**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**__**

**FORM      10-QSB**

**__**

**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**

----

**NEW      GENERATION HOLDINGS, INC.**

**Form      10-QSB**

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

**__**

**TABLE      OF CONTENTS**

** __**

|                                              |                                                                                                       | 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                        |  9 |
| Item                3.                            | Controls                and Procedures                                                                     | 12      |
|                                              |                                                                                                       |    |
| **PART                II - OTHER INFORMATION**    |
| Item                1.                            | Legal                Proceedings                                                                           | 13      |
| Item                2.                            | Unregistered                Sales of Equity Securities and Use of Proceeds                                 | 13      |
| Item                3.                            | Defaults                Upon Senior Securities                                                             | 14      |
| Item                4.                            | Submission                of Matters to a Vote of Security Holders                                         | 14      |
| Item                5 .                           | Other                Information                                                                           | 14      |
| Item                6.                            | Exhibits                                                                                                   | 14      |

----

**NEW        GENERATION HOLDINGS, INC.**

**CONDENSED        CONSOLIDATED BALANCE SHEET**

| Assets                                                                                                    |   |   |        |
|-----------------------------------------------------------------------------------------------------------|--------|--------|-------------|
|                                                                                                      |   |   |        |
| Current                  assets:                                                                          |   |   |        |
| Cash                                                                                                      |   | $      | -           |   |
|                                                                                                      |   |   |        |   |
| Total                  assets                                                                             |   | $      | -           |   |
|                                                                                                      |   |   |        |   |
| Liabilities                  and deficiency in stockholders' equity                                       |   |   |        |   |
|                                                                                                      |   |   |        |   |
| Current                  liabilities:                                                                     |   |   |        |   |
|                                                                                                      |   |   |        |   |
| Accounts                  payable and accrued expenses:                                                   |   | $      | 640,367     |   |
| Due                  to Plastinum                                                                         |   |   | 114,485     |   |
| Due                  to stockholder                                                                       |   |   | 207,429     |   |
|                                                                                                      |   |   |        |   |
| Total                  current liabilities                                                                |   |   | 962,281     |   |
|                                                                                                      |   |   |        |   |
|                                                                                                      |   |   |        |   |
| 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                                         |   |   | (8,193,665  | ) |
|                                                                                                      |   |   |        |   |
| Total                  deficiency in stockholders' equity                                                 |   |   | (962,281    | ) |
|                                                                                                      |   |   |        |   |
| Total                  liabilities and deficiency in stockholders' equity                                 |   | $      | -           |   |

----

**NEW          GENERATION HOLDINGS, INC.**

**CONDENSED          CONSOLIDATED STATEMENT OF LOSSES**

|                                                                          |   |                                                   |       |                                                  |   |                                                                                                                                                                      |   |   |       |   |   |
|-------------------------------------------------------------------------------|--------|--------------------------------------------------------|------------|-------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|
|                                                                          |   | Three                        months endedSeptember 30, |       | Nine                        months endedSeptember 30, |   | Cumulative                        Period from April 7, 2003 (Reestablishment of Development                        Stage Company)                        to September 30, |   |
|                                                                          |   | 2007                                                   |       | 2006                                                  |   | 2007                                                                                                                                                                      |   | 2006   |       | 2007   |   |
|                                                                          |   |                                                   |       |                                                  |   |                                                                                                                                                                      |   |   |       |   |   |
| Operating                        expenses:                                    |   |                                                   |       |                                                  |   |                                                                                                                                                                      |   |   |       |   |   |
| General                        and administrative expenses                    |   | $                                                      | 8,580      |                                                  | $      | 80                                                                                                                                                                        |   | $      | 89,064     |   | $      | 130,689 |   | $ | 1,142,846 |   |
|                                                                          |   |                                                   |       |                                                  |   |                                                                                                                                                                      |   |   |       |   |   |   |   |   |   |   |
| Total                        operating expenses                               |   |                                                   | 8,580      |                                                  |   | 80                                                                                                                                                                        |   |   | 89,064     |   |   | 130,689 |   |   | 1,142,846 |   |
|                                                                          |   |                                                   |       |                                                  |   |                                                                                                                                                                      |   |   |       |   |   |   |   |   |   |   |
| Loss                        from continuing operations before                 |   |                                                   |       |                                                  |   |                                                                                                                                                                      |   |   |       |   |   |   |   |   |   |   |
| other                        income (expense)                                 |   |                                                   | (8,580     | )                                                     |   | (80                                                                                                                                                                       | )      |   | (89,064    | )      |   | (130,689 | ) |   | (1,142,846 | ) |
|                                                                          |   |                                                   |       |                                                  |   |                                                                                                                                                                      |   |   |       |   |   |   |   |   |   |   |
| Change                        in value of warrant liability                   |   |                                                   | -          |                                                  |   | (6,108,294                                                                                                                                                                | )      |   | 1,102,832  |   |   | (4,501,968 | ) |   | (6,254,174 | ) |
| Interest                        expense                                       |   |                                                   | -          |                                                  |   | (675                                                                                                                                                                      | )      |   | -          |   |   | (38,341 | ) |   | (796,645 | ) |
|                                                                          |   |                                                   |       |                                                  |   |                                                                                                                                                                      |   |   |       |   |   |   |   |   |   |   |
| Income                        (loss) from continuing operations               |   |                                                   |       |                                                  |   |                                                                                                                                                                      |   |   |       |   |   |   |   |   |   |   |
| before                        provision for income taxes                      |   |                                                   | (8,580     | )                                                     |   | (6,109,049                                                                                                                                                                | )      |   | 1,013,768  |   |   | (4,670,998 | ) |   | (8,193,665 | ) |
|                                                                          |   |                                                   |       |                                                  |   |                                                                                                                                                                      |   |   |       |   |   |   |   |   |   |   |
| Provision                        for income taxes                             |   |                                                   | -          |                                                  |   | -                                                                                                                                                                         |   |   | -          |   |   | - |   |   | - |   |
|                                                                          |   |                                                   |       |                                                  |   |                                                                                                                                                                      |   |   |       |   |   |   |   |   |   |   |
| Net                        income (loss) from continuing operations           |   |                                                   | (8,580     | )                                                     |   | (6,109,049                                                                                                                                                                | )      |   | 1,013,768  |   |   | (4,670,998 | ) |   | (8,193,665 | ) |
|                                                                          |   |                                                   |       |                                                  |   |                                                                                                                                                                      |   |   |       |   |   |   |   |   |   |   |
| Loss                        from discontinued operations, net of tax          |   |                                                   | -          |                                                  |   | (558,488                                                                                                                                                                  | )      |   | (196,224   | )      |   | (1,283,718 | ) |   | (5,267,038 | ) |
|                                                                          |   |                                                   |       |                                                  |   |                                                                                                                                                                      |   |   |       |   |   |   |   |   |   |   |
| Net                        income (loss)                                      |   | $                                                      | (8,580     | )                                                     | $      | (6,667,537                                                                                                                                                                | )      | $      | 817,544    |   | $      | (5,954,716 | ) | $ | (13,460,703 | ) |
|                                                                          |   |                                                   |       |                                                  |   |                                                                                                                                                                      |   |   |       |   |   |   |   |   |   |   |
| Net                        income (loss) per common share, basic and diluted  |   |                                                   |       |                                                  |   |                                                                                                                                                                      |   |   |       |   |   |   |   |   |   |   |
| Continuing                        operations                                  |   | $                                                      | (0.00      | )                                                     | $      | (0.12                                                                                                                                                                     | )      | $      | 0.01       |   | $      | (0.10 | ) |   |   |   |
| Discontinued                        operations                                |   |                                                   | -          |                                                  |   | (0.01                                                                                                                                                                     | )      |   | (0.00      | )      |   | (0.02 | ) |   |   |   |
|                                                                          |   | $                                                      | (0.00      | )                                                     | $      | (0.13                                                                                                                                                                     | )      | $      | 0.01       |   | $      | (0.12 | ) |   |   |   |
|                                                                          |   |                                                   |       |                                                  |   |                                                                                                                                                                      |   |   |       |   |   |   |   |   |   |   |
|                                                                          |   |                                                   |       |                                                  |   |                                                                                                                                                                      |   |   |       |   |   |   |   |   |   |   |
| Weighted                        average shares outstanding, basic and diluted |   |                                                   | 88,749,973 |                                                  |   | 49,998,260                                                                                                                                                                |   |   | 81,639,754 |   |   | 48,346,994 |   |   |   |   |
|                                                                          |   |                                                   |       |                                                  |   |                                                                                                                                                                      |   |   |       |   |   |   |   |   |   |   |
| Comprehensive                        income (loss):                           |   |                                                   |       |                                                  |   |                                                                                                                                                                      |   |   |       |   |   |   |   |   |   |   |
| Net                        income (loss)                                      |   | $                                                      | (8,580     | )                                                     | $      | (6,667,537                                                                                                                                                                | )      | $      | 817,544    |   | $      | (5,954,716 | ) |   |   |   |
| Foreign                        currency translation loss                      |   |                                                   | -          |                                                  |   | -                                                                                                                                                                         |   |   | -          |   |   | (3,713 | ) |   |   |   |
|                                                                          |   |                                                   |       |                                                  |   |                                                                                                                                                                      |   |   |       |   |   |   |   |   |   |   |
| Comprehensive                        income (loss)                            |   | $                                                      | (8,580     | )                                                     | $      | (6,667,537                                                                                                                                                                | )      | $      | 817,544    |   | $      | (5,958,429 | ) |   |   |   |

----

**NEW          GENERATION HOLDINGS, INC.**

**CONDENSED          CONSOLIDATED STATEMENT OF DEFICIENCY IN STOCKHOLDERS'          EQUITY **

|                                                             |   |                               |         |                            |   |                                  |   |                         |         |                                   |   |              |   |                                     |       |          |   |         |   |
|------------------------------------------------------------------|--------|------------------------------------|--------------|---------------------------------|--------|---------------------------------------|--------|------------------------------|--------------|----------------------------------------|--------|-------------------|--------|------------------------------------------|------------|---------------|--------|--------------|--------|
|                                                             |   |                               |         |                            |   |                                  |   |                         |         |                                   |   |              |   | Accumulated                      Deficit |       |          |   |         |   |
|                                                             |   | Preferred                    Stock |         | Common                    Stock |   | Additional                    Pain-in |   | CommonStock                  |         | Prior                    toDevelopment |   | DuringDevelopment |   | OtherComprehensive                       |       | 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                                    |   |                               |         |                            |   |                                  |   |                         |         |                                   |   |              |   |                                     |       |          |   |         |   |   |   |   |   | 817,544 |   |   |   |   |   | 817,544 |   |
|                                                             |   |                               |         |                            |   |                                  |   |                         |         |                                   |   |              |   |                                     |       |          |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Adjustment                    for deconsolidation of             |   |                               |         |                            |   |                                  |   |                         |         |                                   |   |              |   |                                     |       |          |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| former                    subsidiary                             |   |                               |    |                            |   |                             |   |                         |    |                                   |   |         |   |                                     | (3,451,657 | )             |   |    |   |   |    |   |   | 5,267,038 |   |   |    |   |   | 1,815,381 |   |
|                                                             |   |                               |         |                            |   |                                  |   |                         |         |                                   |   |              |   |                                     |       |          |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                    September 30, 2007                   |   |                               | -            |                            |   | -                                     |   |                         | 88,749,973   |                                   |   | 88,750            |   |                                     | 38,203,439 |          |   | -            |   |   | (31,081,731 | ) |   | (8,193,665 | ) |   | 20,926 |   |   | (962,281 | ) |

----

**NEW            GENERATION HOLDINGS, INC.**

**CONDENSED            CONSOLIDATED STATEMENTS OF CASH FLOWS **

|                                                                         |   |                                               |       |                                                                                                                                   |   |       |   |
|------------------------------------------------------------------------------|--------|----------------------------------------------------|------------|----------------------------------------------------------------------------------------------------------------------------------------|--------|------------|--------|
|                                                                         |   | Nine                    months ended September 30, |       | Cumulative                    Periodfrom April 7, 2003(Reestablishment of Development                    StageCompany) toSeptember 30, |   |
|                                                                         |   | 2007                                               |       | 2006                                                                                                                                   |   | 2007       |   |
|                                                                         |   |                                               |       |                                                                                                                                   |   |       |   |
| Cash                    flows from operating activities:                     |   |                                               |       |                                                                                                                                   |   |       |   |
| Net                    income (loss)                                         |   | $                                                  | 817,544    |                                                                                                                                   | $      | (5,954,716 | )      | $ | (13,460,703 | ) |
| Adjustments                    to reconcile net loss to net                  |   |                                               |       |                                                                                                                                   |   |       |   |   |   |   |
| cash                    used in operating activities:                        |   |                                               |       |                                                                                                                                   |   |       |   |   |   |   |
| Warrants                    issued for services                              |   |                                               | -          |                                                                                                                                   |   | -          |   |   | 21,100 |   |
| Stock                    based compensation                                  |   |                                               | (86,096    | )                                                                                                                                      |   | 120,134    |   |   | 154,172 |   |
| Amortization                    of debt discount                             |   |                                               | 5,430      |                                                                                                                                   |   | 7,400      |   |   | 774,481 |   |
| Change                    in value of warrant liability                      |   |                                               | (1,102,832 | )                                                                                                                                      |   | 4,501,968  |   |   | 6,254,174 |   |
| Expenses                    paid by Plastinum                                |   |                                               | 318        |                                                                                                                                   |   | -          |   |   | 318 |   |
| Interest                    converted to preferred stock                     |   |                                               | -          |                                                                                                                                   |   | 43,341.00  |   |   | 43,341 |   |
| Depreciation                                                                 |   |                                               | -          |                                                                                                                                   |   | -          |   |   | 107,790 |   |
| Loss                    attributed to minority interest                      |   |                                               | (5,611     | )                                                                                                                                      |   | (22,840    | )      |   | (46,366 | ) |
| Increase                    (decrease) in liabilities:                       |   |                                               |       |                                                                                                                                   |   |       |   |   |   |   |
| Accounts                    payable                                          |   |                                               | 111,757    |                                                                                                                                   |   | (52,213    | )      |   | 1,560,570 |   |
|                                                                         |   |                                               |       |                                                                                                                                   |   |       |   |   |   |   |
| Cash                    used in operating activities                         |   |                                               | (259,490   | )                                                                                                                                      |   | (1,356,926 | )      |   | (4,591,123 | ) |
|                                                                         |   |                                               |       |                                                                                                                                   |   |       |   |   |   |   |
| Cash                    flows from financing activities:                     |   |                                               |       |                                                                                                                                   |   |       |   |   |   |   |
| Cash                    retained by former subsidiary                        |   |                                               | (36,893    | )                                                                                                                                      |   |       |   |   | (36,893 | ) |
| Advances                    from stockholder                                 |   |                                               | 256,957    |                                                                                                                                   |   | 147,351    |   |   | 712,335 |   |
| Proceeds                    from sale of convertible notes                   |   |                                               | -          |                                                                                                                                   |   | 500,000    |   |   | 500,000 |   |
| Proceeds                    from sale of common stock                        |   |                                               | -          |                                                                                                                                   |   | 757,430    |   |   | 3,394,755 |   |
|                                                                         |   |                                               |       |                                                                                                                                   |   |       |   |   |   |   |
| Cash                    provided by financing activities                     |   |                                               | 220,064    |                                                                                                                                   |   | 1,404,781  |   |   | 4,570,197 |   |
|                                                                         |   |                                               |       |                                                                                                                                   |   |       |   |   |   |   |
| Effect                    of exchange rate changes on cash                   |   |                                               | -          |                                                                                                                                   |   | (3,713     | )      |   | 20,926 |   |
|                                                                         |   |                                               |       |                                                                                                                                   |   |       |   |   |   |   |
| Net                    (decrease) increase in cash                           |   |                                               | (39,426    | )                                                                                                                                      |   | 44,142     |   |   | - |   |
| Cash,                    beginning of period                                 |   |                                               | 39,426     |                                                                                                                                   |   | 2,946      |   |   | - |   |
| Cash,                    end of period                                       |   | $                                                  | -          |                                                                                                                                   | $      | 47,088     |   | $ | - |   |
|                                                                         |   |                                               |       |                                                                                                                                   |   |       |   |   |   |   |
|                                                                         |   |                                               |       |                                                                                                                                   |   |       |   |   |   |   |
| 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    |                                                                                                                                   |   | -          |   |   |   |   |

----

**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**

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

**NINE      MONTHS ENDED SEPTEMBER 30, 2007 COMPARED TO THE NINE MONTHS ENDED SEPTEMBER      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** |
|----------------------------|-----------------------------------------------------------------------------------------------|

----

| **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:                November 6, 2007                              |
|   |                                                               |   |
|   |                                                               |   |
|   | By:                                                      | /s/                Robert Scherne |
|   |                                                               | Name:                Robert Scherne |
|   |                                                               | Title:   Chief                Financial Officer |
|   |                                                               |   |
|   | Date:                November 6, 2007                              |

----