UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
 
FORM 10-QSB

(x)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: December 31, 2006

(  )
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________________ to ____________________

Commission File number 0-11695

APEX RESOURCES GROUP, INC.
(Exact name of registrant as specified in charter)

UTAH
87-0403828
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
   
299 S. Main Street, Suite 1300, Salt Lake City, Utah
84111
(Address of principal executive offices)
(Zip Code)

(801) 534-4450
Registrant’s telephone number, including area code

Check whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) Yes [x] No [  ] and (2) has been subject to such filing requirements for the past 90 days. Yes [x] No [  ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [  ]  No [x]         

State the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date. Common stock, par value $.001; 110,681,870 shares outstanding as of January 31, 2007.

Transitional Small Business Disclosure Format: Yes [  ] No [x].


 
 
 

INDEX


   
Page   
 
 
Number
PART I.
    
     
ITEM 1.
Financial Statements (unaudited)
 3
     
 
Balance Sheet
  
 
December 31, 2006
 4
     
 
Statements of Operations
  
 
Three Months and Six Months Ended December 31, 2006 and 2005 and the Period from Inception (January 27, 1984) to December 31, 2006
 5
     
 
Statement of Cash Flows
 
 
Six Months Ended December 31, 2006 and 2005 and the Period from Inception (January 27, 1984) to December 31, 2006
6
   
 
 
Notes to Financial Statements
7
   
 
ITEM 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
12
   
 
ITEM 3.
Controls and Procedures
18
   
   
PART II
  
 
   
 
ITEM 2.
Unregistered Sales of Equity Securities and Use of Proceeds
18
   
 
ITEM 6.
Exhibits
19
   
 
 
Signatures
20
     





 
2
 

PART I - FINANCIAL INFORMATION

 
This filing contains certain forward-looking statements. For this purpose any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, words such as “may,” “will,” “expect,” “believe,” anticipate,” “estimate” or “continue” or comparable terminology are intended to identify forward-looking statements. These statements by their nature involve substantial risks and uncertainty, and actual results may differ materially depending on a variety of factors, many of which are not within the Company’s control. These factors include but are not limited to economic conditions generally and in the industries in which the Company participate; competition within the Company’s industry, including competition from much larger competitors; and changes in laws and regulation that effect the Company.

ITEM 1.
FINANCIAL STATEMENTS
 
The accompanying balance sheet of Apex Resources Group, Inc., (development stage company) at December 31, 2006, the statements of operations for the three and six months ended December 31, 2006 and 2005 and the period from inception (January 27, 1984) to December 31, 2006 and statements of cash flows for the six months ended December 31, 2006 and 2005 and the period from inception (January 27, 1984) to December 31, 2006, have been prepared by the Company’s management in conformity with accounting principles generally accepted in the United States of America. In the opinion of management, all adjustments considered necessary for a fair presentation of the results of operations and financial position have been included and all such adjustments are of a normal recurring nature.

Operating results for the quarter ended December 31, 2006, are not necessarily indicative of the results that can be expected for the year ending June 30, 2007.













 
3
 

APEX RESOURCES GROUP, INC.
(DEVELOPMENT STAGE COMPANY)
BALANCE SHEET

   
December 31 2006
  
CURRENT ASSETS
        
Cash
    
56,648
  
Total Current Assets
    
56,648
  
         
PROPERTY AND EQUIPMENT - net of accumulated
        
Depreciation
    
109,183
  
         
OTHER ASSETS
        
Accounts receivable - affiliates
    
66,879
  
Oil leases
    
67,913
  
Available for sale securities
    
2,428
  
Land
   
34,352
  
     
171,572
  
         
Total Assets
    
337,403
  
         
LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY
        
         
CURRENT LIABILITIES
        
Accounts payable
    
89,622
  
Note Payable - Land
    
-
  
Accounts payable - related parties
    
84,129
  
Total Current Liabilities
    
173,751
  
         
STOCKHOLDERS' (DEFICIT) EQUITY
        
Common stock
        
400,000,000 shares authorized, at $.001 par value; 110,681,870 issued and outstanding
    
110,682
  
Capital in excess of par value
    
9,295,281
  
Less stock subscriptions receivable
    
(54,209
)
Deficit accumulated during the development stage
    
(9,188,102
)
Total Stockholders' (Deficit) Equity
    
163,652
  
         
 
        
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY
    
337,403
  
         
         
See accompanying notes to financial statements
         


 
4
 

APEX RESOURCES GROUP, INC.
(DEVELOPMENT STAGE COMPANY)
STATEMENTS OF OPERATIONS
 

   
 3 months ended
December 31
  
6 months ended
December 31
  
Jan. 27, 1984 (date of inception of development stage) to
  
   
 2006
  
2005
  
2006
  
2005
  
Dec 31, 2006
  
 
                  
REVENUES
                                
Other non-operating income
  
$
-
  
$
1,287
  
$
650
  
$
3,784
  
$
368,793
  
                                 
EXPENSES
                                
                                 
Exploration, development and administrative - Note 7
    
122,833
   
41,175
   
194,146
   
195,374
   
10,858,396
 
Depreciation
    
5,328
   
6,000
   
10,656
   
12,000
   
182,758
 
 
                                
Total operating expenses
   
128,161
   
47,175
   
204,802
   
207,374
   
11,041,154
 
 
                                
NET (LOSS) - before other income (expense)
    
(128,161
)
  
(45,888
)
  
(204,152
)
  
(203,590
)
  
(10,672,361
)
                                 
Gain on sale of assets
    
91,608
   
-
   
141,636
   
40,993
   
1,511,945
 
Loss on land foreclosure
    
-
   
-
   
-
   
(20,525
)
  
(1,744
)
Interest expense
    
(760
)
  
(2,697
)
  
(1,332
)
  
(1,744
)
  
(25,942
)
                                 
NET (LOSS)
    
(37,313
)