UNITED
      STATES


SECURITIES
      AND EXCHANGE COMMISSION


Washington,
      D.C. 20549








Form
      10-KSB








x  Annual
      report under section 13 or 15(d) of the Securities Exchange Act of
      1934





For
      the
      fiscal year ended September 30,
      2007








o  Transition
      report under section 13 or 15(d) of the Securities Exchange Act of
      1934





For
      the
      transition Period from _____________ to _____________








Commission
      File Number: 000-30096








(Name
      of
      small business issuer in its charter)








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








210
      Broadway, Unit 208


Orangeville,
      Ontario
      L9W5G4


(Address
      of principal executive offices, including Zip Code)








(888)
      419-0430


(Issuer’s
      telephone number)















Securities
      registered under Section 12(b) of the Act:





(Title
                of Class)
            
            Name
                of exchange on which registeredNone
            
            None





Securities
      registered under Section 12(g) of the Act: Common
      Stock, $0.001 par value





Check
      whether the issuer is not required to file reports pursuant to Section 13 or
      15(d) of the Exchange Act. o





Check
      whether the issuer (1) filed all reports required to be filed by Section 13
      or
      15(d) of the Securities Exchange Act during the past 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.     ̈ YesxNo





Check
      if
      there is no disclosure of delinquent filers in response to Item 405 of
      Regulation S-B is not contained in this form, and no disclosure will be
      contained, to the best of registrant’s knowledge, in definitive proxy or
      information statements incorporated by reference in Part III of this Form 10-KSB
      or any amendment to this Form 10-KSB.   o





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





The
      issuer’s revenues for its most recent fiscal year were: None





The
      aggregate market value of the voting common equity held by non-affiliates of
      the
      registrant, based on the average of the closing bid and asked prices as of
      December 31, 2007 as reported on the OTC Bulletin Board, was $16,311,973. Shares
      of common stock held by each officer and director and by each person who owns
      five percent or more of the outstanding common stock have been excluded from
      this calculation as such persons may be considered to be affiliated with the
      issuer.





As
      of
      December 31, 2007, the registrant had 52,761,740 shares of Common Stock, $0.001
      par value per share, issued and outstanding.





Transitional
      Small Business Disclosure Format: ̈
      YesxNo







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          2
          -


ORGANIC
      RECYCLING TECHNOLOGIES INC.


(FORMERLY
      – EAPI ENTERTAINMENT INC.)





Index
      to


Annual
      Report on Form 10-KSB


For
      the Year Ended September 30, 2007






PagePart
                IItem
                1.
            Description
                of Business
            4Item
                2.
            Description
                of Property
            6Item
                3.
            Legal
                Proceedings
            6Item
                4.
            Submission
                of Matters to a Vote of Security Holders
            6Part
                IIItem
                5.
            Market
                for Common Equity and Related Stockholder Matters
            7Item
                6.
            Management’s
                Discussion and Analysis of Financial Condition or Plan of
                Operation
            8Item
                7.
            Financial
                Statements
            13Item
                8
            Changes
                In and Disagreements With Accountants on Accounting and Financial
                Disclosure
            26Item
                8A.
            Controls
                and Procedures
            26Item
                8B.
            Other
                Information
            26Part
                IIIItem
                9.
            Directors,
                Executive Officers, Promoters and Control Persons; Compliance With
                Section
                16(a) of the Exchange Act
            26Item
                10.
            Executive
                Compensation
            28Item
                11.
            Security
                Ownership of Certain Beneficial Owners and Management and Related
                Stockholder Matters
            29Item
                12.
            Certain
                Relationships and Related Transactions
            30Item
                13.
            Exhibits
            31Item
                14.
            Principal
                Accountant Fees and Services
            31Signatures
            32





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          3
          -


PART
      I





FORWARD-LOOKING
      STATEMENTS





Except
      for the historical information presented in this document, the matters discussed
      in this Form 10-KSB, and specifically in the sections entitled, “Description of
      Business” and “Management’s Discussion and Analysis of Financial Condition or
      Plan of Operation,” or otherwise incorporated by reference into this document
      contain “forward-looking statements.” These statements can be identified by the
      use of forward-looking terminology such as “believes,” “expects,” “may,” “will,”
“intends,” “should,” or “anticipates” or the negative thereof or other
      variations thereon or comparable terminology, or by discussions of strategy
      that
      involve risks and uncertainties. You should not place undue reliance on
      forward-looking statements. Forward-looking statements involve risks and
      uncertainties, including those identified within the section entitled “Risk
      Factors” and elsewhere in, or incorporated by reference into, this Form 10-KSB.
      The actual results that the Company achieves may differ materially from any
      forward-looking statements due to such risks and uncertainties. These
      forward-looking statements are based on current expectations, and the Company
      assumes no obligation to update this information. Readers are urged to carefully
      review and consider the various disclosures made by the Company in this Annual
      Report on Form 10-KSB and in the Company’s other reports filed with the
      Securities and Exchange Commission (the “SEC”) that attempt to advise interested
      parties of the risks and factors that may affect the Company’s
      business.





In
      this
      document, unless the context otherwise requires, the "Company" refers to Organic
      Recycling Technologies Inc. and its subsidiaries. All dollar amounts in this
      Annual Report are in U.S. dollars unless otherwise stated.





ITEM
      1.    DESCRIPTION OF BUSINESS





OVERVIEW





In
      early
      January 2005, the Company’s Board of Directors determined to change the
      direction of the Company’s business focus to waste management and recycling
      technologies. The Company has investigated several potential opportunities
      in
      the United States, Canada, Europe, Latin America and Asia, where opportunities
      exist for various segments of the waste management business and the exploitation
      of recycling technologies for both organic and inorganic waste materials. The
      Company has identified and is pursing its due diligence with respect to a
      variety of specific projects which it is pursing  it continues to seek
      out additional opportunities in environmental technologies directly related
      to
      waste management and recycling.  In addition, the Company intends to
      explore and seek out opportunities in alternative energy, air and water related
      environmental technologies. To date the Company has not generated any revenues
      or has the Company concluded any definitive agreements for any specific
      opportunities in the waste management or environmental technology industries,
      and there are no assurances that the Company will be able to do so in the
      future.





CORPORATE
      BACKGROUND





The
      Company is a Nevada corporation incorporated on September 15, 1995, under the
      name Home Web, Inc. In January 2001, the Company changed its name from "Home
      Web, Inc." to "Duro Enzyme Products Inc." In May 2003, the Company changed
      its
      name from “Duro Enzyme Products Inc.” to “EAPI Entertainment, Inc.” and the
      Company’s accounting year was changed from a December 31 year-end to a September
      30 year-end. On July 7, 2005 the Company changed its name to Organic Recycling
      Technologies Inc.


From
      2000
      to December 2002, the Company was engaged in the business of developing
      technologies based on the production of natural stable enzymes and the
      development of various applications for those enzymes. Early in 2003, the
      Company undertook a reorganization of its corporate affairs in connection with
      a
      determination by its Board of Directors to pursue business opportunities in
      the
      areas of electronic computer entertainment, education, music and other areas
      of
      the entertainment industry.





In
      the
      second quarter of 2005, the Company’s Board of Directors determined that better
      opportunities existed for it outside of the entertainment industry. The Company
      is now directing its business activities to seeking out opportunities in the
      field of waste management, focusing on inorganic and organic recycling
      technologies, environmental technologies and recycling technologies. The Company
      is also exploring the acquisition of technologies and considering development
      of
      projects in the renewable energy, water and air pollution treatment fields.
      The
      Company is in the development stage.





INDUSTRY
      BACKGROUND





The
      waste
      business is undergoing fundamental changes. There is no single solution to
      the
      environmental problems that exist in dealing with an ever growing stream of
      waste materials. In particular, the vast growth that is happening throughout
      Asia has created new demands and new opportunities. Countries such as China
      and
      India are emerging from third world status into modern industrial consumer
      states. The governments in these countries are turning their attention to
      dealing with the waste being created by newly created industrial and consumer
      societies and are seeking ways to protect their environment.





The
      waste
      industry is highly competitive; however, the Company believes that opportunities
      exist for start up companies that seek out strong connections with joint venture
      partners and who have innovative technologies and solutions to the waste and
      general environmental problems.  However, there is no assurance of
      success with respect to the Company’s ability to find joint venture partners or
      to complete any business venture that it may embark upon within the
      industry.





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          4
          -




BUSINESS
      STRATEGY





The
      Company has determined that its resources and energies would best be utilized
      in
      partnering with technology developers and waste management companies in a wide
      range of environmental technologies. Worldwide problems in dealing with various
      forms of waste management continue to grow, as does the need for the utilization
      of new and improved technologies that allow for a more environmentally efficient
      utilization of resources. Issues such as global warming and environmental
      pollution increase the need for various methods to deal with both organic and
      inorganic waste in ways that are constantly undergoing innovation and
      refinement. As landfills near capacity and, in some cases, are shut down, and
      as
      composting is severely limited in its application, the need for new approaches
      to waste management is constant. If these problems exist in North America,
      the
      problems in Asia are perhaps even more extensive as the industrial and
      population base continues to grow and, as the infrastructure for waste
      management is less developed, the need for, and opportunities for, solutions
      continue to grow. As a consequence of the many opportunities that are perceived
      to exist in China, most of the Company’s focus has been on that
      country.





Although
      not directly related to the waste problem, the industry is also focused on
      technologies that may lead to better ways to produce energy, cut emissions
      and
      halt the growth of greenhouse gases in the environment. The Company does not
      intend to restrict itself to waste recycling, but will seek out new technologies
      to better utilize existing resources in an environmentally friendly way and
      thereby reduce those by-products that are destructive to the
      environment.




Recycling





One
      of
      the most important aspects of waste management is that of recycling. This
      process allows waste that would find its way into landfills or garbage dumps
      to
      be treated and utilized as raw materials in the production of new products
      and
      energy. In North America and in Europe, recycling and energy production has
      become commonplace. The separation of waste streams into glass, plastics and
      mixed organics has allowed new uses for some of the materials that formerly
      would have been discarded. As new technologies evolve, it is anticipated that
      recycling technologies will continue to emerge. For example, in recent years,
      new technologies have been developing to convert organic wastes into new
      products such as fertilizers, feed supplements and bio fuels.





Worldwide
      demand for new and existing technologies appears to be so extensive that it
      is
      not possible to fully evaluate the potential of the worldwide market. It is
      a
      competitive market like any other, however, and from a business standpoint
      there
      is no assurance that the Company will in fact be able to exploit any new
      technologies or maintain a successful posture in respect to the goals it is
      seeking to achieve in the aforesaid business activities.




Marketing
      Waste Technologies





The
      Company is exploring various opportunities to market waste management and other
      relevant technologies through the development of web-based and traditional
      marketing centers. The Company is at the initial stages of this activity. It
      is
      intended that this on-line marketing center will provide information and sales
      on various technologies to market to both consumers and retailers.





STATUS
      OF BUSINESS DEVELOPMENT





The
      Company has been actively involved in reviewing various technologies in the
      waste management business as well as other environmental technologies. The
      following major corporate developments occurred during the past two fiscal
      years:




(1)
            Engagement
                of Waste Management
                Consultant:On February 4, 2005, the Company engaged Michael Olsson
                as a consultant to the Company. Mr. Olsson holds a B.Sc. specializing
                in
                biotechnology and a M.Sc. chemical and biological engineering. He
                is a
                project manager and senior consultant with Sumas Environmental Remediation
                Group, based in British Columbia, Canada. The Company intends to
                use Mr.
                Olsson’s expertise to assist in the evaluation of potential projects. Mr.
                Olsson’s services are being provided through his company, 0708611 B.C.
                Ltd.(2)
            Engagement
                of HDR Brown Vence
                and Associates, Inc.: In June 2006 the Company entered into a
                consulting services agreement with California based HDR Brown Venice
                and
                Associates, Inc. (“HDR”) a worldwide engineering and architectural
                consulting company, which provides a wide range of technical related
                and
                professional services for various complex industrial projects. HDR
                will be
                utilized by the Company in the evaluation of its projects in respect
                to
                project feasibility, design, implementation and operational supervision.
                The Company has paid approximately $235,000 to HDR as of September
                30,
                2007. The Company intends to continue to work closely with HDR with
                respect to its opportunities for various projects and in the development
                of technologies that will be proprietary to the
                Company.


(3)
            Wind
                Power Technologies:
                The Company has retained HDR to conduct certain feasibility studies
                with
                respect to wind power alternative energy project opportunities in
                China.
                There is no assurance that the Company will be successful in concluding
                any definitive agreements with respect to these alternative energy
                project
                opportunities.





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          5
          -




COMPETITION





The
      waste
      management industry is highly competitive, consisting of a number of large,
      well
      established companies that operate on a national and international scale, as
      well as a number of smaller companies that operate on a regional basis. Almost
      all of these companies are more established and have greater financial resources
      than the Company.





The
      Company intends to differentiate itself from competitors in this industry by
      seeking out and partnering with leading-edge environmental technology and
      project developers to offer a wide range of solutions for waste management
      and
      recycling, wastewater and water treatment, greenhouse gas reduction and
      bioenergy capture and wind energy production. As part of this development plan,
      the Company intends to seek out business opportunities on an international
      scale, with a particular focus on emerging industrial countries such as China,
      India, Canada and the Middle East.





INTELLECTUAL
      PROPERTY





The
      Company’s performance and ability to compete are somewhat dependent on its
      ability to seek out and utilize these various technologies that are summarized
      above. Although the Company is not primarily in the business of developing
      these
      technologies, it will explore the possibility of developing some of its own
      technologies through its relationship with HDR and others. The main intention
      of
      the Company is to seek out new technologies to apply to waste management,
      renewable energy and other environmental problems. It is possible that the
      technologies that the Company seeks to exploit in carrying out its business
      plan
      may have patent or other protections. The Company itself does not possess any
      patents or other protection in respect to intellectual property.





EMPLOYEES





For
      the
      past twelve months ending September 30, 2007 the Company has continued to have
      one employee and ten consultants. Of these 11 individuals, two are classified
      as
      executive officers, five as administrative personnel, and four as sales and
      marketing personnel. The Company’s consultants and employee do not belong to a
      collective bargaining unit, and the Company is not aware of any labor union
      organizing activity. The Company believes its future success will depend in
      large part on its continuing ability to attract, train and retain skilled
      technical, sales, marketing and customer support personnel.





GOVERNMENT
      REGULATION





The
      waste
      industry is highly regulated. Any waste disposal or recycling facility that
      the
      Company constructs or operates will be required to pass strict government
      requirements. These regulations will vary from country to country and may
      include regulations at the federal, state and municipal levels. As a result,
      the
      Company expects that a significant portion of its capital expenditures in
      constructing or operating any waste disposal or recycling facilities will be
      allocated to complying with environmental regulations at various levels of
      government. The Company expects that these costs will include those associated
      with surveying, designing, operating, monitoring and maintaining any facilities
      that it constructs or operates. Although the Company expects that considerable
      time, effort and funds will be expended on obtaining and maintaining necessary
      environmental and other government permits and approvals, there are no
      assurances that the Company will be able to obtain or maintain such permits
      or
      approvals.




ITEM
      2.    DESCRIPTION OF PROPERTY





The
      Company had leased its principal executive office, consisting of approximately
      2,500 square feet, at a monthly rent of $2,420, located at 204 – 3970 East
      Hastings Street, Burnaby, British Columbia, Canada, V5C 6C1. The Company leased
      this property from 696092 B.C. Ltd., a private company owned by one of our
      directors, Peter Gardner. In March 2007, the Company entered into a 3 year
      lease
      with a non affiliated party to lease an office space of approximately 1,100
      square feet in Orangeville, Ontario, at a monthly rental of $1,244. Although
      maintaining its British Columbia office, the Company’s corporate headquarters
      were relocated to Orangeville, Ontario.





ITEM
      3.    LEGAL PROCEEDINGS





To
      the
      knowledge of the Company, neither the Company nor its subsidiaries are party
      to
      any legal proceeding or litigation and it knows of no other threatened or
      contemplated legal proceedings or litigation.




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





None.




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            6
            -




PART
      II





ITEM
      5.    MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER
      MATTERS





MARKET
      INFORMATION





The
      Company’s common stock was traded on the Over-the-Counter Bulletin Board (the
“OTC BB”) under the symbol “ORCY.” The Company’s trading symbol was changed from
“EPEI” to “ORCY” on July 11, 2005 concurrent with the Company’s change of name.
      Subsequently the Company’s common stock was traded on the Pink Sheets Electronic
      Quotation systems in other over-the-counter trading.





The
      following table sets forth, the range of high and low bid prices of the
      Company’s common stock for the last two fiscal years of actual trading, as
      reported by the OTC BB / Pink Sheets:





FISCAL
                QUARTERS ENDED
            
            HIGH
                ($)*
            
            LOW
                ($)*December
                31, 2005
            
            $0.50
            
            $0.30March
                31, 2006
            
            $0.75
            
            $0.30June
                30, 2006
            
            $0.65
            
            $0.41September
                30, 2006
            
            $0.98
            
            $0.50December
                31, 2006
            
            $0.75
            
            $0.45March
                31, 2007
            
            $0.80
            
            $0.58June
                30, 2007
            
            $0.75
            
            $0.41September
                30, 2007
            
            $0.68
            
            $0.31





*The
      pricing information was provided by the OTC BB / Pink Sheets as the case may
      be.





The
      above
      quotations reflect inter-dealer prices, without retail mark-up, markdown or
      commission and may not represent actual transactions.





HOLDERS





As
      of
      September 30, 2007, the Company’s issued and outstanding common stock totaled
      46,985,579 shares, held by approximately 824 stockholders of
      record.




DIVIDENDS





The
      Company has not paid dividends in prior years and has no plans to pay dividends
      in the near future. The Company intends to reinvest its earnings, if any are
      achieved, in the continued development and operation of its business. Any
      payment of dividends would depend upon the Company’s pattern of growth,
      profitability, financial condition, and such other factors as the Board of
      Directors may deem relevant.




SECURITIES
      AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS





The
      Company does not currently have any compensation plans or individual
      compensation arrangements under which its equity securities are authorized
      for
      issuance.





RECENT
      SALES OF UNREGISTERED SECURITIES





Between
      July 1, 2007 and September 30, 2007, the Company sold under a private placement,
      4,347,088 shares to investors at 0.50 per share for a consideration of
      $2,173,044. The shares were sold at the fair market value on the date of
      sale.  The shares were sold pursuant to an exemption from registration
      under Regulation S of the Act.





During
      the year ended September 30, 2007 the Company issued 3,297,414 shares of its
      common stock having a value of $1,550,179 (the “Shares”) to 14 consultants. One
      of the consultants, Milverton Capital Corporation is an affiliate of the
      Company, and was issued 1,223,027 shares of common stock, valued at $507,499.90.
      All of the Shares were issued under an exemption from registration pursuant
      to
      Regulation D of the Act and/or Section 4(2) of the Act.


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            7
            -




ITEM
      6.    MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL
      CONDITION OR PLAN OF OPERATION





The
      following discussion should be read in conjunction with the consolidated
      financial statements included herein. Certain statements contained herein may
      constitute forward-looking statements, as discussed at the beginning of
      Part I of this Annual Report. Because such statements include risks and
      uncertainties, actual results may differ materially from those expressed or
      implied by such forward-looking statements. Factors that could cause or
      contribute to such differences include those discussed in the “Risk Factors”
section of this Form 10-KSB.





PLAN
      OF OPERATION





The
      Company’s plan of operation for the next twelve months is summarized as
      follows:





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.





Over
      the
      next twelve months, the Company estimates that it will require approximately
      $5,000,000 to pursue its stated plan of operation. Of this amount approximately,
      $3,500,000 will be comprised of overhead expenses. The actual amounts required
      will depend on whether the Company commences building waste facilities under
      its
      joint venture agreement with CJCE or elsewhere in the next twelve months. It
      is
      important to note that our actual expenditures and financial requirements during
      this period may be greater than or less than the amounts that we have estimated
      herein. The Company is also continuing to seek out new business opportunities,
      and may find new opportunities which have not been accounted for in the
      Company’s budget estimates.




RESULTS
      OF OPERATIONS





Summary
      of Year End Results





Year
                Ended September 30,2007
            
            
            2006
            
            
            Percentage
                Increase/(Decrease)Revenue
            
            $
            --
            
            
            $
            --
            
            
            N/AOperating
                Expenses
            
            
            (3,449,890
            )
            
            
            (2,820,047
            )
            
            
            22.3
            %Other
                Income (Expense)
            
            
            329,879
            )
            
            
            (498,863
            )
            
            
            166.1
            %Net
                Income (Loss)
            
            $
            (3,120,011
            )
            
            $
            (3,318,910
            )
            
            
            (6.0)
            %




Revenue





We
      do not
      anticipate earning revenues until such time as we have completed commercial
      development of planned products and businesses. We are presently in the
      development stage of our business and we can provide no assurance that we will
      be able to complete commercial development or successfully sell or license
      our
      planned products once development is complete.






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          8
          -






Operating
      Costs and
      Expenses




The
      Company incurred total operating expenses of $3,120,011 for the year ended
      September 30, 2007, which was a decrease of $198,899 over the operating expenses
      incurred by the Company for the year ended September 30, 2006.





An
      analysis of the major operating items shows the following changes:





(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 $603,137 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 $750,000
                of the
                debt owed by the Company for consulting services. No such debts were
                forgiven during the year ended September 30,
                2006.





As
      the
      Company anticipates that its business operations will continue at approximately
      the same level during the next twelve months, the Company expects its expenses
      to continue to remain at the same level during the next fiscal
      year.





LIQUIDITY
      AND FINANCIAL CONDITION





Cash
                Flows
            Year
                Ended September 30,2007
            
            
            2006Net
                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
            
            
            
            1,067,365Effects
                of Foreign Currency Translations
            
            (42,028)
            
            
            
            3,163Net
                Increase (decrease) in Cash During Period
            $
            526,936
            )
            
            $
            (15,278)





Working
                Capital
            
            At
              September
                30, 2007
            
            
            At
              September
                30, 2006
            
            
            Percentage
              Increase/(Decrease)Current
                Assets
            
            $
            719,845
            
            
            $
            135,366
            
            
            
            424.1%Current
                Liabilities
            
            
            (4,456,611
            )
            
            
            (4,867,650
            )
            
            
            (0.08)%Working
                Capital Deficit
            
            $
            (3,736,765
            )
            
            $
            (4,732,284
            )
            
            
            (21.0)%




The
      Company had cash on hand of $589,287 as of September 30, 2007 compared to cash
      of $62,350 as of September 30, 2006. As of September 30, 2007, the Company
      had a
      net stockholders’ deficit of $4,838,109 with accumulated losses of $19,223,250
      including a net loss of $3,120,011 for the year ended September 30, 2007. Due
      to
      the Company’s substantial working capital deficit and its current inability to
      generate revenues, there is no assurance that the Company will be able to
      continue as a going concern or achieve material revenues or profitable
      operations. In addition, there can be no guarantee that financing adequate
      to
      carry out the Company’s business plan will be available on terms acceptable to
      the Company, or at all.




-
            9
            -


The
      Company owes the following amounts to related parties, as described in greater
      detail in Item 12 of this Annual Report on Form 10-KSB:





Creditor
            
            As
                of
              September
                30, 2007
            
            
            As
                of
              September
                30, 2006Brampton
                Holdings Ltd.
            
            $
            -
            
            
            $
            770,665Sanclair
                Holdings Ltd.
            
            
            249,484
            
            
            
            829,312Pacific
                Ocean Resources Corporation
            
            
            -
            
            
            
            46,954529473
                B.C. Ltd.
            
            
            -
            
            
            
            310,535Rene
                Branconnier
            
            
            28,449
            
            
            
            31,677Milverton
                Capital Corporation
            
            
            1,521,773
            
            
            
            712,295Total
            
            $
            1,799,706
            
            
            $
            2,701,438





FINANCING
      NEEDS





The
      Company anticipates that it will require approximately $5,000,000 to finance
      its
      stated plan of operation which is being implemented in the fiscal year ending
      September 2007. These cash requirements are in excess of the Company’s current
      cash and working capital resources. Accordingly, the Company will require
      additional financing in order to pursue its plan of operation. The Company
      plans
      to complete equity financings through private placements of the Company’s common
      stock in order to raise the funds necessary to enable the Company to proceed
      with its plan of operation. The Company is seeking governmental environmental
      funds investment or institutional and or private debt financing for the purposes
      of achieving its goals in China. The Company has no arrangements in place for
      any additional financing and there is no assurance that the Company will be
      able
      to acquire the necessary financing when and if required. There is no assurance
      that any party will advance additional funds to the Company in order to enable
      it to sustain its plan of operation.





The
      Company plans to utilize a combination of sale of additional equity and
      potential debt to fund its longer-term growth over a period of two to five
      years, subject to the Company obtaining the necessary business assets to achieve
      this financing. The availability of future financing will depend on market
      conditions. The forecast of the period of time through which the Company’s
      financial resources will be adequate to support operations is a forward-looking
      statement that involves risks and uncertainties. The actual funding requirements
      may differ materially from this as a result of a number of factors including
      plans to rapidly expand its new operations. There can be no assurance that
      financing adequate to carry out the Company’s business plan will be available on
      terms acceptable to the Company, or at all.





CRITICAL
      ACCOUNTING POLICIES





Effect
      of Fluctuations in Foreign Exchange Rates





The
      Company’s reporting and functional currency is the US dollar. Currently, the
      Company’s primary operations are located in Canada. Transactions in Canadian
      dollars have been translated into U.S. dollars using the current rate method,
      such that assets and liabilities are translated at the rates of exchange in
      effect at the balance sheet date and revenue and expenses are translated at
      the
      average rates of exchange during the appropriate fiscal period. As a result,
      the
      carrying value of the Company’s investments in Canada is subject to the risk of
      foreign currency fluctuations. Additionally, any revenues received from the
      Company’s international operations in other than U.S. dollars will be subject to
      foreign exchange risk.





Issuance
      of Shares for Services





The
      Company accounts for the issuance of equity instruments to acquire goods and
      services based on the fair value of the goods and services or the fair value
      of
      the equity instrument at the time of issuance, whichever is more reliably
      measurable.







-
          10
          -






RISK
      FACTORS





Shareholders
      and prospective purchasers of the Company's Common Stock should carefully
      consider the following risk factors in addition to the other information
      appearing in this Annual Report on Form 10-KSB.





The
      Company May Not Be Able To Continue As A Going Concern.





The
      Company’s ability to continue as a going concern is dependent upon its ability
      to obtain additional financing, restructure its debt, streamline its business
      and reduce its costs. The Company is currently in the process of identifying
      sources of additional financing, negotiating changes to its debt structure
      and
      evaluating its strategic options. However, there are no assurances that these
      plans can be accomplished on satisfactory terms, or at all, or that they will
      provide sufficient cash to fund the Company’s operations, pay the principal of,
      and interest on, the Company’s indebtedness, fund the Company’s other liquidity
      needs or permit the Company to refinance its indebtedness. The Company’s
      inability to obtain additional financing, restructure its indebtedness,
      streamline its business or reduce its costs would have a material adverse effect
      on the Company’s financial condition, results of operations and ability to
      satisfy its obligations, and may result in the Company pursuing a restructuring
      of its indebtedness either on a consensual basis or under the provisions of
      bankruptcy legislation, or liquidating the Company’s business and operations.
      Further, the Company’s inability to obtain additional financing or restructure
      its indebtedness, or pursue a restructuring of its indebtedness either on a
      consensual basis or under the provisions of bankruptcy legislation, may result
      in the Company’s security holders losing all or a material portion of their
      investment in the Company’s securities.




The
      Company May Acquire Unrelated Business and Change Its Current
      Operations.





The
      Company is currently looking at other business models and business operations.
      These new operations may be materially different from the current business
      model
      and operation that currently exist. Any change in the business operations may
      materially affect the Company’s share price and revenue generation
      ability.





The
      Company Requires Additional Financing In Order To Pursue Its Plan Of
      Operation.





The
      Company’s plan of operation will require an estimated $5,000,000 to be spent
      over the next twelve months. The Company currently does not earn revenue from
      its operations and does not anticipate earning revenue in the near future.
      As
      such, the Company’s current operating funds are insufficient to complete its
      plan of operation without additional financing. Due to the Company’s substantial
      working capital deficit, the amount of financing required for pursuing its
      plan
      of operation and the Company’s current inability to generate revenues, the
      Company will require financing in order to pursue its plan of operation. In
      addition, there is no assurance that the Company’s actual cash requirements will
      not exceed its estimates. If the actual cost of building and developing the
      Company’s proposed projects in China is greater than expected, then the
      Company’s ability to complete its plan of operation may be adversely affected.
      If the Company is unable to acquire sufficient financing on terms acceptable
      to
      it, the Company’s operations could be severely limited and the Company may not
      be able to implement its plan of operation.


It
      is
      anticipated that any additional financing obtained by the Company will be by
      way
      of equity financing through private placements of the Company’s common stock. If
      such equity financing is obtained, the interests of the Company’s existing
      stockholders may be diluted. The Company continues to seek out debt financing
      private or institution for its projects in China. The Company does not have
      any
      finalized financing arrangements in place at this time and there is no assurance
      that the Company will be able to acquire sufficient financing on terms
      acceptable to it. No commitments to provide additional funds have been made
      by
      the Company’s management or the Company’s existing stockholders.





The
      Company May Not Be Able To Meet Its Commitments To Build Plants In China Or
      Elsewhere.





Even
      if
      sufficient financing is obtained, there is no assurance that the Company will
      be
      able to successfully build waste management facilities in China or elsewhere.
      The construction of these projects is dependent on a number of factors outside
      of the Company’s control, including the availability of contract workers,
      qualified tradespersons and federal and local government permits. As the Company
      will be operating in a foreign jurisdiction local issues may prevent the Company
      from completing its agreements to build these plants or, once built, to put
      them
      into operation.





The
      Company May Not Be Able To Secure Agreements With Potential Joint Venture
      Partners Or Such Partners May Be Unreliable Or Unable To Carry Through With
      Their Obligations Under Such Agreements.





Although
      the Company has entered into joint venture agreements with CJCE with respect
      to
      the construction of waste management facilities in China, there is no assurance
      that CJCE will be able or willing to fulfill their obligations under those
      agreements. If CJCE fails to meet its obligations with respect to the joint
      venture in Chongqing, China, our future business prospects will be significantly
      damaged.




The
      Company’s Business Is Dependent On Its Ability to Market Itself And To Locate
      Promising Technologies and Business Opportunities In Waste
      Management.





As
      the
      Company does not have any specific technology that it owns, it is attempting
      to
      market itself as a Company that is able to locate waste management and recycling
      opportunities and find joint venture partners to realize those opportunities.
      As
      the Company is a start up Company there is no guarantee that it will be able
      to
      either locate or exploit opportunities that may exist.





-
          11
          -






The
      Company Operates In An Intensely Competitive Industry.





The
      waste
      management and recycling industry is highly competitive with many large
      companies with extensive resources and contacts that will compete with the
      Company. Although the Company is attempting to locate opportunities that larger
      companies may have less interest in, the Company expects that it will continue
      to face strong competition within this industry. Certain of the markets in
      which
      the Company expects to compete will be served by one or more established waste
      management companies of varying sizes and resources. The Company also competes
      with various government corporations at the local, provincial and federal
      levels. The Company expects that many of its competitors will have significant
      competitive advantages in that they may be better funded and better established
      than the Company.  This industry competition could have a materially
      adverse effect on the Company’s business prospects, financial condition and
      operating results.





The
      Company’s Operating Results are Likely to Fluctuate Significantly, Which Could
      Increase the Volatility of its Stock Price.





As
      a
      result of the Company’s limited operating history and the planned expansion of
      its business operations, the Company’s quarterly and annual revenues and
      operating results are likely to fluctuate from period to period. For this
      reason, you should not rely on period-to-period comparisons of the Company’s
      financial results as indications of future results. The Company’s future
      operating results could fall below the expectations of public market analysts
      or
      investors and significantly reduce the market price of its common stock.
      Fluctuations in the Company’s operating results could increase the volatility of
      its stock price.





The
      Company Depends Upon A Small Number Of Key Persons To Implement Its Business
      Plan, And The Loss Of Any Of Them May Affect Its Business
      Operations.





The
      Company is dependent on several key employees and consultants to implement
      its
      business plan, and the loss of any of them may affect the Company’s ability to
      provide the required quality of service and technical support necessary to
      achieve and maintain a competitive market position. There is no assurance that
      these key employees and consultants will continue to manage the Company’s
      affairs in the future. The Company has not obtained key man insurance with
      respect to its employee.




The
      Company Is Subject To The SEC Penny Stock Rules, Which May Reduce Trading Of
      Its
      Common Stock.





The
      SEC
      has adopted rules that regulate broker-dealer practices in connection with
      transactions in penny stocks. Penny stocks are generally equity securities
      with
      a price of less than $5.00, other than securities registered on certain national
      securities exchanges or quoted on the NASDAQ system, provided that current
      price
      and volume information with respect to transactions in such securities is
      provided by the exchange or system. The penny stock rules require a
      broker-dealer, prior to a transaction in a penny stock not otherwise exempt
      from
      those rules, to deliver a standardized risk disclosure document prepared by
      the
      Commission, which: (a) contains a description of the nature and level of risk
      in
      the market for penny stocks in both public offerings and secondary trading;
      (b)
      contains a description of the broker's or dealer's duties to the customer and
      of
      the rights and remedies available to the customer with respect to a violation
      of
      such duties or other requirements of Securities laws; (c) contains a brief,
      clear, narrative description of a dealer market, including bid and ask prices
      for penny stocks and significance of the spread between the bid and ask price;
      (d) contains a toll-free telephone number for inquiries on disciplinary actions;
      (e) defines significant terms in the disclosure document or in the conduct
      of
      trading in penny stocks; and (f) contains such other information and in such
      form as the Commission shall require by rule or regulation. The broker-dealer
      also must, prior to effecting any transaction in a penny stock, provide the
      customer with: (a) bid and offer quotations for the penny stock; (b) the
      compensation of the broker-dealer and its salesperson in the transaction; (c)
      the number of shares to which such bid and ask prices apply, or other comparable
      information relating to the depth and liquidity of the market for such stock;
      and (d) monthly account statements showing the market value of each penny stock
      held in the customer's account. In addition, the penny stock rules require
      that,
      prior to a transaction in a penny stock that is not otherwise exempt from those
      rules, the broker-dealer must: (a) make a special written determination that
      the
      penny stock is a suitable investment for the purchaser and (b) receive from
      the
      purchaser his or her written acknowledgement of receipt of the determination
      and
      a written agreement to the transaction.





These
      disclosure requirements may have the effect of reducing the trading activity
      in
      the secondary market for our stock and therefore stockholders may have
      difficulty selling those securities.





The
      Company Does Not Anticipate Paying Dividends To Its Security Holders In The
      Foreseeable Future Which Makes Investment In Its Stock Speculative Or
      Risky.





The
      Company has not paid dividends on its common stock and does not anticipate
      paying dividends on its common stock in the foreseeable future. The Board of
      Directors has sole authority to declare dividends payable to the Company’s
      shareholders. The fact that the Company has not and does not plan to pay
      dividends indicates that the Company must use all of its funds generated by
      operations for reinvestment in its operating activities and also emphasizes
      that
      the Company may not continue as a going concern. Investors also must evaluate
      an
      investment in the Company solely on the basis of anticipated capital
      gains.





-
          12
          -


ITEM
      7.        CONSOLIDATED FINANCIAL
      STATEMENTS





Financial
      Statements are referred to in Item 13(a), listed in the Index to Financial
      Statements and filed and included herein as a part of this Annual Report on
      Form
      10-KSB.











ORGANIC
      RECYCLING TECHNOLOGIES INC.


(FORMERLY
      – EAPI ENTERTAINMENT INC.)








INDEX


FINANCIAL
      STATEMENTS








PageReport
                of Independent Registered Public Accounting Firm
            14Consent
              of Independent Auditor
            15Consolidated
                Balance Sheet at September 30, 2007
            16Consolidated
                Statement of Operations for the years ended
              September
                30, 2007 and 2006
            17Consolidated
                Statement of Shareholders’ Deficit for the years ended
              September
                30, 2007 and 2006
            18Consolidated
                Statement of Cash Flows for the years ended
              September
                30, 2006 and 2006
            19Notes
                to Consolidated Financial Statements
            20 -
                26










-
          13
          -


Hawkins
      Accounting


Certified
      Public Accountant


Audit  .  tax  .  consulting








To
      the Board of Directors and Shareholders


Organic
      Recycling Technologies, Inc.


Orangeville,
      Ontario




Report
        of Independent
        Registered Public Accounting Firm


I
      have
      audited the consolidated balance sheet of Organic Recycling Technologies, Inc.
      as of September 30, 2007 and the related consolidated statements of operations,
      stockholders’ equity and cash flows for the two years then ended. These
      financial statements are the responsibility of the Company’s management. My
      responsibility is to express an opinion on these financial statements based
      on
      my audit.





I
      conducted my audit in accordance with the standards of the Public Company
      Accounting Oversight Board (United States). Those standards require that I
      plan
      and perform the audit to obtain reasonable assurance about whether the financial
      statements are free of material misstatement. An audit includes examining,
      on a
      test basis, evidence supporting the amounts and disclosures in the financial
      statements. An audit also includes assessing the accounting principles used
      and
      significant estimates made by management, as well as evaluating the overall
      financial statement presentation. I believe that my audit provides reasonable
      basis for my opinion.





In
      my
      opinion, the consolidated financial statements referred to above present fairly,
      in all material respects, the financial position of Organic Recycling
      Technologies, Inc. as of September 30, 2007, the results of operations and
      it's
      cash flows for the two years ended September 30, 2007 and 2006 in conformity
      with generally accepted accounting principles in the United States of
      America.





The
      accompanying financial statements have been prepared assuming the Company will
      continue as a going concern. As discussed in Note 7 to the financial statements,
      the Company has incurred net losses since inception, which raise substantial
      doubt about its ability to continue as a going concern. The Company has a
      working capital deficiency of $4,097,607, a net loss of $3,120,011, and a
      shareholders deficit of $4,838,109. The financial statements do not include
      any
      adjustment that might result from the outcome of this uncertainty.










Los
      Angeles, CA





January 7,
      2008










1875
      Century Park East #H-3513 Los Angeles, CA 90067


(310)-553-5707
      FAX (310)-553-5337 hawkinsaccounting1880@yahoo.com




-
          14
          -




ORGANIC
      RECYCLING TECHNOLOGIES INC. AND SUBSIDIARIES


(formerly
      EAPI ENTERTAINMENT, INC.)


CONSOLIDATED
      BALANCE SHEET







September
                30, 2007ASSETSCurrent
                assets:Cash
            
            $
            589,287Non-trade
                receivable
            
            
            66,032Prepaid
                expenses
            
            
            64,526Total
                current assets
            
            
            719,845Net
                capital assets
            
            
            9,498Total
                other assets
            
            
            9,498TOTAL
                ASSETS
            
            $
            729,343LIABILITIES
                AND SHAREHOLDERS' DEFICIENCYCurrent
                liabilities:Accounts
                payable
            
            $
            308,384Accrued
                expenses
            
            
            2,223,591Common
                stock to be issued
            
            
            530,666Due
                to related parties
            
            
            71,785Short
                term notes payable to related parties
            
            
            1,322,185Total
                current liabilities
            
            
            4,456,611TOTAL
                LIABILITIES
            
            
            4,456,611Shareholders'
                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
            
            
            47,621Paid
                in capital
            
            
            16,052,566Accumulated
                comprehensive loss
            
            
            (604,205
            )Accumulated
                deficit
            
            
            (19,223,250
            )Total
                shareholders' deficiency
            
            
            (4,838,109
            )TOTAL
                LIABILITIES AND SHAREHOLDERS' DEFICIENCY
            
            $
            729,343










Notes
      to
      financial statements are an integral part of these consolidated financial
      statements.





-
          15
          -




ORGANIC
      RECYCLING TECHNOLOGIES INC. AND SUBSIDIARIES


(formerly
      EAPI ENTERTAINMENT, INC.)


CONSOLIDATED
      STATEMENT OF OPERATIONS








Year
                Ended September 30,2007
            
            
            2006Revenues
            
            $
            
            
            
            $ExpensesAdvertising
            
            
            219,461
            
            
            
            282,647Depreciation
            
            
            2,383
            
            
            
            1,359Consulting
                and professional fees
            
            
            2,846,752
            
            
            
            2,220,973Rent,
                utilities and telephone
            
            
            85,299
            
            
            
            99,827Office
                and administration
            
            
            24,408
            
            
            
            23,327Investor
                relations and communication
            
            
            133,004
            
            
            
            65,964Travel,
                meals and entertainment
            
            
            135,172
            
            
            
            125,950Total
                expenses
            
            
            3,449,890
            
            
            
            2,820,047Loss
                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
            )
            
            
            3,163Comprehensive
                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










Notes
      to
      financial statements are an integral part of these consolidated financial
      statements.





-
          16
          -




ORGANIC
      RECYCLING TECHNOLOGIES INC. AND SUBSIDIARIES


(formerly
      EAPI ENTERTAINMENT, INC.)


CONSOLIDATED
      STATEMENT OF SHAREHOLDERS’ DEFICIT





Common
                Stock
            
            
            Paid
                in Capital
            
            
            Common
                Stock to be issued
            
            
            Accumulated
                Deficit
            
            
            Accumulated
                Other Comprehensive
                Loss
            
            
            TotalShares
            
            
            AmountBalance
                - 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
            
            
            
            3,163Stock
                issued on subscriptions for cash
            
            
            8,525,703
            
            
            
            8,526
            
            
            
            2,988,470
            
            
            
            (240,671
            )
            
            
            -
            
            
            
            -
            
            
            
            2,756,325Cost
                of raising capital
            
            
            -
            
            
            
            -
            
            
            
            (1,297,656
            )
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            (1,297,656
            )Expense/loan
                settled by stock
            
            
            741,299
            
            
            
            741
            
            
            
            253,827
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            254,568Stock
                to be issued
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            225,141
            
            
            
            -
            
            
            
            -
            
            
            
            225,141Net
                loss
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            (3,318,910
            )
            
            
            -
            
            
            
            (3,318,910
            )Balance
                - September 30, 2006
            
            
            36,523,700
            
            
            $
            36,524
            
            
            $
            11,900,390
            
            
            $
            225,141
            
            
            $
            (16,103,239
            )
            
            $
            (562,177
            )
            
            $
            (4,503,361
            )Foreign
                currency translation adjustment
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            (42,028
            )
            
            
            (42,028
            )Stock
                issued on subscriptions for cash
            
            
            9,866,775
            
            
            
            9,867
            
            
            
            4,827,818
            
            
            
            (131,699
            )
            
            
            -
            
            
            
            -
            
            
            
            4,705,986Cost
                of raising capital
            
            
            -
            
            
            
            -
            
            
            
            (1,252,366
            )
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            (1,252,366
            )Issuance
                of shares to related party
            
            
            1,230,604
            
            
            
            1,231
            
            
            
            576,724
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            577,955Stock
                to be issued for cash
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            437,225
            
            
            
            -
            
            
            
            -
            
            
            
            437,225Net
                loss
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            (3,120,011
            )
            
            
            -
            
            
            
            (3,120,011
            )Balance
                - September 30, 2007
            
            
            47,621,079
            
            
            $
            47,621
            
            
            $
            16,052,566
            
            
            $
            530,666
            
            
            $
            (19,223,250
            )
            
            $
            (604,205
            )
            
            $
            (3,196,600
            )









Notes
      to
      financial statements are an integral part of these consolidated financial
      statements.




-
          17
          -




ORGANIC
      RECYCLING TECHNOLOGIES INC. AND SUBSIDIARIES


(formerly
      EAPI ENTERTAINMENT, INC.)


CONSOLIDATED
      STATEMENTS OF CASH FLOWS








Year
                Ended September 30,2007
            
            
            2006CASH
                FLOWS FROM OPERATING ACTIVITIESNet
                loss
            
            $
            (3,120,011
            )
            
            $
            (3,318,910
            )Adjustments
                to reconcile net loss to net cash used in operating
                activities:Depreciation
            
            
            2,490
            
            
            
            1,359Stock
                issued for services
            
            
            577,955
            
            
            
            443,070Stock
                issued to related parties
            
            
            -
            
            
            
            352,334Forgiveness
                of debt
            
            
            (750,000
            )
            
            
            -Increase
                in non-trade receivables
            
            
            (43,018
            )
            
            
            (23,015
            )Decrease
                in deposits
            
            
            -
            
            
            
            335,000(Increase)
                Decrease in prepaid expenses
            
            
            (14,526
            )
            
            
            266,690Increase
                (decrease) in accounts and fees payable
            
            
            (32,098
            )
            
            
            336,824Increase
                in due to related parties
            
            
            174,362
            
            
            
            -Increase
                in payables and accrued expenses
            
            
            1,343,598
            
            
            
            525,985NET
                CASH USED IN OPERATING ACTIVITIES
            
            
            (1,861,250
            )
            
            
            (1,080,665
            )INVESTING
                ACTIVITIESPurchase
                of equipment
            
            
            (8,206
            )
            
            
            (5,141
            )NET
                CASH USED IN INVESTING ACTIVITIES
            
            
            (8,206
            )
            
            
            (5,141
            )CASH
                FLOWS FROM FINANCING ACTIVITIESProceeds
                from sale of common stock
            
            
            3,890,844
            
            
            
            1,494,820Proceeds
                of short term notes from related parties
            
            
            369,050
            
            
            
            375,710Repayments
                of short term notes to related parties
            
            
            (1,821,476
            )
            
            
            (803,165
            )NET
                CASH PROVIDED BY FINANCING ACTIVITIES
            
            
            2,438,418
            
            
            
            1,067,365EFFECT
                OF FOREIGN CURRENCY TRANSLATION
            
            
            (402,869
            )
            
            
            3,163INCREASE
                (DECREASE) IN CASH
            
            
            526,936
            
            
            
            (15,278
            )CASH
                AT THE BEGINNING OF THE PERIOD
            
            
            62,351
            
            
            
            77,628CASH
                AT THE END OF THE PERIOD
            
            $
            589,287
            
            
            $
            62,350SUPPLEMENTAL
                DISCLOSURESNon-Cash
                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
            
            
            $
            214,191Stock
                subscriptions issued in exchange for consulting contract
            
            $
            -
            
            
            $
            138,400










Notes
      to
      financial statements are an integral part of these consolidated financial
      statements.




-
          18
          -


ORGANIC
      RECYCLING TECHNOLOGIES INC. AND SUBSIDIARIES


(formerly
      EAPI ENTERTAINMENT, INC.)


NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS


SEPTEMBER
      30, 2007








NOTE
      1:   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND
      ORGANIZATION





Organic
      Recycling Technologies Inc. (the “Company”) was incorporated under the laws of
      the State of Nevada on September 15, 1995 under the name Home. Web, Inc. The
      Company’s current business activities, which began in the second quarter of
      2005, include partnering with technology leaders to utilize and apply waste
      management and recycling technologies and bring these technologies to the
      forefront through application in today’s waste crisis. This positively impacts
      the world’s environment and creates a clean and healthy global community for the
      next generation in a way, which provides environmental and financial benefits
      to
      all our stakeholders. The Company is seeking to acquire revenue generating
      businesses or projects with long term potential that will enable the Company
      to
      generate revenues to fund the current business plan in the waste management
      and
      recycling market. Effective on July 7, 2005, the Company changed its name from
      EAPI Entertainment, Inc. to Organic Recycling Technologies Inc.





Basis
      of
      Presentation





The
      consolidated financial statements have been prepared in accordance with
      accounting principles generally accepted in the United States of America. In
      the
      opinion of management, all adjustments (consisting of normal recurring accruals)
      considered necessary for a fair presentation of the results of operations have
      been included.





Principles
      of
      Consolidation





The
      condensed consolidated financial statements include the accounts of Organic
      Recycling Technologies Inc. and its five wholly-owned subsidiaries
      (collectively, the “Company”), one of which (Duro Enzyme Solutions Inc. -
      Canada) owns five subsidiaries:





Organic
      Recycling Technologies, Ltd.


Organic
      Recycling Management, Inc.


ORTI
      Organic Recycling Technologies, Inc., New York


EAPI
      Center, Inc.


Duro
      Enzyme Solutions, Inc. – British Columbia, Canada


EASI
      Studios, Inc.


ORTI
      Organic Recycling Technologies, Inc., British Columbia, Canada


Organic
      Recycling Technologies (China), Inc.


EASI
      Education, Inc.


EASI
      Movies, Music, Television and Video, Inc.





All
      material inter-company transactions have been eliminated in
      consolidation.





Use
      of
      Estimates





The
      Company prepares its financial statements in conformity with accounting
      principles generally accepted in the United States of America. These principles
      require management to make estimates and assumptions that affect the reported
      amounts of assets and liabilities and disclosures of contingent liabilities
      at
      the date of the financial statements and the reported amounts of revenues and
      expenses during the reporting period. Actual results could differ from these
      estimates.





Fair
      Value of Financial
      Instruments





The
      carrying amount of the Company’s financial instruments, including cash, cash
      overdraft, non-trade receivable, accounts payable, related party payables and
      notes and loans payable approximate fair value due to the relative short period
      to maturity for these instruments.


Basic
      and Diluted Net Loss
      per Share





Net
      loss
      per share is calculated in accordance with the Statement of financial accounting
      standards No. 128 (SFAS No. 128), “Earnings per share.” Basic net loss per share
      is based upon the weighted average number of common shares outstanding. Dilution
      is computed by applying the treasury stock method. Under this method, options
      and warrants are assumed to be exercised at the beginning of the period (or
      at
      the time of issuance, if later), and as if funds obtained thereby were used
      to
      purchase common stock at the average market price during the period. Weighted
      average number of shares used to compute basic and diluted loss per share is
      the
      same since the effect of dilutive securities is anti-dilutive.





Cash
      and Cash
      Equivalents





For
      the
      purpose of the statement of cash flows, the company considers all highly liquid
      debt instruments purchased with the original maturity of three months or less
      to
      be cash equivalents.





-
          19
          -




ORGANIC
        RECYCLING TECHNOLOGIES INC. AND SUBSIDIARIES
 (formerly
        EAPI ENTERTAINMENT, INC.)
 NOTES
        TO CONSOLIDATED FINANCIAL STATEMENTS
 SEPTEMBER
        30, 2007




Property
      and Equipment





Property
      and equipment are carried at cost less accumulated depreciation. Depreciation
      is
      provided using the straight line method over the estimated useful life of the
      assets from two to six years.  Expenditures for maintenance and
      repairs are charged to expense as incurred.





Advertising
      and Marketing
      Cost





The
      Company expenses advertising and marketing costs as incurred. Advertising and
      marketing expense for the years ended September 30, 2007 and 2006 amounted
      to
      $219,461 and $282,647, respectively.





Income
      Taxes





The
      Company accounts for income taxes under the Financial Accounting Standards
      Board
      Statement of Financial Accounting Standards No. 109 “Accounting for Income
      Taxes” (‘Statement 109”). Under Statement 109, deferred tax assets and
      liabilities are recognized for the future tax consequences attributable to
      differences between the financial statement carrying amounts of existing assets
      and liabilities and their respective tax bases. Deferred tax assets and
      liabilities are measured using enacted tax rates expected to apply to taxable
      income in the years in which those temporary differences are expected to be
      recovered or settled. Under Statement 109, the effect on deferred tax assets
      and
      liabilities of a change in tax rates is recognized in income in the period
      that
      includes the enactment date.





Comprehensive
      Income
      (Loss)





The
      foreign currency translation gains (losses) resulting from the translation
      of
      the financial statements of the Company’s subsidiaries expressed in Canadian
      dollars to United States dollars are reported as other comprehensive income
      (loss) in the consolidated statements of operations and other comprehensive
      loss
      and as accumulated comprehensive loss in the consolidated balance sheet and
      the
      consolidated statements of shareholders’ deficit.





Foreign
      Currency
      Translation





The
      accompanying consolidated financial statements are presented in United States
      dollars. The functional currency of Duro Enzyme Solutions, Inc. – Canada and its
      five subsidiaries as well as EAPI Center Inc., is the Canadian Dollar. The
      September 30, 2007 financial statements of the Company were translated to United
      States dollars using year-end exchange rates as to assets and liabilities and
      average exchange rates as to revenues and expenses. Capital accounts were
      translated at their historical exchange rates when the capital transactions
      occurred. Net gains and losses resulting from translation of foreign currency
      financial statements are included in the statements of stockholder’s equity as
      other comprehensive income or (loss). Foreign currency transaction gains and
      losses are included in consolidated income (loss). During the years ended
      September 30, 2007 and 2006, foreign currency translation loss of $42,028 and
      gain of $3,163, respectively, are included in the accompanying consolidated
      statements of operations and other comprehensive loss.




Reporting
      Segments





Statement
      of financial accounting standards No. 131, Disclosures about segments of an
      enterprise and related information (SFAS No. 131), which superseded statement
      of
      financial accounting standards No. 14, Financial reporting for segments of
      a
      business enterprise, establishes standards for the way that public enterprises
      report information about operating segments in annual financial statements.
      The
      Company has determined it has only one segment.





Stock-Based
      Compensation





Effective
      January 1, 2006, the Company adopted Statement No. 123R, Share-Based Payment
      (SFAS 123R), which requires companies to measure and recognize compensation
      expense for all stock-based payments at fair value. SFAS 123R is being applied
      on the modified prospective basis. Prior to the adoption of SFAS 123R, the
      Company accounted for its stock-based compensation plans under the recognition
      and measurement principles of Accounting Principles Board (APB) Opinion No.
      25,
      Accounting for Stock Issued to Employees, and related interpretations, and
      accordingly, recognized no compensation expense related to the stock-based
      plans. Under the modified prospective approach, SFAS 123R applies to new awards
      and to awards that were outstanding on January 1, 2006 that are subsequently
      modified, repurchased or cancelled.





In
      compliance with FAS No. 148, for the fiscal year 2005, the Company elected
      to
      continue to follow the intrinsic value method in accounting for its stock-based
      employee compensation plan as defined by APB No. 25 and has made the applicable
      disclosures below.





Issuance
      of Shares for
      Services





The
      Company accounts for the issuance of equity instruments to acquire goods and
      services based on the fair value of the goods and services or the fair value
      of
      the equity instrument at the time of issuance, whichever is more reliably
      measurable.





-
          20
          -




ORGANIC
        RECYCLING TECHNOLOGIES INC. AND SUBSIDIARIES
 (formerly
        EAPI ENTERTAINMENT, INC.)
 NOTES
        TO CONSOLIDATED FINANCIAL STATEMENTS
 SEPTEMBER
        30, 2007




Recent
      Accounting
      Pronouncements





In
      March
      2006 FASB issued SFAS 156 ‘Accounting for Servicing of Financial Assets’ this
      Statement amends FASB Statement No. 140, Accounting for Transfers
      and
      Servicing of Financial Assets and Extinguishments of Liabilities, with
      respect to the accounting for separately recognized servicing assets and
      servicing liabilities. This Statement:





1.
            Requires
                an entity to recognize a servicing asset or servicing liability each
                time
                it undertakes an obligation to service a financial asset by entering
                into
                a servicing contract.





2.
            Requires
                all separately recognized servicing assets and servicing liabilities
                to be
                initially measured at fair value, if
                practicable.





3.
            Permits
                an entity to choose ‘Amortization method’ or ‘Fair value measurement
                method’ for each class of separately recognized servicing assets and
                servicing liabilities:





4.
            At
                its initial adoption, permits a one-time reclassification of
                available-for-sale securities to trading securities by entities with
                recognized servicing rights, without calling into question the treatment
                of other available-for-sale securities under Statement 115, provided
                that
                the available-for-sale securities are identified in some manner as
                offsetting the entity’s exposure to changes in fair value of servicing
                assets or servicing liabilities that a servicer elects to subsequently
                measure at fair value.





5.
            Requires
                separate presentation of servicing assets and servicing liabilities
                subsequently measured at fair value in the statement of financial
                position
                and additional disclosures for all separately recognized servicing
                assets
                and servicing liabilities.




This
      Statement is effective as of the beginning of the Company’s first fiscal year
      that begins after September 15, 2006. Management believes that this statement
      will not have a significant impact on the consolidated financial
      statements.





In
      September 2006, FASB issued SFAS 157 ‘Fair Value Measurements’. This Statement
      defines fair value, establishes a framework for measuring fair value in
      generally accepted accounting principles (GAAP), and expands disclosures about
      fair value measurements. This Statement applies under other accounting
      pronouncements that require or permit fair value measurements, the Board having
      previously concluded in those accounting pronouncements that fair value is
      the
      relevant measurement attribute. Accordingly, this Statement does not require
      any
      new fair value measurements. However, for some entities, the application of
      this
      Statement will change current practice. This Statement is effective for
      financial statements issued for fiscal years beginning after November 15, 2007,
      and interim periods within those fiscal years. The management is currently
      evaluating the effect of this pronouncement on financial
      statements.





In
      September 2006, FASB issued SFAS 158 ‘Employers’ Accounting for Defined Benefit
      Pension and Other Postretirement Plans—an amendment of FASB Statements No. 87,
      88, 106, and 132(R)’ This Statement improves financial reporting by requiring an
      employer to recognize the over funded or under funded status of a defined
      benefit postretirement plan (other than a multiemployer plan) as an asset or
      liability in its statement of financial position and to recognize changes in
      that funded status in the year in which the changes occur through comprehensive
      income of a business entity or changes in unrestricted net assets of a
      not-for-profit organization. This Statement also improves financial reporting
      by
      requiring an employer to measure the funded status of a plan as of the date
      of
      its year-end statement of financial position, with limited exceptions. An
      employer with publicly traded equity securities is required to initially
      recognize the funded status of a defined benefit postretirement plan and to
      provide the required disclosures as of the end of the fiscal year ending after
      December 15, 2006. An employer without publicly traded equity securities is
      required to recognize the funded status of a defined benefit postretirement
      plan
      and to provide the required disclosures as of the end of the fiscal year ending
      after June 15, 2007. However, an employer without publicly traded equity
      securities is required to disclose the following information in the notes to
      financial statements for a fiscal year ending after December 15, 2006, but
      before June 16, 2007, unless it has applied the recognition provisions of this
      Statement in preparing those financial statements:





a)
            A
                brief description of the provisions of this Statementb)
            The
                date that adoption is requiredc)
            The
                date the employer plans to adopt the recognition provisions of this
                Statement, if earlier.





The
      requirement to measure plan assets and benefit obligations as of the date of
      the
      employer’s fiscal year-end statement of financial position is effective for
      fiscal years ending after December 15, 2008. The management is currently
      evaluating the effect of this pronouncement on financial
      statements.





In
      February 2007, FASB issued FASB Statement No. 159, The Fair Value Option for
      Financial Assets and Financial Liabilities. FASB 159 is effective for fiscal
      years beginning after November 15, 2007. Early adoption is permitted subject
      to
      specific requirements outlined in the new Statement. Therefore, calendar-year
      companies may be able to adopt FASB 159 for their first quarter 2007 financial
      statements.





-
          21
          -


ORGANIC
      RECYCLING TECHNOLOGIES INC. AND SUBSIDIARIES


(formerly
        EAPI ENTERTAINMENT, INC.)
 NOTES
        TO CONSOLIDATED FINANCIAL STATEMENTS
 SEPTEMBER
        30, 2007


The
      new
      Statement allows entities to choose, at specified election dates, to measure
      eligible financial assets and liabilities at fair value that are not otherwise
      required to be measured at fair value. If a company elects the fair value option
      for an eligible item, changes in that item's fair value in subsequent reporting
      periods must be recognized in current earnings. FASB 159 also establishes
      presentation and disclosure requirements designed to draw comparison between
      entities that elect different measurement attributes for similar assets and
      liabilities. The management is currently evaluating the effect of this
      pronouncement on financial statements.




In
      March
      2007, the Emerging Issues Task Force (“EITF”) reached a consensus on issue
      number 06-10, “Accounting for Deferred Compensation and Postretirement Benefit
      Aspects of Collateral Assignment Split-Dollar Life Insurance Arrangements,”
(“EITF 06-10”). EITF 06-10 provides guidance to help companies determine whether
      a liability for the postretirement benefit associated with a collateral
      assignment split-dollar life insurance arrangement should be recorded in
      accordance with either SFAS No. 106, “Employers’ Accounting for
      Postretirement Benefits Other Than Pensions” (if, in substance, a postretirement
      benefit plan exists), or Accounting Principles Board Opinion No. 12 (if the
      arrangement is, in substance, an individual deferred compensation contract).
      EITF 06-10 also provides guidance on how a company should recognize and measure
      the asset in a collateral assignment split-dollar life insurance contract.
      EITF
      06-10 is effective for fiscal years beginning after December 15, 2007,
      though early adoption is permitted. The management is currently evaluating
      the
      effect of this pronouncement on financial statements.





Reclassification





Certain
      account reclassifications have been made to the financial statements of the
      prior year in order to conform to classifications used in the current year.
      These changes had no impact on the previously issued financial statements of
      the
      Company.





NOTE
      2:    RELATED PARTY TRANSACTIONS





The
      Company’s affiliates provided consulting and business advisory services to the
      Company.





A
      total
      of $1,699,226 in fees were incurred and accrued in consultant services by two
      (2) companies which are owned and controlled by a shareholder and creditor
      of
      the Company that the SEC classifies as a promoter, for the year ended September
      30, 2007.  This promoter was paid in cash by the Company $1,500,000
      for consulting services during the year ended September 30, 2007 from the sale
      of Company stock thru an Reg. S exemption.  These two entities
      advanced the Company proceeds of $341,319 and $375,083 for the years ending
      September 30, 2007 and 2006 respectively. During the years ending September
      30,
      2007 and 2006 these two entities were paid cash of $126,042 and $780,720 in
      debt
      repayments from proceeds of the sale of the Company’s stock.  These
      entities were paid in stock of the Company in the amounts of $382,500 and
      $266,637 for debt repayment for the years ending September 30, 2007 and 2006
      respectively.  Total amounts owing to the companies controlled by this
      promoter at the end of September 30, 2007 were $1,132,763 and $731,486 for
      September 30, 2006.  During the year ended September 30, 2007, the
      promoter converted $316,103 of unpaid accrued expenses to notes payable. The
      annualized interest rate for the notes payable is 10%.





For
      the
      year ending September 30, 2007, nine related parties (Board Member, Officers,
      Management or affiliated companies) charged the Company $884,129 in fees. Of
      the
      amounts billed to the Company by these related parties, $700,740 was paid in
      cash and the balance was accrued in short term liabilities.  An
      additional $186,330 was paid to one related party for prior year services which
      were accrued. During the twelve months period ended September 30, 2006,
      $1,656,621 in fees was incurred and accrued in consulting services by ten (10)
      companies which were owned and controlled by the shareholders or creditors
      of
      the Company. The total outstanding and unpaid balance payable to related parties
      was $310,106 and $2,701,438 at September 30, 2007 and 2006, respectively, which
      is included in current liabilities in the accompanying financial
      statements.




Three
      related parties
      forgave a total of $750,000 in accrued expenses for the year ending September
      30, 2007. Of this amount, $420,345 is for expenses that were accrued in the
      prior years.




NOTE
      3:     INCOME TAXES





Income
      tax expense (benefit) for the years ended September 30, 2007 and 2006 is
      summarized as follows:





2007
            
            
            2006Current:Federal
            
            $
            (1,060,804
            )
            
            $
            (1,128,429
            )Deferred
                taxes
            
            
            1,060,804
            
            
            
            1,128,429Income
                tax expense (benefit)
            
            $
            --
            
            
            $
            --




-
            22
            -
 
  ORGANIC
          RECYCLING TECHNOLOGIES INC. AND SUBSIDIARIES
 (formerly
          EAPI ENTERTAINMENT, INC.)
 NOTES
          TO CONSOLIDATED FINANCIAL STATEMENTS
 SEPTEMBER
          30, 2007


The
      following is a reconciliation of the provision for income taxes at the U.S.
      federal income tax rate to the income taxes reflected in the Consolidated
      Statements of Operations at September 30, 2007 and 2006:





2006
            
            
            2005Tax
                expense (credit) at statutory rate-federal
            
            
            (34
            %)
            
            
            (34
            %)Foreign
                income not recognized in US
            
            
            34
            %
            
            
            34
            %Canada
                income tax
            
            
            35
            %
            
            
            35
            %Tax
                expense at actual rate
            
            
            35
            %
            
            
            35
            %




The
      tax
      effects of temporary differences that gave rise to significant portions of
      deferred tax assets and liabilities at September 30, 2007 are as
      follows:





Deferred
                tax assets:Net
                operating loss carry forward
            
            $
            6,536,905Total
                gross deferred tax assets
            
            
            6,536,905Less
                valuation allowance
            
            
            (6,536,905
            )Net
                deferred tax assets
            
            $
            --





At
      September 30, 2007, the Company had accumulated deficit carry forwards of
      approximately $19,223,250 for U.S. federal income tax purposes available to
      offset future taxable income expiring on various dates through
      2025.





The
      net
      change in the valuation allowance during the year ended September 30, 2007
      and
      2006 was an increase of $1,060,804 and $1,128,429, respectively. The valuation
      allowance is evaluated at the end of each year, considering positive and
      negative evidence about whether the asset will be realized.





No
      provision is being made for state income tax for the years ending September
      30,
      2007 and 2006 since all operations are in Canada.





NOTE
      4:    COMMON STOCK





During
      the year ended September 30, 2007, the Company converted 839,694 shares of
      common stock valued at $382,500 in satisfaction of short-term loans payable
      to a
      related party. The common shares were valued at the fair value of shares on
      the
      date of issuance.





During
      the period ended September 30, 2007, the Company - a) issued under private
      placements 9,866,775 shares of common stock on subscription agreements for
      cash
      proceeds of $3,890,844, net of cost of raising capital of $1,252,366; b) sold
      390,910 to a related party for cash proceeds of $195,455; and c) received cash
      proceeds of $437,225 for 1,186,290 common shares to be issued as of September
      30, 2007.





In
      connection with the common stock subscription agreements, the Company had issued
      warrants to purchase 28,584,305 shares of common stock expiring twelve months
      from the payment of the stock. During the year ended September 30, 2007, none
      of
      the warrant holders exercised their warrants. The Company extended the terms
      of
      the warrants expiration date by twelve months from the date of issuance.
      Warrants outstanding at September 30, 2007 are as follows:





Exercise
                Price
            
            Warrants
                IssuedCDN
                $0.10
            
            10,000CDN
                $0.25
            
            810,000CDN
                $0.35
            
            470,000CDN
                $0.65
            
            55,000CDN
                $0.75
            
            220,500CDN
                $1.00
            
            196,207US
                $0.08
            
            10,000US
                $0.28
            
            4,000US
                $0.30
            
            1,223,583US
                $0.35
            
            3,034,000US
                $0.40
            
            114,550US
                $0.50
            
            2,775,626US
                $0.55
            
            755,743US
                $0.60
            
            2,728,723US
                $0.66
            
            220,000US
                $0.70
            
            2,027,652US
                $0.75
            
            13,315,731US
                $1.00
            
            586,018US
                $1.25
            
            24,972Total
            
            28,582,305




-
          23
          -






ORGANIC
      RECYCLING TECHNOLOGIES INC. AND SUBSIDIARIES


(formerly
      EAPI ENTERTAINMENT, INC.)


NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS


SEPTEMBER
      30, 2007






NOTE
      5:    EARNINGS (LOSS) PER SHARE





Basic
      and
      diluted loss per share is computed by dividing the loss available to common
      stockholders by the weighted average number of common shares outstanding during
      the period. Diluted loss per share does not reflect per share amounts that
      would
      have resulted if dilutive potential common stock had been converted to common
      stock because the effect would be anti-dilutive. The following reconciles
      amounts reported in the financial statements.





For
                the Year Ended September 30, 2007Income
              (Numerator)
            
            
            Shares
              (Denominator)
            
            
            Per-Share
                AmountNet
                loss available to common stockholdersBasic
                and diluted earnings per share
            $
            (3,120,011
            )
            
            
            41,556,365
            
            
            $
            (0.08
            )For
                the Year Ended September 30, 2006Income
              (Numerator)
            
            
            Shares
              (Denominator)
            
            
            Per-Share
                AmountNet
                loss available to common stockholdersBasic
                and diluted earnings per share
            $
            (3,318,910
            )
            
            
            31,190,689
            
            
            $
            (0.11
            )





NOTE
      6:    LEASES





On
      March
      1, 2007 the Company entered into a three-year lease agreement with a third
      party
      for office space and furnishings.





Future
      minimum lease payments due are as follows:





September
                30,
            
            Amount2008
            
            $
            14,1652009
            
            
            14,5072010
            
            
            9,911Total
            
            $
            38,583





Total
      rent expense for the years ended September 30, 2007 and 2006 was $11,350 and
      49,901 respectively.





NOTE
      7:    GOING CONCERN





The
      accompanying consolidated financial statements have been prepared assuming
      that
      the Company will continue as a going concern. The Company had a net loss for
      the
      year ended September 30, 2007 of $3,120,011, a negative cash flow from
      operations of $1,500,407, a working capital deficiency of $4,097,607 and a
      shareholders’ deficit of $4,838,109 which raises a substantial doubt about the
      Company’s ability to continue as a going concern.







-
          24
          -






ORGANIC
        RECYCLING TECHNOLOGIES INC. AND SUBSIDIARIES
 (formerly
        EAPI ENTERTAINMENT, INC.)
 NOTES
        TO CONSOLIDATED FINANCIAL STATEMENTS
 SEPTEMBER
        30, 2007






The
      Company is pursuing and developing a new business plan. The Company is
      partnering with technology leaders to utilize and apply waste management and
      recycling technologies and bring these technologies to the market place. The
      Company is seeking to acquire revenue generating businesses or projects with
      long term potential in the waste management and recycling industries that will
      enable the Company to generate revenues to fund the new business plan.The Company anticipates
      it will raise funds through debt issuance or through the generation of revenue
      and achieving profitable operations. The Company has continued to raise equity
      through the sale of Regulation S stock in an ongoing private placement. It
      will
      also continue to pursue acquisitions and joint ventures, to strengthen both
      its
      balance sheet and cash flow.





The
      Company’s ability to continue as a going concern is dependent upon raising
      capital through debt or equity financing and ultimately by generating revenue
      and achieving profitable operations. There is no assurance that the Company
      will
      be successful in its efforts to raise additional proceeds or achieve profitable
      operations. The financial statements do not include any adjustments that might
      result from the outcome of this uncertainty.





NOTE
      8:    SUBSEQUENT EVENTS





The
      Company recorded the following stockholder transactions subsequent to September
      30, 2007:





·
            The
                Company received subscriptions for issuances of 4,900,451 shares
                of common
                stock and 4,900,451 warrants for cash proceeds of
                $1,613,530.





·
            The
                Company sold 3,300,000 shares of common stock valued at $825,000
                for cash
                to a party that the SEC classifies as a promoter.  The stock was
                issued at $0.25 a share which is less than what the shares were being
                offered to unrelated parties at $0.50 a share. The Company then paid
                the
                promoter $800,000 in repayment of related party
                debt.







-
          25
          -




ITEM
      8.    CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
      ACCOUNTING AND FINANCIAL DISCLOSURE





During
      the Company’s two most recent fiscal years, the Company had no disagreements
      with its auditors on any matter of accounting principles or practices, financial
      statement disclosure, or auditing scope or procedure, which disagreements,
      if
      not resolved to the satisfaction of our auditors, would have caused them to
      make
      reference to the subject matter of the disagreement in connection with its
      reports on the Company’s financial statements for such years and interim
      periods.





ITEM
      8A.    CONTROLS AND PROCEDURES





Evaluation
      Of Disclosure Controls And Procedures





As
      of the
      end of the period covered by this report, our management carried out an
      evaluation, under the supervision and with the participation of our Chief
      Executive Officer and Chief Financial Officer, of the effectiveness of the
      design and operation of our disclosure controls and procedures (as defined
      in
      Rules 13a-15(e) and 15d-15(e) under the Exchange Act). Based on this evaluation,
      our Chief Executive Officer and Chief Financial Officer have concluded that
      our
      disclosure controls and procedures are, as of the date covered by this Annual
      Report, effective to ensure that the information required to be disclosed by
      us
      in the reports that we file or submit under the Exchange Act is recorded,
      processed, summarized and reported within the time periods specified in the
      SEC
      rules and forms.





Changes
      In Internal Controls Over Financial Reporting




In
      connection with the evaluation of our internal controls during our last fiscal
      quarter, our Chief Executive Officer and Chief Financial Officer have determined
      that there have been no changes to our internal controls over financial
      reporting that has materially affected, or is reasonably likely to materially
      effect, our internal controls over financial reporting.





ITEM
      8B.    OTHER INFORMATION





Unregistered
      Sales of Equity
      Securities





The
      Company has engaged in a number of unregistered sales of its equity securities
      since October 1, 2004. These unregistered sales of equity securities are listed
      and described under Item 5, “Market for Common Equity and Related Stockholder
      Matters,” under the heading “Recent Unregistered Sales of Equity
      Securities.”








PART
      III





ITEM
                9.
            DIRECTORS,
                EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS; COMPLIANCE WITH
                SECTION
                16(a) OF THE EXCHANGE ACT





The
      following information sets forth the names of the Company’s officers and
      directors, their present positions with the Company, and their biographical
      information:





Name
            
            Age
            
            PositionEdwin
                Kroeker
            
            58
            
            Chief
                Executive Officer, President and DirectorPeter
                Gardner
            
            46
            
            Director,
                Treasurer and SecretaryChad
                Burback
            
            30
            
            Chief
                Financial Officer and DirectorMichael
                Brown
            
            58
            
            Director





Edwin
      Kroeker – CEO, President and Director




Mr.
        Kroeker was appointed CEO, President and a Director on March 7, 2007. Mr.
        Kroeker has more than 35 years of management experience in the environmental
        technology industry. Most recently, Mr. Kroeker served on the management
        team of
        a public company that developed, patented and commercialized a microbiological
        process for converting biodegradable organic wastes into valuable end products.
        Mr. Kroeker also worked as a consultant for a large North American engineering
        firm where he managed the company's environmental process engineering group
        at
        the company's corporate headquarters. Mr. Kroeker's areas of expertise include
        water and wastewater treatment, air quality management, solid waste management
        and waste recycling. He earned his bachelor's degree in engineering from
        the
        University of Manitoba in 1972, and his Masters degree in environmental
        engineering from Cornell University in Ithaca, NY. Mr. Kroeker has worked
        in
        North America, the Caribbean, Southeast Asia and Central
        Europe.





-
          26
          -






Peter
      Gardner – Director, Treasurer and Secretary





Mr.
      Gardner was appointed as Chief Executive Officer, President and a Director
      on
      November 3, 2003. Between January 28, 2005, and April 24, 2006 Mr. Gardener
      resigned as President and Chief Executive Officer and thereafter served as
      President and CEO until March 6, 2007. Mr. Gardner continues to act as a member
      of our Board of Directors. Mr. Gardner has over 22 years of experience in the
      computer software industry and is an expert in software development and design.
      From 1981 to 1985 Mr. Gardner was involved in software design and development.
      In 1985 Mr. Gardner led a design team in the development of a student database
      management and reporting software system. Mr. Gardner created a software engine
      that generated reports based on the individual needs of the user. The resulting
      software improved the school’s reporting system. From 1986 to 1988 Mr. Gardner
      built and operated MindMeld Software (“MindMeld”), a computer game company based
      in Vancouver, B.C. During this time, he developed software engines to
      accommodate the needs of his business and to generate entertainment software
      programs for the Apple II, the Commodore 64, and the early IBM Personal
      Computer. In 1988 MindMeld was acquired by Distinctive Software, a game
      development company based in Burnaby, British Columbia. Mr. Gardner retained
      ownership of his software engine technology following the acquisition. From
      1994
      to 2002 Mr. Gardner assisted various game development companies in developing
      their corporate strategy, their game development, and negotiating development
      contracts including restructuring Distinctive Software which was later acquired
      by Electronic Arts, Inc.





Chad
      Burback – Chief Financial Officer and Director





Mr.
      Burback has been the Company’s Secretary and a Director since September 29,
      2000.  Since joining the Company, Mr. Burback has assisted with the
      organization and development of the Company. Mr. Burback was Plant Manager
      for
      Hamilton Bio Conversion Inc. in Hamilton, Ontario, Canada (1998-2001). From
      1995
      to 1998, Mr. Burback was the Plant Manager for Brampton Bio Conversion Inc.,
      a
      de-packaging and recycling facility in Brampton, Ontario, Canada. As Plant
      Manager for each facility, Mr. Burback was responsible for the expansion of
      the
      facilities and had the following duties and responsibilities: assist with
      project schedules and construction contracts; operations control and management;
      maintain a daily log of all plant events; oversee all office administration;
      manage expenditures; ensure compliance with permits; conduct performance reviews
      of employees; ensure plant safety and security; and staff the plants. Mr.
      Burback is a first cousin of Mr. Dean Branconnier.





Michael
      Brown – Director





Mr.
      Brown
      was appointed a director on November 8, 2005.  Mr. Brown is the
      President of Brown, Vence & Associates Inc. (“BVA”), a consulting
      engineering firm that Brown helped found in 1979, specializing in energy and
      waste project planning, permitting and financing, and in innovative technologies
      for resource recovery. His firm has participated in over $3 billion in capital
      financing for waste management and renewable energy projects. In 2006, his
      firm
      was acquired by HDR Engineering, Inc., a large architectural and engineering
      firm and Mr. Brown was appointed as a Senior Vice President at HDR Engineering
      Inc., where Mr. Brown manages a joint HDR/BVA business unit. The Company has
      entered into a consulting agreement with his Company HDR/BVA.





Terms
      of Office





The
      Company’s directors are appointed for one-year terms to hold office until the
      next annual general meeting of the holders of the Company’s common stock or
      until removed from office in accordance with the Company’s by-laws. The
      Company’s officers are appointed by its Board of Directors and hold office until
      removed by the Company’s Board of Directors.





Audit
      Committee of the Board of Directors





We
      are
      not a listed issuer and, under the rules of the OTC Bulletin Board, our Board
      of
      Directors is not required to maintain a separately designated standing audit
      committee. As such, pursuant to section 3(a)(58)(B) of the Exchange Act, our
      entire Board of Directors acts as our audit committee.





Audit
      Committee Financial Expert





The
      Company’s Board of Directors has determined that none of its members qualifies
      as an “audit committee financial expert,” as defined under Item 401(e) of
      Regulation S-B of the Securities Act of 1933. The Company believes the cost
      related to retaining a financial expert at this time is prohibitive. Further,
      because of the Company’s start-up operations, the Company believes the services
      of a financial expert are not warranted.





Code
      of Ethics





We
      have
      adopted a Code of Ethics applicable to our officers and directors which is
      a
“Code of Ethics,” as defined by the applicable rules of the SEC. If we make any
      amendments or grant any waivers from a provision of our Code of Ethics to our
      President, Chief Executive Officer, Treasurer or Chief Financial Officer, we
      will disclose the nature of the amendment or waiver, its effective date and
      to
      whom it applies in a report on Form 8-K.





SECTION
      16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE





Section
      16(a) of the Exchange Act requires our executive officers and directors and
      persons who own more than 10% of a registered class of our securities
      (“Reporting Persons”) to file reports of ownership and changes in ownership with
      the SEC. Reporting Persons are required by SEC regulations to furnish us with
      copies of all forms they file pursuant to Section 16(a). Based solely on our
      review of such reports received by the Company, reports required to be filed
      by
      Reporting Persons were not filed timely and have only recently been
      filed.  The Company has put into place procedures that will help to
      insure that all future filings required by Section 16(a) will be filed in a
      timely manner by all Reporting Persons.





-
          27
          -








ITEM
      10.    EXECUTIVE COMPENSATION





None
      of
      our executive officers earned more than $100,000 during our most recently
      completed fiscal year.  Accordingly, we have not included any
      compensation information for any of our executive officers, other than our
      current chief executive officer, our chief financial officer and our former
      chief executive officer.





The
      following table sets forth certain information as to the Company's named
      executive officers for each of the Company's fiscal year ended September 30,
      2007, 2006, and 2005. No other compensation was paid to any such named executive
      officers other than the compensation set forth below.





SUMMARY
      COMPENSATION TABLE





Annual
                Compensation
            
            Long
                Term CompensationName
                and Principal Position
            Year
            
            Salary
              ($)
            
            Bonus
              ($)
            
            Other
              Annual
                Compensation
              ($)
            
            Restricted
              Stock
                Award(s)
              ($)
            
            Securities
                Underlying Options/SARs
              (#)
            
            LTIP
              Payouts
              ($)
            
            All
              Other
              Compensation
              ($)Edwin
                Kroeker
              (President
                and Chief Executive Officer)(1)
            2007
            
            73,803
            
            -
                0
                -
            
            -
                0
                -
            
            -
                0
                -
            
            -
                0
                -
            
            -
                0
                -
            
            -
                0
                -Ralph
                Petruzzo
              (former
                President and Chief Executive Officer)
            2006
            
            -
                0
                -
            
            -
                0
                -
            
            -
                0
                -
            
            -
                0
                -
            
            -
                0
                -
            
            -
                0
                -
            
            -
                0
                -Chad
                Burback
              Chief
                Financial Officer
            2007
              2006
              2005
            
            -0-
              73,534
            
            -0-
              -
                0
                -
              -
                0
                -
            
            -0-
              -
                0
                -
              -
                0
                -
            
            -0-
              -
                0
                -
              -
                0
                -
            
            -0-
              -
                0
                -
              -
                0
                -
            
            -0-
              -
                0
                -
              -
                0
                -
            
            -0-
              -
                0
                -
              -
                0
                -Peter
                Gardner
              (former
                President and Chief Executive Officer)(2)
            2007
              2006
              2005
            
            -
                0
                -
              -
                0
                -
              -
                0
                -
            
            -
                0
                -
              -
                0
                -
              -
                0
                -
            
            -
                0
                -
              -
                0
                -
              -
                0
                -
            
            -
                0
                -
              -
                0
                -
              -
                0
                -
            
            -
                0
                -
              -
                0
                -
              -
                0
                -
            
            -
                0
                -
              -
                0
                -
              -
                0
                -
            
            -
                0
                -
              -
                0
                -
              -
                0
                -




(1)Mr. Kroeker was appointed as CEO and President of the Company
                effective March 7, 2007.(2)Mr. Gardner served as CEO and President from April 24, 2006
                and
                resigned on March 6, 2007.





COMPENSATION
      OF DIRECTORS





Directors
      are not compensated for their service as directors. All directors are reimbursed
      for any reasonable expenses incurred in the course of fulfilling their duties
      as
      a director of the Company. In addition, Firhurst Enterprises, a company of
      which
      Mr. Gardner is a principal shareholder, was paid $48,207 as consulting fees
      during the year ended September 30, 2007. Furthermore, consulting fees of
      $225,000 was paid to Mr. Brown during the year ended September 30,
      2007.





EMPLOYMENT
      CONTRACTS





The
      Company has entered into an agreement with Chad Burback to serve as the
      Company’s Chief Financial Officer for a monthly consulting fee of $7,000 CDN
      (equal to approximately $6,330 US). The Company does not compensate Mr. Gardner
      for acting as the Secretary of the Company.







-
          28
          -






ITEM
      11.    SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
      MANAGEMENT





The
      following table sets forth as of December 31, 2007 certain information known
      to
      the Company regarding the beneficial ownership of the Company’s common stock,
      and as adjusted to reflect the share ownership for (i) each executive officer
      or
      director of the Company who beneficially owns shares; (iii) all executive
      officers and directors as a group; and (ii) each shareholder known to the
      Company to beneficially own five percent or more of the outstanding shares
      of
      its common stock. The Company believes that the beneficial owners of the common
      stock listed below, based on information furnished by such owners, have sole
      investment and voting power with respect to such shares, subject to community
      property laws where applicable.





TITLE
                OF CLASS
            
            NAME
                AND ADDRESS OF BENEFICIAL OWNER
            
            NUMBER
                OF SHARES OF
              COMMON
                STOCK
            
            PERCENTAGE
                OF
              COMMON
                STOCK(1)DIRECTORS
                AND OFFICERSCommon
                Stock
            
            Edwin
                Kroeker
              CEO,
                President, and Director
              210
                Broadway, Unit 208,
              Orangeville,
                Ontario L9W 5G4
            
            -
                0
                -
            
            0.0%-Common
                Stock
            
            Peter
                Gardner
              Secretary
                and Director
              210
                Broadway, Unit 208,
              Orangeville,
                Ontario L9W 5G4
            
            -
                0
                -
            
            0.0%Common
                Stock
            
            Chad
                Burback
              Chief
                Financial Officer,Treasurer
                and Director
              210
                Broadway, Unit 208,
              Orangeville,
                Ontario L9W 5G4
            
            640,000
                Shares
            
            1.2%Common
                Stock
            
            Michael
                D. Brown
              Director
              30
                Tierra Verde Court
              Walnut
                Creek, CA 94598
            
            350,000
                Shares
            
            0.7%Common
                Stock
            
            All
                Officers and Directors as a Group (5 persons)
            
            990,000
                Shares
            
            1.9%5%
                BENEFICIAL SHAREHOLDERSCommon
                Stock
            
            René
                Branconnier
              8412
                Armstrong Road,
              Langley,
                BC  V1M 3P5
              Canada
            
            11,986,439
                Shares
            
            22.7%(2)




(1)
            Under
                Rule 13d-3, a beneficial owner of a security includes any person
                who,
                directly or indirectly, through any contract, arrangement, understanding,
                relationship, or otherwise has or shares: (i) voting power, which
                includes
                the power to vote or to direct the voting of shares; and (ii) investment
                power, which includes the power to dispose or direct the disposition
                of
                shares. Certain shares may be deemed to be beneficially owned by
                more than
                one person (if, for example, persons share the power to vote or the
                power
                to dispose of the shares). In addition, shares are deemed to be
                beneficially owned by a person if the person has the right to acquire
                the
                shares (for example, upon exercise of an option) within 60 days of
                the
                date as of which the information is provided. In computing the percentage
                ownership of any person, the amount of shares outstanding is deemed
                to
                include the amount of shares beneficially owned by such person (and
                only
                such person) by reason of these acquisition rights. As of December
                31,
                2007, there were 52,761,740 shares of the Company’s common stock issued
                and outstanding.





(2)
            Includes
                (a) 5,126,060 shares of common stock and warrants to purchase 5,126,060
                shares of common stock owned by Milverton Capital Corporation, of
                which
                Mr. Branconnier is a controlling shareholder, (b) 674,884 shares
                of common
                stock owned by 529473 BC Ltd., of which Mr. Branconnier is a controlling
                shareholder, (c) 680,435 shares of common stock owned by Dynasty
                Farms
                Ltd., of which Mrs. Branconnier is a controlling
                shareholder  through Sanclair Holdings Ltd. and (d) 379,000
                shares of common stock owned by Sharon Branconnier, Mr. Branconnier’s
                wife. All of the warrants are exercisable between $0.25 to $0.75
                per share
                and they all expire in August 2008. The percentage ownership has
                been
                calculated assuming the exercise of all of the aforementioned warrants.
                Mr. Branconnier is the uncle of Chad Burback, the Company’s Chief
                Financial Officer. Mr. Branconnier disclaims any beneficial interest
                in
                any of the securities owned directly or indirectly by Mr. Chad
                Burback.





CHANGE
      IN CONTROL





The
      Company is not aware of any arrangement that might result in a change in control
      in the future.





-
          29
          -






ITEM
      12.    CERTAIN RELATIONSHIPS AND RELATED
      TRANSACTIONS





Out
      of
      the net cash proceeds received by the Company for the year ended September
      30,
      2007, from the sale of common stock ($3,890,845) and from short term loans
      ($369,050) totaling $4,259,895, the Company paid to affiliates and related
      parties $2,874,188 for management consulting services and repayment of loans.
      In
      addition, the Company sold and issued 1,230,604 shares of its common stock
      to
      related parties. As of September 30, 2007, the Company owes $3,602,397 to
      related parties for (i) past consulting services, (ii) interest and principal
      on
      monies loaned, and (iii) accrued expenses, including rental expense. The
      following sets forth the transactions between the Company and affiliates and
      related parties during the year ended September 30, 2007.





529473
      B.C. LTD.





529473
      B.C. Ltd. is a private company owned by René Branconnier. Mr. René Branconnier
      is the uncle of our Chief Financial Officer and Treasurer, Chad Burback and
      former CFO Dean Branconnier.





529473
      B.C. Ltd. is the owner of the stable enzyme production technology underlying
      the
      Company’s former enzyme business. Mr. René Branconnier is the ultimate
      beneficiary of all agreements and arrangements between the Company and 529473
      B.C. Ltd.





On
      July
      28, 2004, 529473 B.C. Ltd. entered into an assignment of debt agreement with
      the
      Company’s wholly owned subsidiary, Duro Enzyme Solutions Inc., and Milverton
      Capital Corporation (“Milverton”). Pursuant to this assignment agreement,
      Milverton assigned to 529473 B.C. Ltd. its rights to $425,717 CDN owed by the
      Company in exchange for 529473 B.C. Ltd.’s promise to repay the amounts owed to
      Milverton. As a result of the assignment, the Company became indebted to 529473
      B.C. Ltd. for the $425,717 CDN previously owed to Milverton.





The
      balance of $228,126 owing to 529473 B.C. Ltd. as of September 30, 2007 was
      transferred to Milverton Capital Corporation.





Milverton
      Capital Corporation





Milverton
      Capital Corporation is a private company owned by Mr. René Branconnier. The
      Company entered into short-term loans with Milverton Capital Corporation
      totaling $1,521,773 as of September 30, 2007.





In
      March
      1, 2005, the Company entered into a consulting agreement with Milverton to
      provide accounting, management and consulting services, for an annual fee of
      $1,200,000. The contract which expired in March 2007 was renewed for another
      year for an annual fee of $1,800,000. Milverton earned $1,500,000 in fees for
      the year ended September 30, 2007. The Company is indebted to Milverton for
      $1,521,773 as of September 30, 2007.





Sanclair
      Holdings Ltd.





Sanclair
      Holdings Ltd. is a private company owned by Ms. Sharon Branconnier, the wife
      of
      René Branconnier. Sanclair Holdings advanced short term loans of $126,023 to the
      Company during the year ended September 30, 2004. Accrued but unpaid rent of
      $258,729 is owed by the Company to Sanclair Holdings Ltd. in respect of rental
      of research and development facilities which terminated in December 2002. The
      Company owed $249,484 in aggregate to Sanclair Holdings as of September 2007
      after a debt forgiveness of $500,000.





Brampton
      Holdings Ltd.





Brampton
      Holdings Ltd. is a private company owned by Ms. Sharon Branconnier, wife of
      René
Branconnier. Brampton Holdings advanced short term loans of $244,177 to the
      Company during the year ended September 30, 2004. The Company previously rented
      a facility from Brampton Holdings. This lease was terminated in December 2002.
      The Company owed Brampton Holdings $234,084 in respect of accrued but unpaid
      rent. The Company owed Brampton Holdings an additional amount of $169,626 in
      respect of a four month administration and accounting contract entered into
      during the year ended September 30, 2002. In aggregate, the Company owed
      $661,171 to Brampton Holdings as of September 30, 2006. The outstanding balance
      of $274,714 owed by the Company to Brampton was transferred to Milverton Capital
      Corporation as of September 30, 2007.







-
          30
          -




ITEM
      13.   EXHIBITS





The
      following exhibits are either provided with this Annual Report or are
      incorporated herein by reference:





Exhibit
                Number
            
            Description
                of Exhibit3.1
            
            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, 200510.7
            
            Consulting
                Agreement with HDR Brown Vence and Associates, Inc., dated June 14,
                200610.8
            
            Agreement
                with Foshan Public Utility Management Chinese Company dated June
                21,
                200510.9
            
            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 thereto14.1
            
            Code
                of Ethics16.1
            
            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 Subsidiaries23.1
            
            Independent
              Auditor's Consent31.1
            
            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
                200231.2
            
            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
                200232.1
            
            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
                200232.2
            
            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





(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





ITEM
      14.    PRINCIPAL ACCOUNTANT FEES AND SERVICES





The
      aggregate fees billed for the two most recently completed fiscal years ended
      September 30, 2007 and 2006 for professional services rendered by the principal
      accountant for the audit of the Corporation’s annual financial statements and
      review of the financial statements included our Quarterly Reports on Form 10-QSB
      and services that are normally provided by the accountant in connection with
      statutory and regulatory filings or engagements for these fiscal periods were
      as
      follows:





Year
                Ended September 30, 2007
            
            
            Year
                Ended
              September
                30, 2006Audit
                Fees
            
            $
            84,000
            
            
            $
            78,184Audit
                Related Fees
            
            $
            0
            
            
            $
            8,494Tax
                Fees
            
            $
            0
            
            
            $
            0All
                Other Fees
            
            $
            0
            
            
            $
            0Total
            
            $
            84,000
            
            
            $
            86,678


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SIGNATURES





In
      accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused
      this report to be signed on its behalf by the undersigned, thereunto duly
      authorized.








ORGANIC
                RECYCLING TECHNOLOGIES INC.By:
            /s/
                Edwin KroekerEdwin
                KroekerChief
                Executive Officer, President and DirectorDate:
            January
                8, 2008











In
      accordance with the Exchange Act, this report has been signed below by the
      following persons on behalf of the registrant and in the capacities and on
      the
      dates indicated.








By:
            /s/
                Edwin KroekerEdwin
                KroekerPresident
                and Chief Executive Officer(Principal
                Executive Officer), DirectorDate:
            January
                8, 2008By:
            /s/
                Chad BurbackChad
                BurbackChief
                Financial Officer(Principal
                Financial Officer), Treasurer, DirectorDate:
            January
                8, 2008By:
            /s/
                Michael D. BrownMichael
                D. BrownDirectorDate:
            January
                8, 2008By:
            /s/
                Peter GardnerPeter
                GardnerDirector
                & SecretaryDate:
            January
                8, 2008





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