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 November 30, 2007


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

                         Commission File Number: 0-50333


                                  DEMATCO, INC.
                     (FORMERLYADVANCED 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 116,753,524  shares of Common stock, par value $.001
per share issued and  outstanding as of November 30, 2007.  Based on the closing
bid price of the issuer's common stock on November 30, 2007 the aggregate market
value of the voting stock held by  non-affiliates of the registrant on that date
was approximately $6,970,000.

         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
         Condensed Consolidated Balance Sheets
             November 30, 2007 (Unaudited) and May 31, 2007.............       4
         Condensed Consolidated Statements of Operations (Unaudited)
             For the Three and Six Months Ended
             November 30, 2007 and 2006.................................       5
         Statements of Shareholders' Deficit (Unaudited)
             For the Six Months Ended November 30, 2007.................       6
         Condensed Consolidated Statements of Cash Flows (Unaudited)
             For the Six Months Ended
             November 30, 2007 and 2006.................................       7
         Notes to Financial Statements (Unaudited)......................       8

Item 2.  Management's Discussion and Analysis or Plan
         of Operation...................................................      10

Item 3.  Controls and Procedures........................................      14

PART II  OTHER INFORMATION

Item 1.  Legal Proceedings..............................................      15

Item 2.  Changes in Securities and Use of Proceeds......................      15

Item 3.  Defaults upon Senior Securities................................      15

Item 4.  Submission of Matters to a Vote of Security Holders............      15

Item 5.  Other Information..............................................      15

Item 6.  Exhibits ......................................................      15

Signatures..............................................................      16


                                       2
<PAGE>


                                     PART I
                              FINANCIAL INFORMATION

ITEM 1.       FINANCIAL STATEMENTS

                (Financial Statements Commence on Following Page)



                                       3
<PAGE>


                          DEMATCO, INC. AND SUBSIDIARY
                          (A Development Stage Company)

                      CONDENSED CONSOLIDATED BALANCE SHEETS

                                                     November 30,
                                                         2007         May 31,
                                                     (Unaudited)       2007
                                                     -----------    -----------

                           ASSETS

Current Assets
    Cash .........................................   $     1,216    $     1,853
    Prepaid expenses .............................        25,000           --
                                                     -----------    -----------
    Total Current Assets .........................        26,216          1,853
                                                     -----------    -----------

Total Assets .....................................   $    26,216    $     1,853
                                                     ===========    ===========


          LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities
    Accounts payable and accrued expenses ........   $    71,446    $    35,902
    Accrued interest due to shareholder ..........         3,136            784
    Due to related party .........................       119,000         59,000
    Due to related entity ........................        31,990         35,790
    Notes payable to shareholders ................       113,607         96,590
                                                     -----------    -----------
    Total Current Liabilities ....................       339,179        228,066
                                                     -----------    -----------
    Convertible note payable .....................       235,184        177,244
    Total Liabilities ............................       574,363        405,310
                                                     -----------    -----------

Stockholders' Deficit

    Common Stock, authorized 200,000,000
    shares, par value $0.001, issued
    and outstanding; 116,753,524 shares ..........       116,753        116,753

    Additional Paid-in Capital ...................       297,917         97,917

    Common stock subscribed ......................       100,311           --

    Deficit accumulated during the
    development stage ............................    (1,061,357)      (618,113)

    Gain/(Loss) on Currency Translation ..........        (1,771)           (14)
                                                     -----------    -----------

    Total Stockholders' Deficit ..................      (548,147)      (403,457)
                                                     -----------    -----------

Total Liabilities and Stockholders' Deficit ......   $    26,216    $     1,853
                                                     ===========    ===========


         The accompanying notes are an integral part of these statements


                                       4
<PAGE>


<TABLE>
                          DEMATCO, INC. AND SUBSIDIARY
                          (A Development Stage Company)

                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                       FOR THE THREE AND SIX MONTHS ENDED
                     NOVEMBER 30, 2007 AND 2006 (UNAUDITED)


<CAPTION>
                                                                                                       NOVEMBER 1,
                                                                                                           2005
                                                                                                      (INCEPTION) TO
                                           THREE MONTHS                       SIX MONTHS               NOVEMBER 30,
                                       2007             2006             2007             2006             2007
                                  -------------    -------------    -------------    -------------    -------------
<S>                               <C>              <C>              <C>              <C>              <C>
OPERATING EXPENSES:
General and administrative ....   $     190,381    $     131,670    $     382,152    $     219,992    $     953,975
Interest expense, related party           1,170             --              2,353             --              4,977
Interest expense ..............          31,015             --             57,939             --            101,605

Total expenses ................         222,566          131,670          442,444          219,992        1,060,557
                                  -------------    -------------    -------------    -------------    -------------

LOSS BEFORE INCOME TAXES ......        (222,566)        (131,670)        (442,444)        (219,992)      (1,060,557)

Income tax ....................             800             --                800             --                800
                                  -------------    -------------    -------------    -------------    -------------

NET LOSS ......................   $    (223,366)   $    (131,670)   $    (443,244)   $    (219,992)   $  (1,061,357)
                                  =============    =============    =============    =============    =============

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

WEIGHTED AVERAGE SHARES
OUTSTANDING ...................     116,753,524      101,000,000      116,753,524      101,000,000
                                  =============    =============    =============    =============
</TABLE>


See accompanying notes to financial statements.


                                       5
<PAGE>


<TABLE>
                          DEMATCO, INC. AND SUBSIDIARY
                          (A Development Stage Company)

            CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT
                                   (Unaudited)
                   For the Six Months Ended November 30, 2007

<CAPTION>
                                                                                                      DEFICIT
                                                                                                    ACCUMULATED
                                   COMMON STOCK            COMMON                                   DURING THE
                             -------------------------     STOCK         PAID-IN      CURRENCY      DEVELOPMENT       TOTAL
                               SHARES        AMOUNT      SUBSCRIBED      CAPITAL     TRANSLATION       STAGE         DEFICIT
                             -----------   -----------   -----------   -----------   -----------    -----------    -----------
<S>                          <C>           <C>           <C>           <C>           <C>            <C>            <C>
BALANCE, MAY 31, 2007 ....   116,753,524   $   116,753   $      --     $    97,917   $       (14)   $  (618,113)   $  (403,457)

Common stock subscribed ..          --            --         100,311          --            --             --          100,311

Contribution of services .          --            --            --         200,000          --             --          200,000

Currency Translation .....          --            --            --            --          (1,757)          --           (1,757)

Net Loss .................          --            --            --            --            --         (443,244)      (443,244)
                                                                                                                   -----------
   Net Comprehensive Loss           --            --            --            --            --             --         (445,001)
                             -----------   -----------   -----------   -----------   -----------    -----------    -----------

BALANCE, NOVEMBER 30, 2007   116,753,524   $   116,753   $   100,311   $   297,917   $    (1,771)   $(1,061,357)   $  (548,147)
                             ===========   ===========   ===========   ===========   ===========    ===========    ===========
</TABLE>


         The accompanying notes are an integral part of these statements


                                       6
<PAGE>


<TABLE>
                          DEMATCO, INC. AND SUBSIDIARY
                          (A Development Stage Company)

                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

<CAPTION>
                                                                                    November 1,
                                                                                        2005
                                                                                    (Inception)
                                                          Six Months Ended:              to
                                                      November 30,   November 30,   November 30,
                                                          2007           2006           2007
                                                      -----------    -----------    -----------
<S>                                                   <C>            <C>            <C>
Operating Activities
      Net Loss ....................................   $  (443,244)   $  (219,992)   $(1,061,357)
      Adjustments to reconcile Net (Loss)
         Currency Translation .....................        (1,757)          (428)        (1,771)
         Contributed services .....................       200,000        185,714        601,271
         Amortization of debt discount ............        57,940           --          101,605
      Changes in Operating Assets and Liabilities
         Prepaid expenses .........................       (25,000)          --          (25,000)
         Accounts payable and accrued expenses ....        35,544           --           71,621
         Due to related party .....................        60,000           --          119,000
         Due to related entity ....................        (3,800)          --           31,990
         Accrued interest due to shareholder ......         2,352           --            4,977
                                                      -----------    -----------    -----------

      Net Cash Provided by Operating Activities ...      (117,965)       (34,706)      (157,664)
                                                      -----------    -----------    -----------

    Financing Activities
      Net repayments on line of credit ............          --             --          (19,094)
      Net proceeds from notes payable, shareholders        17,017         33,714         54,962
      Net proceeds from common stock subscriptions.       100,311           --          100,311
      Cash proceeds from Progressive ..............          --             --           22,701
                                                      -----------    -----------    -----------

      Net Cash Provided by Financing Activities ...       117,328         33,714        158,880
                                                      -----------    -----------    -----------

  Net Increase in Cash ............................          (637)          (992)         1,216

  Cash, Beginning of Period .......................         1,853         22,349           --
                                                      -----------    -----------    -----------

  Cash, End of Period .............................   $     1,216    $    21,357    $     1,216
                                                      ===========    ===========    ===========

  Supplemental Information:
      Interest Paid ...............................   $      --      $      --      $      --
      Income Taxes Paid ...........................   $      --      $      --      $      --
</TABLE>


         The accompanying notes are an integral part of these statements


                                       7
<PAGE>


                          DEMATCO, INC. AND SUBSIDIARY
                          (A Development Stage Company)

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                NOVEMBER 30, 2007
                                   (Unaudited)


NOTE 1.  GENERAL ORGANIZATION AND BUSINESS

Dematco, Inc. (formerly Advanced Media Training, Inc.; the "Company") is engaged
in the business of  dematerializing  or converting  financial  instruments  from
paper form to  electronic  form so as to enable  such  instruments  to be traded
electronically on exchanges or exchange platforms on a peer to peer basis.

Effective  December 11, 2006,  the Company  exercised  its option to acquire the
remaining  shares of Dematco,  Ltd. The  acquisition has been accounted for as a
recapitalization   and,   accordingly,   these  financial  statements  represent
historical  operations of Dematco,  Ltd. and the capital structure of the former
Advanced Media Training,  Inc. The business of Advanced Media Training, Inc. was
transferred to Progressive Training, Inc., a wholly-owned subsidiary until March
1, 2007.

PRINCIPLES OF CONSOLIDATION

The consolidated  financial statements include the accounts of Dematco, Inc. and
its  wholly-owned  subsidiary,  Dematco,  Ltd.  Dematco Ltd. is a United Kingdom
registered private company based in Geneva.

All material inter-company accounts and transactions have been eliminated.

NOTE 2.   PRESENTATION

GOING CONCERN & MANAGEMENT'S PLANS

The accompanying  consolidated  financial statements have been prepared assuming
that the  Company  will  continue as a going  concern,  which  contemplates  the
realization of assets and the liquidation of liabilities in the normal course of
business.  The Company is in its development  stage and has no source of revenue
from operations.  This raises  substantial  doubt about the Company's ability to
continue  as a going  concern.  The  financial  statements  do not  include  any
adjustments  relating to the recoverability and classification of recorded asset
amounts or the amounts and  classification of liabilities that might result from
this uncertainty.

The Company has survived  through  borrowings from  shareholders and through the
sale of company  stock.  The Company must raise funds or continue  borrowings in
the near future to  survive.  There is no  assurance  that  management  can find
investors or continue borrowings to cover the losses generated.

Management  feels that the Company is well  positioned to take  advantage of the
recent move within the securities  industry towards  eliminating  physical stock
certificates as proof of security ownership. The Company recently entered into a
joint venture with Societe  Bancaire Privee (SBP), a Geneva,  Switzerland  based
federal  bank,  to process  all manner of  securities  into  electronic  format.
Management  expects that this  relationship  will generate revenue during fiscal
year 2008.


                                       8
<PAGE>


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
estimates  and  assumptions  that  affect  the  reported  amounts  of assets and
liabilities  and disclosure of contingent  assets and liabilities at the date of
the financial statements and the reported amounts of revenue and expenses during
the reporting period. Actual results could differ from those estimates.

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 CONSOLIDATED FINANCIAL STATEMENTS

These interim condensed  consolidated financial statements for the periods ended
November  30,  2007 and 2006 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  consolidated  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
consolidated  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,
2007.

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 November 30, 2007, the Company had outstanding  debt that is
convertible  into 833,000  shares of the  Company's  common  stock.  Potentially
dilutive  shares are excluded from the  computation  in loss  periods,  as their
effect would be anti-dilutive.

RECENTLY ISSUED ACCOUNTING STANDARDS

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

NOTE 3. NOTES PAYABLE TO SHAREHOLDERS

The Company had an agreement with its former President, 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 were due June 30, 2007. The principal
balance was $58,645 at November 30, 2007.

The Company has a loan  agreement  with a director that is due upon demand.  The
principal balance was $54,962 at November 30, 2007 and is non-interest bearing.

NOTE 4. COMMON STOCK SUBSCRIBED

During the six months ended November 30, 2007, the Company received $100,311 for
a common stock  subscription at $0.05 per share from two parties.  As of January
15, 2008, the shares remain unissued.

NOTE 5. SUBSEQUENT EVENT

During  January  2008,  the  Company   received   $15,000  for  a  common  stock
subscription at $0.05 per share from one unrelated party.


                                       9
<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 three
critical  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 policy relates to the preparation and disclosure of
our  financial  statements.  The  accompanying  financial  statements  have been
prepared  assuming  that the Company  will  continue as a going  concern,  which
contemplates the realization of assets and the liquidation of liabilities in the
normal course of business.  The Company is in its  development  stage and has no
source of revenue  from  operations.  This  raises  substantial  doubt about the
Company's  ability to continue as a going concern.  The financial  statements do
not include any adjustments relating to the recoverability and classification of
recorded asset amounts or the amounts and  classification  of  liabilities  that
might  result  from this  uncertainty.  The Company has  survived  only  through
borrowings  from  shareholders.   The  Company  must  raise  funds  or  continue
borrowings in the near future to survive.  There is no assurance that management
can find investors or continue borrowings to cover the losses generated.

         The second 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  Scholes  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 third critical policy relates to officer compensation. Our officers
work for the Company on a part-time basis with no  compensation.  We value these
services  based  on  time   contributed,   services   performed  and  comparable
compensation to other companies.

RESULTS OF OPERATIONS

GENERAL

         On December 11, 2006, we completed the  acquisition  of Dematco,  Ltd.,
and at the same  time,  elected  a new  slate of  directors  and  appointed  new
corporate officers.  Concurrent with the acquisition, our new management decided
to change  the  Company's  business  to that of its just  acquired  wholly-owned
subsidiary,  Dematco,  Ltd.,  and to as soon as  feasible  cease all  activities
related to the business of producing and distributing workforce training videos.
Effective  March 1, 2007,  we  entered  into an Asset and  Liability  Assumption
Agreement with our then wholly-owned subsidiary Progressive Training,  Inc., and
as a result ceased all activities associated with our former business.

         Since that date,  and for the  foreseeable  future,  all of our efforts
will  be   focused   on  the   further   development   and   marketing   of  our
dematerialization  process.  During  fiscal 2008,  we plan to take the following
steps in order to improve the process, and generate revenue from operations, (a)
fulfill our contract with Admiral Asset Group contract,  and (b) attempt to sign
additional contracts for the  dematerialization of financial  instruments within
the insurance industry.


                                       10
<PAGE>


SELECT FINANCIAL INFORMATION

                                                    For the Three Months Ended
                                                                     11/30/06
                                                     11/30/07       (Unaudited)
                                                    (Unaudited)    (As Restated)
                                                   ------------    ------------
Statement of Operations Data
Total revenue ..................................   $       --      $       --
Operating loss .................................   $   (223,366)   $   (131,670)
Net loss per share .............................   $       --      $       --

Balance Sheet Data
Total assets ...................................   $     26,216    $     21,357
Total liabilities ..............................   $    574,363    $     59,324
Stockholder's deficit ..........................   $    548,147    $     37,967

THREE-MONTH  PERIOD ENDED NOVEMBER 30, 2007 COMPARED TO THREE-MONTH PERIOD ENDED
NOVEMBER 30, 2006

REVENUES

         To  date,  we have not  generated  revenue  from our  dematerialization
process.

EXPENSES

         During  the three  months  ended  November  30,  2007 our  general  and
administrative  expenses were  $190,381.  Included in this amount is $100,000 of
wages to our officers  whom have waived  payment and applied this amount to paid
in capital, $30,000 of consulting and professional services and $51,975 of legal
and accounting expenses.

         During the three  months  ended  November  30,  2006,  our  general and
administrative  expenses were  $131,670.  Included in this amount is $100,000 of
wages to our officers  whom have waived  payment and applied this amount to paid
in capital and approximately $27,000 of legal and accounting expenses.

         During the three months ended  November 30, 2007 we incurred  $1,170 of
interest  expense  related to a note  payable to a  shareholder  and  $31,015 of
interest expense related to the convertible debenture.

NET LOSS

         As a result of the  aforementioned,  our net loss was  $223,366 for the
three  months  ended  November  30, 2007 and $131,670 for the three months ended
November 30, 2006.


                                       11
<PAGE>


SELECT FINANCIAL INFORMATION

                                                     For the Six Months Ended
                                                                     11/30/06
                                                     11/30/07       (Unaudited)
                                                    (Unaudited)    (As Restated)
                                                   ------------    ------------

Statement of Operations Data
Total revenue ..................................   $       --      $       --
Operating loss .................................   $   (443,244)   $   (219,992)
Net loss per share .............................   $       --      $       --

Balance Sheet Data
Total assets ...................................   $     26,216    $     21,357
Total liabilities ..............................   $    574,363    $     59,324
Stockholder's deficit ..........................   $    548,147    $     37,967

SIX-MONTH  PERIOD  ENDED  NOVEMBER 30, 2007  COMPARED TO SIX-MONTH  PERIOD ENDED
NOVEMBER 30, 2006

REVENUES

         To  date,  we have not  generated  revenue  from our  dematerialization
process.

EXPENSES

         During  the  six  months  ended  November  30,  2007  our  general  and
administrative  expenses were  $382,152.  Included in this amount is $200,000 of
wages to our officers  whom have waived  payment and applied this amount to paid
in capital,  $60,000 of  consulting  and  professional  services and $106,535 of
legal and accounting expenses.

         During  the six  months  ended  November  30,  2006,  our  general  and
administrative  expenses were  $219,992.  Included in this amount is $185,714 of
wages to our officers  whom have waived  payment and applied this amount to paid
in capital and approximately $30,000 of legal and accounting expenses.

         During the six months  ended  November  30, 2007 we incurred  $2,353 of
interest  expense  related to a note  payable to a  shareholder  and  $57,939 of
interest expense related to the convertible debenture.

NET LOSS

         As a result of the  aforementioned,  our net loss was  $443,244 for the
six months  ended  November  30,  2007 and  $219,992  for the six  months  ended
November 30, 2006.

PLAN OF OPERATION

         On March 1, 2007 we ceased all  activities  associated  with our former
business of the production and distribution of workforce  training  videos,  see
"Company  History"  and  focused  all  efforts on the  further  development  and
marketing of our dematerialization process.

         We will  continue  to devote our limited  resources  to  marketing  and
developing our dematerialization process. At this time these efforts are focused
on fulfilling the above mentioned  Admiral Asset Group contract,  and seeking to
acquire additional contracts for the use of our dematerialization process. There
can be no assurance that we will be successful in these efforts.


                                       12
<PAGE>


         Management  expects  that If revenues  from our  contract  with Admiral
Asset Group do not provide  sufficient  funds to  maintain  operations,  then we
believe  the  raising of funds  through a private  placement  sale of our common
stock, or borrowings from  traditional  borrowing  sources will be sufficient to
satisfy our budgeted  cash  requirements  through May 31, 2008.  There can be no
assurance that we will be successful in our efforts to raise additional funding.

         We currently have no employees and do not anticipate hiring in the near
future.  Mr. Robert Stevens,  our Chief Executive  Officer,  and Chairman of the
Board of Directors,  Mr.  Lindsay  Smith,  our Chief  Financial  Officer,  and a
Director,  and, our principal  shareholder Mr. Terence  Ramsden,  each work on a
part-time basis.  During the six months ended November 30, 2007, Mr. Stevens and
Mr. Ramsden received non-cash compensation  (representing the estimated value of
services contributed to the Company) of $200,000.

LIQUIDITY AND CAPITAL RESOURCES

         Our working  capital  deficit was $45,230 at November 30,  2007,  which
excludes liabilities due to related parties and entities

         Our cash  flows used by  operations  were  $117,965  for the six months
ended November 30, 2007. This is the primary results of our net loss of $443,244
which  included  non-cash  expenses of  approximately  $258,000,  an increase in
prepaid  expenses  of $25,000  and  increases  in  accounts  payable and accrued
expenses of $35,544 and amounts due to a related party of $60,000.

         Our cash flows used by operations were $34,706 for the six months ended
November  30,  2006.  This is  primarily  the result of our net loss of $219,992
which included non-cash expenses of approximately $186,000

         During the six months  ended  November 30, 2007 and 2006 we did not use
any cash for investing activities.

         During the six months ended  November 30, 2007 and 2006, our cash flows
from financing activities were $17,017 and $33,714, respectively.  These amounts
are the result of our borrowings from a principal  shareholder.  Also during the
six months  ended  November  30,  2007,  we received  $100,311  for common stock
subscriptions.

         We  currently  have  no  material  commitments  at  this  time  to fund
development  of our  dematerialization  process  or to acquire  any  significant
capital equipment

         We are a company with a limited  operating history and a history of net
losses.

         We had a cash balance of $1,216 on November 30, 2007.

         If  revenues  from the  sale of our  dematerialization  process  do not
provide sufficient funds to maintain operations,  then we believe the raising of
funds through  borrowings from our shareholder or the sale of additional  equity
will be sufficient to satisfy our budgeted cash  requirements  through  November
30, 2008.  Additionally,  we may attempt a private  placement sale of our common
stock.  Further, our ability to pursue any business opportunity that requires us
to make cash  payments  would  also  depend on the  amount of funds  that we can
secure from these various sources. If funding is not available from any of these
sources to meet our needs, we will delay any business transaction  requiring the
payment of cash.

         If funding is  insufficient  at any time in the  future,  we may not be
able to take  advantage  of  business  opportunities  or respond to  competitive
pressures, any of which could have a negative impact on the business,  operating
results and financial condition.  In addition,  if additional shares were issued
to obtain financing,  current shareholders may suffer a dilutive effect on their
percentage of stock ownership in the Company.


                                       13
<PAGE>


ITEM 3.  CONTROLS AND PROCEDURES

(a)  EVALUATION  OF  DISCLOSURE  CONTROLS  AND  PROCEDURES.  We  carried  out an
evaluation,  with the  participation  of our chief executive and chief financial
officer,  of the  effectiveness,  as of November  30,  2007,  of our  disclosure
controls and  procedures  (as defined in Rules  13a-15(e)  and  15d-15(e) of the
Securities  Exchange Act of 1934). Due to the fact that we have no employees and
are not able to have proper  segregation of duties based on the  cost/benefit of
hiring  employees  solely to address the  segregation  of duties issue,  we have
concluded  that our  disclosure  controls and  procedures  are not  effective to
ensure that  information  required to be disclosed by us in reports that we file
or submit under the Exchange Act is recorded, processed, summarized and reported
within the time periods  specified  in the  Securities  and Exchange  Commission
rules and forms.  However, we have determined that the risks associated with the
lack of  segregation  of  duties  are  partially  mitigated  based on the  close
involvement of management in day-to-day  operations.  We have limited  resources
available.  As we obtain additional funding and employ additional personnel,  we
will implement programs to ensure the proper segregation of duties and reporting
channels.

(b) CHANGES IN INTERNAL CONTROLS OVER FINANCIAL REPORTING. There were no changes
in our internal  controls over  financial  reporting  during the fiscal  quarter
covered by this Form 10-QSB that have  materially  affected,  or are  reasonably
likely to materially affect, our internal control over financial reporting.


                                       14
<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  November  30,  2007,  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.


                                       15
<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.

                                        DEMATCO, INC.
                                        (Registrant)


Dated: January 22, 2008                 /S/ ROBERT STEVENS
                                        ---------------------------------------
                                            Robert Stevens, President and Chief
                                            Executive Officer


                                       16