| [X]            |   | QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  |
|----------------|--------|------------------------------------------------------------------------------------|
|           |   |                                                                               |
|           |   | For the quarterly period ended June 30, 2009                                       |
|           |   |                                                                               |
| [  ] |   | TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |

| Nevada                       |   | 000-53372                                |   | 11-3828743             |
|------------------------------|--------|------------------------------------------|--------|------------------------|
| (State or other jurisdiction |   | (Commission File Number)                 |   | (IRS Employer          |
| of Incorporation)            |   |                                     |   | Identification Number) |
|                         |   | 341 Bonnie Circle, Suite 102             |   |                   |
|                         |   | Corona, CA 92880                         |   |                   |
|                         |   | (Address of principal executive offices) |   |                   |
|                         |   |                                     |   |                   |
|                         |   | (951) 737-1057                           |   |                   |
|                         |   | (Issuer’s Telephone Number)        |   |                   |

| Large accelerated filer  [   ]                                                  |   | Accelerated filer    [    ] |
|---------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------|
| Non-accelerated filer    [   ] (Do not check if smaller reporting company) |   | Smaller reporting company    [X]                |

----

| AVT, INC.                                                                                                                            |   |   |   |
|--------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
|                                                                                                                                 |   |   |   |
|                                                                                                                                 |   |   | Page   |
|                                                                                                                                 |   |   |   |
| Auditor's Report                                                                                                                     |   |   | F-2    |
|                                                                                                                                 |   |   |   |
| Condensed Balance Sheet for the six months ended  June 30, 2009 and the audited year ended December 31, 2008               | F-3    |
|                                                                                                                                 |   |   |   |
| Consensed Statements of Operations for the six months ended June 30, 2009 and the audited comparable six months ended June 30, 2008  | F-4    |
|                                                                                                                                 |   |   |   |
| Condensed Statement of Changes in Shareholders' Deficit for the six months ended June 30, 2009 and the audited comparable six months | F-5    |
| ended June 30, 2008                                                                                                                  |   |   |
|                                                                                                                                 |   |   |   |
| Condensed Statements of Cash Flows for the six months ended March 30, 2009 and the comparable six months ended June 30, 2008         | F-6    |
|                                                                                                                                 |   |   |   |
| Notes to Financial Statements                                                                                                        |   | F-7    |
|                                                                                                                                 |   |   |   |
| F-1                                                                                                                                  |   |   |   |

----

| AVT, INC.                                                |                                                          |                                                                            |                                                                                                      |          |
|----------------------------------------------------------|---------------------------------------------------------------|---------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------|---------------|
| BALANCE SHEET                                            |                                                          |                                                                            |                                                                                                      |          |
| UNAUDITED                                                |                                                          |                                                                            |                                                                                                      |          |
|                                                     |                                                          |                                                                            |                                                                                                      |          |   |   |
|                                                     |                                                          |                                                                            |                                                                                                      |          |   | Audited |
|                                                     |                                                          |                                                                            |                                                                                                      | For the       |   | For the |
| ASSETS                                                   |                                                          | six months ended                                                                | Year Ended                                                                                                |
|                                                     |                                                          |                                                                            |                                                                                                      | June 30, 2009 |   | December 31, 2008 |
| Current assets:                                          |                                                          |                                                                            |                                                                                                      |          |
|                                                     | Cash                                                          | $                                                                               | 76,042                                                                                                    | $             | 56,547 |
|                                                     | Accounts receivable                                           |                                                                            | 545,931                                                                                                   |          | 259,830 |
|                                                     | Inventory                                                     |                                                                            | 594,625                                                                                                   |          | 605,067 |
|                                                     | Prepaid expenses                                              |                                                                            | 60,899                                                                                                    |          | 60,899 |
|                                                     |                                                          | Total current assets                                                            |                                                                                                      | 1,277,497     |   | 982,343 |
|                                                     |                                                          |                                                                            |                                                                                                      |          |   |   |
| Property and equipment, net of accumulated depreciation. |                                                          | 4,523,341                                                                       |                                                                                                      | 4,054,024     |
|                                                     |                                                          |                                                                            |                                                                                                      |          |   |   |
| Other assets                                             |                                                          | 10,612,350                                                                      |                                                                                                      | 10,134,304    |
|                                                     |                                                          |                                                                            |                                                                                                      |          |   |   |
|                                                     |                                                          |                                                                            |                                                                                                      |          |   |   |
| TOTAL ASSETS                                             | $                                                             | 16,413,188                                                                      | $                                                                                                         | 15,170,671    |
|                                                     |                                                          |                                                                            |                                                                                                      |          |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                     |                                                          |                                                                            |                                                                                                      |          |
|                                                     |                                                          |                                                                            |                                                                                                      |          |   |   |
| Current liabilities:                                     |                                                          |                                                                            |                                                                                                      |          |
|                                                     | Accounts payable                                              |                                                                            | 155,276                                                                                                   |          | 93,865 |
|                                                     | Other current liabilities                                     |                                                                            | 9,129                                                                                                     |          | 33,088 |
|                                                     |                                                          | Total current liabilities                                                       | $                                                                                                         | 164,405       | $ | 126,953 |
|                                                     |                                                          |                                                                            |                                                                                                      |          |   |   |
| Long-term Liabilities:                                   |                                                          |                                                                            |                                                                                                      |          |
|                                                     | Notes payable                                                 |                                                                            | 1,746,631                                                                                                 |          | 874,731 |
|                                                     |                                                          |                                                                            |                                                                                                      |          |   |   |
| TOTAL LIABILITIES                                        |                                                          | 1,911,036                                                                       |                                                                                                      | 1,001,684     |
|                                                     |                                                          |                                                                            |                                                                                                      |          |   |   |
| STOCKHOLDERS' EQUITY                                     |                                                          |                                                                            |                                                                                                      |          |
|                                                     |                                                          |                                                                            |                                                                                                      |          |   |   |
|                                                     | Common stock, 100,000,000 shares authorized, $.001 par value, |                                                                            |                                                                                                      |          |   |
|                                                     |                                                          | 22,846,170 shares issued and outstanding                                        |                                                                                                      | 45,781        |   | 45,434 |
|                                                     | Preferred Stock, 3,000,000 authorized, $.001 par value        |                                                                            |                                                                                                      |          |   |
|                                                     |                                                          | 2,033,333 shares of Series A Convertible Preferred Stock issued and outstanding |
|                                                     | Notes issued that can be converted to common stock            |                                                                            | 2,153                                                                                                     |          | 1,901 |
|                                                     | Dividends Paid                                                |                                                                            |                 (585,223) |          |                 (412,796) |
|                                                     | Additional paid in capital                                    |                                                                            | 29,019,293                                                                                                |          | 28,811,652 |
|                                                     | Retained deficit                                              |                                                                            | (14,279,404)                                                                                              |          | (14,398,883) |
|                                                     | Net Income (Loss)                                             |                                                                            | 297,352                                                                                                   |          | 119,478 |
| TOTAL STOCKHOLDERS' EQUITY                               |                                                          | 14,502,152                                                                      |                                                                                                      | 14,168,986    |
|                                                     |                                                          |                                                                            |                                                                                                      |          |   |   |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY               | $                                                             | 16,413,188                                                                      | $                                                                                                         | 15,170,671    |
|                                                     |                                                          |                                                                            |                                                                                                      |          |   |   |
| See notes to the financial statements                    |                                                          |                                                                            |                                                                                                      |          |
|                                                     |                                                          |                                                                            |                                                                                                      |          |   |   |
| F-2                                                      |                                                          |                                                                            |                                                                                                      |          |   |   |

----

| AVT, INC.                                            |                       |                                                                                                                           |               |                                                                                                                           |               |             |                                                                                                            |             |                                                                                                                           |
|------------------------------------------------------|----------------------------|--------------------------------------------------------------------------------------------------------------------------------|--------------------|--------------------------------------------------------------------------------------------------------------------------------|--------------------|------------------|-----------------------------------------------------------------------------------------------------------------|------------------|--------------------------------------------------------------------------------------------------------------------------------|
| STATEMENTS OF OPERATIONS                             |                       |                                                                                                                           |               |                                                                                                                           |               |             |                                                                                                            |             |                                                                                                                           |
| UNAUDITED                                            |                       |                                                                                                                           |               |                                                                                                                           |               |             |                                                                                                            |             |                                                                                                                           |
|                                                 |                       |                                                                                                                           |               |                                                                                                                           |               |             |                                                                                                            |             |                                                                                                                           |   |
|                                                 |                       |                                                                                                                           | For The            |                                                                                                                           | For The            |             |                                                                                                            | For The          |                                                                                                                           | For The |
|                                                 |                       |                                                                                                                           | three months ended |                                                                                                                           | three months ended | six months ended |                                                                                                            | six months ended |
|                                                 |                       |                                                                                                                           | June 30, 2009      |                                                                                                                           | June 30, 2008      |             |                                                                                                            | June 30, 2009    |                                                                                                                           | June 30, 2008 |
|                                                 |                       |                                                                                                                           |               |                                                                                                                           |               |             |                                                                                                            |             |                                                                                                                           |   |
| Revenues:                                            |                       |                                                                                                                           |               |                                                                                                                           |               |             |                                                                                                            |             |                                                                                                                           |
|                                                 | Sales                      | $                                                                                                                              | 869,360            | $                                                                                                                              | 653,555            |             | $                                                                                                               | 1,545,139        | $                                                                                                                              | 1,047,920 |
| Total revenues                                       |                       | 869,360                                                                                                                        |               | 653,555                                                                                                                        |               |             | 1,545,139                                                                                                       |             | 1,047,920                                                                                                                      |
|                                                 |                       |                                                                                                                           |               |                                                                                                                           |               |             |                                                                                                            |             |                                                                                                                           |   |
| Expenses:                                            |                       |                                                                                                                           |               |                                                                                                                           |               |             |                                                                                                            |             |                                                                                                                           |
|                                                 | Cost of Goods Sold         |                                                                                                                           | 357,226            |                                                                                                                           | 269,552            |             |                                                                                                            | 576,585          |                                                                                                                           | 461,051 |
|                                                 | General and administrative |                                                                                                                           | 386,445            |                                                                                                                           | 524,787            |             |                                                                                                            | 788,057          |                                                                                                                           | 888,912 |
| Total operating expenses                             |                       | 743,671                                                                                                                        |               | 794,339                                                                                                                        |               |             | 1,364,642                                                                                                       |             | 1,349,964                                                                                                                      |
|                                                 |                       |                                                                                                                           |               |                                                                                                                           |               |             |                                                                                                            |             |                                                                                                                           |   |
| Operating Income (Loss)                              |                       | 125,689                                                                                                                        |               | (140,784)                                                                                                                      |               |             | 180,497                                                                                                         |             | (302,044)                                                                                                                      |
|                                                 |                       |                                                                                                                           |               |                                                                                                                           |               |             |                                                                                                            |             |                                                                                                                           |   |
| Provision for Income Taxes                           |                       |                     30,877 |               |                     36,075 |               |             |                  (106,311) |             |                     61,062 |
|                                                 |                       |                                                                                                                           |               |                                                                                                                           |               |             |                                                                                                            |             |                                                                                                                           |   |
| Other income & expenses                          |                       |                                                                                                                           |               |                                                                                                                           |               |             |                                                                                                            |             |                                                                                                                           |
|                                                 | Garnishments               |                                                                                                                           | (5,743)            |                                                                                                                           | (1,152)            |             |                                                                                                            | (10,544)         |                                                                                                                           | (807) |
|                                                 | Interest expense           |                                                                                                                           | 0                  |                                                                                                                           | 0                  |             |                                                                                                            | 0                |                                                                                                                           | 0 |
|                                                 | Loss on disposal of assets |                                                                                                                           | 0                  |                                                                                                                           | 0                  |             |                                                                                                            | 0                |                                                                                                                           | 0 |
|                                                 |                       |                                                                                                                           | (5,743)            |                                                                                                                           | (1,152)            |             |                                                                                                            | (10,544)         |                                                                                                                           | (807) |
|                                                 |                       |                                                                                                                           |               |                                                                                                                           |               |             |                                                                                                            |             |                                                                                                                           |   |
| NET INCOME (LOSS)                                    | $                          | 100,555                                                                                                                        | $                  | (175,706)                                                                                                                      |               | $                | 297,352                                                                                                         | $                | (362,299)                                                                                                                      |
|                                                 |                       |                                                                                                                           |               |                                                                                                                           |               |             |                                                                                                            |             |                                                                                                                           |   |
| Basic profit per common share                        | $                          | 0.00                                                                                                                           | $                  | (0.01)                                                                                                                         |               | $                | 0.01                                                                                                            | $                | (0.02)                                                                                                                         |
| Diluted profit per common share                      | $                          | 0.00                                                                                                                           | $                  | (0.01)                                                                                                                         |               | $                | 0.01                                                                                                            | $                | (0.02)                                                                                                                         |
|                                                 |                       |                                                                                                                           |               |                                                                                                                           |               |             |                                                                                                            |             |                                                                                                                           |   |
| Weighted average common shares outstanding - Basic   |                       | 22,846,170                                                                                                                     |               | 16,796,526                                                                                                                     |               |             | 22,846,170                                                                                                      |             | 16,796,526                                                                                                                     |
| Weighted average common shares outstanding - Diluted |                       | 22,876,140                                                                                                                     |               | 16,856,466                                                                                                                     |               |             | 23,097,918                                                                                                      |             | 16,931,391                                                                                                                     |
|                                                 |                       |                                                                                                                           |               |                                                                                                                           |               |             |                                                                                                            |             |                                                                                                                           |   |
| See notes to the financial statements                |                       |                                                                                                                           |               |                                                                                                                           |               |             |                                                                                                            |             |                                                                                                                           |
| F-3                                                  |                       |                                                                                                                           |               |                                                                                                                           |               |             |                                                                                                            |             |                                                                                                                           |   |

----

| AVT, INC.                                              |   |            |   |         |   |             |   |     |   |                  |   |         |   |        |   |   |
|--------------------------------------------------------|--------|-----------------|--------|--------------|--------|------------------|--------|----------|--------|-----------------------|--------|--------------|--------|-------------|--------|--------|
| STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY           |   |            |   |         |   |             |   |     |   |                  |   |         |   |        |
|                                                   |   |            |   |         |   |             |   |     |   |                  |   |         |   |        |   |   |
|                                                   |   |            |   |         |   |             |   |     |   |                  |   |         |   | Total       |   |   |
|                                                   |   | Preferred Stock |   | Common Stock |   |  Additional |   | Retained |   | Stockholders'         |   |         |
|                                                   |   | Shares          |   | Amount       |   | Shares           |   | Amount   |   |  Paid In Capital |   | Earnings     |   | Equity      |   |   |
|                                                   |   |            |   |         |   |             |   |     |   |                  |   |         |   |        |   |   |
| Balance at December 31, 2004                           | *      |            | $      |         | $      | 1,667,726        | $      | 340      | $      | 6,606,803             | $      | (4,832,921)  | $      | 1,774,222   |   |   |
|                                                   |   |            |   |         |   |             |   |     |   |                  |   |         |   |        |   |   |
| Common shares issued upon conversion of notes          | *      |            |   |         |   | 6,610,192        |   | 970      |   | 3,795,736             |   | —      |   | 3,796,706   |   |   |
|                                                   |   |            |   |         |   |             |   |     |   |                  |   |         |   |        |   |   |
| Net loss for the year ended December 31,2005           |   |            |   |         |   | —          |   | —  |   |                  |   | (2,001,149)  |   | (2,001,149) |   |   |
|                                                   |   |            |   |         |   |             |   |     |   |                  |   |         |   |        |   |   |
| Balance at December  31, 2005                | *      |            |   |         |   | 8,277,918        |   | 1,310    |   | 10,402,539            |   | (6,834,071)  |   | 3,569,778   |   |   |
|                                                   |   |            |   |         |   |             |   |     |   |                  |   |         |   |        |   |   |
|                                                   |   |            |   |         |   |             |   |     |   | 6,703,541             |   |         |   | 6,703,541   |   |   |
|                                                   |   |            |   |         |   |             |   |     |   |                  |   |         |   |        |   |   |
| Common shares issued as payment                        | *      |            |   |         |   | 1,319,322        |   | 27,482   |   |                  |   |         |   | 27,482      |   |   |
|                                                   |   |            |   |         |   |             |   |     |   |                  |   |         |   |        |   |   |
| Net Income (Loss) for the year ended December 31, 2006 |   |            |   |         |   | —          |   | —  |   |                  |   | (1,588,802)  |   | (1,588,802) |   |   |
|                                                   |   |            |   |         |   |             |   |     |   |                  |   |         |   |        |   |   |
| Balance at December  31, 2006                | *      |            |   |         |   | 9,597,240        |   | 28,792   |   | 17,106,080            |   | (8,422,873)  |   | 8,711,999   |   |   |
|                                                   |   |            |   |         |   |             |   |     |   |                  |   |         |   |        |   |   |
| Common Shares Issued                                   | *      |            |   |         |   | 3,291,191        |   | 10,864   |   |                  |   |         |   | 10,864      |   |   |
|                                                   |   |            |   |         |   |             |   |     |   |                  |   |         |   |        |   |   |
|                                                   |   |            |   |         |   |             |   |     |   | 910,000               |   |         |   | 910,000     |   |   |
|                                                   |   |            |   |         |   |             |   |     |   |                  |   |         |   |        |   |   |
| Preferred Shares issued                                |   | 1,200,000       |   | 1,200        |   |             |   |     |   |                  |   |         |   | 1,200       |   |   |
|                                                   |   |            |   |         |   |             |   |     |   |                  |   |         |   |        |   |   |
| Common shares issued upon conversion of notes          | *      |            |   |         |   | 454,707          |   | 1,685    |   |                  |   |         |   | 1,685       |   |   |
|                                                   |   |            |   |         |   |             |   |     |   |                  |   |         |   |        |   |   |
| Net Income (Loss) for the year ended December 31, 2007 |   |            |   |         |   | —          |   | —  |   |                  |   | 219,003      |   | 219,003     |   |   |
|                                                   |   |            |   |         |   |             |   |     |   |                  |   |         |   |        |   |   |
| Balance at December  31, 2007                | *      | 1,200,000       |   | 1,200        |   | 13,343,138       |   | 41,341   |   | 18,016,080            |   | (8,203,900)  |   | 9,854,721   |   |   |
|                                                   |   |            |   |         |   |             |   |     |   |                  |   |         |   |        |   |   |
| Common Shares Issued                                   | *      |            |   |         |   | 4,094,672        |   | 4,126    |   |                  |   |         |   | 4,126       |   |   |
|                                                   |   |            |   |         |   |             |   |     |   |                  |   |         |   |        |   |   |
|                                                   |   |            |   |         |   |             |   |     |   | 10,795,572            |   | (6,194,952)  |   | 4,600,620   |   |   |
|                                                   |   |            |   |         |   |             |   |     |   |                  |   |         |   |        |   |   |
| Preferred Shares issued                                |   | 1,000,000       |   | 1,000        |   |             |   |     |   |                  |   |         |   | 1,000       |   |   |
|                                                   |   |            |   |         |   |             |   |     |   |                  |   |         |   |        |   |   |
| Preferred SharesConverted                              |   | (166,667)       |   |         |   |             |   |     |   |                  |   |         |   |        |   |   |
|                                                   |   |            |   |         |   |             |   |     |   |                  |   |         |   |        |   |   |
| Common shares issued upon conversion of notes          | *      |            |   |         |   | 3,711,811        |   | 1,868    |   |                  |   |         |   | 1,868       |   |   |
|                                                   |   |            |   |         |   |             |   |     |   |                  |   |         |   |        |   |   |
| Dividends Paid                                         |   |            |   |         |   |             |   |     |   |                  |   | (412,796)    |   | (412,796)   |   |   |
|                                                   |   |            |   |         |   |             |   |     |   |                  |   |         |   |        |   |   |
| Net Income (Loss) for the year ended December 31,2008  |   |            |   |         |   | —          |   | —  |   |                  |   | 119,479      |   | 119,479     |   |   |
|                                                   |   |            |   |         |   |             |   |     |   |                  |   |         |   |        |   |   |
| Balance at December  31, 2008                | *      | 2,033,333       |   | 2,200        |   | 21,149,620       |   | 47,335   |   | 28,811,652            |   | (14,692,200) |   | 14,168,987  |   |   |
|                                                   |   |            |   |         |   |             |   |     |   |                  |   |         |   |        |   |   |
| Common shares issued                                   | *      |            |   |         |   | 771,914          |   | 180      |   |                  |   |         |   | 180         |   |   |
|                                                   |   |            |   |         |   |             |   |     |   |                  |   |         |   |        |   |   |
|                                                   |   |            |   |         |   |             |   |     |   | 60,432                |   |         |   | 60,432      |   |   |
|                                                   |   |            |   |         |   |             |   |     |   |                  |   |         |   |        |   |   |
| Preferred shares converted                             |   |            |   |         |   |             |   |     |   |                  |   |         |   | 0           |   |   |
|                                                   |   |            |   |         |   |             |   |     |   |                  |   |         |   |        |   |   |
| Preferred shares issued                                |   |            |   |         |   |             |   |     |   |                  |   |         |   | 0           |   |   |
|                                                   |   |            |   |         |   |             |   |     |   |                  |   |         |   |        |   |   |
| Dividends Paid                                         |   |            |   |         |   |             |   |     |   |                  |   | (80,690)     |   | (80,690)    |   |   |
|                                                   |   |            |   |         |   |             |   |     |   |                  |   |         |   |        |   |   |
| Common shares issued upon conversion of notes          | *      |            |   |         |   | 14,440           |   | 222      |   |                  |   |         |   | 222         |   |   |
|                                                   |   |            |   |         |   |             |   |     |   |                  |   |         |   |        |   |   |
| Net income for the period ended March 31, 2009         |   |            |   |         |   |             |   |     |   |                  |   | 196,797      |   | 196,797     |   |   |
|                                                   |   |            |   |         |   |             |   |     |   |                  |   |         |   |        |   |   |
| Balance at March 31, 2009                              | *      | 2,033,333       | $      | 2,200        | $      | 21,935,974       | $      | 47,737   | $      | 28,872,084            | $      | (14,576,094) | $      | 14,345,928  |   |   |
|                                                   |   |            |   |         |   |             |   |     |   |                  |   |         |   |        |   |   |
| Common shares issued                                   | *      |            |   |         |   | 820,286          |   | 167      |   |                  |   |         |   | 167         |   |   |
|                                                   |   |            |   |         |   |             |   |     |   |                  |   |         |   |        |   |   |
|                                                   |   |            |   |         |   |             |   |     |   | 147,209               |   |         |   | 147,209     |   |   |
|                                                   |   |            |   |         |   |             |   |     |   |                  |   |         |   |        |   |   |
| Preferred shares converted                             |   |            |   |         |   |             |   |     |   |                  |   |         |   | 0           |   |   |
|                                                   |   |            |   |         |   |             |   |     |   |                  |   |         |   |        |   |   |
| Preferred shares issued                                |   |            |   |         |   |             |   |     |   |                  |   |         |   | 0           |   |   |
|                                                   |   |            |   |         |   |             |   |     |   |                  |   |         |   |        |   |   |
| Dividends Paid                                         |   |            |   |         |   |             |   |     |   |                  |   | (91,736)     |   | (91,736)    |   |   |
|                                                   |   |            |   |         |   | 89,910           |   |     |   |                  |   |         |   |        |   |   |
| Common shares issued upon conversion of notes          | *      |            |   |         |   |             |   | 30       |   |                  |   |         |   | 30          |   |   |
|                                                   |   |            |   |         |   |             |   |     |   |                  |   |         |   |        |   |   |
| Net income for the period ended June 30, 2009          |   |            |   |         |   |             |   |     |   |                  |   | 100,555      |   | 100,555     |   |   |
|                                                   |   |            |   |         |   |             |   |     |   |                  |   |         |   |        |   |   |
| Balance at June 30, 2009                               | *      | 2,033,333       | $      | 2,200        | $      | 22,846,170       | $      | 47,934   | $      | 29,019,293            | $      | (14,567,275) | $      | 14,502,152  |   |   |
|                                                   |   |            |   |         |   |             |   |     |   |                  |   |         |   |        |   |   |
| See notes to the financial statements                  |   |            |   |         |   |             |   |     |   |                  |   |         |   |        |   |   |
| F-4                                                    |   |            |   |         |   |             |   |     |   |                  |   |         |   |        |   |   |

----

| AVT, INC.                                                      |                                                          |      |             |        |
|----------------------------------------------------------------|---------------------------------------------------------------|-----------|------------------|-------------|
| STATEMENTS OF CASH FLOWS                                       |                                                          |      |             |        |
| UNAUDITED                                                      |                                                          |      |             |        |
|                                                           |                                                          |      |             |        |   |
|                                                           |                                                          |      | For The          |        | For The |
|                                                           |                                                          |      | six months ended |        | six months ended |
|                                                           |                                                          |      | June 30, 2009    |        | June 30, 2008 |
|                                                           |                                                          |      |             |        |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                           |                                                          |      |             |        |
|                                                           | Net income  (loss)                                  | $         | 297,352          | $           | (362,299) |
|                                                           | Adjustments to reconcile net income to                        |      |             |        |   |
|                                                           |   net cash provided by operating activities:        |      |             |        |   |
|                                                           |   Changes in operating assets and liabilities:      |      |             |        |   |
|                                                           |     Accounts Receivable                   |      | (286,101)        |        | 375,940 |
|                                                           |     Inventory                             |      | 10,442           |        | (89,544) |
|                                                           |     Deposits                              |      |             |        |   |
|                                                           |     Accounts payable and accrued expenses |      | 37,452           |        | 45,427 |
|                                                           |                                                          |      |             |        |   |
| NET CASH PROVIDED BY OPERATING ACTIVITIES                      |                                                          | 59,145    |             | (30,476)    |
|                                                           |                                                          |      |             |        |   |
|                                                           |                                                          |      |             |        |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                           |                                                          | (947,362) |             | (1,619,258) |
|                                                           |                                                          |      |             |        |   |
| NET CASH USED IN FINANCING ACTIVITIES                          |                                                          | 907,713   |             | 1,546,619   |
|                                                           |                                                          |      |             |        |   |
| NET CHANGE IN CASH                                             |                                                          | 19,496    |             | (103,115)   |
|                                                           |                                                          |      |             |        |   |
| CASH BALANCES                                                  |                                                          |      |             |        |
|                                                           |   Beginning of period                               |      | 56,546           |        | 145,012 |
|                                                           |   End of period                                     | $         | 76,042           | $           | 41,897 |
|                                                           |                                                          |      |             |        |   |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:              |                                                          |      |
|      CASH PAID DURING THE PERIOD FOR: |                                                          |      |             |        |
|                                                           |   Interest                                          | $         |   -    | $           |   - |
|                                                           |   Income taxes                                      | $         |   -    | $           |   - |
|                                                           |                                                          |      |             |        |   |
| NON-CASH INVESTING AND FINANCING TRANSACTIONS:                 |                                                          |      |             |        |
|                                                           | Assets purchased with Preferred/Common stock                  | $         | 1,000,000        | $           |   - |
|                                                           |                                                          |      |             |        |   |
|                                                           |                                                          |      |             |        |   |
| See notes to the financial statements                          |                                                          |      |             |        |
| F-5                                                            |                                                          |      |             |        |   |

----

| June 30, 2009           |
|-------------------------|
|                    |   |   |
| Beginning Inventory     |   | 91,135 |
| Purchases               |   | 129,396 |
| Ending Inventory   |   |   (577,757) |
|                    |   |   |
| Total COG Sold          |   | 357,226 |

| Maintenance and repairs are charged to expense as incurred.  Renewals and improvements of a major nature are capitalized. At the time of the retirement or other disposition of property and equipment, the cost and accumulated depreciation and amortization are removed from the accounts and any resulting gains or losses are reflected in income. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| k. Expenses |
|-------------|

| The Company has various operating lease commitments in connection with its office space and certain equipment. |
|----------------------------------------------------------------------------------------------------------------|

| The Company may be involved from time to time in claims, lawsuits, and disputes with third parties, actions involving allegations or discrimination or breach of contract actions incidental in the normal operations of the business. The Company is currently not involved in any such litigation or disputes which management believes could have a material adverse effect on its financial position or results of operations. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| NOTE 4. | STOCKHOLDERS’ EQUITY |
|---------|----------------------------|

----

| ·   | Manufacturing of the RAM 4000 vending machine, a refrigerated beverage/snack combination vending machine containing more sophisticated technology then our competitors and offered at competitive pricing. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Manufacturing of the RAM 5000 vending machine, a high capacity non-refrigerated snack/chip/pastry combination vending machine containing more sophisticated technology then our competitors and offered at competitive pricing. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Manufacturing an attractive, built-in, secure access vending cabinet for hotels that do not have on-site food service. Our AEMTM cabinet incorporates patent pending touch-screen to vend or TSVTM which replaces both stand-alone machines and in-room locked mini-fridges while providing controlled access and a range of direct customer billing options. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | AVT has developed a variety of ‘high end” PC based product dispensing systems.  These systems are derivatives of the AVT RAM 4000 or 5000 base housing having front panels which are unique or customized to end customer’s needs for digital signage or large color touch screens.  These systems allow a variety of AVT designedtechnologies to be integrated into the system to meet specific customer needs for a custom dispensing system.  Our current high end product dispensing includes the Ivend, 24Hr. Vend Mart, and Tech-Store. We manufacture Patent-Pending, affordable, wireless VMSTM technology enabling vending machine owners/operators to remotely manage their vending systems and receive real time information via the Internet.  This system also utilizes a cashless payment system enabling patrons to use creditcard or membership card for completing vending transactions. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We offer advertising via our highly visible, remotely-programmable, AVTI MediaTM Network video panels which are integrated into vending machine signage that creates a new opportunity for advertisers to reach consumers in a captive setting. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                          | •  Zoom Systems: | A manufacture which does design vending systems which integrate high levels of technology.    Because Zoom Systems integrates high levels of technology into its systems, it would be considered one of AVT’s primary competitors. |
|--------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                                                                             |    |   |      |        |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|--------|-----------|-------------|
|                                                                                                                                                                                                             | Exhibit | Form   | Filing    | Filed with  |
| Exhibits                                                                                                                                                                                                         | #       | Type   | Date      | This Report |
|                                                                                                                                                                                                             |    |   |      |        |
| Certificate of Incorporation filed with the Secretary of State of Delaware on February 25, 1969.                                                                                                                 | 3.1     | 10     | 8/14/2008 |        |
|                                                                                                                                                                                                             |    |   |      |        |
| Certificate of Amendment filed with the Secretary of State of Delaware on December 16, 1985.                                                                                                                     | 3.2     | 10     | 8/14/2008 |        |
|                                                                                                                                                                                                             |    |   |      |        |
| Certificate of Amendment filed with the Secretary of State of Delaware on March 5, 1987.                                                                                                                         | 3.3     | 10     | 8/14/2008 |        |
|                                                                                                                                                                                                             |    |   |      |        |
| Certificate of Amendment filed with the Secretary of State of Delaware on February 11, 1991.                                                                                                                     | 3.4     | 10     | 8/14/2008 |        |
|                                                                                                                                                                                                             |    |   |      |        |
| Certificate of Renewal filed with the Secretary of State of Delaware on January 14, 2005.                                                                                                                        | 3.5     | 10     | 8/14/2008 |        |
|                                                                                                                                                                                                             |    |   |      |        |
| Certificate of Amendment filed with the Secretary of State of Delaware on September 22, 2005.                                                                                                                    | 3.6     | 10     | 8/14/2008 |        |
|                                                                                                                                                                                                             |    |   |      |        |
| Amended and Restated Certificate of Amendment of Incorporation filed with the Secretary of State of Delaware on April 28, 2006.                                                                                  | 3.7     | 10     | 8/14/2008 |        |
|                                                                                                                                                                                                             |    |   |      |        |
| Articles of Incorporation filed with the Nevada Secretary of State on September 24, 2007.                                                                                                                        | 3.8     | 10     | 8/14/2008 |        |
|                                                                                                                                                                                                             |    |   |      |        |
| Certificate of Amendment filed with the Nevada Secretary of State  on November 30, 2007.                                                                                                               | 3.9     | 10     | 8/14/2008 |        |
|                                                                                                                                                                                                             |    |   |      |        |
| Certificate of Merger filed with the Secretary of State of Delaware on December 11, 2007.                                                                                                                        | 3.10    | 10     | 8/14/2008 |        |
|                                                                                                                                                                                                             |    |   |      |        |
| Certificate of Designation of Rights, Preferences, Privileges and Restrictions of Series A Convertible Preferred Stock filed with the Nevada Secretary of State on March 5, 2008.                                | 3.11    | 10     | 8/14/2008 |        |
|                                                                                                                                                                                                             |    |   |      |        |
| Amended and Restated Bylaws dated March 12, 2008.                                                                                                                                                                | 3.12    | 10     | 8/14/2008 |        |
|                                                                                                                                                                                                             |    |   |      |        |
| Consulting Agreement effective October 1, 2006 between Automated Vending Technologies, Inc. and Star Capital.                                                                                                    | 10.1    | 10     | 8/14/2008 |        |
|                                                                                                                                                                                                             |    |   |      |        |
| Consulting Agreement effective January 1, 2006, Between Automated Vending Technologies, Inc. and SWI Trading, Inc.                                                                                               | 10.2    | 10     | 8/14/2008 |        |
|                                                                                                                                                                                                             |    |   |      |        |
| Employment Agreement effective May 1, 2006, by and between Automated Vending Technologies, Inc. and James Winsor.                                                                                                | 10.3    | 10     | 8/14/2008 |        |
|                                                                                                                                                                                                             |    |   |      |        |
| Employment Agreement effective as of January 1, 2006 by and between Automated Vending Technologies, Inc., and Natalie Bishop.                                                                                    | 10.4    | 10     | 8/14/2008 |        |
|                                                                                                                                                                                                             |    |   |      |        |
| Lease Agreement effective January 1, 2007 by and between AVT, Inc. and SWI Trading, Inc.                                                                                                                         | 10.5    | 10     | 8/14/2008 |        |
|                                                                                                                                                                                                             |    |   |      |        |
| Employment Agreement effective as of January 1, 2008 by and between AVT, Inc. and Natalie Russell.                                                                                                               | 10.6    | 10     | 8/14/2008 |        |
|                                                                                                                                                                                                             |    |   |      |        |
| Employment Agreement effective January 1, 2008, by and between AVT, Inc. and James Winsor.                                                                                                                       | 10.7    | 10     | 8/14/2008 |        |
|                                                                                                                                                                                                             |    |   |      |        |
| Consulting Agreement effective January 1, 2008, by and between AVT, Inc. and Star Capital IR Corp.                                                                                                               | 10.8    | 10     | 8/14/2008 |        |
|                                                                                                                                                                                                             |    |   |      |        |
| Consulting Agreement effective January 1, 2008, by and between AVT, Inc. and SWI Trading, Inc. (Attached as an exhibit to our Registration Statement on Form 10-SB filed with the Commission on August 14, 2008) | 10.9    | 10     | 8/14/2008 |        |
|                                                                                                                                                                                                             |    |   |      |        |
| Consulting Agreement effective March 1, 2008, by and between AVT, Inc. and SNI Innovations, Inc.                                                                                                                 | 10.10   | 10     | 8/14/2008 |        |
|                                                                                                                                                                                                             |    |   |      |        |
| Consulting Agreement effective September 1, 2008, by and between AVT, Inc. and Star Capital IR Corp.                                                                                                             | 10.11   | 10/A-1 | 2/24/2009 |        |
|                                                                                                                                                                                                             |    |   |      |        |
| Agreement and Plan of Merger dated December 3, 2007 by and between Automated Vending Technologies, Inc. and AVT, Inc.                                                                                            | 10.12   | 10/A-1 | 2/24/2009 |        |
|                                                                                                                                                                                                             |    |   |      |        |
| Consulting Agreement effective January 1, 2008, by and between AVT, Inc. and SWI Trading, Inc.                                                                                                                   | 10.13   | 10/A-1 | 2/24/2009 |        |
|                                                                                                                                                                                                             |    |   |      |        |
| Employment Agreement effective as of January 1, 2009 by and between AVT, Inc. and Natalie Russell.                                                                                                               | 10.14   | 10/A-1 | 2/24/2009 |        |
|                                                                                                                                                                                                             |    |   |      |        |
| Employment Agreement effective January 1, 2009, by and between AVT, Inc. and James Winsor.                                                                                                                       | 10.15   | 10/A-1 | 2/24/2009 |        |
|                                                                                                                                                                                                             |    |   |      |        |
| Code of Ethics                                                                                                                                                                                                   | 14.1    | 10     | 8/14/2008 |        |
|                                                                                                                                                                                                             |    |   |      |        |
| Certification of Natalie Russell pursuant to Rule 13a-14(a)                                                                                                                                                      | 31.1    |   |      | X           |
|                                                                                                                                                                                                             |    |   |      |        |
| Certification of James Winsor pursuant to Rule 13a-14(a)                                                                                                                                                         | 31.2    |   |      | X           |
|                                                                                                                                                                                                             |    |   |      |        |
| Certification of Natalie Russell and James Winsor pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                        | 32.1    |   |      | X           |

|                                                                                                                                                                                   | Signatures                                   |            |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------|-----------------|
|                                                                                                                                                                                   |                                         |            |
| Pursuant to the requirements of the Securities Exchange Act 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. |
|                                                                                                                                                                                   |                                         |            |
| Signatures                                                                                                                                                                             | Title                                        | Date            |
|                                                                                                                                                                                   |                                         |            |
| /s/ Natalie Russell Natalie Russell                                                                                                                                               | Secretary, Chief Financial Officer, Director | August 18, 2009 |

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