U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   Form 10-QSB

(Mark One)
[X]      Quarterly  Report under Section 13 or 15(d) of the Securities  Exchange
         Act of 1934

                 For the quarterly period ended August 31, 2006

[_]      Transition Report under Section 13 or 15(d) of the Exchange Act for the
         Transition Period from ________ to ___________

                         Commission File Number: 0-50333

                          ADVANCED MEDIA TRAINING, INC.
        (Exact name of small business issuer as specified in its charter)


           Delaware                                              95-4810658
(State or other jurisdiction of                               (I.R.S. Employer
 incorporation or organization)                              Identification No.)


                       17337 Ventura Boulevard, Suite 208
                            Encino, California 91316
                    Issuer's Telephone Number: (818) 784-0040
            (Address and phone number of principal executive offices)

         Check whether the issuer (1) filed all reports  required to be filed by
Section  13 or 15(d) of the  Exchange  Act  during  the past 12 months  (or such
shorter period that the  registrant was required to file such reports),  and (2)
has been subject to such filing  requirements  for the past 90 days.

                              Yes [X]    No [_]

         Check whether the issuer is a "shell  company" as defined in Rule 12b-2
of the Securities Exchange Act of 1934. Yes [_] No [X]

         The Registrant has 23,833,524  shares of Common stock,  par value $.001
per share issued and outstanding as of August 31, 2006. Based on the closing bid
price of the issuer's common stock on August 31, 2006 the aggregate market value
of the voting stock held by  non-affiliates  of the  registrant on that date was
approximately $6,136,000.

         Traditional Small Business Disclosure Format (check one) Yes [_] No [X]


<PAGE>


                            INDEX TO QUARTERLY REPORT
                                 ON FORM 10-QSB



PART I   FINANCIAL INFORMATION
                                                                            PAGE
                                                                            ----
Item 1.       Financial Statements.......................................      3
              Balance Sheets
                  August 31, 2006 and May 31, 2006.......................      4
              Statements of Operations and Accumulated Deficit
                  For the Three Months Ended
                  August 31, 2006 and 2005...............................      5
              Statements of Shareholders' Deficit
                  For the Three Months Ended August 31, 2006.............      6
              Statements of Cash Flows
                  For the Three Months Ended
                  August 31, 2006 and 2005...............................      7
              Notes to Financial Statements..............................      8

Item 2.       Management's Discussion and Analysis or Plan
              of Operation...............................................     13

Item 3.       Controls and Procedures....................................     17

PART II       OTHER INFORMATION

Item 1.       Legal Proceedings..........................................     18

Item 2.       Changes in Securities and Use of Proceeds..................     18

Item 3.       Defaults upon Senior Securities............................     18

Item 4.       Submission of Matters to a Vote of Security Holders........     18

Item 5.       Other Information..........................................     18

Item 6.       Exhibits ..................................................     18

Signatures...............................................................     19


                                       2
<PAGE>


                                     PART I
                              FINANCIAL INFORMATION

ITEM 1.       FINANCIAL STATEMENTS

                (Financial Statements Commence on Following Page)


                                       3
<PAGE>


ADVANCED MEDIA TRAINING, INC.


BALANCE SHEETS
-------------------------------------------------------------------------------
                                                      August 31,       May 31,
                                                        2006            2006
                                                     -----------    -----------
                                                     (Unaudited)

ASSETS

Cash .............................................   $    36,701    $    50,701

Accounts receivable, Net of allowance
  for doubtful accounts of $16,590
  in each period .................................        31,426         17,986

Property and equipment, Net of accumulated
  depreciation of $11,709 in each period .........           -0-            -0-

Prepaid expenses and other assets ................         5,985          2,115

Investment in Dematco, Inc. ......................        66,464         66,464
                                                     -----------    -----------

TOTAL ASSETS .....................................   $   140,576    $   137,266
                                                     ===========    ===========

LIABILITIES AND SHAREHOLDERS' DEFICIT

LIABILITIES:
Bank overdraft ...................................   $     6,507    $     1,289
Line of credit ...................................        19,095         18,686
Accounts payable and accrued expenses ............        73,211         56,042
Deferred revenue .................................         2,718          5,570
Note payable to shareholder ......................        52,629         52,629
Accrued interest due to shareholder ..............        66,035         64,974
Convertible note payable, net of debt discount ...       115,963        100,670
                                                     -----------    -----------
Total liabilities ................................       336,158        299,860
                                                     -----------    -----------

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS' DEFICIT:
Common stock, par value - $.001; 200,000,000
    shares authorized; 23,833,524 and
    23,774,000 shares issued and outstanding,
    respectively .................................        23,834         23,774
Common stock subscribed ..........................           -0-         50,000
Additional paid-in capital .......................       967,435        907,095
Accumulated deficit ..............................    (1,186,851)    (1,143,463)
                                                     -----------    -----------
Total shareholders' deficit ......................      (195,582)      (162,594)
                                                     -----------    -----------

TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT ......   $   140,576    $   137,266
                                                     ===========    ===========

See accompanying notes to financial statements.


                                       4
<PAGE>


ADVANCED MEDIA TRAINING, INC.


STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED
AUGUST 31, 2006 AND 2005 (UNAUDITED)
--------------------------------------------------------------------------------
                                                     2006              2005
                                                 ------------      ------------
                                                                   (As Restated)

REVENUES ...................................     $     95,218      $    101,405

COST OF REVENUES ...........................           15,508            35,071
                                                 ------------      ------------

GROSS PROFIT ...............................           79,710            66,334
                                                 ------------      ------------

EXPENSES:
Selling and marketing ......................           42,789            55,687
General and administrative .................           62,560            60,540
Research and development ...................              -0-                50
Interest expense ...........................           16,949            10,111
                                                 ------------      ------------
Total expenses .............................          122,298           126,388
                                                 ------------      ------------

LOSS BEFORE INCOME TAXES ...................          (42,588)          (60,054)

INCOME TAXES ...............................              800               -0-
                                                 ------------      ------------

NET LOSS ...................................     $    (43,388)     $    (60,054)
                                                 ============      ============

BASIC AND DILUTED LOSS PER SHARE ...........     $      (0.00)     $      (0.00)
                                                 ============      ============

WEIGHTED AVERAGE SHARES OUTSTANDING ........       23,804,409        16,110,000
                                                 ============      ============


See accompanying notes to financial statements.


                                       5
<PAGE>


<TABLE>
ADVANCED MEDIA TRAINING, INC.

STATEMENTS OF SHAREHOLDERS' DEFICIT
FOR THE THREE MONTHS ENDED AUGUST 31, 2006 (UNAUDITED)
-----------------------------------------------------------------------------------------------------------------
<CAPTION>
                                   COMMON STOCK            COMMON        ADDITIONAL
                             -------------------------      STOCK         PAID-IN      SHAREHOLDER
                               SHARES        AMOUNT       SUBSCRIBED      CAPITAL       (DEFICIT)        TOTAL
                             -----------   -----------    -----------   -----------    -----------    -----------
<S>                           <C>          <C>           <C>            <C>           <C>            <C>
BALANCE, MAY 31, 2006 ....    23,774,000   $    23,774   $    50,000    $   907,095   $(1,143,463)   $  (162,594)

COMMON STOCK SUBSCRIPTION         59,524            60       (50,000)        49,940          --              -0-

CONTRIBUTED CAPITAL ......          --            --            --           10,400          --           10,400

NET LOSS .................          --            --            --             --         (43,388)       (43,388)
                             -----------   -----------    -----------   -----------    -----------    -----------

BALANCE, AUGUST 31, 2006 .    23,833,524   $    23,834   $       -0-    $   967,435   $(1,186,851)   $  (195,582)
                             ===========   ===========    ===========   ===========    ===========    ===========
</TABLE>

See accompanying notes to financial statements.


                                       6
<PAGE>


ADVANCED MEDIA TRAINING, INC.

STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED AUGUST 31, 2006 AND 2005 (UNAUDITED)
-------------------------------------------------------------------------------
                                                           2006          2005
                                                        ---------     ---------
                                                                   (As Restated)

CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss ...........................................    $ (43,388)    $ (60,054)
Adjustments to reconcile net loss
     to net cash used by operating activities:
     Contribution of capital for  services..........       10,400        10,400
     Amortization of debt discount..................       15,293           -0-
     Depreciation ..................................          -0-           660
     Changes in operating assets and liabilities:
         Accounts receivable .......................      (13,440)          387
         Other assets ..............................       (3,870)       (3,185)
         Accounts payable and accrued expenses .....       18,230        39,317
         Deferred revenue ..........................       (2,852)       (1,808)
                                                        ---------     ---------
Net cash used by operating activities ..............      (19,627)      (14,283)
                                                        ---------     ---------

CASH FLOWS FROM FINANCING ACTIVITIES:
Bank overdraft .....................................        5,218           -0-
Net borrowings (repayments) from (to) shareholder ..          -0-        11,940
Net borrowings (repayments) on line of credit ......          409           (32)
                                                        ---------     ---------
Net cash provided by financing activities ..........        5,627        11,908
                                                        ---------     ---------
NET DECREASE IN CASH ...............................      (14,000)       (2,375)

CASH, BEGINNING OF YEAR ............................       50,701        11,774
                                                        ---------     ---------
CASH, END OF YEAR ..................................    $  36,701      $  9,399
                                                        =========     =========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for interest .............................    $     594     $   1,077
Cash paid for income taxes .........................    $     800     $     -0-

In January and March 2006,  the Company  issued  7,664,000  shares of its common
stock for the acquisition of Dematco, Inc. (See Note 3).

See accompanying notes to financial statements.


                                       7
<PAGE>


ADVANCED MEDIA TRAINING, INC.

NOTES TO FINANCIAL STATEMENTS

1.       BACKGROUND

Advanced Media Training, Inc. (formerly Advanced Knowledge, Inc.; the "Company")
is engaged in the  development,  production  and  distribution  of training  and
educational video products and services.

2.       INTERIM CONDENSED FINANCIAL STATEMENTS

FISCAL PERIODS

The Company's  fiscal  year-end is May 31.  References to a fiscal year refer to
the calendar year in which such fiscal year ends.

RESTATEMENT OF FINANCIAL STATEMENTS

The  financial  statements  for the three  months ended August 31, 2005 has been
restated  to  correct  certain  errors  in the  financial  statements  and notes
thereto.  The errors  relate to the  recording of  compensation  expense for the
Company's  president  as  contributed   capital,   the   reclassification  of  a
non-refundable  upfront fee from additional paid in capital to deferred  revenue
and the expense of its license  agreement in June 2004. The following  financial
statement line items for the three months ended August 31, 2005 were affected by
the corrections.

STATEMENT OF OPERATIONS
2005                                                                 EFFECT OF
                                    AS REPORTED     AS ADJUSTED       CHANGE
                                    -----------     -----------     -----------
Revenues .......................    $    99,597     $   101,405     $     1,808
Expenses .......................        116,738         126,388           9,650
Net loss .......................    $   (52,212)    $   (60,054)    $    (7,842)

BALANCE SHEET
2005                                                                 EFFECT OF
                                    AS REPORTED     AS ADJUSTED       CHANGE
                                    -----------     -----------     -----------
Total assets ...................    $    87,329     $    61,079     $   (26,250)
Deferred revenue ...............            -0-           8,287           8,287
Total liabilities ..............        650,878         659,165           8,287
Additional paid-in capital .....        339,314         417,914          78,600
Accumulated deficit ............       (905,548)     (1,018,685)       (113,137)
Total shareholders' deficit ....    $  (563,549)    $  (598,086)    $   (34,537)

STATEMENT OF CASH FLOWS
2005                                                                 EFFECT OF
                                    AS REPORTED     AS ADJUSTED       CHANGE
                                    -----------     -----------     -----------
Net loss .......................    $   (52,212)    $   (60,054)    $    (7,842)
Contribution of capital ........            -0-          10,400          10,400
Amortization ...................            750             -0-            (750)
Deferred revenue ...............            -0-          (1,808)         (1,808)

USE OF ESTIMATES

The preparation of financial statements in conformity with accounting principles
generally  accepted in the United States of America requires  management to make
certain estimates and assumptions that affect the reported amounts and timing of
revenue and  expenses,  the reported  amounts and  classification  of assets and
liabilities,  and the  disclosure of contingent  assets and  liabilities.  These


                                       8
<PAGE>


estimates and assumptions are based on the Company's  historical results as well
as management's  future  expectations.  The Company's  actual results could vary
materially from management's estimates and assumptions.

RECLASSIFICATIONS

Certain  amounts in the financial  statements for the  comparative  prior fiscal
periods have been reclassified to be consistent with the current fiscal period's
presentation.

PREPARATION OF INTERIM CONDENSED FINANCIAL STATEMENTS

These interim  condensed  financial  statements for the periods ended August 31,
2006 and 2005 have been prepared by the Company's management,  without audit, in
accordance with accounting principles generally accepted in the United States of
America  and  pursuant  to  the  rules  and  regulations  of the  United  States
Securities and Exchange Commission ("SEC"). In the opinion of management,  these
interim condensed  financial  statements contain all adjustments  (consisting of
only normal recurring adjustments,  unless otherwise noted) necessary to present
fairly the Company's  financial  position,  results of operations and cash flows
for the fiscal  periods  presented.  Certain  information  and note  disclosures
normally  included in annual  financial  statements  prepared in accordance with
accounting  principles  generally  accepted in the United States of America have
been condensed or omitted in these interim financial  statements pursuant to the
SEC's rules and regulations, although the Company's management believes that the
disclosures are adequate to make the information  presented not misleading.  The
financial position, results of operations and cash flows for the interim periods
disclosed  herein are not necessarily  indicative of future  financial  results.
These interim condensed financial  statements should be read in conjunction with
the annual financial  statements and the notes thereto included in the Company's
most recent  Annual Report on Form 10-KSB (as amended) for the fiscal year ended
May 31, 2006.

SIGNIFICANT CUSTOMERS

The Company has two customers that exceed 10% of gross accounts receivable, (19%
and 12%) at August 31,  2006.  Two  customers  exceeded  10% of sales during the
three months ended  August 31, 2006,  (12% and 11%) and one customer  during the
three months ended August 31, 2005 (10%).

PRODUCTION COSTS

The Company  periodically incurs costs to produce new management training videos
and  enhance  current  videos.  Historically,  the  Company  has been  unable to
accurately forecast revenues to be earned on these videos and has,  accordingly,
expensed such costs as incurred.  The Company had no production  costs in either
period.

NET LOSS PER SHARE

Basic and diluted net loss per share has been  computed by dividing  net loss by
the weighted average number of common shares  outstanding  during the applicable
fiscal  periods.  At August 31, 2006, the Company had  outstanding  debt that is
convertible  into 833,000  shares of the Company's  common stock.  In 2005,  the
Company had no common stock equivalents outstanding. Potentially dilutive shares
are excluded  from the  computation  in loss  periods,  as their effect would be
anti-dilutive.


                                       9
<PAGE>


UNCLASSIFIED BALANCE SHEET

In  accordance  with  the  provisions  of  AICPA  Statement  of  Position  00-2,
"ACCOUNTING BY PRODUCERS OR  DISTRIBUTORS  OF FILMS," the Company has elected to
present an unclassified balance sheet.

RECENTLY ISSUED ACCOUNTING STANDARDS NOT YET ADOPTED

There  are  no  accounting  standards  with  pending  adoptions  that  have  any
applicability to the Company.

3.       INVESTMENT IN DEMATCO, INC.

On February 6, 2006,  the Company  entered into a Letter of Intent with Dematco,
Inc., ("Dematco").  Under the Letter of Intent, the Company had the 30 day right
to, but not the duty, to purchase  8,080,000  shares of Dematco's  common stock,
which equals eight  percent (8%) of the total issued and  outstanding  equity of
Dematco.

On March 20, 2006,  the Company  closed the  transaction  with Dematco.  Per the
agreement,  the Company issued 6,464,000 shares of its common stock,  restricted
as to transfer,  for the 8,080,000 shares of Dematco.  In addition,  the Company
received  an option to  purchase  all of the  remaining  issued and  outstanding
equity of Dematco from Dematco's  shareholders.  The option is exercisable up to
and including  February 28, 2007.  The audited  financial  statements of Dematco
indicate total assets of  approximately  $21,000 and a stockholders'  deficit of
approximately $2,000. Based on the restricted nature and volume of shares issued
and Dematco's  limited  operating  history as a development  stage  company,  we
valued the investment in Dematco at the par value of the shares issue, $6,464.

During  January  2006,   the  Board  of  Directors   issued   1,200,000   shares
(unrestricted)  of the Company's  common stock to two  consultants  for services
relating to the Letter of Intent.  The shares had an aggregate fair market value
of  $60,000  on the  date  of  issuance  and  have  been  recorded  as a cost of
acquisition.

During August 2006,  the Board of Directors  approved the exercise of the option
to purchase the remaining issued and outstanding  shares of Dematco,  92,920,000
shares, in a one for one stock exchange.  As of August 31, 2006, the exercise of
the option transaction was not complete.

4.       NOTE PAYABLE TO SHAREHOLDER

The Company has an agreement  with its  President  and majority  shareholder  to
borrow up to $600,000 with interest at 8.0%.  Repayment shall be made when funds
are available and the balance of principal and accrued  interest is due June 30,
2007.

5.       LINE OF CREDIT

The Company has a revolving line of credit with a bank which permits  borrowings
up to $40,000.  The line is guaranteed by the Company's  President.  Interest is
payable  monthly at 2.22%  above the bank's  prime rate of  interest  (10.47% at
August 31, 2006).

6.       CONVERTIBLE NOTE PAYABLE

The Company  issued a zero percent  convertible  debenture  to Societe  Bancaire
Privee, S.A.,  ("Societe"),  and received $500,000 on February 28, 2006. Societe
is related to Dematco  through a business  venture.  The  convertible  debenture


                                       10
<PAGE>


calls for the  principal  sum to be paid on or before  March  31,  2009  without
interest.  At any time  prior to the  maturity  date and after  March 31,  2006,
Societe  shall  have the right and option to convert  the  principal  balance of
$500,000 into 833,000 shares of the Company's common stock, in whole or part.

The Company has valued the convertible  note payable  (imputing an interest rate
of 20%) and the related  beneficial  conversion  option to convert the principal
balance into shares using the "Relative Fair Value" approach.  Accordingly,  the
Company  recognized a $412,606 debt discount on the $500,000  principal value of
the  convertible  note payable and is amortizing the debt discount over the life
of the note, 38 months.

7.       STOCKHOLDERS' DEFICIT

COMMON STOCK ISSUED

During May 2006, the Company  received $50,000 for the purchase of 59,524 shares
of the  Company's  common  stock  restricted  as to  transfer.  The shares  were
subsequently issued to the purchasers during July 2006.

8.       INCOME TAXES

The Company has net operating loss carryforwards totaling approximately $953,000
at May 31, 2006 for  Federal  income tax  purposes  available  to offset  future
taxable income through 2026.  Deferred tax assets consist  substantially  of the
net operating loss carryforward. The Company has made a 100% valuation allowance
against the deferred tax asset

9.       STOCK COMPENSATION PLAN

On January 9, 2006,  the Company  created the 2006  Employees-Consultants  Stock
Compensation  Plan of Advanced  Media  Training,  Inc.,  ("the Plan"),  to offer
directors,  officers and selected key  employees,  advisors and  consultants  an
opportunity  to acquire a proprietary  interest in the success of the Company to
receive compensation,  or to increase such interest, by purchasing shares of the
Company's common stock. The Plan provides for either the direct award or sale of
shares and for the grant of options to purchase  shares.  Options  granted under
the Plan may include non-statutory options, as well as ISO's intended to qualify
under  section 422 of the IRS code.  On January 18,  2006,  the Company  awarded
1,200,000 shares of common stock to two consultants under the Plan (see note 6).
As of August 31, 2006, no options have been granted under the Plan.

10.      COMMITMENTS AND CONTINGENCIES

The Company has  agreements  with companies to pay a royalty on sales of certain
videos (co produced with these  companies).  The royalty is based on a specified
formula, which averages approximately 35% of net amounts collected.

The Company  leases its operating  facility for $2,295 per month  (increasing to
$2,364 effective September 2006) in Encino,  California under an operating lease
which expires August 31, 2007.  Rent expense was $4,590 and $4,370 for the three
months ended August 31, 2006 and 2005, respectively.

11.      LEGAL

The  Company is,  from time to time,  subject to legal and other  matters in the
normal  course of its  business.  While the  results of such  matters  cannot be
predicted with certainty,  management does not believe that the final outcome of
any pending  matters will have a material  effect on the financial  position and
results of operations of the Company.


                                       11
<PAGE>


12.      RELATED PARTY TRANSACTIONS

The Company has a consulting agreement with Howard Young, the son of Buddy Young
(the Company's Chief  Executive  Officer) which provides a monthly fee of $6,500
for administrative and sales consultation.  The fee is allocated equally between
General and Administrative and Selling and Marketing expense in the Statement of
Operations  for the three months ended August 31, 2006 and 2005.  Total  expense
was $19,250 in 2006 and $18,000 2005.


                                       12
<PAGE>


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

CRITICAL ACCOUNTING POLICIES

Our discussion and analysis of our financial condition and results of operations
are based upon our  statements,  which have been  prepared  in  accordance  with
accounting  principles  generally accepted in the United States. The preparation
of these financial  statements  requires us to make estimates and judgments that
affect the reported amounts of assets,  liabilities,  revenues and expenses.  In
consultation  with our Board of Directors,  we have  identified  four accounting
policies  that  we  believe  are  key  to  an  understanding  of  our  financial
statements.  These are important  accounting policies that require  management's
most difficult, subjective judgments.

         The first critical accounting policy relates to revenue recognition. We
recognize  revenue  from product  sales upon  shipment to the  customer.  Rental
income is recognized  over the related period that the videos are rented.  Based
on the nature of our  product,  we do not accept  returns.  Damaged or defective
product is returned and replaced upon receipt. Such returns have been negligible
since the Company's inception.

         The second critical  accounting policy relates to production costs. The
Company  periodically incurs costs to produce new management training videos and
to  enhance  current  videos.  Historically,  the  Company  has been  unable  to
accurately forecast revenues to be earned on these videos and has,  accordingly,
expensed such costs as incurred.

         The third  critical  accounting  policy relates to the issuance of debt
with a beneficial  conversion  feature.  The Company has valued the  convertible
note  payable  (imputing  an interest  rate of 20%) and the  related  beneficial
conversion  option to  convert  the  principal  balance  into  shares  using the
"Relative  Fair Value"  approach.  The fair value of the  conversion  option was
determined  using the Black  Scholles  model.  The  relative  fair value of this
conversion option  represented  approximately 79% of the total instrument,  thus
resulting  in a  large  discount  on the  original  debenture.  The  Company  is
amortizing the discount using the interest method.

         The fourth critical  accounting  policy relates to the valuation of our
investment in Dematco.  The Company issues  6,464,000  restricted  shares of its
common  stock  for  an  8.0%  interest  in  Dematco.   The  shares   represented
approximately 40% of our outstanding shares. The audited financial statements of
Dematco  indicate  total  assets of  approximately  $21,000 and a  stockholders'
deficit of approximately  $2,000.  Based on the restricted  nature and volume of
shares issued and Dematco's  limited  operating  history as a development  stage
company,  we valued  the  investment  in  Dematco at the par value of the shares
issue,   $6,464.  In  connection  with  the  investment,   we  issued  1,200,000
unrestricted  shares of our common stock to two  consultants  who assisted us in
the acquisition.  The fair value of the stock,  $60,000, was included as part of
the investment.


                                       13
<PAGE>


SELECT FINANCIAL INFORMATION

                                                    For the Three Months Ended
                                                    ---------------------------
                                                     08/31/06          08/31/05
                                                    ---------         ---------
                                                   (Unaudited)       (Unaudited)
                                                                   (As Restated)
Statement of Operations Data
Total revenue ..............................        $  95,218         $ 101,405
Operating loss .............................        $ (42,588)        $ (60,054)
Net loss per share .........................        $   (0.00)        $   (0.00)

Balance Sheet Data
Total assets ...............................        $ 140,576         $  61,079
Total liabilities ..........................        $ 336,158         $ 659,165
Stockholder's deficit ......................        $(195,582)        $(598,086)


RESULTS OF OPERATIONS

GENERAL

         Advanced  Media  Training's  current core business is the  development,
production and distribution of management and general workforce  training videos
for use by businesses  throughout the world. In addition to distributing  videos
produced by us, we market and distribute  training  videos financed and produced
by other producers,  which currently  account for approximately 41% of our sales
revenues.

         Workforce training industry trends have demonstrated that the amount of
money  allocated  by  companies  for the  training  of  their  employees  varies
according  to  general  economic  conditions.  In many  cases in a good  economy
training  department  budgets  are  increased,  and as a result  more  funds are
available to purchase  training  videos and other  employee  training  products.
Conversely,  when economic conditions are not good companies tend to cut back on
the amount of funds spent on the purchase of  workforce  training  products.  We
anticipate  that  general  economic  conditions  will  continue to have a direct
effect on our revenues.

         Additionally,   On  Monday,  March  20,  2006,  the  Company  closed  a
transaction with Dematco Limited, a United Kingdom corporation ("Dematco"). In a
5 for 4 stock  exchange we issued  6,464,000 of our common stock,  for 8,080,000
shares of Dematco's  equity.  The  8,080,000  shares of  Dematco's  common stock
equals eight percent (8%) of Dematco's total issued and outstanding  equity.  In
addition,  we have an option to exchange  92,920,000  shares of our common stock
for all the remaining  issued and outstanding  equity of Dematco.  The option is
exercisable up to and including  February 28, 2007, the one year  anniversary of
the effective date of the transaction.

         If we were to exercise our option and acquire the remaining  Ninety Two
percent  (92%) of  Dematco,  it would  result in the  change of  control  of the
Company.  The major  implication from such a change in control would be that the
Company's  management and core business  would become that of Dematco,  and that
our current  business of producing and  distributing  workforce  training videos
would be  discontinued.  As of  August  31,  2006,  the  Company's  intent is to
continue  its review of Dematco and its  business  so that it may,  prior to the
expiration  of the option,  determine  whether or not to exercise the option and
effect the changes as stated above.


                                       14
<PAGE>


         Dematco  is a UK  registered  private  company,  based in  Geneva  that
provides  proprietary  dematerialization  services to the  securities  industry.
Dematco  provides  these services  pursuant to an agreement  with SBP,  (Societe
Bancaire  Privee),  a Geneva based federal bank. SBP is a worldwide  clearer and
provider of depository facilities for all manner of financial instruments.

         Dematerialization  is  the  digital  process  of  eliminating  physical
certificates  for securities and other  negotiable  instruments.  Dematerialized
instruments are not on paper and no certificate  exists.  They are maintained in
the form of entries  in the books of stock  transfer  agents  and  depositories.
Essentially,  unlike the traditional method of possessing a share certificate as
proof of  ownership  of shares,  in the demat  system,  the shares are held in a
dematerialized  form as a record  of  security  ownership.  The SIA  (Securities
Industry Association) defines "Dematerialization" as "the process of eliminating
physical  certificates as a record of security ownership,  or where ownership of
the security exists only as an accounting record.  Dematerialization  eliminates
certificates,  replacing them with  electronic  ownership  records.  The goal of
dematerialization  is to facilitate  paperless  transactions,  which streamlines
processing,  lowers costs and reduces the risk associated  with lost,  stolen or
counterfeit certificates.

THREE-MONTH  PERIOD ENDED AUGUST 31, 2006 COMPARED TO  THREE-MONTH  PERIOD ENDED
AUGUST 31, 2005

REVENUES

         Our  revenues  for the three month  period  ended  August 31, 2006 were
$95,218.  Revenues for the prior three month period ended August 31, 2005,  were
$101,405.  This represents a decrease of $6,187.  The decrease was mainly due to
the fact that we did not  introduce any new training  video  produced by us into
the marketplace during this period, and the aging of the videos in our library.

         Domestic product sales and rentals, royalties resulting from the closed
circuit telecast of our videos, and royalties derived from  international  sales
made up 100% of the total  revenue in the  three-month  periods ended August 31,
2006 and  2005.  Sales of  videos  produced  by other  companies  accounted  for
approximately  41% of sales in the three-month  period ended August 31, 2006 and
approximately  65% in the same  period  in  2005.  As a  result  of our  limited
financial  resources  which prevent us from  financing  and  producing  many new
videos,  we expect that the sale of videos  produced by others will  continue to
represent approximately 40 to 70% of revenues.

COSTS AND EXPENSES

         Our cost of goods sold during the three month  period  ended August 31,
2006, decreased to $15,508 from $35,071 during the three months ended August 31,
2005. This represents a decrease of $19,563. The cost of goods sold as a percent
of sales  decreased  by  approximately  19% (35% in 2005 to 16% in  2006).  This
decrease is a direct result of the sales mix during the quarter ended August 31,
2006 shifting to higher gross profit items (i.e., internally produced videos).


                                       15
<PAGE>


         Approximately 41% of our revenue is generated from the sale of training
videos produced by companies with which we have distribution contracts with. The
terms of these distribution contracts vary with regard to percentage of discount
we receive.  These  discounts  range from a low of 35% to a high of 50% of gross
receipts.  As we cannot  predict which  companies  will produce  better  selling
videos in any one period,  we cannot  predict future  product mix.  However,  we
anticipate  that  excluding  production  costs,  the  cost  of  goods  sold as a
percentage of revenues will be approximately within the 15 to 35 percent range.

         Total operating  expenses decreased to $122,298 during the three months
ended  August 31, 2006 from  $126,388 in the three month period ended August 31,
2005. This  represents a decrease of $4,090.  This decrease was primarily due to
the  streamlining of our processes and decreased use of outside  consultants and
services.

         Selling and marketing  expenses  decreased to $42,789  during the three
months ended  August 31, 2006 from $55,687  during the three months ended August
31, 2005. This represents a decrease of $12,898. Our selling and marketing costs
are  substantially  related to the  introduction  of new videos  produced by us.
These costs are mainly  comprised of the creation of  advertising  and publicity
materials,  the  making  of  preview  copies  of the  video  to be sent to other
distributors,  advertising space in trade publications, commissions on sales and
consulting fees paid to Howard Young (son of Buddy Young, CEO), of which, $3,250
per month is allocated to selling and marketing duties.

         General and  administrative  expenses  increased to $62,560  during the
three months  ended  August 31, 2006 from $60,540  during the three months ended
August 31, 2005. This  represents an increase of $2,020.  The main components in
these  general and  administrative  expenses  are  salaries  for our  employees,
consulting  fees, and professional  fees for accounting and legal services,  and
rent. We anticipate that our general and administrative  expenses will remain at
this level until we generate  additional  revenues to support an increase in our
infrastructure.

         The Company incurred no significant  research and development  expenses
in  either  period.  This was due to the fact that we did not  research  any new
training  products  during these  periods due to negative cash flows in 2005 and
2006.

         Interest  expense  increased  to $16,949  during the three months ended
August 31, 2006 from $10,111 during the three months ended August 31, 2005. This
represents an increase of $6,838. This increase is primarily due to amortization
of the debt discount on the convertible note payable,  offset by the fact that a
substantial   portion  of  the  principal   owed  our  President  and  principal
shareholder were paid during fiscal 2006.

         Our net loss  decreased to $43,388 during the three months ended August
31, 2006 from $60,054  during the three months ended August 31, 2005.  This is a
decrease of $16,666.  The  primary  cause of this  decrease is the result of the
sales mix during the  quarter  ended  August 31, 2006  shifting to higher  gross
profit items such as our internally  produced videos, as well as reduced selling
and marketing expenses.


                                       16
<PAGE>


LIQUIDITY AND CAPITAL RESOURCES

         Our  working  capital  deficit  decreased  to $99,439  during the three
months ended August 31, 2006 from $146,707  during the three months ended August
31, 2005.  This is a direct result of our decrease in accounts  payable and line
of credit  resulting  from the issuance of a $500,000  convertible  debenture in
February 2006.

         Our cash flows used by operations increased to $19,627 during the three
months ended  August 31, 2006 from $14,283  during the three months ended August
31, 2005.  This increase is the result of a decrease in net loss, an increase in
our  accounts  receivable  during  2006 offset by the  amortization  of the debt
discount on the convertible note payable.

         During 2006 we did not use any cash for investing activities.

         Our cash flows  provided by  financing  activities  decreased to $5,627
during the three  months  ended  August 31, 2006 from  $11,908  during the three
months  ended August 31,  2005.  This is the result of a decrease in  borrowings
from our President and principal shareholder.

         We  currently  have  no  material  commitments  at  this  time  to fund
development of new videos or to acquire any significant capital equipment

ITEM 3.       CONTROLS AND PROCEDURES

         The principal  executive officer and principal financial officer of the
Company,  who are the same person ("the Certifying Officer") with the assistance
of advisors,  evaluated  the  effectiveness  of the design and  operation of the
Company's   disclosure   controls   and   procedures   (as  defined  in  section
240.13a-14(c) and 240.15d-14(c)  under the Exchange Act) within 90 days prior to
the filing of this annual  report.  Based upon the  evaluation,  the  Certifying
Officer  concludes  that the Company's  disclosure  controls and  procedures are
effective in timely alerting management to material  information relative to the
Company which is required to be disclosed in its periodic filings with the SEC.

         There were no significant changes in the Company's internal controls or
in other factors that could  significantly  affect these controls  subsequent to
the date of their  evaluation,  including any corrective  actions with regard to
significant deficiencies and material weaknesses.


                                       17
<PAGE>


                                     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
              During  the  quarter  ended  August  31,  2006,  no  matters  were
              submitted to the Company's security holders.

ITEM 5.       OTHER INFORMATION    None.

ITEM 6.       EXHIBITS

              31.1         Certification of CEO Pursuant to Securities  Exchange
                           Act Rules 13a-14 and 15d-14,  as Adopted  Pursuant to
                           Section 302 of the Sarbanes-Oxley Act of 2002.

              32.1         Certification  Pursuant to 18 U.S.C. Section 1350, as
                           Adopted Pursuant to Section 906 of the Sarbanes-Oxley
                           Act of 2002.


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<PAGE>


                                   SIGNATURES

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

                                           ADVANCED MEDIA TRAINING, INC.
                                           (Registrant)


Dated: October 10, 2006                    /S/ BUDDY YOUNG
                                           ------------------------------------
                                               Buddy Young, President and Chief
                                               Executive Officer


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