<PAGE>

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB


    [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
                                   ACT OF 1934


                For the quarterly period ended: December 31, 2007


       [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

           For the transition period from ____________ to ____________

                       COMMISSION FILE NUMBER: 000-32249

                               ARMOR ELECTRIC INC.
        (Exact name of small business issuer as specified in its charter)

             Florida                                      65-0853784
(State or other jurisdiction of             (IRS Employee Identification No.)
 incorporation or organization)

             201 Lomas Santa Fe, Suite #420, Solana Beach, CA 92075
                    (Address of principal executive offices)

                                 (858) 720-0123
                           (Issuer's telephone number)

        Securities registered pursuant to Section 12(b) of the Act: None

           Securities registered pursuant to Section 12(g) of the Act:
                        Common Stock, par value $0.001 per share
                                 ---------------

Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. YES [X] NO [ ]

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

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date:

      TITLE OF EACH CLASS OF COMMON STOCK       OUTSTANDING AT DECEMBER 31, 2007

      Common Stock, par value $0.001 per share              45,171,681


   Transitional Small Business Disclosure format (Check one): YES [ ] NO [X]




<PAGE>

                              ARMOR ELECTRIC, INC.
                        (A DEVELOPMENT STAGE ENTERPRISE)

                                TABLE OF CONTENTS

                          Part I FINANCIAL INFORMATION

Item 1.  Financial Statements:

         Condensed Consolidated Balance Sheets
         December 31, 2007 (unaudited) and June 30, 2007.................... 2

         Unaudited Condensed Consolidated Statements of Operations
         for the three and six months ended December 31, 2007 and 2006
         and cumulative from inception on October 29, 2003 through
         December 31, 2007 ................................................. 3

         Unaudited Condensed Consolidated Statements of Cash Flows
         for the six months ended December 31, 2007 and 2006, and
         cumulative from inception on October 29, 2003 through
         December 31, 2007 ................................................. 4

         Statements of Stockholders' (deficit) for the period from
         inception on October 29, 2003 through December 31, 2007 ........... 5

         Notes to Consolidated Financial Statements (unaudited)............. 6

Item 2.  Management's Discussion and Analysis or Plan of Operation.......... 9

Item 3.  Controls and Procedures............................................12

                            Part II OTHER INFORMATION

Item 1.  Legal Proceedings..................................................13

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds........13

Item 3.  Defaults upon Senior Securities....................................13

Item 4.  Submission of Matters to a Vote of Security Holders................13

Item 5.  Other Information..................................................13

Item 6.  Exhibits ..........................................................13

Signatures..................................................................14


                                       1



<PAGE>
<TABLE>
<S>     <C>

                              PART I: FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

                                  ARMOR ELECTRIC, INC.
                            (A DEVELOPMENT STAGE ENTERPRISE)
                          CONDENSED CONSOLIDATED BALANCE SHEETS


                           ALL ASSETS ARE COLLATERALIZED UNDER
                       CONVERTIBLE DEBENTURES AND SHAREHOLDER LOAN


                                                            DECEMBER 31,       JUNE 30,
                                                               2007              2007
                                                            -----------      -----------
                                                            (unaudited)
                              ASSETS
                              ------

Current Assets

     Cash in bank                                           $       340      $     3,240
     Prepaid expenses                                             1,250            8,993
                                                            -----------      -----------

          Total Current Assets                              $     1,590      $    12,233
                                                            ===========      ===========


                LIABILITIES AND STOCKHOLDERS' (DEFICIT)
                ---------------------------------------

CURRENT LIABILITIES

       Notes payable - shareholder                          $    20,000      $        --
       Accounts payable                                          37,721              349
       Shareholder advances                                      32,690           72,690
       Accrued management compensation                          172,533          132,220
       Accrued liquidating damages - related parties            151,353           95,985
       Accrued interest - related parties                       198,724           89,551
       Convertible debt - related parties                       990,863          816,939
                                                            -----------      -----------
       Total Current Liabilities                              1,603,884        1,207,734
                                                            -----------      -----------

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' (DEFICIT)

Preferred stock, $.001 par value, 10,000,000
  shares authorized, none issued                                     --               --


Common stock, par value $.001, 100,000,000 shares
   authorized, 45,171,681 issued and outstanding                 45,171           45,171
Paid in capital                                               1,570,411        1,530,243
(Deficit) accumulated during the development stage           (2,884,081)      (2,437,119)
Shareholder - advance royalties                                (333,795)        (333,795)
                                                            -----------      -----------

Total Stockholders' (Deficit)                                (1,602,294)      (1,195,499)
                                                            -----------      -----------
                                                            $     1,590      $    12,233
                                                            ===========      ===========


                     SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS

                                           2



<PAGE>

                                                      ARMOR ELECTRIC, INC.
                                                (A DEVELOPMENT STAGE ENTERPRISE)
                                         CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                                           (UNAUDITED)


                                                                                                                   CUMULATIVE
                                                                                                                      FROM
                                            FOR THE THREE MONTHS ENDED          FOR THE SIX MONTHS ENDED        OCTOBER 29, 2003
                                                    DECEMBER 31,                        DECEMBER 31,             (INCEPTION) TO
                                          ------------------------------      -----------------------------       DECEMBER 31,
                                              2007              2006              2007              2006              2007
                                          ------------      ------------      ------------      ------------      ------------


REVENUES                                  $         --      $         --      $         --      $         --      $         --
                                          ------------      ------------      ------------      ------------      ------------

EXPENSES
   General and administrative:
        Legal fees                              17,521            22,581            20,731            36,383           121,447
        Consulting fees                          1,000                --             1,000                --            74,501
        Management compensation                 38,331            18,250            76,461            36,500           237,081
        Other                                   35,692            44,135            60,304            74,252           331,975
   Debt servicing costs and
       expenses - related parties               61,195            15,790           288,466            30,759           879,250
   Stock registration costs                         --                --                --                --            56,377
   Amortization of warrant valuations          145,084                --           236,700           504,243
   Research & development                           --                --                --                --           679,207
                                          ------------      ------------      ------------      ------------      ------------

   Total expenses                              153,739           245,841           446,962           414,595         2,884,081
                                          ------------      ------------      ------------      ------------      ------------

NET (LOSS)                                $   (153,739)     $   (245,841)     $   (446,962)     $   (414,595)     $ (2,884,081)
                                          ============      ============      ============      ============      ============

NET (LOSS) PER SHARE                                 *      $      (0.01)     $      (0.01)     $      (0.01)
                                          ============      ============      ============      ============

WEIGHTED AVERAGE NUMBER OF
  COMMON SHARES OUTSTANDING                 45,171,681        42,149,014        45,171,681        41,528,014
                                          ============      ============      ============      ============

* less than $.01 per share


                                         SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS

                                                               3



<PAGE>
                                                    ARMOR ELECTRIC, INC.
                                              (A DEVELOPMENT STAGE ENTERPRISE)
                                      CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                        (UNAUDITED)

                                                                                                            CUMULATIVE FROM
                                                                                                              OCTOBER 29,
                                                                              FOR THE SIX MONTHS ENDED            2003
                                                                                    DECEMBER 31,            (INCEPTION) TO
                                                                            ----------------------------      DECEMBER 31,
                                                                               2007             2006              2007
                                                                            -----------      -----------      -----------
OPERATING ACTIVITIES
          Net (loss)                                                        $  (446,962)     $  (414,595)     $(2,884,082)

          Adjustments to reconcile net (loss) to net cash
           (used) by operating activities:
          Amortization - warrant valuations                                          --          236,700          504,244
          Amortization - financing costs                                             --                            67,047
          Services - stock registration                                                                            35,000
          Contributions to capital                                                4,020            4,020           85,670
          Stock options expense                                                  36,148                            55,323
          Common Stock issued for services                                           --           53,450          289,750

          Changes in operating assets and liabilities:
             Accounts payable - other                                            37,372          (73,131)          26,327
             Trust funds                                                            553
             Prepaid expenses                                                     7,743            3,299           (1,250)
             Accrued liquidating damages - related parties                       55,369               --          199,594
             Accrued interest - related parties                                 109,174           30,759          198,725
             Convertible debt - principal increases                             123,924                           404,067
             Accrued management compensation                                     40,313           36,500          162,533
                                                                            -----------      -----------      -----------
          Total Adjustments and Changes                                         414,062          291,598        2,027,582
                                                                            -----------      -----------      -----------
       NET CASH (USED) BY OPERATING ACTIVITIES                                  (32,899)        (122,997)        (856,499)
                                                                            -----------      -----------      -----------

INVESTING ACTIVITIES:
          (Increase) in financing costs                                              --               --          (67,048)
          Shareholder - advance royalties                                            --          (10,000)        (333,796)
                                                                            -----------      -----------      -----------
       NET CASH (USED) BY INVESTING ACTIVITIES                                       --          (10,000)        (400,844)
                                                                            -----------      -----------      -----------

FINANCING ACTIVITIES
         Proceeds from sale of common stock, net of costs                            --          145,331          666,436
         Proceeds from shareholder loan                                                                           276,247
         Proceeds from related party advances                                    30,000                           170,000
         (Repayments) of shareholder advances                                        --           (2,690)        (120,000)
         Proceeds from convertible debt - related parties                                                         265,000
                                                                            -----------      -----------      -----------
       NET CASH PROVIDED BY FINANCING ACTIVITIES                                 30,000          142,641        1,257,683
                                                                            -----------      -----------      -----------

       NET INCREASE (DECREASE) IN CASH                                           (2,899)           9,643              340

       CASH, BEGINNING OF PERIOD                                                  3,240           27,387               --
                                                                            -----------      -----------      -----------

       CASH, END OF PERIOD                                                  $       340      $    37,031      $       340
                                                                            ===========      ===========      ===========

SUPPLEMENTAL CASH INFORMATION
              Income taxes paid                                                                               $     1,600
                                                                                                              ===========

SUPPLEMENTAL NON-CASH INFORMATION

              Financing costs paid with warrants - Granite                                   $    29,786      $    29,786
                                                                                             ===========      ===========

              Value of common stock escrowed for future legal services:
              Escrow beginning balance                                                            26,450      $        --
              Value of shares transferred to escrow                                               54,000          122,250
              Value of shares applied to legal services                                          (53,450)        (122,250)
                                                                                             -----------      -----------
              Value of escrowed balance receivable                                           $    27,000      $        --
                                                                                             ===========      ===========

              Granite convertible debt discount:
              Beginning balance                                                              $   216,362      $        --
              Allocation of debt to warrant valuation                                             35,836          299,076
              Amortization                                                                      (105,641)        (299,076)
                                                                                             -----------      -----------
              Discount on debt - Granite balance                                             $   146,557      $        --
                                                                                             ===========      ===========

              Pinstripe convertible debt discount:
              Allocation of debt to warrant valuation                                        $   205,168      $   205,168
              Amortization                                                                      (102,582)        (205,168)
                                                                                             -----------      -----------
              Discount on debt - Pinstripe balance                                           $   102,586      $        --
                                                                                             ===========      ===========

                                       SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS

                                                             4



<PAGE>
                                                        ARMOR ELECTRIC, INC.
                                                  (A DEVELOPMENT STAGE ENTERPRISE)
                                      CONSOLIDATED STATEMENT OF STOCKHOLDERS' (DEFICIT)

                                                                               Escrowed Shares
                                                                              for legal services             (Deficit)
                                       Common Stock                  Common   ------------------             Accumulated    Total
                                    -------------------              Stock     Number            Shareholder   During       Stock-
                                                          Paid-in Subscription   of     Balance   Advanced   Development    holders'
                                       Shares   Amount    Capital  Receivable  Shares  Receivable  Royalty      Stage      (Deficit)
                                    ----------- -------  ----------  ------  ---------  --------  ---------  -----------  ---------
Inception, Oct 30, 2003, Stock
issued for services @ $.001 per
share                                     1,000 $     1  $        -  $    -          -  $      -  $       -  $         -  $       1

April 21, 2004
Stock issued for services @
$0.001 per share                     20,999,000  20,999           1                                                          21,000

Contributed Capital                                          15,232                                                          15,232

Net (Loss), for the period ended
April 27, 2004                                                                                                   (37,033)   (37,033)
                                    ----------- -------  ----------  ------  ---------  --------  ---------  -----------  ---------
BALANCE, APRIL 27, 2004              21,000,000  21,000      15,233                                              (37,033)      (800)

Recapitalization, April 27, 2004     13,717,333  13,717     (34,558)                                                   -    (20,841)

Contributed Capital                                           3,308                                                           3,308

Net (loss) for period                                                                                             (9,308)    (9,308)
                                    ----------- -------  ----------  ------  ---------  --------  ---------  -----------  ---------
BALANCE, JUNE 30, 2004               34,717,333  34,717     (16,017)                                             (46,341)   (27,641)

Shares issued October 15, 2004 @
$0.25 for marketing consulting
services                                150,000     150      37,350                                                          37,500

Shares issued February 16, 2005 to
escrow @ $0.115 per share               300,000     300      34,200           (300,000)  (34,500)                                 -

Shares issued January 21, 2005 @
$.115 per share for legal services
provided                                304,348     304      34,696                                                          35,000

PRIVATE PLACEMENT

Shares issued February 4, 2005 for
cash at $.10 per share, net of
warrant valuation                       300,000     300      13,200                                                          13,500

Shares issued February 8, 2005 for
cash at $.10 per share, net of
warrant valuation                     1,050,000   1,050      59,200                                                          60,250

Shares issued February 9, 2005 for
cash at $.10 per share, net of
warrant valuation                       100,000     100       4,400                                                           4,500

Shares issued February 16, 2005 for
cash at $.10 per share, net of
warrant valuation                       350,000     350      15,590                                                          15,940

Shares issued February 17, 2005 for
cash  at $.10 per share, net of
warrant valuation                       350,000     350      15,590                                                          15,940

Shares issued February 18, 2005 for
cash at $.10 per share, net of
warrant valuation                       100,000     100       4,400                                                           4,500

Shares issued February 20, 2005 for
cash at $.10 per share, net of
warrant valuation                       100,000     100       4,400                                                           4,500

Shares issued February 22, 2005 for
cash at $.10 per share, net of
warrant valuation                     2,600,000   2,600     148,118                                                         150,718

Shares issued February 28, 2005 for
cash at $.10 per share, net of
warrant valuation                       100,000     100       4,400                                                           4,500

Shares issued March 4, 2005 for
cash at $.10 per share, net of
warrant valuation                        40,000      40       1,760                                                           1,800

Common stock subscribed, March 4,
2005 at $.10 per share                   10,000      10         990                                                           1,000

Shares issued May 20, 2005 for
cash at $.10 per share, net of
warrant valuation                       100,000     100       4,400                                                           4,500


                                                                 5a
(continued below)



<PAGE>

                                                        ARMOR ELECTRIC, INC.
                                                  (A DEVELOPMENT STAGE ENTERPRISE)
                                CONSOLIDATED STATEMENT OF STOCKHOLDERS' (DEFICIT) (CONTINUED)


                                                                               Escrowed Shares
                                                                              for legal services             (Deficit)
                                       Common Stock                  Common   ------------------             Accumulated    Total
                                    -------------------              Stock     Number            Shareholder   During       Stock-
                                                          Paid-in Subscription   of     Balance   Advanced   Development    holders'
                                       Shares   Amount    Capital  Receivable  Shares  Receivable  Royalty      Stage      (Deficit)
                                    ----------- -------  ----------  ------  ---------  --------  ---------  -----------  ---------
PRIVATE PLACEMENT

Warrant valuation on shares issued in
The private placement                                       238,353                                                         238,353

Common stock subscription receivable                                 (1,000)                                                 (1,000)

Stock offering costs                                        (76,182)                                                        (76,182)

Shareholder advance royalties                                                                      (264,795)               (264,795)

Contributed capital                                          48,970                                                          48,970

Net (loss) for period                                                                                           (189,352)  (189,352)
                                    ----------- -------  ----------  ------  ---------  --------  ---------  -----------  ---------
BALANCE, JUNE 30, 2005               40,671,681  40,671     577,818  (1,000)  (300,000)  (34,500)  (264,795)    (235,693)    82,501

Cancelled common stock subscribed,
March 4, 2005 at $.10 per share         (10,000)    (10)       (990)  1,000                                                       -

Contributed capital                                           6,100                                                           6,100

Correction to stock offering
costs-prior year                                             35,000                                                          35,000

Shares issued from escrowed shares                                              70,000     8,050                              8,050

Discount on convertible debt
- warrants                                                  263,240                                                         263,240

Shareholder advance royalties                                                                       (59,000)                (59,000)

Net (loss) for the year                                                                                         (824,099)  (824,099)
                                    ----------- -------  ----------  ------  ---------  --------  ---------  -----------  ---------
BALANCE, JUNE 30, 2006               40,661,681  40,661     881,168       -   (230,000)  (26,450)  (323,795)  (1,059,792)  (488,208)


Shares issued August 16, 2006 to
escrow @ $.09 per share                 300,000     300      26,700           (300,000)  (27,000)                                 -

Shares issued from escrow,
September 30, 2006                                                             456,000    46,790                             46,790

Discount on convertible
debt - warrants                                             241,004                                                         241,004

Warrant valuation on waiver
agreement                                                    29,786                                                          29,786

Shares issued September 18, 2006
for cash at $.10 per share, net
of warrant valuation                    550,000     550      26,172                                                          26,722

Warrant valuation on shares issued
on September 18, 2006                                        28,278                                                          28,278

Shares issued November 9, 2006 for
cash at $.10 per share, net of
warrant valuation                        10,000      10         125                                                             135

Warrant valuation on shares issued
on November 9, 2006                                             865                                                             865

Shares issued November 23, 2006 to
escrow @ $.09 per share                 300,000     300      26,700           (300,000)  (27,000)                                 -

Shares issued November 23, 2006 for
cash at $.10 per share, net of
warrant valuation                     1,000,000   1,000      47,546                                                          48,546

Warrant valuation on shares issued
on November 30, 2006                                         51,454                                                          51,454

Shares issued from escrow,
December 31, 2006                                                               74,000     6,660                              6,660


                                                                 5b
(continued below)



<PAGE>

                                                        ARMOR ELECTRIC, INC.
                                                  (A DEVELOPMENT STAGE ENTERPRISE)
                                CONSOLIDATED STATEMENT OF STOCKHOLDERS' (DEFICIT) (CONTINUED)

                                                                               Escrowed Shares
                                                                              for legal services             (Deficit)
                                       Common Stock                  Common   ------------------             Accumulated    Total
                                    -------------------              Stock     Number            Shareholder   During       Stock-
                                                          Paid-in Subscription   of     Balance   Advanced   Development    holders'
                                       Shares   Amount    Capital  Receivable  Shares  Receivable  Royalty      Stage      (Deficit)
                                    ----------- -------  ----------  ------  ---------  --------  ---------  -----------  ---------

Shares issued January 10, 2007 to
escrow @ $.09 per share                 150,000     150      13,350           (150,000)  (13,500)                                 -

Shares issued January 18, 2007 for
cash at $.10 per share, net of
warrant valuation                       250,000     250      1,992                                                            2,242

Warrant valuation on shares issued
on January 18, 2007                                          22,758                                                          22,758

Shares issued February 5, 2007 for
cash at $.10 per share, net of
warrant valuation                       250,000     250           -                                                             250

Warrant valuation on shares issued
on February 5, 2007                                          24,750                                                          24,750

Options valuation on Employee stock
options granted on March 26, 2007                             19,175                                                         19,175

Stock offering costs                                        (13,169)                                                        (13,169)

Shareholder advance royalties                                                                       (10,000)                (10,000)

Shares issued April 23, 2007 for
consulting agreement @$.06 per share    250,000     250      14,750                                                          15,000

Shares issued April 23, 2007 for
research and development services
@ $.06 per share                      1,000,000   1,000      59,000                                                          60,000

Shares issued May 17, 2007 to escrow
@ $.045 per share for future legal
services                                450,000     450      19,800           (450,000)  (20,250)                                 -

Shares issued from escrow,
June 30, 2007                                                                  900,000    60,750                             60,750

Contributed capital                                           8,040                                                           8,040

Net (loss) for the year                                                                                      (1,377,327) (1,377,327)
                                   ----------- -------  ----------  ------  ---------  --------  ---------  ----------- -----------
BALANCE, JUNE 30, 2007              45,171,681  45,171   1,530,243       -          -         -   (333,795)  (2,437,119) (1,195,499)

(UNAUDITED)
Valuation of Employee Stock
options granted on March 26, 2007                           36,148                                                           36,148

Contributed capital                                          4,020                                                            4,020

Net (loss) for the period                                                                                      (446,962)   (446,962)
                                   ----------- -------  ----------  ------  ---------  --------  ---------  ----------- -----------
BALANCE, December 31, 2007
(UNAUDITED)                         45,171,681 $45,171  $1,570,411  $    -          -  $      -  $(333,795) $(2,884,081)$(1,602,294)
                                   =========== =======  ==========  ======  =========  ========  =========  =========== ===========

                                           SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS

                                                                 5c
</TABLE>



<PAGE>

ARMOR ELECTRIC, INC.

Notes to Financial Statements (unaudited)

NOTE 1 - BASIS OF PRESENTATION

In the opinion of management, the accompanying unaudited condensed consolidated
financial statements have been prepared in accordance with generally accepted
accounting principles for interim financial information and with the
instructions to Form 10-QSB. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements. In the opinion of management, all adjustments
(consisting of normal recurring accruals) considered necessary for a fair
presentation of the Company's financial position as of December 31, 2007 and the
results of its operations and cash flows for the three and six months ended
December 31, 2007 and 2006 have been made. Operating results for the six months
ended December 31, 2007 are not necessarily indicative of the results that may
be expected for the year ended June 30, 2008.

These unaudited condensed consolidated financial statements should be read in
conjunction with the audited financial statements and notes thereto contained in
the Company's Form 10-KSB for the year ended June 30, 2007.

On April 27, 2004 Armor acquired all of the issued and outstanding shares of
common stock of Nova Electric, Inc. (Nova, or the Company) a development stage
Nevada Corporation, formed October 29, 2003, in exchange for 21 million
restricted shares of common stock of Armor, pursuant to Section 368 (a) (1) (B)
of the Internal Revenue Code, which provides for a tax-free exchange under that
reorganization provision.

This stock exchange transaction, which is treated as a recapitalization of Nova
for accounting purposes, resulted in a change of control wherein the financial
statements included herein are those of the acquired company, Nova, the
accounting parent, consolidated with, Armor, Nova's accounting subsidiary, as
required for proper financial presentation purposes only. For legal purposes,
Armor is the parent and Nova is the subsidiary.

At the date of the stock exchange, all of the net assets of Armor were acquired
by Nova at fair value which equaled Armor's book value. Nova's fiscal year end
is June 30.

NOTE 2 - GOING CONCERN

Our unaudited condensed consolidated financial statements have been presented on
the basis that it is a going concern, which contemplates the realization of
assets and the satisfaction of liabilities in the normal course of business. We
have sustained operating losses since inception.

As of December 31, 2007 we had a deficit in working capital and stockholders'
equity, and are technically insolvent. Since April, 2007 we are in default on
interest payments on five convertible debentures (Note 5), one of which resulted
in a Summary Judgment (Note 7).

Our ability to continue in existence is dependent on our ability to develop
additional sources of capital, and to achieve profitable operations.
Management's plan is to pursue the relationship with NuPow'r, the R&D vendor
utilized by Armor for the electric propulsion development and sale of products
pursuant to our marketing rights. We plan to pursue additional private
placements of our common stock until we are able to achieve profitable
operations. The accompanying financial statements do not include any adjustments
that might result from the outcome of this uncertainty.

NOTE 3 - RELATED PARTY TRANSACTIONS

During the six months ended December 31, 2007, a shareholder loaned us $20,000
for which we issued two non-negotiable promissory notes which are unsecured and
bear interest at 10% per annum. In addition, a company owned by our President
advanced us an additional $10,000 as a short term unsecured advance.

NOTE 4 - CONTRIBUTED CAPITAL

Capital contributed by a shareholder during the current six month period ended
December 31, 2007 of $4,020 for office overhead was based on the fair value of
such services.


                                       6

<PAGE>


NOTE 5 - DEFAULTS ON DEBT AND EQUITY FINANCING

Below is a table containing summary information about the five defaulted
convertible debentures:

<TABLE>
<S>               <C>
                                                Granite        Granite        Pinstripe
                                                Convertible    Convertible    Convertible
                                                Debt #s 1-3    Debt #4        Debt           Totals
                                                ----------     ----------     ----------     ----------
TOTAL AMOUNTS DUE AND PAYABLE
       AS OF JUNE 30, 2007:
       Principal and principal penalties        $  449,688     $   50,000     $  367,252     $  866,940
       Accruals:
       Interest                                     46,213             --         36,638         82,851
       Interest on interest                          1,137             --             --          1,137
       Liquidated Damages                           54,144             --         41,841         95,985
       Interest on Damages                           3,441             --          2,122          5,563
                                                ----------     ----------     ----------     ----------
       TOTAL DUE AS OF JUNE 30, 2007               554,623         50,000        447,852      1,052,475

       CURRENT SIX MONTHS ENDED  ACCRUALS:
       Additional Principal on July 1, 2007             --         16,500         90,274        106,774
       Additional Principal                                        17,150                        17,150
       Accruals for the current year (6 mo.):           --
       Interest -06.30.07                                           6,747                         6,747
       Liquidated Damages - 06.30.07                                8,000                         8,000
       Interest on Damages - 06.30.07                                 420                           420
       Interest                                     40,922          6,052         33,109         80,082
       Interest on interest                          5,136            752          4,087          9,975
       Liquidated Damages                           13,185          5,320         28,864         47,369
       Interest on Damages                           5,763            933          5,255         11,950
                                                ----------     ----------     ----------     ----------

       TOTAL DUE AS OF DECEMBER 31, 2007        $  619,629     $  111,872     $  609,441     $1,340,942
                                                ==========     ==========     ==========     ==========
</TABLE>

SHAREHOLDER ADVANCE - GRANITE

On June 30, 2006, we received an advance from one the debt holders of the
convertible debentures. Since we were not aware of any debenture documents until
recently, we treated this obligation as an unsecured, non-interest bearing
shareholder advance for the year ended June 30, 2007.

In November 2007, we were presented with applicable loan documents, and have,
therefore, retroactively, accrued all associated amounts with the debt including
interest, liquidated damages and penalty interest totaling $22,909 from July 1,
2006 through September 30, 2007. The advance which is now considered to be a
10.25% secured convertible debenture, is convertible into shares of our common
stock at $.10 per share at the holder's option. Interest is to be accrued daily
at 10.25% and is payable on the anniversary date of the debenture. In the event
of default, which occurred on November 4, 2006, the interest rate will become
18%, and all interest will have a penalty interest of 18% accrued on the amounts
payable. On the first year anniversary date of the note, July 1, 2007, the
principal amount will increase from $50,000 to $66,500 if not paid by then.

We defaulted on the payment of interest on July 1, 2007, and have accrued the
default penalty of $17,150 or 30% of the total amounts due on the event date in
addition to the aforementioned $16,500 penalty. We also increased the interest
rate to 18% and accrued at this higher percentage since the default date, and
accrued liquidated damages of 2% per month to a maximum of 24% on the principal
amounts due totaling $11,990, because we failed to have an effective
Registration Statement (Form SB2) within 125 days of funding of the debt in
accordance with the associated registration rights agreement. In November 2007,
we received a default notice from the debt holder demanding payment of all
amounts outstanding.

                                       7

<PAGE>

DEFAULT ON ALL FIVE CONVERTIBLE DEBENTURES

Since April 26, 2007, we have been in default on the payment of accrued interest
totaling $76,054 on three Granite outstanding convertible debentures as required
in the loan documents, and have not cured this delinquency. These obligations
may become due and payable immediately at the option of the note holders, and we
received notices of default from all three note holders as further discussed
below. The loans provided for penalty interest of 18% per annum to commence 5
days after the event of default, and we have accrued for this interest. On a
fourth convertible debenture (referenced above as SHAREHOLDER ADVANCE -
GRANITE), we are in default on the payment of accrued interest totaling $7,167
as July1, 2007 and have not cured this delinquency. On the fifth convertible
debenture, to Pinstripe Financial, LLC, we are in default of total accrued
interest of $38,759 as of July 1, 2007 and have not cured this delinquency
either.

All of our assets were pledged as collateral on these obligations. Because of
default on the payment of the interest, all amounts due including the note
balances, accrued interest, penalties, penalty interest and liquidated damages
are payable in cash at the holders' election. These convertible debentures are
guaranteed by an affiliate owned by our president.

LAWSUIT DATED NOVEMBER 2, 2007

On November 16, 2007, we received a "Request for Judicial Intervention" filed on
behalf of one of the noteholders referenced above, whose notice of default was
rendered on July 20, 2007, along with the Granite note 4 requesting a "Summary
Judgment in Lieu of Complaint" We are required to answer to the "Notice of
Motion" and to supply certain supporting documents to the plaintiff's attorney
on or before December 12, 2007. The debt holder is requesting a summary judgment
as of November 2, 2007 for $312,091, plus attorney's fee of $3,065. We have
accrued as of September 30, 2007, $304,249 for these two obligations. We do not
have the financial resources to respond and are not going to prepare a response
at this time.

NOTE 6 - EMPLOYEE STOCK OPTION PLAN

There were no changes in the stock options outstanding during the current six
months ended December 31, 2007. As of July 1, 2007, we had an unamortized
beginning balance of $125,617 for stock option compensation. We amortized in the
current six month period $36,148, leaving a remaining unamortized balance of
$89,469, as of December 31, 2007.

NOTE 7 - SUBSEQUENT EVENTS

NOTE PAYABLE - RELATED PARTY

On February 14, 2008, our President loaned us $11,940, for which we issued a
non-negotiable promissory note which is unsecured and bear interest at 10% per
annum.

SUMMARY JUDGMENT

On January 3, 2008, a summary judgment was entered by the Supreme Court of the
State of New York against us in favor of a Granite investor (Note 5), the same
investor which owns Granite Convertible debt #1 and #4 above, in the amount of
$315,000. We were notified by the plaintiff of the judgment and received a copy
of the order to be entered at a hearing on or about January 28, 2008. As of
February 20, 2008, we have not received the final decree.


                                       8

<PAGE>


ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.

INTRODUCTION AND NOTE ON FORWARD LOOKING STATEMENTS

You should keep in mind the following as you read this Quarterly Report on Form
10-QSB:

         o        the terms "we", "us", "our", "Armor", "Armor Electric", or the
                  "Company" refer to Armor Electric Inc. and its subsidiary; and

         o        our fiscal year ends on June 30; references to fiscal 2007 and
                  fiscal 2006 and similar constructions refer to the fiscal year
                  ended on June 30 of the applicable year.

This Quarterly Report on Form 10-QSB contains statements which, to the extent
they do not recite historical fact, constitute "forward looking" statements
within the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. You can identify
these statements by the use of words like "may," "will," "could," "should,"
"project," "believe," "anticipate," "expect," "plan," "estimate," "forecast,"
"potential," "intend," "continue," and variations of these words or comparable
words. Forward looking statements do not guarantee future performance and
involve risks and uncertainties. Actual results may differ substantially from
the results that the forward looking statements suggest for various reasons,
including those discussed under the caption "Risks Related to Our Business" in
our Annual Report on Form 10-KSB for the fiscal year ended June 30, 2007. These
forward looking statements are made only as of the date of this report. The
Company expressly disclaims any obligation or undertaking to release publicly
any updates or revisions to any forward-looking statements contained herein to
reflect any change in the Company's expectations with regard thereto or any
change in events, conditions or circumstances on which any statement is based.
This discussion should be read together with the financial statements and other
financial information included in this Form 10-QSB.

The following discussion contains forward-looking statements that are subject to
significant risks and uncertainties. There are several important factors that
could cause actual results to differ materially from historical results and
percentages and results anticipated by the forward-looking statements. The
Company has sought to identify the most significant risks to its business, but
cannot predict whether or to what extent any of such risks may be realized nor
can there be any assurance that the Company has identified all possible risks
that might arise. Investors should carefully consider all of such risks before
making an investment decision with respect to the Company's stock.

OVERVIEW

The Company is a development stage company in the business of developing and
marketing electronic propulsion and battery power systems for electric powered
vehicles.


                                       9



<PAGE>

PLAN OF OPERATION

The Company has had no operations since inception and is financially dependent
on its shareholders, who have financed its existence to date.

The Company's plan of operation for the next twelve months is to raise
sufficient capital to meet its delinquent debt obligations and to continue to
develop the rights and technology owned by Nova Electric Systems Inc., its
wholly-owned subsidiary ("Nova"). Nova is in the business of developing and
marketing electronic propulsion and battery power systems for electric powered
vehicles.

DEVELOPMENT OF NOVA'S RIGHTS

Through an agreement with NuAge Electric Inc., Nova holds the rights for the use
of certain proprietary technology to install electric propulsion systems on a
variety of electric powered vehicles to include, but not limited to, mountain
bikes, regular cycles, children's cycle toys and riding vehicles, recreation ATV
units, scooters, motorcycles, go-karts, NEV (Neighborhood Electric Vehicle)
cars, race cars, regular passenger cars, buses and all other types of two and
three wheeled vehicles, water craft and in addition, a wide variety of other
vehicles and products

Nova has also acquired the rights from NuAge Electric Inc., to certain
agreements between NuAge and the bicycle manufacturer Hero Cycles in India, for
the joint venture to manufacture and distribute many of the electric powered two
and three wheel vehicles in India and for distribution from the Hero
manufacturing facilities worldwide.

The Nova business plan details a number of electric powered vehicles built as
prototype working models at the Las Vegas facility, and it is the intent of Nova
to work closely with its strategic partner, NuAge, to continue to develop a wide
variety of commercially viable vehicles and products there.

In March 2007, the Company executed a license agreement with Nu Pow'r, LLC,
under which it received an exclusive, perpetual license to market and
manufacture certain products of Nu Pow'r. The agreement does not convey the
intellectual property associated with the Nu Pow'r electric propulsion systems
or energy storage systems. The Company also agreed to pay Nu Pow'r a 15% percent
royalty on the net profit of any of the vehicles covered by the license
arrangement. In general, Nu Pow'r will receive 65% of the net profits and Armor
will receive 35%. With respect to vehicle frames, Armor is to receive 85% and Nu
Pow'r is to receive 15% of net profits.


                                       10



<PAGE>

DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

The Company has incurred operating losses since its inception, related primarily
to development, amortization and general administrative costs. During the second
quarter of fiscal 2008 the Company lost $153,739, compared with a loss of
$245,841 during the corresponding period in fiscal 2007. The Company has
incurred cumulative losses of $2,884,081 since inception.

General and administrative expenses (including legal and consulting fees and
management compensation) were $92,544 during the quarter, compared to $84,966
for the corresponding quarter in the preceding fiscal year. The increase in the
current quarter is due principally to increased levels of management
compensation. Debt servicing expense, consisting principally of interest,
increased to $61,195 (compared to $15,790 during the preceding quarter) due to
interest on the Convertible Debentures and related party debt.

LIQUIDITY AND CAPITAL RESOURCES

Since inception, the Company has financed its operations from private financing.
The Company has suffered recurring losses from operations and has a working
capital deficiency (current assets less current liabilities) of $1,602,294 as of
December 31, 2007.

The Company's capital requirements have not been significant in the past but the
Company anticipates they will increase if development and product launch begins.

In April 2006, we entered into an agreement with three private investors which
provides, among other things, that we were to receive bridge financing of
$600,000 in three installments, for issuance of 10.25%, secured convertible
debentures (the "Convertible Debentures"). Of that total, $215,000 was received
26, 2006. These first installment obligations are payable April 26, 2008,
however, if not paid by April 26, 2007, the principal amount will increase by
$70,953, for a total of principal due of $334,193 plus accrued interest. The
second amount of $150,000 was to be funded no later than five days after the
Company completes a Registration Statement (Form SB-2), and provides reasonable
proof that a specified purchase order has been achieved.

On the second installment, $50,000 was received, but has been accounted for as
an advance since the entire required second installment has not been received
nor were notes issued for this advance until after June 30, 2006. The third
amount of $235,000 was to be received no later than five days after a
Registration Statement covering the securities was declared effective.

The Convertible Debentures are collateralized by a lien on all of our assets.
The Convertible Debenture holders are entitled, at their option, to convert all
or any part of the principal amount of the Convertible Debenture into shares of
the Company's common stock, at the price per share of $0.12. The Company was to
make annual interest payments to each holder, on each conversion date (as to the
principal amount being converted) and on the maturity date. Each Convertible
Debenture holder was granted a warrant to purchase shares of our Common Stock
equal in amount to the loan value received divided by the share price of $0.12.
In the first installment, we granted warrants to each entity for the purchase of
597,222 shares or a total of 1,791,667 shares.


                                       11



<PAGE>

All of the warrants have "piggy-back" and demand registration rights and shall
survive for seven (7) years from the Closing Date, except for the warrants
issued for the private placement further described which expire in two (2)
years.

Since April 2007 we have been in default on interest payments on five
convertible debentures, with an aggregate balance, as of December 31, 2007, of
$1,340,942.

In January 2008 one of the convertible debenture holders obtained a judgment
against the Company in the amount of $315,000. To the Company's knowledge, no
action has been taken to enforce the judgment against the Company's assets, but
such action could be taken at any time.

CASH REQUIREMENTS AND NEED FOR ADDITIONAL FUNDS

In order to develop the Company's marketing strategy, the Company anticipates it
will require approximately $750,000 in the coming year for general and
administrative expenses and research and development which could be provided
through additional financing by way of private placements such as the Company
has done in the past. In addition, the Company may have to raise additional
funds to retire or refinance the Convertible Debentures.

ITEM 3. CONTROLS AND PROCEDURES

The Company's principal executive officers and principal financial
officer, based on their evaluation of the registrant's disclosure controls and
procedures (as defined in Rules 13a-14 (c) of the Securities Exchange Act of
1934) as of December 31, 2007 have concluded that the registrants' disclosure
controls and procedures are adequate and effective to ensure that material
information relating to the registrants and their consolidated subsidiaries is
recorded, processed, summarized and reported within the time periods specified
by the SEC's rules and forms, particularly during the period in which this
quarterly report has been prepared.

The registrants' principal executive officers and principal financial officer
have concluded that there were no significant changes in the registrants'
internal controls or in other factors that could significantly affect these
controls subsequent to December 31, 2007, the date of their most recent
evaluation of such controls, and that there was no significant deficiencies or
material weaknesses in the registrant's internal controls.


                                       12



<PAGE>

                           PART II: OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

In November of 2007 the Company received a Summons and Notice of Motion for
Summary Judgment in Lieu of Complaint filed in the Supreme Court of New York.
The action was filed by Schreiber Living Trust, holder of Convertible Debentures
issued by the Company. The Motion alleges that the amount due under the
Convertible Debentures is $312,090, and seeks recovery of that amount, plus
interest and attorneys' fees. The Company did not file a response to the action
and, in January 2008, a judgment for $315,000 was entered against the Company.

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

None

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

The Company is in default under five convertible debentures, with an aggregate
balance, as of December 31, 2007, of $1,340,942.

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

None

ITEM 5. OTHER INFORMATION

None

ITEM 6. EXHIBITS

31.1 Certificate of Chief Executive Officer pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.

31.2 Certificate of Chief Financial Officer pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.

32.1 Certificate of Chief Executive Officer pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002

32.2 Certificate of Chief Financial Officer pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002


                                       13



<PAGE>

                                   SIGNATURES

         In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

Date: February 20, 2008
                                                  ARMOR ELECTRIC INC.


                                                  /s/ Merrill Moses
                                                  ------------------------------
                                                  Merrill Moses, President


                                       14