**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**FORM      10-QSB/A**

**(Amendment      No. 1)**

**Commission      File number 0-26845**

| **Theater                Xtreme Entertainment Group,                Inc.** |
|----------------------------------------------------------------------------|

| **Florida.** |
|--------------|

| 65-0913583 |
|------------|

| 250                Corporate Boulevard, Suites E&F, Newark, Delaware                19702 |
|-----------------------------------------------------------------------------------------------|

| (302)                455-1334 |
|-------------------------------|

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**Item      1. Financial Statements**

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| **THEATER                XTREME ENERTAINMENT GROUP, INC.**                   |   |
|------------------------------------------------------------------------------|--------|
| **BALANCE                SHEETS**                                            |   |
| **MARCH                31, 2007 AND JUNE 30, 2006**                          |   |
|                                                                         |   |   |   |   |   |
|                                                                         |   | **MARCH                31,** |   | **JUNE                30,** |   |
|                                                                         |   | **2007** |   | **2006** |   |
| **Assets**                                                                   |   | **(UNAUDITED)** |   | **(AUDITED)** |   |
|                                                                         |   |   |   |   |   |   |   |
| Current                Assets:                                               |   |   |   |   |   |   |   |
| Cash                and equivalents                                          |   | $ | 1,218,158 |   | $ | 466,481 |   |
| Accounts                receivable, net of allowance of $75,000, and $25,000 |   |   | 332,508 |   |   | 139,893 |   |
| Inventory                                                                    |   |   | 711,261 |   |   | 629,056 |   |
| Prepaid                expenses                                              |   |   | 410,331 |   |   | 132,679 |   |
| Other                current assets                                          |   |   | 292,360 |   |   | 15,441 |   |
| Total                current assets                                          |   |   | 2,964,618 |   |   | 1,383,550 |   |
| Property                and equipment, net                                   |   |   | 814,723 |   |   | 357,434 |   |
|                                                                         |   |   |   |   |   |   |   |
| Other                assets:                                                 |   |   |   |   |   |   |   |
| Deferred                financing fees                                       |   |   | 250,000 |   |   | - |   |
| Deposits                                                                     |   |   | 48,954 |   |   | 20,720 |   |
| Total                Other Assets                                            |   |   | 298,954 |   |   | 20,720 |   |
|                                                                         |   | $ | 4,078,295 |   | $ | 1,761,704 |   |
| **Liabilities                and Stockholders' Equity (Deficit)**            |   |   |   |   |   |   |   |
|                                                                         |   |   |   |   |   |   |   |
| Current                Liabilities:                                          |   |   |   |   |   |   |   |
| Accounts                payable and accrued expenses                         |   | $ | 664,180 |   | $ | 646,290 |   |
| Payroll                tax liabilities                                       |   |   | 125,946 |   |   | 58,715 |   |
| Current                portion of notes payable                              |   |   | 29,113 |   |   | 19,129 |   |
| Non-convertible                debentures                                    |   |   | 300,000 |   |   | - |   |
| Deferred                franchise fees                                       |   |   | 284,000 |   |   | 279,000 |   |
| Deferred                sales                                                |   |   | 654,455 |   |   | 679,706 |   |
| Total                current liabilities                                     |   |   | 2,057,694 |   |   | 1,682,840 |   |
|                                                                         |   |   |   |   |   |   |   |
| Long-term                Liabilities:                                        |   |   |   |   |   |   |   |
| Non-convertible                debentures                                    |   |   | 2,700,000 |   |   | - |   |
| Notes                payable, net of current portion                         |   |   | 90,031 |   |   | 47,163 |   |
| Total                long-term liabilities                                   |   |   | 2,790,031 |   |   | 47,163 |   |
| Total                liabilities                                             |   |   | 4,847,725 |   |   | 1,730,003 |   |
|                                                                         |   |   |   |   |   |   |   |
| Stockholders'                Equity (deficit):                               |   |   |   |   |   |   |   |
| Preferred                stock, no par value, 5,000,000 shares authorized,   |   |   |   |   |   |   |   |
| no                shares issued and outstanding                              |   |   | - |   |   | - |   |
| Common                stock, $.001 par, 50,000,000 shares authorized;        |   |   |   |   |   |   |   |
| 19,847,825                and 19,122,342 shares issued                       |   |   | 19,847 |   |   | 19,122 |   |
| Additional                paid in capital and                outstanding     |   |   | 5,357,222 |   |   | 3,973,742 |   |
| Accumulated                deficit                                           |   |   | (6,146,499 | ) |   | (3,961,163 | ) |
| Total                stockholders' equity (deficit)                          |   |   | (769,430 | ) |   | 31,701 |   |
|                                                                         |   | $ | 4,078,295 |   | $ | 1,761,704 |   |

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**Item      6. Exhibits**

| **Exhibit** | **Description                of Exhibit**                                                                                                                                                                                                        |
|-------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |                                                                                                                                                                                                                                             |
| 31.1   | Certification                pursuant to Rule 13a-14(a) of the                Securities Exchange Act of 1934, as amended executed by the Chief                Executive Officer of the Company.                                            |
| 31.2   | Certification                pursuant to Rule 13a-14(a) of the                Securities Exchange Act of 1934, as amended executed by the Chief                Financial Officer of the Company.                                            |
| 32.1   | Certification                pursuant to 18 U.S.C. Section 1350, as                adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                executed                by the Chief Executive Officer of the Company.  |
| 32.2   | Certification                pursuant to 18 U.S.C. Section 1350, as                adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                executed                by the Chief Financial Officer of the Company.  |

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**SIGNATURES**

|                        | THEATER                XTREME ENTERTAINMENT GROUP, INC.  |
|-----------------------------|---------------------------------------------------------------|
|                        |                                                          |   |
| May                21, 2007 | By:                                                           |                  /s/ Scott R. Oglum |
|                        |                                                          | Scott                R. Oglum |
|                        |                                                          | Chairman                of the Board and Chief Executive Officer |
|                        |                                                          |   |
|                        | By:                                                           |                  /s/ James J. Vincenzo |
|                        |                                                          | James                J. Vincenzo |
|                        |                                                          | Chief                Financial Officer |

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