*Table            of Contents*

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**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

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**FORM      10-QSB**

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

**SECURITIES      EXCHANGE ACT OF 1934**

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

**SECURITIES      EXCHANGE ACT OF 1934**

*Commission      file number 0-24623*

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

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

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

**APPLICABLE      ONLY TO CORPORATE ISSUERS**

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*Table        of Contents*

**NEW      GENERATION HOLDINGS, INC.**

**Form      10-QSB**

**For      the Quarter Ended March 31, 2007**

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**TABLE      OF CONTENTS**

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|                                              |                                                                                                       | Page   |
|---------------------------------------------------|------------------------------------------------------------------------------------------------------------|--------|
|                                              |                                                                                                       |   |
| **PART                I - FINANCIAL INFORMATION** |
| Item                1.                            | Financial                Statements (Unaudited)                                                            |   |
|                                              | Condensed                Consolidated Balance Sheet                                                        | 3      |
|                                              | Condensed                Consolidated Statements of                Operations                              | 4      |
|                                              | Condensed                Consolidated Statement of Deficiency in                Stockholders’ Equity | 5      |
|                                              | Condensed                Consolidated Statements of Cash                Flows                              | 6      |
|                                              | Notes                to Condensed Consolidated Financial                Statements                         | 7      |
| Item                2.                            | Management’s                Discussion and Analysis or Plan of                Operation         | 10     |
| Item                3.                            | Controls                and Procedures                                                                     | 14     |
|                                              |                                                                                                       |   |
| **PART                II - OTHER INFORMATION**    |
| Item                1.                            | Legal                Proceedings                                                                           | 15     |
| Item                2.                            | Unregistered                Sales of Equity Securities and Use of                Proceeds                  | 15     |
| Item                3.                            | Defaults                Upon Senior Securities                                                             | 15     |
| Item                4.                            | Submission                of Matters to a Vote of Security                Holders                          | 16     |
| Item                5.                            | Other                Information                                                                           | 16     |
| Item                6.                            | Exhibits                                                                                                   | 16     |

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*Table          of Contents*

**NEW      GENERATION HOLDINGS, INC.**

**CONDENSED      CONSOLIDATED BALANCE SHEET**

**MARCH      31, 2007**

**(Unaudited)**

| Assets                                                                                                    |   |   |        |
|-----------------------------------------------------------------------------------------------------------|--------|--------|-------------|
|                                                                                                      |   |   |        |
| Current                  assets:                                                                          |   |   |        |
| Cash                                                                                                      |   | $      | —     |   |
| Total                  assets                                                                             |   | $      | —     |   |
|                                                                                                      |   |   |        |   |
| Liabilities                  and deficiency in stockholders' equity                                       |   |   |        |   |
|                                                                                                      |   |   |        |   |
| Current                  liabilities:                                                                     |   |   |        |   |
|                      Accounts payable and accrued expenses:                                |   | $      | 638,171     |   |
| Due                  to Plastinum                                                                         |   |   | 83,622      |   |
| Due                  to stockholder                                                                       |   |   | 207,429     |   |
| Total                  current liabilities                                                                |   |   | 929,222     |   |
|                                                                                                      |   |   |        |   |
|                                                                                                      |   |   |        |   |
| 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, |   |   |        |   |
| 88,670,336                  shares issued and outstanding                                                 |   |   | 88,670      |   |
| Additional                  paid-in capital                                                               |   |   | 38,192,703  |   |
| Other                  comprehensive income                                                               |   |   | 20,926      |   |
| Accumulated                  deficit prior to development stage                                           |   |   | (31,081,731 | ) |
| Deficit                  accumulated during the development stage                                         |   |   | (8,149,790  | ) |
| Total                  deficiency in stockholders' equity                                                 |   |   | (929,222    | ) |
| Total                  liabilities and deficiency in stockholders' equity                                 |   | $      | —     |   |

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*Table          of Contents*

**NEW      GENERATION HOLDINGS, INC.**

**CONDENSED      CONSOLIDATED STATEMENTS OF OPERATIONS**

**FOR      THE THREE MONTHS ENDED MARCH 31, 2007 AND 2006**

**(Unaudited)**

|                                                                    |   |                                          |       |                       |   | Cumulative                  Period   |   |
|-------------------------------------------------------------------------|--------|-----------------------------------------------|------------|----------------------------|--------|--------------------------------------|--------|
|                                                                    |   |                                          |       |                       |   | from                  April 7, 2003  |   |
|                                                                    |   |                                          |       |                       |   | (Reestablishment                  of |   |
|                                                                    |   |                                          |       |                       |   | Development                  Stage   |   |
|                                                                    |   |                                          |       |                       |   | Company)                  to         |   |
|                                                                    |   | Three                  months ended March 31, |       | March                  31, |   |
|                                                                    |   | 2007                                          |       | 2006                       |   | 2007                                 |   |
|                                                                    |   |                                          |       |                       |   |                                 |   |
| Operating                  expenses:                                    |   |                                          |       |                       |   |                                 |   |
| General                  and administrative expenses                    |   | $                                             | 45,189     |                       | $      | 82,437                               |   | $ | 1,098,971 |   |
| Total                  operating expenses                               |   |                                          | 45,189     |                       |   | 82,437                               |   |   | 1,098,971 |   |
|                                                                    |   |                                          |       |                       |   |                                 |   |   |   |   |
| Loss                  from continuing operations before                 |   |                                          |       |                       |   |                                 |   |   |   |   |
| other                  income (expense)                                 |   |                                          | (45,189    | )                          |   | (82,437                              | )      |   | (1,098,971 | ) |
|                                                                    |   |                                          |       |                       |   |                                 |   |   |   |   |
| Change                  in value of warrant liability                   |   |                                          | 1,102,832  |                       |   | 244,979                              |   |   | (6,254,174 | ) |
| Interest                  expense                                       |   |                                          | —    |                       |   | (18,833                              | )      |   | (796,645 | ) |
|                                                                    |   |                                          |       |                       |   |                                 |   |   |   |   |
| Income                  (loss) from continuing operations               |   |                                          |       |                       |   |                                 |   |   |   |   |
| before                  provision for income taxes                      |   |                                          | 1,057,643  |                       |   | 143,709                              |   |   | (8,149,790 | ) |
|                                                                    |   |                                          |       |                       |   |                                 |   |   |   |   |
| Provision                  for income taxes                             |   |                                          | —    |                       |   | —                              |   |   | — |   |
| Net                  income (loss) from continuing operations           |   |                                          | 1,057,643  |                       |   | 143,709                              |   |   | (8,149,790 | ) |
|                                                                    |   |                                          |       |                       |   |                                 |   |   |   |   |
| Loss                  from discontinued operations, net of tax          |   |                                          | (196,224   | )                          |   | (183,504                             | )      |   | (5,267,038 | ) |
| Net                  income (loss)                                      |   | $                                             | 861,419    |                       | $      | (39,795                              | )      | $ | (13,416,828 | ) |
|                                                                    |   |                                          |       |                       |   |                                 |   |   |   |   |
| Net                  income (loss) per common share, basic and diluted: |   |                                          |       |                       |   |                                 |   |   |   |   |
| Continuing                  operations                                  |   | $                                             | 0.02       |                       | $      | 0.00                                 |   |   |   |   |
| Discontinued                  operations                                |   | $                                             | (0.00      | )                          | $      | (0.00                                | )      |   |   |   |
|                                                                    |   | $                                             | 0.01       |                       | $      | (0.00                                | )      |   |   |   |
|                                                                    |   |                                          |       |                       |   |                                 |   |   |   |   |
| Weighted                  average shares outstanding, basic and diluted |   |                                          | 67,185,849 |                       |   | 46,576,449                           |   |   |   |   |
|                                                                    |   |                                          |       |                       |   |                                 |   |   |   |   |
| Comprehensive                  income (loss):                           |   |                                          |       |                       |   |                                 |   |   |   |   |
| Net                  income (loss)                                      |   | $                                             | 861,419    |                       | $      | (39,795                              | )      |   |   |   |
| Foreign                  currency translation loss                      |   |                                          | —    |                       |   | (2,491                               | )      |   |   |   |
| Comprehensive                  income (loss)                            |   | $                                             | 861,419    |                       | $      | (42,286                              | )      |   |   |   |
|                                                                    |   |                                          |       |                       |   |                                 |   |   |   |   |
|                                                                    |   |                                          |       |                       |   |                                 |   |   |   |   |

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*Table            of Contents*

**NEW        GENERATION HOLDINGS, INC.**

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

**(Unaudited)**

|                                                            |   |                               |               |                            |   |               |   |                         |               |        |   |               |   | Accumulated                    Deficit |       |          |   |               |   |
|-----------------------------------------------------------------|--------|------------------------------------|--------------------|---------------------------------|--------|--------------------|--------|------------------------------|--------------------|-------------|--------|--------------------|--------|----------------------------------------|------------|---------------|--------|--------------------|--------|
|                                                            |   |                               |               |                            |   |               |   |                         |               | Additional  |   | Common             |   | Prior                    to            |       | During        |   | Other              |   |   |   |
|                                                            |   | Preferred                    Stock |               | Common                    Stock |   | Paid-in            |   | Stock                        |               | Development |   | Development        |   | Comprehensive                          |       | Stockholders' |   |
|                                                            |   | Shares                             |               | Par                    value    |   | Shares             |   | Par                    value |               | Capital     |   | Subscribed         |   | Stage                                  |       | Stage         |   | Income             |   | Deficiency |   |
|                                                            |   |                               |               |                            |   |               |   |                         |               |        |   |               |   |                                   |       |          |   |               |   |   |   |
| Balance,                    December 31, 2002                   |   |                               | —            |                            | $      | —            |   |                         | 21,056,690         |        | $      | 21,059             |   | $                                      | 29,636,051 |          | $      | —            |   | $ | (34,634,693 | ) | $ | — |   | $ | — |   | $ | (4,977,583 | ) |
|                                                            |   |                               |               |                            |   |               |   |                         |               |        |   |               |   |                                   |       |          |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Disposition                    of previously controlled         |   |                               |               |                            |   |               |   |                         |               |        |   |               |   |                                   |       |          |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| wholly                    and majority owned subsidiaries,      |   |                               |               |                            |   |               |   |                         |               |        |   |               |   |                                   |       |          |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| net                                                             |   |                               | —            |                            |   | —            |   |                         | —            |        |   | —            |   |                                   | —    |          |   | —            |   |   | 3,882,801 |   |   | — |   |   | — |   |   | 3,882,801 |   |
|                                                            |   |                               |               |                            |   |               |   |                         |               |        |   |               |   |                                   |       |          |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    loss from January 1, 2003 to             |   |                               |               |                            |   |               |   |                         |               |        |   |               |   |                                   |       |          |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| April                    7, 2003                                |   |                               | —            |                            |   | —            |   |                         | —            |        |   | —            |   |                                   | —    |          |   | —            |   |   | (329,839 | ) |   | — |   |   | — |   |   | (329,839 | ) |
| Balance,                    April 7, 2003                       |   |                               | —            |                            |   | —            |   |                         | 21,056,690         |        |   | 21,059             |   |                                   | 29,636,051 |          |   | —            |   |   | (31,081,731 | ) |   | — |   |   | — |   |   | (1,424,621 | ) |
|                                                            |   |                               |               |                            |   |               |   |                         |               |        |   |               |   |                                   |       |          |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    loss                                     |   |                               | —            |                            |   | —            |   |                         | —            |        |   | —            |   |                                   | —    |          |   | —            |   |   | — |   |   | (330,321 | ) |   | — |   |   | (330,321 | ) |
| Balance,                    December 31, 2003                   |   |                               | —            |                            |   | —            |   |                         | 21,056,690         |        |   | 21,059             |   |                                   | 29,636,051 |          |   | —            |   |   | (31,081,731 | ) |   | (330,321 | ) |   | — |   |   | (1,754,942 | ) |
|                                                            |   |                               |               |                            |   |               |   |                         |               |        |   |               |   |                                   |       |          |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sale                    of common stock                         |   |                               | —            |                            |   | —            |   |                         | 6,500,120          |        |   | 6,500              |   |                                   | 643,514    |          |   | —            |   |   | — |   |   | — |   |   | — |   |   | 650,014 |   |
|                                                            |   |                               |               |                            |   |               |   |                         |               |        |   |               |   |                                   |       |          |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                    stock subscribed                      |   |                               | —            |                            |   | —            |   |                         | —            |        |   | —            |   |                                   | —    |          |   | 54,600             |   |   | — |   |   | — |   |   | — |   |   | 54,600 |   |
|                                                            |   |                               |               |                            |   |               |   |                         |               |        |   |               |   |                                   |       |          |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    physically issued                     |   |                               | —            |                            |   | —            |   |                         | —            |        |   | —            |   |                                   | —    |          |   | —            |   |   | — |   |   | — |   |   | — |   |   | — |   |
|                                                            |   |                               |               |                            |   |               |   |                         |               |        |   |               |   |                                   |       |          |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Currency                    translation adjustment              |   |                               | —            |                            |   | —            |   |                         | —            |        |   | —            |   |                                   | —    |          |   | —            |   |   | — |   |   | — |   |   | 14,383 |   |   | 14,383 |   |
|                                                            |   |                               |               |                            |   |               |   |                         |               |        |   |               |   |                                   |       |          |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    loss                                     |   |                               | —            |                            |   | —            |   |                         | —            |        |   | —            |   |                                   | —    |          |   | —            |   |   | — |   |   | (620,770 | ) |   | — |   |   | (620,770 | ) |
| Balance,                    December 31, 2004                   |   |                               | —            |                            |   | —            |   |                         | 27,556,810         |        |   | 27,559             |   |                                   | 30,279,565 |          |   | 54,600             |   |   | (31,081,731 | ) |   | (951,091 | ) |   | 14,383 |   |   | (1,656,715 | ) |
|                                                            |   |                               |               |                            |   |               |   |                         |               |        |   |               |   |                                   |       |          |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sale                    of common stock                         |   |                               | —            |                            |   | —            |   |                         | 18,014,150         |        |   | 18,014             |   |                                   | 1,783,401  |          |   | —            |   |   | — |   |   | — |   |   | — |   |   | 1,801,415 |   |
|                                                            |   |                               |               |                            |   |               |   |                         |               |        |   |               |   |                                   |       |          |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Warrants                    issued for services                 |   |                               | —            |                            |   | —            |   |                         | —            |        |   | —            |   |                                   | 21,100     |          |   | —            |   |   | — |   |   | — |   |   | — |   |   | 21,100 |   |
|                                                            |   |                               |               |                            |   |               |   |                         |               |        |   |               |   |                                   |       |          |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    physically issued                     |   |                               | —            |                            |   | —            |   |                         | 546,000            |        |   | 546                |   |                                   | 54,054     |          |   | (54,600            | )      |   | — |   |   | — |   |   | — |   |   | — |   |
|                                                            |   |                               |               |                            |   |               |   |                         |               |        |   |               |   |                                   |       |          |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                    stock subscribed                      |   |                               | —            |                            |   | —            |   |                         | —            |        |   | —            |   |                                   | —    |          |   | 131,300            |   |   | — |   |   | — |   |   | — |   |   | 131,300 |   |
|                                                            |   |                               |               |                            |   |               |   |                         |               |        |   |               |   |                                   |       |          |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Beneficial                    conversion feature                |   |                               | —            |                            |   | —            |   |                         | —            |        |   | —            |   |                                   | 753,304    |          |   | —            |   |   | — |   |   | — |   |   | — |   |   | 753,304 |   |
|                                                            |   |                               |               |                            |   |               |   |                         |               |        |   |               |   |                                   |       |          |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reclassification                    of warrants to liabilities  |   |                               | —            |                            |   | —            |   |                         | —            |        |   | —            |   |                                   | (4,275,966 | )             |   | —            |   |   | — |   |   | — |   |   | — |   |   | (4,275,966 | ) |
|                                                            |   |                               |               |                            |   |               |   |                         |               |        |   |               |   |                                   |       |          |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Currency                    translation adjustment              |   |                               | —            |                            |   | —            |   |                         | —            |        |   | —            |   |                                   | —    |          |   | —            |   |   | — |   |   | — |   |   | 14,586 |   |   | 14,586 |   |
|                                                            |   |                               |               |                            |   |               |   |                         |               |        |   |               |   |                                   |       |          |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    loss                                     |   |                               | —            |                            |   | —            |   |                         | —            |        |   | —            |   |                                   | —    |          |   | —            |   |   | — |   |   | (4,743,560 | ) |   | — |   |   | (4,743,560 | ) |
| Balance,                    December 31, 2005 - restated        |   |                               | —            |                            |   | —            |   |                         | 46,116,960         |        |   | 46,119             |   |                                   | 28,615,458 |          |   | 131,300            |   |   | (31,081,731 | ) |   | (5,694,651 | ) |   | 28,969 |   |   | (7,954,536 | ) |
|                                                            |   |                               |               |                            |   |               |   |                         |               |        |   |               |   |                                   |       |          |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    physically issued                     |   |                               | —            |                            |   | —            |   |                         | 1,313,000          |        |   | 1,313              |   |                                   | 129,987    |          |   | (131,300           | )      |   | — |   |   | — |   |   | — |   |   | — |   |
|                                                            |   |                               |               |                            |   |               |   |                         |               |        |   |               |   |                                   |       |          |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sale                    of common stock                         |   |                               | —            |                            |   | —            |   |                         | 2,568,300          |        |   | 2,566              |   |                                   | 254,264    |          |   |               |   |   | — |   |   | — |   |   | — |   |   | 256,830 |   |
|                                                            |   |                               |               |                            |   |               |   |                         |               |        |   |               |   |                                   |       |          |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Conversion                    of debt                           |   |                               | 528,630            |                            |   | 529                |   |                         | —            |        |   | —            |   |                                   | 796,116    |          |   | —            |   |   | — |   |   | — |   |   | — |   |   | 796,645 |   |
|                                                            |   |                               |               |                            |   |               |   |                         |               |        |   |               |   |                                   |       |          |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Warrants                    issued with debt                    |   |                               | —            |                            |   | —            |   |                         | —            |        |   | —            |   |                                   | 126,700    |          |   | —            |   |   | — |   |   | — |   |   | — |   |   | 126,700 |   |
|                                                            |   |                               |               |                            |   |               |   |                         |               |        |   |               |   |                                   |       |          |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock                    based compensation                     |   |                               | —            |                            |   | —            |   |                         | —            |        |   | —            |   |                                   | 240,268    |          |   | —            |   |   | — |   |   | — |   |   | — |   |   | 240,268 |   |
|                                                            |   |                               |               |                            |   |               |   |                         |               |        |   |               |   |                                   |       |          |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reclassification                    of warrants to liabilities  |   |                               | —            |                            |   | —            |   |                         | —            |        |   | —            |   |                                   | (792,426   | )             |   | —            |   |   | — |   |   | — |   |   | — |   |   | (792,426 | ) |
|                                                            |   |                               |               |                            |   |               |   |                         |               |        |   |               |   |                                   |       |          |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reclassification                    of liabilities to warrants  |   |                               | —            |                            |   | —            |   |                         | —            |        |   | —            |   |                                   | 272,043    |          |   | —            |   |   | — |   |   | — |   |   | — |   |   | 272,043 |   |
|                                                            |   |                               |               |                            |   |               |   |                         |               |        |   |               |   |                                   |       |          |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Subsidiary                    stock issued for accrued expenses |   |                               | —            |                            |   | —            |   |                         | —            |        |   | —            |   |                                   | 633,595    |          |   | —            |   |   | — |   |   | — |   |   | — |   |   | 633,595 |   |
|                                                            |   |                               |               |                            |   |               |   |                         |               |        |   |               |   |                                   |       |          |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Currency                    translation adjustment              |   |                               | —            |                            |   | —            |   |                         | —            |        |   | —            |   |                                   | —    |          |   | —            |   |   | — |   |   | — |   |   | (8,043 | ) |   | (8,043 | ) |
|                                                            |   |                               |               |                            |   |               |   |                         |               |        |   |               |   |                                   |       |          |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    loss                                     |   |                               | —            |                            |   | —            |   |                         | —            |        |   | —            |   |                                   | —    |          |   | —            |   |   | — |   |   | (8,583,596 | ) |   | — |   |   | (8,583,596 | ) |
| Balance,                    December 31, 2006                   |   |                               | 528,630            |                            |   | 529                |   |                         | 49,998,260         |        | $      | 49,998             |   | $                                      | 30,276,005 |          | $      | —            |   | $ | (31,081,731 | ) | $ | (14,278,247 | ) | $ | 20,926 |   | $ | (15,012,520 | ) |
|                                                            |   |                               |               |                            |   |               |   |                         |               |        |   |               |   |                                   |       |          |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                    stock issued upon conversion          |   |                               |               |                            |   |               |   |                         |               |        |   |               |   |                                   |       |          |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| of                    preferred stock                           |   |                               | (528,630           | )                               |   | (529               | )      |                         | 38,672,076         |        |   | 38,672             |   |                                   | (38,143    | )             |   |               |   |   |   |   |   |   |   |   |   |   |   | — |   |
|                                                            |   |                               |               |                            |   |               |   |                         |               |        |   |               |   |                                   |       |          |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reclassification                    of warrant liability        |   |                               |               |                            |   |               |   |                         |               |        |   |               |   |                                   |       |          |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| to                    permanent equity                          |   |                               |               |                            |   |               |   |                         |               |        |   |               |   |                                   | 11,050,524 |          |   |               |   |   |   |   |   |   |   |   |   |   |   | 11,050,524 |   |
|                                                            |   |                               |               |                            |   |               |   |                         |               |        |   |               |   |                                   |       |          |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance                    of warrants for accrued expense     |   |                               |               |                            |   |               |   |                         |               |        |   |               |   |                                   | 442,070    |          |   |               |   |   |   |   |   |   |   |   |   |   |   | 442,070 |   |
|                                                            |   |                               |               |                            |   |               |   |                         |               |        |   |               |   |                                   |       |          |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock                    based compensation                     |   |                               |               |                            |   |               |   |                         |               |        |   |               |   |                                   | (86,096    | )             |   |               |   |   |   |   |   |   |   |   |   |   |   | (86,096 | ) |
|                                                            |   |                               |               |                            |   |               |   |                         |               |        |   |               |   |                                   |       |          |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    income                                   |   |                               |               |                            |   |               |   |                         |               |        |   |               |   |                                   |       |          |   |               |   |   |   |   |   | 861,419 |   |   |   |   |   | 861,419 |   |
|                                                            |   |                               |               |                            |   |               |   |                         |               |        |   |               |   |                                   |       |          |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Adjustment                    for deconsolidation of            |   |                               |               |                            |   |          |   |                         |               |        |   |               |   |                                   |       |          |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| former                    subsidiary                            |   |                               |     |                            |   |     |   |                         |     |        |   |     |   |                                   | (3,451,657 | )             |   |     |   |   |     |   |   | 5,267,038 |   |   |      |   |   | 1,815,381 |   |
| Balance,                    March 31, 2007                      |   |                               | —            |                            |   | —            |   |                         | 88,670,336         |        |   | 88,670             |   |                                   | 38,192,703 |          |   | —            |   |   | (31,081,731 | ) |   | (8,149,790 | ) |   | 20,926 |   |   | (929,222 | ) |
|                                                            |   |                               |               |                            |   |               |   |                         |               |        |   |               |   |                                   |       |          |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |

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*Table            of Contents*

**NEW      GENERATION HOLDINGS, INC.**

**CONDENSED      CONSOLIDATED STATEMENTS OF CASH FLOWS**

**FOR      THE THREE MONTHS ENDED MARCH 31, 2007 AND 2006**

**(Unaudited)**

|                                                                       |   |                                          |       |                       |   |                                 |   |
|----------------------------------------------------------------------------|--------|-----------------------------------------------|------------|----------------------------|--------|--------------------------------------|--------|
|                                                                       |   |                                          |       |                       |   |                                 |   |
|                                                                       |   |                                          |       |                       |   | Cumulative                  Period   |   |
|                                                                       |   |                                          |       |                       |   | from                  April 7, 2003  |   |
|                                                                       |   |                                          |       |                       |   | (Reestablishment                  of |   |
|                                                                       |   |                                          |       |                       |   | Development                  Stage   |   |
|                                                                       |   |                                          |       |                       |   | Company)                  to         |   |
|                                                                       |   | Three                  Months ended March 31, |       | March                  31, |   |
|                                                                       |   | 2007                                          |       | 2006                       |   | 2007                                 |   |
|                                                                       |   |                                          |       |                       |   |                                 |   |
| Cash                  flows from operating activities:                     |   |                                          |       |                       |   |                                 |   |
| Net                  income (loss)                                         |   | $                                             | 861,419    |                       | $      | (39,795                              | )      | $ | (13,416,828 | ) |
| Adjustments                  to reconcile net loss to net                  |   |                                          |       |                       |   |                                 |   |   |   |   |
| cash                  used in operating activities:                        |   |                                          |       |                       |   |                                 |   |   |   |   |
| Warrants                  issued for services                              |   |                                          | —    |                       |   | —                              |   |   | 21,100 |   |
| Stock                  based compensation                                  |   |                                          | (86,096    | )                          |   |                                 |   |   | 154,172 |   |
| Amortization                  of debt discount                             |   |                                          | 5,430      |                       |   | —                              |   |   | 774,481 |   |
| Change                  in value of warrant liability                      |   |                                          | (1,102,832 | )                          |   | (244,979                             | )      |   | 6,254,174 |   |
| Interest                  converted to preferred stock                     |   |                                          | —    |                       |   |                                 |   |   | 43,341 |   |
| Depreciation                                                               |   |                                          | —    |                       |   | —                              |   |   | 107,790 |   |
| Loss                  attributed to minority interest                      |   |                                          | (5,611     | )                          |   |                                 |   |   | (46,366 | ) |
| Increase                  (decrease) in liabilities:                       |   |                                          |       |                       |   |                                 |   |   |   |   |
| Accounts                  payable                                          |   |                                          | 68,200     |                       |   | 34,034                               |   |   | 1,517,013 |   |
| Cash                  used in operating activities                         |   |                                          | (259,490   | )                          |   | (250,740                             | )      |   | (4,591,123 | ) |
|                                                                       |   |                                          |       |                       |   |                                 |   |   |   |   |
| Cash                  flows from financing activities:                     |   |                                          |       |                       |   |                                 |   |   |   |   |
| Cash                  retained by former subsidiary                        |   |                                          | (36,893    | )                          |   |                                 |   |   | (36,893 | ) |
| Advances                  from stockholder                                 |   |                                          | 256,957    |                       |   | —                              |   |   | 712,335 |   |
| Proceeds                  from sale of convertible notes                   |   |                                          | —    |                       |   | —                              |   |   | 500,000 |   |
| Proceeds                  from sale of common stock                        |   |                                          | —    |                       |   | 260,475                              |   |   | 3,394,755 |   |
| Cash                  provided by financing activities                     |   |                                          | 220,064    |                       |   | 260,475                              |   |   | 4,570,197 |   |
|                                                                       |   |                                          |       |                       |   |                                 |   |   |   |   |
| Effect                  of exchange rate changes on cash                   |   |                                          | —    |                       |   | (2,491                               | )      |   | 20,926 |   |
|                                                                       |   |                                          |       |                       |   |                                 |   |   |   |   |
| Net                  (decrease) increase in cash                           |   |                                          | (39,426    | )                          |   | 7,244                                |   |   | — |   |
| Cash,                  beginning of period                                 |   |                                          | 39,426     |                       |   | 2,946                                |   |   | — |   |
| Cash,                  end of period                                       |   | $                                             | —    |                       | $      | 10,190                               |   | $ | — |   |
|                                                                       |   |                                          |       |                       |   |                                 |   |   |   |   |
| 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                        |   |                                          | 75,168     |                       |   | —                              |   |   |   |   |

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*Table            of Contents*

**NEW      GENERATION HOLDINGS, INC.**

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL      STATEMENTS**

**NOTE      A - SUMMARY OF ACCOUNTING POLICIES**

**BUSINESS**

**BASIS      OF PRESENTATION**

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*Table            of Contents*

**GOING      CONCERN**

**USE      OF ESTIMATES**

**NET      EARNINGS (LOSS) PER SHARE**

**RECLASSIFICATIONS**

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*Table            of Contents*

**NEW      ACCOUNTING PRONOUNCEMENTS**

**NOTE      B -CAPITAL STOCK**

**NOTE      C -RELATED PARTY TRANSACTIONS**

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*Table            of Contents*

| **ITEM                2.** | **MANAGEMENT'S                DISCUSSION AND ANALYSIS OR PLAN OF                OPERATION** |
|----------------------------|---------------------------------------------------------------------------------------------|

**CRITICAL      ACCOUNTING POLICIES**

***Use      of Estimates***

***Foreign      Currency Translation***

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*Table            of Contents*

***Going      Concern***

**RECENT      ACCOUNTING PRONOUNCEMENTS**

**MANAGEMENT'S      PLAN OF OPERATION**

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*Table            of Contents*

**RESULTS      OF OPERATIONS**

**THREE      MONTHS ENDED MARCH 31, 2007 COMPARED TO THE THREE MONTHS ENDED MARCH 31,      2006**

**LIQUIDITY      AND CAPITAL RESOURCES**

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*Table            of Contents*

**Off-Balance      Sheet Arrangements**

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*Table            of Contents*

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

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*Table            of Contents*

**PART      II - OTHER INFORMATION**

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

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

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

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

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*Table            of Contents*

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

|  **MATTER**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | **VOTES****FOR** |  **VOTES                AGAINST** | **ABSTENTIONS** |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------|----------------------------------------|-----------------|
| To                elect the following Directors to hold office for a term of one year                and                until their successors are elected and qualified: Jacques                MotMarcel                Rokegem                                                                                                                                                                                                                                                                                                    | 70,418,395       | 0                                      | 0               |
| To                approve the “spin-off” of the common stock of Plastinum Corp. held by the                Company to the Company’s stockholders.                                                                                                                                                                                                                                                                                                                                                                  | 70,413,395       | 0                                      | 5,000           |
| To                approve the amendment of the Company’s certificate of incorporation to                increase the number of authorized shares of the Company’s common stock                from 50,000,000 to 150,000,000.                                                                                                                                                                                                                                                                                            | 70,413,395       | 0                                      | 5,000           |
| To                ratify the “debt conversion transaction” previously effected by the                Company with its President and Chief Executive Officer, Jacques Mot,                pursuant to which Mr. Mot obtained the right to convert debt of the                Company to him into shares of Preferred Stock of the Company representing                approximately 44.4 % of the outstanding shares of Common Stock of                the                Company on an “as converted” basis. | 31,741,319       | 0                                      | 5,000           |
| To                ratify the appointment of Russell Bedford Stefanou Mirchandani LLP                as                independent auditors of the Company for the fiscal year ending December                31, 2006.                                                                                                                                                                                                                                                                                                               | 69,928,395       | 0                                      | 490,000         |

| **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 |

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*Table          of Contents*

| &      | 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.                                                                                                                               |

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*Table          of Contents*

| &  | 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                                                     |
|                     |                                                                                                                                                                                                             |
|                     |                                                                                                                                                                                                             |

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*Table            of Contents*

**SIGNATURES**

|   | **NEW                GENERATION HOLDINGS, INC.*****(Registrant)*** |
|--------|--------------------------------------------------------------------|
|   |                                                               |   |
|   |                                                               |   |
|   | By:                                                      | /s/                Jacques Mot |
|   |                                                               | Name:                Jacques Mot |
|   |                                                               | Title:                President and Chief Executive Officer |
|   |                                                               |   |
|   | Date:                May 11, 2007                                  |
|   |                                                               |   |
|   |                                                               |   |
|   | By:                                                      | /s/                Robert Scherne |
|   |                                                               | Name:                Robert Scherne |
|   |                                                               | Title:                Chief Financial Officer |
|   |                                                               |   |
|   | Date:                May 11, 2007                                  |

----