UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended ~~September 30~~March 31, ~~2016~~2017

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

For the transition period from ___________ to ___________

Commission File Number: 333-185278

NEXT GRAPHITE, INC.

(Exact name of registrant as specified in its charter)

Nevada

90-0911609

(State or other jurisdiction

of incorporation)

(IRS Employer

Identification Number)

318 North Carson Street, Suite 208

Carson City, NV 89701 USA

(Address of principal executive offices)

(949) 397-2522

(Registrant’s telephone number, including area code)

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 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. x ☒ Yes o ☐ No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was Required to submit and post such files). x ☒ Yes o ☐ 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 the definitions of “large accelerated filer”, “accelerated filer” and smaller reporting company” in Rule 12b-2 of the Exchange Act.

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

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

As of ~~November~~May 1118, ~~2016~~2017, there were outstanding 51,411,443 shares of the registrant’s common stock, $.0001 par value.

TABLE OF CONTENTS

		Page
PART I	Financial Information
Item 1.	Financial Statements.
	Condensed Consolidated Balance Sheets as of September 30, 2016 (Unaudited) and December 31, 2015	F-1
	Condensed Consolidated Balance Sheets as of March 31, 2017 (Unaudited) and December 31, 2016	F-1
	Condensed Consolidated Statements of Operations for the three and nine months ending September 30, 2016 and 2015 (Unaudited)	F-2
	Condensed Consolidated Statements of Operations for the three months ending March 31, 2017 and 2016 (Unaudited)	F-2
	Condensed Consolidated Statements of Cash Flows for the nine months ending September 30, 2016 and 2015 (Unaudited)	F-3
	Condensed Consolidated Statements of Cash Flows for the three months ending March 31, 2017 and 2016 (Unaudited)	F-3
	Condensed Consolidated Notes to Financial Statements (Unaudited)	F-4
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	31
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	53
Item 4.	Controls and Procedures	53
PART II	Other Information
Item 1.	Legal Proceedings	64
Item 1A.	Risk Factors	64
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	64
Item 3.	Default Upon Senior Securities	64
Item 4.	Mine Safety Disclosures	64
Item 5.	Other Information	64
Item 6.	Exhibits	64
Signatures		75

PART I -- FINANCIAL INFORMATION

ITEM 1 -- FINANCIAL STATEMENTS

NEXT GRAPHITE, INC.

BALANCE SHEETS

Condensed Consolidated Balance Sheets

	September 30,			December 31,
	March 31,			December 31,
	2016			2015
	2017			2016
ASSETS	(unaudited)
Current assets:
Cash	$	29,~~738~~485		$	159,~~563~~299
Other Receivable		200			-
Total current assets:		9,485			9,299
Total current assets:		2,938			15,563
Total assets	$	9,485		$	9,299
Total assets	$	2,938		$	15,563
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable	$	~~397~~419,~~591~~859		$	~~206~~407,~~303~~913
Accrued interest payable		2034,~~742~~763			828,~~413~~770
Note payable, net of debt discount of $1,517 and $7,333, respectively		135,483			76,167
Note payable, net of debt discount $1,517 and $1,517, respectively		145,483			145,483
Note payable – related parties		16,000			616,000
Convertible note payable, net of debt discount of $0 and $9,333, respectively		121,000			111,667
Convertible note payable		121,000			121,000
Fair value of derivative liability - beneficial conversion feature		3346,~~652~~476			~~107~~38,~~690~~756
Deferred license income		85,481			60,491
Deposit		-			132,971
Total current liabilities		~~809~~783,~~949~~581			~~576~~890,~~731~~893
Total liabilities		~~809~~783,~~949~~581			~~576~~890,~~731~~893
Stockholders’ deficit:
Preferred stock authorized 25,000,000 shares, $.0001 par value, no shares issued and outstanding at September 30, 2016 and December 31, 2015.		-			-
Preferred stock authorized 25,000,000 shares, $.0001 par value, no shares issued and outstanding at March 31, 2017 and December 31, 2016.		-			-
Common stock authorized 100,000,000 shares, $.0001 par value, 51,411,443 and 50,411,443 shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively.		5,141			5,041
Common stock authorized 100,000,000 shares, $.0001 par value, 51,411,443 shares issued and outstanding at March 31, 2017 and December 31, 2016.		5,141			5,141
Additional paid-in capital		4,~~166~~401,~~177~~221			4,~~069~~175,~~826~~170
Accumulated deficit		(45,~~978~~180,~~329~~458	)		(45,~~636~~061,~~035~~905	)
Total stockholders' deficit		(807,011	)		(561,168	)
Total stockholders’ deficit		(774,096	)		(881,594	)
Total liabilities and stockholders' deficit	$	2,938		$	15,563
Total liabilities and stockholders’ deficit	$	9,485		$	9,299

~~The~~ See accompanying notes ~~are~~ anto ~~integral part of~~ these unaudited condensed consolidated financial statements

F-1

NEXT GRAPHITE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

For the Three ~~and Nine~~ Months Ended ~~September~~ 30March 31, ~~2016~~2017 and ~~2015~~2016

(Unaudited)

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	Three Months Ending March 31,
	2016			2015			2016			2015
	2017			2016
NET SALES	$	-		$	-		$	-		$	-
OPERATING EXPENSES:
Professional fees		~~132~~96,~~964~~222			~~174~~112,~~561~~996			~~318,537~~			~~226,897~~
Stock based compensation		40,002			635			45,451			22,910
Selling, general, and administrative		10,191			8,151
Selling, general, and administrative		10,720			25,349			22,992			45,922
Total Operating Expenses		106,413			121,147
Total Operating Expenses		183,686			200,545			386,980			295,729
Loss from operations		(106,413	)		(121,147	)
Loss from operations		(183,686	)		(200,545	)		(386,980	)		(295,729	)
OTHER INCOME (EXPENSE):
OTHER INCOME (EXPENSES):
Other Income		1,775			-
Interest expense		(96,~~422~~195	)		(2618,~~430~~492	)		~~(39,852~~	)		~~(66,408~~	)
Changes in fair value of derivative		20(7,~~063~~720	)		19(161,~~388~~129	)		~~84,538~~			~~(4,866~~	)
Total Other Expense		10,641			(7,042	)		44,686			(71,274	)
Total Other Income (Expenses), net		(12,140	)		(179,621	)
NET LOSS	$	(~~173~~118,~~045~~553	)	$	(~~207~~300,~~587~~768	)	$	~~(342,294~~	)	$	~~(367,003~~	)
NET LOSS PER BASIC AND DILUTED SHARES	$	-		$	-		$	-		$	-
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING – BASIC AND DILUTED		4751,~~401~~411,~~334~~443			5074,~~411~~723,~~443~~843			~~46,191,773~~			~~50,411,443~~

~~The accompanying~~See accompanying notes ~~are~~to ~~an integral part of~~ these unaudited condensed consolidated financial statements.

F-2

NEXT GRAPHITE, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

For the ~~Nine~~Three Months Ended ~~September 30~~March 31, ~~2016~~2017 and ~~2015~~2016

(Unaudited)

	Nine Months Ended September 30,
	Three Months Ended March 31,
	2016			2015
	2017			2016
Operating Activities:
Net loss	$	(~~342~~118,~~294~~553	)	$	(~~367~~300,~~003~~768	)
Adjustments to reconcile net loss to net cash used in operating activities:
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Common stocks issued by service		100			-
Change in deposit balance		44,522			-
Stock based compensation		4548,~~451~~558			225,~~910~~449
Interest expense – note payable		193,~~662~~439			-11,142
Interest expense – amortization of convertible note discount		192,~~833~~554			627,~~221~~350
Changes in fair value of convertible note		~~(84~~7,~~538~~720	)		4161,~~866~~129
Other receivable		(200	)		-
Accounts payable		11,946			88,565
Accounts payable and accrued liabilities		191,288			147,911
Net cash provided by (used in) operating activities		186			(27,133	)
Net cash used in operating activities		(150,698	)		(129,095	)
Financing Activities:
Proceeds from issuance of common stock		50,900			-
Proceeds from issuance of note payable		-			26,983
Proceeds from issuance of note payable to related party		10,000			6,000
Net cash provided by financing activities		-			26,983
Proceeds from issuance of note payable		51,983			34,000
Net increase (decrease) in cash		186			(150	)
Proceeds from deferred license income		24,990			59,991
Cash, Beginning of period		9,299			15,563
Proceeds from issuance of convertible note		-			28,000
Cash, End of period	$	9,485		$	15,413
Net cash provided by financing activities		137,873			127,991
Non-Cash Transaction:
Net decrease in cash		(12,825	)		(1,104	)
Change in deposit balance	$	132,971			-
Cash, Beginning of period		15,563			17,878
Cash, End of period	$	2,738		$	16,774

~~The~~ See accompanying notes ~~are~~to ~~an integral part of~~ these unaudited condensed consolidated financial statements.

F-3

Next Graphite, Inc.

Notes to the Unaudited Condensed Consolidated Financial Statements

NOTE 1 – ORGANIZATION

Next Graphite, Inc. (the “Company”) was incorporated in Nevada on September 26, 2012 under the name Zewar Jewellery, Inc. and is a development-stage entity. The Company'’s current business plan is to engage in the mining business developing graphite properties located in Namibia. The Company is based in Carson City, Nevada.

On November 14, 2013, the Company consummated transactions pursuant to a Share Exchange Agreement (the “Share Exchange Agreement”) dated November 14, 2013 by and among the Company and the stockholders of African Graphite, Inc., a private Nevada corporation (“AGI” and the “AGI Stockholders”) whereby AGI Stockholders transferred 100% of the outstanding shares of common stock of AGI held by them, in exchange for an aggregate of 8,980,047 newly issued shares of the Company’s common stock, par value $.0001 per share (the “Common Stock”).

On November 14, 2013, AGI entered into a Stock Purchase Option Agreement (the “Option Agreement”) with NMC Corp., a corporation organized under the laws of the Province of Ontario, Canada (“NMC”), whereby NMC granted to AGI an option to purchase 90 ordinary shares, par value one Namibian dollar per share, of Gazania Investments Two Hundred and Forty Two (Proprietary) Limited, a corporation organized under the laws of the Republic of Namibia ("“Gazania"”), representing 90% of the issued and outstanding shares of Gazania, for $240,000. NMC had entered into an option agreement dated March 29, 2013, as amended on November 4, 2013 (the “Centre Agreement”), with Centre for Geoscience Research CC (formerly known as “Industrial Minerals and Rock Research Centre CC”), a company organized under the laws of the Republic of Namibia ("“Centre"”), whereby Centre agreed to transfer to Gazania 100% undivided interest in the exclusive prospecting license No. 3895 known as AUKAM originally issued to Centre by the government of the Republic of Namibia on April 4, 2011 and renewed on April 4, 2013 (the “License”). The License grants the right to conduct prospecting operations, bulk sampling and pilot production in the license area called AUKAM located in southern Namibia in the Karas Region within the Betaine district. The license area covers about 49,127 hectares. The only mine in Namibia which has produced graphite is situated in the license area. The transfer of the License to Gazania was approved by the Ministry of Mines and Energy of the Republic of Namibia on February 25, 2014.

Under the Option Agreement, AGI was required to pay to NMC $90,000 as an advance payment to be credited towards the purchase price of the Gazania shares. The Company made the advance payment on November 14, 2013. The balance of the purchase price in the amount of $150,000 was paid by AGI upon exercise of the option that was completed on March 14, 2014. As a result, Gazania became a direct 90% owned subsidiary of the Company.

The Company acquired the remaining 10% ownership of Gazania for $15,000 in the third quarter of 2015. As a result, Gazania became a direct 100% owned subsidiary of the Company.

NOTE 2 – GOING CONCERN

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, which contemplates continuation of the Company as a going concern. The Company has incurred approximately $45,~~978~~180,~~329~~458 in ~~operating~~accumulated deficit since its inception, and has generated no operating revenue, which could raise substantial doubt about the Company’s ability to continue as a going concern.

In view of these matters, realization of the assets of the Company is dependent upon the Company’s ability to meet its financial requirements through equity financing and the success of future operations. These unaudited condensed consolidated financial statements do not include adjustments relating to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence.

F-4

NOTE 3 – BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and are presented in accordance with the requirements of Form 10-Q. In the opinion of management, the unaudited condensed consolidated financial statements included herein contain all adjustments, including normal recurring adjustments, considered necessary to present fairly the financial position, the results of operations and comprehensive income (loss) and cash flows of the Company for the periods presented. These unaudited condensed consolidated financial statements and notes hereto should be read in conjunction with the financial statements and notes thereto for the year ended December 31, ~~2015~~2016 included in the Company’s Form 10-K filed on ~~April~~March 1431, ~~2016~~2017. The ~~operating~~ operating results or cash flows for the interim periods presented herein are not necessarily indicative of the results to be expected ~~for~~ for any other interim period or the full year.

NOTE 4 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

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

Revenue Recognition, Deferred Revenue and Customer Deposits

The Company recognizes revenue in accordance with ASC 605, “Revenue Recognition,” when persuasive evidence of an arrangement exists, the price is fixed or determinable, collection is reasonably assured and delivery of products has occurred or services have been rendered. The Company did not have product sales for the ~~years~~three months ended ~~December~~March 31, ~~2015~~2017 and ~~2014~~2016.

The Company received a customer deposit for potential usage of Company’s license in the amount of $85177,~~481~~493 and $60132,~~491~~971 as of March ~~September 30~~31, ~~2016~~2017 and December 31, ~~2015~~2016, respectively. The Company recognize the amount of $177,493 as additional paid-in capital by transferring 52% of interest to the joint venture party.

Income Taxes

Provisions for income taxes are based on taxes payable or refundable and deferred taxes. Deferred taxes are provided on differences between the tax bases of assets and liabilities and their reported amounts in the financial statements and tax operating loss carry forwards. Deferred tax assets and liabilities are included in the financial statements at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. Assets and liabilities are established for uncertain tax positions taken or positions expected to be taken in income tax returns when such positions are judged to not meet the “more-likely-than-not” threshold based on the technical merits of the positions. Estimated interest and penalties related to uncertain tax positions are included as a component of general and administrative expense.

Basic and Diluted Loss per Common Share

Basic loss per common share amounts are computed by dividing net loss by the weighted-average number of shares of common stock outstanding during each period. Diluted loss per share amounts are computed assuming the issuance of common stock for potentially dilutive common stock equivalents.

F-5

Fair Value of Financial Instruments

The carrying amounts reported in the balance sheets for accounts payable, and related party payables approximate fair value because of the immediate or short-term maturity of these financial instruments. The carrying amounts reported for convertible notes payable approximate fair value based on the value of the common stock into which the notes are convertible. The carrying amounts reported for notes payable approximate fair value because the underlying instruments are at interest rates that approximate current market rates.

ASC 820 defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. ASC 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 establishes three levels of inputs that may be used to measure fair value:

	●	Level 1 – Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company holds. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.
	●	Level 2 – Valuation based on quoted prices in markets that are not active for which all significant inputs are observable, either directly or indirectly.
	●	Level 3 – Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

Financial instruments include cash, accounts payable and accrued expenses and other current liabilities. The carrying amounts of cash, accounts payable and accrued expenses and other current liabilities approximate their fair value due to the short term maturities of these instruments.

The Company has Level 3 financial instrument, an embedded derivative liability (beneficial conversion feature) that is recorded at fair value on periodic basis. The embedded derivative is evaluated under the hierarchy of ASC 480-10, ASC Paragraph 815-25-1 and ASC Subparagraph 815-10-15-74 addressing embedded derivatives. The fair value of such Level 3 financial instrument is estimated using the Black-Scholes option pricing model. The foregoing Level 3 financial instrument has certain provisions which qualifies to be classified as a liability under ASC 815.

As of ~~September~~March 3031, ~~2016~~2017, the following table represents the Company’s fair value hierarchy for items that are required to be measured at fair value on a recurring basis:

Description

Level 1

Level 2

Level 3

Derivative liability

3346,~~652~~476

As of December 31, ~~2015~~2016, the following table represents the Company’s fair value hierarchy for items that are required to be measured at fair value on a recurring basis:

Description

Level 1

Level 2

Level 3

Derivative liability

~~107~~38,~~690~~756

F-6

Recent Accounting Pronouncements

In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This ASU is intended to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The provisions of this ASU are effective for years beginning after December 15, 2016. Early application is permitted. The Company is currently evaluating the impact of this ASU.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This ASU would require lessees to recognize the following for all leases (with the exception of short-term leases) at the commencement date; (i) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (ii) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Lessor accounting is largely unchanged under the amendments of this ASU. The provisions of this ASU are effective for years beginning after December 15, 2018. The Company is currently evaluating the impact of this ASU.

In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. This ASU establishes specific guidance to an organization’s management on their responsibility to evaluate whether there is substantial doubt about the organization’s ability to continue as a going concern. The provisions of ASU 2014-15 are effective for interim and annual periods beginning after December 15, 2016. This ASU is not expected to have an impact on the Company’s financial position, results of operations or cash flows.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The objective of ASU 2014-09 is to clarify the principles for recognizing revenue by removing inconsistencies and weaknesses in revenue requirements; providing a more robust framework for addressing revenue issues; improving comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets; and providing more useful information to users of financial statements through improved revenue disclosure requirements. On August 12, 2015, the FASB issued ASU No. 2015-14, deferring the effective date by one year for ASU No. 2014-09. The provisions of ASU No. 2014-09 will be effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted for annual periods beginning after December 15, 2016. The Company is currently evaluating the impact of this standard on its financial position, results of operations and cash flows.

F-76

NOTE 5 – ACCOUNTS PAYABLE

As of ~~September~~March 3031, ~~2016~~2017, and December 31, ~~2015~~ 2016, the Company’s accounts payable was primarily ~~made~~composed up of professional fees.

NOTE 6 – NOTES PAYABLE

The Company had the following notes payable as of ~~September~~March 3031, ~~2016~~2017 and December 31, ~~2015~~2016:

Issuance Date	Maturity Date	Interest Rate			~~September~~March 3031,2017 ~~2016~~ (unaudited)			December 31, ~~2015~~2016
February 10, 2015	February 9, 2016		57.0%	%	$	24,000		$	24,000
March 31, 2015	September 30, 2015		7.0%	%		10,000			10,000
December 3, 2015	February 29, 2016		10.0%	%		29,000			29,000
December 23, 2015	September 29, 2016		10.0%	%		20,500			20,500
March 2, 2016	September 29, 2016		10.0%	%		13,500			-13,500
March 2, 2016	September 29, 2016		10.0%	%		15,000			-15,000
August 3, 2016	September 30, 2016		6%8.0	%		10,000			-10,000
August 3, 2016	September 30, 2016		6%8.0	%		7,500			-7,500
September 9, 2016	March 9, 2017		6%.0	%		7,500			-7,500
Total					$	137,000		$	83,500
October 13, 2016	April 13, 2017		6.0	%		10,000			10,000
Original issuance discount						(1,517	)		(7,333	)
Total					$	147,000		$	147,000
Total					$	135,483		$	76,167
Original issuance discount						(1,517	)		(1,517	)
Total					$	145,483		$	145,483

The notes payable with the maturity date that has matured at the time the financial statements are issued continued to accrue interest and no default ~~penalties~~interests were incurred. Interest expense for notes payable amounted to $13,~~833~~123 and $011,142 for the quarters (3 months) ended ~~September~~March 3031, 2017 and 2016. The Company recorded original issue discount of $1,517 for March 31, 2017 and ~~2015~~December 31, 2016.

NOTE 7 – NOTES PAYABLE – RELATED PARTY

The Company had the following related party notes payable as of ~~September~~March 3031, ~~2016~~2017 and December 31, ~~2015~~2016:

Description	Issuance Date	Maturity Date	Interest Rate			~~September~~March 3031, ~~2016~~2017 (unaudited)		December 31, ~~2015~~2016
Michael J. Doron	July 8, 2015	September 8, 2015		78.0	%	$	2,500	$	2,500
Charles C. Bream III	July 8, 2015	September 8, 2015		78.0	%		2,500		2,500
Charles C. Bream III	August 24, 2015	November 23, 2015		78.0	%		1,000		1,000
Charles C. Bream III	August 1, 2016	September 30, 2016		68.0	%		10,000		-10,000
Total						$	16,000	$	616,000

Interest expense for notes payable-related party amounted to $~~204~~316 and $0298 for the quarter (3 months) ended ~~September~~March 3031, ~~2016~~2017 and ~~2015~~2016.

F-87

NOTE 8 – CONVERTIBLE NOTES PAYABLE

The Company issued convertible notes payable. The outstanding balance and any accrued interest is due on maturity date or when the cash is available to repay the notes payable. Under the agreement, the notes can be convertible at the holder’s discretion into common shares of the Company’s stock at a 25% discount to the price at the date of exercise.

The Company’s convertible notes payable is as follows:

Convertible Note	Issuance Date	Maturity Date	Interest Rate			Original Borrowing		Balance at ~~September~~March 3031, ~~2016~~2017 (unaudited)		Balance at December 31, ~~2015~~2016
Note 1	October 2, 2014	December 31, 2015		57.0%	%	$	100,000	$	100,000	$	100,000
Note 2	~~June~~December 1023, 2015	~~March~~September 1323, 2016		816.0%	%	$	2821,000	$	-21,000	$	-21,000
Note 3	December 23, 2015	September 23, 2016		8.0%		$	21,000	$	21,000	$	21,000
Total									121,000		121,000
Debt Discount									-		~~(9,333~~-	)
Net balance								$	121,000	$	~~111~~121,~~667~~000

The convertible notes with the maturity date that has matured at the time the financial statements are issued continued to accrue interest and no default ~~penalties~~interests were incurred. The Company incurred $12,~~683~~554 and $01,665 of interest expense for the quarter (3 months) ended ~~September~~March 3031, ~~2016~~2017 and ~~2015~~2016. No convertible notes were converted as of ~~September~~March 3031, ~~2016~~2017 and up to the date the financial statements are issued.

The Company adopted the provisions of FASB ASC Topic 815, “Derivatives and Hedging” (“ASC 815”) (previously EITF 07-5, “Determining Whether an Instrument (or an Embedded Feature) is Indexed to an Entity’s Own Stock”), as the convertible note agreement contained certain provision that the convertible note failed to pass the “fixed for fixed” criteria of ASC815, the conversion feature of the convertible debt should have to be bifurcated and recorded separately until the conversion date.

Based on ASC 815, the Company determined that the convertible debt contained embedded derivatives and full-ratchet provision which the Company valued the embedded derivative using the Black-Scholes method. The following table represents fair value of embedded derivative movement from the date of issuance to ~~September~~December 3031, 2016:

Embedded Derivative Liabilities	Fair Value at Date of Issuance		Changes in Fair Value			Fair Value at ~~September~~December 3031, 2016 ~~(unaudited)~~
Note 1 – Issued in 2014	$	70,334	$	(4234,~~556~~778	)	$	2735,~~778~~556
Note 2 – Issued in 2015	$	2010,~~000~~500	$	(2017,~~000~~800	)	$	-3,200
Note 3 – Issued in 2015	$	21,000	$	(15,126	)	$	5,874
Total			$	(52,578	)	$	38,756
Total			$	(77,682	)	$	33,652

As a result of initial recording of derivative liability of $41,000 for convertible notes issued in 2015 with proceeds of $49,000 the Company recorded debt discount of $30,500 at the date of issuance of convertible note payable for issuances occurred in 2015. The Company recorded additional debt discount of $10,500 in June 2015 to true up the debt discount balance. The original debt discount amount of $30,500 should have been recorded as $41,000. The Company accretes debt discount of $41,000 for convertible notes issued in 2015 and $70,334 for convertible note issued in 2014 over the life of the convertible note. The Company recorded accretion of $5,483 and $0 for the three months ended on September 30, 2016 and 2015 which is recorded as interest expense.

F-9

The following table represents fair value of embedded derivative movement from the date of issuance to December 31, 2015:

Embedded Derivative Liabilities	Fair Value at Date of Issuance		Changes in Fair Value			Fair Value at December 31, 2015
Note 1 – Issued in 2014	$	70,334	$	5,856		$	76,190
Note 2 – Issued in 2015	$	20,000	$	(20,000	)	$	-
Note 3 – Issued in 2015	$	10,500	$	21,000		$	31,500
Total			$	6,856		$	107,690

As a result of initial recording of derivative liability of $30,500 for convertible notes issued in 2015 with proceeds of $49,000 the Company recorded debt discount of $30,500 at the date of issuance of convertible note payable for issuances occurred in 2015. The Company accretes debt discount of $30,500 for convertible notes issued in 2015 and $70,334 for convertible note issued in 2014 over the life of the convertible note.

F-8

Embedded Derivative Liabilities	Fair Value at Date of Issuance		Changes in Fair Value			Fair Value at March 31, 2017 (unaudited)

Note 1 – Issued in 2014	$	70,334	$	(37,001	)	$	33,333
Note 2 – Issued in 2015	$	21,000	$	(7,857	)	$	13,143

Total			$	(44,858	)	$	46,476

The Company recorded accretion of $5,483 and $7,350 for the three months ended on March 31, 2017 and 2016 which is recorded as interest expense.

NOTE 9 – PROVISION FOR INCOME TAXES

The Company recognizes the tax effects of transactions in the year in which such transactions enter into the determination of net income regardless of when reported for tax purposes. Deferred taxes are provided in the financial statements under FASB 740-10-65-1 to give effect to the temporary differences which may arise from differences in the bases of fixed assets, depreciation methods and allowances based on the income taxes expected to be payable in future years. Minimal development stage deferred tax assets arising as a result of net operating loss carry-forwards have been offset completely by a valuation allowance due to the uncertainty of their utilization in future periods.

The Company recognizes interest accrued relative to unrecognized tax benefits in interest expense and penalties in operating expense. During the period from August 28, 2013 (inception) to ~~September~~March 3031, ~~2016~~2017, the Company recognized no income tax related interest and penalties. The Company had no accruals for income tax related interest and penalties at ~~September~~March 3031, ~~2016~~2017.

NOTE 10 - STOCKHOLDERS’ DEFICIT

As of ~~September~~March 3031, ~~2016~~2017, the Company had (i) 100,000,000 Common shares authorized with a par value of $.0001 per share, of which 51,411,443 shares were issued and outstanding, and (ii) 25,000,000 shares of preferred stock, par value $.0001 per share, authorized, none of which was issued and outstanding. 8On November 14,~~980~~ 2013,~~047~~ the Company consummated transactions pursuant to the Share Exchange Agreement with AGI dated November 14, 2013 by and among the Company and the stockholders of AGI whereby the AGI Stockholders transferred 100% of the outstanding shares of ~~Common~~common ~~Stock~~stock ~~have~~of ~~been~~AGI held by them, in exchange for an aggregate of 8,980,047 newly issued toshares ~~founders~~of Common Stock, of which, 400,016 shares were issued to the President and director as part of their consulting agreements. The shares were valued at par for a value of $898. ~~There are 1,000,000 common shares issued to Caro Capital, LLC for services rendered in the quarter ended September 30, 2016.~~

NOTE 11 – RESTRICTED COMMON SHARES AND WARRANTS

In May 20, 2014, the Company approved future issuances of performance based restricted common shares to the following employees and outside consultants. The Company accounts the issuances of restricted common shares, as defined by ASC 718, Compensation—Stock Compensation, in accordance with ASC 718. The restricted common shares will be issued upon completion of certain tasks or deliverables and contain certain exercise price with no expiration period.

On May 28, 2015, the Company has elected to grant warrants to certain entities and individuals in lieu of restricted common stock that has been issued.

~~F-10~~As of March 31,2017: (i) 2,793,651 shares of Company common stock were subject to issuance pursuant to outstanding convertible notes payable, (ii) 12,855,000 shares of Company common stock were subject to issuance pursuant to the existing warrants. There are total 48,588, 557 unissued shares of Company common stocks, which are more than the potential of common stocks if the convertible debt and warrant have been converted at the end of March 31, 2017.

F-9

a) A summary of the status of the Company’s restricted common shares is presented below:

	~~Shares~~	Shares	~~Weighted Average Exercise Price~~	Weighted Average Exercise Price	~~Weighted Average Remaining Contractual Life (in Years)~~	Weighted Average Remaining Contractual Life (in Years)	~~Aggregate Intrinsic Value~~	Aggregate Intrinsic Value
Outstanding at December 31, 2014		-		-
Outstanding at December 31, 2015		-		-				-
Granted		~~1,760,000~~-	$	~~0.17~~-				-
Exercised		-		-				-
Superseded by May 28 Stock Warrants		1,760,000		-
Forfeited or expired		-		-				-
Outstanding at December 31, 2015			$			N/A	$	-
Outstanding at December 31, 2016		-	$	-		N/A	$	-
Granted		-		-				-
Exercised		-		-				-
Forfeited or expired		-		-				-
Outstanding at September 30, 2016		-	$	-		0.33	$	-
Outstanding at March 31, 2017		-	$	-		N/A	$	-
Vested at September 30, 2016		-	$	-		0.33	$	-
Vested at March 31, 2017		-	$	-		N/A	$	-

b) The stock warrants issued in lieu of restricted common stock granted but not yet issued is presented below:

Date Issued	Exercise Price		Number of Shares		Weighted Average Remaining Contractual Life	Expiration date
May 28, 2015 (Issued in lieu of restricted common stock)	$	0.011		2,720,000	3.6616 years	May 27, 2020
May 28, 2015 (Issued in lieu of restricted common stock)	$	0.011		25,000	3.6616 years	May 27, 2020
June 16, 2015 (Issued in lieu of restricted common stock)	$	0.011		2,000,000	3.7121 years	June 15, 2020
July 8, 2015 (Issued in lieu of restricted common stock)	$	0.011		25,000	3.7727 years	July 7, 2020
July 8, 2015 (Issued in lieu of restricted common stock)	$	0.011		25,000	3.7727 years	July 7, 2020
August 24, 2015 (Issued in lieu of restricted common stock)	$	0.011		10,000	3.9040 years	August 23, 2020
February 1, 2016	$	0.003		13,~~750~~000,000	43.3484 years	January 31,2021
February 29, 2016	$	0.004		50,000	4.42 years	February 28, 2021
February 1, 2016	$	0.003		1,750,000	3.84 years	January 31,2021
July 15, 2016	$	0.03		1,500,000	4.79 years	July 14, 2021
February 29, 2016	$	0.004		50,000	3.92 years	February 28, 2021
Total warrants at September 30, 2016				8,105,000
July 15, 2016	$	0.03		1,500,000	4.29 years	July 14, 2021
January 6, 2017	$	0.03		1,750,000	4,77 years	January 5, 2022
Total warrants at September 30, 2016				12,855,000

The initial fair value of the new warrants issued for services in ~~3rd~~1st quarter, ~~2015~~2016 was estimated at an aggregate value of $~~635~~5,449. The initial fair value of the new warrants issued for services in ~~1st~~3rd quarter, 2016 was estimated at an ~~aggregate~~ aggregate value of $540,~~449~~002. The initial fair value of the new warrants issued for services in ~~3rd~~1st quarter, ~~2016~~2017 was estimated at an aggregate value of $4048,~~002~~558. All warrants are vested and exercisable immediately.

The total 41,~~245~~750,000 and 34.750,~~250,~~000 share of warrants for ~~nine~~three months ended on ~~September~~March 3031,2017 ~~2015~~ and 2016 were issued to a related party, 360 Partners. ~~And also total 60,000 shares of warrants were issued to the company’s officers for 9 months ended on September 30, 2015.~~

F-11

NOTE 12 – COMMITMENTS AND CONTINGENCIES

The ~~Company~~ Company is subject to various legal proceedings from time to time as part of its business. As of ~~September~~March 3031, ~~2016~~2017, the Company was ~~not~~ not currently party to any legal proceedings or threatened legal proceedings, the adverse outcome of which, individually or in ~~the~~ the aggregate, it believes would have a material adverse effect on its business, financial condition and results of operations.

NOTE 13 – SUBSEQUENT EVENTS

AsASC ~~previously~~855, ~~reported~~“Subsequent inEvents. ~~the~~ASC ~~Company’s~~855 ~~Form~~establishes ~~10-K~~general ~~filed~~standards onof ~~April~~accounting ~~14,~~for ~~2016,~~and indisclosure ~~February~~ of ~~2016,~~events ~~the~~that ~~Company~~occur ~~received a Conditional~~after ~~Renewal~~the ofbalance ~~its~~sheet ~~exclusive~~date ~~prospecting~~but ~~license~~before ~~EPL~~financial ~~3895~~statements ~~from~~are ~~the~~issued ~~Namibian~~or ~~Ministry~~are ofavailable ~~Mines~~to ~~and~~be ~~Energy~~issued. InDuring ~~May~~these ~~of 2016~~periods, ~~the~~other ~~Company~~than ~~received~~as ~~Formal~~set ~~Renewal~~forth ofabove, ~~its~~the ~~exclusive~~Company ~~prospecting~~did ~~license~~not ~~EPL~~have ~~3895~~any ~~from~~material ~~the~~recognizable ~~Namibian~~subsequent ~~Ministry~~events ofrequired ~~Mines~~to ~~and~~be ~~Energy.~~disclosed ~~The~~other ~~license~~than those ~~renewal~~disclosed isin ~~set~~this note to ~~expire~~the infinancial ~~April~~statements as of and for quarter ended March 31, 2017.

ASC 855, “Subsequent Events. ASC 855 establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued or are available to be issued. During these periods, other than as set forth above, the Company did not have any material recognizable subsequent events required to be disclosed other than those disclosed in this note to the financial statements as of and for quarter ended September 30, 2016.F-10

~~F-12~~ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION

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

~~MANAGEMENT'S DISCUSSION AND ANALYSIS~~SPECIAL NOTE OF ~~FINANCIAL~~CAUTION ~~CONDITION~~REGARDING ~~AND~~FORWARD-LOOKING ~~RESULTS OF OPERATION~~STATEMENTS

~~SPECIAL~~CERTAIN STATEMENTS ~~NOTE~~IN OFTHIS ~~CAUTION~~REPORT, ~~REGARDING~~INCLUDING STATEMENTS IN THE FOLLOWING DISCUSSION, ARE WHAT ARE KNOWN AS “FORWARD-LOOKING STATEMENTS”, WHICH ARE BASICALLY STATEMENTS ABOUT THE FUTURE. FOR THAT REASON, THESE STATEMENTS INVOLVE RISK AND UNCERTAINTY SINCE NO ONE CAN ACCURATELY PREDICT THE FUTURE. WORDS SUCH AS “PLANS”, “INTENDS”, “WILL”, “HOPES”, “SEEKS”, “ANTICIPATES”, “EXPECTS “AND THE LIKE OFTEN IDENTIFY SUCH FORWARD-LOOKING STATEMENTS, BUT ARE NOT THE ONLY INDICATION THAT A STATEMENT IS A FORWARD-LOOKING STATEMENT. SUCH FORWARD-LOOKING STATEMENTS INCLUDE STATEMENTS CONCERNING OUR PLANS AND OBJECTIVES WITH RESPECT TO THE PRESENT AND FUTURE OPERATIONS OF THE COMPANY, AND STATEMENTS WHICH EXPRESS OR IMPLY THAT SUCH PRESENT AND FUTURE OPERATIONS WILL OR MAY PRODUCE REVENUES, INCOME OR PROFITS. NUMEROUS FACTORS AND FUTURE EVENTS COULD CAUSE THE COMPANY TO CHANGE SUCH PLANS AND OBJECTIVES OR FAIL TO SUCCESSFULLY IMPLEMENT SUCH PLANS OR ACHIEVE SUCH OBJECTIVES, OR CAUSE SUCH PRESENT AND FUTURE OPERATIONS TO FAIL TO PRODUCE REVENUES, INCOME OR PROFITS. THEREFORE, THE READER IS ADVISED THAT THE FOLLOWING DISCUSSION SHOULD BE CONSIDERED IN LIGHT OF THE DISCUSSION OF RISKS AND OTHER FACTORS CONTAINED IN THIS REPORT ON FORM 10-Q, THE COMPANY’S FORM 10-K FILED ON APRIL 14, 2016 AND IN THE COMPANY’S OTHER FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION. NO STATEMENTS CONTAINED IN THE FOLLOWING DISCUSSION SHOULD BE CONSTRUED AS A GUARANTEE OR ASSURANCE OF FUTURE PERFORMANCE OR FUTURE RESULTS.

~~CERTAIN STATEMENTS IN THIS REPORT,~~Plan ~~INCLUDING~~of STATEMENTS IN THE FOLLOWING DISCUSSION, ARE WHAT ARE KNOWN AS "FORWARD-LOOKING STATEMENTS", WHICH ARE BASICALLY STATEMENTS ABOUT THE FUTURE. FOR THAT REASON, THESE STATEMENTS INVOLVE RISK AND UNCERTAINTY SINCE NO ONE CAN ACCURATELY PREDICT THE FUTURE. WORDS SUCH AS "PLANS", "INTENDS", "WILL", "HOPES", "SEEKS", "ANTICIPATES", "EXPECTS "AND THE LIKE OFTEN IDENTIFY SUCH FORWARD-LOOKING STATEMENTS, BUT ARE NOT THE ONLY INDICATION THAT A STATEMENT IS A FORWARD-LOOKING STATEMENT. SUCH FORWARD-LOOKING STATEMENTS INCLUDE STATEMENTS CONCERNING OUR PLANS AND OBJECTIVES WITH RESPECT TO THE PRESENT AND FUTURE OPERATIONS OF THE COMPANY, AND STATEMENTS WHICH EXPRESS OR IMPLY THAT SUCH PRESENT AND FUTURE OPERATIONS WILL OR MAY PRODUCE REVENUES, INCOME OR PROFITS. NUMEROUS FACTORS AND FUTURE EVENTS COULD CAUSE THE COMPANY TO CHANGE SUCH PLANS AND OBJECTIVES OR FAIL TO SUCCESSFULLY IMPLEMENT SUCH PLANS OR ACHIEVE SUCH OBJECTIVES, OR CAUSE SUCH PRESENT AND FUTURE OPERATIONS TO FAIL TO PRODUCE REVENUES, INCOME OR PROFITS. THEREFORE, THE READER IS ADVISED THAT THE FOLLOWING DISCUSSION SHOULD BE CONSIDERED IN LIGHT OF THE DISCUSSION OF RISKS AND OTHER FACTORS CONTAINED IN THIS REPORT ON FORM 10-Q, THE COMPANY’S FORM 10-K FILED ON APRIL 14, 2016 AND IN THE COMPANY'S OTHER FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION. NO STATEMENTS CONTAINED IN THE FOLLOWING DISCUSSION SHOULD BE CONSTRUED AS A GUARANTEE OR ASSURANCE OF FUTURE PERFORMANCE OR FUTURE RESULTS.Operations

~~Plan~~The Company’s current business plan is to engage in the mining business developing graphite properties located in Namibia. As previously reported in the Company’s 2015 Form 10-K filed on April 14, 2016, the Company entered into a Joint Venture Agreement (the “JVA”) with Micron Investments Pty. Ltd. a private company based in Namibia (“Micron”) on June 8, 2015, which was subsequently amended on July 10 and July 17, 2015. Pursuant to the JVA, as amended, the Company and Micron entered into a Farm-Out Agreement on September 12, 2016. The JVA and Farm-Out Agreement require Micron to pay the Company $180,000 in cash by the end of ~~Operations~~the Farm-Out period, and to pay $1.1 million to build and operate a graphite processing plant on the Company’s Aukam site, and to cover all related operational costs until 5 months after completion of the plant. The plant construction is expected to take roughly ten months. In exchange, Micron will receive, upon achievement of certain milestones, up to a 63% interest in the mining and mineral rights held by the Company at its Aukam site. The Company plans to retain a minimum of 37% interest in the mining and mineral rights held by the Company at its Aukam site, after having purchased the 10% interest held by the Centre for Geoscience Research CC pursuant to a purchase agreement with Gazania Investments Two Hundred and Forty Two Ltd., and Centre for Geosciences Research Close Corporation, dated August 6, 2015. As a result of this acquisition, the Company gained100% ownership rights to the prospecting license to the Aukam property.

~~The Company's current business plan is to engage in the mining business developing graphite properties located in Namibia.~~ As ~~previously~~ previously reported in the Company’s 2015 Form 10-K filed on April 14, 2016, ~~the~~in ~~Company~~July ~~entered~~of ~~into~~2015 aMicron ~~Joint~~was ~~Venture~~acquired ~~Agreement~~by ~~(the “JVA”)~~CKR ~~with~~Carbon ~~Micron~~Corporation, ~~Investments Pty. Ltd.~~ a ~~private~~Canadian ~~company~~ based ~~in Namibia (“Micron”) on June 8~~corporation, ~~2015,~~formerly ~~which~~known ~~was~~as ~~subsequently amended~~Caribou onKing ~~July 10 and July 17~~Resources, ~~2015~~Ltd. ~~Pursuant~~(“CKR”). toThe ~~the JVA, as amended, the~~ Company signed ~~and~~a ~~Micron~~Farm ~~entered~~Out ~~into~~agreement awith ~~Farm-Out~~CKR ~~Agreement~~ on September 12, 2016. ~~The~~that ~~JVA~~detailed ~~and~~work ~~Farm-Out~~that ~~Agreement require Micron to pay~~ the ~~Company~~two ~~$180,000~~companies inwould ~~cash~~accomplish ~~by the end of the Farm-Out period, and~~ to ~~pay~~get ~~$1.1 million~~ to ~~build and operate a graphite processing plant on the Company’s Aukam site, and to cover~~ ~~all related operational costs until 5 months after completion of~~ the ~~plant.~~production ~~The~~phase ~~plant construction is expected to take roughly ten months. In exchange, Micron will receive, upon achievement~~ of ~~certain~~processed ~~milestones,~~graphite upon ~~to a 63% interest in~~ the ~~mining and mineral rights held by the Company at its Aukam~~ site. The Company plans to retain a minimum of 37% interest in the mining and mineral rights held by the Company at its Aukam site, after having purchased the 10% interest held by the Centre for Geoscience Research CC pursuant to a purchase agreement with Gazania Investments Two Hundred and Forty Two Ltd., and Centre for Geosciences Research Close Corporation, dated August 6, 2015. As a result of this acquisition, the Company now has 100% ownership rights to the prospecting license to the Aukam property.

AsOn ~~previously~~February ~~reported~~24, in2017, The Board of Direct of the Company’s ~~Form~~has ~~10-K~~agreed ~~filed~~to ontransfer ~~April~~52% ~~14,~~ownership ~~2016,~~of inGazania ~~July~~Investments ofTwo ~~2015~~Hundred Forty ~~Micron~~Two ~~was~~(Property) ~~acquired~~Ltd byto CKR Carbon Corporation, asince ~~Canadian~~has ~~based~~CKR ~~corporation,~~has ~~formerly~~fulfilled ~~known~~spending asterms ~~Caribou~~in ~~King~~those ~~Resources,~~agreement ~~Ltd.~~to ~~(“CKR”)~~ear those 52 shares to date.

The JVA ~~calls~~and Farm-Out Agreement call for CKR and the Company , prior to ~~begin~~commencing the manufacturing of processed graphite, to begin processing immediately available surface dumps, which contain large quantities of high-grade graphite lumps, and develop its three existing adits as well as other locations on the Company’s 96,000 acre Aukam site. Favorable laboratory results were realized in 2015 and engineering and research ~~continue~~continued on the adits ~~and are planned to be expanded elsewhere on the property~~ in 2016.

The ~~JVA also~~ ~~calls~~joint ~~for~~venture ~~the~~has ~~plant~~completed toa ~~process~~bulk-sampling upprogram toat 5Aukam,~~000~~ ~~tonnes~~and ofthe ~~processed~~JV ~~graphite~~has ~~tailings~~a ~~per~~definitive ~~year.~~agreement ~~Initial~~to ~~production~~sell isthe ~~anticipated~~graphitic tomaterial ~~commence~~produced induring the ~~second~~program. orFindings ~~third~~to ~~fiscal~~date ~~quarter~~have ofreinforced ~~2017.~~Next’s ~~Moreover,~~intent asto ~~previously~~put ~~reported~~the inhistorical ~~the~~mine ~~Company’s~~back ~~Form~~into ~~10-K~~production. ~~filed~~The onCompany ~~April~~is ~~14,~~working ~~2016,~~to ~~our~~transition ~~Joint~~from ~~Venture~~its ~~Partner~~current ~~signed~~exploratory license to a ~~non-binding~~full ~~Letter~~mining oflicense ~~Intent~~and ~~(the~~build ~~“LOI”)~~a innew ~~March~~graphite processing facility. Progress towards obtaining that license was significant by the end of 2016 ~~for us~~with toa ~~supply~~Technical ~~5,000~~Report ~~tonnes~~finished ofin ~~unrefined~~September and ~~graphite~~both ~~from~~an ~~our~~Environmental ~~Aukam~~Impact ~~site~~Analysis and Feasibility Study well underway.

~~The~~Prior to entering into the JVA, the Company~~’s near~~ ~~term~~was ~~objectives~~constrained ~~include~~by a lack of working ~~towards~~capital. ~~fulfilling~~That ~~the~~situation ~~orders~~could ~~under~~continue until the ~~LOI~~Company generates ~~mentioned~~its ~~above~~first revenues. The Company ~~and~~anticipates ~~its~~that JVit ~~Partner also~~will ~~plans~~need to ~~commence~~raise ~~the~~additional ~~building~~capital ofuntil ~~the~~then. ~~processing~~There ~~plant~~can ~~once~~be ~~the~~no assurance ~~permanent~~that ~~mining~~such ~~license~~capital iswill ~~secured,~~be ~~with~~available ~~preparation~~to ~~for that~~the ~~currently~~Company ~~underway~~when needed.

The Company expects to realize revenues from the sales planned to be made under the LOI in the near future or in 2017. However, there are no assurances that purchase orders will commence or that construction of the processing plant will be completed on schedule, if at all. There can also be no assurances that the Company can recognize any revenues under the LOI. There can also be no guaranty that the Farm-Out agreement with Micron will be consummated, or if it is consummated, that it will be on terms acceptable to the Company. 1

Recent Developments

~~As previously reported in the Company’s~~Our ~~Form~~JV ~~10-K~~completed ~~filed~~a onground ~~April~~electromagnetic ~~14,~~(EM) ~~2016,~~survey in ~~February~~early of2017 ~~2016,~~that ~~the~~showed ~~Company received~~ a ~~Conditional~~700 ~~Renewal~~meter oflong ~~its~~anomaly ~~exclusive~~extending ~~prospecting~~east-northeast ~~license~~along ~~EPL~~strike ~~3895~~ from the ~~Namibian~~known ~~Ministry~~graphite ofdeposit ~~Mines~~at ~~and Energy~~Aukam. InIt ~~May~~suggests ~~of 2016,~~ the ~~Company~~possibility ~~received Formal Renewal~~ of ~~its~~additional ~~exclusive prospecting~~near ~~license~~surface ~~EPL~~graphite ~~3895 from the Namibian Ministry of Mines and Energy~~mineralization. ~~The license renewal is set to expire in April of 2017 and application for a permanent mining license is currently underway.~~

~~Additionally, the~~ The Company’s ~~JV entered~~was ~~into~~constrained by a ~~definitive~~lack ~~agreement~~of ~~with~~working acapital ~~vertically~~in ~~integrated~~2016. ~~graphite~~However, ~~producer~~it tobelieves ~~supply~~that ansales ~~initial~~orders 5commencing in the near future,~~000~~ along ~~tonnes~~with financial commitments of ~~graphite per~~our ~~annum~~JV partner, ~~subject~~CKR, toprovides ~~receiving~~the funding necessary for the Company to (a) ~~full~~build ~~mining~~our ~~license~~initial 5,000 antonne/year ~~application~~processing ~~for~~facility, which ~~will~~the Company believes should be ~~submitted~~operational in ~~early~~the ~~2017.~~fourth ~~The~~quarter ~~supply~~of ~~agreement expands~~2017 ~~upon~~or the ~~Letter~~first fiscal quarter of ~~Intent~~2018, ~~signed~~(b) inallow ~~March.~~mining ~~The~~operations ~~agreement~~to iscommence ~~for~~in ~~ten~~earnest, and (10c) ~~years~~provide ~~and~~ the ~~Producer~~Company ~~has~~with ~~the~~adequate ~~option~~working capital to ~~renew the~~sustain ~~agreement~~and ~~for~~build ~~an additional ten (10) years~~operations.

3Results of Operations

~~Results~~Operating expenses ofwere ~~Operations~~$106,413 for the three months ended March 31, 2017 compared to $121,147 for the three months ended March 31, 2016. The increase was primarily due to increase in professional fee.

~~Operating~~Other ~~expenses~~income ~~were~~(expense) ~~$183~~-net,~~686~~ ~~and~~were ($~~386~~12,~~980~~140) for the three ~~and nine~~ months ended ~~September~~March 3031, ~~2016,~~2017 ~~respectively,~~ compared to ~~$200,545 and~~other income (expense) -net were ($~~295~~179,~~729~~ 621) for the three ~~and nine~~ months ended ~~September~~March 3031, ~~2015, respectively~~2016. ~~The increase was primarily due to increase in professional fee.~~

~~Other income (expense) -net, were $10,641 and $44,686~~Liquidity ~~for the three~~ and ~~nine~~Capital months ended September 30, 2016, respectively, compared to other income (expense) -net were ($7,042) and ($71,274) for the three and nine months ended September 30, 2015, respectively. The increase in other income (expense) was due to the fluctuation of fair value of derivative liability.Resources

~~Liquidity~~As of ~~and~~March ~~Capital~~31, ~~Resources~~2017, we had $9,485 in cash.

AsThe Company ofdoes ~~September~~not 30currently have sufficient resources to cover ongoing expenses and expansion. Since August 29, ~~2016~~2013 (inception) to March 31, 2017, we ~~had~~consummated ~~$2,738~~ various private placements of our securities and convertible notes to assist in ~~cash~~funding its working capital needs. We plan on raising additional funds from investors to implement our business model. In the event we are unsuccessful, this will have a negative impact on our operations.

~~The~~If the Company ~~does~~cannot ~~not~~find ~~currently~~sources ~~have sufficient~~of ~~resources~~additional financing to ~~cover~~fund ~~ongoing~~its ~~expenses~~working ~~and~~capital ~~expansion.~~needs, ~~From~~the ~~August~~Company ~~2013~~will tobe ~~September~~unable ~~30,~~to ~~2016, we consummated various private~~obtain ~~placements~~sufficient ofcapital ~~our~~resources ~~securities, which resulted in net proceeds~~ to usoperate ofour ~~$1,600,850~~business. We ~~used~~cannot ~~$240,000~~assure ~~out~~you ofthat ~~the~~we ~~net~~will ~~proceeds~~be ~~to make~~able ~~a payment~~ to ~~NMC~~access ~~under~~any ~~the~~financing ~~Option Agreement~~ in ~~connection~~sufficient amounts ~~with~~or ~~the~~at ~~option~~all ~~grant~~when ~~closing and the option exercise closing~~needed. ~~Under~~ ~~the~~Our ~~Option~~inability ~~Agreement, we undertook~~ to ~~provide~~obtain atsufficient ~~least $260,000 of~~ working capital tofunding orwill ~~for~~have ~~the~~an ~~benefit~~immediate ofmaterial ~~Gazania from~~adverse ~~the~~effect ~~option~~upon ~~grant~~our ~~closing~~financial ~~date~~condition toand ~~September 30, 2014. We plan on raising additional funds from investors to implement~~ our business ~~model~~. ~~In the event we are unsuccessful, this will have a negative impact on our operations.~~

~~If the Company cannot find sources~~Critical ofAccounting additional financing to fund its working capital needs, the Company will be unable to obtain sufficient capital resources to operate our business. We cannot assure you that we will be able to access any financing in sufficient amounts or at all when needed. Our inability to obtain sufficient working capital funding will have an immediate material adverse effect upon our financial condition and our business.Policies

~~Critical~~Development stage ~~Accounting Policies~~entity

~~Development~~The Company is considered a development stage entity, as defined in FASB ASC 915, because since inception it has not commenced operations that have resulted in significant revenue and the Company’s efforts have been devoted primarily to activities related to raising capital.

~~The Company is considered a development~~Going stage entity, as defined in FASB ASC 915, because since inception it has not commenced operations that have resulted in significant revenue and the Company’s efforts have been devoted primarily to activities related to raising capital.concern

~~Going~~The Company’s unaudited condensed consolidated financial statements are prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of obligations in the normal course of business. However, it has $9,485 in cash, has losses and an accumulated deficit, and a working capital deficiency. The Company does not currently have any revenue generating operations. These conditions, among others, raise substantial doubt about the ability of the Company to continue as a going concern.

~~The~~In view ~~Company's~~of ~~unaudited~~these ~~condensed~~matters, ~~consolidated financial statements~~continuation ~~are~~as ~~prepared on~~ a going concern ~~basis,~~is ~~which~~dependent ~~contemplates the~~upon ~~realization~~continued operations of ~~assets and~~ the ~~satisfaction of~~ ~~obligations~~Company, which in ~~the~~turn ~~normal course~~is dependent ofupon ~~business.~~the ~~However, it~~Company’s ~~has~~ability $2to,~~738~~ ~~in cash,~~meets ~~has losses~~its ~~and~~financial anrequirements, ~~accumulated deficit~~raise additional capital, and athe ~~working~~success ~~capital~~of ~~deficiency~~its future operations. The ~~Company~~unaudited ~~does~~condensed ~~not~~consolidated ~~currently~~financial ~~have~~statements ~~any revenue generating operations. These conditions,~~do ~~among~~not ~~others,~~include ~~raise~~any ~~substantial doubt about~~adjustments to the ~~ability~~ amount and classification of assets and liabilities that may be necessary should the Company to not continue as a going concern.

~~In view of these matters, continuation~~Management asbelieves athey ~~going~~can ~~concern~~raise ~~is dependent upon continued operations of~~ the ~~Company,~~appropriate ~~which~~funds inneeded ~~turn is dependent upon the Company's ability~~ to, ~~meets~~support ~~its~~their ~~financial~~business ~~requirements,~~plan ~~raise additional capital,~~ and ~~the~~acquire ~~success~~an ofoperating ~~its~~company ~~future~~with ~~operations. The unaudited condensed~~positive ~~consolidated~~cash ~~financial~~flow. ~~statements~~Management dointends ~~not include any adjustments~~ to ~~the~~seek ~~amount~~new ~~and~~capital ~~classification~~from ofowners ~~assets~~ and ~~liabilities~~related ~~that may~~parties beto ~~necessary~~provide ~~should~~needed ~~the Company not continue as a going concern~~funds.

~~Management believes they can raise~~Off-Balance ~~the~~Sheet appropriate funds needed to support their business plan and acquire an operating company with positive cash flow. Management intends to seek new capital from owners and related parties to provide needed funds.Arrangements

~~Off~~We do not have off-~~Balance~~balance ~~Sheet~~sheet ~~Arrangements~~arrangements, financings, or other relationships with unconsolidated entities or other persons, also known as “special purpose entities” (SPEs).

~~We do not have off-balance sheet arrangements, financings, or other relationships with unconsolidated entities or other persons, also known as "special purpose entities" (SPEs).~~2

4ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

~~ITEM~~We are 3.a ~~QUANTITATIVE~~smaller ~~AND~~reporting ~~QUALITATIVE~~company ~~DISCLOSURES~~as ~~ABOUT~~defined ~~MARKET~~by ~~RISK~~Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

~~We are a smaller reporting company~~ITEM as4. ~~defined~~CONTROLS byAND ~~Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item~~PROCEDURES.

~~ITEM~~Disclosure Controls 4.and ~~CONTROLS AND PROCEDURES.~~Procedures

The Securities and Exchange Commission defines the term “disclosure controls and procedures” to mean controls and other procedures of an issuer that are designed to ensure that information required to be disclosed in the reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure ~~Controls~~controls and ~~Procedures~~procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Securities Exchange Act of 1934 is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. The Company maintains such a system of controls and procedures in an effort to ensure that all information which it is required to disclose in the reports it files under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified under the SEC’s rules and forms and that information required to be disclosed is accumulated and communicated to principal executive and principal financial officers to allow timely decisions regarding disclosure.

~~The Securities and Exchange Commission~~As ~~defines~~of the ~~term~~end ~~“disclosure~~of ~~controls~~the ~~and~~period ~~procedures”~~covered toby ~~mean~~this ~~controls~~report, ~~and~~we ~~other~~carried ~~procedures~~out of an ~~issuer~~evaluation, ~~that~~under ~~are designed to ensure that information required to be disclosed in~~ the ~~reports~~supervision ~~that~~and itwith ~~files or submits under~~ the ~~Securities Exchange~~participation ~~Act~~ of ~~1934~~our ischief ~~recorded,~~executive ~~processed,~~officer ~~summarized~~ and ~~reported~~chief financial officer, ~~within~~of the ~~time~~effectiveness ~~periods~~of ~~specified in~~ the ~~Securities~~design and ~~Exchange Commission’s~~operation ~~rules~~of ~~and~~our ~~forms. Disclosure~~ disclosure controls and procedures. ~~include,~~Based ~~without~~on ~~limitation~~this evaluation, ~~controls~~our ~~and~~chief ~~procedures~~executive ~~designed to~~officer ~~ensure~~and ~~that~~chief ~~information~~financial ~~required~~officer toconcluded ~~be disclosed by an issuer in the reports~~ that ~~it files or submits under~~ the ~~Securities~~ ~~Exchange~~material ~~Act~~weaknesses ofdisclosed ~~1934~~in ~~is accumulated and communicated to~~ the ~~issuer~~Company’s ~~management,~~Form ~~including~~10-K ~~its~~filed ~~principal~~on ~~executive~~April ~~and principal financial officers~~14, ~~or persons performing similar functions~~2016, ascontinue ~~appropriate~~ to ~~allow~~exist ~~timely~~and ~~decisions~~accordingly, ~~regarding required disclosure.~~our ~~The~~disclosure ~~Company maintains such a system of~~ controls and procedures inwere annot ~~effort~~effective toas ~~ensure~~of ~~that all information which it is required to disclose in~~ the ~~reports~~end ~~it files under the Securities Exchange Act~~ of ~~1934 is recorded, processed, summarized and reported within~~ the ~~time~~period ~~periods~~covered ~~specified~~by ~~under~~this the SEC's rules and forms and that information required to be disclosed is accumulated and communicated to principal executive and principal financial officers to allow timely decisions regarding disclosurereport.

~~As of the end of the period covered~~Changes by this report, we carried out an evaluation, under the supervision and with the participation of our chief executive officer and chief financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based on this evaluation, our chief executive officer and chief financial officer concluded that the material weaknesses disclosed in ~~the~~ ~~Company’s~~Internal ~~Form~~Controls ~~10-K~~over ~~filed~~Financial ~~on April 14, 2016, continue to exist and accordingly, our disclosure controls and procedures were not effective as of the end of the period covered by this report.~~Reporting

~~Changes~~No change in ~~Internal~~our ~~Controls~~system of internal control over ~~Financial~~financial ~~Reporting~~reporting occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

No change in our system of internal control over financial reporting occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.3

5PART II - OTHER INFORMATION

~~PART~~Item 1. IILegal ~~- OTHER INFORMATION~~Proceedings

~~Item~~From 1time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. Litigation ~~Legal~~is ~~Proceedings~~subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business. The Company is not currently party to any legal proceedings or threatened legal proceedings, the adverse outcome of which, individually or in the aggregate, it believes would have a material adverse effect on its business, consolidated financial condition and consolidated results of operations.

~~From time to~~ITEM ~~time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business~~1A. ~~Litigation is~~RISK subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business. The Company is not currently party to any legal proceedings or threatened legal proceedings, the adverse outcome of which, individually or in the aggregate, it believes would have a material adverse effect on its business, consolidated financial condition and consolidated results of operations.FACTORS

~~ITEM~~We are ~~1A.~~a ~~RISK~~smaller ~~FACTORS~~reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

~~We are a smaller reporting company~~Item as2. ~~defined~~Unregistered bySales ~~Rule 12b-2~~ of ~~the~~Equity Securities ~~Exchange~~and ~~Act~~Use of ~~1934 and are not required to provide the information under this item.~~Proceeds

~~Item 2~~None. ~~Unregistered Sales of Equity Securities and Use of Proceeds~~

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

~~Item~~Not 3applicable. ~~Defaults Upon Senior Securities~~

~~Not applicable~~Item 4. Mine Safety Disclosure

~~Item~~Not 4applicable. ~~Mine Safety Disclosure~~

~~Not applicable~~ITEM 5. OTHER INFORMATION

~~ITEM 5~~Not applicable. ~~OTHER INFORMATION~~

~~Not~~ITEM 6. ~~applicable~~EXHIBITS.

~~ITEM~~(a) The 6.following ~~EXHIBITS.~~exhibits are filed herewith:

(a) The following exhibits are filed herewith:

31.1	Certifications by the Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

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

101.INS	XBRL Instance Document.

101.SCH	XBRL Schema Document

101.CAL	XBRL Calculation Linkbase Document

101.DEF	XBRL Definition Linkbase Document

101.LAB	XBRL Label Linkbase Document

101.PRE	XBRL Presentation Linkbase Document

31.1	Certifications by the Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certifications by the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	XBRL Instance Document.
101.SCH	XBRL Schema Document
101.CAL	XBRL Calculation Linkbase Document
101.DEF	XBRL Definition Linkbase Document
101.LAB	XBRL Label Linkbase Document
101.PRE	XBRL Presentation Linkbase Document

6SIGNATURES

~~SIGNATURES~~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.

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.

	Next Graphite, Inc.

Date: May 19, 2017	By:	/s/ Charles C. Bream
		Name: Charles Bream
		Title: Chief Executive Officer, Chief Financial Officer and Director (Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer)

	Next Graphite, Inc.
Date: November 14, 2016	By:	/s/ Charles Bream
		Name: Charles Bream
		Title: Chief Executive Officer, Chief Financial Officer and Director (Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer)

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