10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANTTO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2015

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period From_______ to _______

333-179669

Commission file number

NEW GLOBAL ENERGY, INC.

(Exact name of small business issuer as specified in its charter)

Wyoming	45-4349842
(State of incorporation)	(IRS Employer Identification Number)

109 East 17^th Street

Suite 4217

Cheyenne, WY 82001

(Address of principal executive office)

(307) 633-9192

(Issuer's telephone number)

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to the filing requirement for at least the past 90 days. Yes ¨ No x

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). x Yes   ¨ No

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	¨	Smaller reporting company	x
(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Common Stock, par value $.0001 per share 13,097,365 outstanding shares as of March 31, 2015.

NEW GLOBAL ENERGY, INC.

PART I - FINANCIAL INFORMATION
Item 1.	Financial Statements-unaudited
	Condensed Consolidated Balance Sheets as of March 31, 2015 (unaudited) and December 31, 2014	3
	Condensed Consolidated Statements of Operations for the Three Month Periods Ended March 31, 2015 and March 31, 2014 (unaudited)	4
	Condensed Consolidated Statements of Cash Flows for the Three Month Periods Ended March 31, 2015 and March 31, 2014 (unaudited)	5
	Condensed Consolidated Statement of Stockholders' Equity for the period ended March 31, 2015 (unaudited)	6
	Notes to Condensed Consolidated Financial Statements	7
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	10
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	13
Item 4.	Controls and Procedures	13
PART II - OTHER INFORMATION
Item 1.	Legal Proceedings.	14
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	14
Item 3.	Defaults Upon Senior Securities	14
Item 4.	Not Required	14
Item 5.	Other Information	14
Item 6.	Exhibits	14
Signatures		15

2

ITEM 1. FINANCIAL STATEMENTS

New Global Energy, Inc.

Condensed Consolidated Balance Sheets

 

	March 31, 2015			December 31, 2014
	(unaudited)
Assets
Current assets
Cash	$	13,760		$	25,008
Accounts receivable		0			3,661
Inventory		6,000			43,043
Total current assets		19,760			71,712
Property & equipment, net		5,378,799			5,400,251
Other assets:
Goodwill		16,182,601			16,182,601
Deposits		6,238			6,238
Total other assets		16,188,839			16,188,839
Total Assets	$	21,587,398		$	21,660,802
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable-trade	$	174,696		$	170,685
Accrued expenses		496,120			486,052
Due to related parties		350,558			295,558
Current portion of long-term debt		287,722			812,108
Derivative liability		415,006			560,110
Total current liabilities		1,724,102			2,324,513
Notes payable, net of current portion		510,848			182,157
Total liabilities		2,234,950			2,506,670
Stockholders' Equity:
Preferred stock-20,000,000 authorized $0.0001 par value 6,816 issued and outstanding (liquidation preference of $1,022,400)		1			0
Common stock-100,000,000 authorized $0.0001 par value 13,097,365 issued & outstanding		1,310			1,310
Additional paid-in capital		36,442,512			34,108,982
Accumulated deficit		(24,067,184	)		(21,972,929	)
Total New Global stockholders' equity		12,376,639			12,137,363
Non-controlling interest		6,975,809			7,016,769
Total stockholders' equity		19,352,448			19,154,132
Total Liabilities & Stockholders' Equity	$	21,587,398		$	21,660,802

See notes to unaudited condensed consolidated financial statements.

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New Global Energy, Inc.

Condensed Consolidated Statements of Operations

(unaudited)

 

	Three Months Ended March 31, 2015			Three Months Ended March 31, 2014 (restated)
Revenue	$	20,247		$	0
Costs & Expenses:
Costs of goods sold		65,660			0
Depreciation & Amortization		33,328			0
General & administrative		180,966			90,748
Total Operating Costs & Expenses		279,954			90,748
Other (Gain) Expense:
Derivative valuation (gain) charge		(145,104	)		6,272,480
Interest expense & amortization of debt discount		27,880			120,757
Interest income		0			(4,919	)
Loss on settlement of debt		1,992,732			0
Net loss from equity method investment		0			33,804
Total Other Expense		1,875,508			6,422,122
Loss before income taxes		(2,135,215	)		(6,512,870	)
Provision for income taxes		0			0
Net loss		(2,135,215	)		(6,512,870	)
Net loss attributable to non-controlling interest		40,960			0
Net loss attributable to New Global	$	(2,094,254	)	$	(6,512,870	)
Basic and diluted per share amounts:
Basic and diluted net loss	$	(0.16	)	$	(2.40	)
Weighted average shares outstanding (basic & diluted)		13,097,365			2,709,704

See notes to unaudited condensed consolidated financial statements.

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New Global Energy, Inc.
Condensed Consolidated Statement of Cash Flows
(unaudited)
	Three Months Ended March 31, 2015			Three Months Ended March 31, 2014  (restated)
Cash flows from operating activities:
Net Loss	$	(2,135,215	)	$	(6,512,870	)
Adjustments required to reconcile net loss
to cash used in operating activities:
Net loss from to equity method investment		0			33,804
Derivative valuation charge (gain)		(145,104	)		6,272,480
Loss realized upon conversion of debt		1,992,732			0
Amortization of debt discount		0			114,126
Depreciation and amortization		33,328			0
Changes in operating assets and liabilities:
Decrease in accounts receivable		3,661			0
Increase in interest receivable		0			(4,919	)
Decrease in inventory		37,043			0
Increase in accounts payable		3,849			0
Increase in accrued expenses		10,228			6,632
Cash used in operating activities:		(199,478	)		(90,747	)
Cash flows from investing activities:
Advances to equity method investee		0			(135,000	)
Purchase of equipment		(11,875	)		0
Cash used in investing activities		(11,875	)		(135,000	)
Cash flows from financing activities:
Proceeds from issuance of common stock		0			72,000
Proceeds of notes payable		259,800			0
Proceeds of convertible note advances		0			150,000
Payments on long-term debt		(114,695	)		0
Payments made on related party debt		55,000			0
Cash provided by financing activities		200,105			222,000
Change in cash		(11,248	)		(3,747	)
Cash-beginning of period		25,008			19,076
Cash-end of period	$	13,760		$	15,329
Cash paid during the period for:
Interest	$	0		$	0
Income taxes	$	0		$	0
Supplemental Cash Flow Disclosure of non-cash activity:
Fair value of preferred/common stock issued upon settlement of debt	$	2,333,530		$	3,440,745
Derivative liability eliminated upon debt conversion	$	0		$	3,418,304
Note principal converted to common stock	$	0		$	104,265
Net gain on conversion of notes payable and derivative liability	$	510,841		$	81,824
Debt discount recorded at issuance of convertible debt and warrants	$	0		$	150,000
Fair value of common stock issued upon exercise of warrants	$	0		$	432,000
Derivative liability eliminated upon exercise of warrants	$	0		$	412,216
Net gain on exercise of warrants and derivative liability	$	445,332		$	52,216

See notes to unaudited condensed consolidated financial statements.

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New Global Energy, Inc.

 Condensed Consolidated Statement of Stockholders' Equity

(unaudited)

     

														Non-
														Controlling
														interest in
									Additional					variable
	Preferred Stock					Common Stock			paid-in		Accumulated			interest			Total
	Shares		Amount		Shares		Amount		capital		Deficit			entity			Equity
Balance at December 31, 2014			$	0		13,097,365	$	1,310	$	34,108,982	$	(21,972,929	)	$	7,016,769		$	19,154,132
Preferred stock issued to settle debt		6,816		1		0		0		2,333,530		0			0			2,333,531
Net Loss		0		0		0		0		0		(2,094,254	)		(40,960	)		(2,135,214	)
Balance at March 31, 2015		6,816	$	1		13,097,365	$	1,310	$	36,442,512	$	(24,067,184	)	$	6,975,809		$	19,352,448

See notes to unaudited condensed consolidated financial statements.

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NEW GLOBAL ENERGY, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2015

Note 1. Organization and nature of operations:

Background 

New Global Energy, Inc. ("NGE" or the "Company") was organized on January 24, 2012. NGE's executive offices are located in Brevard County, Florida. The Company is focused on the development of its Global Energy Plantation ("GEP") Platform which combines alternative energy production, sustainable agriculture and aquaculture. It anticipates the use of non-centralized power plants, primarily concentrated solar power, Jatropha based biofuels and aquaculture operations to produce power for its own use and to feed into the power grid serving local power needs while producing farm grown fish and shrimp as food products. Management has begun to execute this plan through the purchase of a noncontrolling equity interest and rights to majority of profits of Aqua Farming Tech, Inc. ("AFT"). The Company is in the process of raising additional equity capital to support the completion of its acquisition and development activities. The Company's activities are subject to significant risks and uncertainties, including failing to secure additional funding to operationalize the Company. 

Going Concern 

The accompanying financial statements have been prepared assuming the Company will continue as a going concern, which contemplates, among other things, the realization of assets and satisfaction of liabilities in the normal course of business. The Company has earned no revenue earned since inception, and lacks any operational history. These matters, among others, raise substantial doubt about our ability to continue as a going concern. 

While the Company is attempting to commence operations and generate revenues, the Company's cash position may not be significant enough to support the Company's daily operations. Management intends to raise additional funds by way of a public or private offering. Management believes that the actions presently being taken to further implement its business plan and generate revenues provide the opportunity for the Company to continue as a going concern. While the Company believes in the viability of its strategy to generate revenues and in its ability to raise additional funds, there can be no assurances to that effect. The ability of the Company to continue as a going concern is dependent upon the Company's ability to further implement its business plan and generate revenues. 

The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern 

Basis of Presentation 

The accompanying condensed consolidated balance sheet as of December 31, 2014, which was derived from audited financial statements, and the unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete consolidated financial statements. The results of operations for the periods presented are not necessarily indicative of the results expected for the full fiscal year or any future period. These financial statements should be read in conjunction with the audited financial statements and related notes for the fiscal year ended December 31, 2014, included in the Company's Annual Report on Form 10-K covering that period. 

In the opinion of management, the information furnished in these interim financial statements reflect all adjustments necessary for a fair statement of the financial position and results of operations and cash flows as of and for the three-month periods ended March 31, 2015 and 2014. All such adjustments are of a normal recurring nature. The financial statements do not include some information and notes necessary to conform with annual reporting requirements. 

Note 2. Summary of Significant Accounting Policies

Use of Estimates 

The preparation of these financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on going basis, we evaluate our estimates, including those related intangible assets, income taxes, insurance obligations and contingencies and litigation. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other resources. Actual results may differ from these estimates under different assumptions or conditions. The results of operations for the periods presented are not necessarily indicative of the results for the full fiscal year or any future period.  

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Earnings per Common Share: We compute net (loss) per share in accordance with FASB ASC 260, Earning per Share. FASB ASC 260 requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period. For the interim periods ended March 31, 2015 and 2014, the following potentially dilutive securities have been excluded from the calculation of diluted loss per share because their impact was antidilutive. 

	March 31, 2015		March 31, 2014
Preferred Stock		981,504		0
Convertible Debt		0		2,000,000
Warrants		117,416		528,000
Carrying value at end of year		1,098,920		2,528,000

 Reclassification 

Certain amounts from the prior period have been reclassified to conform to the current period presentation

Recent Accounting Pronouncements 

In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-03, "Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs." ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. Currently, debt issuance costs are recognized as deferred charges and recorded as other assets. The guidance is effective for annual and interim periods beginning after December 15, 2015 with early adoption permitted and is to be implemented retrospectively. Adoption of the new guidance will only affect the presentation of the Company's consolidated balance sheets and will have no impact to our financial statements. 

The Company has implemented all new relevant accounting pronouncements that are in effect through the date of these financial statements. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

Note 3. Stockholders' Equity:

Current Authorization 

We are currently authorized to issue up to 100,000,000 shares of $ 0.0001 par value common stock and 20,000,000 preferred stock.. All issued shares of common stock are entitled to vote on a 1 share/1 vote basis.  

Recent Issuances 

Shares issued in settlement of debt: In February and March 2015 we issued a total of 6,816 shares of Series "A" Preferred stock in settlement of $340,800 of principal due on notes payable. The shares were valued at fair value using an Option Pricing model coupled with the Equity Allocation method. The resultant value of $2,333,531 was derived using the following significant assumptions:  

Risk free interest rate	.49% to .70%
Expected volatility	82% to 90%
Expected years to liquidity	2 years
Expected dividend yield	0%

Each share of Series A Preferred Stock shall be convertible, at the option of the holder, at any time into such number of fully paid and non-assessable shares of Common Stock as is determined by multiplying the number of issued and outstanding shares of the Corporation's Common Stock by .0000110. Provided however, that such number of common shares into which each share of Series A Stock may be converted shall not exceed 220. As of March 31, 2015 each share would convert into approximately 144 common shares. The shares are entitled to a liquidation preference of $150 per share and dividends on a pro-rata basis with the common if and when declared.  

8

Note 4. Derivative Warrant Liabilities: 

The aggregate fair value of the derivative liability arising from the warrants was determined to be $415,006 at March 31, 2015. 

The Company values its warrant derivatives and simple conversion option derivatives using the Black-Scholes option-pricing model. Assumptions used include:  

· risk-free interest rate- 0.15%-.0.36%

· warrant life is the remaining contractual life of the warrants,

· expected volatility-319% to 329%,

· expected dividends-none

· exercise prices as set forth in the agreements,

· common stock price of the underlying share on the valuation date, and

· number of shares to be issued if the instrument is converted

The following table summarizes the derivative liabilities included in the balance sheet: 

	Warrants
Fair value at December 31, 2014	$	560,110
Adjustments to fair value at March 31, 2015		(145,104	)
Fair value at March 31, 2015	$	415,006

Note 5. Current Loan Activity:

During the quarter ended March 31, 2015 the Company borrowed $259,800 from a related party through a series of three $100,000 unsecured promissory notes. The notes bear interest at 4% and are payable one year from the date of issuance. During the quarter $137,500 of previously issued notes and $203,300 of the new notes were settled by the issuance of 6,816 shares of preferred stock valued at $2,333,531. As of March 31, 2015 $56,500 remains outstanding. As of March 31, 2015 the Company had unused credit of $2,700 on these notes.  

On March 10, 2015 the Company executed an extension and new loan agreement with First General Bank consolidating the existing principal balance of $466,312 and accrued interest and other fees of $39,866 for a total of $506,178. The note bears interest at 6.5% and requires monthly payments of $3,449. The entire amount is due on March 10, 2017 and is secured by the property and equipment of AFT.  

Note 6. Fair Value Measurements:

The following table summarizes assets and liabilities measured at fair value on a recurring basis as of March 31, 2015: 

 

	March 31, 2015
Description of assets:	Level 1		Level 2		Level 3		Total
None	$	-	$	-	$	-	$	-
Description of liabilities:
Derivatives	$	-	$	-	$	415,006	$	415,006

Note 7. Subsequent Events: 

On May 11, 2015, the Company's Board of Directors approved the acquisition of certain technologies through three agreements including an exclusive license to VIP Patient Management Software System (Electronic Medical Records (EMR) and Electronic Health Records (EHR) Platforms) an exclusive license to Canacard Patient Management Systems Software, a HIPAA compliant platform that manages end-to-end transactions involved in providing safe access to controlled substances. The exclusive license from ALTERNATE HEALTH, INC., and is for a period of 20 years for the United States and Puerto Rico. This software is included under the International Patent Application PCT/CA2014/050890. The Company agreed to issue 1,500,000 commons shares for these licenses as well as warrants to purchase an additional 1,100,000 at a price equal to 50% of the market price on the day of issue. There is additional consideration of $1,500,000 due when as and if funding of operations under these licenses is closed. 

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

The following discussion and analysis is intended as a review of significant factors affecting our financial condition and results of operations for the periods indicated. The discussion should be read in conjunction with our consolidated financial statements and the notes presented herein. In addition to historical information, the following Management's Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking statements that involve risks and uncertainties. Our actual results could differ significantly from those anticipated in these forward-looking statements as a result of certain factors discussed in this Form 10-Q.  

Overview and Financial Condition 

New Global Energy, Inc. ("NGE" or the "Company") is a sustainable agriculture and aquaculture company organized as a Wyoming corporation on January 24, 2012 with executive offices located in Brevard County, Florida. The Company focuses on the use of advanced technology and farming techniques with the goal of increasing production and decreasing costs. The Company is focused on internal growth and growth through the acquisition of high-growth firms, assets and properties in the Green market space; industry segments include sustainable agriculture, aquaculture, solar, biofuels and carbon credits. Management is targeting growth stage assets, operations and companies that possess proprietary market edge and demonstrate solid opportunity to scale their business. We expect to pursue special opportunities that are anticipated to accelerate shareholder value by consolidating certain tiers of the $5 Trillion per year fragmented Green and Renewable Energy industry. 

The first portion of the Company's development included the development of its Global Energy Plantation ("GEP") using its Global Cell concept which combines alternative energy (source of usable energy intended to replace fuel sources without the undesired consequences of the replaced fuels) production, sustainable agriculture (practice of farming using principles of ecology, the study of relationships between organisms and their environment) and aquaculture (the farming of aquatic organisms such as fish, crustaceans, molluscs and aquatic plants). It uses non centralized power plants, primarily solar power and aquaculture operations to produce power for its own use and to feed into the power grid serving local power needs while producing farm grown fish and shrimp as food products. 

The Company is focused on internal growth and growth through the acquisition of high-growth firms, assets and properties in the Green market space; industry segments include sustainable agriculture, aquaculture, solar, biofuels and carbon credits. Management is targeting growth stage assets, operations and companies that possess proprietary market edge and demonstrate solid opportunity to scale its business. The Company expects to scale its business through the development of the acquisition of existing farms and through the acquisition of additional farms. The Company believes that it can lower the costs of operations in anticipated acquisition through the construction of the solar generating systems and algae based feeding programs. The Company anticipates that if it is able to improve the metrics associated with the cost of production it will be able to attain a competitive advantage other farms in that market space. 

By the end of 2013, the Company had completed incremental acquisitions of Aqua Farming Tech, Inc. ("AFT") bringing its total ownership to 36.69%. AFT is a California corporation with aquaculture and agriculture operations in the Coachella Valley in Southern California that operates a large aquaculture operation on two parcels of land totaling 118.9 acres. On July 15, 2014 the Company acquired a 43.66% Net Revenue Interest in and to the net revenues from the operations of AFT's aquaculture operations in Southern California. Cash allocable to the Net Revenue Interest is calculated and distributed on a quarterly basis within forty five (45) days after the end of each calendar quarter. The Company has determined that the acquisition of this 43.6% Net Revenue Interest, considering its previously held equity interest (PHEI), The outstanding debt owed by AFT to the Company, and implicit variable interest resulting from the acquisition of Net Revenue Interest resulted in the Company being the Primary Beneficiary of AFT and consolidating AFT as of July 15, 2014. 

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Forward-looking statements such as this are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated by a forward-looking statement. These risks and uncertainties include, without limitation: (1) the potential acquisitions or mergers may not be consummated in a timely manner, if at all; (2) any merger agreement may be terminated in circumstances that require the Company to pay a termination fee or reimburse certain expenses; (3) the diversion of management's attention from the Company's ongoing business operations; (4) the ability of the Company to retain and hire key personnel; (5) the effect of the announcement of any acquisition or Merger on the Company's business relationships, operating results and business generally; (6) competitive responses to any proposed Merger; and (7) the failure to obtain any requisite approvals to any Merger, such as stockholder approval. The Company expressly disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.  

Results of Operations for the Three Months ended March 31, 2015 compared to March 31, 2014 

The Company had revenues for the three month period ended March 31, 2015 of $20,247 up from revenues of $0 for the same period the prior year. Selling, general and administrative expenses for the same three months ended March 31, 2015 were $279,954, up from $90,748 for the same period the prior year. The increases were significantly associated with the consolidation of the Company's financial statements with Aqua Farming Tech, Inc.  

We charge the initial valuation of the conversion feature and warrants by offsetting the carrying value of the note up to the principal. Initial derivative values in excess of note principal are immediately charged to interest expense. Derivative valuation charged to interest expense was ($145,104) for the three months ended March 31, 2015 down from $6,272,480 for the same period the prior year with the decrease substantially due to the conversion and payment of notes prior to the reported period. This significant decline in derivative valuation charge resulted in a decline in Net Loss for the reported period to ($2,094,524) from ($6,512,870) for the same period the prior year. 

Emerging Growth Company: 

We qualify as an "emerging growth company" under the 2012 JOBS Act. Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. As an emerging growth company, we can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of the benefits of this extended transition period.  

The Company has implemented all new relevant accounting pronouncements that are in effect through the date of these financial statements. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

	Cash Flows Three Months Ended
	March 31, 2015			March 31, 2014
Net Cash Used by Operating Activities	$	(199,478	)	$	(90,747	)
Net Cash Used by Investing Activities	$	(11,875	)	$	(135,000	)
Net Cash Provided by Financing Activities	$	200,105		$	222,000
Cash Ending Balance	$	13,760		$	15,329

Although consolidated financials with Aqua Farming Tech, Inc. show revenues, the Company's cash position may not be significant enough to support the Company's daily operations. Management intends to raise additional funds by way of a public or private offering. Management believes that the actions presently being taken to further implement its business plan and generate revenues provide the opportunity for the Company to continue as a going concern. While the Company believes in the viability of its strategy to generate revenues and in its ability to raise additional funds, there can be no assurances to that effect. The ability of the Company to continue as a going concern is dependent upon the Company's ability to further implement its business plan and generate revenues. 

11

Financing Activities 

During the three months ended March 31, 2015, The Board of Directors of the Company approved the designation of 25,000 shares of the Company's Preferred Stock as "Series A Redeemable Convertible Preferred Stock" providing for redemption, conversion and preferences a set out in the Certificate of Designation of Rights, Privileges, Preferences and Restrictions of Series A Redeemable Convertible Preferred Stock of New Global Energy, Inc. file as Exhibit 4.1 with this Form 8-K filed January 22, 2015. 

In February and March 2015, the Company settled $340,800 of debt for 6,816 shares of the Company's Series A Redeemable Convertible Preferred stock. The Company has designated a total of 25,000 shares of Series A Preferred Stock. The Company showed a loss upon the settlement of this debt of $1,992,732 based on the fair value of the preferred stock. 

For the three months ended March 31, 2015, net cash provided from financing activities was $200,105. 

The Company has historically met its cash needs through a combination of cash flows from operating activities along with long and short term borrowings and through the sale of its stock. 

During the Company's fiscal quarter ending March 31, 2015, the Company borrowed an additional $259,800 from Bio-Global Resources, a private unrelated company, for operating capital under three Promissory Notes carrying interest at the rate of 4% and due and payable one year from the date of the notes. These notes carried no conversion or warrant provisions. 

Contractual Obligations 

The company has acquired Net Revenue interests and crop leases (see Overview of Financial Condition above). In addition, the Company has been reviewing various real property to utilize in its business plan and has been exploring the use of project finance structures to fund such acquisition and development of business activities. The Company expects to enter into such transaction or transactions during the next 12 months. There are currently no transactions under contract and there is no assurance that the company will be able to complete such transactions. 

Subsequent to the end of the reported period, on May 11, 2015, the Company's Board of Directors approved the acquisition of certain technologies through three agreements including an exclusive license to VIP Patient Management Software System (Electronic Medical Records (EMR) and Electronic Health Records (EHR) Platforms) an exclusive license to Canacard Patient Management Systems Software, a HIPAA compliant platform that manages end-to-end transactions involved in providing safe access to controlled substances. The exclusive license from ALTERNATE HEALTH, INC., and is for a period of 20 years for the United States and Puerto Rico. This software is included under the International Patent Application PCT/CA2014/050890. The Company agreed to issue 1,500,000 commons shares for these licenses as well as warrants to purchase an additional 1,100,000 at a price equal to 50% of the market price on the day of issue. There is additional consideration of $1,500,000 due when as and if funding of operations under these licenses is closed. 

Commitments and Capital Expenditures  

The Company had no material commitments for capital expenditures as of March 31, 2015.  

Off-Balance Sheet Arrangements 

The Company does not have any relationships with entities or financial partnerships, such as entities often referred to as structured finance or special purpose entities, which would have been established for the purpose of facilitating off-balance sheet financial arrangements. 

12

ITEM 3. Quantitative and Qualitative Disclosures about Market Risk 

Not required for smaller reporting companies. 

ITEM 4. Controls and Procedures 

We maintain "disclosure controls and procedures," as such term is defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (the "Exchange Act"), that are designed to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission rules and forms, and that such information is accumulated and communicated to our management, including our Principal Executive Officer and Principal Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. We conducted an evaluation under the supervision and with the participation of our Principal Executive Officer and Principal Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this report pursuant to Rule 13a-15 of the Exchange Act. Based on this Evaluation, our Principal Executive Officer and Principal Financial Officer concluded that our Disclosure Controls were not effective as of the end of the period covered by this report. 

The limited size of the company including a limited staff makes it extremely difficult to segregate duties in a way that will allow disclosure controls and procedures to be implemented in an effective way. To the extent that the Company is able to add other executives and professional staff with increased business, it will continue its efforts to create an effective system of disclosure controls and procedures.  

a)	The Company lacks the financial infrastructure to account for complex transactions which may result in a greater than normal risk that material errors may occur in the financial statements and not be detected timely.
b)	The Company currently relies upon independent financial reporting consultants for review of critical accounting areas and disclosures and material non-standard transactions.
c)	Lack of sufficient segregation of duties. Specifically, this material weakness is such that management must rely primarily on detective controls and controls could be strengthened by adding preventative controls to properly safeguard company assets.

Changes in Internal Controls 

We have also evaluated our internal control for financial reporting and there have been no significant changes in our internal controls or in other factors that could significantly affect those controls subsequent to the date of their last evaluation.

13

 

PART II - OTHER INFORMATION

ITEM 1. Legal Proceedings 

There are no pending legal proceedings. The Company may subject to other legal proceedings that arise in the ordinary course of its business and from prior management activities. Other than as previously disclosed, in the opinion of present management, the aggregate liability, if any, with respect to these other actions will not materially adversely affect our financial position, results of operations or cash flows. 

ITEM 1A. Risk Factors 

Not required for smaller reporting companies. 

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 

The Company issued no shares of its common stock during the reported period. 

ITEM 3. Defaults Upon Senior Securities 

None 

ITEM 4. Other Information 

 None 

ITEM 5. Exhibits  

a) Exhibits

31.1	Section 302 Certification By Chief Executive Officer and Principal Financial Officer
32.1	Section 906 Certification of Principal Executive Officer and Principal Financial Officer

14

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has caused this report to be signed on its behalf by the undersigned thereunto duly authorized. 

	NEW GLOBAL ENERGY, INC.
July 15, 2015	By:	/s/ Perry West
		Perry West
		CEO an Director

15

EX-31.1

EXHIBIT 31.1

NEW GLOBAL ENERGY, INC.

OFFICER'S CERTIFICATE PURSUANT TO SECTION 302 

I, Perry West, the Chief Executive Officer and Chief Financial Officer of New Global Energy, Inc. certify that: 

1.	I have reviewed this Form 10-Q of New Global Energy, Inc.
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the small business issuer as of, and for, the periods presented in this report;
4.	The small business issuer's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the small business issuer and have:

(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the small business issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)	Evaluated the effectiveness of the small business issuer's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)	Disclosed in this report any change in the small business issuer's internal control over financial reporting that occurred during the small business issuer's most recent fiscal quarter (the small business issuer's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the small business issuer's internal control over financial reporting; and

5. The small business issuer's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the small business issuer's auditors and the audit committee of the small business issuer's board of directors (or persons performing the equivalent functions):

(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the small business issuer's ability to record, process, summarize and report financial information; and
(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer's internal control over financial reporting.

Dated: July 15, 2015	By:	/s/ Perry West
		Perry West
		Chief Executive Officer and Chief Financial Officer

EX-32.1

EXHIBIT 32.1 

NEW GLOBAL ENERGY, INC.

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF

THE SARBANES-OXLEY ACT OF 2002 

In connection with the Quarterly Report of New Global Energy, Inc. (the Company) on Form 10-Q for the period ended March 31, 2015 as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Perry West, Chief Executive Officer and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. ss.1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:  

(1)	The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

A signed original of this written statement required by Section 906 has been provided to New Global Energy, Inc. and will be retained by New Global Energy, Inc. and furnished to the Securities and Exchange Commission or its staff upon request. 

July 15, 2015	By:	/s/ Perry West
		Perry West
		Chief Executive Officer and Chief Financial Officer

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Stockholders' Equity

3 Months Ended

Mar. 31, 2015

Notes to Financial Statements

Note 3. Stockholders' Equity

Current Authorization 

We are currently authorized to issue up to 100,000,000 shares of $ 0.0001 par value common stock and 20,000,000 preferred stock.. All issued shares of common stock are entitled to vote on a 1 share/1 vote basis.  

Recent Issuances 

Shares issued in settlement of debt: In February and March 2015 we issued a total of 6,816 shares of Series "A" Preferred stock in settlement of $340,800 of principal due on notes payable. The shares were valued at fair value using an Option Pricing model coupled with the Equity Allocation method. The resultant value of $2,333,531 was derived using the following significant assumptions:  

Risk free interest rate	.49% to .70%
Expected volatility	82% to 90%
Expected years to liquidity	2 years
Expected dividend yield	0%

Each share of Series A Preferred Stock shall be convertible, at the option of the holder, at any time into such number of fully paid and non-assessable shares of Common Stock as is determined by multiplying the number of issued and outstanding shares of the Corporation's Common Stock by .0000110. Provided however, that such number of common shares into which each share of Series A Stock may be converted shall not exceed 220. As of March 31, 2015 each share would convert into approximately 144 common shares. The shares are entitled to a liquidation preference of $150 per share and dividends on a pro-rata basis with the common if and when declared.

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Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2015

Notes to Financial Statements

Note 2. Nature of Operations and Summary of Significant Accounting Policies

Use of Estimates 

The preparation of these financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on going basis, we evaluate our estimates, including those related intangible assets, income taxes, insurance obligations and contingencies and litigation. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other resources. Actual results may differ from these estimates under different assumptions or conditions. The results of operations for the periods presented are not necessarily indicative of the results for the full fiscal year or any future period.  

Earnings per Common Share: We compute net (loss) per share in accordance with FASB ASC 260, Earning per Share. FASB ASC 260 requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period. For the interim periods ended March 31, 2015 and 2014, the following potentially dilutive securities have been excluded from the calculation of diluted loss per share because their impact was antidilutive. 

	March 31, 2015		March 31, 2014
Preferred Stock		981,504		0
Convertible Debt		0		2,000,000
Warrants		117,416		528,000
Carrying value at end of year		1,098,920		2,528,000

Reclassification 

Certain amounts from the prior period have been reclassified to conform to the current period presentation

Recent Accounting Pronouncements 

In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-03, "Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs." ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. Currently, debt issuance costs are recognized as deferred charges and recorded as other assets. The guidance is effective for annual and interim periods beginning after December 15, 2015 with early adoption permitted and is to be implemented retrospectively. Adoption of the new guidance will only affect the presentation of the Company's consolidated balance sheets and will have no impact to our financial statements. 

The Company has implemented all new relevant accounting pronouncements that are in effect through the date of these financial statements. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

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Condensed Consolidated Balance Sheets - USD ($)	Mar. 31, 2015	Dec. 31, 2014
Current assets:
Cash	$ 13,760	$ 25,008
Accounts receivable	0	3,661
Inventory	6,000	43,043
Total current assets	19,760	71,712
Property and equipment, net	5,378,799	5,400,251
Other assets:
Goodwill	16,182,601	16,182,601
Deposits	6,238	6,238
Total other assets	16,188,839	16,188,839
Total Assets	21,587,398	21,660,802
Current liabilities:
Accounts payable-trade	174,696	170,685
Accrued expenses	496,120	486,052
Due to related parties	350,558	295,558
Current portion of long-term debt	287,722	812,108
Derivative liability	415,006	560,110
Total current liabilities	1,724,102	2,324,513
Notes payable, net of current portion	510,848	182,157
Total liabilities	2,234,950	2,506,670
Stockholders' Equity:
Preferred stock-20,000,000 authorized $0.0001 par value 6,816 issued and outstanding (liquidation preference of $1,022,400)	1	0
Common stock-100,000,000 authorized $0.0001 par value 13,097,365 issued & outstanding	1,310	1,310
Additional paid-in capital	36,442,512	34,108,982
Accumulated deficit	(24,067,184)	(21,972,929)
Total New Global stockholders' equity	12,376,639	12,137,363
Non-controlling interest	6,975,809	7,016,769
Total stockholders' equity	19,352,448	19,154,132
Total Liabilities & Stockholders' Equity	$ 21,587,398	$ 21,660,802

XML

Condensed Consolidated Statement of Stockholders' Equity - 3 months ended Mar. 31, 2015 - USD ($)	Preferred Stock	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Non-Controlling interest in variable interest entity	Total
Beginning Balance, Shares at Dec. 31, 2014		13,097,365
Beginning Balance, Amount at Dec. 31, 2014	$ 0	$ 1,310	$ 34,108,982	$ (21,972,929)	$ 7,016,769	$ 19,154,132
Preferred stock issued to settle debt, Shares	6,816	0
Preferred stock issued to settle debt, Amount	$ 1	$ 0	2,333,530	0	0	2,333,531
Net loss	$ 0	$ 0	0	(2,094,254)	(40,960)	(2,135,214)
Ending Balance, Shares at Mar. 31, 2015	6,816	13,097,365
Ending Balance, Amount at Mar. 31, 2015	$ 1	$ 1,310	$ 36,442,512	$ (24,067,184)	$ 6,975,809	$ 19,352,448

XML

Derivative and Warrant Liabilities (Details Narrative)	Mar. 31, 2015 USD ($)
Derivative And Warrant Liabilities Details Narrative
Aggregate fair value of the derivative liability	$ 415,006

XML

Fair Value Measurements (Details) - USD ($)	Mar. 31, 2015	Dec. 31, 2014
Description of assets:
None
Description of liabilities:
Derivatives	$ 415,006	$ 560,110
Level 1 [Member]
Description of assets:
None
Description of liabilities:
Derivatives
Level 2 [Member]
Description of assets:
None
Description of liabilities:
Derivatives
Level 3 [Member]
Description of assets:
None
Description of liabilities:
Derivatives	$ 415,006

XML

Organization and nature of operations

3 Months Ended

Mar. 31, 2015

Notes to Financial Statements

Note 1. Organization and nature of operations

Background 

New Global Energy, Inc. ("NGE" or the "Company") was organized on January 24, 2012. NGE's executive offices are located in Brevard County, Florida. The Company is focused on the development of its Global Energy Plantation ("GEP") Platform which combines alternative energy production, sustainable agriculture and aquaculture. It anticipates the use of non-centralized power plants, primarily concentrated solar power, Jatropha based biofuels and aquaculture operations to produce power for its own use and to feed into the power grid serving local power needs while producing farm grown fish and shrimp as food products. Management has begun to execute this plan through the purchase of a noncontrolling equity interest and rights to majority of profits of Aqua Farming Tech, Inc. ("AFT"). The Company is in the process of raising additional equity capital to support the completion of its acquisition and development activities. The Company's activities are subject to significant risks and uncertainties, including failing to secure additional funding to operationalize the Company. 

Going Concern 

The accompanying financial statements have been prepared assuming the Company will continue as a going concern, which contemplates, among other things, the realization of assets and satisfaction of liabilities in the normal course of business. The Company has earned no revenue earned since inception, and lacks any operational history. These matters, among others, raise substantial doubt about our ability to continue as a going concern. 

While the Company is attempting to commence operations and generate revenues, the Company's cash position may not be significant enough to support the Company's daily operations. Management intends to raise additional funds by way of a public or private offering. Management believes that the actions presently being taken to further implement its business plan and generate revenues provide the opportunity for the Company to continue as a going concern. While the Company believes in the viability of its strategy to generate revenues and in its ability to raise additional funds, there can be no assurances to that effect. The ability of the Company to continue as a going concern is dependent upon the Company's ability to further implement its business plan and generate revenues. 

The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern 

Basis of Presentation 

The accompanying condensed consolidated balance sheet as of December 31, 2014, which was derived from audited financial statements, and the unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete consolidated financial statements. The results of operations for the periods presented are not necessarily indicative of the results expected for the full fiscal year or any future period. These financial statements should be read in conjunction with the audited financial statements and related notes for the fiscal year ended December 31, 2014, included in the Company's Annual Report on Form 10-K covering that period. 

In the opinion of management, the information furnished in these interim financial statements reflect all adjustments necessary for a fair statement of the financial position and results of operations and cash flows as of and for the three-month periods ended March 31, 2015 and 2014. All such adjustments are of a normal recurring nature. The financial statements do not include some information and notes necessary to conform with annual reporting requirements.

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Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Mar. 31, 2015	Dec. 31, 2014
Preferred stock:
Preferred stock, Par Value	$ 0.0001	$ 0.0001
Preferred stock, Shares Authorized	20,000,000	20,000,000
Preferred stock, Shares Issued	6,816	6,816
Preferred stock, Shares Outstanding	6,816	6,816
Preferred stock, Liquidation Preference Value	$ 1,022,400	$ 1,022,400
Stockholders' Equity:
Common Stock, Par Value	$ 0.0001	$ 0.0001
Common Stock, Shares Authorized	100,000,000	100,000,000
Common Stock, Shares Issued	13,097,365	13,097,365
Common Stock, Shares Outstanding	13,097,365	13,097,365

XML

Derivative and Warrant Liabilities (Tables)

3 Months Ended

Mar. 31, 2015

Derivative And Warrant Liabilities Tables

Schedule Of the changes in the derivative liabilities

The following table summarizes the derivative liabilities included in the balance sheet: 

	Warrants
Fair value at December 31, 2014	$	560,110
Adjustments to fair value at March 31, 2015		(145,104	)
Fair value at March 31, 2015	$	415,006

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Document and Entity Information - Mar. 31, 2015 - shares	Total
Document And Entity Information
Entity Registrant Name	NEW GLOBAL ENERGY, INC.
Entity Central Index Key	0001543083
Document Type	10-Q
Document Period End Date	Mar. 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding	13,097,365
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2015

XML

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2015

Fair Value Measurements Tables

Summarizes assets and liabilities measured at fair value on a recurring basis

The following table summarizes assets and liabilities measured at fair value on a recurring basis as of March 31, 2015: 

	March 31, 2015
Description of assets:	Level 1		Level 2		Level 3		Total
None	$	-	$	-	$	-	$	-
Description of liabilities:
Derivatives	$	-	$	-	$	415,006	$	415,006

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Condensed Consolidated Statements of Operations - USD ($)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Condensed Consolidated Statements Of Operations
Revenue	$ 20,247	$ 0
Costs and Expenses:
Costs of goods sold	65,660	0
Depreciation and Amortization	33,328	0
General & administrative	180,966	90,748
Total Operating Costs & Expenses	279,954	90,748
Other (Gain) Expense:
Derivative valuation (gain) charge	(145,104)	6,272,480
Interest expense & amortization of debt discount	27,880	120,757
Interest income	0	(4,919)
Loss on settlement of debt	1,992,732	0
Net loss from equity method investment	0	33,804
Total Other Expense	1,875,508	6,422,122
Net loss before income taxes	(2,135,215)	(6,512,870)
Provision for income taxes	0	0
Net loss	(2,135,214)	(6,512,870)
Net loss attributable to non-controlling interest	40,960	0
Net loss attributable to New Global	$ (2,094,254)	$ (6,512,870)
Basic and diluted per share amounts:
Basic and diluted net loss	$ (0.16)	$ (2.40)
Weighted average shares outstanding (basic & diluted)	13,097,365	2,709,704

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Fair Value Measurements

3 Months Ended

Mar. 31, 2015

Notes to Financial Statements

Note 6. Fair Value Measurements

The following table summarizes assets and liabilities measured at fair value on a recurring basis as of March 31, 2015: 

	March 31, 2015
Description of assets:	Level 1		Level 2		Level 3		Total
None	$	-	$	-	$	-	$	-
Description of liabilities:
Derivatives	$	-	$	-	$	415,006	$	415,006

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Current Loan Activity

3 Months Ended

Mar. 31, 2015

Notes to Financial Statements

Note 5. Current Loan Activity

During the quarter ended March 31, 2015 the Company borrowed $259,800 from a related party through a series of three $100,000 unsecured promissory notes. The notes bear interest at 4% and are payable one year from the date of issuance. During the quarter $137,500 of previously issued notes and $203,300 of the new notes were settled by the issuance of 6,816 shares of preferred stock valued at $2,333,531. As of March 31, 2015 $56,500 remains outstanding. As of March 31, 2015 the Company had unused credit of $2,700 on these notes.  

On March 10, 2015 the Company executed an extension and new loan agreement with First General Bank consolidating the existing principal balance of $466,312 and accrued interest and other fees of $39,866 for a total of $506,178. The note bears interest at 6.5% and requires monthly payments of $3,449. The entire amount is due on March 10, 2017 and is secured by the property and equipment of AFT.

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Current Loan Activity (Details Narrative) - Mar. 31, 2015 - USD ($)	Total
Current Loan Activity Details Narrative
Due to related party	$ 259,800
Unsecured promissory notes	100,000
Outstanding Balance	56,500
Unused credit	$ 2,700

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Summary of Significant Accounting Policies (Details) - USD ($)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Summary Of Significant Accounting Policies Details
Preferred Stock	$ 981,504	$ 0
Convertible Debt	0	2,000,000
Warrants	117,416	528,000
Carrying value at end of year	$ 1,098,920	$ 2,528,000

XML

Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2015

Summary Of Significant Accounting Policies Tables

Potentially dillutive securities excluded from the calculation

We compute net (loss) per share in accordance with FASB ASC 260, Earning per Share. FASB ASC 260 requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period. For the interim periods ended March 31, 2015 and 2014, the following potentially dilutive securities have been excluded from the calculation of diluted loss per share because their impact was antidilutive. 

	March 31, 2015		March 31, 2014
Preferred Stock		981,504		0
Convertible Debt		0		2,000,000
Warrants		117,416		528,000
Carrying value at end of year		1,098,920		2,528,000

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Subsequent Events

3 Months Ended

Mar. 31, 2015

Notes to Financial Statements

Note 7. Subsequent Events:

On May 11, 2015, the Company's Board of Directors approved the acquisition of certain technologies through three agreements including an exclusive license to VIP Patient Management Software System (Electronic Medical Records (EMR) and Electronic Health Records (EHR) Platforms) an exclusive license to Canacard Patient Management Systems Software, a HIPAA compliant platform that manages end-to-end transactions involved in providing safe access to controlled substances. The exclusive license from ALTERNATE HEALTH, INC., and is for a period of 20 years for the United States and Puerto Rico. This software is included under the International Patent Application PCT/CA2014/050890. The Company agreed to issue 1,500,000 commons shares for these licenses as well as warrants to purchase an additional 1,100,000 at a price equal to 50% of the market price on the day of issue. There is additional consideration of $1,500,000 due when as and if funding of operations under these licenses is closed.

XML

Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2015

Summary Of Significant Accounting Policies Policies

Use of Estimates

The preparation of these financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on going basis, we evaluate our estimates, including those related intangible assets, income taxes, insurance obligations and contingencies and litigation. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other resources. Actual results may differ from these estimates under different assumptions or conditions. The results of operations for the periods presented are not necessarily indicative of the results for the full fiscal year or any future period.

Earnings per Common Share

We compute net (loss) per share in accordance with FASB ASC 260, Earning per Share. FASB ASC 260 requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period. For the interim periods ended March 31, 2015 and 2014, the following potentially dilutive securities have been excluded from the calculation of diluted loss per share because their impact was antidilutive. 

	March 31, 2015		March 31, 2014
Preferred Stock		981,504		0
Convertible Debt		0		2,000,000
Warrants		117,416		528,000
Carrying value at end of year		1,098,920		2,528,000

Reclassification

Certain amounts from the prior period have been reclassified to conform to the current period presentation

Recent Accounting Pronouncements

In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-03, "Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs." ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. Currently, debt issuance costs are recognized as deferred charges and recorded as other assets. The guidance is effective for annual and interim periods beginning after December 15, 2015 with early adoption permitted and is to be implemented retrospectively. Adoption of the new guidance will only affect the presentation of the Company's consolidated balance sheets and will have no impact to our financial statements. 

The Company has implemented all new relevant accounting pronouncements that are in effect through the date of these financial statements. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

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Stockholders' Equity (Tables)

3 Months Ended

Mar. 31, 2015

Stockholders Equity Tables

Summary of shares issued in settlement of debt

In February and March 2015 we issued a total of 6,816 shares of Series "A" Preferred stock in settlement of $340,800 of principal due on notes payable. The shares were valued at fair value using an Option Pricing model coupled with the Equity Allocation method. The resultant value of $2,333,531 was derived using the following significant assumptions:  

Risk free interest rate	.49% to .70%
Expected volatility	82% to 90%
Expected years to liquidity	2 years
Expected dividend yield	0%

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Derivative and Warrant Liabilities (Details)	3 Months Ended
	Mar. 31, 2015 USD ($)
Derivative And Warrant Liabilities Details
Fair value at beginning	$ 560,110
Adjustments to fair value	(145,104)
Fair value at ending	$ 415,006

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Condensed Consolidated Statement of Cash Flows - USD ($)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Cash flows from operating activities:
Net Loss	$ (2,135,214)	$ (6,512,870)
Adjustments required to reconcile net loss to cash used in operating activities:
Net loss attributable to equity method investment	0	33,804
Derivative valuation charge (gain)	(145,104)	6,272,480
Loss realized upon conversion of debt	1,992,732	0
Amortization of debt discount	0	114,126
Depreciation and Amortization	33,328	0
Changes in operating assets and liabilities:
Decrease in accounts receivable	3,661	0
Increase in interest receivable	0	(4,919)
Decrease in inventory	37,043	0
Increase in accounts payable	3,849	0
Increase in accrued expenses	10,228	6,632
Cash used by operating activities:	(199,478)	(90,747)
Cash flows from investing activities:
Advances to equity method investee	0	(135,000)
Purchase of equipment	(11,875)	0
Cash used in investing activities	(11,875)	(135,000)
Cash flows from financing activities:
Proceeds from issuance of common stock	0	72,000
Proceeds of notes payable	259,800	0
Proceeds of convertible note advances	0	150,000
Payments on long-term debt	(114,695)	0
Payments made on related party debt	55,000	0
Cash provided by financing activities	200,105	222,000
Change in cash	(11,248)	(3,747)
Cash-beginning of year	25,008	19,076
Cash-end of year	13,760	15,329
Cash paid during the period for:
Interest	0	0
Income taxes	0	0
Supplemental Cash Flow Disclosure of non-cash activity:
Fair value of preferred/common stock issued upon settlement of debt	2,333,530	3,440,745
Derivative liability eliminated upon debt conversion	0	3,418,304
Note principal converted to common stock	0	104,265
Net gain on conversion of notes payable and derivative liability	510,841	81,824
Debt discount recorded at issuance of convertible debt and warrants	0	150,000
Fair value of common stock issued upon exercise of warrants	0	432,000
Derivative liability eliminated upon exercise of warrants	0	412,216
Net gain on exercise of warrants and derivative liability	$ 445,332	$ 52,216

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Derivative and Warrant Liabilities

3 Months Ended

Mar. 31, 2015

Notes to Financial Statements

Note 4. Derivative and Warrant Liabilities

The aggregate fair value of the derivative liability arising from the warrants was determined to be $415,006 at March 31, 2015. 

The Company values its warrant derivatives and simple conversion option derivatives using the Black-Scholes option-pricing model. Assumptions used include:  

· risk-free interest rate- 0.15%-.0.36%

· warrant life is the remaining contractual life of the warrants,

· expected volatility-319% to 329%,

· expected dividends-none

· exercise prices as set forth in the agreements,

· common stock price of the underlying share on the valuation date, and

· number of shares to be issued if the instrument is converted

The following table summarizes the derivative liabilities included in the balance sheet: 

	Warrants
Fair value at December 31, 2014	$	560,110
Adjustments to fair value at March 31, 2015		(145,104	)
Fair value at March 31, 2015	$	415,006

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Stockholders' Equity (Details) - 3 months ended Mar. 31, 2015 - $ / shares	Total
Expected years to liquidity	2 years
Expected dividend yield	$ 0.00
Minimum [Member]
Risk free interest rate	0.49%
Expected volatility	82.00%
Maximum [Member]
Risk free interest rate	0.70%
Expected volatility	90.00%