UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C.  20549 _____________  FORM 10-Q (Mark One) [ X ]Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934For the quarterly period ended March 31, 2010[    ]Transition Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934For the transition period from  to  Commission File Number: 0001073262  Golden Spirit Enterprises Ltd. (Exact name of small business issuer as specified in its charter)  Delaware (State or other jurisdiction of incorporation or organization)  52-2132622(I.R.S. Employer Identification No.)  1802 Goya Street, Jonquiere Quebec, Canada, G7Z 1C3 (Address of principal executive offices)  514-688-3289 (Issuers telephone number)  Indicate by check mark whether the registrant (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.  [X] Yes  [
  ] No  Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).   [  ]Yes[  ]No Indicate by check mark
  whether the registrant is a large accelerated filer, an accelerated filer,
  a non-accelerated filer, or a smaller reporting company.  See the definitions
  of large accelerated filer, accelerated filer and smaller
  reporting company in Rule 12b-2 of the Exchange Act.  -1-   Large accelerated filer [ ]Accelerated filer [ ]Non-accelerated filer [ ]
(Do not check if a smaller reporting company)Smaller reporting company [X]  Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). [ ] Yes  [ X] No   APPLICABLE ONLY TO CORPORATE ISSUERS  On May 11, 2010 there were 28,242,024 shares outstanding of the issuers common stock.  INDEX   PAGE Part I. FINANCIAL INFORMATION  Item 1.   Financial
  Statements.....................................................................................................F-1  Balance Sheet as of March 31, 2010 (Unaudited)
  and December 31, 2009.....................................F-1  Statements of Operations (Unaudited) For the Three Months Ended March 31, 2010 and 2009, and the Period from September 13, 1993 (Inception) through March 31, 2010.............................................................................................F-2  Statements of Cash Flows (Unaudited) For the Nine Months Ended March 31, 2010 and 2009, and the Period from September 13, 1993 (Inception) through March 31, 2010.............................................................................................F-3  Notes To Consolidated Financial Statements
  (Unaudited)............................................................. F-4  Item 2.   Management's
  Discussion and Analysis or Plan of Operation...........................................3-7 Item 3.   Quantitative
  and Qualitative Disclosures About Market Risk...............................................8  Item 4T  Controls
  and Procedures

...................................................................................................8  Part II. OTHER INFORMATION  Item
  1.   Legal Proceedings.............................................................................................................9  Item 2.    Unregistered
  Sales of Equity Securities and Use of Proceeds.............................................10  Item
  3.   Defaults Upon Senior Securities........................................................................................10  Item 4.   Submission of Matters to a Vote of Security Holders..........................................................10  Item
  5.   Other Information............................................................................................................10  Item
  6.   Exhibits...........................................................................................................................10  SIGNATURES.............................................................................................................................10   -2-  PART I -  FINANCIAL INFORMATION  Item 1. Financial Statements   GOLDEN SPIRIT ENTERPRISES LTD.  (A development stage company)  CONSOLIDATED FINANCIAL STATEMENTS  MARCH 31, 2010  (UNAUDITED)    CONSOLIDATED BALANCE SHEETS ...........................................F-2  CONSOLIDATED STATEMENTS OF OPERATIONS..................F-3  CONSOLIDATED STATEMENTS OF CASH FLOWS.................F-4  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.......F-5   F-1   GOLDEN SPIRIT ENTERPRISES LTD. (A development stage company) CONSOLIDATED BALANCE SHEETS  March 31,December 31,2010
  (unaudited)2009ASSETSCURRENT ASSETSCash$               2,123$               1,223Accounts Receivable-3,076TOTAL CURRENT ASSETS2,1234,299AVAILABLE FOR SALE SECURITIES  related parties26,87953,716FILM PRODUCTION & DEVELOPMENT COSTS
DUE FROM LEGACY WINE & SPIRITS INTERNATIONAL LTD.1
72,6681
72,668DUE FROM ORGANA GARDENS INTERNATIONAL LTD.7,1437,143TOTAL ASSETS$            108,814$           137,827LIABILITIES AND STOCKHOLDERS DEFICITCURRENT LIABILITIESAccounts payable and accrued liabilities$              36,827$            33,582Due to related parties224,902227,837TOTAL CURRENT LIABILITIES261,729261,419COMMITMENTS AND CONTINGENCIESSTOCKHOLDERS (DEFICIT)Common stock, $0.0001 par value, 500,000,000 shares authorizedIssued and outstanding:23,957,024 (2009  23,442,024) common shares2,3952,343Additional paid-in capital17,502,07517,481,527Deferred compensation(37,628)(45,209)Deficit accumulated during the development stage(17,779,238)(17,748,571)Accumulated other comprehensive income159,481186,318TOTAL STOCKHOLDERS (DEFICIT)(152,915)(123,592)TOTAL LIABILITIES AND STOCKHOLDERS (DEFICIT)$              108,814$      137,827  The accompanying notes are an integral part of these financial statements   F-2   GOLDEN SPIRIT ENTERPRISES LTD. (A development stage company) CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)  Three months EndedThree months  EndedSeptember 13,1993 (inception) toMarch 31, 2010March 31, 2009March 31, 2010REVENUESProcessing Fees$                    -$



                        -$        98,425Gaming Revenue--18,596Sale of oil and gas interest--47,501Interest income--2,927TOTAL REVENUES--167,449COST OF SALESPoker royalties and processing fees--30,601GROSS PROFIT (LOSS)--136,848GENERAL AND ADMINISTRATIVE EXPENSESAdvertising and marketing--93,895Consulting fees4,90513,6677,424,871Depreciation and amortization--132,569Exploration costs--241,754Investor relations2,916-699,527Litigation settlement--52,169Loss on settlement of debt--302,500Management fees--378,447Office and general10,47213,642649,605Poker Sponsorships--52,500Professional fees7,4294,000648,736Travel and accommodation4,4452,789268,807Wages and salaries500-249,933Write-off of website development costs--425,682Write-down (recovery) of URL costs--1,571,657Write-down of technology license--2,055,938Write-down of film production and distribution costs--90,762Write-off of other assets--265,886TOTAL GENERAL AND ADMINISTRATIVE EXPENSES30,66734,09815,605,238OTHER INCOME (EXPENSES)EQUITY LOSS FROM ORGANA GARDENS INTERNATIONAL--(1,394,280)WRITE-DOWN OF INVESTMENT IN ORGANA GARDENS--(313,301)GAIN/(LOSS) ON SALE OF SECURITIES-RELATED PARTIES-(8,547)44,614DILUTION GAIN  LEGACY WINE&SPIRITS INTERNATIONAL--334,087PROPERTY OPTION LOSS--(600,000)TOTAL OTHER INCOME (EXPENSES)-(8,547)(1,928,880)Loss before income taxes(30,667)(42,645)(17,397,270)Income Tax Provision---NET LOSS(30,667)(42,645)$ (17,397,270)NET LOSS ATTRIBUTED TO NONCONTROLLING INTEREST--479,978NET LOSS TO GOLDEN SPIRIT ENTERPRISES LTD.(30,667)(42,465)$   (16,917,293)BASIC AND DILUTED LOSS PER COMMON SHARE$   

 

    (0.00)$



                (0.00)BASIC AND DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING23,813,96818,842,024  The accompanying notes are an integral part of these consolidated financial statements    F-3  GOLDEN SPIRIT ENTERPRISES LTD. (A development stage company) CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) September 13,1993Three
      Months            Three Months(inception)Ended                          EndedtoMarch 31 , 2010March 31, 2009March
    31, 2010OPERATING ACTIVITIESNet loss$          (30,667)$         (42,645)$  (17,397,270)Adjustments to reconcile net loss to net cash used in operating activities:Depreciation--132,569Fees and services paid for with shares7,58113,6675,104,590Loss on settlement of debt-302,500Stock-based compensation-2,208,169Non-cash component of URL write-down-1,214,193Resource property acquisition and exploration costs-763,000Film production and development costs-(90,763)Write-down of technology license-2,055,938Write-off of website development costs-206,876Write-down of film production & development costs-90,762Equity loss from Organa-1,394,280Write-down of investment in Organa-313,301(Gain)/Loss on sale of marketable securities-8,547(44,614)Dilution gain  Legacy-(334,087)Net changes in operating assets and liabilities26,921(5,864)341,795CASH FLOWS USED IN OPERATING ACTIVITIES3,835(26,295)(3,738,761)INVESTING ACTIVITIESDeposit--(75,000)Technology license--(135,938)Acquisition of furniture and equipment--(32,696)Website development costs--(306,876)Other intangible assets--(5,189)Purchase of securities  related parties--(75,603)Net proceeds from sale of securities  related parties-81,244380,238Net cash on disposition of Legacy Wine & Spirits International Ltd.-209,955CASH FLOWS (USED IN)  INVESTING ACTIVITIES-81,244(41,109)FINANCING ACTIVITIESNet advances (to)/ from related parties(2,935)(53,550)655,570Net proceeds on sale of common stock--3,129,423CASH FLOWS PROVIDED BY FINANCING ACTIVITIES(2,935)(53,550)3,781,993NET (DECREASE) INCREASE IN CASH9001,3992,123CASH, BEGINNING OF PERIOD1,2231,556-CASH , END OF PERIOD$               2,123$       2,955$             2,123  The accompanying notes are an integral part of these financial statements    F-4    GOLDEN SPIRIT ENTERPRISES LTD. (A development stage company) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2010
(unaudited)  NOTE 1  NATURE OF OPERATIONS  The Company was incorporated on September 13, 1993 in the State of Delaware as Power Direct, Inc.  On January 31, 2000 the Company changed its name to 2U Online.com Inc. to reflect managements decision to shift the Companys focus from oil and gas exploration and development to internet-based business development.  On October 8, 2003, the Company changed its name to Golden Spirit Minerals Ltd. to reflect managements decision to shift the Companys focus from internet-based business development to mineral exploration. On October 19, 2004, the Company changed its name to Golden Spirit Mining Ltd. On July 18, 2005, the Company changed its name to Golden Spirit Gaming Ltd. to reflect managements decision to develop an online gaming business.  Effective June 30, 2006, the Company completed a 1 for 18 reverse stock split and changed its name to Golden Spirit Enterprises Ltd. to reflect the Companys plan to expand its operations to include the marketing of other products and venues not related to gaming including the development, production, financing and packaging of innovative film and television programming. In addition, the Company has signed an agreement with Eneco Industries to participate in a series of Municipal Solid Waste (garbage) fueled Recycling and Resource Recovery Plants (refer to Note 5).  The consolidated financial statements have been prepared on the basis of a going concern which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.  The Company has incurred losses since inception of $17,397,271 and at March 31, 2010 had a working capital deficiency of $259,606 The Company and its subsidiaries are in the development stage and further significant losses are expected to be incurred in developing its business.  The recoverability of the carrying value of assets and the ability of the Company to continue as a going concern is dependent on raising additional capital and ultimately on generating future profitable operations.  There can be no assurance that the Company will be able to raise the necessary funds when needed to finance its ongoing costs. Given the Companys limited operating history, lack of sales, and its operating losses, there can be no assurance that it will be able to achieve or maintain profitability. The Company intends to fund the marketing of its business with both equity financing and joint venture opportunities, although there are no assurances these opportunities will be successful. Accordingly, these factors raise substantial doubt regarding the ability of the Company to continue as a going concern.  NOTE 2- BASIS OF PRESENTATION  The financial statements include the accounts of the Company and its subsidiaries, a 100% interest in PD Oil & Gas, Inc. (inactive), and a 100% interest in Cardstakes.com Enterprises Ltd. (inactive).  The foregoing unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Regulation S-X Article 8 Financial Statements of Smaller Reporting Companies, as promulgated by the Securities and Exchange Commission ("SEC").  Accordingly, these financial statements do not include all of the disclosures required by generally accepted accounting principles for complete financial statements.  These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the period ended December 31, 2009 referenced in the 10-K.  In the opinion of management, the unaudited interim consolidated financial statements furnished herein include all adjustments, all of which are of a normal recurring nature, necessary for a fair statement of the results for the interim period presented.  The preparation of financial statements in accordance with generally accepted accounting principles requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period.  Uncertainties with respect to such estimates and assumptions are inherent in the preparation of the Company's financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions that could have a material effect on the reported amounts of the Company's financial position and results of operations.  Operating results for the three months ended March 31, 2010 are not necessarily indicative of the results that may be expected for the year ending December 31, 2010.   F-5  GOLDEN SPIRIT ENTERPRISES LTD. (A development stage company) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2010 (unaudited)  NOTE 2- BASIS OF PRESENTATION (continued)  Film Production and Development Costs Capitalized film production and development costs consist of investments in films which include the unamortized costs of completed films which have been produced by the Company or for which the Company has acquired distribution rights.  For films produced by the Company, capitalized costs include all direct production and financing costs, and production overhead. For acquired films, capitalized costs consist of minimum guarantee payments to acquire the distribution rights.  Costs of acquiring and producing films are amortized using the individual-film-forecast method as defined in SOP 00-2, whereby these are amortized and participation and residual costs are accrued in the proportion that current years revenue bears to managements estimate of ultimate revenue at the beginning of the current year expected to be recognized from the exploitation, exhibition or sale of the films.  Capitalized film costs are stated at the lower of amortized cost or estimated fair value on an individual film basis. The valuation of investment in films is reviewed on a title-by-title basis, when an event or changes in circumstances indicate that the fair value of a film is less than its unamortized cost. The fair value of the film is determined using managements future revenue and cost estimates. Additional amortization is recorded for the amount, if any, by which the unamortized costs exceed the estimated fair value of the film. Estimates of future revenue involve measurement uncertainty and it is therefore possible that reductions in the carrying value of investment in films may be required as a consequence of changes in managements future revenue estimates.  Films in progress include the accumulated costs of production, which have not yet been completed by the Company.  Films in development include costs of acquiring film rights to original screenplays and costs to adapt such projects. Such costs are capitalized and, upon commencement of production, are transferred to production costs. Projects in development are written off at the earlier of the date determined not to be recoverable or when abandoned, or three years from the date of the initial investment.  Stock-Based Compensation The Company accounts for all compensation
  related to stock, options or warrants using a fair value based method whereby
  compensation cost is measured at the grant date based on the value of the award
  and is recognized over the service period, which is usually the vesting period.
  The Company uses the Black-Scholes pricing model to calculate the fair value
  of options and warrants issued to both employees and non-employees. Stock issued
  for compensation is valued using the market price of the stock on the date
  of the related agreement.  Recent Accounting Pronouncements In September 2009, the FASB issued ASU No. 2009-12  Fair Value Measurements and Disclosures (Topic 820)  Investments in Certain Entities That Calculate Net Asset Value per Share (or its equivalent).  This ASU permits use of a practical expedient, with appropriate disclosures, when measuring the fair value of an alternative investment that does not have a readily determinable fair value.  ASU No. 2009-12 is effective for interim and annual periods ending after December 15, 2009, with early application permitted.  Since the Company does not currently have any such investments, it does not anticipate any impact on its financial statements upon adoption.  In August 2009, the FASB issued ASU No. 2009-05  Fair Value Measurements and Disclosures (Topic 820)  Measuring Liabilities at Fair Value.  This ASU clarifies the fair market value measurement of liabilities.  In circumstances where a quoted price in an active market for the identical liability is not available, a reporting entity is required to measure fair value using one or more of the following techniques: a technique that uses quoted price of the identical or a similar liability or liabilities when traded as an asset or assets, or another valuation technique that is consistent with the principles of Topic 820 such as an income or market approach.  ASU No. 2009-05 was effective upon issuance and it did not result in any significant financial impact on the Company upon adoption.   F-6  GOLDEN SPIRIT ENTERPRISES LTD. (A development stage company) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2010 (unaudited)  NOTE 2- BASIS OF PRESENTATION (continued)  On July 1, 2009, the FASB officially launched the FASB ASC 105 --  Generally Accepted Accounting Principles, which established the FASB Accounting Standards Codification (the Codification), as the single official source of authoritative, nongovernmental, U.S. GAAP, in addition to guidance issued by the Securities and Exchange Commission.  The Codification is designed to simplify U.S. GAAP into a single, topically ordered structure.  All guidance contained in the Codification carries an equal level of authority.  The Codification is effective for interim and annual periods ending after September 15, 2009.  Accordingly, the Company refers to the Codification in respect of the appropriate accounting standards throughout this document as FASB ASC.  Implementation of the Codification did not have any impact on the Companys consolidated financial statements.  In June 2009, the Financial Accounting Standards Board (FASB) issued SFAS No. 168, The FASB Accounting Standards CodificationTM and the Hierarchy of Generally Accepted Accounting Principlesa replacement of FASB Statement No. 162, (SFAS 168). SFAS 168 replaces SFAS No. 162, The Hierarchy of Generally Accepted Accounting Principles, and establishes the FASB Accounting Standards CodificationTM (Codification) as the source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in conformity with GAAP. Rules and interpretive releases of the Securities and Exchange Commission (SEC) under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. The FASB will no longer issue new standards in the form of Statements, FASB Staff Positions, or Emerging Issues Task Force Abstracts; instead the FASB will issue Accounting Standards Updates. Accounting Standards Updates will not be authoritative in their own right as they will only serve to update the Codification. The issuance of SFAS 168 and the Codification does not change GAAP. SFAS 168 becomes effective for the Company for the period ending September 30, 2009. Management has determined that the adoption of SFAS 168 will not have an impact on its consolidated financial statements. In December 2007, the Financial Accounting Standards Board (FASB) issued Statement No. 141R, Business Combinations, and Statement No. 160, Non-controlling Interests in Consolidated Financial Statements, an amendment of ARB No. 51. Statement No. 141R modifies the accounting and disclosure requirements for business combinations and broadens the scope of the previous standard to apply to all transactions in which one entity obtains control over another business. Statement No. 160 establishes new accounting and reporting standards for non-controlling interests in subsidiaries. The Company will be required, if applicable, to apply the provisions of the new standards in the first quarter of 2009. Early adoption is not permitted for these new standards.  In March 2008, the Financial Accounting Standards Board, or FASB, issued SFAS No. 161, Disclosures about Derivative Instruments and Hedging Activitiesan amendment of FASB Statement No. 133.  This standard requires companies to provide enhanced disclosures about (a) how and why an entity uses derivative instruments, (b) how derivative instruments and related hedged items are accounted for under Statement 133 and its related interpretations, and (c) how derivative instruments and related hedged items affect an entitys financial position, financial performance, and cash flows. This Statement is effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008, with early application encouraged. The Company has not yet adopted the provisions of SFAS No. 161, but does not expect it to have a material impact on its consolidated financial position, results of operations or cash flows.  In May 2008, the Financial Accounting Standards
  Board (FASB) issued SFAS No. 162, The Hierarchy of Generally
  Accepted Accounting Principles.  SFAS No. 162 sets forth the level
  of authority to a given accounting pronouncement or document by category. Where
  there might be conflicting guidance between two categories, the more authoritative
  category will prevail. SFAS No. 162 will become effective 60 days after the
  SEC approves the PCAOBs amendments to AU Section 411 of the AICPA Professional
  Standards. SFAS No. 162 has no effect on the Companys financial position,
  statements of operations, or cash flows at this time.   F-7  GOLDEN SPIRIT ENTERPRISES LTD. (A development stage company) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2010 (unaudited)  In May 2008, the Financial Accounting Standards Board (FASB) issued SFAS No. 163, Accounting for Financial Guarantee Insurance Contracts-and interpretation of FASB Statement No. 60.  SFAS No. 163 clarifies how Statement 60 applies to financial guarantee insurance contracts, including the recognition and measurement of premium revenue and claims liabilities. This statement also requires expanded disclosures about financial guarantee insurance contracts. SFAS No. 163 is effective for fiscal years beginning on or after December 15, 2008, and interim periods within those years. SFAS No. 163 has no effect on the Companys financial position, statements of operations, or cash flows at this time.   NOTE 2- BASIS OF PRESENTATION (continued)  In January 2010, the FASB issued ASU No. 2010-06 regarding fair value measurements and disclosures and improvement in the disclosure about fair value measurements.  This ASU requires additional disclosures regarding significant transfers in and out of Levels 1 and 2 of fair value measurements, including a description of the reasons for the transfers.  Further, this ASU requires additional disclosures for the activity in Level 3 fair value measurements, requiring presentation of information about purchases, sales, issuances, and settlements in the reconciliation for fair value measurements.  This ASU is effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years.  We are currently evaluating the impact of this ASU; however, we do not expect the adoption of this ASU to have a material impact on our consolidated financial statements.  In February 2010, the FASB issued ASU No. 2010-09 regarding subsequent events and amendments to certain recognition and disclosure requirements.  Under this ASU, a public company that is a SEC filer, as defined, is not required to disclose the date through which subsequent events have been evaluated.  This ASU is effective upon the issuance of this ASU.  The adoption of this ASU did not have a material impact on our consolidated financial statements.  In April 2010, the FASB issued ASU No. 2010-18 regarding improving comparability by eliminating diversity in practice about the treatment of modifications of loans accounted for within pools under Subtopic 310-30  Receivable  Loans and Debt Securities Acquired with Deteriorated Credit Quality (Subtopic 310-30).  Furthermore, the amendments clarify guidance about maintaining the integrity of a pool as the unit of accounting for acquired loans with credit deterioration.  Loans accounted for individually under Subtopic 310-30 continue to be subject to the troubled debt restructuring accounting provisions within Subtopic 310-40, ReceivablesTroubled Debt Restructurings by Creditors.  The amendments in this Update are effective for modifications of loans accounted for within pools under Subtopic 310-30 occurring in the first interim or annual period ending on or after July 15, 2010.  The amendments are to be applied prospectively.  Early adoption is permitted.  We are currently evaluating the impact of this ASU; however, we do not expect the adoption of this ASU to have a material impact on our consolidated financial statements.  NOTE 3 AVAILABLEFOR-SALE SECURITIES  Organa The Company owns common shares of Organa Gardens International Inc. (formerly Shotgun Energy Corporation) (Organa), a public company with directors and significant shareholders in common that does not represent a position of control of or significant influence over Organa.  During 2007 the Company recorded an unrealized loss in the carrying value of its available-for-sale securities totaling $3,775, which was recorded as other comprehensive income (loss).  During the year ended December 31, 2008, the Company recorded an unrealized loss in the carrying value of its available-for-sale securities totaling $5,612 which was recorded as other comprehensive income (loss). During the year ended December 31, 2009, the Company sold 50,000 shares resulting in a realized loss of $(780) and recorded an unrealized loss in the carrying value of its available-for-sale securities totaling $5,138, which was recorded as other comprehensive income. During the three month period ended March 31, 2010, the Company sold Nil Organa shares and recorded no unrealized loss or gain to March 31, 2010. As a result, the carrying value of the available for sale shares of Organa is $41 as at March 31, 2010.  F-8  GOLDEN SPIRIT ENTERPRISES LTD. (A development stage company) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2010 (unaudited)  Legacy The Company owns common shares of Legacy Wine & Spirits International Ltd. (Legacy), a public company with directors and significant shareholders in common, that does not represent a position of control of or significant influence over Legacy.  During 2007 the Company recorded an unrealized gain in the carrying value of its available-for-sale securities totaling $590,993. During the year ended December 31, 2008, the Company acquired 23,200 shares valued at $19,532 sold 99,400 shares resulting in a realized gain of $28,645(net of commissions of $2,132) and recorded an unrealized gain in the carrying value of its available-for-sale securities totaling $275,121, which was recorded as other comprehensive income. During the year ended December 31, 2009, the Company sold 301,600 shares resulting in a realized gain of $8,503 and recorded an unrealized loss in the carrying value of its available-for-sale securities totaling $780,606, which was recorded as other comprehensive loss. During the three month period ended March 31, 2010, the Company sold Nil Legacy shares and recorded an additional unrealized loss of $26,837 to March 31, 2010. As a result, the carrying value of the available for sale shares of Legacy is $26,838 as at March 31, 2010.   NOTE 3 AVAILABLEFOR-SALE SECURITIES  Available for sale securities  related parties include the following:  March 31,December 31,20102009894,577  (2009-894,577) shares of Legacy Wine & Spirits$         26,838$         53,6753,450  (2009- 3,450) shares of  Organa Gardens International4141$        26,879$        53,716   NOTE 4  FILM PRODUCITON AND DEVELOPMENT COSTS  Film Production and development costs at March 31, 2010 are made up as follows:  Gross CostAccumulated amortization2008 write down of film rights and related costsNet Cost
    March 31, 2010Net Cost
  December 31, 2009Acquired films and film rights$            84,970$                     -$         (84,969)$                     1$                     1Films in progress5,793-(5,793)--$            90,763$                     -$         (90,762)$                     1$                     1   F-9  GOLDEN SPIRIT ENTERPRISES LTD. (A development stage company) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2010 (unaudited)  Acquired Films and Film Rights  The Company acquired from Beijing Dadu Sunshine Film & Culture Co. Ltd., the exclusive distribution rights worldwide, except for Asia, for the film Tales of Rain and Magic.  Under the terms of the License Agreement dated March 23, 2007, the Company will receive a 25% interest in the gross receipts earned from sales in those countries. Tales of Rain and Magic portrays a young girls coming of age, and of the psycho-logical and physiological changes that she encounters along the way to adulthood. As of March 31, 2010 and December 31, 2009, due to uncertainty of realization, the Company has written down this project to a carrying value of $Nil. The Company signed an Agreement dated March 15, 2007 with Amazing Super Buddies Productions Inc. to act as the Producer and Distributor for a 3D Television Series for children known as ASB: Power Force. In return for advancing $54,000 to produce the series, the Company will receive a guaranteed 15% interest in the gross receipts earned worldwide, inclusive of all character licensing and merchandise sold from the ASB: Power Force Series. As of March 31, 2010 and December 31, 2009, due to uncertainty of realization, the Company has written down this project to a nominal carrying value of $1.  Films in progress  The Company signed an Agreement dated February 15, 2007  to represent The Cabin, a teen-oriented, horror/thriller feature film.  As distributor of the film, the Company will receive a fee of 25% of the gross amounts of all sales or distribution deals made internationally and 20% of the gross amounts of all sales or distribution deals made in the United States. As of March 31, 2010 and December 31, 2009, due to uncertainty of realization, the Company has written down this project to a carrying value of $Nil.  The Company signed an Agreement dated March 15, 2007  to represent The Brotherhood of the Phoenix, a high concept action drama feature film. As distributor of the film, the Company will receive a fee of 25% of the gross amounts of all sales or distribution deals made internationally and 20% of the gross amounts of all sales or distribution deals made in the United States. As of March 31, 2010 and December 31, 2009, due to uncertainty of realization, the Company has written down this project to a value of $Nil.   NOTE 4  FILM PRODUCITON AND DEVELOPMENT COSTS (cont)  The Company signed a Memorandum of Understanding dated March 23, 2007 with Pentafilms, SARL of France and Beijing Dadu Sunshine Film & Culture Co. Ltd. to co-produce and distribute a film called The Mists of Time. The financial contribution for production by each party, the final percentage of distribution rights, final casting and budget will be determined in the final agreement. As of March 31, 2010 and December 31, 2009, the agreement has not been finalized and the Company has incurred $ Nil on this project.  NOTE 5  OTHER PROPERTIES  The Company signed an Agreement dated March
  28, 2008 with EnEco Industries Ltd. ("EnEco"), a waste management
  company that has been in operation for fifteen years, to form an alliance for
  a renewable energy entity, where the Company will take majority interest in
  a series of Municipal Solid Waste (garbage) fueled Recycling and Resource Recovery
  Plants designed by EnEco. These plants will be in strategically located areas
  diverting tons of garbage from landfills and drastically reducing greenhouse
  gas outputs. As of  March 31, 2010 and December 31, 2009, the Company
  has incurred $Nil on this project.   F-10  GOLDEN SPIRIT ENTERPRISES LTD. (A development stage company) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2010 (unaudited)  NOTE 6 DEFERRED COMPENSATION  The Company has recorded as deferred compensation prepaid amounts for consulting and management services contracts paid for by issuance of shares of common stock as follows:  a) On November 18, 2009, the Company entered into an agreement with a consultant, for a eighteen month term, whereby the consultant provides consulting services to the Company (valued at $17,500) in exchange for 250,000 shares of the Companys common stock.  During the three months ended March 31, 2010, a total of $2,916 has been expensed (December 31, 2009 - $1,458).  b) On November 18, 2009, the Company entered into an agreement with Palisades Financial Ltd. (Palisades), a private company controlled by a significant shareholder, with a two-year term, whereby Palisades provides investment-banking services to the Company (valued at $14,000) in exchange for 200,000 restricted shares of the Companys common stock.  During the three months ended March 31, 2010, a total of $1,749 has been expensed (December 31, 2009 - $875).  c) On November 18, 2009 the Company entered into an agreement with Compte de Sierge Accomodative Corp. (Compte), a private company controlled by a significant shareholder, with a two-year term, whereby Compte provides investor relations services to the Company (valued at $17,500) in exchange for 250,000 restricted shares of the Companys common stock.  During the three months ended March 31, 2010, a total of $2,916 has been expensed (December 31, 2009 - $1,458).  As at March 31, 2010, the unamortized portion of the deferred compensation totaled $37,628 (December 31, 2009 -  $45,209).  NOTE 7  CAPITAL STOCK  The Companys capitalization is 500,000,000 common shares with a par value of $0.0001 per share.  No preferred shares have been authorized.  (1)         2010 Stock Transactions During the three months ended March 31, 2010, 515,000 incentive stock options were granted and immediately  exercised at $0.04 per share to satisfy debts  related parties in the amount of $ 20,600. Accordingly, no compensation expense was recorded  (2)         2010 Stock Options During the three months ended March 31, 2010, 515,000 incentive stock options were granted and immediately  exercised at $0.04 per share to satisfy debts  related parties in the amount of $ 20,600.   F-11  GOLDEN SPIRIT ENTERPRISES LTD. (A development stage company) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2010 (unaudited)  NOTE 7  CAPITAL STOCK (cont)  The Companys stock option activity is as follows: Number of optionsWeighted Average Exercise PriceWeighted Average Remaining Contractual LifeBalance, December 31, 20082,351,787$                  0.202.67 yearsGranted during 2008--Exercised during 2008--Granted during 20093,900,000-Exercised during 2009(3,900,000)0.03Granted during 2010515,000-Exercised during 2010(515,000)0.04Balance, December 31, 20092,351,787$                    0.202.67 years   (3)         2009 Stock Transactions No stock issuances during the three months ended March 31, 2009.  (4)         2009 Stock Options During the three months ended March 31, 2009, the Company did not grant any stock options to directors, employees or consultants.  The Companys stock option activity is as follows:  Number of optionsWeighted Average Exercise PriceWeighted Average Remaining Contractual LifeBalance, December 31, 20061,183,629$                   0.263.08 yearsGranted during 20073,800,0000.10Exercised during 2007(1,980,000)0.10Balance, December 31, 20073,003,629$                   0.104.00 yearsGranted during 2008---Exercised during 2008(845,730)0.10Balance, December 31, 20082,157,899$                    0.10400 yearsBalance, March 31, 20092,157,899$                    0.10400 years   F-12  GOLDEN SPIRIT ENTERPRISES LTD. (A development stage company) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2010 (unaudited)  NOTE 8  RELATED PARTY TRANSACTIONS  During the three months ended March 31, 2010, companies controlled by significant shareholders earned $7,581 (2009 - $4,500) pursuant to deferred compensation services contracts (refer to Note 6).  During the three months ended March 31, 2010, the Company paid $500 (2009 -$Nil) to directors for management fees.  During the three months ended March 31, 2010, the Company incurred expenses for office rent of $6,337 (2009 - $5,310) to a private company controlled by a significant shareholder.  At March 31, 2010, a total of $7,143 (December 31, 2009  $7,143) was due from  Organa Gardens International Inc., a public company with common directors and officers, for cash advances. This amount is unsecured, non-interest bearing and has no specified terms of repayment.  At March 31, 2010, a total of $72,668 (December 31, 2009  $72,668) was due from Legacy Wine & Spirits International Ltd., a company with common directors and officers, for cash advances. This amount is unsecured, non-interest bearing and has no specified terms of repayment.   The following amounts are due to related parties at: March 31, 2010December 31, 2009Significant shareholders$              224,902$         227,837  All related party transactions are measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties.   NOTE 9  COMMITMENTS AND CONTINGENCIES  On May 2, 2003, the Company issued 25,000 post reverse-split common shares valued at $9,000 to a consultant pursuant to a stock option incentive plan.  The consultant failed to meet the terms of the stock option agreement by not paying the exercise price and as a result, the Company requested the return of the 25,000 post reverse-split shares.  The consultant refused to return the shares; therefore, the Company issued a stop transfer and commenced legal proceedings to recover the shares.  The consultant subsequently filed a Statement of Claim against the Company for damages of $53,000 Cdn.  On April 29, 2005, the Supreme Court of British Columbia issued a judgment awarding the plaintiff $15,000 Cdn in damages and $7,180 Cdn in costs; however, the 25,000 post reverse-split shares were to be returned to the Company (not yet received).In September 2005, the Company and the plaintiff agreed to payment terms to settle this damage award by a payment of $6,080 Cdn (paid) and a payment schedule of $1,000 Cdn per month for the remaining balance of the judgment commencing December 1, 2005.  The $6,080 Cdn payment was made as the result of a bailiffs executed court order on September 28, 2005, which seized the Companys bank account.  No further payments were made towards the settlement agreement due to the Plaintiffs refusal to sign the order. However, in the fourth quarter of 2009, the Supreme Court of British Columbia ruled in favor of the plaintiff despite the plaintiffs failure to return the shares to the Company. In addition to the $6,080 Cdn. payment previously made and an amount of $14,810 US accrued towards a final resolution of the matter, the Company was ordered to pay an additional $52,169 US in damages and the case is now closed.  On September 28,2005, the Company received notice of a lawsuit from Thomas L. Franklin, a professional poker player formerly under contract with 4KE, for an alleged breach of contract for services rendered based on the original contract between the Company and 4KE dated July 18, 2005.  The Company, 4KE, and certain individuals, are being sued for $967,500, plus interest at the rate of 8% per annum from August 22, 2005, and all costs pertaining to this legal matter.  An attorney in Mississippi has been retained to defend this action and to apply for a dismissal of the case, based on Mississippi being the wrong jurisdiction for this suit and to defend the Company from the claims made by the plaintiff.  The court case was dismissed in favour of the Company in the second quarter of 2008.  F-13  GOLDEN SPIRIT ENTERPRISES LTD. (A development stage company) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2010 (unaudited)  NOTE 9  COMMITMENTS AND CONTINGENCIES (cont)  Since August 1, 2002, Golden Spirit Enterprises Ltd. has leased 1250 sq. ft of office space from Holm Investments Ltd. at $2,050 per month for a period of 3 years and was renewed for an additional 3 years at $2,050 per month. The current tenancy agreement began August 1, 2008  for 3 additional years at $2,200 per month.  NOTE 10  INCOME TAXES  As of March 31, 2010 the Company had net operating loss carry forwards of approximately $17,397,000 that may be available to reduce future years' taxable income and will expire between the years 2011 - 2030.  Availability of, tax losses is subject to change of ownership limitations under Internal Revenue Code 382.  Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carryforwards.   NOTE 11  SUPPLEMENTAL CASH FLOW INFORMATION AND NON-CASH INVESTING AND FINANCING ACTIVITIES  Cash paid during the nine months ended March 31,2010 and 2009 for:20102009Interest$                 -$                 -Income taxes$                 -$                 -   NOTE 12  SUBSEQUENT EVENTS TO MAY 11, 2010  In April, 2010, 4,285,000 incentive stock options were granted and immediately exercised at $0.02 per share to satisfy debts related parties in the amount of $85,700.  On April 21, 2010, the Company filed a Registration Statement on Form S-8 to cover 10,000,000 shares of common stock to be granted pursuant to the Companys 2010 Stock Incentive and Option Plan.  In April, 2010 the Company has signed a Memorandum of Understanding with Tectane Technologies Corporation (Tectane), a Montreal-based Company in the Alternative Fuel industry for over 30 years. The MOU outlines the plan for Golden Spirit to acquire all world-wide patents and patents pending technologies relative to Tectanes AQUAGAS, AQUAHOL Alternative Energy System and New Dual H2O Engine Oxygenerator.  F-14    Item 2. Managements Discussion and Analysis or Plan of Operation. The following should be read in conjunction with our financial statements and the related notes that appear elsewhere in this quarterly report. The discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements.  We changed our name from Power Direct, Inc., to 2UOnline.com, Inc. by filing a Certificate of Amendment to our Certificate of Incorporation on January 31, 2000. We also changed our trading symbol from "PWDR" to "TWOU" in order to reflect our decision to shift our focus from oil and gas production to Internet- related activities. Our symbol was then changed to "TWOUE".  On or about April 18, 2000, we were removed from the Over-the-Counter Bulletin Board ("OTCBB") for failure to comply with NASD Rule 6530, which requires any company listed on the OTCBB to be current in its public reporting obligations pursuant to the Securities and Exchange Act of 1934. The Company was re-instated on the OTCBB on October 7, 2002 under the symbol "TWOU". The Company filed a certificate of amendment to its Articles of Incorporation with the State of Delaware on October 1, 2003 to change its name to Golden Spirit Minerals Ltd. The name change reflects management's decision to shift the Company's focus from internet-based business development to mineral exploration. On October 8, 2003, the trading symbol for the Company became "GSPM". On October 19, 2004, the Company changed its name to Golden Spirit Mining Ltd. and the trading symbol was "GSML". On July 18, 2005 the Company changed its name to Golden Spirit Gaming Ltd. and the trading symbol was GSGL. On June 30, 2006, the Company changed its name to Golden Spirit Enterprises Ltd. and the trading symbol is currently GSPT.  On August 17, 2005, the Company incorporated Golden Spirit Poker Company Limited, a British Virgin Islands Corporation.  Golden Spirit Gaming Ltd. was issued 10 shares of this Company for consideration of $10.00, representing 100% of the issued capital of Golden Spirit Poker Company Limited. On September 30, 2006, Congress passed the Unlawful Internet Gambling Enforcement Act of 2006.  The new proposed legislation prohibits banks, credit card companies, money transmitting businesses, and other third-party payment providers from knowingly processing online gaming transactions. Due to this ruling and the negative impact it would have on the Golden Spirit poker website, management decided to discontinue its online gaming operations in 2006. The Company will be involved in the development, production, financing and packaging of innovative film and television programming. In addition, the Company has signed an agreement with Eneco Industries to participate in a series of Municipal Solid Waste (garbage) fueled Recycling and Resource Recovery Plants. The Agreement calls for a joint venture utilizing EnEco's expertise and technology to develop a municipal solid waste (garbage) recycling and biomass derived renewable energy facility. Golden Spirit and EnEco will build and operate a series of solid waste recycling and biomass derived renewable energy facility with greenhouse and algae subsystems that will utilize our Thermal Oxidation Process System (TOPS) technology to generate electricity for sale to the local power grid. Further details on the new Golden Spirit - Eneco project can be viewed on our website www.goldenspirit.ws. Subsequent to March 31, 2010,the Company has signed a Memorandum of Understanding with Tectane Technologies Corporation (Tectane), a Montreal-based Company in the Alternative Fuel industry for over 30 years. The MOU outlines the plan for Golden Spirit to acquire all world-wide patents and patents pending technologies relative to Tectanes AQUAGAS, AQUAHOL Alternative Energy System and New Dual H2O Engine Oxygenerator.   -3-  Our Investment in Available for sale securities  related parties Organa The Company owns common shares of Organa Gardens International Inc. (formerly Shotgun Energy Corporation) (Organa), a public company with directors and significant shareholders in common that does not represent a position of control of or significant influence over Organa.  During 2007 the Company recorded an unrealized loss in the carrying value of its available-for-sale securities totaling $3,775, which was recorded as other comprehensive income (loss).  During the year ended December 31, 2008, the Company recorded an unrealized loss in the carrying value of its available-for-sale securities totaling $5,612 which was recorded as other comprehensive income (loss). During the year ended December 31, 2009, the Company sold 50,000 shares resulting in a realized loss of $(780) and recorded an unrealized loss in the carrying value of its available-for-sale securities totaling $5,138, which was recorded as other comprehensive income. During the three month period ended March 31, 2010, the Company sold Nil Organa shares and recorded no unrealized loss or gain to March 31, 2010. As a result, the carrying value of the available for sale shares of Organa is $41 as at March 31, 2010.  Legacy The Company owns common shares of Legacy Wine & Spirits International Ltd. (Legacy), a public company with directors and significant shareholders in common, that does not represent a position of control of or significant influence over Legacy.  During 2007 the Company recorded an unrealized gain in the carrying value of its available-for-sale securities totaling $590,993. During the year ended December 31, 2008, the Company acquired 23,200 shares valued at $19,532 sold 99,400 shares resulting in a realized gain of $28,645(net of commissions of $2,132) and recorded an unrealized gain in the carrying value of its available-for-sale securities totaling $275,121, which was recorded as other comprehensive income. During the year ended December 31, 2009, the Company sold 301,600 shares resulting in a realized gain of $8,503 and recorded an unrealized loss in the carrying value of its available-for-sale securities totaling $780,606, which was recorded as other comprehensive loss. During the three month period ended March 31, 2010, the Company sold Nil Legacy shares and recorded an additional unrealized loss of $26,837 to March 31, 2010. As a result, the carrying value of the available for sale shares of Legacy is $26,838 as at March 31, 2010.  Available for sale securities  related parties include the following:  March 31,December 31,20102009894,577  (2009-894,577) shares of Legacy Wine & Spirits$         26,838$         53,6753,450  (2009- 3,450) shares of  Organa Gardens International4141$        26,879$        53,716   -4-  Film Production and development costs at March 31, 2010 are made up as follows:  Gross CostAccumulated amortization2008 write down of film rights and related costsNet Cost
March 31, 2010Net Cost
December 31, 2009Acquired films and film rights$         84,970$                     -$       (84,969)$                  1$                   1Films in progress5,793-(5,793)--$         90,763$                     -$       (90,762)$                  1$                   1  Acquired Films and Film Rights  The Company acquired from Beijing Dadu Sunshine Film & Culture Co. Ltd., the exclusive distribution rights worldwide, except for Asia, for the film Tales of Rain and Magic.  Under the terms of the License Agreement dated March 23, 2007, the Company will receive a 25% interest in the gross receipts earned from sales in those countries. Tales of Rain and Magic portrays a young girls coming of age, and of the psycho-logical and physiological changes that she encounters along the way to adulthood. As of March 31, 2010 and December 31, 2009, due to uncertainty of realization, the Company has written down this project to a carrying value of $Nil. The Company signed an Agreement dated March 15, 2007 with Amazing Super Buddies Productions Inc. to act as the Producer and Distributor for a 3D Television Series for children known as ASB: Power Force. In return for advancing $54,000 to produce the series, the Company will receive a guaranteed 15% interest in the gross receipts earned worldwide, inclusive of all character licensing and merchandise sold from the ASB: Power Force Series. As of March 31, 2010 and December 31, 2009, due to uncertainty of realization, the Company has written down this project to a nominal carrying value of $1.  Films in progress  The Company signed an Agreement dated February 15, 2007  to represent The Cabin, a teen-oriented, horror/thriller feature film.  As distributor of the film, the Company will receive a fee of 25% of the gross amounts of all sales or distribution deals made internationally and 20% of the gross amounts of all sales or distribution deals made in the United States. As of March 31, 2010 and December 31, 2009, due to uncertainty of realization, the Company has written down this project to a carrying value of $Nil.  The Company signed an Agreement dated March 15, 2007  to represent The Brotherhood of the Phoenix, a high concept action drama feature film. As distributor of the film, the Company will receive a fee of 25% of the gross amounts of all sales or distribution deals made internationally and 20% of the gross amounts of all sales or distribution deals made in the United States. As of March 31, 2010 and December 31, 2009, due to uncertainty of realization, the Company has written down this project to a value of $Nil.   -5-  The Company signed a Memorandum of Understanding dated March 23, 2007 with Pentafilms, SARL of France and Beijing Dadu Sunshine Film & Culture Co. Ltd. to co-produce and distribute a film called The Mists of Time. The financial contribution for production by each party, the final percentage of distribution rights, final casting and budget will be determined in the final agreement. As of March 31, 2010 and December 31, 2009, the agreement has not been finalized and the Company has incurred $ Nil on this project.  WASTE ENERGY SECTOR The Thermal Oxidation Process System (TOPS) Greencycle Gasification plants decompose organic matter (with heat and air) and recover non-organics by utilizing specialized equipment and is a proven alternative to landfills. Greencycle uses low heat (500-600 Celsius) to convert all the carbon locked up in unsorted garbage into a form where it produces high quality heat through a second stage gas oxidizer running at around 1,100 Celsius. This process creates energy, enough to make electrical energy and support district heating / greenhouses. The Greencycle system provides controlled conditions to utilize Carbon Dioxide (CO2) for accelerated plant growth in greenhouses and algae farms.  The other non-carbon materials in garbage, such as aluminum, tin, copper and stainless steel, and can be easily separated after all the carbon has been removed without melting or slagging. Micron sized metals, silica, calcium etc, are also sorted out for re-use by using the Ash Recycling and Recovery Equipment (ARRE) sub-system. As of March 31, 2010, the Company has not secured any facilities to construct the Gasification Plant, nor has it incurred any other expenditures for the three month period ended March 31, 2010 (2009- $Nil)  Liquidity and Capital Resources.  At March 31, 2010, we had total assets of $108,814, including current assets in cash of $2,123. We have film production & development costs of $1,available for sale securities of $26,879, an amount due from Legacy Wine & Spirits International Ltd. of $72,668 and an amount due from Organa Gardens International Inc. of $7,143. As of December 31, 2009, we had total assets of $137,827. The decrease in assets is primarily due to a decrease in the carrying value of available for sale securities.  At March 31, 2010, we had current liabilities of $261,729, which was represented by accounts payable and accrued liabilities of $36,827 and due to related parties in the amount of $224,902. As of December 31, 2009 we had total current liabilities of $261,419. The was no material increase or decrease in liabilities. At March 31, 2010, we had a working capital deficiency of $259,606. (December 31, 2009 - $257,120).  We do not believe that
  our current cash resources will be able to maintain our current operations
  for an extended period of time.  We will be required to raise additional
  funds or arrange for additional financing over the next 12 months to adhere
  to our development schedule.  No assurance can be given, however, that
  we will have access to additional cash in the future, or that funds will be
  available on acceptable terms to satisfy our working capital requirements.
  If we are not able to arrange for additional funding or if our officers, directors
  and shareholders stop advancing funds to us, we may be forced to make other
  arrangements for financing such as loans or entering into strategic alliances.
  We have not identified any alternative sources of financing.   -6-   Results of Operations  We have realized minimal revenues from operations to date. Loss from operations for the three month period ended March 31, 2010 was $30,668 (2009 - $42,645). This decrease in loss was due to a decrease in consulting fees and office and general expenses.  From inception to March 31, 2010, we have incurred cumulative net losses of $17,397,271 resulting primarily from a write-down and equity loss in Organa Gardens International Inc. (a related party) of $1,394,280, a $600,000 property option loss as a recorded value of certain restricted shares issued to Legacy Wine & Spirits International Ltd. (a related party  see our Investment in Available for sale securities - Legacy Wine & Spirits International Ltd. above) and general and administrative expenses of $15,605,239, the majority of which is made up of consulting fees and stock based compensation expense totaling $7,424,871, write-down of URL costs of $1,571,657 and write-down of technology license of $2,055,938.  The cash and equivalents constitute our present internal sources of liquidity. Because we are not generating any significant revenues, our only external source of liquidity is the sale of our capital stock and any advances from officers, directors or shareholders.  To address the going concern problem discussed in our financial statements, we will require additional working capital.  We will also require additional funds to implement our business strategies, including funds for:  · payment of increased operating expenses, and further implementation of film industry business strategies. · payment of undetermined expenses relating to the Eneco venture (see above)  No assurance can be given; however, that we will have access to the capital markets in the future, or that financing will be available on acceptable terms to satisfy our cash requirements needed to implement our business strategies. Our inability to access the capital markets or obtain acceptable financing could have a material adverse effect on our results of operations and financial condition and could severely threaten our ability to operate as a going concern.  Our forecast of the period of time through which our financial resources will be adequate to support our operations is a forward-looking statement that involves risks and uncertainties, and actual results could vary as a result of a number of factors.  Our
    Plan of Operation for the Next 12 Months. We anticipate that we will
    need to raise additional capital within the next 12 months in order to continue
    as a going concern. Therefore, additional capital may be raised through additional
    public or private financings, as well as borrowings and other resources.
    To the extent that additional capital is raised through the sale of equity
    or equity-related securities, the issuance of such securities could result
    in dilution of our stockholders. There can be no assurance that additional
    funding will be available on favorable terms, if at all. If adequate funds
    are not available within the next 12 months, we may be required to curtail
    our operations significantly or to obtain funds through entering into arrangements
    with collaborative partners or others that may require us to relinquish rights
    to certain of our assets that we would not otherwise relinquish.   -7-   We do anticipate certain expenditures within the next 12 months for our corporate projects.  We do not anticipate any significant research and development within the next 12 months, nor do we anticipate that we will lease or purchase any significant equipment within the next 12 months. We do not anticipate a significant change in the number of our employees within the next 12 months. We are not aware of any material commitment or condition that may affect our liquidity within the next 12 months.  Off-Balance Sheet Arrangements  Our company has not entered into any off balance sheet arrangements.  Item 3. Quantitative and Qualitative Disclosures About Market Risk  As of March 31, 2010, we had cash in the amount of $2,123. We have not generated any significant revenues since inception and have incurred a net loss of $17,397,271 from our inception on September 13, 1999 to March 31, 2010. Our current operating funds are insufficient to cover any additional costs for our film production & distribution sector or our waste energy sector. Golden Spirit Enterprises does not expect significant start up costs to complete the installation of Gasification Plants for its waste energy project, nor does it expect significant cost relating to the distribution of its films inventory. It will have to obtain funds through entering into arrangements with collaborative partners or others to accomplish these expenditures. However, we do not have any specific plans for raising the required funds. There is no assurance that we will be able to raise sufficient funding from the sale of our common stock to fund our projects.  Item 4T Controls and Procedures. An evaluation was conducted by our Chief Executive Officer (CEO) and Chief Financial Officer (CFO) of the effectiveness of the design and operation of our disclosure controls and procedures as of June 30,  2009. Based on that evaluation, the CEO and CFO concluded that our controls and procedures were effective as of such date to ensure that information required to be disclosed in the reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms. There was no change in our internal control over financial reporting that occurred during the fiscal quarter ended March 31, 2010 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. This
  quarterly report does not include a report of managements assessment
  regarding internal control over financial reporting or an attestation report
  of our registered public accounting firm due to a transition period established
  by rules of the Securities and Exchange Commission for newly public companies.  -8-   PART II - OTHER INFORMATION  ITEM 1. Legal Proceedings  None  ITEM 1A. Risk Factors  Not applicable  ITEM 1B.    UNRESOLVED STAFF COMMENTS  None  ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds  The Companys capitalization is 500,000,000 common shares with a par value of $0.0001 per share.  No preferred shares have been authorized.  (1)         2010 Stock Transactions During the three months ended March 31, 2010, 515,000 incentive stock options were granted and immediately exercised at $0.04 per share to satisfy debts  related parties in the amount of $ 20,600. Accordingly, no compensation expense was recorded  (2)         2010 Stock Options During the three months ended March 31, 2010, 515,000 incentive stock options were granted and immediately exercised at $0.04 per share to satisfy debts  related parties in the amount of $ 20,600.  The Companys stock option activity is as follows: Number of optionsWeighted Average Exercise PriceWeighted Average Remaining Contractual LifeBalance, December 31, 20082,351,787$                  0.202.67 yearsGranted during 2008--Exercised during 2008--Granted during 20093,900,000-Exercised during 2009(3,900,000)0.03Granted during 2010515,000-Exercised during 2010(515,000)0.04Balance, December 31, 20092,351,787$                    0.202.67 years  (3)         2009 Stock Transactions No stock issuances during the three months ended March 31, 2009.  (4)         2009 Stock Options During the three months ended March 31, 2009, the Company did not grant any stock options to directors, employees or consultants.   -9-   The Companys stock option activity is as follows:  Number of optionsWeighted Average Exercise PriceWeighted Average Remaining Contractual LifeBalance, December 31, 20061,183,629$                   0.263.08 yearsGranted during 20073,800,0000.10Exercised during 2007(1,980,000)0.10Balance, December 31, 20073,003,629$                  0.104.00 yearsGranted during 2008---Exercised during 2008(845,730)0.10Balance, December 31, 20082,157,899$                    0.10400 yearsBalance, March 31, 20092,157,899$                    0.10400 years   ITEM 3.  Defaults Upon Senior Securities  None.  ITEM 4. Submission of Matters to Vote of Security Holders  None.  ITEM 5.  Other Information  In April, 2010 the Company
  has signed a Memorandum of Understanding with Tectane Technologies Corporation
  (Tectane), a Montreal-based Company in the Alternative Fuel industry for over
  30 years. The MOU outlines the plan for Golden Spirit to acquire all world-wide
  patents and patents pending technologies relative to Tectanes AQUAGAS,
  AQUAHOL Alternative Energy System and New Dual H2O Engine Oxygenerator.  ITEM 6. EXHIBITS  Exhibit 31.1 - Section 906 Certification of Periodic Report of the Chief Executive Officer.  Exhibit 31.2 - Section 906 Certification of Periodic Report of the Chief Financial Officer.  Exhibit 32.1 - Section 302 Certification of Periodic Report of the Chief Executive Officer.  Exhibit 32.2 - Section 302 Certification of Periodic Report of the Chief Financial Officer.   -10-   SIGNATURES  Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.  GOLDEN SPIRIT ENTERPRISES LTD.Date: May 14, 2010By:   /s/ J. CruzJaclyn CruzPresident and a Director.Date: May 14, 2010By:   /s/ C. ScheiveChristopher ScheiveDirector, Secretary & Treasurer   -11-