<PAGE>

                     U.S. SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549



                                  FORM 10QSB/A

     x    QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
          SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY
          PERIOD ENDED SEPTEMBER 30, 1999
                       ------------------

          TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
          SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD
          FROM________ TO _______________


                         Commission file number 0-25177


                       Advanced Engine Technologies, Inc.
                       ---------------------------------
        (Exact name of small business issuer as specified in its charter)

                    Colorado                                   84-1358194
                    --------                                   ----------
          (State or other jurisdiction of                    (IRS Employer
          incorporation or organization)                  Identification No.)

      11150 W. Olympic Boulevard, Suite 1050, Los Angeles, California 90064
      ---------------------------------------------------------------------
               (Address of principal executive offices) (Zip Code)

                                 (310) 914-9599
                                 --------------
                (Issuer's telephone number, including area code)

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

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date. September 30, 1999 - 22,725,000
shares of common stock.

Transitional Small Business Disclosure Form         Yes           No    x

<PAGE>

Part I.     Financial Information

Item 1.     Financial Statements


                                              ADVANCED ENGINE TECHNOLOGIES, INC.
                                                   (A DEVELOPMENT STAGE COMPANY)
                                                                FINANCIAL REPORT
                                                              SEPTEMBER 30, 1999





<PAGE>

                       ADVANCED ENGINE TECHNOLOGIES, INC.
                          (A DEVELOPMENT STAGE COMPANY)








                                    CONTENTS

<TABLE>
<CAPTION>
                                                                     Page
<S>                                                                  <C>
ACCOUNTANTS' REPORT                                                    1
FINANCIAL STATEMENTS

               Balance Sheet                                           2
               Statements of Operations                                3
               Statement of Stockholders' Equity                       4
               Statements of Cash Flows                                5
               Notes to Financial Statements                         6-10
</TABLE>





<PAGE>

NEFF & RICCI LLP
----------------------------

CERTIFIED PUBLIC ACCOUNTANTS
7001 PROSPECT PLACE NE
ALBUQUERQUE, NM  87110



                               Accountants' Report




Advanced Engine Technologies, Inc.
(A Development Stage Company)


We have compiled the accompanying balance sheet of Advanced Engine Technologies,
Inc. (a development stage company) as of September 30, 1999 and the related
statements of operations, changes in stockholders' equity and cash flows for the
quarters ended September 30, 1999 and 1998, and the period from September 23,
1996 (inception) through September 30, 1999, in accordance with Statements on
Standards for Accounting and Review Services issued by the American Institute of
Certified Public Accountants.

A compilation is limited to presenting in the form of financial statements
information that is the representation of management. We have not audited or
reviewed the accompanying financial statements and, accordingly, do not express
an opinion or any other form of assurance on them.

The financial statements have been revised for the matter discussed in Note 6.


/s/ Neff & Ricci LLP

Albuquerque,  New Mexico
October 15, 1999, except for Note 6,
as to which the date is October 12, 2001

                                                                               1

<PAGE>

ADVANCED ENGINE TECHNOLOGIES, INC.
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEET
September 30, 1999

<TABLE>
<CAPTION>
ASSETS
<S>                                                         <C>
CURRENT ASSETS
    Cash and equivalents                                    $  2,319,260
    Prepaid insurance                                              3,288
                                                            ------------
           Total current assets                                2,322,548
                                                            ------------
FIXED ASSETS

    Furniture                                                      7,523
    Computer equipment                                            44,156
    Manufacturing equipment and tooling                           71,626
    Less accumulated depreciation                                (26,393)
                                                            ------------
           Total fixed assets                                     96,912
                                                            ------------
OTHER ASSETS

    Patent rights, net of accumulated
        amortization of $65,638                                1,552,674
    Patent, copyrights and designs net of
        accumulated amortization of $7,292                        36,457
                                                            ------------
           Total other assets                                  1,589,131
                                                            ------------
           Total assets                                     $  4,008,591
                                                            ============
LIABILITIES AND STOCKHOLDERS' EQUITY

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY
    Common stock-50,000,000 shares authorized,
    22,925,000 issued and outstanding; $.001 value          $     22,925
    Additional paid-in capital                                 6,483,825
    Committed common stock under grant agreement               3,720,000
    Deferred costs under grant agreement                      (4,339,500)
    Deficit accumulated during the development stage          (1,878,659)
                                                            ------------
           Total stockholders' equity                          4,008,591
                                                            ------------
Total liabilities and stockholders' equity                  $  4,008,591
                                                            ============
</TABLE>

See accompanying notes and accountants' report.

                                                                               2

<PAGE>

ADVANCED ENGINE TECHNOLOGIES, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF OPERATIONS
Quarters Ended September 30, 1999 and 1998 and the
Period From September 23, 1996 (Inception)
Through September 30, 1999

<TABLE>
<CAPTION>
                                                                   September 23,
                                                                       1996
                                                                    (Inception)
                                                                      Through
                                                                   September 30,
                                           1999          1998          1999
<S>                                     <C>           <C>          <C>
Operating expenses                      $   196,126      108,279      1,094,571
Research and development expenses                 -            -        525,000
Stock grant expense                         232,500            -        310,500
                                        ---------------------------------------
Loss from operations                       (428,626)    (108,279)    (1,930,071)
Interest income                               4,216        4,960         51,412
                                        ---------------------------------------
Net loss                                $  (424,410)    (103,319)    (1,878,659)
                                        =======================================
Basic net loss per share                $      (.02)       (.005)          (.09)
                                        =======================================
Weighted average number of common
    shares outstanding                   22,525,000   21,600,000     20,795,532
                                        =======================================
</TABLE>

See accompanying notes and accountants' report.

                                                                               3

<PAGE>

ADVANCED ENGINE TECHNOLOGIES, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF STOCKHOLDERS' EQUITY
Quarters Ended September 30, 1999 and 1998 and the
Period From September 23, 1996 (Inception)
Through September 30, 1999

<TABLE>
<CAPTION>
                                                                 Committed                                 Deficit
                                                                  Common                   Deferred      Accumulated
                                Common Stock      Additional       Stock                     Costs        During the
                            --------------------  Paid-in      Under Grant  Subscription Under Grant    Development
                              shares     Amount    Capital       Agreement    Receivable    Agreement       Stage          Total
                            ----------  --------  -----------   -----------   ----------  ------------   ------------   -----------
<S>                         <C>         <C>       <C>           <C>           <C>         <C>            <C>            <C>
Balance September 23,
 1996 (Inception)                    -  $      -  $         -   $         -   $       -   $          -   $          -   $         -
Common stock issued to
 parent corporation for
 license rights             20,000,000    20,000      (18,000)                                                                2,000
Common stock issued for
 cash                          499,200       499      498,701                                                               499,200
Common stock issued for
 services                      600,000       600        5,400                                                                 6,000
Net loss                                                                                                     (164,233)     (164,233)
                            ----------  --------  -----------   -----------   ----------  ------------   ------------   -----------

Balance, June 30, 1997      21,099,200    21,099      486,101             -           -              -       (164,233)      342,967
Common stock issued for
 cash                          500,800       501      500,299                                                               500,800
Net loss                                                                                                     (309,635)     (309,635)
                            ----------  --------  -----------   -----------   ----------  ------------   ------------   -----------

Balance, June 30, 1998      21,600,000    21,600      986,400             -           -              -       (473,868)      534,132
Common stock committed
 under grant agreement                                            4,650,000                 (4,650,000)                           -
Common stock issued for
 cash                          325,000       325      568,425                                                               568,750


Common stock issued for
 services                      400,000       400    1,999,600                                                             2,000,000
Research and development
 expense recognized under
 grant agreement                                                                                78,000                       78,000
Net loss                                                                                                     (980,381)     (980,381)
                            ----------  --------  -----------   -----------   ----------  ------------   ------------   -----------

Balance, June 30, 1999      22,325,000    22,325    3,554,425     4,650,000           -     (4,572,000)    (1,454,249)    2,200,501
Common stock issued under
 grant agreement               200,000       200      929,800      (930,000)                                                      -
Common stock issued for
 cash                          400,000       400    1,999,600             -                          -              -     2,000,000
Research and development
 expense recognized under
 grant agreement                                                                               232,500                      232,500
Net loss                                                                                                     (424,410)     (424,410)
                            ----------  --------  -----------   -----------   ----------  ------------   ------------   -----------
Balance, September 30, 1999 22,925,000  $ 22,925  $ 6,483,825   $ 3,720,000   $       -   $ (4,339,500)  $ (1,878,659)  $ 4,008,591
                            ==========  ========  ===========   ===========   ==========  ============   ============   ===========
</TABLE>

See accompanying notes and accountants' report.

                                                                         4

<PAGE>

ADVANCED ENGINE TECHNOLOGIES, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF CASH FLOWS
Quarters Ended September 30, 1999 and 1998 and the
Period From September 23, 1996 (Inception)
Through September 30, 1999

<TABLE>
<CAPTION>

                                                                                     September 23,
                                                                                         1996
                                                                                      (Inception)
                                                                                        Through
                                                                                     September 30,
                                                           1999            1998          1999
<S>                                                    <C>               <C>         <C>
Reconciliation of net losses to net
  cash provided by operations:
        Net loss                                       $   (424,410)     (103,319)    (1,878,659)
        Stock grant expense                                 232,500             -        310,500
        Depreciation                                         49,688           901         99,324
        Issuance of common stock for
           services and license rights                            -             -        576,750
Changes in current assets and liabilities:
        Prepaid insurance                                     4,928             -         (3,288)
        Accounts payable                                     (2,881)      (31,283)             -
                                                       -----------------------------------------
           Net cash flows applied to
               operating activities                        (140,175)     (133,701)      (895,373)
                                                       -----------------------------------------

Cash flows from investing activities:

        Equipment purchases                                  (5,767)         (829)      (123,306)
        Intangible purchases                                (96,593)            -     (1,662,061)
                                                       -----------------------------------------
           Net cash flows applied to
               investing activities                        (102,360)         (829)    (1,785,367)
                                                       -----------------------------------------

Cash flows from financing activities:

        Issuance of common stock                          2,000,000             -      5,000,000
        Loan proceeds                                             -             -         50,000
        Loan payments                                             -             -        (50,000)
                                                       -----------------------------------------
           Net cash flows provided by
               financing activities                       2,000,000             -      5,000,000
                                                       -----------------------------------------

Net increase (decrease) in cash                           1,757,465      (134,530)     2,319,260

Cash and equivalents at beginning of period                 561,795       545,435              -
                                                       -----------------------------------------

Cash and equivalents at end of period                  $  2,319,260       410,905      2,319,260
                                                       =========================================
</TABLE>

See accompanying notes and accountants' report.

                                                                               5

<PAGE>

ADVANCED ENGINE TECHNOLOGIES, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
September 30, 1999



NOTE 1. NATURE OF BUSINESS

Advanced Engine Technologies, Inc. (the Company), originally a subsidiary of OX2
Engine (Distribution) Ltd. (OX2), was incorporated under the laws of Colorado
and began operations on September 23, 1996. The Company was formed to acquire
the rights to manufacture, distribute and market an OX2 Engine combustion engine
throughout the United States, Canada and Mexico. On October 18, 1996 the Company
entered into a contract with OX2 which was incorporated in the Republic of
Vanuatu, whereby the Company acquired the rights to manufacture, distribute and
market the OX2 combustion engine. As part of this contract the Company issued
20,000,000 shares of its common stock and was to issue an additional 19,000,000
upon the completion of certain tests (see Note 3). In December 1998, both
parties agreed to cancel the requirement to issue the additional 19,000,000
shares. In addition, OX2 has the right to appoint two of the Company's three
directors. As of June 30, 1998, OX2 owned approximately 62 percent of the
Company's outstanding shares.

During the year ended June 30, 1999, OX2 transferred its ownership interest to
various successor entities, none of which individually has a controlling
interest. These successor entities have common ownership and as a group may have
a controlling interest in the Company.

In May of 1999, the Company acquired the world-wide patent rights for the OX2
engine from OX2 in exchange for $1.5 million. The Company will take
responsibility for patent maintenance and future research and development. As of
June 30, 1999, the Company's operations consisted of obtaining capital and
marketing the OX2 combustion engine. Management does not expect to generate
significant sales revenue until fiscal year 2000. Accordingly, planned principal
operations have not commenced and the Company is a development stage enterprise.

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Cash and Cash Equivalents. Cash and cash equivalents include all cash balances
and highly liquid debt instruments with an original maturity of three months or
less. The Company's cash is deposited in a Colorado financial institution and is
insured only up to $100,000 by the Federal Deposit Insurance Corporation.

Fixed Assets. Fixed assets are stated at cost. Depreciation expense is
calculated using the straight-line method over the estimated useful lives of the
assets, which range from 5 to 10 years.

                                                                               6

<PAGE>

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
        (CONTINUED)

Other Assets. Patent rights are amortized on a straight-line basis over the
remaining estimated useful life of 10 years. The patents, copyrights and designs
are amortized on a straight-line basis over the remaining estimated useful life
of 5 years. The Company continually reviews other assets to assess
recoverability from estimated future net cash flows. To date, these reviews have
not resulted in a reduction of other assets.

Income Taxes. The Company accounts for its income taxes using the liability
method. Under this method, deferred tax liabilities and assets are determined
based on the difference between the financial statement carrying amounts and tax
basis of assets and liabilities using enacted tax rates in effect in the years
in which the differences are expected to reverse. The Company has provided a
valuation allowance to offset the benefit of any net operating loss
carryforwards or deductible temporary differences.

Research and Development  Costs.  Research and development costs are expensed as
incurred.

Advertising Costs. The Company expenses advertising costs as incurred.
Advertising costs amounted to $139,109 from September 23, 1996 (inception) to
September 30, 1999, including $48,858 for the quarter ended September 30, 1999
and $199 for the quarter ended September 30, 1998.

Loss Per Share. Loss per share is computed on the basis of the weighted average
number of common shares outstanding during the year and did not include the
effect of potential common stock as their effect would be antidilutive. The
numerator for the computation is the net loss and the denominator is the
weighted average shares of common stock outstanding.

Use of Estimates. The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.

                                                                               7

<PAGE>

NOTE 3. RELATED PARTY TRANSACTIONS (CONTINUED)

The Company paid consulting fees to its President, who is also a shareholder, in
the amount of $231,093 from September 23, 1996 (inception) to September 30, 1999
including $19,890 for the quarter ended September 30, 1999, and $19,500 for the
quarter ended September 30, 1998.

The Company paid administrative fees and reimbursed expenses to a company that
is owned by one of its shareholders in the amount of $65,416 from September 23,
1996 (inception) to September 30, 1999 including $15,406 for the quarter ended
September 30, 1999, and $6,106 for the quarter ended June 30, 1998.

In October 1996, the Company issued 600,000 shares of its common stock to one of
its founders in exchange for his services in organizing the Company. The
transaction was recorded at the estimated fair market value of the services
provided ($6,000), as this was more readily determinable.

Also in October 1996, the Company entered into a contract with OX2 whereby the
Company acquired the rights to manufacture, distribute and market the OX2
combustion engine in the United States, Canada and Mexico for the life of the
world-wide patent. As part of this contract, the Company issued 20,000,000
shares of its common stock and was to issue an additional 19,000,000 upon the
completion of emission tests. In December 1998, both parties agreed to cancel
the requirement to issue the additional 19,000,000 shares. The Company is also
to pay a royalty of 15 percent of the gross proceeds of its revenue. In
addition, OX2 has the right to appoint two of the Company's three directors. As
of June 30, 1999, OX2 had appointed one director who is also the Company's
President. In May 1999, the Company acquired the world wide patent rights for
the OX2 engine from OX2 in exchange for $1.5 million. The Company will take
responsibility for patent maintenance and future research and development.

NOTE 4. INCOME TAXES

At September 30, 1999 the Company had deferred tax assets amounting to
approximately $709,000. The deferred tax assets consist primarily of the tax
benefit of net operating loss carryforwards and are fully offset by a valuation
allowance of the same amount.

The net change in the valuation allowance for deferred tax assets was an
increase of approximately $170,000 and $40,000 for the quarter ended September
30, 1999 and 1998, respectively. The net change is due primarily to the increase
in net operating loss carryforwards.

                                                                               8

<PAGE>

NOTE 4. INCOME TAXES (CONTINUED)

At September 30, 1999 the Company had net operating loss carryforwards of
approximately $1,772,000 available to offset future state and federal taxable
income. These carryforwards will expire in 2017 and 2020 for federal tax
purposes and 2002 and 2005 for state tax purposes.

NOTE 5. COMMON STOCK

The Company offered one million shares of its common stock at the price of one
dollar per share in an offering memorandum pursuant to Rule 504 of Regulation D
of the Securities Act of 1933. The Company sold 499,200 shares as of June 30,
1997, and 500,800 during fiscal year 1998. As of June 30, 1997, the Company had
stock subscribed in the amount of $74,000 that was recorded as a receivable and
subsequently received in fiscal year 1998.

On August 6, 1998, the Company entered into a joint venture agreement with
Carroll Shelby under which the Company was to issue 300,000 shares of restricted
common stock in exchange for the design and production of a street vehicle that
utilizes the OX2 combustion engine. These shares were issued in November 1998.
They were valued at $525,000 and expensed as research and development costs. In
addition, the Company will issue an additional 250,000 shares upon completion of
the vehicle utilizing the OX2 combustion engine. Subsequent to this transaction,
Carroll Shelby was appointed to the Board of Directors.

In November 1998, the Company issued 25,000 shares of restricted stock to
purchase patents, copyrights, designs and prototypes to be used with the
Company's technology. This transaction was valued at $43,750 and recorded as an
intangible asset.

In April 1999, the Company issued 400,000 shares of common stock for $2,000,000
in a private placement. During the quarter ended September 30, 1999, the Company
issued an additional 400,000 shares of common stock to the same party for
$2,000,000 in a private placement.

In June 1999, the Company agreed to issue 1,000,000 shares of restricted common
stock to the University of California Riverside Foundation in five annual
installments of 200,000 shares each. The donated stock is to provide an
endowment for research funds for the College of Engineering Center for
collaborative research on the development of advanced engine technologies. For
financial statement presentation purposes, the stock under the grant agreement
is treated as committed stock until its issuance. The first and second
installments were issued in July 1999 and 2000, respectively.

Expense on the grant is being recognized ratably over a five-year period based
upon an estimated fair value at the date of the grant of $4.65 per share. This
estimate of its fair value is based upon the tracking price of the stock on the
grant date of $7.75 per share, less a 40% discount because the stock was
restricted, Company's stock had a very low trading volume at the time of the
grant agreement, and the Company was still in a development stage. During the
period from September 23, 1996 (inception) to September 30, 1999, the Company
recognized total expense on the stock grant of $310,500, including $232,500 for
the three months ended September 30, 1999.

                                                                               9

<PAGE>

NOTE 6.  RESTATEMENT OF THE SEPTEMBER 30, 1999 FINANCIAL STATEMENTS

The financial statements for the three months ended September 30, 1999 have been
restated from the originally filed financial statements to reflect greater
expense recognition in those years in connection with the June 1999 stock grant
agreement with the University of Riverside Foundation. (See Note 5 for a
description of the agreement and the accounting related to the agreement.)
Specifically, upon re-evaluation of the agreement, current management has
concluded that the fair value of the committed common stock on the date of the
agreement was $4,650,000, and not $1,500,000 as originally valued. This increase
in the fair value of the committed common stock on the date of the grant
agreement impacts the expense recognition on the stock grant agreement because
the expense which is recognized over a five-year period is based upon the fair
value of the committed common stock on the date of the stock grant agreement.
Originally, the financial statements as of September 30, 1999 reflected $300,000
of operating expense associated with this grant. As a result of the foregoing,
the financial statements for the three months ended September 30, 1999 have been
restated to reflect a stock grant expense of $232,500. Also, the originally
filed September 30, 1999 financial statements classified the expense on the
stock grant as operating expense; whereas, the restated financial statements
present the expense as "stock grant expense." Additionally, there have been
certain presentation changes in the statement of shareholders' equity to reflect
committed common stock and deferred costs related to the stock grant agreement.

                                       10

<PAGE>

Item 2.       Management's Discussion and Analysis or Plan of Operation

         The Company plans to continue the development of prototypes and
marketing during the 2000 fiscal year. Activities will include demonstrations to
prospective original equipment manufacturers of products using internal
combustion engines, work with its joint venture partner to develop an engine for
automobile use and developing additional joint venture partners in order to
market the engine. While prototypes of the OX2 engine exist, there can be no
assurance the Company will be successful with its marketing efforts, the
development of its joint ventures or in the ultimate development of the engine
for commercial applications.

                  The Company's cash flow requirements to fund these activities
and the general operations of the Company total approximately $1,000,000 and
include approximately $200,000 for consulting and $300,000 for equipment among
other costs. The Company expects to fund these costs with its current cash
reserves of approximately $2,300,000, which came from private placements. The
Company's cost estimates do not include provisions for any contingencies or
unexpected expenses that may arise or any unanticipated increases in costs. As a
result, the Company's cash reserves may not be adequate to cover the actual
costs of operations in the 2000 fiscal year.

                  The Companies' net loss since inception (September 23, 1996)
is $1,878,659.

                  The Company expects to sign its first contracts for the
production of small engines in fiscal year 2000 and expects as a result to begin
generating revenue. There are currently no signed contracts that will produce
revenue and there can be no assurance management will be successful in
negotiating these contracts.

                  The Company's parent provides the research and development
required to bring the product to commercial production. In addition, its joint
venture partner undertakes development as well. As a result, the Company expects
to carry out or fund any research and development.

                  The Company does not currently have any employees other than
its officers nor does it expect to add any in the next year.

Part II.      Other Information

Item 1.       Legal Proceedings
              None

Item 2.       Changes in Securities
              None

                                                                              11

<PAGE>

Item 3.       Default upon Senior Securities
              None

Item 4.       Submission of Matters to a Vote of Security Holders
              None

Item 5.       Other Information
              None

Item 6.       Exhibits and Reports on Form 8-K

              a)    Exhibits:  None

              b)    Reports on Form 8-K: None

                                                                           12

<PAGE>

                                   SIGNATURES

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

                       ADVANCED ENGINE TECHNOLOGIES, INC.
-------------------------------------------------------------------------------
                                  (Registrant)

By:                              /s/ Carroll Shelby
          ---------------------------------------------------------------------
                     Carroll Shelby, President and Director

Date:                              October 15, 2001
          ---------------------------------------------------------------------


By:                           /s/ Alexandria Phillips
          ---------------------------------------------------------------------
                   Alexandria Phillips, Treasurer and Director

Date:                              October 15, 2001
          ---------------------------------------------------------------------