----

----

| Nevada                                                                        |  | 77-0454933                                          |
|-------------------------------------------------------------------------------|--|-----------------------------------------------------|
| (State                or other jurisdiction of incorporation or organization) |  | (I.R.S.                Employer Identification No.) |

----

| (Title                of Class) |  | Name                of exchange on which registered |
|---------------------------------|--|-----------------------------------------------------|
| None                            |  | None                                                |

----

| 1.                   | The                Company’s mission is to locate, integrate and implement leading waste                management, recycling and renewable energy technologies with the                objective                of creating a cleaner and healthier global environment and capitalizing                on                profitable opportunities for our shareholders. The Company is currently                evaluating several projects in China related to waste management                and                alternate power. No agreements have been concluded and therefore                capital                requirements remain unknown. |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 2.                   | The                Company has further commenced negotiations to create an environmental                fund                in China (The Fund Project) as a potential financing vehicle to assist                it                with implementation of its above mentioned                projects.                                                                                                                                                                                                                                                                                                                                                       |

----

|                                  |   | Year                Ended September 30, |       |
|---------------------------------------|--------|-----------------------------------------|------------|
|                                  |   | 2007                                    |       |   | 2006 |   |   | Percentage                Increase/(Decrease) |   |
|                                  |   |                                    |       |   |   |   |   |   |   |
| Revenue                               |   | $                                       | --         |   |   | $ | -- |   |   | N/A |   |
| Operating                Expenses     |   |                                    | (3,449,890 | ) |   |   | (2,820,047 | ) |   |   | 22.3% |   |
| Other                Income (Expense) |   |                                    | 329,879    |   |   |   | (498,863 | ) |   |   |     - |   |
| Net                Income (Loss)      |   | $                                       | (3,120,011 | ) |   | $ | (3,318,910 | ) |   |   | (6.0)% |   |

| (1)   | Consulting                and professional fees for the year ended September 30, 2007 increased                to                $2,846,752 from $2,220,973 for the same period in 2006, as a result                of                increase in the use and cost of management consultants retained to                locate,                research, conduct feasibility studies with respect to leading waste                management, recycling and reusable energy technologies. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| (2)   | General                and administration expenses for the year ended September 30, 2007                marginally increased to $603,138 from $599,074 for the same period                in                2006, as a result of increase in travel, investor relations and                communications expenses, and decrease in advertising                cost.                                                                                                                      |
|                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| (3)   | Interest                expense for the year ended September 30, 2007 was $90,466 compared                to                $115,518 for the same period in 2006. Interest expense decreased                due to                repayment of short term notes payable to related parties during the                year                ended September 30, 2007 as compared to the same period in                2006.                                                                  |
|                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| (4)   | During                year ended September 30, 2007 the related parties forgave $420,345                of the                debt owed by the Company for consulting services. No such debts were                forgiven during the year ended September 30,                2006.                                                                                                                                                                                                       |

| Cash                  Flows                                        |   | Year                  Ended September 30, |       |
|--------------------------------------------------------------------|--------|-------------------------------------------|------------|
|                                                               |   | 2007                                      |       |   | 2006 |   |
|                                                               |   |                                      |       |   |   |   |
| Net                  Cash used in Operating Activities             |   | $                                         | (1,861,250 | ) |   | $ | (1,080,665 | ) |
| Net                  Cash used in Investing Activities             |   |                                      | (8,206     | ) |   |   | (5,141 | ) |
| Net                  Cash provided by Financing Activities         |   |                                      | 2,438,418  |   |   |   | 1,067,365 |   |
| Effects                  of Foreign Currency Translations          |   |                                      | 130,050    |   |   |   | 3,163 |   |
| Net                  Increase (decrease) in Cash During the Period |   | $                                         | 699,015    |   |   | $ | (15,278 | ) |

| Working                Capital         |   | AtSeptember                30, 2007 |       |   | AtSeptember                30, 2006 |   |       | PercentageIncrease/(Decrease) |   |
|----------------------------------------|--------|-------------------------------------|------------|--------|-------------------------------------|--------|------------|-------------------------------|--------|
|                                   |   |                                |       |   |                                |   |       |                          |   |   |   |   |
| Current                Assets          |   | $                                   | 891,923    |   |                                | $      | 135,366    |                          |   |   | 558.9% |   |
| Current                Liabilities     |   |                                | (4,456,611 | )      |                                |   | (4,867,650 | )                             |   |   | (8.4)% |   |
| Working                Capital Deficit |   | $                                   | (3,564,688 | )      |                                | $      | (4,732,284 | )                             |   |   | (24.7)% |   |

----

| Creditor                                           |   | As                ofSeptember                30, 2007 |      |   | As                ofSeptember                30, 2006 |   |
|----------------------------------------------------|--------|-------------------------------------------------------|-----------|--------|-------------------------------------------------------|--------|
|                                               |   |                                                  |      |   |                                                  |   |   |   |
| Brampton                Holdings Ltd.              |   | $                                                     | -         |   |                                                  | $      | 770,665 |   |
| Sanclair                Holdings Ltd.              |   |                                                  | 249,484   |   |                                                  |   | 829,312 |   |
| Pacific                Ocean Resources Corporation |   |                                                  | -         |   |                                                  |   | 46,954 |   |
| 529473                B.C. Ltd.                    |   |                                                  | -         |   |                                                  |   | 310,535 |   |
| Rene                Branconnier                    |   |                                                  | 28,449    |   |                                                  |   | 31,677 |   |
| Milverton                Capital Corporation       |   |                                                  | 1,521,773 |   |                                                  |   | 712,295 |   |
|                     Total      |   | $                                                     | 1,799,706 |   |                                                  | $      | 2,701,438 |   |

----

|                                                                                                                                                | Page      |
|------------------------------------------------------------------------------------------------------------------------------------------------|-----------|
|                                                                                                                                                |           |
| Report                of Independent Registered Public Accounting Firm                                                                         |  6   |
|                                                                                                                                                |           |
| Consolidated                Balance Sheet at September 30, 2007                                                                                |  7   |
|                                                                                                                                                |           |
| Consolidated                Statement of Operations for the years endedSeptember                30, 2007 and 2006                              |  8   |
|                                                                                                                                                |           |
| Consolidated                Statement of Shareholders’ Deficit for the years                ended  September 30, 2007 and 2006 |  9   |
|                                                                                                                                                |           |
| Consolidated                Statement of Cash Flows for the years endedSeptember                30, 2006 and 2006                              |  10  |
|                                                                                                                                                |           |
| Notes                to Consolidated Financial Statements                                                                                      |  N/A |

----

----

Organic      Recycling Technologies,      Inc.

|                                                                                                                                                                        |   | September                  30, 2007 |        |   | September                  30, 2006 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------|-------------|--------|-------------------------------------|--------|
|                                                                                                                                                                        |   |                                |        |   |                                |   |
| ASSETS                                                                                                                                                                      |   |                                |        |   |                                |   |
|                                                                                                                                                                        |   |                                |        |   |                                |   |
| Current                  assets                                                                                                                                             |   |                                |        |   |                                |   |
| Cash                                                                                                                                                                        |   | $                                   | 761,365     |   |                                | $      | 62,351 |   |
| Non-trade                  receivable                                                                                                                                       |   |                                | 66,032      |   |                                |   | 23,015 |   |
| Prepaid                  expenses                                                                                                                                           |   |                                | 64,526      |   |                                |   | 50,000 |   |
| Total                  current assets                                                                                                                                       |   |                                | 891,923     |   |                                |   | 135,366 |   |
|                                                                                                                                                                        |   |                                |        |   |                                |   |   |   |
| Net                  capital assets                                                                                                                                         |   |                                | 9,498       |   |                                |   | 3,782 |   |
| Total                  other assets                                                                                                                                         |   |                                | 9,498       |   |                                |   | 3,782 |   |
|                                                                                                                                                                        |   |                                |        |   |                                |   |   |   |
| TOTAL                  ASSETS                                                                                                                                               |   | $                                   | 901,421     |   |                                | $      | 139,148 |   |
|                                                                                                                                                                        |   |                                |        |   |                                |   |   |   |
| LIABILITIES                  AND SHAREHOLDERS' DEFICIENCY                                                                                                                   |   |                                |        |   |                                |   |   |   |
|                                                                                                                                                                        |   |                                |        |   |                                |   |   |   |
| Current                  liabilities                                                                                                                                        |   |                                |        |   |                                |   |   |   |
| Accounts                  and fees payable                                                                                                                                  |   | $                                   | 308,384     |   |                                | $      | 987,906 |   |
| Payable                  and accrued expenses                                                                                                                               |   |                                | 2,223,591   |   |                                |   | 2,923,117 |   |
| Common                  stock to be issued                                                                                                                                  |   |                                | 530,666     |   |                                |   | 225,141 |   |
| Due                  to related parties                                                                                                                                     |   |                                | 71,785      |   |                                |   |   |   |
| Short                  term notes to related parties                                                                                                                        |   |                                | 1,322,185   |   |                                |   | 731,486 |   |
| Total                  current liabilities                                                                                                                                  |   |                                | 4,456,611   |   |                                |   | 4,867,650 |   |
|                                                                                                                                                                        |   |                                |        |   |                                |   |   |   |
| TOTAL                  LIABILITIES                                                                                                                                          |   |                                | 4,456,611   |   |                                |   | 4,867,650 |   |
|                                                                                                                                                                        |   |                                |        |   |                                |   |   |   |
| Shareholders'                  deficiency                                                                                                                                   |   |                                |        |   |                                |   |   |   |
| Preferred                  stock, 40,000,000 shares authorized $0.001 par value,                       0 shares outstanding                        |   | $                                   | -           |   |                                | $      | - |   |
| Common                  stock, 500,000,000 authorized, $0.001 par value,                       47,621,079 and 36,523,700 outstanding, respectively |   |                                | 47,621      |   |                                |   | 36,524 |   |
| Paid                  in capital                                                                                                                                            |   |                                | 16,052,566  |   |                                |   | 11,900,389 |   |
| Accumulated                  comprehensive loss                                                                                                                             |   |                                | (432,127    | )      |                                |   | (562,177 | ) |
| Accumulated                  deficit                                                                                                                                        |   |                                | (19,223,250 | )      |                                |   | (16,103,238 | ) |
| Total                  shareholders' deficiency                                                                                                                             |   |                                | (3,555,190  | )      |                                |   | (4,728,502 | ) |
|                                                                                                                                                                        |   |                                |        |   |                                |   |   |   |
| TOTAL                  LIABILITIES AND SHAREHOLDERS' DEFICIENCY                                                                                                             |   | $                                   | 901,421     |   |                                | $      | 139,148 |   |

----

|                                                                 |                                                   |   | For                the years endedSeptember                30, |       |
|----------------------------------------------------------------------|--------------------------------------------------------|--------|----------------------------------------------------------------|------------|
|                                                                 |                                                   |   | 2007                                                           |       |   | 2006 |   |
|                                                                 |                                                   |   |                                                           |       |   |   |   |
| Revenues                                                             |                                                   |   | $                                                              | -          |   |   | $ |   |   |
|                                                                 |                                                   |   |                                                           |       |   |   |   |   |   |
| Expenses                                                             |                                                   |   |                                                           |       |   |   |   |   |   |
|                                                                 | Advertising                                            |   |                                                           | 219,461    |   |   |   | 282,647 |   |
|                                                                 | Depreciation                                           |   |                                                           | 2,383      |   |   |   | 1,359 |   |
|                                                                 | Consulting                and professional fees        |   |                                                           | 2,846,752  |   |   |   | 2,220,973 |   |
|                                                                 | Rent,                utilities and telephone           |   |                                                           | 85,299     |   |   |   | 99,827 |   |
|                                                                 | Office                and administration               |   |                                                           | 24,408     |   |   |   | 23,327 |   |
|                                                                 | Investor                relations & communication  |   |                                                           | 133,004    |   |   |   | 65,964 |   |
|                                                                 | Travel,                meals and entertainment         |   |                                                           | 135,172    |   |   |   | 125,950 |   |
|                                                                 | Total                expenses                          |   |                                                           | 3,449,890  |   |   |   | 2,820,047 |   |
|                                                                 |                                                   |   |                                                           |       |   |   |   |   |   |
| Loss                from operations                                  |                                                   |   | (3,449,890                                                     | )          |   |   | (2,820,047 | ) |
|                                                                 |                                                   |   |                                                           |       |   |   |   |   |   |
| Other                income (expense)                                |                                                   |   |                                                           |       |   |   |   |   |
|                                                                 | Interest                expense                        |   |                                                           | (90,466    | ) |   |   | (115,518 | ) |
|                                                                 | Forgiveness                of Debt                     |   |                                                           | 420,345    |   |   |   | - |   |
|                                                                 | Loss                on termination of site acquisition |   |                                                           | -          |   |   |   | (383,345 | ) |
|                                                                 | Total                other income (expenses)           |   |                                                           | 329,879    |   |   |   | (498,863 | ) |
| Net                loss                                              |                                                   |   | $                                                              | (3,120,011 | ) |   | $ | (3,318,910 | ) |
|                                                                 |                                                   |   |                                                           |       |   |   |   |   |   |
| Other                comprehensive income (loss)                     |                                                   |   |                                                           |       |   |   |   |   |
|                                                                 | Foreign                currency translation adjustment |   |                                                           | (42,028    | ) |   |   | 3,163 |   |
|                                                                 |                                                   |   |                                                           |       |   |   |   |   |   |
| Comprehensive                loss                                    |                                                   | $      | (3,162,040                                                     | )          |   | $ | (3,315,747 | ) |
|                                                                 |                                                   |   |                                                           |       |   |   |   |   |   |
|                                                                 |                                                   |   |                                                           |       |   |   |   |   |   |
| Loss                per common share - basic and diluted             |                                                   | $      | (0.08                                                          | )          |   | $ | (0.11 | ) |
|                                                                 |                                                   |   |                                                           |       |   |   |   |   |   |
| Weighted                average shares outstanding during the period |                                                   |   |                                                           |       |   |   |   |   |
|   -                basic and diluted                       |                                                   |   | 41,556,365                                                     |       |   |   | 31,190,689 |   |

----

|                                                   |   | Common                Stock |       |   |   |   |   |                           |   |   |                                     |   |   |                               |     |   |                                                               |   |
|--------------------------------------------------------|--------|-----------------------------|------------|--------|--------|--------|--------|--------------------------------|--------|--------|------------------------------------------|--------|--------|------------------------------------|----------|--------|--------------------------------------------------------------------|--------|
|                                                   |   | Shares                      |       |   | Amount |   |   | Paid                in Capital |   |   | Common                Stock to be issued |   |   | Accumulated                Deficit |     |   | Accumulated                Other Comprehensive                Loss |   |   | Total |   |
|                                                   |   |                        |       |   |   |   |   |                           |   |   |                                     |   |   |                               |     |   |                                                               |   |   |   |   |
| Balance                - September 30, 2005            |   |                        | 27,256,698 |   |   | $      | 27,257 |                           |   | $      | 10,046,974                               |   |   | $                                  | 240,671  |   |                                                               | $      | (12,784,329 | ) |   | $ | (565,340 | ) |   | $ | (3,034,767 | ) |
|                                                   |   |                        |       |   |   |   |   |                           |   |   |                                     |   |   |                               |     |   |                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Foreign                currency translation adjustment |   |                        | -          |   |   |   | -      |                           |   |   | -                                        |   |   |                               | -        |   |                                                               |   | - |   |   |   | 3,163 |   |   |   | 3,163 |   |
|                                                   |   |                        |       |   |   |   |   |                           |   |   |                                     |   |   |                               |     |   |                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Stock                issued on subscriptions for cash  |   |                        | 8,268,290  |   |   |   | 8,268  |                           |   |   | 2,890,705                                |   |   |                               | (240,671 | )      |                                                               |   | - |   |   |   | - |   |   |   | 2,658,302 |   |
|                                                   |   |                        |       |   |   |   |   |                           |   |   |                                     |   |   |                               |     |   |                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Cost                of raising capital                 |   |                        | -          |   |   |   |   |                           |   |   | (1,388,881                               | )      |   |                               | -        |   |                                                               |   | - |   |   |   | - |   |   |   | (1,388,881 | ) |
|                                                   |   |                        |       |   |   |   |   |                           |   |   |                                     |   |   |                               |     |   |                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Expenses                settled by stock               |   |                        | 414,275    |   |   |   | 414    |                           |   |   | 137,986                                  |   |   |                               | -        |   |                                                               |   | - |   |   |   | - |   |   |   | 138,400 |   |
|                                                   |   |                        |       |   |   |   |   |                           |   |   |                                     |   |   |                               |     |   |                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Related                party expenses settled by stock |   |                        | 584,437    |   |   |   | 584    |                           |   |   | 213,607                                  |   |   |                               | -        |   |                                                               |   | - |   |   |   | - |   |   |   | 214,191 |   |
|                                                   |   |                        |       |   |   |   |   |                           |   |   |                                     |   |   |                               |     |   |                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Stock                to be issued                      |   |                        | -          |   |   |   | -      |                           |   |   | -                                        |   |   |                               | 225,141  |   |                                                               |   | - |   |   |   | - |   |   |   | 225,141 |   |
|                                                   |   |                        |       |   |   |   |   |                           |   |   |                                     |   |   |                               |     |   |                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Net                loss                                |   |                        | -          |   |   |   | -      |                           |   |   | -                                        |   |   |                               | -        |   |                                                               |   | (3,318,910 | ) |   |   | - |   |   |   | (3,318,910 | ) |
|                                                   |   |                        |       |   |   |   |   |                           |   |   |                                     |   |   |                               |     |   |                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Balance                - September 30, 2006            |   |                        | 36,523,700 |   |   |   | 36,523 |                           |   |   | 11,900,390                               |   |   |                               | 225,141  |   |                                                               |   | (16,103,239 |   |   |   | (562,177 |   |   |   | (4,503,3610 |   |
|                                                   |   |                        |       |   |   |   |   |                           |   |   |                                     |   |   |                               |     |   |                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Foreign                currency translation adjustment |   |                        | -          |   |   |   | -      |                           |   |   | -                                        |   |   |                               | -        |   |                                                               |   | - |   |   |   | 130,050 |   |   |   | 130,050 |   |
|                                                   |   |                        |       |   |   |   |   |                           |   |   |                                     |   |   |                               |     |   |                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Stock                issued on subscriptions for cash  |   |                        | 9,866,775  |   |   |   | 9,867  |                           |   |   | 4,827,818                                |   |   |                               | (131,699 | )      |                                                               |   | - |   |   |   | - |   |   |   | 4,705,986 |   |
|                                                   |   |                        |       |   |   |   |   |                           |   |   |                                     |   |   |                               |     |   |                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Cost                of raising capital                 |   |                        | -          |   |   |   | -      |                           |   |   | (1,252,366                               | )      |   |                               | -        |   |                                                               |   | - |   |   |   | - |   |   |   | (1,252,366 | ) |
|                                                   |   |                        |       |   |   |   |   |                           |   |   |                                     |   |   |                               |     |   |                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Issuance                of shares to related party     |   |                        | 1,230,604  |   |   |   | 1,230  |                           |   |   | 576,725                                  |   |   |                               | -        |   |                                                               |   | - |   |   |   | - |   |   |   | 577,955 |   |
|                                                   |   |                        |       |   |   |   |   |                           |   |   |                                     |   |   |                               |     |   |                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Stock                to be issued for cash             |   |                        | -          |   |   |   | -      |                           |   |   | -                                        |   |   |                               | 437,224  |   |                                                               |   | - |   |   |   | - |   |   |   | 437,224 |   |
|                                                   |   |                        |       |   |   |   |   |                           |   |   |                                     |   |   |                               |     |   |                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Net                loss                                |   |                        | -          |   |   |   | -      |                           |   |   | -                                        |   |   |                               | -        |   |                                                               |   | (3,120,011 | ) |   |   | - |   |   |   | (3,120,011 | ) |
|                                                   |   |                        |       |   |   |   |   |                           |   |   |                                     |   |   |                               |     |   |                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Balance                - September 30, 2007            |   |                        | 47,621,079 |   |   | $      | 47,621 |                           |   | $      | 16,052,566                               |   |   | $                                  | 530,666  |   |                                                               | $      | (19,223,250 | ) |   | $ | (432,127 | ) |   | $ | (3,024,524 | ) |

----

|                                                                                                                                         |   | 12                Months Ended September 30, |       |
|----------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|------------|
|                                                                                                                                         |   | 2007                                         |       |   | 2006 |   |
|                                                                                                                                         |   |                                         |       |   |   |   |
| CASH                FLOWS FROM OPERATING ACTIVITIES                                                                                          |   |                                         |       |   |   |   |
| Net                loss                                                                                                                      |   | $                                            | (3,120,011 | ) |   | $ | (3,318,911 | ) |
| Adjustments                to reconcile net loss to net cash used in operating                activities:                                    |   |                                         |       |   |   |   |   |   |
| Depreciation                                                                                                                                 |   |                                         | 2,490      |   |   |   | 1,359 |   |
| Stock                issued for services                                                                                                     |   |                                         | 577,955    |   |   |   | 443,070 |   |
| Forgiveness                of debt                                                                                                           |   |                                         | (750,000   | ) |   |   | - |   |
| Stock                issued to related parties                                                                                               |   |                                         | -          |   |   |   | 352,334 |   |
| Increase                in non-trade receivables                                                                                             |   |                                         | (43,018    | ) |   |   | (23,015 | ) |
| Decrease                in deposits                                                                                                          |   |                                         | -          |   |   |   | 335,000 |   |
| (Increase)                Decrease in prepaid expenses                                                                                       |   |                                         | (14,526    | ) |   |   | 266,690 |   |
| Increase                in accounts and fees payable                                                                                         |   |                                         | (32,098    | ) |   |   | 336,824 |   |
| Increase                in due to related parties                                                                                            |   |                                         | 174,362    |   |   |   | - |   |
| Increase                in payables and accrued expenses                                                                                     |   |                                         | 1,343,598  |   |   |   | 525,985 |   |
| NET                CASH USED IN OPERATING ACTIVITIES                                                                                         |   |                                         | (1,861,248 | ) |   |   | (1,080,665 | ) |
|                                                                                                                                         |   |                                         |       |   |   |   |   |   |
| INVESTING                ACTIVITIES                                                                                                          |   |                                         |       |   |   |   |   |   |
| Purchase                of equipment                                                                                                         |   |                                         | (8,206     | ) |   |   | (5,141 | ) |
| NET                CASH USED IN INVESTING ACTIVITIES                                                                                         |   |                                         | (8,206     | ) |   |   | (5,141 | ) |
|                                                                                                                                         |   |                                         |       |   |   |   |   |   |
| CASH                FLOWS FROM FINANCING ACTIVITIES                                                                                          |   |                                         |       |   |   |   |   |   |
| Proceeds                from sale of common stock                                                                                            |   |                                         | 3,890,844  |   |   |   | 1,494,820 |   |
| Proceeds                of short term notes from related parties                                                                             |   |                                         | 369,050    |   |   |   | 375,710 |   |
| Repayments                of short term notes to related parties                                                                             |   |                                         | (1,821,476 | ) |   |   | (803,165 | ) |
| NET                CASH PROVIDED BY FINANCING ACTIVITIES                                                                                     |   |                                         | 2,438,419  |   |   |   | 1,067,365 |   |
|                                                                                                                                         |   |                                         |       |   |   |   |   |   |
| EFFECT                OF FOREIGN CURRENCY TRANSLATION                                                                                        |   |                                         | 130,050    |   |   |   | 3,163 |   |
|                                                                                                                                         |   |                                         |       |   |   |   |   |   |
| INCREASE                (DECREASE) IN CASH                                                                                                   |   |                                         | 699,014    |   |   |   | (15,278 | ) |
|                                                                                                                                         |   |                                         |       |   |   |   |   |   |
| CASH                AT THE BEGINNING OF THE PERIOD                                                                                           |   |                                         | 62,351     |   |   |   | 77,628 |   |
|                                                                                                                                         |   |                                         |       |   |   |   |   |   |
| CASH                AT THE END OF THE PERIOD                                                                                                 |   | $                                            | 761,365    |   |   | $ | 62,350 |   |
|                                                                                                                                         |   |                                         |       |   |   |   |   |   |
|                                                                                                                                         |   |                                         |       |   |   |   |   |   |
| SUPPLEMENTALDISCLOSURES                                                                                                                      |   |                                         |       |   |   |   |   |   |
| Noncash                Investing and Financing Activities                                                                                    |   |                                         |       |   |   |   |   |   |
| Stock                subscriptions issued in exchange for     short                term notes from related parties  |   | $                                            | -          |   |   | $ | - |   |
| Stock                subscriptions issued in exchange for     payables                and fees from related parties |   | $                                            | 577,955    |   |   | $ | 214,191 |   |
| Stock                subscriptions issued in exchange for     consulting                contract                    |   | $                                            | -          |   |   | $ | 138,400 |   |

----

| Exhibit                Number |   | Description                of Exhibit                                                                                                                                                                                                                                                                |
|-------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1                           |   | Amended                and Restated Articles of Incorporation dated February 5, 2001 (4)                                                                                                                                                                                                             |
| 3.2                           |   | Amended                and Restated Bylaws dated January 8, 2001 (4)                                                                                                                                                                                                                                 |
| 4.1                           |   | Specimen                Stock Certificate for Shares of Common Stock of the Company (2)                                                                                                                                                                                                              |
| 10.1                          |   | Lease                Agreement dated December 12, 2001 (4)                                                                                                                                                                                                                                           |
| 10.2                          |   | License                and Distribution Agreement between 529473 B.C. Ltd. and Duro Enzyme                Solutions Inc. (U.S.), as amended, dated September 21, 2000 (3)                                                                                                                            |
| 10.3                          |   | Research                and Development Services Agreement between 529473 B.C. Ltd. and Duro                Enzyme Solutions Inc. (Canada), as amended, dated September 21, 2000(1)                                                                                                                  |
| 10.4                          |   | Research                and Development Services Agreement between 529473 B.C. Ltd. and Duro                Enzyme Solutions Inc. (U.S.), as amended, dated September 21, 2000(1)                                                                                                                    |
| 10.5                          |   | Termination                of License Agreements between the Duro Enzyme Solutions Inc. (Nevada),                Duro Enzyme Solutions Inc. (B.C.) and 529473 B.C. Ltd. dated May                5, 2003                (6)                                                                          |
| 10.6                          |   | Agreement                with Waste Consultants Limited dated April 6, 2005                                                                                                                                                                                                                          |
| 10.7                          |   | Consulting                Agreement with HDR Brown Vence and Associates, Inc., dated June 14,                2006                                                                                                                                                                                    |
| 10.8                          |   | Agreement                with Foshan Public Utility Management Chinese Company dated June                21,                2005                                                                                                                                                                     |
| 10.9                          |   | Joint                Venture Agreement entered into on September 28, 2005 between Organic                Recycling Technologies (China) Inc., a wholly-owned subsidiary of                the                Company and Chongquing Jinxibeina Complete Equipment Imp. & Exp.                Co. |
| 10.10                         |   | Consulting                Agreement with Milverton Capital Corporation dated March 1, 2005,                and                renewals thereto                                                                                                                                                       |
| 14.1                          |   | Code                of Ethics                                                                                                                                                                                                                                                                        |
| 16.1                          |   | Letter                from BDO Dunwoody, Chartered Accountants, to the U.S. Securities                and                Exchange Commission (5)                                                                                                                                                     |
| 16.2                          |   | Letter                from Raber Mattuck, Chartered Accountants, to the U.S. Securities                and                Exchange Commission (5)                                                                                                                                                    |
| 21.1                          |   | List                of Subsidiaries ◊                                                                                                                                                                                                                                                          |
| 23.1                          |        | Independent                Auditor's Consent *                                                                                                                                                                                                                                                  |
| 31.1                          |   | Certification                of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as                adopted                pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 *                                                                                                     |
| 31.2                          |   | Certification                of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as                adopted                pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 *                                                                                                     |
| 32.1                          |   | Certification                of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as                adopted                pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 *                                                                                                     |
| 32.2                          |   | Certification                of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as                adopted                pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 *                                                                                                     |

| *       | Filed                herewith                                                                                                                                                                                                          |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ◊ | Previously                Filed                                                                                                                                                                                                        |
| (1)     | Filed                on November 20, 2000, as an exhibit to the Company’s report on Form 10-QSB                for the three months ended September 30, 2000, and incorporated herein                by                reference |
| (2)     | Filed                on December 29, 2000, as an exhibit to the Company’s transitional report                on Form 10-KSB for the nine months ended September 30, 2000, and                incorporated herein by reference    |
| (3)     | Filed                on February 14, 2001, as an exhibit to the Company’s report on Form 10-QSB                for the three months ended December 31, 2000, and incorporated herein                by                reference  |
| (4)     | Filed                on May 15, 2001, as an exhibit to the Company’s report on Form 10-QSB for                the three months ended March 31, 2001, and incorporated herein by                reference                         |
| (5)     | Filed                on December 29, 2001, as an exhibit to the Company’s report on Form 10-KSB                for the year ended September 30, 2001, and incorporated herein by                reference                        |
| (6)     | Filed                on August 14, 2003, as an exhibit to the Company’s report on Form 10-QSB                for the three months ended June 30, 2003, and incorporated herein                by                reference        |

----

| ORGANIC                RECYCLING TECHNOLOGIES INC. |
|----------------------------------------------------|
|                                               |   |
|                                               |   |
| By:                                      | /s/                Edwin Kroeker |
|                                               | Edwin                Kroeker |
|                                               | Chief                Executive Officer, President and Director |
|                                               |   |
|                                               |   |
| Date:                                    | January                31, 2008 |

| By:                   | /s/                Edwin Kroeker                                  |
|---------------------------------|-------------------------------------------------------------------|
|                            | Edwin                Kroeker                                      |
|                            | President                and Chief Executive Officer              |
|                            | (Principal                Executive Officer), Director            |
|                            |                                                                   |
| Date:                      | January                31, 2008                                   |
|                            |                                                                   |
| By:                   | /s/                Chad Burback                                   |
|                            | Chad                Burback                                       |
|                            | Chief                Financial Officer                            |
|                            | (Principal                Financial Officer), Treasurer, Director |
|                            |                                                              |
|                            |                                                              |
| Date:                 | January                31, 2008                                   |
|                            |                                                              |
| By:                   | /s/                Michael D. Brown                               |
|                            | Michael                D. Brown                                   |
|                            | Director                                                          |
|                            |                                                              |
|                            |                                                              |
| Date:                 | January                31, 2008                                   |
|                            |                                                              |
|                            |                                                              |
| By:                   | /s/                Peter Gardner                                  |
|                            | Peter                Gardner                                      |
|                            | Director                & Secretary                           |
|                            |                                                              |
| Date:                 | January                31, 2008                                   |

----