in accordance with the
                  standards of
                  the Public Company Accounting Oversight Board, the object of which
                  is the
                  expression of an opinion regarding the financial statements taken
                  as a
                  whole.  Accordingly, we do not express such an opinion.
 
 The
                  accompanying financial statements have been prepared assuming that
                  the Company
                  will continue as a going concern.  As discussed in notes to the
                  financial statements, the Company has negative working capital,
                  negative cash
                  flows from operations and recurring operating losses which raises
                  substantial
                  doubt about its ability to continue as a going concern.  Management’s
                  plans in regard to these matters are also described in the notes
                  to the
                  financial statements.  These financial statements do not include any
                  adjustments that might result from the outcome of this uncertainty.
 
 Based
                  on
                  our review, we are not aware of any material modifications that
                  should be made
                  to the accompanying financial statements in order for them to be
                  in conformity
                  with generally accepted accounting principles accepted in the United
                  States of
                  America.
 
 We
                  have
                  previously audited, in accordance auditing standards generally
                  accepted in the
                  United States of America, the consolidated balance sheet of EarthBlock
                  Technologies, Inc. and Subsidiary (A Development Stage Company)
                  and the related
                  statements of income, retained earnings, and cash flows for the
                  year then ended;
                  and in our report dated March 29, 2007, we expressed an subject
                  to opinion on
                  those consolidated financial statements.  In our opinion, subject to
                  the uncertainty of a going concern, the information set forth in
                  the
                  accompanying consolidated balance sheet as of December 31, 2006
                  and the related
                  statements of income, retained earnings, and cash flows for the
                  year then ended,
                  in all material respects.
 
 
 Pollard-Kelley
                  Auditing Services, Inc.
 
 /S/
                  Pollard-Kelley Auditing Services, Inc.
 
 August
                  11, 2007
 Independence,
                  Ohio
 -3-
 
 **EarthBlock
                        Technologies, Inc and Subsidiary**(A
                        Development Stage Company)CONSOLIDATED
                        BALANCE SHEETJune
                        30, 2007 and December 31, 2006
 2007
                    
                    
                    2006ASSETSCurrent
                        AssetsCash
                        and cash equivalents
                    
                    $
                    50,856
                    
                    
                    $
                    333Inventory
                    
                    
                    126,395
                    
                    
                    
                    180,000Total
                        Current Assets
                    
                    
                    177,251
                    
                    
                    
                    180,333Fixed
                        AssetsComputers
                    
                    
                    9,402
                    
                    
                    
                    9,402Less:
                        Accumulated depreciation
                    
                    
                    (5,308
                    )
                    
                    
                    (4,428
                    )4,094
                    
                    
                    
                    4,974Total
                        Assets
                    
                    $
                    181,345
                    
                    
                    $
                    185,307LIABILITIES
                        AND STOCKHOLDERS' EQUITYCurrent
                        LiabilitiesBank
                        overdrafts
                    
                    $
                    -
                    
                    
                    $
                    -Notes
                        payable
                    
                    
                    477,500
                    
                    
                    
                    537,500Accounts
                        payable
                    
                    
                    123,046
                    
                    
                    
                    130,653Advances
                        on home sales
                    
                    
                    140,000
                    
                    
                    
                    -Accrued
                        salaries
                    
                    
                    586,555
                    
                    
                    
                    609,655Accrued
                        payroll taxes
                    
                    
                    12,644
                    
                    
                    
                    12,644Accrued
                        interest
                    
                    
                    134,692
                    
                    
                    
                    134,374Total
                        Current Liabilities
                    
                    
                    1,474,437
                    
                    
                    
                    1,424,826Stockholders'
                        EquityPreferred
                        stock
                    
                    
                    -
                    
                    
                    
                    -Common
                        stock
                    
                    
                    101,965
                    
                    
                    
                    92,465Additional
                        contributed capital
                    
                    
                    1,753,858
                    
                    
                    
                    1,698,358Deficit
                        accumulated during thedevelopment
                        stage
                    
                    
                    (3,148,915
                    )
                    
                    
                    (3,030,342
                    )Subscriptions
                        receivable
                    
                    
                    -
                    
                    
                    
                    -(1,293,092
                    )
                    
                    
                    (1,239,519
                    )Total
                        Liabilities and Stockholders' Equity
                    
                    $
                    181,345
                    
                    
                    $
                    185,307
 See
                        accompanying notes to financial
                        statements.
 -4-
 **EarthBlock
                      Technologies, Inc and Subsidiary**(A
                      Development Stage Company)CONSOLIDATED
                      STATEMENT OF OPERATIONSFor
                      the Quarter Ending June 30, 2007 and the Year Ended December
                      31,
                      2006
  Quarter
                    
                    
                    Year
                        to
                    
                    
                    Year
                        toEnding
                    
                    
                    Date
                    
                    
                    DateJune
                        30, 2007
                    
                    
                    2007
                    
                    
                    2006Revenues
                    
                    $
                    202,900
                    
                    
                    $
                    202,900
                    
                    
                    $
                    -Cost
                        of SalesDirect
                        cost of sales
                    
                    
                    201,657
                    
                    
                    
                    205,267
                    
                    
                    
                    156,931Gross
                        Profit
                    
                    
                    1,243
                    
                    
                    
                    (2,367
                    )
                    
                    
                    (156,931
                    )ExpensesOffice
                    
                    
                    7,745
                    
                    
                    
                    8,883
                    
                    
                    
                    21,179Depreciation
                    
                    
                    440
                    
                    
                    
                    880
                    
                    
                    
                    1,759Interest
                    
                    
                    11,452
                    
                    
                    
                    22,877
                    
                    
                    
                    45,699Licensor
                        expenses
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -Professional
                        fees
                    
                    
                    24,445
                    
                    
                    
                    70,791
                    
                    
                    
                    766,875Rent
                    
                    
                    4,172
                    
                    
                    
                    4,172
                    
                    
                    
                    13,776Salaries
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    420,008Travel
                    
                    
                    8,424
                    
                    
                    
                    8,603
                    
                    
                    
                    21,69556,678
                    
                    
                    
                    116,206
                    
                    
                    
                    1,290,991Net
                        Loss
                    
                    $
                    (55,435
                    )
                    
                    $
                    (118,573
                    )
                    
                    $
                    (1,447,922
                    )Loss
                        per share
                    
                    $
                    (0.00
                    )
                    
                    $
                    (0.00
                    )Average
                        shares outstanding
                    
                    
                    97,131,685
                    
                    
                    
                    96,798,351
  See
                      accompanying notes to financial
                      statements.
  -5-
  **EarthBlock
                      Technologies, Inc and Subsidiary**(A
                      Development Stage Company)CONSOLIDATED
                      STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITYFor
                        the Quarter Ending June 30, 2007 and the Year Ended December
                        31,
                        2006
  DeficitAccumulatedAdditional
                    
                    
                    During
                        thePreferred
                        Stock
                    
                    
                    Common
                        Stock
                    
                    
                    Contributed
                    
                    
                    DevelopmentShares
                    
                    
                    Amount
                    
                    
                    Shares
                    
                    
                    Amount
                    
                    
                    Capital
                    
                    
                    Stage
                    
                    
                    TotalBalance
                        December 31, 2005
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    49,815,018
                    
                    
                    
                    49,815
                    
                    
                    
                    380,008
                    
                    
                    
                    (1,582,420
                    )
                    
                    
                    (1,152,597
                    )Share
                        sales
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    7,000,000
                    
                    
                    
                    7,000
                    
                    
                    
                    28,000
                    
                    
                    
                    -
                    
                    
                    
                    35,000Shares
                        for services
                    
                    
                    2
                    
                    
                    
                    -
                    
                    
                    
                    24,250,000
                    
                    
                    
                    24,250
                    
                    
                    
                    839,750
                    
                    
                    
                    -
                    
                    
                    
                    864,000Shares
                        issued inconnectionwith
                        certain Notes payable
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    11,400,000
                    
                    
                    
                    11,400
                    
                    
                    
                    330,600
                    
                    
                    
                    -
                    
                    
                    
                    342,000Sale
                        and experation ofwarrants
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    120,000
                    
                    
                    
                    -
                    
                    
                    
                    120,000Net
                        Loss
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    (1,447,922
                    )
                    
                    
                    (1,447,922
                    )Balance
                        December 31, 2006
                    
                    
                    2
                    
                    
                    
                    -
                    
                    
                    
                    92,465,018
                    
                    
                    
                    92,465
                    
                    
                    
                    1,698,358
                    
                    
                    
                    (3,030,342
                    )
                    
                    
                    (1,239,519
                    )Shares
                        for services
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    4,500,000
                    
                    
                    
                    4,500
                    
                    
                    
                    40,500
                    
                    
                    
                    -
                    
                    
                    
                    45,000Net
                        loss
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    (63,138
                    )
                    
                    
                    (63,138
                    )Balance
                        March 31, 2007
                    
                    
                    2
                    
                    
                    
                    -
                    
                    
                    
                    96,965,018
                    
                    
                    
                    96,965
                    
                    
                    
                    1,738,858
                    
                    
                    
                    (3,093,480
                    )
                    
                    
                    (1,257,657
                    )Shares
                        for services
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    5,000,000
                    
                    
                    
                    5,000
                    
                    
                    
                    15,000
                    
                    
                    
                    -
                    
                    
                    
                    20,000Net
                        loss
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    (55,435
                    )
                    
                    
                    (55,435
                    )Balance
                        June 30, 2007
                    
                    
                    2
                    
                    
                    
                    -
                    
                    
                    
                    101,965,018
                    
                    
                    $
                    101,965
                    
                    
                    $
                    1,753,858
                    
                    
                    $
                    (3,148,915
                    )
                    
                    $
                    (1,293,092
                    )
  See
                        accompanying notes to financial
                        statements.
  -6-
  **EarthBlock
                        Technologies, Inc and Subsidiary**(A
                        Development Stage Company)CONSOLIDATED
                        STATEMENT OF CASH FLOWSFor
                          the Quarter Ending June 30, 2007 and the Year Ended December
                          31,
                          2006
  Quarter
                      
                      
                      Year
                          to
                      
                      
                      Year
                          toEnding
                      
                      
                      Date
                      
                      
                      DateJune
                          30, 2007
                      
                      
                      2007
                      
                      
                      2006Cash
                          Flows from Operating ActivitiesNet
                          Loss
                      
                      $
                      (55,435
                      )
                      
                      $
                      (118,573
                      )
                      
                      $
                      (1,447,922
                      )Adjustments
                          to reconcile net loss to netcash
                          provided by operating activitiesDepreciation
                          and amortization
                      
                      
                      440
                      
                      
                      
                      880
                      
                      
                      
                      1,759Stock
                          for services
                      
                      
                      20,000
                      
                      
                      
                      65,000
                      
                      
                      
                      1,206,000(Increase)
                          in Inventory
                      
                      
                      53,605
                      
                      
                      
                      53,605
                      
                      
                      
                      (180,000
                      )Increase
                          in Accounts payable
                      
                      
                      (11,103
                      )
                      
                      
                      (7,607
                      )
                      
                      
                      27,745Increase
                          in Advances on home sales
                      
                      
                      140,000
                      
                      
                      
                      140,000Increase
                          in Accrued salaries
                      
                      
                      (23,100
                      )
                      
                      
                      (23,100
                      )
                      
                      
                      (93,785
                      )Increase
                          in Payroll taxes
                      
                      
                      -
                      
                      
                      
                      -
                      
                      
                      
                      12,644Increase
                          in Accrued interest
                      
                      
                      (11,107
                      )
                      
                      
                      318
                      
                      
                      
                      45,699Net
                          Cash (Used) by Operating Activities
                      
                      
                      113,300
                      
                      
                      
                      110,523
                      
                      
                      
                      (427,860
                      )Cash
                          Flows from Investing Activities
                      
                      
                      -
                      
                      
                      
                      -
                      
                      
                      
                      -Cash
                          Flows from Financing ActivitiesIncrease
                          in Notes payable
                      
                      
                      60,000
                      
                      
                      
                      60,000
                      
                      
                      
                      277,500Payments  on
                          Notes payable
                      
                      
                      (120,000
                      )
                      
                      
                      (120,000
                      )
                      
                      
                      -Sale
                          of Warrants
                      
                      
                      -
                      
                      
                      
                      -
                      
                      
                      
                      120,000Sale
                          of Common stock
                      
                      
                      -
                      
                      
                      
                      -
                      
                      
                      
                      35,000Cash
                          Flows Provided by Financing Activities
                      
                      
                      (60,000
                      )
                      
                      
                      (60,000
                      )
                      
                      
                      432,500Net
                          Increase in Cash and Cash Equivalents
                      
                      
                      53,300
                      
                      
                      
                      50,523
                      
                      
                      
                      4,640Cash
                          and Cash Equivalents - Beginning
                      
                      
                      (2,444
                      )
                      
                      
                      333
                      
                      
                      
                      (4,307
                      )Cash
                          and Cash Equivalents - Ending
                      
                      $
                      50,856
                      
                      
                      $
                      50,856
                      
                      
                      $
                      333
  See
                        accompanying notes to financial
                        statements.
  -7-
  **EarthBlock
                Technologies, Inc. and Subsidiary**
 NOTES
                TO
                FINANCIAL STATEMENTS
 June
                30,
                2007
 
 NOTE
                1
– SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 
 History:
 
 The
                Company is a Nevada corporation incorporated on February 19, 1997,
                and is a
                reporting company with the Securities and Exchange Commission.  It
                changed its name from L.L. Brown International, Inc. to Terra Block
                International Inc. on February 19, 2003.
 
 On
                February 14, 2003 the Company entered into a Share Exchange Agreement
                with Terra
                Block Consolidated, Inc.  The agreement provides for 100% of the
                shares of Terra Block Consolidated, Inc. to be acquired by the Company
                in
                exchange for shares of common stock of the Company, with the total
                issued and
                outstanding shares of the Company immediately after the closing and
                a 2 to 1
                reverse split, of 10,000,018.  The Company’s former subsidiary, LLBA
                has been spun off, leaving Terra Block Consolidated, Inc. as the
                sole operating
                subsidiary of the Company after effecting the agreement.  The new
                combination also assumed $100,660 of accounts payable.  The
                combination was accounted for as a reverse merger whereby the acquired
                company
                is treated as the acquiring company for accounting purposes.
 
 Terra
                Block Consolidated, Inc. was incorporated in Nevada on May 30, 2002
                and engages
                in the manufacture, distribution and application of technologically
                advanced
                building products through a licensing arrangement with Terra Block,
                Inc.  Terra Block Consolidated, Inc. has the exclusive right to make,
                have made, use and sell Terra Block, Inc.’s products anywhere in the
                world.  Terra Block, Inc. is a related party of Terra Block
                International, Inc. as a shareholder.  The license agreements provide
                Terra Block Consolidated, Inc. the rights to all patented technologies,
                trade
                secret materials, copyrights, trademarks and all intellectual property
                of Terra
                Block Inc. The license is valid until terminated by Terra Block Consolidated,
                Inc. with 30 days advance written notice to Terra Block, Inc. or
                by Terra Block,
                Inc., if there is a material breach of the licensing agreement by
                Terra Block
                Consolidated, Inc.  Under this agreement, Terra Block Consolidated,
                Inc. has the exclusive right to buy the license patent rights for
                $10,000,000.  This agreement was terminated January 10,
                2005.
 
 On
                January 21, 2004, the Company entered into a Stock Purchase Agreement
                with an
                individual to sell 3,600,000 shares of common stock for $250,000.  The
                purchaser also, is to receive redeemable common stock purchase warrants
                to
                acquire 1,000,000 shares of common stock at an exercise price of
                $.10 per share
                until January 20, 2009.  In addition, 1,500,000 shares of common stock
                were issued as a commission in connection with this stock sale.
  -8-
 **EarthBlock
                Technologies, Inc. and Subsidiary**
 NOTES
                TO
                FINANCIAL STATEMENTS
 June
                30,
                2007
 
 NOTE
                1
– SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
 
 On
                August
                10, 2004, the Company issued 1,250,000 shares of common stock as
                compensation.  The shares were valued at par value.
 
 On
                October 4, 2004, the Company issued 300,000 shares of common stock
                as prepaid
                interest.  The shares were valued at par value.
 
 On
                October 29 and December 16, 2004, the Company entered into two stock
                subscription agreements with the same party.  The agreements sold
                10,000,000 shares of common stock at $125,000.  At June 30, 2005 there
                is $0 due the Company from this transaction.
 
 On
                December 16, 2004, the Company sold 1,200,000 shares of common stock
                for
                $15,000.
 
 On
                February 11, 2005, the Company changed it name to EarthBlock Technologies,
                Inc.
 
 On
                June
                8, 2005, the Company sold 4,000,000 shares of common stock for
                $10,000.
 
 On
                February 16, 2006, the Company sold 4,000,000 shares of common stock
                for
                $20,000.
 
 On
                February 21, 2006, the Company issued 2,500,000 shares of common
                stock for
                services.  The shares issued were valued at the market value of the
                stock on date of issue, total value $87,500.
 
 On
                March
                29, 2006, the Company sold 1,500,000 shares of common stock for
                $7,500.
 
 On
                March
                30, 2006, the Company sold 1,500,000 shares of common stock for
                $7,500.
 
 On
                April
                26, 2006, the Company issued 2,500,000 shares of common stock for
                services.  The shares issued were valued at the market value of the
                stock on date of issue, total value $300,000.
 
 On
                May 9,
                2006, the Company issued 2,000,000 shares of common stock for
                services.  The shares issued were valued at the market value of the
                stock on date of issue, total value $120,000.
 
 On
                June
                27, 2006, the Company issued 1,250,000 shares of common stock for
                services.  The shares issued were valued at the market value of the
                stock on date of issue, total value $37,500.
 
 On
                June
                27, 2006, the Company issued 11,400,000 shares of common stock to
                two note
                holders to stay their calling due the note.  No formal agreement was
                signed.  The shares issued were valued at the market value of the
                stock on date of issue, total value $342,000.
 -9-
 **EarthBlock
                Technologies, Inc. and Subsidiary**
 NOTES
                TO
                FINANCIAL STATEMENTS
 June
                30,
                2007
 
 NOTE
                1
– SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
 
 On
                August
                1, 2006, the Company issued 2,000,000 shares of common stock to two
                individuals
                for services.  The shares were valued at the market price of the stock
                on the date of the issue, total value $44,000.
 
 On
                August
                23, 2006, the Company issued 10,000,000 shares of common stock to
                three
                individuals for services.  The shares were valued at the market price
                of the stock on the date of issue, total value $235,000.
 
 On
                December 7, 2006, the Company issued 4,000,000 shares of common stock
                to an
                individual for services.  The shares were valued at the market price
                of the stock on the date of issue, total value $40,000.
 
 On
                January 10, 2007, the Company issued 4,500,000 shares of common stock
                to an
                individual for services.  The shares were valued at the market price
                of the stock on the date of issue, total value $45,000.
 
 On
                June
                27, 2007, the Company issued 5,000,000 shares of common stock to
                an individual
                for services.  The shares were valued at the market price on the date
                of issue, total value $20,000.
 
 Basis
                of Consolidation:
 
 The
                accompanying consolidated financial statements include the accounts
                of
                EarthBlock Technologies, Inc. and Terra Block Consolidated, Inc.  All
                significant inter-company accounts and transactions, if any, have
                been
                eliminated in consolidation.
 
 Cash
                and Cash Equivalents:
 
 For
                the
                purposes of the Statement of Cash Flows, the Company considers all
                short-term
                debt securities to be cash equivalents.
 
 Cash
                paid
                during the period for:
 
 **2007**
                      ****
                      ****
                      **2006**Interest
                      
                      $
                      0
                      
                      
                      $
                      0Income
                          taxes
                      
                      $
                      0
                      
                      
                      $
                      0
 
 
 Income
                Taxes:
 
 The
                Company accounts for income taxes under a method, which requires
                a company to
                recognize deferred tax assets and liabilities for the expected future
                tax
                consequences of
 -10-
 **EarthBlock
                Technologies, Inc. and Subsidiary**
 NOTES
                TO FINANCIAL STATEMENTS
 June
                30,
                2007
 
 NOTE
                1
– SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
 
 events
                that have been recognized in a company’s financial statements or tax
                returns.  Under this method, deferred tax assets and liabilities are
                determined based on the difference between the financial statements
                carrying
                amounts and tax basis of assets and liabilities using enacted tax
                rates.  The Company presently prepares its tax return on the cash
                basis and its financial statements on the accrual basis.  No deferred
                tax assets or liabilities have been recognized at this time, since
                the Company
                has shown losses for both tax and financial reporting.  The Company’s
                net operating loss carry forward at June 30, 2007 is approximately
                $3,000,000.
 
 Use
                of
                Estimates:
 
 The
                preparation of financial statements in conformity with generally
                accepted
                accounting principles requires management to make estimates and assumptions
                that
                affect certain reported amounts and disclosures.  Accordingly, actual
                results could differ from those estimates.
 
 Development
                Stage:
 
 The
                Company elected to exit the development stage during the second quarter
                of 2007
                with the sale of its first two earth compacted homes.
 
 NOTE
                2
– NOTES PAYABLE
 
 Terra
                Block Consolidated, Inc.’s Notes Payable:
 
 On
                October 15, 2002 the Company entered into a loan agreement with an
                individual to
                borrow $15,000.  The terms of the agreement called for the principal
                sum of $15,000 to be paid on or before November 15, 2002 and an additional
                interest amount of $15,000 to be paid on April 15, 2003.  The note is
                unsecured.  A payment of $7,500 was made on February 3, 2004. The
                Company is in default under this agreement. The lender has not made
                formal
                demand for payment to date. The balance due on this note at June
                30, 2007 and
                December 31, 2006 was $7,500 plus accrued interest.
 
 On
                October 21, 2002 the Company entered into a loan agreement with an
                individual to
                borrow $10,000.  The terms of the agreement called for the principal
                sum of $10,000 to be paid within 45 days, and an additional interest
                amount of
                $10,000 to be paid within 180 days.  The note is
                unsecured.  A payment of $5,000 was made on February 3,
                2004.  The Company is in default under this agreement. The lender has
                not made formal demand for payment to date. The balance due on this
                note at June
                30, 2007 and December 31, 2006 was $5,000 plus accrued interest.
 
 -11-
 **EarthBlock
                Technologies, Inc. and Subsidiary**
 NOTES
                TO
                FINANCIAL STATEMENTS
 June
                30,
                2007
 
 NOTE
                2
– NOTES PAYABLE – CONTINUED
 
 On
                December 19, 2002 the Company entered into a loan agreement with
                an individual
                to borrow $10,000.  The terms of the agreement called for the
                principal sum of $10,000 to be paid on or before April 15, 2003 plus
                interest of
                $2,000.  In the event that the principal has not been repaid by April
                30, 2003, additional interest is owed equal to $200 per month thereafter.
                In
                addition 10,000 shares of common stock will be delivered as additional
                consideration.  The note is unsecured.  In addition to the
                issue of common stock, a payment of $5,000 was made on February 3,
                2004.  The Company is in default under this agreement. The lender has
                not made formal demand for payment to date. The balance due on this
                note at June
                30, 2007 and December 31, 2006 was $5,000 plus accrued interest.
 
 On
                December 19, 2002 the Company entered into a loan agreement with
                an individual
                to borrow $10,000.  The terms of the agreement called for the
                principal sum of $10,000 to be paid on or before April 15, 2003 plus
                interest of
                $2,000.  In the event that the principal has not been repaid by April
                30, 2003, additional interest is owed equal to $200 per month thereafter.
                In
                addition 10,000 shares of common stock will be delivered as additional
                consideration.  The note is unsecured.  In addition to the
                issue of common stock, a payment of $5,000 was made on February 3,
                2004.  The Company is in default under this agreement. The lender has
                not made formal demand for payment to date. The balance due on this
                note at June
                30, 2007 and December 31, 2006 was $5,000 plus accrued interest.
 
 On
                December 20, 2002 the Company entered into a loan agreement with
                an individual
                to borrow $10,000.  The terms of the agreement called for the
                principal sum of $10,000 to be paid on or before March 20, 2003 plus
                interest of
                $2,000.  The note is unsecured.  A payment of $5,000 was
                made on February 3, 2004.  The Company is in default under this
                agreement. The lender has not made formal demand for payment to date.
                The
                balance due on this note at June 30, 2007 and December 31, 2006 was
                $5,000 plus
                accrued interest.
 
 On
                December 23, 2002 the Company entered into a loan agreement with
                an individual
                to borrow $5,000.  The terms of the agreement called for the principal
                sum of $5,000 to be paid on or before April 23, 2003 plus interest
                of
                $1,000.  The note is unsecured.  A payment of $2,500 was
                made on February 3, 2004.  The Company is in default under this
                agreement. The lender has not made formal demand for payment to date.
                The
                balance due on this note at June 30, 2007 and December 31, 2006 was
                $2,500 plus
                accrued interest.
 
 On
                January 15, 2003 the Company entered into a loan agreement with an
                individual to
                borrow $20,000.  The terms of the agreement called for the principal
                sum of $20,000 to be paid on or before April 30, 2003 plus interest
                of
                $4,000.   In the event that the principal has not been repaid by
                April 30, 2003, additional interest is owed equal to $400 per month
                thereafter.  In addition 20,000 shares of common stock will be
                delivered as
 -12-
 **EarthBlock
                Technologies, Inc. and Subsidiary**
 NOTES
                TO
                FINANCIAL STATEMENTS
 June
                30,
                2007
 
 NOTE
                2
– NOTES PAYABLE – CONTINUED
 
 additional
                consideration. The note is unsecured.  In addition to the issue of
                common stock, a payment of $10,000 was made on February 3, 2004.  The
                Company is in default under this agreement. The lender has not made
                formal
                demand for payment to date.  The balance on this note at June 30, 2007
                and December 31, 2006 was $10,000 plus accrued interest.
 
 On
                March
                14, 2003 the Company entered into a loan agreement with an individual
                to borrow
                $10,000.  The terms of the agreement called for the principal sum of
                $10,000 to be paid on or before July 14, 2003 plus interest of
                $2,000.  The note is unsecured.  A payment of $5,000 was
                made on February 3, 2004.  The Company is in default under this
                agreement. The lender has not made formal demand for payment to date.
                The
                balance due on this note at June 30, 2007 and December 31, 2006 was
                $5,000 plus
                accrued interest.
 
 EarthBlock
                Technologies, Inc.’s Notes Payable:
 
 On
                October 6, 2003 the Company entered into a loan agreement with an
                individual to
                borrow $20,000 at 10% interest due October 6, 2004.  In addition
                50,000 shares of common stock will be delivered as additional consideration.
                The
                note is unsecured. The Company has issued the common stock required
                under this
                agreement.  The balance on this note at June 30, 2007 and December 31,
                2006 was $20,000 plus accrued interest.
 
 On
                October 6, 2003 the Company entered into a loan agreement with an
                investment
                consortium to borrow $12,500 at 10% interest due October 6, 2004.  In
                addition 200,000 shares of common stock will be delivered as additional
                consideration. The note is unsecured. The Company has issued the
                common stock
                required under this agreement.  The balance on this note at June 30,
                2007 and December 31, 2006 was $0 and $12,500 plus accrued interest,
                respectively.
 
 On
                October 6, 2003 the Company entered into a loan agreement with an
                individual to
                borrow $12,500 at 10% interest due October 6, 2004. The note is
                unsecured.  The balance on this note at June 30, 2007 and December 31,
                2006 was $0 and $12,500 plus accrued interest, respectively.
 
 On
                April
                30, 2004 the Company entered into a loan agreement with an Investment
                Company to
                borrow $100,000 at 10% interest due December 31, 2004. The note is
                unsecured.  The balance on this note at June 30, 2007 and December 31,
                2006 was $100,000 plus accrued interest.
  -13-
 **EarthBlock
                Technologies, Inc. and Subsidiary**
 NOTES
                TO
                FINANCIAL STATEMENTS
 June
                30,
                2007
 
 NOTE
                2
– NOTES PAYABLE – CONTINUED
 
 On
                July
                13, 2004 the Company entered into a loan agreement with an Investment
                Company to
                borrow $20,000 at 10% interest due January 15, 2005. The note is
                unsecured.  The balance on this note at June 30, 2007 and December 31,
                2006 was $0 and $20,000 plus accrued interest, respectively.
 
 On
                August
                23, 2005 the Company entered into a loan agreement with an individual
                to borrow
                $35,000 at 12% interest due February 23, 2006.  The note is
                unsecured.  The balance on this note at June 30, 2007 and December 31,
                2006 was $35,000
 plus
                accrued interest.
 
 On
                August
                23, 2005 the Company entered into a loan agreement with an Investment
                Company to
                borrow $15,000 at 12% interest due February 23, 2006.  The note is
                unsecured.  The balance on this note at June 30, 2007 and December 31,
                2007 was $15,000 plus accrued interest.
 
 On
                June
                29, 2006, the Company entered into a loan agreement with an individual
                to borrow
                $209,000 at 12% interest due June 29, 2007.  The note is
                unsecured.  The balance on this note at June 30, 2007 and December 31,
                2006 was $185,000 and $209,000 plus accrued interest, respectively.
 
 On
                July
                5, 2006, the Company entered into a loan agreement with an individual
                to borrow
                $24,000 at 12% interest due July 5, 2007.  The note is
                unsecured.  The balance on this note at June 30, 2007 and December 31,
                2006 was $0 and $24,000 plus accrued interest, respectively.
 
 On
                July
                20, 2006, the Company entered into a loan agreement with an individual
                to borrow
                $7,000 at 12% interest due July 20, 2007.  The note is
                unsecured.  The balance on this note at June 30, 2007 and December 31,
                2006 was $5,000 and $7,000 accrued interest, respectively.
 
 On
                August
                4 2006, the Company entered into a loan agreement with an individual
                to borrow
                $22,500 at 12% interest due August 4, 2007.  The note is
                unsecured.  The balance on this note at June 30, 2007 and December 31,
                2006 was $0 and $22,500 plus accrued interest, respectively.
 
 On
                August
                17, 2006, the Company entered into a loan agreement with an individual
                to borrow
                $15,000 at 12% interest due August 17, 2007.  The note is
                unsecured.  The balance on this note at June 30, 2007 and December 31,
                2006 was $0 and $15,000 plus accrued interest, respectively.
  -14-
 **EarthBlock
                Technologies, Inc. and Subsidiary**
 NOTES
                TO
                FINANCIAL STATEMENTS
 June
                30,
                2007
 
 NOTE
                2
– NOTES PAYABLE – CONTINUED
 
 On
                May 4,
                2007, the Company entered into a loan agreement with an investment
                company to
                borrow $60,000 at 12% interest due May 4, 2008.  The note is
                unsecured.  The balance on this note at June 30, 2007 and December 31,
                2006 was $60,000 and $0 plus accrued interest, respectively.
 
 All
                notes
                except those dated May 4, 2007 or later  are in default, payment was
                not made on notes stated due dates.  The Company has not received any
                notices of default.
 
 NOTE
                3
– STOCKHOLDERS’ EQUITY
 
 Preferred
                Stock
 
 At
                June
                30, 2007 and December 31, 2006, the Company had 10,000,000 shares
                authorized of
                convertible preferred stock with a par value of $0.001 per
                share.  Additional terms and conditions of the stock are to be set by
                the board of directors of the Company at the time of issue.  On
                February 7, 2006, the Company established a Series A Preferred stock,
                consisting
                of two shares authorized and outstanding.  The shares have no dividend
                rights, no liquidating preference, no conversion rights and no redemption
                rights.  However, the two shares voting in aggregate, to vote on all
                shareholder matters equal to 60% of the total common share voting.
                There were 2
                shares outstanding at June 30, 2007 December 31, 2006 respectively.
 
 Common
                Stock
 
 At
                December 31, 2006 the Company had 100,000,000 shares authorized common
                stock
                with a par value of $0.001 per share.  On June 21, 2007, the Company
                increased the authorized shares to 2,000,000,000 shares with a par
                value of
                $0.001 per share.  There were 101,965,018 and 92,465,018 shares
                outstanding at June 30, 2007 and December 31, 2006 respectively.
 
 Warrants
 
 On
                May 4,
                May 9, and June 22, 2006, the Company sold 1,000,000 Class A Warrants
                for
                $17,500.  Total Class A Warrants sold were 3,000,000 for a total
                raised of $52,500.  Class A Warrants exercise at a price equal to the
                average weighted price for the lowest eight days of the proceeding
                20 trading
                days multiplied by 70% per share, with a minimum exercise price of
                $.007 and a
                maximum exercise price equal to the greater of $.025 or 50% of the
                computed
                price.  Class A Warrants vest monthly and shall expire 90 days from
                the day first vested.
  -15-
 **EarthBlock
                Technologies, Inc. and Subsidiary**
 NOTES
                TO
                FINANCIAL STATEMENTS
 June
                30,
                2007
 
 NOTE
                3
– STOCKHOLDERS’ EQUITY – CONTINUED
 
 On
                July
                17 2006, the Company sold 1,000,000 Class A Warrants for
                $17,500.  Class A Warrants exercise at a price equal to the average
                weighted price for the lowest eight days of the proceeding 20 trading
                days
                multiplied by 70% per share, with a minimum exercise price of $.007
                and a
                maximum exercise price equal to the greater of $.025 or 50% of the
                computed
                price.  Class A Warrants vest monthly and shall expire 90 days from
                the day first vested.
 
 On
                August
                23, 2006, the Company sold 10,000,000 Class A Warrants for
                $50,000.  Class A Warrants exercise at a price equal to the average
                weighted price for the lowest eight days of the proceeding 20 trading
                days
                multiplied by 70% per share, with a minimum exercise price of $.007
                and a
                maximum exercise price equal to the greater of $.025 or 50% of the
                computed
                price.  Class A Warrants vest monthly and shall expire 90 days from
                the day first vested.
 
 All
                warrants were exercised as of December 31, 2006.
 
 NOTE
                4
– COMMITMENTS
 
 The
                Company rents its present shared office space on a month to month
                basis. The
                Company expects to continue on that basis in 2006.  Rent expense
                through June 30, 2007 and December 31, 2006 was $4,172 and $13,776
                respectively.
 
 NOTE
                5
– DERIVATIVE LIABILITY ARRISING FROM WARRANTS
 
 The
                Company accounts for debt with embedded conversion features and warrant
                issues
                in accordance with EITF 98-5: *Accounting for convertible securities with
                beneficial conversion features or contingency adjustable conversion*and
                EITF No. 00-27: *Application of issue No 98-5 to certain convertible
                instruments.*  Conversion features determined to be beneficial to
                the holder are valued at fair value and recorded to additional paid
                in
                capital.  The Company determines the fair value to be ascribed to the
                detachable warrants issued with the convertible debentures utilizing
                the
*Black-Scholes* method.  Any discount derived from determining
                the fair value to the debenture conversion features and warrants
                is amortized to
                financing cost over the life of the debenture.  The unamortized costs
                if any, upon the conversion of the warrants is expensed to financing
                cost on a
                pro rata basis over the life of the warrant.
 
 Debt
                issue with the variable conversion features are considered to be
                embedded
                derivatives and are accountable in accordance with FASB 133; *Accounting for
                Derivative Instruments and Hedging Activities*.  The fairs value
                of the embedded derivative is recorded to derivative liability.  This
                liability is required to be marked each reporting period.  The
                resulting discount on the debt is amortized to interest expense over
                the life of
                the related debt.
 -16-
 **EarthBlock
                Technologies, Inc. and Subsidiary**
 NOTES
                TO
                FINANCIAL STATEMENTS
 June
                30,
                2007
 
 NOTE
                6
– RELATED PARTIES
 
 The
                Company owed its officers who are also shareholders $586,555 and
                $673,560 in
                accrued wages at September 30, 2006 and 2005 respectively.  There are
                no other amounts due to or from these shareholder officers.
 
 NOTE
                7
– GOING CONCERN
 
 The
                Company has not generated
                significant revenues or profits to date.  This factor among others
                raises considerable doubt the Company will be able to continue as
                a going
                concern.
 
 The
                Company’s continuation as a going concern depends upon its ability to generate
                sufficient cash flow to conduct its operations and its ability to
                obtain
                additional sources of capital and financing.  The accompanying
                consolidated financial statements do not include any adjustments
                that may result
                from the outcome of this uncertainty.  Managements plans to relieve
                these problems by continuing to raise working capital either through
                stock sales
                or loan
 -17-
 **Item
        2. Management’s Discussion and Analysis of Financial Condition or Plan of
        Operation**
  The
        following discussion should be read in conjunction with our unaudited interim
        financial statements and related notes thereto included in this quarterly
        report
        and in our audited financial statements and Management’s Discussion And Analysis
        of Financial Condition or Plan of Operation (“MD&A”) contained in our Form
        10-KSB for the year ended December 31, 2005. Certain statements in the following
        MD&A are forward looking statements. Words such as “expects”, “anticipates”,
“estimates” and similar expressions are intended to identify forward looking
        statements. Such statements are subject to risks and uncertainties that could
        cause actual results to differ materially from those projected.
  **GENERAL**
  DESCRIPTION
        OF BUSINESS
  EarthBlock
        Technologies, Inc. a Nevada Corporation was formerly Terra Block International,
        Inc., having been renamed effective February 11, 2005, (the “Company” or
“EarthBlock”) was formerly L.L. Brown International, Inc. (“L.L. Brown”). L.L.
        Brown was originally incorporated as Smart Industries, Inc. on February 19,
        1997. On February 14, 2003, L.L. Brown entered into a Share Exchange Agreement
        with Terra Block Consolidated. The Agreement provides for 100% of the shares
        of
        Terra Block Consolidated to be acquired by L.L. Brown in exchange for shares
        of
        common stock of L.L. Brown; for the establishment of a new Board of Directors
        consisting of Terra Block Consolidated directors; and, with total issued
        and
        outstanding common shares of the Company immediately after the closing of
        10,000,000. The Company’s former subsidiary, LLBA has been spun off, leaving
        Terra Block Consolidated as the sole operating subsidiary of the Company
        after
        effecting the Agreement.
  INTRODUCTION
  EarthBlock
        Technologies, Inc. uses compressed earth blocks in its building system to
        construct a variety of structures both commercial and residential, including
        warehouses, office buildings, outbuildings, retail stores, various types
        of
        walls and residences from expensive custom homes to low income housing.
  The
        construction method is simple; utilizing properly mixed soil compressed into
        dense, non-fired, uniform building blocks at the building site. The blocks
        don’t
        require curing and are stacked on a proper foundation using thin slurry between
        each layer. A comprehensive bonding takes place between the blocks and results
        in a block-to-block bond, not a block-to-mortar bond as in concrete hollow
        block
        construction. This comprehensive bonding results in a monolithic structure
        and a
        block-to-block strength with very high shearing strength. Completed walls
        require a bond beam on top before the roof is installed. Completed walls
        receive
        a stucco finish. The system is fast, a single machine can produce over 3,800
        blocks per day and wall construction can be completed with unskilled labor.
  The
        blocks are strong having compressive strength between 1,000 - 1,600 psi without
        any additives. Building codes in the United States require a non-fired masonry
        block to have a compressive strength of 300 psi.
  The
        Company’s goal is to become the leading provider of durable, structurally sound,
        low cost, and environmentally friendly, residential and commercial buildings
        in
        the world.
  -18-
  COMPRESSED
        EARTH BLOCK CONSTRUCTION
  The
        Company’s building system makes possible the large-scale construction of low
        cost, affordable, energy-efficient homes as well as a variety of commercial
        structures. EarthBlock’s suppliers have perfected machines that convert our most
        abundant raw material (common soil) into one of our most needed building
        components. These portable machines convert ordinary earth on a building
        site,
        into rock-hard, durable blocks, used in construction. The machine can be
        towed
        to a site by a normal pick-up truck or SUV. It takes the soil, which is already
        there in abundance and converts it into strong, stable building blocks. There
        is
        no material cost and no freight expense. The system utilizes low skilled
        labor
        to construct the walls and it’s fast as the blocks do not require curing.
  The
        Company uses these blocks to build structures that have the following
        characteristics:
  -
              The
                  raw material - dirt - is readily available at the job site.
  -
              No
                  expensive additives required
  -
              Skilled
                  labor is not required for construction. Blocks are simply plumbed
                  and
                  stacked which reduces labor cost significantly.
  -
              Excellent
                  thermal performance, reducing heating and cooling
                  costs.
  -
              Low
                  maintenance.
  -
              Long
                  lasting and durable.
  -
              Non-toxic-
                  materials are completely natural and don't out-gas toxic
                  chemicals.
  -
              Sound
                  resistant.
  -
              Fire
                  resistant - earthen walls don't burn.
  -
              Insect
                  resistant - the walls are solid and very dense, discouraging insects.
  -
              Very
                  strong - highly resistant to extreme wind conditions as found in
                  hurricanes and tornadoes.
  -
              The
                  monolithic walls and concrete bond beam create a structure very
                  resistant
                  to earthquakes.
  -19-
  CERTAIN
        RISK FACTORS
  GOING
        CONCERN RISK
  We
        have
        had and could have losses, deficits and deficiencies in liquidity, which
        could
        impair our ability to continue as a going concern.
  In
        Note #
        7 to our consolidated financial statements, our independent auditors have
        indicated that certain factors raise substantial doubt about our ability
        to
        continue as a going concern.
  The
        ability of the Company to continue as a going concern is dependent upon
        generating sufficient cash flow to conduct operations and obtaining additional
        capital and financing. Any financing activity is likely to result in significant
        dilution to current shareholders.
  The
        Company’s strategic plan for dealing with its insufficient cash flow is
        currently being developed, and may include additional private placements
        of the
        Company’s common stock, the abandonment of unprofitable projects and the
        exchange of common stock for settlement of vendor accounts. There can be
        no
        assurance that any of the plans developed by the Company will produce cash
        flows
        sufficient to overcome current liquidity problems.
  The
        Company’s long-term viability as a going concern is dependent on certain key
        factors, as follows:
  -
              The
                  Company’s ability to obtain adequate sources of outside financing.
  -
              The
                  Company’s ability to ultimately achieve adequate profitability and cash
                  flows necessary to sustain continuing operations.
  IMPLEMENTATION
        OF BUSINESS STRATEGY DEPENDENT ON ADDITIONAL FINANCING
  The
          Company’s management and auditor have raised grave concerns relative to the
          Company’s financial ability to continue as a going concern. Management is and
          has been actively seeking solutions to the Company’s current financial dilemma
          and lack of adequate working capital and will continue to do so. However,
          unless
          the Company can find a solution to this problem, management will be facing
          a
          likelihood of selling the Company, shutting down operations, or declaring
          bankruptcy.
 In
          search
          of a solution, the Company is actively pursuing alliances, mergers, licensing
          arrangements and joint venture relationships, including entities in which
          current management has an ownership interest, which will allow the Company
          to
          continue operation. Any business relationship entered into will likely
          result in
          significant dilution of ownership to the shareholders with no assurance
          of
          successful continuation of the business of the Company. Any such transactions
          may lead to changes in control, changes in future plans and ultimately
          the
          Company no longer trading on the NASDAQ Bulletin Board.
 
 Further,
          as the Company requires working capital, sources of such capital may have
          onerous requirements which will likely result in significant dilution and
          further indebtedness. The company may be required to reverse or forward
          split
          its stock in order to satisfy a potential investor, and may likely increase
          the
          number of its authorized shares providing a potential for additional
          dilution.
  -20-
  GOVERNMENTAL
        REGULATION
  We
        are
        subject to general business regulations, including Federal and state
        construction, environmental and hazardous material handling regulations.
        In
        other countries in which we operate, we may be subject to additional regulations
        as well.
  NEW
        PROJECTS.
  The
        Company may undertake one or more new projects worldwide without limitation.
        Management may fail to accurately gauge conditions prior to undertaking a
        new
        project, and therefore may not achieve anticipated results from a new project.
        If this were to occur, the Company may experience lower cash flow from
        operations. To the extent that the Company incurs debt to finance a portion
        of
        the capital costs of a new project, the cash flow from the new project may
        be
        inadequate to cover the debt service.
  WEATHER
        CONDITIONS
  Due
        to
        the fact that a substantial portion of our revenues may be derived from
        construction operations, our business operations, revenues and operating
        income
        could be negatively affected by weather phenomenon such as but not limited
        to,
        hurricanes, monsoon rain seasons, droughts, excessive heat, wind-storms etc.
        Such weather phenomena could interfere with operations and disrupt delivery
        schedules and revenue streams. In addition, occurrences like those described
        above could negatively impact our customer’s ability to pay us, or interfere
        with financing operations within a specific region.
  INTERNATIONAL
  Foreign
        sales are expected to account for a portion of sales and revenue. Sales of
        products and services obtained outside the United States are typically
        negotiated, invoiced and paid in local currency. Changes in exchange rates
        may
        also adversely affect the ability of customers to purchase the Company’s
        products. Economic instability may have an adverse effect on the Company’s
        foreign sales. In addition, the Company’s international business strategy may
        require it to make significant investments outside of the United States.
  -21-
  **FORWARD-LOOKING
        INFORMATION**
  The
        statements contained herein and other information contained in this report
        maybe
        based, in part, on management’s estimates, projections, plans and judgments.
        These forward-looking statements are subject to certain risks and uncertainties
        that could cause actual results to differ materially from historical results
        or
        those anticipated. In this report, the words “anticipates”, “believes”,
“expects”, “intends”, “future”, “plans”, “targets” and similar expressions
        identify forward-looking statements. Readers are cautioned not to place undue
        reliance on the forward-looking statements contained herein. The Company
        undertakes no obligation to publicly revise these forward-looking statements
        to
        reflect events or circumstances that may arise after the date hereof.
        Additionally, these statements are based on certain assumptions that may
        prove
        to be erroneous and are subject to certain risks including, but not limited
        to,
        The Company’s dependence on limited cash resources, its dependence on certain
        key personnel within the Company, and its ability to raise additional capital.
        There are many companies participating in the building industry, many with
        resources greater than the Company. Greater competition for profitable
        operations can increase prices and make it more difficult to develop project
        at
        reasonable multiples of cash flow. The Company believes that it will be able
        to
        compete in this environment and will be able to find attractive investments;
        however, it is not possible to predict competition or the effect this will
        have
        on the Company’s operations. The Company’s operations are also significantly
        affected by factors, which are outside the control of the Company, including
        environmental and governmental regulations, as well as weather in the area
        of
        the Company’s operations. Accordingly, actual results may differ, possibly
        materially, from the predictions contained herein.
  Item
        3.
        Evaluation of Disclosure Controls and Procedures
  Our
          Chief
          Executive Officer and Chief Financial Officer evaluated the effectiveness
          of the
          Company’s disclosure controls and procedures as defined in Rules 13a-15(e) and
          15d-15(e) under the the Securities Exchange Act of 1934, as of the end
          of the
          period covered by this report. Based on their evaluation, our Chief Executive
          Officer and Chief Financial Officer have concluded that as of the end of
          the
          period covered by this report, the Company’s disclosure controls and procedures
          were effective.
  No
          change in our internal control over
          financial reporting occurred during the period covered by this report that
          has
          materially affected, or is reasonably likely to materially affect, our
          internal
          control over financial reporting.
  -22-
  **PART
        II**
  Pursuant
        to the Instructions on Part II of the Form 10-QSB, Items 1, 3 and 5 are omitted.
  Item
        2.
        Changes in Securities
  None
  Item
        6
—Exhibits and Reports on Form 8-K
  (A)
        Exhibits
  Exhibit
                  31.1
              —
Certification
                  of Chief Executive Officer of
                  EarthBlock Technologies, Inc. required by Rule 13a — 14(1) or Rule 15d —
                  14(a) of the Securities Exchange Act of 1934, as adopted pursuant
                  to
                  Section 302 of the Sarbanes-Oxley Act of 2002.
  Exhibit
                  31.2
              —
Certification
                  of Chief Financial Officer of
                  EarthBlock Technologies, Inc. required by Rule 13a — 14(1) or Rule 15d —
                  14(a) of the Securities Exchange Act of 1934, as adopted pursuant
                  to
                  Section 302 of the Sarbanes-Oxley Act of 2002.
  Exhibit
                  32.1
              —
Certification
                  of Chief Executive Officer of EarthBlock
                  Technologies, Inc. pursuant to Section 906 of the Sarbanes-Oxley
                  Act of
                  2002 and Section 1350 of 18 U.S.C. 63.
  Exhibit
                  32.2
              —
Certification
                  of Chief Financial Officer of EarthBlock
                  Technologies, Inc. pursuant to Section 906 of the Sarbanes-Oxley
                  Act of
                  2002 and Section 1350 of 18 U.S.C. 63.
  (B)
        Reports on Form 8-K
  None
  -23-
   **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.
  August
                  13, 2007EARTHBLOCK
                  TECHNOLOGIES, INC.
                
                BY:
                  /s/ Gregory A. Pitner
                Gregory
                  A. Pitner
                CEO
                  and Chairman
  -24-