UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549



FORM 10-Q

|(Mark one)
|----------
|          
|[x]       

For the Quarterly Period Ended February
29, 2016

OR

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

For the transition period from _________________to

|                               
|-------------------------------
|Commission File Number: 0-54236
|                               

JA ENERGY

(Exact name of registrant as specified
in its charter)

|Nevada                            |  | 27-3349143         
|--------------------------------- |  | -------------------
|(State or Other Jurisdiction      |  | (I.R.S. Employer   
|of Incorporation or Organization) |  | Identification No.)



|8250 W. Charleston Blvd, Suite 110, Las Vegas, NV |  | 89117     
|------------------------------------------------- |  | ----------
|(Address of principal executive offices)          |  | (Zip Code)

(702) 544-1902(Registrant’s telephone number, including area code)



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 [X] 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 (§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 [ ] No [ ] Not Applicable



Indicate by check mark whether the registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.

|Large accelerated filer [  ] | Accelerated filer [  ] | Non-accelerated filer [  ] | Smaller reporting company [X]
|---------------------------- | ---------------------- | -------------------------- | -----------------------------



Indicate
by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). YesoNo [X]



APPLICABLE ONLY TO REGISTRANTS INVOLVED
IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:



Indicate by check mark whether the registrant
has filed all documents and reports required to be filed by Section S 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent
to the distribution of securities under a plan confirmed by a court. Yes [ ] No [X]



APPLICABLE ONLY TO CORPORATE ISSUERS



Indicate the number of shares outstanding of each of the issuer’s
classes of common stock, as of the latest practicable date.

As of April 14, 2016, the registrant’s outstanding common
stock consisted of 217,046 shares, $0.001 par value.









Table of Contents

JA Energy

Index to Form 10-Q

For the Quarterly Period Ended February
29, 2016



|PART I - FINANCIAL INFORMATION                                                                  | 3          
|----------------------------------------------------------------------------------------------- | -----------
|Item I. Financial Statements                                                                    | 3          
|Balance Sheets (unaudited)
        Statements of Operations (unaudited)                         | 3
        4
|Statements of Cash Flows (unaudited)                                                            | 5          
|Notes to Financial Statements                                                                   | 6          
|Item 2. - Management's Discussion and Analysis of Financial Condition and Results of Operations | 13         
|Results of Operations                                                                           | 15         
|Item 3. Quantitative and Qualitative Disclosures about Market Risk                              | 17         
|Item 4T. Controls and Procedures                                                                | 17         
|PART II. OTHER INFORMATION                                                                      | 20         
|Item 1 -- Legal Proceedings                                                                     | 20         
|Item 1A - Risk Factors                                                                          | 20         
|Item 2 -- Unregistered Sales of Equity Securities and Use of Proceeds                           | 20         
|Item 3 -- Defaults Upon Senior Securities                                                       | 20         
|Item 4 -- Submission of Matters to a Vote of Security Holders                                   | 20         
|Item 5 -- Other Information                                                                     | 20         
|Item 6 – Exhibits                                                                               | 21         
|SIGNATURES                                                                                      | 22         









































2









PART I - FINANCIAL INFORMATION



JA Energy

Balance Sheets

(Unaudited)

|                                                     |   | February 29, |  |   | August 31, 
|---------------------------------------------------- | - | ------------ |  | - | -----------
|                                                     |   | 2016         |  |   | 2015       
|ASSETS                                               |   |              |  |   |            
|Current assets                                       |   |              |  |   |            
|Prepaid expenses                                     | $ | 3,000        |  |   | -          
|Total current assets                                 |   | 3,000        |  |   | -          
|                                                     |   |              |  |   |            
|Total assets                                         | $ | 3,000        |  | $ | -          
|                                                     |   |              |  |   |            
|LIABILITIES AND STOCKHOLDERS' DEFICIT                |   |              |  |   |            
|Current liabilities                                  |   |              |  |   |            
|Accounts payable and accrued liabilities             | $ | 84,306       |  | $ | 68,275     
|Advances from stockholders                           |   | 26,296       |  |   | 14,046     
|Bank overdraft                                       |   | 1,202        |  |   | 1,202      
|Note payable - related party                         |   | 50,000       |  |   | 50,000     
|Total current liabilities                            |   | 161,804      |  |   | 133,523    
|Total liabilities                                    | $ | 161,804      |  | $ | 133,523    
|                                                     |   |              |  |   |            
|Stockholders' deficit                                |   |              |  |   |            
|Preferred stock, $0.001 par value,  5,000,000 shares |   |              |  |   |            
|authorized, 1,000,000 shares issued and              |   |              |  |   |            
|and outstanding as of  February 29, 2016             |   |              |  |   |            
|and August 31, 2015                                  |   | 1,000        |  |   | 1,000      
|Common stock, $0.001 par value,                      |   |              |  |   |            
|70,000,000 shares authorized, 217,046                |   |              |  |   |            
|shares issued and outstanding as of                  |   |              |  |   |            
|February 29, 2016 and August 31, 2015                |   | 217          |  |   | 217        
|Additional paid-in capital                           |   | 4,315,919    |  |   | 4,315,919  
|Stock subscription payable                           |   | 90,521       |  |   | 90,521     
|Accumulated deficit                                  |   | (4,566,461)  |  |   | (4,541,180)
|Total stockholders' deficit                          |   | (158,804)    |  |   | (133,523)  
|Total liabilities and stockholders' deficit          | $ | 3,000        |  | $ | -          



The accompanying notes are an integral
part of these consolidated financial statements.





3

JA Energy

Statements of Operations

(Unaudited)



|                                                                             |         | For the three months |         | For the three months |         | For the six months |         | For the six months
|---------------------------------------------------------------------------- | ------- | -------------------- | ------- | -------------------- | ------- | ------------------ | ------- | ------------------
|                                                                             |         | ended                |         | ended                |         | ended              |         | ended             
|                                                                             |         | February 29, 2016    |         | February 28, 2015    |         | February 29, 2016  |         | February 28, 2015 
|Operating expenses:                                                          |         |                      |         |                      |         |                    |         |                   
|General and administrative                                                   | $       | 12,025               | $       | 10,244               | $       | 25,281             | $       | 29,873            
|Total operating expenses                                                     |         | 12,025               |         | 10,244               |         | 25,281             |         | 29,873            
|Other income (expense):                                                      |         |                      |         |                      |         |                    |         |                   
|Forgiveness of accounts payable                                              |         | -                    |         | -                    |         | -                  |         | 38,186            
|Transfer of assets and liabilities to
        spin-off company (Note 4)      |         |                      |         |                      |         |                    |         |                   
|                                                                             | -       |                      | -       |                      | -       |                    | 618,870
|Interest expense                                                             |         | -                    |         | -                    |         | -                  |         | (5,833)           
|Total other income (expense)                                                 |         | -                    |         | -                    |         | -                  |         | 651,223           
|Net income (loss)                                                            | $       | (12,025)             | $       | (10,244)             | $       | (25,281)           | $       | 621,350           
|                                                                             |         |                      |         |                      |         |                    |         |                   
|Basic income (loss) per share                                                | $       | (0.06)               | $       | (0.05)               | $       | (0.12)             | $       | 2.86              
|Diluted income (loss) per share                                              | $       | (0.06)               | $       | (0.05)               | $       | (0.12)             | $       | 2.86              
|                                                                             |         |                      |         |                      |         |                    |         |                   
|Weighted average number of common
        shares outstanding - basic         |         |                      |         |                      |         |                    |         |                   
|                                                                             | 217,046 |                      | 217,046 |                      | 217,046 |                    | 217,046
|                                                                             |         |                      |         |                      |         |                    |         |                   
|Weighted average number of common
        shares outstanding - fully diluted |         |                      |         |                      |         |                    |         |                   
|                                                                             | 217,046 |                      | 217,046 |                      | 217,046 |                    | 217,046



The accompanying notes are an integral
part of these consolidated financial statements.



4







JA Energy

Statements of Cash Flows

(Unaudited)



|                                                                                            |   | For the six months |   | For the six months
|------------------------------------------------------------------------------------------- | - | ------------------ | - | ------------------
|                                                                                            |   | ended              |   | ended             
|                                                                                            |   | February 29, 2016  |   | February 28, 2015 
|OPERATING ACTIVITIES                                                                        |   |                    |   |                   
|Net income (loss)                                                                           | $ | (25,281)           | $ | 621,349           
|Adjustments to reconcile net loss from operations to net cash used by operating activities: |   |                    |   |                   
|                                                                                            |   |                    |  
|Write-off of intangible assets                                                              |   |                    |   |                   
|spin-off, net (note 4)                                                                      |   | -                  |   | (613,036)         
|Forgiveness of accounts payable                                                             |   | -                  |   | (29,156)          
|Depreciation expense                                                                        |   | -                  |   | 599               
|Changes in operating assets and liabilities:                                                |   |                    |   |                   
|Prepaid expenses                                                                            |   | (3,000)            |   |                   
|Accounts payable and accrued expense                                                        |   | 16,031             |   | 10,244            
|Net cash used by operating activities                                                       |   | (12,250)           |   | (10,000)          
|                                                                                            |   |                    |   |                   
|FINANCING ACTIVITIES                                                                        |   |                    |   |                   
|Proceeds from stockholder advances                                                          |   | 12,250             |   | 10,000            
|Net cash provided by financing activities                                                   |   | 12,250             |   | 10,000            
|                                                                                            |   |                    |   |                   
|NET CHANGE IN CASH                                                                          |   | -                  |   | -                 
|                                                                                            |   |                    |   |                   
|CASH AND CASH EQUIVALENTS -                                                                 |   |                    |   |                   
|BEGINNING OF PERIOD                                                                         |   | -                  |   | -                 
|END OF PERIOD                                                                               | $ | -                  | $ | -                 
|                                                                                            |   |                    |   |                   



The accompanying notes are an integral
part of these consolidated financial statements.





5









Notes to Financial Statements

(Unaudited)



NOTE 1 – ABOUT THE COMPANY



The Company was organized August 26, 2010 (Date
of Inception) under the laws of the State of Nevada, as JA Energy. The Company was incorporated as a subsidiary of Reshoot Production
Company, a Nevada corporation. Reshoot Production Company was incorporated October 31, 2007, and, at the time of spin off was listed
on the Over-the- Counter Bulletin Board.



JA Energy was working to develop a suite of
products with a view of finding global energy solutions. Management believed non-oil-producing, agricultural-based countries are
spending large amounts of their gross domestic product to pay for fossil fuel to power their economies, and ethanol from sugar
beets or sugar cane to provide the electricity to replace diesel generation. With the base load power augmented by the photovoltaic
and CSP products, countries will be able to provide some of their energy needs from within and lessen their imports.



On September 30, 2014, the Board of Directors passed a resolution
to form a new company called Peak Energy Holdings (Peak) with each shareholder in the Company receiving one share of common of
Peak for each share of common stock in the Company and one share of preferred stock of Peak for each share of preferred share of
the Company.



On November 9, 2014, JA Energy (the "Company")
entered into an Irrevocable Asset and Liability Exchange Agreement. The Agreement deals with the dividend spin-off of JA Energy's
wholly owned subsidiary, Peak Energy Holdings. At the JA Energy annual shareholder meeting, held on September 30, 2014, the shareholders
of the Company approved the transfer all of the assets and liabilities of the Parent into a wholly own subsidiary. The subsidiary
will have the same characteristics and number of authorized and issued shares as the Parent, whereby all Preferred and Common shareholders
in the Parent will receive a pro-rata stock dividend in the subsidiary that is equal to the number of shares they owned in the
Parent on a one-for-one (1:1) basis. The major shareholders of the Company, entered into a separate agreement with regards to the
dividend spin-off. They agreed to and put into effect the following points upon the dividend spin-off of the Peak Energy Holdings
from JA Energy:



| | · | Mr. James Lusk [the largest debtor of JA Energy] transferred all assets
and liabilities, as of March 31, 2014, from JA Energy to the Subsidiary to the extent legally assignable.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Two of the major shareholder in JA Energy transferred all ownership
of their Preferred and Common stock held in the subsidiary to Mr. James Lusk.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Mr. James Lusk transferred all of the common stock ownership he owned
and controlled in JA Energy to the major shareholders.
| | - | ----------------------------------------------------------------------------------------------------------------------------



| | · | Mr. James Lusk provided a notarized signed letter addressed to the
Company and auditor that he agreed to transfer all assets and liabilities, as of March 31, 2014, from the Parent to the Subsidiary
to the extent legally assignable.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



6



| | · | JA Energy warranted that any new liabilities incurred on the books
of JA Energy after April 1, 2014 would not be transferred to the subsidiary.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------





| | · | JA Energy represented and warranted that there were no liabilities,
actual or contingent, created in the subsidiary. Prior to the effective time of the transfer, the subsidiary would have no assets
nor liabilities.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | JA Energy warranted that since April 1, 2014, with the exception of
the Preferred voting shares, no other shares were issued, awarded or pledged to be issued. The number of common shares issued and
outstanding in JA Energy at March 31, 2014 were the same number of the shares issued at the date of transfer.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Upon the completion of the transfer of assets and liabilities shares
were exchanged and the subsidiary was divested from JA Energy and now operates independent as a separate entity of JA Energy with
its own management;
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Mr. James Lusk took control of the Peak Energy Holdings, independent
of JA Energy.
| | - | ----------------------------------------------------------------------------------



| | · | All Parties indemnified and held harmless the other Parties from and
against any and all losses, damages, liabilities, resulting or arising from these transactions.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------



The Agreement did not affect any other shareholders in the
Company who maintained their share ownership of JA Energy, and have pro-rata ownership in Peak Energy Holdings following the dividend
spin-off.



As a result of the foregoing transaction, the Company currently
has no assets, minimal liabilities and no employees and is now considered a “Shell Company” Securities Act Rule 405
and Exchange Act Rule 12b-2. Under the acts a Shell Company is define as a company, other than an asset-backed issuer, with no
or nominal operations; and no or nominal assets.



Certain notes and other information are condensed or omitted
from the interim financial statements presented in this Quarterly Report on Form 10-Q. Therefore, these financial statements should
be read in conjunction with the Company's Annual Report on Form 10-K for the fiscal year ended August 31, 2015 as filed with the
Securities and Exchange Commission on December 15, 2015.



In the opinion of the Company's management, the accompanying
unaudited consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary
to present fairly the Company's financial position at February 29, 2016 and its results of operations for the three and six months
ended February 29, 2016 and February 28, 2015. The results of operations for such periods are not necessarily indicative of results
to be expected for the full fiscal year.











7









NOTE 2 - GOING CONCERN



These financial statements have been prepared in accordance
with generally accepted accounting principles applicable to a going concern which contemplates the realization of assets and the
satisfaction of liabilities and commitments in the normal course of business. The Company has an accumulated deficit since inception
of $4,566,461. The Company has not generated any meaningful revenues to date, and its ability to continue as a going concern is
contingent upon the successful completion of additional financing arrangements and its ability to achieve and maintain profitable
operations. Management plans to raise equity capital to finance the operating and capital requirements of the Company. Amounts
raised will be used for further development of the Company's products, to provide financing for marketing and promotion and for
other working capital purposes. While the Company is putting forth its best efforts to achieve the above plans, there is no assurance
that any such activity will generate funds that will be available for operations.



These conditions raise substantial doubt about the Company's
ability to continue as a going concern. These financial statements do not include any adjustments relating to the recoverability
and classification of recorded asset amounts, or amounts and classification of liabilities that might result from this uncertainty.





NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES



The relevant accounting policies are listed below.



Basis of Accounting

The basis is United States generally accepted accounting
principles.



Earnings per Share.

The basic earnings (loss) per share is calculated by dividing
the Company's net income (loss) available to common shareholders by the weighted average number of common shares issued and outstanding
during the year. The diluted earnings (loss) per share is 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.



Cash and Cash Equivalents

The Company considers all short-term investments with a maturity
of three months or less at the date of purchase to be cash and cash equivalents.



Use of Estimates

In preparing financial statements in conformity with generally
accepted accounting principles, management is required to make estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and
expenses during the reported period. Actual results could differ from those estimates.







8









Advertising

Advertising costs are expensed when incurred. The Company
has not incurred any advertising expenses since inception.



Income Taxes

The provision for income taxes is the total of the current
taxes payable and the net of the change in the deferred income taxes. Provision is made for the deferred income taxes where differences
exist between the period in which transactions affect current taxable income and the period in which they enter into the determination
of net income in the financial statements.



Revenue recognition

The Company recognizes revenue from product sales once all
of the following criteria for revenue recognition have been met: pervasive evidence that an agreement exists; the services have
been rendered; the fee is fixed and determinable and not subject to refund or adjustment; and collection of the amount due is reasonably
assured.



Cost of product sold

The types of costs included in cost of product sold are raw
materials, packaging materials, manufacturing costs, plant administrative support and overheads, and freight and warehouse costs.



Year end

The Company's fiscal year-end is August 31.



Reverse Stock Split

All references to numbers of shares of
our common stock and per-share information in the accompanying financial statements have been adjusted retroactively to reflect
the Company’s 200 for 1 reverse stock split effected on January 20, 2016. The par value was not adjusted as a result of the
reverse stock split.





Recent Accounting Pronouncements

The Company’s management has evaluated recently issued
accounting pronouncements through February 29, 2016 and concluded that they will not have a material effect on the financial statements
as of February 29, 2016. However, for purpose of financial reporting the Company has elected early adoption of Accounting Standards
Update No. 2014-10, issued June 10, 2014, which removes the definition of a development stage entity from ASC Topic 915 and all
distinction between development stage entities and other reporting entities under GAAP. This guidance goes into effect for annual
and interim periods beginning after December 15, 2014; however, we had the option of adopting the guidance early which we chose
to do as of August 30, 2014. As a result, we no longer report financial results showing inception to date.



NOTE 4 – TRANSFER OF ASSETS AND LIABILITIES TO
PEAK ENERGY HOLDINGS



In accordance with the Agreement described in Note 1 to these
financial statements, during the six months ended February 28, 2015 certain assets with a book value of $9,340, net of depreciation,
and liabilities totaling $628,210 were transferred to Peak Energy Holdings. This transfer resulted in other income of $618,870.



9









NOTE 5 - STOCKHOLDERS’ DEFICIT



The Company is authorized to issue 70,000,000
shares of its $0.001 par value common stock and 5,000,000 shares of its $0.001 par value preferred stock.



NOTE 6 - RELATED PARTY TRANSACTIONS



The former Chief Executive Officer advanced
to the Company $778, net of repayments, during the quarter ended February 28, 2015.



On October 15, 2014 a total amount of
$617,475 owed to the former CEO including was transferred to Peak Energy Holding, in accordance with the agreement described in
Note 1 to these financial statements. Included in this amount were notes payable and accrued interest of 605,980, unpaid consulting
fees of $9,550 and advances of $1,945.



As of February 29, 2016 the company
owed a stockholder $26,296 for payments made on behalf of the company.





NOTE 7 - PROVISION FOR INCOME TAXES



The Company accounts for income taxes
under FASB Accounting Standard Codification ASC 740 “Income Taxes”. ASC 740 requires use of the liability method. ASC
740 provides that deferred tax assets and liabilities are recorded based on the differences between the tax bases of assets and
liabilities and their carrying amounts for financial reporting purposes, referred to as temporary differences. Deferred tax assets
and liabilities at the end of each period are determined using the currently enacted tax rates applied to taxable income in the
periods in which the deferred tax assets and liabilities are expected to be settled or realized.



As of February 29, 2016, the Company
had net operating loss carry forwards of $1,033,947 that may be available to reduce future years’ taxable income through
2034. 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 carry-forwards. Net operation losses will begin to expire in 2031.



Components of net deferred tax assets, including a valuation
allowance, are as follows February 29, 2016 and February 28, 2015:



|                                  | February 29, 2016                 | February 28, 2015               
|--------------------------------- | --------------------------------- | --------------------------------
|Deferred tax assets:              |                                   |                                 
|Net operating loss carry forward: | $              1,033,947          | $               1,026,714       
|                                  |                                   |                                 
|Total deferred tax assets         | 361,881                           | 259,350                         
|Less:  valuation allowance        | (361,881)                         | (359,350)                       
|Net deferred tax assets           | $                               - | $                              -



10



The valuation allowance for deferred
tax assets as of February 29, 2016 was $361,881, as compared to $359,350 as of February 28, 2015. In assessing the recovery of
the deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets
will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income
in the periods in which those temporary differences become deductible. Management considers the scheduled reversals of future deferred
tax assets, projected future taxable income, and tax planning strategies in making this assessment. As a result, management determined
it was more likely than not the deferred tax assets would not be realized as of February 29, 2016 and February 28, 2015.



The provision for income taxes differs
from the amount computed by applying the statutory federal income tax rate to income before provision for income taxes. The sources
and tax effects of the differences are as follows:



|U.S federal statutory rate |  | (35.0%)
|-------------------------- |  | -------
|Valuation reserve          |  | 35.0%  
|Total                      |  | -%     



NOTE 8 - NOTES PAYABLE – Related
Party



On April 4, 2014, the Company issued
a One-year Promissory Note (“the Note”) in the amount of $50,000 to a stockholder. The Note bears interest at 12% percent
per annum with interest due each month. In the event that interest is not paid within three days from the time it is due the Note
would be considered in default and would be fully due and payable. Additional consideration for the Note included the Chief Executive
Officer of the Company giving the note holder his voting proxy for all of the shares he held with the exception of voting on a
tender offer or a sale of the Company’s assets. As of May 8, 2014, the Note was in default.



On May 5, 2014, the Company issued a
second One-Year Promissory Note (“Second Note) in the amount of $20,000 to the same stockholder noted above. The Second Note
was issued with the restriction that the funds be used specifically to pay the Company’s Patent Counsel for fee to finalize
certain patent filings and was secured by all patents, and patent applications held by the Company. The Second Note bears interest
at 12% percent per annum with interest due each month. In the event that interest in not paid within three days from the time it
is due the Second Note would be considered in default and would be fully due and payable.



On June 6, 2014, the Company received
notices that it was in default of the two Promissory Notes described above. Rather than default on the Notes the Company issued
1,000,000 shares of $0.001 par value Voting Preferred Stock in exchange for Notes Payable totaling $20,000 plus forgiveness of
interest totaling $1,900. Additionally, the Company agreed to designate with the State of Nevada Secretary of State that each share
of preferred carries the voting power of 50 common shares. Finally, the shareholder has agreed to cancel the shares upon full payment
of the $50,000 Note, without accrued interest and the sale of five units of the MDU.





11









NOTE 9 – OTHER INCOME AND EXPENSE



As described in Note 4, during the six
months ended February 28, 2015 an asset with a book value of $9,340, net of depreciation, and liabilities totaling $628,210 were
transferred to Peak Energy Holdings. This transfer resulted in other income of $618,870.



On October 27, 2014 the Company entered
into an agreement with two former employees, one of whom was a former director of the Company, whereby all parties agreed to release
and hold harmless from any liabilities that existed prior to the date of the agreement. The result of this agreement was the forgiveness
by the former employees of $38,186 in compensation owed to the employees.



NOTE 10 – REVERSE STOCK SPLIT



On January 20, 2016, the Company effected
a 1-for-200 reverse stock split of its outstanding common stock, par value $0.001 per share (the "Reverse Stock Split").
As a result of the Reverse Stock Split, each two hundred shares of the Company’s Common Stock issued and outstanding immediately
prior to the Reverse Stock Split were automatically combined into and became one share of common stock. No fractional shares were
issued as a result of the Reverse Stock Split and any stockholder who otherwise would have been entitled to receive fractional
shares and additional share. Also, as a result of the Reverse Stock Split, the per share exercise price of, and the number of shares
of common stock underlying our warrants outstanding immediately prior to the Reverse Stock Split were automatically proportionally
adjusted based on the 1-for-200 split ratio in accordance with the terms of such warrants. Share and per-share amounts of the Company’s
and warrants included herein have been adjusted to give effect to the Reverse Stock Split. The Reverse Stock Split did not alter
the par value of the Common Stock, $0.001 per share, or modify any voting rights or other terms of the common stock.



NOTE 11 – EXCERCISABLE WARRANTS



On March 1, 2011, the Company received
$15,000 as a loan from a non-related third party. The loan was unsecured, payable on demand and non-interest bearing. Effective
March 19, 2013, the debt was exchanged for warrants to purchase up to 6,000 shares of common $.001 par value stock at $200 per
share after March 19, 2014 and before March 19, 2017. For Financial reporting, the exchange was recorded as a capital contribution
of $890,000, and warrants expense of $875,000 at the time of the exchange; common stock is not issued until the warrants are exercised,
fully diluted earnings (loss) per share does include those exercisable by warrant as the effect is anti-dilutive.



























12











Item 2. - Management's Discussion and Analysis of Financial
Condition and Results of Operations



Forward-Looking Information



This Quarterly Report on Form 10-Q contains
forward-looking statements. When used in this Quarterly Report on Form 10-Q, the words "anticipate," "believe,"
"estimate," "will," "plan," "seeks," "intend," and "expect" and similar
expressions identify forward-looking statements. Although we believe that our plans, intentions, and expectations reflected in
any forward-looking statements are reasonable, these plans, intentions, or expectations may not be achieved. Our actual results,
performance, or achievements could differ materially from those contemplated, expressed, or implied, by the forward-looking statements
contained in this Quarterly Report on Form 10-Q. Important factors that could cause actual results to differ materially from our
forward-looking statements are set forth in this Quarterly Report on Form 10-Q. All forward-looking statements attributable to
us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements set forth in this Quarterly
Report on Form 10-Q. Except as required by federal securities laws, we are under no obligation to update any forward-looking statement,
whether as a result of new information, future events, or otherwise.



Critical Accounting Policies



There have been no material changes
to our critical accounting policies and estimates from the information provided in Item 7, "Management's Discussion and Analysis
of Financial Condition and Results of Operations", included in our Annual Report on Form 10-K for the fiscal year ended August
31, 2015 filed with the Securities and Exchange Commission on December 15, 2015.



Corporate History



The Company was organized August 26,
2010 (Date of Inception) under the laws of the State of Nevada, as JA Energy. The Company was incorporated as a subsidiary of Reshoot
Production Company, a Nevada corporation. Reshoot Production Company was incorporated October 31, 2007, and, at the time of spin
off was listed on the Over the Counter Bulletin Board. The Company is an operating entity engage in product development and development
of intellectual property.



Business Overview



JA Energy was working to develop a suite of products with
a view of finding global energy solutions. Management believed non-oil-producing, agricultural-based countries are spending large
amounts of their gross domestic product to pay for fossil fuel to power their economies, and ethanol from sugar beets or sugar
cane to provide the electricity to replace diesel generation. With the base load power augmented by the photovoltaic and CSP products,
countries will be able to provide some of their energy needs from within and lessen their imports.



On September 30, 2014, the Board of Directors passed a resolution
to form a new company called Peak Energy Holdings (Peak) with each shareholder in the Company receiving one share of common of
Peak for each share of common stock in the Company and one share of preferred stock of Peak for each share of preferred share of
the Company.



13











On November 9, 2014, JA Energy (the "Company")
entered into an Irrevocable Asset and Liability Exchange Agreement. The Agreement deals with the dividend spin-off of JA Energy's
wholly owned subsidiary, Peak Energy Holdings. At the JA Energy annual shareholder meeting, held on September 30, 2014, the shareholders
of the Company approved the transfer all of the assets and liabilities of the Parent into a wholly own subsidiary. The subsidiary
will have the same characteristics and number of authorized and issued shares as the Parent, whereby all Preferred and Common shareholders
in the Parent will receive a pro-rata stock dividend in the subsidiary that is equal to the number of shares they owned in the
Parent on a one-for-one (1:1) basis. The major shareholders of the Company, entered into a separate agreement with regards to the
dividend spin-off. They agreed to and put into effect the following points upon the dividend spin-off of the Peak Energy Holdings
from JA Energy:

| | · | Mr. James Lusk [the largest debtor of JA Energy] transferred all assets
and liabilities, as of March 31, 2014, from JA Energy to the Subsidiary to the extent legally assignable.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Two of the major shareholder in JA Energy transferred all ownership
of their Preferred and Common stock held in the subsidiary to Mr. James Lusk.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Mr. James Lusk transferred all of the common stock ownership he owned
and controlled in JA Energy to the major shareholders.
| | - | ----------------------------------------------------------------------------------------------------------------------------



| | · | Mr. James Lusk provided a notarized signed letter addressed to the
Company and auditor that he agreed to transfer all assets and liabilities, as of March 31, 2014, from the Parent to the Subsidiary
to the extent legally assignable.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | JA Energy warranted that any new liabilities incurred on the books
of JA Energy after April 1, 2014 would not be transferred to the subsidiary.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------



| | · | JA Energy represented and warranted that there were no liabilities,
actual or contingent, created in the subsidiary. Prior to the effective time of the transfer, the subsidiary would have no assets
nor liabilities.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | JA Energy warranted that since April 1, 2014, with the exception of
the Preferred voting shares, no other shares were issued, awarded or pledged to be issued. The number of common shares issued and
outstanding in JA Energy at March 31, 2014 were the same number of the shares issued at the date of transfer.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Upon the completion of the transfer of assets and liabilities shares
were exchanged and the subsidiary was divested from JA Energy and now operates independent as a separate entity of JA Energy with
its own management;
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Mr. James Lusk took control of the Peak Energy Holdings, independent
of JA Energy.
| | - | ----------------------------------------------------------------------------------



| | · | All Parties indemnified and held harmless the other Parties from and
against any and all losses, damages, liabilities, resulting or arising from these transactions.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------

14





| | · | 
| | - | 



The Agreement did not affect any other shareholders
in the Company who maintained their share ownership of JA Energy, and have pro-rata ownership in Peak Energy Holdings following
the dividend spin-off.

As a result of the foregoing transaction, the Company
currently has no assets, minimal liabilities and no employees and is now considered a “Shell Company” Securities Act
Rule 405 and Exchange Act Rule 12b-2. Under the acts a Shell Company is define as a company, other than an asset-backed issuer,
with no or nominal operations; and no or nominal assets.



Results of Operations



During the three and six months ended
February 29, 2016, the Company had no operations other than occasional administrative and accounting functions. As such comparisons
of the results for the three and six months ended February 29, 2016 and February 28, 2015 are meaningless.



Expenses



For the three and six months ending
February 29, 2016, the Company had total general and administrative expenses of $12,025 and $25,281, respectively, consisting solely
of rent expense and professional fees. For the three months and six months ending February 28, 2015, the Company had total general
and administrative expenses of $10,244 and 29,873, respectively, consisting solely of rent expense and professional fees.



Other Income and Expense



On October 15, 2014, as part of an Irrevocable Asset
and Liability Exchange Agreement (the “Agreement”)	Mr. James Lusk (the largest debtor of JA Energy and its former
CEO) agreed to transfer as of March 31, 2014, all assets and liabilities from JA Energy to the Subsidiary to the extent legally
assignable. During the six months ended February 28, 2015 an asset with a book value of $9,340, net of depreciation, and liabilities
totaling $628,210 were transferred to Peak Energy Holdings. This transfer resulted in other income of $618,870 for the six months
ended February 28, 2015.

On October 27, 2014 the Company entered
into an agreement with two former employees, one of whom was a former director of the Company, whereby all parties agreed to release
and hold harmless from any liabilities that existed prior to the date of the agreement. The result of this agreement was the forgiveness
of this debt by the former employees of $38,186 in compensation owed to the employees which was recognized as other income during
the six months ended February 28, 2015.



For the six months ended February 28,
2015 the company recognized interest expense of $5,833 related to Notes Payable to the Company’s former CEO.



Net Income



As a result of the forgoing the Company
had a net loss for the three and six months ended February 29, 2016 of $12,025 and 25,281, respectively. For the three and six
months ended February 28, 2015 the Company had a net loss of $10,244 and net income of $621,350, respectively.



15









Going Concern



The financial statements included with
this quarterly report have been prepared in accordance with generally accepted accounting principles applicable to a going concern
which contemplates the realization of assets business. As of February 29, 2016, the Company has recognized $5,000 in revenues and
has accumulated losses of approximately $4,566,461 since inception. The Company's ability to continue as a going concern is contingent
upon the successful completion of additional financing arrangements and its ability to achieve and maintain profitable operations.
Management plans to raise equity capital to finance the operating and capital requirements of the Company. Amounts raised will
be used to further development of the Company's products, to provide financing for marketing and promotion, to secure additional
property and equipment, and for other working capital purposes. While the Company is putting forth its best efforts to achieve
the above plans, there is no assurance that any such activity will generate funds that will be available for operations.



These conditions raise substantial doubt
about the Company's ability to continue as a going concern. Our financial statements do not include any adjustments that might
arise from this uncertainty.





Liquidity and Capital Resources



As a result of the transfer of assets
and liabilities to Peak Energy as described above the Company’s financial condition has improved as a result of $628,210
of liabilities being transferred. Additionally, $38,186 of payables was forgiven as the result of an agreement. Partially offsetting
this improvement was the transfer of assets, net of depreciation, of $9,340. As of February 29, 2016 the Company has no cash or
assets and has a negative working capital balance of $158,804.



The Company has limited financial resources
available, which has had an adverse impact on the Company's liquidity, activities and operations. These limitations have adversely
affected the Company's ability to obtain certain projects and pursue additional business. Without realization of additional capital,
it would be unlikely for the Company to continue as a going concern. In order for the Company to remain a Going Concern it will
need to find additional capital. Additional working capital may be sought through additional debt or equity private placements,
additional notes payable to banks or related parties (officers, directors or stockholders), or from other available funding sources
at market rates of interest, or a combination of these. The ability to raise necessary financing will depend on many factors, including
the nature and prospects of any business to be acquired and the economic and market conditions prevailing at the time financing
is sought. No assurances can be given that any necessary financing can be obtained on terms favorable to the Company, or at all.
Currently, the Company has ceased most operations with the exception of certain aspects of its product development and protecting
its intellectual property.



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 or operations, liquidity, capital expenditures or capital resources that is material to
investors.



16









Critical Accounting Policies and
Estimates



Revenue Recognition: We recognize revenue
from product sales once all of the following criteria for revenue recognition have been met: pervasive evidence that an agreement
exists; the services have been rendered; the fee is fixed and determinable and not subject to refund or adjustment; and collection
of the amount due is reasonable assured.



New Accounting Standards



Management has evaluated recently issued
accounting pronouncements through February 29, 2016 and concluded that they will not have a material effect on the financial statements
as of February 29, 2016. However, for purpose of financial reporting the Company has elected early adoption of Accounting Standards
Update No. 2014-10, issued June 10, 2014, which removes the definition of a development stage entity from ASC Topic 915 and all
distinction between development stage entities and other reporting entities under GAAP. As a result, we no longer report financial
results showing inception to date.



Recent Pronouncements



The Company's management has evaluated
all the recently issued accounting pronouncements through the filing date of these financial statements and does not believe that
any of these pronouncements will have a material impact on the Company's financial position and results of operations.



Item 3. Quantitative and Qualitative Disclosures about
Market Risk.



Not required for smaller reporting companies.





Item 4T. Controls and Procedures



Evaluation of Disclosure Controls
and Procedures



Our disclosure controls and procedures,
as defined in Rule 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act"),
are designed to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is recorded,
processed, summarized, and reported within the time periods specified in rules and forms adopted by the SEC, and that such information
is accumulated and communicated to management, including the Chief Executive Officer and the Chief Financial Officer, to allow
timely decisions regarding required disclosures.



Management, with the participation of
the Chief Executive Officer and the Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures
as of the end of the period covered by this report. Based on such evaluation, the Chief Executive Officer and the Chief Financial
Officer concluded that, our disclosure controls and procedures were not effective. Our disclosure controls and procedures were
not effective because of the "material weaknesses" described below under "Management's report on internal control
over financial reporting," which are in the process of being remediated as described below under "Management Plan to
Remediate Material Weaknesses."



17









Management's Report on Internal Control
over Financial Reporting



Our management is responsible for establishing
and maintaining adequate internal control over financial reporting. Internal control over financial reporting, as defined in rules
promulgated under the Exchange Act, is a process designed by, or under the supervision of, our Chief Executive Officer and Chief
Financial Officer and affected by our Board of Directors, management and other personnel to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP.
Internal control over financial reporting includes those policies and procedures that:



| | · | pertain to the maintenance of records
that in reasonable detail accurately and fairly reflect the transactions and dispositions of our assets;
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------



| | · | provide reasonable assurance that transactions
are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that our receipts and expenditures
are being made only in accordance with authorizations of our management and our Board of Directors; and
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect
on our financial statements.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Because of its inherent limitations,
a system of internal control over financial reporting can provide only reasonable, not absolute, assurance that the objectives
of the control system are met and may not prevent or detect misstatements. Internal control over financial reporting is a process
that involves human diligence and compliance and is subject to lapses in judgment and breakdowns resulting from human failures.
Internal control over financial reporting also can be circumvented by collusion or improper override. Because of such limitations,
there is a risk that material misstatements may not be prevented or detected on a timely basis by internal control over financial
reporting. However, these inherent limitations are known features of the financial reporting process, and it is possible to design
into the process safeguards to reduce, though not eliminate, this risk. Further, over time control may become inadequate because
of changes in conditions or the degree of compliance with the policies or procedures may deteriorate.



Our management assessed the effectiveness
of our internal control over financial reporting as of February 29, 2016. In making its assessment, management used the criteria
established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission
("COSO"). Based on its assessment, management has concluded that we had certain control deficiencies described below
that constituted material weaknesses in our internal controls over financial reporting. As a result, our internal control over
financial reporting was not effective as of February 29, 2016.











18









A "material weakness" is defined
under SEC rules as a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there
is a reasonable possibility that a material misstatement of a company's annual or interim financial statements will not be prevented
or detected on a timely basis by the company's internal controls. As a result of management's review of the investigation issues
and results, and other internal reviews and evaluations that were completed after the end of quarter related to the preparation
of management's report on internal controls over financial reporting required for this quarterly report on Form 10-Q, management
concluded that we had material weaknesses in our control environment and financial reporting process consisting of the following:



1)   lack
of a functioning audit committee due to a lack of a majority of independent members and a lack of a majority of outside directors
on our board of directors, resulting in ineffective oversight in the establishment and monitoring of required internal controls
and procedures; and



2)   insufficient
written policies and procedures for accounting and financial reporting with respect to the requirements and application of US GAAP
and SEC disclosure requirements.



We do not believe the material weaknesses
described above caused any meaningful or significant misreporting of our financial condition and results of operations for the
three and six months ended February 29, 2016. However, management believes that the lack of a functioning audit committee and the
lack of a majority of outside directors on our board of directors results in ineffective oversight in the establishment and monitoring
of required internal controls and procedures, which could result in a material misstatement in our financial statements in future
periods.



Management Plan to Remediate Material
Weaknesses



Management is pursuing the implementation
of corrective measures to address the material weaknesses described below. In an effort to remediate the identified material weaknesses
and other deficiencies and enhance our internal controls, we have initiated, or plan to initiate, the following series of measures:



We will create a position to segregate
duties consistent with control objectives and will increase our personnel resources and technical accounting expertise within the
accounting function when funds are available to us. We plan to appoint one or more outside directors to our board of directors
who shall be appointed to an audit committee resulting in a fully functioning audit committee who will undertake the oversight
in the establishment and monitoring of required internal controls and procedures such as reviewing and approving estimates and
assumptions made by management when funds are available to us.



We believe the remediation measures
described above will remediate the material weaknesses we have identified and strengthen our internal control over financial reporting.
We are committed to continuing to improve our internal control processes and will continue to diligently and vigorously review
our financial reporting controls and procedures. As we continue to evaluate and work to improve our internal control over financial
reporting, we may determine to take additional measures to address control deficiencies or determine to modify, or in appropriate
circumstances not to complete, certain of the remediation measures described above.





19









Changes in Internal Control
over Financial Reporting



There were no changes in our internal
control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) during the most
recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial
reporting.







PART II. OTHER INFORMATION



Item 1 -- Legal Proceedings



From time to time, we may become involved
in various lawsuits and legal proceedings, which arise in the ordinary course of business. However, litigation is subject to inherent
uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business.



We are not presently a party to any
material litigation, nor to the knowledge of management is any litigation threatened against us, which may materially affect us.



Item 1A - Risk Factors



See Risk Factors set forth in Part I,
Item 1A of the Company's Annual Report on 10-K for the fiscal year ended August 31, 2015 and the discussion in Item 1, above, under
"Liquidity and Capital Resources."



Item 2 -- Unregistered Sales of Equity Securities and
Use of Proceeds



None.



Item 3 -- Defaults Upon Senior Securities



None.





Item 4 -- Submission of Matters to a Vote of Security
Holders



None.



Item 5 -- Other Information



None.





20









Item 6 -- Exhibits





|Exhibit Number |  | Ref |  | Description of Document                                                                                                                                                              
|-------------- |  | --- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|31.1           |  |     |  | Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                              
|               |  |     |  |                                                                                                                                                                                      
|32.1           |  |     |  | Certification of Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002.
|               |  |     |  |                                                                                                                                                                                      
|101            |  | *   |  | The following materials from this Quarterly Report on Form 10-Q for the quarter ended February 29, 2016, formatted in XBRL (eXtensible Business Reporting Language):                 
|               |  |     |  |                                                                                                                                                                                      
|               |  |     |  | (1)Balance Sheets at February 29, 2016 (unaudited), and August 31, 2015 (audited)                                                                                                    
|               |  |     |  |                                                                                                                                                                                      
|               |  |     |  | (2)Unaudited Statements of Operations for the three and six month periods ending
        February 29, 2016 and February
        28, 2015.                                            
|               |  |     |  |                                                                                                                                                                                      
|               |  |     |  | (3)Unaudited Statements of Cash Flows for the three and six month periods ending
        February 29, 2016 and February
        28, 2015.                                            
|               |  |     |  |                                                                                                                                                                                      
|               |  |     |  | (4)    Notes to the financial statements.                                                                                                                                            
|               |  |     |  |                                                                                                                                                                                      



- Pursuant to Rule 406T
of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes
of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities
and Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.













21









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.



|                      | JA Energy
        Registrant                                                                                                     
|--------------------- | ---------------------------------------------------------------------------------------------------------------------------------
|                      |                                                                                                                                  
|Date:  April 14, 2016 | /s/ Barry Hall                                                                                                                   
|                      | Name: Barry Hall                                                                                                                 
|                      | Title: Chief Executive Officer and Chief Financial Officer
        (Principal Executive Officer and Principal Accounting Officer)































































22