FORM 10-QSB



SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C.

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

For the quarterly period ended September 30, 2003

OR

[ ]  	   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to _________________

Commission File Number  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. Employer

incorporation or organization)                   		Identification No.)

11 NORTH BRANCH STREET, SELLERSVILLE, PA  18960

(215) 258-2800

(Address and telephone number, including area code, of

registrant's principal executive office)





(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

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



At November 10, 2003, there were  8,643,688 shares of Common Stock, $.0001 par value, outstanding.

DELTA MUTUAL, INC.

INDEX

Page

Part I.	Financial Information							  1

Item 1.	Financial Statements

Balance Sheets as of September 30,

2003 (unaudited) and December 31, 2002			  2

Statements of Operations for the

Nine and Three Months Ended September 30,

2003 and 2002 (unaudited) and

the Period November 17, 1999 (Date of

Formation) through September 30, 2003			  3

Statements of Cash Flows for the Nine and Three

Months Ended September 30, 2003 and 2002

(unaudited) and the Period November 17,

1999 (Date of Formation) through September 30,

2003									4 - 5

Notes to Financial Statements (unaudited)			6 - 12

Item 2.	Management's Discussion and Analysis

of Financial Condition and Results of Operations		13-19

Item 14.	Controls and Procedures						  19

Part II.	Other Information

Item 1.	Legal Proceedings							   20

Item 2.	Changes in Securities						   20

Item 3.	Defaults upon Senior Securities					   20

Item 4.	Submission of Matters to a Vote of Security Holders		   20

Item 5.	Other Information							   20

Item 6.	Exhibits and Reports on Form 8-K				   20

Signatures										  21











PART I.	FINANCIAL INFORMATION

Item 1.	Financial Statements

Certain information and footnote disclosures required under generally accepted accounting principles in the United States of America have been condensed or omitted from the following financial statements pursuant to the rules and regulations of the Securities and Exchange Commission. It is suggested that the following financial statements be read in conjunction with the year-end financial statements and notes thereto included in the Company's Annual Report on Form 10-KSB for the year ended December 31, 2002.



The results of operations for the three and nine month periods ended September 30, 2003 and 2002 are not necessarily indicative of the results to be expected for the entire fiscal year or for any other period.

|DELTA MUTUAL INC.                         |                                                     |                  |  
|----------------------------------------- | --------------------------------------------------- | ---------------- | -
|(A DEVELOPMENT STAGE COMPANY)             |                                                     |                  |  
|BALANCE SHEET                             |                                                     |                  |  
|                                          |                                                     |                  |  
|ASSETS                                    |                                                     |                  |  
|                                          |                                                     |                  |  
|                                          |                                                     | September 30,    |  
|                                          |                                                     | 2003             |  
|                                          |                                                     | (Unaudited)      |  
|Current Assets:                           |                                                     |                  |  
|                                          | Cash                                                | $         10,134 |  
|                                          | Due from Ceva International Inc.                    | 250,000          |  
|                                          | Total Current Assets                                | 260,134          |  
|                                          |                                                     |                  |  
|Fixed assets - net                        | 7,994                                               |                  | -
|                                          |                                                     |                  |  
|Investments                               | 157,432                                             |                  |  
|                                          |                                                     |                  |  
|Other assets                              | 40,650                                              |                  | -
|                                          |                                                     |                  |  
|                                          | TOTAL ASSETS                                        | $       466,210  |  
|LIABILITIES AND STOCKHOLDERS'  DEFICIENCY |                                                     |                  |  
|Current Liabilities:                      |                                                     |                  |  
|                                          | Accounts payable                                    | $       229,585  |  
|                                          | Accrued expenses                                    | 136,295          |  
|                                          | Loan from officer/stockholders                      | 283,879          |  
|                                          | Loan from related parties                           | 22,000           |  
|                                          | Total Current Liabilities                           | 671,759          |  
|                                          |                                                     |                  |  
|Commitments and Contingencies             |                                                     |                  |  
|                                          |                                                     |                  |  
|Stockholders' Deficiency:                 |                                                     |                  |  
|                                          | Common stock $0.0001 par value - authorized         |                  |  
|                                          | 20,000,000 shares; 8,643,688 and 857,000            |                  |  
|                                          | shares issued and outstanding at September 30, 2003 |                  |  
|                                          | and  December 31, 2002, respectively                | 864              |  
|                                          | Additional paid-in-capital                          | 1,174,792        |  
|                                          | Deficit accumulated during                          |                  |  
|                                          | the development stage                               | (1,381,205)      |  
|                                          | Total Stockholders' Deficiency                      | (205,549)        |  
|                                          | TOTAL LIABILITIES AND                               |                  |  
|                                          | STOCKHOLDERS'  DEFICIENCY                           | $       466,210  |  
|                                          |                                                     |                  |  

See notes to financial statements.



|DELTA MUTUAL INC.             |                            |                                 |                                  |                 |  |                  |  |                 |  |                     |             
|----------------------------- | -------------------------- | ------------------------------- | -------------------------------- | --------------- |  | ---------------- |  | --------------- |  | ------------------- | ------------
|(A DEVELOPMENT STAGE COMPANY) |                            |                                 |                                  |                 |  |                  |  |                 | 
|STATEMENT OF OPERATIONS       |                            |                                 |                                  |                 |  |                  |  |                 |  |                    
|(Unaudited)                   |                            |                                 |                                  |                 |  |                  |  |                 |  |                     |             
|                              |                            |                                 |                                  |                 |  |                  |  |                 |  |                     |             
|                              |                            |                                 |                                  |                 |  |                  |  |                 |  | Period from         |             
|                              |                            |                                 |                                  |                 |  |                  |  |                 |  | November 17, 1999  
|                              |                            |                                 |                                  |                 |  |                  |  |                 |  | (Date of Formation)
|                              |                            | Nine Months Ended September 30, | Three Months Ended September 30, | through         | 
|                              |                            | 2003                            |                                  | 2002            |  | 2003             |  | 2002            |  | September 30, 2003 
|                              |                            |                                 |                                  |                 |  |                  |  |                 |  |                     |             
|Costs and Expenses            |                            |                                 |                                  |                 |  |                  |  |                 |  |                     |             
|                              | General and administrative |                                 |                                  |                 |  |                  |  |                 |  |                     |             
|                              | expenses                   | $     805,436                   |                                  | $    151,135    |  | $     241,425    |  | $        2,134  |  |                     | $  1,345,328
|                              | Interest expense           | 35,877                          |                                  | -               |  | 3,318            |  | -               |  |                     | 35,877      
|                              |                            | 841,313                         |                                  | 151,135         |  | 244,743          |  | 2,134           |  |                     | 1,381,205   
|                              |                            |                                 |                                  |                 |  |                  |  |                 |  |                     |             
|                              | Net loss                   | $    841,313                    |                                  | $    151,135    |  | $     244,743    |  | $       2,134   |  |                     | $  1,381,205
|                              |                            |                                 |                                  |                 |  |                  |  |                 |  |                     |             
|                              | Loss per common share -    |                                 |                                  |                 |  |                  |  |                 |  |                     |             
|                              | basic and diluted          | $           0.14                |                                  | $          2.71 |  | $           0.03 |  | $          0.04 |  |                     |             
|                              |                            |                                 |                                  |                 |  |                  |  |                 |  |                     |             
|                              | Weighted average number of |                                 |                                  |                 |  |                  |  |                 |  |                     |             
|                              | common shares outstanding- |                                 |                                  |                 |  |                  |  |                 |  |                     |             
|                              | basic and diluted          | 5,987,573                       |                                  | 55,700          |  | 8,236,079        |  | 55,700          |  |                     |             
|                              |                            |                                 |                                  |                 |  |                  |  |                 |  |                     |             





































See notes to financial statements.





|(A DEVELOPMENT STAGE COMPANY)          |                             |                                 |                         |          |  |                         |          
|-------------------------------------- | --------------------------- | ------------------------------- | ----------------------- | -------- |  | ----------------------- | ---------
|STATEMENT OF CASH FLOWS                |                             |                                 |                         |          |  |                         |          
|(Unaudited)                            |                             |                                 |                         |          |  |                         |          
|                                       | .                           |                                 |                         |          |  |                         |          
|                                       |                             |                                 |                         |          |  | Period                  |          
|                                       |                             |                                 |                         |          |  | November 17, 1999       |          
|                                       |                             |                                 |                         |          |  | (Date of Formation)     |          
|                                       |                             | Nine Months Ended September 30, |                         | through  | 
|                                       |                             | 2003                            |                         | 2002     |  | September 30, 2003     
|                                       |                             |                                 |                         |          |  |                         |          
|activities:                            |                             |                                 |                         |          |  |                         |          
|                                       |                             |                                 |                         |          |  |                         |          
|Net loss                               | $         (841,313)         |                                 | $         (151,135)     |          |  | $         (1,381,205)   |          
|Adjustment to reconcile net loss to    |                             |                                 |                         |          |  |                         |          
|net cash used in operating activities: |                             |                                 |                         |          |  |                         |          
|                                       | Depreciation                | 798                             |                         |          |  |                         | 798      
|                                       | Non cash compensation       | 260,500                         |                         |          |  |                         | 350,169  
|                                       | Bad debt                    | -                               |                         | 96,625   |  |                         | 96,625   
|                                       | Changes in operating assets |                                 |                         |          |  |                         |          
|                                       | and liabilities:            | 253,998                         |                         | 23,552   |  |                         | 264,689  
|                                       |                             | (326,017)                       |                         | (30,958) |  |                         | (668,924)
|                                       |                             |                                 |                         |          |  |                         |          
|                                       |                             |                                 |                         |          |  |                         |          
|Purchase of fixed assets               | (8,792)                     |                                 | -                       |          |  | (8,792)                 |          
|Advances                               | (157,432)                   |                                 | (30,000)                |          |  | (157,432)               |          
|                                       |                             | (166,224)                       |                         | (30,000) |  |                         | (166,224)
|                                       |                             |                                 |                         |          |  |                         |          
|                                       |                             |                                 |                         |          |  |                         |          
|Proceeds from sale of common stock     | 100,000                     |                                 | -                       |          |  | 140,750                 |          
|Proceeds from loan                     | -                           |                                 | -                       |          |  | 540,744                 |          
|Repayment of loan                      | -                           |                                 | -                       |          |  | (540,744)               |          
|Proceeds from convertible debt         | -                           |                                 | -                       |          |  | 250,000                 |          
|Proceeds from officer and stockholder  | 377,504                     |                                 | 24,348                  |          |  | 432,532                 |          
|Proceeds from related party            | 22,000                      |                                 |                         |          |  | 22,000                  |          
|Net cash provided by                   |                             |                                 |                         |          |  |                         |          
|financing activities                   | 499,504                     |                                 | 24,348                  |          |  | 845,282                 |          
|                                       |                             |                                 |                         |          |  |                         |          
|Net increase (decrease) in cash        | 7,263                       |                                 | (36,610)                |          |  | 10,134                  |          
|Cash - Beginning of period             | 2,871                       |                                 | 36,641                  |          |  | -                       |          
|Cash - Ending of period                | $            10,134         |                                 | $                    31 |          |  | $                10,134 |          
|                                       |                             |                                 |                         |          |  |                         |          





|DELTA MUTUAL INC.              |                                       |                                 |         |                         |  |                     |                             
|------------------------------ | ------------------------------------- | ------------------------------- | ------- | ----------------------- |  | ------------------- | ----------------------------
|(A DEVELOPMENT STAGE COMPANY)  |                                       |                                 |         |                         |  |                    
|STATEMENT OF CASH FLOWS        |                                       |                                 |         |                         |  |                     |                             
|(Unaudited)                    |                                       |                                 |         |                         |  |                     |                             
|                               | .                                     |                                 |         |                         |  |                     |                             
|                               |                                       |                                 |         |                         |  | Period              |                             
|                               |                                       |                                 |         |                         |  | November 17, 1999  
|                               |                                       |                                 |         |                         |  | (Date of Formation)
|                               |                                       | Nine Months Ended September 30, | through |                        
|                               |                                       | 2003                            |         | 2002                    |  | September 30, 2003 
|Non-cash financing activities: |                                       |                                 |         |                         |  |                     |                             
|                               | Conversion of debt to paid-in-capital | $           40,000              |         | $         208,630       |  |                     | $              327,374      
|                               | Contribution of note receivable       | $         250,000               |         | $                     - |  |                     | $              458,630      
|                               | Forgiveness of debt to                |                                 |         |                         |  |                     |                             
|                               | shareholder                           | $           93,625              |         | $                     - |  |                     | $              148,653      
|                               | Forgiveness of debt from officer/     |                                 |         |                         |  |                     |                             
|                               | shareholder                           | $         100,000               |         | $                     - |  |                     | $             100,000       
|                               | Assumption of note receivable by      |                                 |         |                         |  |                     |                             
|                               | officer/shareholder                   | $       (100,000)               |         | $                     - |  |                     | $           (100,000)       
|                               |                                       |                                 |         |                         |  |                     |                             
|                               | Supplementary information:            |                                 |         |                         |  |                     |                             
|                               | Cash paid during year for:            |                                 |         |                         |  |                     |                             
|                               | Interest                              | $                     -         |         | $                     - |  |                     | $                          -
|                               | Income taxes                          | -                               |         | $                     - |  |                     | $                          -
|                               |                                       |                                 |         |                         |  |                     |                             
|                               | Changes in operating assets and       |                                 |         |                         |  |                     |                             
|                               | liabilities consists of:              |                                 |         |                         |  |                     |                             
|                               | Increase in interest receivable       | $                     -         |         | $           (6,625)     |  |                     | $                          -
|                               | Decrease in prepaid expenses          | -                               |         | 8,000                   |  |                     | -                           
|                               | (Increase) decrease in other assets   | (650)                           |         | -                       |  |                     | (650)                       
|                               | Increase in accounts payable          |                                 |         |                         |  |                     |                             
|                               | and accrued expenses                  | 254,648                         |         | 22,177                  |  |                     | 265,339                     
|                               |                                       | $         253,998               |         | $           23,552      |  |                     | $              264,689      
|                               |                                       |                                 |         |                         |  |                     |                             











See notes to financial statements.

DELTA MUTUAL INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO FINANCIAL STATEMENTS

(Unaudited)



1. Basis of Presentation and Accounting Policies

The balance sheet as of September 30, 2003 and the statements of operations and cash flows for the periods presented herein have been prepared by Delta Mutual, Inc. (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 balance sheet as of December 31, 2002 was derived from audited financial statements.



The Company's financial statements for the period ended September 30, 2003 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 the commencement of its planned principal operations.  At September 30, 2003 operations had not yet commenced and no revenue has been derived; accordingly the Company is considered a development stage enterprise.  There is no assurance the Company will achieve a profitable level of operations.



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 the new business.

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 development activities and complete the proposed joint ventures.  However, there is no assurance that additional capital will be obtained and the joint ventures 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.

















Organization



The Company was incorporated under the name Delta Mutual, Inc. on November 17, 1999 in the State of Delaware. The Company is a development stage company and at that time prior Company management intended to provide mortgage services through the Internet to borrowers having substandard credit. Prior management intended to offer varied levels of mortgage and lending services by capitalizing on the popularity of Internet based financial services companies and secured the domain name rights to the name deltamutual.com.

During its first year of existence, prior management believed that it would be able to fund the Company's  intended operations through the sale of its common stock. The Company's common stock is quoted on the Over-the-Counter Electronic Bulletin Board under the symbol "DLTM". At the time of its formation, companies with Internet based businesses were treated favorably in the capital markets. In 2000, however, the market for the stock of Internet based businesses deteriorated substantially and many such companies went out of business because they were unable to generate sufficient revenues and were unable to raise additional capital.

From inception through December 31, 2002, the Company raised a limited amount of capital through the sale of common stock: during the period from inception through December 31, 2001, it raised $10,750 through such private placements, and raised $30,000 in December, 2002 through an investment by a single investor. These funds were not sufficient to capitalize any of the Company's business plans.

In April 2001, Kelcon, Inc. ("Kelcon"), a company newly organized for the purpose by Kenneth A. Martin, acquired a controlling interest (450,000 shares) in Delta with a view to acquiring the assets of Enterprises Solutions, Inc. ("Enterprises"). Kelcon's Delta shares were acquired from two of Delta's directors, James E. Platek (300,000 shares) and Bonnie Cunningham (150,000), for which Kelcon paid a total of $450,000. Mr. Martin supplied $75,000 of the purchase price for Delta's shares, and an overseas investor who had previously invested in Enterprises supplied $375,000, for which Kelcon issued a 20% promissory note due October 31, 2001. The investor had the right to convert $100,000 principal amount of the note into 100,000 shares of Kelcon's Delta stock. As part of this transaction, Mr. Platek, Ms. Cunningham, and Delta's third director, Robert Franz, resigned and appointed Mr. Martin as Delta's sole director. Mr. Martin then appointed Mr. Sailor H. Mohler and Mr. Phillip Chung as additional directors.

In May 2000, prior Company management entered into an Agreement of Sale pursuant to which Delta was to acquire substantially all Enterprises' assets in exchange for approximately 11,068,307 shares of Delta's common stock. In June 2001, prior Company management prepared and filed with the Securities and Exchange Commission a registration statement for the shares to be issued to Enterprises' stockholders, with a view to consummating the acquisition.



Due to the death of Enterprises' president, the Agreement of Sale with Enterprises was terminated and the Company's registration statement was withdrawn. Shortly thereafter, Messrs. Sailor H. Mohler and Phillip Chung resigned as directors of the Company.

In August, 2002, prior Company management executed a letter of intent to merge with Helvetia Pharmaceuticals, Inc. After a due diligence period, prior Company management terminated negotiations and that proposed transaction was never consummated.

Change of Control

In November, 2002, Kelcon, Inc. sold its 450,000 Company common shares to Mr. Gary T. Robinson, a New York businessman, for $275,000 in a private transaction. This transaction represented a "Change in Control" of our Company. As part of this transaction, on March 10, 2003, Kenneth A. Martin appointed Mr. Gary Robinson and Mr. Peter Russo to serve as members of the Board of Directors, with Mr. Robinson being appointed as Chief Executive Officer and Chairman of the Board of Directors, while Mr. Russo was appointed as President and Secretary. Thereafter, on March 11, 2003, Mr. Martin resigned as an officer and director of the Company. On June 13, 2003 Mr. Robinson resigned as Chief Executive Officer and Mr. Russo was appointed Chief Executive Officer as of June 14, 2003.

Business Plan

Since the change in control, new Company management has embarked upon a new mission and strategic direction, intending to establish a series of subsidiaries and joint ventures, primarily for the establishment of business operations focusing upon providing technology and services in the environmental remediation industry and utilizing certain construction technologies to participate in select housing development projects. .

Central and Eastern Europe - Marketplace

In a very detailed report issued in the year 2000 by the Danish Ministry of Environment of the Danish Cooperation for Environment in Eastern Europe (DANCEE), identified pollution areas in twenty-one countries spanning hundreds of thousands of kilometers. The potential market value of remediating polluted sites, numbers in the billions of dollars. The extensive pollution problems found in Central and Eastern Europe are expected to require extensive environmental effort for several decades.

Since the collapse of the Former Soviet Union, the European countries that were part of the Soviet Bloc have aspired to join the European Union. Membership is the primary political driver for these countries in this region and these countries are ultimately expected to spend some one hundred twenty billion dollars to comply with the European Union's standards. The reality of the economic and political considerations leads governments of these countries to place environmental concerns and enforcement of environmental laws in a low priority.

The technologies available for certain site remediation projects have been available in the United States for many years. We see a growing site remediation marketplace in Central and Eastern Europe. We intend to enter into strategic alliances and obtain the necessary licenses to establish an environmental remediation business in Central and Eastern Europe.





The Company intends to license certain remediation technologies and align our business with certain technology partners. Although the Company has held discussions and negotiations with various parties in connection with our business plan in this marketplace, as of the date of this filing, it has only executed one technology license agreement, described below, in furtherance of its business plan.

The Company entered into a letter of intent with CEVA International, Inc., a company whose primary business is the provision of environmental services and technologies to public and private entities in Central and Eastern Europe.  After the period within which the companies had agreed to cooperate with each other in the performance of due diligence investigations aimed at the opportunity to purchase certain assets, licenses and/or permits, the Company decided not to pursue this opportunity.  As stipulated in the letter of intent, the Company exercised the option to terminate the activities.

On April 2, 2003, the Company entered into a technology license agreement with Joseph Friedman and Sons, International Inc. ("Friedman"). The license territory is all of the republics of the former Soviet Union where Friedman has business experience. This license agreement permits the licensee, Friedman, to utilize any and all technologies, licenses and permits acquired by the Company to develop environmental remediation projects and provides the Company with the opportunity to participate in all projects identified by this licensee.  The Company issued 288,368 shares of its restricted common stock, representing a value of $40,000 in consideration of Friedman's execution and delivery of this agreement.  The Company will expense the fee over the life of the agreement.

On May 1, 2003 the Company entered into a joint venture with Ms. I. Turney Zwiebel and Nela Pavaloiu by forming a new company, Delta TP Mediu, SRL in Romania.  The joint venture was organized to primarily pursue the sourcing, treatment and processing of hydro-carbon based and other industrial residuals and, where possible, to create alternative fuels and raw materials for industrial use primarily in Romania.  As of September 30, 2003 the Company advanced $48,432 to the joint venture.

The Company finalized a strategic alliance agreement with ZAFF International LTD, a Saudi Arabia company that holds multiple technology licenses and has strategic relationships with a large number of multi-national companies in areas other than environmental.  The strategic alliance provides for the joint development of an environmental remediation project and programs for the Kingdom of Saudi Arabia.

The United States Government has scheduled a program for disposal of specific military related waste products that require not only specialized disposal facilities, but also state of the art identification and tracking systems. The disposal requirement is the outcome of a number of weapons destruction treaties that are in effect and destruction of obsolete conventional weapons currently in inventory.

The Company has entered into discussions with several U.S.-based entities in the environmental technology field, discussing potential strategic partnerships and alliances.

On March 18, 2003, the Company entered into a letter of intent with Hi-Tech Consulting and Construction, Inc. ("Hi-Tech") to form a joint venture to provide environmental technology services primarily to markets in the Middle East and Africa.  The joint venture company, named Delta Envirotech, Inc., will be based in Virginia and focus on participating in foreign government sponsored pollution remediation projects. The joint venture agreement was concluded May 15, 2003 and Delta-Envirotech, Inc., a Delaware Corporation, was formed.  As of September 30, 2003 the Company advanced $34,000 to the joint venture.

On March 6, 2003, the Company entered into a consulting agreement with M.U.R.G. LLC ("M.U.R.G.), a Florida based real estate consulting firm for advisory services in connection with the proposed construction of approximately 500 homes in Puerto Rico by the company. We advanced M.U.R.G. $100,000 against its future commission compensation and M.U.R.G. delivered to us its promissory note payable on demand with interest accruing at the rate of 5% per annum. Mr. Gary Robinson, former Chief  Executive Officer and our current Chairman of our Board of Directors advanced a $100,000 loan to us that permitted us to make the advance to M.U.R.G.  The project did not go forward and on June 16, 2003 Mr. Robinson agreed to assume the promissory note from M.U.R.G. and eliminate the loan amount due him from the Company.

On April 25, 2003, the Company entered into a letter of intent with Ms. Jamie Burrows and Burrows Consulting, Inc., a Texas based corporation (collectively referred to as "Burrows") to form a joint venture company to be known as Delta Specialty Services. Delta Specialty Services will be based in Houston, Texas and will engage in providing waste remediation technologies and services on a project basis to the United States Government, foreign governments and their respective departments, agencies, political sub-divisions as well as to private entities around the world.  As of September 30, 2003 the Company advanced $75,000 to the joint venture.



2.	STOCK-BASED COMPENSATION



The Company accounts for equity-based compensation issued to employees in accordance with Accounting Principles Board ("ABP") Opinion No. 25 "Accounting for Stock Issued to Employees".  ABP No. 25 requires the use of the intrinsic value method, which measures compensation cost as the excess, if any, of the quoted marked price of the stock at the measurement date over the amount an employee must pay to acquire the stock.  The Company makes disclosures of pro forma net earnings and earnings per share as if the fair-value-based method of accounting had been applied as required by SFAS No. 123 "Accounting for Stock-Based Compensation-Transition and Disclosure.



The Company accounts for equity-based compensation to non-employees based on the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable.  For the nine months ended September 30, 2003 and 2002, the Company recorded expenses of $260,500 and $100,250, respectively, and for the three months ended September 30, 2003 and 2002 expenses amounted to $-0- and $-0-, respectively.  The common stock for these  services were issued in 2003.



3.	DUE FROM CEVA INTERNATIONAL, INC.

On June 17, 2003, the Company and Dr. Louis Rose entered into an agreement whereby Dr. Rose assigned all of his rights, title and interest in a promissory note from CEVA International, Inc. ("CEVA") in the amount of $250,000 to the Company in exchange for an aggregate of 800,000 shares of the Company's common stock.  The note is guaranteed by Gary Robinson, the Company's largest shareholder.  CEVA is currently in default on the note.  If CEVA does not pay the note, the Company will exercise its rights against the guarantor and offset the CEVA note against the payable the Company owes Gary Robinson.











4.	LOSS PER SHARE

Basic loss per common share is computed by dividing net loss by the weighted average number of common shares outstanding during the period.  Diluted earnings (loss) per common share are computed using the weighted average number of common shares and potential common shares outstanding during the period.  For the nine months ended September 30, 2003 and 2002 potential common shares were not used in the computation of diluted loss per common share as their effect would be antidilutive.



1. ACCRUED EXPENSES



|                      | September 30,        | December 31,         
|--------------------- | -------------------- | ---------------------
|                      | 2003                 | 2002                 
|Professional fees     | $              5,000 | $              73,152
|Consulting fees       | 7,500                | 58,344               
|Registration fees     | -                    | 2,355                
|Payroll               | 92,166               | -                    
|Payroll taxes payable | 5,467                | -                    
|Other                 | 26,160               | 13,238               
|                      | $          136,293   | $             147,089







a.	The former president of the Company purchased 300,000 shares of common stock for $33 in November of 1999.  Such shares were issued without registration in reliance on an exemption in federal security laws that permit issuance of stock up to $1 million without registration of the securities.



b.  In April 2001, Kelcon, Inc., a Delaware corporation, purchased 450,000 shares of common stock from former officers of the Company, in a private transaction, effectively changing the ownership of the Company.



c.  During November 2002, Gary Robinson acquired the controlling equity position from Kelcon, Inc. in a private transaction.



1. On December 11, 2002, Cyberlinx Inc. purchased 300,000 restricted shares of the Company's common stock for $30,000 at $.10 per share.
2. On January 9, 2003, the Company and Michael Pisani, entered into an agreement for a promissory note in the amount of $15,000.  The Company issued 50,000 shares of the Company stock in consideration of interest on the promissory note.





















1. f. On January 12, 2003, the Company entered into an agreement with Ken Martin, the Company's former controlling shareholder, to compensate him for past services rendered to the Company in the amount of $12,454, all of which was accrued at December 31, 2002.  The Company issued 30,000 shares of the Company's common stock on Form S-8 registration statement in full payment of the Company's debt.



g. On February 4,2003, the Company and J. Dapray Muir, Esq. ( the Company's previous attorney) entered into an agreement to compensate him for past services rendered to the Company in the amount of $34,669, all of which was accrued at December 31, 2002.  The Company issued 50,000 shares of the Company's common stock on a Form S-8 registration statement in full payment of the Company's debt.



h.  On February 3, 2003, the Company and Peter Russo, an executive of the Company, entered into an agreement to compensate him for past services rendered to the Company in the amount $20,000, all of which was accrued at December 31, 2002.  The Company issued 40,000 shares of the Company's common stock on Form S-8 registration statement in full payment of the Company's debt



i.   On February 10, 2003, the Company and Jerome Kindrachuk, an executive of the Company, entered into an agreement to compensate him for past services rendered to the Company in the amount of $20,000, all of which was accrued at December 31, 2002.  The Company issued 200,000 shares of the Company's common stock in full payment of the Company's debt in February 2003.



j.  On February 13, 2003, the Company registered 2,000,000 shares of the Company's common stock reserved for the Company's 2001 Employee Stock Option Plan.



k.  On April 2, 2003, the Company and Joseph Friedman and Sons International Inc. entered into a license agreement and the Company issued to Friedman 288,368 shares of its restricted common stock valued at $40,000 in consideration of the delivery of the license agreement.



l.  On April 29, 2003, the Company and Peter Russo, the CEO of the Company, entered into an agreement to compensate him in recognition of his commitment for services in the amount of $22,500.  The Company issued 100,000 shares of the Company stock in full payment of this debt.



m.  On April 29, 2003, the Company and Jerry Kindrachuk, an executive of the Company, entered into an agreement to compensate him in recognition of his commitment for services in the amount of $22,500.  The Company issued 100,000 shares of the Company stock in full payment of this debt.



n.  On April 29, 2003 the Company and Steven L. Gray, entered into an agreement to compensate him for past services rendered to the Company in the amount of $50,000.  The Company issued 100,000 shares of the Company stock in full payment of this debt.



o.  On April 29, 2003, the Company and Kevin Forcier, entered into an agreement to compensate him for past services rendered to the Company in the amount of $10,000.  The Company issued 20,000 shares of the Company stock in full payment of this debt.













p.  On April 29, 2003, the Company and T&T Trading of Zurich, Switzerland, entered into an agreement to compensate them for past services rendered in the amount of $50,000.  The Company issued 240,000 shares of the Company stock in full payment of this debt.



q.   On May 12, 2003, the Company and Michael Fasci, entered into an agreement for a promissory note in the amount of $12,000.  The Company issued 50,000 shares of the Company stock in consideration of interest on the promissory note.



r.  On June 17, 2003, the Company and Dr. Louis Rose entered into an agreement whereby Dr. Rose assigned all of his rights, title and interest in exchange for a certain promissory note to the Company in the amount of $250,000 (the CEVA note) for an aggregate of 800,000 shares of the Company common stock.



s.  On June 30, 2003, the Company and Michael Kahn, entered into an agreement to compensate him for past services rendered to the Company in the amount of $15,000.  The Company issued 37,000 shares of the Company stock in full payment of this debt.



t.  On June 30, 2003, the Company and Jeffrey Miller, entered into an agreement to compensate him for past services rendered to the Company in the amount of $1,500.  The Company issued 3,000 shares of the Company stock in full payment of this debt.



u.  On July 1, 2003, the Company entered into an agreement with Gary Robinson, the Company's major stockholder and former CEO, to compensate him for past services rendered to the Company in the amount of $93,625, the fair value of the services, which was accrued at June 30, 2003.  The Company will issue 280,000 shares of the Company's common stock on Form S-8 registration statement in full payment of the Company's debt.



1. RELATED PARTY TRANSACTIONS

a.	On January 7, 2003, the Company borrowed $15,000 from Michael Pisani ("Pisani") (a stockholder) of the Company.  Pisani received 50,000 common shares of the Company's common stock which represented the payment of interest accruing on the unpaid principal balance through January 27, 2003, the maturity date.  The Company recorded interest expenses of $15,000 in 2003 for the issuance of the shares.



The Company did not pay the outstanding balance on the maturity date and must pay monthly interest of one (1%) percent to Pisani.  On April 7, 2003, the Company repaid Pisani $5,000 against the outstanding balance.  The Company recorded interest expense of $16,200 and $300 for the nine and three months ended September 30, 2003, respectively.



1. The Company has a revolving line of credit with Gary Robinson, the Company's major shareholder, in the amount of $300,000, the credit agreement bears interest at the prime of 4.2%.  The loan balance at September 30, 2003 is $283,879.  The Company recorded interest expense of $5,179 and $2,339 for the nine and three months ended September 30,  2003, respectively.
2. On May 15, 2003, the Company borrowed $12,000 from Michael Fasci ("Fasci") a stockholder of the Company.  Fasci received 50,000 common shares of the Company's common stock which represented the payment of interest through May 26, 2003, the maturity date.  The Company recorded interest expense of $13,750 in connection with the issuance of the shares.



The Company did not pay the outstanding balance on the maturity date and must pay monthly interest of one (1%) to Fasi.  For the nine months ended September 30, 2003 the Company recorded interest expense in the amount of $480.



On August 8, 2003, the Company and Gary Robinson (stockholder) entered into an agreement to compensate him for past services rendered to the Company in the amount of $93,625 for the period November 1, 2003 through June 13, 2003.  The Company issued 280,000 shares of the Company's common stock on a Form S-8 registration statement in full payment of the Company's debt.



On July 28, 2003, the Company and Joseph Tomasek (attorney) entered into an agreement to compensate him for past services rendered to the Company in the amount of $40,000.  The Company issued 200,000 shares of the Company's common stock in full payment of the Company's debt.



1. COMMITMENTS AND CONTINGENCIES



a.	Executive Employment Agreement

Effective March 11, 2003, the Company entered into an employment agreement with Peter Russo for three years with renewal upon mutual agreement.  The agreement compensates Mr. Russo $10,800 per month.  Additionally, Mr. Russo will receive an incentive of 1.5% of adjusted net profits beginning with the year 2003 and each fiscal year thereafter during the term of this agreement, payable in stock.  This agreement and Mr. Russo's employment may be terminated by the Company at its discretion at any time after the initial term, provided that the Mr. Russo be paid six months of his base compensation then in effect.  Effective June 15, 2003, Mr. Russo was appointed president and chief executive officer and in recognition of his new responsibilities agreed to compensation of $15,000 per month effective July 1, 2003.



1. License Agreement
2. Financing Agreement



On July 8, 2003, the Company entered into an agreement with Rolan Jansen and Ivano Angelastri ("J&A"), who are residents of Switzerland, to introduce and arrange equity debt or other financing agreements with strategic partners in Europe, for the Company, or its affiliates for a finders fee of 6.0% to Rolan Jansen and 2.0% to Ivano Angelastri of the gross proceeds of the equity financing.







1. 
2. SUBSEQUENT EVENT



On October 17, 2003 the Company borrowed $60,000 from Mitchell Rosenthal.  The note is due on November 20, 2003 with interest at six (6%) percent per annum.  The note is secured by personal guarantee of Gary Robinson, the Company's largest shareholder, and a pledge of 150,000 shares of common stock of Millenium Biotechnologies, Inc. owned by him.



9.	RECENT ACCOUNTING PRONOUNCEMENTS



In April 2002, the FASB issued SFAS No. 145 "Rescission of FASB Statements No. 4, 44, and 64, Amendment of FASB Statement No. 13, and Technical Corrections". This statement eliminates the automatic classification of gain or loss on extinguishment of debt as an extraordinary item of income and requires that such gain or loss be evaluated for extraordinary classification under the criteria of Accounting Principles Board No. 30 "Reporting Results of Operations". This statement also requires sales-leaseback accounting for certain lease modifications that have economic effects that are similar to sales-leaseback transactions, and makes various other technical corrections to existing pronouncements. This statement will be effective for the Company for the year ending December 31, 2003. Management believes that adopting this statement will not have a material effect on the Company's results of operations or financial position.



In June 2002, the FASB issued SFAS No. 146, "Accounting for Costs Associated with Exit or Disposal Activities."  This Statement requires recording costs associated with exit or disposal activities at their fair values when a liability has been incurred.  Under previous guidance, certain exit costs were accrued upon management's commitment to an exit plan.  The Company adopted SFAS No. 146 on January 1, 2003.  The adoption of SFAS No. 146 did not have a material impact on the Company's result of operations or financial position.



In April 2003, the FASB issued SFAS No. 149, "Amendment of Statement No. 133 on Derivative Instruments and Hedging Activities."  This statement amends and clarifies financial accounting and reporting for derivative instruments, including certain derivative instruments embedded in other contracts and for hedging activities under FASB Statement No. 133, "Accounting for Derivative Instruments and Hedging Activities."  This Statement is effective for contracts entered into or modified after June 30, 2003, and for hedging relationships designated after June 30, 2003.  Management believes that adopting this statement will not have a material effect on the Company's results of operations or financial position.



In November 2002, the FASB issued FASB Interpretation No. 45 (FIN 45), Guarantor's Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others, and interpretation of FASB Statements No. 5, 57,and 107 and Rescission of FASB Interpretation No. 34.  FIN 45 clarifies the requirements of FASB Statement No. 5, Accounting for Contingencies, relating to the guarantor's accounting for, and disclosure of, the issuance of certain types of guarantees.  This interpretation clarifies that a guarantor is required to recognize, at the inception of certain types of guarantees, a liability for the fair value of the obligation undertaken in issuing the guarantee.  The initial recognition and initial measurement provisions of this Interpretation are applicable on a prospective basis to guarantees issued or modified after December 31, 2002, irrespective of the guarantor's fiscal year-end.  The disclosure requirements in this interpretation are effective for financial statements of interim or annual periods ending after December 15, 2002.  The Company adopted FIN 45 on January 1, 2003.  The adoption of FIN 45 did not have a material impact on the Company's results of operations or financial position.

In January 2003, the Financial Accounting Standards Board issued Interpretation No. 46, "Consolidation of Variable Interest Entities," which addresses consolidation by business enterprises of variable interest entities. In general, a variable interest entity is a corporation, partnership, trust, or any other legal structure used for business purposes that either (a) does not have equity investors with voting rights or (b) has equity investors that do not provide sufficient financial resources for the entity to support its activities. A variable interest entity often holds financial assets, including loans or receivables, real estate or other property. A variable interest entity may be essentially passive or it may engage in research and development or other activities on behalf of another company. The objective of Interpretation No. 46 is not to restrict the use of variable interest entities but to improve financial reporting by companies involved with variable interest entities. Until now, a company generally has included another entity in its consolidated financial statements only if it controlled the entity through voting interests.  Interpretation No. 46 changes that by requiring a variable interest entity to be consolidated by a company if that company is subject to a majority of the risk of loss from the variable interest entity's activities or entitled to receive a majority of the entity's residual returns or both. The consolidation requirements of Interpretation No. 46 apply immediately to variable interest entities created after January 31, 2003. The consolidation requirements apply to older entities in the first fiscal year or interim period beginning after June 15, 2003. Certain of the disclosure requirements apply in all financial statements issued after January 31, 2003, regardless of when the variable interest entity was established. The Company does not have any variable interest entities, and, accordingly, adoption is not expected to have a material effect on the Company's results of operations or financial position.



In May 2003, the FASB issued SFAS No. 150 "Accounting for Financial Instruments with the Characteristics of Both Liabilities and Equities".  SFAS No. 150 establishes standards regarding the manner in which an issuer classifies and measures certain types of financial instruments having characteristics of both liabilities and equity.  Pursuant to SFAS No. 150, such freestanding financial instruments (i.e. those entered into separately from an entity's other financial instruments or equity transactions or that are legally detachable and separately exercisable) must be classified as liabilities or, in some cases, assets.  In addition, SFAS No. 150 requires that financial instruments containing obligations to repurchase the issuing entity's equity shares and, under certain circumstances, obligations that are settled by delivery of the issuer's shares be classified as liabilities.  The Statement is effective for financial instruments entered into or modified after May 31, 2003 and for other instruments at the beginning of the first interim period after June 15, 2003.  Management believes adopting this statement will not have a material effect on the statement of operations or financial position.



Item 2.	Management's Discussion and Plan of Operations

Forward Looking Statements

Under the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, the Company  caution readers regarding forward looking statements found in this report and in any other statement made by or on its behalf.  Forward looking statements are statements which are not based on historical information and which relate to future operations, strategies, financial results or other developments.  Forward looking statements are necessarily based upon estimates and assumptions that are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company's control and many of which, with respect to future business decisions, are subject to change.  These uncertainties and contingencies can affect actual results and could cause actual results to differ materially from those expressed in any forward looking statements made by or on the Company's behalf.  The Company disclaims any obligation to update forward looking statements.



General



Delta was incorporated under the laws of the State of Delaware on November 17, 1999.  Delta is a development stage company which initially intended to develop an Internet based mortgage services company.  The Company has insufficient capital with which to commence its planned business operations.



Plan of Operations



Business Plan



Since the change in control, new Company management has embarked upon a new mission and strategic direction, intending to establish a series of subsidiaries and joint ventures, primarily for the establishment of business operations focusing upon providing technology and services in the environmental remediation industry and utilizing certain construction technologies to participate in select housing development projects.



Central and Eastern Europe - Marketplace



The Company intends to license certain remediation technologies and align its business with certain technology partners.  Although the Company has held discussions and negotiations with various parties in connection with it's business plan in this marketplace, as of the date of this filing, the Company has only signed one letter of intent and executed one technology license agreement in furtherance of our business plan.





















The United States



The United States Government has scheduled a program for disposal of specific military related waste products that require not only specialized disposal facilities, but also state of the art identification and tracking systems.  The disposal requirement is the outcome of a number of weapons destruction treaties that are in effect.  The Company has entered into discussions with several U.S. - based entities in the environmental technology field, discussing potential strategic partnerships and alliances.



The Company is currently dependent on loans and investments from affiliates to pay its operating expenses.  There are no assurances that such affiliates will continue to advance funds or invest in the Company's securities.  In the event that the Company is unable to obtain additional capital or funding it may be unable to pursue its business plan.



Due to the fact that the Company has limited operations at this time, it is anticipated that its cash requirements will be limited, and that all necessary capital, to the extent required, will be provided by its directors, officers and/or stockholders.  The Company anticipates that it will be required to raise capital in the next 12 months in order to continue to fund its limited operations and to finance its planned business operations.



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 judgements that effect 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 judgements about carrying values of assets and liabilities that are not readily apparent form other sources.  Actual results may differ from these estimates under different assumptions or conditions.



Liquidity



The Company has no current operations that have generated any revenues.  The Company must rely entirely on loans from affiliates as well as planned private placements to pay operating expenses.



At September 30, 2003 and December 31, 2002, the Company had working capital deficits of $254,193 and $235,483, respectively.  The increase in working capital deficit is a result of the net loss incurred during the nine months ended September 30, 2003.  Since the Company has no source revenue, its working capital deficit will continue to increase as it incurs additional operating expenses.  Presently the Company has no external sources of cash and is dependent upon its management and stockholders for funding.



In December 2002, the Company received an investment of $30,000 from Cyberlinx Corporation for 300,000 shares of restricted common stock.  On January 7, 2003, the Company borrowed $15,000 from an individual lender to pay for operating expenses.  In addition, the Company borrowed $100,000 from the Company's former Chief Executive Officer in March ,2003 to make a payment of an identical amount to a consultant.  As stated, the Company expects to engage in a private placement transaction, offering debt or equity securities to investors in order to obtain funds to finance its business plans.   The Company has a revolving line of credit with Gary Robinson, the Company's major stockholder in the amount of $300,000.  The credit agreement bears interest at prime of 0.042% as of September 30, 2003.  The amount due at September 30, 2003 is $283,879.



On October 17, 2003 the Company borrowed $60,000 from Mitchell Rosenthal.  The note is due on November 20, 2003 with interest at six (6%) percent per annum.  The note is secured by personal guarantee and a pledge of stock by Gary Robinson for 150,000 shares common stock of Millenium Biotechnologies, Inc.



Results of Operations



During the nine months ended September 30, 2003  the Company incurred a net loss of $841,313 as compared to $151,000 for the nine months ended September 30, 2002.  Such increase is primarily attributable to consulting fees of approximately $426,000, travel fees of approximately $70,000, payroll of approximately $165,000 and interest expense of approximately $35,900.



During the three ended September 30, 2003  the Company incurred a net loss of $244,743 as compared to $2,100 for the three months ended September 30, 2002.  Such increase is primarily attributed to consulting fees of approximately $101,000, travel fees of approximately $26,000, payroll of approximately $77,000 and interest expense of approximately $3,300.



From inception (November 17, 1999) to September 30, 2003, the Company had a net loss of $1,381,205.  The Company is continuing to incur professional fees and other expenses.   If the Company is unable to raise capital through its planned private placement, it will be unable to fund its plan of operations and will continue to incur net losses and may have to cease operations entirely.  This factor, among others, raises substantial doubt about its ability to continue as a going concern.



The Company's ability to continue as a going concern is dependent upon it's ability to obtain funds to meet it's obligations on a timely basis, obtain additional financing or refinancing as may be required, and ultimately to attain profitability.  There are no assurances that the Company will be able to obtain any additional financing or, if it is able to obtain additional financing, that such financing will be on favorable terms.  The inability to obtain additional financing when needed would have a material adverse effect on operating results.





The Independent Auditors' Report as of December 31, 2002 and Note 1 of the Notes to Financial Statements accompanying the report state that substantial doubt has been raised about the Company's ability to continue as a going concern.  The Company's present business operations do not generate any revenues with which to cover its expenses.  The Company will have to raise capital through the placement of the Company's securities in order to remain viable, and there is no assurance that the Company will be able to do so.

Other Matters

Accounting Pronouncements



In August 2001, the FASB issued SFAS No. 143 "Accounting for Asset Retirement Obligations".  SFAS No. 143 addresses financial accounting and reporting for obligations and costs associated with the retirement of tangible long-lived assets.  The Company adopted SFAS 143 on January 1, 2003.  The adoption of SFAS No.143 did not have a material impact on the Company's results of operations or financial position.



In April 2002, the FASB issued SFAS No. 145 "Rescission of FASB Statements No. 4, 44, and 64, Amendment of FASB Statement No. 13, and Technical Corrections". This statement eliminates the automatic classification of gain or loss on extinguishment of debt as an extraordinary item of income and requires that such gain or loss be evaluated for extraordinary classification under the criteria of Accounting Principles Board No. 30 "Reporting Results of Operations". This statement also requires sales-leaseback accounting for certain lease modifications that have economic effects that are similar to sales-leaseback transactions, and makes various other technical corrections to existing pronouncements. This statement will be effective for the Company for the year ending December 31, 2003. Management believes that adopting this statement will not have a material effect on the Company's results of operations or financial position.



In June 2002, the FASB issued SFAS No. 146, "Accounting for Costs Associated with Exit or Disposal Activities."  This Statement requires recording costs associated with exit or disposal activities at their fair values when a liability has been incurred.  Under previous guidance, certain exit costs were accrued upon management's commitment to an exit plan.  The Company adopted SFAS No. 146 on January 1, 2003.  The adoption of SFAS No. 146 did not have a material impact on the Company's result of operations or financial position.



In December 2002, the FASB issued SFAS No. 148, "Accounting for Stock-Based Compensation-Transition and Disclosure, an amendment of FASB Statement No. 123".  SFAS No. 148 provides alternative methods of transition for a voluntary change to the fair value based method of accounting for stock-based employee compensation.  It also requires disclosure in both annual and interim financial statements about the method of accounting for stock-based employee compensation and the effect of the method used on reported results.  SFAS No. 148 is effective for annual and interim periods beginning after December 15, 2002.  The Company will continue to account for stock-based employee compensation under the recognition and measurement principle of APB Opinion No. 25 and related interpretations. The Company complied with the additional annual and interim disclosure requirements effective December 31, 2002 and September 30, 2003.







In April 2003, the FASB issued SFAS No. 149, "Amendment of Statement No. 133 on Derivative Instruments and Hedging Activities."  This statement amends and clarifies financial accounting and reporting for derivative instruments, including certain derivative instruments embedded in other contracts and for hedging activities under FASB Statement No. 133, "Accounting for Derivative Instruments and Hedging Activities."  This Statement is effective for contracts entered into or modified after June 30, 2002, and for hedging relationships designated after June 30, 2003.  Management believes that adopting this statement will not have a material effect on the Company's results of operations or financial position.



In November 2002, the FASB issued FASB Interpretation No. 45 (FIN 45), Guarantor's Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others, and interpretation of FASB Statements No. 5, 57,and 107 and Rescission of FASB Interpretation No. 34.  FIN 45 clarifies the requirements of FASB Statement No. 5, Accounting for Contingencies, relating to the guarantor's accounting for, and disclosure of, the issuance of certain types of guarantees.  This interpretation clarifies that a guarantor is required to recognize, at the inception of certain types of guarantees, a liability for the fair value of the obligation undertaken in issuing the guarantee.  The initial recognition and initial measurement provisions of this Interpretation are applicable on a prospective basis to guarantees issued or modified after December 31, 2002, irrespective of the guarantor's fiscal year-end.  The disclosure requirements in this interpretation are effective for financial statements of interim or annual periods ending after December 15, 2002.  The Company adopted FIN 45 on January 1, 2003.  The adoption of FIN 45 did not have a material impact on the Company's results of operations or financial position.



In January 2003, the Financial Accounting Standards Board issued Interpretation No. 46, "Consolidation of Variable Interest Entities," which addresses consolidation by business enterprises of variable interest entities. In general, a variable interest entity is a corporation, partnership, trust, or any other legal structure used for business purposes that either (a) does not have equity investors with voting rights or (b) has equity investors that do not provide sufficient financial resources for the entity to support its activities. A variable interest entity often holds financial assets, including loans or receivables, real estate or other property. A variable interest entity may be essentially passive or it may engage in research and development or other activities on behalf of another company. The objective of Interpretation No. 46 is not to restrict the use of variable interest entities but to improve financial reporting by companies involved with variable interest entities. Until now, a company generally has included another entity in its consolidated financial statements only if it controlled the entity through voting interests.  Interpretation No. 46 changes that by requiring a variable interest entity to be consolidated by a company if that company is subject to a majority of the risk of loss from the variable interest entity's activities or entitled to receive a majority of the entity's residual returns or both. The consolidation requirements of Interpretation No. 46 apply immediately to variable interest entities created after January 31, 2003. The consolidation requirements apply to older entities in the first fiscal year or interim period beginning after June 15, 2003. Certain of the disclosure requirements apply in all financial statements issued after January 31, 2003, regardless of when the variable interest entity was established. The Company does not have any variable interest entities, and, accordingly, adoption is not expected to have a material effect on the Company's results or operations or financial position.















In May 2003, the FASB issued SFAS No. 150 "Accounting for Financial Instruments with the Characteristics of Both Liabilities and Equities".  SFAS No. 150 establishes standards regarding the manner in which an issuer classifies and measures certain types of financial instruments having characteristics of both liabilities and equity.  Pursuant to SFAS No. 150, such freestanding financial instruments (i.e. those entered into separately from an entity's other financial instruments or equity transactions or that are legally detachable and separately exercisable) must be classified as liabilities or, in some cases, assets.  In addition, SFAS No. 150 requires that financial instruments containing obligations to repurchase the issuing entity's equity shares and, under certain circumstances, obligations that are settled by delivery of the issuer's shares be classified as liabilities.  The Statement is effective for financial instruments entered into or modified after May 31, 2003 and for other instruments at the beginning of the first interim period after June 15, 2003.  Management believes adopting this statement will not have a material effect on the statement of operations or financial position.



Item 3.  Quantitative and Qualitative Disclosures About Market Risk



Fair Value of Financial Instruments - The following disclosure of the estimated fair value of financial instruments is made in accordance with the requirements of Statement of Financial Accounting Standards No. 107, "Disclosures about Fair Value of Financial Instruments".  The estimated fair values of financial instruments have been determined by the Company using available market information and appropriate valuation methodologies.



However, considerable judgment is required in interpreting market data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts that the Company could realize in a current market exchange.



The Company has not entered into, and does not expect to enter into, financial instruments for trading or hedging purposes. The Company does not currently anticipate entering into interest rate swaps and/or similar instruments.



The Company's carrying values of cash, marketable securities, accounts receivable, accounts payable and accrued expenses are a reasonable approximation of their fair value.



Item 14.   Controls and Procedures



(a)	Disclosure controls and procedures.  As of the end of the Company's most recently completed fiscal quarter (the registrant's 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 Chief 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 Chief 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



There are no legal proceedings against the Company and the Company is unaware of such proceedings contemplated against it.

ITEM 2.  CHANGES IN SECURITIES

(c) On August 8, 2003, the Company issued 280,000 shares of its common stock to its Chairman, Gary T. Robinson, in payment for past services rendered to the Company. Such shares were included in an S-8 registration statement filed with the Securities Exchange Commission on  August 20, 2003.

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

Not applicable

ITEM 6.  Exhibits and Reports on Form 8-K



(a)	Exhibits:

Exhibit 99.1 Certification of the Chief Executive Officer pursuant to

Section 302 of the Sarbanes-Oxley Act of 2002.



Exhibit 99.2  Certification of the Chief Executive Officer pursuant to

Section 906 of the Sarbanes- Oxley Act of 2002.



1. During the quarter ended September 30, 2003, the Company filed one Current Report on Form 8-K with the Securities and Exchange Commission on September 4, 2003, disclosing the execution of a contract with Jamie Burrows and Burrows Consulting of Houston, Texas.





















SIGNATURES

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



DELTA MUTUAL, INC.



BY: /s/ Peter F. Russo

Peter F. Russo

President and Chief

Executive Officer



Dated: November 13, 2003













































EXHIBIT INDEX





Exhibit 99.1 - Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

Exhibit 99.2 - Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.





Exhibit 99.1

CERTIFICATION

I, Peter Russo, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Delta Mutual, Inc.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:



1. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
2. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
3. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and



1. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):



1. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
2. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 13, 2003

By:  /s/ Peter F. Russo

Peter F. Russo, President and Chief Executive Officer



Exhibit 99.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002



In connection with the quarterly report of Delta Mutual Inc. (the "Company") on Form 10-Q for the quarter ended September 30, 2003 filed with the Securities and Exchange Commission (the "Report"), I, Peter F. Russo, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 that:



(1) The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934;and



(2) The information contained in the Report fairly presents, in all material respects, the consolidated financial condition of the Company as of the dates presented and consolidated result of operations of the Company for the periods presented.

Dated: November 13, 2003

By: /s/ Peter F. Russo

Peter F. Russo, President and

Chief Executive Officer