----

----

|  Nevada                                                                         |   |  20-1740321                                |
|--------------------------------------------------------------------------------------|--------|-------------------------------------------------|
|  (State      or other jurisdiction of incorporation      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                                                                |  9    |
|                                                                                                      |       |
|  PART      II: OTHER INFORMATION                                                                     |  9    |
|                                                                                                      |       |
|  Item      1. Legal Proceedings                                                                      |  9    |
|                                                                                                      |       |
|  Item      2. Changes in Securities                                                                  |  9    |
|                                                                                                      |       |
|  Item      3. Defaults upon Senior Securities                                                        |  9    |
|                                                                                                      |       |
|  Item      4. Submission of Matters for a Vote of Security Holders                                   |  9    |
|                                                                                                      |       |
|  Item      5. Other Information                                                                      |  9    |
|                                                                                                      |       |
|  Item      6. Exhibits and Reports on Form 8-K                                                       |  9    |
|                                                                                                      |       |
|  SIGNATURES                                                                                          |  10   |

----

|  INDEX                                                                                                                             |  Page |
|-----------------------------------------------------------------------------------------------------------------------------------------|------------|
|                                                                                                                                    |       |
|  Consolidated      Balance Sheets as of September 30, 2007 (Unaudited)                                                             |  4    |
|                                                                                                                                    |       |
|  Consolidated      Statements of Operation for the Three Months and Nine Months Ended      September 30, 2007 and 2006 (Unaudited) |  5    |
|                                                                                                                                    |       |
|  Consolidated      Statements of Cash Flows for the Nine Months Ended September 2007 and 2006      (Unaudited)                     |  6    |
|                                                                                                                                    |       |
|  Notes      to Financial Statements                                                                                                |  7    |

----

| W2 ENERGY,      INC.                                                                |
|-------------------------------------------------------------------------------------|
|  (A      Development Stage Company)                                            |
| Balance      Sheets                                                                 |
|                                                                                |   |   |   |   |   |   |   |
| ASSETS                                                                              |
|                                                                                |   |   |   |   |   |   |   |
|                                                                                |   |   | September      30, |   |   | December      31, |   |
|                                                                                |   |   | 2007 |   |   | 2006 |   |
|                                                                                |   |   | (Unaudited) |   |   |   |   |
| CURRENT      ASSETS                                                                 |   |   |   |   |   |   |   |
|                                                                                |   |   |   |   |   |   |   |
| Cash                                                                                |   |   | $ | 5 |   |   | $ | 234,361 |   |
| Prepaid      expenses                                                               |   |   |   | 22,853 |   |   |   | 1,650 |   |
|                                                                                |   |   |   |   |   |   |   |   |   |
| Total      Current Assets                                                           |   |   | 22,858 |   |   |   | 236,011 |   |
|                                                                                |   |   |   |   |   |   |   |   |   |
| PROPERTY      AND EQUIPMENT, net                                                    |   |   | 8,640 |   |   |   | 5,275 |   |
|                                                                                |   |   |   |   |   |   |   |   |   |
| OTHER      ASSETS                                                                   |   |   |   |   |   |   |   |   |   |
|                                                                                |   |   |   |   |   |   |   |   |   |
| Technology                                                                          |   |   |   | - |   |   |   | - |   |
|                                                                                |   |   |   |   |   |   |   |   |   |
|  Total      Other Assets                                                       |   |   | - |   |   |   | - |   |
|                                                                                |   |   |   |   |   |   |   |   |   |
|  TOTAL      ASSETS                                                             |   | $ | 31,498 |   |   | $ | 241,286 |   |
|                                                                                |   |   |   |   |   |   |   |   |   |
|                                                                                |   |   |   |   |   |   |   |   |   |
| LIABILITIES AND      STOCKHOLDERS' EQUITY (DEFICIT)                                 |
|                                                                                |   |   |   |   |   |   |   |   |   |
| CURRENT      LIABILITIES                                                            |   |   |   |   |   |   |   |   |   |
|                                                                                |   |   |   |   |   |   |   |   |   |
| Accounts      payable and accrued expenses                                          |   | $ | 156,795 |   |   | $ | 150,746 |   |
| Related      party payables                                                         |   |   |   | 486 |   |   |   | 486 |   |
| Notes      payable                                                                  |   |   |   | 456,253 |   |   |   | 683,192 |   |
|                                                                                |   |   |   |   |   |   |   |   |   |
|  Total      Current Liabilities                                                |   |   | 613,534 |   |   |   | 834,424 |   |
|                                                                                |   |   |   |   |   |   |   |   |   |
|  TOTAL      LIABILITIES                                                        |   |   | 613,534 |   |   |   | 834,424 |   |
|                                                                                |   |   |   |   |   |   |   |   |   |
| STOCKHOLDERS'      EQUITY (DEFICIT)                                                 |   |   |   |   |   |   |   |   |
|                                                                                |   |   |   |   |   |   |   |   |   |
| Common      stock, $0.001par value; 250,000,000 shares authorized;      147,787,197 |   |   |   |   |   |   |   |   |
| and      111,755,619 shares issued and outstanding, respectively                    |   |   | 147,787 |   |   |   | 111,756 |   |
| Additional      paid-in capital                                                     |   |   |   | 17,067,160 |   |   |   | 16,495,741 |   |
| Accumulated      deficit                                                            |   |   |   | (17,796,983 | ) |   |   | (17,200,635 | ) |
|                                                                                |   |   |   |   |   |   |   |   |   |
|  Total      Stockholders' Equity (Deficit)                                     |   |   | (582,036 | ) |   |   | (593,138 | ) |
|                                                                                |   |   |   |   |   |   |   |   |   |
| TOTAL      LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)                           |   | $ | 31,498 |   |   | $ | 241,286 |   |
|                                                                                |   |   |   |   |   |   |   |   |   |

----

| W2 ENERGY,      INC.                     |
|------------------------------------------|
|  (A      Development Stage Company) |
| Statements      of Operations            |
| (Unaudited)                              |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |   | From |   |
|                                     |   | For      the Three |   |   | For      the Nine |   |   | Inception |   |
|                                     |   | Months      Ended |   |   | Months      Ended |   |   | Through |   |
|                                     |   | September      30, |   |   | September      30, |   |   | September      30, |   |
|                                     |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |   | 2007 |   |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| REVENUES                                 |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COST      OF GOODS SOLD                  |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| GROSS      PROFIT                        |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING      EXPENSES                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Research      and development            |   |   | 44,916 |   |   |   | - |   |   |   | 81,158 |   |   |   | 6,221 |   |   |   | 188,727 |   |
| General      and administrative          |   |   | 112,869 |   |   |   | 84,274 |   |   |   | 189,236 |   |   |   | 155,683 |   |   |   | 15,986,064 |   |
| Consultation      fees                   |   |   | 193,437 |   |   |   | 234,175 |   |   |   | 288,505 |   |   |   | 406,535 |   |   |   | 288,505 |   |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Expenses                      |   |   | 351,222 |   |   |   | 318,449 |   |   |   | 558,899 |   |   |   | 568,439 |   |   |   | 16,463,296 |   |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LOSS      FROM OPERATIONS                |   |   | (351,222 | ) |   |   | (318,449 | ) |   |   | (558,899 | ) |   |   | (568,439 | ) |   |   | (16,463,296 | ) |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER      INCOME (EXPENSES)             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      expense                    |   |   | (11,029 | ) |   |   | (17,959 | ) |   |   | (37,746 | ) |   |   | (55,723 | ) |   |   | (185,885 | ) |
| Interest      income                     |   |   | 2 |   |   |   | 639 |   |   |   | 297 |   |   |   | 732 |   |   |   | 1,748 |   |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Other Income (Expenses)       |   |   | (11,027 | ) |   |   | (17,320 | ) |   |   | (37,449 | ) |   |   | (54,991 | ) |   |   | (184,137 | ) |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| DISCONTINUED      OPERATIONS             |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (1,149,550 | ) |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET      LOSS                            |   | $ | (362,249 | ) |   | $ | (335,769 | ) |   | $ | (596,348 | ) |   | $ | (623,430 | ) |   | $ | (17,796,983 | ) |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BASIC      LOSS PER SHARE                |   | $ | (0.00 | ) |   | $ | (0.00 | ) |   | $ | (0.00 | ) |   | $ | (0.01 | ) |   |   |   |   |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BASIC      WEIGHTED AVERAGE NUMBER OF    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   SHARES      OUTSTANDING      |   |   | 141,696,408 |   |   |   | 104,530,619 |   |   |   | 129,771,408 |   |   |   | 62,620,202 |   |   |   |   |   |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| W2 ENERGY,      INC.                                    |
|---------------------------------------------------------|
|  (A      Development Stage Company)                |
| Statements      of Cash Flows                           |
| (Unaudited)                                             |
|                                                    |   |   |   |   |   |   |   |   |   |
|                                                    |   |   |   |   |   |   |   | From |   |
|                                                    |   | For      the Nine |   |   | Inception |   |
|                                                    |   | Months      Ended |   |   | Through |   |
|                                                    |   | September      30, |   |   | September      30, |   |
|                                                    |   | 2007 |   |   | 2006 |   |   | 2007 |   |
|                                                    |   |   |   |   |   |   |   |   |   |
| CASH      FLOWS FROM OPERATING ACTIVITIES               |   |   |   |   |   |   |   |   |   |
|                                                    |   |   |   |   |   |   |   |   |   |
| Net      loss                                           |   | $ | (596,348 | ) |   | $ | (623,430 | ) |   | $ | (17,796,983 | ) |
| Adjustments      to reconcile net loss to               |   |   |   |   |   |   |   |   |   |   |   |   |
|   net      cash used by operating activities: |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation      and amortization                      |   |   | 441 |   |   |   | 229 |   |   |   | 1,027 |   |
| Common      stock issued for services                   |   |   | 348,525 |   |   |   | 397,500 |   |   |   | 5,226,566 |   |
| Changes      in operating assets and liabilities:       |   |   |   |   |   |   |   |   |   |   |   |   |
| (Increase)      decrease in prepaid expenses            |   |   | (21,203 | ) |   |   | (26,565 | ) |   |   | (22,853 | ) |
| Increase      (decrease) in accounts payable and        |   |   |   |   |   |   |   |   |   |   |   |   |
|   and      accrued expenses                   |   |   | 6,049 |   |   |   | 43,133 |   |   |   | (284,387 | ) |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Cash Used by Operating Activities              |   |   | (262,536 | ) |   |   | (209,133 | ) |   |   | (12,876,630 | ) |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES               |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchase      of equipment                              |   |   | (3,806 | ) |   |   | (4,586 | ) |   |   | (9,662 | ) |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Cash Used by Investing Activities              |   |   | (3,806 | ) |   |   | (4,586 | ) |   |   | (9,662 | ) |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH      FLOWS FROM FINIANCING ACTIVITIES              |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock      offering costs paid                          |   |   | - |   |   |   | - |   |   |   | (41,200 | ) |
| Repayment      of notes payable                         |   |   | (151,939 | ) |   |   | (5,982 | ) |   |   | (218,747 | ) |
| Common      stock issued for cash                       |   |   | 183,925 |   |   |   | 627,000 |   |   |   | 13,146,244 |   |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Cash Provided by Financing Activities          |   |   | 31,986 |   |   |   | 621,018 |   |   |   | 12,886,297 |   |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| NET      INCREASE (DECREASE) IN CASH                    |   |   | (234,356 | ) |   |   | 407,299 |   |   |   | 5 |   |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH      AT BEGINNING OF PERIOD                        |   |   | 234,361 |   |   |   | - |   |   |   | - |   |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH      AT END OF PERIOD                              |   | $ | 5 |   |   | $ | 407,299 |   |   | $ | 5 |   |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| SUPPLIMENTAL      DISCLOSURE OF                         |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH      FLOW INFORMATION                              |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Common      stock issued for services              |   | $  | 348,525 |   |   | $  | 397,500 |   |   | $  | 5,226,566 |   |
| Debt      paid with common stock                        |   |   | 75,000 |   |   |   | - |   |   |   | 218,747 |   |

----

|  Balance      Sheet                                   |   | Original |       |   | As      Restated |   |
|------------------------------------------------------------|--------|----------|------------|--------|------------------|--------|
|                                                       |   |     |       |   |             |   |
|  Current      Assets                             |   | $        | 236,011    |   |             | $      | 236,011 |   |
|  Property      and Equipment                     |   |     | 5,275      |   |             |   | 5,275 |   |
|  Other      Assets                                    |   |     | 1,728,376  |   |             |   | - |   |
|  Current      Liabilities                        |   |     | 834,424    |   |             |   | 834,424 |   |
|  Stockholders’      equity                 |   |     | 1,135,238  |   |             |   | (593,138 | ) |
|                                                       |   |     |       |   |             |   |   |   |
|  Statement      of Operations (from Inception Column) |   |     |       |   |             |   |   |   |
|                                                       |   |     |       |   |             |   |   |   |
|  Revenues                                             |   |     | -          |   |             |   | - |   |
|  Expenses                                             |   |     | 855,469    |   |             |   | 15,902,397 |   |
|  Discontinued      operations               |   |     | -          |   |             |   | (1,149,550 | ) |
|  Net      Loss                                        |   |     | (1,002,062 | )      |             |   | (17,200,635 | ) |
|                                                       |   |     |       |   |             |   |   |   |

----

----

| July      27, 2007      | TJ      Management       | 2,631,578 | $50,000.00 | USA    |
|-------------------------|--------------------------|-----------|------------|--------|
| August      24, 2007    | Charles      Marchitello | 1,250,000 | $25,000.00 | USA    |
| August      28, 2007    | 6203221      Canada Inc. | 3,000,000 | $30,000.00 | Canada |
| August      31 2007     | Pudong      llc.         | 2,000,000 | $20,000.00 | USA    |
| September      11, 2007 | Charles      Marchitello | 1,400,000 | $25,000.00 | USA    |

|  31.1 |  Certificate      of Principal Executive Officer                                                                                     |
|------------|-------------------------------------------------------------------------------------------------------------------------------------------|
|  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 |
|  32.2 |  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:  March 14,      2008    | By:    | /s/ MichaelMcLaren        |   |
|                                         |   | Michael McLaren                |   |
|                                         |   | Principal Executive    Officer |   |
|                                         |   |                           |   |

|                      |   |                                                              |
|---------------------------|--------|-------------------------------------------------------------------|
|                      |   |                                                              |   |
| Date:      March 14, 2008 | By:    | /s/ Michael      McLaren                                     |   |
|                      |   | Michael      McLaren                                              |   |
|                      |   | Principal      Accounting OfficerPrincipal      Financial Officer |   |
|                      |   |                                                              |   |

|                      |   |                         |
|---------------------------|--------|------------------------------|
|                      |   |                         |   |
| Date: March      14, 2008 | By:    | /s/ MichaelMcLaren      |   |
|                      |   | Michael McLaren,    Director |   |
|                      |   |                         |   |

|                      |   |                          |
|---------------------------|--------|-------------------------------|
|                      |   |                          |   |
| Date:      March 14, 2008 | By:    | /s/ Ron      Maruszczak  |   |
|                      |   | Ron      Maruszczak, Director |   |
|                      |   |                          |   |
|                      |   |                                   |
|---------------------------|--------|----------------------------------------|
|                      |   |                                   |   |
| Date:      March 14, 2008 | By:    | /s/ Sigmund      Phillipe Friberg |   |
|                      |   | Sigmund      Phillipe Friberg          |   |
|                      |   |                                   |   |
|                      |   |                                   |   |

|                      |   |                          |   |
|---------------------------|--------|-------------------------------|--------|
| Date:      March 14, 2008 | By:    | /s/ Pierre      Besuchet |   |
|                      |   | Pierre      Besuchet          |   |
|                      |   |                          |   |
|                      |   |                          |   |

----