UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended ~~June~~ September 30, 2013

Transition Report Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934

For the transition period from to

Commission File No. 333-149857

TEXAS GULF ENERGY, INCORPORATED

(Exact name of registrant as specified in its charter)

Nevada		26-0338889
(State of incorporation)		(I.R.S. Employer Identification No.)

1602 Old Underwood Road, La Porte, TX 77571

(Address of principal executive offices and zip code)

Registrant’s telephone number, including area code: (281) 867-8500

Not Applicable

(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 x No ¨

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

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 definition of “accelerated filer”, “large accelerated filer”, and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨	Accelerated filer	¨

Non-accelerated filer	¨	Smaller reporting company	x

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

As of November ~~July 31~~15, 2013 there were 6768,~~512~~776,~~896~~636 shares of the Company’s common stock, $0.00001 par value per share, issued and outstanding.

FORWARD-LOOKING STATEMENTS

This Form 10-Q includes “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. All statements, other than statements of historical facts, included in this Form 10-Q which address activities, events or developments which we expect, believe or anticipate will or may occur in the future are forward-looking statements. The words “believes,” “intends,” “expects,” “anticipates,” “projects,” “estimates,” “predicts” and similar expressions are also intended to identify forward-looking statements.

These forward-looking statements include, among others, such things as:

• amounts and nature of future revenues and margins from our Construction Services and Fishbone Solutions segments; • the likely impact of new or existing regulations or market forces on the demand for our services; • expansion and other development trends of the industries we serve; • our ability to generate sufficient cash from operations or to raise cash in order to meet our short and long-term capital requirements; and

• the likely impact of new or existing regulations or market forces on the demand for our services;

• expansion and other development trends of the industries we serve;

• our ability to generate sufficient cash from operations or to raise cash in order to meet our short and long-term capital requirements; and

These statements are based on certain assumptions and analyses we made in light of our experience and our perception of historical trends, current conditions and expected future developments as well as other factors we believe are appropriate. However, whether actual results and developments will conform to our expectations and predictions is subject to a number of risks and uncertainties which could cause actual results to differ materially from our expectations, including:

• the risk factors discussed in our Form 10-K for the fiscal year ended December 31, 2012 and listed from time to time in our filings with the Securities and Exchange Commission; • the inherently uncertain outcome of current and future litigation; • the adequacy of our reserves for contingencies; • economic, market or business conditions in general and in the oil, gas and power industries in particular; • changes in laws or regulations; including the granting of Visas for foreign guest workers and • other factors, many of which are beyond our control.

• the inherently uncertain outcome of current and future litigation;

• the adequacy of our reserves for contingencies;

• economic, market or business conditions in general and in the oil, gas and power industries in particular;

• changes in laws or regulations; including the granting of Visas for foreign guest workers and

• other factors, many of which are beyond our control.

Consequently, all of the forward-looking statements made in this Form 10-Q are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to or effects on us or our business operations. We assume no obligation to update publicly, except as required by law, any such forward-looking statements, whether as a result of new information, future events or otherwise.

TABLE OF CONTENTS

		PAGE
PART I	FINANCIAL INFORMATION
Item 1.	Financial Statements	1
	Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2013 and 2012 (Unaudited)	1
	Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2013 and 2012 (Unaudited)	1
	Consolidated Balance Sheets as of June 30, 2013 (Unaudited) and December 31, 2012	2
	Consolidated Balance Sheets as of September 30, 2013 (Unaudited) and December 31, 2012	2
	Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2013 and 2012 (Unaudited)	3
	Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2013 and 2012 (Unaudited)	3
	Notes to Consolidated Financial Statements (Unaudited)	4
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	1110
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	1413
Item 4.	Controls and Procedures	1413
PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	15
Item 1A.	Risk Factors	1615
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	1615
Item 3.	Defaults Upon Senior Securities	1615
Item 4.	Mine Safety Disclosures	1615
Item 5.	Other Information	1615
Item 6.	Exhibits	1615

PART I. FINANCIAL INFORMATION

~~ITEM~~ ITEM 1. Financial Statements

Texas Gulf Energy, Incorporated

Consolidated Statements of Operations

(unaudited)

	Three Months Ended June 30,								Six Months Ended June 30,
	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012	~~2012~~		2013		~~2013~~	2012		~~2012~~
Revenues	$	6,763,930			$	8,263,576			$	14,060,043		$	17,329,764
				(restated)						(restated)
Cost of revenues		5,503,506				6,062,475				11,015,627			13,171,856
Revenues	$	6,191,014		$	8,080,254		$	20,251,057		$	25,410,018
Gross profit		1,260,424				2,201,101				3,044,416			4,157,908
Cost of revenues		4,809,909			6,569,790			15,825,536			19,741,646
General and administrative expense		1,991,056				2,595,175				3,411,967			4,491,027
Gross profit		1,381,105			1,510,464			4,425,521			5,668,372
Income (loss) from operations		(730,632	)			(394,074	)			(367,551	)		(333,119	)
General and administrative expense		2,106,837			2,175,442			5,518,804			6,666,469
Other income (expense)
Loss from operations		(725,732)			(664,978)			(1,093,283)			(998,097)
Other income (expense)		~~17,136~~				~~682~~				~~134,376~~			~~682~~
Interest expense		(97,154	)			(67,031	)			(165,059	)		(72,456	)
Other income (expense)		(881)			404,820			133,495			405,502
Total other income (expense)		(80,018	)			(66,349	)			(30,683	)		(71,774	)
Interest expense		(79,738)			(16,630)			(244,797)			(89,086)
Loss before income tax		(810,650	)			(460,423	)			(398,234	)		(404,893	)
Total other income (expense)		(80,619)			388,190			(111,302)			316,416
Income tax benefit (expense)		290,110				115,809				152,466			140,643
Loss before income tax		(806,351)			(276,788)			(1,204,585)			(681,681)
Net income (loss)	$	(520,540	)		$	(344,614	)		$	(245,768	)	$	(264,250	)
Income tax benefit		52,808			60,344			205,274			200,987
Earnings (loss) per share
Net loss	$	(753,543)		$	(216,444)		$	(999,311)		$	(480,694)
Basic	$	(0.01	)		$	(0.00	)		$	(0.00	)	$	(0.00	)
Loss per share
Diluted	$	(0.01	)		$	(0.00	)		$	(0.00	)	$	(0.00	)
Basic	$	(0.01)		$	(0.00)		$	(0.02)		$	(0.01)
Weighted average shares outstanding
Diluted	$	(0.01)		$	(0.00)		$	(0.02)		$	(0.01)
Basic		52,072,035				47,254,016				51,033,508			45,733,732
Weighted average shares outstanding
Diluted		52,072,035				47,254,016				51,033,508			45,733,732
Basic		56,612,302			48,847,954			52,913,541			47,309,704
Diluted		56,612,302			48,847,954			52,913,541			47,309,704

See accompanying notes to the Consolidated Financial Statements.

	1

Texas Gulf Energy, Incorporated

Consolidated Balance Sheets

	June 30, 2013			December 31, 2012
	(unaudited)			(restated)
Assets
Current assets:
Cash and cash equivalents	$	373,530		$	394,306
Accounts receivable, net		5,760,178			6,506,920
Federal income taxes receivable		125,884			115,224
Deferred income taxes		245,000			130,000
Prepaid expenses and other current assets		293,836			762,211
Total current assets		6,798,428			7,908,661
Property and equipment, net		1,176,189			1,431,741
Goodwill and other assets		939,947			942,227
Total assets	$	8,914,564		$	10,282,629
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	1,203,716		$	1,292,686
Accrued liabilities		688,275			1,353,044
Due to related parties, net		23,231			204,561
Lines of credit		2,090,154			2,623,552
Note payable		235,135			233,135
Total current liabilities		4,240,511			5,706,978
Convertible debt		1,283,126			1,283,126
Deferred federal income tax		-			29,000
Total liabilities		5,523,637			7,019,104
Commitments and Contingencies
Stockholders’ equity:
Common stock - $.00001 par value; 500,000,000 shares authorized; 53,446,457 shares issued and outstanding as of June 30, 2013, and 49,300,156 December 31, 2012		534			493
Preferred stock – par value of $.00001;100,000,000 shares authorized;
Series A convertible preferred stock 2,900,000 issued and outstanding		29			29
Series B convertible preferred stock 10,000,000 issued and outstanding		100			100
Additional paid in capital		3,594,318			3,221,189
Retained earnings (deficit)		(204,054	)		41,714
Total stockholders’ equity		3,390,927			3,263,525
Total liabilities and stockholders’ equity	$	8,914,564		$	10,282,629

(unaudited)

See accompanying notes to the Consolidated Financial Statements.

	September 30, 2013		December 31, 2012
			(restated)
Assets
Current assets:
Cash and cash equivalents	$	483,807	$	394,306
Accounts receivable, net		5,319,960		6,506,920
Federal income taxes receivable		303,746		115,224
Deferred income taxes		245,000		130,000
Prepaid expenses and other current assets		545,345		762,211
Total current assets		6,897,858		7,908,661

Property and equipment, net		988,282		1,431,741
Goodwill and other assets		935,947		942,227
Total assets	$	8,822,087	$	10,282,629

Liabilities and stockholders’ equity

Current liabilities:
Accounts payable	$	1,373,726	$	1,292,686
Accrued liabilities		604,774		1,353,044
Due to related parties, net		36,747		204,561
Lines of credit		2,037,713		2,623,552
Note payable		484,080		233,135
Total current liabilities		4,537,040		5,706,978

Convertible debt		1,283,126		1,283,126
Deferred federal income tax		-		29,000
Total liabilities		5,820,166		7,019,104

Commitments and Contingencies

Stockholders’ equity:
Common stock - $.00001 par value; 500,000,000 shares authorized; 58,485,479 shares issued and outstanding as of September 30, 2013, and 49,300,156 December 31, 2012		585		493
Preferred stock – par value of $.00001; 100,000,000 shares authorized;
Series A convertible preferred stock 2,900,000 issued and outstanding		29		29
Series B convertible preferred stock 10,000,000 issued and outstanding		100		100
Additional paid in capital		3,958,804		3,221,189
Retained earnings (deficit)		(957,597)		41,714
Total stockholders’ equity		3,001,921		3,263,525
Total liabilities and stockholders’ equity	$	8,822,087	$	10,282,629

2See accompanying notes to the Consolidated Financial Statements.

~~Texas Gulf Energy, Incorporated~~2

~~Consolidated~~Texas ~~Statements~~Gulf ofEnergy, ~~Cash Flows~~Incorporated

~~(unaudited)~~Consolidated Statements of Cash Flows

	Six months ended
	June 30, 2013			June 30, 2012
Cash flow from operating activities
Net loss	$	(245,768	)	$	(264,250	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation		321,099			219,610
Stock based compensation		373,170			427,167
Changes in working capital accounts:
Change in accounts receivables		746,742			167,376
Change in federal income taxes receivable		(10,661	)		(540,802	)
Change in prepaid expenses and other current assets		470,655			(71,931	)
Change in accounts payable		(88,970	)		(23,016	)
Change in deferred tax asset		(115,000	)		-
Change in accrued liabilities		(664,768	)		31,725
Change in deferred tax liability		(29,000	)		-
Change in due to related parties		(181,331	)		(1,375,741	)
Net cash provided by (used in) operating activities		576,168			(1,429,862	)
Cash flows from investing activities
Purchase of property and equipment		(65,546	)		(617,180	)
Acquisitions		-			(371,022	)
Net cash used in investing activities		(65,546	)		(988,202	)
Cash flows from financing activities
Proceeds from notes payable, net		2,000			(199,894	)
Payment on line of credit, net		(533,398	)		-
Proceeds from issuance of common stock		-			1,799,305
Net cash provided by (used in) financing activities		(531,398	)		1,599,411
Net change in cash and cash equivalents		(20,776	)		(818,653	)
Cash and cash equivalents:
Beginning		394,306			2,747,880
Ending	$	373,530		$	1,929,227
Supplemental disclosure of cash flow information
Cash payments (receipts) for:
Federal income tax	$	-		$	194,414
Interest expense	$	139,916		$	72,456

(unaudited)

See accompanying notes to the Consolidated Financial Statements.

	Nine months ended
	September 30, 2013		September 30, 2012
				(restated)
Cash flow from operating activities
Net loss	$	(999,311)	$	(480,694)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation		482,561		377,004
Stock based compensation		559,755		900,751
Gain on sale of assets		-		(43,192)
Gain on sale of business		-		(348,001)
Changes in working capital accounts:		-
Change in accounts receivables		1,186,960		132,756
Change in federal income taxes receivable		(188,522)		(631,389)
Change in prepaid expenses and other current assets		223,146		175,449
Change in accounts payable		81,039		553,723
Change in deferred tax asset		(115,000)		-
Change in accrued liabilities		(570,317)		(1,974,602)
Change in deferred tax liability		(29,000)		-
Change in due to related parties		(167,814)		(1,290,574)
Net cash provided by (used in) operating activities		463,497		(2,628,769)

Cash flows from investing activities
Purchase of property and equipment, net		(39,102)		(891,514)
Acquisitions		-		(371,022)
Disposal of business		-		12,661
Proceeds from sale of assets		-		90,384
Net cash used in investing activities		(39,102)		(1,159,491)

Cash flows from financing activities
Proceeds from notes payable, net		250,945		-
Payment on line of credit, net		(585,839)		(223,894)
Line of credit, net		-		1,446,889
Net cash provided by (used in) financing activities		(334,894)		1,222,995

Net change in cash and cash equivalents		89,501		(2,565,265)

Cash and cash equivalents:
Beginning		394,306		2,747,880
Ending	$	483,807	$	182,615

Supplemental disclosure of cash flow information
Cash payments (receipts) for:
Federal income tax	$	-	$	194,414
Issuance of common stock for payment of accounts payable	$	177,952	$	-
Interest paid	$	244,797	$	89,086

3See accompanying notes to the Consolidated Financial Statements.

~~Texas Gulf Energy, Incorporated~~3

~~Notes~~Texas toGulf ~~Consolidated~~Energy, ~~Financial Statements~~Incorporated

~~(unaudited)~~Notes to Consolidated Financial Statements

~~Note~~ ~~1 – Basis of Presentation~~(unaudited)

~~The~~ Note ~~consolidated~~1 ~~financial~~– ~~statements~~Basis ~~include the accounts~~ of Texas Gulf Energy, Incorporated (“TGE,” “we,” “our,” “us,” “its” or the “Company”) and its subsidiaries, all of which are wholly owned. Intercompany balances and transactions have been eliminated in consolidation.Presentation

The ~~accompanying unaudited~~ consolidated financial statements ~~have~~include ~~been~~the ~~prepared~~accounts ~~in accordance with Rule 8-03~~ of ~~Regulation~~Texas ~~S-X~~Gulf ~~for~~Energy, ~~interim~~Incorporated ~~financial~~(“TGE,” ~~statements~~“we,” ~~required to~~“our,” be“us,” ~~filed~~“its” ~~with~~or the ~~Securities~~“Company”) and ~~Exchange~~its ~~Commission~~subsidiaries, ~~and do not include~~ all ~~information~~of ~~and~~which ~~footnotes~~are ~~required~~wholly ~~by generally accepted accounting principles for complete financial statements~~owned. ~~However,~~Intercompany ~~the~~balances ~~information furnished reflects all adjustments, consisting of normal recurring adjustments~~ and ~~other~~transactions ~~adjustments~~have ~~described~~been ~~herein~~eliminated ~~that are,~~ in ~~the opinion of management, necessary for a fair statement of the results for the interim periods~~consolidation.

The accompanying unaudited consolidated financial statements ~~should~~have bebeen ~~read~~prepared in ~~conjunction~~accordance with ~~the~~Rule ~~audited~~8-03 ~~financial~~of ~~statements~~Regulation ~~for the year ended December 31, 2012, included in the Company’s Annual Report on Form 10~~S-KX for ~~the~~interim ~~year~~financial ~~then~~statements ~~ended,~~required asto ~~amended.~~be ~~The~~filed ~~Company’s~~with ~~business is cyclical due to~~ the ~~scope~~Securities and ~~timing~~Exchange ofCommission ~~projects~~and ~~released~~do bynot ~~its~~include ~~customer~~all ~~base.~~information ~~Planned~~and ~~maintenance~~footnotes ~~projects~~required atby ~~customer~~generally ~~facilities are~~accepted ~~typically~~accounting ~~scheduled~~principles infor ~~the~~complete ~~spring~~financial ~~and~~statements. ~~the~~However, ~~fall when~~ the ~~demand~~information ~~for~~furnished ~~energy~~reflects isall ~~lower.~~adjustments, ~~Our~~consisting ~~business~~of ~~can~~normal ~~also~~recurring beadjustments ~~affected~~and byother ~~seasonal weather~~adjustments ~~conditions~~described ~~including~~herein ~~hurricanes,~~that ~~snowstorms~~are, ~~abnormally~~in ~~low~~the oropinion ~~high~~of ~~temperatures or other inclement weather~~management, ~~which~~necessary ~~can result~~for ina ~~reduced~~fair ~~activities.~~statement ~~Accordingly,~~of the results for ~~any~~the interim ~~period may not necessarily be indicative of future operating results~~periods.

~~Note~~The 2accompanying –unaudited ~~Recently~~consolidated ~~Issued~~financial ~~Statements~~statements should be read in conjunction with the audited financial statements for the year ended December 31, 2012, included in the Company’s Annual Report on Form 10-K for the year then ended, as amended. The Company’s business is cyclical due to the scope and timing of ~~Financial~~projects ~~Accounting Standards~~released by its customer base. Planned maintenance projects at customer facilities are typically scheduled in the spring and the fall when the demand for energy is lower. Our business can also be affected by seasonal weather conditions including hurricanes, snowstorms, abnormally low or high temperatures or other inclement weather, which can result in reduced activities. Accordingly, results for any interim period may not necessarily be indicative of future operating results.

~~Recent~~ ~~accounting~~Restatement ~~pronouncements~~of ~~issued by~~Financial ~~the~~Information ~~FASB (including its Emerging Issues Task Force), and the SEC did not or are not believed by management to have a material impact on the Company’s present or future financial statements.~~

~~Note~~ 3Texas –Gulf ~~Convertible~~Energy, ~~Debt~~Incorporated (“Company”) has restated its unaudited consolidated financial statements for the three and nine months ended September 30, 2012 to correct its accounting for errors that occurred during this quarter. This statement is necessary due to material weaknesses in the Company’s internal controls that resulted in accounting errors that occurred when the Company failed to reconcile certain accounts. The effected accounts were “Prepaid Expenses - Credit Cards,” “Accrued Revenue,” “Advance to Global NuTech, Inc.,” and “Accrued Expenses.” As part of the restatement process resulting from our review of such errors, we assessed which items should be corrected in our previously issued financial statements. The aggregate adjustments in our financial statements changed net income (loss) by $284,277 and $284,277 for the three and nine months ended September 30, 2012 respectively and total assets and total liabilities by $288,968 and $4,692 respectively.

~~Fishbone~~ Note 2 – Recently Issued Statements of Financial Accounting Standards

OnRecent ~~February~~accounting 3,pronouncements ~~2012 the Company~~ issued ~~convertible~~ ~~notes~~by ~~totaling $1,283,126 and promissory notes totaling $216,874 associated with~~ the ~~purchase~~FASB ~~of Fishbone Solutions, Inc.~~ (~~“Fishbone”),~~including onits ~~the closing~~Emerging ~~date~~Issues ofTask ~~the transaction, the Company issued individually to the equity-holders of Fishbone, promissory notes (also referred to herein as the “Notes”~~Force), ~~in the proportional principal amounts directed by the equity-holders, in the aggregate amount of $1,500,000 together with interest thereon at the rate of 0.19% per annum, the principal~~ and ~~accrued interest thereon being convertible into shares of our common stock, par value $0.00001 per share (“Common Stock”), at $0.12 per share, with~~ the ~~issue~~SEC ~~and~~did ~~registration~~not ofor ~~such~~are ~~restricted~~not ~~Common~~believed ~~Stock~~by ~~being~~management ~~subject~~ to ~~Rule~~have ~~144~~a ~~of the~~material ~~Securities~~impact ~~Act~~on ofthe ~~1933~~Company’s ~~and~~present ~~any~~or ~~other~~future ~~pertinent~~financial ~~rules of law regarding restricted securities~~statements.

4 Note 3 – Convertible Debt

~~Such~~ ~~equity-holders~~Fishbone ~~will be limited to selling Common Stock converted from the Notes as follows:~~Note

~~(a)~~On ~~zero~~February ~~percent~~3, ~~(0%)~~2012 ~~until~~ the ~~one~~Company ~~year~~issued ~~anniversary;~~convertible ~~(February~~notes 3totaling $1,283,126 ~~2013)~~and ~~(b)~~promissory nonotes ~~more~~totaling ~~than~~$216,874 ~~fifteen~~associated ~~percent~~with the purchase of Fishbone Solutions, Inc. (~~15%~~“Fishbone”), ofon the closing ~~principal~~date ~~amount~~of ~~and~~the ~~accrued~~transaction, ~~interest~~the ofCompany ~~each~~issued ~~Note~~individually ~~from~~to the ~~one~~equity-holders ~~year~~of ~~anniversary~~Fishbone, ~~date~~promissory notes (~~February~~also 3,referred ~~2013)~~to ~~until~~herein as the ~~day~~“Notes”), ~~before~~in the ~~two~~proportional ~~year~~principal ~~anniversary;~~amounts ~~(c)~~directed anby ~~additional~~the ~~fifteen~~equity-holders, ~~percent~~in ~~(15%) from~~ the ~~two~~aggregate ~~year~~amount ~~anniversary~~of ~~(February 13~~$1,500,000 ~~2014)~~together ~~until~~with ~~the~~interest ~~day~~thereon ~~before~~at the ~~three~~rate ~~year anniversary~~ of ~~the~~0.19% ~~Notes;~~per ~~(February 13~~annum, ~~2015)~~the principal and ~~(d)~~accrued ~~the~~interest ~~entire~~thereon ~~remaining~~being ~~balance~~convertible into shares of ~~accrued~~our ~~interest~~common ~~and~~stock, ~~principal~~par ~~thereon~~value ~~becoming~~$0.00001 ~~due~~per ~~and~~share ~~the~~(“Common ~~stock~~Stock”), ~~converted~~at ~~from~~$0.12 per share, with the ~~Notes~~issue ~~become~~and ~~unrestricted~~registration ~~for~~of ~~sale~~such onrestricted ~~the~~Common ~~three~~Stock ~~year~~being ~~anniversary~~subject to Rule 144 of the ~~Notes,~~Securities atAct ~~which~~of ~~time~~1933 ~~all~~and ~~such~~any ~~limitations~~other onpertinent ~~sale~~rules ~~will~~of belaw ~~lifted~~regarding restricted securities.

Notwithstanding, the equity-holders must commence any conversion process of any remaining balance on the Notes no later than the third year anniversary (February 3, 2015). The Notes may also become due and subject to rights of conversion in the event of a liquidation event or change of control.4

~~Convertible~~Such ~~debt~~equity-holders atwill ~~June~~be ~~30,~~limited ~~2013~~to ~~and~~selling ~~December 31,~~Common ~~2012~~Stock ~~consist~~converted offrom the ~~following~~Notes as follows:

	June 30, 2013		December 31, 2012
Fishbone Note	$1,283,126		$1,283,126
Less: current maturities		-		-
Total convertible debt	$	1,283,126	$	1,283,126

(a)	zero percent (0%) until the one year anniversary; (February 3, 2013)
(b)	no more than fifteen percent (15%) of the principal amount and accrued interest of each Note from the one year anniversary date (February 3, 2013) until the day before the two year anniversary;
(c)	an additional fifteen percent (15%) from the two year anniversary (February 13, 2014) until the day before the three year anniversary of the Notes; (February 13, 2015) and
(d)	the entire remaining balance of accrued interest and principal thereon becoming due and the stock converted from the Notes become unrestricted for sale on the three year anniversary of the Notes, at which time all such limitations on sale will be lifted.

~~Note~~Notwithstanding, 4the equity-holders ~~Lines~~must commence any conversion process of ~~Credit~~any remaining balance on the Notes no later than the third year anniversary (February 3, 2015). The Notes may also become due and subject to rights of conversion in the event of a liquidation event or change of control.

OnConvertible ~~February~~debt ~~29,~~at ~~2012,~~September ~~the Company entered into a $3 million receivables purchase agreement with a merchant bank. Under the agreement~~30, ~~the~~2013 ~~Company can sell all rights, title~~ and ~~interests~~December ~~in their accounts receivables for the total amount of the receivable invoices~~31, ~~less~~2012 aconsist ~~discounting factor~~ of ~~15% to~~ the factoring company. The factoring company will remit a rebate to the Company of an amount between 14.30% and 10% of the receivable invoice amounts depending on how long it takes the factoring company to collect the receivable. The sooner the amount is collected, the greater the rebate received by the Company. If after 90 days it isn’t collected, the Company agreed to repurchase the receivables for $0.90 for each $1.00 invoiced. The Company retains the right to repurchase any of its invoices at any time from the merchant bank. The balance on the purchase agreement was $744,090 and $2,255,910 was available at June 30, 2013.following:

On September 14, 2012, the Company entered into a $1 million receivable purchase agreement with a merchant bank. Under the agreement, the Company can sell all rights, title and interests in their accounts receivables for the total amount of the receivable invoices, less a discounting factor of 15% to the factoring company. The factoring company will remit a rebate to the Company of an amount between 10% and 14.30% of the receivable invoice amounts depending on how long it takes the factoring company to collect the receivable. The sooner the amount is collected, the greater the rebate received by the Company. If after 90 days it isn’t collected, the Company agreed to repurchase the receivables for $0.90 for each $1.00 invoiced. The Company retains the right to repurchase any of its invoices at any time from the merchant bank. The balance on the purchase agreement was $205,459 and $794,541 was available at June 30, 2013. This agreement can be terminated at any time by the Company.

	September 30, 2013		December 31, 2012

Fishbone Note	$	1,283,126	$	1,283,126
Less: current maturities		-		-
Total convertible debt	$	1,283,126	$	1,283,126

In Note ~~November~~4 ~~2012,~~- ~~the~~Lines ~~Company renewed its $1,000,000 line~~ of credit with Patriot Bank through May 9, 2013. The line of credit bears interest at 6.5% or the Wall Street Journal prime rate plus 2%. Accrued and unpaid interest on the revolving note is due and payable monthly in arrears and all amounts outstanding under the revolving note are due and payable on May 9, 2013. In March 2013, the Company increased the line of credit to $1,250,000 and modified the maturity date to July 26, 2013. On July 26, 2013 the line of credit was renewed for the same amount with maturity date of September 26, 2013. The balance on the revolving line of credit is $1,140,605 at June 30, 2013.Credit

~~Note~~On 5February -29, ~~Note~~2012, ~~Payable~~the Company entered into a $3 million receivables purchase agreement with a merchant bank. Under the agreement, the Company can sell all rights, title and interests in their accounts receivables for the total amount of the receivable invoices, less a discounting factor of 15% to the factoring company. The factoring company will remit a rebate to the Company of an amount between 14.30% and 10% of the receivable invoice amounts depending on how long it takes the factoring company to collect the receivable. The sooner the amount is collected, the greater the rebate received by the Company. If after 90 days it isn’t collected, the Company agreed to repurchase the receivables for $0.90 for each $1.00 invoiced. The Company retains the right to repurchase any of its invoices at any time from the merchant bank. The balance on the purchase agreement was $467,279 and $2,532,721 was available at September 30, 2013.

~~The~~On September 14, 2012, the Company ~~assumed~~entered into a ~~loan~~$1 ~~due~~million toreceivable purchase agreement with a ~~former shareholder~~merchant ofbank. ~~Fishbone~~Under the agreement, the Company can sell all rights, title and interests in ~~2012~~their accounts receivables for the total amount of the receivable invoices, less a discounting factor of 15% to the factoring company. The ~~balance~~factoring ~~outstanding~~company atwill ~~June~~remit a rebate to the Company of an amount between 10% and 14.30,% ~~2013~~of the receivable invoice amounts depending on how long it takes the factoring company to collect the receivable. The sooner the amount is ~~$185~~collected,~~135~~ the greater the rebate received by the Company. InIf ~~addition~~after 90 days it isn’t collected, the ~~company~~Company ~~received~~agreed ato ~~shareholder loan~~repurchase the receivables for $0.90 for each $1.00 invoiced. The Company retains the right to repurchase any of its invoices at any time from the merchant bank. The balance on the purchase agreement was $50579,~~000~~984 ~~during~~and ~~the~~$420,016 ~~six~~was ~~months~~available ~~ended~~at ~~June~~September 30, 2013. ~~The~~This ~~loan~~agreement iscan ~~unsecured,~~be ~~due~~terminated onat ~~demand,~~any ~~and~~time ~~non-interest~~by ~~bearing~~the Company.

~~Note~~On 6September -18, ~~Stock~~2013, ~~Based~~the ~~Compensation~~Company terminated its $1,250,000 line of credit with Patriot Bank and replaced the facility with a $1.5 million receivables purchase agreement. Under the agreement, the Company can sell all rights, title and interests in their accounts receivables for the total amount of the receivable invoices, less a discounting factor of 15% to the factoring company. The factoring company will remit a rebate to the Company of an amount between 10% and 14.30% of the receivable invoice amounts depending on how long it takes the factoring company to collect the receivable. The sooner the amount is collected, the greater the rebate received by the Company. If after 90 days it isn’t collected, the Company agreed to repurchase the receivables for $0.90 for each $1.00 invoiced. The Company retains the right to repurchase any of its invoices at any time from the merchant bank. The balance on the purchase agreement was $1,301,373 and $198,628 was available at September 30, 2013. This agreement can be terminated at any time by the Company.

~~The~~Note ~~stock~~5 ~~based compensation~~- ~~cost~~Note that has been charged against income by the Company was $373,170 and $427,167 for the six months ended June 30, 2013 and 2012, respectively, for common stock awarded by the Company. The Company entered into employment agreements with the chief executive officer, chief financial officer, and other key employees and granted in prior year 28,477,806 restricted shares vesting over 36 months. The fair value of the common stock on the date of grant was $0.09 per share or $2,563,002. During 2012, 3,600,000 restricted shares with a fair value of $324,000 were accelerated, thus the remaining 24,877,806 restricted shares with a fair value of $2,239,002 is being recognized over the remaining 24 months. During the six months end June 30, 2013 the Company issued 4,146,301 restricted shares per vesting of the restricted shares and $1,119,501 stock compensation expense remains to be recognized.Payable

5The Company assumed a loan due to a former shareholder of Fishbone in 2012. The balance outstanding at September 30, 2013 is $161,135. In addition, the Company has financed its insurance which has an annual interest rate of 4.45%, and a balance of $322,945 as of September 30, 2013, which will be paid down via nine monthly payments of $35,883.

Note 76 - ~~Earnings~~Stock ~~(Loss)~~Based ~~Per Share~~Compensation

~~Basic~~The ~~earnings~~stock ~~per~~based ~~share~~compensation ~~includes~~cost nothat ~~dilution and~~has isbeen ~~computed~~charged against income by ~~dividing~~the ~~income~~Company ~~available~~was to$559,755 and $900,751 for the nine months ended September 30, 2013 and 2012, respectively, for common ~~shareholders~~stock awarded by the ~~weighted~~Company. ~~average~~The ~~number~~Company ofentered ~~common~~into ~~shares~~employment ~~outstanding for~~agreements with the ~~periods~~chief ~~presented.~~executive ~~The~~officer, ~~calculation~~chief offinancial ~~basic~~officer, ~~earnings~~and ~~per~~other ~~share~~key ~~for~~employees ~~the~~and ~~six~~granted ~~months~~in ~~ended~~prior ~~June~~year 3028,477,806 ~~2013~~restricted ~~includes~~shares ~~the~~vesting ~~weighted average~~over 36 months. The fair value of the common ~~shares~~stock ~~outstanding.~~on ~~Diluted~~the ~~earnings~~date of grant was $0.09 per share ~~reflect~~or ~~the~~$2,563,002. ~~potential~~During ~~dilution~~2012, of3,600,000 ~~securities~~restricted ~~that~~shares ~~could~~with ~~share in~~a ~~the~~fair ~~earnings~~value of an$324,000 ~~entity~~were accelerated, ~~such~~thus asthe ~~convertible~~remaining 24,877,806 ~~preferred~~restricted ~~stock~~shares orwith ~~convertible~~a ~~debt.~~fair ~~Dilutive~~value ~~securities~~of ~~existed~~$2,239,002 ~~for~~is being recognized over the ~~six~~ remaining 24 months. ~~ended~~During ~~June~~the nine months end September 30, 2013 ~~and~~the ~~2012~~Company inissued ~~the~~6,219,452 ~~form~~restricted shares per vesting of ~~convertible~~the ~~preferred~~restricted ~~stock~~shares ~~series~~and A$932,918 ~~and~~stock Bcompensation ~~and~~expense ~~convertible~~remains ~~debt~~to be recognized.

~~Note 8 – Segment Information~~5

~~During~~Note ~~the~~7 ~~quarter~~- Loss ~~the~~Per ~~Company has three reportable segments, International Plant Services, LLC, TGE Electrical & Instrumentation, and Fishbone Solutions, Inc. segments.~~Share

~~International~~Basic ~~Plant~~loss ~~Services~~per share includes no dilution and is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the periods presented. The calculation of basic earnings per share for the nine months ended September 30, 2013 includes the weighted average of common shares outstanding. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of an entity, such as convertible preferred stock or convertible debt. Dilutive securities existed for the nine months ended September 30, 2013 and 2012 in the form of convertible preferred stock series A, and B and convertible debt.

~~Our~~ Note ~~International~~8 ~~Plant~~– ~~Services,~~Segment LLC segment provides turnkey and specialty construction services to a wide range of industrial and energy sector clients. Our scope of services includes managing and executing major capital and turnaround projects, the provision of project management personnel, and other construction resources, like project planners/schedulers, engineers, welders, fitters and millwrights. A portion of the engineers and skilled craftsmen (welders, fitters, millwrights and electricians) are guest workers working with visas in the United States. These services are provided for projects of varying complexities, schedule durations, and budgets. Our project experience and expertise includes turnarounds, retrofits, modifications and expansions to existing facilities as well as the construction of new facilities in the refinery, petrochemical, mining and power industries.Information

~~TGE~~During ~~Electrical~~the &quarter ~~Instrumentation~~ the Company had three reportable segments, International Plant Services, LLC, TGE Industrial Services, Inc. and Fishbone Solutions, Inc. segments.

~~TGE~~International ~~Electrical~~Plant & Instrumentation is a business unit of TGE that provides specialty electrical services, including new construction, maintenance, turnarounds, commissioning, skid/module construction, inspection services, troubleshooting, project management. Services ~~for process industry include capital project construction~~, multi-year programs, maintenance services programs, calibration, commissioning and startup services. The support services include constructability reviews, cost estimating and budget development, project and construction management.LLC

~~Fishbone~~Our ~~Solutions~~International Plant Services, LLC segment provides turnkey and specialty construction services to a wide range of industrial and energy sector clients. Our scope of services includes managing and executing major capital and turnaround projects, the provision of project management personnel, and other construction resources, like project planners/schedulers, engineers, welders, fitters and millwrights. A portion of the engineers and skilled craftsmen (welders, fitters, millwrights and electricians) are guest workers working with visas in the United States. These services are provided for projects of varying complexities, schedule durations, and budgets. Our project experience and expertise includes turnarounds, retrofits, modifications and expansions to existing facilities as well as the construction of new facilities in the refinery, petrochemical, mining and power industries.

~~Fishbone~~TGE ~~Solutions~~Industrial Services, Inc. provides project management services, experienced management personnel and systems to ensure repeatable performance in the following services: program and project management, planning and scheduling, field design and drafting, P&ID updates, CAD work for fabrication, SCOPE Software for field planning, subcontract management, project management, project controls, material procurement and management, and construction related administration functions. We use enhanced digital photography in our SCOPE Development Process and we supply high quality teams to define, schedule and manage projects from "cradle to grave" nationwide.

6TGE Industrial Services Inc is a business unit of TGE that provides specialty construction and electrical services, including new construction, maintenance, turnarounds, commissioning, skid/module construction, inspection services, troubleshooting, project management. Services for process industry include capital project construction, multi-year programs, maintenance services programs, calibration, commissioning and startup services. The support services include constructability reviews, cost estimating and budget development, project and construction management.

Fishbone Solutions, ~~LTD was acquired by the Company on February 3, 2012 and the name was changed to Fishbone Solutions,~~ Inc. ~~effective March 28, 2012.~~

~~Segment~~Fishbone ~~revenue~~Solutions, isInc. asprovides ~~follows~~project management services, experienced management personnel and systems to ensure repeatable performance in the following services: (program and project management, planning and scheduling, field design and drafting, P&ID updates, CAD work for fabrication, SCOPE Software for field planning, subcontract management, project management, project controls, material procurement and management, and construction related administration functions. We use enhanced digital photography in ~~$000’s)~~our SCOPE Development Process and we supply high quality teams to define, schedule and manage projects from "cradle to grave" nationwide.

~~Six months ended June 30, 2013:~~6

	International Plant Services			TGE Electrical & Instrumentation		Fishbone Solutions		Totals
Revenues		7,704			1,919		4,437		14,060
Net income (loss)		(1,267	)		478		543		(246	)
Total Assets		6,456			914		4,300		11,670

Fishbone Solutions, LTD was acquired by the Company on February 3, 2012 and the name was changed to Fishbone Solutions, Inc. effective March 28, 2012.

~~Total~~ Segment ~~assets~~revenue ~~after~~is ~~elimination~~as isfollows: (in $~~8,915~~000’s)

~~Six~~ Nine months ended ~~June~~September 30, ~~2012~~2013:

International Plant Services

TGE Industrial Services Inc.

~~TGE Electrical & Instrumentation~~

Fishbone Solutions

~~Fishbone Solutions~~

Totals

~~Totals~~

Revenues

1410,~~877~~844

3,011

~~348~~

6,396

~~2,105~~

20,251

~~17,330~~

Net income (loss)

(~~217~~2,279)

)

679

601

~~(50~~

(999)

~~(264~~

)

Total Assets

115,~~849~~922

1,212

4,389

~~2,233~~

11,523

~~14,085~~

Total assets after elimination is $118,~~071~~822

~~Three~~ Nine months ended ~~June~~September 30, ~~2013~~2012 (restated):

	International Plant Services			TGE Industrial Services Inc.	~~TGE Electrical & Instrumentation~~		Fishbone Solutions		~~Fishbone Solutions~~	Totals		~~Totals~~
Revenues		320,~~588~~706			1,175	~~935~~		3,529		~~2,241~~	25,410		~~6,764~~
Net income (loss)		(~~918~~861)	)		88	~~200~~		292		~~198~~	(481)		~~(520~~	)
Total Assets		8,227			32			2,919			11,178

~~Three~~ ~~months~~Total ~~ended~~assets ~~June~~after ~~30,~~elimination ~~2012:~~is $8,478

	International Plant Services			TGE Electrical & Instrumentation		Fishbone Solutions Services			Totals
Revenues		6,769			348		1,146			8,263
Net income (loss)		(354	)		40		(31	)		(345	)

Three months ended September 30, 2013:

	International Plant Services		TGE Industrial Services Inc		Fishbone Solutions		Totals
Revenues		3,140		1,092		1,959		6,191
Net income (loss)		(1,012)		201		58		(753)

~~Note~~ 9Three –months ~~Contingencies~~ended September 30, 2012 (restated):

Various legal actions, claims, and other contingencies arise in the normal course of our business. Contingencies are recorded in the consolidated financial statements, or are otherwise disclosed, in accordance with ASC 450-20, “Loss Contingencies”. Specific reserves are provided for loss contingencies to the extent we conclude that a loss is both probable and estimable. We use a case-by-case evaluation of the underlying data and update our evaluation as further information becomes known, and the known claims as of this date are as follows:

	International Plant Services		TGE Industrial Services Inc		Fishbone Solutions Services		Totals
Revenues		5,830		826		1,424		8,080
Net income (loss)		(644)		86		342		(216)

~~Civil Action 4:12-CV-00055; Renato Acain et al vs. International Plant Services LLC et al.~~7

~~International~~Note ~~Plant~~9 ~~Services,~~– LLC (IPS) is a subsidiary of the Company. IPS has been sued in a matter presently pending in United States District Court, Southern District of Texas, Houston Division by fifty-five (55) Filipino workers alleging violations of RICO and other fiduciary errors. The suit was initially instituted on May 27, 2011 and removed to U.S. District Court on January 6, 2012. The plaintiff is seeking relief in the form of unspecified monetary relief. The United States District Court remanded the ACAIN case to the 113th District Court on September 15, 2012. Subsequently, Judge Patricia J. Kerrigan, 113th District Court, State of Texas, dismissed the case. While the Company continues to believe this lawsuit is without merit, the ACAIN plaintiffs have the right to appeal this dismissal.Contingencies

~~Cause~~Various Nolegal actions, claims, and other contingencies arise in the normal course of our business. ~~2012-23084;~~Contingencies ~~Ardent~~are ~~Services~~recorded in the consolidated financial statements, ~~LLC~~or vsare otherwise disclosed, in accordance with ASC 450-20, “Loss Contingencies”. ~~David~~Specific Dreserves are provided for loss contingencies to the extent we conclude that a loss is both probable and estimable. ~~Mathews~~ We use a case-by-case evaluation of the underlying data and ~~Larry~~update J.our ~~Laqua.~~evaluation as further information becomes known, and the known claims as of this date are as follows:

~~The~~Civil ~~Company~~Action is providing the defense of its employees, Mr. Mathews (former President and CEO of the Company) and Mr. Laqua (Vice President of a Company business unit), in a matter involving their former employer, Ardent. Ardent is suing Mr. Mathews and Mr. Laqua in the 234th District Court, Harris County, Houston, Texas for breach of confidentiality and non4:12-~~solicitation~~CV-00055; ~~clauses~~Renato inAcain ~~certain~~et ~~employment~~al ~~agreements, along with other breaches of duties allegedly owed~~vs. ~~The~~ ~~Company~~International ~~intends~~Plant toServices ~~sponsor~~LLC ~~and~~et ~~fully assist in the defense of Mr~~al. Mathews and Mr. Laqua. On behalf of Mathews and Laqua, Company legal counsel has filed a motion to dismiss based on a forum selection clause in a subject agreement. The suit was initially instituted on April 20, 2012. The plaintiff is seeking relief in the form of injunctive and unspecified monetary relief. The Company intends to vigorously defend against these claims.

~~Cause~~ ~~No.~~International ~~4:13-cv-00505~~Plant Services, ~~Michael~~LLC ~~Rushing~~(IPS) is a subsidiary of the Company. IPS has been sued in a matter presently pending in United States District Court, ~~Stephanie~~Southern ~~Rushing~~District of Texas, ~~Penn~~ ~~Rushing~~Houston Division by fifty-five (55) Filipino workers alleging violations of RICO and ~~Florence~~other ~~Rushing~~fiduciary verrors. ~~Texas~~The ~~Gulf~~suit ~~Energy,~~was ~~Inc.~~initially instituted on ~~behalf~~May of27, CS2011 ~~Bankers~~and V,removed ~~LLC,~~to ~~Texas~~U.S. ~~Gulf~~District ~~Fabricators~~Court on January 6, ~~Inc~~2012., ~~David Mathews,~~The ~~Craig~~plaintiff ~~Crawford~~is ~~and~~seeking ~~Timothy~~relief ~~Connolly,~~in the form of unspecified monetary relief. The United States District Court ~~for~~remanded the ~~Southern~~ACAIN case to the 113th District Court on September 15, 2012. Subsequently, Judge Patricia J. Kerrigan, 113th District Court, State of Texas, dismissed the case. The plaintiffs have appealed the order dismissing the lawsuit to the Texas Intermediate Court of Appeals. The Company continues to believe this lawsuit is without merit.

~~The~~ Company had originally filed against the Rushings for a Declaratory Judgment alleging they had failed to perform relative to a letter of intent with Texas Gulf Fabricators, Inc., or alternatively, that the letter of intent was not enforceable. The Company also filed a conversion action against the Rushings for removing property from a fabrication facility. The Rushing Family filed two separate counterclaims in the underlying state court actions before removing both actions to federal court in March 2013. On April 13, 2013, the Federal Court denied jurisdiction and remanded the matter back to the Texas State Court in the proceedings known as: (i) Cause No. ~~2013~~2012-~~00543~~23084; ~~Texas~~Ardent ~~Gulf Energy~~Services, ~~Inc. on behalf of CS Bankers V,~~ LLC ~~and Texas Gulf Fabricators, Inc.~~ vs. ~~Penn~~David ~~Rushing,~~D. etMathews ~~al, in the 270th Judicial District Court of Harris County~~ and ~~(ii)~~Larry ~~Cause No~~J. ~~2013-004690; Texas Gulf Energy, Inc~~Laqua. vs. Penn Rushing, et al, in the 270th Judicial District Court of Harris County. The Rushings' allegations include fraudulent inducement, negligent misrepresentation, breach of fiduciary duty, conversion, equitable estoppel and securities violations.

~~These~~ ~~claims relate~~The Company has settled all matters related to athe ~~letter~~Company in the Ardent matter and will not continue providing the defense of ~~intent~~its employees, Mr. Mathews (former President and ~~foreclosure~~ ~~proceeding~~CEO onof the Company) and Mr. Laqua (Vice President of a ~~shop~~Company ~~property~~business unit), in ~~Baytown~~a matter involving their former employer, ~~Texas~~Ardent. ~~The~~ Ardent ~~Rushings~~is ~~have~~suing ~~not~~Mr. ~~disclosed~~Mathews anand ~~amount~~Mr. Laqua in the 234th District Court, Harris County, Houston, Texas for breach of ~~damages sought.~~confidentiality and non-solicitation clauses in certain employment agreements, along with other breaches of duties allegedly owed. The Company isintends ~~required~~ to ~~pay~~discontinue ~~for~~its sponsorship and no longer assist in the defense of Mr. Mathews, and Mr. ~~Crawford~~Laqua. The ~~and~~suit Mrwas initially instituted on April 20, 2012. ~~Connolly~~The plaintiff is seeking relief in the form of injunctive and unspecified monetary relief. On ~~August~~October 224, 2013 , the ~~270th~~Company ~~Judicial~~and ~~District~~the ~~Court~~plaintiff ofentered ~~Harris~~into ~~County,~~a ~~Texas~~Settlement ~~granted~~Agreement whereby the ~~Company’s~~plaintiff ~~motion~~released ~~for~~the ~~summary judgement,~~Company ~~and~~from ~~ruled~~all ~~the~~claims ~~foreclosure~~arising ~~was~~of ~~proper~~this lawsuit. In ~~The~~exchange therefore, the Company ~~believes~~agreed (i) to pay plaintiff the ~~Rushing's~~sum ~~claims~~of ~~are~~$10,000 ~~without~~for ~~merit~~attorneys fess and ~~intends~~ (ii) through December 31, 2014 to ~~pursue~~not ~~its~~directly ~~claims~~or indirectly solicit any electrical and ~~defenses~~instrumention ~~vigorously~~business from 11 facilities in the State of Texas.

~~Based~~ onCause ~~our~~No. ~~knowledge~~4:13-cv-00505, asMichael ofRushing, ~~the~~Stephanie ~~date of this filing~~Rushing, wePenn ~~believe that~~Rushing ~~any~~and ~~amounts~~Florence ~~exceeding~~Rushing ~~our~~v. ~~recorded~~Texas ~~accruals~~Gulf ~~should not materially affect our financial position~~Energy, ~~results of operations or liquidity~~Inc. Iton isbehalf ~~the opinion~~ of ~~management~~CS ~~that~~Bankers ~~the~~V, ~~eventual~~LLC, ~~resolution~~Texas ofGulf ~~the~~Fabricators, ~~above claims is unlikely to have a material adverse effect on our financial position or operating results~~Inc. ~~However~~, ~~the~~David ~~results~~Mathews, ofCraig ~~litigation~~Crawford ~~are inherently unpredictable~~ and ~~the possibility~~Timothy ~~exists~~Connolly, ~~that~~United ~~the~~States ~~ultimate~~District ~~resolution~~Court offor ~~one~~the orSouthern ~~more~~District of ~~these matters could result in a negative material effect on our financial position, results of operations or liquidity~~Texas.

~~Note~~ 10The Company originally filed against the Rushings for a Declaratory Judgment alleging the Rushings failed to perform relative to a letter of intent with Texas Gulf Fabricators, Inc., or alternatively, that the letter of intent was not enforceable. The Company also filed a conversion action against the Rushings for removing property from a fabrication facility. The Rushing Family filed two separate counterclaims in the underlying state court actions before removing both actions to federal court in March 2013. On April 13, 2013, the Federal Court denied jurisdiction and remanded the matter back to the Texas State Court in the proceedings known as: (i) Cause No. 2013-00543; ~~Related~~Texas ~~Party~~Gulf ~~Transactions~~Energy, Inc. on behalf of CS Bankers V, LLC and Texas Gulf Fabricators, Inc. vs. Penn Rushing, et al, in the 270 th Judicial District Court of Harris County and (ii) Cause No. 2013-004690; Texas Gulf Energy, Inc. vs. Penn Rushing, et al, in the 270 th Judicial District Court of Harris County. The Rushings' allegations include fraudulent inducement, negligent misrepresentation, breach of fiduciary duty, conversion, equitable estoppel and securities violations.

~~The~~ ~~Company's~~These ~~two~~claims relate ~~majority~~to ~~owners~~a asletter of ~~June~~intent ~~30,~~and ~~2013~~foreclosure ~~maintain~~ proceeding on a 74shop property in Baytown, Texas.8% The ~~voting~~Rushings ~~control~~have not disclosed an amount of ~~the~~damages ~~Company~~sought. The Company ~~utilizes~~is ~~corporations~~required ~~owned~~to bypay ~~such~~for ~~two~~the ~~majority~~defense ~~stockholders~~of ~~that~~Mr. ~~provide~~Mathews, ~~certain services~~Mr. toCrawford and Mr. Connolly. On August 2, 2013 the 270 th Judicial District Court of Harris County, Texas granted the Company’s ~~construction~~motion ~~services~~for ~~segment~~summary judgment, ~~which~~and ~~include~~ruled the ~~following:~~foreclosure was proper. The Company believes the Rushing's claims are without merit and intends to pursue its claims and defenses vigorously.

• ~~Testing~~Based •on ~~Recruiting~~our •knowledge ~~Mobilization~~as •of ~~Training~~the •date ~~Lodging~~of •this ~~Facilities~~filing, •we ~~Foreign~~believe ~~payroll~~that any amounts exceeding our recorded accruals should not materially affect our financial position, results of operations or liquidity. It is the opinion of management that the eventual resolution of the above claims is unlikely to have a material adverse effect on our financial position or operating results. However, the results of litigation are inherently unpredictable and the possibility exists that the ultimate resolution of one or more of these matters could result in a negative material effect on our financial position, results of operations or liquidity.

9 Note 10 – Related Party Transactions

~~Management~~The ~~believes~~Company's ~~that~~two ~~the~~majority ~~amounts~~owners ~~paid~~as ~~for~~of ~~these~~September ~~services are~~30, at2013 ormaintain ~~below~~a ~~those~~74.8% ~~rates~~voting ~~that~~control ~~would~~of bethe ~~payable~~Company. toThe ~~unrelated~~Company ~~third~~utilizes ~~parties~~corporations ~~and~~owned ~~that~~by ~~our~~such ~~shareholder~~two ~~interests~~majority ~~are~~stockholders ~~best~~that ~~served by~~provide ~~continuing~~certain services to ~~use~~the ~~these~~Company’s construction services ~~provided~~segment, bywhich ~~companies~~include ~~who~~the ~~are related parties.~~following:

~~Due~~• toTesting ~~related~~• ~~parties~~Recruiting ~~balance~~• isMobilization ~~$23,231~~• atTraining ~~June~~• ~~30,~~Lodging ~~2013~~• ~~for services~~Facilities ~~performed~~• byForeign ~~affiliates of the Company.~~payroll

The Company primarily utilizes a foreign corporation affiliated by common ownership for testing, recruiting, mobilization and training the foreign workforce for construction projects. TGE pays $1.40 per hour billed by these employees for all of these services.8

~~Note~~Management 11believes –that ~~Significant~~the ~~Customers~~amounts paid for these services are at or below those rates that would be payable to unrelated third parties and that our shareholder interests are best served by continuing to use these services provided by companies who are related parties.

~~During~~Due ~~the~~to ~~six~~related ~~months~~parties ~~ended~~balance ~~June~~is 30$36,747 ~~2013~~at ~~the~~September ~~Company derived a significant amount of revenue from four customers comprising of 14.18%~~30, ~~10.29%, 8.38%~~ 2013 and ~~8.14%~~$204,561 ~~compared~~at toDecember ~~four~~31, ~~customers~~2012; ~~during the~~respectively; for ~~six~~services ~~months~~performed ~~ended~~by ~~June~~affiliates ~~30, 2012 comprising~~ of ~~14.58%,~~the 13Company.~~6%, 13.10% and 9.03%.~~

~~Note~~The 12Company –primarily ~~Dispositions~~utilizes a foreign corporation affiliated by common ownership for testing, recruiting, mobilization and training the foreign workforce for construction projects. TGE pays $1.40 per hour billed by these employees for all of these services.

On Note ~~June~~11 ~~19,~~– ~~2013~~Significant the Company signed a letter of intent (LOI) to sell the assets of three of the Company's subsidiaries or divisions for $5,000,000, consisting of $3,000,000 in cash and approximately $2 million in assumed liabilities. The LOI was non-binding and subject to a July 31, 2013 deadline for completion of due diligence and the execution of definitive binding agreements between the parties. The LOI expired on July 31, 2013 and discussions continue with several potential acquirers.Customers

~~Note~~ 13During –the ~~Change~~nine inmonths ~~Management~~ended September 30, 2013 the Company derived a significant amount of revenue from one customer comprising of 18%, compared to three customers during the nine months ended September 30, 2012 comprising of 15%, 11% and 9%.

~~Effective~~ Note ~~June~~12 ~~20,~~– 2013, the Company entered into an agreement (the “Agreement”) with David Mathews pursuant to which the Company obtained the option to redeem Mr. Mathews’ Company issued capital stock in connection with Mr. Mathews’ resignation from his official positions and directorship with the Company to further his intention of working with the potential purchaser in continuing to lead these subsidiary companies. Pursuant to the Agreement, Mr. Mathews will continue to serve as president of the Company’s subsidiaries, Fishbone Solutions Inc. and TGE Industrial Services, Inc. As set forth in the Agreement, in the event that the Company does not consummate the transaction by July 31, 2013 or delay the transaction by mutual agreement, pursuant to which the purchase price consists of at least Five Million Dollars ($5,000,000) of which at least Three Million Dollars ($3,000,000) is a cash payment, the Company shall (a) have the option to purchase and redeem all of the shares of the Company’s capital stock held by Mr. Mathews by, (b) paying to Mr. Mathews a One Hundred Thousand Dollar ($100,000) cash payment (the “Cash Payment”) and executing and delivering a $900,000 promissory note in favor of Mr. Mathews, such promissory note having four percent (4%) interest, and to be satisfied in three (3) equal annual payments of Three Hundred Thousand Dollars ($300,000) commencing upon the one-year anniversary of the Cash Payment (the “Redemption”). The shares of capital stock subject to the redemption shall be delivered by Mr. Mathews in proportion to the payments received by him. Upon the payment of the Cash Payment to Mr. Mathews, he shall immediately be released from his non-compete obligations to the Company, and after sixty (60) days shall be released from his non-solicitation obligations to the Company.Dispositions

~~Note~~ 14On –June ~~Subsequent~~19, ~~Events~~2013 the Company signed a non-binding letter of intent (LOI) to sell the assets of three of the Company's subsidiaries or divisions for $5,000,000, consisting of $3,000,000 in cash and approximately $2 million in assumed liabilities. The LOI was non-binding and subject to a July 31, 2013 deadline for completion of due diligence and the execution of definitive binding agreements between the parties. The LOI expired on July 31, 2013 and discussions continue with several potential acquirers.

~~The~~ On September 20, 2013 the Company ~~issued~~signed 2a letter of intent with CornerPost Capital Partners to sell the assets of three of the Company’s subsidiaries or divisions for $5,~~965~~000,~~871~~000, ~~restricted~~consisting ~~shares~~of ~~for~~$3,000,000 ~~services during~~in ~~July~~cash ~~2013~~and approximately $2 million in assumed liabilities. It ~~The~~is ~~shares~~management’s ~~were~~opinion ~~valued~~that atthe ~~current~~process ~~market~~of ~~price.~~selling ~~Market~~these ~~price~~assets ~~was~~is ~~established~~proceeding as ~~$0.06~~planned ~~per~~and ~~share~~that the transaction will be finalized in the fourth quarter of 2013.

10Note 13 – Change in Management

~~Item~~Effective 2June 20, 2013, the Company entered into an agreement (the “ Agreement ”) with David Mathews pursuant to which the Company obtained the option to redeem Mr. ~~Management~~Mathews’ Company issued capital stock in connection with Mr. Mathews’ resignation from his official positions and directorship with the Company to further his intention of working with the potential purchaser in continuing to lead these subsidiary companies. Pursuant to the Agreement, Mr. Mathews will continue to serve as CEO of one of the Company’s ~~Discussion~~subsidiaries, TGE Industrial Services, Inc. As set forth in the Agreement, in the event that the Company does not consummate the transaction by July 31, 2013 or delay the transaction by mutual agreement, pursuant to which the purchase price consists of at least Five Million Dollars ($5,000,000) of which at least Three Million Dollars ($3,000,000) is a cash payment, the Company shall (a) have the option to purchase and ~~Analysis~~redeem all of ~~Financial~~the ~~Condition~~shares of the Company’s capital stock held by Mr. Mathews by, (b) paying to Mr. Mathews a One Hundred Thousand Dollar ($100,000) cash payment (the “ Cash Payment ”) and ~~Results~~executing and delivering a $900,000 promissory note in favor of ~~Operations~~Mr. Mathews, such promissory note having four percent (4%) interest, and to be satisfied in three (3) equal annual payments of Three Hundred Thousand Dollars ($300,000) commencing upon the one-year anniversary of the Cash Payment (the “ Redemption ”). The shares of capital stock subject to the redemption shall be delivered by Mr. Mathews in proportion to the payments received by him. Upon the payment of the Cash Payment to Mr. Mathews, he shall immediately be released from his non-compete obligations to the Company, and after sixty (60) days shall be released from his non-solicitation obligations to the Company. The Company and Mr. Mathews have agreed to extend the Company's option on a monty-to-month basis.

~~CRITICAL~~ Note ~~ACCOUNTING~~14 ~~ESTIMATES~~– Subsequent Events

~~There~~ ~~has~~Subsequent ~~been~~to nonine ~~material~~months ~~changes~~ended inSeptember ~~our critical~~30, ~~accounting~~2013 ~~policies from those reported in our fiscal 2012 Annual Report on Form 10-K/A filed with~~ the ~~SEC.~~Company ~~For~~issued ~~more information on our critical accounting policies~~691,050 ~~see~~restricted ~~Part II, Item~~shares 7per vesting of ~~our~~the ~~fiscal~~restricted ~~2012~~shares ~~Annual~~(See ~~Report~~Note on6) ~~Form~~and $870,723 ~~10-K/A.~~stock ~~The~~compensation ~~following~~expense ~~section provides~~remains ~~certain information with respect~~ to ~~our~~be ~~critical accounting estimates as of the close of our most recent quarterly period~~recognized.

~~RESULTS OF OPERATIONS~~9

~~Six~~Item ~~Months~~2. ~~Ended~~Management’s ~~June~~Discussion ~~30,~~and ~~2013~~Analysis ~~Compared~~of toFinancial ~~the~~Condition ~~Six~~and ~~Months Ended~~Results ~~June~~of ~~30, 2012~~Operations

~~Consolidated~~ CRITICAL ACCOUNTING ESTIMATES

~~Our~~There ~~consolidated~~has ~~revenues~~been ~~were~~no ~~$14.1~~material ~~million for~~changes ~~the~~in ~~six~~our ~~months~~critical ~~ended~~accounting ~~June 30,~~policies ~~2013~~from athose ~~decrease~~reported ofin ~~$3.2~~our ~~million,~~fiscal or2012 ~~18%,~~Annual ~~from~~Report ~~consolidated~~on ~~revenues~~Form of10-K/A ~~$17.3~~filed ~~million~~with in the ~~same~~SEC. ~~period~~For inmore ~~the~~information ~~prior~~on our critical accounting policies, see Part II, Item 7 of our fiscal ~~year.~~2012 ~~The~~Annual ~~decrease~~Report inon ~~consolidated~~Form ~~revenues~~10-K/A. ~~was~~The afollowing ~~result~~section ofprovides acertain ~~decrease~~information inwith ~~headcount~~respect atto ~~International Plant~~our ~~Services,~~critical ~~L.L.C.~~accounting ~~resulting~~estimates ~~from~~as of the ~~unavailability~~close of ~~guest~~our ~~worker~~most ~~visas~~recent quarterly period.

~~Consolidated~~RESULTS ~~net~~OF loss decreased from $264,250 in the six months ended June 30, 2012 to $245,768 in the six months ended June 30, 2013. The decrease of $18,482 was primarily due to decreased general and administrative expenses. Gross profit decreased to 21.7% in the six months ended June 30, 2013 from 24% in the same period a year earlier.OPERATIONS

~~Our~~Nine ~~consolidated selling,~~Months ~~general~~Ended &September ~~administrative (“SG&A”) expenses were $3.4 million in the six months ended June~~ 30, 2013 ~~compared~~Compared to ~~$4.5 million in~~ the ~~same~~Nine ~~period~~Months aEnded ~~year~~September earlier. The decrease of $1.1 million, or 24.4%, was primarily related to lower operating costs due to a reduction in additional finance and legal expenses related to becoming a fully reporting public company, acquisitions, decreased business volumes and strategic initiatives. SG&A expenses in the six months ended June 30, ~~2013 included $373,170 in non-cash compensation compared to $427,167 in the same period of~~ 2012. SG&A expense as a percentage of revenue decreased to 24.3% in the six months ended June 30, 2013 compared to 25.9% in the same period in the prior fiscal year. We expect SG&A as a percent of revenue in future quarters to drop as new business units bring on projects and associated revenues in accordance with our 2013 plan.

~~The~~ ~~effective tax rate was a benefit of 34% for the six months ended June 30, 2013 and was a benefit of 34% in the same period in 2012.~~Consolidated

~~Three~~Our ~~Months~~consolidated ~~Ended~~revenues ~~June~~were approximately $20.3 million for the nine months ended September 30, 2013 ~~Compared~~a todecrease of $5.1 million, or 20%, from consolidated revenues of $25.4 million in the ~~Three~~same ~~Months Ended~~period ~~June~~in 30the prior fiscal year. The decrease in consolidated revenues was a result of a decrease in headcount at International Plant Services, ~~2012~~L.L.C. resulting from the unavailability of guest worker visas.

Consolidated net loss increased from approximately $481,000 in the nine months ended September 30, 2012 to $999,000 in the nine months ended September 30, 2013. The increase of $518,000 was primarily due to the decrease in revenue at IPS and increased interest expense and tax expenses. Gross profit decreased to $4.4 million or 21.7% in the nine months ended September 30, 2013 from $5.7 million or 22.4% in the same period a year earlier.

Our consolidated ~~revenues~~ selling, general & administrative (“SG&A”) expenses were approximately $65.85 million ~~for~~in the ~~three~~nine months ended ~~June~~ September 30, 2013, compared to $6.7 million in the same period a year earlier. The decrease of $1.52 million, or 18%, ~~from~~was ~~consolidated revenues~~primarily ofrelated ~~$8.3~~to ~~million~~lower operating costs due to a reduction in ~~the~~additional ~~same~~finance ~~period~~and legal expenses related to acquisitions, decreased business volumes and strategic initiatives. SG&A expenses in the ~~prior~~nine ~~fiscal~~months ~~year.~~ended ~~The~~September ~~decrease~~30, 2013 included $559,755 in ~~consolidated~~non-cash ~~revenues~~compensation ~~was~~compared to $900,751 in the same period of 2012. SG&A expense as a ~~result~~percentage of ~~decreased headcount~~revenue increased at27% ~~International~~in ~~Plant~~the ~~Services~~nine months ended September 30, ~~L.L.C.~~2013 ~~resulting~~compared ~~from~~to 26.4% in the ~~unavailability~~same ofperiod ~~guest~~in ~~worker~~the ~~visas~~prior fiscal year.

~~Consolidated~~The ~~gross~~effective ~~profit~~tax ~~decreased~~rate ~~from $2.2~~of ~~million~~17% infor the ~~three~~nine months ended ~~June 30,~~September ~~2012 to $1.3 million in the three months ended June~~ 30, 2013. ~~The~~and ~~decrease of $0.9 million, or 41%,~~ was ~~primarily~~a ~~due~~benefit toof ~~lower gross margins on individual projects. Gross margins decreased to 18.6~~29% in the ~~three~~ ~~months ended June 30, 2013 from 26.6% in the~~ same period ~~a year earlier. The gross margin decreased due to the loss of guest worker visas at IPS and a decline~~ in ~~industrial services projects and reduced rates and utilization~~2012.

~~Consolidated SG&A~~Three ~~expenses~~Months ~~were~~Ended ~~$2.0~~September ~~million in the three months ended June~~ 30, 2013 ~~compared~~Compared to ~~$2.6 million in~~ the ~~same~~Three ~~period~~Months aEnded ~~year~~September earlier. The decrease of $.6 million, or 23%, was primarily related to lower operating costs in the second quarter of fiscal 2013 due to lower finance and legal expenses. SG&A expenses in the three months ended June 30, 2013 included $186,585 in non-cash compensation compared to $213,584 in the same quarter in the prior year. Additionally, non-cash expenses of $49,140 were realized as part of our continuing review of past and current accounting practices. SG&A expense as a percentage of revenue decreased to 29.4% in the three months ended June 30, 2013 compared to 31% in the same period in the prior fiscal year. 2012

~~The~~ ~~effective tax rate was a benefit of 34% for the three months ended June 30, 2013 and was an expense of 34% in the same period in 2012.~~Consolidated

~~Non-GAAP~~Our ~~Financial~~consolidated ~~Measure~~revenues were approximately $6.2 million for the three months ended September 30, 2013 a decrease of $1.9 million, or 23%, from consolidated revenues of $8.1 million in the same period in the prior fiscal year. The decrease in consolidated revenues was a result of decreased headcount at International Plant Services, L.L.C. resulting from the unavailability of guest worker visas.

~~EBITDA~~ isConsolidated agross ~~supplemental,~~profit ~~non-GAAP~~decreased ~~financial measure.~~from ~~EBITDA~~approximately ~~is defined as earnings before interest expense, income taxes, depreciation and amortization~~$1.5 Wemillion ~~have~~in ~~presented EBITDA because it is used by~~ the ~~financial~~three ~~community~~months asended aSeptember ~~method~~30, of2012 ~~measuring our performance and of evaluating the market value of companies considered~~ to ~~be in similar businesses~~$1.4 Wemillion ~~believe~~in ~~that~~ the ~~line~~three ~~item~~months onended ~~our~~September ~~Consolidated~~30, ~~Statements of Income entitled “Net income” is the most directly comparable GAAP measure to EBITDA~~2013. ~~Since~~The ~~EBITDA~~decrease ~~is not a measure~~ of ~~performance calculated in accordance with GAAP~~$100, ~~it should not be considered in isolation of~~000, or ~~as a substitute for~~7%, ~~net~~was ~~earnings~~primarily asdue anto ~~indicator~~lower ofoverall ~~operating performance~~revenue. ~~EBITDA,~~Gross asmargins weincreased ~~calculate~~to ~~it,~~23% ~~may~~in ~~not~~the bethree ~~comparable~~months toended ~~similarly~~September ~~titled~~30, ~~measures~~2013 ~~employed~~from ~~by other companies~~18.5% Inin ~~addition, this~~the ~~measure~~same isperiod ~~not necessarily~~ a ~~measure~~year ~~of our ability to fund our cash needs~~earlier. AsThe ~~EBITDA~~gross ~~excludes~~margin ~~certain~~increased ~~financial~~due ~~information compared~~to ~~with net income,~~ the ~~most~~quality ~~directly comparable GAAP financial measure, users~~ of ~~this~~projects ~~financial~~in ~~information~~industrial ~~should~~services ~~consider the type of events~~ and ~~transactions~~increased ~~that are excluded~~utilization. ~~Our non-GAAP performance measure, EBITDA, has certain material limitations as follows:~~

• ItConsolidated ~~does~~SG&A ~~not~~expenses ~~include~~were ~~interest~~approximately ~~expense~~$2.1 ~~Because~~million wein ~~have~~the ~~borrowed~~three ~~money~~months ended September 30, 2013 compared to ~~finance~~$2.2 ~~our~~million ~~operations,~~in ~~pay~~the ~~commitment~~same ~~fees~~period toa ~~maintain~~year ~~our~~earlier. ~~credit~~The ~~facility~~decrease of $100,000, ~~and~~or ~~incur~~5%, ~~fees~~was primarily related to ~~issue~~lower ~~letters~~operating costs in the third quarter of ~~credit~~fiscal ~~under~~2013 due to lower finance and legal expenses. SG&A expenses in the ~~credit~~three ~~facility,~~months ~~interest~~ended ~~expense~~September is30, a2013 ~~necessary~~included ~~and~~$186,585 ~~ongoing~~in ~~part~~non-cash ofcompensation ~~our~~compared ~~costs~~to ~~and~~$213,584 ~~has~~in ~~assisted~~the ussame quarter in ~~generating~~the prior year. SG&A expense as a percentage of revenue increased to 33.9% ~~Therefore~~in the three months ended September 30, ~~any~~2013 ~~measure~~compared ~~that~~to ~~excludes~~27% ~~interest~~in ~~expense~~the ~~has~~same ~~material~~period ~~limitations~~in the prior fiscal year.

•The Iteffective ~~does~~tax ~~not~~rate ~~include~~was ~~income~~a ~~taxes~~benefit of 6.5% ~~Because~~for the ~~payment~~three ofmonths ~~income~~ended ~~taxes~~September is30, a2013 ~~necessary~~ and ~~ongoing~~was ~~part~~an expense of ~~our~~22% ~~operations,~~in ~~any~~the ~~measure~~same ~~that~~period ~~excludes~~in ~~income taxes has material limitations~~2012.

11Non-GAAP Financial Measure

•EBITDA Itis ~~does~~a ~~not~~supplemental, ~~include~~non-GAAP ~~depreciation~~financial ormeasure. ~~amortization~~EBITDA is defined as earnings before interest expense, income taxes, depreciation and amortization. ~~Because~~We wehave ~~use~~presented ~~capital~~EBITDA because it is used by the financial community as a method of measuring our performance and ~~intangible~~of ~~assets~~evaluating the market value of companies considered to ~~generate~~be ~~revenue,~~in ~~depreciation~~similar ~~and~~businesses. ~~amortization~~We ~~expense~~believe that the line item on our Consolidated Statements of Income entitled “Net income” is the most directly comparable GAAP measure to EBITDA. Since EBITDA is not a ~~necessary~~measure ~~element~~of performance calculated in accordance with GAAP, it should not be considered in isolation of, or as a substitute for, net earnings as an indicator of operating performance. EBITDA, as we calculate it, may not be comparable to similarly titled measures employed by other companies. In addition, this measure is not necessarily a measure of our ~~cost~~ability ~~structure~~to fund our cash needs. ~~Therefore~~As EBITDA excludes certain financial information compared with net income, ~~any~~the most directly comparable GAAP financial measure, users of this financial information should consider the type of events and transactions that ~~excludes~~are ~~depreciation~~excluded. orOur ~~amortization~~non-GAAP ~~expense~~performance measure, EBITDA, has certain material limitations. as follows:

A• ~~reconciliation~~It ofdoes ~~EBITDA~~not include interest expense. Because we have borrowed money to ~~net~~finance ~~income~~our ~~follows:~~operations, (pay commitment fees to maintain our credit facility, and incur fees to issue letters of credit under the credit facility, interest expense is a necessary and ongoing part of our costs and has assisted us in ~~000’s)~~generating revenue. Therefore, any measure that excludes interest expense has material limitations. • It does not include income taxes. Because the payment of income taxes is a necessary and ongoing part of our operations, any measure that excludes income taxes has material limitations.

	Six Months Ended
	June 30, 2013			June 30, 2012
Net income (loss)	$	(246	)	$	(264	)
Interest expense		165			72
Income tax expense(benefit)		(152	)		(140	)
Depreciation and amortization		321			220
EBITDA	$	88		$	(112	)

	10

~~FINANCIAL~~• ~~CONDITION~~It ~~AND~~does ~~LIQUIDITY~~not include depreciation or amortization expense. Because we use capital and intangible assets to generate revenue, depreciation and amortization expense is a necessary element of our cost structure. Therefore, any measure that excludes depreciation or amortization expense has material limitations.

~~Overview~~ A reconciliation of EBITDA to net income follows: (in 000’s)

We define liquidity as the ongoing ability to pay our liabilities as they become due, fund business operations and meet all monetary contractual obligations. Our primary sources of liquidity for the six months ended June 30, 2013 was cash generated from operations, cash on hand at the beginning of the quarter and our accounts receivable line of credit. Cash on hand at June 30, 2013 totaled $373,530. We expect to fund our operations for the next twelve months through the use of cash generated from operations and existing cash balances. However, there can be no assurance that we will achieve our forecasted cash flow, which could result in borrowings under our credit facility.

	Nine Months Ended
	September 30, 2013		September 30, 2012
				(restated)
Net loss	$	(999)	$	(481)
Interest expense		245		89
Income tax benefit		(205)		(201)
Depreciation and amortization		483		377
EBITDA	$	(476)	$	(216)

~~Factors~~ ~~that~~FINANCIAL ~~routinely~~CONDITION ~~impact~~AND ~~our short-term liquidity and that may impact our long-term liquidity include, but are not limited to:~~LIQUIDITY

• ~~Changes in working capital~~Overview

•We ~~Contract~~define ~~terms~~liquidity ~~that~~as ~~determine~~the ongoing ability to pay our liabilities as they become due, fund business operations and meet all monetary contractual obligations. Our primary sources of liquidity for the ~~timing~~nine months ended September 30, 2013 was cash generated from operations, cash on hand at the beginning of ~~billings~~the quarter and our accounts receivable line of credit. Cash on hand at September 30, 2013 totaled $483,807. We expect to ~~customers~~fund ~~and~~our operations for the ~~collection~~next twelve months through the use of ~~those~~cash ~~billings~~generated from operations and existing cash balances. However, there can be no assurance that we will achieve our forecasted cash flow.

•Factors ~~Some~~that ~~cost~~routinely ~~plus~~impact ~~and~~our ~~fixed~~short-term ~~price~~liquidity ~~customer~~and ~~contracts~~that ~~are billed based on milestones which~~ may ~~require~~impact usour tolong-term ~~incur~~liquidity ~~significant~~include, ~~expenditures~~but ~~prior~~are tonot ~~collections~~limited ~~from our customers.~~to:

• ~~Time~~Changes ~~and~~in ~~material~~working ~~contracts~~capital ~~are~~• ~~normally~~Contract ~~billed~~terms inthat ~~arrears.~~determine ~~Therefore,~~the wetiming ~~are~~of ~~routinely~~billings ~~required~~ to ~~carry~~customers ~~these~~and ~~costs~~the ~~until~~collection ~~they~~of ~~can~~those ~~be billed and collected.~~billings

• Some cost plus and fixed price customer contracts are billed based on milestones which may require us to incur significant expenditures prior to collections from our customers. • Time and material contracts are normally billed in arrears. Therefore, we are routinely required to carry these costs until they can be billed and collected. • Some of our large construction projects may require significant retentions or security in the form of letters of credit.

•

Capital expenditures

Other factors that may impact both short and long-term liquidity include:

· Acquisitions of new businesses · Inability to obtain guest worker visas for skilled craftsmen · Strategic investments in new operations · Contract disputes or collection issues

~~· Inability to obtain guest worker visas for skilled craftsmen~~11

· ~~Strategic~~Dividend ~~investments in new operations~~Policy

·We ~~Contract~~have ~~disputes~~not declared any dividends on our Common Stock since our inception. Any future dividend payments will depend on our financial condition, capital requirements and earnings as well as other factors the Company’s board of directors (the “Board”) may deem relevant. There are no dividend restrictions that limit our ability to pay dividends on our Common Stock in our Articles of Incorporation or ~~collection~~Bylaws. ~~issues~~Our governing statute, Chapter 78 of the Nevada Revised Statutes (the “NRS ”), does provide limitations on our ability to declare dividends. Section 78.288 of the NRS prohibits us from declaring dividends where, after giving effect to the distribution of the dividend:

12(a) we would not be able to pay our debts as they become due in the usual course of business; or

~~Dividend~~(b) ~~Policy~~our total assets would be less than the sum of our total liabilities plus the amount that would be needed, if we were to be dissolved at the time of distribution, to satisfy the preferential rights upon dissolution of stockholders who may have preferential rights and whose preferential rights are superior to those receiving the distribution (except as otherwise specifically allowed by our Articles of Incorporation).

We have not declared any dividends on our Common Stock since our inception. Any future dividend payments will depend on our financial condition, capital requirements and earnings as well as other factors the Company’s board of directors (the “Board”) may deem relevant. There are no dividend restrictions that limit our ability to pay dividends on our Common Stock in our Articles of Incorporation or Bylaws. Our governing statute, Chapter 78 of the Nevada Revised Statutes (the “NRS”), does provide limitations on our ability to declare dividends. Section 78.288 of the NRS prohibits us from declaring dividends where, after giving effect to the distribution of the dividend:Outlook

~~(a)~~We have seen what we ~~would~~consider ~~not~~to be ~~able~~ a strong recovery in the underlying business environment in which the Company operates. We continue to ~~pay~~see ~~our~~signs ~~debts~~of recovery and growth and plan to capitalize on opportunities that are presented by the market as ~~they~~it ~~become~~recovers ~~due~~further in the ~~usual~~coming ~~course~~months ofand ~~business;~~years. orThere is a significant increased bidding activity domestically and internationally that we believe will bring additional revenue opportunities to the Company.

~~(b)~~FORWARD-LOOKING our total assets would be less than the sum of our total liabilities plus the amount that would be needed, if we were to be dissolved at the time of distribution, to satisfy the preferential rights upon dissolution of stockholders who may have preferential rights and whose preferential rights are superior to those receiving the distribution (except as otherwise specifically allowed by our Articles of Incorporation).STATEMENTS

~~Outlook~~This Form 10-Q includes “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. All statements, other than statements of historical facts, included in this Form 10-Q which address activities, events or developments which we expect, believe or anticipate will or may occur in the future are forward-looking statements. The words “believes,” “intends,” “expects,” “anticipates,” “projects,” “estimates,” “predicts” and similar expressions are also intended to identify forward-looking statements.

WeThese ~~have~~forward-looking ~~seen~~statements ~~what~~include, weamong ~~consider~~others, tosuch bethings a strong recovery in the underlying business environment in which the Company operates. We continue to see signs of recovery and growth and plan to capitalize on opportunities that are presented by the market as it recovers further in the coming months and years. There is a significant increased bidding activity domestically and internationally that we believe will bring additional revenue opportunities to the Company.:

~~FORWARD~~• amounts and nature of future revenues and margins from our Construction Services and Fishbone Solutions segments; • the likely impact of new or existing regulations or market forces on the demand for our services; • expansion and other development trends of the industries we serve; • our ability to generate sufficient cash from operations or to raise cash in order to meet our short and long-~~LOOKING~~term ~~STATEMENTS~~capital requirements; and

~~This~~These ~~Form~~statements ~~10-Q~~are ~~includes~~based ~~“forward-looking statements”~~on ~~within~~certain ~~the~~assumptions ~~meaning~~and ofanalyses ~~Section 27A~~we ofmade ~~the~~in ~~Securities~~light ~~Act~~ of ~~1933,~~our asexperience ~~amended,~~ and ~~Section 21E~~our ofperception ~~the Securities Exchange Act~~ of ~~1934~~historical trends, ascurrent ~~amended.~~conditions ~~All~~and ~~statements,~~expected ~~other~~future ~~than~~developments ~~statements~~as ofwell ~~historical~~as ~~facts,~~other ~~included~~factors inwe ~~this~~believe ~~Form~~are ~~10-Q which~~appropriate. ~~address activities~~However, ~~events~~whether oractual ~~developments~~results ~~which~~and wedevelopments ~~expect, believe or anticipate~~ will orconform ~~may~~to ~~occur~~our inexpectations ~~the~~and ~~future~~predictions ~~are~~is ~~forward-looking statements.~~subject ~~The~~to ~~words~~a ~~“believes,”~~number ~~“intends,”~~of ~~“expects,”~~risks ~~“anticipates,”~~and ~~“projects,” “estimates,”~~uncertainties ~~“predicts”~~which ~~and~~could ~~similar~~cause ~~expressions~~actual ~~are~~results ~~also~~to ~~intended~~differ tomaterially ~~identify~~from ~~forward-looking~~our ~~statements.~~expectations, including:

~~These~~• ~~forward~~the risk factors discussed in our Form 10-~~looking~~K ~~statements~~for ~~include~~the fiscal year ended December and listed from time to time in our filings with the Securities and Exchange Commission; • the inherently uncertain outcome of current and future litigation; • the adequacy of our reserves for contingencies; • economic, ~~among~~ ~~others~~market or business conditions in general and in the oil, ~~such~~gas ~~things~~and ~~as:~~power industries in particular; • changes in laws or regulations; and • other factors, many of which are beyond our control.

~~• amounts and nature of future revenues and margins from our Construction Services and Fishbone Solutions segments;~~12

•Consequently, all of the ~~likely~~forward-looking ~~impact~~statements ofmade ~~new~~in this Form 10-Q are qualified by these cautionary statements and there can be no assurance that the actual results or ~~existing~~developments ~~regulations~~anticipated by us will be realized or, ~~market~~even ~~forces~~if onsubstantially realized, that they will have the ~~demand~~expected ~~for~~consequences to or effects on us or our ~~services;~~business operations. We assume no obligation to update publicly, except as required by law, any such forward-looking statements, whether as a result of new information, future events or otherwise.

•Item ~~expansion~~3. Quantitative and ~~other~~Qualitative ~~development~~Disclosures ~~trends~~about ofMarket ~~the industries we serve;~~Risk

•We ~~our~~are ~~ability~~a to“smaller ~~generate~~reporting ~~sufficient~~company” ~~cash~~as ~~from~~defined ~~operations~~by orRule to12b-2 ~~raise~~of ~~cash~~the inExchange ~~order~~Act toand ~~meet~~are ~~our~~not ~~short~~required ~~and~~to ~~long-term~~provide ~~capital~~information ~~requirements;~~under ~~and~~this item.

~~These~~Item statements are based on certain assumptions and analyses we made in light of our experience and our perception of historical trends, current conditions and expected future developments as well as other factors we believe are appropriate4. ~~However,~~Controls ~~whether actual results~~ and ~~developments will conform to our expectations and predictions is subject to a number of risks and uncertainties which could cause actual results to differ materially from our expectations, including:~~Procedures

•Evaluation ~~the~~of ~~risk~~Disclosure ~~factors~~Controls ~~discussed in our Form 10-K for the fiscal year ended December~~ and ~~listed from time to time in our filings with the Securities and Exchange Commission;~~Procedures

•We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our Securities Exchange Act reports is recorded, processed, summarized and reported within the ~~inherently~~time ~~uncertain~~periods ~~outcome~~specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure based on the definition of ~~current~~“disclosure controls and ~~future~~procedures” ~~litigation;~~in Rule 13a-15(e).

•The disclosure controls and procedures are designed to provide reasonable, not absolute, assurance of achieving the ~~adequacy~~desired control objectives. The Company’s management, including the Chief Executive Officer and Chief Financial Officer, does not expect that the disclosure controls and procedures or our internal controls over financial reporting will prevent or detect all errors or fraud. The design of our ~~reserves~~internal ~~for~~control ~~contingencies;~~system takes into account the fact that there are resource constraints and the benefits of controls must be weighed against the costs. Additionally, controls can be circumvented by the acts of key individuals, collusion or management override.

•We ~~economic~~carried out an evaluation, ~~market~~under orthe ~~business~~supervision ~~conditions~~and inwith ~~general~~the participation of our management, including our Chief Executive Officer and inChief Financial Officer, of the ~~oil~~effectiveness of the design and operation of our disclosure controls and procedures as of September 30, ~~gas~~2013. We determined that our disclosure controls and ~~power~~procedures ~~industries~~were ineffective ~~particular;~~as of September 30, 2013.

•Changes ~~changes~~ in ~~laws~~Internal orControl ~~regulations;~~Over ~~and~~Financial Reporting

•We ~~other~~did ~~factors~~effect changes in our internal controls over financial reporting during the period covered by this report that materially affected, ~~many~~or ofthat ~~which~~would ~~are~~reasonably ~~beyond~~be likely to affect materially, our internal control over financial reporting. There have been changes made in our internal controls and financial reporting that have materially affected or are reasonably likely to materially affect our internal controls over financial reporting subsequent to the quarter ended September 30, 2013, that effect our report for such period. Material weaknesses in our internal controls were identified by the Company’s management, and reported to the Board of Directors and auditors in May, 2013. These material weaknesses were primarily related to errors in accounting as the Company changed accounting systems in June of 2012, which resulted in a number of accounting entries that were not properly reversed in the quarter ended September 30, 2012. Additionally, there were related balance sheet accounts that were not checked and verified. The Company has implemented new processes regarding the reconciliation, review and reporting of the accounts on a monthly basis and assigned new qualified personnel to operate the Company’s new accounting system to prevent these accounting errors from re-occurring, but there can be no assurance that every error will be detected. Management has taken steps which it believes will ensure, to the extent reasonably possible, that this type of error will not occur in the future.

	13

~~Consequently,~~PART all of the forward-looking statements made in this Form 10-Q are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to or effects on us or our business operations. We assume no obligation to update publicly, except as required by law, any such forward-looking statements, whether as a result of new information, future events or otherwise.II

~~Item~~OTHER ~~3. Quantitative and Qualitative Disclosures about Market Risk~~INFORMATION

~~We are~~Item a1. ~~“smaller~~Legal ~~reporting company” as defined by Rule 12b-2 of the Exchange Act and are not required to provide information under this item.~~Proceedings

~~Item~~ 4Various legal actions, claims, and other contingencies arise in the normal course of our business. ~~Controls~~Contingencies are recorded in the consolidated financial statements, or are otherwise disclosed, in accordance with ASC 450-20, “Loss Contingencies”. Specific reserves are provided for loss contingencies to the extent we conclude that a loss is both probable and ~~Procedures~~estimable. We use a case-by-case evaluation of the underlying data and update our evaluation as further information becomes known, and the known claim that had activity during the period covered by this report is as follows:

~~Evaluation~~ Civil ofAction ~~Disclosure Controls~~4:12-CV-00055; ~~and~~Renato ~~Procedures~~Acain et al vs. International Plant Services LLC et al.

We ~~maintain~~International ~~disclosure~~Plant ~~controls~~Services, ~~and~~LLC ~~procedures that~~(IPS) ~~are~~is ~~designed~~a tosubsidiary ~~ensure~~of ~~that~~the ~~information~~Company. ~~required~~IPS tohas bebeen ~~disclosed~~sued in ~~our~~a ~~Securities~~matter ~~Exchange~~presently ~~Act~~pending ~~reports~~in isUnited ~~recorded~~States District Court, ~~processed~~Southern District of Texas, ~~summarized~~ ~~and~~Houston ~~reported~~Division ~~within~~by ~~the~~fifty-five ~~time~~(55) ~~periods~~Filipino ~~specified~~workers inalleging ~~the~~violations ~~SEC’s~~of ~~rules~~RICO and ~~forms~~other fiduciary errors. The suit was initially instituted on May 27, 2011 and ~~that~~removed ~~such~~to ~~information~~U.S. District Court on January 6, 2012. The plaintiff is ~~accumulated and~~seeking ~~communicated~~relief in the form of unspecified monetary relief. The United States District Court remanded the ACAIN case to ~~our~~the ~~management~~113th District Court on September 15, ~~including~~2012. ~~our~~Subsequently, ~~Chief~~Judge ~~Executive~~Patricia ~~Officer~~J. ~~and~~Kerrigan, ~~Chief~~113th ~~Financial~~District ~~Officer~~Court, asState ~~appropriate~~of Texas, todismissed ~~allow timely~~the ~~decisions~~case. ~~regarding~~The ~~required~~plaintiffs ~~disclosure~~have ~~based~~appealed onthe order dismissing the ~~definition~~lawsuit to the Texas Intermediate Court of ~~“disclosure~~Appeals. Tthe ~~controls~~Company ~~and~~continues ~~procedures”~~to inbelieve ~~Rule 13a-15(e)~~this lawsuit is without merit.

~~The~~ Cause ~~disclosure~~No. ~~controls~~2012-23084; ~~and~~Ardent ~~procedures are designed to provide reasonable~~Services, ~~not~~LLC ~~absolute, assurance of achieving the desired control objectives~~vs. ~~The~~David Company’s management, including the Chief Executive Officer and Chief Financial Officer, does not expect that the disclosure controls and procedures or our internal controls over financial reporting will prevent or detect all errors or fraudD. ~~The~~Mathews ~~design of our internal control system takes into account the fact that there are resource constraints~~ and ~~the~~Larry ~~benefits of controls must be weighed against the costs~~J. ~~Additionally, controls can be circumvented by the acts of key individuals, collusion or management override~~Laqua.

We ~~carried~~The ~~out~~Company anhas ~~evaluation,~~settled ~~under~~all matters related to the ~~supervision~~ Company in the Ardent matter and ~~with~~will not continue providing the ~~participation~~defense of ~~our~~its ~~management~~employees, ~~including~~Mr. ~~our~~Mathews ~~Chief~~(former ~~Executive~~President ~~Officer~~and CEO of the Company) and ~~Chief~~Mr. ~~Financial~~Laqua ~~Officer,~~(Vice President of ~~the~~ ~~effectiveness~~a ofCompany business unit), in a matter involving their former employer, Ardent. Ardent is suing Mr. Mathews and Mr. Laqua in the ~~design~~234th District Court, Harris County, Houston, Texas for breach of confidentiality and ~~operation~~non-solicitation clauses in certain employment agreements, along with other breaches of ~~our~~duties ~~disclosure~~allegedly ~~controls~~owed. The Company intends to discontinue its sponsorship and ~~procedures~~no aslonger assist in the defense of ~~June~~Mr. 30Mathews and Mr. Laqua. The suit was initially instituted on April 20, ~~2013~~2012. WeThe ~~determined~~plaintiff ~~that our~~is ~~disclosure~~seeking ~~controls~~relief in the form of injunctive and ~~procedures~~unspecified ~~were~~monetary ~~effective~~relief. asOn October 24, 2013, the Company and the plaintiff entered into a Settlement Agreement whereby the plaintiff released the Company from all claims arising of ~~June~~this 30lawsuit. In exchange therefore, ~~2013~~the Company agreed (i) to pay plaintiff the sum of $10,000 for attorneys fess and (ii) through December 31, 2014 to not directly or indirectly solicit any electrical and instrumention business from 11 facilities in the State of Texas.

~~Changes~~Cause inNo. ~~Internal Control~~4:13-cv-00505, ~~Over~~Michael ~~Financial~~Rushing, ~~Reporting~~Stephanie Rushing, Penn Rushing and Florence Rushing v. Texas Gulf Energy, Inc. on behalf of CS Bankers V, LLC, Texas Gulf Fabricators, Inc., David Mathews, Craig Crawford and Timothy Connolly, United States District Court for the Southern District of Texas.

WeThe ~~did~~Company ~~effect~~originally ~~changes~~filed inagainst ~~our internal controls over financial reporting during~~ the ~~period~~Rushings ~~covered~~for bya ~~this~~Declaratory ~~report~~Judgment ~~that~~alleging ~~materially~~the ~~affected,~~Rushings orfailed ~~that would reasonably be likely~~ to ~~affect~~perform ~~materially, our~~relative ~~internal control over financial reporting. There have been changes made in our internal controls and financial reporting that have materially affected or are reasonably likely~~ to ~~materially~~a ~~affect~~letter ~~our~~of ~~internal~~intent ~~controls~~with ~~over~~Texas ~~financial~~Gulf ~~reporting subsequent to the quarter ended June 30~~Fabricators, ~~2013, that effect our report for such period~~Inc. ~~Material weaknesses in our internal controls were identified by the Company’s management~~, ~~and~~or ~~reported to the Board of Directors and auditors in May~~alternatively, ~~2013.~~that ~~These material weaknesses were primarily related to errors in accounting as~~ the ~~Company~~letter ~~changed accounting systems in June~~ of ~~2012,~~intent ~~which~~was ~~resulted in a number of accounting entries that were~~ not ~~properly reversed in the quarter ended September 30, 2012~~enforceable. ~~Additionally, there were related balance sheet accounts that were not checked and verified.~~ The Company ~~has~~also ~~implemented~~filed ~~new processes regarding the reconciliation, review and reporting of the accounts on~~ a ~~monthly~~conversion ~~basis~~action ~~and~~against ~~assigned new qualified personnel to operate~~ the ~~Company’s~~Rushings ~~new accounting~~for ~~system~~removing toproperty ~~prevent these accounting errors~~ from ~~re-occurring,~~a ~~but~~fabrication ~~there can be no assurance that every error will be detected~~facility. The ~~Management~~Rushing ~~has~~Family ~~taken~~filed ~~steps~~two ~~which~~separate itcounterclaims ~~believes~~in ~~will ensure, to~~ the ~~extent~~underlying ~~reasonably~~state ~~possible,~~court ~~that this type of error will not occur in the future~~actions.

14 Cause No. 4:13-cv-00505, Michael Rushing, Stephanie Rushing, Penn Rushing and Florence Rushing v. Texas Gulf Energy, Inc. on behalf of CS Bankers V, LLC, Texas Gulf Fabricators, Inc., David Mathews, Craig Crawford and Timothy Connolly, United States District Court for the Southern District of Texas.

~~PART~~The IICompany originally filed against the Rushings for a declaratory judgment alleging they had failed to perform relative to a letter of intent with Texas Gulf Fabricators, Inc., or alternatively, that the letter or intent was not enforceable. The Company also filed a conversion action against the Rushings for removing property from a fabrication facility. The Rushing Family filed two separate counterclaims in the underlying state court actions before removing both actions to federal court in March 2013. On April 13, 2013, the Federal Court denied jurisdiction and remanded the matter back to the Texas State Court in the proceedings known as: (i) Cause No. 2013-00543; Texas Gulf Energy, Inc. on behalf of CS Bankers V, LLC and Texas Gulf Fabricators, Inc. vs. Penn Rushing, et al, in the 270 th Judicial District Court of Harris County and (ii) Cause No. 2013-004690; Texas Gulf Energy, Inc. vs. Penn Rushing, et al, in the 270 th Judicial District Court of Harris County. The Rushings' allegations include fraudulent inducement, negligent misrepresentation, breach of fiduciary duty, conversion, equitable estoppel and securities violations. These claims relate to a letter of intent and foreclosure proceeding on a shop property in Baytown, Texas. The Rushings have not disclosed an amount of damages sought. The Company is required to pay for the defense of Mr. Mathews, Mr. Crawford and Mr. Connolly. On Friday, August 9,2013, the 270 th Judicial District Court of Harris County ruled in favor of the Company’s motion for Summary Judgment related to the foreclosure. The Company believes the Rushing's claims are without merit and intends to pursue its claims and defenses vigorously .

~~OTHER~~Based ~~INFORMATION~~on our knowledge as of the date of this filing, we believe that any amounts exceeding our recorded accruals should not materially affect our financial position, results of operations or liquidity. It is the opinion of management that the eventual resolution of the above claim is unlikely to have a material adverse effect on our financial position or operating results. However, the results of litigation are inherently unpredictable and the possibility exists that the ultimate resolution of one or more of these matters could result in a negative material effect on our financial position, results or operations or liquidity.

~~Item 1. Legal Proceedings~~14

~~Various~~Item ~~legal actions, claims, and other contingencies arise in the normal course of our business~~1A. ~~Contingencies~~Risk are recorded in the consolidated financial statements, or are otherwise disclosed, in accordance with ASC 450-20, “Loss Contingencies”. Specific reserves are provided for loss contingencies to the extent we conclude that a loss is both probable and estimable. We use a case-by-case evaluation of the underlying data and update our evaluation as further information becomes known, and the known claim that had activity during the period covered by this report is as follows:Factors

~~Cause~~ ~~No.~~We ~~4:13-cv-00505,~~are ~~Michael~~a ~~Rushing,~~smaller ~~Stephanie~~reporting ~~Rushing, Penn~~company ~~Rushing~~as ~~and~~defined ~~Florence~~by ~~Rushing~~Rule v.12b-2 ~~Texas~~of ~~Gulf~~the ~~Energy,~~Securities ~~Inc.~~Exchange onAct ~~behalf~~ of CS1934 ~~Bankers V, LLC, Texas Gulf Fabricators, Inc., David Mathews, Craig Crawford~~ and ~~Timothy~~are ~~Connolly,~~not ~~United~~required ~~States~~to ~~District~~provide ~~Court~~information ~~for~~under ~~the~~this ~~Southern District of Texas~~item.

~~The~~Item ~~Company originally filed against the Rushings for a declaratory judgment alleging they had failed to perform relative to a letter of intent with Texas Gulf Fabricators, Inc~~2., orUnregistered ~~alternatively,~~Sales that the letter or intent was not enforceable. The Company also filed a conversion action against the Rushings for removing property from a fabrication facility. The Rushing Family filed two separate counterclaims in the underlying state court actions before removing both actions to federal court in March 2013. On April 13, 2013, the Federal Court denied jurisdiction and remanded the matter back to the Texas State Court in the proceedings known as: (i) Cause No. 2013-00543; Texas Gulf Energy, Inc. on behalf of CSEquity ~~Bankers~~Securities ~~V, LLC~~ and ~~Texas~~Use ~~Gulf Fabricators, Inc. vs. Penn Rushing, et al, in the 270th Judicial District Court~~ of Harris County and (ii) Cause No. 2013-004690; Texas Gulf Energy, Inc. vs. Penn Rushing, et al, in the 270th Judicial District Court of Harris County. The Rushings' allegations include fraudulent inducement, negligent misrepresentation, breach of fiduciary duty, conversion, equitable estoppel and securities violations. These claims relate to a letter of intent and foreclosure proceeding on a shop property in Baytown, Texas. The Rushings have not disclosed an amount of damages sought. The Company is required to pay for the defense of Mr. Mathews, Mr. Crawford and Mr. Connolly. On Friday, August 9,2013, the 270th Judicial District Court of Harris County ruled in favor of the company’s motion for Summary Judgment related to the foreclosure. The Company believes the Rushing's claims are without merit and intends to pursue its claims and defenses vigorously.Proceeds

~~Based on~~ our knowledge as of the date of this filing, we believe that any amounts exceeding our recorded accruals should not materially affect our financial position, results of operations or liquidity. It is the opinion of management that the eventual resolution of the above claim is unlikely to have a material adverse effect on our financial position or operating results. However, the results of litigation are inherently unpredictable and the possibility exists that the ultimate resolution of one or more of these matters could result in a negative material effect on our financial position, results or operations or liquidity.None

15Item 3. Defaults Upon Senior Securities

~~Item~~ ~~1A. Risk Factors~~None

WeItem ~~are~~4. aMine ~~smaller~~Safety ~~reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide information under this item.~~Disclosures

~~Item~~ 2.Not ~~Unregistered Sales of Equity Securities and Use of Proceeds~~applicable

~~None~~Item 5. Other Information

~~Item~~ ~~3. Defaults Upon Senior Securities~~None

~~None~~ Item 6. Exhibits

Item 4. Mine Safety Disclosures

EXHIBIT NO.		DESCRIPTION
31.1		Certification by Principal Executive Officer pursuant to Rule 13a-14(a)/ 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2		Certification by Principal Financial and Accounting Officer pursuant to Rule 13a-14(a)/ 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1		Certification by Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.2		Certification by Principal Financial and Principal Accounting Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101		The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2013 formatted in Extensible Business Reporting Language (XBRL): (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Operations, (iii) the Condensed Consolidated Statements of Cash Flows and (iv) related notes.

~~Not applicable~~15

~~Item~~ ~~5. Other Information~~Signature

~~None~~ Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Item 6. Exhibits

	Texas Gulf Energy, Incorporated

Date: November 18, 2013	By:	/s/ Craig Crawford
		Craig Crawford Interim Chief Executive Officer; Chief Financial Officer; signing on behalf of the registrant and as the registrant’s Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer

EXHIBIT NO.		DESCRIPTION
31.1		Certification by Principal Executive Officer pursuant to Rule 13a-14(a)/ 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2		Certification by Principal Financial and Accounting Officer pursuant to Rule 13a-14(a)/ 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1		Certification by Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2		Certification by Principal Financial and Principal Accounting Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101		The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2013 formatted in Extensible Business Reporting Language (XBRL): (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Operations, (iii) the Condensed Consolidated Statements of Cash Flows and (iv) related notes.

	16

Signature

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

	Texas Gulf Energy, Incorporated
Date: August 19, 2013	By:	/s/ Craig Crawford
		Craig Crawford Interim Chief Executive Officer; Chief Financial Officer; signing on behalf of the registrant and as the registrant’s Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer

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