SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

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

                For the quarterly period ended December 31, 2007

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

                        Commission File Number: 000-22855


                        AMERICAN SOIL TECHNOLOGIES, INC.
        (Exact name of small business issuer as specified in its charter)

           Nevada                                                 95-4780218
(State or other jurisdiction of                                 (IRS Employer
incorporation or organization)                               Identification No.)

                12224 Montague Street, Pacoima, California 91331
                    (Address of principal executive offices)

                                 (818) 899-4686
                          (Issuer's telephone number)

                                       N/A
              (Former name, former address and former fiscal year,
                         if changed since last report)

Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the 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. Yes [X] No [ ]

Indicate by check mark whether the registrant is a shell Company (as defined in
Rule 12b-2 of the Exchange Act). Yes [ ] No [X]

As of February 15, 2008, the number of shares of common stock issued and
outstanding was 55,752,717.

Transitional Small Business Disclosure Format (check one): Yes [ ] No [X]
<PAGE>
                                      INDEX

                                                                           Page
                                                                          Number
                                                                          ------
PART I - FINANCIAL INFORMATION

Item 1.  Unaudited Consolidated Financial Statements

         Unaudited Consolidated Balance Sheet - December 31, 2007            2

         Unaudited Consolidated Statements of Operations -
         For the three months ended December 31, 2007 and 2006               3

         Unaudited Consolidated Statements of Cash Flow -
         For the three months ended December 31, 2007 and 2006               4

         Consolidated Notes to Financial Statements (Unaudited)              5

Item 2.  Management's Discussion and Analysis of Financial
          Condition and Results of Operations                                9

Item 3.  Controls and Procedures                                            13

PART II - OTHER INFORMATION

Item 1.  Legal Proceedings                                                  14

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds        14

Item 3.  Defaults Upon Senior Securities                                    14

Item 4.  Submission of Matters to a Vote of Security Holders                14

Item 5.  Other Information                                                  15

Item 6.  Exhibits                                                           15

SIGNATURES                                                                  16

                                       1
<PAGE>
                         PART I -- FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

                        AMERICAN SOIL TECHNOLOGIES, INC.
                           CONSOLIDATED BALANCE SHEET
                                DECEMBER 31, 2007
                                   (UNAUDITED)

<TABLE>
<CAPTION>
<S>                                                                              <C>
Assets:
Current assets
  Cash and cash equivalents                                                      $         --
  Accounts receivable, net of allowance of doubtful accounts of $46,759                27,229
  Inventories                                                                         234,747
  Prepaid expenses and other current assets                                            13,176
                                                                                 ------------
      Total current assets                                                            275,152
Property and equipment, net                                                           256,250
Deposits and other assets                                                             183,756
Goodwill                                                                              364,600
Intangible assets                                                                   2,633,310
                                                                                 ------------
      Total assets                                                               $  3,713,068
                                                                                 ============

Liabilities and Stockholders' Deficit:
Current liabilities
  Accounts payable                                                               $    618,875
  Accrued liabilities                                                                 218,836
  Notes payable                                                                     2,061,748
  Capital lease obligations                                                            18,007
  Notes payable to related parties                                                     70,987
                                                                                 ------------
      Total current liabilities                                                     2,988,453
Capital lease obligations                                                              35,304
Notes payable                                                                          72,911
Notes payable to related parties                                                      430,264
Derivative liability                                                                  205,541
                                                                                 ------------
      Total liabilities                                                             3,732,473
                                                                                 ------------
Stockholders' deficit:
  Series A preferred stock, $0.50 stated value, 25,000,000 shares
   authorized, 2,763,699 shares issued and outstanding                              1,381,849
  Common stock, $0.001 par value, 100,000,000 shares authorized,
   55,427,717 shares issued and outstanding                                            55,427
  Paid in capital                                                                  19,263,276
  Accumulated deficit                                                             (20,719,957)
                                                                                 ------------
      Total stockholders' deficit                                                     (19,405)
                                                                                 ------------
      Total liabilities and stockholders' deficit                                $  3,713,068
                                                                                 ============
</TABLE>

          See accompanying Notes to Consolidated Financial Statements.

                                       2
<PAGE>
                        AMERICAN SOIL TECHNOLOGIES, INC.
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                          Three Months Ended December 31,
                                                         ---------------------------------
                                                            2007                  2006
                                                         -----------           -----------
<S>                                                      <C>                   <C>
Revenue                                                  $    82,179           $   145,035
Cost of goods sold                                            59,422               126,558
                                                         -----------           -----------
      Gross profit                                            22,757                18,477
                                                         -----------           -----------
Operating expenses:
  General and administrative                                 437,512               356,545
  Sales and marketing                                         28,082                64,498
  Amortization of intangible assets                          126,789                80,591
  Impairment of intangible assets and goodwill                    --             1,100,000
                                                         -----------           -----------
      Total operating expenses                               592,383             1,601,634
                                                         -----------           -----------

Loss from operations                                        (569,626)           (1,583,157)

Other (income) expense
  Interest expense                                            96,792               141,615
  Interest income                                             (3,156)                   --
  Change in fair value of derivative liability              (265,986)              (51,377)
  Other                                                         (560)                   --
  (Gain) loss on sale of property and equipment               17,027                  (357)
                                                         -----------           -----------
Loss before income taxes                                    (413,743)           (1,673,038)
Income tax provision (benefit)                                    --              (364,000)
                                                         -----------           -----------

Net loss                                                 $  (413,743)          $(1,309,038)
                                                         ===========           ===========

Net loss per share basic and diluted                     $     (0.01)          $     (0.04)
                                                         ===========           ===========
Weighted average common shares outstanding used
 in per share calculations                                54,049,065            32,119,648
                                                         ===========           ===========
</TABLE>

          See accompanying Notes to Consolidated Financial Statements.

                                       3
<PAGE>
                        AMERICAN SOIL TECHNOLOGIES, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                             Three Months Ended December 31,
                                                                            ---------------------------------
                                                                               2007                  2006
                                                                            -----------           -----------
<S>                                                                         <C>                   <C>
Cash flows from operating activities:
  Net loss                                                                 $  (413,743)          $(1,309,038)
  Adjustments to reconcile net loss to net cash
   Loss on disposal of assets                                                   17,027                    --
   Impairment of goodwill                                                           --             1,100,000
   Depreciation and amortization                                               157,983               211,476
   Stock-based compensation                                                     22,708                    --
   Change in derivative liabilities                                           (265,986)              (51,377)
   Amortization of debt discount                                                31,468                56,250
   Changes in operating assets and liabilities:
    Accounts receivable                                                         33,779                41,675
    Inventory                                                                   15,319                83,551
    Prepaid expenses and other assets                                           20,013               (65,331)
    Accounts payable                                                            39,555              (461,118)
    Accrued expenses                                                            23,088                26,910
                                                                           -----------           -----------
         Net cash used in operating activities                                (318,789)             (367,002)
                                                                           -----------           -----------
Cash flows from investing activities:
  Capital expenditures                                                              --                (5,514)
  Deposit on real property                                                     (50,000)                   --
  Cash paid, net of cash received in business acquisition                           --              (134,101)
                                                                           -----------           -----------
         Net cash used in investing activities                                 (50,000)             (139,615)
                                                                           -----------           -----------
Cash flows from financing activities:
  Proceeds from related party notes                                            179,982               510,000
  Proceeds from the issuance of debt                                           150,000                76,690
  Proceeds from the issuance of common stock                                    17,922                    --
  Payments on capital lease obligations                                         (5,792)               (4,919)
  Repayments on notes payable                                                   (8,178)               (9,393)
                                                                           -----------           -----------
         Net cash provided by (used in) financing activities                   333,934               572,378
                                                                           -----------           -----------
         Net increase (decrease) in cash and cash equivalents                  (34,855)               65,761

Cash and cash equivalents at beginning of period                                34,855                14,577
                                                                           -----------           -----------
Cash and cash equivalents at end of period                                 $        --           $    80,338
                                                                           ===========           ===========

Supplemental disclosure of cash flow information:
  Cash paid during the period for interest                                 $    56,485           $    44,342
  Cash paid during the period for income taxes                             $        --           $       845

Supplemental disclosure of non-cash investing and financing activities:
  Common stock issued for business acquisition                             $        --           $   414,000
  Issuance of convertible note for purchase of intellectual property       $        --           $ 1,500,000
  Conversion of related party note into common stock                       $   800,000           $        --
</TABLE>

          See accompanying Notes to Consolidated Financial Statements.

                                       4
<PAGE>
                        AMERICAN SOIL TECHNOLOGIES, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                DECEMBER 31, 2007
                                   (UNAUDITED)

1. BUSINESS

ORGANIZATION AND BASIS OF PRESENTATION
American Soil  Technologies,  Inc. (the "Company" or "American Soil"),  formerly
Soil Wash  Technologies,  Inc., was  incorporated in California on September 22,
1993. On November 24, 1999, the Company  entered into an exchange  agreement for
the reverse acquisition of New Directions Manufacturing, Inc., a publicly traded
Nevada corporation  incorporated on January 9, 1997 ("New Directions"),  wherein
New  Directions  would  acquire the assets of the Company and change its name to
American  Soil  Technologies,  Inc.  This  exchange  agreement  was effective on
December 31, 1999. The Company is primarily  engaged in the marketing of polymer
and other soil amendments to the agricultural turf and horticulture  industries.
The  Company's  products  are used to decrease  water usage,  increase  nutrient
retention in soil, enhance seed germination and sprout emergence,  clarify ponds
and increase the effectiveness of chemical fertilizers and biological additives.
The Company recently acquired the patent to a slow release fertilizer to be used
primarily in the turf segment of its  business.  The Company also has  exclusive
license rights to the use of patented polymer application techniques, as well as
numerous patents on a unique machine designed to inject polymer and other liquid
products into existing turf and some crops. The Company also expanded to provide
next-generation  and  sustainable  fertilizers  through the acquisition of Smart
World Organics, Inc. ("Smart World") on December 20, 2006.  Simultaneously,  the
Company  entered  into an  Intellectual  Property  Purchase  Agreement  with the
founder of Smart World, Ray Nielsen that included  certain  formulas  originally
believed to be proprietary and  intellectual  properties used in the business of
Smart World Organics, Inc. The formulas acquired from Nielsen were deemed not to
be proprietary and subsequently  deemed to be of little or no value. Smart World
sells homogenized  fertilizers,  non-toxic insect controls,  plant  protectants,
seed,  soil  and  silage   inoculants.   Smart  World  also  provides  advanced,
custom-formulated   products  built  to  suit  unusual  growing  conditions  and
environments.

PENDING  PROPERTY  ACQUISITION On November 27, 2007, the Company  entered into a
Purchase and Sale Agreement and Joint Escrow  Instructions  agreement to acquire
real property in Pescadero,  California for a purchase price of $5,400,000.  The
property has been improved with approximately 700,000 square feet of greenhouses
and the  Company  will  continue  to  operate  the  property  as a  nursery.  In
connection  with the agreement,  the Company  deposited  $50,000 with the escrow
agent of which a $10,000  non-refundable deposit was released to the sellers. In
December  2007, per the terms of the agreement the Company was to have deposited
an additional $100,000 into the escrow account on or before December 14, 2007 if
the  Company's  due  diligence  had been  completed.  Said due diligence was not
completed, therefore the deposit has not been made. The remaining $5,350,000 was
due by December 28, 2007, the original closing date. As of the current date, the
remaining  amounts  payable have not been paid because the due diligence has not
been  completed and the parties have verbally  agreed to set the closing date as
soon as possible after the completion of the due diligence.

GOING CONCERN AND MANAGEMENT'S PLAN
The Company has sustained  significant  losses and has a working capital deficit
of $2,713,301  and an  accumulated  deficit of  $20,719,957.  The ability of the
Company to continue as a going concern is dependent  upon  obtaining  additional
capital and financing,  and generating positive cash flows from operations.  The
Company is currently  seeking  additional  capital either through debt or equity
offerings and is attempting  to increase  sales volume and operating  margins to
achieve  profitability.  There are no  assurances  that such  financing  will be
obtained  by  management.  These  factors  raise  substantial  doubt  about  the
Company's  ability to continue as a going concern.  The  consolidated  financial
statements do not include any  adjustments  relating to the  recoverability  and
classification  of asset carrying  amounts or the amount and  classification  of
liabilities  that might  result  should the  Company be unable to  continue as a
going concern.

                                       5
<PAGE>
2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PRESENTATION
The consolidated financial statements of the Company are unaudited and have been
prepared in accordance  with  accounting  principles  generally  accepted in the
United  States of America for  interim  financial  information,  pursuant to the
rules and  regulations of the Securities and Exchange  Commission.  Notes to the
consolidated  financial  statements  which  would  substantially  duplicate  the
disclosures  contained in the audited  financial  statements for the most recent
fiscal year 2007 as reported in the Company's Form 10-KSB have been omitted. The
results of operations  for the three month  periods ended  December 31, 2007 and
2006 are not  necessarily  indicative of the results to be expected for the full
year.  All  accounts  and  intercompany  transactions  have been  eliminated  in
consolidation.   In  the  opinion  of  management,  the  consolidated  financial
statements  include all adjustments,  consisting of normal  recurring  accruals,
necessary  to  present  fairly  the  Company's  financial  position,  results of
operations and cash flows.  These statements  should be read in conjunction with
the  financial  statements  and related  notes  which are part of the  Company's
Annual Report on Form 10-KSB for the nine month period ended September 30, 2007.

CHANGE IN FISCAL YEAR
On September 17, 2007, the Company  changed its fiscal year end from December 31
to September 30.

NET LOSS PER SHARE
Basic loss per share is calculated by dividing net loss by the weighted  average
common shares outstanding during the period. Diluted net loss per share reflects
the  potential  dilution  to basic  earnings  per share  that  could  occur upon
conversion  or  exercise  of  securities,  options or other such items to common
shares using the treasury  stock  method,  based upon the weighted  average fair
value of our common shares during the period.  For each period presented,  basic
and diluted  loss per share  amounts are  identical  as the effect of  potential
common shares is antidilutive.

The following is a summary of  outstanding  securities  which have been excluded
from the calculation of diluted net loss per share because the effect would have
been antidilutive as of:

                                                December 31,        December 31,
                                                   2007                2006
                                                ----------          ----------
     Series A convertible preferred stock        2,763,699           2,763,699
     Series B convertible preferred stock               --          10,714,285

     Stock options                               4,010,840             680,000

     Warrants                                      884,000           1,055,000
     Convertible debt                           24,116,793           9,551,013
                                                ----------          ----------
                                                31,775,332          24,763,997
                                                ==========          ==========

3. NOTES PAYABLE

CONVERTIBLE NOTES PAYABLE
On October  25,  2007,  the  Company  and  holders of an  aggregate  of $120,000
outstanding convertible notes agreed to extend the maturity date from October 1,
2007 to October 1, 2008. The Company also agreed to reduce the conversion  price
of the outstanding  principal balance from $0.30 to $0.10 while the market price
was $0.09 per  share.  The  Company  also  granted  to one  holder a warrant  to
purchase  100,000  shares of the Company's  common  stock.  The warrants have an

                                       6
<PAGE>
exercise  price of  $0.10  per  share  and  expire  two  years  from the date of
issuance.  The fair value of the warrants was approximately $6,267 as determined
by the Black-Scholes option pricing model using the following assumptions:

     Estimated fair value of underlying common stock          $ 0.09
     Exercise price                                           $ 0.10
     Expected life (in years)                                      2
     Risk-free interest rate                                    3.69
     Expected volatility                                       146.9%
     Dividend yield                                                0%

The proceeds were allocated  between the convertible notes and the warrant based
on their  relative  fair values and resulted in $24,816  being  allocated to the
convertible  notes  payable and $5,184 to the warrants.  The resulting  discount
related to the  warrants  is being  amortized  over the life of the  convertible
note.

$150,000 NOTE PAYABLE
On December 7, 2007,  the Company  issued a $150,000 face value  non-convertible
note due January 15, 2008  together  with 500,000  shares of common  stock.  The
proceeds  from the  issuance  of the  note  and  underlying  common  stock  were
allocated  based on their  relative fair value which resulted in a debt discount
of $31,579.  The Company  valued the common stock  issued at the closing  market
price of the Company's  common stock on the date of issuance.  The debt discount
is being  amortized  over the term of the related debt.  During the three months
ended December 31, 2007, the Company amortized $19,433 to interest expense.  The
note was repaid in January 2008.

RELATED PARTY NOTES
During the three months ended December 31, 2007,  Diana Visco loaned the Company
$179,982.  The note bears  interest at the prime rate and is due on December 31,
2009.

4. PREFERRED STOCK

The Company has 10,000,000 preferred stock authorized. At December 31, 2007, the
Company  had  2,763,699  shares  of $0.50  stated  value  Series  A  convertible
preferred stock issued and outstanding.

5. COMMON STOCK

ISSUANCES OF COMMON STOCK
On October 29, 2007, FLD Corporation, an entity controlled by a former member of
the Company's board of directors and Ms. Diana Visco converted $800,000 of notes
payable into 1,757,143 shares of common stock at the original stated  conversion
prices ranging from $0.28 to $0.50 per share.

On  December 7, 2007,  the  Company  issued  500,000  shares of common  stock in
connection  with the issuance of a $150,000  note payable to an unrelated  third
party. See Note 3 for additional information.

On December  31, 2007,  the Company  issued  496,000  shares of common stock for
gross proceeds of $17,922.

WARRANTS TO PURCHASE COMMON STOCK
On November 15, 2007, the Company issued warrants to purchase  100,000 shares of
common  stock  in  connection  with  the  extension  of a note.  See  Note 3 for
additional information.

                                       7
<PAGE>
STOCK OPTIONS
On September 28, 2007, the board of directors approved the issuance of 2,968,840
stock options to certain  employees and members of the Board of Directors of the
Company at an exercise price of $0.11 per share; these options expire five years
from the date of approval.  The share options were granted and  communicated  on
October 10,  2007,  the  measurement  date.  The value of the stock  options was
determined using the Black-Scholes model with the following assumptions:

     Estimated fair value of underlying common stock          $ 0.12
     Exercise price                                           $ 0.11
     Expected life (in years)                                      5
     Risk-free interest rate                                    4.23
     Expected volatility                                       144.7%
     Dividend yield                                                0%

On October 10, 2007, the Company  granted  362,000  options to consultants at an
exercise  price of $0.11 per share.  The closing price of the  Company's  common
stock on the date of grant was $0.12.  The options  vest ratably over four years
and  require  the  consultant  to provide  services  during  this  period to the
Company. The stock options expire ten years from the date of grant. the value of
the  stock  options  was  determined  using  the  Black-Scholes  model  with the
following assumptions:

     Estimated fair value of underlying common stock          $ 0.12
     Exercise price                                           $ 0.11
     Expected life (in years)                                      5
     Risk-free interest rate                                    3.34
     Expected volatility                                       144.7%
     Dividend yield                                                0%

During the three months ended December 31, 2007 and 2006,  the Company  recorded
stock compensation expense totaling $22,708 and $0, respectively.

6. COMMITMENTS AND CONTINGENCIES

In October  2007,  the  former  owners of Smart  World  Organics,  Inc.  filed a
complaint  with the Circuit Court in the Six Judicial  District of Pasco County,
Florida, against the Company seeking damages,  declaratory and injunctive relief
consisting relating to the $1,500,000  convertible  debenture and the associated
accrued interest  thereon.  The plaintiffs allege that the Company failed to pay
accrued  interest  when due and,  thus,  the  entire  amount of the  convertible
debenture  of  $1,500,000  is due and  payable.  The  Company  alleges  that the
jurisdiction of this matter belongs in the California court system per the terms
of the  debenture  agreement  and thus has filed a motion to  dismiss.  The note
payable is classified as a current  liability in the  accompanying  consolidated
financial statements.

7. SUBSEQUENT EVENTS

On January 21, 2008,  the Company issued 150,000 shares of common stock for cash
proceeds of $5,865.

In January  2008,  Diana  Visco,  the  Company's  corporate  secretary  repaid a
$150,000 note payable due to a third party on behalf of the Company. The note is
now payable to Ms.  Visco and incurs  interest at the prime rate of interest and
is due on December 31, 2009.

On February 8, 2008, the Company and Diana Visco increased the face value of the
outstanding notes of $75,800 for an aggregate amount outstanding of $395,061.

                                       8
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

The following discussion and analysis should be read in conjunction with our
financial statements, including the notes thereto, appearing elsewhere in this
Report.

FORWARD-LOOKING STATEMENTS

The following information contains certain forward-looking statements.
Forward-looking statements are statements that estimate the happening of future
events and are not based on historical fact. Forward-looking statements may be
identified by the use of forward-looking terminology, such as "may," "could,"
"expect," "estimate," "anticipate," "plan," "predict," "probable," "possible,"
"should," "continue," or similar terms, variations of those terms or the
negative of those terms. The forward-looking statements specified in the
following information have been compiled by our management on the basis of
assumptions made by management and considered by management to be reasonable.
Our future operating results, however, are impossible to predict and no
representation, guaranty, or warranty is to be inferred from those
forward-looking statements.

OVERVIEW

We develop, manufacture and market cutting-edge technology that decreases the
need for water and improves the soil in the "Green Industry" consisting of
agriculture, turf and horticulture. Our products enhance growing environments
and reduce the environmental damage caused by common growing practices. Our
segments consist of the following.

HYDROGANIC

We own the worldwide rights to a patented stackable container that is perfectly
designed for growing fruit and vegetables in greenhouses that exclusively use
hydroponics and organic growing methods. It is possible to grow up to 48 plants
in the same area as two plants would occupy using conventional growing methods.
We refer to our proprietary methods as vertical farming. We own patents and have
registered trademarks including the name Hydroganic(TM), which describes this
new direction in the hydroponics-organic growing marketplace.

We are involved in the acquisition, retrofitting and developing of greenhouses
that will be dedicated to growing, packaging and marketing the highest quality
organic crops that will be free of any type of disease. Our technology uses
substantially less water, less nutrients and has better efficiency compared to
non-organic farming. The greenhouses will produce hydroponically grown organic
vegetables and fruits such as strawberries, peppers, herbs, tomatoes, cucumbers
and microgreens. We will use computers to monitor the environment to prevent
contamination that can occur. All water and plant nutrients will be recycled and
reconstituted to minimize operations costs.

                                        9
<PAGE>
The Hydroganics(TM) business model and technology has attracted interest from
potential customers, strategic partners and governments throughout the world. We
can build our own proprietary Hydroganics(TM) greenhouses and operate them, and
we are prepared to license the technology and manage greenhouses using the
technology for owners who do not now have and perhaps never desire to obtain the
expertise to do so. We have also developed a program for management of
greenhouse operations using our licensed technology for businesses or non-profit
companies that wish to construct the Hydroganics(TM) greenhouses on their own
property.

We use scientists (both employees and consultants) who are experts in
hydroponics and organics for the continuing development of improvements to the
technologies and to create the best possible methods for using our unique
technologies. Although we do not not have exclusive rights to use hydroponics or
organics in greenhouse environments, no competitor may use the patented
stackable containers that result in dramatically higher crop yields.

We have entered into an agreement to purchase and retrofit a greenhouse property
south of Half Moon Bay, California. The facility with green houses and support
facilities covers 30 acres. At this "green organic facility", we will grow the
highest quality organic crops that will be free of any type of disease. We will
use substantially less water and fewer nutrients than synthetic farming. The
greenhouses will produce hydroponically grown organic vegetables and fruits such
as strawberries, peppers, herbs, tomatoes, cucumbers and microgreens.

HOME GARDENING MARKET

Our super-absorbent polymer products, organic nutrient products and the home
version of the hydroponics growing system are attracting a great deal of
attention from the home gardening market. We are exploring many approaches to
this market segment including joint ventures with established marketing
companies and anticipate that we will shortly enter into a new marketing phase.

AGRICULTURE

The cost of petroleum products in the low margin agriculture industry has
significantly impacted the sales of our polymer products. However, we have made
substantial progress toward major sales in Kuwait and the United Arab Emirates
(U.A.E). The polymer products have been approved in laboratory and field-testing
in Kuwait and laboratory testing in the U.A.E. where we are now conducting field
tests. Morocco has also shown great interest in these products. Our revenues for
these agriculture products in the US will be directly related to the price of
oil (the cost of goods rises and falls with oil prices) and the current price of
the crops grown by customers (demand for the products is tied to the demand for
the crops of customers).

TURF

Our revenue in the turf industry, which includes golf courses, is improving
because of increased sales of the patented soil medic slow release

                                       10
<PAGE>
liquid fertilizer. We also anticipate a major breakthrough in marketing our
unique products in conjunction with our existing and future licensees.

RESULTS OF OPERATIONS

The following table sets forth, for the periods indicated, our selected
financial information:

                                     Three Months Ended     Three Months Ended
                                      December 31, 2007      December 31, 2006
                                      -----------------      -----------------
                                        (Unaudited)
(Unaudited)
STATEMENT OF OPERATIONS DATA:
  Revenue                              $     82,179            $    145,035
  Net Loss                                 (413,743)             (1,309,038)
  Net Loss Per Share                          (0.01)                  (0.04)

BALANCE SHEET DATA:
  Current Assets                       $    275,152            $    592,878
  Property & Equipment, Net                 256,250                 401,862
  Intangible Assets, Net                  2,633,310               3,453,772
  Total Assets                            3,713,068               4,913,584
  Total Current Liabilities               2,988,453               3,204,278
  Accumulated Deficit                   (20,719,957)            (17,197,850)

THREE MONTHS ENDED DECEMBER 31, 2007 (UNAUDITED) COMPARED TO THREE MONTHS ENDED
DECEMBER 31, 2006 (UNAUDITED)

REVENUES

Revenues for the three months ended December 31, 2007 were $82,179 compared to
$145,035 for the three months ended December 31, 2006, a decrease of 43.3%. This
decrease in revenue is a direct result of the loss of our linear polymer
business caused by defective product received from our supplier and a lack of
capital which has hindered our sales efforts. We are in litigation with this
supplier and have commenced settlement negotiations. Our revenue for the three
months ended December 31, 2006 included $103,000 of linear polymer sales that
were lost this reporting period because of reluctance by our customers to
purchase product from us over concern about receiving defective product.

COST OF SALES

Cost of goods sold decreased to $59,422 for the three months ended December 31,
2007 from $126,558 for the three months ended December 31, 2006. The decrease in
the cost of sales is the result of the decrease revenues during this period. Our
gross margins were 27.7% and 12.7% for the three months ended December 31, 2007
and December 31,2006, respectively. The increase in our gross margins was due to

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increased margins in the individual products sold during the three months ending
December 31, 2007.

OPERATING EXPENSES

Operating expenses decreased approximately 64% for the period ended December 31,
2007. This decrease in operating expenses is a result of many factors. General
and administrative expenses increased approximately 18.5% for the period ended
December 31, 2007 due to the additional general and administrative expenses
relating to our acquisition of Smart World Organics in December 2006. Sales and
marketing expenses decreased approximately 56.4% because we reduced the number
of trade shows we attended and reduced our print advertising, which is part of
our sales and marketing plan in order to reduce costs. We had no research and
development costs for the three months ended December 31, 2007 and December 31,
2006. Our amortization expense to increased to $126,789 for the three months
ended December 31, 2007 from $80,591 for the three months ended December 31,
2006 due to the acquisition of Smart World Organics. Other expenses increased
from $89,881 for the period ended December 31, 2006 to $(155,883) for the period
ended December 31, 2007 primarily due to a change in fair value of derivative
liability of $265,986.

NET LOSS

We experienced a net loss from operations of $(413,743) for the three months
ended December 31, 2007 as compared to a net loss of $(1,309,038) for the three
months ended December 31, 2006. Our sales and marketing expenses decreased from
$64,498 in the three months ended December 31, 2006 to $28,082 for the three
months ended December 31, 2007. The decrease in the net loss is directly related
to a decrease in other expenses of $66,002 and the elimination of a one-time
charge of $1,100,000 to impairment of intangible assets and goodwill that was
reported on December 31, 2006. We continue to focus our efforts on developing
strategic alliances, marketing agreements, and distribution networks. Revenue
from the sale of products decreased from $145,035 for the three months ended
December 31, 2006 to $82,179 for the three months ended December 31, 2007. This
decrease in revenue is a direct result of the loss of our linear polymer
business in the amount of $103,104 caused by defective product received from our
linear polymer supplier.

SEASONALITY

Our efforts in the United States have focused on the southern states and
therefore generally experience year round growing cycles, with the sale of the
agricultural products preceding the growing cycle of various crops.
International sales have not been sufficient enough or the geographic
distribution of sales concentrated enough to determine if a seasonal trend
exists although the initial indication is that our markets will become diverse
and therefore not indicate significant seasonal variations. As we expand into
the residential and commercial segments nationally, we will experience some
seasonal declines in sales during the fall and winter quarters in less temperate
climates. As we expand into the hydroponics organic market, we should experience
a significant lessening of seasonal variations.

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<PAGE>
LIQUIDITY AND CAPITAL RESOURCES

Cash and cash equivalents totaled $0 and $80,338 at December 31, 2007 and 2006,
respectively. Net cash used by operations was $(318,789) for the period ended
December 31, 2007 compared to net cash used by operations of $(367,002) for the
comparable period ended December 31, 2006. We have historically relied upon one
of our officers and significant shareholders to provide cash to meet short term
operating cash requirements.

At December 31, 2007, the outstanding balance of the debentures was $1,938,970
These convertible debentures consisted of: (a) $1,500,000, 8% per annum
convertible debentures at the closing price on the day immediately preceding the
day of conversion which is currently in default and in dispute; (b) $770,000, 8%
per annum convertible debentures; (c) $100,000, 8% convertible debentures; (d)
$120,000, 8% per annum convertible debentures; and (e) $173,970, 10% per annum
convertible debentures. Interest expense for the three months ended December 31,
2007 was $96,792 and interest expense for the three months ended December 31,
2006 was $141,615.

We have a working capital deficit of $2,713,301 as of December 31, 2007.

Our ability to continue as a going concern is dependent on obtaining additional
capital and financing and operating at a profitable level. We are currently
seeking additional capital either through debt or equity offerings and to
increase sales volume and operating margins to achieve profitability. Our
working capital and other capital requirements during the next fiscal year and
thereafter will vary based on the sales revenue generated by the recent
accumulation of additional products and the distribution and sales network we
have created and will continue to grow.

We will consider both the public and private sale of securities and/or debt
instruments for expansion of our operations if such expansion would benefit our
overall growth and income objectives. Should sales growth not materialize, we
may look to these public and private sources of financing. There can be no
assurance, however, that we can obtain sufficient capital on acceptable terms,
if at all. Under such conditions, failure to obtain such capital likely would at
a minimum negatively impact our ability to timely meet our business objectives.

Our auditors issued an explanatory paragraph regarding substantial doubt about
the Company's ability to continue as a going concern.

ITEM 3. CONTROLS AND PROCEDURES

Our Chief Executive Officer, President, and Chief Financial Officer (the
"Certifying Officers") are responsible for establishing and maintaining
disclosure controls and procedures for the Company. The Certifying Officers have
designed such disclosure controls and procedures to ensure that material
information is made known to them, particularly during the period in which this
report was prepared. The Certifying Officers have evaluated the effectiveness of
the Company's disclosure controls and procedures within 90 days of the date of
this report and believe that the Company's disclosure controls and procedures
are effective based on the required evaluation. There have been no significant
changes in internal controls or in other factors that could significantly affect
internal controls subsequent to the date of their evaluation, including any
corrective actions with regard to significant deficiencies and material
weaknesses.

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<PAGE>
                           PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

On or about September 21, 2007, Stockhausen, Inc. ("Stockhausen") filed a
Complaint in the United States District Court, for the Middle District of North
Carolina, against us seeking damages. Stockhausen alleges that we breached an
agreement with them by failing to pay for goods purchased and failing to
purchase a minimum quantity of goods. We believe that Stockhausen provided
defective products and waived any minimum purchase requirements. Stockhausen is
seeking a judgment in the amount of $188,180 plus interest and lost profits in
an unspecified amount, along with costs and attorneys fees. We filed an Answer
to the Complaint and a Cross-Complaint against Stockhausen on November 14, 2007.
The parties are currently engaging in settlement discussions.

On or about October 4, 2007, Raymond J. Nielsen and Cheryl K. Nielsen
(collectively, "Plaintiffs"), filed a Complaint in the Circuit Court in the
Sixth Judicial District of Pasco County, Florida, against us and Smart World
(collectively "Defendants") seeking damages, declaratory, and injunctive relief.
Plaintiffs allege that Defendants failed to pay interest when due on the
Convertible Debenture from Defendants to Plaintiffs and, thus, the entire amount
of the Convertible Debenture is accelerated and Plaintiffs are seeking a
judgment in the amount of $1,500,000 plus interest. We allege that jurisdiction
of this matter belongs in the California court system per the terms of the
documents. We have filed a Motion to Dismiss the lawsuit which is scheduled for
hearing on February 21, 2008. It is our position that the intellectual property
we purchased from the Plaintiffs is not what it was represented to be and we may
file a counterclaim against the Plaintiffs.

To the best knowledge of our management, there are no other legal proceedings
pending against us.

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

On February 1, 2008, we agreed to issue 175,000 shares of common stock to Brian
Weiss of BSW & Associates in exchange for financial consulting services rendered
to us. We agreed to register this issuance on a Registration Statement on Form
S-8. We believe that Mr. Weiss is an "accredited investor" under Rule 501 under
Regulation D of the Act and had adequate access to information about us.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

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

None.

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ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS

The following Exhibits are filed herein:

      No.                               Title
      ---                               -----
     10.1      Consulting Agreement, dated February 1, 2008

     31.1      Certification of Chief Executive Officer Pursuant to the
               Securities Exchange Act of 1934, Rules 13a-14 and 15d-14, as
               adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

     31.2      Certification of Chief Financial Officer Pursuant to the
               Securities Exchange Act of 1934, Rules 13a-14 and 15d-14, as
               adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

     32        Certification Pursuant to 18 U.S.C. Section 1350, as Adopted
               Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

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<PAGE>
                                   SIGNATURES

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

DATED: February 19, 2008            AMERICAN SOIL TECHNOLOGIES, INC.


                                    By: /s/ Carl P. Ranno
                                       -----------------------------------------
                                         Carl P. Ranno
                                    Its: President, Chief Executive Officer,
                                         Chief Financial Officer
                                         (Principal Executive Officer, Principal
                                         Financial Officer and Principal
                                         Accounting Officer)

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