----

----

**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

----

**FORM      10-KSB**

----

**x**
**   ANNUAL      REPORT UNDER SECTION 13 OR 15(d) OF THE**

**SECURITIES      EXCHANGE ACT OF 1934**

**TRANSITION      REPORT UNDER SECTION 13 OR 15(d) OF THE**

**SECURITIES      EXCHANGE ACT OF 1934**

*Commission      file number 0-24623*

| **NEW                GENERATION HOLDINGS, INC.**                                     |
|--------------------------------------------------------------------------------------|
| (Exact                name of registrant as specified in its                charter) |

| Delaware                                                      |   | 13-4056896                                       |
|---------------------------------------------------------------|--------|--------------------------------------------------|
| (State                or other jurisdiction of incorporation) |   | (IRS                employer identification no.) |

| c/o                245 Park AvenueNew                York, New York 10167        |
|----------------------------------------------------------------------------------|
| Address                of principal executive offices) (Zip                Code) |

**Securities      registered pursuant to Section 12(b) of the Exchange Act:**

|                               |   |                                                     |
|------------------------------------|--------|----------------------------------------------------------|
| Title                of each class |   | Name                of each exchange on which registered |
| None                               |   | None                                                     |

**Securities      registered pursuant to Section 12(g) of the Act:**

**Transitional      Small Business Disclosure Format YES **
**NO **

----

**TABLE        OF CONTENTS**

|                                                    |                                                                                                                                                                                   |   | **Page** |
|--------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|
| PART                  I                       |                                                                                                                                                                                        |
| Item                  1.                                | Description                  Of Business** **                                                                                                                                          |   | 3        |
| Item                  2.                                | Description                  Of Properties                                                                                                                                                  |   | 4        |
| Item                  3.                                | Legal                  Proceedings                                                                                                                                                          |   | 4        |
| Item                  4.                                | Submission                  Of Matters To A Vote Of Security Holders** **                                                                                                              |   | 4        |
|                                                    |                                                                                                                                                                                   |   |     |
| PART                  II                      |                                                                                                                                                                                        |
| Item                  5.                                | Market                  For Registrant's Common Equity And Related Stockholder                  Matters                                                                                     |   | 5        |
| Item                  6.                                | Management's                  Discussion And Analysis Or Plan Of Operation                                                                                                                  |   | 6        |
| Item                  7.                                | Financial                  Statements                                                                                                                                                       |   | 11       |
| Item                  8.                                | Changes                  In And Disagreements With Accountants On Accounting And Financial                  Disclosure                                                                      |   | 12       |
| Item                  8A                                     | Controls                  And Procedures                                                                                                                                                    |   | 12       |
| Item                  8A (T)                                 | Controls                  And Procedures                                                                                                                                                    |   | 12       |
| Item                  8B                                     | Other                  Information                                                                                                                                                          |   | 13       |
| Item                  9.                                | Directors,                  Executive Officers, Promoters And Control Persons And Corporate                  Governance; Compliance With Section 16(A) Of The Exchange                  Act |   | 14       |
| Item                  10.                               | Executive                  Compensation                                                                                                                                                     |   | 15       |
| Item                  11.                               | Security                  Ownership Of Certain Beneficial Owners And Management                                                                                                             |   | 16       |
| Item                  12.                               | Certain                  Relationships And Related Transactions                                                                                                                             |   | 17       |
| Item                  13.                               | Exhibits                  List                                                                                                                                                              |   | 18       |
| Item                  14.                               | Principal                  Accountant Fees And Services                                                                                                                                     |   | 20       |
| Signatures                                                   |                                                                                                                                                                                        |   | 21       |

----

**PART      I**

**FORWARD-LOOKING      STATEMENTS**

**ITEM      1. DESCRIPTION OF BUSINESS.**

**Recent      Developments **

***Issuance      of Series B Preferred Stock***

***Spin      Off of Plastinum***

**Reporting      History**

----

***Plastinum***

**NUMBER      OF EMPLOYEES**

**COSTS      AND EFFECTS OF COMPLIANCE WITH ENVIRONMENTAL LAWS**

**DEPENDENCE      ON KEY CUSTOMERS; MAJOR SUPPLIERS**

**ITEM      2. DESCRIPTION OF PROPERTIES.**

**LOCATION      AND DESCRIPTION OF PROPERTIES**

**ITEM      3. LEGAL PROCEEDINGS.**

**ITEM      4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS**

----

**PART      II**

**ITEM      5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER      MATTERS.**

**MARKET      INFORMATION**

|                                            |   | **High** |   | **Low** |   |
|-------------------------------------------------|--------|----------|--------|---------|--------|
| 4th                Quarter 2007, ended 12/31/07 |   | $        | 0.004  |    | $      | 0.002 |   |
| 3rd                Quarter 2007, ended 9/30/07  |   | $        | 0.010  |    | $      | 0.002 |   |
| 2nd                Quarter 2007, ended 6/30/07  |   | $        | 0.035  |    | $      | 0.008 |   |
| 1st                Quarter 2007, ended 3/31/07  |   | $        | 0.69   |    | $      | 0.03 |   |
| 4th                Quarter 2006, ended 12/31/06 |   | $        | 0.75   |    | $      | 0.50 |   |
| 3rd                Quarter 2006, ended 9/30/06  |   | $        | 0.57   |    | $      | 0.26 |   |
| 2nd                Quarter 2006, ended 6/30/06  |   | $        | 0.31   |    | $      | 0.26 |   |
| 1st                Quarter 2006, ended 3/31/06  |   | $        | 0.32   |    | $      | 0.20 |   |

**HOLDERS**

**DIVIDEND      POLICY**

**RECENT      SALES OF UNREGISTERED SECURITIES**

**ISSUER      PURCHASES OF EQUITY SECURITIES**

----

**ITEM      6.**       **MANAGEMENT'S      DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.**

**Critical      Accounting Policies**

***Use      of Estimates***

***Foreign      Currency Translation***

***Going      Concern***

**RECENT      ACCOUNTING PRONOUNCEMENTS**

**MANAGEMENT'S      PLAN OF OPERATION**

----

**RESULTS      OF OPERATIONS**

**YEAR      ENDED DECEMBER 31, 2007 COMPARED TO THE YEAR ENDED DECEMBER 31,      2006**

**LIQUIDITY      AND CAPITAL RESOURCES**

----

**TRENDS,      RISKS AND UNCERTAINTIES**

***The      Company has No Business Operations and No Material      Assets***

***Our      CEO Owns Preferred Stock Convertible Into 95% of Our Common      Stock***

***Cautionary      Factors That May Affect Future Results***

***Our      Financial Results May Be Affected By Factors Outside Of Our      Control***

----

***Employees***

***Dependence      Upon Management***

***Lack      Of Independent Directors***

***Limitation      Of Liability And Indemnification Of Officers And      Directors***

***Limited      Market Due To Penny Stock***

----

***The      Trading Price Of Our Common Stock May Decrease Due To Factors Beyond Our      Control.***

| · |   | Variations                in anticipated or actual results of operations;                                          |
|--------|--------|--------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                               |
| · |   | Announcements                of new products or technological innovations by us or our                competitors; |
|   |   |                                                                                                               |
| · |   | Changes                in earnings estimates of operational results by                analysts;                    |
|   |   |                                                                                                               |
| · |   | Results                of product demonstrations.                                                                  |
|   |   |                                                                                                               |
| · |   | Inability                of market makers to combat short positions on the                stock;                   |
|   |   |                                                                                                               |
| · |   | Inability                of the market to absorb large blocks of stock sold into the                market;        |
|   |   |                                                                                                               |
| · |   | Comments                about us or our markets posted on the                Internet.                             |

***We      Pay No Dividends***

***Potential      Inability to Make Required Public Filings***

***Quantitative      and Qualitative Disclosure about Market Risk***

----

***Doubt      as to Ability to Continue as Going Concern***

**RECENT      DEVELOPMENTS**

**Issuance      of Series B Preferred Stock**

**Spin      Off of Plastinum**

**OFF-BALANCE      SHEET ARRANGEMENTS**

**ITEM      7. FINANCIAL STATEMENTS**

----

**NEW        GENERATION HOLDINGS, INC.**

| **For                    the Fiscal Years Ended December 31, 2007 and                    2006**                                                                                                                                                                                             |   |  Page |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------|--------|
|                                                                                                                                                                                                                                                                                        |   |       |   |
| Report                  of Independent Registered Public Accounting Firm                                                                                                                                                                                                                    |   |       | F-2    |   |
|                                                                                                                                                                                                                                                                                        |   |       |   |   |
| Consolidated                  Balance Sheet as of December 31, 2007                                                                                                                                                                                                                         |   |       | F-3    |   |
|                                                                                                                                                                                                                                                                                        |   |       |   |   |
| Consolidated                  Statements of Losses for the Years ended December 31, 2007 and                  2006 and                  for cumulative period from April 7, 2005 (date of inception as                  development                  stage enterprise) to December 31, 2007 |   |       | F-4    |   |
|                                                                                                                                                                                                                                                                                        |   |       |   |   |
| Consolidated                  Statements of Deficiency in Stockholders’ Equity for the Years ended                  December 31, 2007                                                                                                                                                 |   |       | F-5    |   |
|                                                                                                                                                                                                                                                                                             |   |       |   |   |
| Consolidated                  Statements of Cash Flows for Years ended December 31, 2007 and                  2006 and                  for cumulative period from April 7, 2005 (date of inception as                  development                  stage enterprise) to December 31, 2007 |   |       | F-6    |   |
|                                                                                                                                                                                                                                                                                        |   |       |   |   |
| Notes                  to Consolidated Financial Statements                                                                                                                                                                                                                                 |   |       | F-7    |   |

----

**REPORT        OF INDEPENDENT REGISTERED CERTIFIED PUBLIC ACCOUNTING        FIRM**

|   | /s/                  RBSM LLP                 |
|--------|-----------------------------------------------|
|   | Certified                  Public Accountants |

----

|                                                                                                                                                                                           |   | 2007   |        |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------|
| Assets                                                                                                                                                                                         |   |   |        |
|                                                                                                                                                                                           |   |   |        |
| Current                    assets:                                                                                                                                                             |   |   |        |
| Cash                                                                                                                                                                                           |   | $      | -           |   |
| Cash                    - discontinued operations                                                                                                                                              |   |   | -           |   |
|                                                                                                                                                                                           |   |   |        |   |
| Total                    assets                                                                                                                                                                |   | $      | -           |   |
|                                                                                                                                                                                           |   |   |        |   |
| Liabilities                    and deficiency in stockholders' equity                                                                                                                          |   |   |        |   |
|                                                                                                                                                                                           |   |   |        |   |
| Current                    liabilities:                                                                                                                                                        |   |   |        |   |
|                                                                                                                                                                                           |   |   |        |   |
| Accounts                    payable and accrued expenses:                                                                                                                                      |   | $      | 499,099     |   |
| Due                    to Plastinum                                                                                                                                                            |   |   | 192,042     |   |
| Due                    to stockholder                                                                                                                                                          |   |   | 207,429     |   |
|                                                                                                                                                                                           |   |   |        |   |
| Total                    current liabilities                                                                                                                                                   |   |   | 898,570     |   |
|                                                                                                                                                                                           |   |   |        |   |
| Deficiency                    in stockholders' equity:                                                                                                                                         |   |   |        |   |
|                                                                                                                                                                                           |   |   |        |   |
| Preferred                    stock, par value $.001 per share; 1,000,000 shares authorized,                    none and                    528,630 shares issued and outstanding, respectively |   |   | -           |   |
| Common                    stock, par value $.001 per share; 150,000,000 shares authorized,                    88,749,973 and 49,998,260 shares issued and outstanding, respectively            |   |   | 88,750      |   |
| Additional                    paid-in capital                                                                                                                                                  |   |   | 38,203,439  |   |
| Other                    comprehensive income                                                                                                                                                  |   |   | 20,926      |   |
| Accumulated                    deficit prior to development stage                                                                                                                              |   |   | (31,081,731 | ) |
| Deficit                    accumulated during the development stage                                                                                                                            |   |   | (8,129,954  | ) |
|                                                                                                                                                                                           |   |   |        |   |
| Total                    deficiency in stockholders' equity                                                                                                                                    |   |   | (898,570    | ) |
|                                                                                                                                                                                           |   |   |        |   |
| Total                    liabilities and deficiency in stockholders' equity                                                                                                                    |   | $      | -           |   |

----

|                                                                                                                 |   |  Years                      ended December 31, |       | Cumulative                      Period from April 7, 2003 (Reestablishment of Development Stage                      Company)                      to December 31, |   |
|----------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                 |   |  2007                                          |       | 2006                                                                                                                                                               |   | 2007 |   |
| Operating                      expenses:                                                                             |   |                                           |       |                                                                                                                                                               |   |   |   |
| General                      and administrative expenses                                                             |   | $                                                   | 25,353     |                                                                                                                                                               | $      | 182,963 |   | $ | 1,079,135 |   |
|                                                                                                                 |   |                                                |       |                                                                                                                                                               |   |   |   |   |   |   |
| Total                      operating expenses                                                                        |   |                                                | 25,353     |                                                                                                                                                               |   | 182,963 |   |   | 1,079,135 |   |
|                                                                                                                 |   |                                                |       |                                                                                                                                                               |   |   |   |   |   |   |
| Loss                      from continuing operations before other income (expense)                                   |   |                                                | (25,353    | )                                                                                                                                                                  |   | (182,963 | ) |   | (1,079,135 | ) |
|                                                                                                                 |   |                                                |       |                                                                                                                                                               |   |   |   |   |   |   |
| Change                      in value of warrant liability                                                            |   |                                                | 1,102,832  |                                                                                                                                                               |   | (6,434,329 | ) |   | (6,254,174 | ) |
| Interest                      expense                                                                                |   |                                                | -          |                                                                                                                                                               |   | (38,341 | ) |   | (796,645 | ) |
|                                                                                                                 |   |                                                |       |                                                                                                                                                               |   |   |   |   |   |   |
| Income                      (loss) from continuing operations before provision for income                      taxes |   |                                                | 1,077,479  |                                                                                                                                                               |   | (6,655,633 | ) |   | (8,129,954 | ) |
|                                                                                                                 |   |                                                |       |                                                                                                                                                               |   |   |   |   |   |   |
| Provision                      for income taxes                                                                      |   |                                                | -          |                                                                                                                                                               |   | - |   |   | - |   |
|                                                                                                                 |   |                                                |       |                                                                                                                                                               |   |   |   |   |   |   |
| Net                      income (loss) from continuing operations                                                    |   |                                                | 1,077,479  |                                                                                                                                                               |   | (6,655,633 | ) |   | (8,129,954 | ) |
|                                                                                                                 |   |                                                |       |                                                                                                                                                               |   |   |   |   |   |   |
| Loss                      from discontinued operations, net of tax                                                   |   |                                                | (196,224   | )                                                                                                                                                                  |   | (1,927,963 | ) |   | (5,267,038 | ) |
|                                                                                                                 |   |                                                |       |                                                                                                                                                               |   |   |   |   |   |   |
| Net                      income (loss)                                                                               |   | $                                                   | 881,255    |                                                                                                                                                               | $      | (8,583,596 | ) | $ | (13,396,992 | ) |
|                                                                                                                 |   |                                                |       |                                                                                                                                                               |   |   |   |   |   |   |
| Net                      income (loss) per common share, basic and diluted:                                          |   |                                                |       |                                                                                                                                                               |   |   |   |   |   |   |
| Continuing                      operations                                                                           |   | $                                                   | 0.01       |                                                                                                                                                               | $      | (0.14 | ) |   |   |   |
| Discontinued                      operations                                                                         |   | $                                                   | (0.00      | )                                                                                                                                                                  | $      | (0.04 | ) |   |   |   |
|                                                                                                                 |   | $                                                   | 0.01       |                                                                                                                                                               | $      | (0.18 | ) |   |   |   |
|                                                                                                                 |   |                                                |       |                                                                                                                                                               |   |   |   |   |   |   |
| Weighted                      average shares outstanding, basic and diluted                                          |   |                                                | 83,431,919 |                                                                                                                                                               |   | 48,763,203 |   |   |   |   |
|                                                                                                                 |   |                                                |       |                                                                                                                                                               |   |   |   |   |   |   |
| Comprehensive                      income (loss):                                                                    |   |                                                |       |                                                                                                                                                               |   |   |   |   |   |   |
| Net                      income (loss)                                                                               |   | $                                                   | 881,255    |                                                                                                                                                               | $      | (8,583,596 | ) |   |   |   |
| Foreign                      currency translation loss                                                               |   |                                                | -          |                                                                                                                                                               |   | (8,043 | ) |   |   |   |
|                                                                                                                 |   |                                                |       |                                                                                                                                                               |   |   |   |   |   |   |
| Comprehensive                      income (loss)                                                                     |   | $                                                   | 881,255    |                                                                                                                                                               | $      | (8,591,639 | ) |   |   |   |

----

|                                                                                                                           |   |                                    |               |                                |   |               |   |                             |               |                                   |   |                                    |   | Accumulated                        Deficit |       |                                     |   |                                        |   |
|--------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|--------------------|-------------------------------------|--------|--------------------|--------|----------------------------------|--------------------|----------------------------------------|--------|-----------------------------------------|--------|--------------------------------------------|------------|------------------------------------------|--------|---------------------------------------------|--------|
|                                                                                                                           |   |  Preferred                        Stock |               | Common                        Stock |   | Additional         |   | Common                           |               | Prior                        to        |   | During                                  |   | Other                                 |       |                                          |   |
|                                                                                                                           |   |  Shares                                 |               | Par                        value    |   | Shares             |   | Par                        value |               | Paid-in                        Capital |   | Stock                        Subscribed |   | Development                        Stage   |       | Development                        Stage |   | Comprehensive                        Income |   | Stockholders'                          Deficiency |   |
| Balance,                        December 31, 2002                                                                              |   |                                         | -                  |                                | $      | -                  |   |                             | 21,056,690         |                                   | $      | 21,059                                  |   | $                                          | 29,636,051 |                                     | $      | -                                           |   | $ | (34,634,693 | ) | $ | - |   | $ | - |   | $ | (4,977,583 | ) |
|                                                                                                                           |   |                                         |               |                                |   |               |   |                             |               |                                   |   |                                    |   |                                       |       |                                     |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Disposition                        of previously controlled wholly and majority owned subsidiaries,                        net |   |                                         | -                  |                                |   | -                  |   |                             | -                  |                                   |   | -                                       |   |                                       | -          |                                     |   | -                                           |   |   | 3,882,801 |   |   | - |   |   | - |   |   | 3,882,801 |   |
|                                                                                                                           |   |                                         |               |                                |   |               |   |                             |               |                                   |   |                                    |   |                                       |       |                                     |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                        loss from January 1, 2003 to April 7, 2003                                                          |   |                                         | -                  |                                |   | -                  |   |                             | -                  |                                   |   | -                                       |   |                                       | -          |                                     |   | -                                           |   |   | (329,839 | ) |   | - |   |   | - |   |   | (329,839 | ) |
|                                                                                                                           |   |                                         |               |                                |   |               |   |                             |               |                                   |   |                                    |   |                                       |       |                                     |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                        April 7, 2003                                                                                  |   |                                         | -                  |                                |   | -                  |   |                             | 21,056,690         |                                   |   | 21,059                                  |   |                                       | 29,636,051 |                                     |   | -                                           |   |   | (31,081,731 | ) |   | - |   |   | - |   |   | (1,424,621 | ) |
|                                                                                                                           |   |                                         |               |                                |   |               |   |                             |               |                                   |   |                                    |   |                                       |       |                                     |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                        loss                                                                                                |   |                                         | -                  |                                |   | -                  |   |                             | -                  |                                   |   | -                                       |   |                                       | -          |                                     |   | -                                           |   |   | - |   |   | (330,321 | ) |   | - |   |   | (330,321 | ) |
|                                                                                                                           |   |                                         |               |                                |   |               |   |                             |               |                                   |   |                                    |   |                                       |       |                                     |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                        December 31, 2003                                                                              |   |                                         | -                  |                                |   | -                  |   |                             | 21,056,690         |                                   |   | 21,059                                  |   |                                       | 29,636,051 |                                     |   | -                                           |   |   | (31,081,731 | ) |   | (330,321 | ) |   | - |   |   | (1,754,942 | ) |
|                                                                                                                           |   |                                         |               |                                |   |               |   |                             |               |                                   |   |                                    |   |                                       |       |                                     |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sale                        of common stock                                                                                    |   |                                         | -                  |                                |   | -                  |   |                             | 6,500,120          |                                   |   | 6,500                                   |   |                                       | 643,514    |                                     |   | -                                           |   |   | - |   |   | - |   |   | - |   |   | 650,014 |   |
|                                                                                                                           |   |                                         |               |                                |   |               |   |                             |               |                                   |   |                                    |   |                                       |       |                                     |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                        stock subscribed                                                                                 |   |                                         | -                  |                                |   | -                  |   |                             | -                  |                                   |   | -                                       |   |                                       | -          |                                     |   | 54,600                                      |   |   | - |   |   | - |   |   | - |   |   | 54,600 |   |
|                                                                                                                           |   |                                         |               |                                |   |               |   |                             |               |                                   |   |                                    |   |                                       |       |                                     |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                        physically issued                                                                                |   |                                         | -                  |                                |   | -                  |   |                             | -                  |                                   |   | -                                       |   |                                       | -          |                                     |   | -                                           |   |   | - |   |   | - |   |   | - |   |   | - |   |
|                                                                                                                           |   |                                         |               |                                |   |               |   |                             |               |                                   |   |                                    |   |                                       |       |                                     |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Currency                        translation adjustment                                                                         |   |                                         | -                  |                                |   | -                  |   |                             | -                  |                                   |   | -                                       |   |                                       | -          |                                     |   | -                                           |   |   | - |   |   | - |   |   | 14,383 |   |   | 14,383 |   |
|                                                                                                                           |   |                                         |               |                                |   |               |   |                             |               |                                   |   |                                    |   |                                       |       |                                     |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                        loss                                                                                                |   |                                         | -                  |                                |   | -                  |   |                             | -                  |                                   |   | -                                       |   |                                       | -          |                                     |   | -                                           |   |   | - |   |   | (620,770 | ) |   | - |   |   | (620,770 | ) |
|                                                                                                                           |   |                                         |               |                                |   |               |   |                             |               |                                   |   |                                    |   |                                       |       |                                     |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                        December 31, 2004                                                                              |   |                                         | -                  |                                |   | -                  |   |                             | 27,556,810         |                                   |   | 27,559                                  |   |                                       | 30,279,565 |                                     |   | 54,600                                      |   |   | (31,081,731 | ) |   | (951,091 | ) |   | 14,383 |   |   | (1,656,715 | ) |
|                                                                                                                           |   |                                         |               |                                |   |               |   |                             |               |                                   |   |                                    |   |                                       |       |                                     |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sale                        of common stock                                                                                    |   |                                         | -                  |                                |   | -                  |   |                             | 18,014,150         |                                   |   | 18,014                                  |   |                                       | 1,783,401  |                                     |   | -                                           |   |   | - |   |   | - |   |   | - |   |   | 1,801,415 |   |
|                                                                                                                           |   |                                         |               |                                |   |               |   |                             |               |                                   |   |                                    |   |                                       |       |                                     |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Warrants                        issued for services                                                                            |   |                                         | -                  |                                |   | -                  |   |                             | -                  |                                   |   | -                                       |   |                                       | 21,100     |                                     |   | -                                           |   |   | - |   |   | - |   |   | - |   |   | 21,100 |   |
|                                                                                                                           |   |                                         |               |                                |   |               |   |                             |               |                                   |   |                                    |   |                                       |       |                                     |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                        physically issued                                                                                |   |                                         | -                  |                                |   | -                  |   |                             | 546,000            |                                   |   | 546                                     |   |                                       | 54,054     |                                     |   | (54,600                                     | )      |   | - |   |   | - |   |   | - |   |   | - |   |
|                                                                                                                           |   |                                         |               |                                |   |               |   |                             |               |                                   |   |                                    |   |                                       |       |                                     |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                        stock subscribed                                                                                 |   |                                         | -                  |                                |   | -                  |   |                             | -                  |                                   |   | -                                       |   |                                       | -          |                                     |   | 131,300                                     |   |   | - |   |   | - |   |   | - |   |   | 131,300 |   |
|                                                                                                                           |   |                                         |               |                                |   |               |   |                             |               |                                   |   |                                    |   |                                       |       |                                     |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Beneficial                        conversion feature                                                                           |   |                                         | -                  |                                |   | -                  |   |                             | -                  |                                   |   | -                                       |   |                                       | 753,304    |                                     |   | -                                           |   |   | - |   |   | - |   |   | - |   |   | 753,304 |   |
|                                                                                                                           |   |                                         |               |                                |   |               |   |                             |               |                                   |   |                                    |   |                                       |       |                                     |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reclassification                        of warrants to liabilities                                                             |   |                                         | -                  |                                |   | -                  |   |                             | -                  |                                   |   | -                                       |   |                                       | (4,275,966 | )                                        |   | -                                           |   |   | - |   |   | - |   |   | - |   |   | (4,275,966 | ) |
|                                                                                                                           |   |                                         |               |                                |   |               |   |                             |               |                                   |   |                                    |   |                                       |       |                                     |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Currency                        translation adjustment                                                                         |   |                                         | -                  |                                |   | -                  |   |                             | -                  |                                   |   | -                                       |   |                                       | -          |                                     |   | -                                           |   |   | - |   |   | - |   |   | 14,586 |   |   | 14,586 |   |
|                                                                                                                           |   |                                         |               |                                |   |               |   |                             |               |                                   |   |                                    |   |                                       |       |                                     |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                        loss                                                                                                |   |                                         | -                  |                                |   | -                  |   |                             | -                  |                                   |   | -                                       |   |                                       | -          |                                     |   | -                                           |   |   | - |   |   | (4,743,560 | ) |   | - |   |   | (4,743,560 | ) |
|                                                                                                                           |   |                                         |               |                                |   |               |   |                             |               |                                   |   |                                    |   |                                       |       |                                     |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                        December 31, 2005 - restated                                                                   |   |                                         | -                  |                                |   | -                  |   |                             | 46,116,960         |                                   |   | 46,119                                  |   |                                       | 28,615,458 |                                     |   | 131,300                                     |   |   | (31,081,731 | ) |   | (5,694,651 | ) |   | 28,969 |   |   | (7,954,536 | ) |
|                                                                                                                           |   |                                         |               |                                |   |               |   |                             |               |                                   |   |                                    |   |                                       |       |                                     |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                        physically issued                                                                                |   |                                         | -                  |                                |   | -                  |   |                             | 1,313,000          |                                   |   | 1,313                                   |   |                                       | 129,987    |                                     |   | (131,300                                    | )      |   | - |   |   | - |   |   | - |   |   | - |   |
|                                                                                                                           |   |                                         |               |                                |   |               |   |                             |               |                                   |   |                                    |   |                                       |       |                                     |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sale                        of common stock                                                                                    |   |                                         | -                  |                                |   | -                  |   |                             | 2,568,300          |                                   |   | 2,566                                   |   |                                       | 254,264    |                                     |   |                                        |   |   | - |   |   | - |   |   | - |   |   | 256,830 |   |
|                                                                                                                           |   |                                         |               |                                |   |               |   |                             |               |                                   |   |                                    |   |                                       |       |                                     |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Conversion                        of debt                                                                                      |   |                                         | 528,630            |                                |   | 529                |   |                             | -                  |                                   |   | -                                       |   |                                       | 796,116    |                                     |   | -                                           |   |   | - |   |   | - |   |   | - |   |   | 796,645 |   |
|                                                                                                                           |   |                                         |               |                                |   |               |   |                             |               |                                   |   |                                    |   |                                       |       |                                     |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Warrants                        issued with debt                                                                               |   |                                         | -                  |                                |   | -                  |   |                             | -                  |                                   |   | -                                       |   |                                       | 126,700    |                                     |   | -                                           |   |   | - |   |   | - |   |   | - |   |   | 126,700 |   |
|                                                                                                                           |   |                                         |               |                                |   |               |   |                             |               |                                   |   |                                    |   |                                       |       |                                     |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock                        based compensation                                                                                |   |                                         | -                  |                                |   | -                  |   |                             | -                  |                                   |   | -                                       |   |                                       | 240,268    |                                     |   | -                                           |   |   | - |   |   | - |   |   | - |   |   | 240,268 |   |
|                                                                                                                           |   |                                         |               |                                |   |               |   |                             |               |                                   |   |                                    |   |                                       |       |                                     |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reclassification                        of warrants to liabilities                                                             |   |                                         | -                  |                                |   | -                  |   |                             | -                  |                                   |   | -                                       |   |                                       | (792,426   | )                                        |   | -                                           |   |   | - |   |   | - |   |   | - |   |   | (792,426 | ) |
|                                                                                                                           |   |                                         |               |                                |   |               |   |                             |               |                                   |   |                                    |   |                                       |       |                                     |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reclassification                        of liabilities to warrants                                                             |   |                                         | -                  |                                |   | -                  |   |                             | -                  |                                   |   | -                                       |   |                                       | 272,043    |                                     |   | -                                           |   |   | - |   |   | - |   |   | - |   |   | 272,043 |   |
|                                                                                                                           |   |                                         |               |                                |   |               |   |                             |               |                                   |   |                                    |   |                                       |       |                                     |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Subsidiary                        stock issued for accrued expenses                                                            |   |                                         | -                  |                                |   | -                  |   |                             | -                  |                                   |   | -                                       |   |                                       | 633,595    |                                     |   | -                                           |   |   | - |   |   | - |   |   | - |   |   | 633,595 |   |
|                                                                                                                           |   |                                         |               |                                |   |               |   |                             |               |                                   |   |                                    |   |                                       |       |                                     |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Currency                        translation adjustment                                                                         |   |                                         | -                  |                                |   | -                  |   |                             | -                  |                                   |   | -                                       |   |                                       | -          |                                     |   | -                                           |   |   | - |   |   | - |   |   | (8,043 | ) |   | (8,043 | ) |
|                                                                                                                           |   |                                         |               |                                |   |               |   |                             |               |                                   |   |                                    |   |                                       |       |                                     |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                        loss                                                                                                |   |                                         | -                  |                                |   | -                  |   |                             | -                  |                                   |   | -                                       |   |                                       | -          |                                     |   | -                                           |   |   | - |   |   | (8,583,596 | ) |   | - |   |   | (8,583,596 | ) |
|                                                                                                                           |   |                                         |               |                                |   |               |   |                             |               |                                   |   |                                    |   |                                       |       |                                     |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                        December 31, 2006                                                                              |   |                                         | 528,630            |                                |   | 529                |   |                             | 49,998,260         |                                   | $      | 49,998                                  |   | $                                          | 30,276,005 |                                     | $      | -                                           |   | $ | (31,081,731 | ) | $ | (14,278,247 | ) | $ | 20,926 |   | $ | (15,012,520 | ) |
|                                                                                                                           |   |                                         |               |                                |   |               |   |                             |               |                                   |   |                                    |   |                                       |       |                                     |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                        stock issued upon conversion of preferred stock                                                  |   |                                         | (528,630           | )                                   |   | (529               | )      |                             | 38,672,076         |                                   |   | 38,672                                  |   |                                       | (38,143    | )                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   | - |   |
|                                                                                                                           |   |                                         |               |                                |   |               |   |                             |               |                                   |   |                                    |   |                                       |       |                                     |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reclassification                        of warrant liability to permanent equity                                               |   |                                         |               |                                |   |               |   |                             |               |                                   |   |                                    |   |                                       | 11,050,524 |                                     |   |                                        |   |   |   |   |   |   |   |   |   |   |   | 11,050,524 |   |
|                                                                                                                           |   |                                         |               |                                |   |               |   |                             |               |                                   |   |                                    |   |                                       |       |                                     |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance                        of warrants for accrued expense                                                                |   |                                         |               |                                |   |               |   |                             |               |                                   |   |                                    |   |                                       | 442,070    |                                     |   |                                        |   |   |   |   |   |   |   |   |   |   |   | 442,070 |   |
|                                                                                                                           |   |                                         |               |                                |   |               |   |                             |               |                                   |   |                                    |   |                                       |       |                                     |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                        stock issued for accrued services                                                                |   |                                         |               |                                |   |               |   |                             | 79,637             |                                   |   | 80                                      |   |                                       | 10,736     |                                     |   |                                        |   |   |   |   |   |   |   |   |   |   |   | 10,816 |   |
|                                                                                                                           |   |                                         |               |                                |   |               |   |                             |               |                                   |   |                                    |   |                                       |       |                                     |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock                        based compensation                                                                                |   |                                         |               |                                |   |               |   |                             |               |                                   |   |                                    |   |                                       | (86,096    | )                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   | (86,096 | ) |
|                                                                                                                           |   |                                         |               |                                |   |               |   |                             |               |                                   |   |                                    |   |                                       |       |                                     |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                        income                                                                                              |   |                                         |               |                                |   |               |   |                             |               |                                   |   |                                    |   |                                       |       |                                     |   |                                        |   |   |   |   |   | 881,255 |   |   |   |   |   | 881,255 |   |
|                                                                                                                           |   |                                         |               |                                |   |               |   |                             |               |                                   |   |                                    |   |                                       |       |                                     |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Adjustment                        for deconsolidation of former subsidiary                                                     |   |                                         |     |                                |   |     |   |                             |     |                                   |   |                          |   |                                       | (3,451,657 | )                                        |   |                              |   |   |     |   |   | 5,267,038 |   |   |     |   |   | 1,815,381 |   |
|                                                                                                                           |   |                                         |               |                                |   |               |   |                             |               |                                   |   |                                    |   |                                       |       |                                     |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                        December 31, 2007                                                                              |   |                                         | -                  |                                | $      | -                  |   |                             | 88,749,973         |                                   | $      | 88,750                                  |   | $                                          | 38,203,439 |                                     |   | -                                           |   | $ | (31,081,731 | ) | $ | (8,129,954 | ) | $ | 20,926 |   | $ | (898,570 | ) |

----

|                                                                                                                                          |   |  Years                                  ended December 31, |       | Cumulative                                  Period from April 7, 2003 (Reestablishment of Development                                  Stage Company)                                  to December 31, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------|------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                          |   |  2007                                                      |       | 2006                                                                                                                                                                                                   |   | 2007 |   |
|                                                                                                                                          |   |                                                            |       |                                                                                                                                                                                                   |   |   |   |
| Cash                                  flows from operating activities:                                                                        |   |                                                       |       |                                                                                                                                                                                                   |   |   |   |
| Net                                  income (loss)                                                                                            |   | $                                                               | 881,255    |                                                                                                                                                                                                   | $      | (8,583,596 | ) | $ | (13,396,992 | ) |
| Adjustments                                  to reconcile net loss to net cash used in operating                                  activities: |   |                                                            |       |                                                                                                                                                                                                   |   |   |   |   |   |   |
| Warrants                                  issued for services                                                                                 |   |                                                            | -          |                                                                                                                                                                                                   |   | - |   |   | 21,100 |   |
| Stock                                  based compensation                                                                                     |   |                                                            | (86,096    | )                                                                                                                                                                                                      |   | 240,268 |   |   | 154,172 |   |
| Amortization                                  of debt discount                                                                                |   |                                                            | 5,430      |                                                                                                                                                                                                   |   | 15,747 |   |   | 774,481 |   |
| Change                                  in value of warrant liability                                                                         |   |                                                            | (1,102,832 | )                                                                                                                                                                                                      |   | 6,434,329 |   |   | 6,254,174 |   |
| Expenses                                  paid by Plastinum                                                                                   |   |                                                            | 62,376     |                                                                                                                                                                                                   |   | - |   |   | 62,376 |   |
| Gain                                  on settlement of payables                                                                               |   |                                                            | (44,675    | )                                                                                                                                                                                                      |   | - |   |   | (44,675 | ) |
| Interest                                  converted to preferred stock                                                                        |   |                                                            | -          |                                                                                                                                                                                                   |   | 43,341 |   |   | 43,341 |   |
| Depreciation                                                                                                                                  |   |                                                            | -          |                                                                                                                                                                                                   |   | - |   |   | 107,790 |   |
| Loss                                  attributed to minority interest                                                                         |   |                                                            | (5,611     | )                                                                                                                                                                                                      |   | (40,755 | ) |   | (46,366 | ) |
| Increase                                  (decrease) in liabilities:                                                                          |   |                                                            |       |                                                                                                                                                                                                   |   |   |   |   |   |   |
| Accounts                                  payable                                                                                             |   |                                                            | 30,663     |                                                                                                                                                                                                   |   | 222,381 |   |   | 1,479,476 |   |
|                                                                                                                                          |   |                                                            |       |                                                                                                                                                                                                   |   |   |   |   |   |   |
| Cash                                  used in operating activities                                                                            |   |                                                            | (259,490   | )                                                                                                                                                                                                      |   | (1,668,285 | ) |   | (4,591,123 | ) |
|                                                                                                                                          |   |                                                            |       |                                                                                                                                                                                                   |   |   |   |   |   |   |
| Cash                                  flows from financing activities:                                                                        |   |                                                            |       |                                                                                                                                                                                                   |   |   |   |   |   |   |
| Cash                                  retained by former subsidiary                                                                           |   |                                                            | (36,893    | )                                                                                                                                                                                                      |   | - |   |   | (36,893 | ) |
| Advances                                  from stockholder                                                                                    |   |                                                            | 256,957    |                                                                                                                                                                                                   |   | 455,378 |   |   | 712,335 |   |
| Proceeds                                  from sale of convertible notes                                                                      |   |                                                            | -          |                                                                                                                                                                                                   |   | 500,000 |   |   | 500,000 |   |
| Proceeds                                  from sale of common stock                                                                           |   |                                                            | -          |                                                                                                                                                                                                   |   | 757,430 |   |   | 3,394,755 |   |
|                                                                                                                                          |   |                                                            |       |                                                                                                                                                                                                   |   |   |   |   |   |   |
| Cash                                  provided by financing activities                                                                        |   |                                                            | 220,064    |                                                                                                                                                                                                   |   | 1,712,808 |   |   | 4,570,197 |   |
|                                                                                                                                          |   |                                                            |       |                                                                                                                                                                                                   |   |   |   |   |   |   |
| Effect                                  of exchange rate changes on cash                                                                      |   |                                                            | -          |                                                                                                                                                                                                   |   | (8,043 | ) |   | 20,926 |   |
|                                                                                                                                          |   |                                                            |       |                                                                                                                                                                                                   |   |   |   |   |   |   |
| Net                                  (decrease) increase in cash                                                                              |   |                                                            | (39,426    | )                                                                                                                                                                                                      |   | 36,480 |   |   | - |   |
| Cash,                                  beginning of period                                                                                    |   |                                                            | 39,426     |                                                                                                                                                                                                   |   | 2,946 |   |   | - |   |
| Cash,                                  end of period                                                                                          |   | $                                                               | -          |                                                                                                                                                                                                   | $      | 39,426 |   | $ | - |   |
|                                                                                                                                          |   |                                                            |       |                                                                                                                                                                                                   |   |   |   |   |   |   |
| Supplemental                                  disclosure of non-cash financing activities:                                                    |   |                                                            |       |                                                                                                                                                                                                   |   |   |   |   |   |   |
|                                                                                                                                          |   |                                                            |       |                                                                                                                                                                                                   |   |   |   |   |   |   |
| Warrants                                  issued for accrued consulting                                                                       |   | $                                                               | 442,070    |                                                                                                                                                                                                   | $      | - |   |   |   |   |
| Reclassification                                  of warrant liability to equity                                                              |   |                                                            | 11,050,524 |                                                                                                                                                                                                   |   | - |   |   |   |   |
| Accounts                                  payable paid by former subsidiary                                                                   |   |                                                            | 121,212    |                                                                                                                                                                                                   |   | - |   |   |   |   |
| Accrued                                  liabilities settled in common stock                                                                  |   |                                                            | 10,816     |                                                                                                                                                                                                   |   | 633,595 |   |   |   |   |
| Conversion                                  of note payable and accrued interest into preferred                                  stock        |   |                                                            | -          |                                                                                                                                                                                                   |   | 796,645 |   |   |   |   |
| Value                                  attributed to warrants issued with debt                                                                |   |                                                            | -          |                                                                                                                                                                                                   |   | 126,700 |   |   |   |   |

----

**NEW        GENERATION HOLDINGS, INC.**

**NOTES        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE        A - SUMMARY OF ACCOUNTING POLICIES**

**BUSINESS**

**GOING        CONCERN**

----

**USE        OF ESTIMATES**

**Liquidity**

**Foreign        Currency Translation**

**Income        Taxes**

**Cash        and Cash Equivalents**

**Concentrations        of Credit Risk**

----

**Fair        Value of Financial Instruments**

**Product        Development Costs**

**Advertising**

**Stock        Based Compensation**

**Comprehensive        Income**

**NET        EARNINGS (LOSS) PER SHARE**

----

**RECLASSIFICATIONS**

**NEW        ACCOUNTING PRONOUNCEMENTS**

**NOTE        B -CAPITAL STOCK**

----

**NOTE        C- WARRANTS AND STOCK OPTIONS**

**Employee        Stock Options**

|                                                      |   | **2007**   |       | **2006**                                               |   |
|-----------------------------------------------------------|--------|------------|------------|--------------------------------------------------------|--------|
|                                                      |   | **Number** |       | **Weighted                    Average Exercise Price** |   | **Number** |   | **Weighted                    Average Exercise Price** |   |
| Outstanding                    at beginning of the period |   |       | 3,700,000  |                                                   | $      | 1.29 |   |   | 3,700,000 |   | $ | 1.29 |   |
| Granted                    during the period              |   |       | —    |                                                   |   | — |   |   | — |   |   | — |   |
| Exercised                    during the period            |   |       | —    |                                                   |   | — |   |   | — |   |   | — |   |
| Expired                    during the period    |   |       | (3,700,000 | )                                                      |   | — |   |   | — |   |   | — |   |
| Outstanding                    at end of the period       |   |       | —    |                                                   | $      | — |   |   | 3,700,000 |   | $ | 1.29 |   |
| Exercisable                    at end of the period       |   |       | —    |                                                   | $      | — |   |   | 3,700,000 |   | $ | 1.29 |   |

----

**Warrants**

|                                                      |   | **2007**   |       | **2006**                                               |   |
|-----------------------------------------------------------|--------|------------|------------|--------------------------------------------------------|--------|
|                                                      |   | **Number** |       | **Weighted                    Average Exercise Price** |   | **Number** |   | **Weighted                    Average Exercise Price** |   |
| Outstanding                    at beginning of the period |   |       | 24,586,570 |                                                   | $      | 0.35 |   |   | 23,448,270 |   | $ | 0.35 |   |
| Granted                    during the period              |   |       | 1,985,584  |                                                   |   | 0.35 |   |   | 2,568,300 |   |   | 0.35 |   |
| Exercised                    during the period            |   |       | (6,840,820 | )                                                      |   | 0.35 |   |   | (1,430,000 | ) |   | — |   |
| Terminated                    during the period           |   |       | —    |                                                   |   | — |   |   | — |   |   | — |   |
| Outstanding                    at end of the period       |   |       | 19,731,334 |                                                   | $      | 0.35 |   |   | 24,586,570 |   | $ | 0.35 |   |
| Exercisable                    at end of the period       |   |       | 19,731,334 |                                                   | $      | 0.35 |   |   | 24,586,570 |   | $ | 0.35 |   |

| **Range                  of Exercise Prices** |   | **Remaining****Number****Outstanding** |       | **Weighted                  Average****Contractual                  Life****(Years)** |   | **Weighted                  Average****Exercise                  Price** |   |
|-----------------------------------------------|--------|----------------------------------------|------------|---------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------|--------|
| $0.25                                         |   |                                   | 200,000    |                                                                                  |   | .3                                                                       |   | $ | 0.25 |   |
| $0.35                                         |   |                                   | 19,531,334 |                                                                                  |   | 1.3                                                                      |   | $ | 0.35 |   |

**NOTE        D - INCOME TAXES**

| Non                    Current:                    |   |   |       |
|----------------------------------------------------|--------|--------|------------|
| Net                    operating loss carryforward |   | $      | 3,134,000  |   |
| Valuation                    allowance             |   |   | (3,134,000 | ) |
| Net                    deferred tax asset          |   | $      | —    |   |

----

**NOTE        E - ACCOUNTS PAYABLE AND ACCRUED LIABILITIES**

|                              |   | **2007** |    |
|-----------------------------------|--------|----------|---------|
| Accounts                  payable |   | $        | 136,417 |   |
| Accrued                  expenses |   |     | 362,682 |   |
| Total                             |   | $        | 499,099 |   |

**NOTE        F - RELATED PARTY TRANSACTIONS**

----

**ITEM      8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL      DISCLOSURE**

**ITEM      8A. CONTROLS AND PROCEDURES**

**ITEM      8A(T). CONTROLS AND PROCEDURES**

**Evaluation      of Disclosure Controls and Procedures**

**Evaluation      of and Report on Internal Control over Financial      Reporting**

**Changes      in Internal Control over Financial Reporting**

----

**ITEM      8B. OTHER INFORMATION**

----

**PART      III**

**ITEM      9. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS AND CORPORATE      GOVERNANCE; COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE      ACT**

**MANAGEMENT**

| **Name**                      |   | **Age** |   | **Position                and Offices with the Company**             |
|-------------------------------|--------|---------|--------|----------------------------------------------------------------------|
| Jacques                Mot    |   | 51      |   | Chairman                of the Board of Directors, President and CEO |
| Marcel                Rokegem |   | 58      |   | Director                                                             |
| Robert                Scherne |   | 51      |   | Chief                Financial Officer                               |

Jacques      Mot served as the Chairman of the Board, President and CEO from April of 1999      to      January 24, 2000 and again from February 2002 until the present. Mr. Mot was      also a Director of Argenta & Magnum Management Company Ltd. - - Gibraltar, a      company that was engaged in providing financial advisory services. From 1987      to      1992, Mr. Mot was the General Manager and Director of Iesa Investissements      S.A.,      a portfolio management and investment company, where he handled portfolio and      investment management on a confidential basis. Mr. Mot attended the University      of Lausanne, Switzerland studying economics from 1976-1979.

**SECTION      16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE**

**CODE      OF ETHICS POLICY**

----

**ITEM      10. EXECUTIVE COMPENSATION**

**SUMMARY      COMPENSATION TABLE**

| Name                  & Principal Position           |   | Year   |   | Salary                  ($) |   | Bonus                  ($) |         | Stock                  Awards ($) |   | Option                  Awards ($) |   | Non-Equity                  Incentive Plan Compensation ($) |   | Nonqualified                  Deferred Compensation Earnings ($) |    | All                  Other Compensation ($)   |   | Total                  ($) |   |
|----------------------------------------------------------|--------|--------|--------|-----------------------------|--------|----------------------------|--------------|-----------------------------------|--------|------------------------------------|--------|-------------------------------------------------------------|--------|------------------------------------------------------------------|---------|-----------------------------------------------|--------|----------------------------|--------|
| Jacques                  Mot                   |   |   | 2007   |                        |   | -                          |         |                              | -      |                               |   | -                                                           |   |                                                             | -       |                                          |   | -                          |   |   | - |   |   | - |   |   | - |   |
| Chief                  Executive     |   |   | 2006   |                   |   | 324,000                    |    |                              | -      |                               |   | -                                                           |   |                                                             | 120,134 | (1)                       |   | -                          |   |   | - |    |   | - |   |   | 444,134 |   |
| Officer                                             |   |   |        |                        |   |                            |         |                              |        |                               |   |                                                             |   |                                                             |         |                                          |   |                            |   |   |  |   |   |  |   |   |  |   |

| (1) | On                July 10, 2006, Mr. Mot was granted a five year option to purchase                3,000,000 shares of NGH common stock at an exercise price of $0.10                per                share. The options vest over a three year period with 1,000,000 options                vesting on the first, second and third anniversaries of the grant                date.                The option grant was valued using the Black Scholes option pricing                model                assuming a two year life, no expected dividend payments, a volatility                of                136% and a risk free rate of 4.9%. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Employment      Agreements**

**OUTSTANDING      EQUITY AWARDS AT FISCAL YEAR END**

**DIRECTOR      COMPENSATION**

----

**ITEM      11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND      MANAGEMENT.**

**Common      Stock**

| · | each                stockholder known by us to be the beneficial owner of more than five                percent (5%) of the outstanding shares of our common                stock; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                               |
| · | each                of our directors;                                                                                                                                              |
|   |                                                                                                                                                                               |
| · | each                of the named executive officers; and                                                                                                                           |
|   |                                                                                                                                                                               |
| · | all                of our current executive officers and directors as a                group.                                                                                      |

| **Name                  of Beneficial Owner**                                                                                                                 |   | **Number                  of Shares** **Beneficially                  Owned****(1)** |        | **Percent                  of Class****(1)** |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------|-------------|----------------------------------------------|--------|
| Jacques                  Mot (2)                                                                                                                         |   |                                                                                      | 949,582,076 |                                         |   | 95.0 | % |
| Marcel                  Rokegem                                                                                                                          |   |                                                                                      | 50,000      |                                         |   | * | % |
| Robert                  Scherne                                                                                                                          |   |                                                                                      | 79,637      |                                         |   | * | % |
| Lombard                  Odier Darier Hentsch & CIE (3) Rue                  de La Coraterie 11 1204                  Geneva, Switzerland  |   |                                                                                      | 7,700,000   |                                         |   | 8.4 | % |
| Alfons                  de Maeseneir Brusselsesteenweg                  57 B-9280                  Lebbeke, Belgium                            |   |                                                                                      | 7,150,000   |                                         |   | 8.1 | % |
|                                                                                                                                                     |   |                                                                                      |             |                                         |   |  |   |
| All                  executive officers and directors as a group (2)                                                                                     |   |                                                                                      | 949,711,713 |                                         |   | 95.0 | % |

| (1)    | Shares                of common stock subject to warrants or other instruments currently                exercisable or convertible or exercisable or convertible within 60                days of                the date hereof are deemed outstanding for computing the number of                shares                beneficially owned and the percentage of outstanding shares of the                class                held by a person holding such warrants or other instruments, but                are not                deemed outstanding for computing the percentage of any other                person. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| (2)    | Includes                91,081 shares of Series B Preferred Stock convertible into 910,810,000                shares of common stock.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| (3)    | Includes                warrants immediately exercisable to purchase 2,700,000 shares of                common                stock at a purchase price of $0.35 per                share.                                                                                                                                                                                                                                                                                                                                                                                                                                 |

**Series      B Convertible Preferred Stock**

| · | each                stockholder known by us to be the beneficial owner of more than five                percent (5%) of the outstanding shares of our Series B Convertible                Preferred Stock; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                       |
| · | each                of our directors;                                                                                                                                                                      |
|   |                                                                                                                                                                                                       |
| · | each                of the named executive officers; and                                                                                                                                                   |
|   |                                                                                                                                                                                                       |
| · | all                of our current executive officers and directors as a                group.                                                                                                              |

| **Name                  of  Beneficial Owner**                    |   | **Number                  of Shares** **Beneficially                  Owned** |   | **Percent                  of Class** |   |
|------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------|--------|---------------------------------------|--------|
| Jacques                  Mot                                      |   |                                                                               | 91,081 |                                  |   | 100.0 | % |
| Marcel                  Rokegem                                   |   |                                                                               | 0      |                                  |   | * | % |
| Robert                  Scherne                                   |   |                                                                               | 0      |                                  |   | * | % |
|                                                              |   |                                                                               |        |                                  |   |  |   |
| All                  executive officers and directors as a group  |   |                                                                               | 91,081 |                                  |   | 100.0 | % |

----

**ITEM      12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.**

----

**ITEM      13. EXHIBITS LIST**

| (a) | The                following documents are filed as part of this                Form: |
|-----|---------------------------------------------------------------------------------------|

| (b) | Exhibits |
|-----|----------|

| &                && | 3.1    | Certificate                of Incorporation                                                 |
|---------------------------------|--------|---------------------------------------------------------------------------------------------|
|                            |   |                                                                                        |
| ++                              | 3.2    | By-Laws                                                                                     |
|                            |   |                                                                                        |
| ******                          | 3.3    | Certificate                of Designation of Series B Preferred Stock                       |
|                            |   |                                                                                        |
| ++                              | 4.1    | Specimen                Certificate for Common Stock                                        |
|                            |   |                                                                                        |
| ++                              | 4.2    | Form                of Warrant at $0.35 expiring 3 years after issuance                date |

| &  | 4.3    | Form                of Warrant to Purchase Common Stock issued to certain consultants                on March                7, 2007.                                                                                                                              |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                               |
| +      | 10.1   | Consulting                Agreement of Jacques Mot dated as of April 15, 1999.                                                                                                                                                                                     |
|   |   |                                                                                                                                                                                                                                                               |
| #      | 10.2   | Form                of Subscription Agreement                                                                                                                                                                                                                      |
|   |   |                                                                                                                                                                                                                                                               |
| **     | 10.3   | Share                Exchange Agreement dated as of December 29, 2000 by and among the                Company                and New Generation Partners, Inc., on one hand, and Icare BVBA, Rapide                BVBA, Rene De Vleeschauwer and Robert Jordaens. |
|   |   |                                                                                                                                                                                                                                                               |
| ***    | 10.4   | Share                Exchange Agreement dated as of February 28, 2001 by and among the                Company                and New Generation Partners, Inc., on one hand, and Icare BVBA, Rapide                BVBA, Rene De Vleeschauwer and Robert Jordaens. |
|   |   |                                                                                                                                                                                                                                                               |
| +++    | 10.5   | Consulting                Agreement by and between New Generation Holdings, Inc and Jacques                Mot                dated as of July 5, 2000.                                                                                                            |
|   |   |                                                                                                                                                                                                                                                               |
| *      | 10.6   | Demand                Promissory Note in favor of Jacques Mot dated December 31,                2002.                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                               |
| ##     | 10.7   | Form                of Subscription Agreement for 2004 Regulation S                Offering                                                                                                                                                                        |
|   |   |                                                                                                                                                                                                                                                               |
| ****   | 10.8   | Subscription                Agreement between the Company and Alfons de Maeseneir                                                                                                                                                                                  |
|   |   |                                                                                                                                                                                                                                                               |
| ##     | 10.9   | Debt                Exchange Agreement among New Generation Holdings, Inc. New Generation                Partners, Inc. and Jacques Mot dated as of December 7,                2005.                                                                               |
|   |   |                                                                                                                                                                                                                                                               |
| ##     | 10.10  | Convertible                Promissory Note in favor of Jacques Mot dated December 7,                2005                                                                                                                                                 |
|   |   |                                                                                                                                                                                                                                                               |
| *****  | 10.11  | Engagement                Letter between New Generation Holdings, Inc. and Robert S. Scherne,                CPA,                PC dated February 10, 2006.                                                                                                       |
|   |   |                                                                                                                                                                                                                                                               |
| *****  | 10.12  | Consulting                Agreement between New Generation Holdings, Inc. and Clanders Inv.                Ltd.                dated March 15, 2006.                                                                                                               |
|   |   |                                                                                                                                                                                                                                                               |
| *****  | 10.13  | Consulting                Agreement between New Generation Holdings, Inc. and Patrick                Hellinckx dated March 15, 2006.                                                                                                                     |
|   |   |                                                                                                                                                                                                                                                               |
| *****  | 10.14  | Consulting                Agreement between New Generation Holdings, Inc. and Jan Rasschaert                dated                March 15, 2006.                                                                                                                   |
|   |   |                                                                                                                                                                                                                                                               |
| *****  | 10.15  | Consulting                Agreement between New Generation Holdings, Inc. and Polymer                Consulting Limited dated March 15,                2006.                                                                                             |

----

| *****      | 10.16  | Consulting                Agreement between New Generation Holdings, Inc. and Volarder Corp.                Ltd. dated March 15, 2006.                                                                   |
|------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|       |   |                                                                                                                                                                                                               |
| && | 10.17  | Election                to Convert and Amendment to Exchange Agreement among New Generation                Holdings, Inc., Plastinum Corp. and Jacques Mot dated as of July                10,                2006 |
|       |   |                                                                                                                                                                                                               |
| && | 10.18  | Advisory                Agreement between New Generation Holdings, Inc. and Valley Road Capital,                dated July 10, 2006.                                                                               |
|       |   |                                                                                                                                                                                                               |
| ******     | 10.19  | Debt                Exchange Agreement between New Generation Holdings, Inc. and Jacques                Mot                dated December 31, 2007.                                                                |

|  & | 31.1   | Certificate                pursuant to section 302 of the Sarbanes-Oxley Act of                2002. |
|-------------|--------|------------------------------------------------------------------------------------------------------|
|        |   |                                                                                                 |
| &       | 31.2   | Certificate                pursuant to section 302 of the Sarbanes-Oxley Act of                2002. |

| &  | 32.1   | Certificate                pursuant to section 906 of the Sarbanes-Oxley Act of                2002. |
|--------|--------|------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                 |
| &  | 32.2   | Certificate                pursuant to section 906 of the Sarbanes-Oxley Act of                2002. |

| &                    | Filed                herewith.                                                                                                                                                                                   |
|--------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                     |                                                                                                                                                                                                             |
| &&               | Incorporated                by reference to the Company’s Form 8-K filed on July 12,                2006                                                                                                   |
|                     |                                                                                                                                                                                                             |
| &&&          | Incorporated                by reference to the Company’s Form 10-KSB for the year ended December 31,                2007 filed on March 7, 2007                                                           |
|                     |                                                                                                                                                                                                             |
| +                        | Incorporated                by reference to the Company's Form 10-QSB for the period ending June                30,                1999 filed on August 23, 1999.                                                |
|                     |                                                                                                                                                                                                             |
| ++                       | Incorporated                by reference to the Company's Form 10-KSB for the period beginning                April                15, 1999 and ending December 31, 1999 filed on March 30,                2000. |
|                     |                                                                                                                                                                                                             |
| +++                      | Incorporated                by reference to the Company's Form 10-KSB for year ended December                31, 2000                filed on April 16, 2001.                                                    |
|                     |                                                                                                                                                                                                             |
| #                        | Incorporated                by reference to the Company's Form 10-QSB for the period ending June                30,                2000 filed on August 30, 2000.                                                |
|                     |                                                                                                                                                                                                             |
| ##                  | Incorporated                by reference to the Company's Form 10-KSB for year ended December                31, 2004                filed on December 7, 2005.                                             |
|                     |                                                                                                                                                                                                             |
| *                        | Incorporated                by reference to the Company's Form 10-KSB for the year ended December                31,                2002 filed on February 15, 2004.                                             |
|                     |                                                                                                                                                                                                             |
| **                       | Incorporated                by reference to the Company's Form 8-K filed on February 28,                2001                                                                                                     |
|                     |                                                                                                                                                                                                             |
| ***                      | Incorporated                by reference to the Company's Form 8-K filed on March 12,                2001                                                                                                        |
|                     |                                                                                                                                                                                                             |
| ****                     | Incorporated                by reference to the Company’s Form 8-K filed on May 12,                2005                                                                                                    |
|                     |                                                                                                                                                                                                             |
| *****                    | Incorporated                by reference to the Company's Form 10-KSB for year ended December                31, 2005                filed on April 11, 2006                                                     |
|                     |                                                                                                                                                                                                             |
| ******                   | Incorporated                by reference to the Company’s Form 8-K filed on January 3,                2008.                                                                                                |
|                     |                                                                                                                                                                                                             |

----

**ITEM      14. PRINCIPAL ACCOUNTANT FEES AND SERVICES**

**PRINCIPAL      ACCOUNTANT FEES AND SERVICES**

| **Fee                  Category**         |   | **Fiscal                  2007** **Fees** |    | **Fiscal                  2006** **Fees** |   |
|-------------------------------------------|--------|------------------------------------------------|---------|------------------------------------------------|--------|
| Audit                  Fees          |   | $                                              | 43,000  |                                           | $      | 23,000 |   |
| Audit-Related                  Fees  |   |                                           | — |                                           |   | — |   |
| Tax                  Fees            |   |                                           | 1,200   |                                           |   | — |   |
| All                  Other Fees      |   |                                           | — |                                           |   | — |   |
| Total                  Fees          |   | $                                              | 44,200  |                                           | $      | 23,000 |   |

**POLICY      ON AUDIT COMMITTEE PRE-APPROVAL OF AUDIT AND PERMISSIBLE NON-AUDIT SERVICES      OF      INDEPENDENT AUDITORS**

----

**SIGNATURES**

|         |                                                             |                                                                                                     |
|--------------|------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------|
|         | **NEW                GENERATION HOLDINGS, INC.****(Registrant)** |
|    |                                                        |                                                                                                |
|         | By:                                                    | /s/ Jacques                Mot Jacques                Mot*(Chief                Presiding Officer)* |

|   |            |                                                                                                                                                                          |
|--------|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | By:   | /s/ Jacques                MotJacques                  MotDirector                  and CEO(Principal                  Executive Officer)                                |
|   |            |
|   |            |                                                                                                                                                                          |
|   | By:   | /s/ Robert                Scherne Robert                ScherneInterim                Chief Financial Officer(Principal                Financial and Accounting Officer) |
|   |            |
|   |            |                                                                                                                                                                          |
|   | By:   | /s/ Marcel                Rokegem Marcel                RokegemDirector                                                                                                  |

----