|   | UNITED STATESSECURITIES AND EXCHANGE COMMISSION |   |
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| Washington, D.C. 20549 |
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| Form 10-KSB |
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| [X] | Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 forthe Fiscal Year Ended December 31, 2007 |
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| [ ] | Transition Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934 forthe Transition Period From ________ to ________ |
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| Commission File No. 0-29417 |
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|   | ALL Fuels & Energy Company |   |
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| (Name of Small Business Issuer in its Charter) |
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|   | Delaware                                                      |   | 62-1581902                          |   |
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|   | (State or Other Jurisdiction ofIncorporation or Organization) |   | (IRS Employer IdentificationNumber) |   |

|   | 6165 N.W. 86th Street, Johnston, Iowa 50131                  |   |
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|   | (Address of Principal Executive Offices, Including Zip Code) |   |

|   | (515) 331-6509                                   |   |
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|   | (Issuer's Telephone Number, Including Area Code) |   |

|   | Securities Registered under Section 12(b) of the Exchange Act: None |   |
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| Securities Registered under Section 12(g) of the Exchange Act: Common Stock, $0.01 parvalue |
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| Check whether the issuer is not required to file reports pursuant to Section 13 or 15(d) of theExchange Act. [  ] |
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| Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of theExchange Act during the past 12 months (or for such shorter period that the registrant wasrequired to file such reports), and (2) has been subject of such filing requirements for the past 90days. Yes [ X ] No [  ] |
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| Check if there is no disclosure of delinquent filers in response to Item 405 of Regulation S-Bcontained in this form, and no disclosure will be contained, to the best of registrant's knowledge,in definitive proxy or information statements incorporated by reference in Part III of this Form10-KSB or any amendment to this Form 10-KSB. [ ] |
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| Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of theExchange Act). Yes [  ] No [ X ] |
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| Registrant's revenues for its most recent fiscal year were $-0-. |
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| The aggregate market value of the voting stock held by non-affiliates computed based on theclosing price of such stock as of April 11, 2008, was approximately $15,000,000. |
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| The number of shares outstanding of the issuer's common equity as of April 11, 2008, was50,232,703 shares of common stock, par value $.01. |
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| Documents Incorporated by Reference: the following Current Reports on Form 8-K: (1) dateof event: September 21, 2006; (2) date of event: January 19, 2007; (3) date of event: January29, 2007; (4) date of event: February 14, 2007; date of event: April 9, 2007; date of event:May 2, 2007; and date of event: May 3, 2007. |
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| Transitional Small Business Disclosure Format (check one): Yes [ ] No [ X ] |
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| PART I |
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| Item 1. | Business |
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|   | FORWARD-LOOKING STATEMENTS |   |
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| References to “us”, “we” and “our” include ALL Fuels & Energy Company, its subsidiary, ALLEnergy Company, and that company’s subsidiary, ALL Energy Manchester, LLC, and AFSEEnzyme, LLC, unless otherwise indicated. |
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| Certain forward-looking statements herein are statements regarding financial and operatingperformance and results and other statements that are not historical facts. The words “expect”,“project”, “estimate”, “believe”, “anticipate”, “intend”, “plan”, “forecast” and similar expressionsare intended to identify forward-looking statements. Certain important risks could cause resultsto differ materially from those anticipated by some of the forward-looking statements. Some, butnot all, of the important risks that could cause actual results to differ materially from thosesuggested by the forward-looking statements include, among other things: |
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| - | Events that deprive us of the services of our president, Dean E. Sukowatey; |
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| - | Whether we are able to obtain adequate capital with which to purchase and/orconstruct one or more ethanol production facilities; and |
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| - | Other uncertainties, all of which are difficult to predict and many of which are beyondour control. |
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| 2007 Developments |
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| In January 2007, there occurred a change in control with respect to our company and newmanagement was installed.  Our new management has determined that we will pursue a plan ofbusiness whereby we would become a producer of ethanol and its co-products. To that end, inApril 2007, we consummated a plan and agreement of reorganization with ALL Energy Company,a development-stage ethanol company, whereby ALL Energy Company became our wholly-ownedsubsidiary.  Our management and that of ALL Energy Company was and is the same. |
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| Our Company Now |
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| Currently, we are actively pursuing the acquisition of one or more operating ethanol productionfacilities.  Also, we have recently formed a new subsidiary that is to pursue the development andcommercial exploitation of one or more enzymes intended to boost ethanol production rates.Further, we own approximately 150 acres of real property in Manchester, Iowa, on which weintend to construct a 100 million gallon (per year) ethanol production facility. |
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| Overview |
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| Our subsidiary, ALL Energy Company, was incorporated in August 2006, with the intention ofoperating as an ethanol producer, focusing primarily on the production and sale of ethanol and itsco-products.  We have adopted ALL Energy Company’s ethanol-related business plan.  In thecurrent climate of historically-high oil prices, we believe this focus will enable us to build asuccessful ethanol production and distribution business. |
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| During the past 18 months, we have obtained approximately $2.3 million through two privateofferings.  These funds have allowed us to achieve important business objectives related to thepursuit of an acquisition of an operating ethanol production facility, the development of anenzyme technology and the construction of our first proposed ethanol production facility. |
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| Business Objective |
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| It is our goal to become a significant producer of ethanol and its co-products in the United States,that is, to become a producer of at least 500 million gallons of ethanol annually. |
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| Current Status of Business Activities |
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| Ethanol Production Facility Acquisition.  Throughout 2007 and continuing to the present, we havesought to acquire one or more existing ethanol production facilities. We have executed letters ofintent to make such an acquisition, but have been unable to enter into a definitive acquisitionagreement.  Our management is currently negotiating the purchase of two separate ethanolproduction facilities.  There is, however, no assurance that we will be able to purchase an existingethanol production facility.  Further, it is currently anticipated that the capital required to completeany such purchase will be obtained in the form of debt financing or a combination of debtfinancing and equity.  We have not obtained a specific financing commitment and there is noassurance that we will ever obtain the financing needed to complete any proposed acquisition. |
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| Enzyme Development.  We recently announced the formation of an alliance with a cellulosicbiotech company embodied in the formation of a new subsidiary, AFSE Enzyme, LLC.  Thisventure intends to pursue the development and commercialization of an ethanol “super” enzyme,producing cellulosic ethanol with a theoretical savings of up to 50% reduction in ethanolproduction costs.  Ethanol produced by such a super enzyme would be manufactured fromsustainable non-food biomass and surplus waste products, such as wood chips, household garbageand sugarcane waste, which are abundantly available domestically and internationally.  One of thekey benefits would be the elimination of the cost of the more traditional component ethanol feed-stock, corn.  There is no assurance that we will be successful in developing and commercializingany enzyme products. |
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| Proposed Manchester, Iowa, Ethanol Production Facility. |
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| Purchase of Land.  We own approximately 150 acres of real property located near Manchester,Iowa.  It is our intention to construct a 100 million gallon (per year) ethanol production facilityon this land.  We refer to this proposed ethanol production facility as “the Manchester facility”.This property has the following characteristics: |
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| *Property Location:*   | Manchester, Iowa, midway between Waterloo and Dubuque, Iowa.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
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| *Property Size:*       | Approximately 150 acres.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| *Purchase Price:*      | $945,000.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| *Ingress/Egress:*      | Easy access to Iowa State Highway 20.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| *Market Availability:* | Highway access for trucking ethanol and DDGS; situated in NortheastIowa with close proximity to feed markets for Wet Distillers Grainwith Soluables (WDGS).                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| *Power Supply:*        | Electricity supply is ample for the proposed production facility andthere are two nearby natural gas pipelines.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| *Water Supply:*        | Well water is available, with back-up water supply available from theCity of Manchester.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| *Sewer:*               | Available, if needed, from the City of Manchester.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| *Corn Availability:*   | Our commissioned corn feasibility study indicates that there are amplecorn supplies in close proximity to the Manchester facility, asproposed.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| *Economic Incentives:* | We have received in excess of $17 million in infrastructureimprovements, tax credits and property tax abatements from the Cityof Manchester, Iowa, and the State of Iowa in support of theManchester facility.  The City has agreed to provide us with sewerservice to the Manchester facility site, roadway improvements in andaround the Manchester facility site and a 10-year property taxabatement, a total incentive package in excess of $6.6 million.  Inaddition, the Iowa Department of Economic Development has awardedus a sales and use tax credit in an amount in excess of $10.4 million forHigh Quality Job Creation. |
| *Local Government:*    | The City of Manchester has indicated its informal approval ofproposed entrances and exits for the Manchester site.  The Manchestercity council has met on several occasions since the middle of 2006regarding the Manchester facility, as proposed, and indicated that it isamenable to the needs of that proposed facility.                                                                                                                                                                                                                                                                                                          |

| We require approximately $200,000,000 in financing, either debt, equity or a combination thereof,to construct the Manchester facility.  Due to current market conditions, both in the ethanolindustry and the overall U.S. economy, we cannot assure you that we will be able to construct theManchester facility, as proposed, as we have not obtained any commitment for any such funding.However, should we obtain needed financing, the Manchester facility is expected to have thefollowing characteristics: |
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| *Annual Ethanol Production Capacity:* | Design capacity of 100 million gallons per year,with an anticipated annual ethanol productionrate of 124 million gallons. |
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| *Ownership:*                          | 100%.                                                                                                                     |
| *Production Process:*                 | Dry-Milling.                                                                                                              |
| *Primary Energy Source:*              | Natural Gas.                                                                                                              |
| *Estimated DDGS Production per Year:* | 381,000 tons.                                                                                                             |
| *Estimated Corn Processed per Year:*  | 42.4 million bushels.                                                                                                     |

| Our progress towards constructing the Manchester facility has slowed significantly, since themiddle of 2007, due to our management’s determining that the current market conditions are notfavorable for undertaking the construction of a new ethanol production facility, that is, ourmanagement has determined that the ethanol industry is temporarily over-built.  We do not havea specific time-frame for completing the construction of the Manchester facility.  In this regard,we will be guided by future market conditions, none of which can be predicted.  The Manchesterfacility is to be the first ethanol production facility that is part of our five-plant projectdevelopment agreement with Delta-T Corporation.  Under the development agreement, Delta-Tis to provide design engineering services.  Our management has begun the process of selecting theconstruction firm that will be hired by us to build the Manchester facility.  As of the date hereof,we have not entered into any contract with any such construction firm.  However, with the respectto the Manchester facility, we have entered into working relationships with two constructionfirms, one based in Minnesota, the other in Wisconsin, as we continue the process of completingthe design of the Manchester facility. |
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| Annexation of Land.  In March 2007, the City of Manchester, Iowa, annexed the 150 acres onwhich we propose to build the Manchester facility, a 100 million gallon per year ethanolproduction facility. |
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| Economic Incentives.  We have received in excess of $17 million in infrastructure improvements,tax credits and property tax abatements from the City of Manchester, Iowa, and the State of Iowain support of the Manchester facility.  The City has agreed to provide us with sewer service to theManchester facility site, roadway improvements in and around the Manchester facility site and a10-year property tax abatement, a total incentive package in excess of $6.6 million.  In addition,the Iowa Department of Economic Development has awarded us a sales and use tax credit in anamount in excess of $10.4 million for High Quality Job Creation. |
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| Air Quality Construction Permit.  In May 2007, the Iowa Department of Natural Resources issuedthe final Air Quality Construction Permit relating to the Manchester facility.  We have engagedYaggy-Colby to consult on air-related environmental matters relating to the Manchester facility. |
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| Ground Water Quality Permit Application.  We have engaged Natural Resources Group (NRG)to consult on water-related environmental matters relating to the Manchester facility.  With NRG,we have made significant progress towards compliance with applicable water-related regulations,having filed our initial water-quality-related permit application. |
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| Project Feasibility Study.  We commissioned BBI to perform a project feasibility study relatingto the Manchester facility, which included an analysis of the availability of corn and energy, aswell as the surrounding transportation infrastructure.  BBI’s report indicates that there are amplecorn supplies in close proximity to the Manchester facility to satisfy our feedstock needs, thatthere are adequate supplies of energy available at reasonable cost with which to operate theManchester facility and that the surrounding transportation infrastructure is capable of handlingthe anticipated truck and rail traffic associated with the Manchester facility.  We obtained thisfeasibility study, inasmuch as funding sources familiar to our management require such a studyas a condition to financing. |
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| Delta-T Corporation.  We have engaged Delta-T Corporation to provide project engineeringservices with respect to the Manchester facility.  We have made significant progress towardscompleting the necessary preliminary engineering work relating to the Manchester facility.However, as noted above, our progress in this regard has slowed. |
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| Our Competitive Advantages and Disadvantages |
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| Competitive Advantages.  Our management believes we will have certain competitive advantagesover our competition, including the following: |
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| - | Plant Design Efficiencies.  Our future ethanol production facilities will embody thelatest technologies to promote cost savings. |
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| - | Operating Cost Efficiency: Our management is committed to implementing cost-efficient methodologies for all aspects of our business.  By maintaining low operatingcosts through the use of available technology, our management believes that we willrealize significant cost savings compared to our competitors. |
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| Competitive Disadvantages.  While our management believes we possess competitive advantages,there are certain competitive disadvantages that we must overcome, including the following: |
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| - | Small Capital Base: We do not possess sufficient capital to construct the proposedManchester facility or to purchase an existing ethanol production facility.  Withoutsignificant additional capital, it is likely that we would be unable to accomplish eitherobjective. |
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| - | Limited In-House Management Resources: Although our management team, in all, ishighly experienced and qualified, our president does not possess experience in theethanol industry.  In addition, we will be required to attract persons with expertisesufficient for us to be successful in our proposed operations. Currently, we do notpossess adequate capital to attract such persons, and we may never possess adequatecapital resources to attract such persons.  Our inability to do so would likely cause ourbusiness prospects to suffer. |
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| Proposed Business and Implementation Strategy |
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| In General.  To achieve our goal of becoming a significant producer of ethanol in the U.S., thatis, a producer of 500 million gallons per year of ethanol, we have developed a strategy that weintend to pursue.  Our strategy, which is dependent on our ability to obtain significant additionalcapital, has the following important elements: |
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| - | Low-cost production capacity.  It is our intention to capitalize on the demand in theU.S. for ethanol by establishing increasing production capacity as quickly as possibleover the next several years. In pursuing our expansion strategy, we will seek to acquireand/or build large-scale facilities with design elements that incorporate technologyimprovements and continue to acquire and/or build facilities in locations with accessto multiple rail services.  We believe that using similar facility designs will permit usto lower our costs relating to spare parts and to take advantage of our operationsexperience to be gained at other future facilities. |
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| - | Focus on Cost Efficiency.  Our corporate challenge will always be to seek greatereconomies of scale in our operations and to maximize energy efficiency and increaseyield.  Included in this challenge will be to purchase corn during peak supply periodsto reduce our corn costs and to reduce our per-unit energy and transportation costswhere possible. |
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| - | Implement Risk Mitigation Strategies.  Once we acquire an ethanol production facility,our management will begin its efforts to mitigate our exposure to commodity pricefluctuations by purchasing a portion of our corn requirements on a fixed price basisand purchasing corn and natural gas futures contracts. In addition, it is expect that, tomitigate our ethanol price risk, we will sell a portion of our future production underfixed price and indexed contracts.  Should we be successful in managing our exposureto commodity price fluctuations, we expect that our operating results will be lessvolatile.  There is no assurance that we will be successful in these efforts. |
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| - | Seek Beneficial Alternative Technologies.  Our management intends to investigate thefeasibility of implementing, at some time in the future, new technologies that wouldserve to augment or replace natural gas usage.  It is expected that these technologieswould allow us to reduce our energy costs.  Capital costs and engineering issues mustbe adequately addressed prior to any implementation of any such technology. |
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| - | Seek to Expand Market Demand for Ethanol.  As our rate of growth and our access tocapital permit, our management intends to take actions it believes will createadditional demand for ethanol, including, investing in new technologies that useethanol and employing institutional advertising that focuses on, and promotes the useof, ethanol. |
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| - | Pursue Potential Acquisition Opportunities.  Assuming that we have capital available,we believe that there exist opportunities for expansion of our business throughacquisitions will be available.  Such an acquisition could involve ethanol production,storage or distribution facilities and related infrastructure, as well as potential facilitysites under development. |
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| In Particular.  It is likely that any ethanol production facility owned by us will use corn feedstock.The distiller’s grains byproducts, which are the remnants of the corn after the ethanol-producingstarch is removed, will be sold to dairies, cattle lots and hog operations as a valuable protein feedsupplement. |
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| We intend to have our plants embody the latest available technology that fractionates the corn intomore value-added products that allow the value of the Dried Distillers Grain with Solubles(DDGS) to increase significantly over the current value.  Also, where possible, we intend tointegrate new technologies that allow for improved natural gas consumption into our plantfacilities.  If beneficial, we intend to implement biomass boilers and/or anaerobic digestion topromote increased operating efficiency at a particular plant.  Also, we intend that each productionfacility be designed or re-engineered to accommodate new ethanol feed stocks, as the economicschange among the various feedstock commodities. |
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| Industry Overview |
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| Ethanol is marketed across the U.S. as a gasoline blend component that serves as a clean airadditive, an octane enhancer and a renewable fuel resource. It is blended with gasoline (i) as anoxygenate to help meet fuel emission standards, (ii) to improve gasoline performance byincreasing octane levels and (iii) to extend fuel supplies.  Also, a small amount of ethanol is usedas E85, a renewable fuels-driven blend comprised of up to 85% ethanol.  We expect that the useof ethanol as E85 will continue to grow. |
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| Historically, the principal factors affecting the price of ethanol are: |
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| - | The price of gasoline.  The price of ethanol over the long term has moved in relation to theprice of gasoline, which closely follows the price of oil. |
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| - | Federal ethanol tax incentives.  The Volumetric Ethanol Excise Tax Credit (“VEETC”)enables refiners and blenders to pay a premium for ethanol relative to the price of gasoline.For most of 2007, ethanol traded at a price that was at or below the cost of wholesalegasoline. |
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| - | Supply and Demand Fundamentals of Ethanol.  The ethanol industry has experienced rapidgrowth in supply capacity and demand, in recent years.  During periods when supply hasexceeded demand, the price of ethanol has tended to drop below the cost of wholesalegasoline plus the value of the VEETC. During periods when demand has exceeded supply,the price of ethanol tended to be at or above the cost of wholesale gasoline plus the valueof the VEETC. |
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| According to recent industry reports, approximately 99% of domestic ethanol is produced fromcorn fermentation, as of December 31, 2007, and, as such, is primarily produced in theMidwestern corn-growing states. The principal factor affecting the cost to produce ethanol is theprice of corn. |
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| The U.S. fuel ethanol industry has experienced rapid growth, increasing from 1.3 billion gallonsof production in 1997 to approximately 6.5 billion gallons produced in 2007, with an annualproduction capacity of 7.5 billion gallons at the end of 2007.  Ethanol blends accounted for nearly5% of the U.S. gasoline supply in 2007.  Increases in ethanol demand have been driven by recenttrends as more fully described below: |
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| - | Mandated usage of renewable fuels.  The growth in ethanol usage has been supported byregulatory requirements dictating the use of renewable fuels, including ethanol. TheEnergy Independence and Security Act of 2007 signed into law on December 19, 2007,increased the mandated minimum use of renewable fuels to 9 billion gallons in 2008 (upfrom a 5.4 billion gallon requirement, which was the previous mandated 2008 requirementunder the Energy Policy Act of 2005). The mandated usage of renewable fuels increasesto 36 billion gallons in 2022. The upper mandate for corn based ethanol is 15 billiongallons by 2015. |
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| - | Emission reduction.  Ethanol is an oxygenate which, when blended with gasoline, reducesvehicle emissions. Ethanol's high oxygen content burns more completely, emitting fewerpollutants into the air. Ethanol demand increased substantially beginning in 1990 whenfederal law began requiring the use of oxygenates (such as ethanol or methyl tertiary butylether ("MTBE")) in RFG in cities with unhealthy levels of air pollution on a seasonal oryear round basis. Although the federal oxygenate requirement was eliminated in May 2006as part of the Energy Policy Act of 2005, oxygenated gasoline continues to be used inorder to help meet separate federal and state air emission standards. The refining industryhas all but abandoned the use of MTBE, a competing product to ethanol, making ethanolthe primary clean oxygenate currently used. |
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| - | Octane enhancer.  Ethanol, with an octane rating of 113, is used to increase the octanevalue of gasoline with which it is blended, thereby improving engine performance. It isused as an octane enhancer both for producing regular grade gasoline from lower octaneblending stocks (including both reformulated gasoline blendstock for oxygenate blending("RBOB") and conventional gasoline blendstock for oxygenate blending ("CBOB")), andfor upgrading regular gasoline to premium grades. |
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| - | Fuel stock extender.  According to the Energy Information Administration, while domesticpetroleum refinery output has increased by approximately 28% from 1980 to 2006,domestic gasoline consumption has increased 40% over the same period. By blendingethanol with gasoline, refiners are able to expand the volume of the gasoline they are ableto sell. |
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| - | Growth in E85 usage.  E85 is a blended motor fuel containing 85% ethanol and 15%gasoline. The sale of E85 fuel has historically been less than 1% of the ethanol market(and less than 0.25% of the ethanol we produce). Its growth has been limited by both theavailability of E85 fuel to consumers (as of December 31, 2007, only 1,441 gasolinestations across the U.S. sold E85), and by the number of automobiles capable of using thefuel (approximately 6 million at December 31, 2007). However, the Energy Independenceand Security Act of 2007 increased the incentives available to stations which install E85capable equipment, while automobile manufacturers have significantly increased thenumber and models of cars able to use E85. These two factors point to a potential growthin the consumption of E85 in future years. |
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| Demand for Ethanol |
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| Our management believes that the ethanol market will grow as a result of existing favorableeconomic circumstances; the replacement of methyl tertiary-butyl ether (MTBE); a shortage ofdomestic petroleum refining capacity; geopolitical concerns; recent federal legislation, includingfederally mandated renewable fuel usage.  Our management also believes that E85 will, over time,become increasingly important as an alternative to unleaded gasoline. |
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| Supply of Ethanol |
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| Production in the ethanol industry remains fragmented. According to the RFA, while domesticethanol production increased from 1.3 billion gallons in 1997 to a current production capacity ofapproximately 5.4 billion gallons, the top five producers accounted for approximately 35% of theindustry’s total estimated production capacity, as of the last quarter of 2006.  The remainingproduction is generated by a large number of smaller producers and farmer-owned cooperatives,most with production of 50 million gallons per year (MMGY) or less. Currently, there is an excessin the U.S. ethanol production capacity. |
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| Currently, most U.S. ethanol is produced from corn grown in Illinois, Iowa, Minnesota, Nebraskaand South Dakota, where corn is abundant.  In addition to corn, the production process employsnatural gas or, in some cases, coal to power the production facilities.  Proximity to sufficientlow-cost corn (or other feedstock) and natural gas supply are important competitive factors forethanol producers. |
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| Ethanol is typically either produced by a dry-milling or wet-milling process.  Although the twoprocesses feature numerous technical differences, the primary operating trade-off of thewet-milling process is a higher co-product yield in exchange for a lower ethanol yield. Dry-millingethanol production facilities constitute the substantial majority of new ethanol production facilitiesbeing constructed in the past five years because of the increased efficiencies and lower capitalcosts of dry-milling technology. Dry-mill ethanol facilities typically produce between five and 50MMGY, with newer dry-mill facilities producing over 100 MMGY. The largest ethanolproduction facilities are wet-mill facilities that have capacities of 200 to 300 MMGY.Approximately 80% of the ethanol production capacity is generated from dry-mill facilities, withapproximately 20% from wet-mill facilities.  It is our intention to construct and operate, orpurchase, dry-mill facilities. |
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| The east coast and west coast markets in the U.S. consume in excess of 50% of produced ethanol,in large measure due to stricter air quality requirements in large parts of those markets.  Theprimary means of transporting ethanol from the Midwest to the coastal markets is by railtransportation.  The movement of ethanol via pipeline is limited as a result of the tendency ofethanol to absorb water and other impurities found in the pipelines, logistical limitations ofexisting pipelines and limited volumes of ethanol that need to be transported.  Barges and trucksare also used in the transportation of ethanol. |
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| Ethanol Production Process |
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| In the dry-mill process of converting corn into ethanol, each bushel of corn yields approximately2.8 gallons of ethanol and approximately 18 pounds of distillers grains. |
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| Ethanol Co-Products. |
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| Dried Distillers Grain with Solubles (DDGS).  A co-product of dry-mill ethanol production,DDGS is a high-protein and high-energy animal feed that is sold primarily as an ingredient in beefand dairy cattle feed.  DDGS consists of the concentrated nutrients remaining after the starch incorn is converted to ethanol. |
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| Wet Distillers Grains with Solubles (WDGS).  WDGS is similar to DDGS, except that the finaldrying stage applied to DDGS is bypassed and the product is sold as a wet feed.  WDGS is anexcellent livestock feed with better nutritional characteristics than DDGS.  However, higher costsof storage and transportation are associated with WDGS. |
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| Corn Oil.  Corn oil can be produced as a co-product of ethanol production by installing equipmentto separate the oil from the distillers grains during the production process.  Corn oil can be soldas an animal feed and commands higher prices than DDGS.  It can also be used to producebiodiesel, a clean burning alternative fuel that can be used in diesel engines with petroleum dieselto lower emissions and improve lubricity. |
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| Raw Material Supply and Pricing; Risk Management |
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| Our management will seek to mitigate our exposure to commodity price fluctuations bypurchasing a portion of our corn requirements on a fixed price basis and by purchasing corn andnatural gas futures contracts.  To mitigate ethanol price risk, our management intends to sell aportion of our future production under fixed price and indexed contracts.  It can be expected thatour indexed contracts will be referenced to a futures contract, such as unleaded gasoline on theNYMEX, and that we may hedge a portion of the price risk associated with index contracts byselling exchange-traded unleaded gasoline contracts.  Our management believes this strategy willreduce somewhat the volatility of our operating results.  However, no assurances can be made inthis regard. |
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| Marketing |
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| During the early years of our operations, we intend to have agreements with one or morecompanies for the marketing, including billing, receipt of payment and other administrativeservices, for all of the ethanol that we produce.  In addition, we will have marketing agreementsfor the DDGS and carbon dioxide generated by a facility. |
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| Should we ever determine to market and sell our own ethanol, we will be required to establish ourown marketing, distribution, transportation and storage infrastructure.  Involved in thisundertaking would be obtaining sufficient numbers of railcars and storage depots near ourcustomers and at other strategic locations to ensure efficient delivery of our finished ethanolproduct.  Also, we would be required to hire or retain an outside marketing and sales force andlogistical and other operational personnel to staff adequately our distribution activities. |
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| With respect to our distillers grains, we expect that they will be sold locally for use as animalfeed, during the first years of our operations. |
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| Competition |
|-------------|

| The market in which we will be selling our ethanol is highly competitive.  According to the RFA,world ethanol production rose to 12 billion gallons in 2005.  Non-U.S. ethanol accounted for 65%of world production.  The U.S. and Brazil are the world’s largest producers of ethanol.  Currently,industry capacity in the U.S. approximated 4.5 BGY, with an additional 2.2 BGY of capacityunder construction. The ethanol industry in the U.S. consists of more than 90 production facilitiesand is primarily corn based, while the Brazilian ethanol production is primarily sugar cane based.During 2006, the top ten producers accounted for approximately 45% of the ethanol productioncapacity in the U.S., according to the RFA. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| The largest U.S. competitors are Archer Daniels Midland Company, VeraSun Energy Corporation,Aventine Renewable Energy Holdings, Inc. and Cargill, Inc.  The industry is otherwise highlyfragmented, with many small, independent firms and farmer-owned cooperatives constituting therest of the market.  We cannot assure you that we will be able to compete successfully in thishighly competitive and fragmented market. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| We believe that our ability to compete successfully in the ethanol production industry depends onmany factors, including the following principal competitive factors: (a) price, (b) reliability of ourproduction processes and delivery schedule and (c) volume of ethanol produced and sold. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| With respect to distillers grains (DDGS and WDGS), we will compete primarily with otherethanol producers, as well as a number of large and small suppliers of competing animal feed.  Webelieve the principal competitive factors are price, proximity to purchasers and product quality.We cannot assure you that we will be able to compete successfully in this market. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Legislation |
|-------------|

| The Energy Independence and Security Act of 2007.  On December 19, 2007, the EnergyIndependence and Security Act of 2007 was enacted into law.  This law significantly increases themandated usage of renewable fuels (ethanol, bio-diesel or any other liquid fuel produced frombiomass or biogas). The law increases the renewable fuels standard established originally underthe Energy Policy Act of 2005 to 36 billion gallons by 2022, of which the mandate for corn-basedethanol is limited to 15 billion gallons by 2015. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| The Federal Ethanol Tax Incentive Program.  First passed in 1979, the VEETC program allowsgasoline distributors who blend ethanol with gasoline to receive a federal excise tax credit for eachgallon of ethanol they blend. The federal Transportation Efficiency Act of the 21st Century, orTEA-21, extended the ethanol tax credit first passed in 1979 through 2007. The American JobsCreation Act of 2004 extended the subsidy again to 2010 by allowing distributors to take a $0.51excise tax credit for each gallon of ethanol they blend. We cannot give assurance that the taxincentives will be renewed in 2010 or, if renewed, on what terms they will be renewed. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Federal Tariff on Imported Ethanol.  In 1980, Congress imposed a tariff on foreign-producedethanol to make it more expensive than domestic supplies derived from corn. This tariff wasdesigned to protect the benefits of the federal tax subsidies for U.S. farmers. The tariff wasoriginally $0.60 per gallon, in addition to a 3.0% ad valorem duty. The tariff was subsequentlylowered to $0.54 per gallon and was not adjusted completely in sync with the change in theblending credit. On December 20, 2006, the $0.54 per gallon tariff on foreign-produced ethanolwas extended until January 1, 2009. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ethanol imports from 24 countries in Central America and the Caribbean Islands are exempt fromthis tariff under the Caribbean Basin Initiative (CBI), in order to encourage economic developmentin that region. Under the terms of the CBI, member nations may export ethanol into the U.S. upto a total limit of 7% of U.S. production per year (with additional exemptions from ethanolproduced from feedstock in the Caribbean region over the 7% limit). In 2006, there were alsosignificant imports of ethanol from non-CBI countries. Although these imports were subject tothe tariff, significant increases in the price of ethanol in 2006 made the importation of ethanolfrom non-CBI countries profitable, in spite of the tariff. During 2007, there were no materialimports of ethanol into the U.S.  In the past, significant imports of ethanol into the U.S. have hada negative effect on ethanol prices. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Use of Fuel Oxygenates.  Ethanol is used by the refining industry as a fuel oxygenate, which,when blended with gasoline, allows engines to burn fuel more completely and reduce emissionsfrom motor vehicles. The use of ethanol as an oxygenate had been propelled by regulatory factors,specifically two programs in the federal Clean Air Act Amendments of 1990, that required the useof oxygenated gasoline in areas with unhealthy levels of air pollution. Although the federaloxygenate requirements for reformulated gasoline included in the Clean Air Act were completelyeliminated on May 5, 2006, by the Energy Policy Act of 2005, refiners continue to use oxygenatedgasoline in order to meet continued federal and state fuel emission standards. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| State Mandates.  Several states, including Missouri and Oregon, have enacted mandates thatcurrently require ethanol blends of 10% ethanol in motor fuel sold within the state. Another state,Minnesota, has a 20% renewable fuel mandate that goes into effect in 2012. These mandates serveto increase demand for ethanol. As more states consider mandates, or if existing mandates arerelaxed or eliminated, the demand for ethanol can be affected. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Environmental Matters |
|-----------------------|

| Once established, our ethanol production operations will be subject to various federal, state andlocal environmental laws and regulations, including those relating to the discharge of materialsinto the air, water and ground; the generation, storage, handling, use, transportation and disposalof hazardous materials; and the health and safety of our employees. These laws, regulations andpermits also can require expensive pollution control equipment or operational changes to limitactual or potential impacts to the environment. A violation of these laws and regulations or permitconditions can result in substantial fines, natural resource damage, criminal sanctions, permitrevocations and/or facility shutdowns. We do not anticipate a material adverse effect on ourbusiness or financial condition as a result of our compliance with these requirements. Currently,we cannot predict whether we will incur material capital expenditures for environmental controls,beyond the initial construction costs. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| There is a risk of liability for the investigation and cleanup of environmental contamination ateach of the properties that we own or operate and at off-site locations where we arrange for thedisposal of hazardous substances. If these substances have been or are disposed of or released atsites that undergo investigation and/or remediation by regulatory agencies, we may be responsibleunder CERCLA or other environmental laws for all or part of the costs of investigation and/orremediation and for damage to natural resources. We may also be subject to related claims byprivate parties alleging property damage and personal injury due to exposure to hazardous or othermaterials at or from these properties. Some of these matters may require us to expend significantamounts for investigation and/or cleanup or other costs. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| In addition, new laws, new interpretations of existing laws, increased governmental enforcementof environmental laws or other developments could require us to make additional significantexpenditures.  Continued government and public emphasis on environmental issues can beexpected to result in increased future investments for environmental controls at our ongoingoperations. Present and future environmental laws and regulations (and related interpretations)applicable to our then-current operations, more vigorous enforcement policies and discovery ofcurrently unknown conditions may require substantial capital and other expenditures.  Our airemissions will be subject to the federal Clean Air Act, the federal Clean Air Act Amendments of1990 and similar state and local laws and associated regulations. The U.S. EPA has promulgatedNational Emissions Standards for Hazardous Air Pollutants, or NESHAP, under the federal CleanAir Act that could apply to facilities that we may own or operate, if the emissions of hazardousair pollutants exceed certain thresholds.  Because other domestic ethanol manufacturers will havesimilar restrictions, however, we believe that compliance with more stringent air emission controlor other environmental laws and regulations is not likely to materially affect our competitiveposition. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Employees |
|-----------|

| We currently have one employee, who is also an officer.  We expect that we will hire non-management employees as such time as we complete an acquisition of one or more ethanol plants.We will continue to retain the services of independent contractors and outside professionals onan as-needed basis. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| Item 2. | Description of Property |
|---------|-------------------------|

| We lease a small office in Johnston, Iowa, at a monthly rental of $760.  We own office equipmentnecessary to conduct our current business. |
|--------------------------------------------------------------------------------------------------------------------------------------------|

| We own approximately 150 acres of real property on which we intend to construct the Manchesterfacility. |
|---------------------------------------------------------------------------------------------------------|

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

| Item 3. | Legal Proceedings |
|---------|-------------------|

| We are not currently involved in any legal proceedings. |
|---------------------------------------------------------|

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

| Item 4. | Submission of Matters to Vote of Security Holders |
|---------|---------------------------------------------------|

| No matter was submitted to our shareholders during the last three months of 2007. |
|-----------------------------------------------------------------------------------|

| In March 2007, holders of approximately 69.42% of our common stock, acting by written consentin lieu of a meeting, approved a change of our corporate name from ICrystal, Inc. to “ALL Fuels& Energy Company”, which name change occurred on May 3, 2007. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| In April 2007, holders of approximately 60% of our common stock, acting by written consent inlieu of a meeting, approved an amendment to our amended and restated certificate ofincorporation, whereby our authorized capital would be increased to 700,000,000 shares of $0.01par value common stock and 50,000,000 shares of $0.01 par value preferred stock.  It is expectedthat such amendment will be filed in the near future. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| PART II |
|---------|

| Item 5. | Market for Common Equity and Related Stockholder Matters |
|---------|----------------------------------------------------------|

| Market Information |
|--------------------|

| Our common stock is quoted on the OTC Bulletin Board, under the symbol “AFSE”.  Previously,our common stock has been quoted on the OTC Bulletin Board and Pink Sheets, under the symbol“ICRI”.  The table below sets forth, for the periods indicated, the high and low bid prices for ourcommon stock, as reported by the OTC Bulletin Board and Pink Sheets, as the case may be. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Quarter Ended |   | HighPrice * |   | Low Price* |   |
|--------|---------------|--------|-------------|--------|------------|--------|

|   | March 31, 2006 |   | $.10 |   | $.08 |   |
|--------|----------------|--------|------|--------|------|--------|

|   | June 30, 2006 |   | $.12 |   | $.08 |   |
|--------|---------------|--------|------|--------|------|--------|

|   | September 30, 2006 |   | $.30 |   | $.08 |   |
|--------|--------------------|--------|------|--------|------|--------|

|   | December 31, 2006 |   | $.51 |   | $.16 |   |
|--------|-------------------|--------|------|--------|------|--------|

|   | March 31, 2007 |   | $.80 |   | $.16 |   |
|--------|----------------|--------|------|--------|------|--------|

|   | June 30, 2007 |   | $2.00 |   | $.43 |   |
|--------|---------------|--------|-------|--------|------|--------|

|   | September 30, 2007 |   | $1.55 |   | $.55 |   |
|--------|--------------------|--------|-------|--------|------|--------|

|   | December 31, 2007 |   | $1.05 |   | $.48 |   |
|--------|-------------------|--------|-------|--------|------|--------|

|   | March 31, 2008 |   | $.77 |   | $.40 |   |
|--------|----------------|--------|------|--------|------|--------|

|  * | The foregoing prices have been adjusted to reflect a (a) one-for-seventeenreverse split of our common stock occurring in September 2004 and (b) a one-share-for-every-two-shares forward split of our common stock occurring inMay 2007. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| You should note that our common stock is likely to experience significant fluctuations in its priceand trading volume.  We cannot predict the future trading patterns of our common stock. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Holders |
|---------|

| On April 11, 2008, the number of record holders of our common stock, excluding nominees andbrokers, was 259 holding 50,232,703 shares. |
|----------------------------------------------------------------------------------------------------------------------------------------|

| Dividends |
|-----------|

| We have never paid cash dividends on our common stock. We intend to re-invest any futureearnings into the Company for the foreseeable future. |
|-----------------------------------------------------------------------------------------------------------------------------------------------|

| Securities Authorized for Issuance Under Equity Compensation Plans |
|--------------------------------------------------------------------|

| Plan Category |   | Number ofsecurities to beissued uponexercise ofoutstandingoptions, warrantsand rights |   | Weightedaverage exerciseprice ofoutstandingoptions,warrants, andrights |   | Number ofsecuritiesremainingavailable forfuture issuance |
|---------------|--------|---------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------|--------|----------------------------------------------------------|

| Equity compensation plansapproved by securityholders |   | -0- |   | -0- |   | -0- |
|------------------------------------------------------|--------|-----|--------|-----|--------|-----|

| Equity compensation plansnot approved by securityholders |   | 850,000 |   | (1) |   | 1,600,000(2) |
|----------------------------------------------------------|--------|---------|--------|-----|--------|--------------|

| Individual CompensationArrangements |   | -0- |   | -0- |   | -0- |
|-------------------------------------|--------|-----|--------|-----|--------|-----|

| (1) | All outstanding options have an exercise price that is calculated using the volume weightedaverage price per share for the ten days immediately preceding the date of exercise. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | This figure represents the number of shares of our common stock, as of April 11, 2008,remaining available for issuance under our 2007 Stock Ownership Plan. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Recent Issuances of Unregistered Securities |
|---------------------------------------------|

| During the last three months of 2007, we issued unregistered securities, as follows: |
|--------------------------------------------------------------------------------------|

| 1. | (a) | Securities Sold. In October 2007, 50,000 shares of our common stock were issued. |
|----|-----|----------------------------------------------------------------------------------|

|   | (b) | Underwriter or Other Purchasers. Such shares of common stock were issued to KMCasey No. 1, LTD. |
|--------|-----|-------------------------------------------------------------------------------------------------|

|   | (c) | Consideration. Such shares of common stock were issued pursuant to a consultingagreement and were valued at $.85 per share, or $42,500, in the aggregate. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Exemption from Registration Claimed. These securities are exempt from registrationunder the Securities Act of 1933, as amended, pursuant to the provisions of Section4(2) thereof and Rule 506 thereunder, as a transaction not involving a public offering.This purchaser was a sophisticated investor capable of evaluating an investment in thecompany. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | (a) | Securities Sold. In December 2007, a total of 359,588 shares of our common stockwere sold. |
|----|-----|--------------------------------------------------------------------------------------------|

|   | (b) | Underwriter or Other Purchasers. Such shares of common stock were sold to a totalof six private investors. |
|--------|-----|------------------------------------------------------------------------------------------------------------|

|   | (c) | Consideration. Such shares of common stock were sold for $.85 per share. |
|--------|-----|--------------------------------------------------------------------------|

|   | (d) | Exemption from Registration Claimed. These securities are exempt from registrationunder the Securities Act of 1933, as amended, pursuant to the provisions of Section4(2) thereof and Rule 506 thereunder, as a transaction not involving a public offering.Each of the purchasers was a sophisticated investor capable of evaluating aninvestment in the company. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.     | (a) | Securities Sold. In December 2007, 5,520,366 common stock purchase warrants topurchase a like number of shares of our common stock were issued.                                                                                                                                                                                                            |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (b) | Underwriter or Other Purchasers. Such common stock purchase warrants were issuedto James R. Broghammer.                                                                                                                                                                                                                                                    |
|   | (c) | Consideration. Such common stock purchase warrants were issued in payment ofconsulting services. The valuation of the common stock purchase warrants wasdetermined to be $6,070,213.                                                                                                                                                                       |
|   | (d) | Exemption from Registration Claimed. These securities are exempt from registrationunder the Securities Act of 1933, as amended, pursuant to the provisions of Section4(2) thereof and Rule 506 thereunder, as a transaction not involving a public offering.This purchaser was a sophisticated investor capable of evaluating an investment inour company. |
|   | (e) | Terms of Conversion or Exercise. The exercise price of the common stock purchasewarrants is $.55 per share. All of the common stock purchase warrants are exercisableuntil November 29, 2017.                                                                                                                                                              |

| 4.     | (a) | Securities Sold. In December 2007, 5,520,366 common stock purchase warrants topurchase a like number of shares of our common stock were issued.                                                                                                                                                                                                            |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (b) | Underwriter or Other Purchasers. Such common stock purchase warrants were issuedto Scott D. Zabler.                                                                                                                                                                                                                                                        |
|   | (c) | Consideration. Such common stock purchase warrants were issued in payment ofconsulting services. The valuation of the common stock purchase warrants wasdetermined to be $6,070,213.                                                                                                                                                                       |
|   | (d) | Exemption from Registration Claimed. These securities are exempt from registrationunder the Securities Act of 1933, as amended, pursuant to the provisions of Section4(2) thereof and Rule 506 thereunder, as a transaction not involving a public offering.This purchaser was a sophisticated investor capable of evaluating an investment inour company. |
|   | (e) | Terms of Conversion or Exercise. The exercise price of the common stock purchasewarrants is $.55 per share. All of the common stock purchase warrants are exercisableuntil November 29, 2017.                                                                                                                                                              |

| 5.     | (a) | Securities Sold. In December 2007 and January 2008, a total of 150,000 commonstock purchase warrants to purchase a like number of shares of our common stockwere issued.                                                                                                                                                                                   |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (b) | Underwriter or Other Purchasers. Such common stock purchase warrants were issuedto K.M. Casey No. 1, LTD.                                                                                                                                                                                                                                                  |
|   | (c) | Consideration. Such common stock purchase warrants were issued pursuant to theterms of a consulting agreement.                                                                                                                                                                                                                                             |
|   | (d) | Exemption from Registration Claimed. These securities are exempt from registrationunder the Securities Act of 1933, as amended, pursuant to the provisions of Section4(2) thereof and Rule 506 thereunder, as a transaction not involving a public offering.This purchaser was a sophisticated investor capable of evaluating an investment inour company. |
|   | (e) | Terms of Conversion or Exercise. The exercise price of the common stock purchasewarrants is $.10 per share.                                                                                                                                                                                                                                                |

| Subsequent to December 31, 2007, we have issued unregistered securities, as follows: |
|--------------------------------------------------------------------------------------|

| 1. | (a) | Securities Sold. In January 2008, 500,000 shares of our common stock were issued. |
|----|-----|-----------------------------------------------------------------------------------|

|   | (b) | Underwriter or Other Purchasers. Such shares of common stock were issued to K.M.Casey No. 1, LTD. |
|--------|-----|---------------------------------------------------------------------------------------------------|

|   | (c) | Consideration. Such shares of common stock were issued pursuant to a consultingagreement and were valued at $.54 per share, or $270,000, in the aggregate. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Exemption from Registration Claimed. These securities are exempt from registrationunder the Securities Act of 1933, as amended, pursuant to the provisions of Section4(2) thereof and Rule 506 thereunder, as a transaction not involving a public offering.This purchaser was a sophisticated investor capable of evaluating an investment in thecompany. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | (a) | Securities Sold. In January 2008, 500,000 shares of our common stock were issued. |
|----|-----|-----------------------------------------------------------------------------------|

|   | (b) | Underwriter or Other Purchasers. Such shares of common stock were issued to DannyChan. |
|--------|-----|----------------------------------------------------------------------------------------|

|   | (c) | Consideration. Such shares of common stock were issued pursuant to a consultingagreement and were valued at $.54 per share, or $270,000, in the aggregate. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Exemption from Registration Claimed. These securities are exempt from registrationunder the Securities Act of 1933, as amended, pursuant to the provisions of Section4(2) thereof and Rule 506 thereunder, as a transaction not involving a public offering.This purchaser was a sophisticated investor capable of evaluating an investment in thecompany. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| Item 6. | Management’s Discussion and Analysis of Financial Condition and Results ofOperations |
|---------|--------------------------------------------------------------------------------------------|

| Years Ended December 31, 2007 and 2006 |
|----------------------------------------|

| During 2006, we had no revenues and we did not engage in active business operations untilNovember 2006, when we started a new web page publishing business, which was discontinuedin early 2007.  During 2007, we acquired ALL Energy Company and actively pursued an ethanol-related business plan.  We had no revenues during 2007. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Background |
|------------|

| In January 2007, there occurred a change in control with respect to our company and newmanagement was installed.  Our new management has determined that we will pursue a plan ofbusiness whereby we would become a producer of ethanol and its co-products. To that end, inApril 2007, we consummated a plan and agreement of reorganization with ALL Energy Company,a development-stage ethanol company.  Our management and that of ALL Energy Company wasand is the same. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Critical Accounting Policies |
|------------------------------|

| While we believe that the factors considered provide a meaningful basis for the accountingpolicies applied in the preparation of the consolidated financial statements, we cannot guaranteethat our estimates and assumptions will be accurate. If such estimates and assumptions prove tobe inaccurate, we may be required to make adjustments to these estimates in future periods. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Asset Impairment.  Statement of Financial Accounting Standards No. 144 (“SFAS No. 144”)requires that long-lived assets be considered impaired, if the sum of the expected future cash flows(undiscounted and without interest charges) is less than the carrying amount of those assets.  Ifimpairment exists, an impairment loss is recognized, by a charge against earnings, equal to theamount by which the carrying amount of the assets exceeds the fair value of the property. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Litigation and Tax Assessments.  Should we become involved in lawsuits, we intend to assess thelikelihood of any adverse judgments or outcomes of any of these matters as well as the potentialrange of probable losses. A determination of the amount of accrual required, if any, for thesecontingencies will be made after careful analysis of each matter. The required accrual may changefrom time to time, due to new developments in any matter or changes in approach (such as achange in settlement strategy) in dealing with these matters. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Additionally, in the future, we may become engaged in various tax audits by federal and stategovernmental authorities incidental to our business activities. We anticipate that we will recordreserves for any estimated probable losses for any such proceeding. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Stock-Based Compensation.  The Company accounts for stock based compensation in accordancewith Statement of Financial Accounting Standards (“SFAS”) No. 123-R, “Share-Based Payment”.This Statement requires that transactions in which a company exchanges its equity instrumentsfor goods or services be accounted for using the fair-value method. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Plan of Operations |
|--------------------|

| Unless and until we obtain the significant amount of capital required to acquire one or moreexisting ethanol production facilities or to construct the Manchester facility, our capitalexpenditures during the remainder of 2008 will not be significant. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Should we obtain the capital necessary to acquire one or more ethanol production facilities, wewould, immediately upon completion of such acquisition transaction, become an ethanol producer. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Should we obtain the capital necessary only to construct the Manchester facility, our activities willbe focused on completing that construction project on time and under budget, as we will notderive revenues from the Manchester facilities until construction is completed, a period ofbetween 14 and 18 months from the date construction begins. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| During the remainder of 2008, we intend to commit a small portion of our current capital to ourrecently announced alliance with a cellulosic biotech company.  It is likely that this venture willrequire approximately $1.5 million over the next 24 months to complete the development of upto ten market-ready enzymes.  The needed funding will be sought from third parties.  Currently,there is no arrangement with any person for the needed funding.  There is no assurance that wewill be successful in developing and commercializing any enzyme products. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Management’s Plans Relating to Future Liquidity |
|-------------------------------------------------------|

| We currently possess approximately $612,888 in cash, a level of capital sufficient to sustain ourcurrent operations for more than the next 12 months.  However, we will require substantialadditional capital to purchase one or more existing ethanol production facilities or to construct theManchester facility.  Our management believes it will be able to secure the financing, in the formof debt, equity or a combination thereof, necessary to complete these opportunities.  To this end,we have retained Trinity Capital, Houston, Texas, as our investment banker.  In addition, we areseeking an investment partner for our enzyme venture.  To date, we have not received acommitment for an equity investment or a loan in any amount.  Should we fail to obtain suchfinancing, our plan of business would likely be unsuccessful and we may be forced to ceaseoperations. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Capital Expenditures |
|----------------------|

| During 2007, we purchased approximately 150 acres of real property located in Manchester, Iowa,for $945,000 in cash.  We intend to construct the Manchester facility on this site. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Should we obtain the capital required to acquire an existing ethanol production facility or toconstruct the Manchester facility, our capital expenditures during the remainder of 2008 will notbe significant.  However, we cannot predict the exact amount of these potential expenditures. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| Item 7. | Financial Statements |
|---------|----------------------|

| The financial statements required to be furnished under this Item 7 are attached at the end of thisAnnual Report on Form 10-KSB. An index to our financial statements is also included below inItem 13(a)(2). |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| Item 8. | Changes In and Disagreements With Accountants on Accounting and FinancialDisclosure |
|---------|-------------------------------------------------------------------------------------|

| On February 14, 2007, we dismissed Mark Bailey & Associates, Ltd. as our independent auditor.At the time of the dismissal, there was no disagreement with respect to any matter of accountingprinciples or practices, financial statement disclosure or auditing scope or procedure.  On February14, 2007, we engaged Farmer, Fuqua & Huff, P.C. as our new independent auditor, to audit ourfinancial statements for the year ended December 31, 2004, and succeeding years.  The decisionto change auditors was unanimously approved by our board of directors. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| Item 8A. | Controls and Procedures |
|----------|-------------------------|

| In connection with the audit of our financial statements for the year ended December 31, 2007,an evaluation was performed by our President and Acting Chief Financial Officer of theeffectiveness of the design and operation of our disclosure controls and procedures. Based on thatevaluation, our management, including our President and Acting Chief Financial Officer,concluded that our disclosure controls and procedures were effective as of December 31, 2007.There have been no significant changes in our internal controls or in other factors that couldsignificantly affect internal controls subsequent to December 31, 2007. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Our management is responsible for establishing and maintaining adequate internal control overfinancial reporting. Internal control over financial reporting is defined in Rules 13a-15(f) and15d-15(f) under the Securities Exchange Act. Our management assessed the effectiveness of ourinternal control over financial reporting as of December 31, 2007, using the framework set forthin Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizationsof the Treadway Commission. Based upon this assessment, our management concluded that, asof December 31, 2007, our internal control over financial reporting was effective. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| This Annual Report does not include an attestation report of our registered public accounting firmregarding internal control over financial reporting.  Our management’s report was not subject toattestation by our registered public accounting firm, pursuant to temporary rules of the Securitiesand Exchange Commission that permit us to provide only management’s report in this AnnualReport. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| PART III |
|----------|

| Item 9. | Directors, Executive Officers, Promoters and Control Persons; Compliance withSection 16(a) of the Exchange Act |
|---------|----------------------------------------------------------------------------------------------------------------|

| Directors and Officers |
|------------------------|

| The following table sets forth the officers and directors of ALL Fuels & Energy Company. |
|----------------------------------------------------------------------------------------------|

|   | Name |   | Age |   | Position(s) |
|--------|------|--------|-----|--------|-------------|

|   | Dean E. Sukowatey |   | 55 |   | President, Secretary and Director |
|--------|-------------------|--------|----|--------|-----------------------------------|

|   | Brian K. Gibson |   | 41 |   | Treasurer and Director |
|--------|-----------------|--------|----|--------|------------------------|

|   | Steven J. Leavitt |   | 55 |   | Director |
|--------|-------------------|--------|----|--------|----------|

|   | Mark W. Leonard |   | 51 |   | Director |
|--------|-----------------|--------|----|--------|----------|

| Our current officers and directors serve until the next annual meeting of our board of directors oruntil their respective successors are elected and qualified.  All officers serve at the discretion ofour board of directors.  There exist no family relationships between our officers and directors.Certain information regarding the backgrounds of each of the officers and directors is set forthbelow. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Dean Sukowatey has served as president, secretary and a director of the Company sinceJanuary 2007, and has served in similar capacities for ALL Energy Company since itsinception in August 2006. He has 19 years’ experience on Wall Street as a broker, trader, fundmanager and consultant at several firms, including Merrill Lynch, Paine Webber, LehmanBrothers and A.G. Edwards. For more than the five years prior to becoming ALL Energy’spresident in August 2006, he managed two private funds and provided consulting andinvestment banking services. Mr. Sukowatey graduated from the University of Wisconsin witha B.S. degree in Microbiology. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Brian K. Gibson has served as treasurer and a director of the Company since January 2007,and has served in similar capacities for ALL Energy Company since January 2007.  He has,since 2000, served as CFO/Partner for StrataVizion, Inc. Mr. Gibson currently sits on theboard of directors for the Madison County (Iowa) Health Trust Foundation and for Tri-StarQuarries, LLC. Prior to founding StrataVizion, he was CFO/Owner of a commercial/industrialgeneral construction contractor. Mr. Gibson earned a B.A. degree in Finance from theUniversity of Iowa, Iowa City, Iowa. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Steven J. Leavitt has served as a director of the Company since January 2007, and has servedin a similar capacity for ALL Energy Company since January 2007.  He has, for more than thelast five years, served as a senior project manager for Frank Baxter Construction Co., wherehis duties have included overseeing the construction of numerous large-scale constructionprojects throughout the U.S. Mr. Leavitt earned a Bachelor of Science degree in ConstructionEngineering from Iowa State University, Ames, Iowa. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Mark W. Leonard has served as a director of the Company since January 2008.  He has, since1984, owned and operated Leo-Land, Inc., a private cattle enterprise based in Holstein, Iowa.Also, from June 2004 the present, Mr. Leonard has owned and operated Ag-Com Financial,a commercial lending company based in Holstein, Iowa.  From January 1998 through June2004, Mr. Leonard served as Vice President of Union National Bank, Correctionville, Iowa.Mr. Leonard earned a B.S. degree in Animal Science from Iowa State University, Ames, Iowa. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Founders |
|----------|

| The founders of our subsidiary, ALL Energy Company, are Dean Sukowatey and Sun Bear, LLC,a Texas limited liability company owned by Scott B. Gann.  Information with respect to Mr.Sukowatey’s background appears above. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Scott B. Gann has been engaged in the stock brokerage business for over 14 years with severalnationally-known brokerage firms.  Currently, Mr. Gann is Managing Director of Investmentsat Sanders, Morris, Harris, Inc., in its Dallas, Texas, office.  Mr. Gann is an officer and adirector of Humanity Capital Holding Corp., a company that files periodic reports under theSecurities Exchange Act of 1934.  During his career in the financial industry, Mr. Gann hasadvised public and private companies and high-profile investors, provided investment bankingadvice and performed money management services for private investors.  Mr. Gann is agraduate of Baylor University, Waco, Texas, where he earned a Bachelor of BusinessAdministration degree from the Hankamer School of Business.  Mr. Gann is a licensed stockbroker, holding Series 63, Series 7 and Series 65 licenses.  Mr. Gann is a defendant in alawsuit styled Securities and Exchange Commission, Plaintiff, v. Scott B. Gann and GeorgeB. Fasciano, Defendants, United States District Court, Northern District of Texas, DallasDivision, Case No. 305CV-063L.  In April 2008, the judge in this case found that Mr. Gannhad violated Section 10 of the Securities Exchange Act of 1934 and Rule 10b-5 thereunderwith respect to certain market timing practices in trading securities of certain mutual funds.The recently filed proposed judgment contains a permanent injunction restraining Mr. Gannfrom violating Section 10 of the Exchange Act and Rule 10b-5 thereunder, disgorgement ofMr. Gann’s profits and a civil monetary penalty.  Mr. Gann intends to appeal this judgment. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Board of Directors |
|--------------------|

| The Company’s full board meet on two occasions during 2007 and took action by unanimouswritten consent in lieu of a meeting on 17 occasions. |
|----------------------------------------------------------------------------------------------------------------------------------------------------|

| Audit Committee |
|-----------------|

| There currently does not exist an audit committee of our board of directors. However, our currentboard intends to form such a committee in the near future and will appoint an independent directorto serve on such committee who qualifies as and audit committee financial expert.  This personshall be independent (as that term is used in Item 7(d)(3)(iv) of Schedule 14A under the ExchangeAct). |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Compensation of Directors |
|---------------------------|

| Our outside directors are paid each calendar quarter for their services as directors.  Currently, eachof our outside directors is issued 5,000 shares of common stock each calendar quarter.  Theseshares are valued based on the then-current market price of our common stock. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Limitation of Liability and Indemnification |
|---------------------------------------------|

| Our amended and restated certificate of incorporation contains provisions limiting the liability ofdirectors. Our restated certificate of incorporation provides that a director will not be personallyliable to us or to our shareholders for monetary damages for any breach of fiduciary duty as adirector, but will continue to be subject to liability for the following: |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | any breach of the director’s duty of loyalty to us or to our shareholders; |
|---|----------------------------------------------------------------------------------|

| - | acts or omissions not in good faith or that involve intentional misconduct or a knowingviolation of law; |
|---|----------------------------------------------------------------------------------------------------------|

| - | unlawful payment of dividends or unlawful stock repurchases or redemptions; and |
|---|---------------------------------------------------------------------------------|

| - | any transaction from which the director derived an improper personal benefit. |
|---|-------------------------------------------------------------------------------|

| If Delaware law is amended to authorize corporate action further eliminating or limiting thepersonal liability of a director, then the liability of our directors will be eliminated or limited tothe fullest extent permitted by Delaware law, as so amended. Our restated certificate ofincorporation does not eliminate a director’s duty of care and, in appropriate circumstances,equitable remedies such as injunctive or other forms of non-monetary relief remain availableunder Delaware law. Our restated certificate of incorporation does not affect a director’sresponsibilities under any other laws, such as state or federal securities laws or state or federalenvironmental laws. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| In addition, we have entered into agreements to indemnify our directors and executive officers tothe fullest extent permitted under Delaware law, including the non-exclusivity provisions ofDelaware law, and under our bylaws, subject to limited exceptions. These agreements, amongother things, provide for indemnification of our directors and executive officers for fees, expenses,judgments, fines, and settlement amounts incurred by any of these persons in any action orproceeding to which any of those persons is, or is threatened to be, made a party by reason of theperson’s service as a director or officer, including any action by us, arising out of that person’sservices as our director or officer or that person’s services provided to any other company orenterprise at our request. We believe that these bylaw provisions and agreements are necessaryto attract and retain qualified persons as directors and officers. We also intend to maintain liabilityinsurance for our officers and directors. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| The limitation of liability and indemnification provisions in our restated certificate ofincorporation and bylaws may discourage shareholders from bringing a lawsuit against directorsfor breach of their fiduciary duties. They may also reduce the likelihood of derivative litigationagainst directors and officers, even though an action, if successful, might benefit us and ourshareholders. A shareholder’s investment may be adversely affected to the extent we pay the costsof settlement and damage awards against directors and officers pursuant to these indemnificationprovisions. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Compliance with Section 16(a) of the Exchange Act |
|---------------------------------------------------|

| Section 16(a) of the Securities Exchange Act of 1934, as amended, requires the registrant'sofficers and directors, and persons who own more than 10% of a registered class of the registrant'sequity securities, to file reports of ownership and changes in ownership of equity securities of theRegistrant with the Securities and Exchange Commission. Officers, directors and greater-than10% shareholders are required by the Securities and Exchange Commission  regulation to furnishthe registrant with copies of all Section 16(a) forms that they file. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Based solely upon a review of Forms 3 and 4 and amendments thereto furnished to us during ourmost recent fiscal year and Forms 5 and amendments thereto furnished to us with respect to ourmost recent fiscal year, no Section 16(a) forms were timely filed.  Each of our officers anddirectors has indicated that these reports will be filed in the near future. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| Item 10. | Executive Compensation |
|----------|------------------------|

| The following table sets forth certain compensation information for: (i) each person who servedas the chief executive officer of ALL Fuels & Energy Company at any time during the years endedDecember 31, 2007, 2006 and 2005, regardless of compensation level, and (ii) each of our otherexecutive officers, other than the chief executive officer, serving as an executive officer at anytime during 2007, 2006 and 2005.  The foregoing persons are collectively referred to herein as the“named executive officers”.  Compensation information is shown for the years ended December31, 2007, 2006 and 2005. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Summary Compensation Table |
|----------------------------|

| Name andPrincipal Position | Year | Salary($) | Bonus($) | StockAwards($) | OptionAwards($) | Non-EquityIncentive PlanCompensation($) | NonqualifiedDeferredCompensationEarnings($) | AllOtherCompensation($) | Total($) |
|----------------------------|------|-----------|----------|----------------|-----------------|-----------------------------------------|---------------------------------------------|-------------------------|----------|

| Dean E.Sukowatey | 2007 | 240,000 | --- | --- | --- | --- | --- | --- | 240,000 |
|------------------|------|---------|-----|-----|-----|-----|-----|-----|---------|

| President andActing ChiefFinancial Officer | 2006 | --- | --- | --- | --- | --- | --- | --- | --- |
|--------------------------------------------|------|-----|-----|-----|-----|-----|-----|-----|-----|

|   | 2005 | --- | --- | --- | --- | --- | --- | --- | --- |
|--------|------|-----|-----|-----|-----|-----|-----|-----|-----|

| Brian K. Gibson | 2007 | --- | --- | --- | --- | --- | --- | --- | --- |
|-----------------|------|-----|-----|-----|-----|-----|-----|-----|-----|

| Treasurer | 2006 | --- | --- | --- | --- | --- | --- | --- | --- |
|-----------|------|-----|-----|-----|-----|-----|-----|-----|-----|

|   | 2005 | --- | --- | --- | --- | --- | --- | --- | --- |
|--------|------|-----|-----|-----|-----|-----|-----|-----|-----|

| David Loflin | 2007 | --- | --- | 80,000 | --- | --- | --- | --- | 80,000 |
|--------------|------|-----|-----|--------|-----|-----|-----|-----|--------|

| Former Presidentand Acting ChiefFinancial Officer | 2006 | --- | --- | 76,500 | --- | --- | --- | --- | 76,500 |
|---------------------------------------------------|------|-----|-----|--------|-----|-----|-----|-----|--------|

|   | 2005 | --- | --- | --- | --- | --- | --- | --- | --- |
|--------|------|-----|-----|-----|-----|-----|-----|-----|-----|

| Waddell D.Loflin | 2007 | --- | --- | --- | --- | --- | --- | --- | --- |
|------------------|------|-----|-----|-----|-----|-----|-----|-----|-----|

| Former ExecutiveVice Presidentand Secretary | 2006 | --- | --- | 4,000 | --- | --- | --- | --- | 4,000 |
|---------------------------------------------|------|-----|-----|-------|-----|-----|-----|-----|-------|

|   | 2005 | --- | --- | --- | --- | --- | --- | --- | --- |
|--------|------|-----|-----|-----|-----|-----|-----|-----|-----|

| James Kaufman | 2007 | --- | --- | --- | --- | --- | --- | --- | --- |
|---------------|------|-----|-----|-----|-----|-----|-----|-----|-----|

| Former President | 2006 | --- | --- | --- | --- | --- | --- | --- | --- |
|------------------|------|-----|-----|-----|-----|-----|-----|-----|-----|

|   | 2005 | --- | --- | --- | --- | --- | --- | --- | --- |
|--------|------|-----|-----|-----|-----|-----|-----|-----|-----|

| Employment Contracts and Termination of Employment and Change-in-Control Agreements |
|-------------------------------------------------------------------------------------|

| We have not entered into any employment agreement with either of our officers.  However, ALLEnergy Company has entered into an employment agreement with Dean Sukowatey, who is ourcurrent president.  Mr. Sukowatey’s employment agreement has a term of seven years, ending inAugust 2013.  Mr. Sukowatey’s annual salary is $240,000.  In connection with his employmentagreement, Mr. Sukowatey executed an indemnity agreement, a confidentiality agreement and anagreement not to compete. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| We have no compensatory plan or arrangement that results or will result from the resignation,retirement or any other termination of an executive officer’s employment or from a change incontrol or a change in an executive officer’s responsibilities following a change in control. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Outstanding Option Awards at Year End |
|---------------------------------------|

| The following table provides certain information regarding unexercised options to purchasecommon stock, stock options that have not vested and equity-incentive plan awards outstandingat December 31, 2007, for each named executive officer. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Outstanding Equity Awards at Fiscal Year-End |
|----------------------------------------------|

|   | Option Awards | Stock Awards |
|--------|---------------|--------------|

| Name | Number ofSecuritiesUnderlyingUnexercisedOptions (#)Exercisable | Number ofSecuritiesUnderlyingUnexercisedOptions (#)Unex-ercisable | EquityIncentive PlanAwards:Number ofSecuritiesUnderlyingUnexercisedUnearnedOptions (#) | OptionExercisePrice | OptionExpirationDate | NumberofShares orUnits ofStockThatHaveNotVested(#) | MarketValue ofShares orUnits ofStockThatHaveNotVested($) | EquityIncentivePlanAwards:Number ofUnearnedShares, UnitsorOtherRightsThatHaveNotVested (#) | EquityIncentivePlanAwards:Market orPayoutValueofUnearnedShares, UnitsorOtherRightsThatHaveNotVested ($) |
|------|----------------------------------------------------------------|-------------------------------------------------------------------|----------------------------------------------------------------------------------------|---------------------|----------------------|----------------------------------------------------|----------------------------------------------------------|--------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|

| Dean E.Sukowatey | --- | --- | --- | --- | n/a | --- | n/a | --- | --- |
|------------------|-----|-----|-----|-----|-----|-----|-----|-----|-----|

| Brain K.Gibson | --- | --- | --- | --- | n/a | --- | n/a | --- | --- |
|----------------|-----|-----|-----|-----|-----|-----|-----|-----|-----|

| Steven J.Leavitt | --- | --- | --- | --- | n/a | --- | n/a | --- | --- |
|------------------|-----|-----|-----|-----|-----|-----|-----|-----|-----|

| Mark W.Leonard | --- | --- | --- | --- | n/a | --- | n/a | --- | --- |
|----------------|-----|-----|-----|-----|-----|-----|-----|-----|-----|

| Director Compensation |
|-----------------------|

| The following table sets forth the compensation paid to our directors for our fiscal years endedDecember 31, 2007, 2006 and 2005. |
|-----------------------------------------------------------------------------------------------------------------------------------|

| Director Compensation |
|-----------------------|

| Name | FeesEarnedor Paidin Cash($) | StockAwards($) | OptionAwards($) | Non-EquityIncentive PlanCompensation($) | NonqualifiedDeferredCompensationEarnings ($) | AllOtherCompensation($) | Total($) |
|------|-----------------------------|----------------|-----------------|-----------------------------------------|----------------------------------------------|-------------------------|----------|

| CURRENTDIRECTORS |   |
|------------------|--------|

| DeanSukowatey | --- | --- | --- | --- | --- | --- | --- |
|---------------|-----|-----|-----|-----|-----|-----|-----|

| Brian K.Gibson | --- | 15,000(1) | --- | --- | --- | --- | 15,000 |
|----------------|-----|-----------|-----|-----|-----|-----|--------|

| Steven J.Leavitt | --- | 15,000(1) | --- | --- | --- | --- | 15,000 |
|------------------|-----|-----------|-----|-----|-----|-----|--------|

| Mark W.Leonard | --- | --- | --- | --- | --- | --- | --- |
|----------------|-----|-----|-----|-----|-----|-----|-----|

| FORMERDIRECTORS |   |
|-----------------|--------|

| David Loflin | --- | --- | --- | --- | --- | --- | --- |
|--------------|-----|-----|-----|-----|-----|-----|-----|

| Waddell D.Loflin | --- | --- | --- | --- | --- | --- | --- |
|------------------|-----|-----|-----|-----|-----|-----|-----|

| James Kaufman | --- | --- | --- | --- | --- | --- | --- |
|---------------|-----|-----|-----|-----|-----|-----|-----|

| (1) | Stock awards to these directors were was made in 2007. |
|-----|--------------------------------------------------------|

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

| Item 11. | Security Ownership of Certain Beneficial Owners and Management and RelatedStockholder Matters |
|----------|-----------------------------------------------------------------------------------------------|

| The following table sets forth, as of the date hereof, information regarding beneficial ownershipof our capital stock by (i) each person, or group of affiliated persons, known by us to be thebeneficial owner of more than five percent of any class of our voting securities; (ii) each of ourdirectors; (iii) each of the named executive officers; and (iv) all directors and executive officersas a group.  Beneficial ownership is determined in accordance with the rules of the SEC, basedon voting or investment power with respect to the securities. In computing the number of sharesbeneficially owned by a person and the percentage ownership of that person, shares of commonstock underlying warrants held by that person are deemed to be outstanding if the warrants areexercisable within 60 days of the date hereof. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| All percentages in the following table are based on a total of 61,423,435 shares of common stockoutstanding as if the date hereof.  Except as indicated in the footnotes below, we believe, basedon information furnished to us, that the persons and entities named in the table below have solevoting and investment power with respect to all shares of common stock shown as beneficiallyowned by them. Unless otherwise indicated, the address for each of the shareholders in the tablebelow is c/o ALL Fuels & Energy Company, 6165 N.W. 86th Street, Johnston, Iowa 50131. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Beneficially Owned |   |
|--------|--------------------|--------|

| Name and Address of Beneficial Owner |   | Shares |   | Percent (1) |   |
|--------------------------------------|--------|--------|--------|-------------|--------|

| Dean E. Sukowatey |   | 9,515,534 |   | 15.49% |   |
|-------------------|--------|-----------|--------|--------|--------|

| Brian K. Gibson |   | 94,481 |   | * |   |
|-----------------|--------|--------|--------|---|--------|

| Steven J. Leavitt |   | 94,481 |   | * |   |
|-------------------|--------|--------|--------|---|--------|

| Mark W. Leonard |   | 744,034 |   | 1.21% |   |
|-----------------|--------|---------|--------|-------|--------|

| ALL Energy Company |   | 7,050,000 |   | 11.48% |   |
|--------------------|--------|-----------|--------|--------|--------|

| Sun Bear, LLC (3) |   | 8,219,808 |   | 13.38% |   |
|-------------------|--------|-----------|--------|--------|--------|

| James R. Broghammer |   | 8,219,808(2) |   | 13.38% |   |
|---------------------|--------|--------------|--------|--------|--------|

| Scott D. Zabler |   | 8,219,808(2) |   | 13.38% |   |
|-----------------|--------|--------------|--------|--------|--------|

| All directors, executive officers andfounders, including ALL EnergyCompany, as a group (6 persons) |   | 25,718,338 |   | 41.87% |   |
|----------------------------------------------------------------------------------------------------|--------|------------|--------|--------|--------|

| * | Less than 1% |
|---|--------------|

| (1) | Based on 61,423,435 shares of our common stock outstanding, which number of sharesincludes 11,190,732 shares underlying currently exercisable warrants. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Includes 5,520,366 shares underlying currently exercisable warrants. |
|-----|----------------------------------------------------------------------|

| (3) | Scott B. Gann is the owner of this entity and possesses voting and investment control ofthe shares owned by it.  Sun Bear, LLC is a founder of ALL Energy Company. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| Item 12. | Certain Relationships and Related Transactions, and Director Independence. |
|----------|----------------------------------------------------------------------------|

| 2008 |
|------|

| Director Bonuses.  During 2008, each of our directors, except for Dean E. Sukowatey, will beissued 5,000 per calendar quarter, in consideration of their services as a director.  These shareswill be valued at the then-current market price of our common stock. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| In January 2008, Mark W. Leonard was issued 50,000 shares of our common stock, inconsideration of his becoming a member of our board of directors.  These shares were valued at$30,000, in the aggregate. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2007 |
|------|

| Director Bonuses.  During 2007, two of our directors, Brian K. Gibson and Steven J. Leavitt, wereeach issued 15,000 shares of our common stock, in consideration of their services as a director.These shares were valued at the then-current market price of our common stock, an aggregatevalue of $30,000. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Change-in-Control Transaction.  In January 2007, there occurred a change in control of ALL Fuels& Energy Company. Pursuant to a stock purchase agreement, ALL Energy Company, a Delawarecorporation, purchased 7,050,000 shares, or 57.24%, of our then-outstanding common stock fromDavid Loflin. ALL Energy Company paid $150,000 for the 7,050,000 shares of our commonstock, which funds were derived from ALL Energy Company’s working capital. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Reorganization Agreement.  On April 9, 2007, we completed the acquisition of 100% of theoutstanding capital stock of ALL Energy Company, a Delaware corporation.  Pursuant to theacquisition agreement, we issued a total of 37,995,000 shares of our common stock to the ALLEnergy Company shareholders. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| In determining the number of shares of our common stock to be issued under the acquisitionagreement, our board of directors did not employ any standard valuation formula or any otherstandard measure of value. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Retention Bonus.  In January 2007, our former president, David Loflin, was issued 3,000,000shares our common stock, as a retention bonus for his agreeing to work as much as necessary forus to have the greatest opportunity to achieve success in establishing and expanding our start-upweb page publishing business.  Our board of directors believed it to be in our best interests andthose of our shareholders to compensate Mr. Loflin in this matter.  These shares were valued, forfinancial reporting purposes, at $.026 per share, or $80,000, in the aggregate. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ALL Energy Company - Stock Bonuses.  In connection with their becoming members of the boardof directors of ALL Energy Company, each of Brian K. Gibson and Steven J. Leavitt was issued5,000 shares of ALL Energy Company’s common stock, as a bonus.  These bonus shares werevalued by ALL Energy Company at $3.00 per share, or $30,000, in the aggregate. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Settlement Agreement.  In December 2007, we entered into a settlement agreement with ourcurrent president, Dean E. Sukowatey, our subsidiary, ALL Energy Company, our formerpresident, David Loflin, and our current legal counsel, Newlan & Newlan.  Pursuant to thesettlement agreement, each of the parties released any and all claims against each of the otherparties.  Also, Mr. Loflin agreed to tender for cancellation a total of 1,238,100 shares of ourcommon stock.  Further, the shares of our common stock owned by ALL Energy Company, Mr.Loflin and Newlan & Newlan are subject to certain lock-up provisions. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2006 |
|------|

| Retention Bonuses.  In September 2006, our former president, David Loflin, was issued 3,375,000shares of our common stock, as a bonus for his having served as our president withoutcompensation for a period of in excess of two years.  These shares were valued, for financialreporting purposes, at $.023 per share, or $76,500, in the aggregate.  In November 2006, ourformer vice president, Waddell D. Loflin, was issued 150,000 shares of our common stock, as abonus for his having served as our vice president without compensation for a period of in excessof two years.  These shares were valued, for financial reporting purposes, at $.023 per share, or$4,000, in the aggregate. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Purchase of Intangible Assets - Web Page Publishing.  In November 2006, we entered into, andconsummated, three separate asset purchase agreements, each of which relates to our acquiringcertain web site domains and Internet web pages associated therewith from their owners.  Weissued shares of our common stock in consideration of the web site domains and web pagesassociated therewith, as more particularly described below. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A. | We entered into one of the asset purchase agreements with James Kaufman, ourformer president. We issued 900,000 shares of our common stock to Mr. Kaufman, inconsideration of 53 web site domains and Internet web pages associated therewith. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | We entered into one of the asset purchase agreements with Tommy Loflin. Mr. Loflinis the adult son of our then-CEO, David Loflin. We issued 300,000 shares of ourcommon stock to Mr. Loflin, in consideration of 32 web site domains and Internet webpages associated therewith. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C. | We entered into one of the asset purchase agreements with David Loflin, our formerCEO and a former director.  We issued 750,000 shares of our common stock to Mr.Lolfin, in consideration of 35 web site domains and Internet web pages associatedtherewith. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| These web site domains and Internet web pages associated therewith have been assigned to aformer officer, pursuant to a settlement agreement. |
|-----------------------------------------------------------------------------------------------------------------------------------------------|

| In determining the number of shares of our common stock to be issued under the three separateasset purchase agreements, our board of directors did not employ any standard valuation formulaor any other standard measure of value. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ALL Energy Company - Pre-incorporation and Subscription Agreement.  The founders of ALLEnergy Company, Dean Sukowatey and Sun Bear, LLC, a Texas limited liability company,entered into a pre-incorporation agreement and subscription.  Under this agreement, each of thesefounders purchased all of their common stock of ALL Energy Company for nominalconsideration.  Further, this agreement requires that the shares of ALL Energy Company issuedthereunder to Mr. Sukowatey and Sun Bear vote for Mr. Sukowatey as a director of ALL Energy,until such time they own together less than 50% of our outstanding common stock, whichprovision is no longer of any effect. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ALL Energy Company - Employment Agreement.  ALL Energy Company has entered into anemployment agreement with Dean Sukowatey, who is our current president.  Mr. Sukowatey’semployment agreement has a term of seven years, ending in August 2013.  Mr. Sukowatey’sannual salary is $240,000.  In connection with his employment agreement, Mr. Sukowateyexecuted an indemnity agreement, a confidentiality agreement and an agreement not to compete. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ALL Energy Company - Stock Subscription Agreement.  In September 2006, ALL EnergyCompany entered into a stock subscription agreement with certain persons (and an affiliatedentity) who had been integrally involved in the pre-incorporation activities of ALL EnergyCompany.  The following describes the important provisions of this stock subscription agreement: |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | the other parties to the stock subscription agreement were Dean Sukowatey, acting in hisindividual capacity, R.L. Bibb Swain, Rob Swain, James R. Broghammer, Scott D. Zabler,John F. Hopkins, Jr. and Midwest Biofuels, Inc., a company owned by Mr. Broghammer; |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | Mr. Bibb Swain, as the owner of Delta-T Corporation, agreed to cause Delta-T tonegotiate, in good faith, a development agreement relating to the construction of five (5)ethanol production facilities, which agreement is to be on terms and conditionssubstantially the same as the terms and conditions contained in extant ethanol-relateddevelopment agreements between Delta-T and unaffiliated third-parties (ALL EnergyCompany and Delta-T have entered into such a project development agreement); |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | Mr. Rob Swain and Mr. Bibb Swain, as the majority owners of Pacesetter ManagementGroup, LLC, agreed to cause Pacesetter to negotiate, in good faith, a managementagreement relating to the management of five ethanol production facilities, whichagreement is to be on terms and conditions substantially the same as the terms andconditions contained in extant ethanol-related management agreements between Pacesetterand third-parties (this agreement has not yet been completed); |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | Mr. Sukowatey agreed to tender for cancellation 10.5% of the shares of ALL EnergyCompany common stock then-owned by him (the shares of Mr. Sukowatey werecancelled); |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | Midwest Biofuels, Inc. agreed to assign its option to acquire approximately 150 acres ofland located in Manchester, Iowa, on which the Manchester facility is to be constructed,in consideration of $10,000 (this option was delivered and the subject land purchased bya subsidiary of ALL Energy Company in March 2007); |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | Upon the execution of each of the agreements with Delta-T and Pacesetter, each ofMessrs, Swain, Swain, Broghammer, Zabler and Hopkins shall have the right, but not theobligation, to purchase 142,857 shares of ALL Energy Company common stock, for a cashconsideration of $143.00; and |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | Each of Messrs. Swain, Swain, Broghammer, Zabler and Hopkins agreed to be bound bythe terms and conditions of certain provisions of the pre-incorporation agreement andsubscription described above, which provisions include an obligation to vote for Mr.Sukowatey as a director of ALL Energy Company, until such time as the founders of ALLEnergy Company, including Messrs. Swain, Swain, Broghammer, Zabler and Hopkins,own less than 50% of the outstanding common stock of ALL Energy Company. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Should each of Messrs. Swain, Swain, Broghammer, Zabler and Hopkins purchase 142,857 sharesof ALL Energy, assuming the completion of the acquisition of ALL Energy, our ownership ofALL Energy would be reduced to approximately 74%, without ALL Energy’s having received anysignificant value for the 26% ownership so purchased.  It is likely that the purchases, if they occur,of this 26% ownership in ALL Energy would result in a significant one-time charge against ourthen-current earnings. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2004 |
|------|

| In June 2004, there occurred a change in control of ALL Fuels & Energy Company (then knownas ICrystal, Inc.) Pursuant to an amended and restated stock purchase agreement, WoodstockInvestments, LLC, a Louisiana limited liability company, purchased 602,588 shares (as adjustedfor a subsequent 1-for-17 reverse split), or 51.91%, of our then-outstanding common stock fromexisting shareholders.  In connection with this change in control, David Loflin and Waddell D.Loflin became our directors.  Messrs. Loflin are brothers. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Director and Officer Indemnification |
|--------------------------------------|

| Our amended and restated certificate of incorporation contains provisions limiting liability ofdirectors.  In addition, we have entered into agreements to indemnify our directors and officersto the fullest extent permitted under Delaware law.  Please see “Item 9. Directors, ExecutiveOfficers, Promoters and Control Persons; Compliance with Section 16(a) of the Exchange Act”. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| Item 13. | Exhibits and Reports on Form 8-K |
|----------|----------------------------------|

| (a)(1) Financial Statements |
|-----------------------------|

|   | Index to Financial Statements of ALL Fuels & Energy Company. |
|--------|------------------------------------------------------------------|

| - | Report of Independent Registered Public Accounting Firm |
|---|---------------------------------------------------------|

| - | Balance Sheet as of December 31, 2007 |
|---|---------------------------------------|

| - | Statements of Operations for the Years Ended December 31, 2007 and 2006, and thePeriod from Commencement of Development Stage (June 7, 2004) to December 31, 2007 |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | Statements of Stockholders’ Equity for the Years Ended December 31, 2007 and 2006,and the Period fromCommencement of Development Stage (June 7, 2004) to December 31, 2007 |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | Statements of Cash Flows for the Years Ended December 31, 2007 and 2006, and thePeriod from Commencement of Development Stage (June 7, 2004) to December 31, 2007 |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | Notes to Financial Statements |
|---|-------------------------------|

| (a)(2) Exhibits |
|-----------------|

| ExhibitNo. |   | Description |
|------------|--------|-------------|

| 10.1 * |   | Pre-formation Agreement and Subscription between Registrant and JBTLPartners, LLC. |
|--------|--------|------------------------------------------------------------------------------------|

| 10.2 * |   | Consulting Agreement between Registrant and Jeff Harsch. |
|--------|--------|----------------------------------------------------------|

| 10.3 * |   | Consulting Agreement between Registrant and Mimbi Robertson. |
|--------|--------|--------------------------------------------------------------|

| 10.4 * |   | Consulting Agreement between Registrant and KM Casey No. 1, LTD. |
|--------|--------|------------------------------------------------------------------|

| 10.5 * |   | Consulting Agreement between Registrant and Danny Chan. |
|--------|--------|---------------------------------------------------------|

| 10.6 * |   | Settlement Agreement among Registrant, Dean E. Sukowatey, ALL EnergyCompany, David Loflin, Newlan & Newlan and Eric Newlan. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------|

| 21.1 * |   | Subsidiaries of Registrant. |
|--------|--------|-----------------------------|

| 31.1 * |   | Certification of Chief Executive Officer required by Rule 13a-14(a) or Rule15d-14(b). |
|--------|--------|---------------------------------------------------------------------------------------|

| 31.2 * |   | Certification of Chief Financial Officer required by Rule 13a-14(a) or Rule15d-14(b). |
|--------|--------|---------------------------------------------------------------------------------------|

| 32.1 * |   | Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350enacted by Section 906 of the Sarbanes-Oxley Act of 2002. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------|

| 32.2 * |   | Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350enacted by Section 906 of the Sarbanes-Oxley Act of 2002. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------|

| * Filed herewith. |
|-------------------|

| (b) Reports on Form 8-K |
|-------------------------|

| During the three months ended December 31, 2007, we filed one Current Report on Form 8-K:date of event: December 14, 2007. |
|----------------------------------------------------------------------------------------------------------------------------|

| Subsequent to December 31, 2007, we have filed the following Current Reports on Form 8-K: (1)date of event: January 25, 2008; (2) date of event: February 22, 2008; and (3) date of event: March11, 2008. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| Item 14. | Principal Accountant Fees and Services |
|----------|----------------------------------------|

| The following table sets forth fees billed to us by our auditors during the fiscal years endedDecember 31, 2007 and 2006, for: (i) services rendered for the audit of our annual financialstatements and the review of our quarterly financial statements, (ii) services by our auditors thatare reasonably related to the performance of the audit or review of our financial statements andthat are not reported as Audit Fees, (iii) services rendered in connection with tax compliance, taxadvice and tax planning and (iv) all other fees for services rendered. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |   | Year EndedDecember 31, 2007 |   | Year EndedDecember 31, 2006 |   |
|--------|--------|--------|-----------------------------|--------|-----------------------------|--------|

|   | Audit fees |   | $31,500 |   | $0 |   |
|--------|------------|--------|---------|--------|----|--------|

|   | Audit related fees |   | $0 |   | $0 |   |
|--------|--------------------|--------|----|--------|----|--------|

|   | Tax |   | $0 |   | $0 |   |
|--------|-----|--------|----|--------|----|--------|

|   | All other fees |   | $0 |   | $0 |   |
|--------|----------------|--------|----|--------|----|--------|

| SIGNATURES |
|------------|

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

|   | ALL FUELS & ENERGY COMPANY |
|--------|--------------------------------|

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

|   | By: | /s/ DEAN E. SUKOWATEY |   |
|--------|-----|-----------------------|--------|

|   | Dean E. Sukowatey, President |   |
|--------|------------------------------|--------|

| Pursuant to the requirements of the Securities Act of 1933, as amended, this Annual Report onForm 10-KSB has been signed by the following persons in the capacities and on the datesincluded: |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                  |   |                                                                                                             |   |           |
|-----------------------|--------|------------------------------------------------------------------------------------------------------------------|--------|----------------|
| /s/ DEAN E. SUKOWATEY |   |                                                                                                             |   | April 15, 2008 |
| Dean E. Sukowatey     |   | President (principal executiveofficer), Acting ChiefAccounting Officer (principalfinancial officer) and Director |   |           |

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

| /s/ BRIAN K. GIBSON |   |                   |   | April 15, 2008 |
|---------------------|--------|------------------------|--------|----------------|
| Brian K. Gibson     |   | Treasurer and Director |   |           |

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

| /s/ STEVEN J. LEAVITT |   |     |   | April 15, 2008 |
|-----------------------|--------|----------|--------|----------------|
| Steven J. Leavitt     |   | Director |   |           |

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

| /s/ MARK W. LEONARD |   |     |   | April 15, 2008 |
|---------------------|--------|----------|--------|----------------|
| Mark W. Leonard     |   | Director |   |           |

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

| Supplemental Information to be Furnished With Reports Filed Pursuant to Section 15(d) of theExchange Act by Non-reporting Issuers. |
|------------------------------------------------------------------------------------------------------------------------------------|

| As of the date of this Annual Report on Form 10-KSB, no annual report or proxy material hasbeen sent to security holders of ALL Fuels & Energy Company.  It is anticipated that an annualreport and proxy material will be furnished to security holders subsequent to the filing of thisAnnual Report on Form 10-KSB/A. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| INDEX TO FINANCIAL STATEMENTS OF ICRYSTAL, INC. |
|-------------------------------------------------|

|   |   | Page |
|--------|--------|------|

|   | Report of Independent Registered Public Accounting Firm | F-2 |
|--------|---------------------------------------------------------|-----|

|   | Balance Sheet as of December 31, 2007 | F-3 |
|--------|---------------------------------------|-----|

|   | Statements of Operations for the Years Ended December 31, 2007 and 2006,and the Period from Commencement of Development Stage (June 7, 2004) toDecember 31, 2007 | F-5 |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----|

|   | Statements of Stockholders’ Equity for the Years Ended December 31, 2007and 2006, and the Period from Commencement of Development Stage (June7, 2004) to December 31, 2007 | F-6 |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----|

|   | Statements of Cash Flows for the Years Ended December 31, 2007 and 2006,and the Period from Commencement of Development Stage (June 7, 2004) toDecember 31, 2007 | F-11 |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|------|

|   | Notes to Financial Statements | F-13 |
|--------|-------------------------------|------|

| REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM |
|---------------------------------------------------------|

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

| To the Board of Directors andShareholders of ALL Fuels & Energy Company |
|-----------------------------------------------------------------------------|

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

| We have audited the accompanying consolidated balance sheet of ALL Fuels & EnergyCompany (a development stage company) and subsidiaries as of December 31, 2007 and therelated consolidated statement of operations, stockholders’ equity (deficit) and cash flows forthe years ended December 31, 2007 and 2006 and from the date of commencement of thedevelopment stage (June 7, 2004) to December 31, 2007.  ALL Fuels & Energy Company’smanagement is responsible for these consolidated financial statements. Our responsibility is toexpress an opinion on these consolidated financial statements based on our audits. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| We conducted our audits in accordance with the standards of the Public Company AccountingOversight Board (United States). Those standards require that we plan and perform the audit toobtain reasonable assurance about whether the consolidated financial statements are free ofmaterial misstatement. The company is not required to have, nor were we engaged to perform,an audit of its internal control over financial reporting.  Our audit included consideration ofinternal control over financial reporting as a basis for designing audit procedures that areappropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the company's internal control over financial reporting.  Accordingly, weexpress no such opinion.  An audit also includes examining, on a test basis, evidencesupporting the amounts and disclosures in the consolidated financial statements, assessing theaccounting principles used and significant estimates made by management, as well asevaluating the overall financial statement presentation.  We believe that our audits provide areasonable basis for our opinion. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| In our opinion, the consolidated financial statements referred to above present fairly, in allmaterial respects, the financial position of ALL Fuels & Energy Company and subsidiaries asof December 31, 2007 and the consolidated results of their operations and their cash flows forthe years ended December 31, 2007 and 2006 and from the date of commencement of thedevelopment stage (June 7, 2004) to December 31, 2007 in conformity with accountingprinciples generally accepted in the United States of America. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| /s/ FARMER, FUQUA & HUFF, P.C. |
|------------------------------------|

| Farmer, Fuqua & Huff, P.C.Plano, TexasApril 15, 2008 |
|----------------------------------------------------------|

|   | ALL FUELS & ENERGYCOMPANY |   |
|--------|-------------------------------|--------|

|   | (a development stage company) |   |
|--------|-------------------------------|--------|

|   | CONDENSED CONSOLIDATED BALANCESHEET |   |
|--------|-------------------------------------|--------|

|   | December 31, 2007 |   |
|--------|-------------------|--------|

|   |   |   | 12/31/07 |
|--------|--------|--------|----------|

| ASSETS |
|--------|

| Current assets |   |   |
|----------------|--------|--------|

|   | Cash and cash equivalents |   |   | $612,888 |
|--------|---------------------------|--------|--------|----------|

|   | Prepaid expenses |   |   | 52,637 |
|--------|------------------|--------|--------|--------|

|   | Total current assets |   |   | 665,525 |
|--------|----------------------|--------|--------|---------|

| Property and equipment - at cost |   |   |
|----------------------------------|--------|--------|

|   | Land |   |   | 951,238 |
|--------|------|--------|--------|---------|

|   | Equipment |   |   | 1,093 |
|--------|-----------|--------|--------|-------|

|   | Construction-in-progress |   |   | 187,024 |
|--------|--------------------------|--------|--------|---------|

|   |   |   |   | 1,139,355 |
|--------|--------|--------|--------|-----------|

|   | Less accumulated depreciation |   |   | (275) |
|--------|-------------------------------|--------|--------|-------|

|   | Total property and equipment - net |   |   | 1,139,080 |
|--------|------------------------------------|--------|--------|-----------|

| Other assets |   |   |
|--------------|--------|--------|

|   | Deferred borrowing costs |   |   | 3,672 |
|--------|--------------------------|--------|--------|-------|

|   | Total other assets |   |   | 3,672 |
|--------|--------------------|--------|--------|-------|

|   | Total assets |   |   | $1,808,277 |
|--------|--------------|--------|--------|------------|

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

| The accompanying notes are an integral part of these statements. |
|------------------------------------------------------------------|

|   |   |   | 12/31/07 |
|--------|--------|--------|----------|

| LIABILITIES AND STOCKHOLDERS’ EQUITY |
|--------------------------------------------|

| Current liabilities |   |   |
|---------------------|--------|--------|

|   | Accounts payable and accrued expenses |   |   | $83,992 |
|--------|---------------------------------------|--------|--------|---------|

|   | Total current liabilities |   |   | 83,992 |
|--------|---------------------------|--------|--------|--------|

| Long-term debt |   |   | 488,000 |
|----------------|--------|--------|---------|

|   | Total liabilities |   |   | 571,992 |
|--------|-------------------|--------|--------|---------|

| Stockholders’ equity (deficit) |   |   |
|--------------------------------------|--------|--------|

|   | Common stock, $.01 par value; 80,000,000 sharesauthorized, 51,210,803 shares issued and outstanding |   |   | 513,658 |
|--------|-----------------------------------------------------------------------------------------------------|--------|--------|---------|

|   | Additional paid-in capital |   |   | 14,981,840 |
|--------|----------------------------|--------|--------|------------|

|   | Treasury stock, at cost |   |   | (150,000) |
|--------|-------------------------|--------|--------|-----------|

|   | Receivable from shareholder |   |   | (50,000) |
|--------|-----------------------------|--------|--------|----------|

|   | Accumulated deficit |   |   | (6,423,944) |
|--------|---------------------|--------|--------|-------------|

|   | Deficit accumulated during the development stage |   |   | (7,635,269) |
|--------|--------------------------------------------------|--------|--------|-------------|

|   | Total stockholders' equity |   |   | 1,236,285 |
|--------|----------------------------|--------|--------|-----------|

|   | Total liabilities and stockholders’ equity |   |   | $1,808,277 |
|--------|--------------------------------------------------|--------|--------|------------|

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

| The accompanying notes are an integral part of these statements. |
|------------------------------------------------------------------|

|   | ALL FUELS & ENERGYCOMPANY |   |
|--------|-------------------------------|--------|

|   | (a development stage company) |   |
|--------|-------------------------------|--------|

|   | CONDENSED CONSOLIDATED STATEMENTS OFOPERATIONS |   |
|--------|------------------------------------------------|--------|

|   | For the Years Ended December 31, 2007 and 2006, and the Period fromCommencement of Development Stage (June 7, 2004) to December 31, 2007 |   |
|--------|------------------------------------------------------------------------------------------------------------------------------------------|--------|

|   |   |   |   |   | 2007 |   | 2006 (*) |   | Period fromCommencementofDevelopment Stage(June 7,2004) to12/31/07 (*) |
|--------|--------|--------|--------|--------|------|--------|----------|--------|------------------------------------------------------------------------|

| Revenues |   |   |   |   | $--- |   | $--- |   | $--- |
|----------|--------|--------|--------|--------|------|--------|------|--------|------|

| Operating Costs andExpenses |   |   |   |   |   |   |   |   |   |
|-----------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|

|   | Consulting |   |   |   |   | 6,529,913 |   | 2,000 |   | 6,709,913 |
|--------|------------|--------|--------|--------|--------|-----------|--------|-------|--------|-----------|

|   | Legal andprofessional |   |   |   |   | 617,201 |   | 86,293 |   | 809,494 |
|--------|-----------------------|--------|--------|--------|--------|---------|--------|--------|--------|---------|

|   | Impairment charge |   |   |   |   | 87,820 |   | 52,000 |   | 139,820 |
|--------|-------------------|--------|--------|--------|--------|--------|--------|--------|--------|---------|

|   | General andadministrative |   |   |   |   | 497,920 |   | 227,590 |   | 725,960 |
|--------|---------------------------|--------|--------|--------|--------|---------|--------|---------|--------|---------|

|   | Total operatingexpenses |   |   |   |   | 7,732,854 |   | 367,883 |   | 8,385,187 |
|--------|-------------------------|--------|--------|--------|--------|-----------|--------|---------|--------|-----------|

| Other income(expense) |   |   |   |   |   |   |   |   |   |
|-----------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|

|   | Interest expense |   |   |   |   | (33,272) |   | --- |   | (33,272) |
|--------|------------------|--------|--------|--------|--------|----------|--------|-----|--------|----------|

|   | Interest income |   |   |   |   | 24,910 |   | 19,261 |   | 44,171 |
|--------|-----------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|

|   | Rental income |   |   |   |   | 26,250 |   | --- |   | 26,250 |
|--------|---------------|--------|--------|--------|--------|--------|--------|-----|--------|--------|

|   | Total other income(expense) |   |   |   |   | 17,888 |   | 19,261 |   | 37,149 |
|--------|-----------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|

| Net loss |   |   |   |   | $(7,714,966) |   | $(348,622) |   | $(8,348,038) |
|----------|--------|--------|--------|--------|--------------|--------|------------|--------|--------------|

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

| Income (loss) per share |   |   |   |   | $(0.10) |   | $(0.18) |   |   |
|-------------------------|--------|--------|--------|--------|---------|--------|---------|--------|--------|

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

| Weighted average number ofshares outstanding (basic anddiluted) |   |   |   |   | 40,037,702 |   | 2,010,754 |   |   |
|-----------------------------------------------------------------|--------|--------|--------|--------|------------|--------|-----------|--------|--------|

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

| (*) | Financial statements presented have been restated to include financial data combinedwith a previously separate entity. |
|-----|------------------------------------------------------------------------------------------------------------------------|

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

| The accompanying notes are an integral part of these statements. |
|------------------------------------------------------------------|

|   | STATEMENT OF STOCKHOLDERS’ (DEFICIT) EQUITY |   |
|--------|---------------------------------------------------|--------|

|   |  For the Years Ended December 31, 2007, 2006 and 2005, and thePeriod fromCommencement of Development Stage (June 7, 2004) to December31, 2007 |   |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|--------|

|   | Shares | Amount | AdditionalPaid-inCapital | StockholderReceivable |   | TreasuryStock | Accumulated Deficit | DeficitAccumulated duringDevelopment Stage | Stockholders’(Deficit)Equity |
|--------|--------|--------|--------------------------|-----------------------|--------|---------------|---------------------|--------------------------------------------|------------------------------------|

| Balance,June 7,2004 | 1,758,981 | $17,590 | $6,385,950 | $--- |   | $--- | $(6,423,944) | $--- | $(20,404) |
|---------------------|-----------|---------|------------|------|--------|------|--------------|------|-----------|

| Stockissued forservices at$.34 pershare | 750,000 | 7,500 | 247,500 | --- |   | --- | --- | --- | 255,000 |
|-----------------------------------------|---------|-------|---------|-----|--------|-----|-----|-----|---------|

| Stockissued forservices at$.167 pershare | 150,000 | 1,500 | 23,500 | --- |   | --- | --- | --- | 25,000 |
|------------------------------------------|---------|-------|--------|-----|--------|-----|-----|-----|--------|

| Stockissued at$.14 pershare | 357,150 | 3,571 | 46,429 | (50,000) |   | --- | --- | --- | --- |
|-----------------------------|---------|-------|--------|----------|--------|-----|-----|-----|-----|

| Contributions fromstockholders | --- | --- | 20,754 | --- |   | --- | --- | --- | 20,754 |
|--------------------------------|-----|-----|--------|-----|--------|-----|-----|-----|--------|

| Net loss | --- | --- | --- | --- |   | --- | --- | (284,350) | (284,350) |
|----------|-----|-----|-----|-----|--------|-----|-----|-----------|-----------|

| Balance,December31, 2004 | 3,016,131 | 30,161 | 6,724,133 | (50,000) |   | --- | (6,423,944) | (284,350) | (4,000) |
|--------------------------|-----------|--------|-----------|----------|--------|-----|-------------|-----------|---------|

| Net loss | --- | --- | --- | --- |   | --- | --- | (100) | (100) |
|----------|-----|-----|-----|-----|--------|-----|-----|-------|-------|

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

| The accompanying notes are an integral part of these statements. |
|------------------------------------------------------------------|

|   | STATEMENT OF STOCKHOLDERS’ (DEFICIT) EQUITY |   |
|--------|---------------------------------------------------|--------|

|   |  For the Years Ended December 31, 2007, 2006 and 2005, and thePeriod fromCommencement of Development Stage (June 7, 2004) to December31, 2007 |   |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|--------|

|   | Shares | Amount | AdditionalPaid-inCapital | StockholderReceivable |   | TreasuryStock | Accumulated Deficit | DeficitAccumulated duringDevelopment Stage | Stockholders’(Deficit)Equity |
|--------|--------|--------|--------------------------|-----------------------|--------|---------------|---------------------|--------------------------------------------|------------------------------------|

| Balance,December31, 2005 | 3,016,131 | 30,161 | 6,724,133 | (50,000) |   | --- | (6,423,944) | (284,450) | (4,100) |
|--------------------------|-----------|--------|-----------|----------|--------|-----|-------------|-----------|---------|

| Stockissued forbonus at$.023 pershare | 3,375,000 | 33,750 | 42,750 | --- |   | --- | --- | --- | 76,500 |
|---------------------------------------|-----------|--------|--------|-----|--------|-----|-----|-----|--------|

| Stockissued forbonus at$.027 pershare | 150,000 | 1,500 | 2,500 | --- |   | --- | --- | --- | 4,000 |
|---------------------------------------|---------|-------|-------|-----|--------|-----|-----|-----|-------|

| Stockissued forlegalservices at$.027 pershare | 750,000 | 7,500 | 12,500 | --- |   | --- | --- | --- | 20,000 |
|-----------------------------------------------|---------|-------|--------|-----|--------|-----|-----|-----|--------|

| Stockissued forservices at$.027 pershare | 75,000 | 750 | 1,250 | --- |   | --- | --- | --- | 2,000 |
|------------------------------------------|--------|-----|-------|-----|--------|-----|-----|-----|-------|

| Stockissued forweb pageassets at$.027 pershare | 1,950,000 | 19,500 | 32,500 | --- |   | --- | --- | --- | 52,000 |
|------------------------------------------------|-----------|--------|--------|-----|--------|-----|-----|-----|--------|

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

| The accompanying notes are an integral part of these statements. |
|------------------------------------------------------------------|

|   | STATEMENT OF STOCKHOLDERS’ (DEFICIT) EQUITY |   |
|--------|---------------------------------------------------|--------|

|   |  For the Years Ended December 31, 2007, 2006 and 2005, and thePeriod fromCommencement of Development Stage (June 7, 2004) to December31, 2007 |   |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|--------|

|   | Shares | Amount | AdditionalPaid-inCapital | StockholderReceivable |   | TreasuryStock | Accumulated Deficit | DeficitAccumulated duringDevelopment Stage | Stockholders’(Deficit)Equity |
|--------|--------|--------|--------------------------|-----------------------|--------|---------------|---------------------|--------------------------------------------|------------------------------------|

| Contributions fromstockholder | --- | --- | 600 | --- |   | --- | --- | --- | 600 |
|-------------------------------|-----|-----|-----|-----|--------|-----|-----|-----|-----|

| Net loss | --- | --- | --- | --- |   | --- | --- | (155,000) | (155,000) |
|----------|-----|-----|-----|-----|--------|-----|-----|-----------|-----------|

| Balance,December31, 2006 | 9,316,131 | 93,161 | 6,816,233 | (50,000) |   | --- | (6,423,944) | (439,450) | (4,000) |
|--------------------------|-----------|--------|-----------|----------|--------|-----|-------------|-----------|---------|

| Stockissued forbonus at$.026 pershare | 3,000,000 | 30,000 | 50,000 | --- |   | --- | --- | --- | 80,000 |
|---------------------------------------|-----------|--------|--------|-----|--------|-----|-----|-----|--------|

| Stockissued inacquisition | 37,995,000 | 379,950 | 1,253,805 | --- |   | --- | --- | --- | 1,633,755 |
|---------------------------|------------|---------|-----------|-----|--------|-----|-----|-----|-----------|

| Stockissued forservices at$.67 pershare | 390,000 | 3,900 | 258,300 | --- |   | --- | --- | --- | 262,200 |
|-----------------------------------------|---------|-------|---------|-----|--------|-----|-----|-----|---------|

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

| The accompanying notes are an integral part of these statements. |
|------------------------------------------------------------------|

|   | STATEMENT OF STOCKHOLDERS’ (DEFICIT) EQUITY |   |
|--------|---------------------------------------------------|--------|

|   |  For the Years Ended December 31, 2007, 2006 and 2005, and thePeriod fromCommencement of Development Stage (June 7, 2004) to December31, 2007 |   |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|--------|

|   | Shares | Amount | AdditionalPaid-inCapital | StockholderReceivable |   | TreasuryStock | Accumulated Deficit | DeficitAccumulated duringDevelopment Stage | Stockholders’(Deficit)Equity |
|--------|--------|--------|--------------------------|-----------------------|--------|---------------|---------------------|--------------------------------------------|------------------------------------|

| Stockissued forservices at$.75 pershare | 150,000 | 1,500 | 111,000 | --- |   | --- | --- | --- | 112,500 |
|-----------------------------------------|---------|-------|---------|-----|--------|-----|-----|-----|---------|

| Stockissued forcash | 75,000 | 750 | 74,250 | --- |   | --- | --- | --- | 75,000 |
|---------------------|--------|-----|--------|-----|--------|-----|-----|-----|--------|

| Stockissued asbonus at$1.00 pershare | 30,000 | 300 | 29,700 | --- |   | --- | --- | --- | 30,000 |
|--------------------------------------|--------|-----|--------|-----|--------|-----|-----|-----|--------|

| Stockissued forcash onoptionexercise | 50,000 | 500 | 31,286 | --- |   | --- | --- | --- | 31,786 |
|--------------------------------------|--------|-----|--------|-----|--------|-----|-----|-----|--------|

| Stockissued inprivateofferingfor cash | 359,588 | 3,597 | 282,053 | --- |   | --- | --- | --- | 285,649 |
|---------------------------------------|---------|-------|---------|-----|--------|-----|-----|-----|---------|

| Treasurystock | --- | --- | --- | --- |   | (150,000) | --- | --- | 150,000 |
|---------------|-----|-----|-----|-----|--------|-----------|-----|-----|---------|

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

| The accompanying notes are an integral part of these statements. |
|------------------------------------------------------------------|

|   | STATEMENT OF STOCKHOLDERS’ (DEFICIT) EQUITY |   |
|--------|---------------------------------------------------|--------|

|   |  For the Years Ended December 31, 2007, 2006 and 2005, and thePeriod fromCommencement of Development Stage (June 7, 2004) to December31, 2007 |   |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|--------|

|   | Shares | Amount | AdditionalPaid-inCapital | StockholderReceivable |   | TreasuryStock | Accumulated Deficit | DeficitAccumulated duringDevelopment Stage | Stockholders’(Deficit)Equity |
|--------|--------|--------|--------------------------|-----------------------|--------|---------------|---------------------|--------------------------------------------|------------------------------------|

| Warrants | --- | --- | 6,070,213 | --- |   | --- | --- | --- | 6,070,213 |
|----------|-----|-----|-----------|-----|--------|-----|-----|-----|-----------|

| Net loss | --- | --- | --- | --- |   | --- | --- | (7,195,819) | (7,195,819) |
|----------|-----|-----|-----|-----|--------|-----|-----|-------------|-------------|

| Balance,December31, 2007 | 51,365,719 | $513,658 | $14,981,840 | $(50,000) |   | $(150,000) | $(6,423,944) | $(7,635,269) | $1,236,285 |
|--------------------------|------------|----------|-------------|-----------|--------|------------|--------------|--------------|------------|

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

| The accompanying notes are an integral part of these statements. |
|------------------------------------------------------------------|

|   | ALL FUELS & ENERGYCOMPANY |   |
|--------|-------------------------------|--------|

|   | (a development stage company) |   |
|--------|-------------------------------|--------|

|   | CONDENSED CONSOLIDATED STATEMENTS OF CASHFLOWS |   |
|--------|------------------------------------------------|--------|

|   | For the Years Ended December 31, 2007 and 2006, and the Period fromCommencement of Development Stage (June 7, 2004) to December 31, 2007 |   |
|--------|------------------------------------------------------------------------------------------------------------------------------------------|--------|

|   | 2007 |   | 2006 (*) |   | Period fromCommencementofDevelopment Stage (June7,2004) to12/31/07 (*) |
|--------|------|--------|----------|--------|------------------------------------------------------------------------|

| CASH FLOWS FROM OPERATINGACTIVITIES |   |   |   |   |   |
|-------------------------------------|--------|--------|--------|--------|--------|

| Net loss | $(7,714,966) |   | $(348,622) |   | $(8,348,038) |
|----------|--------------|--------|------------|--------|--------------|

|   | Adjustments to reconcile net loss tocash used for operating activities: |   |   |   |   |   |
|--------|-------------------------------------------------------------------------|--------|--------|--------|--------|--------|

|   | Depreciation and amortization | 2,000 |   | 126 |   | 2,126 |
|--------|-------------------------------|-------|--------|-----|--------|-------|

|   | Options issued for compensation | 6,075,213 |   | --- |   | 6,075,213 |
|--------|---------------------------------|-----------|--------|-----|--------|-----------|

|   | Stock issued for services andcompensation | 780,515 |   | 105,830 |   | 1,166,345 |
|--------|-------------------------------------------|---------|--------|---------|--------|-----------|

|   | Impairment charge | 87,820 |   | 52,000 |   | 139,820 |
|--------|-------------------|--------|--------|--------|--------|---------|

|   | Decrease in deposits | 10,000 |   | (10,000) |   | --- |
|--------|----------------------|--------|--------|----------|--------|-----|

|   | Increase in prepaids | (125,327) |   | (15,130) |   | (140,457) |
|--------|----------------------|-----------|--------|----------|--------|-----------|

|   | Increase in accounts payable | (2,122) |   | 24,383 |   | 26,361 |
|--------|------------------------------|---------|--------|--------|--------|--------|

| Net cash used for operating activities | (886,867) |   | (191,413) |   | (1,078,630) |
|----------------------------------------|-----------|--------|-----------|--------|-------------|

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

| CASH FLOWS FROM INVESTINGACTIVITIES |   |   |   |   |   |
|-------------------------------------|--------|--------|--------|--------|--------|

|   | Purchase of land | (951,238) |   | --- |   | (951,238) |
|--------|------------------|-----------|--------|-----|--------|-----------|

|   | Increase in accrued liabilities - relatedparty | --- |   | 40,056 |   | 40,056 |
|--------|------------------------------------------------|-----|--------|--------|--------|--------|

|   | Decrease in receivable - related party | 22,500 |   | (22,500) |   | --- |
|--------|----------------------------------------|--------|--------|----------|--------|-----|

|   | Purchase of office equipment | --- |   | (1,330) |   | (1,330) |
|--------|------------------------------|-----|--------|---------|--------|---------|

|   | Payments on construction in progress | (69,557) |   | (117,467) |   | (187,024) |
|--------|--------------------------------------|----------|--------|-----------|--------|-----------|

| Net cash used for financing activities | (998,295) |   | (101,241) |   | (1,099,536) |
|----------------------------------------|-----------|--------|-----------|--------|-------------|

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

| (*) | Financial statements presented have been restated to include financial data combinedwith a previously separate entity. |
|-----|------------------------------------------------------------------------------------------------------------------------|

| The accompanying notes are an integral part of these statements. |
|------------------------------------------------------------------|

| CASH FLOWS FROM FINANCINGACTIVITIES |   |   |   |   |   |
|-------------------------------------|--------|--------|--------|--------|--------|

|   | Proceeds from sale of common stockfor cash | 392,435 |   | 2,064,549 |   | 2,456,984 |
|--------|--------------------------------------------|---------|--------|-----------|--------|-----------|

|   | Principal payments on related partyadvances | --- |   | --- |   | (3,988) |
|--------|---------------------------------------------|-----|--------|-----|--------|---------|

|   | Proceeds from long-term debt, net ofdeferred borrowing costs | 483,120 |   | --- |   | 483,120 |
|--------|--------------------------------------------------------------|---------|--------|-----|--------|---------|

|   | Purchase of treasury stock | (150,000) |   | --- |   | (150,000) |
|--------|----------------------------|-----------|--------|-----|--------|-----------|

|   | Contributions from shareholders | --- |   | 600 |   | 950 |
|--------|---------------------------------|-----|--------|-----|--------|-----|

| Net cash provided by financing activities | 725,555 |   | 2,065,149 |   | 2,787,066 |
|-------------------------------------------|---------|--------|-----------|--------|-----------|

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

| NET CHANGE IN CASH | (1,159,607) |   | 1,772,495 |   | 608,900 |
|--------------------|-------------|--------|-----------|--------|---------|

| Cash, beginning of period | 1,772,495 |   | --- |   | 3,988 |
|---------------------------|-----------|--------|-----|--------|-------|

| Cash, end of period | $612,888 |   | $1,772,495 |   | $612,888 |
|---------------------|----------|--------|------------|--------|----------|

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

| (*) | Financial statements presented have been restated to include financial data combinedwith a previously separate entity. |
|-----|------------------------------------------------------------------------------------------------------------------------|

| The accompanying notes are an integral part of these statements. |
|------------------------------------------------------------------|

|   | ALL FUELS & ENERGYCOMPANY |   |
|--------|-------------------------------|--------|

|   | (a development stage company) |   |
|--------|-------------------------------|--------|

|   | NOTES TO CONDENSED CONSOLIDATED FINANCIALSTATEMENTS |   |
|--------|-----------------------------------------------------|--------|

|   | December 31, 2007 |   |
|--------|-------------------|--------|

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

| Note 1 | Summary of Significant Accounting Policies |
|--------|--------------------------------------------|

| Organization and Business |
|---------------------------|

| ALL Fuels & Energy Company (the Company) was  incorporated  on October 5, 1994, in the stateof Delaware as Cable Group South,  Inc.  In November 1998, the Company changed its name toSoftnet Industries, Inc., and, in June 1999, the name was  changed to ICrystal, Inc.  In May 2007,the Company changed its name to ALL Fuels & Energy Company. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| In June 2004, there occurred a change in control of the Company.  Pursuant to an amended andrestated stock purchase agreement, Woodstock Investments, LLC purchased 602,588 shares, or51.91%, of the then-outstanding common stock from existing shareholders.  During 2004, theCompany commenced the development stage and had no operations. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| In August 2004, the Company filed an amended and restated certificate of incorporation,increasing the amount of shares authorized to 80,000,000 shares of common stock and 20,000,000shares of preferred stock. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| From 2004 through November 2006, the Company searched for a going business to acquire,without success. Due to this lack of success, the Company’s board of directors determined thatit would be in the best interests of the Company and its shareholders for the Company to start anew business. After assessing the business opportunities available vis-a-vis the Company’s lackof available capital, in November 2006, the board of directors determined that the Company wouldbecome a publisher of web pages. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| In January 2007, there occurred another change in control of the Company.  Pursuant to a stockpurchase agreement, ALL Energy Company purchased 4,700,000, or 7,050,000 post-forward-split,shares, or 57.24%, of our outstanding common stock from an existing shareholder. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| After the January 2007 change in control, the Company’s new management determined to pursuea plan of business whereby the Company would become a producer of ethanol and its co-products.To that end, in April 2007, the Company consummated a plan and agreement of reorganizationwith ALL Energy Company.  At the time of the reorganization transaction, ALL Energy Companywas a development-stage ethanol company. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Pursuant to a settlement agreement, the Company’s former web page publishing business wasassigned to a third party. None of the assets or operations of the Company’s former web pagepublishing business are included in the accompanying financial statements. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Accounting Estimates |
|----------------------|

| In the preparation of Financial Statements in conformity with accounting principles generallyaccepted in the United States of America, it is necessary for management to make estimates andassumptions that affect the reported amounts of assets and liabilities and disclosure of contingentassets and liabilities at the date of the Financial Statements and the reported amounts of revenuesand expense for the year ended.  Actual results could differ from those estimates. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Cash and Cash Equivalents |
|---------------------------|

| For purposes of the statement of cash flows, the Company  considers all highly liquid  debtinstruments  purchased  with a maturity of three months or less to be cash equivalents. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Asset Impairment |
|------------------|

| Statement of Financial Accounting Standards No. 144 (“SFAS No. 144”) requires that long-livedassets be considered impaired, if the sum of the expected future cash flows (undiscounted andwithout interest charges) is less than the carrying amount of those assets.  If impairment exists,an impairment loss is recognized, by a charge against earnings, equal to the amount by which thecarrying amount of the assets exceeds the fair value of the property. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Loss per Share |
|----------------|

| Net loss per share is provided in accordance with Statement of Financial Accounting Standards(SFAS) No. 128 "EARNINGS PER SHARE".  Basic loss per share for each period is  computedby dividing net loss by the weighted average number of shares of common stock outstandingduring the period.  Diluted loss per share reflects per share amounts that would have resulted ifdilutive common stock equivalents had been converted to common stock.  As of  December 31,2007, the Company had the following dilutive common stock equivalents outstanding: |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | 12,540,732 common stock purchase warrants to purchase a like number of shares,expiring in 2017, at a net exercise price of zero. |
|---|----------------------------------------------------------------------------------------------------------------------------------|

| - | Options to acquire up to 50,000 per week through April 30, 2008, at an exerciseprice equal to average Volume Weighted Average Price of the Company’scommon stock, as reported by the OTC Bulletin Board, for the ten trading daysimmediately preceding the date of exercise. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Income Taxes |
|--------------|

| The Company accounts for income taxes using the liability method. Deferred taxes are providedfor temporary differences between the basis of assets and liabilities for financial reporting andincome tax purposes at enacted tax rates. Deferred tax amounts represent the future taxconsequences of those differences, which will be either deductible or taxable when the assets andliabilities are recovered or settled. Valuation allowances are established when necessary to reducedeferred tax assets to the amounts expected to be realized. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  The Company is subject to tax reporting in multiple jurisdictions, and considers the requirementsof each jurisdiction, when preparing its estimates of taxes currently due or deferred. Eachjurisdiction has its own oversight and enforcement bodies, and the Company is subject to auditsin each taxing jurisdiction. The Company's provision for tax obligations represents estimates,which are subject to changes and adjustments resulting from future events. (See Note 2) |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Stock Based Compensation |
|--------------------------|

| The Company accounts for stock based compensation in accordance with Statement of FinancialAccounting Standards (“SFAS”) No. 123-R, “Share-Based Payment”. This Statement requires thattransactions in which a company exchanges its equity instruments for goods or services beaccounted for using the fair-value method. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| New Accounting Pronouncements |
|-------------------------------|

| In June 2006, the FASB issued FASB Interpretation No. 48, “Accounting for Uncertainty inIncome Taxes, an interpretation of FASB Statement 109” (“FIN 48”), which clarifies theaccounting for uncertainty in income tax positions. This interpretation prescribes that theCompany recognize in its financial statements the impact of a tax position that is more likely thannot to be sustained upon examination based upon the technical merits of the position, includingresolution of any appeals. The interpretation provides guidance on derecognition, classification,interest and penalties, accounting in interim periods, disclosure and transition. FIN No. 48 waseffective for fiscal years beginning after December 15, 2006. FIN No. 48, which was adopted bythe Company effective January 1, 2007, did not have a material impact on the Company’s cashflows, results of operations, financial position or liquidity. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| In September 2006, the FASB issued FASB Statement 157 “Fair Value Measurements” (“SFASNo. 157”) which defines and measures fair value and expands disclosures about fair valuemeasurements. The statement emphasizes that fair value is a market-based measurement and notan entity-specific measurement. The provisions of SFAS No. 157 are effective for fiscal yearsbeginning after November 15, 2007. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| In February 2007, the FASB issued SFAS No. 159, The Fair Value Option for Financial Assetsand Financial Liabilities, which permits entities to choose to measure many financial instrumentsand certain other items at fair value. The objective is to improve financial reporting by providingentities with the opportunity to mitigate volatility in reported earnings caused by measuring relatedassets and liabilities differently without having to apply complex hedge accounting provisions.SFAS No. 159 applies to all entities and is effective for fiscal years beginning after November 15,2007. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| In December 2007, the FASB issued SFAS No. 141 (revised 2007), “Business Combinations”(“SFAS No. 141R”), which establishes principles and requirements for how the acquirer shallrecognize and measure in its financial statements the identifiable assets acquired, liabilitiesassumed, any noncontrolling interest in the acquiree and goodwill acquired in a businesscombination. SFAS No. 141(R) is effective for business combinations for which the acquisitiondate is on or after the beginning of the first annual reporting period beginning on or afterDecember 15, 2008. The Company is currently assessing the potential impact that the adoptionof SFAS No. 141(R) will have on its financial position and results of operations. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| The Company does not expect the adoption of any other recently issued accountingpronouncements to have a significant impact on its consolidated financial position. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 2 | Provision for Income Taxes |
|--------|----------------------------|

| The Company recognizes deferred tax liabilities and benefits for the expected future taxconsequences of events that have been included in the financial statements or tax returns. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Deferred tax liabilities and benefits are recognized using enacted tax rates in effect for the yearin which the differences are expected to reverse. |
|------------------------------------------------------------------------------------------------------------------------------------------------------|

| Deferred tax benefits and liabilities are calculated using enacted tax rates in Canada and the U.S.in effect for the year in which the differences are expected to reverse. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| The following is a schedule of the composition of the income tax benefit: |
|---------------------------------------------------------------------------|

|   |   | 2007 |   | 2006 |   |
|--------|--------|------|--------|------|--------|

|   | Net operating loss carryforward | $2,891,070 |   | $2,333,554 |   |
|--------|---------------------------------|------------|--------|------------|--------|

|   | Timing difference related to options | 2,065,572 |   | --- |   |
|--------|--------------------------------------|-----------|--------|-----|--------|

|   | Valuation | (4,956,642) |   | (2,333,554) |   |
|--------|-----------|-------------|--------|-------------|--------|

|   | Total income tax benefit (liability) | $0 |   | $0 |   |
|--------|--------------------------------------|----|--------|----|--------|

| Reconciliation of the statutory federal income tax rate to the Company’s effective tax rate is asfollows: |
|-----------------------------------------------------------------------------------------------------------------|

|   | December 31, |   |
|--------|--------------|--------|

|   |   | 2007 |   | 2006 |   |
|--------|--------|------|--------|------|--------|

|   | Net loss before taxes | $7,714,966 |   | $(155,000) |   |
|--------|-----------------------|------------|--------|------------|--------|

|   | U.S. statutory rate | 34% |   | 34% |   |
|--------|---------------------|-----|--------|-----|--------|

|   | Change in deferred tax | (2,623,088) |   | (52,700) |   |
|--------|------------------------|-------------|--------|----------|--------|

|   | Change in deferred tax asset valuationaccount | 2,623,088 |   | 52,700 |   |
|--------|-----------------------------------------------|-----------|--------|--------|--------|

|   | Total tax expense | $0 |   | $0 |   |
|--------|-------------------|----|--------|----|--------|

|   | Effective tax rate | 0.0% |   | 0.0% |   |
|--------|--------------------|------|--------|------|--------|

| The net change in the valuation account was $2,623,088 and $52,700, in the years endedDecember 31, 2007 and 2006, respectively. The valuation allowance has been estimated in anamount equal to the projected future benefit of the loss carryforward because there is noassumption that the Company will generate sufficient income to utilize the tax benefit. TheCompany has incurred losses since its inception and has filed no income tax returns. The lossesincurred to date may be limited due to changes in control of the Company and limitations on thedeductibility of fees for services paid through the issuance of common stock.  In the event that allreturns are filed and accepted by the taxing authority, the Company will have unused net operatinglosses available for carryforwards of approximately $8,540,000 that will start to expire in 2016in the United States of America. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| As a result of not filing all income tax returns, the Company may be subject to assessment ofpenalties. As of April 15, 2008, no assessments have been received and the likelihood of receivingsuch assessments or negotiating a settlement in the event assessments are received is difficult toestimate. Accordingly, the Company has not provided for any payments that may be made if suchpenalties are assessed. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 3 | 2007 Stock Ownership Plan |
|--------|---------------------------|

| In October 2007, the board of directors adopted the 2007 Stock Ownership Plan (the “2004 Plan”),and authorized 2,000,000 shares. Under the 2007 Plan, the Company may make awards toemployees, non-employees, directors, consultants, and independent contractors of shares ofcommon stock or derivative securities such as incentives and non-qualified stock options. The2007 Plan stipulates no terms or conditions for the awards to be granted. The value of the stockissued to consultants is based on fair market value of the goods or services received or stock pricesobtained from published data. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| During 2007, a total of 50,000 shares, with a weighted-average fair value of $.6357 per share,were sold to a consultant under the 2007 Plan. |
|----------------------------------------------------------------------------------------------------------------------------------------------|

| Note 4 | Impairment Charge |
|--------|-------------------|

| In November 2006, the Company entered into three separate asset purchase agreements, wherebythe Company acquired certain web site domains and internet web pages associated therewith (the“web assets”), in exchange for 1,950,000 restricted shares of common stock. There was noverifiable fair value of the web assets. The Company therefore recorded these assets at the fairvalue of the issued shares. The fair value of the shares was determined to be $52,000. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Following a change in control transaction occurring in January 2007, the Company’s web pagepublishing business was assigned to a subsidiary.  During 2006 and 2007, the web page publishingassets did not generated any revenues.  Pursuant to a settlement agreement, in January 2008, theCompany’s web page publishing business was assigned to a third party. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Pursuant to SFAS 144, the Company has determined the carrying value of the web assets exceedsthe sum of their expected future cash flows and, as of December 31, 2006, recorded an impairmentcharge of $52,000.  This charge, equal to the entire carrying value of the web assets, is reflectedin the Company’s statements of operations. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 5 | Related Party Transactions |
|--------|----------------------------|

| During 2006, the Company acquired certain web site domains and Internet web pages associatedtherewith from related parties, in exchange for 1,950,000 restricted shares of common stock.  Thefair value of these shares was determined to be $52,000. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| During 2006, the Company also issued a total of 3,525,000 shares of common stock for retentionbonuses to Company officers.  The aggregate fair value of these shares was determined to be$80,500. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| In January 2007, the Company issued 3,000,000 shares of common stock in payment of a retentionbonuses to a Company officer.  The fair value of these shares was determined to be $80,000. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| During 2007, the Company issued a total of 30,000 to two of its directors as bonuses.  Theissuance of these shares resulted in $30,000 in general and administrative expense in theaccompanying statement of operations.  The Company measured the transactions at the date ofissuance at the then-quoted market price.  There are no performance commitments or penalties fornon-performance, therefore the Company recorded the expense at the date of issuance. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 6 | Fair Value of Financial Instruments |
|--------|-------------------------------------|

| The Company’s financial instruments consist of cash, accounts payable and long-term debt. Thecarrying amount of these financial instruments approximates fair value due either to length ofmaturity or interest rates that approximate prevailing market rates unless otherwise disclosed inthese consolidated financial statements. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 7 | Acquisition of ALL Energy Company |
|--------|-----------------------------------|

| On April 9, 2007, the Company acquired ALL Energy Company, a Delaware corporation, pursuantto which ALL Energy Company became a wholly-owned subsidiary of the Company.  TheCompany issued 37,995,000 shares of stock in exchange for 100% of the stock of ALL EnergyCompany.  The transaction was accounted for under the purchase method of accounting andresulted in net assets in the amount of approximately $1,630,000 being consolidated into thefinancial statements of the Company consisting mostly of cash of approximately $359,000 andland and other capitalized assets of approximately $1,149,000. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| The activity related to ALL Energy Company from January 1, 2007, through December 31, 2007,has been included in the accompanying financial statements.  The statement of operations andstatement of cash flows for the year ended December 31, 2006 and from commencement ofdevelopment stage (June 7, 2004) to December 31, 2007 in the accompanying financial statementshave been restated to include the activity of ALL Energy Company, a previously separate entity. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 8 | Forward Split of Common Stock |
|--------|-------------------------------|

| In May 2007, the Company’s board of directors approved a forward split of the Company’scommon stock at a ratio of one(1)-new-share-for-every-two(2)-shares-owned, effective May 14,2007.  The financial statement presentation has been adjusted to reflect this forward stock split. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 9 | Prepaid Expenses |
|--------|------------------|

| At September 30, 2007, the Company had prepaid expenses of $52,637, of which $19,636 relatesto expenses incurred in connection with its efforts in acquiring certain ethanol-related businesses.In 2007, the Company determined that its efforts to acquire an ethanol plant were not likely to berealized.  The capitalized costs in the amount of $87,820 related to its efforts to acquire thatethanol plant were expensed and are included in the statement of operations as impairment charge.In future periods, prepaid expenses associated with successful acquisitions are capitalized, whilethose associated with unsuccessful acquisition efforts are expensed.  The remaining $33,001represents prepaid insurance. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 10 | Land, Equipment and Construction in Progress |
|---------|----------------------------------------------|

| The Company owns, as a result of its acquisition of ALL Energy Company, 152.5 acres nearManchester, Iowa, which is carried at its cost of $951,238.  The Company also acquiredapproximately $1,100 of office equipment.  Since its inception in August 2006, ALL EnergyCompany has paid approximately $187,024 in construction-related expenses associated with theCompany’s proposed ethanol production facility to be constructed on the Manchester, Iowa, land. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 11 | Long-term Debt |
|---------|----------------|

| On April 5, 2007, the Company obtained financing on the land discussed in Note 6. In thetransaction, the Company obtained $488,000 in loan proceeds. The loan associated with thefinancing transaction has a three year term, with interest at “prime” and monthly interest-onlypayments until the end of the term. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 12 | Non-cash Investing and Financing |
|---------|----------------------------------|

| In conjunction with the acquisition discussed in Note 2, the Company received net assets, afterassuming certain liabilities, of approximately $1,271,000 net of approximately $359,000 of cashreceived in the acquisition. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 13 | Capital Stock |
|---------|---------------|

| Stock for Services |
|--------------------|

| During 2007, the Company issued a total of 540,000 shares of common stock to third-partyconsultants for services, resulting in $374,700 in non-cash compensation expense included inprofessional and legal expenses and consulting fees in the accompanying statements of operations.The Company measured the transactions at the respective dates of issuance at 50% of the then-quoted market price.  There are no performance commitments or penalties for non-performance,therefore the Company recorded the expense at the date of issuance. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| During 2007, the Company issued a total of 3,030,000 to two of its directors and one of its formerofficers as bonuses.  The issuance of these shares resulted in $110,000 in general andadministrative expense in the accompanying statement of operations.  The Company measuredthe transactions at the date of issuance at the then-quoted market price.  There are no performancecommitments or penalties for non-performance, therefore the Company recorded the expense atthe date of issuance. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| During the first nine months of 2006, the Company did not issue any shares to third-partyconsultants for services. |
|--------------------------------------------------------------------------------------------------------------------|

| In September 2006, the Company issued a total of 3,375,000 shares as a retention bonus to oneof its officers.  The shares had an estimated value of $76,500 at the date of issuance. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 14 | Warrants |
|---------|----------|

| In December 2007, the Company issued a total of 12,540,732 common stock purchase warrantsto purchase a like number of shares our common stock, at an exercise price of $.55 per share. Allof these warrants are currently exercisable and expire in 2017.  These warrants were issued to twothird parties, in consideration of their invaluable consulting services in assisting the Company inaccomplishing its business objectives.  The issuance of these warrants resulted in a compensationexpense of $6,075,213.  In addition, it is possible that, in future periods, the Company will incurcharges against earnings as a result of the issuance of these warrants.  The timing or amount ofany such future charges cannot be predicted. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| In conjunction with the Company’s authorizing the issuances of these warrants, the Company’sboard of directors determined it to be in the best interest of the Company and its shareholders that,in a manner and structure to be determined in the future, the Company pay a sum of cash to theissuees of the warrants in a total amount, net of income taxes, of approximately $6,100,000.  Eachportion of this amount of compensation will be expensed by the Company in the then-currentperiod of its payment. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 15 | Subsequent Event |
|---------|------------------|

| In January 2008, a total of 1,238,100 shares of Company common stock were cancelled, pursuanta settlement agreement. |
|----------------------------------------------------------------------------------------------------------------------|