<PAGE>
                               UNITED STATES
                    SECURITIES AND EXCHANGE COMMISSION
                           Washington, DC  20549
                                Form 10-QSB
(Mark one)

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

       For the quarterly period ended: September 30, 1999

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

       For the transition period from ____________ to _____________

                     Commission file number: 0-023532

                     AMERICAN DIVERSIFIED GROUP, INC.
                     --------------------------------
     (Exact name of small business issuer as specified in its charter)

                   Nevada                         88-0292161
       (State or other jurisdiction of           (IRS Employer incorporation or
        organization)                             Identification No.)

             110 North Center St. Suite 202, Hickory, NC 28601
                 ----------------------------------------
                 (Address of principal executive offices)

                              (828) 322-2044
                         -------------------------
                        (Issuer's telephone number)
            __________________________________________________
            (Former name, former address and former fiscal year,
                         if changed since last report)

        Check  whether  the issuer (1) filed all reports  required  to  be
filed  by  section  13 or 15 (d) of the Exchange Act during  the  past  12
months  (  or for such shorter period that the registrant was required  to
file such report (s), and (2) has been subject to such filing requirements
for the past 90 days.  Yes [ X ]    No [   ]

                   APPLICABLE ONLY TO CORPORATE ISSUERS
        State  the  number of shares outstanding of each of  the  issuer's
classes of common equity, as of the latest practicable date:

Common Stock, $.001 par value 274,887,560 shares outstanding as of October
30, 1999.

Transitional Small Business Disclosure Format:  Yes __  No  X

                               Page 1 of 18
</PAGE>
<PAGE>


                                   INDEX


                     AMERICAN DIVERSIFIED GROUP, INC.


PART I FINANCIAL INFORMATION


Item 1.   Financial Statements (Unaudited)

          Balance Sheet - September 30, 1999 (Unaudited).

          Statements of Loss - Three months and nine months ended September
          30, 1999 and 1998 (Unaudited).

          Statements of Cash Flows - Three months and nine months ended
          September 30, 1999 and 1998 (Unaudited).

          Notes to Financial Statements
</PAGE>
<PAGE>

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

         Except   for  the  historical  information  herein,  the  matters
discussed  in  this  quarterly report includes forward-looking  statements
that  may involve a number of risks and uncertainties. Actual results  may
vary  based upon a number of factors, including, but not limited to,  risk
in  product availability, product technology changes, market acceptance of
new  products and services, questions of continuing demand, the impact  of
competitive products and pricing, changes in economic conditions and other
risk  factors  contained  in the Company's most recent  filings  with  the
Securities and Exchange Commission ("SEC").


Results of Operations
---------------------
        American  Diversified Group, Inc.(the "Company") is a  development
stage  company. The disclosure in the quarterly report should be  read  in
conjunction with the Company's annual report on Form 10-KSB/A for its year
ended  December  31, 1998, which was filed with the SEC, as  well  as  the
Quarterly  Reports on Form 10-QSB for the three month period  ended  March
31,  1999  and  the  six  month period ended June  30,  1999.  During  the
Company's  three  and  nine month periods ended September  30,  1999,  the
Company  incurred net losses of $474,689 ($.00 per Share)  and  $1,138,834
($.00  per Share) compared to net losses of $636,996 ($.00 per Share)  and
$1,511,352  ($.00  per  Share) for the comparable  three  and  nine  month
periods for the prior year.

        The  Company  reported no sales revenues for the  three  and  nine
month  periods ended September 30, 1999, compared to sales revenues of  $0
and  $66.422,  respectively, for the three and nine  month  periods  ended
September  30,  1998. These revenues during 1998 resulted  from  sales  of
generic  pharmaceuticals, telecommunication sales  and  miscellaneous,  as
discussed below.

        The  Company's  net  losses for the three and nine  month  periods
ended  September 30, 1999, were the result of the lack of  sales  revenues
during  the  periods and the continued expenses associated with continuing
to  operate  and  maintain  its offices, professional  fees  and  expenses
associated with being a reporting public company, which include accounting
and  printing/EDGAR preparation and filing fees. The Company incurred non-
cash  expenses  associated with the issuance of shares  to  its  executive
officer,  directors and consultants for continued services to the  Company
during  the three period ended September 30, 1999, in the aggregate amount
of  $432,102, including additional consideration represented by the waiver
by  the  Company of options payments due from a director and  consultants,
but  excluding  $42,000  advanced by the Company to  GTCC  to  expand  its
Internet  telephony  business as an affiliate  of  the  Company.  Non-cash
compensation in connection with the issuance of shares expensed during the
nine  month  period  ended September 30, 1999, was  $1,006,910,  including
additional  consideration  represented by the waiver  by  the  Company  of
options  payments  due from a director and consultants  but  excluding  of
$90,000  advanced by the Company to GTCC to expand its Internet  telephony
business as an affiliate of the Company.

        In  order for the Company to pay its operating expenses, including
office  rents,  communication expenses, accounting and  bookkeeping  fees,
printing and EDGAR preparation costs, publication costs, and other general
and  administrative  expenses, the Company was dependent  upon  the  funds
provided  by  non-interest  bearing loans  from  the  Company's  executive
officer, director and shareholders. In addition, during the third  quarter
of 1999, the Company received funds from the exercise of options of $5,000

</PAGE>
<PAGE>

and  loans from shareholders of $10,000. There can be no assurance of  any
additional exercise of options, at the end of the quarter ended  September
30,  1999,  the  Company had outstanding 2,000,000 options granted  to  an
individual  consultant  options. While the Company  also  has  outstanding
options  granted  to  private  investors in  the  Company's  unit  private
placement,  which  resulted in net proceeds of $122,000  during  1997  and
$56,000  during 1998, there can be no assurance that any of these  options
will be exercised in the near future, if ever, because the option exercise
price  on  these options is at $.08 per share, which is in excess  of  the
recent prevailing price range of $.017 to $.025. Further, there can be  no
assurance, based upon present market price of the shares, that it will  be
able  to  raise  additional  private  placement  funding,  at  terms   and
conditions  satisfactory  to the Company, nor  is  the  Company  presently
soliciting any private placement proceeds.

        The Company, during the nine months ending September 30  1999, has
continued  to  pursue efforts to generate sales orders for  pharmaceutical
products  in West Africa. These efforts however, have not been  successful
during the past six months and indeed the Company has been disappointed in
its ability to achieve registration approvals that are necessary and could
lead  to  generate  sales  revenues for pharmaceutical  products  in  West
Africa.  While  the  Company's consulting agreement with  Emerging  Trends
Linkages  Corp.  (ETLC) expired in June, 1999, the  Company,  however,  is
continuing  negotiations  with  ETLC for the  purposes  of  extending  its
relationship with ETLC. In fact, ETLC has continued to explore the use  of
new  representatives for West Africa, which the Company hopes will  result
in  new  registrations and approvals for pharmaceutical  products  in  the
future.  ETLC  has  recently  had samples of  32  pharmaceutical  products
delivered to potential end users and distributors in West Africa for  such
purpose,  together  with appropriate labeling and other  documentation  in
French,  with  certificates of analysis from the  manufacturer  in  India.
There can be no assurance as to the timing or quantity of any orders  that
may  be received, as the Company has previously hoped for more expeditious
process  for  achieving  orders, which has  not  occurred.  The  Company's
ability,  if  any,  to  again  generate  revenues  from  such  efforts  is
contingent upon the Company concluding an extension with ETLC at terms and
conditions that are mutually agreeable, as well as the ability  to  comply
with  the procedures applicable to the sale of such products to the public
and  private sectors in the markets in West Africa where this business  is
being  pursued.  The  Company does believe that  it  has  sourced  quality
products from several third party manufacturers and distributors,  located
in  India  at  competitive prices necessary for the Company  to  meet  the
pricing structure in West Africa and elsewhere.

        The  Company,  in  May, 1999, was informed by  ETLC  that  initial
deliveries were made of the dengue fever test kits in South America. These
test  kits, which are manufactured in US, require funding from  the  South
American customers prior to any payments being made the Company and the US
manufacturer.

         The  Company's  relationship  is  directly  through  ETLC,  whose
representative  has  continued  to  active  in  the  process  of  securing
registration approval of the dengue fever test kits in South America. This
process  has taken longer than both the Company and ETLC have anticipated,
but  these  efforts  are being actively pursued and the representative  to
Brazil  has  met with appropriate officials in the States of  Roraima  and
Amazon.

        The  Company believes that it should be able to generate  revenues
from  the  sale  of  dengue  fever test kits.  However,  this  ability  is
dependent  upon  the Company successfully concluding an extension  of  its
relationship with ETLC, with whom the Company has had a continued business
relationship  since  1995, as well as securing governmental  approvals  in
Brazil.
</PAGE>
<PAGE>

        The  Company,  during the nine month period  ended  September  30,
1999,  amended  its  interim  stock purchase/loan  agreement  with  Global
Transmedia Communications Corporation (GTCC) of Miami, Florida,  with  the
execution of a secured convertible debenture, dated as of March  15,  1999
(the  "GTCC Note"). To date, the Company has advanced a total of  $312,350
under  the terms of the GTCC Note, which grants the Company the  right  to
acquire  45%  of  GTCC, based on and dependent upon GTCC  achieving  sales
revenues of at least $500,000 by December 31, 1999. Further, in the  event
that  GTCC achieves sales revenues of at least $1.2 million by such  date,
GTCC  shall  have the right to "put" to the Company the 45%  of  the  GTCC
shares.  In  addition, the Company has the right to acquire the  remaining
55%  of  GTCC,  in the event that GTCC receives a bona fide offer  from  a
third party, at the same terms and conditions as offered by the bona  fide
third  party.  The  Company has not yet received  any  revenues  from  its
agreement  with GTCC, and if the Company elects to convert the GTCC  Note,
it  will  not  receive  any  revenues from the sales  generated  by  GTCC.
However,  the  GTCC  Note  provides for repayment  of  the  principal  and
interest  over  a  36  month  period following the  Company's  demand  for
repayment, commencing after December 31, 1999. As of September  30,  1999,
GTCC has generated revenues of $94,000, and projects that it will generate
and receive additional revenues prior to the end of the calendar year.

         GTCC   has  recently  introduced  enhancements  to  its  Internet
telephony business service, to permit its subscribers/users to use  GTCC's
service  world-wide.  Initially,  its services  were  largely  limited  to
Internet  telephony  from  South America to  the  US,  but  with  the  new
enhancements,  GTCC's subscribers may access and place  Voip  (voice  over
internet  protocol)  telephony communications of  full  voice,  data,  fax
features to and from Asia, South America and elsewhere, to the US  or  any
other location.

        The  Company, based upon the representations received  from  GTCC,
hopes  that  prior to the end of fiscal 1999, GTCC will begin to  generate
increasing  revenues from operations, as it increases its subscriber  base
for  its  Voip  telephony business include prepaid calling cards  at  very
competitive rates. GTCC recently entered into an agreement with a group of
telecommunication  companies in Venezuela.  GTCC  is  in  the  process  of
installing  circuits  for such service prior to year end.  Such  agreement
calls for the purchase of a minimum 2,100,000 minutes, and up to 3,900,000
minutes  in calling volume, once the Voip circuits are activated. Assuming
that to Voip circuits are activated and the Venezuelan group fulfills  its
contract  commitment  to GTCC, the purchase of minutes  should  result  in
annual revenues estimated to be $780,000.

        The  Company shall continue to evaluate the business of  GTCC,  to
determine whether and when to convert the GTCC Note into equity  in  GTCC,
from  which  the  Company will be able to recognize and receive  revenues.
GTCC's ability to generate increasing operating revenues is dependent upon
GTCC's  capacity  to  satisfy the potential customer requirements  in  its
markets of which there can be no assurance.

        The  Company  has  been  informed by GTCC that  it  is  finalizing
agreements  to offer its Voip services in Europe and Eastern Europe.  Upon
completion  of these agreements, GTCC will commence installing its  system
in  Europe and Eastern Europe, a part of its existing agreement with World
Telecom Labs, located in Belgium. It is anticipated that this Voip  system
can be operational starting in the first quarter of fiscal, 2000, although
unforeseeable delays could occur.

        The Company continues to be dependent upon the willingness of  the
Company's  executive  officers/directors and  its  consultants  to  accept
shares  as  compensation  for continued services  to  the  Company,  which
services  the  Company  considers to be  valuable  and  necessary  to  its
continued operations.
</PAGE>
<PAGE>

Liquidity and Capital Resources
-------------------------------
        The  Company, at September 30, 1999, had current assets of $3,394,
compared  to  current assets of $7,516 at September 30, 1998, and  current
assets  of  $3,016  at  the year ended December 31, 1998.  To  assist  the
Company  in  its cash  flow requirements which are presently estimated  at
$5,000  per month, the Company has generated $57,000 from the exercise  of
options  during  the  nine month period through  September  30,  1999.  In
addition, the Company's executive officer, director and shareholders  have
loaned  the  Company $21,000 during the nine month period ended  September
30,  1999,  of  which $11,500 has been repaid. The Company may  determine,
depending  upon  the  prevailing  stock  price  of  its  shares,  to  seek
subscriptions  from the sale of securities to private investors,  although
there  can  be  no  assurance that it will be successful in  securing  any
investment from private investors at terms and conditions satisfactory  to
the  Company,  if  at all. The Company may also seek to generate  revenues
from the exercise of options, at terms to be negotiated.

        The  Company also hopes to receive revenues from sales of Internet
telephony  products  and services in GTCC's markets,  and  from  sales  of
pharmaceutical  products in West Africa, and dengue  fever  test  kits  in
South  America. The amount of such sales revenues cannot at this  time  be
determined.  Indeed, it has taken longer than the Company  anticipated  to
generate  revenues from orders and purchase requests in all its  areas  of
business that the Company has continued to pursue.

        The Company has also been awarded a default judgment in the amount
$125,000  against Imaging Systems Synergies Inc. ("ISS"), by the Court  in
the  11th  Judicial  Circuit, Dade County, FL.  The  Company  is  pursuing
collection efforts against ISS or any successor entity. There  can  be  no
assurance  that the Company will be successful in perfecting its  judgment
against ISS and in collecting damages awarded by the Court.

        In  addition, the Company must conclude at satisfactory terms  and
conditions  the  extension of its consulting relationship  with  ETLC,  in
order  to secure the benefit it hopes to derive from future pharmaceutical
sales  and  dengue  fever test kit sales. The consulting arrangement  with
ETLC,  which commenced in 1995, and was extended in November 1998  through
June, 1999, is presently being discussed and the Company believes that  it
will  successfully conclude such negotiations prior to the end  of  fiscal
1999.  Nevertheless, ETLC has indicated that any orders that it  generates
for  pharmaceuticals and test kits from its efforts while  under  contract
agreement  with  the  Company will be delivered to the  Company,  for  the
benefit of the Company.

        Based  upon  the  Company's present liquid  resources,  after  the
expenses  that were paid by the Company following receipt of the  proceeds
from  the exercise of options and officer director and shareholder  loans,
which  expenses  include  office  expense,  professional/accounting  fees,
transfer  agent  and printing service fees, and telecommunications  costs,
among  other  expenses, and based upon its present operating  expenses  of
$5,000  per month, and the oral commitment of its chief executive  officer
to  loan  funds on a non-interest bearing basis to assist the  Company  in
paying  its  operating expense, the Company will be able  to  operate  for
approximately four months, if no revenues are generated from operations or
other  sources. However, the Company does anticipates receipt of operating
revenues, in the near term, as a result the business developments by GTCC,
as well as revenues from pharmaceutical and medical product sales.
</PAGE>
<PAGE>

        The  Company's monthly operating expenses of approximately  $5,000
during  the nine month periods ended September 30, 1999, does not  reflect
any salary to Dr. Jerrold R. Hinton, the Company's sole executive officer,
which  salary  has been accrued, but not paid, at the rate of  $8,333  per
month,  during the three year period which commenced in October, 1996  and
ended  September  30,  1999. The Company does not  contemplate  commencing
payment  to Dr. Hinton of any salary provided in his employment  agreement
or  thereafter, unless and until it begins to generate positive cash  flow
from operations.

        The Company, in October, 1999, determined to settled the potential
claims  of Judith Grossman and Corporate Seminar Advisors under consulting
agreements  and  arrangements  with  the  Company,  which  agreements  and
arrangements were terminated in writing to the Company by Ms. Grossman and
Corporate  Seminar Advisors. In consideration for the termination  and  to
settle  any  and all claims, asserted or unasserted, of Ms.  Grossman  and
Corporate Seminar Advisors, against the Company, the Company issued to Ms.
Grossman  1  million shares of stock without legend and 2  million  shares
pursuant  to  Rule  144.  The  shares issued to  Ms.  Grossman  have  been
accounted  for and expensed as consulting fees. The Company has  not  made
any  settlement  with  Messrs. Matthew Milo  or  Joseph  Quattrocchi,  who
resigned  as  consultants  to the Company in  December,  1998.  While  the
Company has received written demand by such persons for compensation under
the  consulting agreement, the Company has taken the position that it owes
no  compensation  to such former consultants, nor does it  owe  any  loans
payable  to Messrs. Milo or Quattrocchi. This position is based  upon  the
consultants'  resignation and their failure to provide  the  Company  with
consulting  services for the two and one-half year term  required  of  the
consulting  agreement. The Company also believes that it  has  meritorious
defenses  to  any claim that Messrs. Milo and Quattrocchi may  bring,  and
indeed  has counterclaims that it could pursue in the event of any  claim.
Reference is made to the discussion in the Company's Annual Report on Form
10-KSB/A  for  1998,  and  specifically to the disclosure  Item  3,  Legal
Proceedings,


PART II.    OTHER INFORMATION

Item 1.     Legal Proceedings

            See Footnote E to Financial Statements

Item 2.     Changes in Securities

            NONE

Item 3.     Defaults upon Senior Securities

            NONE

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

            NONE

Item 5.     Other Information

            NONE

Item 6.     Exhibits and Reports on Form 8-K

            Exhibit 27

</PAGE>
<PAGE>

EXHIBIT 27

ARTICLE 5
THIS  SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED  FROM  THE
BALANCE  SHEET  (UNAUDITED)  AND  THE  OPERATIONS  FOR  THE  PERIOD  ENDED
SEPTEMBER 30 (UNAUDITED) AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE  TO
SUCH FINANCIAL STATEMENTS.

                                SIGNATURES

       In accordance with the requirements of the Securities Exchange Act
of 1934, the registrant caused this report caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.


       AMERICAN DIVERSIFIED GROUP, INC..
       (Registrant)





November 15, 1999            By:  /s/Jerrold R. Hinton
                                  Jerrold R. Hinton
                                  President, Chief Executive Officer and
                                  Chief Financial Officer
</PAGE>
<PAGE>

                     AMERICAN DIVERSIFIED GROUP, INC.
                     FORMERLY TERA WEST VENTURES, INC.
                       (A DEVELOPMENT STAGE COMPANY)
                           FINANCIAL STATEMENTS
                                (UNAUDITED)
                            SEPTEMBER 30, 1999
</PAGE>
<PAGE>
                     AMERICAN DIVERSIFIED GROUP, INC.
                     FORMERLY TERA WEST VENTURES, INC.
                       (A DEVELOPMENT STAGE COMPANY)
                           FINANCIAL STATEMENTS
                                (UNAUDITED)
                            SEPTEMBER 30, 1999




                                                 Page


Balance Sheet                                     12

Statements of Loss                                14

Statements of Cash Flows                          16

Notes To Financial Statements                     18
</PAGE>
<PAGE>


                     AMERICAN DIVERSIFIED GROUP, INC.
                     FORMERLY TERA WEST VENTURES, INC.
                       (A DEVELOPMENT STAGE COMPANY)
                               BALANCE SHEET
                                (UNAUDITED)
                         AS OF SEPTEMBER 30, 1999

<TABLE>
<CAPTION>
<S>                           <C>                   <C>
Balance Sheet
                                     Sep. 30, 1999         Dec. 31, 1998
                                       (UNAUDITED)             (AUDITED)
ASSETS
------
Current Assets:
   Cash                                       $938                   $30
   Refundable taxes                          2,456                 2,986
                                             -----                 -----
     Total Current Assets                    3,394                 3,016
                                             -----                 -----
Property and Equipment
(net of $10,805 accum. depr.)                5,999                 8,753
                                             -----                 -----
Other Assets
   Deposits                                    570                   570
   Contractual advances to
   acquire common stock                    312,350               222,350
   Miscellaneous receivable
   (less $100,000 allowance)                     -                     -
     Total Other Assets                    312,920               222,920
                                           -------               -------
Total Assets                              $322,312              $234,689
                                           =======               =======
LIABILITIES AND
DEFICIENCY IN ASSETS
Liabilities
   Accounts payable                        $13,961               $15,174
   Accrued expenses and
   other liabilities                           784                11,523
   Accrued salary payable
   to officer                              300,000               225,000
   Notes payable-stockholders              209,421               215,671
                                           -------               -------
     Total Current Liabilities             524,166               467,368
                                           -------               -------
Deficiency In Assets
Preferred Stock, Series A,
   $10 par value, 50,000
   shares authorized; none
   outstanding                                -                     -
Common Stock, par value
   $.001 per share,
   authorized
   350,000,000 shares;
   issued and; outstanding
   272,887,560 shares; and
   230,762,560 shares issued
   and outstanding                         272,887               230,762
Additional Paid-In Capital              18,954,994            18,224,619
Deferred Consulting Fees                      -                 (397,160)
Deficit Accumulated Prior
   Development Stage                    (8,811,789)           (8,811,789
Deficit Accumulated During
   Development Stage                   (10,617,945)           (9,479,111)
                                        ----------             ---------
     Total Deficiency in Assets           (201,853)             (232,679)
                                        ----------             ---------

Total Liabilities and
Deficiency in Assets                      $322,313              $234,689
                                        ==========             =========
See accompanying nores.
</TABLE>
</PAGE>
<PAGE>

                     AMERICAN DIVERSIFIED GROUP, INC.
                     FORMERLY TERA WEST VENTURES, INC.
                       (A DEVELOPMENT STAGE COMPANY)
                             STATEMENT OF LOSS
                                (UNAUDITED)
                         AS OF SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
<S>                 <C>          <C>          <C>          <C>          <C>
                                                                         Cumulative
                      For the 9     For the 9    For the 3    For the 3  During The
                         Months        Months       Months       Months  Development
                          Ended         Ended        Ended        Ended        Stage   nt
                        Sep 30,       Sep 30,      Mar 31,      Mar 31,  Jan 1, 1996
                           1999          1998         1999         1998  Sep 30,1999
                    (Unaudited)   (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)
Revenues
   Sales                     $0       $66,422           $0           $0     $137,191
   Cost of Sales              -        56,630            -            -      125,163
     Gross Margin             0         9,792            0            0       12,028

Expenses
   Consulting fees    1,006,910     1,408,313      432,102      617,971    9,697,725
   Officer's salary      75,000        75,000       25,000       25,000      300,000
   Professional fees     25,148        14,337        8,523        2,374      166,998
   Reimbursed
   consultants exp.        -             -            -            -         127,974
   Telephone              7,290         9,250        1,503        2,964       81,578
   Other operat. exp.    24,486        22,046        7,561       (9,313)     230,915
     Total Expenses   1,138,834     1,528,946      474,689      638,996   10,585,190
                      ---------     ---------      -------      -------   ----------
Loss From Operations (1,138,834)   (1,519,154)    (474,689)    (638,996) (10,573,162)
                      ---------     ---------      -------      -------   ----------
Other Income(Espense)      -             -            -            -            -
   Forgiveness and
   Indebtness              -             -            -            -          50,000
   Gains on settlements    -             -            -            -           4,795
   Loss on abondonment
   of acquisation          -             -            -            -        (107,380)
   Other Income            -            7,802                      -           7,802
     Net Other  Income
     (Expenses)            0            7,802         -            -         (44,783)
Net Loss            ($1,138,834)  ($1,511,352)   ($474,689)   ($638,996)($10,617,945)
                      =========    ==========     ========     ========  ===========
Weighted Avarage
Number
of common Shares
outstanding
(Primary and
Fully deluted)      250,212,194   205,095,892  262,814,190  224,306,038  128,850,248
                    ===========   ===========  ===========  ===========  ===========
Basic Net Loss Per
Share
Primary and
Fully Deluted           ($0.00)       ($0.01)      ($0.00)      ($0.00)      ($0.08)
                        =======       =======      =======      =======      =======
See accompanying notes
</TABLE>
</PAGE>
<PAGE>
                     AMERICAN DIVERSIFIED GROUP, INC.
                     FORMERLY TERA WEST VENTURES, INC.
                       (A DEVELOPMENT STAGE COMPANY)
                          STATEMENT OF CASH FLOWS
                                (UNAUDITED)
                         AS OF SEPTEMBER 30, 1999

<TABLE>
<CAPTION>
<S>                           <C>            <C>            <C>
Statements Of Cash Flows
                                                               Cumulative
                                                               During The
                                  For the 9      For the 9    Development
                                     Months         Months          Stage
                                      Ended          Ended    Jan 1, 1996
                              Sep. 30, 1999  Sep. 30, 1998   Sep 30, 1999
                                (Unaudited)    (Unaudited)    (Unaudited)

Cash Flows From Operating
Activities:
   Net Loss                    ($1,138,834)   ($1,511,352)  ($10,617,945)
   Adjustments to reconcile
   net loss to net
   cash used in operating
   activities
   Depreciation                       5,385          5,281         23,267
   Amortization of deferred
   consulting fees                  397,160        634,913      5,257,500
   Loss on abondonment of
   acquisations                        -           634,913        107,380
   Forgiveness of
   indebtedness                        -              -           (50,000)
   Common stock exchanged
   for service                      625,500        788,400      4,485,457
   (Increase) decrease in
   assets:
   Accounts receivable                    -         48,391              -
   Inventory                              -              -          5,000
   Other current assets                 530              -            530
   Increase (decrease) in
   liabilities:
   Accounts payable and
   accrued liabilities               63,047         30,996        296,918
Net Cash Used By Development
Stage Operating Activities          (47,211)        (3,371)      (491,893)
                                     ------          -----        -------
Cash Flows From Investing
Activities
   Acquisations of property
   and equipment                     (2,631)        (2,124)      (120,265)
   Payments for possible
   acquisations                           -              -       (107,380)
   Deposits                               -              -           (570)
Net Cash Used By Investing           (2,631)        (2,124)      (120,265)
   Activities                         -----          -----        -------

Cash Flows From Financing
Activities
   Sales of common stock             57,000         (6,000)       392,500
   Proceeds(net) from notes
   payable to stockholders           (6,250)        17,942        274,652

   Payments on notes payable
   to potential investees                 -              -        (40,000)
   Payments for loans
   receivable from pot. investees         -        (15,000)       (15,000)
   Cash overdraft                         -              -              -
Net Cash Provided By
Financing Activities                 50,750         (3,058)       612,152
                                     ------         -------       -------
Net Increase(Decrease) in Cash          908         (8,533)            (6)

Cash, Beginning                          30         11,069            944
Cash, Ending                           $938         $2,516           $938

Supplemental Disclosures

Cash paid for:
   Interest                             482              -            482
   Income taxes                           -              -              -

Cash and common stock given
by
Shareholders to potential
investees on behalf of the
Company for notes payable                 -              -        167,358

In addition to amounts
reflected above, common
stock was issued for:
   Contractual advances to
   acquire common stock              90,000              -        130,000
   Settlement of debt                     -              -          7,000
   Consulting services              625,500        996,400      9,292,900
                                    =======        =======      =========
See accompanying notes.
</TABLE>
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<PAGE>
                     AMERICAN DIVERSIFIED GROUP, INC.
                     FORMERLY TERA WEST VENTURES, INC.
                       (A DEVELOPMENT STAGE COMPANY)
                       NOTES TO FINANCIAL STATEMENTS
                                (UNAUDITED)
                            SEPTEMBER 30, 1998

NOTE 1 - BASIS OF PRESENTATION

The  accompanying unaudited financial statements reflect all  adjustments,
which, in the opinion of management, are necessary for a fair presentation
of  the  financial position and the results of operations for the  interim
periods presented.  All adjustments are of a normal recurring nature.

Certain  financial information and footnote disclosures which are normally
included  in  financial statements prepared in accordance  with  generally
accepted  accounting  principles, but which are not required  for  interim
reporting  purposes,  have  been condensed or omitted.   The  accompanying
financial  statements  should be read in conjunction  with  the  financial
statements  and  notes thereto as of December 31, 1998  contained  in  the
Company's Form 10-KSB/A.


NOTE 2 - EARNINGS (LOSS) PER SHARE

Per share information is computed based on the weighted average number  of
common shares outstanding (primary and fully diluted) during the period.

</PAGE>