----

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| x      | Quarterly      Report under Section 13 or 15(d) of the Securities Exchange Act of      1934 |
|--------|--------------------------------------------------------------------------------------------------|
|   |                                                                                             |
|   | For      the quarter ended September 30,2008                                                |

|  ̈ | Transition      Report under Section 13 or 15(d) of the Securities Exchange Act of      1934                                                                                                        |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                     |
|   | For      the transition period from                   to               |

----

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

----

| Class                              |   | Outstanding      at  November 5, 2008 |
|------------------------------------|--------|-------------------------------------------------|
| Common      Stock, $.001 par value |   | 16,794,689                                      |

----

----

|                                                                                                                                                    | PageNumber |
|---------------------------------------------------------------------------------------------------------------------------------------------------------|------------|
| PART I. FINANCIAL INFORMATION                                                                                                                           |       |
|                                                                                                                                                    |       |
| Item 1.      Financial Statements                                                                                                                  |       |
|                                                                                                                                                    |       |
| Condensed Consolidated Balance      Sheet at September 30, 2008 and December 31, 2007      (unaudited)                                                  | 3          |
|                                                                                                                                                    |       |
| Condensed Consolidated Statements      of Operations for the three months and nine months ended September 30,      2008 and  2007 (unaudited) | 4          |
|                                                                                                                                                    |       |
| Condensed Consolidated Statements      of Cash Flows for the nine months ended September 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                                                                                                                              |       |
|                                                                                                                                                    |       |
| 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      Security Holders                                                                                     | None       |
|                                                                                                                                                    |       |
| Item      5. Other Information                                                                                                                     |  None |
|                                                                                                                                                    |       |
| Item 6. Exhibits and Reports on Form      8-K                                                                                                      | 22         |
|                                                                                                                                                    |       |
| SIGNATURE PAGE                                                                                                                                          | 25         |

----

AMEREX GROUP, INC. AND SUBSIDIARIES

|                                                                                                                                                                           |   | September      30, 2008 |        |   | December      31, 2007 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|-------------|--------|------------------------|--------|
| ASSETS                                                                                                                                                                         |   |                    |        |   |                   |   |
| CURRENT      ASSETS                                                                                                                                                            |   |                    |        |   |                   |   |
| Cash      and cash equivalents                                                                                                                                                 |   | $                       | 86,321      |   |                   | $      | 19,588 |   |
| Accounts      receivable, trade, net of an allowance for doubtful accounts of $70,000 at      September 30, 2008 and      $15,000 at      December 31, 2007                    |   |                    | 2,083,784   |   |                   |   | 2,262,396 |   |
| Other      current assets                                                                                                                                                      |   |                    | 709,864     |   |                   |   | 506,197 |   |
|                                                                                                                                                                           |   |                    |        |   |                   |   |   |   |
|             TOTAL      CURRENT ASSETS                                                                              |   |                    | 2,879,969   |   |                   |   | 2,788,181 |   |
|                                                                                                                                                                           |   |                    |        |   |                   |   |   |   |
| PROPERTY,      PLANT AND EQUIPMENT, at cost                                                                                                                                    |   |                    | 3,949,004   |   |                   |   | 3,963,844 |   |
| Less      accumulated depreciation and amortization                                                                                                                            |   |                    | (863,088    | )      |                   |   | (629,382 | ) |
|             NET      PROPERTY, PLANT AND EQUIPMENT                                                                 |   |                    | 3,085,916   |   |                   |   | 3,334,462 |   |
|                                                                                                                                                                           |   |                    |        |   |                   |   |   |   |
| Other      assets                                                                                                                                                              |   |                    | 554,472     |   |                   |   | 686,595 |   |
|                                                                                                                                                                           |   |                    |        |   |                   |   |   |   |
|             TOTAL      ASSETS                                                                                      |   | $                       | 6,520,357   |   |                   | $      | 6,809,238 |   |
|                                                                                                                                                                           |   |                    |        |   |                   |   |   |   |
| LIABILITIES      AND STOCKHOLDERS’ EQUITY                                                                                                                                |   |                    |        |   |                   |   |   |   |
| CURRENT      LIABILITIES                                                                                                                                                       |   |                    |        |   |                   |   |   |   |
| Accounts      payable                                                                                                                                                          |   | $                       | 2,014,535   |   |                   | $      | 2,476,282 |   |
| Accrued      expenses                                                                                                                                                          |   |                    | 1,507,507   |   |                   |   | 1,089,133 |   |
| Current      portion of long term debt                                                                                                                                         |   |                    | 15,247,188  |   |                   |   | 2,230,000 |   |
| Accrued      acquisition liability                                                                                                                                             |   |                    | 272,950     |   |                   |   | 265,000 |   |
| Obligations      to issue equity instruments                                                                                                                                   |   |                    | 13,284      |   |                   |   | 265,680 |   |
|            TOTAL      CURRENT LIABILITIES                                                                               |   |                    | 19,055,464  |   |                   |   | 6,326,095 |   |
| Long      term debt, net of debt discount                                                                                                                                      |   |                    | 0           |   |                   |   | 7,471,592 |   |
|                                                                                                                                                                           |   |                    |        |   |                   |   |   |   |
|            TOTAL      LIABILITIES                                                                                       |   |                    | 19,055,464  |   |                   |   | 13,797,687 |   |
| Redeemable      common stock, 500,000 shares                                                                                                                                   |   |                    | 819,000     |   |                   |   | 700,000 |   |
| COMMITMENTS &      CONTINGENCIES                                                                                                                                      |   |                    |        |   |                   |   |   |   |
|                                                                                                                                                                           |   |                    |        |   |                   |   |   |   |
| STOCKHOLDERS’      EQUITY (DEFICIT)                                                                                                                                      |   |                    |        |   |                   |   |   |   |
| Common      stock - $.001 Par Value, 100,000,000 shares authorized                                                                                                             |   |                    |        |   |                   |   |   |   |
| 15,710,689  and      15,709,683 shares issued and outstanding at September 30, 2008 and      December 31, 2007, respectively,      including redeemable common stock |   |                    | 15,211      |   |                   |   | 15,210 |   |
| Additional      paid-in capital                                                                                                                                                |   |                    | 6,377,192   |   |                   |   | 5,532,827 |   |
| Accumulated      deficit                                                                                                                                                       |   |                    | (19,746,510 | )      |                   |   | (13,236,486 | ) |
|            TOTAL      STOCKHOLDERS’ EQUITY (DEFICIT)                                                              |   |                    | (13,354,107 | )      |                   |   | (7,688,449 | ) |
|            TOTAL      LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)                                              |   | $                       | 6,520,357   |   |                   | $      | 6,809,238 |   |

----

|                                                          |   | Three Months Ended September      30, |       |   | Nine Months Ended September    30, |   |
|---------------------------------------------------------------|--------|---------------------------------------|------------|--------|------------------------------------|--------|
|                                                          |   | 2008                                  |       |   | 2007                               |   |   | 2008 |   |   | 2007 |   |
|                                                          |   |                                  |       |   |                               |   |   |   |   |   |   |   |
| Revenue                                                       |   | $                                     | 1,470,085  |   |                               | $      | 2,226,849 |   |   | $ | 4,250,999 |   |   | $ | 6,483,843 |   |
| Operating      Expenses:                                      |   |                                  |       |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Cost      of services provided                                |   |                                  | 1,118,449  |   |                               |   | 1,260,379 |   |   |   | 3,358,237 |   |   |   | 3,830,631 |   |
| Non      cash compensation                                    |   |                                  | 103,929    |   |                               |   | 503,750 |   |   |   | 747,518 |   |   |   | 603,750 |   |
| Selling,      general and administrative                      |   |                                  | 657,694    |   |                               |   | 582,999 |   |   |   | 2,020,630 |   |   |   | 1,784,067 |   |
| Professional      fees                                        |   |                                  | 223,806    |   |                               |   | 291,344 |   |   |   | 575,475 |   |   |   | 515,685 |   |
| Depreciation                                                  |   |                                  | 76,413     |   |                               |   | 94,703 |   |   |   | 235,976 |   |   |   | 248,110 |   |
| Amortization                                                  |   |                                  | 10,971     |   |                               |   | 9,041 |   |   |   | 29,053 |   |   |   | 27,123 |   |
|                                                          |   |                                  |       |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Total      Operating Expenses                                 |   |                                  | 2,191,262  |   |                               |   | 2,742,216 |   |   |   | 6,966,889 |   |   |   | 7,009,366 |   |
|                                                          |   |                                  |       |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Operating      Income (Loss)                                  |   |                                  | (721,177   | )      |                               |   | (515,367 | ) |   |   | (2,715,890 | ) |   |   | (525,523 | ) |
|                                                          |   |                                  |       |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Other      Income (Expense):                                  |   |                                  |       |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Interest      expense                                         |   |                                  | (492,034   | )      |                               |   | (290,458 | ) |   |   | (1,370,386 | ) |   |   | (698,280 | ) |
| Amortization      of debt discount                            |   |                                  | (129,361   | )      |                               |   | (712,080 | ) |   |   | (387,746 | ) |   |   | (1,645,008 | ) |
| Amortization      of capitalized financing fees               |   |                                  | (283,534   | )      |                               |   | (233,559 | ) |   |   | (425,301 | ) |   |   | (641,702 | ) |
| Financing      penalty fees                                   |   |                                  | 0          |   |                               |   | (312,800 | ) |   |   | (1,954,231 | ) |   |   | (911,200 | ) |
| Remeasurement      of obligations to issue equity instruments |   |                                  | 115,128    |   |                               |   | (491,501 | ) |   |   | 252,396 |   |   |   | (1,230,014 | ) |
| Other      income                                             |   |                                  | 24,625     |   |                               |   | 7,655 |   |   |   | 91,134 |   |   |   | 47,375 |   |
|                                                          |   |                                  |       |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Loss      From Continuing Operations                          |   |                                  | (1,486,353 | )      |                               |   | (2,548,110 | ) |   |   | (6,510,024 | ) |   |   | (5,604,352 | ) |
|                                                          |   |                                  |       |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Loss      From Discontinued Operations                        |   |                                  | 0          |   |                               |   | (126,118 | ) |   |   | 0 |   |   |   | (203,693 | ) |
|                                                          |   |                                  |       |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Net      Loss                                                 |   | $                                     | (1,486,353 | )      |                               | $      | (2,674,228 | ) |   | $ | (6,510,024 | ) |   | $ | (5,808,045 | ) |
|                                                          |   |                                  |       |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| LOSS      PER SHARE                                           |   |                                  |       |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Basic      and Diluted                                        |   | $                                     | (0.10      | )      |                               | $      | (0.17 | ) |   | $ | (0.45 | ) |   | $ | (0.33 | ) |
|                                                          |   |                                  |       |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      average number of common shares outstanding:    |   |                                  |       |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Basic      and Diluted                                        |   |                                  | 15,012,663 |   |                               |   | 15,948,216 |   |   |   | 14,595,248 |   |   |   | 17,518,156 |   |

----

|                                                                               |    | Nine      Months Ended September 30, |        |
|------------------------------------------------------------------------------------|--------------|--------------------------------------|-------------|
|                                                                               |    | 2008                                 |        |   | 2007 |   |
| Cash      Flows From Operating Activities                                          |    |                                 |        |   |   |   |   |   |
| Net      Loss                                                                      |         | $                                    | (6,510,024) |   |   | $ | (5,808,045) |   |
| Adjustments      to reconcile net loss to net cash used in operating    activities |    |                                 |        |   |   |   |   |   |
| Loss      on discontinued operations                                               |         |                                 | 0           |   |   |   | 203,693 |   |
| Depreciation      and amortization                                                 |    |                                 | 265,029     |   |   |   | 275,233 |   |
| Amortization      of debt discount & financing fees                            |    |                                 | 813,047     |   |   |   | 2,286,710 |   |
| Gain      on sale of assets                                                        |         |                                 | (7,689)     |   |   |   | (17,423) |   |
| Financing      penalty fee                                                         |         |                                 | 1,954,231   |   |   |   | 0 |   |
| Interest      expense added to notes payable                                       |         |                                 | 822,489     |   |   |   | 0 |   |
| Non      cash compensation                                                         |         |                                 | 747,518     |   |   |   | 603,750 |   |
| Changes      in:                                                                   |    |                                 |        |   |   |   |   |   |
| Accounts      receivable                                                           |    |                                 | 178,612     |   |   |   | 114,023 |   |
| Other      current assets                                                          |         |                                 | (106,819)   |   |   |   | 343,906 |   |
| Other      assets                                                                  |    |                                 | 105,000     |   |   |   | 2,500 |   |
| Accounts      payable                                                              |    |                                 | (461,747)   |   |   |   | 4,395 |   |
| Other      current liabilities                                                     |    |                                 | 292,928     |   |   |   | 365,173 |   |
|                                                                               |    |                                 |        |   |   |   |   |   |
| Net      cash used in operating activities                                         |    |                                 | (1,907,425) |   |   |   | (1,626,085) |   |
|                                                                               |         |                                 |        |   |   |   |   |   |
| Cash      flows from Investing Activities                                          |         |                                 |        |   |   |   |   |   |
| Acquisition      of property, plant and equipment                                  |    |                                 | (13,160)    |   |   |   | (36,130) |   |
| Proceeds      from sales of assets                                                 |         |                                 | 31,489      |   |   |   | 113,700 |   |
| Proceeds      from release of restricted cash                                      |         |                                 | 0           |   |   |   | 812,666 |   |
| Purchase      of investment                                                        |         |                                 | 0           |   |   |   | (8,661) |   |
| Net      cash used by investing activities – continuing operations           |         |                                 | 18,329      |   |   |   | 881,575 |   |
| Net      cash used in investing activities – discontinuedoperations          |         |                                 | 0           |   |   |   | (56,785) |   |
|                                                                               |    |                                 |        |   |   |   |   |   |
| Net      cash provided by investing activities                                     |    |                                 | 18,329      |   |   |   | 824,790 |   |
|                                                                               |    |                                 |        |   |   |   |   |   |
| Cash      flows from Financing Activities                                          |    |                                 |        |   |   |   |   |   |
| Debt      issue costs                                                              |         |                                 | 0           |   |   |   | (95,000) |   |
| Proceeds      from debt and equity issuances                                       |    |                                 | 1,955,829   |   |   |   | 1,045,451 |   |
| Repayment      of Debt                                                             |    |                                 | 0           |   |   |   | (115,600) |   |
|                                                                               |    |                                 |        |   |   |   |   |   |
| Net      cash provided by financing activities                                     |    |                                 | 1,955,829   |   |   |   | 834,851 |   |
|                                                                               |    |                                 |        |   |   |   |   |   |
| Net      increase in cash and cash equivalents                                     |    |                                 | 66,733      |   |   |   | 33,556 |   |
|                                                                               |         |                                 |
| Cash      and cash equivalents at beginning of period                              |    |                                 | 19,588      |   |   |   | 60,267 |   |
|                                                                               |    |                                 |        |   |   |   |   |   |
| Cash      and cash equivalents at end of period                                    |    | $                                    | 86,321      |   |   | $ | 93,823 |   |
|                                                                               |    |                                 |        |   |   |   |   |   |
| Supplemental      disclosures - cash paid for:                                     |    |                                 |        |   |   |   |   |   |
| Interest                                                                           |    | $                                    | 990,995     |   |   | $ | 698,280 |   |
| Income      taxes                                                                  |    | $                                    | 0           |   |   | $ | —   |   |

----

AMEREX GROUP, INC. AND SUBSIDIARIES

| 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 September 30, 2008 and the results of its      (i) operations for the three and nine months ended September 30, 2008      and 2007 and (ii) cash flows for the nine months ended September 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 nine months ended September 30, 2008 of $6,510,024 and      further losses are anticipated.  As of September 30, 2008, the      Company had a working capital deficiency of $16,175,495 and stockholders’      deficit of $13,354,107.   Furthermore, the Company has      experienced cash flow difficulties, currently owes the Internal Revenue      Service and certain state and local revenue authorities for past due      payroll taxes and property 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 extended the line of credit to      September 1, 2008 and increased the maximum borrowing amount to      $1,925,301.  The Company  subsequently entered into an      agreement to extend the maturity date of the line of credit to January 1,      2009, subject to acceleration in the event of any new    default. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.  | Other      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.       The Company 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. |
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|   | On      June 9, 2008, the Company entered into an agreement with CAMOFI to defer      principal and 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. In      September 2008, the Company entered into agreements with CAMOFI to defer      the principal and interest payments to January 1, 2009, extended the date      to retain agents for the sale of the Company’s real property to September      1, 2008 and obtain a contract for sale by January 1, 2009, extended the      date for sale of equity of at least $2,500,000 to January 1, 2009, require      monthly EBITDA (earnings before income tax, depreciation and amortization)      of at least $400,000 and require annual EBITDA of at least $2,500,000 for      2008 and 2009.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. As      a result of decreased revenue and subsequent billings, we are in an      overdrawn position with respect to the Line of Credit agreement with      CAMOFI.  Cash arriving into the lockbox was to  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 bore interest at 5% per annum and was 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 did not pay the amounts due, the      Company’s obligation to repurchase the shares bore 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 in2009. |
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|   | 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.  On August 26, 2008, POOF obtained      a default judgment against the Company in the amount of $1,577,231 for the      note payable and redeemable common stock.  Interest will accrue      on the judgment amount at the rate of 20% per annum.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
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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 September 30,      2007 were 15,948,216.  Weighted average shares outstanding for the      three and nine months ended September 30, 2008 were 15,012,663 and      14,595,248, respectively, and reflect the issuance of shares during the      nine months ended September 30, 2008 to consultants and the retirement of      3,000,000 shares returned by Mr. Ron Brewer.          No      outstanding stock obligations or warrants represent potentially dilutive      common shares for the periods from January 1 through September 30, 2008      and January 1 through September 30, 2007.  As of September 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      Interim Chief Executive 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 the      first and second quarter 2008.  During the nine months ended      September 30, 2008, options for 311,875 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.                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 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 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      nine months ended September 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 September 30, 2008, the unamortized      prepaid consulting was $66,848.  The Company also issued 375,008      shares in the quarter ended September 30, 2008 for legalfees. The      Company entered into no other material consulting agreements during the      nine months ending September 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 contained 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 $656,062.  Since 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 “loss from discontinued operations”. The Company      intends to sell thisproperty.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |

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| 7.       | Related Party Transactions:      During      the nine months ended September 30, 2007, the Company recorded $340,000 in      consulting fees plus expenses as debt financing costs paid to a consulting      company. During the nine months ended September 30, 2007, the Company paid      $3,000 to a related party consultant for rent. During      the nine months ended September 30, 2007, the Company paid consulting fees      of $15,000 to a board member of the Company.  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 nine      months ended September 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 was $5,000. One of the Company’s former directors owned Tulsa      Equipment Sales Inc. During the nine months ended September 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. In      2007, the Company entered into 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 owned 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 each agreed to pay the Company      $850,000 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, if any, 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 the Company.  |
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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. In the      Company's previous annual and interim consolidated financial statements,      Waste Express, Inc. and Amerex were presented as operating segments. After      further analysis by the Company, it was determined that Waste Express and      Amerex are no longer separate reportable segments and that the      consolidated financial statements are the ones evaluated by the chief      operating decision maker.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 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 nine months ended September 30, 2008, and the nine months ended      September 30, 2007, the Company had revenue from 3 customers comprising      approximately 61% and 69% of total revenues, respectively.  At      September 30, 2008 and December 31, 2007 accounts receivable from these      customers comprised approximately 49% 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. On      September 2, 2008, a default judgment was granted to Clean Harbors      Environmental Services, Inc. against the Company in the amount of      $119,393.75, plus interest and court costs for nonpayment of certain      invoices. 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, of an intent to levy on      certain assets for the non-payment of payroll taxes, penalties and      interest totaling $440,698 for certain quarters in 2007 and      2008. 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 Missouri has placed a lien on the Company’s assets for unpaid      payroll taxes, penalties and interest of $42,381. The      State of Oregon has issued a warrant (court judgment) 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 are      paid, the State of Oregon will place a lien on the assets of the Company      and commence seizure of those assets. Amerex      is in negotiations with the Oklahoma Tax Commission for a proposed Agreed      Order which will stay the immediate injunction against Amerex, and sets up      a payment plan for unpaid payroll taxes.  If Amerex agrees to      the Order but fails to comply with the terms, Amerex will be enjoined from      further operations in the State of Oklahoma. Waste      Express, Inc. has been administratively dissolved by the State of Missouri      for not filing an annual required form.  This may affect the      Company’s ability to do business in the State of Missouri and to renew      permits in the State of Missouri.  The Company is working to      resolve this matter. 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.  On August 26, 2008, POOF obtained      a default judgment against the Company in the amount of $1,577,231 for the      note payable and redeemable common stock.  Interest will accrue      on the judgment amount at the rate of 20% per annum. On      November 11, 2008, the Board of Directors received a notice from CAMOFI,      advising the Board of Directors that, “should the Company fail to make the      $28,731.47 payment on or before Friday November 14, 2008 (together with      any and all appropriate filings), and all applicable subsequent payments,”      to the State of Oklahoma to obtain amnesty for the payment of taxes due to      the State “as well as any other Federal and state taxes which may come due      CAMOFI Master LDC (“CAMOFI”) shall take any and all action it deems      necessary or appropriate to hold each” member of the Board of Directors      “personally liable for such failure.”  The notice reiterates      that “CAMOFI has not waived any specified Event of Default (as such terms      are defined in any transactiondocument).” |
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|                                              |   | Three MonthsEndedSeptember      30, 2008 |   |     | Three      MonthsEndedSeptember      30, 2007 |   |
|---------------------------------------------------|--------|-----------------------------------------------|--------|----------|-----------------------------------------------|--------|
| Net      Sales                                    |   |                                          | 100    | %        |                                          |   | 100 | % |
| Cost      of Sales                                |   |                                          | 76     | %        |                                          |   | 57 | % |
| Gross      Profit                                 |   |                                          | 24     | %        |                                          |   | 43 | % |
| Selling,      General, and Administrative Expense |   |                                          | 73     | %        |                                          |   | 66 | % |
| Total      Operating Expense                      |   |                                          | 149    | %        |                                          |   | 123 | % |
| Income      (Loss) from Operations                |   |                                          | (49    | )      % |                                          |   | (23 | )      % |
| Other      Income (Expense)                       |   |                                          | (52    | )      % |                                          |   | (91 | )      % |
| Loss      from Continuing Operations              |   |                                          | (101   | )      % |                                          |   | (114 | )      % |

|                                             |   | Nine      Months Ended September 30, 2008 |   |     | Nine      Months Ended September 30, 2007 |   |
|--------------------------------------------------|--------|-------------------------------------------|--------|----------|-------------------------------------------|--------|
| Net      Sales                                   |   |                                      | 100    | %        |                                      |   | 100 | % |
| Cost      of Sales                               |   |                                      | 79     | %        |                                      |   | 59 | % |
| Gross      Profit                                |   |                                      | 21     | %        |                                      |   | 41 | % |
| Selling,      General and Administrative Expense |   |                                      | 85     | %        |                                      |   | 49 | % |
| Total      Operating Expense                     |   |                                      | 164    | %        |                                      |   | 108 | % |
| Income      (Loss) from Operations               |   |                                      | (64    | )      % |                                      |   | (8 | )      % |
| Other      Income (Expense)                      |   |                                      | (89    | )      % |                                      |   | (78 | )      % |
| Loss      from Continuing Operations             |   |                                      | (153   | )      % |                                      |   | (86 | )      % |

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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. |
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| · | 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. |
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| · | 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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ITEM 3. Quantitative and Qualitative Disclosures AboutMarket Risk

PART II. OTHER INFORMATION

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ITEM 2. Changes in Securities

None.

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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)        |
|             |                                                                                                                                                                                                                                                              |
| 2.5              | Default      Judgment entered on August 26, 2008, Professional Offshore Opportunity      Fund, Ltd. (“POOF”), incorporated by reference to Exhibit 2.1 of Form 8-K      filed on September 10, 2008                                                   |
|             |                                                                                                                                                                                                                                                              |
| 2.6              | Restraining      Notice dated August 27, 2008 in favor of POOF, incorporated by reference      to Exhibit 8.1 of Form 8-K, filed on September 10,2008.                                                                                                            |
|             |                                                                                                                                                                                                                                                              |
| 2.7              | Judgment      by Default Upon Assessment of Damages, for the benefit of Clean Harbors      Environmental Services Inc., incorporated by reference to Exhibit 8.1 of      Form 8-K, filed on September 10, 2008.                                                   |
|             |                                                                                                                                                                                                                                                              |
| 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 4.1of 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 and      Principal Financial and Accounting Officer - Sarbanes-Oxley Act Section      302 Certification,      filed herewith                                                                                                             |
|   |                                                                                                                                                                                                                                                             |
| 32.1   | Chief Executive Officer and      Principal Financial and Accounting Officer - Sarbanes-Oxley Act Section      906 Certification,      filed herewith                                                                                                             |
|   |                                                                                                                                                                                                                                                             |

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

----

SIGNATURES

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