----

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| x | Quarterly      Report under Section 13 or 15(d) of the Securities Exchange Act of      1934 |
|---|--------------------------------------------------------------------------------------------------|

|  ̈ | Transition      Report under Section 13 or 15(d) of the Securities Exchange Act of      1934 |
|--------|---------------------------------------------------------------------------------------------------|

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| Oklahoma                                                                |   | 20-4898182                                 |
|-------------------------------------------------------------------------|--------|--------------------------------------------|
| (State      or other jurisdiction ofincorporation      or organization) |   | (IRS      EmployerIdentification      No.) |

----

| an accelerated      filer o | a non accelerated      filer o | or a smaller      reporting company x |
|----------------------------------|-------------------------------------|--------------------------------------------|

| Class                              |   | Outstanding      at  August 5, 2008 |
|------------------------------------|--------|-----------------------------------------------|
| Common      Stock, $.001 par value |   | 15,335,681                                    |

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----

|                                                                                                                                                         | PageNumber |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|
| PART I. FINANCIAL INFORMATION                                                                                                                                |       |
|                                                                                                                                                         |       |
| Item 1.      Financial Statements                                                                                                                       |       |
|                                                                                                                                                         |       |
| Condensed Consolidated Balance      Sheet at June 30, 2008 and December 31, 2007      (unaudited)                                                            | 3          |
|                                                                                                                                                         |       |
| Condensed Consolidated Statements      of Operations for the three  months and six months ended June      30, 2008 and  2007 (unaudited) | 4          |
|                                                                                                                                                         |       |
| Condensed Consolidated Statements      of Cash Flows for the six months ended June 30, 2008 and  2007      (unaudited)                             | 5          |
|                                                                                                                                                         |       |
| Notes to Unaudited Condensed      Consolidated Financial Statements                                                                                          | 6          |
|                                                                                                                                                         |       |
| Item 2. Management’s Discussion and      Analysis of Financial Condition and Results of      Operations                                           | 12         |
|                                                                                                                                                         |       |
| Item 3.      Quantitative and Qualitative Disclosures About Market Risk                                                                                 | 19         |
|                                                                                                                                                         |       |
| Item      4. Controls and      Procedures                                                                                                                    | 19         |
|                                                                                                                                                         |       |
| PART II. OTHER INFORMATION                                                                                                                                   | 19         |
|                                                                                                                                                         |       |
| Item      1. Legal Proceedings                                                                                                                               | 19         |
|                                                                                                                                                         |       |
| Item 2.      Changes in Securities                                                                                                                      | 20         |
|                                                                                                                                                         |       |
| Item      3.  Defaults Upon Senior Securities                                                                                                      | 20         |
|                                                                                                                                                         |       |
| Item 4. Submission of Matters to Vote of      Shareholders                                                                                              | 20         |
|                                                                                                                                                         |       |
| Item 6. Exhibits and Reports on Form      8-K                                                                                                           | 21         |
|                                                                                                                                                         |       |
| SIGNATURE PAGE                                                                                                                                               | 24         |

----

PART I. FINANCIAL INFORMATION

AMEREX GROUP, INC. AND SUBSIDIARIES

|                                                                                                                                                                                                                                              |   | June      30, 2008 |        |   | December      31, 2007 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|-------------|--------|------------------------|--------|
| ASSETS                                                                                                                                                                                                                                            |   |               |        |   |                   |   |
| CURRENT      ASSETS                                                                                                                                                                                                                               |   |               |        |   |                   |   |
| Cash      and cash equivalents                                                                                                                                                                                                                    |   | $                  | 143,616     |   |                   | $      | 19,588 |   |
|                                                                                                                                                                                                                                              |   |               |        |   |                   |   |   |   |
| Accounts      receivable, trade, net of an allowance for doubtful accounts of $15,000 at      June      30, 2008 and December 31, 2007                                                                                                            |   |               | 1,778,547   |   |                   |   | 2,262,396 |   |
| Other      current assets                                                                                                                                                                                                                         |   |               | 731,091     |   |                   |   | 506,197 |   |
|                                                                                                                                                                                                                                              |   |               |        |   |                   |   |   |   |
|             TOTAL      CURRENT ASSETS                                                                                                                                                 |   |               | 2,653,254   |   |                   |   | 2,788,181 |   |
|                                                                                                                                                                                                                                              |   |               |        |   |                   |   |   |   |
| PROPERTY,      PLANT AND EQUIPMENT, at cost                                                                                                                                                                                                       |   |               | 3,976,142   |   |                   |   | 3,963,844 |   |
| Less      accumulated depreciation and amortization                                                                                                                                                                                               |   |               | (788,945    | )      |                   |   | (629,382 | ) |
|             NET      PROPERTY, PLANT AND EQUIPMENT                                                                                                                                    |   |               | 3,187,197   |   |                   |   | 3,334,462 |   |
|                                                                                                                                                                                                                                              |   |               |        |   |                   |   |   |   |
|                                                                                                                                                                                                                                              |   |               |        |   |                   |   |   |   |
| Other      assets                                                                                                                                                                                                                                 |   |               | 947,047     |   |                   |   | 686,595 |   |
|                                                                                                                                                                                                                                              |   |               |        |   |                   |   |   |   |
|             TOTAL      ASSETS                                                                                                                                                         |   | $                  | 6,787,498   |   |                   | $      | 6,809,238 |   |
|                                                                                                                                                                                                                                              |   |               |        |   |                   |   |   |   |
| LIABILITIES      AND STOCKHOLDERS’ EQUITY                                                                                                                                                                                                   |   |               |        |   |                   |   |   |   |
| CURRENT      LIABILITIES                                                                                                                                                                                                                          |   |               |        |   |                   |   |   |   |
| Accounts      payable                                                                                                                                                                                                                             |   | $                  | 2,178,043   |   |                   | $      | 2,476,282 |   |
| Accrued      expenses                                                                                                                                                                                                                             |   |               | 1,324,374   |   |                   |   | 1,089,133 |   |
| Current      portion of long term debt                                                                                                                                                                                                            |   |               | 13,892,812  |   |                   |   | 2,230,000 |   |
|                                                                                                                                                                                                                                              |   |               |        |   |                   |   |   |   |
|                                                                                                                                                                                                                                              |   |               |        |   |                   |   |   |   |
| Accrued      acquisition liability                                                                                                                                                                                                                |   |               | 272,950     |   |                   |   | 265,000 |   |
| Obligations      to issue equity instruments                                                                                                                                                                                                      |   |               | 128,412     |   |                   |   | 265,680 |   |
|            TOTAL      CURRENT LIABILITIES                                                                                                                                                  |   |               | 17,796,591  |   |                   |   | 6,326,095 |   |
| Long      term debt, net of debt discount                                                                                                                                                                                                         |   |               | 0           |   |                   |   | 7,471,592 |   |
|                                                                                                                                                                                                                                              |   |               |        |   |                   |   |   |   |
|            TOTAL      LIABILITIES                                                                                                                                                          |   |               | 17,796,591  |   |                   |   | 13,797,687 |   |
| Redeemable      common stock, 500,000 shares                                                                                                                                                                                                      |   |               | 777,000     |   |                   |   | 700,000 |   |
| COMMITMENTS &      CONTINGENCIES                                                                                                                                                                                                         |   |               |        |   |                   |   |   |   |
|                                                                                                                                                                                                                                              |   |               |        |   |                   |   |   |   |
| STOCKHOLDERS’      EQUITY                                                                                                                                                                                                                   |   |               |        |   |                   |   |   |   |
| Common      stock - $.001 Par Value, 100,000,000 shares authorized      15,335,681  and 15,709,683 shares issued and      outstanding at June 30, 2008 and December 31, 2007, respectively,      including redeemable      common stock |   |               | 14,836      |   |                   |   | 15,210 |   |
| Additional      paid-in capital                                                                                                                                                                                                                   |   |               | 6,459,228   |   |                   |   | 5,532,827 |   |
| Accumulated      deficit                                                                                                                                                                                                                          |   |               | (18,260,157 | )      |                   |   | (13,236,486 | ) |
|            TOTAL      STOCKHOLDERS’ EQUITY (DEFICIT)                                                                                                                                 |   |               | (11,786,093 | )      |                   |   | (7,688,449 | ) |
|            TOTAL      LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)                                                                                                                 |   | $                  | 6,787,498   |   |                   | $      | 6,809,238 |   |

----

AMEREX GROUP, INC. ANDSUBSIDIARIES

|                                                          |   | Three Months Ended June 30, |       |   | Six Months Ended June 30, |   |
|---------------------------------------------------------------|--------|-----------------------------|------------|--------|---------------------------|--------|
|                                                          |   | 2008                        |       |   | 2007                      |   |   | 2008 |   |   | 2007 |   |
|                                                          |   |                        |       |   |                      |   |   |   |   |   |   |   |
| Revenue                                                       |   | $                           | 1,173,492  |   |                      | $      | 2,109,309 |   |   | $ | 2,780,914 |   |   | $ | 4,257,181 |   |
| Operating      Expenses:                                      |   |                        |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Cost      of services provided                                |   |                        | 1,099,887  |   |                      |   | 1,284,999 |   |   |   | 2,239,788 |   |   |   | 2,570,252 |   |
| Non      cash compensation                                    |   |                        | 280,916    |   |                      |   | 0 |   |   |   | 643,589 |   |   |   | 0 |   |
| Selling,      general and administrative                      |   |                        | 692,888    |   |                      |   | 653,239 |   |   |   | 1,362,936 |   |   |   | 1,301,067 |   |
| Professional      fees                                        |   |                        | 200,374    |   |                      |   | 146,198 |   |   |   | 351,668 |   |   |   | 224,341 |   |
| Depreciation                                                  |   |                        | 80,171     |   |                      |   | 73,026 |   |   |   | 159,563 |   |   |   | 153,407 |   |
| Amortization                                                  |   |                        | 9,041      |   |                      |   | 9,041 |   |   |   | 18,082 |   |   |   | 18,082 |   |
|                                                          |   |                        |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Total      Operating Expenses                                 |   |                        | 2,363,277  |   |                      |   | 2,166,503 |   |   |   | 4,775,626 |   |   |   | 4,267,149 |   |
|                                                          |   |                        |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Operating      Income (Loss)                                  |   |                        | (1,189,785 | )      |                      |   | (57,194 | ) |   |   | (1,994,712 | ) |   |   | (9,968 | ) |
|                                                          |   |                        |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Other      Income (Expense):                                  |   |                        |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Interest      expense                                         |   |                        | (453,840   | )      |                      |   | (220,191 | ) |   |   | (808,353 | ) |   |   | (407,822 | ) |
| Amortization      of debt discount                            |   |                        | (80,754    | )      |                      |   | (492,475 | ) |   |   | (258,385 | ) |   |   | (932,928 | ) |
| Amortization      of capitalized financing fees               |   |                        | (141,767   | )      |                      |   | (208,044 | ) |   |   | (141,767 | ) |   |   | (408,143 | ) |
| Financing      penalty fees                                   |   |                        | (1,954,231 | )      |                      |   | (302,600 | ) |   |   | (1,954,231 | ) |   |   | (598,400 | ) |
| Remeasurement      of obligations to issue equity instruments |   |                        | 30,996     |   |                      |   | (738,513 | ) |   |   | 137,268 |   |   |   | (738,513 | ) |
| Other      income (expense)                                   |   |                        | (40,728    | )      |                      |   | 39,698 |   |   |   | (3,491 | ) |   |   | 39,720 |   |
|                                                          |   |                        |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Loss      From Continuing Operations                          |   |                        | (3,830,109 | )      |                      |   | (1,979,319 | ) |   |   | (5,023,671 | ) |   |   | (3,056,054 | ) |
|                                                          |   |                        |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Income      (Loss) From Discontinued Operations               |   |                        | 0          |   |                      |   | 16,136 |   |   |   | 0 |   |   |   | (77,575 | ) |
|                                                          |   |                        |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Net      Loss                                                 |   | $                           | (3,830,109 | )      |                      | $      | (1,963,183 | ) |   | $ | (5,023,671 | ) |   | $ | (3,133,629 | ) |
|                                                          |   |                        |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| LOSS      PER SHARE                                           |   |                        |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Basic      and Diluted                                        |   | $                           | (0.28      | )      |                      | $      | (0.10 | ) |   | $ | (0.35 | ) |   | $ | (0.17 | ) |
|                                                          |   |                        |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      average number of common shares outstanding:    |   |                        |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Basic      and Diluted                                        |   |                        | 13,780,156 |   |                      |   | 18,773,596 |   |   |   | 14,384,247 |   |   |   | 18,773,596 |   |

----

AMEREX GROUP, INC. AND SUBSIDIARIES

|                                                                                               |    | Six      Months Ended June 30, |        |
|----------------------------------------------------------------------------------------------------|--------------|--------------------------------|-------------|
|                                                                                               |    | 2008                           |        |   | 2007 |   |
| Cash      Flows From Operating Activities                                                          |    |                           |        |   |   |   |   |   |
| Net      Loss                                                                                      |    | $                              | (5,023,671) |   |   | $ | (3,133,629) |   |
| Adjustments      to reconcile net loss to net cash provided by (used in) operating      activities |    |                           |        |   |   |   |   |   |
| Loss      on discontinued operations                                                               |         |                           | 0           |   |   |   | 77,575 |   |
| Depreciation      and amortization                                                                 |    |                           | 177,645     |   |   |   | 173,413 |   |
| Amortization      of debt discount                                                                 |    |                           | 258,385     |   |   |   | 1,341,071 |   |
| Gain      on sale of assets                                                                        |         |                           | 0           |   |   |   | (25,025) |   |
| Financing      penalty fee                                                                         |         |                           | 1,954,231   |   |   |   | 0 |   |
| Interest      expense added to notes payable                                                       |         |                           | 541,294     |   |   |   | 0 |   |
| Noncash      compensation                                                                          |    |                           | 658,589     |   |   |   | 100,000 |   |
| Changes      in:                                                                                   |    |                           |        |   |   |   |   |   |
| Accounts      receivable                                                                           |    |                           | 483,849     |   |   |   | 424,831 |   |
| Other      current assets                                                                          |         |                           | 42,544      |   |   |   | 345,088 |   |
| Other      assets                                                                                  |    |                           | 146,767     |   |   |   | 0 |   |
| Accounts      payable                                                                              |    |                           | (298,239)   |   |   |   | 315,287 |   |
| Other  current      liabilities                                                          |    |                           | 182,923     |   |   |   | 44,737 |   |
|                                                                                               |    |                           |        |   |   |   |   |   |
| Net      cash used in operating activities                                                         |    |                           | (875,683)   |   |   |   | (336,652) |   |
|                                                                                               |         |                           |        |   |   |   |   |   |
| Cash      flows from Investing Activities                                                          |         |                           |        |   |   |   |   |   |
| Acquisition      of property, plant and equipment                                                  |    |                           | (12,298)    |   |   |   | (24,511) |   |
| Proceeds      from sales of assets                                                                 |         |                           | 0           |   |   |   | 113,400 |   |
| Proceds      from release of restricted cash                                                       |         |                           | 0           |   |   |   | 350 |   |
| Net      cash used by investing activities – continuing operations                           |         |                           | (12,298)    |   |   |   | 89,239 |   |
| Net      cash provided by investing activities – discontinued      operations                |         |                           | 0           |   |   |   | 66,650 |   |
|                                                                                               |    |                           |        |   |   |   |   |   |
| Net      cash provided by (used in) investing activities                                           |    |                           | (12,298)    |   |   |   | 155,889 |   |
|                                                                                               |    |                           |        |   |   |   |   |   |
| Cash      flows from Financing Activities                                                          |    |                           |        |   |   |   |   |   |
| Borrowings      on Debt                                                                            |    |                           | 1,012,009   |   |   |   | 249,979 |   |
| Repayment      of Debt                                                                             |    |                           | 0           |   |   |   | (115,600) |   |
|                                                                                               |    |                           |        |   |   |   |   |   |
| Net      cash provided by financing activities                                                     |    |                           | 1,012,009   |   |   |   | 134,379 |   |
|                                                                                               |    |                           |        |   |   |   |   |   |
| Net      decrease in cash and cash equivalents                                                     |    |                           | 124,028     |   |   |   | (46,384) |   |
|                                                                                               |         |                           |
| Cash      and cash equivalents at beginning of period                                              |    |                           | 19,588      |   |   |   | 60,267 |   |
|                                                                                               |    |                           |        |   |   |   |   |   |
| Cash      and cash equivalents at end of period                                                    |    | $                              | 143,616     |   |   | $ | 13,883 |   |
|                                                                                               |    |                           |        |   |   |   |   |   |
| Supplemental      disclosures - cash paid for:                                                     |    |                           |        |   |   |   |   |   |
| Interest                                                                                           |    | $                              | 610,347     |   |   | $ | 407,822 |   |
| Income      taxes                                                                                  |    | $                              | 0           |   |   | $ | — |   |

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| 1. | Basis of Presentation.      In the opinion of management, the accompanying unaudited condensed      consolidated financial statements contain all normal recurring adjustments      necessary to present fairly the financial position of Amerex Group, Inc.      and its wholly-owned subsidiary,  AMEREX Companies, Inc.      (“Amerex”), and its wholly-owned subsidiary, Waste Express,      Inc.,  (collectively, the “Company”) at June 30, 2008 and the      results of its (i) operations for the three and six months ended June      30, 2008 and 2007 and (ii) cash flows for the six months ended June      30, 2008 and 2007. The financial information included herein is taken from      the books and records of the Company and is unaudited. Certain      information and footnote disclosures normally included in financial      statements prepared in accordance with generally accepted accounting      principles have been condensed or omitted. These condensed financial      statements should be read in conjunction with the audited financial      statements and notes thereto included in the Company’s annual report on      Form 10-KSB and Forms 10-Q and 8-K made to date in 2008. The      accompanying financial statements have been prepared assuming that the      Company will continue as a going concern.  The Company incurred      a net loss of $7,114,098 during the year ended December 31, 2007, a net      loss for the six months ended June 30, 2008 of $5,023,671 and further      losses are anticipated.  As of June 30, 2008, the Company had a      working capital deficiency of $15,143,337 and stockholders’ deficit of      $11,786,093.   Furthermore, the Company has experienced      cash flow difficulties, currently owes the Internal Revenue Service and      certain state revenue authorities for past due payroll taxes and is      currently in default according to the terms of its note agreements, which      causes the balances to become due on demand.  The Company does      not currently have alternate sources of capital sufficient to meet such      demands, if made.    These conditions raise      substantial doubt about the Company’s ability to continue as a going      concern.  The financial statements do not include any      adjustments that might result from the outcome of this      uncertainty.  The Company is currently pursuing various      alternatives to obtain additional funding to repay short-term liabilities,      including mortgaging and selling assets, and management is taking steps to      increase revenues, minimize costs and achieve profitable      operations. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.     | Line of credit. On      August 31, 2006, the Company entered into an agreement with CAMOFI Master      LDC for a line of credit with a maximum borrowing equal to the lesser of      $1,500,000 or 80% of accounts receivable aged less than 90 days in      consideration for the issuance to CAMOFI Master LDC of a five-year warrant      to purchase 750,000 shares of our common stock at an exercise price of      $0.01 per share. This line of credit is secured by our accounts      receivable. Borrowings under this line of credit bear interest at prime      plus 4%. The      credit facility agreement contains debt covenants similar to those      contained in the Senior Secured Convertible Notes Agreement.  An      agreement was executed with CAMOFI in December 2007 that extended the      maturity date of the line of credit to November 10, 2010.  The      Company defaulted on its debt covenants with CAMOFI and entered into an      agreement dated June 9, 2008, pursuant to which CAMOFI agreed not to take      action with regard to such defaults or enforce its security interests      prior to September 2008, and which extends the line of credit to September      1, 2008 and increased the maximum borrowing amount to      $1,925,301.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 3.     | Long      Term DebtCAMOFI      NotesThe      Company entered into 10% Senior Secured Convertible Notes (the “Notes”)      dated November 21, 2005 with CAMOFI MASTER LDC and a limited number of      Qualified Institutional Investors.  Interest is payable monthly in      arrears, in cash or, at the option of the Company and subject to certain      conditions being met, in registered common stock. The      Notes are collateralized by a first lien on all current and future assets      of the Company and its current and future subsidiaries.  The Notes      are guaranteed by the current and future subsidiaries of the Company.       The agreement requires the Company to comply with certain      nonfinancial covenants, including restricting the payment of      dividends. The      stated principal of the Notes was $6,000,000, which was increased to      $6,800,000 on February 23, 2006.  However, the original agreement      provided for repayment of the principal according to the following      premiums and schedule:  102% of principal for monthly principal      repayments of 1/60 of stated principal beginning September 2006, 110% of      optional principal prepayments prior to November 21, 2006, 112.5% of      optional principal prepayments November 21, 2006 through April 20, 2007,      115% of any principal prepayments thereafter including the required      repayment at November 21, 2007 maturity.  The effect of the premiums      increases the effective interest paid on the amounts borrowed.  The      Convertible Notes are stated at the amount due  with the debt      discount being amortized by the interest method and adjusted over time to      equate the amount initially borrowed to the amount scheduled to be      repaid. |

----

|    | The      Notes are convertible at any time into common stock at a fixed conversion      price. The fixed conversion price to convert the debt to equity is set at      $0.50 per share, subject to downward adjustment for any subsequent equity      transactions at prices less than $0.50 per share.  In connection      with the issuance of the Notes, the holders of the Notes were issued      five-year warrants to      purchase 2,000,000 shares of common stock at an exercise price of $0.01      per share.  The warrants are exercisable on a cashless basis and      include certain anti-dilution provisions.  When the Notes were      amended to increase the outstanding principal to $6,800,000, the number of      warrants issued was increased to 2,266,667. In      accordance with EITF Issue No. 98-5 and No. 00-27, the $6 million proceeds      received were allocated to the Notes and warrants based on their estimated      fair values, resulting in the recording of a debt discount. The allocated      value of the warrants, which was $980,834, resulted in recording of a debt      discount and a liability to issue equity instruments.  The      additional warrants issued in February 2006 increased this value by      $130,778.  The determination of the fair value assumed exercise      at the end of 5 years and 17.44% stock price volatility.  Since the      Notes possess a beneficial conversion feature, an additional debt discount      and increase to additional paid-in capital of $980,834 at November 2005      and $130,778 at February 2006 were recorded based on the intrinsic value      of the conversion feature.  Since the shares of the Company’s common      stock were not readily convertible to cash at December      31,  2006, neither the warrants nor beneficial conversion      feature were subject to SFAS 133 derivative accounting through December      31, 2006.  Due to the liquidated damages discussed in the      following paragraph, the warrants were recorded as a liability through      December 31, 2006 based on the guidance in EITF 00-19. In      December 2006, the FASB issued Staff Position FSP EITF 00-19-2,      “Accounting for Registration Payment Arrangements”.  This      pronouncement was adopted by the Company effective January 1, 2007, which      resulted in the reclassification of these warrants, valued at $1,479,000      at January 1, 2007, from liabilities to equity. A      separate agreement with holders of the Notes provided that the Company      would pay liquidated damages to the holders of the Notes if a registration      statement was not filed and declared effective by certain dates in 2006.       In 2006, the Company agreed to issue 984,000 shares of common stock      to the holders of the Notes to settle such damages, assuming the      registration statement was effective by October 30, 2006.  We      recorded the estimated fair value of these shares of $1,971,987 as a      liability and nonoperating expense as of December 31, 2006.  This      obligation was adjusted to its estimated fair value of $265,680 as of      December 31, 2007.  Holders of the Notes are entitled to additional      liquidated damages for delays in the effectiveness of the registration      statement to register the warrants and conversion shares beyond October      30, 2006.   Additional liquidated damages continued to accrue through      December 31, 2007, which were settled as discussed below. On      February 23, 2006, the 10% Senior Secured Convertible Notes Agreement was      amended and restated.  In connection therewith, the aggregate      outstanding principal balance of the Notes increased by $800,000 to      $6,800,000 and additional five-year warrants for the purchase of 266,667      shares of common stock were issued.  The warrants were valued at      $130,778 and the intrinsic value of the Notes’ beneficial conversion      feature was $130,778.  The percentages and timing of premiums on      principal repayment as originally stated were not changed.  The      Company’s amortization of debt discounts was adjusted      accordingly. On      December 19, 2007, the Company executed an agreement with CAMOFI to modify      the terms of the notes payable to CAMOFI.  The agreement      specifies, among other things, that a new note payable in the amount of      $2,027,123 would be issued to CAMOFI for registration rights penalties and      accrued interest.  The new agreement requires monthly payment of      interest of 10% cash beginning April 1, 2008 and 2% increase in notes      payable.  Principal payments are $250,000 beginning August 1,      2008, with the remaining balance due November 10, 2010.  The      agreement also provided for the issuance of 561,087 shares of common stock      to CAMOFI.  The issuance of the stock has been recorded at its      estimated fair value of $156,543 at December 19, 2007, and resulted in a      beneficial conversion feature with an intrinsic value of $156,543, which      was recorded consistent with the preceding discussion.  The      agreement also extended the exercise period for the warrants for an      additional five years, and required the Company to raise additional equity      by March 31, 2008.  The Company was in violation of the covenant      regarding additional equity and certain other covenants as of April 1,      2008. On      June 9, 2008, the Company entered into an agreement with CAMOFI to defer      interest payments on the CAMOFI Notes Payable to September 1, 2008 and      increase the $2,027,123 note discussed above to $5,141,648.  The      increase in the note payable included $541,294 of accrued interest and      $1,954,231 of financing penalty fees.   The Company agreed      to pay CAMOFI all of the proceeds from the sale of the Kaiser facility,      proceeds from Harrison County Texas real estate, and monies held in escrow      for well closures at the Kaiser facility.  Agents for the sale      of property were agreed to be obtained by July 31, 2008 and contracts for      sale were agreed to be obtained by September 1,2008.  The      Company also agreed to raise $2,500,000 in additional equity by September      1, 2008. Upon a default, the holder of our      Senior Secured Convertible Notes has the right to take sole control of the      lockbox and all deposits then in the lockbox account or thereafter      deposited into the lockbox account.  CAMOFI has taken sole      control of the lockbox and all deposits in the lockbox account and being      deposited from customers into the lockbox  account. |
|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------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|   | As      of May 2008, as a result of decreased revenue and subsequent billings      during the current period, we were in an overdrawn position with respect      to the August 31, 2006 Line of Credit agreement with      CAMOFI.  Cash arriving into the lockbox will be used to pay down      the Line of Credit.  The Company engaged Glenwood Capital to      assist in the cash management of the Company. Until such time that the      borrowing base becomes sufficient to permit additional borrowing under the      Line of Credit, we will be periodically requesting additional funds from      CAMOFI to satisfy ongoing working capital requirements, that are essential      to the Company continuing as a going concern.  CAMOFI has no      obligation to provide any additional funds to the Company. POOF      Note Payable and Related Redeemable Common Stock On      August 14, 2007, the Company entered into a loan with Professional      Offshore Opportunity Fund, Ltd. (“POOF”), for $750,000.  The      financing was used to fulfill vendor and other obligations.  The      note was originally structured to require monthly installments commencing      on September 14, 2007 and on the 10th      day of each month thereafter through February 10, 2008.  The      loan bears interest at 5% per annum and is payable in cash or with shares      of Company common stock discounted at 30% from the average bid price for      the five days preceding the installment.  The Company was also      obligated to pay a monthly utilization fee of 10% of the monthly      installment.  The Company did not make the scheduled payments on      the POOF loan, and verbally agreed to monthly extensions of the amount      due. The      Company also issued 500,000 shares of common stock to POOF in connection      with this loan.  The Company has agreed to register the shares      for sale or to repurchase them at specified amounts and      times.  If the shares were not registered by January 15, 2008,      the Company was obligated to repurchase the shares for      $700,000.  If the Company does not pay the amounts due, the      Company’s obligation to repurchase the shares will bear interest at 2% per      month.  In accordance with EITF Topic D-98, since the redemption      feature is not entirely within the Company’s control, the redeemable      common stock is presented as temporary equity at December 31, 2007 and has      been recorded at its redemption value, considering that it was probable at      that date that the shares would not be registered by January 15, 2008,      which did not happen. The      $750,000 loan was initially recorded as $300,000 of notes payable (net of      debt discount) and $450,000 as redeemable common stock, based on the      estimated fair values of the note and common stock.  The      redeemable common stock has been adjusted to its expected redemption value      plus accrued interest. The      POOF note payable is secured by shares of the Company’s common stock      pledged by Ron Brewer and Richard Coody, former officers and directors of      the Company.  Each pledged 1,450,000 shares of      stock.  POOF can exercise its rights by selling the shares to      apply against the Company’s obligations to POOF.  POOF also has      the right to sell the shares directly in the absence of a      default.  The pledge is without recourse to the      Company.  The Company has agreed to pay Mr. Coody and Mr. Brewer      amounts equal to 22% of the proceeds of any of their shares of common      stock sold by POOF under the pledge.  The funds would be      retained in escrow and paid in 2009. The      Company was notified by POOF in a letter dated May 30, 2008 that the      Company was in default of its loan agreement.  Also, in a letter      dated June 20, 2008, POOF demanded the repurchase of the 500,000 shares      issued to POOF for $700,000.  POOF commenced an action in the      federal court seeking to obtain a judgment of default under the loan and      to obtain an enforceable judgment against the Company.  The      Company submitted no defenses or other pleadings in the action and was      advised by the Court that POOF is seeking a default judgment, which the      Company expects will be granted in the near future. |
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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 4.     | Loss per share. :  Loss per share      is presented in accordance with SFAS No. 128 “Earnings Per Share”.        Weighted average shares outstanding for the quarter ended June 30, 2007      were 18,773,596.  Weighted average shares outstanding for the three      and six months ended June 30, 2008 were 13,780,156 and 14,384,247,      respectively, and reflect the issuance of shares during the six months      ended June 30, 2008 to consultants and the retirement of 3,000,000 shares      returned by Mr. Ron Brewer.     No      outstanding stock obligations or warrants represent dilutive potential      common shares for the periods from January 1 through June      30  2008 and January 1 through June 30, 2007.  As of June      30, 2008 and 2007, the Company had outstanding common stock warrants to      issue  5,766,667 shares of common stock and had committed to      issue 984,000 shares of common stock to a lender (see Note      3).  Mr. Onody, our Chief Operating Officer, was issued options      to purchase 350,000 shares in June 2007 and September 2007.  On      November 13, 2007, the Board of Directors consented to the issuance of      160,000 shares of common stock to Craig McMahon, our Vice President of      Operations, 60,000 shares of common stock to Paul Koons, our Manager of      Emergency Response Services, and 80,000 shares of common stock to Greg      Gadbois, the manager of our Portland, Oregon office.  The      Company issued 1,691,250 stock options to employees, directors and      consultants in November 2007 and 1,691,900 stock options to employees,      directors and consultants during first and second quarter      2008.  For the six months ended June 30, 2008, options for      50,625 shares were forfeited.   These securities were not      included in the computation of diluted earnings per share since to do so      would have been antidilutive for the periods presented.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

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| 5. | Share-Based Compensation      The Company records share-based payments to nonemployees based on      the estimated value of those payments, generally measured at the date      performance is complete and expensed over the performance      period. The      Company records share-based payments to employees based on the estimated      value of those payments, which are expensed over the requisite service      periods.  The measurement date for share-based payments is the grant      date for awards that qualify as equity and the settlement date for awards      considered as liabilities.   Mr.      Onody assumed the position of Chief Operating Officer in June      2007.  As part of his initial four-month consulting agreement he      was provided with options to purchase up to 100,000 shares.  On      September 7, 2007, Mr. Onody was issued options to purchase 250,000      shares.  On January 28, 2008, Mr. Onody was issued options to      purchase an additional 500,000 shares. On July 10, 2008, Mr. Onody was      appointed as Interim Chief Executive Officer.  Employees,      directors and consultants were issued options to purchase 1,691,250 shares      of common stock in November 2007 and options to purchase 1,191,900 shares      of common stock in the first and second quarter 2008. These      options granted either vested immediately or one year from the date of the      grant, and all such options have ten year terms.  The exercise      price of all options granted in 2008 is $0.50 per share. The      Company has entered into agreements with various consultants during the      six months ended June 30, 2008 and issued 2,212,500 shares in connection      with those agreements.  The terms of the agreements are for      services to be provided for terms of up to one year.  The      Company has recorded the issuance of these shares as prepaid consulting      and is amortizing the amount over the term of the consulting      agreement.  At June 30, 2008, the unamortized prepaid consulting      was $267,438.  The Company also issued 168,498 shares in the      quarter ended June 30, 2008 for legal fees. We      entered into no other material consulting agreements during the six months      ending June 30, 2008. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.       | Acquisition of Pryor and      Discontinued Operations: On      February 1, 2006, the Company acquired certain fixed assets located in      Pryor, Oklahoma from Kaiser Aluminum and Chemical Company for $700,000      plus related costs of $12,070.  Properties acquired contain asbestos,      which the Company initially estimated the cost to remove to be $875,000,      such estimate being recorded as an environmental remediation liability.        The $1,587,070 fixed asset cost was allocated to the individual      assets based on their estimated fair values. The Company identified      selected assets to sell, to which it assigned a cost of $656,062Since      these assets were considered as a separate asset group to be disposed,      they were classified as a discontinued operation. The Company sold all of      these assets identified for sale by December 31, 2007. Net proceeds from      the disposal of these assets are included in the caption “loss from      discontinued operations”. The Company intends to sell this      property.                                                                                                                                                                                                   |
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|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 7.  | Related Party      Transactions.During      the six months ended June 30, 2007, the Company paid $3,000 to a related      party consultant for rent. During      the  six months ended June 30, 2007, the Company paid consulting      fees of $15,000 to a board member of the Company for registering the      Company on the Frankfurt stock exchange.  The Company incurred      expenses of $4,143 for miscellaneous goods and services provided by a      company partially owned by a director of the Company during the six months      ended June 30, 2007. In      August 2006 the Company entered into a month-to-month lease with Tulsa      Equipment Sales, Inc. for use of a 25 ton crane in connection with the      demolition and salvage of materials at our Pryor, OK facility. The cost      per month is $5,000. One of the Company’s directors is an owner of Tulsa      Equipment Sales Inc. During the sic months ended June 30, 2007 the Company      incurred expense of $15,000 under this lease. This lease was terminated in      March of 2007. During 2007, the      Company agreed to issue 20,000 shares of common stock to a former director      of the Company for consulting services rendered for a total value of      $15,750. |

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|   | In      2007, the Company entered agreements with Mr. Richard Coody, a former      director, and Mr. Ron Brewer, a former director and officer, in which Mr.      Coody and Mr. Brewer agreed to return 4,805,000 shares and 3,000,000      shares, respectively, of the Company’s stock which they owned to the      Company in exchange for indemnification against any claims that may be      brought against them in their prior roles with the Company.  Mr.      Coody’s 4,805,000 shares were returned and retired in 2007, while Mr.      Brewer’s shares were returned and canceled in February      2008.  Considering the nature of the transactions involving a      nonreciprocal transfer of nonmonetary assets to owners, the Company      determined that no income recognition was appropriate and to record the      transfers based on the book value of the indemnification given, which      resulted in no net entry apart from retirement of the stock against      paid-in capital. On      August 2, 2007, the Company entered into agreements with Mr. Richard Coody      and Mr. Ron Brewer in which they each agreed to pledge 1,450,000 shares of      stock which they own to collateralize a $750,000 loan to the Company from      POOF (see Note 3).  In addition to the pledge of the stock as      collateral, Mr. Coody and Mr. Brewer agreed to pay the Company $850,000      each in exchange for a full release from any and all future claims the      Company may have against them as a result of a dispute among the parties      with regard to management of daily operations.  Messrs. Coody      and Brewer will receive credit against their respective obligations to the      Company for any shares of theirs that are sold under the      pledge.  The Company has agreed to pay to Mr. Coody and Mr.      Brewer amounts equal to 22% of the proceeds of any of their shares sold by      POOF under the pledge.  The funds will be retained in an escrow      account and disbursed during 2009. In      November 2007, the Company issued options to purchase 450,000 shares to      consultants and options to purchase 1,241,250 shares to officers and      directors of the Company.  In January and February 2008, the      Company issued options to consultants to purchase 150,000 shares of stock      and options to purchase 1,045,000 shares to officers and      directors.  In June 2008, the Company issued options to purchase      496,900 shares to employees of theCompany. |
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| 8.  | Segment Reporting- The      Company’s operating segments are defined as components for which separate      financial information is available that is evaluated regularly by the      chief operating decision maker.  The Company’s reportable      segments consist of Waste Express and Amerex.  Amerex revenues      for the six months ended June 30, 2008 consist primarily of waste      management services similar to those performed by Waste      Express. The      accounting policies of the operating segments are the same as those      described in the summary of significant accounting      policies.  The Company manages its business segments primarily      based on earnings before income taxes.  Selected financial      information for reportable segments for the six months ended June 30, 2008      is as follows: |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                   |   | Waste Express |      |   | Amerex |   |       | Eliminations |   |   | Consolidated |   |
|----------------------------------------------------------------------------------------|--------|---------------|-----------|--------|--------|--------|------------|--------------|--------|--------|--------------|--------|
|                                                                                   |   |          |      |   |   |   |       |         |   |   |         |   |
| Revenues                                                                               |   |          | 402,731   |   |   |   | 2,378,183  |         |   |   |         |   |   | 2,780,914 |   |
| Operating      loss                                                                    |   |          | (484,751  | )      |   |   | (1,509,961 | )            |   |   |         |   |   | (1,994,712 | ) |
| Other      income                                                                      |   |          | (3,673    | )      |   |   | 181        |         |   |   |         |   |   | (3,491 | ) |
| Interest      expense, penalties and amortization of debt costs and debt      discount |   |          | (7,951    | )      |   |   | (3,017,517 | )            |   |   |         |   |   | (3,025,468 | ) |
| Loss      from continuing operations                                                   |   |          | (496,375  | )      |   |   | (4,527,296 | )            |   |   |         |   |   | (5,023,671 | ) |
| Income      (loss) from discontinued operations                                        |   |          | 0         |   |   |   | 0          |         |   |   |         |   |   | 0 |   |
| Net      loss                                                                          |   |          | (496,375  | )      |   |   | (4,527,296 | )            |   |   |         |   |   | (5,023,671 | ) |
| Segment      assets                                                                    |   |          | 1,168,871 |   |   |   | 6,255,621  |         |   |   | (636,994     | )      |   |   | 6,787,498 |   |
| Expenditures      for acquisitions, property and equipment                             |   |          | 0         |   |   |   | 12,298     |         |   |   |         |   |   |   | 12,298 |   |

|                                                                                   |   | Waste Express |      |   | Amerex |   |       | Eliminations |   |   | Consolidated |   |
|----------------------------------------------------------------------------------------|--------|---------------|-----------|--------|--------|--------|------------|--------------|--------|--------|--------------|--------|
|                                                                                   |   |          |      |   |   |   |       |         |   |   |         |   |
| Revenues                                                                               |   |          | 1,143,896 |   |   |   | 3,113,285  |         |   |   |         |   |   | 4,257,181 |   |
| Operating      income (loss)                                                           |   |          | (132,103  | )      |   |   | 122,134    |         |   |   |         |   |   | (9,968 | ) |
| Other      income                                                                      |   |          | 0         |   |   |   | 39,720     |         |   |   |         |   |   | 39,720 |   |
| Interest      expense, penalties and amortization of debt costs and debt      discount |   |          | 0         |   |   |   | (3,085,806 | )            |   |   |         |   |   | (3,085,806 | ) |
| Loss      from continuing operations                                                   |   |          | (132,103  | )      |   |   | (2,923,952 | )            |   |   |         |   |   | (3,056,054 | ) |
| Income      (loss) from discontinued operations                                        |   |          | 0         |   |   |   | (77,575    | )            |   |   |         |   |   | (77,575 | ) |
| Net      loss                                                                          |   |          | (132,103  | )      |   |   | (3,001,526 | )            |   |   |         |   |   | (3,133,629 | ) |
| Segment      assets                                                                    |   |          | 1,558,480 |   |   |   | 6,604,408  |         |   |   | (293,713     | )      |   |   | 7,869,176 |   |
| Expenditures      for acquisitions, property and equipment                             |   |          | 0         |   |   |   | 24,511     |         |   |   |         |   |   |   | 24,511 |   |

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| 9.     | Concentrations Financial instruments that potentially subject the      Company to concentrations of credit risk consist primarily of trade      receivables with a variety of customers.  The Company generally does      not require collateral related to receivables.  During the six months      ended June 30, 2008, and the six months ended June 30, 2007, the Company      had revenue from 4 and 3 customers comprising approximately 70% and 73% of      total revenues, respectively.  At June 30, 2008 and      December  31, 2007 accounts receivable from these customers      comprised approximately 52% and 61% of total accounts receivable,      respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 10.    | Commitments and      Contingencies: The      Company is a party to various legal and regulatory proceedings arising in      the ordinary course of its business, none of which, in management’s      opinion, will result in judgments which would have a material adverse      effect on the Company’s financial position.  Please refer to the      Company’s Form 10-K filing for 2007 for a more complete description of the      Company’s litigation. If      the Company is unable to enter into a satisfactory arrangement with the      Internal Revenue Service with regard to the Company’s failure to pay      payroll taxes for the period  August 17, 2007 through December      31, 2007 and some payments for the period January 1, 2008 through April      30, 2008, the Internal Revenue Service may place a lien upon all of the      assets of the Company.   The Company has received a notice      from the Internal Revenue Service dated August 4, 2008, for an intent to      levy on certain assets of Waste Express for the non-payment of payroll      taxes, penalties and interest totaling $36,773 for the quarter ended      September 30, 2007. The      imposition of a lien against the Company’s assets may cause a default      under the Company’s indebtedness, which could permit the Company’s lenders      to demand immediate repayment.  The Company does not have      sufficient funds and may not be able to obtain sufficient funds to repay      all of its current indebtedness.  If the lenders demand      immediate repayment and the Company is unable to repay the indebtedness,      the lenders may enforce their lien against the assets and acquire      ownership of the assets.  If the Internal Revenue Service      imposes a lien and then enforces the lien, it may acquire ownership of the      assets. In either case, the enforcement of a lien could have a material      adverse affect on the Company’s business and may cause it to cease      operations.The Company also has failed to pay payroll taxes due to several      states for 2006, 2007 and 2008..  The State of Oregon has issued      a demand letter dated July 18, 2008.  The letter states that      unless the past due payroll taxes, interest and penalties due in the      amount of approximately $22,000, the State of Oregon will place a lien on      the assets of the Company and commence seizure of those      assets. The      Company was notified by POOF in a letter dated May 30, 2008 that the      Company was in default of its loan agreement.  Also, in a letter      dated June 20, 2008, POOF demanded the repurchase of the 500,000 shares      issued to POOF for $700,000.  POOF commenced an action in the      federal court seeking to obtain a judgment of default under the loan and      to obtain an enforceable judgment against the Company.  The      Company submitted no defenses or other pleadings in the action and was      advised by the Court that POOF is seeking a default judgment, which the      Company expects will be granted in the near  future. |

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|                                              |   | Three MonthsEndedJune      30, 2008 |   |     | Three      MonthsEndedJune      30, 2007 |   |
|---------------------------------------------------|--------|------------------------------------------|--------|----------|------------------------------------------|--------|
| Net      Sales                                    |   |                                     | 100    | %        |                                     |   | 100 | % |
| Cost      of Sales                                |   |                                     | 94     | %        |                                     |   | 61 | % |
| Gross      Profit                                 |   |                                     | 6      | %        |                                     |   | 39 | % |
| Selling,      General, and Administrative Expense |   |                                     | 59     | %        |                                     |   | 31 | % |
| Total      Operating Expense                      |   |                                     | 201    | %        |                                     |   | 103 | % |
| Income      (Loss) from Operations                |   |                                     | (101   | )      % |                                     |   | (3 | )      % |
| Other      Income (Expense)                       |   |                                     | (225   | )      % |                                     |   | (91 | )      % |
| Loss      from Continuing Operations              |   |                                     | (326   | )      % |                                     |   | (94 | )      % |

|                                             |   | Six      Months Ended June 30, 2008 |   |     | Six      Months Ended June 30, 2007 |   |
|--------------------------------------------------|--------|-------------------------------------|--------|----------|-------------------------------------|--------|
| Net      Sales                                   |   |                                | 100    | %        |                                |   | 100 | % |
| Cost      of Sales                               |   |                                | 81     | %        |                                |   | 60 | % |
| Gross      Profit                                |   |                                | 19     | %        |                                |   | 40 | % |
| Selling,      General and Administrative Expense |   |                                | 49     | %        |                                |   | 31 | % |
| Total      Operating Expense                     |   |                                | 172    | %        |                                |   | 100 | % |
| Income      (Loss) from Operations               |   |                                | (72    | )      % |                                |   | 0 | % |
| Other      Income (Expense)                      |   |                                | (109   | )      % |                                |   | (73 | )      % |
| Loss      from Continuing Operations             |   |                                | (181   | )      % |                                |   | (72 | )      % |

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| ·   | The      Company will seek alternative financing which may include equity financing      or additional  debt. The Company is currently in discussions      with several institutions for the purpose of securing additional      funding. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Company continues to pursue additional customers and increased      revenues. |
|--------------------|----------------------------------------------------------------------------------------|

| ·   | The      Company is actively soliciting parties interested in the purchase of our      property in Pryor, OK. Proceeds from this sale, if it is concluded, will      be used to pay down the 10% Senior Secured Convertible    Notes. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Company is considering the sale of its property owned in Harrison County,      Texas. |
|--------------------|------------------------------------------------------------------------------------------------|

| ·   | The      Company continues to implement plans to further reduce operating costs as      a percentage of revenue by improved process control and greater      productivity. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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PART II. OTHER INFORMATION

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TheCompany was notified by POOF in a letter dated May 30, 2008 that the Company wasin default of it’s loan agreement.  Also, in a letter dated June 20,2008, POOF demanded the repurchase of the 500,000 shares issued to POOF for$700,000.POOF commenced an action in the federal court seeking to obtain ajudgment of default under the loan and to obtain an enforceable judgment againstthe Company.  The Company submitted no defenses or other pleadings inthe action and was advised by the Court that POOF is seeking a default judgment,which the Company expects will be granted in the near future.

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ITEM 6. Exhibits and Reports on Form 8-K

| A. | Exhibits |
|----|----------|

|             |                                                                                                                                                                                                                                                              |   |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Exhibit      No. | Document                                                                                                                                                                                                                                                          |   |
| 2.1              | Share      Exchange Agreement dated as of July 5, 2006 among Amerex Group, Inc.,      James P. Frack, AMEREX Companies, Inc., and the Stockholders of AMEREX      Companies, Inc. (incorporated by reference to Exhibit 2.1 of Form 8-K      filed July 11, 2006) |
|             |                                                                                                                                                                                                                                                              |   |
| 2.2              | Agreement      of Merger between CDX.com Colorado and CDX.com Merger Co (Oklahoma) dated      July 28, 2005 (incorporated by reference to Exhibit 2.1of Form 10-QSB for      the quarter ended September 30, 2004).                                               |
|             |                                                                                                                                                                                                                                                              |   |
| 2.3              | Stock      Purchase Agreement between United Assurance and Amerex Group, Inc. dated      August 1, 2005 (incorporated by reference to Exhibit 2.2 of  Form      10-QSB for the quarter ended September 30, 2004)                                             |
|             |                                                                                                                                                                                                                                                              |   |
| 2.4              | Agreement      and Plan of Merger between Amerex Group, Inc, and CDX.com Merger, Inc.,      and CDX.com (Oklahoma), dated July 28, 2005 (incorporated by reference to      Exhibit 2.3 of  Form 10-QSB for the quarter ended September 30,      2004)        |
|             |                                                                                                                                                                                                                                                              |   |
| 3.1              | Restated      Articles of Incorporation filed 7/27/2005 (incorporated by reference to      Exhibit 3.1 of  Form 10-QSB for the quarter ended September 30,      2004)                                                                                        |
|             |                                                                                                                                                                                                                                                              |   |
| 3.2              | Certificate      of Incorporation of Amerex Group, Inc. (incorporated by reference to      Exhibit 3.4 of Form 10-QSB for the quarter ended September 30,      2004)                                                                                              |
|             |                                                                                                                                                                                                                                                              |   |
| 3.3              | Bylaws      of Amerex Group, Inc. (incorporated by reference to Exhibit 3.6 of       Form 10-QSB for the year ended September 30,2004)                                                                                                                       |
|             |                                                                                                                                                                                                                                                              |   |
| 4.1              | 10%      Senior Convertible Note issued to CAMOFI Master LCD in the acquisition on      July 5, 2006 (incorporated by reference to Exhibit 4.1 of Amendment to      Form SB-2 filed on January 17, 2007).                                                         |
|             |                                                                                                                                                                                                                                                              |   |
| 4.2              | Warrant      issued to CAMOFI Master LCD in the acquisition on July 5, 2006      (incorporated by reference to Exhibit 4.2 of Amendment to Form 10-SB filed      on January 17, 2007).                                                                       |
|             |                                                                                                                                                                                                                                                              |   |
| 4.3              | Form      of warrant issued to former AMEREX Companies, Inc. warrant holders in the      acquisition on July 5, 2006 (incorporated by reference to Exhibit 4.3 of      Amendment to Form 10-SB filed on January 17, 2007).                                        |
|             |                                                                                                                                                                                                                                                              |   |
| 4.4              | AMEREX      Companies, Inc. 8% Secured Promissory Note, dated September 2, 2005, in      the amount of $450,000 issued to Professional Traders Fund,      LLC.(incorporated by reference to Exhibit 4.6 of Form 8-K filed July 11,      2006)                     |
|             |                                                                                                                                                                                                                                                              |   |
| 4.5              | Warrant      issued to CAMOFI Master LCD in connection with a line of credit on      November 10, 2006 (incorporated by reference to Exhibit 4.2 of Amendment      to Form 10-SB filed on January 17, 2007)..                                                |

----

| 4.6    | Non-Qualified      Stock Option Award Agreement for the benefit of      Stephen K. Onody, dated January 28, 2008                                                                                                                                                                                      |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                       |   |
| 5.1    | Opinion      of Sichenzia Ross Friedman Ference LLP (incorporated by reference to      Exhibit 5.1 of Amendment to Form 10-SB filed on January 17, 2007).                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                       |   |
| 10.1   | Securities      Purchase Agreement, dated November 21, 2005, between AMEREX Companies,      Inc. and CAMOFI Master LDC. (incorporated by reference to Exhibit 10.1 of      Amendment to Form 10-SB filed on January 17, 2007).                                                                        |
|   |                                                                                                                                                                                                                                                                                                       |   |
| 10.2   | Form      of Lock-Up Agreement dated November 21, 2005, between CAMOFI Master LCD      and each of Richard Coody, Nick Malino, Ron Brewer, Robert Roever, John      Smith, and Marwaan Karame. (incorporated by reference to Exhibit 10.2 of      Form 8-K filed on July 11, 2006)                         |
|   |                                                                                                                                                                                                                                                                                                       |   |
| 10.3   | Registration      Rights Agreement, dated November 21, 2005, between AMEREX Companies, Inc.      and CAMOFI Master LDC. (incorporated by reference to Exhibit 10.3 of Form      8-K filed on July 11, 2006)                                                                                                |
|   |                                                                                                                                                                                                                                                                                                       |   |
| 10.4   | Escrow      Agreement, dated November 21, 2005, between AMEREX Companies, Inc. and      CAMOFI Master LDC. (incorporated by reference to Exhibit 10.4 of Form 8-K      filed on July 11, 2006)                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                       |   |
| 10.5   | Subsidiary      Guarantee, dated November 21, 2005, of Waste Express to CAMOFI Master LDC.      (incorporated by reference to Exhibit 10.5 of Form 8-K filed on July 11,      2006)                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                       |   |
| 10.6   | Subsidiary      Agreement, dated November 21, 2005, between Amerex Acquisition Corp. and      CAMOFI Master LDC. (incorporated by reference to Exhibit 10.6 of Form 8-K      filed on July 11, 2006)                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                       |   |
| 10.7   | Intercreditor      Agreement, dated November 21, 2005, between CAMOFI and PTF. (incorporated      by reference to Exhibit 10.7 of Form 8-K filed on July 11,      2006)                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                       |   |
| 10.8   | Loan      Agreement, dated August 12, 2005 between DCI USA Inc. and AMEREX      Companies, Inc. (incorporated by reference to Exhibit 10.8 of Form 8-K      filed July 11, 2006)                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                       |   |
| 10.9   | Amendment,      dated June 30, 2006 to Contract for Sale and Purchase of Business Assets,      dated September 1, 2005, between Enhanced Operating Co., LLC and AMEREX      Companies, Inc. (incorporated by reference to Exhibit 10.10 of Form 8-K      filed on July 11, 2006)                           |
|   |                                                                                                                                                                                                                                                                                                       |   |
| 10.11  | Amendment,      dated November 13, 2005, to Contract for Sale and Purchase of Business      Assets, dated September 13, 2005, among NES Technology LLC, Industrial      Waste Services LLC and AMEREX Companies, Inc. (incorporated by reference      to Exhibit 10.13 of Form 8-K filed on July 11, 2006) |
|   |                                                                                                                                                                                                                                                                                                       |   |
| 10.12  | Employment      Agreement, dated October 1, 2005, between AMEREX Companies, and Richard      Coody.  (incorporated by reference to Exhibit 10.23 of Form 8-K      filed on July 11, 2006)                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                       |   |
| 10.13  | Lease      Agreement, dated December 1, 2005, between Amerex Companies, Inc. and      Capitoline Advisors, Inc. (incorporated by reference to Exhibit 10.29 of      Form 8-K filed on July 11, 2006)                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                       |   |
| 10.14  | Lease      Agreement, dated December 30, 2005, between Amerex Companies, Inc. and      CDI, Inc. (incorporated by reference to Exhibit 10.30 of Form 8-K filed on      July 11, 2006)                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                       |   |
| 10.15  | Line      of Credit with CAMOFI Master LCD. (incorporated by reference to Exhibit      10.15 of Amendment No. 1 to Form SB-2 filed on March 20,    2007)                                                                                                                                                   |

----

| 10.16  | Secured      Loan Agreement with Professional Offshore Opportunity Fund, Ltd.      (incorporated by reference to Exhibit 10.16 of Form 8-K filed August 16,      2007)                                                                                           |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                             |   |
| 10.17  | Letter      Agreement with Professional Offshore Opportunity Fund, Ltd. (incorporated      by reference to Exhibit 10.17 of Form 8-K filed August 16,      2007)                                                                                                 |
|   |                                                                                                                                                                                                                                                             |   |
| 10.18  | Pledge      Agreement between Richard Coody and Ron Brewer and Professional Offshore      Opportunity Fund, Ltd. (incorporated by reference to Exhibit 10.18 of Form      8-K filed August 16, 2007)                                                             |
|   |                                                                                                                                                                                                                                                             |   |
| 10.19  | Indemnification      Agreement with Richard Coody (incorporated by reference to Exhibit 10.19      of Form 8-K filed August 16, 2007)                                                                                                                            |
|   |                                                                                                                                                                                                                                                             |   |
| 10.20  | Agreement      with Richard Coody (incorporated by reference to Exhibit 10.20 of Form 8-K      filed August 16, 2007)                                                                                                                                            |
|   |                                                                                                                                                                                                                                                             |   |
| 10.21  | Indemnification      Agreement with Ron Brewer (incorporated by reference to Exhibit 10.21 of      Form 8-K filed August 16, 2007)                                                                                                                               |
|   |                                                                                                                                                                                                                                                             |   |
| 10.22  | Agreement      with Ron Brewer (incorporated by reference to Exhibit 10.22 of Form 8-K      filed August 16, 2007)                                                                                                                                               |
|   |                                                                                                                                                                                                                                                             |   |
| 10.23  | Conformed      Letter of Intent to purchase Perma-Fix Treatment Solutions, Inc.      (“Perma-Fix”) of Tulsa, OK from Perma-Fix Environmental Services, Inc.      (incorporated by reference to Exhibit 10.23 of Form 8-K filed August 29,      2007) |
|   |                                                                                                                                                                                                                                                             |   |
| 10.31  | Letter      Agreement between Amerex Group, Inc. and CAMOFI Master LDC dated      December 19, 2007 (incorporated by reference to Exhibit 10.31 of Form      8-K filed January 7, 2008)                                                                     |
|   |                                                                                                                                                                                                                                                             |   |
| 10.32  | Letter      Agreement, dated May 7, 2008, between the Company and Glenwood Capital      LLC, filed herewith                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                             |   |
| 10.33  | Letter      Agreement between Amerex Group, Inc. and CAMOFI Master LDC dated June 9,      2008 (incorporated by reference to Exhibit 10.1 of Form 8-K filed June 13,      2008)                                                                                  |
|   |                                                                                                                                                                                                                                                             |   |
| 21.1   | Subsidiaries      of Registrant (incorporated by reference to Exhibit 21 of Form 8-K filed      on July 11, 2006).                                                                                                                                               |
|   |                                                                                                                                                                                                                                                             |   |
| 31.1   | Chief Executive Officer -      Sarbanes-Oxley Act Section 302 Certification, filed      herewith                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                             |   |
| 31.2   | Chief Financial Officer -      Sarbanes-Oxley Act Section 302 Certification, filed      herewith                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                             |   |
| 32.1   | Chief Executive Officer -      Sarbanes-Oxley Act Section 906 Certification, filed      herewith                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                             |   |
| 32.2   | Chief Financial Officer -      Sarbanes-Oxley Act Section 906 Certification, filed      herewith                                                                                                                                                                 |

| B. | Reports on Form      8-K |
|----|--------------------------|

----

SIGNATURES

|                       |   |                    |   |                                                                                                                |
|----------------------------|--------|-------------------------|--------|---------------------------------------------------------------------------------------------------------------------|
|                       |   | AMEREX      GROUP, INC. |
|                       |   |                    |
| Date:      August 14, 2008 |   | By:                     |   | /s/      Stephen K. Onody                                                                                           |
|                       |   |                    |   | Stephen      K. OnodyPresident,      Interim Chief Executive Officer, Principal Financial Officer and      Director |
|                       |   |                    |   |                                                                                                                |
|                       |   |                    |
|                       |   |                    |   |                                                                                                                |
|                       |   |                    |   |                                                                                                                |
|                       |   |                    |   |                                                                                                                |