QUARTERLY REPORT ON FORM 10QSB FOR THE PERIOD ENDED SEPTEMBER 30, 2007

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-QSB

[   ]   QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended _________________

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

For the transition period from July 1, 2007 to September 30, 2007

Commission File No.000-31355

SUNCREST GLOBAL ENERGY CORP.
(Name of small business issuer in its charter)

Nevada
(State or other jurisdiction of incorporation ororganization)
  81-0438093
(I.R.S. Employer Identification No.)

124 North First Street, Louisville, KY 40202
(Address of principal executive offices)

502-379-4788
(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 such filing requirements for the past 90 days.
Yes [X]    No [   ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) as of September 30, 2007.
Yes [X]    No [   ]

As of October 29, 2007, Suncrest Global Energy Corp. had a total of 3,003,892 post-split shares of common stock issued and outstanding.

Transitional small business disclosure format: Yes [   ]    No [X]

Suncrest Global Energy Corporation (the “Company”) is filing this Transition Report on Form 10-QSB (This “Transition Report”) in connection with its change in fiscal year end from June 30 to September 30. The Company previously reported its change in fiscal year end on a Current Report on Form 8-K, dated December 20, 2007. This Transition Report is identical, in all material respects, to the Form 10-QSB filed by the Company on November 13, 2007 with regard to the three months ended September 30, 2007.


 
   

TABLE OF CONTENTS

PART I: FINANCIAL INFORMATION  
   
Item 1. Financial Statements 2
   
Item 2. Management’s Discussion and Analysis or Plan of Operation 7
   
Item 3. Controls and Procedures 7
 
PART II: OTHER INFORMATION
   
Item 5. Other Information 8
   
Item 6. Exhibits 8
   
Signatures 8

 



 
   

PART I: FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

The financial information set forth below with respect to our statements of operations for the three month period ended September 30, 2007 and 2006 is unaudited. This financial information, in the opinion of management, includes all adjustments consisting of normal recurring entries necessary for the fair presentation of such data. The results of operations for the three month period ended September 30, 2007 are not necessarily indicative of results to be expected for any subsequent period.

Suncrest Global Energy Corp.
(Formerly Galaxy Specialties, Inc.)

(A Development Stage Company)

Financial Statements
September 30, 2007


 
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SUNCREST GLOBAL ENERGY CORP.
(A Development Stage Company)
Balance Sheets

ASSETS September 30,
2007

   June 30,
2007

 
  (Unaudited)      
Current Assets    
  Cash $     6,459   $   11,459  


    Total Current Assets 6,459   11,459  


    Total Assets $     6,459   $   11,459  


LIABILITIES AND STOCKHOLDERS’ EQUITY    
Current Liabilities
  Accounts Payable $   12,900   $   10,400  


    Total Current Liabilities 12,900   10,400  


    Total Liabilities $   12,900   $   10,400  


STOCKHOLDERS’ EQUITY
  Preferred Stock, Authorized 5,000,00 Shares, $.01 Par Value,
    Issued and Outstanding 0 Shares    
Common Stock, Authorized 70,000,000 Shares, $.001 par Value,
  Issue and Outstanding 3,003,847 Shares (Retroactively Restated) 3,004   3,004  
Additional Paid-in Capital 497,426   497,426  
Deficit Accumulated During the Development Stage (506,871 ) (499,371 )


  Total Stockholders’ Equity (Deficit) (6,441 ) 1,059  


    Total Liabilities and Stockholders’ Equity (Deficit) $     6,459   $   11,459  



The accompanying notes are an integral part of these financial statements.


 
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SUNCREST GLOBAL ENERGY CORP.
(A development Stage Company)
Statements of Operations
(Unaudited)

  For the three
months ended
Sept. 30,
2007

   For the three
months ended
Sept. 30,
2006

   From
Inception on
July 9, 1996
to Sept. 30, 2007

 
REVENUES $              —   $              —   $              —  



Cost of Sales      



Gross Profit (Loss)      



OPERATING EXPENSES
  Engineering & Consulting     46,269  
  General & Administrative 7,500   64,636   388,367  



     Total Operating Expenses 7,500   64,636   434,636  



   Net Operating Income (Loss) (7,500 ) (64,636 ) (434,636 )
OTHER INCOME (EXPENSE)
  Gain on sale of Property, Plant
     and Equipment   32,569   33,025  
  Interest Expense   (2,378 ) (89,707 )



    Total Other Income (Expense)   30,191   (56,682 )



LOSS FROM CONTINUING OPERATIONS
  AND BEFORE TAXES (7,500 ) (34,445 ) (491,318 )
Income Tax Expense     (900 )



NET LOSS $     (7,500 ) $   (34,445 ) $ (492,218 )



NET LOSS PER SHARE $              -   $       (0.01 ) $       (0.28 )



WEIGHTED AVERAGE SHARES
  OUTSTANDING 3,003,847   3,003,847   1,744,414  




The accompanying notes are an integral part of these financial statements.


 
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Suncrest Global Energy Corp.
(A Development Stage Company)
Statements of Cash Flows
(Unaudited)

  For the three
months ended
September 30,

  From Inception
on July 9, 1996
Through
September 30,

 
  2007
   2006
   2007
 
Cash Flows from Operating Activities:      
  Net Income (Loss) $(7,500 ) $(34,445 ) $(506,871 )
  Adjustments to Reconcile net Loss to Net Cash
      Provided by Operations:
      Stock Issued for Services     10,000  
      Gain on Sale of Assets   (32,569 ) (33,025 )
  Change in Operating Assets and Liabilities:      
      Increase (Decrease) in:
      Accounts Payable & Accrued Expenses 2,500   (234,029 ) (20,101 )



  Net Cash Provided (Used) by Operating Activities (5,000 ) (301,043 ) (549,997 )



Cash Flows from Investing Activities:
    Proceeds from sale of Property, Plant and Equipment   496,799   497,255  
    Advance Sale Deposit      



  Net Cash Provided (Used) by Investing Activities   496,799   497,255  



Cash Flows from Financing Activities:
  Cash from Advance     5,000  
  Proceeds from Issuance of Common Stock     6,800  
  Proceeds from Notes Payable     281,098  
  Principal Payments on Notes Payable   (188,697 ) (233,697 )



  Net Cash Provided (Used) by Financing Activities   (188,697 ) 59,201  



Increase (Decrease) in Cash (5,000 ) 7,059   6,459  
Cash and Cash Equivalents at Beginning of Period 11,459   1,253    



Cash and Cash Equivalents at End of Period $ 6,459   $     8,312   $     6,459  



Supplemental Cash Flow Information:
  Cash Paid For:
    Interest $     —   $          —   $          —  



    Income Taxes $     —   $          —   $        900  



  Non-Cash Investing and Financing Activities:
    Assets Contributed by Shareholder $     —   $          —   $ 498,430  



    Stock Issued for Notes Payable $     —   $          —   $   13,200  




The accompanying notes are an integral part of these financial statements.


 
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Suncrest Global Energy Corp.
(A Development Stage Company)
Notes to the Financial Statements
September 30, 2007

GENERAL

Suncrest Global Energy Corp. (the Company) has elected to omit substantially all footnotes to the financial statements for the three months ended September 30, 2007 since there have been no material changes (other than indicated in other footnotes) to the information previously reported by the Company in their Annual Report filed on the Form 10-KSB for the twelve months ended June 30, 2007.

Effective December 20, 2007, our Board of Directors approved a change in our fiscal year end from June 30 to September 30. As set forth in the cover page of this report, our Transition Report modifies our Quarterly Report on From 10-QSB for the three months ended September 30, 2007 that was previously filed with the Securities and Exchange Commission.

UNAUDITED INFORMATION

The information furnished herein was taken from the books and records of the Company without audit. However, such information reflects all adjustments which are, in the opinion of management, necessary to properly reflect the results of the interim period presented. The information presented is not necessarily indicative of the results from operations expected for the full fiscal year.


 
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In this quarterly report references to “Suncrest Global,” “we,” “us,” and “our” refer to Suncrest Global Energy Corp.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

The Securities and Exchange Commission (“SEC”) encourages companies to disclose forward-looking information so that investors can better understand future prospects and make informed investment decisions. This report contains these types of statements. Words such as “may,” “will,” “expect,” “believe,” “anticipate,” “estimate,” “project,” or “continue” or comparable terminology used in connection with any discussion of future operating results or financial performance identify forward-looking statements. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this report. All forward-looking statements reflect our present expectation of future events and are subject to a number of important factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

We are a development stage company and we have not recorded revenues in the past two fiscal years. At September 30, 2007, we had cash of $6,459 and total liabilities of $12,900. Our auditors have expressed doubt that we can continue as a going concern if we do not obtain financing. Management anticipates during the next twelve months that we will use our cash to pay for our minimal operations and legal, accounting and professional services required to prepare and file our reports with the SEC. However, we will need to raise additional funds during the next twelve months to satisfy our cash requirements.

Any additional funding will likely come from loans or equity financing. If we sell our common stock to raise additional capital, then we expect to issue such stock pursuant to exemptions provided by federal and state securities laws. The purchasers and manner of issuance will be determined according to our financial needs and the available exemptions. We do not currently intend to make a public offering of our stock. We also note that if we issue more shares of our common stock, then our shareholders may experience dilution in the value per share of their common stock.

Management has actively sought an operating company to acquire or with which to merge and we have identified a business opportunity that we plan to pursue. However, as of the date of this report, we are in preliminary negotiations and have not entered into a definitive agreement concerning an acquisition or merger, and management can not assure you that any transaction will be finalized. Based on current economic and regulatory conditions, management believes that it is possible, if not probable, for a company like ours, without many assets or liabilities, to negotiate a merger or acquisition with a viable private company. The opportunity arises principally because of the high legal and accounting fees and the length of time associated with the process of “going public”.

Potential investors must recognize that because we have limited capital available for investigation of business opportunities and management has limited experience in business analysis, we may not discover or adequately evaluate adverse facts about any business opportunity to be acquired. If we are unable to finalize a merger or acquisition, it is possible that management may decide not to pursue further acquisition activities and management may abandon its activities and our shares would become worthless.

It is emphasized that our management may effect transactions having a potentially adverse impact upon our shareholders pursuant to the authority and discretion of our board of directors to complete acquisitions without submitting any proposal to the stockholders for their consideration.

During the past fiscal year we have not recorded research and development expense and do not anticipate those type of expenses in the short term. We do not anticipate hiring employees in the short term, but this action will be based upon our success in finding a business opportunity.


 
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ITEM 3. CONTROLS AND PROCEDURES

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our filings under the Exchange Act is recorded, processed, summarized and reported within the periods specified in the rules and forms of the SEC. This information is accumulated and communicated to our executive officers to allow timely decisions regarding required disclosure. Our President, who acts in the capacity of principal executive officer and principal financial officer, has evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report. Based on that evaluation, he concluded that our disclosure controls and procedures were effective.

Our President also determined that there were no changes made in our internal controls over financial reporting during the first quarter of our 2008 fiscal year that have materially affected, or are reasonably likely to materially affect our internal control over financial reporting.

PART II: OTHER INFORMATION

ITEM 5. OTHER INFORMATION

In August 2006 our wholly-owned subsidiary, Coyote Oil Company, Inc. (“Coyote Oil”), sold its mini oil refinery prototype, land and assets related to that property and after that transaction Coyote Oil did not have any assets or have a plan of operation. On September 28, 2007, Coyote Oil’s board of directors and shareholder approved the dissolution of that corporation and caused a Certificate of Dissolution to be filed with the Nevada Secretary of State, which became effective October 30, 2007.

ITEM 6. EXHIBITS

Part I Exhibits

31.1   Principal Executive Officer Certification
31.2   Principal Financial Officer Certification
32.1   Section 1350 Certification
32.2   Section 1350 Certification


 
   

SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

     SUNCREST GLOBAL ENERGY CORP
       
Date: February 4, 2008   By: /s/ Bruce Widener
     

Bruce Widener
Chief Executive Officer and Chairman
the Board of Directors


 
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