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| Delaware                                                                                    |   | 20-4255141                                    |
|---------------------------------------------------------------------------------------------|--------|-----------------------------------------------|
| (State or other jurisdiction ofincorporation or organization) |   | (I.R.S. EmployerIdentification No.) |

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| Large      accelerated filer  ̈           |    | Accelerated      filer  ̈    |
|-----------------------------------------------|--------------|----------------------------------|
| Non-accelerated      filer    ̈ |    | Smaller      reporting company x |

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|                              | Page                                                                                                       |
|-----------------------------------|------------------------------------------------------------------------------------------------------------|
| PART I - FINANCIAL    INFORMATION |                                                                                                       |
|                              |                                                                                                       |   |
| Item      1.                      | Financial      Statements (Unaudited)                                                                      | 3 |
|                              | Condensed      Consolidated Balance Sheet                                                                  | 3 |
|                              | Condensed      Consolidated Statements of Losses                                                           | 4 |
|                              | Condensed      Consolidated Statement of Stockholders’ Deficiency                                    | 5 |
|                              | Condensed      Consolidated Statements of Cash Flows                                                       | 6 |
|                              | Notes      to Condensed Consolidated Financial Statements                                                  | 7 |
| Item      2.                      | Management’s      Discussion and Analysis of Financial Condition and Results of      Operations | 11 |
| Item      3.                      | Quantitative      and Qualitative Disclosures About Market Risk                                            | 15 |
| Item      4.                      | Controls      and Procedures                                                                               | 15 |
| Item 4T.                     | Controls      and Procedures                                                                               | 15 |
|                              |                                                                                                       |   |
| PART II - OTHER INFORMATION       |                                                                                                       |
|                              |                                                                                                       |
| Item      1.                      | Legal      Proceedings                                                                                     | 17 |
| Item      1A.                     | Risk      Factors                                                                                          | 17 |
| Item      2.                      | Unregistered      Sales of Equity Securities and Use of Proceeds                                           | 17 |
| Item      3.                      | Defaults      Upon Senior Securities                                                                       | 17 |
| Item      4.                      | Submission      of Matters to a Vote of Security Holders                                                   | 17 |
| Item      5.                      | Other      Information                                                                                     | 17 |
| Item      6.                      | Exhibits                                                                                                   | 18 |

----

| ITEM 1. | FINANCIAL STATEMENTS      (UNAUDITED) |
|---------|---------------------------------------|

|                                                                                                                       |   | March 31, |        |   | December 31, |   |
|----------------------------------------------------------------------------------------------------------------------------|--------|----------------|-------------|--------|-------------------|--------|
|                                                                                                                       |   | 2009           |        |   | 2008              |   |
|                                                                                                                       |   | (Unaudited)    |        |   |              |   |
| Assets                                                                                                                     |   |           |        |   |              |   |
|                                                                                                                       |   |           |        |   |              |   |
| Current      assets:                                                                                                       |   |           |        |   |              |   |
| Cash                                                                                                                       |   | $              | -           |   |              | $      | - |   |
|                                                                                                                       |   |           |        |   |              |   |   |   |
| Total      assets                                                                                                          |   | $              | -           |   |              | $      | - |   |
|                                                                                                                       |   |           |        |   |              |   |   |   |
| Liabilities      and deficiency in stockholders' equity                                                                    |   |           |        |   |              |   |   |   |
|                                                                                                                       |   |           |        |   |              |   |   |   |
| Current      liabilities:                                                                                                  |   |           |        |   |              |   |   |   |
|                                                                                                                       |   |           |        |   |              |   |   |   |
| Accounts      payable and accrued expenses:                                                                                |   | $              | 519,195     |   |              | $      | 500,945 |   |
|                                                                                                                       |   |           |        |   |              |   |   |   |
| Total      current liabilities                                                                                             |   |           | 519,195     |   |              |   | 500,945 |   |
|                                                                                                                       |   |           |        |   |              |   |   |   |
| Deficiency      in stockholders' equity:                                                                                   |   |           |        |   |              |   |   |   |
|                                                                                                                       |   |           |        |   |              |   |   |   |
| Preferred      stock, par value $.001 per share; 1,000,000 shares authorized, none issued      and outstanding             |   |           | -           |   |              |   | - |   |
| Common      stock, par value $.001 per share; 150,000,000 shares authorized,      99,956,045 shares issued and outstanding |   |           | 99,956      |   |              |   | 99,956 |   |
| Additional      paid-in capital                                                                                            |   |           | 38,671,184  |   |              |   | 38,671,184 |   |
| Other      comprehensive income                                                                                            |   |           | 20,926      |   |              |   | 20,926 |   |
| Accumulated      deficit prior to development stage                                                                        |   |           | (31,081,731 | )      |              |   | (31,081,731 | ) |
| Deficit      accumulated during the development stage                                                                      |   |           | (8,229,530  | )      |              |   | (8,211,280 | ) |
|                                                                                                                       |   |           |        |   |              |   |   |   |
| Total      deficiency in stockholders' equity                                                                              |   |           | (519,195    | )      |              |   | (500,945 | ) |
|                                                                                                                       |   |           |        |   |              |   |   |   |
| Total      liabilities and deficiency in stockholders' equity                                                              |   | $              | -           |   |              | $      | - |   |

----

|                                                        |   |                                             |       |   |           |   |       | Cumulative Period            |   |
|-------------------------------------------------------------|--------|--------------------------------------------------|------------|--------|----------------|--------|------------|-----------------------------------|--------|
|                                                        |   |                                             |       |   |           |   |       | from April 7, 2003 |   |
|                                                        |   |                                             |       |   |           |   |       | (Reestablishment of          |   |
|                                                        |   |                                             |       |   |           |   |       | Development Stage            |   |
|                                                        |   |                                             |       |   |           |   |       | Company) to                  |   |
|                                                        |   | Three Months ended March 31, |       |   | March 31, |   |
|                                                        |   | 2009                                             |       |   | 2008           |   |       | 2009                              |   |
|                                                        |   |                                             |       |   |           |   |       |                              |   |
|                                                        |   |                                             |       |   |           |   |       |                              |   |
| Operating      expenses:                                    |   |                                             |       |   |           |   |       |                              |   |
| General      and administrative expenses                    |   | $                                                | 18,250     |   |           | $      | 26,201     |                              |   | $ | 1,178,711 |   |
|                                                        |   |                                             |       |   |           |   |       |                              |   |   |   |   |
| Total      operating expenses                               |   |                                             | 18,250     |   |           |   | 26,201     |                              |   |   | 1,178,711 |   |
|                                                        |   |                                             |       |   |           |   |       |                              |   |   |   |   |
| Loss      from continuing operations before                 |   |                                             |       |   |           |   |       |                              |   |   |   |   |
| other      income (expense)                                 |   |                                             | (18,250    | )      |           |   | (26,201    | )                                 |   |   | (1,178,711 | ) |
|                                                        |   |                                             |       |   |           |   |       |                              |   |   |   |   |
| Change      in value of warrant liability                   |   |                                             | -          |   |           |   | -          |                              |   |   | (6,254,174 | ) |
| Interest      expense                                       |   |                                             | -          |   |           |   | -          |                              |   |   | (796,645 | ) |
|                                                        |   |                                             |       |   |           |   |       |                              |   |   |   |   |
| Loss      from continuing operations                        |   |                                             |       |   |           |   |       |                              |   |   |   |   |
| before      provision for income taxes                      |   |                                             | (18,250    | )      |           |   | (26,201    | )                                 |   |   | (8,229,530 | ) |
|                                                        |   |                                             |       |   |           |   |       |                              |   |   |   |   |
| Provision      for income taxes                             |   |                                             | -          |   |           |   | -          |                              |   |   | - |   |
|                                                        |   |                                             |       |   |           |   |       |                              |   |   |   |   |
| Net      loss from continuing operations                    |   |                                             | (18,250    | )      |           |   | (26,201    | )                                 |   |   | (8,229,530 | ) |
|                                                        |   |                                             |       |   |           |   |       |                              |   |   |   |   |
| Loss      from discontinued operations, net of tax          |   |                                             | -          |   |           |   | -          |                              |   |   | (5,267,038 | ) |
|                                                        |   |                                             |       |   |           |   |       |                              |   |   |   |   |
| Net      loss                                               |   | $                                                | (18,250    | )      |           | $      | (26,201    | )                                 |   | $ | (13,496,568 | ) |
|                                                        |   |                                             |       |   |           |   |       |                              |   |   |   |   |
| Net      loss per common share, basic and diluted           |   | $                                                | (0.00      | )      |           | $      | (0.00      | )                                 |   |   |   |   |
|                                                        |   |                                             |       |   |           |   |       |                              |   |   |   |   |
| Weighted      average shares outstanding, basic and diluted |   |                                             | 99,956,045 |   |           |   | 88,749,973 |                              |   |   |   |   |
|                                                        |   |                                             |       |   |           |   |       |                              |   |   |   |   |
| Comprehensive      loss:                                    |   |                                             |       |   |           |   |       |                              |   |   |   |   |
| Net      loss                                               |   | $                                                | (18,250    | )      |           | $      | (26,201    | )                                 |   |   |   |   |
| Foreign      currency translation loss                      |   |                                             | -          |   |           |   | -          |                              |   |   |   |   |
|                                                        |   |                                             |       |   |           |   |       |                              |   |   |   |   |
| Comprehensive      loss                                     |   | $                                                | (18,250    | )      |           | $      | (26,201    | )                                 |   |   |   |   |

----

|                                                                                                             |   |                 |     |   |              |   |   |    |   |   |           |   |   |        |   |   |        |   |       | Accumulated      Deficit |   |   |          |   |   |   |        |
|------------------------------------------------------------------------------------------------------------------|--------|----------------------|----------|--------|-------------------|--------|--------|---------|--------|--------|----------------|--------|--------|-------------|--------|--------|-------------|--------|------------|--------------------------|--------|--------|---------------|--------|--------|--------|-------------|
|                                                                                                             |   |                 |     |   |              |   |   |    |   |   |           |   |   | Additional  |   |   | Common      |   |       | Prior      to            |   |   | During        |   |   | Other  |        |   |   |   |
|                                                                                                             |   | Preferred      Stock |     |   | Common      Stock |   |   | Paid-in |   |   | Stock          |   |   | Development |   |   | Development |   |       | Comprehensive            |   |   | Stockholders' |   |
|                                                                                                             |   | Shares               |     |   | Par      value    |   |   | Shares  |   |   | Par      value |   |   | Capital     |   |   | Subscribed  |   |       | Stage                    |   |   | Stage         |   |   | Income |        |   | Deficiency |   |
|                                                                                                             |   |                 |     |   |              |   |   |    |   |   |           |   |   |        |   |   |        |   |       |                     |   |   |          |   |   |   |        |   |   |   |
| Balance,      December 31, 2002                                                                                  |   |                 | -        |   |              | $      | -      |    |   |   | 2,105,716      |   |   | $           | 2,106  |   |        | $      | 29,655,004 |                     |   | $      | -             |   |   | $      | (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                                                                                      |   |                 | -        |   |              |   | -      |    |   |   | 2,105,716      |   |   |        | 2,106  |   |        |   | 29,655,004 |                     |   |   | -             |   |   |   | (31,081,731 | ) |   |   | - |   |   |   | - |   |   |   | (1,424,621 | ) |
|                                                                                                             |   |                 |     |   |              |   |   |    |   |   |           |   |   |        |   |   |        |   |       |                     |   |   |          |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss                                                                                                    |   |                 | -        |   |              |   | -      |    |   |   | -              |   |   |        | -      |   |        |   | -          |                     |   |   | -             |   |   |   | -           |   |   |   | (330,321 | ) |   |   | - |   |   |   | (330,321 | ) |
|                                                                                                             |   |                 |     |   |              |   |   |    |   |   |           |   |   |        |   |   |        |   |       |                     |   |   |          |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,      December 31, 2003                                                                                  |   |                 | -        |   |              |   | -      |    |   |   | 2,105,716      |   |   |        | 2,106  |   |        |   | 29,655,004 |                     |   |   | -             |   |   |   | (31,081,731 | ) |   |   | (330,321 | ) |   |   | - |   |   |   | (1,754,942 | ) |
|                                                                                                             |   |                 |     |   |              |   |   |    |   |   |           |   |   |        |   |   |        |   |       |                     |   |   |          |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sale      of common stock                                                                                        |   |                 | -        |   |              |   | -      |    |   |   | 650,012        |   |   |        | 650    |   |        |   | 649,364    |                     |   |   | -             |   |   |   | -           |   |   |   | - |   |   |   | - |   |   |   | 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                                                                                  |   |                 | -        |   |              |   | -      |    |   |   | 2,755,728      |   |   |        | 2,756  |   |        |   | 30,304,368 |                     |   |   | 54,600        |   |   |   | (31,081,731 | ) |   |   | (951,091 | ) |   |   | 14,383 |   |   |   | (1,656,715 | ) |
|                                                                                                             |   |                 |     |   |              |   |   |    |   |   |           |   |   |        |   |   |        |   |       |                     |   |   |          |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sale      of common stock                                                                                        |   |                 | -        |   |              |   | -      |    |   |   | 1,801,415      |   |   |        | 1,801  |   |        |   | 1,799,614  |                     |   |   | -             |   |   |   | -           |   |   |   | - |   |   |   | - |   |   |   | 1,801,415 |   |
|                                                                                                             |   |                 |     |   |              |   |   |    |   |   |           |   |   |        |   |   |        |   |       |                     |   |   |          |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Warrants      issued for services                                                                                |   |                 | -        |   |              |   | -      |    |   |   | -              |   |   |        | -      |   |        |   | 21,100     |                     |   |   | -             |   |   |   | -           |   |   |   | - |   |   |   | - |   |   |   | 21,100 |   |
|                                                                                                             |   |                 |     |   |              |   |   |    |   |   |           |   |   |        |   |   |        |   |       |                     |   |   |          |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      physically issued                                                                                    |   |                 | -        |   |              |   | -      |    |   |   | 54,600         |   |   |        | 55     |   |        |   | 54,545     |                     |   |   | (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                                                                                  |   |                 | -        |   |              |   | -      |    |   |   | 4,611,743      |   |   |        | 4,612  |   |        |   | 28,656,965 |                     |   |   | 131,300       |   |   |   | (31,081,731 | ) |   |   | (5,694,651 | ) |   |   | 28,969 |   |   |   | (7,954,536 | ) |
|                                                                                                             |   |                 |     |   |              |   |   |    |   |   |           |   |   |        |   |   |        |   |       |                     |   |   |          |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      physically issued                                                                                    |   |                 | -        |   |              |   | -      |    |   |   | 131,300        |   |   |        | 131    |   |        |   | 131,169    |                     |   |   | (131,300      | )      |   |   | -           |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                                             |   |                 |     |   |              |   |   |    |   |   |           |   |   |        |   |   |        |   |       |                     |   |   |          |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sale      of common stock                                                                                        |   |                 | -        |   |              |   | -      |    |   |   | 256,830        |   |   |        | 257    |   |        |   | 256,573    |                     |   |   |          |   |   |   | -           |   |   |   | - |   |   |   | - |   |   |   | 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    |    |   |   | 4,999,873      |   |   | $           | 5,000  |   |        | $      | 30,321,003 |                     |   | $      | -             |   |   | $      | (31,081,731 | ) |   | $ | (14,278,247 | ) |   | $ | 20,926 |   |   | $ | (15,012,520 | ) |
|                                                                                                             |   |                 |     |   |              |   |   |    |   |   |           |   |   |        |   |   |        |   |       |                     |   |   |          |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common      stock issued upon conversion  of preferred stock                                           |   |                 | (528,630 | )      |              |   | (529   | )       |   |   | 3,867,208      |   |   |        | 3,867  |   |        |   | (3,338     | )                        |   |   |          |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   | - |   |
|                                                                                                             |   |                 |     |   |              |   |   |    |   |   |           |   |   |        |   |   |        |   |       |                     |   |   |          |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 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                                                                    |   |                 |     |   |              |   |   |    |   |   | 7,964          |   |   |        | 8      |   |        |   | 10,808     |                     |   |   |          |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   | 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                                                                                  |   |                 | -        |   |              |   | -      |    |   |   | 8,875,045      |   |   |        | 8,875  |   |        |   | 38,283,314 |                     |   |   | -             |   |   |   | (31,081,731 | ) |   |   | (8,129,954 | ) |   |   | 20,926 |   |   |   | (898,570 | ) |
|                                                                                                             |   |                 |     |   |              |   |   |    |   |   |           |   |   |        |   |   |        |   |       |                     |   |   |          |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred      stock issued as payment of  debt to stockholder                                         |   |                 | 91,081   |   |              |   | 91     |    |   |   | -              |   |   |        | -      |   |        |   | 207,338    |                     |   |   | -             |   |   |   | -           |   |   |   | - |   |   |   | - |   |   |   | 207,429 |   |
|                                                                                                             |   |                 |     |   |              |   |   |    |   |   |           |   |   |        |   |   |        |   |       |                     |   |   |          |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Beneficial      conversion feature of preferred stock                                                            |   |                 | -        |   |              |   | -      |    |   |   | -              |   |   |        | -      |   |        |   | 207,429    |                     |   |   | -             |   |   |   | -           |   |   |   | - |   |   |   | - |   |   |   | 207,429 |   |
|                                                                                                             |   |                 |     |   |              |   |   |    |   |   |           |   |   |        |   |   |        |   |       |                     |   |   |          |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividend      on preferred stock attributable to beneficial conversion      feature                              |   |                 | -        |   |              |   | -      |    |   |   | -              |   |   |        | -      |   |        |   | (207,429   | )                        |   |   | -             |   |   |   | -           |   |   |   | - |   |   |   | - |   |   |   | (207,429 | ) |
|                                                                                                             |   |                 |     |   |              |   |   |    |   |   |           |   |   |        |   |   |        |   |       |                     |   |   |          |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common      stock issued upon conversion  of preferred stock                                           |   |                 | (91,081  | )      |              |   | (91    | )       |   |   | 91,081,000     |   |   |        | 91,081 |   |        |   | (90,990    | )                        |   |   | -             |   |   |   | -           |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                                             |   |                 |     |   |              |   |   |    |   |   |           |   |   |        |   |   |        |   |       |                     |   |   |          |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Payment      of debt by stockholder                                                                              |   |                 | -        |   |              |   | -      |    |   |   | -              |   |   |        | -      |   |        |   | 271,522    |                     |   |   | -             |   |   |   | -           |   |   |   | - |   |   |   | - |   |   |   | 271,522 |   |
|                                                                                                             |   |                 |     |   |              |   |   |    |   |   |           |   |   |        |   |   |        |   |       |                     |   |   |          |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss                                                                                                    |   |                 | -        |   |              |   | -      |    |   |   | -              |   |   |        | -      |   |        |   | -          |                     |   |   | -             |   |   |   | -           |   |   |   | (81,326 | ) |   |   | - |   |   |   | (81,326 | ) |
|                                                                                                             |   |                 |     |   |              |   |   |    |   |   |           |   |   |        |   |   |        |   |       |                     |   |   |          |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,      December 31, 2008                                                                                  |   |                 | -        |   |              |   | -      |    |   |   | 99,956,045     |   |   |        | 99,956 |   |        |   | 38,671,184 |                     |   |   | -             |   |   |   | (31,081,731 | ) |   |   | (8,211,280 | ) |   |   | 20,926 |   |   |   | (500,945 | ) |
|                                                                                                             |   |                 |     |   |              |   |   |    |   |   |           |   |   |        |   |   |        |   |       |                     |   |   |          |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss                                                                                                    |   |                 | -        |   |              |   | -      |    |   |   | -              |   |   |        | -      |   |        |   | -          |                     |   |   | -             |   |   |   | -           |   |   |   | (18,250 | ) |   |   | - |   |   |   | (18,250 | ) |
|                                                                                                             |   |                 |     |   |              |   |   |    |   |   |           |   |   |        |   |   |        |   |       |                     |   |   |          |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,      March 31, 2009 (Unaudited)                                                                         |   |                 | -        |   |              | $      | -      |    |   |   | 99,956,045     |   |   | $           | 99,956 |   |        | $      | 38,671,184 |                     |   | $      | -             |   |   | $      | (31,081,731 | ) |   | $ | (8,229,530 | ) |   | $ | 20,926 |   |   | $ | (519,195 | ) |

----

|                                                           |   |                                             |    |   |           |   |    | Cumulative Period            |   |
|----------------------------------------------------------------|--------|--------------------------------------------------|---------|--------|----------------|--------|---------|-----------------------------------|--------|
|                                                           |   |                                             |    |   |           |   |    | from April 7, 2003 |   |
|                                                           |   |                                             |    |   |           |   |    | (Reestablishment of          |   |
|                                                           |   |                                             |    |   |           |   |    | Development Stage            |   |
|                                                           |   |                                             |    |   |           |   |    | Company) to                  |   |
|                                                           |   | Three Months ended March 31, |    |   | March 31, |   |
|                                                           |   | 2009                                             |    |   | 2008           |   |    | 2009                              |   |
|                                                           |   |                                             |    |   |           |   |    |                              |   |
| Cash      flows from operating activities:                     |   |                                             |    |   |           |   |    |                              |   |
| Net      income (loss)                                         |   | $                                                | (18,250 | )      |           | $      | (26,201 | )                                 |   | $ | (13,496,568 | ) |
| Adjustments      to reconcile net loss to net                  |   |                                             |    |   |           |   |    |                              |   |   |   |   |
| cash      used in operating activities:                        |   |                                             |    |   |           |   |    |                              |   |   |   |   |
| Warrants      issued for services                              |   |                                             | -       |   |           |   | -       |                              |   |   | 21,100 |   |
| Stock      based compensation                                  |   |                                             | -       |   |           |   | -       |                              |   |   | 154,172 |   |
| Amortization      of debt discount                             |   |                                             | -       |   |           |   | -       |                              |   |   | 774,481 |   |
| Change      in value of warrant liability                      |   |                                             | -       |   |           |   | -       |                              |   |   | 6,254,174 |   |
| Expenses      paid by Plastinum                                |   |                                             | -       |   |           |   | 18,943  |                              |   |   | 141,856 |   |
| Gain      on settlement of payables                            |   |                                             |    |   |           |   | -       |                              |   |   | (44,675 | ) |
| Interest      converted to preferred stock                     |   |                                             | -       |   |           |   | -       |                              |   |   | 43,341 |   |
| Depreciation                                                   |   |                                             | -       |   |           |   | -       |                              |   |   | 107,790 |   |
| Loss      attributed to minority interest                      |   |                                             | -       |   |           |   | -       |                              |   |   | (46,366 | ) |
| Increase      (decrease) in liabilities:                       |   |                                             |    |   |           |   |    |                              |   |   |   |   |
| Accounts      payable                                          |   |                                             | 18,250  |   |           |   | 7,258   |                              |   |   | 1,499,572 |   |
|                                                           |   |                                             |    |   |           |   |    |                              |   |   |   |   |
| Cash      used in operating activities                         |   |                                             | -       |   |           |   | -       |                              |   |   | (4,591,123 | ) |
|                                                           |   |                                             |    |   |           |   |    |                              |   |   |   |   |
| Cash      flows from financing activities:                     |   |                                             |    |   |           |   |    |                              |   |   |   |   |
| Cash      retained by former subsidiary                        |   |                                             | -       |   |           |   | -       |                              |   |   | (36,893 | ) |
| Advances      from stockholder                                 |   |                                             | -       |   |           |   | -       |                              |   |   | 712,335 |   |
| Proceeds      from sale of convertible notes                   |   |                                             | -       |   |           |   | -       |                              |   |   | 500,000 |   |
| Proceeds      from sale of common stock                        |   |                                             | -       |   |           |   | -       |                              |   |   | 3,394,755 |   |
|                                                           |   |                                             |    |   |           |   |    |                              |   |   |   |   |
| Cash      provided by financing activities                     |   |                                             | -       |   |           |   | -       |                              |   |   | 4,570,197 |   |
|                                                           |   |                                             |    |   |           |   |    |                              |   |   |   |   |
| Effect      of exchange rate changes on cash                   |   |                                             | -       |   |           |   | -       |                              |   |   | 20,926 |   |
|                                                           |   |                                             |    |   |           |   |    |                              |   |   |   |   |
| Net      (decrease) increase in cash                           |   |                                             | -       |   |           |   | -       |                              |   |   | - |   |
| Cash,      beginning of period                                 |   |                                             | -       |   |           |   | -       |                              |   |   | - |   |
| Cash,      end of period                                       |   | $                                                | -       |   |           | $      | -       |                              |   | $ | - |   |
|                                                           |   |                                             |    |   |           |   |    |                              |   |   |   |   |
| Supplemental      disclosure of non-cash financing activities: |   |                                             |    |   |           |   |    |                              |   |   |   |   |
|                                                           |   |                                             |    |   |           |   |    |                              |   |   |   |   |
| Expenses      paid by former subsidiary                        |   | $                                                | -       |   |           | $      | 18,943  |                              |   |   |   |   |

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| ITEM 2. | MANAGEMENT'S DISCUSSION AND      ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATION |
|---------|------------------------------------------------------------------------------------------------|

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| ITEM 3. | QUANTITATIVE AND QUALITATIVE      DISCLOSURES ABOUT MARKETRISK |
|---------|----------------------------------------------------------------|

| ITEM 4. | CONTROLS AND      PROCEDURES |
|---------|------------------------------|

| ITEM 4T. | CONTROLS AND      PROCEDURES |
|----------|------------------------------|

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|   | Exhibit      No. |   | Description                                                                                        |
|--------|------------------|--------|----------------------------------------------------------------------------------------------------|
|   |             |   |                                                                                               |
| **     | 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 issuancedate                                  |
|   |             |   |                                                                                               |
| ***    | 4.3              |   | Form      of Warrant to Purchase Common Stock issued to certain consultants on March      7, 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 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 ended March 31,      2007 filed on May 11, 2007                                  |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                              |
| ****   | 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 8-K filed on January 3,      2008.                                                                     |

----

|                         | NEW      GENERATION HOLDINGS, INC.(Registrant) |
|------------------------------|------------------------------------------------|
|                    |                                           |              |
| Date: May      15, 2009 | By:                                       | /s/      Jacques Mot |
|                         |                                           | Name: Jacques MotTitle: President and Chief Executive Officer |
|                         |                                           |          |
| Date: May      15, 2009 | By:                                            | /s/      Robert Scherne |
|                         |                                           | Name: Robert ScherneTitle: Interim      Chief Financial Officer |

----