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

                                    Form 10-Q

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

                 For the quarterly period ended August 31, 2008


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

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

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

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

         Indicate by check mark whether the  registrant  is a large  accelerated
filer, an accelerated  filer, a  non-accelerated  filer, or a smaller  reporting
company.  See the definitions of "large accelerated filer,"  "accelerated filer"
and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer [_]                               Accelerated filer [_]

Non-accelerated filer [_]                         Smaller reporting company [X]
(Do not check if smaller reporting company)

         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 178,103,524  shares of Common stock, par value $.001
per share issued and outstanding as of August 31, 2008. Based on the closing bid
price of the issuer's common stock on August 31, 2008 the aggregate market value
of the voting stock held by  non-affiliates  of the  registrant on that date was
approximately $3,060,000.

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


<PAGE>


                            INDEX TO QUARTERLY REPORT
                                  ON FORM 10-Q


                                                                            PAGE
                                                                            ----
PART I   FINANCIAL INFORMATION

Item 1.  Financial Statements (Unaudited)                                      3
         Condensed Balance Sheets
             August 31, 2008 (Unaudited) and May 31, 2008                      4
         Condensed Statements of Operations
             For the  Three-Months  Ended  August 31, 2008 and 2007 and
             for the period from  November 1, 2005 (Date of  Inception)
             to August 31, 2008 (Unaudited)                                    5
         Condensed Statements of Stockholders' Deficit
             For the Period from November 1, 2005 (Date
             Of Inception) to August 31, 2008 (Unaudited)                      6
         Condensed Statements of Cash Flows
             For the Three  Months  Ended  August 31, 2008 and 2007 and
             for the period from November 1, 2005
             (Date of Inception) to August 31, 2008 (Unaudited)                7
         Notes to Financial Statements (Unaudited)                             8

Item 2.  Management's Discussion and Analysis or Plan of Operation             9

Item 3.  Quantitative and Qualitative Disclosures About Market Risk           13

Item 4T. Controls and Procedures                                              13


PART II  OTHER INFORMATION

Item 1.  Legal Proceedings                                                    14

Item 2.  Changes in Securities and Use of Proceeds                            14

Item 3.  Defaults upon Senior Securities                                      14

Item 4.  Submission of Matters to a Vote of Security Holders                  14

Item 5.  Other Information                                                    14

Item 6.  Exhibits                                                             14

Signatures                                                                    15


                                       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


                                                      AUGUST 31,
                                                         2008          MAY 31,
                                                     (Unaudited)        2008
                                                     -----------    -----------

                        ASSETS

Current Assets
    Cash .........................................   $     5,659    $     2,284
    Investment in securities-related Party .......        45,732           --
                                                     -----------    -----------

    Total Current Assets .........................        51,391          2,284
                                                     -----------    -----------

Total Assets .....................................   $    51,391    $     2,284
                                                     ===========    ===========


          LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities
    Accounts payable and accrued expenses ........   $    93,810    $    81,829
    Unearned revenue .............................       275,000           --
    Due to shareholders ..........................       362,702        393,502
                                                     -----------    -----------
    Total Current Liabilities ....................       731,512        475,331
                                                     -----------    -----------


Stockholders' Deficit

    Common Stock, authorized 200,000,000
    shares, par value $0.001, issued
    and outstanding; 178,103,524 shares ..........       178,103        178,103

    Additional Paid-in Capital ...................     3,525,900      3,410,900

    Deficit accumulated during the
    development stage ............................    (4,387,103)    (4,061,056)

    Cumulative translation adjustment ............         2,979           (994)
                                                     -----------    -----------

    Total Stockholders' Deficit ..................      (680,121)      (473,047)
                                                     -----------    -----------

Total Liabilities and Stockholders' Deficit ......   $    51,391    $     2,284
                                                     ===========    ===========


         The accompanying notes are an integral part of these statements.


                                       4
<PAGE>


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

<TABLE>
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
              FOR THE THREE MONTHS ENDED AUGUST 31, 2008 AND 2007,
      AND FOR THE PERIOD OF NOVEMBER 1, 2005 (INCEPTION) TO AUGUST 31, 2008
                                   (UNAUDITED)


<CAPTION>
                                                                          NOVEMBER 1,
                                                                             2005
                                       THREE MONTHS ENDED AUGUST 31,    (INCEPTION) TO
                                      ------------------------------      AUGUST 31,
                                           2008             2007             2008
                                      -------------    -------------    -------------
<S>                                   <C>              <C>              <C>
OPERATING EXPENSES:
General and administrative ........   $     324,699    $     191,771    $   3,032,761
Interest expense, related party ...           1,348            1,183            8,677
Interest expense ..................            --             26,924        1,345,665
                                      -------------    -------------    -------------

NET LOSS ..........................   $    (326,047)   $    (219,878)   $  (4,387,103)
                                      =============    =============    =============

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

WEIGHTED AVERAGE SHARES OUTSTANDING     178,103,524      116,753,524
                                      =============    =============
</TABLE>


        The accompanying notes are an integral part of these statements.


                                       5
<PAGE>


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

<TABLE>
                  CONDENSED STATEMENT OF STOCKHOLDERS' DEFICIT
              From November 1, 2005 (Inception) to August 31, 2008
                                   (Unaudited)

<CAPTION>
                                                                                                     DEFICIT
                                                                                                    ACCUMULATED
                                           COMMON STOCK                                               DURING           TOTAL
                                   ----------------------------       PAID-IN        CURRENCY       DEVELOPMENT       EQUITY
                                      SHARES          AMOUNT          CAPITAL       TRANSLATION       STAGE          (DEFICIT)
                                   ------------    ------------    ------------    ------------    ------------    ------------
<S>                                 <C>            <C>             <C>             <C>             <C>             <C>
Common Shares issued to Founders
   for intangibles at $0.00573
   per share ...................    101,000,000    $  1,762,450    $ (1,762,450)   $       --      $       --      $       --


Currency Translation ...........           --              --              --               (17)           --               (17)

Net Loss .......................           --              --              --              --            (1,412)         (1,412)
                                                                                                                   ------------
   Net Comprehensive Loss ......                                                                                         (1,429)
                                   ------------    ------------    ------------    ------------    ------------    ------------

BALANCE, DECEMBER 31, 2005 .....    101,000,000    $  1,762,450    $ (1,762,450)   $        (17)   $     (1,412)   $     (1,429)

Recapitalization ...............     15,753,524      (1,645,697)      1,379,096            --              --          (266,601)

Shares of subsidiary cancelled
   in exchange for debt payment            --              --            80,000            --              --            80,000

Contribution of services .......           --              --           401,271            --              --           401,271

Currency Translation ...........           --              --              --                 3            --                 3

Net Loss .......................           --              --              --              --          (616,701)       (616,701)
                                                                                                                   ------------
   Net Comprehensive Loss ......                                                                                       (616,689)
                                   ------------    ------------    ------------    ------------    ------------    ------------

BALANCE, MAY 31, 2007 ..........    116,753,524    $    116,753    $     97,917    $        (14)   $   (618,113)   $   (403,457)

Common stock issued for cash ...      1,100,000           1,100          53,900            --              --            55,000

Common stock issued for services     35,250,000          35,250       1,374,750            --              --         1,410,000

Common stock issued for debt ...     25,000,000          25,000       1,454,244            --              --         1,479,244

Related party debt forgiveness..           --              --            30,089            --              --            30,089

Contribution of services .......           --              --           400,000            --              --           400,000

Currency Translation ...........           --              --              --              (980)           --              (980)

Net Loss .......................           --              --              --              --        (3,442,943)     (3,442,943)
                                                                                                                   ------------
   Net Comprehensive Loss ......                                                                                     (3,443,923)
                                   ------------    ------------    ------------    ------------    ------------    ------------

BALANCE, MAY 31, 2008 ..........    178,103,524    $    178,103    $  3,410,900    $       (994)   $ (4,061,056)   $   (473,047)

Contribution of services .......           --              --           115,000            --              --           115,000

Currency Translation ...........           --              --              --             3,973            --             3,973

Net Loss .......................           --              --              --              --          (326,047)       (326,047)
                                                                                                                   ------------
   Net Comprehensive Loss ......                                                                                       (322,074)
                                   ------------    ------------    ------------    ------------    ------------    ------------

BALANCE, AUGUST 31, 2008 .......    178,103,524    $    178,103    $  3,525,900    $      2,979    $ (4,387,103)   $   (680,121)
                                   ============    ============    ============    ============    ============    ============
</TABLE>


         The accompanying notes are an integral part of these statements.


                                       6
<PAGE>


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

<TABLE>
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)

<CAPTION>
                                                                                    NOVEMBER 1,
                                                        THREE MONTHS ENDED              2005
                                                             AUGUST 31,           (INCEPTION) TO
                                                 ------------------------------      AUGUST 31,
                                                      2008            2007              2008
                                                 -------------    -------------    -------------
<S>                                              <C>              <C>              <C>
Operating Activities
  Net Loss ...................................   $    (326,047)   $    (219,878)   $  (4,387,103)
  Adjustments to Reconcile Net (Loss)
     Currency translation adjustment .........           3,973           (1,131)           2,979
     Stock issued for services ...............            --               --          1,410,000
     Interest expense ........................            --               --          1,208,333
     Contributed services ....................         115,000          100,000          916,271
     Amortization of debt discount ...........            --             26,925          137,331
  Changes in Operating Assets and Liabilities
     Prepaid expenses ........................            --             (4,724)            --
     Accounts payable and accrued expenses ...          11,981           50,980           93,985
     Unearned revenue ........................         275,000             --            275,000
     Due to related party ....................          30,000           30,000          199,000
     Due to related entity ...................            --               --             30,090
     Accrued interest due to shareholder .....           1,348            1,183            8,678
                                                 -------------    -------------    -------------

  Net Cash Used by Operating Activities ......         111,255          (16,645)        (105,436)
                                                 -------------    -------------    -------------

Investing Activities
  Purchase of securities .....................         (45,732)            --            (45,732)
                                                 -------------    -------------    -------------

  Net Cash (Used) by Investing Activities ....         (45,732)            --            (45,732)
                                                 -------------    -------------    -------------

Financing Activities
  Net repayments on line of credit ...........            --               --            (19,094)
  Net proceeds (repayments)on notes payable,
     Shareholders ............................         (62,148)          16,542           98,220
  Net proceeds from common stock .............            --               --             55,000
  Cash proceeds from Progressive .............            --               --             22,701
                                                 -------------    -------------    -------------

  Net Cash Provided by Financing Activities ..         (62,148)          16,542          156,827
                                                 -------------    -------------    -------------

Net Increase (Decrease) in Cash ..............           3,375             (103)           5,659

Cash, Beginning of Period ....................           2,284            1,853             --
                                                 -------------    -------------    -------------

Cash, End of Period ..........................   $       5,659    $       1,750    $       5,659
                                                 =============    =============    =============

Supplemental Information:
  Interest Paid ..............................   $        --      $        --      $        --
  Income Taxes Paid ..........................   $        --      $        --      $        --

Schedule of Non-Cash Activities:
  Related party debt forgiveness .............   $        --      $        --      $      30,090
</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
                                 AUGUST 31, 2008
                                   (UNAUDITED)

NOTE 1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

PREPARATION OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

These interim condensed  consolidated financial statements for the periods ended
August 31, 2008 and 2007 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-K for the
fiscal year ended May 31, 2008.

NET LOSS PER SHARE

Basic and diluted net loss per share has been  computed by dividing  net loss by
the weighted average number of common shares  outstanding  during the applicable
fiscal  periods.  At August 31, 2008,  the Company had no  potentially  dilutive
shares   outstanding.   Potentially   dilutive  shares  are  excluded  from  the
computation in loss periods, as their effect would be anti-dilutive.

REVENUE RECOGNITION

The  Company  has  structured  its  contracts  for   dematerializing   financial
instruments  on behalf of third parties to provide for a deposit of 0.25% of the
face  value of the  financial  instruments  being  dematerialized  to be paid at
commencement  of the contract,  and the balance of 1.75% of the face value to be
paid upon completion of the  dematerialization  of those financial  instruments,
and the whole of the income  arising on each contract is recognized at the point
of completion of dematerialization.

NOTE 2.  INVESTMENT IN SECURITIES - RELATED PARTY

On August 11, 2008, the Company  purchased  1,600,000  shares of Private Trading
Systems,  PLC,  ("PTS"),  for  (pound)24,000,  or $45,732.  The Company's  Chief
Executive  Officer,  Chief  Financial  Officer,  and principal  shareholder  are
shareholders of PTS.  Additionally,  both the Company's Chief Executive  Officer
and Chief Financial Officer are officers of PTS.

NOTE 3.  UNEARNED REVENUE

During August 2008, the Company entered into contracts for the dematerialization
of  Life  Settlement  Policies  and  received  $275,000  in  deposits  from  the
customers.


                                       8
<PAGE>


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

         You should read this section together with our financial statements and
related  notes  thereto  included  elsewhere in this report.  In addition to the
historical  information  contained herein, this report contains  forward-looking
statements  that  are  subject  to  risks  and  uncertainties.   Forward-looking
statements  are not  based  on  historical  information  but  relate  to  future
operations, strategies, financial results or other developments. Forward-looking
statements  are  necessarily  based  upon  estimates  and  assumptions  that are
inherently   subject  to   significant   business,   economic  and   competitive
uncertainties and  contingencies,  many of which are beyond our control and many
of which,  with  respect to future  business  decisions,  are subject to change.
Certain statements contained in this Form 10-Q,  including,  without limitation,
statements containing the words "believe,"  "anticipate,"  "estimate," "expect,"
"are  of  the   opinion   that"  and  words  of   similar   import,   constitute
"forward-looking  statements."  You should not place any undue reliance on these
forward-looking statements.

         You should be aware that our results from operations  could  materially
be effected by a number of factors,  which  include,  but are not limited to the
following: economic and business conditions specific to the financial/securities
industries;  competition  from other companies  offering similar  services,  our
ability to control  costs and  expenses,  access to capital,  and our ability to
meet contractual obligations.  There may be other factors not mentioned above or
included  elsewhere  in this  report  that may cause  actual  results  to differ
materially from any forward-looking information.

CRITICAL ACCOUNTING POLICIES

         Our discussion  and analysis of our financial  condition and results of
operations are based upon our statements, which have been prepared in accordance
with  accounting  principles  generally  accepted  in  the  United  States.  The
preparation  of these  financial  statements  requires us to make  estimates and
judgments that affect the reported amounts of assets, liabilities,  revenues and
expenses.  In consultation with our Board of Directors,  we have identified four
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 not
yet earned  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.


                                       9
<PAGE>


         The second critical policy relates to revenue recognition.  The Company
has structured its contracts for dematerializing financial instruments on behalf
of third  parties  to  provide  for a deposit  of 0.25% of the face value of the
financial  instruments  being  dematerialized  to be paid at commencement of the
contract,  and the balance of 1.75% of the face value to be paid upon completion
of the  dematerialization of those financial  instruments,  and the whole of the
income  arising on each  contract is  recognized  at the point of  completion of
dematerialization.

         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.

         The fourth  critical  policy relates to shares issued for services.  We
value the shares  issued based on the closing  price of our stock on the date of
grant.


SELECT FINANCIAL INFORMATION

                                                     FOR THE THREE MONTHS ENDED
                                                             AUGUST 31,
                                                    ---------------------------
                                                        2008            2007
                                                    (Unaudited)     (Unaudited)
                                                    -----------     -----------
STATEMENT OF OPERATIONS DATA
Total revenue ..................................    $      --       $      --
Operating loss .................................    $  (326,047)    $  (219,878)
Net loss per share .............................    $      --       $      --

BALANCE SHEET DATA
Total assets ...................................    $    51,391     $     6,474
Total liabilities ..............................    $   731,512     $   530,940
Stockholder's deficit ..........................    $  (680,121)    $  (524,466)


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 2009,  we plan to take the following
steps in order to improve the process, and generate revenue from operations, (a)
fulfill our existing contracts (b) attempt to sign additional  contracts for the
dematerialization of financial instruments within the insurance industry.


                                       10
<PAGE>


THREE-MONTH  PERIOD ENDED AUGUST 31, 2008 COMPARED TO  THREE-MONTH  PERIOD ENDED
AUGUST 31, 2007

REVENUES

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

EXPENSES

         During  the  three  months  ended  August  31,  2008  our  general  and
administrative  expenses were  $324,699.  Included in this amount is $232,433 of
wages to our  officers  whom have waived  payment on $115,000 of this amount and
applied it to paid-in capital,  $40,000 of consulting and professional  services
and $38,977 of legal and accounting expenses.

         During  the three  months  ended  August  31,  2007,  our  general  and
administrative  expenses were  $191,771.  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 $54,560 of
legal and accounting expenses.

         During the three  months  ended  August 31, 2008 we incurred  $1,348 of
interest  expense  related to a note payable to a shareholder.  During the three
months ended August 31, 2007, we incurred $1,183 of interest  expense related to
a note payable to a shareholder  and $26,924 of interest  expense related to the
convertible debenture.

NET LOSS

         As a result of the  aforementioned,  our net loss was  $326,047 for the
three  months  ended  August 31, 2008 and  $219,878  for the three  months ended
August 31, 2007.

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. During the quarter ended August 31,
2008, the Company negotiated and signed contracts for the  dematerialization  of
Senior Life Policies with a face value of $125,000,000 and we received  $275,000
as prepaid amounts towards the fulfillment of those contracts.

         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 contracts  mentioned above, 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.

         Management  expects that  revenues from our above  mentioned  contracts
will provide sufficient funds to maintain  operations,  and satisfy our budgeted
cash requirements through May 31, 2009.


                                       11
<PAGE>


         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 three months ended August 31, 2008, Mr. Stevens and
Mr. Ramsden incurred $232,433 of compensation  expense and waived  reimbursement
on $115,000 of this amount and applied it to paid-in capital.

LIQUIDITY AND CAPITAL RESOURCES

         Our working capital deficit was $680,121 at August 31, 2008.

         Our cash flows  provided  by  operations  were  $111,255  for the three
months  ended August 31,  2008.  This is the primary  results of our net loss of
$326,047 which included non-cash expenses of $118,973, and increases in accounts
payable  and accrued  expenses of $11,981 and amounts due to a related  party of
$30,000. During the three months ended August 31, 2008 we also received $275,000
from customers in deposits on future contracts.

         Our cash flows used by  operations  were  $16,645 for the three  months
ended August 31, 2007.  This is the primary  results of our net loss of $219,878
which included  non-cash  expenses of approximately  $126,000,  and increases in
accounts  payable and  accrued  expenses of $50,980 and amounts due to a related
party of $30,000.

         During the three months  ended  August 31, 2008 we purchased  1,600,000
shares of Private Trading Systems, PLC, for $45,732.

         During the three  months  ended August 31, 2007 we did not use any cash
for investing activities.

         During the three  months  ended  August 31, 2008 our cash flows used by
financing  activities was $62,148 as a result of our repayments on notes payable
to shareholders.

         During  the three  months  ended  August  31,  2007 our cash flows from
financing  activities  were  $16,542,  resulting  from  our  borrowings  from  a
principal shareholder.

         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 $5,659 on August 31, 2008.

         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 August 31,
2009. 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.


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<PAGE>


         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.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

         Based on the nature of our current  operations,  we have not identified
any issues of market risk at this time.

ITEM 4T. CONTROLS AND PROCEDURES

         The principal  executive officer and principal financial officer of the
Company, ("the Certifying Officers") 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  Officers  conclude that the
Company's  disclosure  controls and procedures are effective in timely  alerting
management to material  information relative to the Company which is required to
be disclosed in its periodic filings with the SEC.

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


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<PAGE>


                                     PART II
                                OTHER INFORMATION


ITEM 1.  LEGAL PROCEEDINGS   None.

ITEM 2.  UNREGISTERED SALES OF EQUITY AND USE OF PROCEEDS   None.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES   None.

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

         During the quarter ended August 31, 2008, no matters were  submitted to
         the Company's security holders.

ITEM 5.  OTHER INFORMATION   None.

ITEM 6.  EXHIBITS

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

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


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<PAGE>


                                   SIGNATURES

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

                                  DEMATCO, INC.
                                  (Registrant)


Dated: October 20, 2008           /S/ ROBERT STEVENS
                                  ---------------------------------------
                                      Robert Stevens, President and Chief
                                      Executive Officer


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