<PAGE>
                            UNITED STATES
                  SECURITIES AND EXCHANGE COMMISSION
                        Washington, D.C.  20549

                            Form 10-QSB

(Mark one)

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

      For the quarterly period ended: March 31, 1999
                                      --------------
[ ]   TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE EXCHANGE ACT

      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 identification No.)
     incorporation or organization)

            110 North Center Street, 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  251,137,560  shares  outstanding  as  of  June 29,
1999.

  Transitional  Small Business Disclosure Format:   Yes  __   No   X


                                Page 1
</PAGE>
<PAGE>

                                INDEX

                AMERICAN   DIVERSIFIED  GROUP,   INC.
                -------------------------------------

PART I   FINANCIAL INFORMATION

Item 1.  Financial Statements (Unaudited)

         Balance Sheet - March 31, 1999  (Unaudited).

         Statements of Operations - Three months and ended March 31, 1999
         and 1998 (Unaudited).

         Statements of Cash Flows -  Three months ended  March  31, 1999
         and 1998 (Unaudited).

         Notes to Financial Statements


                                Page 2
</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. Acutal results may vary based upon a number of
factors, including, but not limited to, risk in  product availiabilty, 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 for its year ended December
31, 1998, which was filed with the SEC. During the Company's three month
period ended March 31, 1999, the Company incurred a net loss of $424,531
($.0018 per Share) compared to a loss of $600,472 ($.0032 per Share) for the
comparable three month period for the  prior year.

The  Company reported no sales revenues for the three month period ended
March 31, 1999, compared to sales revenues of $52,750 for  the  three month
period ended March 31, 1998, which were represented by the sales  revenues
from  generic pharmaceuticals and  telecommunication sales.

The Company's net  loss  for  the period ended March 31, 1999, was prin-
cipally the result of the lack of sales revenues during the quarter, the con-
tinued expenses  associated with  continuing  to  operate and maintain its
offices  and  expenses associated  with  being  a  reporting public company,
which  expenses include  professional, accounting and printing/EDGAR
preparation  and filing fees, and the non-cash expenses associated with the
issuance of shares  to  its  executive  officer,  directors  and  consultants
for continued services to the Company during the period. Such non-cash
compensation expensed during the three month period ended March 31, 1999,
was $ 273,000, compared to $996,400 during the same period in the prior year.

In order for the Company  to pay  its  operating  expenses, including office
rents,  communication expenses, accounting  and  bookkeeping  fees,  prin-
ting  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  and directors. In addition, following the first quarter of 1999,
the Company received funds from the exercise of options by certain persons
totalling $70,000 which will be reported in the second quarter. There can
be no assurance of any additional exercise of options. Further, while the
Company raised captial from private investors in the Company's unit private
placement ($122,000 net of commissions during 1997) and ($56,000 net of
commissions dugin 1998), which units were sold at $.04 per unit, each consisting
of one share of common stock and one common stock purchase option exeercisable
at $.08 per share, there can be no assurance based upon present market price
of the shares that it will be able to raise additional private placment fund-
ing, at terms and conditions satisfactory to the Company.
</PAGE>

<PAGE>
The  Company, during the first quarter of 1999, has continued to pursue
efforts to genarate further orders for pharmaceutical products in West
Africa. These efforts, the Company presently believes, should result in its
ability to begin to generate sales revenues for pharmaceutical products in
West Africa.

As a result of the recent appointment by the Company of new representatives
for West Africa, the Company believes that there will be an increasing level
of pharmaceutical product orders during successive quarters in 1999,  and
projects  to  expand its orders to other West African  countries.  The
Company has recently shipped samples, and registration documentation, for
30 generic pharmaceutical products, from which it is awaiting orders.

The Company  is presently outsourcing these generic pharmaceutical products
from several third party manufacturers and distributors, located in India,
which have provided quality products at competitive prices necessary for the
Company to meet the pricing structure  in West Africa and elsewhere.

The Company was informed in May 1999, that first deliveries of dengue fever
test kits from as US manufacturer have been delivered to Brazil, as part of the
first order for 2000 test kits. The Company projects that it  should
be able to ship additional orders to several states in Brazil, depending upon
its successfully concluding an extension of its relationship with Emerging
Trends Linkages Corp. (ETLC), with whom it has had a business arrangement since
1995.

                                Page 3
</PAGE>
<PAGE>

The Company had previously signed and serviced approximately customers for the
call-back telecommunications service in West Africa, but has had only limited
revenues from such services, with no revenues during 1999. This difficulty was
the result of service interruptions by the local PTT's. As a result of the
continuing effects of interruption of call-back service, the Company and ETLC
agreed to cancel the call-back venture and ETLC agreed to the cancellation of
rights to 47 million shares of the Company's common stock.

The Company during the quarter ended March 31, 1999, pursuant its interim stock
purchase/loan agreement with Global Transmedia Communications Corporation (GTCC)
of Miami, Florida, continued efforts to expand the Internet telephony service
business of GTCC in domestic and foreign markets. Following its agreement with
GTCC, initial orders were announced by GTCC for the distribution and sale of
GTCC's telephony service to a distributor in Canada. However, to date, GTCC
has received only limited revenues from the Canadian distribution agreement,
but is pursuing this business opportunity. Further, GTCC has recently intro-
duced 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 Internet
telephony communications of full voice, data, fax features to and from Asia,
South America and elsewhere, to the US or any other location. While to date,
GTCC has generated only limited operating revenues, the Company has not yet
received any distributions from its arrangement with GTCC. The Company
reasonably believes that during the second half of 1999, GTCC will begin to
generate profitable operations with increased subscriber base and monthly
revenues, with increased calling volume from the Internet telephony business.
GTCC recently entered into an agreement with a group of telecommunication
companies in Venezuela, which provides for the purchase of a minimum 2,100,000
minutes, and up to 3,900,000 minutes in calling volume, with projected revenues
of $780,000. The value to the Company and GTCC is projected to increase during
the next year.

The Company continues to be dependent upon the willingness of the Company's
executive officers/directors and its consultants to accept shares as compensa-
tion for continued services to the Company, which services the Company consid-
ers to be valuable and necessary to its continued operations.

                                Page 4
</PAGE>
<PAGE>

Liquidity and Capital Resources
-------------------------------
The  Company, at March 31, 1999, had current assets  of $3,104 compared
to current assets of $97,486 at March 31, 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 $70,000 from the exercise of options. 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 also hopes to receive revenues from
sales  of pharmaceutical products in West Africa, dengue fever test kits in
Brazil  and telecommunications products and services from GTCC world-wide.

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 pharamceucitacl sales to West Africa and dengue fever
test kits to Brazil. The consulting arrangment with ETLC, which commenced in
1995, and was extended in November 1998 through June 15, 1999, is presently
being discussed and the Company believes that it will successfully conclude
such negotiations in July, 1999.

Based upon the Company's present liquid resources, after the expenses taht were
paid by the Company following receipt of the proceeds from the exercise of
options during the second quarter of 1999, 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, the Company will be able to
operate for approximately four months, if no revenues are generated from
operations or other sources. However, the Company anticipates receipt of
increased operating revenues during the second half of 1999, as a result the
business developments by GTCC, as well as revenues from pharmaceutical and
medical product sales.

The Company's monthly operating expenses of approximately $5,000 during
the quarter ended March 31, 1999 and during the second quarter, include rent
for executive office space  in  Hickory, NC, actual communication costs for
its conference facilities for its Investor Relations offices at Rockefeller
Center in NYC ( the arrangement with ETLC provides that there will be no rent
costs to the Company for use of the space at Rockefeller Center), professional
/accounting  fees, telephones, but do not reflect  any salary to Dr. Jerrold
R. Hinton, the Company's sole executive officer, which salary has been
accrued at the rate of $8,333 per month, but not paid. The Company  does not
contemplate commencing payment to Dr.  Hinton of the monthly salary of
$8,333.33 provided in  his employment agreement unless and until  it  begins
to generate positive  cash flow from operations.

During the first quarter of 1999, the Company's executive officer, directors
and consultants were issued shares in registration statements on Form  S-8
in  consideration for their continued services to the Company in an aggregate
amount of $429,000 compared to $996,400 for the same quarter in 1998.

                                Page 5
</PAGE>
<PAGE>

PART II. OTHER INFORMATION
--------------------------

Item 1. Legal Proceedings

        See Footnote 7 to  Notes to Financial Statement for the Year Ended
        December  31,  1998, and the disclosure in Item 3 of the Annual
        Report on Form 10-KSB for the year ended December 31, 1998.

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

        1.        Exhibit 27
        2.        Reports on Form 8-K
                  Dated May 28, 1999

                                Page 6
</PAGE>
<PAGE>
EXHIBIT 27

ARTICLE 5

THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
BALANCE SHEET (UNAUDITED) AND THE OPERATIONS FOR THE THREE MONTHS ENDED
MARCH 31 (UNAUDITED) AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.


                                Page 7
</PAGE>
<PAGE>

SIGNATURES

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

                           AMERICAN DIVERSIFIED GROUP, INC..
                           (Registrant)


July 1, 1999              By: /s/Jerrold R. Hinton
                               --------------------
                               Jerrold R. Hinton
                               President, Chief Executive Officer and
                               Chief Financial Officer

                                Page 8
</PAGE>
<PAGE>

                       AMERICAN DIVERSIFIED GROUP,
                       FORMERLY TERA WEST VENTURES, Inc.
                       (A DEVELOPMENT STAGE COMPANY)
                       FINANCIAL STATEMENTS
                       (UNAUDITED)
                       MARCH 31, 1999


                                PAGE 9
</PAGE>
<PAGE>




                       AMERICAN DIVERSIFIED GROUP, Inc.
                       FORMERLY TERS WEST VENTURES, INC.
                       (A DEVELOPMENT STAGE COMPANY)
                       FINANCIAL STATEMENTS (UNAUDITED)
                       MARCH 31, 1999



                                               PAGE
BALANCE SHEET                                  11

STATEMENTS OF OPERATIONS                       12

STATEMENTS OF CASH FLOWS                       13

NOTES TO FINANCIAL STATEMENTS                  14


                                Page 10
</PAGE>
<PAGE>

                        AMERICAN DIVERSIFIED GROUP, INC.
                        FORMERLY TERA WEST VENTURES, INC.
                        (A DEVELOPMENT STAGE COMPANY)
                        BALANCE SHEET
                        (UNAUDITED)
                        AS OF MARCH 31, 1999
<TABLE>
<CAPTION>

<S>                                             <C>         <C>
ASSETS
------
Current Assets:
    Cash                                          $   118
    Accounts Receivable (Net)                       2,986
    Inventories                                      -
                                                ---------
       Total Current Assets                                   3,104

Fixed Assets:
    Property and Equipment
    (Net of $7,260 Accum. Depr.)                              6,958

Other Assets:
    Deposits                                          570
    Notes Receivable from Related Part            270,350
    Miscellaneous Receivable
    (Net of $100,000 Allowance)                      -
                                                ---------
                                                            270,920
                                                           --------
        Total Assets                                       $280,982
                                                           ========
</TABLE>


<TABLE>
<CAPTION>


<S>                                          <C>         <C>
LIABILITIES AND SHAREHOLDERS'
(DEFICIT) EQUITY

Current Liabilities:
    Bank Overdraft                               $  3,378
    Accounts and Accrued Expenses Payable        $ 18,114
    Accounts and Accrued Expenses Payable
    to Related Parties                            250,000
    Notes Payable to Related Parties              210,921
                                                  -------
      Total Current Liabilities                             482,413
                                                            -------
Shareholders' (Deficit) Equity:
    Preferred Stock, Series A, $10 par value
       authorized 50,000 shares; none outst.         -
    Common Stock, par value $.001 per share,
       authorized 350,000,000 shares; issued
       and outstanding 254,637,520 shares         254,637
    Additional Paid-In Capital                 18,473,744
    Deferred Consulting Fees                     (214,381)
    Deficit Accumulated During
    Development Stage                          (9,903,642)
    Deficit Accumulated Prior to
    Development Stage                          (8,811,789)
                                               -----------
       Total Shareholders' (Deficit) Equity                (201,431)
                                                           ---------
       Total Liabilities and Shareholders'
       (Deficit) Equity                                    $280,982
                                                           =========
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS


                                 Page 11
</PAGE>
<PAGE>

                       AMERICAN DIVERSIFIED GROUP, INC.
                       FORMERLY TERA WEST VENTURES, INC.
                       (A DEVELOPMENT STAGE COMPANY)
                       STATEMENTS OF OPERATIONS
                       (UNAUDITED)
                       FOR THE THREE MONTHS ENDE MARCH 31



<TABLE>
<CAPTION>
<S>                                        <C>         <C>
                                               1999          1998
                                               ----          ----

Revenues                                       $     0      $ 52,750

Costs of Revenues                                 -           45,495
                                               --------      -------
Gross Profit                                         0         7,255

Selling, General and Administrative Expenses    424,531      607,727
                                               --------      -------

Loss From Operations                           (424,531)    (600,472)


Other Income:
   Reimbursement of Losses                         -           7,802
                                              ----------   ----------
Net Loss                                      $(424,531)   ($592,670)
                                              ==========   ==========
Net Loss Per Share                             ($0.0018)    ($0.0032)
                                              ==========   ==========

Average Number of Shares Outstanding        232,855,615  182,459,226
                                            ===========  ============

</TABLE>


SEE NOTES TO FINANCIAL STATEMENTS

                                  Page 12
</PAGE>
<PAGE>

                      AMERICAN DIVERSIFIED GROUP, INC.
                      FORMERLY TERA WEST VENTURES, INC.
                      (A DEVELOPMENT STAGE COMPANY)
                      STATEMENTS OF CASH FLOWS
                      (UNAUDITED)
                      FOR THE THREE MONTHS ENDED MARCH 31


<TABLE>
<CAPTION>

<S>                                           <C>           <C>
                                                  1999          1998
                                               ----------    -----------
Cash Flows From Operating Activities:
    Net Loss                                   ($424,531)     ($592,670)
    Depreciation                                   1,795          1,711
    Amortization of Deferred Consulting Fees     182,779        168,971
    General and Administrative Expenses Paid
    by Stock                                     225,000        388,400
    Increase In Accounts Receivable                 -           (13,464)
    Increase In Accounts Payable and Accrued
    Expenses                                      16,417         22,188
                                                --------       --------
      Net Cash Used In Operating Activities        1,460        (24,864)
                                                --------       --------
Cash Flows From Investing Activities:
    Acquisitions of Property and Equipment          -              (516)
                                                --------       --------
      Net Cash Used In Investing Activities            0           (516)
                                                --------       --------
Cash Flows From Financing Activities:
  Brokers' Fees Paid on Sales of Common Stock       -            (6,000)
  Proceeds from Notes Payable to Related Parties  11,000         50,942
  Payments on Notes Payable to Related Parties   (15,750)          -
  Cash Overdraft                                   3,378           -
                                                ---------      --------
      Net Cash Provided By Financing Activit      (1,372)        44,942
                                                ---------      --------
Net Increase in Cash                                  88         19,562

Cash, Beginning of Period                             30         11,069
                                                ---------      --------
Cash, End of Period                                 $118        $30,631
                                                =========      ========

</TABLE>

Non-CashNon-Cash Transactions in 1999:
1.  Issued 12,375,000 shares common stock for current and future services
    of $225,000.
2.  Issued 3,000,000 shares of common stock for expansion of Internet Telephony
    business valued at $48,000.
3.  Issued 8,500,000 shares of common stock for stock options.

Non-Cash Transactions in 1998:
1.  Issued 52,700,000 shares of common stock for current and
    future services of $996,400.

SEE NOTES TO FINANCIAL STATEMENTS

                                Page 13
</PAGE>
<PAGE>

                      AMERICAN DIVERSIFIED GROUP, INC.
                      FORMERLY TERA WEST VENTURES, INC.
                      (A DEVELOPMENT STAGE COMPANY)
                      NOTES TO FINANCIAL STATEMENTS
                      (UNAUDITED)
                      MARCH 31, 1999




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 period
presented. All adjustments are of a normal recurring nature.

Certain financial information and footnote disclosure 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.

Note 2 - EARNINGS ( LOSS) PER SHARE

Per share information is computed based on the weighted average number of
shares outstanding during the period.
</PAGE>
                                 Page 14