UNITED
STATES


SECURITIES
AND EXCHANGE COMMISSION


Washington,
D.C. 20549





FORM
10-Q





(Mark
      One)[X]   QUARTERLY
      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
      1934For
      the quarterly period ended: September 30,
      2008Or[   ]   TRANSITION
      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
      1934For
      the transition period from ____________ to
_____________Commission
      File Number: 333-147193COMMERICAL
      E-WASTE MANAGEMENT, INC.(Exact
      name of registrant as specified in its charter)Nevada
            20-8325616(State
      or other jurisdiction of incorporation or organization)
            (I.R.S.
      Employer Identification No.)2510 Northland Drive, Mendota Heights,
      MN
            55120(Address
      of principal executive offices)
            (Zip
      Code)(651) 454-2600(Registrant's
      telephone number, including area code)(Former
      name, former address and former fiscal year, if changed since last
      report)


Indicate
by check mark whether the issuer (1) has filed all reports required to be filed
by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12
months (or for 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    [   ]
              (Do
      not check if a smaller reporting company)
            Smaller
      reporting company  [X]





Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act)


Yes
[  ]   No [X]





Indicate
the number of shares outstanding of each of the issuer's classes of common
stock, as of the latest practicable date:





Common
      Stock, $0.001 par value
            11,000,000
      shares(Class)
            (Outstanding
      as at November 19, 2008)





COMMERCIAL
E-WASTE MANAGEMENT, INC.





Table
of Contents





PagePART I – FINANCIAL INFORMATION
            3Unaudited Financial Statements
            3Condensed Balance Sheet
            4Condensed Statements of Operations
            5Condensed Statements of Cash Flows
            6Notes to Condensed Financial Statements
            7Management's Discussion and Analysis of Financial Condition
      and Results of Operation
            10Controls and Procedures
            16PART II – OTHER INFORMATION
            16Unregistered Sales of Equity Securities
            16Defaults Upon Senior Securities
            16Exhibits and Reports on Form 8-K
            17SIGNATURES
            18

















2


PART I – FINANCIAL INFORMATION





Unaudited Financial Statements





The
accompanying unaudited financial statements have been prepared in accordance
with generally accepted accounting principles for interim financial reporting
and pursuant to the rules and regulations of the Securities and Exchange
Commission ("Commission").  While these statements reflect all normal
recurring adjustments which are, in the opinion of management, necessary for
fair presentation of the results of the interim period, they do not include all
of the information and footnotes required by generally accepted accounting
principles for complete financial statements.  For further information,
refer to the financial statements and footnotes thereto, which are included in
the Company's Registration Statement on Form S-1, originally filed with the
Commission on March 24, 2008, and subsequent amendments made
thereto.






































3


Commercial
E-Waste Management, Inc.


Condensed Balance Sheet








September
      30,
            
            
            December
      31,2008
            
            
            2007Assets
            
            (Unaudited)
            
            
            (Audited)Current
      assets:Cash
            
            $
            353
            
            
            $
            6,556Accounts
      receivable, less allowance for doubtfulAccounts of $158 at September 30, 2008
            
            
            2,388
            
            
            
            5,483Inventory
            
            
            4,449
            
            
            
            9,727Total
      current assets
            
            
            7,190
            
            
            
            21,766Fixed
      assets, net of accumulated depreciation of $1,734And
      $912 as of 9/30/08 and 12/31/07, respectively
            
            
            3,743
            
            
            
            4,565$
            10,933
            
            
            $
            26,331Liabilities
      and Stockholders’ (Deficit)Current
      liabilities:Accounts
      payable
            
            $
            2,116
            
            
            $
            4,988Accrued
      interest
            
            
            4,358
            
            
            
            2,388Notes
      payable
            
            
            26,500
            
            
            
            25,000Sales
      tax payable
            
            
            2,906
            
            
            
            1,114Total
      current liabilities
            
            
            35,880
            
            
            
            33,490Long
      term liabilitiesNote
      payable – related party
            
            
            200
            
            
            
            5,500Total
      long term liabilities
            
            
            200
            
            
            
            5,500Total
      liabilities
            
            
            36,080
            
            
            
            38,990Stockholders’
      equityPreferred
      stock, $0.001 par value, 100,000,000 sharesauthorized,
      no shares issued and outstanding
            
            
            -
            
            
            
            -Common
      stock, $0.001 par value, 100,000,000 sharesauthorized,
      11,000,000 shares issued and outstanding
            
            
            11,000
            
            
            
            11,000Additional
      paid-in capital
            
            
            49,065
            
            
            
            49,065(Deficit)
      accumulated during development stage
            
            
            (85,212
            )
            
            
            (72,724
            )Total
      stockholders’ (deficit)
            
            
            (25,147
            )
            
            
            (12,659
            )$
            10,933
            
            
            $
            26,331











The
accompanying notes are an integral part of these financial
statements.








4


Commercial
E-Waste Management, Inc.


Condensed Statements of Operations








Three
      Months Ended
            
            
            Nine
      Months EndedSeptember
      30,
            
            
            September
      30,2008
            
            
            2007
            
            
            2008
            
            
            2007Revenue,
      net of returns and allowances
            
            $
            37,824
            
            
            $
            33,123
            
            
            $
            165,910
            
            
            $
            53,613Cost
      of sales
            
            
            4,918
            
            
            
            2,748
            
            
            
            16,804
            
            
            
            2,821Gross
      profit
            
            
            32,906
            
            
            
            30,375
            
            
            
            149,106
            
            
            
            50,792Expenses:Commissions
            
            
            600
            
            
            
            205
            
            
            
            8,692
            
            
            
            869Commissions
      –related party
            
            
            -
            
            
            
            6,227
            
            
            
            2,430
            
            
            
            10,792Depreciation
      expense
            
            
            274
            
            
            
            274
            
            
            
            822
            
            
            
            638Executive
      compensation
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            10,000General
      and administrative expenses
            
            
            30,809
            
            
            
            35,550
            
            
            
            128,746
            
            
            
            84,223General
      and administrative expenses – related party
            
            
            6,173
            
            
            
            4,125
            
            
            
            18,833
            
            
            
            7,375Total
      expenses
            
            
            37,856
            
            
            
            46,381
            
            
            
            159,523
            
            
            
            113,897Other
      income and expenses:Interest
      income
            
            
            1
            
            
            
            -
            
            
            
            1
            
            
            
            -Interest
      expense
            
            
            (662
            )
            
            
            (662
            )
            
            
            (1,971
            )
            
            
            (1,726
            )Total
      expenses
            
            
            (661
            )
            
            
            (662
            )
            
            
            (1,970
            )
            
            
            (1,726
            )(Loss)
      before provision for income taxes
            
            
            (5,611
            )
            
            
            (16,668
            )
            
            
            (12,387
            )
            
            
            (64,831
            )Provision
      for income taxes
            
            
            -
            
            
            
            -
            
            
            
            (100
            )
            
            
            -Net
      income (loss)
            
            $
            (5,611
            )
            
            $
            (16,668
            )
            
            $
            (12,487
            )
            
            $
            (64,831
            )Weighted
      average number ofcommon
      shares outstanding – basic and fully diluted
            
            
            11,000,000
            
            
            
            10,997,065
            
            
            
            11,000,000
            
            
            
            10,373,548Net
      (loss) per share – basic and fully diluted
            
            $
            (0.00
            )
            
            $
            (0.00
            )
            
            $
            (0.00
            )
            
            $
            (0.00
            )











The
accompanying notes are an integral part of these financial
statements.








5


Commercial
E-Waste Management, Inc.


Condensed Statements of Cash Flows








Nine
      months endedSeptember
      30,2008
            
            
            2007Cash
      flows from operating activitiesNet
      (loss)
            
            $
            (12,487
            )
            
            $
            (64,831
            )Adjustments
      to reconcile net (loss) tonet
      cash (used) by operating activities:Shares
      issued for services – related party
            
            
            -
            
            
            
            10,000Depreciation
            
            
            822
            
            
            
            638Changes
      in operating assets and liabilities:Decrease
      (Increase) in accounts receivable
            
            
            2,937
            
            
            
            (13,561
            )Increase
      in allowance for doubtful accounts
            
            
            158
            
            
            
            -Decrease
      (Increase) in inventory
            
            
            5,278
            
            
            
            (9,987
            )(Decrease)
      Increase in accounts payable
            
            
            (2,872
            )
            
            
            2,563Increase
      in accrued interest
            
            
            1,970
            
            
            
            1,726Increase
      in sales tax payable
            
            
            1,791
            
            
            
            304Net
      cash (used) by operating activities
            
            
            (2,403
            )
            
            
            (73,148
            )Cash
      flows from investing activitiesPurchase
      of fixed assets
            
            
            -
            
            
            
            (5,477
            )Net
      cash provided by investing activities
            
            
            -
            
            
            
            (5,477
            )Cash
      flows from financing activitiesDonated
      capital
            
            
            -
            
            
            
            60Issuances
      of common stock
            
            
            -
            
            
            
            50,000Proceeds
      from notes payable
            
            
            1,500
            
            
            
            25,000Proceeds
      from notes payable – related party
            
            
            -
            
            
            
            9,000Payments
      to note payable – related party
            
            
            (5,300
            )
            
            
            -Net
      cash provided by financing activities
            
            
            (3,800
            )
            
            
            84,060Net
      increase (decrease) in cash
            
            
            (6,203
            )
            
            
            5,435Cash
      – beginning
            
            
            6,556
            
            
            
            -Cash
      – ending
            
            $
            353
            
            
            $
            5,435Supplemental
      disclosures:Interest
      paid
            
            $
            -
            
            
            $
            -Income
      taxes paid
            
            $
            -
            
            
            $
            -Non-cash
      transactions:Shares
      issued for services – related party
            
            $
            -
            
            
            $
            10,000Number
      of shares issued for services – related party
            
            
            -
            
            
            
            10,000,000











The
accompanying notes are an integral part of these financial
statements.








6


Commercial
E-Waste Management, Inc.


Notes to Condensed Financial Statements





Note
1 – Basis of presentation





The
interim financial statements included herein, presented in accordance with
United States generally accepted accounting principles and stated in US dollars,
have been prepared by the Company, without audit, pursuant to the rules and
regulations of the Securities and Exchange Commission (SEC).  Certain
information and footnote disclosures normally included in financial statements
prepared in accordance with generally accepted accounting principles have been
condensed or omitted pursuant to such rules and regulations, although the
Company believes that the disclosures are adequate to make the information
presented not misleading.





These
statements reflect all adjustments, consisting of normal recurring adjustments,
which, in the opinion of management, are necessary for fair presentation of the
information contained therein.  It is suggested that these condensed
interim financial statements be read in conjunction with the financial
statements of the Company for the year ended December 31, 2007 and notes thereto
included in the Company's registration statement on Form S-1.  The
Company follows the same accounting policies in the preparation of interim
reports.




Results
of operations for the interim periods are not indicative of annual
results.





Note
2 – History and organization of the company





The
Company was organized January 25, 2007 (Date of Inception) under the laws of the
State of Nevada, as Commercial E-Waste Management, Inc.  The Company
is authorized to issue up to 100,000,000 shares of its common stock with a par
value of $0.001 per share and up to 100,000,000 shares of its preferred stock
with a par value of $0.001 per share.





The
business of the Company is to collect, refurbish, resell and/or recycle
information technology assets and end of life equipment.





Note
3 - Going concern





The
accompanying financial statements have been prepared assuming the Company will
continue as a going concern.  As shown in the accompanying financial
statements, the Company has incurred a net loss of ($85,212) for the period from
January 25, 2007 (inception) to September 30, 2008, and had net sales of
$276,835.  The future of the Company is dependent upon its ability to
obtain financing and upon future profitable operations from the development of
its new business opportunities.





The
Company is contemplating conducting an offering of its debt or equity securities
to obtain additional operating capital.  The Company is dependent upon
its ability, and will continue to attempt, to secure equity and/or debt
financing.  There are no assurances that the Company will be
successful and without sufficient financing it would be unlikely for the Company
to continue as a going concern.





The
financial statements do not include any adjustments relating to the
recoverability and classification of recorded assets, or the amounts of and
classification of liabilities that might be necessary in the event the Company
cannot continue in existence.





These
conditions raise substantial doubt about the Company's ability to continue as a
going concern.  These financial statements do not include any
adjustments that might arise from this uncertainty.











7


Commercial
E-Waste Management, Inc.


Notes
to Condensed Financial Statements





Note
4 – Fixed assets





Fixed
assets as of September 30, 2008 and 2007, consisted of the
following:





September30,2008
            
            
            2007Computer
      equipment
            
            $
            900
            
            
            $
            900Furniture,
      fixtures and equipment
            
            
            4,577
            
            
            
            4,577Accumulated
      depreciation
            
            
            (1,734
            )
            
            
            (638
            )$
            3,743
            
            
            $
            4,839





During
the three month periods ended September 30, 2008 and 2007, the Company recorded
depreciation expense of $274 and $274, respectively.





Note
5 – Stockholders’ equity





The
Company is authorized to issue 100,000,000 shares of its $0.001 par value common
stock and 100,000,000 shares of its $.001 par value preferred
stock.





On
January 25, 2007 the Company issued 10,000,000 shares of its $0.001 par value
common stock as founders’ shares to an officer and director in exchange for
services rendered valued at $10,000.





On
February 1, 2007, an officer and director of the Company donated cash in the
amount of $60.  The entire amount was donated, is not expected to be
repaid and is considered to be additional paid-in capital.





Through
September 30, 2007, the Company completed a private placement pursuant to
Regulation D, Rule 506, of the Securities Act of 1933, as amended, whereby the
Company sold an aggregate of 1,000,000 shares of its $0.001 par value common
stock for total cash of $50,000.





On
October 4, 2007, an officer and director of the Company donated cash in the
amount of $5.  The entire amount was donated, is not expected to be
repaid and is considered to be additional paid-in capital.





As of
September 30, 2008, there have been no other issuances of common
stock.





Note
6 – Debt and interest expense





On
February 2 2007, the Company conducted a private offering of debt securities,
whereby it secured $25,000 in bridge loan financing from one non-affiliated
entity.  The aggregate principal amount and interest accrued thereupon
was due on February 2, 2008, and is currently in default.  The note
bears an interest rate of 10.5%, calculated annually, and contains no prepayment
penalty.  As of September 30, 2008, the Company recorded $4,358 in
interest expense related to the note payable.





On
September 9, 2007, the Company issued an aggregate of $9,000 in debt securities
to an officer and director of the Company.  The note bears no
interest, is due and payable on September 1, 2009 and contains no prepayment
penalty.  Through September 30, 2008, the Company repaid $8,800 of the
note.  As of September 30, 2008, the balance owed is
$200.





On August
20, 2008, a non-affiliated third party loaned the Company $1,500.  The
note bears no interest and is due on demand.








8


Commercial
E-Waste Management, Inc.


Notes
to Condensed Financial Statements





Note
7 – Related party transactions





The
Company issued 10,000,000 shares of its par value common stock as founders’
shares to an officer and director in exchange for services rendered in the
amount of $10,000.





On
February 1, 2007, an officer and director of the Company donated cash in the
amount of $60.  The entire amount was donated, is not expected to be
repaid and is considered to be additional paid-in capital.





On
September 9, 2007, the Company issued an aggregate of $9,000 in debt securities
to an officer and director of the Company.  The note bears no
interest, is due and payable on September 1, 2009 and contains no prepayment
penalty.  Through June 30, 2008, the Company repaid $6,200 of the
note.  As of June 30, 2008, the balance owed is $2,800.





On
October 4, 2007, an officer and director of the Company donated cash in the
amount of $5.  The entire amount was donated, is not expected to be
repaid and is considered to be additional paid-in capital.





Through
the three months ended September 30, 2008 and 2007, the Company paid a total of
$0 and $6,227, respectively, in commissions to various related
parties.





Through
the three months ended September 30, 2008 and 2007, the Company paid a total of
$6,173 and $4,125, respectively, to related parties for services
rendered.




Note
8 – Lease Commitments







On
February 12, 2007, the Company entered into a 36-month Lease Agreement for
office space, which was set to expire in February 2010.  On August 22,
2007, the Company amended its lease agreement to lease additional office space
through November 30, 2007.  This addendum was subsequently informally
extended through March 31, 2008 for an additional $1,833 per
month.  On December 17, 2007, the Company further amended its lease
agreement to lease additional warehouse space through March 31, 2008 for an
additional $667 per month.  To preserve our own working capital, we
have arranged to be released from the obligations of our February 12, 2007 lease
agreement.  The property owner has terminated our lease, effective
September 5, 2008, and no further lease payments will be made.  We
currently utilize office and storage space provided by an officer and sole
director on an as-needed basis, at no charge to us.








9


Management's Discussion and Analysis of Financial Condition and
Results of Operation





Forward-Looking
Statements





This
Quarterly Report contains forward-looking statements about Commercial E-Waste
Management, Inc.’s business, financial condition and prospects that reflect
management’s assumptions and beliefs based on information currently available.
 We can give no assurance that the expectations indicated by such
forward-looking statements will be realized.  If any of our management’s
assumptions should prove incorrect, or if any of the risks and uncertainties
underlying such expectations should materialize, Commercial E-Waste Management’s
actual results may differ materially from those indicated by the forward-looking
statements.





The key
factors that are not within our control and that may have a direct bearing on
operating results include, but are not limited to, acceptance of our services,
our ability to expand our customer base, managements’ ability to raise capital
in the future, the retention of key employees and changes in the regulation of
our industry.





There may
be other risks and circumstances that management may be unable to predict.
 When used in this Quarterly Report, words such as,  "believes,"  "expects," "intends,"
 "plans,"
 "anticipates,"
 "estimates"and
similar expressions are intended to identify forward-looking statements,
although there may be certain forward-looking statements not accompanied by such
expressions.





Overview





Commercial
E-Waste Management, Inc. was incorporated in Nevada on January 25,
2007.  We are an electronics waste management solution provider,
specializing in the collection, retirement, storage and remarketing of excess,
damaged or obsolete electronic assets, such as computer, telecommunications and
other electronic office equipment.  We operate primarily in the
greater Minneapolis, Minnesota metropolitan area.  All goods are
transported from the client’s location by us to our approximately 5,000 square
foot warehouse facility located in Mendota Heights, Minnesota.  We are
not a recycling or waste disposal company.  We operate under three
significant business units: Collection, Equipment Resale, and
Recycling.





We
acquire, by being paid to remove, electronic equipment and components from
customers and suppliers, such as government, institutional and corporate
organizations.  We essentially act as a collector of electronic waste
products until they are resold or removed by a third-party waste disposal or
recycling company.  We are not actively engaged in waste disposal or
recycling activities and we have no facilities or licenses to do
so.  Typically, we charge a negotiated per pound rate to these
organizations for the removal of their unwanted e-waste materials.  In
certain cases, we have elected to purchase certain equipment at prices
negotiated on a case-by-case basis, with the goal of remarketing such
equipment.





Our core
business is the removal and collection of fully-depreciated and outmoded
electronic waste.  However, there exists the opportunity to capture
revenue through refurbishing, remarketing, dismantling and reselling of
end-of-life equipment and components we were paid to
remove.  Management uses it own discretion to evaluate which
merchandise is viable for resale, at which time we contract third-parties to
refurbish those items that have been identified as saleable.  We then
remarket these products through independent material brokers, equipment buyers,
on e-Bay or other internet auction sites, or donate them to local charitable
organizations, non-profit agencies and schools.





For
equipment that, in our management’s opinion, is deemed unsuitable for resale, we
sell to third-party recycling companies.  On average, we expect
recycling companies to purchase our e-Waste at a per pound rate to be
negotiated.  Certain items may not be recyclable, for which we plan to
pay a third-party disposal company to remove and eliminate for us.  We
do not plan to become a licensed recycling or waste disposal
company.  We have not identified or contacted any recyclers or waste
disposal companies with which to we can engage.





Results
of Operation for the Quarter ended September 30, 2008 and 2007





Revenues,
Cost of Goods Sold and Gross Profit





During
the three months ended September 30, 2008, we generated $37,824 in revenues from
providing our E-Waste collection services and sales of various end-of-life
equipment we were paid to remove, net of returns, allowances, credits and
discounts in the amount of $630.  In the comparable three month period
ended September 30, 2007, we generated $33,123 in revenues and did not recognize
any returns, allowances, credits or discounts.  The $4,701 net
increase in revenues represents an increase of approximately 14%
year-over-year.




10


Cost of
sales in the quarter ended September 30, 2008 was $4,918 compared to $2,748 in
the period ended September 30, 2007.  The 79%, or $2,170, increase in
cost of goods sold is due primarily to higher credit card transaction processing
fees and shipping and delivery costs in the three months ended September 30,
2008 compared to the three months ended September 30, 2007.





After
deducting cost of sales, our gross profit for the three months ended September
30, 2008 was $32,906, as opposed to a gross profit of $30,375 in the three month
period ended September 30, 2007.





The table
below shows a comparison of our net sales figures for each of our business units
during the three month period ended September 30, 2008 compared to the three
months ended September 30, 2007:





Three
      Months Ended
            
            
            %
      of
            
            
            Three
      Months Ended
            
            
            %
      ofBusiness
      Unit
            
            September
      30, 2008
            
            
            Gross
      Revenue
            
            
            September
      30, 2007
            
            
            Gross
      RevenueCollection
            
            $
            2,297
            
            
            
            6.1
            %
            
            $
            9,233
            
            
            
            27.9
            %Equipment
      Resale
            
            
            27,567
            
            
            
            72.9
            %
            
            
            23,890
            
            
            
            72.1
            %Recycling
            
            
            7,960
            
            
            
            21.0
            %
            
            
            -
            
            
            
            0.0
            %Total
            
            $
            37,824
            
            
            
            100.0
            %
            
            $
            33,123
            
            
            
            100.0
            %





Revenues
from our five largest customers collectively accounted for approximately 60.9%
of gross revenues during the three months ended September 30, 2008, as
follows:





Customer
      Name
            Approximate
      % of RevenuesETK
      International
            20.7%Vallon,
      LLC
            16.7%Victoria
      Republics
            10.4%Custom
      Education Solutions
            7.2%Anchor
      Distributing
            5.9%





We have
no long-term or guaranteed contracts in place with any customers and there can
be no assurance that our major customers will continue to engage our services,
or that we will be able to replace revenues from such customers with revenues
from other customers.





Operating
Expenses – Commissions





We incur
various costs and expenses in the execution of our business.  We pay
our sales personnel, of which two are our officers and directors, a commission
based upon the level of sales generated.  In the three months ended
September 30, 2008, total commissions were $600 to our sales staff, all of which
was paid to non-related parties.  In the comparable period ended
September 30, 2007, we paid a total of $6,432 in commissions, of which $6,227
was paid to related parties and $205 was paid to non-related
parties.  The decrease in overall commissions paid is primarily
attributable to the elimination of a commission-based sales system during the
three months ended September 30, 2008.  Commissions paid during the
three months ended September 30, 2008 and 2007 comprised 1.6% and 13.9% of
aggregate operating expenses, respectively.





Operating
Expenses – Depreciation Expense





We own
certain depreciable assets, consisting of computer equipment and furniture and
fixtures.  During the three months ended September 30, 2008 and 2007,
we recognized $274 and $274 in depreciation expense, respectively.











11


Operating
Expenses – General and Administrative





In the
operating of our business, we incur general and administrative expenses mainly
consisting of, but not limited to, rent, office expenditures, labor costs and
professional fees.  During the quarter ended September 30, 2008, total
general and administrative expenses were $36,982, of which $6,173 (or 16.7% of
aggregate general and administrative expense) was paid to related
parties.  During this period, rent expense in the amount of $12,552
accounted for approximately 33.9% of total general and administrative fees,
while direct labor expense of $7,687 made up 20.8% of general and administrative
expenses during the three months ended September 30, 2008.





In the
comparable three month period ended September 30, 2007, we incurred general and
administrative expenses in the amount of $39,675, of which $4,125 (or 10.4% of
aggregate general and administrative costs) was paid to related
parties.  During the three months ended September 30, 2007, rent
expense in the amount of $13,233, which was 33.4% of total general and
administrative expenses, and the direct labor of $8,184, which accounted for
20.6% of total general and administrative expenses.





Total
Operating Expenses





Total
operating expenditures during the most recent quarter ended September 30, 2008
were $37,856.  In the three months ended September 30, 2007, total
operating expenses were $46,381.  We do not expect our operating
expenses to plateau or decline in the foreseeable future.  Instead, we
expect these expenses to continue for at least the next 12 months.





Interest
Income and Expense





We opened
a cash account in fiscal year 2008 that earns a nominal rate of
interest.  During the three months ended September 30, 2008, we earned
$1 of interest income.  We did not earn any interest income in the
comparable three months ended September 30, 2007.





On
February 2, 2007, we secured bridge loan financing, through which we are able to
borrow $25,000.  The loan bears an interest rate of 10.5% per annum
and was payable on or before February 2, 2008 and is currently past
due.  During the three month periods ended September 30, 2008 and
2007, we accrued interest expenses related to this loan in the amounts of $662
and $662, respectively.  As of September 30, 2008, we recorded $4,358
in total accrued interest related to the note payable.





Net
Loss





During
the three months ended September 30, 2008 we recorded a net loss, in the amount
of $5,611.  In comparison, we incurred a net loss during the three
months ended September 30, 2007, in the amount of $16,668.  We
anticipate incurring ongoing operating losses and cannot predict when, if at
all, we may expect these losses to plateau or narrow.  There is
significant uncertainty projecting future profitability due to our minimal
operating history and lack of guaranteed ongoing revenue streams.





Results
of Operation for the Nine Months ended September 30, 2008 and 2007





It is
difficult to compare the nine months ended September 30, 2008 to those of the
nine months ended September 30, 2007, in that we were only recently incorporated
in January 2007 and were considered a development stage enterprise through the
quarter ended March 31, 2008.  Thusly, comparisons made henceforth may
not be indicative of future performance or results.





Revenues,
Cost of Goods Sold and Gross Profit





During
the nine months ended September 30, 2008, we generated $165,910 in revenues from
providing our E-Waste collection services and sales of various end-of-life
equipment we were paid to remove, net of returns, allowances, credits and
discounts in the amount of $1,678.  In the comparable nine month
period ended September 30, 2007, we generated $53,613 in revenues and did not
recognize any returns, allowances, credits or discounts.





Through
the nine months ended September 30, 2008, cost of sales was $16,804 compared to
$2,821 in the nine month period ended September 30, 2007.  The 495.7%,
or $13,983, increase in cost of goods sold is significantly related to the
higher volume of transactions processed during the nine months ended September
30, 2008 compared to the year ago period.




12








After
deducting cost of sales, our gross profit for the nine months ended September
30, 2008 was $149,106, as opposed to a gross profit of $50,792 in the comparable
nine month period ended September 30, 2007.





The table
below shows a comparison of our net sales figures for each of our business units
during the nine month periods ended September 30, 2008 and 2007:





Nine
      Months Ended
            
            
            %
      of
            
            
            Nine
      Months Ended
            
            
            %
      ofBusiness
      Unit
            
            September
      30, 2008
            
            
            Gross
      Revenue
            
            
            September
      30, 2007
            
            
            Gross
      RevenueCollection
            
            $
            27,681
            
            
            
            16.7
            %
            
            $
            28,167
            
            
            
            52.5
            %Equipment
      Resale
            
            
            110,363
            
            
            
            66.5
            %
            
            
            25,446
            
            
            
            47.5
            %Recycling
            
            
            27,866
            
            
            
            16.8
            %
            
            
            -
            
            
            
            0.0
            %Total
            
            $
            165,910
            
            
            
            100.0
            %
            
            $
            53,613
            
            
            
            100.0
            %





Revenues
from our five largest customers collectively accounted for approximately 28.3%
of gross revenues during the nine months ended September 30, 2008, as
follows:





Customer
      Name
            Approximate
      % of RevenuesETK
      International
            10.8%E-Tech
      Management
            6.0%Weather
      Nation
            4.0%Vallon,
      LLC
            3.9%Commercial
      Environments
            3.6%





We have
no long-term or guaranteed contracts in place with any customers and there can
be no assurance that our major customers will continue to engage our services,
or that we will be able to replace revenues from such customers with revenues
from other customers.





Operating
Expenses – Commissions





During
the nine months ended September 30, 2008, total commissions were $11,122 to our
sales staff, of which $8,692 was paid to non-related parties and $2,430 was paid
to related parties.  In the comparable nine month period ended
September 30, 2007, we paid a total of $11,661 in commissions, of which $10,792
was paid to related parties and $869 was paid to non-related
parties.  Commissions paid during the nine months ended September 30,
2008 and 2007 comprised 7.0% and 10.2% of aggregate operating expenses,
respectively.





Operating
Expenses – Depreciation Expense





During
the nine months ended September 30, 2008 and 2007, we recognized $822 and $638
in depreciation expense, respectively.  Depreciation expense
recognized during these nine month periods contributed 0.5% and 0.6% of
aggregate operating expenses, respectively.





Operating
Expenses – Executive Compensation





On
January 25, 2007, we issued shares of stock in lieu of cash for services related
to developmental activities on our behalf to our President, Brenda
Pfeifer.  As a result, during the nine months ended September 30,
2007, we recorded $10,000 in executive compensation, which is singularly
attributable to compensation paid to Mrs. Pfeifer.  During the nine
months ended September 30, 2008, we did not record any executive
compensation.











13


Operating
Expenses – General and Administrative





During
the year to date period ended September 30, 2008, total general and
administrative expenses were $147,579, of which $18,833 (or 12.8% of aggregate
general and administrative expense) was paid to related
parties.  During this period, rent expense in the amount of $45,978
accounted for approximately 31.2% of total general and administrative fees,
while direct labor expense of $25,935 made up 17.6% of general and
administrative expenses.  General and administrative expenses incurred
during the nine months ended September 30, 2008 comprised 92.5% of aggregate
operating expenses.





In the
year ago nine month period ended September 30, 2007, we incurred general and
administrative expenses in the amount of $91,598, of which $7,375 (or 8.1% of
aggregate general and administrative costs) was paid to related
parties.  During the nine months ended September 30, 2007, rent
expense in the amount of $36,033, which was 39.3% of total general and
administrative expenses, and the office supplies of $14,309, which accounted for
15.6% of total general and administrative expenses.  General and
administrative expenses incurred during the nine months ended September 30, 2007
comprised 80.4% of aggregate operating expenses.





Total
Operating Expenses





Total
operating expenditures during the most recent nine month period ended September
30, 2008 were $159,523.  In the nine months ended September 30, 2007,
total operating expenses were $113,897.





Interest
Income and Expense





We opened
a cash account in fiscal year 2008 that earns a nominal rate of
interest.  During the nine month period ended September 30, 2008, we
earned $1 of interest income.  We did not earn any interest income in
the comparable nine months ended September 30, 2007.





On
February 2, 2007, we secured bridge loan financing, through which we are able to
borrow $25,000.  The loan bears an interest rate of 10.5% per annum
and was payable on or before February 2, 2008 and is currently past
due.





During
the nine month periods ended September 30, 2008 and 2007, we accrued interest
expenses related to our $25,000 bridge loan payable in the amounts of $1,971 and
$1,726, respectively.  As of September 30, 2008, we recorded $4,358 in
accrued interest related to the note payable, which is currently in
default.





Net
Loss





In the
nine month period ended September 30, 2008 we incurred a net loss in the amount
of $12,487.  During the comparable nine month period ended September
30, 2007, we incurred a net loss in the amount of $64,831.  We
anticipate incurring ongoing operating losses and cannot predict when, if at
all, we may expect these losses to plateau or narrow.  There is
significant uncertainty projecting future profitability due to our minimal
operating history and lack of guaranteed ongoing revenue streams.





Cash
and Liquidity





Since our
inception, we have obtained capital through sales of our equity and debt
securities, as follows:





1.
            On
      February 2, 2007, we secured a bridge loan for $25,000 at an interest rate
      of 10.5% per year.  As of September 30, 2008, we have accrued
      interest in the aggregate amount of $4,358, related specifically to this
      loan, which is currently past due.  No payments have been made
      to satisfy or reduce the amount
due.





2.
            On
      June 30, 2007, we closed our private placement offering of common stock,
      whereby we sold an aggregate of 1,000,000 shares at a price per share of
      $0.05, for gross proceeds of
$50,000.





3.
            On
      September 9, 2007, we issued a long term note payable in the amount of
      $9,000 to an officer and director.  As of September 30, 2008, we
      have repaid a total of $8,800 of this loan.  The principal
      balance owed on this note is $200, as of September 30,
    2008.





4.
            On
      August 20, 2008, a non-related third party entity loaned us
      $1,500.  The loan was made without interest and is due upon
      demand.  We have not made any payments to satisfy this loan as
      of September 30, 2008.







14





We are in
a precarious financial position and may be unable to maintain our operations
through the fiscal year ended December 31, 2008, assuming our revenues and
expenses remain relatively stable, of which there can be no
guarantee.  As of September 30, 2008, we had current assets of $7,190,
compared to current liabilities in the amount of $35,880.  We cannot
guarantee that we will be able to satisfy any or all of our financial
obligations.  Our ability to fund our operating expenses and debt
service requirements are in doubt, and we cannot guarantee that we will be able
to satisfy such.





During
the current quarter ended September 30, 2008, our attempts to collect past due
accounts receivable received significant adverse results.  Our
management believes its customers are experiencing significant cash flow
difficulties and are increasingly unable to meet their
obligations.  Approximately $2,187 in receivables was deemed to be
entirely uncollectible.  An additional $158 was credited to allowance
for doubtful accounts based upon the age of the receivables.  If we
continue to experience non-performing accounts receivable, our cash position
will be further compromised.





To
preserve our own working capital, we have arranged to be released from the
obligations of our February 12, 2007 lease agreement.  The property
owner has terminated our lease, effective September 5, 2008, and no further
lease payments will be made.  We currently utilize office and storage
space provided by an officer and sole director on an as-needed basis, at no
charge to us.





In
consideration of our limited working capital and financial resources, our
management believes that we require immediate additional financing, through
offerings of our equity and/or debt securities, or derivation
thereof.  There are no formal or informal agreements to attain such
financing.  We can not assure you that any financing can be obtained
or, if obtained, that it will be on reasonable terms.  Without
realization of additional capital, it would be unlikely for us to continue as a
going concern.





Employees





Our
management does not anticipate the need to hire additional full- or part- time
employees over the next 12 months, as the services provided by our staff appear
sufficient at this time.  We do not expect to hire any additional
employees over the next 12 months.





Miscellaneous





No
development related expenses have been or will be paid to our
affiliates.





Our
management does not expect to incur research and development costs.





We do not
have any off-balance sheet arrangements.





We
currently do not own any significant plant or equipment that we would seek to
sell in the near future.





We have
not paid for expenses on behalf of our directors.  Additionally, we
believe that this fact shall not materially change.





We
currently do not have any material contracts and or affiliations with third
parties.







15


Controls and Procedures





Evaluation
of Disclosure Controls and Procedures





We
maintain a set of disclosure controls and procedures designed to ensure that
information required to be disclosed by us in our reports filed under the
Securities Exchange Act, is recorded, processed, summarized and reported within
the time periods specified by the SEC’s rules and forms.  Disclosure
controls are also designed with the objective of ensuring that this information
is accumulated and communicated to our management, including our chief executive
officer and chief financial officer, as appropriate, to allow timely decisions
regarding required disclosure.





Based on
an evaluation as of the end of the period covered by this report, our Chief
Executive Officer and Chief Financial Officer concluded that our disclosure
controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the
Securities Exchange Act of 1934, as amended, (the “Exchange Act”)) were
effective to provide reasonable assurance 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 SEC rules and forms and that such information is accumulated and communicated
to our management, including our Chief Executive Officer and Chief Financial
Officer, to allow timely decisions regarding required disclosures.





Changes
in Internal Control Over Financial Reporting





There
were no changes in our internal control over financial reporting that occurred
during our most recent fiscal quarter that have materially affected, or
reasonably likely to materially affect, our internal control over financial
reporting.





PART II – OTHER INFORMATION





Unregistered Sales of Equity Securities





On
January 30, 2007, we issued 10,000,000 shares of our common stock to Brenda
Pfeifer, our founding shareholder and an officer and our sole
director.  This sale of stock did not involve any public offering,
general advertising or solicitation.  The shares were issued in
exchange for services performed by the founding shareholder on our behalf in the
amount of $10,000.  Mrs. Pfeifer received compensation in the form of
common stock for performing services related to the formation and organization
of our Company, including, but not limited to, designing and implementing a
business plan and providing administrative office space for use by the Company;
thus, these shares are considered to have been provided as founder’s
shares.  Additionally, the services are considered to have been
donated, and have resultantly been expensed and recorded as a contribution to
capital.  At the time of the issuance, Mrs. Pfeifer had fair access to
and was in possession of all available material information about our company,
as is an officer and director of Commercial E-Waste Management,
Inc.  The shares bear a restrictive transfer legend.  On the
basis of these facts, we claim that the issuance of stock to our founding
shareholder qualifies for the exemption from registration contained in Section
4(2) of the Securities Act of 1933.





In July
2007, we sold an aggregate of 1,000,000 shares of our common stock to 28
shareholders, all of whom are not affiliated with us.  The shares were
issued at a price of $0.05 per share for total gross cash proceeds in the amount
of $50,000.  There were no commissions or discounts and this was a
best efforts, self-underwritten offering conducted by the issuer.  The
shares bear a restrictive transfer legend.  This July 2007 transaction
(a) involved no general solicitation, (b) involved less than thirty-five
non-accredited purchasers and (c) relied on a detailed disclosure document to
communicate to the investors all material facts about Commercial E-Waste
Management, Inc..  Each purchaser was given the opportunity to ask
questions of us.  Thus, we believe that the offering was exempt from
registration under Regulation D, Rule 505 of the Securities Act of 1933, as
amended.





Defaults Upon Senior Securities





On
February 2, 2007, we secured bridge loan financing of $25,000 at a rate of 10.5%
per annum.  The loan was due in February 2008, and is currently in
default.  We recorded total interest expense in the amount of $4,358
through September 30, 2008.  We cannot predict when, if ever, we will
be able to remedy this debt obligation in full.








16


Exhibits and Reports on Form 8-K





Exhibit
      Number
            Name
      and/or Identification of Exhibit3
            Articles
      of Incorporation & By-Laws(a)
      Articles of Incorporation (1)(b)
      By-Laws (1)10
            Material
      Contracts(a)
      Lease Agreement (2)(b)
      Addendum to the Lease Agreement (2)(c)
      Bridge Loan Agreement dated February 2, 2007 (2)(d)
      Promissory Note dated September 1, 2007 (2)31
            Rule
      13a-14(a)/15d-14(a) Certifications(a)
      Brenda Pfeifer(b)
      Eugene Pfeifer32
            Certification
      under Section 906 of the Sarbanes-Oxley Act (18 U.S.C. Section
      1350)


(1)
            Incorporated
      by reference herein filed as exhibits to the Company’s Registration
      Statement on Form SB-2 filed on November 7,
  2007.


(2)
            Incorporated
      by reference herein filed as exhibits to the Company’s Registration
      Statement on Form SB-2/A filed on January 23,
  2008.




















17


SIGNATURES





Pursuant
to the requirements of the Exchange Act of 1934, the Registrant has duly caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.





COMMERCIAL
      E-WASTE MANAGEMENT, INC.(Registrant)Signature
            Title
            Date/s/
      Brenda Pfeifer
            President
      and
            November
      19, 2008Brenda
      Pfeifer
            Chief
      Executive Officer/s/
      Eugene Pfeifer
            Chief
      Financial Officer
            November
      19, 2008Eugene
      Pfeifer/s/
      Eugene Pfeifer
            Chief
      Accounting Officer
            November
      19, 2008Eugene
      Pfeifer



































18