----

**FORM      10-QSB**

**First        Amendment**

**W2      ENERGY, INC. **

----

| ** 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**               |
|                                                                                     |

----

**W2      ENERGY, INC.**

**TABLE      OF CONTENTS**

|  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   |

----

*This          Form 10-QSB contains forward-looking statements within the meaning of the          "safe          harbor" provisions under Section 21E of the Securities Exchange Act of          1934. We          use forward-looking statements in our description of our plans and objectives          for future operations and assumptions underlying these plans and objectives.          Forward-looking terminology includes the words "may," "expects," "believes,"          "anticipates," "intends," "projects," or similar terms, variations of such          terms          or the negative of such terms. These forward-looking statements are based          on          management's current expectations and are subject to factors and uncertainties,          which could cause actual results to differ materially from those, described          in          such forward-looking statements. We expressly disclaim any obligation or          undertaking to release publicly any updates or revisions to any forward-looking          statements contained in this Form 10-QSB to reflect any change in our          expectations or any changes in events, conditions or circumstances on which          any          forward-looking statement is based. Factors, which could cause such results          to          differ materially from those described in the forward-looking statements,          and          elsewhere,, are incorporated by reference into this Form          10-QSB.*

|  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 |   |

----

**W2                    ENERGY, INC.**

|  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 | ) |
|                                                                       |   |     |       |   |                               |   |   |   |

----

*The          following discussion is intended to provide an analysis of our financial          condition and Plan of Operation and should be read in conjunction with          our          financial statements and the notes thereto set forth herein.  The          matters discussed in this section that are not historical or current facts,          deal          with potential future circumstances and developments.  Our actual          results could differ materially from the results discussed in the          forward-looking statements.  Factors that could cause or contribute to          such differences include those discussed below.*

----

| 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:                      December                      21, 2007   | By:    | /s/ Michael                    McLaren                       |   |
|                                                                          |   | Michael                    McLaren                                |   |
|                                                                          |   | Principal                    Executive                    Officer |   |
|                                                                          |   |                                                              |   |

|                                         |   |                                                                                              |
|----------------------------------------------|--------|---------------------------------------------------------------------------------------------------|
|                                         |   |                                                                                              |   |
| Date:                      December 21, 2007 | By:    | /s/ Michael                    McLaren                                                       |   |
|                                         |   | Michael                    McLaren                                                                |   |
|                                         |   | Principal                      Accounting OfficerPrincipal                      Financial Officer |   |
|                                         |   |                                                                                              |   |

|                                                              |   |                                                            |
|-------------------------------------------------------------------|--------|-----------------------------------------------------------------|
|                                                              |   |                                                            |   |
| Date:                      December                      21, 2007 | By:    | /s/ Michael                    McLaren                     |   |
|                                                              |   | Michael                    McLaren,                    Director |   |
|                                                              |   |                                                            |   |

|                                         |   |                                        |
|----------------------------------------------|--------|---------------------------------------------|
|                                         |   |                                        |   |
| Date:                      December 21, 2007 | By:    | /s/ Ron                    Maruszczak  |   |
|                                         |   | Ron                    Maruszczak, Director |   |
|                                         |   |                                        |   |
|                                         |   |                                                 |
|----------------------------------------------|--------|------------------------------------------------------|
|                                         |   |                                                 |   |
| Date:                      December 21, 2007 | By:    | /s/ Sigmund                    Phillipe Friberg |   |
|                                         |   | Sigmund                    Phillipe Friberg          |   |
|                                         |   |                                                 |   |
|                                         |   |                                                 |   |

|                                         |   |                                        |   |
|----------------------------------------------|--------|---------------------------------------------|--------|
| Date:                      December 21, 2007 | By:    | /s/ Pierre                    Besuchet |   |
|                                         |   | Pierre                    Besuchet          |   |
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