----

----

|  Nevada                                                                          |   |  20-1740321                                |
|---------------------------------------------------------------------------------------|--------|-------------------------------------------------|
|  (State      or other jurisdiction ofincorporation      or organization)         |   |  (I.R.S.      Employer Identification No.) |
|                                                                                  |   |                                            |
|   26 Densley      Avenue                                               |
|   Toronto, Ontario      M6M 2R1                                        |
|   (Address,      including zip code, of principal executive  offices)  |
|                                                                                  |   |                                            |
|                                                                                  |   |                                            |
|   Issuer’s      telephone number : (416)      246-1100           |
|                                                                        |

----

|  PART      I: FINANCIAL INFORMATION                                                                  |  Page |
|-----------------------------------------------------------------------------------------------------------|------------|
|                                                                                                      |       |
|  Item      1. Financial Statements:                                                                  |  3    |
|                                                                                                      |       |
|  Item      2. Managements Discussion and Analysis of Financial Condition and Plan of      Operations |  8    |
|                                                                                                      |       |
|  Item      3. Controls and Procedures                                                                |  10   |
|                                                                                                      |       |
|  PART      II: OTHER INFORMATION                                                                     |  10   |
|                                                                                                      |       |
|  Item      1. Legal Proceedings                                                                      |  10   |
|                                                                                                      |       |
|  Item      2. Changes in Securities                                                                  |  10   |
|                                                                                                      |       |
|  Item      3. Defaults upon Senior Securities                                                        |  11   |
|                                                                                                      |       |
|  Item      4. Submission of Matters for a Vote of Security Holders                                   |  11   |
|                                                                                                      |       |
|  Item      5. Other Information                                                                      | 11         |
|                                                                                                      |       |
|  Item      6. Exhibits and Reports on Form 8-K                                                       | 11         |
|                                                                                                      |       |
|  SIGNATURES                                                                                          |  11   |

----

|  INDEX                                                                                                                                                                                                                                         |  Page |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|
|                                                                                                                                                                                                                                                |       |
| Consolidated      Balance Sheets as of June 30, 2008 (Unaudited) and December 31,      2008                                                                                                                                                         |  4    |
|                                                                                                                                                                                                                                                |       |
| Consolidated      Statements of Operation for the Three and Six Months Ended June 30, 2008      and 2007 (Unaudited), and for the period from the inception of the      development stage on October 1, 1992 through June 30, 2008      (unaudited) |  5    |
|                                                                                                                                                                                                                                                |       |
| Consolidated      Statements of Cash Flows for the Six Months Ended June 30, 2008 and 2007      (Unaudited), and for the period from the inception of the development      stage on October 1, 1992 through June 30, 2008 (unaudited)               |  6    |
|                                                                                                                                                                                                                                                |       |
|  Notes      to Financial Statements                                                                                                                                                                                                            |  7    |

----

| W2      ENERGY, INC.                                                                                          |          |
|---------------------------------------------------------------------------------------------------------------|---------------|
| (A      Development Stage Company)                                                                            |          |
| Consolidated      Balance Sheets                                                                              |          |
|                                                                                                          |          |   |   |   |   |   |
| ASSETS                                                                                                        |          |
|                                                                                                          |          |   |   |   |   |   |
|                                                                                                          | June      30, |   | December      31, |   |
|                                                                                                          |          | 2008 |   |   | 2007 |   |
|                                                                                                          | (unaudited)   |   |   |   |   |
| CURRENT      ASSETS                                                                                           |          |   |   |   |   |   |
|                                                                                                          |          |   |   |   |   |   |
|  Cash                                                                                                    |          | $ | 20,752 |   |   | $ | 29 |   |
| Prepaid      expenses                                                                                         |          |   | - |   |   |   | 4,355 |   |
|                                                                                                          |          |   |   |   |   |   |   |   |
| Total      Current Assets                                                                                     |          |   | 20,752 |   |   |   | 4,384 |   |
|                                                                                                          |          |   |   |   |   |   |   |   |
| PROPERTY      AND EQUIPMENT, net                                                                              |          |   | 15,125 |   |   |   | 15,263 |   |
|                                                                                                          |          |   |   |   |   |   |   |   |
| TOTAL      ASSETS                                                                                             |          | $ | 35,877 |   |   | $ | 19,647 |   |
|                                                                                                          |          |   |   |   |   |   |   |   |
|                                                                                                          |          |   |   |   |   |   |   |   |
| LIABILITIES AND      STOCKHOLDERS' EQUITY (DEFICIT)                                                           |          |
|                                                                                                          |          |   |   |   |   |   |   |   |
| CURRENT      LIABILITIES                                                                                      |          |   |   |   |   |   |   |   |
|                                                                                                          |          |   |   |   |   |   |   |   |
|                  Accounts payable and accrued expenses |          | $ | 155,606 |   |   | $ | 78,914 |   |
|           Related party payables                                                          |          |   | 486 |   |   |   | 486 |   |
| Notes      payable                                                                                            |          |   | 105,947 |   |   |   | 137,556 |   |
|                                                                                                          |          |   |   |   |   |   |   |   |
| Total      Current Liabilities                                                                                |          |   | 262,039 |   |   |   | 216,956 |   |
|                                                                                                          |          |   |   |   |   |   |   |   |
| LONG      TERM DEBT                                                                                           |          |   |   |   |   |   |   |   |
|                                                                                                          |          |   |   |   |   |   |   |   |
| Notes      payable                                                                                            |          |   | 402,949 |   |   |   | 402,949 |   |
|                                                                                                          |          |   |   |   |   |   |   |   |
| TOTAL      LIABILITIES                                                                                        |          |   | 664,988 |   |   |   | 619,905 |   |
|                                                                                                          |          |   |   |   |   |   |   |   |
| STOCKHOLDERS'      EQUITY (DEFICIT)                                                                           |          |   |   |   |   |   |   |   |
|                                                                                                          |          |   |   |   |   |   |   |   |
| Preferred      stock, $0.001par value; 150,000,000 shares authorized;                                         |          |   |   |   |   |   |   |   |
|   61,050,833      and no shares issued and outstanding, respectively                                |          |   | 61,051 |   |   |   | - |   |
| Common      stock, $0.001par value; 250,000,000 shares authorized;                                            |          |   |   |   |   |   |   |   |
|   20,159,060      and 8,684,943 shares issued and outstanding,                                      |          |   |   |   |   |   |   |   |
|        respectively                                                                                      |          |   | 20,159 |   |   |   | 8,685 |   |
|           Additional paid-in capital                                                      |          |   | 17,592,202 |   |   |   | 17,296,162 |   |
|           Stock subscription payable                                                      |          |   | 54,843 |   |   |   | - |   |
| Accumulated      deficit                                                                                      |          |   | (18,357,366 | ) |   |   | (17,905,105 | ) |
|                                                                                                          |          |   |   |   |   |   |   |   |
|  Total      Stockholders' Equity (Deficit)                                                               |          |   | (629,111 | ) |   |   | (600,258 | ) |
|                                                                                                          |          |   |   |   |   |   |   |   |
| TOTAL      LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)                                                     |          | $ | 35,877 |   |   | $ | 19,647 |   |
|                                                                                                          |          |   |   |   |   |   |   |   |
|                                                                                                          |          |   |   |   |   |   |   |   |
|                                                                                                          |          |   |   |   |   |   |   |   |
| The      accompanying notes are an integral part of these financial      statements.                          |

----

| W2      ENERGY, INC.                                                                 |                      |
|--------------------------------------------------------------------------------------|---------------------------|
| (A      Development Stage Company)                                                   |
| Consolidated      Statements of Operations                                           |
| (Unaudited)                                                                          |
|                                                                                 |                      |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |                      |   |   |   |   |   |   |   |   | From      Inception of |   |
|                                                                                 |                      |   |   |   |   |   |   |   |   | the      Development |   |
|                                                                                 | For      the Three Months |   | For      the Six Months |   | Stage      on October |   |
|                                                                                 | Ended                     |   | Ended |   | 1,      1992 Through |   |
|                                                                                 | June      30,             |   | June      30, |   | June      30, |   |
|                                                                                 | 2008                      |   |  2007 |   |        2008 |   |        2007 |   |        2008 |   |
|                                                                                 |                      |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |                      |   |   |   |   |   |   |   |   |   |   |
| REVENUES                                                                             |                      | $ | - |   | $ | - |   | $ | - |   | $ | - |   | $ | - |   |
|                                                                                 |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COST      OF GOODS SOLD                                                              |                      |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |
|                                                                                 |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| GROSS      PROFIT                                                                    |                      |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |
|                                                                                 |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING      EXPENSES                                                              |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Research      and development                                                        |                      |   | - |   |   | 20,005 |   |   | - |   |   | 36,252 |   |   | 188,727 |   |
| General      and administrative                                                      |                      |   | 124,979 |   |   | 41,811 |   |   | 176,726 |   |   | 76,367 |   |   | 15,850,635 |   |
| Consultation      fees                                                               |                      |   | 92,689 |   |   | 47,020 |   |   | 241,721 |   |   | 95,068 |   |   | 939,750 |   |
|                                                                                 |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Expenses                                                                  |                      |   | 217,668 |   |   | 108,836 |   |   | 418,447 | )  |   | 207,687 |   |   | 16,979,112 |   |
|                                                                                 |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LOSS      FROM OPERATIONS                                                            |                      |   | (217,668 |   |   | (108,836 | ) |   | (418,447 | )  |   | (207,687 | ) |   | (16,979,112 | ) |
|                                                                                 |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER      INCOME (EXPENSES)                                                         |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      expense                                                                |                      |   | (10,178 | )  |   | (13,768 | ) |   | (33,814 | )  |   | (26,717 | ) |   | (230,452 | ) |
| Interest      income                                                                 |                      |   | - |   |   | - |   |   | - |   |   | - |   |   | 1,748 |   |
|                                                                                 |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Other Income (Expenses)                                                   |                      |   | (10,178 | )  |   | (13,768 | ) |   | (33,814 | )  |   | (26,717 | ) |   | (228,704 | ) |
|                                                                                 |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| DISCONTINUED      OPERATIONS                                                         |                      |   | - |   |   | - |   |   | - |   |   | - |   |   | (1,149,550 | ) |
|                                                                                 |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET      LOSS                                                                        |                      | $ | (227,846 | )  | $ | (122,604 | ) | $ | (452,261 | )  | $ | (234,404 | ) | $ | (18,357,366 | ) |
|                                                                                 |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BASIC      LOSS PER SHARE                                                            |                      | $ | (0.01 | )  | $ | (0.002 | ) | $ | (0.03 | )  | $ | (0.04 | ) |   |   |   |
|                                                                                 |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BASIC      WEIGHTED AVERAGE NUMBER OF                                                |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   SHARES      OUTSTANDING                                                  |                      |   | 17,290,531 |   |   | 5,962,781 |   |   | 14,422,002 |   |   | 5,962,781 |   |   |   |   |
|                                                                                 |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| The      accompanying notes are an integral part of these financial      statements. |

----

| W2      ENERGY, INC.                                                                 |                                                    |
|--------------------------------------------------------------------------------------|---------------------------------------------------------|
| (A      Development Stage Company)                                                   |                                                    |
| Consolidated      Statements of Cash Flows                                           |                                                    |
| (Unaudited)                                                                          |                                                    |
|                                                                                 |                                                    |   |   |   |   |   |   |   |   |   |
|                                                                                 |                                                    |   |   |   |   |   |   |   | From      Inception of |   |
|                                                                                 |                                                    |   |   |   |   |   |   |   | the      Development |   |
|                                                                                 |                                                    |   | For      the Six Months |   |   | Stage      on October |   |
|                                                                                 |                                                    |   | Ended |   |   | 1,      1992 Through |   |
|                                                                                 |                                                    |   | June      30, |   |   | June      30, |   |
|                                                                                 |                                                    |   | 2008 |   |   | 2007 |   |   | 2008 |   |
|                                                                                 |                                                    |   |   |   |   |   |   |   |   |   |
| OPERATING      ACTIVITIES                                                            |                                                    |   |   |   |   |   |   |   |   |
|                                                                                 |                                                    |   |   |   |   |   |   |   |   |   |
|                                                                                 | Net      loss                                           |   | $ | (452,261 | ) |   | $ | (234,404 | ) |   | $ | (18,357,366 | ) |
|                                                                                 | Adjustments      to reconcile net loss to               |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |   net      cash used by operating activities: |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 | Depreciation      and amortization                      |   |   | 525 |   |   |   | 147 |   |   |   | 1,689 |   |
|                                                                                 |  Common      stock issued for services             |   |   | 232,689 |   |   |   | 155,500 |   |   |   | 5,461,655 |   |
|                                                                                 | Changes      in operating assets and liabilities:       |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 | (Increase)      decrease in prepaid expenses            |   |   | 2,961 |   |   |   | (15,220 | ) |   |   | (1,108 | ) |
|                                                                                 | Increase      (decrease) in accounts payable and        |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |   and      accrued expenses                   |   |   | 78,590 |   |   |   | 4,033 |   |   |   | (283,953 | ) |
|                                                                                 |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 | Net      Cash Used by Operating Activities              |   |   | (137,496 | ) |   |   | (89,944 | ) |   |   | (13,179,083 | ) |
|                                                                                 |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| INVESTING      ACTIVITIES                                                            |                                                    |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 | Purchase      of equipment                              |   |   | (890 | ) |   |   | (3,806 | ) |   |   | (17,322 | ) |
|                                                                                 |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 | Net      Cash Used by Investing Activities              |   |   | (890 | ) |   |   | (3,806 | ) |   |   | (17,322 | ) |
|                                                                                 |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| FINANCING      ACTIVITIES                                                            |                                                    |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 | Stock      offering costs paid                          |   |   | - |   |   |   | - |   |   |   | (50,650 | ) |
|                                                                                 | Repayment      of notes payable                         |   |   | (31,609 | ) |   |   | (111,863 | ) |   |   | (166,105 | ) |
|                                                                                 | Common      stock issued for cash                       |   |   | 190,718 |   |   |   | 122,500 |   |   |   | 13,433,912 |   |
|                                                                                 |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 | Net      Cash Provided by Financing Activities          |   |   | 159,109 |   |   |   | 10,637 |   |   |   | 13,217,157 |   |
|                                                                                 |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 | NET      INCREASE (DECREASE) IN CASH                    |   |   | 20,723 |   |   |   | (83,113 | ) |   |   | 20,752 |   |
|                                                                                 |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 | CASH      AT BEGINNING OF PERIOD                        |   |   | 29 |   |   |   | 234,361 |   |   |   | - |   |
|                                                                                 |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 | CASH      AT END OF PERIOD                              |   | $ | 20,752 |   |   | $ | 151,248 |   |   | $ | 20,752 |   |
|                                                                                 |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| The      accompanying notes are an integral part of these financial      statements. |

----

----

----

----

----

|  Exhibit      # |  Description                                                                                                                         |
|----------------------|-------------------------------------------------------------------------------------------------------------------------------------------|
|  31.1           |  Certificate      of Principal Executive Offic                                                                                       |
|  31.2           |  Certificate  of      Principal Accounting Officer                                                                         |
|  32.1           |  Certification      Pursuant to 18 U.S.C.  1350, as Adopted Pursuant to Section 906      of the Sarbanes-Oxley Act of 2002 |

|  W2      ENERGY, INC.       |   |                                                              |
|----------------------------------|--------|-------------------------------------------------------------------|
|  (Registrant)               |   |                                                              |
|                             |   |                                                              |
|                             |   |                                                              |   |
| Date:      August 20, 2008       | By:    | /s/ Michael      McLaren                                     |   |
|                             |   | Michael      McLaren                                              |   |
|                             |   | Principal      Executive Officer                                  |   |
|                             |   |                                                              |   |
|                             |   |                                                              |
|                             |   |                                                              |   |
| Date:      August 20, 2008  | By:    | /s/ Michael      McLaren                                     |   |
|                             |   | Michael      McLaren                                              |   |
|                             |   | Principal      Accounting OfficerPrincipal      Financial Officer |   |
|                             |   |                                                              |   |

----

|                       |   |                           |
|----------------------------|--------|--------------------------------|
|                       |   |                           |   |
| Date:      August 20, 2008 | By:    | /s/ Michael      McLaren  |   |
|                       |   | Michael      McLaren, Director |   |
|                       |   |                           |   |

|                       |   |                          |
|----------------------------|--------|-------------------------------|
|                       |   |                          |   |
| Date:      August 20, 2008 | By:    | /s/ Ron      Maruszczak  |   |
|                       |   | Ron      Maruszczak, Director |   |
|                       |   |                          |   |

|                       |   |                                   |
|----------------------------|--------|----------------------------------------|
|                       |   |                                   |   |
| Date:      August 20, 2008 | By:    | /s/ Sigmund      Phillipe Friberg |   |
|                       |   | Sigmund      Phillipe Friberg          |   |
|                       |   |                                   |   |
|                       |   |                                   |   |

|                       |   |                          |   |
|----------------------------|--------|-------------------------------|--------|
| Date:      August 20, 2008 | By:    | /s/ Pierre      Besuchet |   |
|                       |   | Pierre      Besuchet          |   |
|                       |   |                          |   |
|                       |   |                          |   |

----