UNITED STATES SECURITY AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549  FORM 10-Q  (MARK ONE)  þQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934  For the quarterly period ended March 31, 2015  or  oTRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934  For the transition period from _________ to _________  Commission File Number: 333-170315  FIRST TITAN CORP. (Exact name of registrant as specified in its charter)  Florida27-3480481(State or other jurisdiction of Incorporation or organization)(I.R.S. Employer Identification Number)495 Grand Boulevard, Suite 206
Miramar Beach, FL32550(Address of principal executive offices)(Zip code)  Registrant’s telephone number, including area code: (850) 269-7267  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. Yes þ No o  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 (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes o No þ  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.  Large accelerated fileroAccelerated fileroNon-accelerated fileroSmaller reporting companyþ(Do not check is smaller reporting company)  Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) Yes o No þ  Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. As of May 15, 2015, 35,320,137 shares of common stock are issued and outstanding.    TABLE OF CONTENTS

PART I — FINANCIAL INFORMATION4Item 1. Financial Statements4Consolidated Balance Sheets  (Unaudited)4Consolidated Statements of Operations  (Unaudited)5Consolidated Statements of Comprehensive Income  (Unaudited)6Consolidated Statement of Changes in Stockholders’ Equity (Deficit)  (Unaudited)7Consolidated Statements of Cash Flows  (Unaudited)8Notes to the Unaudited Consolidated Financial Statements9Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations18Item 3. Quantitative and Qualitative Disclosures about Market Risk20Item 4. Controls and Procedures20PART II — OTHER INFORMATION21Item 1. Legal Proceedings21Item 1A. Risk Factors21Item 2. Unregistered Sales of Equity Securities and Use of Proceeds21Item 3. Defaults upon Senior Securities21Item 4. Mine Safety Disclosures21Item 5. Other Information21Item 6. Exhibits21

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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

Certain statements in this report contain or may contain forward-looking statements. These statements, identified by words such as “plan”, “anticipate”, “believe”, “estimate”, “should”, “expect” and similar expressions include our expectations and objectives regarding our future financial position, operating results and business strategy. These statements are subject to known and unknown risks, uncertainties and other factors, which may cause actual results, performance, or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward - looking statements. These forward-looking statements were based on various factors and were derived utilizing numerous assumptions and other factors that could cause our actual results to differ materially from those in the forward-looking statements. These factors include, but are not limited to, our ability to secure suitable financing to continue with our existing business or change our business and conclude a merger, acquisition or combination with a business prospect, economic, political and market conditions and fluctuations, government and industry regulation, interest rate risk, U.S. and global competition, and other factors. Most of these factors are difficult to predict accurately and are generally beyond our control. You should consider the areas of risk described in connection with any forward-looking statements that may be made herein. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this report. Readers should carefully review this report in its entirety, including but not limited to our financial statements and the notes thereto and the risks described in our Annual Report on Form 10-K for the fiscal year ended September 30, 2014. We advise you to carefully review the reports and documents we file from time to time with the Securities and Exchange Commission (the “SEC”), particularly our quarterly reports on Form 10-Q and our current reports on Form 8-K. Except for our ongoing obligations to disclose material information under the Federal securities laws, we undertake no obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events.

OTHER PERTINENT INFORMATION

When used in this report, the terms, “we,” the “Company,” “our,” and “us” refers to First Titan Corp., a Florida corporation.


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PART I — FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

FIRST TITAN CORP.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

March 31, 2015September 30, 2014ASSETSCURRENT ASSETSCash and cash equivalents$3,131$1,211Accounts receivable6,06615,891Prepaid expenses12,16012,160Total current assets21,35729,262Available for sale securities55,30952,379Oil and gas propertiesEvaluated property, net of accumulated depletion of $102,598 and $90,880 and net of accumulated impairment of $80,141 and $80,141, respectively84,13095,387Unevaluated property300,575300,575Total oil and gas properties384,705395,962TOTAL ASSETS$461,371$477,603LIABILITIES AND STOCKHOLDERS’ DEFICITCURRENT LIABILITIESAccounts payable and accrued liabilities$354,551$245,876Advances payable—48,000Current portion of convertible notes payable, net of discount of $21,817 and $244,752, respectively.168,905247,895Current portion of accrued interest payable7844,319Current portion of asset retirement obligation14,98914,670Total current liabilities539,229560,760Convertible notes payable, net of discount of $397,574 and $267,574, respectively.46,5218,711Accrued interest payable23,6656,964Asset retirement obligation5,7135,603TOTAL LIABILITIES615,128582,038COMMITMENTS AND CONTINGENCIES——STOCKHOLDERS’ DEFICITCommon Stock, $0.0001 par value; 250,000,000 shares authorized; 33,720,137 shares issued and outstanding at March 31, 2015 and September 30, 2014, respectively3,3722,562Additional paid-in capital3,709,2573,232,399Accumulated other comprehensive income20,30917,379Accumulated deficit(3,886,695)(3,356,775)Total stockholders’ deficit(153,757)(104,435)TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT$461,371$477,603
The accompanying notes are an integral part of these unaudited consolidated financial statements.


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FIRST TITAN CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)

Six months ended
March 31,Three months ended
March 31,2015201420152014OIL AND GAS SALES, net$22,397$54,069$3,236$21,859OPERATING EXPENSESLease operating expense11,07311,3245,3477,507Depletion, depreciation and amortization11,71830,6304,9327,730Accretion expense860526428178Impairment of oil and gas properties————General and administrative expenses246,822276,313142,396111,245LOSS FROM OPERATIONS(248,076)(264,724)(149,867)(104,801)OTHER INCOME (EXPENSE)Interest expense(281,844)(262,359)(154,411)(66,761)Total(281,844)(262,359)(154,411)(66,761)NET LOSS$(529,920)(527,083)(304,278)(171,562)NET LOSS PER COMMON SHARE – Basic and diluted$(0.02)(0.04)$(0.01)$(0.01)COMMON SHARES OUTSTANDING – Basic and diluted28,959,14812,744,22530,972,35913,769,286
The accompanying notes are an integral part of these unaudited consolidated financial statements.


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FIRST TITAN CORP.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)

Six months ended
March 31,Three months ended
March 31,2015201420152014NET LOSS$(529,920)$(527,083)$(304,278)$(171,562)Change in fair value of available-for-sale securities2,93023,2202,91118,580Comprehensive loss$(526,990)$(503,863)$(301,367)$(152,982)
The accompanying notes are an integral part of these unaudited consolidated financial statements.


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FIRST TITAN CORP.
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT)
(UNAUDITED)

Common StockAdditional
Paid InAccumulated
Other
ComprehensiveAccumulatedTotal
EquitySharesAmountCapitalIncomeDeficit(Deficit)BALANCE, September 30, 201310,863,730$1,086$2,355,801$—$(2,111,605)$245,282Net loss————(1,245,170)(1,245,170)Other comprehensive income———17,379—17,379Comprehensive loss(1,227,791)Shares issued for conversion of notes payable14,756,4071,476588,780——590,256Discount on issuance of convertible note payable——276,285——276,285Imputed interest——11,533——11,533BALANCE, September 30, 201425,620,137$2,562$3,232,399$17,379$(3,356,775)$(104,435)Net loss————(529,920)(529,920)Other comprehensive income———2,930—2,930Comprehensive loss—(526,990)Shares issued for conversion of notes payable8,100,000810323,190——324,000Discount on issuance of convertible note payable——151,203——151,203Imputed interest——2,465——2,465BALANCE, March 31, 201533,720,137$3,372$3,709,257$20,309$(3,886,695)$(153,757)
The accompanying notes are an integral part of these unaudited consolidated financial statements.


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FIRST TITAN CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)

Six months ended March 31,20152014CASH FLOW FROM OPERATING ACTIVITIES:Net loss$(529,920)$(527,083)Adjustments to reconcile net loss to net cash used in operating activities:Depletion and accretion12,57831,156Amortization of discount on convertible note payable244,138227,065Imputed interest expense2,4654,600Impairment of oil and gas properties—35,000Changes in operating assets and liabilities:Accounts receivable and accrued revenue9,825(11,555)Accounts payable and accrued liabilities108,67574,865Accrued interest payable35,241—NET CASH USED IN OPERATING ACTIVITIES(116,998)(165,952)CASH FLOWS FROM INVESTING ACTIVITIESInvestment in oil and gas properties(892)(4,669)Investment in joint venture—(35,000)NET CASH USED IN INVESTING ACTIVITIES(892)(39,669)CASH FLOWS FROM FINANCING ACTIVITIESProceeds from advances119,810203,980NET CASH PROVIDED BY FINANCING ACTIVITIES119,810203,980NET INCREASE (DECREASE) IN CASH1,920(1,641)CASH, at the beginning of the period1,211127,748CASH, at the end of the period$3,131$126,107Supplemental Disclosures of Cash Flow Information:Cash paid during the period for:Interest$—$—Taxes$—$—Noncash investing and financing transaction:Refinance of advances into convertible notes payable$167,810$—Beneficial conversion feature of convertible note payable$151,203$—Conversion of convertible notes payable.$324,000$158,000Change in fair value of available-for-sale securities$2,930$23,220
The accompanying notes are an integral part of these unaudited consolidated financial statements.


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FIRST TITAN CORP.
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2015

Note 1. General Organization and Business

First Titan Corp., a Florida corporation, was incorporated on September 16, 2010. The Company’s year-end is September 30. The Company formed to design and manufacture both panel and engineered/tooled custom vacuum formed instrument panels and wiring harnesses, required for the monitoring of any final product that utilizes a gas or diesel engine source. The Company is currently primarily an oil and gas exploration company.

On September 16, 2011, First Titan Corporation created First Titan Energy, LLC to invest in oil and gas properties, greenfield projects and in the development of innovative exploration and production technologies.

On September 16, 2011, we formed a new subsidiary company, First Titan Technical, LLC, to commence business operations designing and marketing automotive electronics custom-designed for heavy-duty vehicles.

Note 2. Going Concern

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. For the six months ended March 31, 2015, the Company had a net loss of $529,920 and negative cash flow from operating activities of $116,998. As of March 31, 2015, the Company had negative working capital of $517,872. Management does not anticipate having positive cash flow from operations in the near future.

These factors raise a substantial doubt about the Company’s ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the possible inability of the Company to continue as a going concern.

The Company does not have the resources at this time to repay its credit and debt obligations, make any payments in the form of dividends to its shareholders or fully implement its business plan. Without additional capital, the Company will not be able to remain in business.

Management has plans to address the Company’s financial situation as follows:

In the near term, management plans to continue to focus on raising the funds necessary to implement the Company’s business plan. Management will continue to seek out debt financing to obtain the capital required to meet the Company’s financial obligations. There is no assurance, however, that lenders will continue to advance capital to the Company or that the new business operations will be profitable. The possibility of failure in obtaining additional funding and the potential inability to achieve profitability raise doubts about the Company’s ability to continue as a going concern.

In the long term, management believes that the Company’s projects and initiatives will be successful and will provide cash flow to the Company, which will be used to finance the Company’s future growth. However, there can be no assurances that the Company’s planned activities will be successful, or that the Company will ultimately attain profitability. The Company’s long-term viability depends on its ability to obtain adequate sources of debt or equity funding to meet current commitments and fund the continuation of its business operations, and the ability of the Company to achieve adequate profitability and cash flows from operations to sustain its operations.

Note 3. Summary of Significant Accounting Policies

Interim Financial Statements

The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, the consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and such adjustments are of a normal recurring nature. These consolidated financial statements should be read in conjunction with the consolidated financial statements for the fiscal year ended September 30, 2014 and notes thereto and other pertinent information contained in our Form 10-K the Company has filed with the Securities and Exchange Commission (the “SEC”).


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The results of operations for the six month period ended March 31, 2015 are not necessarily indicative of the results to be expected for the full fiscal year ending September 30, 2015.

Consolidated Financial Statements

The consolidated financial statements of the Company include the accounts of the Company and its wholly owned subsidiaries, First Titan Energy, LLC and First Titan Technical, LLC from the date of their formations. Significant intercompany transactions have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Credit Risk due to Certain Concentrations

We extend credit, primarily in the form of uncollateralized oil and gas sales through the operators of our working interests, to various companies in the oil and gas industry, which results in a concentration of credit risk. The concentration of credit risk may be affected by changes in economic or other conditions within our industry and may accordingly affect our overall credit risk. However, we believe that the risk of these unsecured receivables is mitigated by the nature of the companies to which we extend credit. For the six months ended March 31, 2015, two operators accounted for 83% and 17% of our oil and gas sales. Those operators account for 74% and 26% of accounts receivable as of March 31, 2015. We did not recognize any credit losses during the three months ended March 31, 2015. We have not recognized an allowance for doubtful accounts as of March 31, 2015.

Cash and Cash Equivalents

For the purpose of the financial statements, cash equivalents include all highly liquid investments with maturity of three months or less. Cash and cash equivalents were $3,131 and $1,211 at March 31, 2015 and September 30, 2014, respectively.

Oil and Gas Properties

The Company follows the full cost method of accounting for its oil and gas properties, whereby all costs incurred in connection with the acquisition, exploration for and development of petroleum and natural gas reserves are capitalized. Such costs include lease acquisition, geological and geophysical activities, rentals on non-producing leases, drilling, completing, and equipping of oil and gas wells and administrative costs directly attributable to those activities and asset retirement costs. Disposition of oil and gas properties are accounted for as a reduction of capitalized costs, with no gain or loss recognized unless such adjustment would significantly alter the relationship between capital costs and proved reserves of oil, in which case the gain or loss is recognized in the statement of operations.

Depletion of capitalized oil and gas properties and estimated future development costs, excluding unproved properties, are based on the units-of-production method based on proved reserves. The company recognized $11,718  and $30,630 of depletion during the six months ended March 31, 2015 and 2014, respectively. Net capitalized costs of oil and gas properties, less related deferred taxes, are limited to the lower of unamortized cost or the cost ceiling, defined as the sum of the present value of estimated future net revenues from proved reserves based on unescalated prices discounted at ten percent, plus the cost of properties not being amortized, if any, plus the lower of cost or estimated fair value of unproved properties included in the costs being amortized, if any, less related income taxes. As of March 31, 2015, the Company has oil and gas properties in the amount of $300,575, which are being excluded from amortization because they have not been evaluated to determine whether proved reserves are associated with those properties. Costs in excess of the present value of estimated future net revenues as discussed above are charged to impairment expense. The Company applies the full cost ceiling test on a quarterly basis on the date of the latest balance sheet presented.

Based on management’s review, 100% of the unproved oil and gas properties balance as of March 31, 2015 are expected to be added to amortization during the year ending September 30, 2015. The table below sets forth the cost of unproved properties excluded from the amortization base as of March 31, 2015 and notes the year in which the associated costs were incurred:


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Year of Acquisition2012201320142015TotalAcquisition costs$153,264$47,311$100,000$—$300,575Development costs—————Exploration costs—————Total$153,264$47,311$100,000$—$300,575
Asset retirement costs are recognized when the asset is placed in service, and are included in the amortization base and amortized over proved reserves using the units of production method. Asset retirement costs are estimated by management using existing regulatory requirements and anticipated future inflation rates.

Revenue Recognition

Sales of crude oil are recognized when the delivery to the purchaser has occurred and title has been transferred. This occurs when oil has been delivered to a pipeline or a tank lifting has occurred. Crude oil is priced on the delivery date based upon prevailing prices published by purchasers with certain adjustments related to oil quality and physical location.

Common Stock

The Company records common stock issuances when all of the legal requirements for the issuance of such common stock have been satisfied.

Income Taxes

The Company accounts for income taxes under ASC 740 Income Taxes. Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations. No deferred tax assets or liabilities were recognized as of March 31, 2015 or September 30, 2014.

Earnings (Loss) per Common Share

The Company computes basic and diluted earnings per common share amounts in accordance with ASC Topic 260, Earnings per Share. The basic earnings (loss) per common share are calculated by dividing the Company’s net income available to common shareholders by the weighted average number of common shares outstanding during the year. The diluted earnings (loss) per common share are calculated by dividing the Company’s net income (loss) available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted as of the first of the year for any potentially dilutive debt or equity. There are no dilutive shares outstanding for any periods reported.

In periods in which a net loss has been incurred, all potentially dilutive common shares are considered anti-dilutive and thus are excluded from the calculation. The Company’s convertible debt is considered anti-dilutive due to the Company’s net loss for the six months and three months ended March 31, 2015 and 2014. As a result, the Company did not have any potentially dilutive common shares for those periods. For the six months and three months ended March 31, 2015 and 2014, potentially issuable shares as a result of conversions of convertible notes payable have been excluded from the calculation of diluted earnings per share. At March 31, 2015, the Company had 36,680,971  potentially issuable shares upon the conversion of convertible notes payable and interest.

Financial Instruments

The Company’s balance sheet includes certain financial instruments. The carrying amounts of current assets and current liabilities approximate their fair value because of the relatively short period between the origination of these instruments and their expected realization.


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FASB Accounting Standards Codification (ASC) 820 Fair Value Measurements and Disclosures (ASC 820) defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:

Level 1 -Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.Level 2 -Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means.Level 3 -Inputs that are both significant to the fair value measurement and unobservable.
Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of March 31, 2015. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values due to the short-term nature of these instruments. These financial instruments include accounts receivable, other current assets, accounts payable, and accrued expenses. The fair value of the Company’s notes payable is estimated based on current rates that would be available for debt of similar terms that is not significantly different from its stated value.

The following table presents assets that were measured and recognized at fair value as of March 31, 2015 and September 30, 2014 and the periods then ended on a recurring and nonrecurring basis:

March 31, 2015

DescriptionLevel 1Level 2Level 3Total Realized LossAsset retirement obligation$—$—$20,702$—Available for sale securities55,309———Totals$55,309$—$20,702$—
September 30, 2014

DescriptionLevel 1Level 2Level 3Total Realized LossAsset retirement obligation$—$—$20,273$—Available for sale securities52,379———Totals$52,379$—$20,273$—
Beneficial Conversion Feature

Beneficial conversion feature is a non-detachable conversion feature that is in the money at the commitment date. The Company follows the guidance of ASC Subtopic 470-20 Debt with Conversion and Other Options to evaluate as to whether beneficial conversion feature exists. Pursuant to Section 470-20-30 an embedded beneficial conversion feature recognized separately under paragraph 470-20-25-5 shall be measured initially at its intrinsic value at the commitment date (see paragraphs 470-20-30-9 through 30-12) as the difference between the conversion price (see paragraph 470-20-30-5) and the fair value of the common stock or other securities into which the security is convertible, multiplied by the number of shares into which the security is convertible. When the Company issues an debt or equity security that is convertible into common stock at a discount from the fair value of the common stock at the date the debt or equity security counterparty is legally committed to purchase such a security (Commitment Date), a beneficial conversion charge is measured and recorded on the Commitment Date for the difference between the fair value of the Company’s common stock and the effective conversion price of the debt or equity security. If the intrinsic value of the beneficial conversion feature is greater than the proceeds allocated to the debt or equity security, the amount of the discount assigned to the beneficial conversion feature is limited to the amount of the proceeds allocated to the debt or equity security.


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Commitments and Contingencies

The Company follows subtopic 450-20 of the FASB Accounting Standards Codification to report accounting for contingencies. Certain conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. There are no known commitments or contingencies of March 31, 2015 and September 30, 2014.

Recently Issued Accounting Pronouncements

We have reviewed the FASB issued Accounting Standards Update (“ASU”) accounting pronouncements and interpretations thereof that have effectiveness dates during the periods reported and in future periods. The Company has carefully considered the new pronouncements that alter previous generally accepted accounting principles and does not believe that any new or modified principles will have a material impact on the corporation’s reported financial position or operations in the near term. The applicability of any standard is subject to the formal review of our financial management and certain standards are under consideration.

In May 2014, the FASB issued the FASB Accounting Standards Update No. 2014-09 “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”).

This guidance amends the existing FASB Accounting Standards Codification, creating a new Topic 606, Revenue from Contracts with Customer. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

To achieve that core principle, an entity should apply the following steps:

1.Identify the contract(s) with the customer2.Identify the performance obligations in the contract3.Determine the transaction price4.Allocate the transaction price to the performance obligations in the contract5.Recognize revenue when (or as) the entity satisfies performance obligations
The ASU also provides guidance on disclosures that should be provided to enable financial statement users to understand the nature, amount, timing, and uncertainty of revenue recognition and cash flows arising from contracts with customers. Qualitative and quantitative information is required about the following:

1.Contracts with customers – including revenue and impairments recognized, disaggregation of revenue, and information about contract balances and performance obligations (including the transaction price allocated to the remaining performance obligations)2.Significant judgments and changes in judgments – determining the timing of satisfaction of performance obligations (over time or at a point in time), and determining the transaction price and amounts allocated to performance obligations3.Assets recognized from the costs to obtain or fulfill a contract
ASU 2014-09 is effective for periods beginning after December 15, 2016, including interim reporting periods within that reporting period for all public entities. Early application is not permitted.

In June 2014, the FASB issued the FASB Accounting Standards Update No. 2014-12 “Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period” (“ASU 2014-12”).


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The amendments clarify the proper method of accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The Update requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered.

The amendments in this Update are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted.

In August 2014, the FASB issued the FASB Accounting Standards Update No. 2014-15“Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”).

In connection with preparing financial statements for each annual and interim reporting period, an entity’s management should evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued(or within one year after the date that the financial statements are available to be issuedwhen applicable). Management’s evaluation should be based on relevant conditions and events that are known and reasonably knowable at the date that the financial statements are issued(or at the date that the financial statements are available to be issuedwhen applicable). Substantial doubt about an entity’s ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due within one year after the date that the financial statements are issued (or available to be issued). The term probableis used consistently with its use in Topic 450, Contingencies.

When management identifies conditions or events that raise substantial doubt about an entity’s ability to continue as a going concern, management should consider whether its plans that are intended to mitigate those relevant conditions or events will alleviate the substantial doubt. The mitigating effect of management’s plans should be considered only to the extent that (1) it is probable that the plans will be effectively implemented and, if so, (2) it is probable that the plans will mitigate the conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern.

If conditions or events raise substantial doubt about an entity’s ability to continue as a going concern, but the substantial doubt is alleviated as a result of consideration of management’s plans, the entity should disclose information that enables users of the financial statements to understand all of the following (or refer to similar information disclosed elsewhere in the footnotes):

a.Principal conditions or events that raised substantial doubt about the entity’s ability to continue as a going concern (before consideration of management’s plans)b.Management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligationsc.Management’s plans that alleviated substantial doubt about the entity’s ability to continue as a going concern.
If conditions or events raise substantial doubt about an entity’s ability to continue as a going concern, and substantial doubt is not alleviated after consideration of management’s plans, an entity should include a statement in the footnotes indicating that there is substantial doubt about the entity’s ability to continue as a going concernwithin one year after the date that the financial statements are issued (or available to be issued). Additionally, the entity should disclose information that enables users of the financial statements to understand all of the following:

a.Principal conditions or events that raise substantial doubt about the entity’s ability to continue as a going concernb.Management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligationsc.Management’s plans that are intended to mitigate the conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern.

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The amendments in this Update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted.

Management does not believe that any recently issued, but not yet, effective accounting pronouncements, if adopted, would have a material effect on the accompanying consolidated financial statements.

Reclassification

Certain reclassifications have been made to the prior period financial statements to conform to the current period presentation.

Subsequent events

The Company follows the guidance in Section 855-10-50 of the FASB Accounting Standards Codification for the disclosure of subsequent events. The Company will evaluate subsequent events through the date when the financial statements were issued. Pursuant to ASU 2010-09 of the FASB Accounting Standards Codification, the Company as an SEC filer considers its financial statements issued when they are widely distributed to users, such as through filing them on EDGAR.

Note 4. Investments in Available for Sale Securities

On October 11, 2013, we entered into an agreement with Biofuels Power Corp. (“Biofuels Power”) to acquire the common stock of Biofuels Power. Under the terms of the agreement, we will contribute introductions and consulting with respect to marketing and introductions for business. In addition, we will fund up to $100,000 in monthly contributions of $20,000. These contributions are solely at the discretion of the Company. In exchange for the contributions, we will receive common stock of Biofuels Power Corp. at two-thirds of the market price of the common stock.

During the year ended September 30, 2014, we contributed $35,000 to the joint venture through the purchase of Biofuel Power’s common stock. As a result, we acquired 194,067 shares of Biofuel Power common stock. The shares were valued at $55,309 on March 31, 2015 based on the closing market price of the stock on that date. The shares of common stock owned by the Company represent less than five percent of the outstanding shares of Biofuel Power.

Note 5. Related Party Transactions

On March 14, 2014, the Company entered into a participation and operating agreement (the “Participation Agreement”) with SoHo Resource Holdings I, LLC (“SoHo”) for the joint acquisition and development of oil and gas leases in Bell, Milam, Falls, Robertson, Limestone, Freestone, Leon, Madison and Brazos counties in Texas (the “Target Area”). Under the terms of the Participation Agreement, the Company will pay $300 per acre for its proportionate share of acreage in the Target Area (the “Target Acreage”). The Target Acreage, which will not have more than a 25% royalty burden, will be acquired by SoHo, who will manage all operations under the Participation Agreement. Under the terms of the Participation Agreement, the Company will be invoiced for its share of the Target Acreage cost and will have thirty days to pay its proportionate cost for the Target Acreage. The Company will pay 33.33% of the drilling and completion costs associated with the wells drilled and/or recompleted on the Target Acreage in order to receive its 25.00% working interest in the wells until payout and 18.75% working interest after well payout. Under the terms of the Participation Agreement, the Company must remit its proportionate share of drilling and completion costs within fifteen days of notice by SoHo.

G. Jonathan Piña, our former CEO, owns 50% of the membership interest in SoHo; however, he does not have daily management oversight of SoHo. As of March 31, 2015, the Company had made $100,000 in payments to SoHo.

Note 6. Advances

During the six months ended March 31, 2015, Vista View Ventures, Inc. advanced $119,810 to the Company for working capital. These advances are non-interest bearing and payable on demand. During the same period, the Company refinanced $167,810 of the advances into convertible notes payable with Vista View Ventures, Inc. As of March 31, 2015 and September 30, 2014, advances in the amount of $0 and $48,000, respectively, are included in current liabilities on the consolidated balance sheets.

During the six months ended March 31, 2015, we recognized $2,465 of imputed interest expense on these advances.


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Note 7. Convertible Notes Payable

Convertible notes payable consisted of the following at March 31, 2015 and September 30, 2014:

March 31, 2015September 30, 2014Convertible note payable in the original principal amount of $528,434 due on September 30, 2015, bearing interest at 10% per year, convertible into common stock at a rate of $0.04 per share.$190,722$492,647Convertible note payable in the original principal amount of $276,825 due on June 30, 2016, bearing interest at 10% per year, convertible into common stock at a rate of $0.03 per share.276,285276,285Convertible note payable in the original principal amount of $118,620 due on December 31, 2016, bearing interest at 10% per year, convertible into common stock at a rate of $0.01 per share.118,620—Convertible note payable in the original principal amount of $49,190 due on March 31, 2017, bearing interest at 10% per year, convertible into common stock at a rate of $0.005 per share49,190—Total convertible notes payable$634,817$768,932Less: current portion of convertible notes payable(190,722)(492,647)Less: discount on noncurrent convertible notes payable(397,574)(267,574)Long-term convertible notes payable, net of discount$46,521$8,711
All principal along with accrued interest is payable on the maturity date. The notes are convertible into common stock at the option of the holder. The holder of the notes cannot convert the notes into shares of common stock if that conversion would result in the holder owning more than 4.9% of the outstanding stock of the Company.

Advances Refinanced into Convertible Promissory Notes

During the three months ended March 31, 2015, the Company has signed Convertible Promissory Notes that refinance non-interest bearing advances into convertible notes payable. The Convertible Promissory Notes bear interest at 10% per annum and are payable along with accrued interest. The Convertible Promissory Note and unpaid accrued interest are convertible into common stock at the option of the holder.

Date IssuedMaturity DateInterest
RateConversion
RateAmount
of NoteBeneficial Conversion FeatureDecember 31, 2014December 31, 201610%$0.01$118,620$102,013March 31, 2015March 31, 201710%0.00549,19049,190Total$167,810$151,203
The Company evaluated the terms of this note in accordance with ASC Topic No. 815 – 40, Derivatives and Hedging - Contracts in Entity’s Own Stock and determined that the underlying common stock is indexed to the Company’s common stock. The Company determined that the conversion feature did not meet the definition of a liability and therefore did not bifurcate the conversion feature and account for it as a separate derivative liability. The Company evaluated the conversion feature for a beneficial conversion feature. The effective conversion price was compared to the market price on the date of the notes and was deemed to be less than the market value of underlying common stock at the inception of the notes. Therefore, the Company recognized a beneficial conversion feature of $102,013 and $49,190 on December 31, 2014 and March 31, 2015, respectively. The beneficial conversion feature was recognized as an increase in additional paid-in capital and a discount to the Convertible Notes Payable. The discount to the Convertible Notes Payable is being amortized to interest expense over the life of the notes using the effective interest method.

The Company evaluated the application of ASC 470-50-40/55, Debtor’s Accounting for a Modification or Exchange of Debt Instrument as it applies to the note listed above and concluded that the revised terms constituted a debt modification rather than a debt extinguishment because the present value of the cash flow under the terms of each of the new instruments was less than 10% from the present value of the remaining cash flows under the terms of the original notes. No gain or loss on the modifications was required to be recognized.


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Conversions to Common Stock

During six months ended March 31, 2015, the holders of the Convertible Note Payable dated September 30, 2013 elected to convert principal and accrued interest in the amounts show below into share of common stock at a rate of $0.04 per share. On the conversion date, the unamortized discount related to the principal amount converted was immediately amortized to interest expense. No gain or loss was recognized on the conversions as they occurred within the terms of the agreement that provided for conversion.

DateAmount ConvertedNumber of Shares IssuedUnamortized DiscountOctober 15, 2014$48,0001,200,000$21,578December 3, 201448,0001,200,00017,121January 15, 201552,0001,300,00017,832January 30, 201556,0001,400,00019,095February 16, 201556,0001,400,00017,397March 16, 201564,0001,600,00015,690Total$324,0008,100,000$108,713
Note 8. Stockholders’ Equity

Conversion of shares

During six months ended March 31, 2015, the holders of our convertible notes elected to convert principal and interest into shares of common stock as detailed below:

DateAmount ConvertedNumber of Shares IssuedOctober 15, 2014$48,0001,200,000December 3, 201448,0001,200,000January 15, 201552,0001,300,000January 30, 201556,0001,400,000February 16, 201556,0001,400,000March 16, 201564,0001,600,000Total$324,0008,100,000
Imputed Interest

During six months ended March 31, 2015, the Company recognized imputed interest of $2,465 as an increase to shareholders’ equity.

Note 9. Subsequent Events

On April 1, 2015, the Company issued a convertible note payable to Eaton Central America, Inc. (“Eaton”) in the amount of $140,275 in exchange for Eaton paying off accounts payable in the same amount. On April 1, 2015, Eaton owned 4,711,250 shares of common stock of the Company which represented approximately 14% of our outstanding stock. The note bears interest at 10% per year and is convertible into common stock of the Company at the rate of $0.02 per share. All principal and accrued interest is payable on April 1, 2017.

On May 12, 2015, the holders of our convertible notes elected to convert principal and interest in the amount of $64,000 into 1,600,000 shares of common stock.


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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview

First Titan Corp., a Florida corporation, was incorporated on September 16, 2010. The Company’s year-end is September 30. The Company formed to design and manufacture both panel and engineered/tooled custom vacuum formed instrument panels and wiring harnesses, required for the monitoring of any final product that utilizes a gas or diesel engine source. The Company is currently primarily an oil and gas exploration company.

On September 16, 2011, First Titan Corporation created First Titan Energy, LLC to invest in oil and gas properties, greenfield projects and in the development of innovative exploration and production technologies.

On September 16, 2011, we formed a new subsidiary company, First Titan Technical, LLC, to commence business operations designing and marketing automotive electronics custom-designed for heavy-duty vehicles.

Critical Accounting Policies

We prepare our Consolidated financial statements in conformity with GAAP, which requires management to make certain estimates and apply judgments. We base our estimates and judgments on historical experience, current trends, and other factors that management believes to be important at the time the condensed Consolidated financial statements are prepared. On a regular basis, we review our accounting policies and how they are applied and disclosed in our condensed consolidated financial statements.

While we believe that the historical experience, current trends and other factors considered support the preparation of our condensed consolidated financial statements in conformity with GAAP, actual results could differ from our estimates and such differences could be material.

For a full description of our critical accounting policies, please refer to Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report for the year ended September 30, 2014 on Form 10-K.

Results of Operations

Six months ended March 31, 2015 compared to the six months ended March 31, 2014.

Oil and Gas Sales

We earned net revenue of $22,397 during the six months ended March 31, 2015, compared to $54,069 during the comparable period of the previous year. The decrease in revenue is due decreased production due to oil wells that are temporarily out of service.

Lease operating expense

We incurred lease operating expenses of $11,073 and $11,324 during the six months ended March 31, 2015 and 2014, respectively. The decrease in is due to wells that are temporarily out of service.

Depletion, depreciation & amortization

We incurred depletion expense of $11,718 during the six months ended March 31, 2015, and $30,630 for the comparable period of the previous year. The decrease in depletion is a lower depletion rate per barrel of oil equivalent (“BOE”) as a result of an increased estimate of reserves as of September 30, 2014 as compared to September 30, 2013.

General and Administrative Expenses

We recognized general and administrative expenses in the amount of $246,822 and $276,313 for the six months ended  March 31, 2015 and ended  2014, respectively. The decrease was due to decreased professional fees in 2014.


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Interest Expense

Interest expense increased  from $262,359 for the six months ended  March 31, 2014 to $281,844 for the six months ended  March 31, 2015. Interest expense for the six months ended  March 31, 2015 included amortization of discount on convertible notes payable in the amount of $244,138, compared to $227,065 for the comparable period of 2014. The remainder was due to interest of our convertible notes payable and imputed interest expense.

Net Loss

We incurred a net loss of $529,920 for the six months ended  March 31, 2015 as compared to $527,083 for the comparable period of 2014. The increase  in the net loss was the result of the decreased general and administrative expenses discussed above.

Three months ended March 31, 2015 compared to the three months ended March 31, 2014.

Oil and Gas Sales

We earned net revenue of $3,236 during the three months ended March 31, 2015, compared to $21,859 during the comparable period of the previous year. The decrease in revenue is due decreased production due to oil wells that are temporarily out of service.

Lease operating expense

We incurred lease operating expenses of $5,347 and $7,507 during the three months ended March 31, 2015 and 2014, respectively. The decrease in is due to wells that are temporarily out of service.

Depletion, depreciation & amortization

We incurred depletion expense of $4,932 during the three months ended March 31, 2015, and $7,730 for the comparable period of the previous year. The decrease in depletion is a lower depletion rate per barrel of oil equivalent (“BOE”) as a result of an increased estimate of reserves as of September 30, 2014 as compared to September 30, 2013.

General and Administrative Expenses

We recognized general and administrative expenses in the amount of $142,396 and $111,245 for the three months ended  March 31, 2015 and ended  2014, respectively. The increase was due to decreased professional fees in 2014.

Interest Expense

Interest expense increased from $66,761 for the three months ended  March 31, 2014 to $154,411 for the three months ended  March 31, 2015. Interest expense for the three months ended March 31, 2015 included amortization of discount on convertible notes payable in the amount of $057,607, compared to $0148,198 for the comparable period of 2014. The remainder was due to interest on convertible notes payable and imputed interest expense.

Net Loss

We incurred a net loss of $304,278 for the three months ended  March 31, 2015 as compared to $171,562 for the comparable period of 2014. The increase  in the net loss was the result of the decreased general and administrative expenses discussed above.

Liquidity and Capital Resources

At March 31, 2015, we had cash on hand of $3,131. The company has negative working capital of $517,872 . Net cash used in operating activities for the six months ended March 31, 2015 was $116,998. Cash on hand is adequate to fund our operations for less than one month. We do not expect to achieve positive cash flow from operating activities in the near future. We will require additional cash in order to implement our business plan. There is no guarantee that we will be able to attain fund when we need them or that funds will be available on terms that are acceptable to the Company. We have no material commitments for capital expenditures as of March 31, 2015.


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Additional Financing

Additional financing is required to continue operations. Although actively searching for available capital, the Company does not have any current arrangements for additional outside sources of financing and cannot provide any assurance that such financing will be available.

Off Balance Sheet Arrangements

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable to a smaller reporting company.

ITEM 4. CONTROLS AND PROCEDURES

Management’s Report on Internal Control over Financial Reporting

We carried out an evaluation, under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, of the effectiveness of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of March 31, 2015. Based upon that evaluation, our principal executive officer and principal financial officer concluded that, as of March 31, 2015, our disclosure controls and procedures were not effective to ensure that information required to be disclosed in reports filed by us under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the required time periods and is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

1.As of March 31, 2015, we did not maintain effective controls over the control environment. Specifically we have not developed and effectively communicated to our employees our accounting policies and procedures. This has resulted in inconsistent practices. Further, the Board of Directors does not currently have any independent members and no director qualifies as an audit committee financial expert as defined in Item 407(d)(5)(ii) of Regulation S-K. Since these entity level programs have a pervasive effect across the organization, management has determined that these circumstances constitute a material weakness.2.As of March 31, 2015, we did not maintain effective controls over financial statement disclosure. Specifically, controls were not designed and in place to ensure that all disclosures required were originally addressed in our financial statements. Accordingly, management has determined that this control deficiency constitutes a material weakness.
Our management, including our principal executive officer and principal financial officer, who is the same person, does not expect that our disclosure controls and procedures or our internal controls will prevent all error or fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs. Due to the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected.

Change in Internal Controls Over Financial Reporting

There was no change in our internal controls over financial reporting that occurred during the period covered by this report, which has materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting.


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PART II — OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We know of no material, active or pending legal proceedings against us, nor are we involved as a plaintiff in any material proceedings or pending litigation. There are no proceedings in which any of our directors, officers or affiliates, or any registered beneficial shareholder are an adverse party or has a material interest adverse to us.

ITEM 1A. RISK FACTORS

Not applicable to a smaller reporting company.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

There were no sales of unregistered equity securities during the six months ended March 31, 2015.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

The Company has not defaulted upon senior securities.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable to the Company.

ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS

3.1Articles of Incorporation (1)3.2Bylaws (1)21Subsidiaries of the Registrant (2)31.1Rule 13(a)-14(a)/15(d)-14(a) Certification of principal executive officer and principal financial and account officer. (2)32.1Section 1350 Certification of principal executive officer and principal financial accounting officer. (2)101XBRL data files of Financial Statement and Notes contained in this Quarterly Report on Form 10-Q. (3)
(1)Incorporated by reference to our Form S-1 filed with the Securities and Exchange Commission on November 3, 2010.(2)Filed or furnished herewith.(3)To be submitted by amendment.

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.

First Titan Corp.Date: May 15, 2015BY: /s/ Sydney JimSydney JimChief Executive Officer, President, Secretary, Treasurer, Principal Executive Officer, Principal Finance and Accounting Officer and Sole Director

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