**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

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**FORM      10-QSB**

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**x**
**   QUARTERLY      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 small business issuer 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) |

**APPLICABLE      ONLY TO CORPORATE ISSUERS**

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**NEW      GENERATION HOLDINGS, INC.**

**Form      10-QSB**

**For      the Quarter Ended June 30, 2007**

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**TABLE      OF CONTENTS**

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|                                                |                                                                                                           | Page   |
|-----------------------------------------------------|----------------------------------------------------------------------------------------------------------------|--------|
|                                                |                                                                                                           |   |
| **PART                  I - FINANCIAL INFORMATION** |
| Item                  1.                            | Financial                  Statements (Unaudited)                                                              |   |
|                                                | Condensed                  Consolidated Balance Sheet                                                          | 3      |
|                                                | Condensed                  Consolidated Statements of Operations                                               | 4      |
|                                                | Condensed                  Consolidated Statement of Deficiency in Stockholders’                  Equity | 5      |
|                                                | Condensed                  Consolidated Statements of Cash Flows                                               | 6      |
|                                                | Notes                  to Condensed Consolidated Financial Statements                                          | 7      |
| Item                  2.                            | Management’s                  Discussion and Analysis or Plan of Operation                          | 11     |
| Item                  3.                            | Controls                  and Procedures                                                                       | 13     |
|                                                |                                                                                                           |   |
| **PART                  II - OTHER INFORMATION**    |
| Item                  1.                            | Legal                  Proceedings                                                                             | 15     |
| Item                  2.                            | Unregistered                  Sales of Equity Securities and Use of Proceeds                                   | 15     |
| Item                  3.                            | Defaults                  Upon Senior Securities                                                               | 15     |
| Item                  4.                            | Submission                  of Matters to a Vote of Security Holders                                           | 15     |
| Item                  5 .                           | Other                  Information                                                                             | 15     |
| Item                  6.                            | Exhibits                                                                                                       | 15     |

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| Assets                                                                                                            |   |   |        |
|-------------------------------------------------------------------------------------------------------------------|--------|--------|-------------|
|                                                                                                              |   |   |        |
| Current                      assets:                                                                              |   |   |        |
| Cash                                                                                                              |   | $      | -           |   |
|                                                                                                              |   |   |        |   |
| Total                      assets                                                                                 |   | $      | -           |   |
|                                                                                                              |   |   |        |   |
| Liabilities                      and deficiency in stockholders' equity                                           |   |   |        |   |
|                                                                                                              |   |   |        |   |
| Current                      liabilities:                                                                         |   |   |        |   |
|                                                                                                              |   |   |        |   |
| Accounts                      payable and accrued expenses:                                                       |   | $      | 632,105     |   |
| Due                      to Plastinum                                                                             |   |   | 114,167     |   |
| Due                      to stockholder                                                                           |   |   | 207,429     |   |
|                                                                                                              |   |   |        |   |
| Total                      current liabilities                                                                    |   |   | 953,701     |   |
|                                                                                                              |   |   |        |   |
| 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, |   |   |        |   |
| 88,749,973                      shares issued and outstanding                                                     |   |   | 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                                             |   |   | (8,185,085  | ) |
|                                                                                                              |   |   |        |   |
| Total                      deficiency in stockholders' equity                                                     |   |   | (953,701    | ) |
|                                                                                                              |   |   |        |   |
| Total                      liabilities and deficiency in stockholders' equity                                     |   | $      | -           |   |

----

|                                                                 |   | Three                        months ended June 30, |       | Six                        months ended June 30, |   | Cumulative                            Period from                              April 7, 2003 (Reestablishment                                of Development                                  Stage Company)                                    toJune                          30, |   |
|----------------------------------------------------------------------|--------|----------------------------------------------------|------------|--------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                 |   | 2007                                               |       | 2006                                             |   | 2007                                                                                                                                                                                                                                                                               |   | 2006 |   | 2007 |   |
| Operating                        expenses:                           |   |                                               |       |                                             |   |                                                                                                                                                                                                                                                                               |   |   |   |   |   |
| General                        and administrative expenses           |   | $                                                  | 35,295     |                                             | $      | 48,170                                                                                                                                                                                                                                                                             |   | $ | 80,484 |   | $ | 130,609 |   | $ | 1,134,266 |   |
|                                                                 |   |                                               |       |                                             |   |                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |
| Total                        operating expenses                      |   |                                               | 35,295     |                                             |   | 48,170                                                                                                                                                                                                                                                                             |   |   | 80,484 |   |   | 130,609 |   |   | 1,134,266 |   |
|                                                                 |   |                                               |       |                                             |   |                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |
| Loss                        from continuing operations before        |   |                                               |       |                                             |   |                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |
| other                        income (expense)                        |   |                                               | (35,295    | )                                                |   | (48,170                                                                                                                                                                                                                                                                            | )      |   | (80,484 | ) |   | (130,609 | ) |   | (1,134,266 | ) |
|                                                                 |   |                                               |       |                                             |   |                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |
| Change                        in value of warrant liability          |   |                                               | -          |                                             |   | 1,361,347                                                                                                                                                                                                                                                                          |   |   | 1,102,832 |   |   | 1,606,326 |   |   | (6,254,174 | ) |
| Interest                        expense                              |   |                                               | -          |                                             |   | (18,833                                                                                                                                                                                                                                                                            | )      |   | - |   |   | (37,666 | ) |   | (796,645 | ) |
|                                                                 |   |                                               |       |                                             |   |                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |
| Income                        (loss) from continuing operations      |   |                                               |       |                                             |   |                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |
| before                        provision for income taxes             |   |                                               | (35,295    | )                                                |   | 1,294,344                                                                                                                                                                                                                                                                          |   |   | 1,022,348 |   |   | 1,438,051 |   |   | (8,185,085 | ) |
|                                                                 |   |                                               |       |                                             |   |                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |
| Provision                        for income taxes                    |   |                                               | -          |                                             |   | -                                                                                                                                                                                                                                                                                  |   |   | - |   |   | - |   |   | - |   |
|                                                                 |   |                                               |       |                                             |   |                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |
| Net                        income (loss) from continuing operations  |   |                                               | (35,295    | )                                                |   | 1,294,344                                                                                                                                                                                                                                                                          |   |   | 1,022,348 |   |   | 1,438,051 |   |   | (8,185,085 | ) |
|                                                                 |   |                                               |       |                                             |   |                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |
| Loss                        from discontinued operations, net of tax |   |                                               | -          |                                             |   | (541,726                                                                                                                                                                                                                                                                           | )      |   | (196,224 | ) |   | (725,230 | ) |   | (5,267,038 | ) |
|                                                                 |   |                                               |       |                                             |   |                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |
| Net                        income (loss)                             |   | $                                                  | (35,295    | )                                                | $      | 752,618                                                                                                                                                                                                                                                                            |   | $ | 826,124 |   | $ | 712,821 |   | $ | (13,452,123 | ) |
|                                                                 |   |                                               |       |                                             |   |                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |
| Net                        income (loss) per common share, basic     |   |                                               |       |                                             |   |                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |
| Continuing                        operations                         |   | $                                                  | -          |                                             | $      | 0.03                                                                                                                                                                                                                                                                               |   | $ | 0.01 |   | $ | 0.03 |   |   |   |   |
| Discontinued                        operations                       |   |                                               | -          |                                             |   | (0.01                                                                                                                                                                                                                                                                              | )      |   | - |   |   | (0.02 | ) |   |   |   |
|                                                                 |   | $                                                  | -          |                                             | $      | 0.02                                                                                                                                                                                                                                                                               |   | $ | 0.01 |   | $ | 0.01 |   |   |   |   |
|                                                                 |   |                                               |       |                                             |   |                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |
| Net                        income (loss) per common share, diluted   |   |                                               |       |                                             |   |                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |
| Continuing                        operations                         |   | $                                                  | -          |                                             | $      | 0.03                                                                                                                                                                                                                                                                               |   | $ | 0.01 |   | $ | 0.03 |   |   |   |   |
| Discontinued                        operations                       |   |                                               | -          |                                             |   | (0.01                                                                                                                                                                                                                                                                              | )      |   | - |   |   | (0.02 | ) |   |   |   |
|                                                                 |   | $                                                  | -          |                                             | $      | 0.02                                                                                                                                                                                                                                                                               |   | $ | 0.01 |   | $ | 0.01 |   |   |   |   |
|                                                                 |   |                                               |       |                                             |   |                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |
| Weighted                        average shares outstanding, basic    |   |                                               | 88,746,472 |                                             |   | 48,428,670                                                                                                                                                                                                                                                                         |   |   | 78,025,721 |   |   | 47,507,676 |   |   |   |   |
| Weighted                        average shares outstanding, diluted  |   |                                               | 88,746,472 |                                             |   | 50,000,000                                                                                                                                                                                                                                                                         |   |   | 78,025,721 |   |   | 50,000,000 |   |   |   |   |
|                                                                 |   |                                               |       |                                             |   |                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |
| Comprehensive                        income (loss):                  |   |                                               |       |                                             |   |                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |
| Net                        income (loss)                             |   | $                                                  | (35,295    | )                                                | $      | 752,618                                                                                                                                                                                                                                                                            |   | $ | 826,124 |   | $ | 712,821 |   |   |   |   |
| Foreign                        currency translation loss             |   |                                               | -          |                                             |   | (122                                                                                                                                                                                                                                                                               | )      |   | - |   |   | (3,713 | ) |   |   |   |
|                                                                 |   |                                               |       |                                             |   |                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |
| Comprehensive                        income (loss)                   |   | $                                                  | (35,295    | )                                                | $      | 752,496                                                                                                                                                                                                                                                                            |   | $ | 826,124 |   | $ | 709,108 |   |   |   |   |

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|                                                                                                 |   |                               |     |                            |   |    |   |                         |       |        |   |        |   | 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                                                        |   |                               | -        |                            | $      | -       |   |                         | 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                                                                        |   |                               |     |                            |   |    |   |                         |       |        |   |        |   |                                   |       |          |   |     |   |   |   |   |   | 826,124 |   |   |   |   |   | 826,124 |   |
|                                                                                                 |   |                               |     |                            |   |    |   |                         |       |        |   |        |   |                                   |       |          |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Adjustment                    for deconsolidation of former subsidiary                               |   |                               |     |                            |   |    |   |                         |       |        |   |        |   |                                   | (3,451,657 | )             |   |     |   |   |   |   |   | 5,267,038  |   |   |   |   |   | 1,815,38  |   |
|                                                                                                 |   |                               |     |                            |   |    |   |                         |       |        |   |        |   |                                   |       |          |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                    June 30, 2007                                                            |   |                               | -        |                            | $      | -       |   | $                            | 88,749,973 |        | $      | 88,750      |   | $                                      | 38,203,439 |          | $      | -        |   | $ | (31,081,731 | ) | $ | (8,185,085 | ) | $ | 20,926 |   | $ | (953,701 | ) |

----

|                                                                         |   | Six                    Months ended June 30, |       | Cumulative                      Period from                        April 7, 2003 (Reestablishment                          of Development                            Stage Company)                              toJune                    30, |   |
|------------------------------------------------------------------------------|--------|----------------------------------------------|------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                         |   | 2007                                         |       | 2006                                                                                                                                                                                                                                           |   | 2007 |   |
| Cash                    flows from operating activities:                     |   |                                         |       |                                                                                                                                                                                                                                           |   |   |   |
| Net                    income (loss)                                         |   | $                                            | 826,124    |                                                                                                                                                                                                                                           | $      | 712,821 |   | $ | (13,452,123 | ) |
| Adjustments                    to reconcile net income (loss) to net         |   |                                         |       |                                                                                                                                                                                                                                           |   |   |   |   |   |   |
| cash                    used in operating activities:                        |   |                                         |       |                                                                                                                                                                                                                                           |   |   |   |   |   |   |
| Warrants                    issued for services                              |   |                                         | -          |                                                                                                                                                                                                                                           |   | - |   |   | 21,100 |   |
| Stock                    based compensation                                  |   |                                         | (86,096    | )                                                                                                                                                                                                                                              |   | - |   |   | 154,172 |   |
| Amortization                    of debt discount                             |   |                                         | 5,430      |                                                                                                                                                                                                                                           |   | - |   |   | 774,481 |   |
| Change                    in value of warrant liability                      |   |                                         | (1,102,832 | )                                                                                                                                                                                                                                              |   | (1,606,326 | ) |   | 6,254,174 |   |
| Interest                    converted to preferred stock                     |   |                                         | -          |                                                                                                                                                                                                                                           |   | - |   |   | 43,341 |   |
| Depreciation                                                                 |   |                                         | -          |                                                                                                                                                                                                                                           |   | - |   |   | 107,790 |   |
| Loss                    attributed to minority interest                      |   |                                         | (5,611     | )                                                                                                                                                                                                                                              |   | (6,870 | ) |   | (46,366 | ) |
| Increase                    (decrease) in liabilities:                       |   |                                         |       |                                                                                                                                                                                                                                           |   |   |   |   |   |   |
| Accounts                    payable                                          |   |                                         | 103,495    |                                                                                                                                                                                                                                           |   | 144,910 |   |   | 1,552,308 |   |
|                                                                         |   |                                         |       |                                                                                                                                                                                                                                           |   |   |   |   |   |   |
| Cash                    used in operating activities                         |   |                                         | (259,490   | )                                                                                                                                                                                                                                              |   | (755,465 | ) |   | (4,591,123 | ) |
|                                                                         |   |                                         |       |                                                                                                                                                                                                                                           |   |   |   |   |   |   |
| Cash                    flows from financing activities:                     |   |                                         |       |                                                                                                                                                                                                                                           |   |   |   |   |   |   |
| Cash                    retained by former subsidiary                        |   |                                         | (36,893    | )                                                                                                                                                                                                                                              |   | - |   |   | (36,893 | ) |
| Advances                    from stockholder                                 |   |                                         | 256,957    |                                                                                                                                                                                                                                           |   | - |   |   | 712,335 |   |
| Proceeds                    from sale of convertible notes                   |   |                                         | -          |                                                                                                                                                                                                                                           |   | - |   |   | 500,000 |   |
| Proceeds                    from sale of common stock                        |   |                                         | -          |                                                                                                                                                                                                                                           |   | 757,430 |   |   | 3,394,755 |   |
|                                                                         |   |                                         |       |                                                                                                                                                                                                                                           |   |   |   |   |   |   |
| Cash                    provided by financing activities                     |   |                                         | 220,064    |                                                                                                                                                                                                                                           |   | 757,430 |   |   | 4,570,197 |   |
|                                                                         |   |                                         |       |                                                                                                                                                                                                                                           |   |   |   |   |   |   |
| Effect                    of exchange rate changes on cash                   |   |                                         | -          |                                                                                                                                                                                                                                           |   | (3,713 | ) |   | 20,926 |   |
|                                                                         |   |                                         |       |                                                                                                                                                                                                                                           |   |   |   |   |   |   |
| Net                    decrease in cash                                      |   |                                         | (39,426    | )                                                                                                                                                                                                                                              |   | (1,748 | ) |   | - |   |
| Cash,                    beginning of period                                 |   |                                         | 39,426     |                                                                                                                                                                                                                                           |   | 2,946 |   |   | - |   |
| Cash,                    end of period                                       |   | $                                            | -          |                                                                                                                                                                                                                                           | $      | 1,198 |   | $ | - |   |
|                                                                         |   |                                         |       |                                                                                                                                                                                                                                           |   |   |   |   |   |   |
| Supplemental                    disclosure of non-cash financing activities: |   |                                         |       |                                                                                                                                                                                                                                           |   |   |   |   |   |   |
|                                                                         |   |                                         |       |                                                                                                                                                                                                                                           |   |   |   |   |   |   |
| Warrants                    issued for accrued consulting                    |   | $                                            | 442,070    |                                                                                                                                                                                                                                           | $      | - |   |   |   |   |
| Reclassification                    of warrant liability to equity           |   |                                         | 11,050,524 |                                                                                                                                                                                                                                           |   | 149,361 |   |   |   |   |
| Expenses                    paid by former subsidiary                        |   |                                         | 105,713    |                                                                                                                                                                                                                                           |   | - |   |   |   |   |

```
See accompanying notes to unaudited condensed consolidated financial statements.
```

----

**NEW        GENERATION HOLDINGS, INC.**

**NOTES        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE        A - SUMMARY OF ACCOUNTING POLICIES**

**BUSINESS**

**BASIS        OF PRESENTATION**

----

**GOING        CONCERN**

**USE        OF ESTIMATES**

**NET        EARNINGS (LOSS) PER SHARE**

 

|                                               |   | Three                  Months Ended June                  30, 2006 |       | Six                    MonthsEndedJune                    30, 2006 |   |
|----------------------------------------------------|--------|-------------------------------------------------------------------------|------------|--------------------------------------------------------------------|--------|
| Net                income                          |   | $                                                                       | 0.01       |                                                               | $      | 0.01 |   |
| Weighted                average shares outstanding |   |                                                                    | 84,946,762 |                                                               |   | 84,025,768 |   |

----

**RECLASSIFICATIONS**

**NEW        ACCOUNTING PRONOUNCEMENTS**

**NOTE        B -CAPITAL STOCK**

----

**NOTE        C -RELATED PARTY TRANSACTIONS**

----

| **ITEM 2.**   |                      **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**

**THREE      MONTHS ENDED JUNE 30, 2007 COMPARED TO THE THREE MONTHS ENDED JUNE 30,      2006**

**SIX      MONTHS ENDED JUNE 30, 2007 COMPARED TO THE SIX MONTHS ENDED JUNE 30,      2006**

----

**LIQUIDITY      AND CAPITAL RESOURCES**

**Off-Balance      Sheet Arrangements**

| **ITEM                3.** | **CONTROLS                AND PROCEDURES** |
|----------------------------|--------------------------------------------|

----

----

**PART      II - OTHER INFORMATION**

| **ITEM                1.** | **LEGAL                PROCEEDINGS** |
|----------------------------|--------------------------------------|

| **ITEM                2.** | **UNREGISTERED                SALES OF EQUITY SECURITIES AND USE OF                PROCEEDS** |
|----------------------------|-----------------------------------------------------------------------------------------------|

| Patrick                Hellinckx          |   |   | 231,900 |   |
|-------------------------------------------|--------|--------|---------|--------|
| Jan                Rasschaert   |   |   | 100,400 |   |
| Polymer                Consulting Limited |   |   | 801,487 |   |
| Marc                de Ridder   |   |   | 136,950 |   |
| Volarder                Corp.   |   |   | 714,847 |   |

| **ITEM                3.** | **DEFAULTS                UPON SENIOR SECURITIES** |
|----------------------------|----------------------------------------------------|

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

| **ITEM                5.** | **OTHER                INFORMATION** |
|----------------------------|--------------------------------------|

| **ITEM                6** **.** | **EXHIBITS** |
|--------------------------------------|--------------|

| &                && | 3.1 | Certificate                of Incorporation |
|---------------------------------|-----|---------------------------------------------|

----

|   |   |                                                                                            |
|--------|--------|-------------------------------------------------------------------------------------------------|
| ++     | 3.2    | By-Laws                                                                                         |
|   |   |                                                                                            |
| ++     | 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.                                                                                                                               |

|  & | 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                                                     |

----

**SIGNATURES**

|   | **NEW                GENERATION HOLDINGS, INC.*****(Registrant)*** |
|--------|--------------------------------------------------------------------|
|   |                                                               |   |
|   |                                                               |   |
|   | By:                                                      | /s/                Jacques Mot Name:                Jacques Mot |
|   |                                                               | Title:                President and Chief Executive Officer |
|   |                                                               |   |
|   | Date:                August 3, 2007                                |
|   |                                                               |   |
|   |                                                               |   |
|   | By:                                                      | /s/                Robert Scherne Name:                Robert Scherne |
|   |                                                               | Title:                Chief Financial Officer |
|   |                                                               |   |
|   | Date:                August 3, 2007                                |

----