UNITED
      STATES


SECURITIES
      AND EXCHANGE COMMISSION


WASHINGTON,
      D.C.


______________________________________





FORM
      10-Q




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




For
      the
      quarterly period ended September 30, 2008




OR




o
      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 000-30563




DELTA
      MUTUAL, INC.


(Exact
      name of registrant as specified in its charter)




DELAWARE
            
            14-1818394(State
                or other jurisdiction of
            
            (I.R.S.
                Employerincorporation
                or organization)
            
            Identification
                No.)111
                North Branch Street, Sellersville, PA
            
            18960(Address
                of Principal Executive Offices)
            
            (Zip
                Code)





(215)
      258-2800





(Registrant’s
      Telephone Number, Including Area Code)







(Former
      Name, Former Address and Former Fiscal Year, if changed since last
      report)




Indicate
      by check mark whether the 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 x NO o




Indicate
      by check mark whether the registrant is a large accelerated filer, an
      accelerated filer, or a smaller reporting company. (Check One):





Large
                accelerated filer
            o
            Accelerated
                filer oNon-accelerated
                filer
            o
            Smaller
                reporting company x


(Do
      not
      check if a smaller reporting company)




Indicate
      by check mark whether the registrant is a shell company (as defined in Rule
      12b-2 of the Exchange Act). o Yes
x No




The
      number of shares outstanding the issuer's common stock, par value $.0001 per
      share, was 221,849,158 as of November 14, 2008.









DELTA
      MUTUAL, INC.




INDEX




PagePart
                I. Financial Information
            1Item
                1. Financial Statements
            1Consolidated
                Balance Sheet as of September 30, 2008 and as of December 31, 2007
                (unaudited)
            2Consolidated
                Statements of Operations for the Nine and Three Months Ended
                September 30, 2008 and 2007 (unaudited)
            3Consolidated
                Statements of Stockholders’ Equity (unaudited)
            4-5Consolidated
                Statements of Cash Flows for the Nine Months Ended September 30,
                2008 and
                2007 (unaudited)
            6-7Notes
                to Unaudited Consolidated Financial Statements
            8Item
                2. Management's Discussion and Analysis of Financial Condition and
                Results
                of Operations
            24Item
                3. Quantitative and Qualitative Disclosures About Market
                Risk
            27Item
                4T.Controls and Procedures.
            28Part
                II. Other Information
            28Item
                1A. Risk Factors.
            28Item
                5. Other Information.
            29Item
                6. Exhibits.
            29Signatures
            30









PART
        I.
        FINANCIAL INFORMATION
  Item
        1.
        Financial Statements
  Certain
        information and footnote disclosures required under accounting
        principles generally accepted in the United States of America have been
        condensed or omitted from the following consolidated financial statements pursuant
        to the rules and regulations of the Securities and Exchange Commission. It
        is
        suggested that the following consolidated financial statements be read in conjunction
        with the year-end consolidated financial statements and notes thereto
        included in the Company's Annual Report on Form 10-KSB for the year ended
        December 31, 2007.
  The
        results of operations for the three and nine months ended September 30, 2008 and
        2007
        are not necessarily indicative of the results for the entire fiscal year
        or for any
        other
        period.




1




**DELTA
        MUTUAL, INC. AND SUBSIDIARIES**
 **CONSOLIDATED
        BALANCE SHEET**
 **(UNAUDITED)**
 
 September 30,
              
              December 31,2008
              
              2007ASSETSCurrent
                  Assets:Cash
              
              $
              706,082
              
              $
              -Investments
              
              
              1,720,235
              
              
              5,879,020Total
                  Current Assets
              
              
              2,426,317
              
              
              5,879,020Property
                  and equipment - net
              
              
              208,194
              
              
              -Investments
              
              
              -
              
              
              1,130,000Other
                  assets
              
              
              650
              
              
              -TOTAL
                  ASSETS
              
              $
              2,635,161
              
              $
              7,009,020LIABILITIES
                  AND STOCKHOLDERS' EQUITYCurrent
                  Liabilities:Accounts
                  payable
              
              $
              147,978
              
              $
              239,552Accrued
                  expenses
              
              
              1,287,461
              
              
              -Convertible
                  debt
              
              
              253,740
              
              
              -Notes
                  payable
              
              
              400,518
              
              
              -Total
                  current liabilities
              
              
              2,089,697
              
              
              239,552Long
                  Term LiabilitiesConcessions
              
              
              -
              
              
              2,300,000TOTAL
                  LIABILITIES
              
              
              2,089,697
              
              
              2,539,552Minority
                  interest in consolidated subsidiaries
              
              
              226,528
              
              
              -Stockholders'
                  Equity:Common
                  stock $0.0001 par value - authorized 250,000,000 shares; 221,849,158
                  and
                  130,000,000 shares issued and outstanding at September 30, 2008
                  and
                  December 31, 2007 respectively
              
              
              22,185
              
              
              13,000Additional
                  paid-in-capital
              
              
              12,932,853
              
              
              2,587,000Retained
                  earnings (deficit)
              
              
              (12,636,102
              )
              
              1,869,468Total
                  Stockholders' Equity
              
              
              318,936
              
              
              4,469,468TOTAL
                  LIABILITIES ANDSTOCKHOLDERS'
                  EQUITY
              
              $
              2,635,161
              
              $
              7,009,020
 
 See
        Notes
        to Unaudited Consolidated Financial Statements
  2
 
 **DELTA
        MUTUAL, INC. AND SUBSIDIARIES**
 **CONSOLIDATED
        STATEMENTS OF OPERATIONS**
 **(UNAUDITED)**
 
 Nine Months Ended September 30,
              
              Three Months Ended September 30,2008
              
              2007
              
              2008
              
              2007Investment
                  results
              
              $
              (2,051,672
              )
              $
              (313,859
              )
              $
              1,339
              
              $
              653,186Operating
                  income
              
              
              22,008
              
              
              -
              
              
              22,008
              
              
              -Revenue
              
              
              (2,029,664
              )
              
              (313,859
              )
              
              23,347
              
              
              653,186General
                  and administrative expenses
              
              
              1,153,228
              
              
              -
              
              
              155,096
              
              
              (399
              )Impairment
                  of fixed asset
              
              
              138,127
              
              
              -
              
              
              138,127
              
              
              -Loss
                  on intellectual property
              
              
              122,742
              
              
              -
              
              
              -
              
              
              -Valuation
                  results
              
              
              22
              
              
              (4,263
              )
              
              -
              
              
              (640
              )1,414,119
              
              
              (4,263
              )
              
              293,223
              
              
              (1,039
              )Loss
                  from operations
              
              
              (3,443,783
              )
              
              (309,596
              )
              
              (291,884
              )
              
              654,225Interest
                  expense
              
              
              15,935
              
              
              -
              
              
              (8,325
              )
              
              -Loss
                  before minority interest
              
              
              (3,427,848
              )
              
              (309,596
              )
              
              (300,209
              )
              
              654,225Minority
                  interest share of (income) loss of consolidated
                  subsidiaries
              
              
              5,131
              
              
              -
              
              
              (13,684
              )
              
              -Loss
                  before benefit from income taxes
              
              
              (3,422,717
              )
              
              (309,596
              )
              
              (313,893
              )
              
              654,225Benefit
                  from income taxes
              
              
              -
              
              
              -
              
              
              -
              
              
              -Net
                  income (loss)
              
              $
              (3,422,717
              )
              $
              (309,596
              )
              $
              (313,893
              )
              $
              654,225Loss
                  per common share- basic and diluted
              
              $
              (0.02
              )
              $
              (0.00
              )
              $
              (0.00
              )
              $
              0.01Weighted
                  average number of common shares outstanding- basic and
                  diluted
              
              
              220,693,757
              
              
              130,000,000
              
              
              221,849,158
              
              
              130,000,000
 
 See
        Notes
        to Unaudited Consolidated Financial Statements
  3
 
 **DELTA
        MUTUAL, INC. AND SUBSIDIARIES**
 **CONSOLIDATED
        STATEMENTS OF STOCKHOLDERS' EQUITY**
 
 Number ofCommon
              
              Common
              
              Paid in
              
              RetainedShares
              
              Stock
              
              Capital
              
              Earnings
              
              TotalBalance, January
                  1, 2007
              
              
              130,000,000
              
              $
              13,000
              
              $
              2,587,000
              
              $
              1,527,912
              
              $
              4,127,912Net
                  income
              
              
              -
              
              
              -
              
              
              -
              
              
              341,556
              
              
              341,556Balance,
                  December 31, 2007
              
              
              130,000,000
              
              $
              13,000
              
              $
              2,587,000
              
              $
              1,869,468
              
              $
              4,469,468
 
 See
        Notes
        to Unaudited Consolidated Financial Statements
 
 4
  **DELTA
        MUTUAL, INC. AND SUBSIDIARIES**
 **CONSOLIDATED
        STATEMENTS OF STOCKHOLDERS' EQUITY**
 
 Number ofCommon
              
              Common
              
              Paid in
              
              RetainedShares
              
              Stock
              
              Capital
              
              Earnings (Deficit)
              
              TotalBalance,
                  January 1, 2008
              
              
              130,000,000
              
              $
              13,000
              
              $
              2,587,000
              
              $
              1,869,468
              
              $
              4,469,468Effect
                  of reverse acquisition
              
              
              78,882,953
              
              
              7,888
              
              
              9,366,766
              
              
              (11,082,853
              )
              
              (1,708,199
              )Issuance
                  of common stock for services (valued at $0.02 per share)
              
              
              10,550,000
              
              
              1,055
              
              
              237,445
              
              
              -
              
              
              238,500Issuance
                  of common stock for debt (valued at $0.02 per share)
              
              
              2,300,571
              
              
              230
              
              
              143,370
              
              
              -
              
              
              143,600Issuance
                  of common stock for interest (valued at $0.02 per share)
              
              
              115,634
              
              
              12
              
              
              7,036
              
              
              -
              
              
              7,048Contribution
                  from stockholder
              
              
              -
              
              
              -
              
              
              1,000
              
              
              -
              
              
              1,000Stock
                  based compensation expense
              
              
              -
              
              
              -
              
              
              590,236
              
              
              -
              
              
              590,236Net
                  (loss)
              
              
              -
              
              
              -
              
              
              -
              
              
              (3,422,717
              )
              
              (3,422,717
              )Balance,
                  September 30, 2008
              
              
              221,849,158
              
              $
              22,185
              
              $
              12,932,853
              
              $
              (12,636,102
              )
              $
              318,936
 
 See
        Notes
        to Unaudited Consolidated Financial Statements
  5
 
 **DELTA
        MUTUAL, INC. AND SUBSIDIARIES**
 **CONSOLIDATED
        STATEMENTS OF CASH FLOWS**
 **(UNAUDITED)**
 
 Nine Months Ended September 30,2008
              
              2007Cash flows from operating activities:Net
                  loss
              
              $
              (3,422,717
              )
              $
              (309,596
              )Adjustments
                  to reconcile net loss to net cash used in operating
                  activities:Depreciation
                  and amortization
              
              
              25,377
              
              
              -Non-cash
                  compensation
              
              
              245,548
              
              
              -Impairment
                  of fixed asset
              
              
              138,127Loss
                  on intellectual property
              
              
              122,742Compensatory
                  element of option issuance
              
              
              590,236
              
              
              -Minority
                  interest in income (losses) ofconsolidated
                  subsidiaries
              
              
              (5,131
              )
              
              -Changes
                  in operating assetsand
                  liabilities
              
              
              (200,243
              )
              
              -Net
                  cash used in operating activities
              
              
              (2,506,061
              )
              
              (309,596
              )Cash
                  flows from investing activities:Decrease
                  in investments
              
              
              2,988,785
              
              
              309,596Cash
                  received upon acquisition
              
              
              57,633
              
              
              -Net
                  cash provided by investing activities
              
              
              3,046,418
              
              
              309,596Cash
                  flows from financing activities:Proceeds
                  from loans
              
              
              219,863
              
              
              -Repayment
                  of loan
              
              
              (60,000
              )
              
              -Proceeds
                  from minority interest
              
              
              5,862
              
              
              -Net
                  cash provided by financing activities
              
              
              165,725
              
              
              -Net
                  increase in cash
              
              
              706,082
              
              
              -Cash
                  - Beginning of period
              
              
              -
              
              
              -Cash
                  - End of period
              
              $
              706,082
              
              $
              -
 
 See
        Notes
        to Unaudited Consolidated Financial Statements
  6
 
 **DELTA
        MUTUAL, INC. AND SUBSIDIARIES**
 **CONSOLIDATED
        STATEMENTS OF CASH FLOWS**
 (Continued)
 (UNAUDITED)
 
 Nine Months Ended September 30,2008
              
              2007Supplementary information:Changes in operating assets and liabilities consists of:(Increase)
                  decrease in prepaid expenses
              
              $
              1,914
              
              $
              -Increase
                  in accounts payable and accrued expenses
              
              
              (202,157
              )
              
              -$
              (200,243
              )
              $
              -Non-cash
                  financing activities:Issuance
                  of common stock for debt
              
              $
              143,600
              
              $
              -Issuance
                  of common stock in lieu of payment of accrued expenses
              
              $
              7,048
              
              $
              -Issuance
                  of common stock for services
              
              $
              238,500
              
              $
              -
 
 See
        Notes
        to Unaudited Consolidated Financial Statements
  7
  DELTA
          MUTUAL, INC. AND SUBSIDIARIES
 NOTES
          TO
          UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
 For
          the
          Nine Months Ended September 30, 2008 and 2007
 
 1.
          DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING
          POLICIES
 
 Organization
 
 Delta
          Mutual, Inc. and subsidiaries (“Delta” or the “Company”) was incorporated in
          Delaware on November 17, 1999. Since 2003, the principal business activities
          of
          the Company were focused on providing environmental and construction
          technologies and services to certain geographic reporting segments in the
          Far
          East, Middle East and the United States.
 
 On
          March
          4, 2008, the Company entered into a Membership Interest Purchase Agreement
          (the
“Agreement”) with Egani, Inc., an Arizona corporation (“Egani”). Pursuant to the
          Agreement, the Company acquired from Egani 100% of the issued and outstanding
          membership interests held by Egani in Altony S.A., an Uruguay Sociedad
          Anonima
          (“Altony”), which owns 100% of the issued and outstanding membership interests
          in South American Hedge Fund LLC, a Delaware limited liability company
          (“SAHF”).
          At the closing of the Agreement, the Company issued 130,000,000 shares
          of its
          common stock to Egani, for the purchase of all of the outstanding membership
          interests in Altony which constituted, following such issuance, a majority
          of
          the outstanding shares of the Company’s common stock.
 
 Immediately
          following the closing of the Agreement, Altony became a wholly owned subsidiary
          of the Company. For accounting purposes only, the transaction was treated
          as a
          recapitalization of the Company with Altony as the acquirer. The financial
          statements prior to March 4, 2008 are those of Altony and reflect the assets
          and
          liabilities of Altony at historical carrying amounts. The financial statements
          show a retroactive restatement of Altony’s historical stockholders’ equity to
          reflect the equivalent number of shares issued to the subsidiary.
 
 The
          principal business activity of Altony is the ownership and management of
          its
          SAHF subsidiary. SAHF has initially focused on oil and gas investments
          in
          Argentina and intends to continue its focus on the energy sector, including
          the
          development and supply of energy and alternate energy sources in Latin
          America
          and North America.
 
 In
          August
          2007, SAHF signed a purchase option for a partial interest in oil and gas
          concessions in Argentina. SAHF is in the process of obtaining the necessary
          government and environmental permits to operate these concessions. In the
          third
          quarter of 2008, SAHF agreed to exchange certain development rights it
          held in
          these concessions for ownership interests in the oil and gas production
          from
          these concession ranging from nine to 23.5 percent.
 
 The
          Company intends to continue its environmental technology and other activities
          in
          the Middle East that are conducted by its joint venture subsidiary
          Delta-Envirotech, Inc. (“Envirotech”), headquartered in Virginia. The
          construction technology activities that were conducted by the Company’s wholly
          owned subsidiary Delta Technologies, Inc. (“Technologies”) are being phased out
          because the Company has elected not to pursue its patent for the insulating
          concrete wall forming (ICF) system known as *Delta
          Wall* .
  8
  BASIS
          OF
          PRESENTATION
 
 The
          consolidated balance sheet as of September 30, 2008, and the consolidated
          statements of operations and cash flows for the periods presented herein
          have
          been prepared by the Company and are unaudited. In the opinion of management,
          all adjustments (consisting solely of normal recurring adjustments) necessary
          to
          present fairly, the financial position, results of operations and cash
          flows for
          all periods presented have been made. The information for the consolidated
          balance sheet as of December 31, 2007 was derived from audited financial
          statements.
 
 The
          consolidated financial statements for the period ended September 30, 2008
          have
          been prepared on a going concern basis which contemplates the realization
          of
          assets and settlement of liabilities and commitments in the normal course
          of
          business. Management recognizes that the Company's continued existence
          is
          dependent upon its ability to obtain needed working capital through additional
          equity and/or debt financing and revenue to cover expenses as the Company
          continues to incur losses.
 
 The
          Company's business is subject to most of the risks inherent in the establishment
          of a new business enterprise. The likelihood of success of the Company
          must be
          considered in light of the expenses, difficulties, delays and unanticipated
          challenges encountered in connection with the formation of a new business,
          raising operating and development capital, and the marketing of a new product.
          There is no assurance the Company will ultimately achieve a profitable
          level of
          operations.
 
 The
          Company presently does not have sufficient liquid assets to finance its
          anticipated funding needs and obligations. The Company's continued existence
          is
          dependent upon its ability to obtain needed working capital through additional
          equity and/or debt financing and achieve a level of sales adequate to support
          its cost structure. Management is actively seeking additional capital to
          ensure
          the continuation of its current activities and complete its proposed activities.
          However, there is no assurance that additional capital will be obtained
          or that
          the Company’s subsidiaries will be profitable. These uncertainties raise
          substantial doubt about the ability of the Company to continue as a going
          concern. The accompanying financial statements do not include any adjustments
          that might result from the outcome of these uncertainties should the Company
          be
          unable to continue as a going concern.
  9
  SIGNIFICANT
          ACCOUNTING POLICIES
 
 PRINCIPLES
          OF CONSOLIDATION
 
 The
          Company's financial statements include the accounts of all majority-owned
          subsidiaries where its ownership is more than 50 percent of common stock.
          The
          consolidated financial statements also include the accounts of any Variable
          Interest Entities ("VIEs") where the Company is deemed to be the primary
          beneficiary, regardless of its ownership percentage. All significant
          intercompany balances and transactions with consolidated subsidiaries are
          eliminated in the consolidated financial statements. Where the Company's
          ownership interest is less than 100 percent, the minority ownership interests
          are reported in the consolidated balance sheet as a liability. The minority
          ownership interest of the Company's earnings or loss, net of tax, is classified as
          "Minority interest share of earnings (loss) of consolidated subsidiaries"
          in the
          consolidated statements of operations.
 
 USE
          OF
          ESTIMATES
 
 The
          preparation of consolidated financial statements in conformity with accounting
          principles generally accepted in the United States of America requires
          management to make estimates and assumptions that affect the reported amounts
          of
          assets and liabilities, and disclosure of contingent assets and liabilities
          at
          the date of the financial statements and the reported amounts of revenues
          and
          expenses during the period. Actual results could differ from those
          estimates.
 
 LOSS
          PER
          SHARE
 
 Basic
          and
          diluted loss per common share is computed by dividing net loss by the weighted
          average number of common shares outstanding during the year. Potential
          common
          shares are excluded from the loss per share calculation because the effect
          would
          be antidilutive. Potential common shares relate to the convertible debt,
          stock
          options and common stock purchase warrants. As of September 30, 2008, there
          were
          2,749,920 potential common shares related to convertible debt and 3,500,000
          potential common shares related to stock options.
 
 REVENUE
          RECOGNITION
 
 The
          Company recognizes revenue from the results of its investment portfolio
          as the
          difference between proceeds from the sale of securities and their acquisition
          cost, less commissions paid to the firm that conducts the securities
          transactions.
 
 EVALUATION
          OF LONG-LIVED ASSETS
 
 The
          Company reviews property and equipment and finite-lived intangible assets
          for
          impairment whenever events or changes in circumstances indicate the carrying
          value may not be recoverable in accordance with guidance in Statement of
          Financial Accounting Standards (SFAS) No. 144 "Accounting for the Impairment
          or
          Disposal of Long-Lived Assets." If the carrying value of the long-lived
          asset
          exceeds the present value of the related estimated future cash flows, the
          asset
          would be adjusted to its fair value and an impairment loss would be charged
          to
          operations in the period identified.
 
 DEPRECIATION
          AND AMORTIZATION
 
 Property
          and equipment are stated at cost. Depreciation is provided for by the
          straight-line method over the estimated useful lives of the related
          assets.
 
 10
  STOCK-BASED
          COMPENSATION
 
 The
          Company has a stock-based compensation plan under which stock options are
          granted to employees. Effective January 1, 2006, the Company accounts for
          stock
          based compensation under Statement of Financial Accounting Standards ("SFAS")
          No. 123(R), "Share-Based Payment." The Company adopted SFAS 123(R) using
          the
          modified prospective method. Under modified prospective application, this
          SFAS
          applies to new awards and to awards for which the requisite service has
          not been
          rendered that are outstanding as of the required effective date shall be
          recognized as the requisite service is rendered on or
 after
          the
          required effective date. The compensation cost for the portion of awards
          shall
          be based on the grant-date fair value of those awards as calculated for
          either
          recognition or pro forma disclosures under SFAS 123. Changes to the grant-date
          fair value of equity awards granted before the required effective date
          of this
          Statement are precluded. The compensation cost for those earlier awards
          shall be
          attributed to periods beginning on or after the required effective date
          of this
          SFAS using the attribution method that was used under SFAS 123, except
          that the
          method of recognizing forfeitures only as they occur shall not be continued.
 
 INCOME
          TAXES
 
 The
          Company accounts for income taxes using an asset and liability approach
          under
          which deferred taxes are recognized by applying enacted tax rates applicable
          to
          future years to the differences between financial statement carrying amounts
          and
          the tax basis of reported assets and liabilities. The principal item giving
          rise
          to deferred taxes are future tax benefits of certain net operating loss
          carryforwards.
 
 FOREIGN
          CURRENCY TRANSLATION
 
 The
          functional currency for some foreign operations is the local currency.
          Assets
          and liabilities of foreign operations are translated at balance sheet date
          rates
          of exchange and income, expense and cash flow items are translated at the
          average exchange rate for the period. Translation adjustments in future
          periods
          will be recorded in Cumulative Other Comprehensive Income. The translation
          gains
          or losses were not material for the nine and three months ended September
          30,
          2008 and 2007.
 
 INTANGIBLES
 
 SFAS
          No.
          142, "Goodwill and Other Intangible Assets," specifies the financial accounting
          and reporting for acquired goodwill and other intangible assets. Goodwill
          and
          intangible assets deemed to have indefinite useful lives are not amortized
          but
          are subject to, at a minimum, an annual impairment test. If the carrying
          value
          of goodwill or intangible assets exceeds its fair market value, an impairment
          loss would be recorded.
 
 FAIR
          VALUE OF FINANCIAL INSTRUMENTS
 
 For
          financial instruments including cash, investments, accounts payable, accrued
          expenses, notes payable and convertible debt, it was assumed that the carrying
          amount approximated fair value because of the short maturities of such
          instruments.
  11
  NEW
          FINANCIAL ACCOUNTING STANDARDS
 
 In
          March
          2008, the FASB issued SFAS No. 161, “Disclosures about Derivative Instruments
          and Hedging Activities,” an amendment of FASB Statement No. 133 (“SFAS No.
          161”). The new standard is intended to improve financial reporting about
          derivative instruments and hedging activities by requiring enhanced disclosures
          to enable investors to better understand their effects on an entity’s financial
          position, financial performance and cash flows. It is effective for financial
          statements issued for fiscal years and interim periods beginning after
          November
          15, 2008. The Company does not believe that SFAS No. 161 will have a material
          impact on its financial statements.
 
 In
          May
          2008, t he
          FASB
          issued SFAS No. 162, “The Hierarchy of Generally Accepted Accounting Principles”
(“SFAS No. 162”). SFAS No. 162 identifies the sources of accounting principles
          and the framework for selecting the principles to be used in the preparation
          of
          financial statements of nongovernmental entities that are presented in
          conformity with generally accepted accounting principles (GAAP) in the
          United
          States. This Statement is effective sixty days following the SEC’s approval of
          the Public Company Accounting Oversight Board amendments to AU Section
          411, “The
          Meaning of Present Fairly in Conformity With Generally Accepted Accounting
          Principles.” The Company is currently evaluating the potential impact, if any,
          of the adoption of SFAS No. 162 on its financial statements.
 
 In
          February 2008, the FASB issued FASB Staff Position SFAS 157-1, “Application
          of SFAS No. 157 to SFAS No. 13 and Its Related Interpretative Accounting
          Pronouncements that Address Leasing Transactions” (“FSP SFAS 157-1”) and FASB
          Staff Position SFAS 157-2, “Effective Date of SFAS No. 157” (“FSP SFAS
          157-2”). FSP SFAS 157-1 excludes SFAS No. 13 and its related interpretive
          accounting pronouncements that address leasing transactions from the
          requirements of SFAS No. 157, with the exception of fair value measurements
          of
          assets and liabilities recorded as a result of a lease transaction but
          measured
          pursuant to other pronouncements within the scope of SFAS No. 157. FSP SFAS
          157-2 delays the effective date of SFAS No. 157 for all nonfinancial assets
          and
          nonfinancial liabilities, except those that are recognized or disclosed
          at fair
          value in the financial statements on a recurring basis (at least annually).
          FSP
          SFAS 157-1 and FSP SFAS 157-2 became effective for the Company upon adoption
          of
          SFAS No. 157 on January 1, 2008. The Company will provide the additional
          disclosures required relating to the fair value measurement of nonfinancial
          assets and nonfinancial liabilities when it fully implements SFAS No. 157
          on
          January 1, 2009, as required, and does not believe they will have a significant
          impact on its financial statements.
 
 2.
          INVESTMENTS
 
 The
          Company invests in public and private securities of the United States and
          Latin
          American countries as well as long-term investments in oil and gas concessions.
          The fair market value of these investments at September 30, 2008 and December
          31, 2007 is indicated below.
  12
  September
                    30,
                
                December
                    31,2008
                
                2007Public
                    securities
                
                $
                —
                
                $
                322,300Private
                    securities
                
                
                —
                
                
                5,556,720Current
                    investments
                
                
                —
                
                
                5,879,020Oil
                    and gas concessions
                
                
                1,720,235
                
                
                1,130,000$
                1,720,235
                
                $
                7,009,020
 
 3.
          PROPERTY AND EQUIPMENT
 
 September
                    30,
                
                December
                    31,2008
                
                2007Equipment
                
                $
                316,908
                
                $
                —Leasehold
                    improvements
                
                
                7,807
                
                
                —324,715
                
                
                —Less
                    accumulated depreciation
                
                
                116,256
                
                
                —$
                208,194
                
                $
                —
 
 During
          the quarter ended September 30, 2008, the Company wrote off $138,127 of
          the
          value of its equipment that was used in its Indonesian operations. Depreciation
          expense for the nine and three months ended September 30, 2008, amounted
          to
          $21,802 and $265, respectively.
 
 4.
          INTANGIBLE ASSETS
 
 Intangible
          assets consisted of intellectual property included in a patent application.
          The
          Company elected not to pursue the patent application and wrote-off $122,742
          of
          the unamortized amounts during **** the
          quarter ended June 30, 2008. Amortization expense was $3,575 and $-0- for
          the
          nine and three months ended September 30, 2008, respectively. Other intangible
          assets consisted of the following:
 
 September
                    30,
                
                December
                    31,2008
                
                2007Gross
                    Carrying Amount
                
                $
                143,000
                
                $
                —Accumulated
                    Amortization
                
                
                143,000
                
                
                —Intellectual
                    property costs
                
                $
                —
                
                $
                —
  13
  5.
                INVESTMENT
                    IN JOINT VENTURES
 
 a.
                In
                    December 2003, the Company formed a joint venture to develop
                    Section 124,
                    low income housing in the Commonwealth of Puerto Rico. The Company
                    became
                    the general partner and 75% majority owner of a limited partnership,
                    Delta
                    Development Partners, LP that owns the 85% majority share of
                    Delta
                    Developers Corp., a Puerto Rico corporation, formed to manage
                    the
                    construction and related activities required to build approximately
                    270
                    homes under Section 124. During the year ended December 31, 2006,
                    the
                    activities associated with this joint venture were
                    discontinued.
 
 In
                    October 2004, the Company formed a second joint venture to develop
                    Section
                    124 low income housing in Puerto Rico. The Company became the
                    general
                    partner and majority owner of a limited partnership, Delta Development
                    Partners II, LP that owns the 85% majority share of Delta Developers
                    Guayanilla Corp., a Puerto Rico corporation formed to manage
                    the
                    construction and related activities required to build approximately
                    300
                    homes under Section 124. During the first quarter of 2007, the
                    activities
                    associated with this joint venture were discontinued and the
                    land deposit
                    was returned to the joint venture.
 
 In
                    November 2006, the Company entered into a new joint venture to
                    develop
                    Section 124 housing in Puerto Rico. The Company became the general
                    partner
                    and 35% minority owner of limited partnership, Delta TA, LP formed
                    to
                    manage the construction and related activities to build approximately
                    338
                    residential units under the Section 124 program. As of the quarter
                    ended
                    September 30, 2007, the Puerto Rico housing development activities
                    associated with this partnership were discontinued.
  b.
                On
                    January 14, 2004, the Company entered into a joint venture agreement
                    with
                    Hi tech Consulting and Construction, Inc. (“Hi Tech”) forming
                    Delta-Envirotech, Inc. for the purpose of providing environmental
                    technologies and services to markets in the Middle East. The
                    joint venture
                    company is based in Virginia and focuses on participating in
                    foreign
                    government sponsored pollution remediation and other projects.
  In
                    July 2004, the Company and Hi-Tech, pursuant to an agreement
                    to purchase
                    stock dated January 14, 2004, each sold 75 shares of the joint
                    venture to
                    a third party, representing a ten percent (10%) interest for
                    $2. The
                    Company and Hi-Tech each own forty-five percent (45%) of the
                    joint
                    venture.
  Delta-Envirotech,
                    Inc. meets the definition of a Variable Interest Entity as defined
                    in
                    Financial Accounting Standards Board Interpretation No. 46 (FIN
                    46),"Consolidation of Variable Interest Entities" requiring the
                    primary
                    beneficiaries of a variable interest entity to consolidate that
                    entity.
                    The primary beneficiary of a variable interest entity is the
                    party that
                    absorbs the majority of the expected losses of the entity or
                    receives a
                    majority of the entity's expected residual return, or both, as
                    a result of
                    ownership, contractual or other financial interest in the
                    entity.
  14
  c.
                Minority
                    interests primarily consist of outside investors ownership interest
                    in
                    Delta Development Partners, L.P.; Delta Development Partners
                    II, L.P.;
                    Delta TA, LP; Delta Developers Corp.; Delta Developers Guayanilla
                    Corp.;
                    Delta-Envirotech, Inc. and PT Triyudha–
                    Envirotech.
  The
                    income and losses from operations of these entities and their
                    respective
                    minority interests have been reflected in the Company's statement
                    of
                    operations for the nine and three months ended September 30,
                    2008. There
                    are excess losses not absorbed by the minority interests due
                    to
                    limitations of their capital contributions. In future periods,
                    the profits
                    first attributable to the minority interests will be first absorbed
                    against any unused losses until the losses are fully absorbed.
                    The amount
                    on the Company's consolidated balance sheet represents the minority
                    interests as of September 30, 2008 and December 31,
                    2007.
 
 The
          following represents a schedule of minority interests as of:
 
 September
                    30,
                
                December
                    31,2008
                
                2007Delta
                    Development Partners L.P.
                
                $
                83,790
                
                $
                —Delta
                    Development Partners II, L.P.
                
                
                37,718
                
                
                —Delta
                    TA L.P.
                
                
                105,020
                
                
                —Delta
                    Developers Corp.
                
                
                —
                
                
                —Delta
                    Developers Guayanilla Corp.
                
                
                —
                
                
                —Delta-Envirotech,
                    Inc.
                
                
                —
                
                
                —PT
                    Triyudha - Envirotech
                
                
                —
                
                
                —$
                226,528
                
                $
                —
 
 6.
          NOTES
          PAYABLE
 
 In
          April
          2005, the Company issued three 8% term notes to private investors in the
          amount
          of $210,655, with the principal and interest due at maturity on October
          2, 2005.
          Pursuant to note modification agreements, the maturity dates of these notes
          were
          extended and in June 2006 these notes became payable on written demand
          by the
          lenders. In March 2008, the Company paid $60,000 of the principal amount
          of the
          original notes and each of the three notes was amended and restated. By
          amendment, the noteholders waived all of the accrued and unpaid interest
          on the
          original notes and the aggregate principal amount was reduced to $150,655.
          The
          amended and restated notes bear interest of 8% and matured on November
          6, 2008.
          The Company did not repay the notes on the maturity date. The Company is
          currently negotiating amended terms with the noteholders. If the Company
          and the
          noteholders can not agree upon an amendment to the note, including an extension
          of the maturity date, the Company may receive a notice of default. Interest
          expense for the nine and three months ended September 30, 2008 amounted
          to
          $(30,830) and $3,913, respectively. As of September 30, 2008, accrued interest
          of $7,031 is included in accrued expenses on the Company's consolidated
          balance
          sheet.
  15
  In
          May
          2006, the Company borrowed $30,000 from an investor (formerly a related
          party)
          at interest of 6% per annum with the principal and interest due on May
          17, 2008.
          In May 2008, the note was amended extending the maturity date to August
          15,
          2008. The Company did not repay the note on the maturity date but the noteholder
          has verbally agreed not to make written demand for payment. The Company
          is
          currently negotiating amended terms with the noteholder. If the Company
          and the
          noteholder can not agree upon an amendment to the note, including an extension
          of the maturity date, the Company may receive a notice of default. Interest
          expense for the nine and three months ended September 30, 2008 amounted
          to
          $1,350 and $450, respectively. As of September 30, 2008 accrued interest
          of
          $4,272 is included in accrued expenses on the Company's consolidated balance
          sheet.
 
 In
          August
          2007, the SAHF borrowed $2,300,000 from Oxipetrol-Petroleros de Ocidente,
          S.A.
          in conjunction with its investment in oil and gas concessions. This non
          interest-bearing loan had a maturity date of July 15, 2008. During the
          second
          quarter of 2008, $580,000 of the principal amount was repaid. The remaining
          principal amount of this note was repaid in July 2008.The principal amount
          of
          $-0- and $2,300,000, respectively, is included in long term liabilities
          on the
          Company’s consolidated balance sheet at September 30, 2008 and December 31,
          2007.
  7.
          CONVERTIBLE DEBT
 
 During
          the year ended December 31, 2004, the Company issued convertible notes
          in the
          principal amounts of $961,400. The convertible notes had interest rates
          from 4%
          to 6% and matured at various dates between May 12, 2006 and January 16,
          2007.
          These notes are convertible into common stock at a conversion price of
          $0.05 to
          $0.125 per share. One note, in the original principal amount of $129,160
          that
          originally matured in May 2006 was amended during 2006 and 2007 extending
          the
          maturity date until June 2008. After partial conversion of the principal
          amount
          of this note in July 2006, and the payment of accrued interest in March
          2007,
          the remaining principal amount and all accrued interest was converted into
          1,491,886 shares of common stock in April 2008. Another note, in the principal
          amount of $193,740 that originally matured in May 2006 was amended during
          2006
          and 2007 extending the maturity date to December 1, 2007. The Company did
          not
          repay the note on the maturity date but the holder of this note has verbally
          agreed not to make written demand for payment. The Company is currently
          negotiating amended terms with the noteholder. If the Company and the noteholder
          can not agree upon an amendment to the note, including an extension of
          the
          maturity date, the Company may receive a notice of default. One note issued
          by
          the Company in the principal amount of $60,000, became payable upon written
          demand by the lender in September 2006. The balance of the convertible
          notes
          issued in 2004 was converted into 12,923,280 shares of common stock through
          September 30, 2008.
  16
  In
          connection with the issuance of the convertible notes, the Company issued
          8,880,000 common stock purchase warrants at an exercise price of $0.10
          per
          share. The warrants expired March 31, 2006.
  The
          Company accounted for the warrants and the convertible debt with detachable
          warrants in accordance with Emerging Issues Task Force 00-27 and 00-19
          and SFAS
          No. 33. The Company performed calculations allocating the proceeds of
          convertible debt with detachable warrants to each respective security at
          their
          fair values. The Company used the conversion value of the convertible debt
          and
          calculated fair value of the warrants using the Black-Scholes valuation
          model
          for its estimate of fair value. The Company compared the allocated proceeds
          of
          the convertible debt to the difference between its conversion value and
          face
          amount. The calculated fair value of the convertible debt of $722,855 was
          recorded as the value of the Beneficial Conversion Feature and accordingly
          credited to Additional Paid-in Capital. The value of the warrants of $235,545
          was recorded as a reduction of the convertible debt. The convertible debt
          was
          recorded at zero. The convertible debt was accreted to its face value after
          2004, 2005 and 2006 conversions, under the interest method per APB 21,
          until it
          either converted or matured.
 
 In
          May
          2006, the Company issued a convertible note to a related party in the principal
          amount of $16,000, bearing interest at 6% per annum. The note was convertible
          into common stock at a conversion price of $0.06 per share, the fair value
          at
          the date of issuance. The note matured on November 3, 2007 and upon maturity
          the
          Company issued 266,667 shares of common stock in payment of the principal
          amount
          and 24,000 shares of common stock in payment of $1,440 of accrued
          interest.
 
 During
          the first quarter of 2007, the Company issued a convertible note to a related
          party in the principal amount of $17,000, and a convertible note to an
          investor
          in the principal amount of $266,000. Both notes had interest of 6% per
          annum and
          were convertible into common stock at a conversion price of $0.05 per share,
          the
          fair value at the date of issuance. Both notes matured in April 2008. In
          conjunction with the issuance of these two notes, the Company reclassified
          $266,000 recorded as deferred stock purchase, on its consolidated balance
          sheet
          as of December 31, 2006, to convertible notes at March 31, 2007. On October
          30,
          2007, the holder of the $266,000 note converted the principal amount of
          the note
          into 5,320,000 shares of common stock and waived all accrued interest.
          In April
          2008, the Company issued 340,000 shares of common stock in payment of the
          principal amount of the $17,000 note and issued 20,400 shares of common
          stock in
          payment of the accrued interest of $1,020.
 
 In
          April
          2007, the Company issued a convertible note to a related party in the principal
          amount of $26,600 bearing interest of 6% per annum and convertible into
          common
          stock at the conversion price of $0.05 per share, the fair value at the
          date of
          issuance, with a maturity date of April 9, 2008. On the maturity date,
          the
          Company issued 532,000 shares of common stock in payment of the principal
          amount
          and 31,920 shares of common stock in payment of the accrued interest of
          $1,596.
 
 During
          the second and third quarters of 2007, the Company borrowed $550,000 from
          an
          investor pursuant to the terms of a convertible promissory note with a
          maturity
          date of May 2008; interest of 10% per annum; and convertible into common
          stock
          at the conversion price of $0.05 per share, the fair value at the date
          of
          issuance. In September 2007, the investor converted the principal amount
          of the
          note into 11,000,000 shares of common stock and waived all accrued interest.
  17
  At
          September 30, 2008, the Company's outstanding convertible notes were convertible
          into 2,749,920 shares of common stock.
 
 The
          following table shows the maturities by year of total face amount of the
          convertible debt obligations at September 30, 2008:
 
 2008
                
                $
                253,740$
                253,740
 
 For
          the
          nine and three months ended September 30, 2008, the Company recorded interest
          expense of $7,728 and $1,937, respectively. As of September 30, 2008, accrued
          interest of $40,337 is included in accrued expenses on the Company's
          consolidated balance sheet.
 
 8.
          ACCRUED EXPENSES
 
 Accrued
          expenses consists of the following:
 
 September 30,
                  2008
                
                December 31,
                  2007Professional
                    fees
                
                $
                12,500
                
                $
                —Interest
                    expense
                
                
                57,445
                
                
                —Payroll
                    expense
                
                
                614,507
                
                
                —Payroll
                    expense-officers
                
                
                38,068
                
                
                —Payroll
                    tax expense
                
                
                41,464
                
                
                —Accrued
                    consulting fees
                
                
                144,000
                
                
                —Other
                    accrued expenses
                
                
                379,467
                
                
                —$
                1,287,461
                
                $
                —
  During
          the nine months ended September 30, 2008, pursuant to a written agreement
          with
          the former president of the Company, $117,436 of his accrued payroll expense
          was
eliminated.
 
 9.
          LOANS
          FROM RELATED PARTIES
 
 In
          March
          2008, the Company borrowed $121,000, in the aggregate, from two stockholders
          of
          the Company, with interest of 6% per annum and the principal and interest
          due on
          September 6, 2008. These two notes have been amended extending the maturity
          dates to November 30, and December 15, 2008, respectively. The balance
          due to
          the stockholders is included in Notes Payable on the Company’s consolidated
          balance sheet at September 30, 2008. Accrued interest of $4,235 is included
          in
          accrued expenses on the Company’s consolidated balance sheet at September 30,
          2008. The Company recorded interest expense of $4,235 and $1,815 for the
          nine
          and three months ended September 20, 2008, respectively.
  18
  During
          the second quarter of 2008, the Company borrowed $20,000, $9,550 and $16,900,
          respectively, from two stockholders of the Company. Each note bears interest
          of
          6% per annum with the principal and accrued interest due on October 15
          through
          November 14, 2008, the respective maturity dates. These notes have been
          amended,
          extending the respective maturity dates to November 30 through December
          15,
          2008. On June 27, 2008 the Company borrowed $19,500 from a stockholder
          and
          issued a 6% promissory note with principal and accrued interest due upon
          written
          demand by the lender. The June 27 th note was
          replaced by a note with identical terms, in the principal amount of $22,413
          on
          July 7, 2008. Accrued interest of $1,505 is included in accrued expenses
          on the
          Company’s consolidated balance sheet at September 30, 2008. The Company recorded
          interest expense of $1,505 and $1,033 for the nine and three months ended
          September 30, 2008, respectively.
 
 During
          the third quarter of 2008, the Company borrowed $32,913 from
          stockholders pursuant to two 6% promissory notes with principal and accrued
          interest due upon written demand by the lenders. Accrued interest of $75
          is
          included in accrued expenses on the Company’s consolidated balance sheet at
          September 30, 2008. The Company recorded interest expense of $75 for the
          nine
          and three months ended September 30, 2008, respectively.
 
 10.
          OTHER
          RELATED PARTY TRANSACTION
 
 The
          Company's subsidiary, Delta-Envirotech, Inc. ("Envirotech") pays monthly
          office
          rent to David Razmara, the president of Envirotech and
          a
          stockholder of the Company, in the current amount of $2,000. The
          rent
          expense for the nine and three months ended September 30, 2008 amounted
          to
          $18,000 and $6,000, respectively.
 
 11.
          STOCKHOLDERS' EQUITY
 
 The
          Company issues shares of common stock for services and repayment of debt
          and
          interest valued at fair market value at time of issue.
 
 a.
          For
          the nine months ended September 30, 2008, the Company issued 2,300,571
          shares of
          common stock upon the conversion of convertible notes in the principal
          amount of
          $143,600, valued at $0.05 - $0.07 per share; and 115,634 shares of common
          stock
          for payment of accrued interest in the amount of $7,048, valued at $0.05
          - $0.07
          per share.
 
 b.
          For
          the nine months ended September 30, 2008, the Company issued 10,550,000
          shares
          of common stock for services valued at $238,500, valued at $0.02 - $0.07
          per
          share.
  12.
          DISCONTINUED OPERATIONS
 
 During
          the quarter ended June 30, 2008, the Company discontinued all its operations
          in
          Indonesia and the activities of PT Triyhuda-Envirotech have been classified
          as
          discontinued operations. The assets and liabilities, results of operations,
          and
          cash flows of these discontinued operations have been included with the
          operations of the Company in its consolidated financial statements for
          the nine
          and three months ended September 30, 2008 due to the immaterial nature
          of the
          transactions.
  19
 
 13.
          BUSINESS SEGMENT INFORMATION
 
 The
          Company’s reporting business segments are geographic and include North America
          (United States), South America, the Middle East and the Far East (Indonesia).
          The Company discontinued its Indonesian operations as of June 30, 2008.
          The
          Company formerly operated in a fifth reporting segment, Puerto Rico. The
          primary
          criteria by which financial performance is evaluated and resources allocated
          are
          revenue and operating income.
 
 The
          following is a summary of key financial data:
 
 Nine Months Ended
                  September 30,
                
                Three Months Ended
                  September 30,2008
                
                2007
                
                2008
                
                2007Total
                    Revenue:North
                    America
                
                $
                —
                
                $
                —
                
                $
                —
                
                $
                —South
                    America
                
                
                (2,051,672
                )
                
                (313,859
                )
                
                1,339
                
                
                653,186Indonesia
                
                
                —
                
                
                —
                
                
                —
                
                
                —Middle
                    East
                
                
                22,008
                
                
                —
                
                
                22,008
                
                
                —Puerto
                    Rico
                
                
                —
                
                
                —
                
                
                —
                
                
                —$
                (2,029,664
                )
                $
                (313,859
                )
                $
                23,347
                
                $
                653,186Loss
                    from Operations:North
                    America
                
                $
                (1,161,245
                )
                $
                —
                
                $
                (217,131
                )
                $
                —South
                    America
                
                
                (2,053,033
                )
                
                (309,596
                )
                
                (283
                )
                
                654,225Indonesia
                
                
                28,250
                
                
                —
                
                
                —
                
                
                —Middle
                    East
                
                
                (238,960
                )
                
                —
                
                
                (69,881
                )
                
                —Puerto
                    Rico
                
                
                (18,795
                )
                
                —
                
                
                (4,589
                )
                
                —$
                (3,443,783
                )
                $
                (309,596
                )
                $
                (291,884
                )
                $
                654,225
 
 14.
          INCOME TAXES
 
 The
          Company adopted the provisions of Financial Accounting Standards Board
          Interpretation No. 48 “Accounting for Uncertainties in Income Taxes,” (“FIN 48”)
          on January 1, 2007. As a result of the implementation of FIN 48, the Company
          recognized no adjustment in the net liability for unrecognized income tax
          benefits.
 
 15.
          SHARE
          BASED COMPENSATION
 
 On
          January 1, 2006, the Company adopted SFAS No. 123(R) "Share-Based Payment,"
          requiring the recognition of compensation expense in the Consolidated Statements
          of Operations related to the fair value of its employee share-based options
          and
          awards. SFAS No. 123(R) revises SFAS No. 123 "Accounting for Stock-Based
          Compensation" and supercedes APB Opinion No. 25 "Accounting for Stock Issued
          to
          Employees." SFAS No. 123(R) is supplemented by SEC Staff Accounting Bulletin
          ("SAB") No.107 "Share-Based Payment." SAB No.107 expresses the SEC staff's
          views
          regarding the interaction between SFAS No. 123(R) and certain SEC rules and
          regulations including the valuation of share-based payment
          arrangements.
  20
 
 The
          Company recognizes the cost of all employee stock options on a straight-line
          attribution basis over their respective contractual terms, net of estimated
          forfeitures. The Company has selected the modified prospective method of
          transition; accordingly, prior periods have not been restated. Prior to
          adopting
          SFAS No. 123(R), the Company applied APB Opinion No. 25, and related
          interpretation in accounting for its stock-based compensation plans. All
          employee stock options were granted at or above the grant date market price.
          Accordingly, no compensation cost was recognized for fixed stock option
          grants.
 
 At
          September 30, 2008, the Company had one share-based compensation plan,
          which is
          described below. During the nine and three months ended September 30, 2008,
          the
          adoption of SFAS No.123(R) resulted in an aggregate pretax compensation
          expense
          recognized in net loss for stock based compensation of $590,235 and $196,745,
          respectively. For the nine and three months ended September 30, 2008, the
          aggregate pretax compensation expense caused basic and diluted earnings
          per
          common share to decrease by $-0- and $-0- per share, respectively.
 
 The
          Company also issues shares of its common stock to non-employees as stock-based
          compensation. The Company accounts for the services using the fair market
          value
          of the services rendered. For the nine months ended September 30, 2008,
          the
          Company issued 10,550,000 shares, and recorded compensation expense of
          $238,500
          in conjunction with the issuance of these shares.
 
 Stock
          Option Plan
 
 In
          December 2001, the Company's stockholders approved the 2001 Employee Stock
          Option Plan (the "2001 Plan"), pursuant to which 2,000,000 shares of common
          stock were reserved for issuance. In August 2004, the Company's stockholders
          approved the 2004 Stock Option Plan (the "2004 Plan"), pursuant to which
          10,000,000 shares of common stock were reserved for issuance. As of September
          30, 2008, there were 6,500,000 shares of common stock available for issuance
          under the 2004 Plan.
 
 The
          Company was also authorized to issue shares of stock to its employees from
          its
          2001 Plan. The Company expensed the issuance of stock awards in accordance
          with
          SFAS No. 123. Shares issued from the 2001 Plan were expensed at the time
          of
          issuance, as the stock issued had no restrictions to the employees.
 
 The
          Company did not issue any stock options to its employees during the nine
          months
          ended September 30, 2008.
 
 A
          summary
          of the option activity under the 2004 Plan as of December 31, 2007 and
          changes
          during the nine months ended September 30, 2008, is presented
          below.
  21
  Options
                
                Shares
                
                Weighted-Average
                  Exercise Share Price
                
                Weighted-
                  Average
                  Remaining
                  Contractual
                  Term
                
                Aggregate
                  Intrinsic
                  ValueOutstanding
                    at January 1, 2008
                
                
                7,978,000
                
                $
                0.11Options
                    granted
                
                
                -
                
                $
                -Options
                    exercised
                
                
                -
                
                $
                -Options
                    cancelled/expired
                
                
                (4,478,000
                )
                $
                0.11Outstanding
                    at September 30, 2008
                
                
                3,500,000
                
                $
                0.11
                
                
                2.6
                
                $
                (140,000
                )Exercisable
                    at September 30, 2008
                
                
                3,500,000
                
                $
                0.11
                
                
                2.6
                
                
                —
 
 Stock
          compensation expense applicable to stock options for the nine and three
          months
          ended September 30, 2008 was approximately $590,236 and $196,745, respectively.
          The aggregate intrinsic value of options outstanding as of September 30,
          2008
          and December 31, 2007 was $(140,000) and $(718,020), respectively.
  At
          September 30, 2008, there was $819,035 of total unrecognized compensation
          cost
          related to share-based compensation arrangements granted under the 2004
          Plan.
          The cost is expected to be recognized over a weighted average period of
          2.6
          years.
 
 16.
          COMMITMENTS AND CONTINGENCIES
 
 Consulting
          Agreements
 
 In
          August
          2005, Delta Technologies, Inc. entered into a consulting agreement with
          Richard
          F. Straub, Jr. ("Straub") for a period of three years, to provide ongoing
          technical assistance and support in the production of Technologies' insulating
          concrete wall forming products.
  For
          the
          nine and three moths ended September 30, 2008, consulting fees of $35,200
          and
          $8,800, respectively, have been expensed and $100,000 of the stock value
          associated with the issuance of shares to Straub is included in accrued
          expenses
          on the Company's consolidated balance sheet as of September 30,
          2008.
  22
 
 17.
          SUBSEQUENT EVENTS
 
 a.
          In
          October and November 2008, the Company borrowed $38,500 from two stockholders
          of
          the Company pursuant to 6% promissory notes payable upon written demand
          by the
          lenders.
  23




**ITEM
      2.**  **MANAGEMENT'S
      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND** **RESULTS
      OF OPERATIONS**




The
      following discussion of our financial condition and results of operations should
      be
      read in conjunction with the financial statements and notes thereto and
      other
      financial information included elsewhere in this report.




Certain
      statements contained in this report, including, without limitation, statements
      containing the words "believes," "anticipates," "expects" and words of
      similar import, constitute "forward looking statements" within the meaning
      of the
      Private Securities Litigation Reform Act of 1995. Such forward-looking statements
      involve known and unknown risks and uncertainties. Our actual results may
      differ materially from those anticipated in these forward-looking statements as
      a
      result of certain factors, including our ability to create, sustain, manage or
      forecast our growth; our ability to attract and retain key personnel; changes in
      our
      business strategy or development plans; competition; business disruptions;
      adverse publicity; and international, national and local general economic
      and market conditions.




GENERAL




We
      were
      incorporated in the State of Delaware on November 17, 1999. Since 2003, our
      principal business activities were focused on providing environmental and
      construction technologies and services in the Far East, the Middle East, and
      the
      United States.





On
      March
      4, 2008, we entered into a Membership Interest Purchase Agreement (the
“Agreement”) with
      Egani, Inc., an Arizona corporation (“Egani”). Pursuant to the Agreement, we
      acquired from Egani 100% of the issued and outstanding membership interests
      held
      by Egani in Altony S.A., an
      Uruguay Sociedad Anonima, (“Altony”) which owns 100% of the issued and
      outstanding membership interests in South American Hedge Fund LLC, a Delaware
      limited liability company (“South American
      Hedge Fund”). At the closing of the Agreement, we issued 130,000,000 shares of
      our Common
      stock to Egani for the purchase of all of its interest in Altony which
      constituted, following such issuance, a majority of the outstanding shares
      of
      our common stock. Immediately following the closing of the Agreement, Altony
      became a wholly owned subsidiary of the Company. For accounting purposes, the
      transaction was treated as a recapitalization of the Company with Altony as
      the
      acquirer.





The
      principal business of Altony is the ownership and management of South American
      Hedge Fund, a
      hedge
      fund that maintains its business office in Uruguay and invests in public and
      private securities of the United States and Latin American countries. South
      American Hedge Fund also plans
      to
      proceed with investments in oil and gas concessions in Argentina and intends
      to
      focus its
      investments in the energy sector, including development of energy producing
      investments and alternative energy production in Latin America, the United
      States and Canada.





RESULTS
      OF OPERATIONS





During
      the nine months ended September 30, 2008, we incurred a net loss of $3,422,717
      primarily attributable to investment results of the South American Hedge Fund
      and general and administrative expenses. Our ability to continue as a going
      concern is dependent upon our ability to obtain funds to meet our obligations
      on
      a timely basis, obtain additional financing or refinancing as may be required,
      and ultimately to attain profitability. There are no assurances that we will
      be
      able to obtain additional financing or that such financing will be on terms
      favorable to us. The inability to obtain additional financing when needed would
      have a material adverse effect on our operating results.


NINE
        MONTHS ENDED SEPTEMBER 30, 2008 COMPARED TO THE NINE MONTHS ENDED SEPTEMBER
        30,
        2007.
 
 During
        the nine months ended September 30, 2008, we incurred a net loss of
        approximately $3,423,000 compared to a net loss of approximately $310,000
        for
        the nine months ended September 30, 2007.
 
 The
        increase in our operating loss for the nine months ended September 30, 2008
        over
        the comparable period of the prior year was due to an decrease of approximately
        $1,738,000 in investment results, combined with an increase of approximately
        $1,153,00 in general and administrative expenses and approximately $260,000
        in
        charges against assets.




THREE
      MONTHS ENDED SEPTEMBER 30, 2008 COMPARED TO THE THREE MONTHS ENDED SEPTEMBER
      30,
      2007.





During
      the three months ended September 30, 2008, we incurred a net loss of
      approximately $314,000 compared to net income of approximately $654,000 for
      the
      three months ended September 30, 2007.





The
      increase of $946,109 in our loss from operations for the three months ended
      September 30, 2008 over the comparable period of the prior year was primarily
      due to a decrease in revenue of approximately $630,000, an increase in general
      and administrative expenses of approximately $155,000 and an impairment loss
      on
      fixed assets of approximately $138,000.




24








PLAN
      OF
      OPERATION





*Energy
      Sector*





The
      Company’s newly-acquired South American Hedge Fund subsidiary has oil and gas
      investments in Argentina and will continue to focus on the energy sector,
      including the development and supply of energy and alternative energy sources
      in
      Latin America, the United States and Canada.





In
      August
      2007, South American Hedge Fund signed a purchase option for four interests
      in oil and gas concessions in Argentina. We then started the process of
      obtaining the necessary government and environmental operating permits for
      our
      operation of these concessions. Our
      primary focus was, upon receipt of the governmental approvals relative to our
      investment in these concessions, to
      develop two wells per month.




During
      the third quarter, South American Hedge Fund finalized agreements with JHP
      International Petroleum Engineering, Ltd. (“JHP Petroleum”) and Maxipetrol
      Petroleros de Occidental, SA in which, in exchange for certain development
      rights, South American Hedge Fund acquired a 23.5% ownership interest in two
      oil
      and gas concessions known as the Jollin Concession and the Tonono Concession,
      located in Northern Argentina. These concessions are now producing oil in
      commercially accepted amounts. Based on first month test production, the wells
      located on these concessions are expected to produce between 3,700 and 4,600
      barrel per month. One producing well in the Jollin Concession also contains
      natural gas. A test re-entry well at this location is expected to be completed
      in the fourth quarter of 2008. Natural gas production from this source is
      expected to reach between 530,00 and 600,000 cubic feet per day. South American
      Hedge Fund anticipates finalizing an agreement in December 2008 to construct
      a
      37-kilometer gas pipeline from the Jollin Concession to a nearby refinery.
      It is
      estimated that the pipeline construction will require a minimum of 45 days
      before delivery of the natural gas will occur.




Also
      during the third quarter, South American Hedge Fund agreed to acquire a nine
      percent interest in concessions known as Tartagal Oriental and Morillo also
      located in the Salta Province of Northern Argentina, from JHP Petroleum and
      Oxipetrol-Petroleros de Occident, SA in exchange for the development rights
      to
      the Tartagal and Morillo concession held by it. This joint exploration and
      development venture has applied for government approval of its license to the
      concession rights for the next 25 years. Additionally, the application for
      the
      government operating permits for the Jollin and Tonono concessions have been
      amended to seek a ten-year renewal period beyond the initial 20-year operating
      period.




To
      supplement our growth, we may also consider mergers and acquisitions, although
      we have no acquisitions contemplated or under discussion at this
      time.




In
      addition, we are currently evaluating newly developed alternative energy
      technologies for possible investment and development.





*Environmental
      and Construction Technologies and Services*





Following
      the acquisition of Altony and South America Hedge Fund, we have continued to
      pursue environmental
      and other projects in the Middle East. These activities are conducted by our
      joint venture subsidiary, Delta-Envirotech, Inc. (“Envirotech”). We have
      operating control of Envirotech and hold a 45% percent ownership interest.
      Envirotech has entered into strategic alliance agreements with several United
      States-based entities with technologies and products in the environmental
      field to support its activities.




In
      2007,
      we reached a working agreement to provide equipment to manufacture insulating
      concrete form (ICF) products for the building industry in Saudi Arabia. Because
      of lengthy and unexpected delays by the potential purchaser, we are evaluating
      whether or not to continue with this agreement or seek other purchasers of
      the
      equipment. Envirotech expanded its product line by
      securing the master distribution rights for the Middle East for a gas-imaging
      product used in oilfield and refining operations that has been approved for
      testing by ARAMCO, the
      Saudi
      government oil company. ARAMCO completed the field trials to test this equipment
      in during the third quarter.




25


During
      2007, Envirotech, as a distributor, introduced an organic supplement designed
      to
      increase crop yield to a major Saudi Arabian farming operation, which completed
      the purchase of an initial order for filed trials during the third quarter.
      Envirotech received commission revenue of $22,000 associated with this
      purchase.





We
      have
      withdrawn from the Indonesia market. Our decision was based on the additional
      expenses we
      would
      incur to meet the new requirement of Pertamina (the government-owned oil
      company), that our processing equipment be moved off the refinery property.
      We
      are currently evaluating whether to redeploy the processing equipment or sell
      it
      to a third party.





Our
      construction technology activities were conducted by our wholly owned
      subsidiary, Delta Technologies, Inc. (“Technologies”). In August 2005,
      Technologies acquired certain intellectual property and filed a patent
      application for a new insulating concrete wall forming (ICF) system, called *Delta
      Wall* .
      During
      the second quarter of 2008, we elected not to incur the additional expense
      required to pursue the *Delta
      Wall* patent
      application and are developing a strategy to exit
      this
      business segment.




LIQUIDITY





At
      September 30, 2008 we had a working capital surplus of $336,620, compared with
      a
      surplus of $5,639,468 at December 31, 2007. This decrease at September 30,
      2008
      is a result of a decrease in current investments of approximately $3,453,000
      and
      an increase in current liabilities of approximately $1,850,000.




ASSETS





At
      September 30, 2008, we had total assets of $2,635,161, compared to total assets
      of $7,009,020
      at December 31, 2007. The decrease in total assets was primarily due to the decrease
      in current assets of approximately $3,453,000 and a decrease in investments
      of
      $1,130,000.




CRITICAL
      ACCOUNTING ISSUES





The
      Company's discussion and analysis of its financial condition and results of operations
      are based upon the Company's financial statements, which have been prepared
      in accordance with accounting principles generally accepted in the United
      States of America. The preparation of the financial statements requires the
      Company to make estimates and judgments that affect the reported amount of assets,
      liabilities, and expenses, and related disclosures of contingent assets and
      liabilities. On an on-going basis, the Company evaluates its estimates, including
      those related to intangible assets, income taxes and contingencies and litigation.
      The Company bases its estimates on historical experience and on various
      assumptions that are believed to be reasonable under the circumstances, the
      results of which form the basis for making judgments about carrying values of
      assets
      and liabilities that are not readily apparent from other sources. Actual
      results may differ from these estimates under different assumptions or conditions.





Other
      Matters





Accounting
      Pronouncements




In
      March
      2008, the FASB issued SFAS No. 161 “Disclosures
      about Derivative Instruments and Hedging Activities,” an amendment of FASB
      Statement No. 133 (“SFAS No. 161”). The new standard is intended to improve
      financial reporting about derivative instruments and hedging activities by
      requiring enhanced disclosures to enable investors to better understand their
      effects on an entity’s financial position, financial performance and cash flows.
      It is effective for financial statements issued for fiscal years and interim
      periods beginning after November 15, 2008. The Company does not believe that
      SFAS No. 161 will have a material impact on its financial
      statements.


26





In
      May
      2008, the FASB issued SFAS No. 162, “The Hierarchy of Generally Accepted
      Accounting Principles” (“SFAS No. 162”). SFAS No. 162 identifies the sources of
      accounting principles and the
      framework for selecting the principles used in the preparation of financial
      statements of nongovernment entities that are presented in conformity with
      generally accepted accounting principles (GAAP)in the United States. This
      Statement is effective sixty days following the SEC’s
      approval of the Public Company Accounting Oversight Board amendments to AU
      Section 411, “The
      Meaning of Present Fairly in Conformity with Generally Accepted Accounting
      Principles.” The Company is currently evaluating the potential impact, if any,
      of the adoption of SFAS No.162 on
      its
      financial statements.





In
      February 2008, the FASB issued FASB Staff Position SFAS 157-1, “Application
      of SFAS No. 157 to SFAS No. 13 and Its Related Interpretative Accounting
      Pronouncements that Address Leasing Transactions” (“FSP SFAS 157-1”) and FASB
      Staff Position SFAS 157-2, “Effective Date of SFAS No. 157” (“FSP SFAS
      157-2”). FSP SFAS 157-1 excludes SFAS No. 13 and its related interpretive
      accounting pronouncements that address leasing transactions from the
      requirements of SFAS No. 157, with the exception of fair value measurements
      of
      assets and liabilities recorded as a result of a lease transaction but measured
      pursuant to other pronouncements within the scope of SFAS No. 157. FSP SFAS
      157-2 delays the effective date of SFAS No. 157 for all nonfinancial assets
      and
      nonfinancial liabilities, except those that are recognized or disclosed at
      fair
      value in the financial statements on a recurring basis (at least annually).
      FSP
      SFAS 157-1 and FSP SFAS 157-2 became effective for the Company upon adoption
      of
      SFAS No. 157 on January 1, 2008. The
      Company will provide the additional disclosures required relating to the fair
      value measurement of nonfinancial assets and nonfinancial liabilities when
      it
      fully implements SFAS No. 157 on January 1, 2009, as required, and does not
      believe they will have a significant impact on its financial
      statements.




FOREIGN
      CURRENCY TRANSLATION





The
      functional currency for some foreign operations is the local currency. Assets
      and liabilities of foreign operations are translated at balance sheet date
      rates of exchange and income, expense and cash flow items are translated at the
      average exchange rate for the period. Translation adjustments in future periods
      will be recorded in Other Comprehensive Income. The translation gains or losses
      were not material for the periods ended September 30, 2008 and
      2007.





GOODWILL
      AND OTHER INTANGIBLES





SFAS
      No.
      142, "Goodwill and Other Intangible Assets,” specifies the financial accounting and
      reporting for acquired goodwill and other intangible assets. Goodwill and
      intangible assets
      that have indefinite useful lives are not amortized but rather they are tested at
      least
      annually for impairment unless certain impairment indications are
      identified.




**ITEM
      3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
      RISK.**





We
      are
      primarily exposed to foreign currency risk, interest rate risk and commodity
      price risk.





Foreign
      Currency Risk - Our financial results could be affected by factors such as
      changes in foreign currency exchange rates or, weak economic conditions in
      foreign markets. Because our revenue is reported in U.S. dollars, fluctuating
      exchange rates of the local currency, when converted into U.S. dollars, may
      have
      an adverse impact on our revenue and income. We have not hedged foreign
      currency exposures related to transactions denominated in currencies other
      than
      U.S. dollars. We do not engage in financial transactions for trading or
      speculative purposes.





Interest
      Rate Risk - Interest rate risk refers to fluctuations in the value of a security
      resulting from changes in the general level of interest rates. Investments
      that
      are classified as
      cash
      and cash equivalents have original maturities of three months or less. Interest
      income is
      sensitive to changes in the general level of U.S. interest rates. Although
      we
      have significant short-term investments, due to the short-term nature of our
      investments, we believe that there is
      not a
      material risk exposure.





Commodity
      Price Risk - With operations in the energy sector, our results will be dependent
      on the pricing of energy commodities.


27


**ITEM
        4T. CONTROLS AND PROCEEDURES**
  a.
        Disclosure controls and procedures.


As
      of the
      end of the Company's most recently completed fiscal quarter (the fourth fiscal quarter
      in the case of an annual report) covered by this report, the Company carried out
      an
      evaluation, with the participation of the Company's management, including the Company's
      Principal Executive Officer and Chief Financial Officer, of the effectiveness of
      the
      Company's disclosure controls and procedures pursuant to Securities Exchange Act
      Rule
      13a-15. Based upon that evaluation, the Company's Principal Executive Officer and
      Chief
      Financial Officer concluded that the Company's disclosure controls and procedures
      are effective in ensuring that information required to be disclosed by the
      Company in the reports that it files or submits under the Securities Exchange
      Act is
      recorded, processed, summarized and reported, within the time periods specified
      in the
      SEC's
      rules and forms.




b.
      Changes in internal controls over financial reporting.


There
      have been no changes in the Company's internal controls over financial reporting that
      occurred during the Company's last fiscal quarter to which this report relates that
      have
      materially affected, or are reasonably likely to materially affect, the Company's
      internal control over financial reporting.




**PART
      II—OTHER INFORMATION**




**Item
      1.**  **LEGAL
      PROCEEDINGS.**





On
      September 16, 2008, the Company was notified of a complaint filed with the
      Pennsylvania Department of Labor & Industry by its former President and CEO
      alleging non-payment of wages in the amount of $53,271. The Company also
      received notice of a similar complaint filed by a former employee alleging
      non-payment of wages in the amount of $17,782. In October 2008, the Company
      entered into repayment agreements with both of the former
      employees.




**ITEM
      1A.**  **RISK
      FACTORS.**





There
      are
      material changes in the risk factors previously disclosed in our 10-KSB for
      the
      year ended December 31, 2007, which additional risk factors are relevant to
      and
      should be considered in connection with an evaluation of our energy and
      alternative energy businesses related to the acquisition of the South American
      Hedge Fund. These additional risks are as follows.




*Governmental
      actions and political instability in Argentina may affect our results of
      operations.*





We
      operate oil and gas producing properties in Argentina, which is current
      experiencing economic, currency and political instability. Our investments
      in
      the energy sector in Argentina subject
      us to the risks of disruptions or delays in shipments and currency
      risks .
      As a
      result, we would face risks of:





Ø
            changes
                in laws and regulations, import, export and use of products, environmental
                protection, climate change and energy security, all of which may
                increase
                costs or reduce the demand for our products;Ø
            currency
                fluctuations;Ø
            changes
                in tariffs and taxes;Ø
            political
                and economic instability;Ø
            expropriation
                of our assets and properties; andØ
            refusal
                to extend or grant, or delay in the extension or grant of, energy
                production or development
                contracts.




**ITEM
      2.**  **UNREGISTERED
      SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.**





Not
      applicable.


28




**ITEM
      3.**  **DEFAULTS
      UPON SENIOR SECURITIES.**





Not
      applicable.




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





Not
      applicable.




**ITEM
      5.**  **OTHER
      INFORMATION.**




Prior
      to
      his resignation as President and CEO in July 2008, Peter Russo waived all of
      his
      accrued salary for the period prior to July 2004 in exchange for a cash payment
      from a stockholder.





In
      March
      2008, the Company issued three 8% term notes to private investors in the
      aggregate principal amount of $150,655, with the principal and interest due
      at
      maturity on November 6, 2008. The Company did not repay the notes on the
      maturity date and the lenders have not provided the Company with any written
      notice of default. We are currently negotiating an extension of the maturity
      date with the lenders. If the Company and the lenders do not agree on a mutually
      acceptable extension of the maturity date, then the Company may receive a notice
      of default from the lenders.




**ITEM
      6. EXHIBITS.**





10.37a
            Amendment
                dated as of September 2, 2008 to 6% Promissory Note in the principal
                amount of$21,000.





10.37b
            Amendment
                dated as of September 18, 2008 to 6% Promissory Note in the principal
                amount of$100,000.





10.38a
            Amendment
                dated as of October 8, 2008 to 6% Promissory Note in the principal
                amount
                of$20,000.





10.39a
            Amendment
                dated as of October 10, 2008 to 6% Promissory Note in the principal
                amount
                of$9,550.





10.40a
            Amendment
                dated as of November 4, 2008 to 6% Promissory Note in the principal
                amount
                of$16,900.





10.42
            6%
                Promissory Note dated as of July 7, 2008 by Delta Mutual, Inc. to
                Security
                Systems International, Inc. in the principal amount of
                $22,413.




10.43
            6%
                Promissory Note dated as of September 18, 2008 by Delta Mutual, Inc.
                to
                Egani, Inc.in
                the principal amount of $13,350.





10.44
            6%
                Promissory Note dated as of September 19, 2008 by Delta Mutual, Inc.
                to
                SecuritySystems
                International, Inc. in the principal amount of
                $16,650.





10.45
            6%
                Promissory Note dated as of October 3, 2008 by Delta Mutual, Inc.
                to
                Santiago Peraltain
                the principal amount of $10,000.





10.46
            6%
                Promissory Note dated as of October 22, 2008 by Delta Mutual, Inc.
                to
                Security Systems International, Inc. in the principal amount of
                $28,500.





31.1
            Certification
                of Principal Executive Officer Pursuant to Section 302 of TheSarbanes
                Oxley Act of 2002.





31.2
            Certification
                of Chief Financial Officer Pursuant to Section 302 of TheSarbanes
                Oxley Act of 2002.





32.1
            Certification
                of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350
                asadopted
                pursuant to Section 906 of the Sarbanes-Oxley Oxley Act of
                2002.





32.2
            Certification
                of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350 asadopted
                pursuant to Section 906 of the Sarbanes-Oxley Oxley Act of
                2002.


29




SIGNATURES




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




DELTA
                MUTUAL, INC.BY:
            /s/
                Malcolm W. ShermanMalcolm
                W. ShermanExecutive
                Vice President andPrincipal
                Executive Officer




Dated:
      November 18, 2008




EXHIBIT
      INDEX




10.37a
            Amendment
                dated as of September 2, 2008 to 6% Promissory Note in the principal
                amount of$21,000,
                filed herewith.





10.37b
            Amendment
                dated as of September 18, 2008 to 6% Promissory Note in the principal
                amount of$100,000,
                filed herewith.





10.38a
            Amendment
                dated as of October 8, 2008 to 6% Promissory Note in the principal
                amount
                of$20,000,
                filed herewith.





10.39a
            Amendment
                dated as of October 10, 2008 to 6% Promissory Note in the principal
                amount
                of$9,550,
                filed herewith.





10.40a
            Amendment
                dated as of November 4, 2008 to 6% Promissory Note in the principal
                amount
                of$16,900,
                filed herewith.





10.42
            6%
                Promissory Note dated as of July 7, 2008 by Delta Mutual, Inc. to
                Security
                SystemsInternational,
                Inc. in the principal amount of $22,413, filed
                herewith.





10.43
            6%
                Promissory Note dated as of September 18, 2008 by Delta Mutual, Inc.
                to
                Egani, Inc.in
                the principal amount of $13,350, filed
                herewith.





10.44
            6%
                Promissory Note dated as of September 19, 2008 by Delta Mutual, Inc.
                to
                SecuritySystems
                International, Inc. in the principal amount of $16,650, filed
                herewith.





10.45
            6%
                Promissory Note dated as of October 3, 2008 by Delta Mutual, Inc.
                to
                Santiago Peraltain
                the principal amount of $10,000, filed
                herewith.





10.46
            6%
                Promissory Note dated as of October 22, 2008 by Delta Mutual, Inc.
                to
                Security SystemsInternational,
                Inc. in the principal amount of $28,500, filed
                herewith.




31.1
            Certification
                of Principal Executive Officer Pursuant to Section 302 of theSarbanes-Oxley
                Act of 2002, filed herewith.




31.2
            Certification
                of Chief Financial Officer Pursuant to Section 302 of theSarbanes-Oxley
                Act of 2002, filed herewith.




32.1
            Certification
                of Principal Executive Officer Pursuant to 18 U.S.C. Section1350,
                as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of2002,
                filed herewith.




32.2
            Certification
                of Chief Financial Officer Pursuant to 18 U.S.C. Section1350,
                as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of2002,
                filed herewith.




30