----

|   | ý                                 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| Nevada                                   | 88-0326480                           |
|------------------------------------------|--------------------------------------|
| (State of Incorporation)                 | (I.R.S. Employer Identification No.) |
|                                     |                                 |
| 601 Cien Street, Suite 235, Kemah, TX    | 77565-3077                           |
| (Address of Principal Executive Offices) | (ZIP Code)                           |

| Large accelerated filer  ̈      | Accelerated filer  ̈                |
|-------------------------------------|-----------------------------------------|
|   Non-accelerated filer  ̈ |   Smaller reporting company x |

----

TABLE OF CONTENTS

| Item     | Description                                                                           | Page   |
|----------|---------------------------------------------------------------------------------------|--------|
|     | PART I - FINANCIAL INFORMATION                                                        |   |
|     |                                                                                  |   |
| ITEM 1.  | FINANCIAL STATEMENTS                                                                  | 3      |
| ITEM 2.  | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | 21     |
| ITEM 3.  | QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISKS                            | 24     |
| ITEM 4.  | CONTROLS AND PROCEDURES                                                               | 24     |
|     |                                                                                  |   |
|     | PART II - OTHER INFORMATION                                                           |   |
|     |                                                                                  |   |
| ITEM 1.  | LEGAL PROCEEDINGS                                                                     | 25     |
| ITEM 1A. | RISK FACTORS                                                                          | 25     |
| ITEM 2.  | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS                           | 25     |
| ITEM 3.  | DEFAULT UPON SENIOR SECURITIES                                                        | 25     |
| ITEM 4.  | [REMOVED AND RESERVED]                                                                | 25     |
| ITEM 5.  | OTHER INFORMATION                                                                     | 25     |
| ITEM 6.  | EXHIBITS                                                                              | 25     |

----

PART I - FINANCIAL INFORMATION

| Consolidated Financial Statements                                                                                                     |   |
|---------------------------------------------------------------------------------------------------------------------------------------|--------|
|    Unaudited Consolidated Balance Sheets - March 31, 2011 and December 31, 2010                                             | 4      |
|    Unaudited Consolidated Statements of Operations and Comprehensive Loss - Three Months Ended March 31, 2011 and 2010 | 5      |
|    Unaudited Consolidated Statements of Cash Flows - Three Months Ended March 31, 2011 and 2010                        | 6      |
| Notes to Unaudited Consolidated Financial Statements                                                                                  | 8      |
|                                                                                                                                  |   |

----

| AMERICAN INTERNATIONAL INDUSTRIES, INC. AND SUBSIDIARIES |
|----------------------------------------------------------|
| Consolidated Balance Sheets                              |

|                                                                                                           |   | March 31, 2011 |         |    | December 31, 2010 |   |
|----------------------------------------------------------------------------------------------------------------|--------|----------------|--------------|---------|-------------------|--------|
| Assets                                                                                                         |   |           |         |    |              |   |
| Current assets:                                                                                                |   |           |         |    |              |   |
|    Cash and cash equivalents                                                                         |   | $              | 693,265      |    |              | $      | 1,471,362 |   |
|    Certificates of deposit                                                                           |   |           | 779,397      |    |              |   | 777,119 |   |
|    Trading securities                                                                                |   |           | 1,290,817    |    |              |   | 1,790,444 |   |
|    Accounts receivable, less allowance for doubtful accounts                                         |   |           |         |    |              |   |   |   |
|      of $78,187                                                                            |   |           | 2,954,163    |    |              |   | 4,060,621 |   |
|    Short-term notes receivable                                                                       |   |           | 421,300      |    |              |   | 421,300 |   |
|    Current portion of notes receivable                                                               |   |           |  39,577 |    |              |   | 38,892 |   |
|    Accounts receivable from related parties                                                          |   |           | 10,494       |    |              |   | - |   |
|    Inventories, net                                                                                  |   |           | 6,077,464    |    |              |   | 5,433,493 |   |
|    Real estate held for sale                                                                         |   |           | 5,600,321    |    |              |   | 5,600,321 |   |
|    Prepaid expenses and other current assets                                                         |   |           | 223,083      |    |              |   | 253,534 |   |
|    Assets held for sale                                                                              |   |           | 163,817      |    |              |   | 237,997 |   |
|      Total current assets                                                                  |   |           | 18,253,698   |    |              |   | 20,085,083 |   |
|                                                                                                      |   |           |         |    |              |   |   |   |
| Long-term notes receivable, less current portion                                                               |   |           | 939,409      |    |              |   | 1,004,564 |   |
| Real estate held for sale                                                                                      |   |           | 225,000      |    |              |   | 225,000 |   |
| Property and equipment, net of accumulated depreciation and amortization                                  |   |           | 3,684,039    |    |              |   | 3,673,289 |   |
| Goodwill                                                                                                       |   |           | 674,539      |    |              |   | 674,539 |   |
| Marketable securities - available for sale                                                                     |   |           | 13,000       |    |              |   | 130,000 |   |
| Other assets                                                                                                   |   |           | 76,004       |    |              |   | 97,003 |   |
| Assets held for sale                                                                                           |   |           | -            |    |              |   | 1,383 |   |
|        Total assets                                                              |   | $              | 23,865,689   |    |              | $      | 25,890,861 |   |
| Liabilities and Equity                                                                                         |   |           |         |    |              |   |   |   |
| Current liabilities:                                                                                           |   |           |         |    |              |   |   |   |
|    Accounts payable and accrued expenses                                                             |   | $              | 2,695,730    |    |              | $      | 3,571,269 |   |
|    Accrued lawsuit settlement                                                                        |   |           | -            |    |              |   | 1,650,000 |   |
|    Short-term notes payable                                                                          |   |           | 382,796      |    |              |   | 91,183 |   |
|    Accounts and notes payable to related parties                                                     |   |           | 20,956       |    |              |   | 20,552 |   |
|    Current installments of long-term debt                                                            |   |           | 3,564,087    |    |              |   | 4,794,723 |   |
|    Liabilities associated with assets held for sale                                             |   |           | 157,401      |    |              |   | 228,554 |   |
|      Total current liabilities                                                             |   |           | 6,820,970    |    |              |   | 10,356,281 |   |
|                                                                                                           |   |           |         |    |              |   |   |   |
| Long-term debt, less current installments                                                                      |   |           | 3,830,072    |    |              |   | 1,807,931 |   |
|      Total liabilities                                                                     |   |           | 10,651,042   |    |              |   | 12,164,212 |   |
|                                                                                                           |   |           |         |    |              |   |   |   |
| Commitments and contingencies                                                                             |   |           | -            |    |              |   |  - |   |
|                                                                                                           |   |           |         |    |              |   |   |   |
| Equity:                                                                                                        |   |           |         |    |              |   |   |   |
|    Preferred stock, $0.001 par value, 1,000,000 authorized; none issued                              |   |           | -            |    |              |   |  - |   |
|    Common stock, $0.001 par value, 50,000,000 authorized;                                            |   |           |         |    |              |   |   |   |
|        12,047,926 and 10,971,325 shares issued, respectively                |   |           |         |    |              |   |   |   |
|        11,668,169 and 10,604,868 shares outstanding, respectively |   |           | 12,048       |    |              |   | 10,972 |   |
|    Additional paid-in capital                                                                        |   |           | 34,950,856   |    |              |   | 34,271,654 |   |
|    Common stock issuance obligation                                                                  |   |           | 245,000      |    |              |   | - |   |
|    Accumulated deficit                                                                               |   |           | (21,185,833  | )  |              |   | (19,806,883 | )  |
|    Accumulated other comprehensive loss                                                              |   |           | (1,392,000   | )  |              |   | (1,275,000 | )  |
|    Less treasury stock, at cost; 379,757 and 366,457 shares, respectively                  |   |           | (563,057     | )  |              |   | (554,428 | )  |
|    Total American International Industries, Inc. equity                                         |   |           | 12,067,014   |    |              |   | 12,646,315 |   |
|        Noncontrolling interest                                                   |   |           | 1,147,633    |    |              |   | 1,080,334 |   |
|    Total equity                                                                                 |   |           | 13,214,647   |    |              |   | 13,726,649 |   |
|    Total liabilities and equity                                                                 |   |  $        | 23,865,689   |    |              | $      | 25,890,861 |   |
|  The accompanying notes are an integral part of these unaudited consolidated financial statements.        |

----

| AMERICAN INTERNATIONAL INDUSTRIES, INC. AND SUBSIDIARIES     |
|--------------------------------------------------------------|
| Consolidated Statements of Operations and Comprehensive Loss |
| (Unaudited)                                                  |

|                                                                                                |   | Three Months Ended |       |
|-----------------------------------------------------------------------------------------------------|--------|--------------------|------------|
|                                                                                           |   | March 31, 2011     |       |   | March 31, 2010 |   |
|                                                                                                |   |               |       |   |   |   |
| Revenues                                                                                            |   | $                  | 4,225,008  |   |   | $ | 3,727,215 |   |
| Costs and expenses:                                                                                 |   |               |       |   |   |   |   |   |
|    Cost of sales                                                                          |   |               | 2,228,563  |   |   |   | 2,333,423 |   |
|    Selling, general and administrative                                                    |   |               | 2,952,444  |   |   |   | 3,112,802 |   |
|      Total operating expenses                                              |   |               | 5,181,007  |   |   |   | 5,446,225 |   |
|                                                                                                |   |               |       |   |   |   |   |   |
| Operating loss                                                                                      |   |               | (955,999   | )  |   |   | (1,719,010 | ) |
|                                                                                           |   |               |       |   |   |   |   |   |
| Other income (expenses):                                                                            |   |               |       |   |   |   |   |   |
|    Interest and dividend income                                                           |   |               | 5,596      |   |   |   | 20,411 |   |
|    Delta lawsuit settlement                                                               |   |               | -          |   |   |   | 700,000 |   |
|    Realized gains on the sale of trading securities                                       |   |               | 142,565    |   |   |   | 104,311 |   |
|    Unrealized losses on trading securities                                                |   |               | (399,638   | ) |   |   | (62,081 | )  |
|    Interest expense                                                                       |   |               | (119,354   | )  |   |   | (126,825 | ) |
|    Other income                                                                           |   |               | 15,810     |   |   |   | 14,381 |   |
|      Total other income (expense)                                               |   |               | (355,021   | ) |   |   | 650,197 |   |
|                                                                                           |   |               |       |   |   |   |   |   |
|      Loss before income tax                                                     |   |               | (1,311,020 | )  |   |   | (1,068,813 | ) |
|      Income tax expense                                                    |   |               | 8,491      |   |   |   | 13,780 |   |
|      Loss from continuing operations, net of income taxes                       |   |               | (1,319,511 | )  |   |   | (1,082,593 | )  |
|      Loss on disposal of discontinued operations                                |   |               | (55,000    | )  |   |   | - |   |
|      Loss from discontinued operations, net of income taxes                     |   |               | (4,410     | )  |   |   | (365,150 | )  |
|      Net loss                                                                   |   |               | (1,378,921 | )  |   |   | (1,447,743 | ) |
|      Net (income) loss attributable to the noncontrolling interest         |   |               | (29        | )  |   |   | 343,334 |   |
|      Net loss attributable to American International Industries, Inc. |   | $                  | (1,378,950 | )  |   | $ | (1,104,409 | )  |
| Net loss per common share - basic and diluted:                                            |   |               |       |   |   |   |   |   |
|      Continuing operations                                                      |   | $                  | (0.11      | )  |   | $  | (0.08 | )  |
|      Discontinued operations                                                    |   |               | (0.01      | )  |   |   | (0.04 | )  |
|      Total                                                                      |   | $                  | (0.12      | )  |   | $ | (0.12 | ) |
|                                                                                           |   |               |       |   |   |   |   |   |
| Weighted average common shares - basic and diluted                                                  |   |               | 11,399,236 |   |   |   | 9,329,142 |   |
|                                                                                                |   |               |       |   |   |   |   |   |
| Comprehensive loss                                                                                  |   |               |       |   |   |   |   |   |
|      Net loss                                                                   |   | $                  | (1,378,921 | )  |   | $  |  (1,447,743 | )  |
|      Unrealized loss on marketable securities                                   |   |               | (117,000   | )  |   |   |  - |   |
| Total comprehensive loss                                                                            |   |               | (1,495,921 | )  |   |   |  (1,447,743 | )  |
|      Comprehensive (income) loss attributable to the noncontrolling interest    |   |               |  (29  | )  |   |   | 343,334 |   |
| Comprehensive loss attributable to American International Industries, Inc.                          |   | $                  | (1,495,950 | )  |   | $ |  (1,104,409 | )  |
|                                                                                                |   |
| The accompanying notes are an integral part of these unaudited consolidated financial statements.   |

----

| AMERICAN INTERNATIONAL INDUSTRIES, INC. AND SUBSIDIARIES |
|----------------------------------------------------------|
| Consolidated Statements of Cash Flows                    |

|                                                                                                                                                         | Three Months Ended March 31, |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------|
|                                                                                                                                                         |                         | 2011 |   |   | 2010 |   |
| Cash flows from operating activities:                                                                                                                        |                         |   |   |   |   |   |   |   |
|    Net loss                                                                                                                                        |                         | $ | (1,378,921 | ) |   | $ | (1,447,743 | ) |
|    Loss from discontinued operations, net of income taxes                                                                                          |                         |   | (59,410 | )  |   |   | (365,150 | )  |
|    Net loss from continuing operations                                                                                                             |                         |   | (1,319,511 | )  |   |   | (1,082,593 | )  |
|    Adjustments to reconcile net loss from continuing operations to net cash provided by (used in) operating activities from continuing operations: |                         |   |   |   |   |   |   |   |
|        Depreciation and amortization                                                                                           |                         |   | 109,255 |   |   |   | 121,121 |   |
|        Share-based compensation                                                                                                |                         |   | 507,549 |   |   |   | 962,770 |   |
|        Realized gains on the sale of trading securities                                                                        |                         |   | (142,565 | ) |   |   | (104,311 | )  |
|        Unrealized gains on trading securities                                                                                  |                         |   | 399,638 |   |   |   | 62,081 |   |
|        Change in operating assets and liabilities:                                                                        |                         |   |   |   |   |   |   |   |
|           Accounts receivable                                                                                   |                         |   | 1,106,458 |   |   |   | (219,113 | )  |
|           Inventories                                                                                           |                         |   | (643,971 | )  |   |   | 780,020 |   |
|           Prepaid expenses and other current assets                                                             |                         |   | 30,451 |   |   |   | (4,362 | )  |
|           Other assets                                                                                          |                         |   | 20,999 |   |   |   | - |   |
|           Accounts payable and accrued expenses                                                                 |                         |   | (2,185,539 | ) |   |   | (335,768 | )  |
|              Net cash provided by (used in) operating activities from continuing operations      |                         |   | (2,117,236 | )  |   |   | 179,845 |   |
|                                                                                                                                                         |                         |   |   |   |   |   |   |   |
| Cash flows from investing activities from continuing operations:                                                                                             |                         |   |   |   |   |   |   |   |
|    Purchase of trading securities                                                                                                                  |                         |   | - |   |   |   | (74,208 | )  |
|    Sale of trading securities                                                                                                                      |                         |   |  242,554 |   |   |   | 617,220 |   |
|    Purchase of property and equipment                                                                                                              |                         |   | (120,005 | ) |   |   | (58,584 | ) |
|    Investment in certificate of deposit                                                                                                            |                         |   | (2,278 | ) |   |   | (6,242 | ) |
|    Proceeds from notes receivable                                                                                                                  |                         |   | 9,470 |   |   |   | 8,832 |   |
|    Loans to related parties                                                                                                                        |                         |   | (10,090 | ) |   |   | (241,079 | ) |
|             Net cash provided by investing activities from continuing operations                      |                         |   | 119,651 |   |   |   | 245,939 |   |
|                                                                                                                                                    |                         |   |   |   |   |   |   |   |
| Cash flows from financing activities from continuing operations:                                                                                             |                         |   |   |   |   |   |   |   |
|    Proceeds from issuance of common stock                                                                                                          |                         |   | 300,000 |   |   |   | 746,810 |   |
|    Proceeds from common stock issuance obligation                                                                                                  |                         |   | 245,000 |   |   |   | - |   |
|    Net borrowings (repayments) under lines of credit agreements and short-term notes                                                          |                         |   | 869,963 |   |   |   | (180,800 | )  |
|    Principal payments on debt                                                                                                                 |                         |   | (186,846 | ) |   |   | (172,454 | ) |
|    Payments for acquisition of treasury stock                                                                                                      |                         |   | (8,629 | ) |   |   | (3,274 | )  |
|             Net cash provided by financing activities from continuing operations            |                         |   | 1,219,488 |   |   |   | 390,282 |   |
|                                                                                                                                                         |                         |   |   |   |   |   |   |   |

| Net increase (decrease) in cash and cash equivalents from continuing operations |   |   | (778,097 | )  |   |   | 816,066 |   |
|--------------------------------------------------------------------------------------|--------|--------|----------|---------|--------|--------|---------|--------|

| Cash and cash equivalents at beginning of period |   |   | 1,471,362 |   |   |    | 1,692,340 |   |
|--------------------------------------------------|--------|--------|-----------|--------|--------|---------|-----------|--------|
| Cash and cash equivalents at end of period       |   | $      | 693,265   |   |   | $  | 2,508,406 |   |
|                                             |

----

|   | Three Months Ended March 31, |
|--------|------------------------------|
|   |                         | 2011 |   |   | 2010 |   |

| Discontinued operations - SET:                                                                          |   |    |    |   |   |    |          |    |
|---------------------------------------------------------------------------------------------------------|--------|---------|---------|--------|--------|---------|---------------|---------|
|    Net cash provided by operations                                                       |   | $       | -       |   |   | $  | 233,359       |    |
|    Net cash provided by (used in) investing activities                                   |   |    | -       |   |   |    | (186,323      | )  |
|    Net cash used in financing activities                                                      |   |    | -       |   |   |    | (47,036       | )  |
| Net decrease in cash and cash equivalents from discontinued operations                                  |   |    | -       |   |   |    | -             |    |
| Cash and cash equivalents at beginning of year from discontinued operations                             |   |    | -       |   |   |    | -             |    |
| Cash and cash equivalents at end of year from discontinued operations                              |   | $       | -       |   |   | $  | -             |    |
|                                                                                                    |   |    |    |   |   |    |          |    |
| Supplemental schedule of cash flow information:                                                         |   |    |    |   |   |    |          |    |
|    Interest paid                                                                         |   | $       | 109,849 |   |   | $  | 128,144       |    |
|    Taxes paid                                                                                 |   | $       |  - |   |   | $  |  6,149   |    |
|                                                                                                    |   |    |    |   |   |    |          |    |
| Non-cash transactions:                                                                                  |   |    |    |   |   |    |          |    |
|    Receipt of common stock to convert promissory note due from Delta                          |   | $  | -       |   |   | $  | 872,352       |    |
|    Note payable issued for lawsuit settlement                                                 |   | $  | 400,000 |   |   | $  |  -       |    |
|    Unrealized loss on available for sale securities                                           |   | $  | 117,000 |   |   | $  |  -       |    |
|    Accounts payable and dividends payable assumed in Delta reverse merger transaction         |   | $  | -       |   |   | $  |  597,131 |    |
|    Adjustment to noncontrolling interest in Delta and BOG                                     |   | $  | 33,262  |   |   | $  |  310,906 |    |
|    Delta dividends declared and unpaid                                                        |   | $  | 60,000  |   |   | $  |  60,000  |    |
|    Stock issued to related party for receivable                                               |   | $  | -       |   |   | $  |  262,600 |    |
|  The accompanying notes are an integral part of these unaudited consolidated financial statements. |

----

----

----

|                                              |   | As of March 31, 2011 |      |
|---------------------------------------------------|--------|---------------------------|-----------|
|                                              |   |                      |      |   |   |   |   |  Fair Value Measurements Using: |   |
|                                              |   | CarryingAmount            |      |   | TotalFair Value |   |   | Quoted Pricesin Active Markets(Level 1) |   |   | Significant OtherObservable Inputs(Level 2) |   |   | SignificantUnobservable Inputs(Level 3) |   |
| Financial Assets:                                 |   |                      |      |   |   |   |   |   |   |   |   |   |   |   |   |
|   Trading Securities                    |   | $                         | 1,290,817 |   |   | $ | 1,290,817 |   |   | $ | 1,290,817 |   |   | $ | - |   |   | $ | - |   |
|   Marketable Securities - available for sale |   | $                         | 13,000    |   |   | $ | 13,000 |   |   | $ | 13,000 |   |   | $  |  - |   |   | $  |  - |   |

----

|           |   | March 31, 2011 |      |   | December 31, 2010 |   |
|----------------|--------|----------------|-----------|--------|-------------------|--------|
| Finished goods |   | $              | 6,126,913 |   |              | $      | 5,482,932 |   |
| Less reserve   |   |           | (49,449   | )      |              |   | (49,439 | ) |
|           |   | $              | 6,077,464 |   |              | $      | 5,433,493 |   |

                    -  Management with the appropriate authority commits to a plan to sell the asset; 
                    -  The asset is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets; 
                    -  An active program to locate a buyer and other actions required to complete the plan of sale have been initiated; 
                    -  The sale of the property or asset within one year is probable and will qualify for accounting purposes as a sale; 
                    -  The asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and 
                    -  Actions required to complete the plan of sale indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. 

----

|                                                                                                                               |   | March 31, 2011 |           |    | December 31, 2010 |   |
|------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|----------------|---------|-------------------|--------|
| Note secured by a 2nd lien on property, interest at 3% due in semi-annual payments, principal payment due on December 31, 2011 (a) |   | $              | 601,300        |    |              | $      | 601,300 |   |
| Unsecured note receivable, interest at 10% due monthly, principal due on or before December 31, 2011 (b)                           |   |           | 120,000        |    |              |   | 120,000 |   |
|                                                                                                                               |   |           | 721,300        |    |              |   | 721,300 |   |
| Reserve due to uncertainty of collectibility                                                                                       |   |           |  (300,000 | )  |              |   |  (300,000 | )  |
| Short-term notes receivable                                                                                                        |   | $              | 421,300        |    |              | $      | 421,300 |   |

|                                                                                                                                                                                  |   | March 31, 2011 |           |    | December 31, 2010 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|----------------|---------|-------------------|--------|
| Unsecured note receivable for sale of former subsidiary, Marald, Inc., principal and interest due monthly through June 5, 2012                                                        |   | $              | 49,781         |    |              | $      | 59,251 |   |
| Note secured by 2nd lien on property of former subsidiary, SET, interest at 4% due monthly beginning July 1, 2011, principal payment due on June 1, 2014 (a)                          |   |           |  629,205  |    |              |   | 629,205 |   |
| Unsecured note receivable for sale of former subsidiary, Marald, Inc., due in monthly payments of $3,074, including interest at 4%, beginning April 1, 2011 through March 1, 2021 (b) |   |           | 300,000        |    |              |   | 300,000 |   |
| Unsecured note receivable purchased from Texas Community Bank, interest at 8% due monthly, principal due January 2009 (c)                                                             |   |           | 300,000        |    |              |   | 300,000 |   |
| Note secured by shares of DCP stock, interest due quarterly at 5%, principal payment due on or before June 23, 2012 (d)                                                               |   |           |  -        |    |              |   | 55,000 |   |
| Notes receivable                                                                                                                                                                      |   |           | 1,278,986      |    |              |   | 1,343,456 |   |
| Reserve due to uncertainty of collectibility                                                                                                                                          |   |           |  (300,000 | )  |              |   | (300,000 | )  |
|                                                                                                                                                                                  |   |           | 978,986        |    |              |   | 1,043,456 |   |
| Less current portion                                                                                                                                                                  |   |           | (39,577        | )  |              |   | (38,892 | )  |
| Long-term notes receivable                                                                                                                                                            |   | $              | 939,409        |    |              | $      | 1,004,564 |   |

----

|                           | Years  |   | March 31, 2011 |       |    | December 31, 2010 |   |
|--------------------------------|--------|--------|----------------|------------|---------|-------------------|--------|
| Land                           |   |   | $              | 1,663,020  |    |              | $      | 1,663,020 |   |
| Building and improvements      | 20     |   |           | 974,768    |    |              |   | 967,504 |   |
| Machinery and equipment        | 7-15   |   |           | 3,560,223  |    |              |   | 3,449,237 |   |
| Office equipment and furniture | 7      |   |           | 279,944    |    |              |   | 278,871 |   |
| Automobiles                    | 5      |   |           | 724,013    |    |              |   | 724,013 |   |
|                           |   |   |           | 7,201,968  |    |              |   | 7,082,645 |   |
| Less accumulated depreciation  |   |   |           | (3,517,929 | )  |              |   | (3,409,356 | )  |
| Net property and equipment     |   |   | $              | 3,684,039  |    |              | $      | 3,673,289 |   |

|                                                                                                                                                                                   |   | March 31, 2011 |    |   | December 31, 2010 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|---------|--------|-------------------|--------|
| Insurance note payable with interest at 4.99% principal and interest due in monthly payments of $22,796 through May 1, 2011                                                       |   | $              | 22,796  |   |              | $      | 91,183 |   |
| Note payable with interest at 5% due monthly, principal due in monthly payments of $20,000, with a final principal balance due on February 1, 2012, secured by trading securities |   |           | 360,000 |   |              |   | - |   |
|                                                                                                                                                                                   |   | $              | 382,796 |   |              | $      | 91,183 |   |

----

|                                                                                                                                                                                                                                                                          |   | March 31, 2011 |       |    | December 31, 2010 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|------------|---------|-------------------|--------|
| Revolving line of credit to a bank, which allows Delta to borrow up to $2,000,000, due in monthly payments of interest only, with interest at prime floating rate of 3.25%, with the principal balance due April 30, 2011, secured by assets of Delta. (a) (b) | $      |           | 1,683,527  |    |              | $      | 1,658,527 |   |
| Note payable to a bank, due in monthly installments of $11,549, including interest at 7.25% with a principal balance due in November 2013, secured by real property. (b)                                                                                       |   |           | 1,436,375  |    |              |   | 1,444,875 |   |
| Revolving line of credit to a bank, which allows NPI to borrow up to $3,250,000, interest due monthly at 6.5%, principal balance due December 31, 2010, secured by assets of NPI.                                                                              |   |           | -          |    |              |   |  1,239,000 |   |
| Revolving line of credit to a bank, which allows NPI to borrow up to $3,000,000, interest due monthly at the greater of prime (3.25%) plus one or 5%, principal balance due in April 2012, secured by assets of NPI. (b)                                  |   |           | 2,083,963  |    |              |   | - |   |
| Note payable to a bank, due in quarterly payments of interest only, with interest at 6%, with a principal balance due in May 2011, secured by real property.                                                                                                             |   |           | 1,566,000  |    |              |   | 1,566,000 |   |
| Note payable due in monthly payments of $19,373, including interest at 6%, through March 2013, secured by assets of Delta.                                                                                                                                                    |   |           | 515,884    |    |              |   | 571,013 |   |
| Note payable to a bank, due in monthly payments of $6,120, including interest at 8.25%, through August 9, 2012, secured by assets of Delta.                                                                                                                         |   |           | 97,546     |    |              |   |  108,442 |   |
| Other secured notes with various terms                                                                                                                                                                                                                                        |   |           | 10,864     |    |              |   | 14,797 |   |
|                                                                                                                                                                                                                                                                          |   |           | 7,394,159  |    |              |   | 6,602,654 |   |
| Less current portion                                                                                                                                                                                                                                                          |   |           | (3,564,087 | )  |              |   | (4,794,723 | )  |
|                                                                                                                                                                                                                                                                          |   | $              | 3,830,072  |    |              | $      | 1,807,931 |   |

| 2011  |   | $      | 3,508,208 |   |
|-------|--------|--------|-----------|--------|
| 2012  |   |   | 2,385,315 |   |
| 2013  |   |   | 1,500,636 |   |
| Total |   | $      | 7,394,159 |   |

----

|                                       |   | Three Months Ended March 31, |    |
|--------------------------------------------|--------|-----------------------------------|---------|
|                                       |   | 2011                              |    |   | 2010 |   |
| Common shares issued for services          |   | $                                 | 507,549 |   |   | $ | 962,770 |   |
| Stock options issued for services          |   |                              | -       |   |   |   | - |   |
|    Stock-based compensation |   | $                            | 507,549 |   |   | $ | 962,770 |   |

                -  American issued 576,601 shares of common stock valued at $380,049 to employees, directors and third parties. 
                -  Delta issued 2,550,000 shares of its common stock with a value of $127,500 to employees. 
                -  American issued 100,000 shares of common stock valued at $115,020 to employees, directors and third parties. 
                -  Delta issued 9,607,843 shares of its common stock with a value of $847,750 to employees. 

----

|                       |   | Three Months ended March 31, |   |
|----------------------------|--------|------------------------------|--------|
|                       |   | 2011                         |   | 2010 |   |
| Current:                   |   | $                            |   |   | $ |   |   |
|   Federal             |   |                         | -      |   |   | - |   |
|   State               |   |                         | 8,491  |   |   | 13,780 |   |
| Total current              |   |                         | 8,491  |   |   | 13,780 |   |
|                       |   |                         |   |   |   |   |   |
| Deferred:                  |   |                         |   |   |   |   |   |
|   Federal             |   |                         | -      |   |   | - |   |
|   State               |   |                         | -      |   |   | - |   |
| Total deferred             |   |                         | -      |   |   |  - |   |
|                       |   |                         |   |   |   |   |   |
| Total income tax provision |   | $                       | 8,491  |   | $ | 13,780 |   |

|                                          |   | Three Months ended March 31, |     |
|-----------------------------------------------|--------|------------------------------|----------|
|                                          |   | 2011                         |     | 2010 |   |
| Income tax expense computed at statutory rate |   | $                            | (445,747 | )  | $ | (363,396 | ) |
| Share-based compensation                      |   |                         | 172,567  |   |   | 327,342 |   |
| Meals and entertainment                       |   |                         | 6,555    |   |   | 3,941 |   |
| Other                                         |   |                         | -        |   |   | 16 |   |
| Change in valuation allowance                 |   |                         | 266,625  |   |   | 32,097 |   |
| Texas Margin Tax                              |   |                         | 8,491    |   |   | 13,780 |   |
|                                     |   | $                            | 8,491    |   | $ | 13,780 |   |

|                                               |   | March 31, 2011 |       | December 31, 2010 |   |
|----------------------------------------------------|--------|----------------|------------|-------------------|--------|
| Deferred Tax Assets:                               |   |           |       |              |   |   |   |
|   Net operating loss carryforward             |   | $         | 6,242,794  |              | $      | 5,935,666 |   |
|   Loss on discontinued operations             |   |           | 20,199     |              |   | 119,000 |   |
|   Unrealized loss on trading securities       |   |           | 135,877    |              |   | - |   |
|   Other                                       |   |           | 6,916      |              |   | 49,168 |   |
| Total deferred tax assets                          |   |           | 6,405,786  |              |   | 6,103,834 |   |
|                                               |   |           |       |              |   |   |   |
| Deferred Tax Liabilities:                          |   |           |       |              |   |   |   |
|   Tax depreciation in excess of books         |   |           | (209,331   | )                 |   | (837,322 | ) |
|   Unrealized gains on trading securities |   |           | -          |              |   | (562,898 | )  |
|   Other                                       |   |           | -          |              |   |  (13,764 | ) |
| Total deferred tax liabilities                     |   |           | (209,331   | )                 |   | (1,413,984 | ) |
|                                               |   |           |       |              |   |   |   |
| Valuation allowance                                |   |           | (6,196,455 | )                 |   | (4,689,850 | ) |
| Net deferred tax asset                             |   | $         | -          |              | $      | - |   |

----

| Operating Losses |
|------------------|
| Amount           |   | Expires |
| $                | 1,552,323 |   | 2018 |
|             | 1,462,959 |   | 2019 |
|             | 2,086,064 |   | 2020 |
|             | 860,006 |   |  2022  |
|             | 566,409 |   |  2023  |
|             |  1,028,302 |   |  2024  |
|             | 1,551,019 |   | 2025 |
|             |  73,187 |   |  2026  |
|             | 288,855 |   | 2027 |
|             | 3,626,977 |   |  2028  |
|             | 3,821,420 |   | 2029  |
|             | 593,343 |   | 2030  |
|             | 909,342 |   | 2031  |
| $                | 18,420,206 |   |

|                   |   | Amount |    |
|------------------------|--------|--------|---------|
| Year December 31, 2011 |   | $      | 83,250  |   |
| Year December 31, 2012 |   |   | 55,500  |   |
|                   |   | $      | 138,750 |   |

----

|   |  · Northeastern Plastics ("NPI") - a wholly-owned subsidiary, is a supplier of automotive after-market products and consumer durable goods products to retailers and wholesalers in the automotive after-market and in the consumer durable electrical products markets;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |  · Delta Seaboard International ("Delta") - a 46.4% owned subsidiary, is an onshore rig-based well-servicing contracting company providing services to the oil and gas industry;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |  · Corporate overhead - American's investment holdings including financing current operations and expansion of its current holdings as well as evaluating the feasibility of entering into additional businesses.  Corporate overhead also includes Brenham Oil & Gas ("BOG"), a division that owns an oil, gas and mineral royalty interest in Washington County, Texas, which is carried on American's balance sheet at $0. Through Brenham Oil & Gas, American is engaged in negotiations with financial institutions for the purpose of financing potential acquisitions of existing oil and gas properties and reserves. The Company is seeking to acquire a portfolio of oil and gas assets in North America and West Africa and large oil concessions in West Africa. American owns 54,680,074 shares of common stock, representing 54.7% of BOG’s total outstanding shares. |

|                                                  |   | Three months ended March 31, |       |
|-------------------------------------------------------|--------|------------------------------|------------|
|                                                  |   | 2011                         |       |   | 2010 |   |
| Revenues:                                             |   |                         |       |   |   |   |   |   |
| Northeastern Plastics                                 |   | $                            | 1,601,859  |   |   | $ | 1,488,557 |   |
| Delta Seaboard                                        |   |                         | 2,622,699  |   |   |   | 2,238,658 |   |
| Brenham Oil & Gas                                 |   |                         | 450        |   |   |   | - |   |
|    Total revenues                           |   | $                            | 4,225,008  |   |   | $ | 3,727,215 |   |
|                                                  |   |                         |       |   |   |   |   |   |
| Operating income (loss) from continuing operations:   |   |                         |       |   |   |   |   |   |
| Northeastern Plastics                                 |   | $                            | (132,056   | )  |   | $ | (80,564 | ) |
| Delta Seaboard                                        |   |                         | 47,739     |   |   |   | (1,294,631 | )  |
| Corporate                                             |   |                         | (871,682   | )  |   |   | (343,815 | )  |
| Operating loss from continuing operations        |   |                         | (955,999   | ) | (1,719,010 | )  |
| Other income (expense) from continuing operations     |   |                         | (355,021   | )  |   |   | 650,197 |   |
| Net loss from continuing operations before income tax |   | $                            | (1,311,020 | )  |   | $ | (1,068,813 | )  |
|                                                  |   |                         |       |   |   |   |   |   |
| Depreciation and amortization:                        |   |                         |       |   |   |   |   |   |
| Northeastern Plastics                                 |   | $                            | 14,501     |   |   | $ | 14,845 |   |
| Delta Seaboard                                        |   |                         | 93,149     |   |   |   | 103,302 |   |
| Corporate                                             |   |                         | 1,605      |   |   |   | 2,974 |   |
| Total depreciation and amortization                   |   | $                            | 109,255    |   |   | $ | 121,121 |   |
|                                                  |   |                         |       |   |   |   |   |   |
| Interest expense:                                     |   |                         |       |   |   |   |   |   |
| Northeastern Plastics                                 |   | $                            | 51,722     |   |   | $ | 25,189 |   |
| Delta Seaboard                                        |   |                         | 39,835     |   |   |   | 40,366 |   |
| Corporate                                             |   |                         | 27,797     |   |   |   | 61,270 |   |
| Total interest expense                                |   | $                            | 119,354    |   |   | $ | 126,825 |   |
|                                                  |   |                         |       |   |   |   |   |   |

----

|                                                                                            |   | Three months ended March 31, |    |
|-------------------------------------------------------------------------------------------------|--------|------------------------------|---------|
|                                                                                            |   | 2011                         |    |   | 2010 |   |
| Capital expenditures:                                                                      |   |                         |    |   |   |   |   |   |
| Northeastern Plastics                                                                           |   | $                            | 1,756   |   |   | $ | - |   |
| Delta Seaboard                                                                                  |   |                         | 118,249 |   |   |   | 58,584 |   |
| Corporate                                                                                       |   |                         |  - |   |   |   | - |   |
| Total capital expenditures                                                                      |   | $                            | 120,005 |   |   | $ | 58,584 |   |
|                                                                                            |   |                         |    |   |   |   |   |   |
| Non-cash transactions:                                                                          |   |                         |    |   |   |   |   |   |
| Delta                                                                                           |   |                         |    |   |   |   |   |   |
|    Accounts payable and dividends payable assumed in Delta reverse merger transaction |   | $                            | -       |   |   | $ | 597,131 |   |
|    Delta dividends declared and unpaid                                                |   | $                       | 60,000  |   |   | $ | 60,000 |   |
| Corporate                                                                                       |   |                         |    |   |   |   |   |   |
|    Unrealized loss on available for sale securities                              |   | $                            | 117,000 |   |   | $ | - |   |
|    Receipt of common stock to convert promissory note due from Delta                  |   | $                       | -       |   |   | $  | 872,352 |   |
|    Adjustment to noncontrolling interest in Delta and BOG                             |   | $                       | 33,262  |   |   | $  | 310,906 |   |
|    Stock issued to related party for receivable                                       |   | $                            | -       |   |   | $ | 262,600 |   |
|    Note payable issued for lawsuit settlement                                         |   | $                            | 400,000 |   |   | $ | - |   |

|                                   |   | March 31, 2011 |       |   | December 31, 2010 |   |
|----------------------------------------|--------|----------------|------------|--------|-------------------|--------|
| Identifiable assets:                   |   |           |       |   |              |   |
| Northeastern Plastics                  |   | $              | 8,587,013  |   |              | $      | 8,679,492 |   |
| Delta                                  |   |           | 5,911,859  |   |              |   | 6,112,938 |   |
| Corporate                              |   |           | 9,203,000  |   |              |   | 10,859,051 |   |
| Assets held for sale                   |   |           | 163,817    |   |              |   | 239,380 |   |
|    Total identifiable assets |   | $              | 23,865,689 |   |              | $      | 25,890,861 |   |

----

|                                                                                    |   |
|-----------------------------------------------------------------------------------------|--------|
|                                                                                    |   | March 31, 2011 |   |   | December 31, 2010 |   |
| Assets held for sale                                                                    |   |   |   |   |   |   |
| Current assets held for sale:                                                           |   |   |   |   |   |   |
|    Cash and cash equivalents                                                  |   | $ | 22,240 |   |   | $ | 44,542 |   |
|    Accounts receivable                                                        |   |   | 22,135 |   |   |   | 8,250 |   |
|    Accounts receivable from related parties                                   |   |   |   |   |   |   |   |   |
|    Inventories                                                                |   |   | 104,106 |   |   |   | 166,659 |   |
|    Prepaid expenses and other current assets                                  |   |   | 15,336 |   |   |   | 18,546 |   |
|      Total current assets held for sale                             |   |   | 163,817 |   |   |   | 237,997 |   |
|                                                                               |   |   |   |   |   |   |   |   |
| Other assets                                                                            |   |   | - |   |   |   | 1,383 |   |
|        Total assets held for sale                         |   | $ | 163,817 |   |   | $ | 239,380 |   |
|                                                                                    |   |   |   |   |   |   |   |   |
| Liabilities associated with assets held for sale                                        |   |   |   |   |   |   |   |   |
| Current liabilities associated with assets held for sale:                               |   |   |   |   |   |   |   |   |
|    Accounts payable and accrued expenses                                      |   | $ | 157,401 |   |   | $ | 228,554 |   |
|      Total current liabilities associated with assets held for sale |   |   | 157,401 |   |   |   | 228,554 |   |
| Long-term capital lease obligations, less current installments                          |   |   |   |   |   |   |   |   |
|      Total liabilities associated with assets held for sale         |   | $ | 157,401 |   |   | $ | 228,554 |   |

|                                        |   | Three Months Ended   |    |
|---------------------------------------------|--------|----------------------|---------|
|                                   |   |  March 31, 2011 |    |   | March 31, 2010 |   |
| Revenues                                    |   |                 |    |   |   |   |   |   |
|     DCP                      |   | $               | 246,131 |   |   | $ | 62,942 |   |
|     SET                      |   |                 | -       |   |   |   | 1,206,356 |   |
| Total revenues from discontinued operations |   | $               | 246,131 |   |   | $ | 1,269,298 |   |
| Net loss before income tax                  |   |                 |    |   |   |   |   |   |
|     DCP                      |   |                 | (4,410  | )  |   |   | 3,302 |   |
|     SET                      |   |                 | -       |   |   |   | (368,452 | )  |
| Net loss before income tax                  |   | $               | (4,410  | )  |   | $ | (365,150 | )  |
| Loss on disposal of discontinued operations |   | $               | (55,000 | )  |   | $ | - |   |

----

|   |  · Northeastern Plastics (NPI) - a wholly-owned subsidiary, is a supplier of automotive after-market products and consumer durable goods products to retailers and wholesalers in the automotive after-market and in the consumer durable electrical products markets;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |  · Delta Seaboard International (Delta) - a 46.4% owned subsidiary, is an onshore rig-based well-servicing contracting company providing services to the oil and gas industry;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |  · Corporate overhead - American's investment holdings including financing current operations and expansion of its current holdings as well as evaluating the feasibility of entering into additional businesses.  Corporate overhead also includes Brenham Oil & Gas, a division that owns an oil, gas and mineral royalty interest in Washington County, Texas, which is carried on American's balance sheet at $0. Through Brenham Oil & Gas, American is engaged in negotiations with financial institutions for the purpose of financing potential acquisitions of existing oil and gas properties and reserves. The Company is seeking to acquire a portfolio of oil and gas assets in North America and West Africa and large oil concessions in West Africa. American owns 54,680,074 shares of common stock, representing 54.7% of BOG’s total outstanding shares. |

----

----

----

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS

ITEM 4T. CONTROLS AND PROCEDURES

----

ITEM 1. LEGAL PROCEEDINGS

ITEM 1A. RISK FACTORS

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

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

ITEM 4. [REMOVED

ITEM 5. OTHER INFORMATION

ITEM 6. EXHIBITS

| Exhibit No. | Description                                                                                                                       |
|-------------|-----------------------------------------------------------------------------------------------------------------------------------|
| 31.1        | Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350 as adopted pursuant to the Sarbanes-Oxley Act of 2002 |
| 31.2        | Certification of Chief Financial Officer Pursuant to Section 906 of Sarbanes-Oxley Act of 2002                                    |
| 32.1        | Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350 as adopted pursuant to the Sarbanes-Oxley Act of 2002 |
| 32.2        | Certification of Chief Financial Officer Pursuant to Section 906 of Sarbanes-Oxley Act of 2002                                    |

----