**Table        of Contents**

**UNITED        STATES SECURITIES AND EXCHANGE COMMISSION**

**Washington,        D.C. 20549**

**Form 10-QSB/A**

|   |   |                                                                                                                                     |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------|
| þ |   | **QUARTERLY                  REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT                  OF                  1934** |

**FOR        THE QUARTERLY PERIOD ENDED June 30, 2007**

**OR**

|   |   |                                                                                                                                      |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|
| o      |   | **TRANSITION                  REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT                  OF                  1934** |

**Commission        File Number 000-50842**

**Earth        Biofuels, Inc.**

*(Exact        name of small business issuer specified in its charter)*

|                                                                                                |   |                                                                      |
|-----------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------|
| **Delaware**                                                                                        |   | **71-0915825**                                                            |
| *(State                  or other jurisdiction of**incorporation                  or organization)* |   | *(IRS                  Employer**Identification                  Number)* |

**3001        Knox Street, Suite 403**

**Dallas,        TX 75205**

*(Address        of principal executive offices)*

**(214) 389-9800**

*(Issuer’s        telephone number)*

----

**EARTH        BIOFUELS, INC.**

**FORM        10-QSBA QUARTERLY REPORT**

|                                                                   |   |                                                                                                                                                      |   |   |   |   |
|------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|
| **PART                  I FINANCIAL INFORMATION**                 |   |                                                                                                                                                      |   |   |
| Item                  1.                                               |   | Financial                  Statements                                                                                                                     |   |   | 3      |   |
|                                                                   |   | Consolidated                  Balance Sheets at June 30, 2007 and December 31, 2006                  (unaudited)                                |   |   | 3      |   |
|                                                                   |   | Consolidated                  Statements of Operations for the Three and Six Month Periods Ended                  June 30, 2007 and 2006 (unaudited) |   |   | 4      |   |
|                                                                   |   | Consolidated                  Statement of Stockholders’ Equity for the Six Month period ended                  June 30, 2007 (unaudited)      |   |   | 5      |   |
|                                                                   |   | Consolidated                  Statements of Cash Flows for the Six Month Periods Ended June 30,                  2007 and 2006 (unaudited)           |   |   | 6      |   |
|                                                                   |   | Notes                  to Consolidated Financial Statements (unaudited)                                                                                   |   |   | 7      |   |
| Item                  2.                                               |   | Management’s                  Discussion and Analysis of Financial Condition and Results of                  Operations                             |   |   | 18     |   |
| Item                  3.                                               |   | Controls                  and Procedures                                                                                                                  |   |   | 39     |   |
|                                                                   |   |                                                                                                                                                      |   |   |   |   |
| **PART                  II OTHER INFORMATION**                    |   |                                                                                                                                                      |   |   |
| Item                  1.                                               |   | Legal                  Proceedings                                                                                                                        |   |   | 40     |   |
| Item                  2.                                               |   | Equity                  Securities and Use of Proceeds                                                                                                    |   |   | 42     |   |
| Item                  3.                                               |   | Defaults                  upon Senior Securities                                                                                                          |   |   | 50     |   |
| Item                  4.                                               |   | Submission                  of Matters to a Vote of Security Holders                                                                                      |   |   | 50     |   |
| Item                  5.                                               |   | Other                  Information                                                                                                                        |   |   | 50     |   |
| Item                  6.                                               |   | Exhibits                                                                                                                                                  |   |   | 50     |   |
| Signatures                                                             |   |                                                                                                                                                      | 56     |   |
| Certification                  of Chief Executive Officer              |   |                                                                                                                                                      |   |   |
| Certification                  of Chief Financial Officer              |   |                                                                                                                                                      |   |   |
| Certification                  of Chief Executive Officer              |   |                                                                                                                                                      |   |   |
| Certification                  of Chief Financial Officer              |   |                                                                                                                                                      |   |   |
|  Certification                  of CEO Pursuant to Rule 13a-14(a) |
|  Certification                  of CFO Pursuant to Rule 13a-14(a) |
|  Certification                  of CEO Pursuant to Section 906    |
|  Certification                  of CFO Pursuant to Section 906    |

----

**Table        of Contents**

**PART        I FINANCIAL INFORMATION**

**Item 1.**

**EARTH        BIOFUELS, INC.**

**CONSOLIDATED        BALANCE SHEETS**

|                                                                                                                                                                       |                          |       |                                    |       |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------|------------|-----------------------------------------|------------|
|                                                                                                                                                                       | **June                  30,** |       | **December                   31,** |
|                                                                                                                                                                       | **2007**                      |       | **2006**                                |
| **Current                  Assets**                                                                                                                                        |                          | (Restated) |                                    | (Restated) |
| Cash                  and cash equivalents                                                                                                                                 |                          | $          | 534                                     |       | $ | 291 |
| Investments                  in equity securities                                                                                                                          |                          |       | 47                                      |       |   | 285 |
| Trade                  accounts receivable, net of allowances totaling $0 and                  $109                                                                        |                          |       | 3,287                                   |       |   | 3,019 |
| Inventory,                  finished goods                                                                                                                                 |                          |       | 737                                     |       |   | 785 |
| Prepaid                  expenses and other current assets                                                                                                                 |                          |       | 3,863                                   |       |   | 1,471 |
| Advances                  to related parties                                                                                                                               |                          |       | 1,310                                   |       |   |   |
| Notes                  receivable from related parties                                                                                                                     |                          |       | 2,704                                   |       |   | 857 |
|                                                                                                                                                                       |                          |       |
| **Total                  Current Assets**                                                                                                                                  |                          |       | 12,482                                  |       |   | 6,708 |
| Property,                  Plant and equipment, net of accumulated depreciation of $9,416                  and                  $7,854                                     |                          |       | 27,817                                  |       |   | 27,015 |
| Investments                  and advances                                                                                                                                  |                          |       | 13,836                                  |       |   | 40,860 |
| Investment                  — related party                                                                                                                          |                          |       | 30                                      |       |   | 100 |
| Notes                  receivable from related parties                                                                                                                     |                          |       | 14,909                                  |       |   | 5,824 |
| Deferred                  financing fees                                                                                                                                   |                          |       | 2,393                                   |       |   | 2,445 |
|                                                                                                                                                                       |                          |       |                                    |       |   |   |
| Goodwill,                  net of impairment of $10,623 and $315 in 2007 and 2006,                  respectively                                                           |                          |       | 26,986                                  |       |   | 30,032 |
| Prepaid                  and other long term assets                                                                                                                        |                          |       | 373                                     |       |   | 747 |
|                                                                                                                                                                       |                          |       |
|                                                                                                                                                                       |                          |       |                                    |       |   |   |
| **Total                  Assets**                                                                                                                                          |                          | $          | 98,826                                  |       | $ | 113,731 |
|                                                                                                                                                                       |                          |       |
| **Current                  Liabilities**                                                                                                                                   |                          |       |                                    |       |   |   |
|                                                                                                                                                                       |                          |       |                                    |       |   |   |
| Accounts                  payable                                                                                                                                          |                          | $          | 7,914                                   |       | $ | 8,064 |
| Accrued                  interest payable                                                                                                                                  |                          |       | 25,687                                  |       |   | 11,944 |
| Payables                  to related parties                                                                                                                               |                          |       | 4,537                                   |       |   | 6,826 |
| Demand                  Notes                                                                                                                                              |                          |       | 288                                     |       |   | 250 |
| Line                  of Credit                                                                                                                                            |                          |       | 1,574                                   |       |   | 5,679 |
| Short                  term convertible promissory notes, net of discount of $34,220 and                  $39,633                                                          |                          |       | 19,380                                  |       |   | 13,967 |
| Income                  taxes payable                                                                                                                                      |                          |       | 1,818                                   |       |   | 1,818 |
|                                                                                                                                                                       |                          |       |
| **Total                  Current Liabilities**                                                                                                                             |                          |       | 61,198                                  |       |   | 48,548 |
| **Long                  term debt**                                                                                                                                        |                          |       | 24,000                                  |       |   | — |
|                                                                                                                                                                       |                          |       |
| **Total                  liabilities**                                                                                                                                     |                          |       | 85,198                                  |       |   | 48,548 |
|                                                                                                                                                                       |                          |       |
| **Commitments                  and contingencies**                                                                                                                         |                          |       |                                    |       |   |   |
| **Stockholders’                  Equity**                                                                                                                            |                          |       |                                    |       |   |   |
| Preferred                  stock, $.001 par value, 15,000,000 shares authorized, 0 shares                  issued and                  outstanding                         |                          |       | —                                 |       |   | — |
| Common                  stock, $.001 par value, 400,000,000 shares authorized, 240,425,887                  and                  233,047,225 shares issued and outstanding |                          |       | 240                                     |       |   | 233 |
| Additional                  paid-in capital                                                                                                                                |                          |       | 152,603                                 |       |   | 145,555 |
| Other                  comprehensive income                                                                                                                                |                          |       | —                                 |       |   | (570) |
| Treasury                  stock at cost (279,200 shares)                                                                                                                   |                          |       | —                                 |       |   | (463) |
| Accumulated                  deficit                                                                                                                                       |                          |       | (139,215)                               |       |   | (79,572) |
|                                                                                                                                                                       |                          |       |
| Total                  Stockholders’ Equity                                                                                                                          |                          |       | 13,628                                  |       |   | 65,183 |
|                                                                                                                                                                       |                          |       |
|                                                                                                                                                                       |                          |       |                                    |       |   |   |
| **Total                  Liabilities and Stockholders’ Equity**                                                                                                      |                          | $          | 98,826                                  |       | $ | 113,731 |
|                                                                                                                                                                       |                          |       |

----

**Table          of Contents**

**EARTH          BIOFUELS, INC.**

Statements          of Operations

|                                                         |   |                                               |             |     |                                                               |     |     |   |             |     |   |                                                                           |   |     |   |
|--------------------------------------------------------------|--------|----------------------------------------------------|------------------|----------|--------------------------------------------------------------------|----------|----------|--------|------------------|----------|--------|--------------------------------------------------------------------------------|--------|----------|--------|
|                                                         |   | **Three                    Months Ended June 30,** |             |     | **Six                    Months Ended June 30,**                   |     |
|                                                         |   | **2007**                                           |             | **2006** |                                                               |     | **2007** |   |             | **2006** |   |
|                                                         |   |                                               |  (Restated) |     |                           (Restated) |     |     |   |  (Restated) |     |   |                             (Restated) |   |
| **Sales                    revenue**                         |   | $                                                  | 6,742            |     | $                                                                  | 9,006    |     |   | $                | 13,387   |   |                                                                           | $      | 17,623   |   |
| **Cost                    of sales**                         |   |                                               | 5,794            |     |                                                               | 7,849    |     |   |             | 12,086   |   |                                                                           |   | 17,403   |   |
|                                                         |   |                                               |             |     |                                                               |     |     |   |             |     |   |
| **Gross                    profit**                          |   |                                               | 948              |     |                                                               | 1,157    |     |   |             | 1,301    |   |                                                                           |   | 220      |   |
|                                                         |   |                                               |             |     |                                                               |     |     |   |             |     |   |                                                                           |   |     |   |
| Compensation                                                 |   |                                               | 1,407            |     |                                                               | 5,348    |     |   |             | 6,521    |   |                                                                           |   | 11,652   |   |
| Other                    selling, general and administrative |   |                                               | 3,462            |     |                                                               | 5,995    |     |   |             | 6,818    |   |                                                                           |   | 8,590    |   |
| Depreciation                    and amortization             |   |                                               | 1,243            |     |                                                               | 521      |     |   |             | 2,195    |   |                                                                           |   | 754      |   |
|                                                         |   |                                               |             |     |                                                               |     |     |   |             |     |   |
| **Net                    loss from operations**              |   |                                               | (5,164)          |     |                                                               | (10,707) |     |   |             | (14,233) |   |                                                                           |   | (20,776) |   |
|                                                         |   |                                               |             |     |                                                               |     |     |   |             |     |   |                                                                           |   |     |   |
| **Other                    income (expense)**                |   |                                               |             |     |                                                               |     |     |   |             |     |   |                                                                           |   |     |   |
| Interest                    income                           |   |                                               | 208              |     |                                                               | 9        |     |   |             | 205      |   |                                                                           |   | 33       |   |
| Loss                    on sale of fixed assets              |   |                                               | —          |     |                                                               | —  |     |   |             | (121)    |   |                                                                           |   | —  |   |
| Interest                    expense                          |   |                                               | (8,312)          |     |                                                               | (3,065)  |     |   |             | (24,435) |   |                                                                           |   | (3,140)  |   |
| Loss                    on equity investments                |   |                                               | (8,864)          |     |                                                               | —  |     |   |             | (8,864)  |   |                                                                           |   | —  |   |
| Impairment                    losses                         |   |                                               | (10,623)         |     |                                                               | —  |     |   |             | (10,938) |   |                                                                           |   | —  |   |
| Loss                    on marketable securities             |   |                                               | (852)            |     |                                                               | —  |     |   |             | (852)    |   |                                                                           |   | —  |   |
| Loss                    on Derivatives                       |   |                                               | —          |     |                                                               | (401)    |     |   |             | —  |   |                                                                           |   | (401)    |   |
| Other                    expenses                            |   |                                               | (508)            |     |                                                               | 23       |     |   |             | (405)    |   |                                                                           |   | 43       |   |
|                                                         |   |                                               |             |     |                                                               |     |     |   |             |     |   |
| **Total                    other income (expense)**          |   |                                               | (28,951)         |     |                                                               | (3,434)  |     |   |             | (45,410) |   |                                                                           |   | (3,465)  |   |
|                                                         |   |                                               |             |     |                                                               |     |     |   |             |     |   |
| **Net                    loss**                              |   | $                                                  | (34,115)         |     | $                                                                  | (14,141) |     |   | $                | (59,643) |   |                                                                           | $      | (24,241) |   |
|                                                         |   |                                               |             |     |                                                               |     |     |   |             |     |   |
|                                                         |   |                                               |             |     |                                                               |     |     |   |             |     |   |                                                                           |   |     |   |
| **Net                    loss per common share**             |   |                                               |             |     |                                                               |     |     |   |             |     |   |                                                                           |   |     |   |
|                                                         |   |                                               |             |     |                                                               |     |     |   |             |     |   |                                                                           |   |     |   |
| Basic                    and diluted net loss                |   | $                                                  | (0.17)           |     | $                                                                  | (0.07)   |     |   | $                | (0.29)   |   |                                                                           | $      | (0.12)   |   |
|                                                         |   |                                               |             |     |                                                               |     |     |   |             |     |   |                                                                           |   |     |   |
| Weighted                    average shares                   |   |                                               | 204,160          |     |                                                               | 196,649  |     |   |             | 204,160  |   |                                                                           |   | 196,649  |   |

----

**Table        of Contents**

**EARTH        BIOFUELS, INC.**

**CONSOLIDATED        STATEMENTS OF STOCKHOLDERS’EQUITY**

**For        the Six Months Period Ended June 30, 2007**

|                                                                                                                                    |   |       |    |                              |   |                            |           |                               |      |         |   |            |   |       |    |   |   |      |   |   |     |   |
|-----------------------------------------------------------------------------------------------------------------------------------------|--------|------------|---------|-----------------------------------|--------|---------------------------------|----------------|------------------------------------|-----------|--------------|--------|-----------------|--------|------------|---------|--------|--------|-----------|--------|--------|----------|--------|
|                                                                                                                                    |   | **Common** |    |                              |   |                            | **Additional** |                               | **Other** |         |   |            |   |       |    |   |
|                                                                                                                                    |   | **Stock**  |    | **Common**                        |   | **Paid**                        |           | **Comprehensive**                  |      | **Treasury** |   | **Accumulated** |   |       |    |
|                                                                                                                                    |   | **Shares** |    | **Stock                  at Par** |   | **in                  Capital** |           | **Income                  (Loss)** |      | **Stock**    |   | **Deficit**     |   | **Totals** |    |
| **Balance                  12/31/06 (restated)**                                                                                        |   |       | 233,047 |                              | $      | 233                             |           | $                                  | 145,555   |         | $      | (570)           |   | $          | (463)   |   | $      | (79,572)  |   | $      | 65,183   |   |
| Shares                  issued for cash                                                                                                 |   |       | 3,068   |                              |   | 3                               |           |                               | 1,522     |         |   | —         |   |       | — |   |   | —   |   |   | 1,525    |   |
| Shares                  issued for services                                                                                             |   |       | 6,281   |                              |   | 6                               |           |                               | 3,874     |         |   |            |   |       | — |   |   | —   |   |   | 3,880    |   |
| Shares                  issued for exercise of warrants                                                                                 |   |       | 250     |                              |   | 1                               |           |                               | —   |         |   | —         |   |       | — |   |   | —   |   |   | 1        |   |
| Shares                  issued for related party payables                                                                               |   |       | 1,000   |                              |   | 1                               |           |                               | 510       |         |   | —         |   |       | — |   |   | —   |   |   | 511      |   |
| Unrealized                  loss on marketable securities                                                                               |   |       | — |                              |   | —                         |           |                               | —   |         |   | (127)           |   |       | — |   |   | —   |   |   | (127)    |   |
|                                                                                                                                    |   |       |    |                              |   |                            |           |                               |      |         |   |            |   |       |    |   |   |      |   |   |     |   |
| Realized                  losses                                                                                                        |   |       | — |                              |   | —                         |           |                               | —   |         |   | 697             |   |       | — |   |   | —   |   |   | 697      |   |
|                                                                                                                                    |   |       |    |                              |   |                            |           |                               |      |         |   |            |   |       |    |   |   |      |   |   |     |   |
| Treasury                  Stock                                                                                                         |   |       | 279     |                              |   | —                         |           |                               | —   |         |   | —         |   |       | 463     |   |   | —   |   |   | 463      |   |
|                                                                                                                                    |   |       |    |                              |   |                            |           |                               |      |         |   |            |   |       |    |   |   |      |   |   |     |   |
| Shares                  issued to escrow                                                                                                |   |       | 2,500   |                              |   | 2                               |           |                               | —   |         |   | —         |   |       | — |   |   | —   |   |   | 2        |   |
| Forfeiture                  of shares                                                                                                   |   |       | (6,000) |                              |   | (6)                             |           |                               | —   |         |   | —         |   |       | — |   |   | —   |   |   | (6)      |   |
| Net                  Changes in discounts on convertible debt and long term debt issued                  with                  warrants |   |       | — |                              |   | —                         |           |                               | 1,142     |         |   | —         |   |       | — |   |   | —   |   |   | 1,142    |   |
| Net                  loss                                                                                                               |   |       | — |                              |   | —                         |           |                               | —   |         |   | —         |   |       | — |   |   | (59,643)  |   |   | (59,643) |   |
|                                                                                                                                    |   |       |    |                              |   |                            |           |                               |      |         |   |            |   |       |    |
| **Balance                  June 30, 2007**                                                                                         |   |       | 240,426 |                              | $      | 240                             |           | $                                  | 152,603   |         | $      | —         |   | $          |    |   | $      | (139,215) |   | $      | 13,628   |   |
|                                                                                                                                    |   |       |    |                              |   |                            |           |                               |      |         |   |            |   |       |    |

----

**Table        of Contents**

**EARTH        BIOFUELS, INC**

**CONSOLIDATED        STATEMENTS OF CASH FLOWS**

**For        the Six Month Periods Ended June 30, 2007 and 2006**

|                                                                 |                                           |       |       |   |   |   |
|----------------------------------------------------------------------|------------------------------------------------|------------|------------|--------|--------|--------|
|                                                                 | **Six                  Months Ended June 30,** |       |
|                                                                 | **2007**                                       | **2006**   |       |
|                                                                 |                                           | (Restated) | (Restated) |   |
| **Cash                  Flows from Operating Activities:**           |                                           |       |       |   |
| Net                  Loss                                            |                                           | **$**      | (59,643)   |   |   | $      | (24,239) |   |
| Loss                  on sales of fixed assets                       |                                           |       | 121        |   |   |   | — |   |
| Losses                  on marketable securities                     |                                           |       | 697        |   |   |   | — |   |
| Depreciation                                                         |                                           |       | 1,635      |   |   |   | 772 |   |
| Amortization                  of debt issuance costs                 |                                           |       | 561        |   |   |   | — |   |
| Impairment                  of investments                           |                                           |       | 8,864      |   |   |   | — |   |
| Goodwill                  impairment                                 |                                           |       | 10,938     |   |   |   | — |   |
| Loss                  on derivatives                                 |                                           |       | —    |   |   |   | 401 |   |
| Share-based                  compensation expense                    |                                           |       | 3,875      |   |   |   | 10,063 |   |
| Debt                  discount amortization                          |                                           |       | 5,410      |   |   |   | 2,550 |   |
| Changes                  in assets and liabilities:                  |                                           |       |       |   |   |   |   |   |
| Decrease                  (increase) in:                        |                                           |       |       |   |   |   |   |   |
| Trade                  accounts receivable                           |                                           |       | (268)      |   |   |   | (2,435) |   |
| Notes                  receivable                                    |                                           |       | —    |   |   |   | (100) |   |
| Inventory                                                            |                                           |       | 45         |   |   |   | (6) |   |
| Prepaid                  expenses & other current assets         |                                           |       | (3,224)    |   |   |   | 970 |   |
| Advances                  to related parties                         |                                           |       | (1,310)    |   |   |   | (2,343) |   |
| Notes                  receivable from related party                 |                                           |       | (1,847)    |   |   |   | 476 |   |
| Increase                  (decrease) in:                        |                                           |       |       |   |   |   |   |   |
| Accounts                  payable and accrued expenses               |                                           |       | (149)      |   |   |   | 91 |   |
| Accrued                  interest payable                            |                                           |       | 13,746     |   |   |   | — |   |
|                                                                 |                                           |       |       |
| Net                  cash provided by (used in) operating activities |                                           |       | (20,555)   |   |   |   | (13,800) |   |
|                                                                 |                                           |       |       |   |   |   |   |   |
| **Cash                  Flows From Investing Activities:**           |                                           |       |       |   |   |   |   |   |
| Cash                  paid for investment                            |                                           |       | (91)       |   |   |   | (1,175) |   |
| Advances                  on payments to related parties             |                                           |       | (1,779)    |   |   |   | — |   |
| Cash                  paid for advances on investments               |                                           |       | —    |   |   |   | (12,695) |   |
| Repayments                  from investments and advances            |                                           |       | 2,355      |   |   |   | — |   |
| Cash                  paid for purchases of fixed assets             |                                           |       | (2,558)    |   |   |   | (3,480) |   |
|                                                                 |                                           |       |       |
| Net                  cash used in investing activities               |                                           |       | (2,073)    |   |   |   | (17,350) |   |
|                                                                 |                                           |       |       |   |   |   |   |   |
| **Cash                  Flows From Financing Activities:**           |                                           |       |       |   |   |   |   |   |
| Proceeds                  from issuance of common stock              |                                           |       | 1,534      |   |   |   | 6,743 |   |
| Proceeds                  from long term debt and line of credit     |                                           |       | 30,036     |   |   |   | 20,750 |   |
| Repayments                  of long term debt and line of credit     |                                           |       | (8,653)    |   |   |   | — |   |
| Proceeds                  from sale of treasury stock                |                                           |       | 463        |   |   |   | — |   |
| Cash                  paid for debt issuance cost                    |                                           |       | (509)      |   |   |   | (975) |   |
|                                                                 |                                           |       |       |
| Net                  cash provided by financing activities           |                                           |       | 22,871     |   |   |   | 26,518 |   |
|                                                                 |                                           |       |       |   |   |   |   |   |
| Net                  increase (decrease) in cash                |                                           |       | 243        |   |   |   | (4,632) |   |
|                                                                 |                                           |       |       |   |   |   |   |   |
| Cash                  and cash equivalents                           |                                           |       |       |   |   |   |   |   |
| Beginning                  of period                                 |                                           |       | 291        |   |   |   | 5,070 |   |
|                                                                 |                                           |       |       |
| End                  of period                                       |                                           | $          | 534        |   |   | $      | 437 |   |
|                                                                 |                                           |       |       |
|                                                                 |                                           |       |       |   |   |   |   |   |
| **Supplemental                  Cash Flow Disclosures:**             |                                           |       |       |   |   |   |   |   |
| Cash                  paid for income taxes                          |                                           | $          | —    |   |   | $      | — |   |
| Cash                  paid for interest                              |                                           |       | 2,904      |   |   |   | 339 |   |

----

**Table        of Contents**

**RESTATEMENT          SUMMARY**

**NOTE        1 — BASIS OF PRESENTATION**

*Tax        Credits *

*Marketable        Securities *

**NOTE        2 — GOING CONCERN**

----

**Table        of Contents**

**NOTE        3 — RESTATEMENTS**

**NOTE        4 — INVESTMENTS, ADVANCES AND NOTES RECEIVABLE FROM RELATED        PARTIES**

----

**Table        of Contents**

|                                                                                                                                                                                                                                                                        |   |                           |   |                                    |    |                                    |   |                                    |    |   |   |   |    |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|--------|-----------------------------------------|---------|-----------------------------------------|--------|-----------------------------------------|---------|--------|--------|--------|---------|--------|
|                                                                                                                                                                                                                                                                        |   | **Method                  of** |   | **Investment**                          |    | **Advances**                            |   | **Total**                               |
|                                           **Description** |   | **Accounting**                 |   | **($                  in 000’s)** |    | **($                  in 000’s)** |   | **($                  in 000’s)** |
| **Investments**                                                                                                                                                                                                                                                             |   |                           |   |                                    |    |                                    |   |                                    |    |   |   |   |    |   |
| Truckers                  Corner                                                                                                                                                                                                                                            |   | Equity                         |   | $                                       | 1,120   |                                    |   | $                                       | 4,530   |   |   | $      | 5,650   |   |
| American                  Earth                                                                                                                                                                                                                                             |   | Equity                         |   |                                    | — |                                    |   |                                    | — |   |   |   | — |   |
|                                                                                                                                                                                                                                                                        |   |                           |   |                                    |    |                                    |   |                                    |    |   |   |   |    |   |
| **Letters                  of Intent**                                                                                                                                                                                                                                      |   |                           |   |                                    |    |                                    |   |                                    |    |   |   |   |    |   |
| Systems                  Management Solutions, Inc.                                                                                                                                                                                                                         |   | Cost                           |   |                                    | — |                                    |   |                                    | — |   |   |   | — |   |
| Vertex                  Processing, LP                                                                                                                                                                                                                                      |   | Cost                           |   |                                    | — |                                    |   |                                    | — |   |   |   | — |   |
| Biodiesel                  Investment Group and Bunge North America                                                                                                                                                                                                         |   | Cost                           |   |                                    | 4,976   |                                    |   |                                    | — |   |   |   | 4,976   |   |
| Earth                  Ethanol and Liquafaction Corporation                                                                                                                                                                                                                 |   | Cost                           |   |                                    | — |                                    |   |                                    | — |   |   |   | — |   |
| Earth                  Ethanol and HPS Development, L.L.C.                                                                                                                                                                                                                  |   | Cost                           |   |                                    | — |                                    |   |                                    | — |   |   |   | — |   |
| Cordele                  Industrial                                                                                                                                                                                                                                         |   | Cost                           |   |                                    | — |                                    |   |                                    | 10      |   |   |   | 10      |   |
| Dineh-bi-Keya                                                                                                                                                                                                                                                               |   | Cost                           |   |                                    | — |                                    |   |                                    | 50      |   |   |   | 50      |   |
| DFI-Albemarle                  Bio-Refinery, Inc.,                                                                                                                                                                                                                          |   | Cost                           |   |                                    | — |                                    |   |                                    | 3,150   |   |   |   | 3,150   |   |
| **Total**                                                                                                                                                                                                                                                                   |   |                           |   | $                                       | 6,096   |                                    |   | $                                       | 7,740   |   |   | $      | 13,836  |   |

**Investments**

***Truckers        Corner***

***American        Earth Fuels Company***

***Advances        on Letters of Intent***

***Systems        Management Solutions, Inc. (“SMS***

***Vertex        Processing, LP***

----

**Table        of Contents**

***Biodiesel        Investment Group and Bunge North America***

***Earth        Ethanol and Liquafaction Corporatoin,***

***Earth        Ethanol and HPS Development, L.L.C.***

----

**Table        of Contents**

***Cordele        Industrial – Investment in a***

***Dineh-bi-Keya***

***DFI-Albemarle        Bio-Refinery, Inc.***

***Other        investments -***

**Notes        receivable from related parties**
**—**

|                                                             |   |                                    |   |   |
|------------------------------------------------------------------|--------|-----------------------------------------|--------|--------|
|                                                             |   | **2007**                                |   |
| **Description**                                                  |   | **($                  in 000’s)** |   |
| Truckers                  Corner                                 |   | $                                       | 359    |   |
| DFI                                                              |   |                                    | 2,172  |   |
| HPS                                                              |   |                                    | 14,377 |   |
| Apollo                  affiliates                               |   |                                    | 8      |   |
| AIRO                                                             |   |                                    | 697    |   |
|                                                             |   |                                    |   |
| Total                                                            |   |                                    | 17,613 |   |
| Less                  current portion                            |   |                                    | (2,704 | )      |
|                                                             |   |                                    |   |
| Long                  term notes receivable from related parties |   | $                                       | 14,909 |   |
|                                                             |   |                                    |   |

**Advances        to related parties —**

----

**Table        of Contents**

**Investment        in related party –**

**NOTE        6 — INTANGIBLE ASSETS**

----

**Table        of Contents**

**NOTE        7 — DEMAND NOTES —**

**NOTE        8 — LINE OF CREDIT**

**NOTE        9 — LONG TERM DEBT**

|                                                       |   |   |   |   |
|------------------------------------------------------------|--------|--------|--------|--------|
| Term                  debt facilities                      |   | $      | 24,000 |   |
| Unamortized                  discounts                     |   |   | 0      |   |
|                                                       |   |   |   |
|                                                       |   |   | 24,000 |   |
| Less                  current installments                 |   |   | 0      |   |
|                                                       |   |   |   |
| Long-term                  debt, less current installments |   | $      | 24,000 |   |
|                                                       |   |   |   |

----

**Table        of Contents**

|                                   |   |                                       |   |   |
|----------------------------------------|--------|--------------------------------------------|--------|--------|
|                                   |   | **Debt                  Outstanding**      |   |
|                                   |   | **at                  June 30, 2007** |   |
| 1 year                  or less   |   | $                                          | 0      |   |
| 2 years                           |   |                                       | 0      |   |
| 3 years                           |   |                                       | 24,000 |   |
| 4 years                           |   |                                       | 0      |   |
| 5 years                           |   |                                       | 0      |   |
| Thereafter                             |   |                                       | 0      |   |
|                                   |   |                                       |   |
| Total                  future payments |   | $                                          | 24,000 |   |
|                                   |   |                                       |   |

**NOTE        10 — STOCKHOLDERS’ EQUITY**

***Warrants        —***

|                                                                                                                                                  |   |                              |   |                                |   |         |   |     |       |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|--------|-------------------------------------|--------|--------------|--------|----------|------------|--------|
|                                                                                                                                                  |   | **Remaining**                     |   |                                |   |         |   | **2006** |
| **Description**                                                                                                                                       |   | **Life**                          |   | **Exercise                  Price** |   | **Warrants** |
| May 4,                  2006 convertible debt-(debt repaid), warrants issued to                  investor                                        |   | 8–                  9 years |   | $                                   | 2.00   |         |   |     | 920,810    |   |
| May 26,                  2006 convertible debt-(debt repaid), warrants issued to investor                  and                  placement agent  |   | 8–                  9 years |   | $                                   | 3.84   |         |   |     | 768,750    |   |
| June 7,                  2006 convertible debt-(debt repaid), warrants issued to investor                  and                  placement agent  |   | 8–                  9 years |   | $                                   | 2.93   |         |   |     | 1,545,000  |   |
| July 10,                  2006 convertible debt (debt repaid), warrants issued to investor                  and                  placement agent |   | 9-10                  years       |   | $                                   | 2.50   |         |   |     | 1,515,000  |   |
| July 21,2006                  warrants issued for consulting fees                                                                                |   | 9-10                  years       |   | $                                   | .25    |         |   |     | 4,000,000  |   |
| July 24,                  2006 convertible debt, warrants issued to investors                                                                    |   | 9-10                  years       |   | $                                   | 2.90   |         |   |     | 9,051,725  |   |
| August 11,                  2006 convertible debt, warrants issued to investors and placement                  agent                             |   | 9-10                  years       |   | $                                   | 2.90   |         |   |     | 189,655    |   |
| January 19,                  2007, promissory notes, warrants issued to note holders                                                             |   | 9-10                  years       |   | $                                   | .01    |         |   |     | 375,000    |   |
| February 28,                  2007, long term debt, warrants issued to note holders                                                              |   | 9-10                  years       |   | $                                   | .36    |         |   |     | 13,549,816 |   |
| March 23,                  2007, long term debt, warrants issued to note holders                                                                 |   | 9-10                  years       |   | $                                   | .30    |         |   |     | 6,774,908  |   |

----

**Table        of Contents**

|                                                                        |   |                                  |        |   |                                |   |      |                                |                                  |   |    |   |
|-----------------------------------------------------------------------------|--------|---------------------------------------|-------------|--------|-------------------------------------|--------|-----------|-------------------------------------|---------------------------------------|--------|---------|--------|
|                                                                        |   | **Number                  of Shares** |        |   |                                |   |      |                                | **Weighted                  Average** |   |
|                                                                        |   | **Under                  Warrant**    |        |   | **Exercise                  Price** |   |      | **Exercise                  Price** |                                  |
| Warrants                  outstanding at December 31, 2006             |   |                                  | 17,990,940  |   |                                | $      | .25-3.84  |                                |                                  | $      | 1.02    |   |
| Issued                                                                      |   |                                  | 20,699,724  |   |                                | $      | .01-.36   |                                |                                  | $      | .25     |   |
| Exercised                                                                   |   |                                  | (250,000    | )      |                                | $      | .01       |                                |                                  | $      | (.01    | )      |
| Forfeited                                                                   |   |                                  | (20,324,724 | )      |                                | $      | .30-.36   |                                |                                  | $      | (.25    | )      |
| Expired                                                                     |   |                                  | —     |   |                                |   | —   |                                |                                  |   | — |   |
|                                                                        |   |                                  |        |   |                                |   |      |                                |                                  |
| Warrants                  outstanding and exercisable at June 30, 2007 |   |                                  | 18,115,940  |   |                                | $      | .01-$3.84 |                                |                                  | $      | 1.01    |   |
|                                                                        |   |                                  |        |   |                                |   |      |                                |                                  |

***Share-based        Compensation —***

**NOTE        11 — RELATED PARTY TRANSACTIONS**

***Advances***

|                                                  |   |                                    |   |   |
|-------------------------------------------------------|--------|-----------------------------------------|--------|--------|
|                                                  |   | **2007**                                |   |
| **Description**                                       |   | **($                  in 000’s)** |   |
| Apollo                  International Resources, Inc. |   | $                                       | 3,628  |   |
| LNG                  affiliates                       |   |                                    | 909    |   |
|                                                  |   |                                    |   |
| Total                                                 |   | $                                       | 4,537  |   |
|                                                  |   |                                    |   |

----

**Table        of Contents**

**NOTE        12 — COMMITMENTS AND CONTINGENCIES**

***Registration        Payments***

**NOTE        13 — SEGMENT INFORMATION**

|                                                                  |   |                                    |   |   |                                    |   |    |                                    |   |   |    |   |
|-----------------------------------------------------------------------|--------|-----------------------------------------|--------|--------|-----------------------------------------|--------|---------|-----------------------------------------|--------|--------|---------|--------|
|                                                                  |   | **LNG**                                 |   |   | **Earth                  Biofuels**     |   |    | **Consolidated**                        |   |
|                                                                  |   | **($                  in 000’s)** |   |   | **($                  in 000’s)** |   |    | **($                  in 000’s)** |   |
| **Six                  months ended June 30, 2007**              |   |                                    |   |   |                                    |   |    |                                    |   |   |    |   |
| Revenue                                                               |   | $                                       | 12,512 |   |                                    |   | 875     |                                    |   |   | 13,387  |   |
| Income                  (Loss) from operations                        |   | $                                       | 1,412  |   |                                    |   | (111    | )                                       |   |   | 1,301   |   |
| Interest                  Expense                                     |   | $                                       | (1,401 | )      |                                    |   | (23,034 | )                                       |   |   | (24,435 | )      |
| Net                  Loss for the six months ended June 30, 2007 |   | $                                       | (1,890 | )      |                                    |   | (57,753 | )                                       |   |   | (59,643 | )      |
| Property,                  plant and equipment, net                   |   | $                                       | 10,974 |   |                                    |   | 16,843  |                                    |   |   | 27,817  |   |
| Total                  Assets                                         |   | $                                       | 45,149 |   |                                    |   | 98,320  |                                    |   |   | 98,826  |   |
| Current                  Liabilities                                  |   | $                                       | 506    |   |                                    |   | 60,692  |                                    |   |   | 61,198  |   |

----

**Table        of Contents**

**NOTE        14 — SUBSEQUENT EVENTS**

----

**Table        of Contents**

**ITEM        2.**** *****Management’s Discussion and        Analysis.***

**Overview**

*Continuing        Losses. *

----

**Table        of Contents**

**Results        of Operations**

**Comparison        of Six Months Ended June 30, 2007**

**To        Six Months Ended June 30, 2006**

|                                                       |   |                                  |   |     |   |   |   |   |
|------------------------------------------------------------|--------|---------------------------------------|--------|----------|--------|--------|--------|--------|
|                                                       |   | **Six                  Months Ended** |
|                                                       |   | **June                  30,**         |
|                                                       |   | **2007**                              |   | **2006** |
| Revenues:                                                  |   |                                  |   |     |   |   |   |   |
| Sales                  revenue                             |   |                                  | 100    | %        |   |   | 100    | %      |
|                                                       |   |                                  |   |     |   |   |
| Cost                  of sales                             |   |                                  | 90     | %        |   |   | 99     | %      |
|                                                       |   |                                  |   |     |   |   |
| Gross                  profit                              |   |                                  | 10     | %        |   |   | 1      | %      |
| Compensation                                               |   |                                  | 49     | %        |   |   | 66     | %      |
| Other                  selling, general and administrative |   |                                  | 51     | %        |   |   | 49     | %      |
| Depreciation                  and amortization             |   |                                  | 16     | %        |   |   | 4      | %      |
|                                                       |   |                                  |   |     |   |   |
| Net                  loss from operations                  |   |                                  | (106)  | %        |   |   | (118)  | %      |
| Interest                  expense                          |   |                                  | 183    | %        |   |   | 18     | %      |
| Impairments                                                |   |                                  | 66     | %        |   |   | 0      | %      |
| Net                  (loss)                                |   |                                  | (450)  | %        |   |   | (138)  | %      |
|                                                       |   |                                  |   |     |   |   |

*Revenue.        *

----

**Table        of Contents**

*Cost        of Sales. *

*Compensation.        *
*“Share-Based Payment” *

*Other        Selling, General and Administrative Expenses. *

*Depreciation        and Amortization. *

*Interest        Expense. *

**Comparison        of Three Months Ended June 30, 2007**

**To        Three Months Ended June 30, 2006**

|                                                       |   |                                    |   |     |   |   |   |   |
|------------------------------------------------------------|--------|-----------------------------------------|--------|----------|--------|--------|--------|--------|
|                                                       |   | **Three                  Months Ended** |
|                                                       |   | **June                  30,**           |
|                                                       |   | **2007**                                |   | **2006** |
| Revenues:                                                  |   |                                    |   |     |   |   |   |   |
| Sales                  revenue                             |   |                                    | 100    | %        |   |   | 100    | %      |
|                                                       |   |                                    |   |     |   |   |
| Cost                  of sales                             |   |                                    | 86     | %        |   |   | 87     | %      |
|                                                       |   |                                    |   |     |   |   |
| Gross                  profit                              |   |                                    | 14     | %        |   |   | 13     | %      |
| Compensation                                               |   |                                    | 21     | %        |   |   | 59     | %      |
| Other                  selling, general and administrative |   |                                    | 51     | %        |   |   | 67     | %      |
| Depreciation                  and amortization             |   |                                    | 18     | %        |   |   | 6      | %      |
|                                                       |   |                                    |   |     |   |   |
| Net                  loss from operations                  |   |                                    | (77    | )%       |   |   | (119   | )%     |
| Interest                  expense                          |   |                                    | 123    | %        |   |   | 34     | %      |
| Impairments                                                |   |                                    | 131    | %        |   |   | 0      | %      |
| Net                  (loss)                                |   |                                    | (514   | )%       |   |   | (157   | )%     |
|                                                       |   |                                    |   |     |   |   |

*Revenue.        *

----

**Table        of Contents**

*Cost        of Sales. *

*Compensation.        *
*“Share-Based Payment” *

*Other        Selling, General and Administrative Expenses. *

*Depreciation        and Amortization. *

*Interest        Expense. *

**Liquidity        and Capital Resources**

*Overview.        *

----

**Table        of Contents**

***Current        and Future Financing Needs —***

----

**Table        of Contents**

----

**Table        of Contents**

**Table        of Contents**

----

**Table        of Contents**

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                                                                                          |   |                                                                     |   |           |    |         |    |           |    |      |    |            |    |            |    |        |    |                             |    |                                                                         |   |                                                                |   |                                                                                   |   |                                                                                                                                           |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------|--------|----------------|---------|--------------|---------|----------------|---------|-----------|---------|-----------------|---------|-----------------|---------|-------------|---------|----------------------------------|---------|------------------------------------------------------------------------------|--------|---------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                                                                                          |   | **%**                                                                    |   | **Investment** |    |         |    |           |    | **Note**  |    |            |    |            |    | **Future**  |    | **Future                  Cash** |    | **Sources                  of**                                              |   |
| **Name**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | **Industry**                                                                                                                  |   | **Ownership**                                                            |   | **Amount**     |    | **Advances** |    | **Receivable** |    | **Total** |    | **Obligations** |    | **Requirement** |    | **Capital** |    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | **(As                  of June 30, 2007 $ in 000’s)**                                                                   |   |
| **Investments:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                                                                                          |   |                                                                     |   |           |    |         |    |           |    |      |    |            |    |            |    |        |    |                             |    |                                                                         |   |                                                                |   |                                                                                   |   |                                                                                                                                           |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                                                                                          |   |                                                                     |   |           |    |         |    |           |    |      |    |            |    |            |    |        |    |                             |    |                                                                         |   |                                                                |   |                                                                                   |   |                                                                                                                                           |   |
| Truckers                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | Retail                  center                                                                                                |   |                                                                     | 50     | %              |    |         | 1,120   |           |    | $         | 4,530   |            |    | $               | 359     |        |    | $                                | 6,009   |                                                                         |   | Construction                                                        |   | Estimated                  $3m                                                         |   | Seeking                  newinvestors/lenders                                                                                                  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                                                                                          |   |                                                                     |   |           |    |         |    |           |    |      |    |            |    |            |    |        |    |                             |    |                                                                         |   |                                                                |   |                                                                                   |   |                                                                                                                                           |   |
| Corner-costsHillsboro,                  Texas                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                          |   | (Also                  partiallyowned                  by Willie Nelson) |   |           |    |         |    |           |    |      |    |            |    |            |    |        |    |                             |    |                                                                         |   |                                                                |   |                                                                                   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                                                                                          |   |                                                                     |   |           |    |         |    |           |    |      |    |            |    |            |    |        |    |                             |    |                                                                         |   |                                                                |   |                                                                                   |   |                                                                                                                                           |   |
| SMS-San                  Antonio, TX                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | Biodiesal                  - Letter of Intent (LOI)                                                                           |   |                                                                     |   |           |    |         | — |           |    |      | — |            |    |            | — |        |    |                             | — |                                                                         |   | Currently                  in default; total investment impaired    |   |                                                                                   |   |                                                                                                                                           |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                                                                                          |   |                                                                     |   |           |    |         |    |           |    |      |    |            |    |            |    |        |    |                             |    |                                                                         |   |                                                                |   |                                                                                   |   |                                                                                                                                           |   |
| Vertex                  Houston,Texas                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | Biodiesal-Letter                  of Intent *****(1,600k shares issued valued At $4,320k or                  $2.70 per share) |   |                                                                     |   |           |    |         | — |           |    |      | — |            |    |            | — |        |    |                             | — |                                                                         |   | Currently                  in litigation; total investment impaired |   |                                                                                   |   |                                                                                                                                           |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                                                                                          |   |                                                                     |   |           |    |         |    |           |    |      |    |            |    |            |    |        |    |                             |    |                                                                         |   |                                                                |   |                                                                                   |   |                                                                                                                                           |   |
| BiodieselInvestment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | Biodiesal                  plant                                                                                              |   |                                                                     | 10     | %              |    |         | 4,976   |           |    |      | — |            |    |            | — |        |    |                             | 4,976   |                                                                         |   | None                                                                |   | None                                                                                   |   | Subscriptionagreements                  withinvestors                  totalingGroup-Illinois                  $39mon                  project |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                                                                                          |   |                                                                     |   |           |    |         |    |           |    |      |    |            |    |            |    |        |    |                             |    |                                                                         |   |                                                                |   |                                                                                   |   |                                                                                                                                           |   |
| MosesLake-Washington(Liquifaction                  LP)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | Ethanol                  plant                                                                                                |   | 80%(amended                  to ~15%)                                    |   |           | — |         |    |           | — |      |    |            | — |            |    |        | — |                             |    | Construction                  costs Subject to 5 day notice termination |   | $9.5m                                                               |   | Additional                  investors to contribute to total estimated project of $58m |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                                                                                          |   |                                                                     |   |           |    |         |    |           |    |      |    |            |    |            |    |        |    |                             |    |                                                                         |   |                                                                |   |                                                                                   |   |                                                                                                                                           |   |
| HPS-                  New Orleans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | Ethanol                  Plant-LOI                                                                                            |   |                                                                     |   |           |    |         | — |           |    |      | 14,377  |            |    |            | — |        |    |                             | 14,377  |                                                                         |   | None                                                                |   | None                                                                                   |   | Litigation                  settled for $5m Non-compete and $22m Note Receivable                                                               |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                                                                                          |   |                                                                     |   |           |    |         |    |           |    |      |    |            |    |            |    |        |    |                             |    |                                                                         |   |                                                                |   |                                                                                   |   |                                                                                                                                           |   |
| DFI-North                  Carolina                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | Ethanol                  plant-LOI                                                                                            |   |                                                                     |   |           |    |         | — |           |    |      | 3,150   |            |    |            | 2,172   |        |    |                             | 5,322   |                                                                         |   | None                                                                |   | None                                                                                   |   | Additional                  investors to contribute to total project of $25m                                                                   |   |
| **(Note:                  All investments are recorded using the cost or equity method of                  accounting. There were no current operations on any investments,                  and thus                  there are no related equity investment entries to record profits                  and                  losses. All future sources of capital are to be from other investment                  groups unrelated to Earth. As a result at this time Earth is not                  required                  to put in any additional funding until other equity partners have                  been                  obtained. As other investors do come on board Earth will finalize                  letters                  of intent and record any liabilities as required by the                  agreements.)** |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| **Advances-Related                  Parties:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                          |   |                                                                     |   |           |    |         |    |           |    |      |    |            |    |            |    |        |    |                             |    |                                                                         |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                                                                                          |   |                                                                     |   |           |    |         |    |           |    |      |    |            |    |            |    |        |    |                             |    |                                                                         |   |                                                                |   |                                                                                   |   |                                                                                                                                           |   |
| Blue                  Wireless                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | Technology                                                                                                                    |   | 10%(Earth                  CEO is also on BOD of Blue)                   |   |           | 30      |         |    |           | — |      |    |            | — |            |    |        | 30      |                             |    | None                                                                         |   | Provider                  of IT services                            |   | Operations                                                                             |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                                                                                          |   |                                                                     |   |           |    |         |    |           |    |      |    |            |    |            |    |        |    |                             |    |                                                                         |   |                                                                |   |                                                                                   |   |                                                                                                                                           |   |
| Airo                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | Technology                                                                                                                    |   | 0%(Note                  assigned From Blue Wireless)                    |   |           | — |         |    |           | — |      |    |            | 697     |            |    |        | 69      |                             |    | 7                  None                                                      |   | None                                                                |   | Note                  receivable                                                       |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                                                                                          |   |                                                                     |   |           |    |         |    |           |    |      |    |            |    |            |    |        |    |                             |    |                                                                         |   |                                                                |   |                                                                                   |   |                                                                                                                                           |   |
| **Other                  Properties:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                                                                                                          |   |                                                                     |   |           |    |         |    |           |    |      |    |            |    |            |    |        |    |                             |    |                                                                         |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                                                                                          |   |                                                                     |   |           |    |         |    |           |    |      |    |            |    |            |    |        |    |                             |    |                                                                         |   |                                                                |   |                                                                                   |   |                                                                                                                                           |   |
| Grenada,                  Mississippi                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | Truck                  Stop                                                                                                   |   |                                                                     | 100    | %              |    |         | — |           |    |      | — |            |    |            | — |        |    |                             | — |                                                                         |   | None                                                                |   | None                                                                                   |   | Cash                  flow providedfrom                  retailoperations                                                                      |   |

----

**Table        of Contents**

|                                                                                                                                                                                                                                                                                                               |   |                                         |   |                                                                                                                                                                                                                                                                 |   |           |    |                                                        |    |           |   |      |   |            |    |            |    |                                                                                                            |   |                                                                                                                             |   |                                                                                                                 |   |                                                                                                   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|---------|-------------------------------------------------------------|---------|----------------|--------|-----------|--------|-----------------|---------|-----------------|---------|-----------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                               |   |                                         |   | **%**                                                                                                                                                                                                                                                                |   | **Investment** |    |                                                        |    | **Note**       |   |      |   |            |    | **Future**      |    | **Future                  Cash**                                                                                |   | **Sources                  of**                                                                                                  |
| **Name**                                                                                                                                                                                                                                                                                                           |   | **Industry**                                 |   | **Ownership**                                                                                                                                                                                                                                                        |   | **Amount**     |    | **Advances**                                                |    | **Receivable** |   | **Total** |   | **Obligations** |    | **Requirement** |    | **Capital**                                                                                                     |
|                                                                                                                                                                                                                                                                                                               |   |                                         |   |                                                                                                                                                                                                                                                                 |   |           |    | **(As                  of June 30, 2007 $ in 000’s)** |    |           |   |      |   |            |    |            |    |                                                                                                            |
| **Other                  Properties (continued):**                                                                                                                                                                                                                                                                 |   |                                         |   |                                                                                                                                                                                                                                                                 |   |           |    |                                                        |    |           |   |      |   |            |    |            |    |                                                                                                            |
|                                                                                                                                                                                                                                                                                                               |   |                                         |   |                                                                                                                                                                                                                                                                 |   |           |    |                                                        |    |           |   |      |   |            |    |            |    |                                                                                                            |   |                                                                                                                             |   |                                                                                                                 |   |                                                                                                   |
| Grenada,                  Mississippi                                                                                                                                                                                                                                                                              |   | Office                  space                |   | 0%(owned                  by directorof                  Earth)                                                                                                                                                                                                      |   |           | — |                                                        |    | —        |   | —   |   |            | — |            |    | Lease                  obligations                                                                              |   | $568,006-(Leasepayments)                                                                                                         |   | Cash                  flow providedfrom                  retailoperations                                            |
|                                                                                                                                                                                                                                                                                                               |   |                                         |   |                                                                                                                                                                                                                                                                 |   |           |    |                                                        |    |           |   |      |   |            |    |            |    |                                                                                                            |   |                                                                                                                             |   |                                                                                                                 |   |                                                                                                   |
| Meridian-                  Mississippi                                                                                                                                                                                                                                                                             |   | Pilot                  Bio- DieselOperations |   |                                                                                                                                                                                                                                                                 | 100    | %              |    |                                                        | — |           |   | —   |   | —         |    |            | — |                                                                                                            |   | None                                                                                                                             |   | None                                                                                                                 |   | Pilot                  operationswith                  fixed assetsonly-                  sold in 2007 |
|                                                                                                                                                                                                                                                                                                               |   |                                         |   |                                                                                                                                                                                                                                                                 |   |           |    |                                                        |    |           |   |      |   |            |    |            |    |                                                                                                            |   |                                                                                                                             |   |                                                                                                                 |   |                                                                                                   |
| **Subsidiaries:**                                                                                                                                                                                                                                                                                                  |   |                                         |   |                                                                                                                                                                                                                                                                 |   |           |    |                                                        |    |           |   |      |   |            |    |            |    |                                                                                                            |
|                                                                                                                                                                                                                                                                                                               |   |                                         |   |                                                                                                                                                                                                                                                                 |   |           |    |                                                        |    |           |   |      |   |            |    |            |    |                                                                                                            |   |                                                                                                                             |   |                                                                                                                 |   |                                                                                                   |
| Durant                  Biofuels, Oklahoma                                                                                                                                                                                                                                                                         |   | Biodiesal                  Plant             |   | 100%*****(2,933k                  sharesissued                  foracquisition                  valuedat                  $7,157k, or$2.70                  per share)(part                  of PP&Ecosts)                                                       |   |           | 15,778  |                                                        |    | —        |   | —   |   |            | 15,778  |            |    | Note                  payableincurred                  forconstructioncosts~$9m                                 |   | Methanol                  Recovery System- Est cost $3.5m                                                                        |   | Durant                  operations                                                                                   |
|                                                                                                                                                                                                                                                                                                               |   |                                         |   |                                                                                                                                                                                                                                                                 |   |           |    |                                                        |    |           |   |      |   |            |    |            |    |                                                                                                            |   |                                                                                                                             |   |                                                                                                                 |   |                                                                                                   |
| Earth                  Biofuels Distribution Co.-Texas                                                                                                                                                                                                                                                             |   | Biodiesal                                    |   | 100%*****(6,667kshares                  issued foracquisition                  of thecompany                  valued at$4,210k                  or .63 pershare)                  (Goodwill of$3,981                  onacquisition                  deemedimpaired) |   |           | — |                                                        |    | —        |   | —   |   |            | — |            |    | None-Royalty                  Contract payable to W. Nelson for $2 cents a gallon on all                  sales |   | Contract-w/                  Motivafor                  biodiesalsales-contractcancelled                  in 2007                |   | Motiva                  Sales                                                                                        |
|                                                                                                                                                                                                                                                                                                               |   |                                         |   |                                                                                                                                                                                                                                                                 |   |           |    |                                                        |    |           |   |      |   |            |    |            |    |                                                                                                            |   |                                                                                                                             |   |                                                                                                                 |   |                                                                                                   |
| American                  Earth Fuels Co. LLC- Texas                                                                                                                                                                                                                                                               |   | Retail                  bio Stations         |   |                                                                                                                                                                                                                                                                 | 100    | %              |    |                                                        | — |           |   | —   |   | —         |    |            | — |                                                                                                            |   | Determined                  to disband operations for this subsidiary And to record add’l Losses of                  $46k. |   | None-had                  previously put down payment of $250k on gas stations written off                  12/31/06 |   | NA                                                                                                     |
|                                                                                                                                                                                                                                                                                                               |   |                                         |   |                                                                                                                                                                                                                                                                 |   |           |    |                                                        |    |           |   |      |   |            |    |            |    |                                                                                                            |   |                                                                                                                             |   |                                                                                                                 |   |                                                                                                   |
| Earth                  Biofuels Co. LLC-Texas                                                                                                                                                                                                                                                                      |   | Biodiesal                  Technology        |   |                                                                                                                                                                                                                                                                 | 50     | %              |    |                                                        | — |           |   | —   |   | —         |    |            | — |                                                                                                            |   | None                                                                                                                             |   | None                                                                                                                 |   | Constructioncontracts                  To buildbiodiesal                  plants                       |
|                                                                                                                                                                                                                                                                                                               |   |                                         |   |                                                                                                                                                                                                                                                                 |   |           |    |                                                        |    |           |   |      |   |            |    |            |    |                                                                                                            |   |                                                                                                                             |   |                                                                                                                 |   |                                                                                                   |
| Earth                  LNG Texas(including                  subsidiaries-Arizona LnG, LLC And Applied LNG Technologies USA,                  LLC) (LNG                  companies acquired from Parent Apollo Resources for 18,224k shares                  valued                  At $39.3million/parents basis) |   | LiquifiedNatural                  gas        |   |                                                                                                                                                                                                                                                                 | 100    | %              |    |                                                        | 39,567  |           |   | —   |   | —         |    |            | 39,567  |                                                                                                            |   | $15m                  Note payable- 3 yr term note                                                                               |   | None                                                                                                                 |   | LNG                  operations                                                                        |
|                                                                                                                                                                                                                                                                                                               |   |                                         |   |                                                                                                                                                                                                                                                                 |   |           |    |                                                        |    |           |   |      |   |            |    |            |    |                                                                                                            |   |                                                                                                                             |   |                                                                                                                 |   |                                                                                                   |
| Earth                  Ethanol Inc.                                                                                                                                                                                                                                                                                |   | Ethanol                                      |   |                                                                                                                                                                                                                                                                 | 100    | %              |    |                                                        | — |           |   | —   |   | —         |    |            | — |                                                                                                            |   | None                                                                                                                             |   | None                                                                                                                 |   | Created                  to hold Investment in HPS                                                     |

----

**Table        of Contents**

**Letters        of Intent:**

|                                              |   |                                 |   |                                       |   |                                          |
|---------------------------------------------------|--------|--------------------------------------|--------|--------------------------------------------|--------|-----------------------------------------------|
|                                              |   |                                 |   |                                       |   |                                          |
|                                              |   | New                  Orleans         |   | Houston                  Facility-         |   | North                  Carolina Facility-     |
|                                              |   | Facility-**“HPS”**       |   | **“Vertex”**                   |   | **“DFI”**                         |
| Location                                          |   | Plaquemines                  Parish, |   | Houston                  Shipping Channel, |   | Martin                  County, North         |
|                                              |   | Louisiana                            |   | Houston,                  Texas            |   | Carolina                                      |
| Ownership                                         |   | 50%                                  |   | 51%                                        |   | 51%                                           |
| Anticipated                  closing month        |   | August 2006                     |   | August                  2006               |   | August                  2006                  |
| Purchase                  Price                   |   |                                 |   |                                       |   |                                          |
| Cash                                              |   | $50,000,000                  plus    |   | $2,500,000                                 |   | $25,000,000                                   |
|                                              |   | assumption                  of debt  |   |                                       |   |                                          |
| Shares                  of our Common Stock       |   | 5,829,005                            |   | 1,500,000                                  |   | 5%                  of shares of common       |
|                                              |   |                                 |   |                                       |   | stock                  of Earth Ethanol, Inc. |
| Months                  scheduled to be completed |   | 12-14 months                    |   | 1                  month                   |   | Phase                  I: 12-14 months        |
|                                              |   |                                 |   |                                       |   | Phase                  II: 6 months after     |
|                                              |   |                                 |   |                                       |   | Phase                  I                      |
| Annual                  capacity (MMPGY)          |   | 60-80                                |   | 10-20                                      |   | Phase                  I: 55                  |
|                                              |   |                                 |   |                                       |   | Phase                  II: additional 50-55   |

**HPS-**

----

**Table        of Contents**

**Vertex-**

**DFI-**

**Additional        investments entered into during the year ended 2006 were as        follows:**

**Truckers        Corner-**

----

**Table        of Contents**

**SMS-**

**Biodiesel        Investment Group-**

**Moses        Lake, Washington**

----

**Table        of Contents**

**Subsidiaries:**

**Earth        Biofuels Technologies-USA**

----

**Table        of Contents**

**Earth        LNG, Inc.- Topock, Arizona**

----

**Table        of Contents**

**Critical        Accounting Policies and Estimates**

*Revenue        Recognition *

*Business        Combinations *

*Accounting        for Stock Based Compensation *

*Accounting        for Derivatives *

----

**Table        of Contents**

**Table        of Contents**

*Net        Loss Per Share Data *

*Reclassifications        *

*Use        of Estimates *

*Impairment        of Long-Lived Assets *

*Debtor’s        Accounting for a Modification or Exchange of Debt Instruments*

**Off-Balance        Sheet Arrangements**

**Contractual        obligations**

***Current        Debt Obligations —***

----

**Table        of Contents**

***Leases        —***

----

**Table        of Contents**

**Risk        Factors**

|   | **•** |   | the                  ability to quickly bring new production capacity on                  stream;                                                                                          |
|--------|-------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |        |   |                                                                                                                                                                                       |
|   | **•** |   | the                  fluctuating prices of feedstocks and natural gas;                                                                                                                     |
|   |        |   |                                                                                                                                                                                       |
|   | **•** |   | the                  ability to raise the necessary capital to fund working capital,                  execute                  mergers, acquisitions and asset                  purchases; |

|   | **•** |   | the                  prices at which others offer competitive services, including aggressive                  price competition and discounting;                                            |
|--------|-------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |        |   |                                                                                                                                                                                        |
|   | **•** |   | actions                  taken by the Federal Government or State Governments to remove                  subsidies                  and tax credits associated with the biodiesel business; |
|   |        |   |                                                                                                                                                                                        |
|   | **•** |   | large                  swings in the price of oil which will affect the price at which                  Earth can                  purchase fuel supplies;                                  |
|   |        |   |                                                                                                                                                                                        |
|   | **•** |   | the                  ability of competitors to undertake more extensive marketing                  campaigns;                                                                               |
|   |        |   |                                                                                                                                                                                        |
|   | **•** |   | the                  extent, if any, to which competitors develop proprietary tools                  that                  improve their ability to compete; and                            |
|   |        |   |                                                                                                                                                                                        |
|   | **•** |   | the                  extent of competitors’ responsiveness to customer                  needs.                                                                                        |

----

**Table        of Contents**

|   | **•** |   | increase                  Earth’s vulnerability to general adverse economic and industry                  conditions;                                                                  |
|--------|-------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |        |   |                                                                                                                                                                                         |
|   | **•** |   | limit                  Earth’s ability to fund future working capital and other general corporate                  requirements; and                                                   |
|   |        |   |                                                                                                                                                                                         |
|   | **•** |   | limit                  Earth’s flexibility in planning for, or reacting to, changes in Earth’s                  business and the industry in which it                  operates. |

**Forward        Looking Statements**

|   | **•** |   | volatility                  or decline of Earth’s stock price;                                                                                                                           |
|--------|-------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |        |   |                                                                                                                                                                                           |
|   | **•** |   | potential                  fluctuation in quarterly results;                                                                                                                                   |
|   |        |   |                                                                                                                                                                                           |
|   | **•** |   | ability                  of Earth to earn revenues or profits;                                                                                                                                 |
|   |        |   |                                                                                                                                                                                           |
|   | **•** |   | sufficiency                  of revenues to cover operating costs;                                                                                                                             |
|   |        |   |                                                                                                                                                                                           |
|   | **•** |   | availability                  and cost of raw materials;                                                                                                                                       |
|   |        |   |                                                                                                                                                                                           |
|   | **•** |   | any                  impact of competition, competitive products, and                  pricing;                                                                                                |
|   |        |   |                                                                                                                                                                                           |
|   | **•** |   | adequacy                  of capital to continue or expand its business, inability to raise                  additional capital or financing to implement its business                  plans; |
|   |        |   |                                                                                                                                                                                           |
|   | **•** |   | ability                  to commercialize its technology or to make sales;                                                                                                                     |
|   |        |   |                                                                                                                                                                                           |
|   | **•** |   | overall                  expected growth in the alternative fuels industry;                                                                                                                    |
|   |        |   |                                                                                                                                                                                           |
|   | **•** |   | changes                  in interest rates and capital market conditions;                                                                                                                      |
|   |        |   |                                                                                                                                                                                           |
|   | **•** |   | changes                  in laws and other regulatory actions;                                                                                                                                 |
|   |        |   |                                                                                                                                                                                           |
|   | **•** |   | acquisitions                  of business enterprises, including the ability to integrate acquired                  businesses effectively;                                                    |
|   |        |   |                                                                                                                                                                                           |
|   | **•** |   | litigation                  with or legal claims and allegations by outside parties;                  and                                                                                      |

----

**Table        of Contents**

|   | **•** |   | other                  assumptions described in this report, as well as other reports                  filed with                  the United States Securities and Exchange Commission, underlying                  such                  forward-looking statements. |
|--------|-------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Item 3.*****Controls        and        Procedures***

*Extension        of Compliance Date for Management’s Report on Internal Control Over Financial        Reporting*

----

**Table        of Contents**

**PART        II OTHER INFORMATION**

**Item 1.*****Legal        Proceedings***

----

**Table        of Contents**

**Security agreements **

----

**Table        of Contents**

**Item 2.*****Equity        Securities and Use of        Proceeds***

**Market        for Registrant’s Common Equity**

**Table        of Contents**

|                                     |   |     |   |    |   |   |   |   |
|------------------------------------------|--------|----------|--------|---------|--------|--------|--------|--------|
| **Quarter                  Ended**       |   | **High** |   | **Low** |
| June 30,                  2007      |   | $        | .20    |    |   | $      | .18    |   |
| March 31,                  2007     |   |     | .41    |    |   |   | .39    |   |
| December 31,                  2006  |   |     | 1.29   |    |   |   | .98    |   |
| September 30,                  2006 |   |     | 2.35   |    |   |   | 2.25   |   |
| June 30,                  2006      |   |     | 3.15   |    |   |   | 2.85   |   |
| March 31,                  2006     |   |     | 2.65   |    |   |   | 2.44   |   |
| December 31,                  2005  |   |     | 1.20   |    |   |   | .35    |   |
| September 30,                  2005 |   |     | .92    |    |   |   | .24    |   |

**Holders        of Record**

**Dividends**

**Equity        Compensation Plan Information**

|                                                                                                                        |   |                                         |       |                                           |   |                                         |   |   |
|-----------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|------------|------------------------------------------------|--------|----------------------------------------------|--------|--------|
|                                                                                                                        |   |                                         |       |                                           |   | **Number                  of Securities**    |
|                                                                                                                        |   |                                         |       |                                           |   | **Remaining                  Available for** |
|                                                                                                                        |   | **Number                  of Securities**    |       | **Future                  Issuance Under**     |
|                                                                                                                        |   | **Issued                  or Issuable Upon** |       | **Equity                  Compensation Plans** |
|                                                                                                                        |   | **Exercise                  of Outstanding** |       | **(Excluding                  Securities in**  |
|                                                                                                                        |   | **Options,                  Warrants and**   |       | **the                  First Column of This**  |
| **Description**                                                                                                             |   | **Rights**                                   |       | **Table)**                                     |
| Compensatory                  common stock awards approved by security holders                                              |   |                                         | 5,000,000  |                                           |   |                                         | 0      |   |
| Compensatory                  common stock awards and warrants or options not approved by security                  holders |   |                                         | 14,365,812 |                                           |   |                                         | N/A    |   |

**Description        of Securities**

*Common        Stock *

*Preferred        Stock *

----

**Table        of Contents**

***Debt        securities and Warrants —***

*“Accounting for Derivative Instruments and Certain Hedging Activities”*

*“Accounting for Derivative        Instruments and Certain Hedging Activities” *

***Registration        Rights —***

----

**Table        of Contents**

***Change        in Securities and Use of Proceeds —***

***UNREGISTERED        SALES OF EQUITY SECURITIES AND USE OF PROCEEDS —***

----

**Table        of Contents**

----

**Table        of Contents**

|   | **•** |   | On                  May 4, 2006, we issued a $1.0 million convertible, secured                  promissory note, bearing interest at 7%, payable within thirty                  days upon                  demand by the holder, and convertible into shares of our common                  stock at a                  conversion price of $1.086 per share. We also issued the investor                  a                  warrant to purchase 920,810 shares of our common stock, exercisable                  until                  May 31, 2001 at the lesser of $2.00 per share or 80% of the average                  trading price of our common stock for the thirty trading days prior                  to the                  exercise of the warrant. We used the net proceeds from the sale                  in                  connection with our biodiesel and ethanol plant acquisition strategy                  and                  for other general corporate purposes. We granted the note holder                  certain                  registration rights with respect to the shares of common stock                  underlying                  the convertible note and the warrant. The note and warrant and                  a                  corresponding guarantee given by Apollo Resources, our majority                  stockholder, were subsequently cancelled by the holder in connection                  with                  Apollo Resources’ closing on July 21, 2006 of a securities purchase                  agreement with Greenwich Power.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|--------|-------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | **•** |   | On                  May 26, 2006, we issued $5.0 million principal amount of 8%                  senior convertible promissory notes to a single institutional investor.                  The notes carried an 8% coupon, payable quarterly, and were redeemable                  by                  us at par at any time prior to their initial maturity date in                  August 2006. The notes were not convertible until after                  August 2006, at which time the maturity date was extendable to                  November 2006 at the holder’s option. The notes were convertible into                  our common stock at a conversion price equal to the greater of                  $1.00 per                  share or 75% of the weighted average price per share of our common                  stock                  on a five-day volume weighted average prior to closing. We also                  issued                  five-year warrants to purchase 750,000 shares of common stock to                  the                  investor and five-year warrants to purchase 18,750 shares of common                  stock                  to our placement agent, both at an exercise price of $3.84 per                  share. We                  used the net proceeds from the sale in connection with our biodiesel                  and                  ethanol plant acquisition strategy and for other general corporate                  purposes. We granted the investor certain registration rights with                  respect                  to the shares of common stock issuable upon conversion of the convertible                  notes and exercise of the warrants. The remaining unpaid principal                  and                  accrued and unpaid interest on these notes were repaid in full                  with a                  portion of the net proceeds from the senior convertible promissory                  notes                  we issued in July 2006. The warrants remain                  outstanding. |
|   |        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | **•** |   | On                  June 2, 2006, we issued a convertible note with a principal amount of                  $500,000 to one individual. The note bore interest at 8% per year,                  which                  was payable on July 28, 2006, August 28, 2006, January 28,                  2007 and April 28, 2007. The note had a maturity date of                  April 28, 2007. The note was convertible into shares of our common                  stock at a conversion price equal to the lesser of $0.50 per share                  or 70%                  of the weighted average price per share of our common stock. We                  used the                  net proceeds from the sale in connection with our biodiesel and                  ethanol                  plant acquisition strategy and for other general corporate purposes.                  We                  granted the note holder                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |

----

**Table        of Contents**

|   |
|--------|
|   |   |   | certain                  registration rights with respect to the shares of common stock                  underlying                  the convertible notes. On July 13, 2006, the holder of the note                  exercised its option to convert the notes, and we issued an aggregate                  of                  1,000,000 shares of our common stock to such holder in exchange                  for the                  cancellation of the note. |

|   | **•** |   | On                  June 7, 2006, we issued $10 million aggregate principal amount                  of senior convertible notes to four institutional investors. The                  notes                  carried an 8% coupon, payable quarterly, and were redeemable by                  us at par                  at any time prior to their initial maturity date in September 2006.                  The notes were not convertible until after September 2006, at which                  time the maturity date was extendable to December 2006 at the                  holder’s option. The notes were convertible into our common stock at a                  conversion price equal to the greater of $1.00 per share or 70%                  of the                  weighted average price per share of our common stock on a five-day                  volume                  weighted average prior to closing. We also issued to the investors                  five-year warrants to purchase an aggregate of 1,500,000 shares                  of common                  stock to the investors and five-year warrants to purchase 45,000                  shares of                  common stock to our placement agent, at an exercise price of $2.93                  per                  share. We used the net proceeds from the sale, in concert with                  other                  funds, to continue to execute our business plan, specifically the                  construction or acquisition of additional biodiesel and ethanol                  facilities, and for other general corporate purposes, including                  working                  capital. We granted the investor certain registration rights with                  respect                  to the shares of common stock underlying the convertible notes                  and                  warrants. The remaining unpaid principal and accrued and unpaid                  interest                  on these notes were repaid in full with a portion of the net proceeds                  from                  the senior convertible promissory notes we issued in July 2006. The                  warrants remain outstanding. |
|--------|-------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | **•** |   | On                  July 10, 2006, Earth entered into a securities purchase agreement,                  pursuant to which Earth issued an 8% senior convertible note with                  a                  principal amount of $5.0 million to one institutional investor. Earth                  also issued five-year warrants to purchase an aggregate of 1,500,000                  shares of common stock to the investor and five-year warrants to                  purchase                  15,000 shares of common stock to Earth’s placement agent, both at an                  exercise price of $2.50 per share. On July 24, 2006, Earth used a                  portion of the net proceeds from its July 24, 2006 offering to repay                  in full the remaining unpaid principal and accrued and unpaid interest                  on                  this note.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | **•** |   | On                  July 13, 2006, holders of convertible notes issued during January                  through June of 2006, exercised their conversion option and Earth                  issued                  an aggregate of 3,000,000 shares of common stock in exchange for                  the                  conversion of notes with an aggregate principal amount of                  $1.5 million.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | **•** |   | On                  July 24, 2006, Earth entered into a securities purchase agreement                  pursuant to which Earth issued $52.5 million aggregate senior                  convertible notes that are due in 2011 to eight institutional investors.                  The notes initially carry an 8% coupon, payable quarterly, and                  are                  convertible into shares of common stock at $2.90 per share. In                  2007, the                  coupon may decline to 6% upon Earth achieving certain financial                  milestones. The notes will begin to amortize in equal, quarterly                  payments                  beginning in 2007. In connection with the issuance of the notes,                  Earth                  also issued five-year warrants to purchase 9,051,725 shares of                  common                  stock to the investors and five-year warrants to purchase 1,357,759                  shares                  of common stock to Earth’s placement agent, at $2.90 per share. Earth used                  the net proceeds from this offering to repay in full the remaining                  unpaid                  principal and accrued and unpaid interest on our $20.0 million                  aggregate principal amount of senior convertible promissory notes                  issued                  in May, June and July 2006, and expects to use the remaining proceeds                  from the offering for its program of building and acquiring interests                  in                  biodiesel and ethanol                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |

|   |        |   | production                  facilities, and for other general corporate purposes.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|--------|-------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | **•** |   | In                  connection with the 8% senior convertible notes issued in July,                  2006,                  Earth incurred loan costs in the amount of $3,452,000, which will                  be                  amortized over the term of the convertible notes.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | **•** |   | On                  August 11, 2006, Earth entered into a securities purchase agreement                  pursuant to which Earth issued $1.1 million aggregate senior convertible                  notes that are due in 2011 to two institutional investors. The                  notes                  initially carry an 8% coupon, payable quarterly, and are convertible                  into                  shares of common stock at $2.90 per share. In 2007, the coupon                  may decline                  to 6% upon Earth achieving certain financial milestones. The notes                  will                  begin to amortize in equal, quarterly payments beginning in March,                  2007.                  In connection with the issuance of the notes, Earth also issued                  five-year                  warrants to purchase 232,759 shares of common stock to the investors                  at                  $2.90 per share. The shares issued to an accredited investor included                  registration rights therein. As of year end December 31, 2006 these                  shares have not been registered, however, the company will include                  these                  rights upon filing of its registration statement to be filed during                  the                  year ended 2007. |

----

**Table        of Contents**

|   |
|--------|

**Item 3.*****Defaults        upon Senior        Securities***

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

**Item 5.*****Other        Information***

**ITEM        6.*****EXHIBITS***

|        |   |                                                                                                                                                                                                                                                                                                                                                                                  |
|-------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **Exhibit** |   |                                                                                                                                                                                                                                                                                                                                                                                  |
| **Number**  |   | **Description**                                                                                                                                                                                                                                                                                                                                                                       |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                  |
| 3.01        |   | Certificate                  of Incorporation (filed as Exhibit 3.1 to the Report on                  Form 10-QSB for the period ending September 30, 2005 and                  incorporated herein by reference)                                                                                                                                                      |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                  |
| 3.02        |   | Bylaws                  (filed as Exhibit 3.2 to the Report on Form 10-QSB for the                  period ending September 30, 2005 and incorporated herein by                  reference)                                                                                                                                                                            |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.1        |   | Merger                  Agreement dated March 31, 2006 by and among Earth Biofuels, Inc.,                  Southern Bio Fuels, Inc. and certain affiliates of Southern Bio                  Fuels,                  Inc. (filed as Exhibit 10.1 to the Report on Form 8-K filed                  April 10, 2006 and incorporated herein by                  reference) |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.2        |   | Stock                  Purchase Agreement dated October 1, 2005 by and between The Wing Sail                  Company and Earth Biofuels, Inc. (filed as Exhibit 10.1 to the Report                  on Form 8-K filed December 14, 2005 and incorporated herein by                  reference)                                                                   |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.3(1)     |   | Indemnification                  Agreement dated September 29, 2005 by and between Meadow Springs,                  Inc. (as predecessor to Earth Biofuels, Inc.) and William O. Locket,                  Jr.                                                                                                                                                                    |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.4(1)     |   | Indemnification                  Agreement dated September 29, 2005 by and between Meadow Springs,                  Inc. (as predecessor to Earth Biofuels, Inc.) and Morgan                  Freeman.                                                                                                                                                                           |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.5(1)     |   | Indemnification                  Agreement dated September 29, 2005 by and between Meadow Springs,                  Inc. (as predecessor to Earth Biofuels, Inc.) and Bruce                  Blackwell.                                                                                                                                                                          |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.6(1)     |   | Lease                  Agreement dated October 2005 by and between R. Bruce Blackwell and                  Earth Biofuels, LLC.                                                                                                                                                                                                                                                  |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.7(1)     |   | Intercompany                  Credit Agreement dated January 1, 2006 by and between Earth Biofuels,                  Inc. and Apollo Resources International, Inc.                                                                                                                                                                                                               |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.8(1)     |   | Registration                  Rights Agreement dated January 27, 2006 by and between Earth                  Biofuels, Inc. and Tom Groos.                                                                                                                                                                                                                                        |

----

**Table        of Contents**

|        |   |                                                                                                                                                                                                                                                                                                                                                                                                   |
|-------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **Exhibit** |   |                                                                                                                                                                                                                                                                                                                                                                                                   |
| **Number**  |   | **Description**                                                                                                                                                                                                                                                                                                                                                                                        |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.9(1)     |   | Earth                  Biofuels, Inc. Convertible Promissory Note dated January 27, 2006                  issued by Earth Biofuels, Inc. in favor of Tom Groos.                                                                                                                                                                                                                                   |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.10(1)    |   | Registration                  Rights Agreement dated January 30, 2006 by and between Earth                  Biofuels, Inc. and Marc Weill.                                                                                                                                                                                                                                                        |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.11(1)    |   | Earth                  Biofuels, Inc. Convertible Promissory Note dated January 30, 2006                  issued by Earth Biofuels, Inc. in favor of Marc Weill.                                                                                                                                                                                                                                  |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.12(1)    |   | Membership                  Interest Purchase Agreement dated March 1, 2006 by and between Earth                  Biofuels, Inc. and Dr. Miguel J. Dabdoub.                                                                                                                                                                                                                                  |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.13(1)    |   | Registration                  Rights Agreement dated March 29, 2006 by and between Earth Biofuels,                  Inc. and Josh Cohen.                                                                                                                                                                                                                                                          |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.14(1)    |   | Earth                  Biofuels, Inc. Convertible Promissory Note dated March 29, 2006                  issued by Earth Biofuels, Inc. in favor of Josh Cohen.                                                                                                                                                                                                                                    |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.15(1)    |   | Registration                  Rights Agreement dated March 31, 2006 by and between Earth Biofuels,                  Inc. and Tom Groos.                                                                                                                                                                                                                                                           |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.16(1)    |   | Earth                  Biofuels, Inc. Convertible Promissory Note dated March 31, 2006                  issued by Earth Biofuels, Inc. in favor of Tom Groos.                                                                                                                                                                                                                                     |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.17(1)    |   | Letter                  of Intent dated June 13, 2006 by and between Earth Biofuels, Inc. and                  HPS Development, L.L.C.                                                                                                                                                                                                                                                            |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.17(1)    |   | Letter                  of Intent dated June 13, 2006 by and between Earth Biofuels, Inc. and                  HPS Development, L.L.C.                                                                                                                                                                                                                                                            |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.18(1)    |   | Agreement                  dated August 2, 2006 by and between Earth Biofuels, Inc. and HPS                  Development, L.L.C.                                                                                                                                                                                                                                                                  |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.19       |   | Securities                  Purchase Agreement dated April 28, 2006, by and among Earth Biofuels,                  Inc. and the buyers listed on the schedule thereto (incorporated                  by                  reference to Exhibit 4.1 of the Current Report on Form 8-K filed                  by Earth Biofuels, Inc. with the SEC on May 10,                  2006). |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.20       |   | Registration                  Rights Agreement dated April 28, 2006 by and among Earth Biofuels,                  Inc. and the buyers listed on the schedule thereto (incorporated                  by                  reference to Exhibit 4.2 of the Current Report on Form 8-K filed                  by Earth Biofuels, Inc. with the SEC on May 10,                  2006).  |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.21(1)    |   | Registration                  Rights Agreement dated May 4, 2006 by and between Earth Biofuels,                  Inc. and Greenwich Power, L.L.C.                                                                                                                                                                                                                                                 |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.22(1)    |   | Convertible                  Secured Promissory Note-Bridge Loan dated May 4, 2006 issued by                  Earth                  Biofuels, Inc. in favor of Greenwich Power, L.L.C.                                                                                                                                                                                                                |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.23(1)    |   | Warrant                  to Purchase Shares of Common Stock of Earth Biofuels, Inc. dated                  May 4, 2006 issued to Greenwich Power, L.L.C.                                                                                                                                                                                                                                          |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.24(1)    |   | Unconditional                  Guaranty of Payment and Performance dated May 4, 2006 executed by                  Apollo Resources International, Inc. in favor of Greenwich Power,                  L.L.C.                                                                                                                                                                                       |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.25(1)    |   | Letter                  of Intent dated May 13, 2006 by and between Earth Biofuels, Inc. and                  Vertex Energy, LP.                                                                                                                                                                                                                                                                  |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.26       |   | Securities                  Purchase Agreement dated May 26, 2006 by and between Earth Biofuels,                  Inc. and the purchasers listed on the schedule thereto (incorporated                  by                  reference to Exhibit 4.1 of the Current Report on Form 8-K filed by                  Earth Biofuels, Inc. with the SEC on May 31,                  2006).   |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.27(1)    |   | Amended                  and Restated Securities Purchase Agreement dated May 26, 2006 by and                  between Earth Biofuels, Inc. and the purchasers listed on the schedule                  thereto.                                                                                                                                                                                   |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.28       |   | Warrant                  No. 1 to Purchase Common Stock of Earth Biofuels, Inc. dated                  May 26, 2006, issued to Evolution Master Fund, Ltd. (incorporated by                  reference to Exhibit 4.3 of the Current Report on Form 8-K filed                  by Earth Biofuels, Inc. with the SEC on May 31,                  2006).                        |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.29(1)    |   | Warrant                  No. 1r to Purchase Common Stock of Earth Biofuels, Inc. dated                  May 26, 2006 issued to Evolution Master Fund, Ltd.                                                                                                                                                                                                                                   |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.30(1)    |   | Warrant                  No. 2 to Purchase Common Stock of Earth Biofuels, Inc. dated                  May 26, 2006 issued to Cowen & Company LLC.                                                                                                                                                                                                                                       |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.31       |   | 8%                  Senior Convertible Note dated May 26, 2006 issued by Earth Biofuels,                  Inc. in favor of Evolution Master Fund, Ltd. (incorporated by reference                  to                  Exhibit 4.2 of the Current Report on Form 8-K filed by Earth                  Biofuels, Inc. with the SEC on May 31,                  2006).                |

----

**Table        of Contents**

|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|-------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **Exhibit** |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| **Number**  |   | **Description**                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.32       |   | Registration                  Rights Agreement dated May 26, 2006 by and between Earth Biofuels,                  Inc. and the purchasers listed on the signature pages thereto                  (incorporated by reference to Exhibit 4.4 of the Current Report on                  Form 8-K filed by Earth Biofuels, Inc. with the SEC on May 31,                  2006).                                                                    |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.33(1)    |   | Amended                  and Restated Registration Rights Agreement dated May 26, 2006 by and                  between Earth Biofuels, Inc. and the purchasers listed on the signature                  pages thereto.                                                                                                                                                                                                                                        |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.34(1)    |   | Registration                  Rights Agreement dated June 2, 2006 by and between Earth Biofuels,                  Inc. and Marc Weill.                                                                                                                                                                                                                                                                                                                        |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.35(1)    |   | Earth                  Biofuels, Inc. Convertible Promissory Note dated June 2, 2006 issued                  by                  Earth Biofuels, Inc. in favor of Marc Weill.                                                                                                                                                                                                                                                                                      |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.36(1)    |   | Convertible                  Promissory Note, dated May 31, 2006, made by Albemarle Bio-Refinery,                  Inc. in favor of Earth Biofuels, Inc.                                                                                                                                                                                                                                                                                                      |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.37(1)    |   | Convertible                  Promissory Note, dated July 19, 2006, made by Albemarle Bio-Refinery,                  Inc. in favor of Earth Biofuels, Inc.                                                                                                                                                                                                                                                                                                     |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.38       |   | Securities                  Purchase Agreement dated June 7, 2006 by and among Earth Biofuels,                  Inc. and the purchasers listed on the schedule thereto (incorporated                  by                  reference to Exhibit 4.1 of the Current Report on Form 8-K filed                  by Earth Biofuels, Inc. with the SEC on June 12,                  2006).                                                           |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.39       |   | Registration                  Rights Agreement dated June 7, 2006, by and among Earth Biofuels,                  Inc. and the purchasers listed on the schedule thereto (incorporated                  by                  reference to Exhibit 4.8 of the Current Report on Form 8-K filed                  by Earth Biofuels, Inc. with the SEC on June 12,                  2006).                                                          |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.40       |   | Warrant                  No. 1 to Purchase Common Stock of Earth Biofuels, Inc. dated                  June 7, 2006 issued to Capital Ventures International (incorporated                  by reference to Exhibit 4.6 of the Current Report on Form 8-K                  filed by Earth Biofuels, Inc. with the SEC on June 12,                  2006).                                                                                 |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.41(1)    |   | Warrant                  No 1r to Purchase Common Stock of Earth Biofuels, Inc. dated June 7,                  2006 issued to Capital Ventures International.                                                                                                                                                                                                                                                                                                 |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.42       |   | 8%                  Senior Convertible Note dated June 7, 2006 issued by Earth Biofuels,                  Inc. in favor of Capital Ventures International (incorporated by                  reference                  to Exhibit 4.3 of the Current Report on Form 8-K filed by Earth                  Biofuels, Inc. with the SEC on June 12, 2006).                                                                                         |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.43       |   | Warrant                  No. 1 to Purchase Common Stock of Earth Biofuels, Inc. dated                  June 7, 2006 issued to Castlerigg Master Investments Ltd.                  (incorporated by reference to Exhibit 4.5 of the Current Report on                  Form 8-K filed by Earth Biofuels, Inc. with the SEC on June 12,                  2006)                                                                              |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.44       |   | 8%                  Senior Convertible Note dated June 7, 2006 issued by Earth Biofuels,                  Inc. in favor of Castlerigg Master Investments, Ltd (incorporated                  by                  reference to Exhibit 4.2 of the Current Report on Form 8-K filed                  by Earth Biofuels, Inc. with the SEC on June 12,                  2006).                                                                    |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.45       |   | Warrant                  No. 1 to Purchase Common Stock of Earth Biofuels, Inc. dated                  June 7, 2006 issued to Radcliffe SPC, Ltd for and on behalf of the                  Class A Convertible Crossover Segregated Portfolio (incorporated by                  reference to Exhibit 4.7 of the Current Report of Form 8-K filed by                  Earth Biofuels, Inc. with the SEC on June 12,                  2006) |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.46(1)    |   | Warrant                  No 1r to Purchase Common Stock of Earth Biofuels, Inc. dated June 7,                  2006 issued to Radcliffe SPC, Ltd. for and on behalf of the Class A                  Convertible Crossover Segregated Portfolio.                                                                                                                                                                                                          |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.47       |   | 8%                  Senior Convertible Note dated June 7, 2006 issued by Earth Biofuels,                  Inc. in favor of Radcliffe SPC, Ltd. for and on the behalf of the                  Class A Convertible Crossover Segregated Portfolio (incorporated by                  reference to Exhibit 4.4 of the Current Report on Form 8-K filed by                  Earth Biofuels, Inc. with the SEC on June 12,                  2006).   |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.48(1)    |   | Warrant                  No. 1 to Purchase Common Stock of Earth Biofuels, Inc. dated                  June 7, 2006 issued to Cowen & Company LLC.                                                                                                                                                                                                                                                                                                   |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.49(1)    |   | Warrant                  No. 1r to Purchase Common Stock of Earth Biofuels, Inc. dated                  June 7, 2006 issued to Cowen & Company LLC.                                                                                                                                                                                                                                                                                                  |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.50(1)    |   | Consulting                  Agreement dated June 9, 2006 by and between Earth Biofuels, Inc. and                  Herb Meyer.                                                                                                                                                                                                                                                                                                                                 |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.51(1)    |   | Securities                  Purchase Agreement dated July 10, 2006 by and between Earth Biofuels,                  Inc. and the purchasers signatory                  thereto.                                                                                                                                                                                                                                                                                |

----

**Table        of Contents**

|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|-------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **Exhibit** |   |                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| **Number**  |   | **Description**                                                                                                                                                                                                                                                                                                                                                                                                                                |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.52(1)    |   | Registration                  Rights Agreement dated July 10, 2006 by and between Earth Biofuels,                  Inc. and the purchasers signatory thereto.                                                                                                                                                                                                                                                                             |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.53(1)    |   | 8%                  Senior Convertible Note dated July 11, 2006 issued by Earth Biofuels,                  Inc. to Castlerigg Master Investments Ltd.                                                                                                                                                                                                                                                                                     |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.54(1)    |   | Warrant                  No. 1 to Purchase Common Stock of Earth Biofuels, Inc. dated                  July 11, 2006 issued to Castlerigg Master Investments                  Ltd.                                                                                                                                                                                                                                                   |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.55(1)    |   | Warrant                  No. 2 to Purchase Common Stock of Earth Biofuels, Inc. dated                  July 11, 2006 issued to Castlerigg Master Investments                  Ltd.                                                                                                                                                                                                                                                   |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.56(1)    |   | Warrant                  No. 2 to Purchase Common Stock of Earth Biofuels, Inc. dated                  July 11, 2006 issued to Cowen & Company LLC.                                                                                                                                                                                                                                                                              |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.57(1)    |   | Registration                  Rights Agreement dated July 21, 2006 by and between Apollo Resources                  International, Inc. and Greenwich Power, LLC and acknowledged by                  Earth                  Biofuels, Inc.                                                                                                                                                                                               |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.58(1)    |   | Registration                  Rights Agreement dated July 21, 2006 by and between Apollo Resources                  International, Inc. Greenwich Power II, LLC and acknowledged by                  Earth                  Biofuels, Inc.                                                                                                                                                                                                |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.59(1)    |   | Registration                  Rights Agreement dated July 21, 2006 by and between Earth Biofuels,                  Inc. and Lance A Bakrow.                                                                                                                                                                                                                                                                                               |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.60(1)    |   | Warrant                  to Purchase Shares of Common Stock of Earth Biofuels, Inc. dated                  July 21,                  2006 to Lance A. Bakrow.                                                                                                                                                                                                                                                                                  |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.61       |   | Securities                  Purchase Agreement dated July 24, 2006 by and among Earth Biofuels,                  Inc. and the buyers listed on the schedule thereto (incorporated                  by                  reference to Exhibit 4.1 of the Current Report on Form 8-K filed                  by Earth Biofuels, Inc. with the SEC on July 25,                  2006).                                          |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.62       |   | Registration                  Rights Agreement dated July 24, 2006 among Earth Biofuels, Inc. and                  the buyers listed on the schedule thereto (incorporated by reference to                  Exhibit 4.2 of the Current Report on Form 8-K filed by Earth                  Biofuels, Inc. with the SEC on July 25, 2006).                                                                                   |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.63(1)    |   | Lock-Up                  Letter dated July 24, 2006 from Apollo Resources International,                  Inc.                                                                                                                                                                                                                                                                                                                            |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.64(1)    |   | Lock-Up                  Letter dated July 24, 2006 from Dennis G. McLaughlin                  III.                                                                                                                                                                                                                                                                                                                                       |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.65(1)    |   | Warrant                  No. 3 to Purchase Common Stock of Earth Biofuels, Inc. dated                  July 24, 2006 by Cowen & Company LLC.                                                                                                                                                                                                                                                                                     |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.66       |   | Form                  of Warrant to Purchase Common Stock of Earth Biofuels, Inc. dated                  July 24,                  2006 (incorporated by reference to Exhibit 4.4 of the Current Report                  on Form 8-K filed by Earth Biofuels, Inc. with the SEC on                  July 25, 2006).                                                                                                             |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.67       |   | Form                  of Notes dated as of July 24, 2006 issued by Earth Biofuels, Inc.                  (incorporated by reference to Exhibit 4.3 on the Current Report on                  Form 8-K filed by Earth Biofuels, Inc. with the SEC on July 25,                  2006).                                                                                                                                       |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.68       |   | Merger                  Agreement, dated March 31, 2006, by and between Earth Biofuels,                  Southern Bio Fuels, Inc., Southern Bio Fuels, LLC, and the other                  members                  and individuals party thereto (incorporated by reference to                  Exhibit 10.1 of the Current Report on Form 8-K filed by Earth                  Biofuels, Inc. with the SEC on April 10, 2006). |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.69(1)    |   | Securities                  Purchase Agreement, dated August 19, 2005, by and among Apollo                  Resources International, Inc., Tommy Johnson, Bruce Blackwell,                  William H.                  Webster and Robert Glenn.                                                                                                                                                                                         |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.70(1)    |   | Purchase                  and Sale Agreement dated February 25, 2005 by and between Earth                  Biofuels, Inc., R. Bruce Blackwell, Tommy Johnson, Robert Glenn,                  William                  Webster and Apollo Resources International, Inc.                                                                                                                                                                    |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.71(1)    |   | Promissory                  Note issued on March 2, 2006 to Southern Bio Fuels,                  LLC.                                                                                                                                                                                                                                                                                                                                     |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.72(1)    |   | Commercial                  Guaranty made on March 2, 2006 by Dennis G. McLaughlin, III in favor                  of Southern Biofuels, LLC.                                                                                                                                                                                                                                                                                              |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.73(1)    |   | Promissory                  Note issued on March 31, 2006 to Southern Bio Fuels,                  LLC.                                                                                                                                                                                                                                                                                                                                    |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.74(1)    |   | Commercial                  Guaranty made on March 31, 2006 by Dennis G. McLaughlin, III in favor                  of Southern Bio Fuels, LLC.                                                                                                                                                                                                                                                                                            |

----

**Table        of Contents**

|        |   |                                                                                                                                                                                                                                                                                                                 |
|-------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **Exhibit** |   |                                                                                                                                                                                                                                                                                                                 |
| **Number**  |   | **Description**                                                                                                                                                                                                                                                                                                      |
|        |   |                                                                                                                                                                                                                                                                                                                 |
| 10.75(1)    |   | Commercial                  Guaranty made on March 31, 2006 by R. Bruce Blackwell in favor of                  Southern Bio Fuels, LLC.                                                                                                                                                                         |
|        |   |                                                                                                                                                                                                                                                                                                                 |
| 10.76(1)    |   | Commercial                  Guaranty made on March 31, 2006 by Tommy Johnson in favor of Southern                  Bio Fuels, LLC.                                                                                                                                                                              |
|        |   |                                                                                                                                                                                                                                                                                                                 |
| 10.77(1)    |   | Earth                  Biofuels, Inc. 2006 Stock Option and Award Plan effective April 15,                  2006.                                                                                                                                                                                               |
|        |   |                                                                                                                                                                                                                                                                                                                 |
| 10.78(1)    |   | Sublicense                  Agreement dated April 1, 2006 by and between Earth Biofuels, Inc. and                  Biodiesel Venture, L.P.                                                                                                                                                                      |
|        |   |                                                                                                                                                                                                                                                                                                                 |
| 10.79(1)    |   | Securities                  Purchase Agreement dated August 11, 2006 by and among Earth Biofuels,                  Inc. and the buyers listed on the schedule.                                                                                                                                                  |
|        |   |                                                                                                                                                                                                                                                                                                                 |
| 10.80(1)    |   | Revised                  Schedule of buyers on Securities Purchase Agreement dated August 11,                  2006.                                                                                                                                                                                            |
|        |   |                                                                                                                                                                                                                                                                                                                 |
| 10.81(1)    |   | Registration                  Rights Agreement dated August 11, 2006 among Earth Biofuels, Inc. and                  the buyers listed on the schedule.                                                                                                                                                         |
|        |   |                                                                                                                                                                                                                                                                                                                 |
| 10.82(1)    |   | Form                  of Notes dated as of August 11, 2006 issued by Earth Biofuels, Inc.                  with Whalehaven Capital Fund Ltd.                                                                                                                                                                    |
|        |   |                                                                                                                                                                                                                                                                                                                 |
| 10.83(1)    |   | Form                  of Notes dated as of August 11, 2006 issued by Earth Biofuels Inc.                  with Gundyco ITF Excalibur Ltd Partnership.                                                                                                                                                           |
|        |   |                                                                                                                                                                                                                                                                                                                 |
| 10.84(1)    |   | Form                  of Warrant to Purchase Common Stock of Earth Biofuels, Inc. dated                  August 11, 2006, with Whalehaven Capital Fund Ltd.                                                                                                                                                     |
|        |   |                                                                                                                                                                                                                                                                                                                 |
| 10.85(1)    |   | Form                  of Warrant to Purchase Common Stock of Earth Biofuels, Inc. dated                  August 11, 2006, with Gundyco ITF Excalibur Ltd                  Partnership.                                                                                                                          |
|        |   |                                                                                                                                                                                                                                                                                                                 |
| 10.86(1)    |   | Form                  of Warrant to purchase Common Stock of Earth Biofuels, Inc. dated                  July 21, 2006 with Lance Bakrow, and Consulting Agreement with Lance                  Bakrow.                                                                                                          |
|        |   |                                                                                                                                                                                                                                                                                                                 |
| 10.87(2)    |   | Share                  Exchange Agreement effective as of November 17, 2006, by and between                  Earth Biofuels, Inc., a Delaware corporation (“Earth Biofuels”) and Apollo                  Resources International, Inc., a Utah corporation                  (“Apollo”). |
|        |   |                                                                                                                                                                                                                                                                                                                 |
| 10.88       |   | Acquisition                  Agreement between Liquafaction Corporation, et al and Earth Ethanol                  (incorporated by reference to Exhibit 1.01 of the Current Report on                  Form 8-K filed by Earth Biofuels, Inc. with the SEC on                  December 21, 2006).    |
|        |   |                                                                                                                                                                                                                                                                                                                 |
| **10.89     |   | Pledge                  Agreement, Promissory Notes and Warrant Agreements with and from                  Two                  Ponds, Gilcreast and Bryant Russell Construction                                                                                                                                      |
|        |   |                                                                                                                                                                                                                                                                                                                 |
| 11(3)       |   | Code                  of Ethics                                                                                                                                                                                                                                                                                      |
|        |   |                                                                                                                                                                                                                                                                                                                 |
| 12(3)       |   | Subsidiaries                                                                                                                                                                                                                                                                                                         |
|        |   |                                                                                                                                                                                                                                                                                                                 |
| 13(3)       |   | Forbearance                  and Amendment Agreement and related Security and Subsidiary                  Agreements                                                                                                                                                                                                 |
|        |   |                                                                                                                                                                                                                                                                                                                 |
| 14(3)       |   | Letter                  from Nexxus re offer to Capitalize Biofuels with $150 million in                  Exchange for Common Stock and Escrow Agreement dated January 9,                  2007                                                                                                            |
|        |   |                                                                                                                                                                                                                                                                                                                 |
| 15(3)       |   | Credit                  Agreement dated March 23 2007 by and between Durant Biofuels, LLC and                  Lenders and related Amendment No. 1, Amended and Restated Collateral                  Agreement, and Warrant Purchase and Registration Rights                  Agreement                    |
|        |   |                                                                                                                                                                                                                                                                                                                 |
| 16(3)       |   | Credit                  Agreement dated February 28, 2007 by and between Earth LNG, Inc. and                  Lenders, and related Guarantee and Collateral Agreement and Warrant                  Purchase and Registration Rights Agreement                                                                   |
|        |   |                                                                                                                                                                                                                                                                                                                 |
| 17(3)       |   | Loan                  and Security Agreement with Greenfield Commercial Credit LLC dated                  March 1, 2007, and related Revolving Credit Loan note and                  Guaranty                                                                                                                   |
|        |   |                                                                                                                                                                                                                                                                                                                 |
| 18(3)       |   | Report                  of Independent Registered Public Accounting Firm to the audit committee                  of                  Earth LNG, Inc.                                                                                                                                                                 |
|        |   |                                                                                                                                                                                                                                                                                                                 |
| *31.1       |   | Certification                  of Chief Executive Officer pursuant to Rule 13a-14(a) under the                  Securities                  Act of 1934.                                                                                                                                                             |
|        |   |                                                                                                                                                                                                                                                                                                                 |
| *31.2       |   | Certification                  of Chief Financial Officer pursuant to Rule 13a-14(a) under the                  Securities                  Act of 1934.                                                                                                                                                             |

----

**Table        of Contents**

|        |   |                                                                                                                                                                                                             |
|-------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **Exhibit** |   |                                                                                                                                                                                                             |
| **Number**  |   | **Description**                                                                                                                                                                                                  |
|        |   |                                                                                                                                                                                                             |
| *32.1       |   | Certification                  of Chief Executive Officer pursuant to 18 U.S.C., Section 1350, as                  adopted pursuant to Section 906 of the Sarbanes-Oxley Act of                  2002. |
|        |   |                                                                                                                                                                                                             |
| *32.2       |   | Certification                  of Chief Financial Officer pursuant to 18 U.S.C., Section 1350, as                  adopted pursuant to Section 906 of the Sarbanes-Oxley Act of                  2002. |

|   |   |                                                                                                                                                                                                                         |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| *      |   | Filed                  herewith.                                                                                                                                                                                             |
|   |   |                                                                                                                                                                                                                         |
| **     |   | Previously                  filed.                                                                                                                                                                                           |
|   |   |                                                                                                                                                                                                                         |
| +      |   | Management                  contract, compensatory plan or arrangement.                                                                                                                                                      |
|   |   |                                                                                                                                                                                                                         |
| (1)    |   | Filed                  as an exhibit to the registrants Report on Form 10-QSB for the                  period                  ending September 30, 2006 filed with the SEC on November 21,                  2006. |
|   |   |                                                                                                                                                                                                                         |
| (2)    |   | Filed                  as an exhibit to the registrant’s Current Report on Form 8-K filed with                  the SEC on November 22, 2006                                                                      |
|   |   |                                                                                                                                                                                                                         |
| (3)    |   | Filed                  as an exhibit to the registrants Report on Form 10-KSB for the                  period                  ending December 31, 2006 filed with the SEC on May 18,                  2007.       |

----

**Table        of Contents**

**SIGNATURE**

|   |                                                  |   |   |   |
|--------|-------------------------------------------------------|--------|--------|--------|
|   |                                                  |   |
|   | /s/                  Dennis G. McLaughlin, III   |   |
|   |                                                  |   |
|   |                                                  |   |
|   |