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 February 28, 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.
                (Formerly known as ADVANCED MEDIA TRAINING, INC.)
                (Name of Registrant 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) 759-1876
            (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 April 11, 2007.

         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.  Condensed Consolidated Financial Statements ........................  3
         Balance Sheets
             February 28, 2007(Unaudited) and May 31, 2006...................  4
         Statements of Operations
             For the Three- and Nine-Month Periods
             Ended February 28, 2007 and February 28, 2006(Unaudited)........  5
         Statements of Shareholders' Deficit
             For The Nine Months Ended
             February 28, 2007 (Unaudited)...................................  6
         Statements of Cash Flows
             For the Nine Months Ended
             February 28, 2007 and February 28, 2006(Unaudited)..............  7
         Notes to Financial Statements.......................................  8

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

Item 3.  Controls and Procedures............................................. 19

PART II  OTHER INFORMATION

Item 1.  Legal Proceedings................................................... 20

Item 2.  Changes in Securities and Use of Proceeds........................... 20

Item 3.  Defaults upon Senior Securities..................................... 20

Item 4.  Submission of Matters to a Vote of Security Holders................. 20

Item 5.  Other Information................................................... 20

Item 6.  Exhibits............................................................ 20

Signatures................................................................... 21


                                       2
<PAGE>


                                     PART I
                              FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

         (Financial Statements Commence on Following Page)


                                       3
<PAGE>


DEMATCO, INC. AND SUBSIDIARIES
(formerly Advanced Media Training, Inc.)

CONDENSED CONSOLIDATED BALANCE SHEETS
-------------------------------------------------------------------------------
                                                     February 28,
                                                        2007          May 31,
                                                     (Unaudited)       2006
                                                     -----------    -----------
ASSETS

Cash ............................................... $     2,841    $    50,701

Accounts receivable, Net of allowance
  for doubtful accounts of $25,590 and $16,590,
  respectively .....................................       9,135         17,986

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

Prepaid expenses and other assets ..................       2,784          2,115

Costs in excess of net assets acquired .............     203,819         66,464
                                                     -----------    -----------

TOTAL ASSETS ....................................... $   218,579    $   137,266
                                                     ===========    ===========

LIABILITIES AND SHAREHOLDERS' DEFICIT

LIABILITIES:
Bank overdraft ..................................... $     1,529    $     1,289
Line of credit .....................................      12,000         18,686
Accounts payable and accrued expenses ..............      52,908         56,042
Deferred revenue ...................................        --            5,570
Notes payable to shareholders ......................     132,491         52,629
Accrued interest due to shareholder ................      68,779         64,974
Convertible note payable, net of debt discount .....     153,870        100,670
                                                     -----------    -----------
Total liabilities ..................................     421,577        299,860
                                                     -----------    -----------

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS' DEFICIT:
Common stock, par value - $.001;  200,000,000 shares
  authorized; 116,753,524 and 23,774,000 shares
  issued and outstanding, respectively .............     116,754         23,774
Common stock subscribed ............................        --           50,000
Additional paid-in capital .........................     979,106        907,095
Accumulated deficit ................................  (1,298,557)    (1,143,463)
Accumulated other comprehensive Loss ...............        (301)          --
                                                     -----------    -----------
Total shareholders' deficit ........................    (202,998)      (162,594)
                                                     -----------    -----------

TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT ........ $   218,579    $   137,266
                                                     ===========    ===========

See accompanying notes to financial statements.


                                       4
<PAGE>


DEMATCO, INC. AND SUBSIDIARIES
(formerly Advanced Media Training, Inc.)

<TABLE>
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED
FEBRUARY 28, 2007 AND 2006 (UNAUDITED)
--------------------------------------------------------------------------------
<CAPTION>
                                        THREE MONTHS                      NINE MONTHS
                               ------------------------------    ------------------------------
                                    2007             2006             2007             2006
                               -------------    -------------    -------------    -------------
<S>                            <C>              <C>              <C>              <C>
REVENUES ...................   $      85,602    $      94,287    $     291,033    $     293,801

COST OF REVENUES ...........          21,659           25,594           62,761           90,744
                               -------------    -------------    -------------    -------------

GROSS PROFIT ...............          63,943           68,693          228,272          203,057
                               -------------    -------------    -------------    -------------

EXPENSES:
Selling and marketing ......          27,783           42,567          112,073          138,788
General and administrative .          82,084           67,488          211,468          208,263
Research and development ...             200             --                200               50
Interest expense ...........          21,913           12,149           58,825           31,984
                               -------------    -------------    -------------    -------------
Total expenses .............         131,980          122,204          382,566          379,085
                               -------------    -------------    -------------    -------------

LOSS BEFORE INCOME TAXES ...         (68,037)         (53,511)        (154,294)        (176,028)

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

NET LOSS ...................   $     (68,037)   $     (53,511)   $    (155,094)   $    (176,828)
                               =============    =============    =============    =============

BASIC AND DILUTED LOSS
   PER SHARE ...............   $       (0.00)   $       (0.00)   $       (0.00)   $       (0.01)
                               =============    =============    =============    =============

WEIGHTED AVERAGE SHARES
   OUTSTANDING .............     105,396,635       16,656,667       50,712,650       16,290,220
                               =============    =============    =============    =============
</TABLE>


See accompanying notes to financial statements.


                                       5
<PAGE>


DEMATCO, INC. AND SUBSIDIARIES
(formerly Advanced Media Training, Inc.)

<TABLE>
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' DEFICIT
FOR THE NINE MONTHS ENDED FEBRUARY 28, 2007 (UNAUDITED)
--------------------------------------------------------------------------------
<CAPTION>
                                         COMMON STOCK             COMMON        ADDITIONAL                     ACCUMULATED
                                ----------------------------      STOCK          PAID-IN       ACCUMULATED     OTHER COMP.
                                   SHARES          AMOUNT       SUBSCRIBED       CAPITAL        (DEFICIT)         LOSS
                                ------------    ------------   ------------    ------------   ------------    ------------
<S>                               <C>           <C>            <C>             <C>            <C>             <C>
BALANCE, MAY 31, 2006 .......     23,774,000    $     23,774   $     50,000    $    907,095   $ (1,143,463)   $       --

SUBSCRIBED STOCK ISSUED .....         59,524              60        (50,000)         49,940           --              --

COMMON STOCK ISSUED FOR
ACQUISITION OF DEMATCO,
  LTD. ......................     92,920,000          92,920           --              --             --              --

CONTRIBUTED CAPITAL .........           --              --             --            22,071           --              --

CURRENCY TRANSLATION ........           --              --             --              --             --              (301)

NET LOSS ....................           --              --             --              --         (155,094)           --

  COMPREHENSIVE LOSS ........           --              --             --              --             --              --

                                ------------    ------------   ------------    ------------   ------------    ------------
BALANCE, FEBRUARY 28, 2007 ..    116,753,524    $    116,754   $       --      $    979,106   $ (1,298,557)   $       (301)
                                ============    ============   ============    ============   ============    ============

<CAPTION>
                                    TOTAL
                                ------------
<S>                             <C>
BALANCE, MAY 31, 2006 .......   $   (162,594)

SUBSCRIBED STOCK ISSUED .....           --

COMMON STOCK ISSUED FOR
ACQUISITION OF DEMATCO,
  LTD. ......................         92,920

CONTRIBUTED CAPITAL .........         22,071

CURRENCY TRANSLATION ........           (301)

NET LOSS ....................       (155,094)
                                -------------
  COMPREHENSIVE LOSS ........       (155,395)
                                ------------
                                ------------
BALANCE, FEBRUARY 28, 2007 ..   $   (202,998)
                                ============
</TABLE>


See accompanying notes to financial statements.


                                       6
<PAGE>


DEMATCO, INC. AND SUBSIDIARIES
(formerly Advanced Media Training, Inc.)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED FEBRUARY 28, 2007 AND 2006 (UNAUDITED)
-------------------------------------------------------------------------------
                                                            2007         2006
                                                         ---------    ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss .............................................   $(155,094)   $(176,828)
Adjustments to reconcile net loss
     to net cash used by operating activities:
     Contribution to capital for services ............      22,071       31,200
     Provision for bad debt ..........................       9,000        5,000
     Amortization of debt discount ...................      53,200         --
     Depreciation ....................................        --          1,981
     Changes in operating assets and liabilities:
         Accounts receivable .........................        (149)      (8,313)
         Other assets ................................        (669)          (5)
         Accounts payable and accrued expenses .......         671       75,389
         Deferred revenue ............................      (5,570)      (3,730)
                                                         ---------    ---------
Net cash used by operating activities ................     (76,540)     (75,306)
                                                         ---------    ---------

CASH FLOWS FROM FINANCING ACTIVITIES:
Bank overdraft .......................................         240        2,597
Net borrowings (repayments) from (to) shareholders ...      32,059       60,438
Net borrowings (repayments) on line of credit ........      (6,686)       1,268
Bank account during acquisition of Dematco, Ltd. .....       3,368         --
Proceeds from issuance of convertible note ...........        --        500,000
                                                         ---------    ---------
Net cash provided by financing activities ............      28,981      564,303
                                                         ---------    ---------
NET INCREASE (DECREASE) IN CASH ......................     (47,559)     488,997

EFFECT OF EXCHANGE RATE CHANGES ......................        (301)

CASH, BEGINNING OF YEAR ..............................      50,701       11,774
                                                         ---------    ---------
CASH, END OF YEAR ....................................   $   2,841    $ 500,771
                                                         =========    =========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for interest ...............................   $   1,372    $   3,491
Cash paid for income taxes ...........................   $     800    $     800


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

In December 2006, the Company issued  92,920,000  shares of its common stock for
the exercise of its option to acquire the  remaining  interest in Dematco,  Ltd.
(See Note 3).


See accompanying notes to financial statements.


                                       7
<PAGE>


DEMATCO, INC. AND SUBSIDIARIES
(formerly Advanced Media Training, Inc.)

NOTES TO FINANCIAL STATEMENTS

1.       BACKGROUND

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. The
Company's wholly-owned subsidiary, Progressive Training, Inc. ("Progressive") is
engaged  in  the  development,  production  and  distribution  of  training  and
educational  video  products and  services.  Effective  December  11, 2006,  the
Company exercised its option to acquire the remaining shares of Dematco, Ltd.

Subsequent  to February  28,  2007,  the Company  transferred  its  training and
educational  video products and services  business into  Progressive  (formed in
October 2006). In addition,  the Company issued 1 million  outstanding shares of
Progressive were transferred to Buddy Young, former President of the Company, in
exchange for his forgiving $80,000 in principal owed to him by the Company under
a loan agreement. See Note 3.

PRINCIPLES OF CONSOLIDATION

The condensed consolidated financial statements include the accounts of Dematco,
Inc. and its wholly-owned subsidiaries,  Progressive Training, Inc. and Dematco,
Ltd.

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


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.

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
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 CONSOLIDATED FINANCIAL STATEMENTS

These interim condensed consolidated financial statements for the periods


                                       8
<PAGE>


ended February 28, 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,
2006.

SIGNIFICANT CUSTOMERS

The Company has one customer  that  exceeded 10% of gross  accounts  receivable,
(11%) at February 28, 2007.  One customer  accounted for 10% of sales during the
nine months ended  February 28, 2007. No customers  exceeded 10% of sales during
the nine months ended February 28, 2006.

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 February 28, 2007 and 2006, 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.

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 based on the  operations of the Company
during this quarter and  year-to-date  consisting  primarily of the development,
production  and  distribution  of training and  educational  video  products and
services.


FOREIGN CURRENCY TRANSLATION

The interim condensed financial  statements of Dematco,  Ltd. are measured using
the Great Britain Pound as the  functional  currency.  Assets,  liabilities  and
equity  accounts of Dematco,  Ltd. are  translated  at exchange  rates as of the
balance  sheet date.  Revenues and expenses are  translated  at average rates of
exchange  in effect  during the period.  The  resulting  cumulative  translation


                                       9
<PAGE>


adjustments have been recorded as a separate component of stockholders' deficit.
The interim condensed  consolidated financial statements are presented in United
States of America dollars.

RECENTLY ISSUED ACCOUNTING STANDARDS NOT YET ADOPTED

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

3.       COSTS IN EXCESS OF NET ASSETS ACQUIRED

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 negotiations of Dematco,  Ltd and the Company. 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.

On February 6, 2006,  the Company  entered into a Letter of Intent with Dematco,
Ltd., ("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 was 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,  the
investment in Dematco was valued at the par value of the shares issued, $6,464.

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.  In December 2006, the Company issued
92,920,000  shares of its common stock in exchange for all the remaining  issued
and outstanding  shares of Dematco.  The issuance was valued at the par value of
the shares issued, $92,920.

4.       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 is due June 30, 2007.  The principal
balance was $69,394 at February 28, 2007.

The Company has a loan  agreement  with a director that is due upon demand.  The
principal balance was $63,097 at February 28, 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  former  President.
Interest  is payable  monthly at 2.22%  above the bank's  prime rate of interest
(10.48% at February 28, 2007).


                                       10
<PAGE>


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
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.       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

8.       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.  As of
February 28, 2007, 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  $2,364 per month in Encino,
California  under an operating lease which expires August 31, 2007. Rent expense
was $21,069 and $18,140 for the nine months  ended  February  28, 2007 and 2006,
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.      SUBSEQUENT EVENT


On April 4, 2007, in order to facilitate  Dematco,  Inc.'s  ("Registrant")  exit
from the corporate training video business and to allow Registrant to devote its
resources to the business of its recently acquired  subsidiary,  Dematco,  Ltd.,
Registrant entered into an Asset and Liability Assumption  Agreement,  effective
as of March 1, 2007, whereby  Registrant's wholly owned subsidiary,  Progressive
Training,  Inc.   ("Progressive")   acquired  all  of  Registrant's  assets  and
liabilities  related to the production and  distribution  of workforce  training
videos.  The assets included  distribution  rights to twelve workforce  training
videos,  Registrant's  distribution  contracts  with other  producers of related
videos,  accounts receivable totaling  approximately  $33,000, the name Advanced
Knowledge for use by  Progressive,  as well as the "Advanced  Knowledge" URL and
website. The liabilities assumed by Progressive included  approximately  $23,000
in accounts payable,  $6,000 in sales commission and an outstanding  credit card
balance of approximately $23,000.

Additionally,  on April 4, 2007  Registrant's  Board of  Directors  approved and
agreed  to a debt  conversion  agreement  between  three  parties,  namely,  (i)
Registrant as the parent corporation, (ii) Progressive, as the then wholly owned
subsidiary of Registrant,  and (iii) Progressive's president, Buddy Young. Under
the terms of the agreement,  Mr. Young agreed to convert $80,000 of the $138,174
debt owed to him by  Registrant  pursuant to a promissory  note, in exchange for
Registrant's  transfer to Mr. Young of 1,000,000  shares of  Progressive  common
stock from the 1,750,000  shares owned by  Registrant.  Consequently,  Mr. Young
became  Progressive's  principal  shareholder while Registrant  retained 750,000
shares of  Progressive.  As a  result,  Progressive  is no longer a  subsidiary,
wholly owned or otherwise, of Registrant. In addition, Registrant is no longer a
controlling shareholder of Progressive.


                                       12
<PAGE>


DEMATCO, INC.

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 two
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 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.

RESULTS OF OPERATIONS

GENERAL

         Although as explained  below,  (See Plan of Operation),  new management
had decided to change the  Company's  business to that of its recently  acquired
subsidiary Dematco,  Ltd., operations related to our workforce training business
continued  through  February 28, 2007.  No revenue has been  generated as yet by
Dematco, Ltd.


                                       13
<PAGE>


SELECT FINANCIAL INFORMATION

                                                    For the Three Months Ended
                                                    ---------------------------
                                                    02/28/07          02/28/06
                                                   (Unaudited)       (Unaudited)
                                                    ---------         ---------
Statement of Operations Data
Revenue ....................................        $  85,602         $  94,287
Cost of revenues ...........................        $  21,659         $  25,594
Gross profit ...............................        $  63,943         $  68,693
Total expenses .............................        $ 131,980         $ 122,204
Net loss after taxes .......................        $ (68,037)        $ (53,511)
Net loss per share .........................        $   (0.00)        $   (0.00)

Balance Sheet Data
Total assets ...............................        $ 218,579         $ 551,650
Total liabilities ..........................        $ 421,577         $ 833,104
Stockholder's deficit ......................        $(202,998)        $(281,454)

THREE-MONTH  PERIOD ENDED FEBRUARY 28, 2007 COMPARED TO THREE-MONTH PERIOD ENDED
FEBRUARY 28, 2006

REVENUES

         Our revenues  for the three month  period ended  February 28, 2007 were
$85,602. Revenues for the prior three month period ended February 28, 2006, were
$94,297.  This represents a decrease of $8,695. This decrease during this period
was mainly due to the lack of any new videos  produced by us being launched into
the marketplace, and the aging of our video library.

         Product  sales made up nearly  100% of the total  revenue in both three
month periods.  Rental of videos were less than 1% of our sales in both periods.
Sales of videos produced by other companies  accounted for  approximately 70% of
sales in both fiscal 2007 and 2006.

COST OF REVENUES

         The cost of revenues  during the three month period ended  February 28,
2007,  was  $21,659.  This  represents  a decrease  of $3,935  from the  $25,594
experienced during the same period of 2006. The cost of revenues as a percent of
sales decreased by approximately 2% (25% in 2007 vs. 27% in 2006). This decrease
is primarily due to the product sales mix.

         During most periods  approximately 70% of our revenue is generated from
the  sale  of  training   videos  produced  by  companies  with  which  we  have
distribution  contracts.  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


                                       14
<PAGE>


gross receipts. As we cannot predict which companies will produce better selling
videos in any one period, we cannot predict future product mix.

EXPENSES

         Selling  and  marketing  expenses  decreased  to  $27,783  in 2007 from
$42,567 in 2006.  This  represents a decrease of $14,784.  This decrease  during
this period of approximately  41% in selling and marketing expense resulted from
the decrease in sales  commissions  from $55,895 in 2007 to $40,510 in 2006. Our
commissions  fluctuate  significantly due to the composition of sales by outside
representatives    (subject    to    commissions)    versus    in-house    sales
(non-commissioned).

         Additionally,  our selling and  marketing  costs are  influenced by 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,  and for advertising space
in trade publications.

         General and  administrative  expenses increased to $82,084 in 2007 from
$67,488 in 2006.  This  represents  an  increase  of  $14,596.  The  increase is
primarily due to additional  administrative  costs incurred to operate  Dematco,
Ltd. along with a $9,000  increase in our bad debt expense.  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.

         Research and  development  expenses for this fiscal quarter was $200 as
compare to $0 in 2006. Our research and development  costs are comprised  mainly
of fees paid to writers  for the  initial  preparation  of an outline  for a new
training video. Based on our analysis of the outline's sales potential,  we will
make a decision as to whether or not to move forward with the production.

         Interest  expense  increased  to $21,913 in 2007 from  $12,149 in 2006.
This  represents  an  increase of $9,764.  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.

NET LOSS

         As a result of the foregoing, our net loss increased to $68,037 in 2006
from $53,511 in 2006. This is an increase of $14,526.


                                       15
<PAGE>


SELECT FINANCIAL INFORMATION

                                                     For the Nine Months Ended
                                                    ---------------------------
                                                     2/28/07           2/28/06
                                                   (Unaudited)       (Unaudited)
                                                    ---------         ---------
Statement of Operations Data
Revenue ....................................        $ 291,033         $ 293,801
Cost of revenues ...........................        $  62,761         $  90,744
Gross profit ...............................        $ 228,272         $ 203,057
Total Expenses .............................        $ 382,566         $ 379,085
Net loss after taxes .......................        $(155,094)        $(176,828)
Net loss per share .........................        $   (0.00)        $   (0.01)

NINE MONTH  PERIOD ENDED  FEBRUARY 28, 2007  COMPARED TO NINE MONTH PERIOD ENDED
FEBRUARY 28, 2006

REVENUES

         Our revenues  for the nine month  period  ended  February 28, 2007 were
$291,033. Revenues for the prior nine month period ended February 28, 2006, were
$293,801. This represents a decrease of $2,768,  primarily due to general market
conditions.

         Net product sales made up nearly 100% of the total revenue in both nine
month periods.  Rental of videos were less than 1% of our sales in both periods.
Sales of videos produced by other companies  accounted for  approximately 70% of
sales in both fiscal 2007 and 2006.

COST OF REVENUES

         The cost of revenues  during the nine month period  ended  February 28,
2007, decreased to $62,761 from the $90,744 experienced in 2006. This represents
a decrease of $27,983.  The cost of revenues as a percent of sales  decreased by
approximately 9 percentage points (22% in 2007 to 31% in 2006). This decrease is
primarily  due to a decrease  in  production  costs  incurred  in the first nine
months of 2006  ($-0- 2007 vs.  $75,862-2006).  However,  although  there may be
occasional  variances,  we  anticipate  that the cost of goods  sold  (excluding
production  costs  expensed)  as a  percentage  of  revenues  will  continue  to
generally be approximately within the 30 to 40 percent range.

EXPENSES

         Selling  and  marketing  expenses  decreased  to  $112,073 in 2007 from
$138,788  in 2006.  This  represents  a decrease  of  $26,715.  The  decrease is
primarily due to stock issued to employees and  consultants  associated with our
selling and marketing


                                       16
<PAGE>


activities (valued at $41,000) in 2006 for services rendered. As stated earlier,
our  selling  and  marketing  costs are  directly  affected by the number of new
training products we introduce into the marketplace. The decrease in selling and
marketing was the result of our introducing  less new videos produced by us into
the marketplace during this period, as compared to the same period in 2006.

         General and administrative  expenses increased to $211,468 in 2007 from
$208,263  in 2006.  This  represents  an  increase  of $3,205.  The  increase is
primarily due to additional  administrative  costs incurred to operate  Dematco,
Ltd.  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.

         Research and development  expenses increased to $2,000 in 2007 from $50
in 2006. Our research and development costs are comprised mainly of fees paid to
writers for the initial  preparation  of an outline  for a new  training  video.
Based on our analysis of the outline's sales potential,  we will make a decision
as to whether or not to move forward with the production.

         Interest  expense  increased  to $58,825 in 2007 from  $31,984 in 2006.
This  represents  an increase  of $26,841.  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.

NET LOSS

         The net loss decreased to $155,094 in 2007 from $176,828 in 2006.  This
represents  a decrease of  $21,734.  The cause of this  decrease  was mainly the
result of a decrease  in  selling  and  marketing  expenses  resulting  from our
introducing  less new videos  produced  by us into the  marketplace  during this
period,  as  compared  to the same  period in 2005 and a decrease in general and
administrative  expenses as a result of decreased payroll, less expense incurred
for the  development of our internet  website,  and less consulting fees paid to
professional and administrative personnel.

PLAN OF OPERATION

         Until  December 2006 the Company's  core business was the  development,
production and distribution of management and general workforce  training videos
for use by companies  throughout the world. On December 10, 2006 we acquired all
the remaining  outstanding  shares of Dematco  Ltd.,  and elected a new slate of
directors and appointed new corporate officers. Concurrent with the acquisition,
our new management  decided to change the Company's core 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.  Until being  acquired by us,  Dematco,  Ltd. was a
privately held company incorporated in


                                       17
<PAGE>


November  2005 under the laws of England and  Whales.  Its  business,  and going
forward the  Company's  core  business,  is the  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.

         In October 2006,  anticipating the future  acquisition of the remaining
outstanding shares of Dematco, Ltd., we established Progressive Training,  Inc.,
as a wholly owned subsidiary. On March 1, 2007, to facilitate the Company's exit
from the training  business,  we entered into an Asset and Liability  Assumption
agreement with Progressive  Training,  Inc. whereby Progressive  acquired all of
our assets and assumed all our  liabilities  related to the  workforce  training
business.  The assets acquired by Progressive  included  distribution  rights to
twelve workforce training videos, distribution contracts with other producers of
related videos,  accounts receivable totaling  approximately  $34,000,  the name
Advanced  Knowledge and its trademark,  and Advanced  Knowledge's  website.  The
liabilities assumed by Progressive included  approximately  $24,500, in accounts
payable,  sales commission  payments of approximately  $5,500, and a credit card
outstanding balance of approximately $23,500.

         Additionally,  on March 1, 2007 our  Board of  Directors  approved  and
agreed to a debt  conversion  agreement  between  us, and our former  president,
Buddy  Young.  Under the terms of the  agreement,  Mr.  Young  agreed to convert
$80,000 of the debt totaling  $138,174,  owed to him under a promissory note, to
equity in exchange for our  transferring to him 1,000,000  shares of Progressive
Training's stock. As a result,  while we retained 750,000 shares of Progressive,
representing  approximately 43% of the total outstanding shares, Progressive was
no longer a wholly owned subsidiary.

LIQUIDITY AND CAPITAL RESOURCES

         Our  working  capital  deficit  decreased  to  $123,240  in 2007 from a
positive  $316,132 in 2006. This is the result of the  convertible  note payable
issued February 28, 2006, in which the Company received $500,000.

         Our cash flows  used by  operations  increased  to $76,841 in 2007 from
$75,306 in 2006.  This  increase is primarily  the result of the decrease in net
loss from  $176,828 in 2006 to  $155,094 in 2007 offset by our  increase in cash
provided by accounts  payable and accrued  expenses from $75,389 in 2006 to $671
in 2007

         During 2007 and 2006 we did not use any cash for investing activities.

         Our cash flows provided by financing activities decreased to $28,981 in
2007 from $564,303 in 2006. This is the result of the  convertible  note payable
issued February 28, 2006, in which the Company received $500,000.

         We currently  have no material  commitments at this time to acquire any
significant capital equipment.


                                       18
<PAGE>


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

         We had a cash  balance  of  $2,841  on  February  28,  2007.  We had an
agreement  with  our  former  President  and  majority  shareholder  to fund any
shortfall in cash flow up to $600,000 at 8% interest  through June 30, 2007.  We
owed our  former  President  a total of  $68,779  in  principal  and  $69,394 in
interest  under the  agreement as of February 28, 2007. As mentioned  above,  on
March 1, 2007 the Company agreed to a debt conversion  agreement between us, and
our former president,  Buddy Young. Under the terms of the agreement,  Mr. Young
agreed to convert  $80,000 of the debt  totaling  $138,174,  owed to him under a
promissory  note,  to equity in exchange for our  transferring  to him 1,000,000
shares of Progressive  Training's stock. Any unpaid principal and interest under
the Note will be due and payable on June 30, 2007.

         The Company has a revolving  line of credit with Bank of America.  This
line of credit  permits the Company to borrow up to $40,000.  The line of credit
is guaranteed by the Company's former President.  Interest is payable monthly at
2.22% above the bank's prime rate of interest (10.48% at February 28, 2007). The
line of credit  does not require  the  Company to meet  performance  criteria or
maintain any minimum  levels of income or assets.  The Company is in  compliance
with the terms and conditions of the line of credit. Our outstanding  balance as
of February 28, 2007, was $12,164.

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  during the  quarter  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.


                                       19
<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 February 28, 2007, one matter was submitted to
         the Company's security holders. On December 22, 2006, a majority of the
         shareholders  voted and adopted an amendment to the Company's  Articles
         of  Incorporation  changing the name of the Company from Advanced Media
         Training,  Inc. to Dematco,  Inc. The  Certificate  of Amendment to the
         Articles of Incorporation changing the name was filed with the Delaware
         Secretary of State on January 25, 2007.

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.


                                       20
<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: April 13, 2007                          /S/ ROB STEVENS
                                               ---------------------------------
                                               Rob Stevens, President and Chief
                                               Executive Officer


                                       21