UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



Form 10-Q/A

(AMENDMENT NO. 1)



|x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ---------------------------------------------------------------------------------------



For the quarterly period ended March
31, 2015



OR



| ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ----------------------------------------------------------------------------------------



For the transition period from          to



Commission File Number:     0-13111



AXION INTERNATIONAL HOLDINGS, INC

(Exact name of registrant as specified
in its charter)



|Colorado                                         |  | 84-0846389                       
|------------------------------------------------ |  | ---------------------------------
|(State or other jurisdiction of incorporation or |  | (IRS Employer Identification No.)
|organization)                                    |  |                                  



4005 All American Way, Zanesville, Ohio
43701

(Address of principal executive offices)



740-452-2500

(registrant’s telephone number,
including area code)



Indicate
by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days.  Yes ̈Nox



Indicate
by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the
preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  YesxNo ̈



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



| | Large accelerated filer ̈ | Accelerated filer ̈        
| | ------------------------ | --------------------------
| | Non-accelerated filer ̈   | Smaller reporting companyx



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

Yes ̈Nox



The number of outstanding shares of the
registrant’s common stock, without par value, as of May 4, 2015 was 74,065,254.



















EXPLANATORY NOTE



Axion International Holdings, Inc.
(“Axion”, “we”, “our” or the “Company”) is filing this Amendment No. 1 to our
Form 10-Q for the three months ended March 31, 2015, which was originally filed with the Securities and Exchange Commission
(“SEC”) on May 14, 2015, to amend, restate and correct our disclosure in section (a) Evaluation of Disclosure
Controls and Procedures within Item 4. Control and Procedures to disclose whether our disclosure controls and procedures are
effective or not effective as required by Item 307 of Regulation S-K. Except for the information specifically amended
and restated in this amendment  No. 1, this Form 10-Q/A does not amend any other information set forth in the referenced
Form 10-Q, and the Company has not updated disclosures contained in the Form 10-Q to reflect any events that occurred at a
date subsequent to May 14, 2015.



Item 4. Controls and Procedures.



(a) Evaluation of disclosure controls
and procedures.



With the participation of our principal
executive officer and principal financial officer, we evaluated the effectiveness of our disclosure controls and procedures pursuant
to Rule 13a-15 under the Exchange Act. In designing and evaluating the disclosure controls and procedures, we recognize that any
controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired
control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource
constraints and that we are required to apply our judgment in evaluating the benefits of possible controls and procedures relative
to their costs.



Based on our evaluation, our principal executive officer
and principal financial officer concluded that as of the end of the period covered by this Quarterly Report on Form 10-Q, our disclosure
controls and procedures were not effective as required under Rules 13a-15(e) and 15d-15(e) under the Exchange Act as a result of
the material weaknesses in our internal control over financial reporting.



The material weaknesses, which relate to internal control over
financial reporting, that were identified are:







|(i)  | We did not maintain sufficient personnel with an appropriate level of technical accounting knowledge, experience, and training in the application of GAAP commensurate with our complexity and our financial accounting and reporting requirements. We have limited experience in the areas of financial reporting regarding complex financial instruments.  As a result, there is a reasonable possibility that material misstatements of the consolidated financial statements, including disclosures, will not be prevented or detected on a timely basis.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|(ii) | Due to our small size, we do not have a proper segregation of duties in certain areas of our financial reporting and other accounting processes and procedures. This control deficiency results in a reasonable possibility that material misstatements of the consolidated financial statements will not be prevented or detected on a timely basis.                                                                                                                                                                                                        



We are committed to improving our financial
organization, and we have adopted additional processes and procedures over financial reporting. If the issuance of any securities
is contemplated, we will consult with legal counsel and appropriate accounting resources to evaluate the financial statement impact
that the issuance of such financial instruments may have prior to issuance. Additional measures may be implemented as we evaluate
the effectiveness of these efforts.  We cannot assure you that these remediation efforts will be successful or that our
internal control over financial reporting will be effective in accomplishing the control objectives.



Prior to 2013, due to our limited number
of accounting and administrative personnel, we did not have proper segregation of duties in certain areas of our financial reporting
and other accounting processes and procedures. This control deficiency resulted in a reasonable possibility that material misstatements
of the consolidated financial statements would not be prevented or detected on a timely basis. Based on our evaluation at the time,
we concluded this was a material weakness. The relocation of our accounting and administrative functions to our recently acquired
facility in Ohio, has allowed for the proper segregation of duties and provided more checks and balances within the department,
we have concluded this material weakness no longer exists. The additional personnel will also allow for the cross training needed
to support us if personnel turn-over occurs within the department. We believe this will greatly decrease any control and procedure
issues we may encounter in the future.



In addition, we will continue to evaluate
the need and costs to increase our personnel resources and technical accounting expertise within the accounting function to resolve
non-routine or complex accounting matters.  As our operations are relatively small and we continue to have net cash losses
each quarter, we do not anticipate being able to hire additional internal personnel until such time as our operations are profitable
on a cash basis or until our operations are large enough to justify the hiring of additional accounting personnel. As necessary,
we may engage consultants in the future in order to ensure proper accounting for our consolidated financial statements.



We believe that engaging additional knowledgeable
personnel with specific technical accounting expertise will remedy the following material weakness: insufficient personnel with
an appropriate level of technical accounting knowledge, experience, and training in the application of GAAP commensurate with our
complexity and our financial accounting and reporting requirements.



We believe that, when the circumstances
allow, the hiring of additional personnel who have the technical expertise and knowledge with the non-routine or technical accounting
issues we have encountered in the past will result in both proper recording of these transactions and a much more knowledgeable
finance department as a whole. Due to the fact that we have a limited internal accounting staff, additional personnel will also
allow for the proper segregation of duties and provide more checks and balances within the department. Additional personnel will
also provide the cross training needed to support us if personnel turn-over occurs within the department. We believe this will
greatly decrease any control and procedure issues we may encounter in the future.



(b) Changes in internal control over
financial reporting.



We regularly review our system of internal control over
financial reporting and make changes to our processes and systems to improve controls and increase efficiency, while ensuring that
we maintain an effective internal control environment. Changes may include such activities as implementing new, more efficient
systems, consolidating activities, and migrating processes. There were no changes in our internal control over financial reporting
that occurred during the three months ended March 31, 2015 that have materially affected, or are reasonably likely to materially
affect, our internal control over financial reporting.

















Item
6. Exhibits.



|Exhibits: |                                                                                 
|--------- | --------------------------------------------------------------------------------
|          |                                                                                 
|31.1      | Section 302 Certification of Chief Executive Officer                            
|          |                                                                                 
|31.2      | Section 302 Certification of Principal Financial Officer                        
|          |                                                                                 
|32.1      | Section 906 Certification of Chief Executive Officer and Chief Financial Officer
|          |                                                                                 



















SIGNATURES



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



|                        |  | Axion International Holdings, Inc.
|----------------------- |  | ----------------------------------
|                        |  |                                   
|Date: November 24, 2015 |  | /s/ Claude Brown                  
|                        |  | Claude Brown                      
|                        |  | Chief Executive Officer           
|                        |  |                                   
|Date: November 24, 2015 |  | /s/ Donald Fallon                 
|                        |  | Donald Fallon                     
|                        |  | Chief Financial Officer