----

**FORM      10-QSB**

**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.**                                                                            |
|---------------------------------------------------------------------------------------------------------------------|
| 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.**              |
|-------------------------------------------------------|
| 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.**                                |
|-------------------------------------------------------------------------|
| 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 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 |
|  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:                    November                    14, 2007   | By:    | /s/ Michael                  McLaren                     |   |
|                                                                      |   | Michael                  McLaren                              |   |
|                                                                      |   | Principal                  Executive                  Officer |   |
|                                                                      |   |                                                          |   |

|                                                   |   |                                                                                          |
|--------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------|
|                                                   |   |                                                                                          |   |
| Date:                    November 14, 2007   | By:    | /s/ Michael                  McLaren                                                     |   |
|                                                   |   | Michael                  McLaren                                                              |   |
|                                                   |   | Principal                    Accounting OfficerPrincipal                    Financial Officer |   |
|                                                   |   |                                                                                          |   |

|                                                          |   |                                                        |
|---------------------------------------------------------------|--------|-------------------------------------------------------------|
|                                                          |   |                                                        |   |
| Date:                    November                    14, 2007 | By:    | /s/ Michael                  McLaren                   |   |
|                                                          |   | Michael                  McLaren,                  Director |   |
|                                                          |   |                                                        |   |

|                                       |   |                                      |
|--------------------------------------------|--------|-------------------------------------------|
|                                       |   |                                      |   |
| Date:                    November 14, 2007 | By:    | /s/ Ron                  Maruszczak  |   |
|                                       |   | Ron                  Maruszczak, Director |   |
|                                       |   |                                      |   |
|                                       |   |                                               |
|--------------------------------------------|--------|----------------------------------------------------|
|                                       |   |                                               |   |
| Date:                    November 14, 2007 | By:    | /s/ Sigmund                  Phillipe Friberg |   |
|                                       |   | Sigmund                  Phillipe Friberg          |   |
|                                       |   |                                               |   |
|                                       |   |                                               |   |

|                                       |   |                                      |   |
|--------------------------------------------|--------|-------------------------------------------|--------|
| Date:                    November 14, 2007 | By:    | /s/ Pierre                  Besuchet |   |
|                                       |   | Pierre                  Besuchet          |   |
|                                       |   |                                      |   |
|                                       |   |                                      |   |

----