WINDGEN ENERGY, INC. - Quarter Report: 2010 June (Form 10-Q)

p0807_10-q.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

þ		QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
		For the quarterly period ended June 30, 2010

o		TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
		For the transition period from __________ to __________

Commission file number: 0-12968

WINDGEN ENERGY, INC.

(Exact name of registrant as specified in its charter)

Utah		87-0397815
(State or other jurisdiction of		(IRS Employer Identification No.)
incorporation or organization)

14550 N. Frank Lloyd Wright Blvd., Suite 100

Scottsdale, Arizona 85260

(Address of principal executive offices)

(480) 991-9500

(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

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 þ No o

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). Yes o No þ Not applicable.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer o	Accelerated filer o
Non-accelerated filer o	Small reporting company þ

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

As of August 9, 2010, 36,285,799 shares of the issuer’s common stock were outstanding.

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WINDGEN ENERGY, INC.

	Table of Contents


		Page No.

Forward-Looking Statements		3

PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements	4

	Consolidated Balance Sheets as of June 30, 2010 and December 31, 2009	4

	Consolidated Statements of Income for the Three and Six Months ended June 30, 2010 and 2009	6

	Consolidated Statements of Cash Flows for the Six Months ended June 30, 2010 and 2009	7

	Notes to the Consolidated Financial Statements	8

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	12

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	14

Item 4T.	Controls and Procedures	14


PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	16

Item 1A.	Risk Factors	16

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	16

Item 3.	Defaults Upon Senior Securities	16

Item 4.	(Removed and Reserved)	16

Item 5.	Other Information	16

Item 6.	Exhibits	18

Signatures		19

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WINDGEN ENERGY, INC.

FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q (“Quarterly Report”) contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and should be read in conjunction with the Financial Statements of WindGen Energy, Inc. (the “Company” or “WindGen”). Such statements are not historical facts and reflect our current views regarding matters such as operations and financial performance. In general, forward-looking statements are identified by such words or phrases as “expects,” “anticipates,” “believes,” “could,” “approximates,” “estimates,” “may,” “intends,” “predicts,” “projects,” “plans,” or “will,” or the negative of those words or other terminology. These statements are not guarantees of future performance and involve certain known and unknown inherent risks, uncertainties and other factors that are difficult to predict; our actual results could differ materially from those expressed in these forward-looking statements, including those risks and other factors described elsewhere in this Quarter Report. The cautionary factors, risks and other factors presented should not be construed as exhaustive. Other risks not presently known to us, or that we currently believe are immaterial, could also adversely affect our business, financial condition or results of operations.

Each forward-looking statement should be read in context with, and with an understanding of, the various disclosures concerning our business made elsewhere in this Quarterly Report, as well as other public reports filed by us with the United States Securities and Exchange Commission. Readers should not place undue reliance on any forward-looking statement as a prediction of actual results of developments. Except as required by applicable law or regulation, we undertake no obligation to update or revise any forward-looking statement contained in this Quarterly Report.

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PART I.

FINANCIAL INFORMATION

Item 1.

Financial Statements

WINDGEN ENERGY, INC. AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

	(Unaudited)
	June 30,		December 31,
	2010		2009
ASSETS

Current Assets
Cash & Cash Equivalents		77		14,118
Other Receivable		20,264		–
Prepaid Expenses & Other		6,727		200
Total Current Assets		27,068		14,318

Fixed Assets

Equipment & Furniture, at Cost, Less Accumulated Depreciation of $6,555 and $6,555, respectively		–		–
Total Fixed Assets		–		–

Net Assets of Discontinued Operations		–		205

TOTAL ASSETS		27,068		14,523

LIABILITIES & STOCKHOLDER’S EQUITY

Current Liabilities
Related Party Consulting Fees Payable		110,000		60,000
Accounts Payable		11,587		30,785
Related Party Note Payable		5,000		46,282
Related Party Payables		–		38,445
Note Payable		11,021		22,799
Preferred Stock Dividends Payable		68,092		64,309
Total Current Liabilities		205,700		262,620

Net Liabilities of Discontinued Operations		–		570,019

TOTAL LIABILITIES		205,700		832,639

(Continued)

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

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WINDGEN ENERGY, INC. AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

	(Unaudited)
	June 30,			December 31,
	2010			2009

STOCKHOLDERS’ EQUITY (DEFICIT)
Preferred Stock, 10,000,000 shares authorized; Series A Cumulative convertible preferred stock, 8% cumulative, $4.50 par value, 1,000,000 shares designated, 21,016 shares outstanding (aggregate liquidation preference of $162,665)		94,573			94,573
Common Stock, $.001 par value: 100,000,000 shares authorized, 36,185,799 and 33,629,493 shares outstanding respectively		36,186			33,629
Additional Paid-In Capital		8,857,615			8,668,749
Stock Subscription Receivable		(10,000	)		(17,500	)
Accumulated Deficit		(9,157,006	)		(9,334,935	)

TOTAL WINDGEN STOCKHOLDERS’ EQUITY (DEFICIT)		(178,632	)		(555,484	)

Noncontrolling Interest of Discontinued Operations		–			(262,632	)

TOTAL STOCKHOLDERS’ EQUITY (DEFICIT)		(178,632	)		(818,116	)

TOTAL LIABILITIES & EQUITY		27,068			14,523

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

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WINDGEN ENERGY, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF OPERATIONS

	(Unaudited)						(Unaudited)
	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2010			2009			2010			2009


ROYALTY REVENUES	$	–		$	–		$	–		$	–

OPERATING EXPENSES
General & Administrative		44,729			6,048			73,783			15,187
Legal & Professional Fees		2,616			19,238			22,970			28,739
Related Party Consulting Fees		30,400			–			64,375			–
Total Operating Expense		77,745			25,286			161,128			43,926

INCOME (LOSS) FROM OPERATIONS		(77,745	)		(25,286	)		(161,128	)		(43,926	)

OTHER INCOME (EXPENSE)
Interest Expense		(312	)		(239	)		(648	)		(1,122	)
Total Other Income (Expense), Net		(312	)		(239	)		(648	)		(1,122	)

NET INCOME (LOSS) FROM CONTINUING OPERATIONS		(78,057	)		(25,525	)		(161,776	)		(45,048	)

DISCONTINUED OPERATIONS (Note 5)
Income (Loss) from operations of MicroCor, Inc. (including gain on disposal of $355,000)		355,000			(7,678	)		343,488			(15,372	)

NET INCOME (LOSS)		276,943			(33,203	)		181,712			(60,420	)

PREFERRED STOCK DIVIDENDS		(1,891	)		(1,891	)		(3,783	)		(3,783	)

NET INCOME (LOSS) APPLICABLE TO COMMON STOCKHOLDERS	$	275,052		$	(35,094	)	$	177,929		$	(64,203	)

NET INCOME (LOSS) PER COMMON SHARE (BASIC & DILUTED)	$	(0.01	)	$	(0.00	)	$	(0.00	)	$	(0.00	)

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
BASIC		35,538,903			18,911,361			35,235,513			18,771,205
DILUTED		35,570,427			33,942,885			35,267,037			33,802,729

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

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WINDGEN ENERGY, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CASH FLOWS

	(Unaudited)
	For the Six Months Ended
	June 30,
	2010			2009

CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss/Income	$	181,712		$	(60,420	)
Adjustments to reconcile Net loss to net cash used in operating activities:
Gain on deconsolidation of MicroCor		(355,000	)		–
Write-down of other receivable		21,119			–
Related party consulting fee payable		50,000			–
Prepaid expense		(6,527	)		900
Accounts payable		(19,166	)		18,812
Related party payable		(28,445	)		–
Accrued Interest payable		648			1,122
Other receivable		(343	)		–
Net cash used in Continuing Activities		(156,002	)		(39,586	)
Net cash used in Discontinued Activities		7,120			13,490
Net cash used in Operating Activities		(148,882	)		(26,096	)

CASH FLOWS FROM INVESTING ACTIVITIES:
Net cash provided by Investing Activities		–			–

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sale of stock		181,423			10,125
Proceeds from notes payable		–			18,826
Proceeds from stock subscription receivable		7,500			–
Payments on notes		(11,939	)		–
Payments on notes related party loan		(42,143	)		–
Net cash provided by Financing Activities		134,841			28,951

NET INCREASE (DECREASE) IN CASH		(14,041	)		2,855
CASH AT BEGINNING OF PERIOD		14,118			1,794
CASH AT END OF PERIOD		77			4,649

SUPPLEMENTAL DISCLOSURE OF CASH FLOW
Cash paid during the year for interest	$	5,418		$	3,043
Cash paid during the year for income taxes	$	–		$	–

SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING & FINANCING ACTIVITIES:
Stock Subscription Receivable for exercise of stock options	$	10,000		$	–
Related Party Payables Converted to Common Stock	$	10,000		$	–

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

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WINDGEN ENERGY, INC.

Notes to Consolidated Financial Statements (Unaudited)

NOTE 1 – BASIS OF PRESENTATION

On June 24, 2010, WindGen Energy, Inc. entered into an agreement with MicroCor, Inc., Chi Lin Technology Co., Ltd. and Wescor, Inc., whereby WindGen will transfer 230,000 shares of MicroCor common stock owned by WindGen to Wescor, reducing WindGen’s holdings in MicroCor from 1,700,000 common shares to 1,470,000 common shares. WindGen’s percentage of ownership of MicroCor will be reduced from approximately 57% to 49%. Since WindGen’s ownership percentage will be below 50%, MicroCor’s financial statements will no longer be consolidated with WindGen’s financial statements.

The accompanying unaudited consolidated financials statements of WindGen Energy Inc. (the “Company”) have been prepared on a going concern basis which contemplates the realization of assets and satisfaction of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company generated a net gain / (loss) of $177,929 and ($64,203) for the six month periods ended June 30, 2010 and 2009, respectively, and negative cash flows from operations of $148,882 and $26,096 for the six month periods ended June 30, 2010 and 2009, respectively. As of June 30, 2010, the Company had an accumulated deficit of $9,157,006. At June 30, 2010, the Company had a stockholders’ deficit of $178,632. These conditions raise substantial doubt as to the Company’s ability to continue as a going concern. The Company’s continued existence is dependent upon its ability to execute its operating plan and to obtain additional debt or equity financing. There can be no assurance that the necessary debt or equity financing will be available, or will be available on terms acceptable to the Company.

The accompanying consolidated financial statements of the Company are unaudited. However, in management’s opinion, all adjustments, consisting only of normal recurring adjustments necessary for fair presentation of results for the interim periods shown, have been made. Results for interim periods are not necessarily indicative of those to be expected for the full year. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes to consolidated financial statements included in the Company’s annual report on form 10-K for the year ended December 31, 2009.

NOTE 2 – NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

The consolidated financial statements include the accounts of WindGen Energy Inc. and its majority owned subsidiary, MicroCor, Inc. (“MicroCor”) through June 24, 2010. As of June 24, 2010, MicroCor’s financial statements are no longer being consolidated with WindGen’s financial statements. (See Note 1).

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

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WINDGEN ENERGY, INC.

Notes to Consolidated Financial Statements (Unaudited)

Research and Development

Research and development costs are expensed as incurred.

Net Loss Per Common Share

Basic net loss per common share is computed by dividing net loss by the weighted average number of common shares outstanding during the year. Diluted net loss per common share (“Diluted EPS”) reflects the potential dilution that could occur if stock options or other common stock equivalents were exercised or converted into common stock. At June 30, 2010 and December 31, 2009, respectively, there were 31,524 and 31,524 potentially dilutive common stock equivalents. The computation of Diluted EPS does not assume exercise or conversion of securities that would have an anti-dilutive effect on net loss per common share.

NOTE 3 – PREFERRED STOCK

The Company is authorized to issue 100,000,000 shares of preferred stock. The Company’s board of directors designated 1,000,000 shares of this preferred stock as Series A Cumulative Convertible Preferred Stock (“Series A Preferred”) with a par value of $4.50 per share. Holders of the Series A Preferred receive annual cumulative dividends of eight percent (8%), payable quarterly, which dividends are required to be fully paid or set aside before any other dividend on any class or series of stock of the Company is paid. As of June 30, 2010, cumulative preferred stock dividends are due and payable in the amount of $68,092. Holders of the Series A Preferred receive no voting rights but do receive a liquidation preference of $4.50 per share, plus accrued and unpaid dividends. Series A Preferred stockholders have the right to convert each share of Series A Preferred to the Company’s common stock at a rate of 1.5 common shares to 1 preferred share.

On January 30, 2009, the Company entered into an agreement with MicroCor, its subsidiary (the “MicroCor Agreement”). The MicroCor Agreement provides for the Company to create a Series B class of preferred stock, without dividend or voting rights (the “Series B Preferred”), which will receive 100% of any future benefit from the sale, spin-off, merger or liquidation of MicroCor or the commercialization of its hematocrit technology. The shares of the Series B Preferred will be distributed as a dividend, subject to compliance with federal and state securities laws and regulations, to the Company’s common stockholders, as of January 30, 2009. The creation of the Series B Preferred will prevent any holder of the Company’s common stock after January 30, 2009 from sharing in any future benefit of or to MicroCor through the expiration date of January 30, 2011. Upon expiration of this agreement on January 30, 2011, the rights of the holders of the Series B Preferred to receive any future benefit from the commercialization of MicroCor’s hematocrit technology will expire, and, therefore, the Series B Preferred will expire and be terminated.

NOTE 4 – EARNINGS PER SHARE

The following data show the amounts used in computing earnings per share and the effect on income and the weighted average number of shares of dilutive potential common stock:

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WINDGEN ENERGY, INC.

Notes to Consolidated Financial Statements (Unaudited)

	For the Quarters Ended
	June 30,
	2010			2009

Net Income (Loss)	$	276,943		$	(33,203)
Less: preferred dividends		(1,891)	)		(1,891	)

Income (Loss) available to common stockholders used in basic EPS	$	275,052		$	(35,095)

Convertible preferred stock		1,891			1,891
Convertible notes payable		–			–
Income (Loss) available to common stockholders after assumed
conversion of dilutive securities	$	276,943		$	(33,203)

Weighted average number of common shares used in basic EPS		35,538,903			18,911,361
Effect of dilutive securities:
Convertible preferred stock		31,524			31,524
Convertible notes payable		–			–
Options		–			15,000,000
Weighted average number of common shares and dilutive potential
common stock used in diluted EPS		35,570,427			33,942,885

NOTE 5 – DISCONTINUED OPERATIONS

The assets and liabilities of MicroCor, Inc. included in the consolidated financial statements of WindGen, Inc. consisted of the following at June 30, 2010 and December 31, 2009:

	June 30,		December 31,
	2010		2009

Cash	$	–	$	205
Net assets of discontinued operations	$	–	$	205

Accounts payable	$	–	$	5,381
Accrued interest		–		45,112
Related party royalty payable		–		153,333
Related party notes payable		–		133,560
Current portion of long-term debt		–		232,633
Net liabilities of discontinued operations	$	–	$	570,019
Noncontrolling interest of discontinued operations	$	–	$	(262,632	)

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WINDGEN ENERGY, INC.

Notes to Consolidated Financial Statements (Unaudited)

Net assets and liabilities to be disposed of have been separately classified in the accompanying consolidated balance sheet at June 30, 2010 and December 31, 2009. The December 31, 2009 balance sheet has been restated to conform with the current year’s presentation.

Operating results of this discontinued operation for the six months ended June 30, 2010 are shown separately in the accompanying consolidated statement of operations. The operating statement for the six months ended June 30, 2009 has been restated to conform with the current year’s presentation and are also shown separately. The operating results of this discontinued operation for the six months ended June 30, 2010 and 2009 consist of:

	For the Six Months Ended
	June 30,
	2010			2009

Sales	$	–		$	–
General and administrative		–			(22,781	)
Legal and professional		–			–
Interest Expense		–			(4,344	)
Gain on deconsolidation of MicroCor		355,000			–
Net Income (Loss) attributable to noncontolling interest		(11,512	)		11,753
Net Income (Loss) from discontinued operations	$	343,488		$	(15,372	)

Operating results of this discontinued operation for the three months ended June 30, 2010 are shown separately in the accompanying consolidated statement of operations. The operating statement for the three months ended June 30, 2009 has been restated to conform with the current year’s presentation and are also shown separately. The operating results of this discontinued operation for the three months ended June 30, 2010 and 2009 consist of:

	For the Three Months Ended
	June 30,
	2010		2009

Sales	$	–	$	–
General and administrative		–		(11,365	)
Legal and professional		–		–
Interest Expense		–		(2,184	)
Gain on deconsolidation of MicroCor		355,000		–
Net Income (Loss) attributable to noncontolling interest		–		5,871
Net Income (Loss) from discontinued operations	$	355,000	$	(7,678	)

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WINDGEN ENERGY, INC.

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Overview

InMedica Development Corporation (“InMedica” or the “Company”) was incorporated as a Utah corporation on June 16, 1983. On December 4, 2009, a majority of the Company’s shareholders executed a consent resolution to amend the Company’s Articles of Incorporation to change the Company’s name to WindGen Energy, Inc. (“WindGen” or the “Company”) and to increase the number of authorized common stock shares from 40,000,000 to 100,000,000. A Certificate of Amendment for such amendments was filed by the Company with the Secretary of State of Utah effective on December 16, 2009. The name change and the new trading symbol, “WGEI,” was approved by FINRA on March 16, 2010.

Since January 30, 2009, the Company’s new management team has been investigating new areas of business and sources of funding for the Company. See “Plan of Operation” below.

Plan of Operation

In January 2008, the Company’s plan of operation was to continue to work cooperatively with MicroCor and Wescor in the development of the Company’s portable hematocrit device. However, in 2008, Wescor advised the Company that its parent corporation was interested in shifting Wescor’s resources previously dedicated to the research and development of the hematocrit technology to other projects. As a result, Wescor ceased all research and development efforts on the hematocrit technology. During 2008, the Company funded administrative operations with the proceeds of minimum royalty payments from MicroCor and from loans from the Company’s officers and Directors. Wescor, in the past, has loaned MicroCor sufficient funds to enable MicroCor to pay one-half of the minimum royalty. These minimum payments to the Company from MicroCor have ceased. Payment of the balance of the minimum royalty from MicroCor was deferred by the Company.

New Company Focus: Wind Energy

With new management, we have refocused the Company on wind energy devices. On April 17, 2009, we entered into a license agreement (the “License”) with Wind Sail Receptor, Inc. of Boulder City, Nevada (“WSR”), pursuant to which we were granted the exclusive license to assemble and market WSR’s wind sail receptor energy generation devices using blades of 15 feet or less in length in the United States, Canada, the United Kingdom and Ireland, with nonexclusive rights in the rest of the world except Latin America and the Caribbean. Under the License, we must acquire 100 blades from WSR during the first year after WSR is able to manufacture the blades. WSR is hopeful of commencing manufacture of our blades in the second half of 2010.

We anticipate our first three wind turbine products to have blade diameters of 3, 6 & 12 feet with towers of up to 100 feet high. We are currently negotiating terms for the formation of the working capital required to bring our first products to market in 2010. The progress of the Company in marketing its new wind energy products is dependent on obtaining additional capital.

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WINDGEN ENERGY, INC.

Assembly and Marketing

During 2010, we will be developing a well-organized approach to the manufacturing/assembly process to assure high-quality, rapid-development cycles and overall competiveness. All components of our wind turbines are entirely “Made in America.” We are licensed to assemble the wind turbine units, and our first facility will be located in Arizona. WSR will be responsible for the manufacture of the critical blade component at its plant in Boulder City, Nevada. At this time we have located suppliers in the United States for all of the non-blade components for our products.

To launch into the important rural wind turbine market in the western United States (our initial marketing objective), we hope to join forces with some excellent partners and distributorships. We intend to recruit existing wind turbine distributors. In addition, we are currently in contact with various farm equipment dealers who have a well-established rural network of dealers throughout America, all with the ability to provide excellent sales, installation, and maintenance services. We also plan to sell distributorships to other existing service-oriented organizations.

We are currently in the process of finalizing our first two products that should be available during the second half of 2010. Subject to availability of adequate capital, product roll out could follow quickly in the western United States.

Results of Operations

The Company had an accumulated deficit of $9,157,006 as of June 30, 2010. No revenues from operations were received in 2010 and 2009. The Company had a net loss from continuing operations of $78,057 for the quarter ended June 30, 2010, compared to a net loss from continuing operations of $25,525 for the quarter ended June 30, 2009. The increase in net loss from continuing operations resulted primarily from increased General and Administrative Expenses and Related Party Consulting Fees. These types of expenses will continue to increase, subject to available funding, as we continue with our business plan.

The Company had a net loss from continuing operations for the six months ended June 30, 2010 of $161,775, as compared to a net loss from continuing operations of $45,048 for the six month period ended June 30, 2009. The increase in the net loss from continuing operations resulted primarily from increased General and Administrative Expenses and Related Party Consulting Fees. These types of expenses will continue to increase in the future, subject to available funding, as we continue our business plan.

Liquidity and Capital Resources

During the second quarter of 2010, we sold 133,333 shares of restricted common stock for total gross proceeds of $10,000. See “Part II, Item 2, Unregistered Sale of Equity Securities and Use of Proceeds” below.

During the quarter ended June 30, 2010, we reduced our total liabilities by $611,442 through the discontinued operations of our previous majority-owned subsidiary, MicroCor, Inc., and through the conversion of debt and accrued interest in exchange for our common stock. See “Part II, Item 2, Unregistered Sale of Equity Securities and Use of Proceeds” and “Part II, Item 5, Other Information – Wescor Agreement” below. We will continue to attempt to reduce our liabilities in the future.

In 2009, we suffered from a liquidity shortage which negatively impacted our ability to implement our new business plan for entry in the wind energy industry. Such liquidity shortage is continuing in 2010.

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WINDGEN ENERGY, INC.

Implementation of our new business to assemble and market wind turbines is contingent upon our ability to acquire new capital in 2010. We currently estimate we will need to generate approximately $2,500,000 of new capital during 2010 to fully implement our new business plan. We also estimate $1,500,000 of new capital would permit us to implement enough of our plan to commence minimal marketing of our wind turbine units in the second half of 2010.

We intend to acquire new capital during 2010 through the sale of equity or convertible debt in one or more private placements. Presently, we have no agreement or understanding with any underwriter, investment banker or investor for any financing. There is no assurance we will be able to complete any substantial financing in the future.

Item 3.

Quantitative and Qualitative Disclosures About Market Risk.

Not applicable.

Item 4T.

Controls and Procedures.

Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures

Under the supervision and with the participation of our principal executive officer and principal financial officer, we conducted an evaluation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended (the Exchange Act). Accordingly, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures as defined in Rule 13a-15(e) under the Exchange Act were effective as of June 30, 2010 to ensure that information required to be disclosed in reports we file or submit under the Exchange Act is recorded, processed, and summarized and reported within the time periods specified in SEC rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Act is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions as appropriate to allow timely decisions regarding required disclosure.

Management’s Annual Report on Internal Control Over Financial Reporting.

Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) and 15d-(f) under the Exchange Act. Our internal control over financial reporting are designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with U. S. generally accepted accounting principles. Our internal control over financial reporting includes those policies and procedures that:

i.	pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets;

ii.

provide reasonable assurance that transactions are recorded as necessary to permit the preparation of our consolidated financial statements in accordance with U. S. generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of our management and Directors; and

iii.	provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the consolidated financial statements.

Management assessed the effectiveness of the Company’s internal control over financial reporting as of June 30, 2010. Management has concluded that our internal control over financial reporting was effective as of June 30, 2010.

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WINDGEN ENERGY, INC.

Inherent Limitations Over Internal Controls

Internal control over financial reporting cannot provide absolute assurance of achieving financial reporting objectives because of its inherent limitations, including the possibility of human error and circumvention by collusion or overriding of controls. Accordingly, even an effective internal control system may not prevent or detect material misstatements on a timely basis. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

Changes in Internal Control Over Financial Reporting.

We have made no change in our internal control over financial reporting during the last fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Attestation Report of the Registered Public Accounting Firm.

This quarterly report does not include an attestation report of our independent registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by our independent registered public accounting firm pursuant to temporary rules of the SEC that permit us to provide only management’s report in this quarterly report on Form 10-Q affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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WINDGEN ENERGY, INC.

PART II.

OTHER INFORMATION

Item 1.

Legal Proceedings. None.

Item 1A.

Risk Factors. Not applicable.

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds.

During the second quarter of 2010, we sold 133,333 shares of restricted common stock for $10,000 to one (1) accredited investor, as that term is defined by SEC Rule 501, pursuant to a Rule 506 private placement we are currently conducting. These sales to accredited investors were made without public solicitation. There were no underwriting discounts or commissions paid on these sales of securities. The proceeds of this offering will be used by the Company for marketing expenses.

Also during the second quarter of 2010, we issued 556,306 shares of restricted common stock to two (2) accredited investors in conversion of $41,423 of accrued debt and interest. These sales were made without public solicitation and without underwriting discounts or sales commissions.

Item 3.

Defaults Upon Senior Securities. None.

Item 4.

(Removed and Reserved)

Item 5.

Other Information.

Change in Directors and Officers

On March 18, 2010, our Board of Directors accepted the resignation of Christopher R. Miller from the positions of Director, Secretary/Treasurer and Chief Financial Officer. There were no disagreements between Mr. Miller and the Company. On March 18, 2010, Ronald Conquest, our Chairman, was appointed as Secretary/Treasurer and Chief Financial Officer.

On April 21, 2010, Ronald Conquest resigned as Secretary, Treasurer and Chief Financial Officer of the Registrant, and Wendy Carriere was appointed to the positions of Director, Secretary, Treasurer and Chief Financial Officer. The business experience of Ms. Carriere is set forth below.

Wendy Carriere, age 40, earned a Bachelors of Science Business Administration from the University of Nevada-Las Vegas in 1993. From January 2010 to present, Ms. Carriere was the owner and Chief Executive Officer of Fair Debt Servicing located Southern California, specializing in servicing loans for large institutional investors. From June 2007 to December 2009, Ms. Carriere was President of Nationwide Auction Finance in Southern California, a subsidiary company of publicly traded Entrade. Nationwide originated loans to individuals and provided loan servicing and collections to its own portfolio. From November 2005 to present, she has served as Chief Financial Officer and Controller of Data Control Corporation in Sacramento, a parent company with subsidiaries specializing in web-based data warehousing, print media publishing and large scale software development. From March 2004 to May 2005, Ms. Carriere was Chief Financial Officer for Newgen Results Corp., a wholly-owned subsidiary of TeleTech located in San Diego with annual revenues of $100M, providing auto dealerships with a complete suite of customer relationship management solutions.

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WINDGEN ENERGY, INC.

Ms. Carriere is not receiving any compensation for her services at this time, but the Board of Directors may approve compensation for her in the future.

Wescor Agreement

On June 24, 2010, the Company, Chi Lin Technology Co., Ltd. (“Chi Lin”), MicroCor, Inc. (“MicroCor”), and Wescor, Inc. (“Wescor”), executed an amendment (the “Amendment”) to the parties’ Joint Development Agreement dated September 7, 2004 (the “Agreement”). The Agreement provided for Wescor to manage and provide funding for MicroCor’s development of its hematocrit technology. The Company owned 57% of MicroCor as a result of the Agreement and Wescor and Chi Lin owned the interest in MicroCor. In 2008, Wescor breached the Agreement by ceasing to fund additional research for MicroCor. MicroCor owns three (3) patents covering various aspects of its hematocrit technology.

The Amendment provides for: (i) all debts between the parties to be extinguished and cancelled; (ii) the Company to transfer such stock ownership to Wescor so that Wescor will own 36.8% of MicroCor and the Company will only own 49.0% of MicroCor; and (iii) the Company will loan funds to MicroCor for the maintenance of its patents through 2011. The Amendment is effective as of March 31, 2010.

The Amendment also provides that in the event there are any net revenues from MicroCor’s hematocrit technology in the future, such net revenues will be distributed as follows: (i) the first $150,000 to Wescor; (ii) the Company will be repaid any sums loaned to MicroCor for the patent maintenance; (iii) the next $150,000 split pro-rata 80% to the Company and 20% to Chi Lin; and (iv) the remaining net revenues split pro-rata among MicroCor’s three shareholder’s: the Company (49.0%); Wescor (36.8%) and Chi Lin (14.2%).

As a result of the Company transferring shares in MicroCor to Wescor pursuant to the Amendment, the Company’s ownership in MicroCor will become only 49.0%. Therefore, the financial statements of MicroCor will no longer be consolidated into and reported with the financial statements of the Company.

Chi Lin Proxy

Chi Lin Technology Co., Ltd. (“Chi Lin”) owns 6,043,704 issued and outstanding shares of common stock of the Company (the “Chi Lin Shares”). On July 20, 2010, Chi Lin granted to Larry Clark and Richard Bruggeman, the former executive officers and Directors of the Company, and the survivor of them, with full power of substitution, an irrevocable proxy empowering Clark and Bruggeman to unanimously vote the Chi Lin Shares in any shareholder vote (the “Chi Lin Proxy”). The Chi Lin Proxy expires on September 30, 2010.

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WINDGEN ENERGY, INC.

Item 6.

Exhibits

Exhibit No.		Description

10.1		Joint Development Agreement Amendment between the Company, Chi Lin Technology Co., Ltd., MicroCor, Inc., and Wescor, Inc. (1)
10.2		Proxy dated July 20, 2010 between Chi Lin Technology Co., Ltd., Larry Clark and Richard Bruggeman*
31.1		Certification by Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act *
31.2		Certification by Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act *
32.1		Certification by Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act *
32.2		Certification by Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act *

__________________

*	Filed herewith.

(1)	Incorporated by reference to Exhibit 10.1 of the Current Report on Form 8-K filed on June 30, 2010.

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WINDGEN ENERGY, INC.

Signatures

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

	WINDGEN ENERGY, INC.


Dated: August 13, 2010	By:	/s/ Ronald Conquest
		Ronald Conquest Chairman of the Board and Chief Executive Officer (Principal Executive Officer)

Dated: August 13, 2010	By:	/s/ Wendy Carriere
		Wendy Carriere Secretary/Treasurer, Chief Financial Officer and Director (Principal Accounting Officer)