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: March 31, 2007

(  )
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), 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]

As of May 10, 2007, the Company had 120,681,870 shares of its $.001 par value, common stock outstanding.

Transitional Small Business Disclosure Format:
Yes [   ]  No [X]



INDEX


   
Page  
   
Number
PART I.
  
     
ITEM 1.
Financial Statements (unaudited)
 3
     
 
Balance Sheet
As of March 31, 2007 and June 30, 2006
  4
     
 
Statements of Operations
Three Months and Nine Months Ended March 31, 2007 and 2006 and the Period from Inception (January 27, 1984) to March 31, 2007
  5
     
 
Statement of Cash Flows
Nine Months Ended March 31, 2007 and 2006 and the Period from Inception (January 27, 1984) to March 31, 2007
  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
 17
     
PART II
  
     
ITEM 2.
Unregistered Sales of Equity Securities and Use of Proceeds
 17
     
ITEM 5.
Other Information
  18
     
ITEM 6.
Exhibits
 18
     
Signatures
  19



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 March 31, 2007, the statements of operations for the three and nine months ended March 31, 2007 and 2006 and the period from inception (January 27, 1984) to March 31, 2007 and statements of cash flows for the nine months ended March 31, 2007 and 2006 and the period from inception (January 27, 1984) to March 31, 2007, 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 March 31, 2007, 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

   
March 31, 2007
  
June 30, 2006
  
CURRENT ASSETS
          
Cash
    
9,770
    
6,775
  
Total Current Assets
    
9,770
    
6,775
  
               
PROPERTY AND EQUIPMENT - net of accumulated depreciation
    
103,183
    
167,005
  
               
OTHER ASSETS
              
Accounts receivable - affiliates
    
49,879
    
70,210
  
Oil leases
    
67,913
    
67,913
  
Available for sale securities
    
2,428
    
2,428
  
Land
   
34,352
    
92,679
  
Land - Canada
    
-
        
     
154,572
    
233,230
  
               
Total Assets
    
267,525
    
407,010
  
               
LIABILITIES AND STOCKHOLDERS' DEFICIT
              
               
CURRENT LIABILITIES
              
Accounts payable
    
168,850
    
74,718
  
Note Payable - Land
    
-
    
-
  
Accounts payable - related parties
    
67,056
    
807,686
  
Total Current Liabilities
    
235,906
    
882,404
  
               
STOCKHOLDERS' EQUITY
              
Common stock
              
400,000,000 shares authorized, at $.001 par value; 120,681,870 issued and outstanding
    
120,682
    
92,625
  
Capital in excess of par value
    
9,505,281
    
10,983,235
  
Less stock subscriptions receivable
    
(274,209
)
  
(2,427,000
)
Deficit accumulated during the development stage
    
(9,320,135
)
  
(9,124,254
)
Total Stockholders' Equity
    
31,619
    
(475,394
)
               
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
    
267,525
    
407,010
  



4

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

   
3 months ended March 31,
  
9 months ended March 31
  
Jan. 27, 1984 (date of inception of development stage) to
March 31,
  
   
2007
  
2006
  
2007
  
2006
  
2007
  
                       
REVENUES
                      
Other non-operating income
  
$
318
  
$
1,299
  
$
968
  
$
5,083
  
$
369,111
  
                                 
EXPENSES
                                
Exploration, development and administrative - Note 6
    
124,511
    
42,877
    
318,657
    
238,686
    
10,982,907
  
Depreciation
    
6,000
    
6,000
    
16,656
    
18,000
    
188,758
  
                                 
Total operating expenses
   
130,511
    
48,877
    
335,313
    
256,686
    
11,171,665
  
                                 
NET (LOSS) - before other income (expense)
    
(130,193
)
  
(47,578
)
  
(334,345
)
  
(251,603
)
  
(10,802,554
)
                                 
Gain on sale of assets
    
-
    
-
    
141,636
    
39,249
    
1,511,945
  
Loss on land foreclosure
                            
(1,744
)
Interest expense
    
(1,840
)
  
(2,000
)