**UNITED
      STATES**


**SECURITIES
      AND EXCHANGE COMMISSION**


**WASHINGTON,
      D.C. 20549**





**FORM
      10-Q**





x
            QUARTERLY
                REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIESEXCHANGE
                ACT OF 1934





For
      Quarter Ended: September 30, 2008; or





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





For
      the
      transition period _________ to __________





Commission
      File Number: 0-52561





**American
      Resources and Development Company**


(Exact
      name of Registrant as specified in its charter)





**UTAH**
            
            **87-0401400**(State
                or other Jurisdiction of
            
            (IRS
                Employerof
                Incorporation or Organization)
            
            Identification
                No.)**5891
                Sagewood, Murray, UT**
            
            **84107**(Address
                of principal executive offices)
            
            (Zip
                Code)





**(801)
      230-1030**


(Issuer’s
      telephone number, including area code)





Check
      whether the issuer (1) filed all reports required to be filed by Section 13
      or
      15 (d) of the Securities Exchange Act of 1934 during the past 12 months (or
      for
      such shorter period that a registrant was required to file such reports), and
      (2) has been subject to such filing requirements for the past 90
      days.   Yes  ̈   No x





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





As
      of
      November 14, 2008, there were 467,039,666 shares of the issuer's Common Stock,
      $0.001 par value, issued and outstanding.





Transitional
      Small Business Disclosure Format      Yes  ̈   No x









**AMERICAN
      RESOURCES and DEVELOPMENT COMPANY AND SUBSIDIARIES**


**Report
      on Form 10-Q**





**PART
                I – FINANCIAL INFORMATION**Item
                1. Financial Statements
            2Item
                2. Management's Discussion and Analysis or Plan or
                Operations
            8Item
                3. Controls and Procedures
            10**PART
                II – OTHER INFORMATION**Item
                1. Legal Proceedings
            10Item
                2. Unregistered Sales of Equity Securities and Use of
                Proceeds
            10Item
                3. Defaults Upon Senior Securities
            10Item
                4. Submission of matters to a Vote of Security Holders
            10Item
                5. Other Information
            10Item
                6. Exhibits
            10




1





**AMERICAN
          RESOURCES AND DEVELOPMENT COMPANY AND SUBSIDIARIES**
 Condensed
          Consolidated Balance Sheets
 
 September 30,
                
                March 31,2008
                
                2008(Unaudited)ASSETSCURRENT
                    ASSETSCash
                
                $
                14,606
                
                $
                21,429Investments
                
                
                4,049,356
                
                
                3,364,330Total
                    Current Assets
                
                
                4,063,962
                
                
                3,385,759TOTAL
                    ASSETS
                
                $
                4,063,962
                
                $
                3,385,759LIABILITIES
                    AND STOCKHOLDERS' EQUITY (DEFICIT)CURRENT
                    LIABILITIESAccounts
                    payable
                
                $
                -
                
                $
                -Total
                    Current Liabilities
                
                
                -
                
                
                -TOTAL
                    LIABILITIES
                
                
                -
                
                
                -STOCKHOLDERS'
                    EQUITY (DEFICIT)Common
                    stock; $0.01 par value; 500,000,000shares
                    authorized; 467,039,666 sharesissued
                    and outstanding
                
                
                467,040
                
                
                467,040Additional
                    paid-in capital
                
                
                11,553,822
                
                
                11,553,822Accumulated
                    deficit
                
                
                (7,956,900
                )
                
                (8,635,103
                )Total
                    Stockholders' Equity (Deficit)
                
                
                4,063,962
                
                
                3,385,759TOTAL
                    LIABILITIES ANDSTOCKHOLDERS'
                    EQUITY (DEFICIT)
                
                $
                4,063,962
                
                $
                3,385,759
 
 The
          accompanying notes are an integral part of these financial
          statements.
  2
 
 **AMERICAN
          RESOURCES AND DEVELOPMENT COMPANY AND SUBSIDIARIES**
 Condensed
          Consolidated Statements of Operations
 (Unaudited)
 
 For the Three Months Ended
                
                For the Six Months EndedSeptember 30,
                
                September 30,2008
                
                2007
                
                2008
                
                2007REVENUES
                
                $
                (94,710
                )
                $
                733,739
                
                $
                789,112
                
                $
                590,066COST
                    OF SALES
                
                
                -
                
                
                -
                
                
                -
                
                
                -GROSS
                    PROFIT
                
                
                (94,710
                )
                
                733,739
                
                
                789,112
                
                
                590,066EXPENSESGeneral
                    and administrative
                
                
                106,181
                
                
                144,854
                
                
                180,514
                
                
                153,220Total
                    Expenses
                
                
                106,181
                
                
                144,854
                
                
                180,514
                
                
                153,220OPERATING
                    INCOME (LOSS)
                
                
                (200,891
                )
                
                588,885
                
                
                608,598
                
                
                436,846OTHER
                    INCOME (EXPENSES)Interest
                    expense
                
                
                -
                
                
                (61,060
                )
                
                -
                
                
                (87,774
                )Interest
                    income
                
                
                62,003
                
                
                55,496
                
                
                69,605
                
                
                55,496Total
                    Other Income
                
                
                .
                
                
                
                
                
                .(Expense)
                
                
                62,003
                
                
                (5,564
                )
                
                69,605
                
                
                (32,278
                )NET
                    INCOME (LOSS)
                
                $
                (138,888
                )
                $
                583,321
                
                $
                678,203
                
                $
                404,568BASIC
                    INCOME (LOSS)PER
                    SHARE
                
                $
                (0.00
                )
                $
                0.00
                
                $
                0.00
                
                $
                0.00WEIGHTED
                    AVERAGENUMBER
                    OF SHARESOUTSTANDING
                
                
                466,770,406
                
                
                466,770,406
                
                
                466,770,406
                
                
                466,770,406
  The
          accompanying notes are an integral part of these financial
          statements.
  3
 
 **AMERICAN
          RESOURCES AND DEVELOPMENT COMPANY AND SUBSIDIARIES**
 Condensed
          Consolidated Statements of Cash Flows
 (Unaudited)
 
 For the Six Months EndedSeptember 30,2008
                
                2007CASH
                    FLOWS FROM OPERATING ACTIVITIESNet
                    income (loss)
                
                $
                678,203
                
                $
                404,568Adjustments
                    to reconcile net loss to net cashprovided
                    (used) by operating activities:Earnings
                    on investments
                
                
                (789,112
                )
                
                (839,976
                )Interest
                    earned on investments
                
                
                (69,603
                )
                
                -Unrealized
                    loss on investments
                
                
                -
                
                
                -Changes
                    in operating assets and liabilitiesIncrease
                    in accounts payable and accrued expenses
                
                
                -
                
                
                68,819Net
                    Cash Used by Operating Activities
                
                
                (180,512
                )
                
                (366,589
                )CASH
                    FLOWS FROM INVESTING ACTIVITIESCash
                    paid for investments
                
                
                (250,000
                )
                
                (1,725,000
                )Cash
                    withdrawals from investments
                
                
                423,689
                
                
                -Net
                    Cash Provided (Used) by Investing Activities
                
                
                173,689
                
                
                (1,725,000
                )CASH
                    FLOWS FROM FINANCING ACTIVITIESChange
                    in notes receivable
                
                
                -
                
                
                1,025,591Change
                    in notes receivable - related parties
                
                
                
                
                
                (759,752
                )Net
                    Cash Used by Financing Activities
                
                
                -
                
                
                265,839NET
                    INCREASE (DECREASE) IN CASH
                
                
                (6,823
                )
                
                (1,825,750
                )CASH
                    AT BEGINNING OF PERIOD
                
                
                21,429
                
                
                1,865,852CASH
                    AT END OF PERIOD
                
                $
                14,606
                
                $
                40,102CASH
                    PAID FOR:Interest
                
                $
                -
                
                $
                -Income
                    Taxes
                
                $
                -
                
                $
                -SUPPLIMENTAL
                    SCHEDULE OF NON-CASH ANDINVESTING
                    ACTIVITIES
                
                $
                -
                
                $
                -
 
 The
          accompanying notes are an integral part of these financial
          statements.
  4
 **AMERICAN
        RESOURCES AND DEVELOPMENT COMPANY AND**
 **SUBSIDIARIES**
 Notes
        to
        the Condensed Consolidated Financial Statements
 
 NOTE
        1
        -  BASIS
        OF
        FINANCIAL STATEMENT PRESENTATION
 
 The
        accompanying unaudited condensed financial statements have been prepared
        by the
        Company pursuant to the rules and regulations of the Securities and Exchange
        Commission. Certain information and footnote disclosures normally included
        in
        financial statements prepared in accordance with accounting principles generally
        accepted in the United States of America have been condensed or omitted in
        accordance with such rules and regulations. The information furnished in
        the
        interim condensed financial statements includes normal recurring adjustments
        and
        reflects all adjustments, which, in the opinion of management, are necessary
        for
        a fair presentation of such financial statements. Although management believes
        the disclosures and information presented are adequate to make the information
        not misleading, it is suggested that these interim condensed financial
        statements be read in conjunction with the Company's most recent audited
        financial statements and notes thereto included in its March 31, 2008 Annual
        Report on Form 10-K of the Company. Operating results for the three months
        ended
        September 30, 2008 are not necessarily indicative of the results that may
        be
        expected for the year ending March 31, 2009.
 
 NOTE
        2 -  SIGNIFICANT
        ACCOUNTING POLICIES
 
 a.
        Organization
 
 The
        accompanying consolidated financial statements include those of American
        Resources and Development Company (the Company) and its wholly-owned subsidiary,
        Springfield Finance and Mortgage Company, LLC (SFMC). In addition, the
        consolidated financial statements include those of Springfield Investment,
        Inc.
        (SFIC) and Springfield Construction, LLC (SFCC). Both SFIC and SFCC, although
        not majority owned by the Company, have been determined to be “Variable Interest
        Entities” pursuant to FIN 46 and have therefore been consolidated in these
        financial statements. All inter-company items and transactions have been
        eliminated in consolidation.
 
 The
        Company was formed on March 21, 1983 and until 2007 was in the business of
        providing debt financing to other entities involved in the development of
        residential real estate through its SFMC subsidiary. The Company obtained
        the
        capital for the financing of real estate development from outside sources
        as
        well as certain majority shareholders. Since March 2007 the Company has changed
        its primary strategic focus to that of making temporary investments in stock
        options through a “short strangle” strategy.
 
 b.
        Accounting Method
 
 The
        Company’s consolidated financial statements are prepared using the accrual
        method of accounting. The Company has elected an March 31
        year-end.
  5
  **AMERICAN
        RESOURCES AND DEVELOPMENT COMPANY AND**
 **SUBSIDIARIES**
 Notes
        to
        the Condensed Consolidated Financial Statements
 
 NOTE
        2 -  SIGNIFICANT
        ACCOUNTING POLICIES (Continued)
 
 c.
        Recognition of Revenues
 
 Investment
        income is the Company’s primary earnings focus. Revenues from investments are
        derived from trading securities, and unrealized gains and losses are recorded
        as
        earnings whether or not the underlying securities are sold. During periods
        in
        which the Company’s investments decrease in value, the losses are recorded as
        negative revenues.
 
 d.
        Use of
        Estimates
  The
        preparation of financial statements in conformity with generally accepted
        accounting principles requires management to make estimates and assumptions
        that
        affect the reported amounts of assets and liabilities and disclosure of
        contingent assets and liabilities at the date of the financial statements
        and
        the reported amounts of revenues and expenses during the reporting period.
        Actual results could differ from those estimates.
  e.
        Concentration of Credit Risk
 
 The
        Company maintains its cash in bank deposit accounts at high credit quality
        financial institutions. The balances, at times, may exceed federally insured
        limits. In addition, the Company occasionally maintains cash investments
        with
        institutions that are not federally insured.
  f.
        Cash
        and Cash Equivalents
 
 The
        Company considers all highly-liquid investments with a maturity of three
        months
        or less when purchased to be cash equivalents.
 
 g.
        Advertising
 
 The
        Company follows the policy of charging the costs of advertising to expense
        as
        incurred. There were no advertising charges during the periods presented
        in
        these financial statements.
 
 h.
        Property and Equipment
 
 Property,
        equipment, and capital leases are recorded at cost and are depreciated over
        the
        estimated useful life of the related assets, generally three to seven years.
        When assets are retired or otherwise disposed of, the cost and related
        accumulated depreciation are removed from the accounts, and any resulting
        gain
        or loss is reflected in income for the period.
  6
 
 **AMERICAN
        RESOURCES AND DEVELOPMENT COMPANY AND**
 **SUBSIDIARIES**
 Notes
        to
        the Condensed Consolidated Financial Statements
  NOTE
        2 -  SIGNIFICANT
        ACCOUNTING POLICIES (Continued)
 
 i.
        Basic
        Income (Loss) per Share
 
 Basic
        income (loss) per share is computed based on the weighted average number
        of
        common shares outstanding during the period. As of September 30, 2008, there
        were no common stock equivalents outstanding. Therefore, the basic and fully
        diluted income (loss) per share is the same for the periods presented
        herein.
 
 NOTE
        3
        -  COMMON
        STOCK
 
 During
        fiscal 2005 the Company issued 12,500,000 shares of its restricted common
        stock
        in exchange for the purchase of 100% of the members’ units and net assets of
        SFMC. The value of the exchange ($8,923) was deemed by management to be equal
        to
        the net book value of the assets and liabilities of SFMC since the only assets
        acquired were cash and notes receivable with values substantially equal to
        their
        face values, and the only liabilities were notes payable and accrued interest
        bearing terms deemed equal to traditional terms used in arms-length
        transactions. As of September 30, 2008, the Company had 467,039,666 shares
        of
        common stock issued and outstanding.
  NOTE
        4 –
SIGNIFICANT EVENTS
 
 During
        the period ended September 30, 2008, the Company invested a sum of $250,000
        in
        BC Oil, LLC. {“BC”), an Idaho company, in order to help BC meet its short-term
        cash requirements. In exchange for this investment, BC has agreed to pay
        the
        Company 8.00% percent per month of the outstanding investment.
  7





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





**CAUTIONARY
      FORWARD - LOOKING STATEMENT**





*Statements
      included in this Management's Discussion and Analysis of Financial Condition
      and
      Results of Operations, and in future filings by the Company with the Securities
      and Exchange Commission, in the Company's press releases and in oral statements
      made with the approval of an authorized executive officer which are not
      historical or current facts are "forward-looking statements" made pursuant
      to
      the safe harbor provisions of the Private Securities Litigation Reform Act
      of
      1995 and are subject to certain risks and uncertainties that could cause actual
      results to differ materially from historical earnings and those presently
      anticipated or projected. The Company wishes to caution readers not to place
      undue reliance on any such forward-looking statements, which speak only as
      of
      the date made.*





**A.**  **Management’s
      Plan of Operation**





American
      Resources & Development Company ("ARDCO" or "the Company"), formerly known
      as Leasing Technology, Incorporated, was incorporated in Utah on March 21,
      1983.
      On February 20, 1997 it name was changed to American Resources and Development
      Company. When used throughout this document, unless the context suggests
      otherwise, the "Company" refers to ARDCO and/or its subsidiaries.





By
      March
      31, 2007, the real estate market in which had previously constituted the
      Company’s primary business focus, had slowed considerably. Hence, the Company
      elected to terminate its business of providing financing for real estate
      development; and became focused on investing in the ‘Futures Options market’.







The
      Company utilizes a ‘short strangle’ trading strategy; and, relies on the
      experienced investment advisors at MSI Trading to make all trading decisions
      and
      the brokers at Brewer Investment Group to execute orders and monitor margins
      on
      the account. These personal have a combined total of over 60 years of trading
      experience. Brewer is paid the industry standard commissions and fees; and
      MSI
      Trading is paid five (5%) percent of the net monthly income.





On
      April
      18th, 2007 the Company opened account number 396-44607 with Infinity; and on
      May
      31st, 2007, in order to receive better executions and commissions on trades,
      the
      Company transferred its account from Infinity to Brewer Futures Group, account
      number D13 89 N8535. All
      of
      the Company’s trading in the futures market is presently being conducted thru
      its account at Brewer with funds being held at Peregrine Financial Group, the
      holding Futures Commission Merchant (FCM), where the company is able to rely
      on
      the experience and expertise of several trading specialists as well as on the
      experience and expertise of the Investment Advisors at MSI Trading. The Brokers
      at Brewer and PFG (FCM) are all registered with the NFA and CFTC regulatory
      bodies of the Futures industry.





By
      utilizing the strategy of trading ‘Short Strangle Options’ the company is able
      to take advantage of trading the RANGE, rather than the DIRECTON of the market.
      Profits are earned (or lost) by receiving the time decay from the premium
      (credit) received from selling Option Contracts that have 30 to 60 day
      expiration. Option positions are generally closed out and new ones reset after
      the third Friday of each month. Thus, there are approximately 12 trading periods
      each year; and, the monthly liquidity allows traders to properly analyze and
      evaluate the recent trading range of the market before positioning new trades
      for the succeeding month. From a cash management perspective this also provides
      excellent liquidity.





The
      Company’s goal is to take advantage of the markets trading RANGE rather than its
      DIRECTION. We sell Out-of-the-Money Call and Put Option contracts on the
      S&P 500 Futures (the underlying) market and receive a credit on each trade.
      We then take advantage of the time decay of these
      Out-Of-The-Money options as the market stays between our two selected Strike
      Price levels. This strategy is called a Short Strangle.  Profits (and or
      losses) are earned  from the credit (premium) received and the
      time decay of the option contracts. Positions are generally closed out and
      new
      positions entered after the third Friday of each month, thus there are
      approximately 12 trading periods each year. The 30 day liquidity period allows
      us to properly analyze and evaluate the recent trading range of the market;
      and,
      to keep pace with the ever changing value of the S&P 500 Futures price. The
      re-positioning of trades for each succeeding month is a critical
      component in controlling risk. From a cash management perspective this
      concept provides excellent liquidity. Call Option Strike Prices are usually
      sold
      100 points ABOVE the value of the underlying while Put Option Strike Prices
      are usually sold 125 - 200 points BELOW the underlying.




8




There
      are
      no limitations on the percentage of Company assets which the Company may invest
      in any one investment, or type of investment. Any Company policy regarding
      such
      investments may be changed without a vote of the Company’s shareholders. It is
      the Company’s policy to make investments primarily for income, though assets
      also may be acquired for possible capital gain.




**RESULTS
      OF OPERATIONS**





**For
      the three months ended September 30, 2008 compared to the three months ended
      September 30, 2007.**





During
      the three months ended September 30, 2008, the Company had negative revenues
      totaling $94,710, compared to revenues of $733,739 during the same period in
      2007. This decrease is attributed to the Company’s experiencing significant
      losses on its investments during the current quarter, as opposed to experiencing
      significant gains in the comparable quarter of the 2007 fiscal
      year.





Operating
      expenses for the three months ended September 30, 2008 totaled $106,181, a
      27%
      decrease from the comparable period of 2007. This decrease  resulted
      primarily from a decrease in general and administrative in the current period,
      particularly relating to auditing and accounting fees, as a result of
      streamlining its accounting and reporting processes.





The
      Company earned net loss of $138,888 during the three month period ended
      September 30, 2008, compared to a net income of $583,321 in the comparable
      period of 2007. This increased net loss resulted primarily from the Company’s
      investment losses, partially offset by its decreased operating expenses during
      the period. Basic net loss per share was $(0.00) for the three month period
      ended September 30, 2008, representing only a minimal change from the comparable
      period of 2007.





**For
      the six months ended September 30, 2008 compared to the six months ended
      September 30, 2007.**





During
      the six months ended September 30, 2008, the Company had revenues totaling
      $789,112, compared to revenues of $590,066 during the same period in 2007.
      This
      increase is attributed to the Company’s investment gains over the course of the
      six months, partially offset by significant losses on its investments during
      the
      current quarter.





Operating
      expenses for the six months ended September 30, 2008 totaled $180,514, a 18%
      increase from the comparable period of 2007. This increase  resulted
      primarily from a increase in general and administrative in the current period,
      particularly relating to auditing and accounting fees, as the Company developed
      and implemented certain accounting protocols to help make reporting more timely
      and efficient.





The
      Company earned net income of $678,203 during the six month period ended
      September 30, 2008, compared to a net income of $404,568 in the comparable
      period of 2007. This increased net income resulted primarily from the Company’s
      investment income, partially offset by its increased operating expenses during
      the period. Basic net income per share was $0.00 for the six month period ended
      September 30, 2008, representing only a minimal change from the comparable
      period of 2007.




**Liquidity
      and Capital Resources**





As
      of
      September 30, 2008, the Company had working capital of $4,063,962 compared
      to
      working capital of $3,385,759 at March 31, 2008. The change in working capital
      resulted primarily from the Company’s investment income.




9




During
      the six months ended September 30, 2008 the Company experienced negative cash
      flow from operating activities of $180,512, and had positive cash flows from
      investing activities of $173,689. The Company had zero cash flows from financing
      activities during the six months ended September 30, 2008. The Company’s cash
      requirements are currently so small that the Company can keep nearly all of
      its
      liquid assets invested in the market at all times. When the Company’s cash needs
      become significant, the Company will simply liquidate a portion of its working
      investments. Management does not anticipate the necessity of any external
      financing within the next 12 months.





**ITEM
      3. CONTROLS AND PROCEDURES**





**Evaluation
      of Disclosure Controls and Procedures**





The
      Company maintains disclosure controls and procedures that are designed to ensure
      that information required to be disclosed by the Company in the reports that
      it
      files or submits to the Securities and Exchange Commission under the Securities
      Exchange Act of 1934, as amended, is recorded, processed, summarized and
      reported within the time periods specified by the Securities and Exchange
      Commission’s rules and forms, and that information is accumulated and
      communicated to the Company management, including the principal executive and
      principal financial officer (whom the Company refers to in this periodic report
      as the Certifying Officer), as appropriate to allow timely decisions regarding
      required disclosure. Company management evaluated, with the participation of
      the
      Certifying Officer, the effectiveness of the Company disclosure controls and
      procedures as of June 30, 2008, pursuant to Rule 13a-15(b) under the Securities
      Exchange Act. Based upon that evaluation, the Certifying Officer concluded
      that,
      as of June 30, 2008, the Company disclosure controls and procedures were
      effective.




**Changes
      in Internal Controls**




There
      were no changes in our internal control over financial reporting that occurred
      during the quarter ended September 30, 2008 that have materially affected,
      or
      are reasonably likely to materially affect, our internal control over financial
      reporting.





**PART
      II - OTHER INFORMATION.**





**ITEM
      1. LEGAL PROCEEDINGS.**





None





**ITEM
      2. CHANGES IN SECURITIES AND USE OF PROCEEDS.**





None





**ITEM
      3. DEFAULTS UPON SENIOR SECURITIES.**





None





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





None





**ITEM
      5. OTHER INFORMATION.**




None





**ITEM
      6. EXHIBITS**




10




The
      following exhibits are filed as a part of this report:




**Exhibit
                Number***
            
            **Title
                of Document**
            
            **Location****Item
                31**
            
            **Rule
                13a-14(a)/15d-14(a) Certifications**31.01
            
            Certification
                of Principal Executive Officer and Principal Financial Officer Pursuant
                to
                Rule 13a-14
            
            Attached**Item
                32**
            
            **Section
                1350 Certifications**32.01
            
            Certification
                Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section
                906 of
                the Sarbanes-Oxley Act of 2002 (Chief Executive Officer and Chief
                Financial Officer)
            
            Attached


_______________


*
            All
                exhibits are numbered with the number preceding the decimal indicating
                the
                applicable SEC reference number in Item 601 and the number following
                the
                decimal indicating the sequence of the particular document.




**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.





American
                Resources and Development Company,a
                Utah corporationDated:
                November 14, 2008
            /s/
                Keith M ElisonBy:
                Keith M ElisonIts:
                Chief Financial Officer




11