UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark One)

x Annual Report Pursuant To Section 13 Or 15(d) Of The Securities Exchange Act Of 1934

For the fiscal year ended October 31, ~~2008~~2009

¨ Transition Report Under Section 13 Or 15(d) Of The Securities Exchange Act Of 1934

For the transition period from _____ to _____

COMMISSION FILE NUMBER 000-49995

~~PRINCIPAL~~Gazoo ~~CAPITAL~~Energy ~~GROUP~~Group, ~~INC~~ Inc.

(Name of small business issuer in its charter)

NEVADA		98-0389183
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
Ste. 100 – 9375 E. Shea Blvd.
Scottsdale, AZ 85260
(Address of principal executive offices)

2569 McCabe Way

Irvine CA 92614-6243

(Address of principal executive offices)

Issuer’s Telephone Number

~~480 214~~(949) ~~9588~~379 1210

~~Fortuna Gaming~~Principal ~~Corp~~Capital Group, Inc.

(forrmer name, if changed since last report)

Securities registered under Section 12(b) of the Exchange Act:		NONE.
Securities registered under Section 12(g) of the Exchange Act:		Common Stock, Par Value $0.001 per share.

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act

Yes [ ] No [ X ]

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act

Yes [ ] No [ X ]

Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 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 ~~check~~if ~~mark~~disclosure ~~whether~~of delinquent filers in response to Item 405 of Regulation S-B is not contained in this form and no disclosure will be contained, to the best of registrant’s isknowledge, ain ~~shell~~definitive ~~company~~proxy ~~(as~~or ~~defined~~information statements incorporated by reference in ~~Rule 12b-2~~Part III of this Form 10-K or any amendment to the ~~Exchange~~Form ~~Act)~~10-K. ~~Yes~~ [ X 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 ]

State issuer’s revenues for its most recent fiscal year. $Nil

1State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was sold, or the average bid and asked price of such common equity, as of a specified date within the past 60 days. (See definition of an affiliate in Rule 12b-2 of the Exchange Act.): Aggregate market value of the 9,539,287 common voting shares held by non-affiliates of the registrant was $2,098,643 based on the bid price of $.22.at February 11, 2010..

State the ~~aggregate~~ ~~market~~number ~~value~~ of ~~the~~shares ~~voting~~outstanding ~~and~~of ~~non-voting~~each ~~common~~of ~~equity held by non-affiliates computed by reference to~~ the ~~price~~issuer's atclasses ~~which the common equity was sold, or the average bid and asked price~~ of ~~such~~ common equity, as of ~~a specified date within~~ the ~~past~~latest 60practicable ~~days. (See definition of affiliate in Rule 12b-2 of the Exchange Act.)~~date: ~~Aggregate market value of the 1~~ 48,~~244~~539,287 common ~~voting~~shares ~~stock~~issued ~~held~~and byoutstanding ~~non-affiliates~~as of February ~~the registrant was $24~~11,~~876~~ ~~based on the bid price of $20~~2010.~~at January 19, 2009~~.

State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date: 39,234 common shares issued and outstanding as of January 19, 2009.

Transitional Small Business Disclosure Format (Check one): Yes [ ] No [ X ]

2Gazoo Energy Group, Inc.

PRINCIPAL CAPITAL GROUP, INC.

ANNUAL REPORT ON FORM 10-K

INDEX

		Page
PART I
Item 1.	Description Of Business.	4
Item 1A.	Risk Factors	5
Item 2.	Description Of Property.	8
Item 3.	Legal Proceedings.	8
Item 4.	Submission Of Matters To A Vote Of Security Holders.	8
PART II
Item 5.	Market For Common Equity And Related Stockholder Matters.	8
Item 6.	Management's Discussion And Analysis Or Plan Of Operation.	9
Item 7.	Management's Discussion And Analysis Or Plan Of Operation.	9
Item 7.	Consolidated Financial Statements.	13
Item 8.	Consolidated Financial Statements.	13
Item 8.	Changes In And Disagreements With Accountants On Accounting And Financial Disclosure.	27
Item 9.	Changes In And Disagreements With Accountants On Accounting And Financial Disclosure.	27
Item 8A.	Controls and Procedures.	27
Item 9A.	Controls and Procedures.	27
PART III
Item 9.	Directors, Executive Officers, Promoters And Control Persons; Compliance With Section 16(A) Of The Exchange Act.	28
Item 10.	Directors, Executive Officers, Promoters And Control Persons; Compliance With Section 16(A) Of The Exchange Act.	28
Item 10.	Executive Compensation.	30
Item 11.	Executive Compensation.	29
Item 11.	Security Ownership Of Certain Beneficial Owners And Management and Related Stockholder Matters.	31
Item 12.	Security Ownership Of Certain Beneficial Owners And Management and Related Stockholder Matters.	31
Item 12.	Certain Relationships And Related Transactions.	31
Item 13.	Certain Relationships And Related Transactions.	31
Item 13.	Exhibits.	32
Item 14.	Principal Accountant Fees and Services.	32
Item 15.	Exhibits.	32
Signatures		33

PART I

ITEM 1.

BUSINESS.

CORPORATE ORGANIZATION – History and Development

~~Principal Capital~~On ~~Group~~November 7, ~~Inc.~~2008 (“the ~~“Company”)~~board ~~formerly~~of ~~Fortuna~~directors ~~Gaming~~changed ~~Corp.~~the isname ~~a Development~~of ~~Stage~~the ~~Company,~~company ~~which~~from ~~had~~Fortuna anGaming Corp. ~~interest~~to inPrincipal ~~investing~~Capital Group, inInc. ~~the~~and on~~-line~~ ~~and wireless~~February ~~gaming~~13, ~~entertainment sector. In June 2005~~2009, wethe ~~brought~~shareholders inagreed ~~new management and a team of consultants~~ to ~~re-organize~~change the ~~company~~name ~~and~~to ~~seek~~Gazoo ~~out potential~~Energy ~~investments and technology partners within this sector. To date~~Group, ~~we have not generated any revenues or processed any transactions~~Inc.

OnGazoo ~~June 28~~Energy Group, ~~2005~~Inc. ~~we entered into a share exchange agreement with Fortuna Gaming~~ (~~UK) Limited~~“the (“~~Fortuna~~Company”) ~~and~~formerly aPrincipal ~~Certificate~~Capital ofGroup, ~~Amendment~~Inc.. ~~was~~is ~~filed~~a ~~with~~Development ~~the~~Stage ~~Secretary of~~Company, ~~State~~which inis ~~Nevada~~engaged toin ~~change~~ the ~~name~~acquisition ofand ~~our~~development ~~Company~~of ~~from~~green ~~MoneyFlow~~energy ~~Capital Corporation~~technologies, toranging ~~Fortuna~~from ~~Gaming~~wind ~~Corp. Fortuna~~energy ~~Gaming~~to ~~(UK)~~natural ~~Limited.and Fortuna~~green ~~Gaming Corp~~products. ~~both~~The ~~headquartered~~company’s inimmediate ~~London,~~goal is ~~England,~~to ~~wholly~~be ~~owned~~an incubator ~~subsidiaries~~within of the ~~Company~~industry ~~were~~by ~~incorporated~~partnering towith ~~acquire~~other ~~and~~green ~~operate~~technology ~~online gaming~~ companies~~. Fortuna~~ ~~Gaming~~and ~~(UK) Limited.was incorporated on August 31~~inventors, ~~2005. Fortuna~~with ~~Gaming~~potential ~~Corp.~~to ~~Limited~~make ~~was~~a ~~incorporated~~difference ~~on February~~in 7,the ~~2006. To~~green ~~date,~~energy ~~both Fortuna Gaming (UK) Limited and Fortuna Gaming Corp~~industry. ~~Limited have not generated any revenues.~~

Fortuna’s acquisition strategy was to acquire complimentary medium sized internet gaming companies operating in legal jurisdictions which would have provided a rich entertainment experience for customers while adding shareholder value. In addition to seeking out acquisitions, the Company licensed gaming software from third party software providers.

Although the Company entered into a licensing arrangement with G.I. ENTERPRISES, LTD., of KN Nevis, West Indies on November 8, 2006, with enactment of recent legislation in the US prohibiting or otherwise restricting the use of electronic payment processing of online bets from US Citizens, management is now reassessing if it is feasible from an economic, legal and risk perspective to continue its online gaming efforts versus pursuing other business initiatives outside the gaming industry.

The company has not generated any revenue and is looking to establish a new business.

On November 7, 2008 the board of directors resolved to change the name of the company to Principal Capital Group, Inc.

Corporate History

WeThe ~~were~~ company was incorporated on March 14, 2002 under the laws of the State of Nevada as North American General Resources Corporation and ~~were~~was engaged, primarily, ~~engaged~~ in the acquisition and exploration of mining properties until November 2004.

On November 29, 2004 a Certificate of Amendment was filed with the Secretary of State in Nevada to change the name of the Company from North American General Resources Corporation to MoneyFlow Capital Corporation. At that time we changed our business to providing financial services, including operating a foreign exchange service and providing short-term loans and check cashing from retail premises.

North American General Resources Corp.

From March 2002 until October 2004 we were engaged in the exploration and acquisition of mining properties but never realized any revenues from its planned operations.

MoneyFlow Capital Corp.

On November 11, 2004, previous management entered into a share exchange agreement with MoneyFlow Capital Corp., (“MoneyFlow Canada”) a company incorporated under the laws of British Columbia, Canada, whereby we purchased all of the issued and outstanding shares of MoneyFlow Capital Corp. in exchange for the issuance of 6,000,000 shares of our Company and the assumption of two debt obligations amounting to approx $2,500,000. As a result of entering into this Agreement, we changed our name from North American General Resources Corp. to MoneyFlow Capital Corporation (“MoneyFlow Nevada”) and our nature of business to providing financial services, including operating a foreign exchange service and providing short-term loans and cheque cashing from retail premises through its subsidiary.

Under the terms of the Agreement the former management paid a total of $1,473,336 for financial services software during December 2004. However, on February 5, 2005 they defaulted on the remaining payment obligations of $1,040,140 and the parties agreed to rescind the Agreement by returning the 6,000,000 shares to treasury in exchange for giving up the shares in MoneyFlow Canada. As a result of the termination of the agreement, the investment of $1,473,336 was written off during fiscal 2005.

This business venture was abandoned by ~~the~~ previous management and board of directors and after their resignations as directors and officers of the Company, the Company underwent a re-organization by the ~~current~~ management team and consultants.

This business, Fortuna Gaming Corp., was entered into on June 28, 2005 and because of changes in the United States statutes was subsequently abandoned.

~~This business~~.The ~~was~~company ~~entered~~changed ~~into~~its onname ~~June~~to 28Principal Capital Group, ~~2005~~Inc. ~~and~~on November ~~because~~7, 2008 with the intention of ~~changes~~becoming ina subsidiary of a BDC. The new shareholders defaulted on their obligation under the ~~United States~~Stock ~~statutes~~Purchase ~~was~~Agreement ~~subsequently~~and ~~abandoned~~the new officers and directors were replaced by the previous board and officers.

Principal Capital Group, Inc.

The company changed its name on November 7, 2008 with the intention of becoming a subsidiary of a BDC. The new shareholders defaulted on their obligation under the Stock Purchase Agreement and the new officers and directors were replaced by the previous board and officers, who are seeking new opportunities for the company.

Patents and Trademarks

We do not own, either legally or beneficially, any patents or trademarks.

Employees

We have no employees as of the date of this Annual Report. We conduct our business largely through agreements with consultants and arms-length third parties.

ITEM 1A.

RISK FACTORS

Forward-looking statements in this report are made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The Company wishes to advise readers that actual results may differ substantially from such forward-looking statements. Forward-looking statements include underlying assumptions and other statements that are other than historical facts. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the statements, including, but not limited to, the following: the ability of the Company to provide for its obligations, to provide working capital needs from operating revenues, to obtain additional financing needed for any future acquisitions, to meet competitive challenges and technological changes, and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission (“SEC”).

The Company has no formal lease on the premises out of which it currently operates.

The Company currently shares a small office facility located at ~~Ste.100,~~2569 ~~9375~~McCabe ~~East Shea~~Way ~~Blvd.,~~Irvine ~~Scottsdale AZ~~CA. No formal lease or other agreement exists. Space is being provided to the Company at no cost.

The Company may be asked to leave and vacate the premises at any time. ~~The Company’s current financial position prevents it from looking for other options to house its operations.~~ If the Company is asked to leave the premises it could be materially detrimental to the Company’s operations. The Company is continuing its search for new premises and anticipates finalizing a lease.

No established market for our products.

There is no established market for our products. These products have never been sold before and the risk exists for the establishment of a new market. We are counting on a new market developing and that the new market will accept our products as opposed to other alternatives. The new market may not develop or may not develop in time to allow us to continue our operations.

The Company’s lack of operating history.

The Company has had no operations since its attempt to become involved in the on-line gaming industry. We have insufficient operating history upon which an evaluation of our future performance and prospects can be made.

Our business plan is unproven.

We have a limited operating history, with no track record to determine if our planned business will be financially viable or successful. Our projected revenues from our business may fall short of our targeted goals and our profit margins may likewise not be achieved. Until we are actually in the marketplace for a demonstrable period of time, it is impossible to determine if our business strategies will be successful.

The Company will need financing which may not be available.

The Company has not established a source of equity or debt financing and will require such financing to establish our business and implement our strategic plan. If we are unable to obtain financing or if the financing we do obtain is insufficient to cover any operating losses we may incur, we may substantially curtail or terminate our operations or seek other business opportunities through strategic alliances, acquisitions or other arrangements that may dilute the interests of existing stockholders.

Shareholders may be diluted significantly through our efforts to obtain financing and satisfy obligations.

We have no committed source of financing. Wherever possible, we will attempt to use non-cash consideration to satisfy obligations. In many instances, we believe that the non-cash consideration will consist of shares of our stock. In addition, if a trading market develops for our common stock, we may attempt to raise capital by selling shares of our common stock, possibly at a discount to market. These actions will result in dilution of the ownership interests of existing shareholders, and that dilution may be material.

~~Principal Capital~~Gazoo Energy Group, Inc.’s Common Stock has limited ~~prior~~ previous trading market or liquidity, and there can be no assurances that any trading market will develop.

There is a limited trading market for our Common Stock. No assurance can be given that an orderly trading market or any trading market will ever develop for our Common Stock.

In addition, ~~Principal~~Gazoo ~~Capital~~Energy Group, Inc. common stock is unlikely to be followed by any market analysts, and there may be few institutions acting as market makers for the common stock. Either of these factors could adversely affect the liquidity and trading price of our common stock. Also, the stock market in general has experienced extreme price and volume volatility that has especially affected the market prices of securities of many companies. At times, this volatility has been unrelated to the operating performance of particular companies. These broad market and industry fluctuations may adversely affect the trading price of the common stock, regardless of the Company’s actual operating performance.

The trading price of ~~Principal~~Gazoo ~~Capital~~Energy Group, Inc. Common Stock is likely to be subject to significant fluctuations.

There can be no assurance as to the prices at which Principal Capital Group, Inc. common stock will trade, if any trading market develops at all. Until the Common Stock is fully distributed and an orderly market develops, the price at which such stock trades may fluctuate significantly and may be lower or higher than the price that would be expected for a fully distributed issue. Prices for the Common Stock will be determined in the marketplace and may be influenced by many factors, including:

There can be no assurance as to the prices at which Gazoo Energy Group, Inc. common stock will trade, if any trading market develops at all. Until the Common Stock is fully distributed and an orderly market develops, the price at which such stock trades may fluctuate significantly and may be lower or higher than the price that would be expected for a fully distributed issue. Prices for the Common Stock will be determined in the marketplace and may be influenced by many factors, including:

the depth and liquidity of the market,
developments affecting the business of Principal Capital Group generally and the impact of those factors referred to below in particular,
investor perception of Principal Capital Group, and
General economic and market conditions.

We may be exposed to potential risks resulting from new requirements under Section 404 of the Sarbanes-Oxley Act of 2002.

In June 2003, the United States Securities and Exchange Commission (“SEC”) adopted final rules under Section 404 of the Sarbanes-Oxley Act of 2002 (“Section 404”) , as amended by SEC Release No. 33-8934 on June 26, 2008. Pursuant to Section 404 of the Sarbanes-Oxley Act of 2002, we will be required, commencing with our annual report for the fiscal year ending October 31, 2010, to include in our annual report our assessment of the effectiveness of our internal control over financial reporting as of the end of fiscal year 2010. The internal control report must include a statement

Of management's responsibility for establishing and maintaining adequate internal control over our financial reporting;
Of management's assessment of the effectiveness of our internal control over financial reporting as of year end;
Of the framework used by management to evaluate the effectiveness of our internal control over financial reporting; and
that our independent accounting firm has issued an attestation report on management's assessment of our internal control over financial reporting, which report is also required to be filed.

Furthermore, our independent registered public accounting firm will be required to attest to whether our assessment of the effectiveness of our internal control over financial reporting is fairly stated in all material respects and separately report on whether it believes we have maintained, in all material respects, effective internal control over financial reporting as of October 31, 2010. We have not yet completed our assessment of the effectiveness of our internal control over financial reporting. We expect to incur additional expenses and diversion of management's time as a result of performing the system and process evaluation, testing and remediation required in order to comply with the management certification and auditor attestation requirements.

We do not have a sufficient number of employees to segregate responsibilities and may be unable to afford increasing our staff or engaging outside consultants or professionals to overcome our lack of employees. During the course of our testing, we may identify other deficiencies that we may not be able to remediate in time to meet the deadline imposed by the Sarbanes-Oxley Act for compliance with the requirements of Section 404. In addition, if we fail to achieve and maintain the adequacy of our internal controls, as such standards are modified, supplemented or amended from time to time, we may not be able to ensure that we can conclude on an ongoing basis that we have effective internal controls over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act. Moreover, effective internal controls, particularly those related to revenue recognition, are necessary for us to produce reliable financial reports and are important to help prevent financial fraud. If we cannot provide reliable financial reports or prevent fraud, our business and operating results could be harmed, investors could lose confidence in our reported financial information, and the trading price of our common stock, if a market ever develops, could drop significantly.

ITEM 2.

PROPERTIES.

We currently do not own any property.

ITEM 3.

LEGAL PROCEEDINGS.

We know of no material, existing or pending legal proceedings against our Company, nor are we involved as a plaintiff in any material proceeding or pending litigation. There are no proceedings in which any officer or any of our directors or affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our interest.

ITEM 4.

SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

On November 7, 2008, the shareholders approved the following items: 1) name change from Fortuna Gaming Corp. to Principal Capital Group, Inc., 2) a 1 for 2500 reverse split of all issued and outstanding shares .On December 19, 2008 the shareholders voted, as a result of the purchasers’ failure to complete their payment obligations, to remove the new directors and officers and re-appoint Alan Miller as the sole director and officer of the company. On February 13, 2009 the shareholders approved a name change to Gazoo Energy Group, Inc.

PART II

ITEM 5.

MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS.

1st Quarter 2007	$	550	$	175
2nd Quarter 2007		1,100		225
3rd Quarter 2007		500		275
4th Quarter 2007		575		175
1st Quarter 2008		400		175
2nd Quarter 2008		250		125
3rd Quarter 2008		125		75
4th Quarter 2008		100		25

Our common shares are quoted on the OTC Bulletin Board under the symbol “gazu”. The following table indicates the high and low bid prices of our common shares during the calendar periods indicated:

1st Quarter 2009	$	.01	$	.008
2nd Quarter 2009		1.05		.26
3rd Quarter 2009		.65		.06
4th Quarter 2009		.55		.20
1st Quarter 2008		.16		.07
2nd Quarter 2008		.10		.05
3rd Quarter 2008		..05		.03
4th Quarter 2008		.04		.01

The source of the high and low bid information above was obtained from Yahoo! Finance and reflect inter-dealer prices, without retail mark-up, markdown or commission and may not necessarily represent actual transactions.

The following changes to our Company’s issued and outstanding share capital and trading symbol have taken place:

November 29, 2004	Symbol change: NAGC	New Symbol: MFCC
June 1, 2005	Consolidation	1 share for every 25 shares previously held
June 28, 2005	Symbol change: MFCC	New Symbol: FGAM
July 5, 2005	Consolidation	1 share for every 10 shares previously held
September 16, 2005	Stock Split	2 shares for every 1 share previously held
November 7,2008	Symbol change	New Symbol PCGI
November 10, 2008	Consolidation	1 share for every 2,500 previously held

Holders of Our Common Stock

On January 1931, 2009 we had 7393 registered shareholders holding 39 48,~~234~~539,287 shares of our common stock.

Dividends

There are no restrictions in our articles of incorporation or bylaws that prevent us from declaring dividends. The Nevada Revised Statutes, however, do prohibit us from declaring dividends where, after giving effect to the distribution of the dividend, we would not be able to pay our debts as they become due in the usual course of business; or our total assets would be less than the sum of our total liabilities plus the amount that would be needed to satisfy the rights of shareholders who have preferential rights superior to those receiving the distribution.

We have not declared any dividends and we do not plan to declare any dividends in the foreseeable future.

Recent Sales of Unregistered Securities

During the current fiscal year, we did not complete any sales of securities that were not registered pursuant to the Securities Act, however on November 18, 2008 the company did issue 12,000 common shares in payment of a $30,000 debt.

~~ITEM~~On 6January 21, 2009, the Company issued 5,500,000 shares to a creditor in exchange for the conversion of $60,000 in debt. The ~~MANAGEMENT’S~~debt ~~DISCUSSION~~was ~~AND~~converted ~~ANALYSIS~~at ORthe ~~PLAN~~option OFof ~~OPERATION~~the creditors, and will represent a reduction to the outstanding debt owed by the Company to its creditors.

On May 1, 2009 the company issued 9,000,000 shares of common stock to a note holder to liquidate a $90,000 note payable.

On May 1, 2009, the company issued 30,000,000 shares to acquire a business. Due diligence is on-going and the shares are being held by the company.

On November 13, 2009 the company issued 4,000,000 shares to acquire a second business. Due diligence is on-going and the shares are being held by the company.

ITEM 7.

MANAGEMENT’S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.

PLAN OF OPERATIONS

Principal Capital Group, Inc.., with inactive subsidiaries incorporated in the United Kingdom (Fortuna Gaming, Inc. (UK) Limited and Fortuna Gaming Corp. Limited) was initially established to pursue acquisitions in the online gaming business. With enactment of recent legislation in the US prohibiting or otherwise restricting the use of electronic payment processing of online bets from US citizens, management is now reassessing the long term strategy of continuing its online gaming efforts or to entertain other business initiatives.

Management will be focusing its efforts to restructure its operations and pursue other business opportunities, joint ventures and acquisitions.

OPERATING AND FINANCIAL REVIEW AND PROSPECTS

~~The following~~Gazoo’s ~~discussion~~business ~~and~~plan ~~analysis~~is ~~explains~~to ~~trends~~act inas ~~our~~an ~~financial~~incubator ~~condition~~for ~~and results~~companies offocused ~~operations~~on ~~for~~green ~~the~~technology ~~two~~ranging ~~fiscal~~from ~~years~~wind ~~ended~~energy ~~October~~to ~~31,~~natural ~~2008~~green ~~and 2007~~products. ~~This~~ These ~~discussion~~companies ~~and~~are ~~analysis~~already ofin the ~~results~~green oftechnology ~~operations~~sector and ~~financial condition~~have ~~should~~long beterm ~~read~~growth inpotential ~~conjunction~~and ~~with~~have ~~our~~progressed ~~audited~~to ~~financial statements and~~ the ~~related~~maturity ~~notes,~~of ashaving ~~well~~immediate ~~as statements made elsewhere in this Form 10-K~~revenue.

The following discussion and analysis explains trends in our financial condition and results of operations for the two fiscal years ended October 31, 2008 and 2009. This discussion and analysis of the results of operations and financial condition should be read in conjunction with our audited financial statements and the related notes, as well as statements made elsewhere in this Form 10-K.

Critical Accounting Policies

Our consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States. Because a precise determination of many assets and liabilities is dependent upon future events, the preparation of consolidated financial statements for a period necessarily involves the use of estimates which have been made using careful judgment. In determining estimates of net recoverable amounts and net realizable values, or whether there has been a permanent impairment in value for accounts receivable, inventories, capital assets, investments, patent rights and other assets, we rely on assumptions regarding applicable industry performance and prospects, as well as general business and economic conditions that prevail and are expected to prevail. Assumptions underlying asset valuations are limited by the availability of reliable comparable data and the uncertainty of predictions concerning future events.

By nature, asset valuations are subjective and do not necessarily result in precise determinations. Should the underlying assumptions change, the estimated net recoverable amounts and net realizable values may change by a material amount.

The consolidated financial statements have, in management’s opinion, been properly prepared within reasonable limits of materiality and within the framework of the significant accounting policies summarized below:

Capital Assets and Amortization

Software and Website Rights are recorded at cost and amortized on a straight line basis over estimated useful lives of five years.

Use of Estimates

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

Foreign Currency Translation

Our Company’s functional currency is the U.S. dollar. Transactions in foreign currency are translated into U.S. dollars as follows: a) monetary items at the rate prevailing at the balance sheet date; b) non-monetary items at the historical exchange rate; and c) revenue and expense at the average rate in effect during the applicable accounting period. Income Taxes

Our Company has adopted Statement of Financial Accounting Standards No. 109 – “Accounting for Income taxes” (SFAS 109). This standard requires the use of an asset and liability approach for financial accounting, and reporting on income taxes. If it is more likely than not that some portion or all of a deferred tax asset will not be realized, a valuation allowance is recognized

Basic and Diluted Loss Per Share

In accordance with SFAS No. 128 – “Earnings Per Share”, the basic loss per common share is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding. Diluted loss per common share is computed similar to basic loss per common share except that the ~~denominator~~ denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. At October 31, ~~2008~~2009, our Company has no stock equivalents that were anti-dilutive and excluded in the earnings per share computation.

Going Concern and continuing operations

Our consolidated financial statements have been prepared assuming we will continue as a going concern. Our accumulated deficit amounts to $5,~~440~~631,~~531~~622 as at October 31, ~~2008~~2009, which includes a write-off of assets amounting to $1,515,694 in 2005 for a failed venture, as well as legal and accounting costs associated with the due diligence process relating to the G-FED transaction amounting to $364,974. To date the Company is still in the development stage and has no sales.

Due to the uncertainty of our ability to meet our current operating expenses and the capital expenses noted above, in their report on the annual financial statements for the year ended October 31, 2008, our independent auditors included an explanatory paragraph regarding concerns about our ability to continue as a going concern. Our financial statements contain additional note disclosures describing the circumstances that lead to this disclosure by our independent auditors.10

Due to the uncertainty of our ability to meet our current operating expenses and the capital expenses noted above, in their report on the annual financial statements for the years ended October 31, 2008 and October 31, 2009, our independent auditors included an explanatory paragraph regarding concerns about our ability to continue as a going concern. Our financial statements contain additional note disclosures describing the circumstances that lead to this disclosure by our independent auditors.

The continuation of our business is dependent upon us raising additional financial support. The issuance of additional equity securities by us could result in a significant dilution in the equity interests of our current stockholders. Obtaining commercial loans, assuming those loans would be available, will increase our liabilities and future cash commitments.

There can be no assurances that we will be successful in raising additional cash to finance operations. If not, we will be required to reduce operations and/or liquidate assets. Our consolidated financial statements do not include any adjustments relating to the recoverability of assets and classification of assets and liabilities that might be necessary should we be unable to continue as a going concern.

Operations to date have been covered primarily from financings associated with equity transactions. There can be no assurances that we will be successful in raising additional cash to finance operations. If not, we will be required to reduce operations and/or liquidate assets. Our consolidated financial statements do not include any adjustments relating to the recoverability of assets and classification of assets and liabilities that might be necessary should we be unable to continue as a going concern.

Results of Operations for the Year Ended October 31, ~~2008~~2009

The company has had no revenue during the years ended October 31, ~~2007~~2009 and 2008.and no expenses, other than those related to the maintenance of a public company, but wrote-off $4950,~~736~~285 for impaired assets during the year ended October 31,2008. The note holders have agreed not to add additional interest to the note obligations and therefore no interest has been accrued.

We incurred general and administrative expenses in the amount of ~~Nil~~$42,374 for the year ended October 31, ~~2008~~2009, compared to $~~127~~23,~~270~~ 165 for the preceding year, aan ~~decrease~~ increase of $~~127~~19,~~720~~209 to reflect management’s decision to ~~downsize~~focus on the acquisition of existing companies with immediate revenue or immediate revenue potential. ~~operations~~As the result of converting loans payable to non-negotiable convertible promissory notes, the Company expensed as interest $508,540 in the current year as a beneficial conversion feature as compared to $31, 938 for the previous year.

Net loss for the year amounted to $50550,~~285~~914 as compared to a net loss of $~~243~~105,~~950~~388 for the same period in ~~2007~~2008.

Results of Operations for the Year Ended October 31, 2006

In letters dated April 4, 2006, June 5, 2006 and July 6, 2006, the Company received comments from the Securities and Exchange Commission (“SEC”) with respect to the disclosure of certain transactions included in the October 31, 2005 annual financial statement and January 31, 2006 and April 30, 2006 quarterly financial statements. As a result of this review, the Company amended and re-filed these statements to expand its disclosure and accounting treatment relating to the Share Exchange Agreement, the compensation paid to consultants in the form of stock options, the change of auditors and the systems in place regarding internal controls. On September 19, 2006, the Company filed amendments to its October 31, 2005 10-KSB, January 31, 2006 10-QSB and April 30, 2006 10-QSB that incorporate expanded disclosure pursuant to comments received by the Securities and Exchange Commission. The amended January 31, 2006 and April 30, 2006 and July 31, 2006 10-QSB’s were reviewed by an independent accountant to comply with Item 310(6) of Regulation S-B.

The impact of the re-pricing of the stock options awarded to consultants at the measurement date increased consulting fees by $100,000 for the year ended October 31, 2005, increasing the loss for the year from $2,921,657 to $3,021,657. See Note 1 of the October 31, 2006 consolidated financial statements - RESTATEMENT OF PRIOR PERIOD FINANCIAL STATEMENTS.

We incurred general operating expenses in the amount of $1,552,669 for the year ended October 31, 2006 compared to $1,505,963 for the preceding year, an increase of $46,706 or 3.10%. General operating expenses for 2006 includes: (a) $1,173,692 in consulting fees compared to $861,452 for the same period in 2005. Included in the figure of $1,173,692, is $298,437 in consulting fees associated with services prepaid as at October 31, 2005 (b) $52,109 in professional fees compared to $44,950 for the same period in 2005 (c) $102,720 in management fees compared to $73,295 in 2005 (d) $100,630 in interest expense associated with demand loans entered into throughout the year relating to the G-Fed transaction and to cover operating costs (e) $22,286 in regulatory costs versus $9,269 relating to the amendments and re filing of the Company’s annual and quarterly interim financial statements (f) $53,394 in travel as compared to $94,464 for the same period in 2005 and $47,838 in other.

In addition to incurring general operating expenses, we incurred $364,974 in costs associated with the planned acquisition of the G-Fed group of companies. As disclosed on May 3, 2006, negotiations stalled and the parties agreed to terminate the transaction. These costs included $254,714 in legal fees associated with conducting due diligence, negotiations and preparing contracts and documents; $97,011 in accounting fees and professional fees associated with a planned listing on the Alternative Market of the London Stock Exchange to fund the G-Fed acquisition; and $13,249 relating to travel, courier and disbursements.

The Company’s license with Mobile Gaming Now (MGN) was cancelled on October 1, 2006 and accordingly, the software (license) and hardware related to this business segment were written off in 2006, creating a book loss of $57,911.

Net loss for the year amounted to $1,975,554 as compared to a net loss of $3,021,657 for the same period 2005. Included in the $3,021,657 loss for 2005 was a write off of assets from discontinued business venture in the amount of $1,515,694.

Liquidity and Financial Condition

WeThe company had no cash on hand ~~of $223~~ as at October 31, ~~2008~~2009 as compared to $223 as at October 31, ~~2007~~2008. Since inception, we have used our common stock to raise money for the property acquisition, for corporate expenses and to repay outstanding indebtedness.

Our consolidated financial statements contained in this annual report contemplate our continuation as a going concern. However, we have sustained substantial losses and are still in the development stage. Additional funding will be necessary to continue development and marketing of our product. We intend to arrange for the sale of additional shares of our common stock to obtain additional operating capital for at least the next twelve months.

Off-Balance Sheet Arrangements

We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to stockholders.

Risk Factors

An investment in our common stock involves a high degree of risk. You should carefully consider the risks described below and the other information in this Annual Report before investing in our common stock. If any of the following risks occur, our business, operating results and financial condition could be seriously harmed. The trading price of our common stock could decline due to any of these risks, and you may lose all or part of your investment.

Because we will need additional financing to fund our activities, our accountants have included in their audit report that the Company’s recurring losses and lack of operations raises substantial doubt about our ability to continue as a going concern.

We have incurred a net loss of $5,~~440~~631,~~531~~622 for the period from March 14, 2002 (inception) to October 31, ~~2008~~2009, and have no revenue to date. As of October 31, ~~2008~~20098, we had ~~cash~~ inno ~~the amount of $223~~cash.. We will require ~~additional~~continued financing to sustain our business operations and we may not be able to obtain financing as required.

Since this is a new direction for the business and as a development stage company, we face a high risk of business failure due to our inability to predict the success of our business

We have just begun the initial stages of the new business, and thus have no way to evaluate the likelihood that we will be able to operate the business successfully.

Because of the unique difficulties and uncertainties inherent in new ventures, we face a high risk of business failure

Potential investors should be aware of the difficulties normally encountered by commencing a new business venture and the high rate of failure of such enterprises. The likelihood of success must be considered in light of the problems, expenses, difficulties, complications and delays encountered in connection with the business we plan to undertake.

As we undertake our new business direction in the gaming business, we may become subject to new government regulation that may increase the anticipated cost of the business

Many government jurisdictions have ruled that online gaming is illegal and, accordingly, management is evaluating where Fortuna will conduct its operations in order to be compliant.

Our common stock is “penny stock”, with the result that trading of our common stock in any secondary market may be impeded

The SEC has adopted rules that regulate broker-dealer practices in connection with transactions in penny stocks. Penny stocks are generally equity securities with a price of less than $5.00, other than securities registered on certain national securities exchanges or quoted on the Nasdaq system, provided that current price and volume information with respect to transactions in such securities is provided by the exchange or system.

The penny stock rules require a broker-dealer, prior to a transaction in a penny stock, to deliver a standardized risk disclosure document prepared by the Commission, that: (a) contains a description of the nature and level of risk in the market for penny stocks in both public offerings and secondary trading; (b) contains a description of the broker's or dealer's duties to the customer and of the rights and remedies available to the customer with respect to a violation to such duties or other requirements of Securities' laws; (c) contains a brief, clear, narrative description of a dealer market, including bid and ask prices for penny stocks and the significance of the spread between the bid and ask price; (d) contains a toll-free telephone number for inquiries on disciplinary actions; (e) defines significant terms in the disclosure document or in the conduct of trading in penny stocks; and (f) contains such other information and is in such form, including language, type, size and format, as the Commission shall require by rule or regulation.

The ~~penny stock rules require a~~ broker-dealer, prior to a transaction in a penny stock, to deliver a standardized risk disclosure document prepared by the Commission, that: (a) contains a description of the nature and level of risk in the market for penny stocks in both public offerings and secondary trading; (b) contains a description of the broker's or dealer's duties to the customer and of the rights and remedies available to the customer with respect to a violation to such duties or other requirements of Securities' laws; (c) contains a brief, clear, narrative description of a dealer market, including bid and ask prices for penny stocks and the significance of the spread between the bid and ask price; (d) contains a toll-free telephone number for inquiries on disciplinary actions; (e) defines significant terms in the disclosure document or in the conduct of trading in penny stocks; and (f) contains such other information and is in such form, including language, type, size and format, as the Commission shall require by rule or regulation. The broker-dealer also must provide, prior to effecting any transaction in a penny stock, the customer with: (a) bid and offer quotations for the penny stock; (b) the compensation of the broker-dealer and its salesperson in the transaction; (c) the number of shares to which such bid and ask prices apply, or other comparable information relating to the depth and liquidity of the market for such stock; and (d) a monthly account statements showing the market value of each penny stock held in the customer's account. In addition, the penny stock rules require that prior to a transaction in a penny stock not otherwise exempt from those rules; the broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser's written acknowledgment of the receipt of a risk disclosure statement, a written agreement to transactions involving penny stocks, and a signed and dated copy of a written suitability statement. These disclosure requirements may have the effect of reducing the trading activity in the secondary market for our stock as it is subject to these penny stock rules. Therefore, stockholders may have difficulty selling those securities.

ITEM 78. CONSOLIDATED FINANCIAL STATEMENTS.

		Page
Report of Independent Registered Public Accounting Firm		1514
Audited Consolidated Financial Statements for the year ending October 31, 2008
Audited Consolidated Financial Statements for the year ending October 31, 2009
	Consolidated Balance Sheets	1615
	Consolidated Statements of Loss	17
	Consolidated Statements of Operations	16
	Consolidated Statements of Cash Flows	1817
	Consolidated Statement of Shareholders’ Equity	1918
	Notes to Consolidated Financial Statements	2019

~~PRINCIPAL CAPITAL~~SADLER, ~~GROUP~~GIBB & ASSOCIATES, ~~INC~~L.L.C.

~~(formerly Fortuna~~Registered ~~Gaming~~with ~~Corp.)~~the Public Company

~~(A Development~~Accounting ~~Stage~~Oversight ~~Company)~~Board

CONSOLIDATED FINANCIAL STATEMENTS

OCTOBER 31, 2008 and 2007

(Stated in U.S. Dollars)

MOORE & ASSOCIATES, CHARTERED

ACCOUNTANTS AND ADVISORS

PCAOB REGISTERED

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors

~~Principal Capital~~Gazoo Energy Group, Inc.

~~FKA~~We have audited the accompanying consolidated balance sheets of Gazoo Energy Group, Inc. and subsidiaries as of October 31, 2009 and 2008 and the related consolidated statements of operations, stockholders' equity, and cash flows for the years then ended, as well as the related consolidated statements of operations, stockholders’ ~~Fortuna~~equity, ~~Gaming~~and ~~Corp~~cash flows since inception on March 14, 2002 through October 31, 2009. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.

~~(A Development~~We ~~Stage~~conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. The

WeCompany is not required to have ~~audited~~, ~~the~~nor ~~accompanying~~were ~~consolidated~~we ~~balance~~engaged ~~sheets~~to perform, an audit of ~~Principal~~its ~~Capital~~internal ~~Group, Inc~~control over financial reporting. (AOur ~~Development~~audits ~~Stage~~included ~~Company)~~consideration of internal control over financial reporting as ofa ~~October~~basis ~~31,~~for ~~2008~~designing ~~and~~audit ~~2007,~~procedures ~~and~~that are appropriate in the ~~related~~ ~~consolidated~~circumstances, ~~statements~~but not for the purpose of ~~operations,~~expressing ~~stockholders’~~an ~~equity~~opinion ~~(deficit)~~on ~~and~~the ~~cash~~effectiveness ~~flows~~of ~~for~~ the ~~years~~Company's ~~ended~~internal ~~October~~control ~~31,~~over ~~2008~~financial reporting. Accordingly, ~~2007~~we ~~and~~express ~~since~~no ~~inception~~such ~~on March~~opinion. 14An audit also includes examining, ~~2002~~on ~~through~~a ~~October~~test 31basis, ~~2008.~~evidence ~~These~~supporting the amounts and disclosures in the financial statements, ~~are~~assessing the ~~responsibility~~ ofaccounting ~~the~~principles ~~Company’s~~used ~~management. Our~~and ~~responsibility~~significant isestimates ~~to express~~made anby ~~opinion~~management, onas ~~these~~well as evaluating the overall financial ~~statements~~statement ~~based~~presentation. onWe believe that our audits provide a reasonable basis for our opinion.

~~We conduct~~In our ~~audits~~opinion, inthe ~~accordance~~consolidated ~~with~~financial ~~standards~~statements ofreferred ~~the~~to ~~Public~~above ~~Company~~present ~~Accounting Oversight~~fairly, ~~Board~~in ~~(United~~all ~~States). Those~~material ~~standards~~respects, ~~require~~the ~~that~~financial weposition ~~plan and~~of ~~perform~~Gazoo ~~the~~Energy ~~audits~~Group, toInc. ~~obtain~~and ~~reasonable~~subsidiaries ~~assurance~~as ~~about~~of ~~whether~~October ~~the financial~~31, ~~statements~~2009 ~~are~~and ~~free~~2008 ofand ~~material~~the ~~misstatement. An~~results ~~audit includes~~of ~~examining,~~their onoperations aand ~~test~~their ~~basis,~~cash ~~evidence~~flows ~~supporting~~for the ~~amounts~~years ~~and disclosures~~then inended ~~the~~as ~~financial~~well ~~statements. An~~as ~~audit~~the ~~also~~related ~~includes~~consolidated statements ~~assessing~~of ~~the~~operations, ~~accounting~~stockholders’ ~~principles~~equity, ~~used~~ and ~~significant~~cash ~~estimates~~flows ~~made~~since ~~by management,~~inception ason ~~well~~March as14, ~~evaluating~~2002 ~~the~~through ~~overall~~October ~~financial~~31, ~~statement presentation. We~~2009, ~~believe~~in ~~that~~conformity ~~our~~with ~~audits~~U.S. ~~provide~~generally aaccepted ~~reasonable~~accounting ~~basis for our opinion~~principles.

InThe ~~our opinion,~~accompanying financial statements have been prepared assuming that the ~~consolidated~~Company ~~financial~~will ~~statements~~continue ~~referred~~as toa ~~above~~going ~~present~~concern. ~~fairly,~~ As discussed in ~~all~~Note ~~material~~2 ~~respects,~~to the financial ~~position~~statements, ofthe ~~Principal~~Company ~~Capital~~has ~~Group, Inc.~~had (Aa ~~Development~~loss ~~Stage~~from ~~Company)~~operations assince inception of ~~October 31~~$4,089,457, ~~2008~~an ~~and~~accumulated ~~2007~~deficit of $6,096,833, and ~~the related~~working ~~consolidated~~capital ~~statements~~deficit of ~~operations~~$1,713,291, ~~stockholders’~~which ~~equity~~raises ~~(deficit)~~substantial ~~and~~doubt ~~cash~~about ~~flows~~its ~~for~~ability ~~the~~to ~~years~~continue ~~ended~~as ~~October~~a ~~31,~~going ~~2008,~~concern. ~~2007~~Management’s ~~and~~plans ~~since~~concerning ~~inception~~these ~~on March~~matters ~~14,~~are ~~2002~~also ~~through~~described ~~October~~in ~~31,~~Note ~~2008,~~2. inThe ~~conformity~~financial ~~with~~statements ~~accounting principles~~do ~~generally~~not ~~accepted~~include inany ~~the~~adjustments ~~United~~that ~~States~~might result from the outcome of ~~America~~this uncertainty.

~~The accompanying~~/s/ ~~consolidated~~SADLER, ~~financial~~GIBB ~~statements~~AND ~~have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1f to the financial statements~~ASSOCIATES, ~~the~~LLC ~~Company has incurred a net loss of $5~~SADLER,~~440,531 and~~ ~~has~~GIBB noAND ~~revenues as of October 31~~ASSOCIATES, 2008, which raises substantial doubt about its ability to continue as a going concern. Management’s plans concerning these matters are also described in Note 1f. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.LLC

~~/s/ Moore~~Salt &Lake ~~Associates~~City, ~~Chartered~~UT

~~Moore &~~February ~~Associates~~16, ~~Chartered~~2010

~~Las Vegas, Nevada~~14

~~January~~ 28 GAZOO ENERGY GROUP, ~~2009~~INC.(formerly PRINCIPAL CAPITAL GROUP, INC.) (A Development Stage Company) CONSOLIDATED BALANCE SHEET

6490 West Desert Inn Rd, Las Vegas, NV 89146 (702) 253-7499 Fax (702) 253-7501

	October 31,			October 31,
	2009			2008
ASSETS
Current Assets
Cash and cash equivalents	$	-		$	223
Total Current Assets		-			223

TOTAL ASSETS	$	-		$	223


LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current Liabilities
Accounts payable and accrued expenses	$	167,637		$	170,961
Accounts payable - related parties		142,484			191,216
Accrued interest		250,522			246,316
Convertible promissory notes payable, less
unamortized discount		1,096,593			678,053
Promissory note		56,055			56,055
Total Current Liabilities		1,713,291			1,342,601

Stockholders' Equity (Deficit)
Preferred stock; $0.001 par value; 100,000,000 shares authorized;
100,000,000 and 0 shares issued and outstanding		100,000			-
Common stock; $0.001 par value; 100,000,000 shares authorized;
44,539,234 and 39,234 shares issued and outstanding		44,539			39
Additional paid-in capital		4,269,003			4,203,502
Deficit accumulated during the development stage		(6,096,833	)		(5,545,919	)
Treasury stock, at cost, 30,000,000 shares		(30,000	)		-
Total Stockholders' Equity (Deficit)		(1,713,291	)		(1,342,378	)
Total Liabilities and Stockholders' Equity	$	-		$	223

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

~~PRINCIPAL~~ Gazoo ~~CAPITAL~~Energy ~~GROUP~~Group, ~~INC..~~Inc (formerly Principal Capital Group, Inc) (A Development Stage Company) CONSOLIDATED STATEMENTS OF OPERATIONS

(formerly Fortuna Gaming Corp.)

					Cumulative from
	For the Years Ended				inception March 14,
	October 31				2002 to October 31,
	2009		2008		2009
Operating Expenses
General and Administrative Expenses	$	42,374	$	23,165	$	3,331,669

Loss Before Other Expenses		42,374		23,165		3,331,669

Interest Expense		508,540		31,938		757,788

Loss Before Discontinued Operations		550,914		55,103		4,089,457

Loss From Discontinued Operations:
G-Fed acquisition costs		-		-		364,974
Mineral property option/exploration expenditures		-		-		13,107
Write down of web development costs		-		-		418
Write down of capital assets		-		-		4,987
Write off of licensee fee/related hardware		-		-		57,911
Loss on write off of asset from discontinued business		-		50,285		1,565,979

Net Loss before income taxes		550,914		105,388		6,096,833

Provision for income taxes		-		-		-
Net Loss For TheYear	$	550,914	$	105,388	$	6,096,833

Basic And Diluted Loss Per Share	$	0.08	$	3.17

Weighted Average Number
Of Common Shares Outstanding		7,139,234		33,234

(A Development Stage Company)

CONSOLIDATED BALANCE SHEETS

October 31, 2008 and 2007

(Stated in U.S. Dollars)

	October 31, 2008			October 31, 2007
ASSETS
Current
Cash and cash equivalents	$	223		$	223
Advances		-			549
Prepaid expenses (Note 3)		-			-
		223			772
Software and Web Site Rights (Note 4)		-			49,736
	$	223		$	50,508
LIABILITIES
Current
Accounts payable and accrued liabilities		339,012			369,012
Demand loan (Note 5(a) (b))		267,740			267,740
Promissory note (Note 5(c))		56,055			56,055
Demand loans (Note 5(d))		918,853			918,853
Interest payable		214,378			214,378
	$	1,796,038		$	1,826,038
STOCKHOLDERS’ (DEFICIENCY) EQUITY
Authorized:
100,000,000 preferred shares with a par value of $0.001 per share
100,000,000 common shares with a par value of $0.001 per share
Issued and Outstanding:
39,234 and 27,234 shares issued and outstanding, respectively (Note 6 (b))	$	39		$	27
Additional paid-in capital		3,694,962			3,664,975
Deficit Accumulated During The Development Stage		(5,490,816	)		(5,440,531	)
	$	(1,795,266	)	$	(1,775,530	)
	$	223		$	50,508

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

~~PRINCIPAL~~ Gazoo ~~CAPITAL~~Energy Group, Inc. ~~GROUP~~ (formerly Principal Capital Group, ~~INC~~Inc.) (A Development Stage Company) INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS

(formerly Fortuna Gaming Corp.)

	For the Years Ended
	October 31
	2009			2008
Cash Flows From Operating Activities
Net loss for the period	$	(550,914	)	$	(105,388	)
Adjustments to reconcile net loss to net cash provided by operations
Write off abandoned software investment		-			-
Write down of web development costs		-			-
Preferred stock issued for services rendered		-			-
Write down of capital assets		-			50,285
Write down of license fee and related hardware		-			-
Depreication and amortization
Amortization of discount on notes payable		508,540			-
Changes in assets and liabilities
Change in accounts payable and accrued liabilities		(3,323	)		13,349
Change in interest payable		4,206			31,938
Net Cash Provided By Operating Activities		(41,491	)		(9,816	)

Cash Flows From Investing Activities
Purchase of hardware		-			-
Software license fee		-			-
Purchase of domain names		-			-
Shares and Advances under Asset Purchase Agreement		-			-
Website development costs		-			-
Purchase of office equipment		-			-
Net Cash Used In Investing Activities		-			-

Cash Flows From Financing Activities
Issue of common stock for cash		-			-
Increase in related-party payables		41,268			9,816
Increase in demand loans		-			-
Change in advance receivable		-			-
Change in promissory notes payable		-			-
Net Cash Used In Financing Activities		41,268			9,816
(Decrease) Increase In Cash For The Period		(223	)		-
Cash, Beginning Of Period		223			223
Cash, End Of Period		-			223


Supplemental Disclosures of Non Investing and Financing Activities:
Shares issed for payment of debt	$	-		$	30,000
Shares issed for payment of debt	$	60,000		$	-
Demand loan converted to common stock	$	90,000		$	-
Shares held in treasury pending completion of acquistion	$	30,000		$	-
Issuance of preferred shares for services rendered	$	30,000		$	-

(A Development Stage Company)

CONSOLIDATED STATEMENTS OF OPERATIONS

For the years ended October 31, 2008 and October 31, 2007 and for

the period from March 14, 2002 ( Date of Inception) to October 31, 2008

(Stated in US Dollars)

	For the Years Ended October 31						Cumulative From Inception March 14, 2002 To
	2008			2007			October 31, 2008
General and Administrative Expenses	$	-		$	127,270		$	3,266,130
(Loss) Before Other Revenue and Expenses		-		$	(127,270	)	$	(3,266,130	)
Interest Expense		-		$	116,680			217,310
Loss Before Discontinued Operations	$	-		$	(243,950	)	$	(3,483,440	)
Loss from discontinued operations:
GFED acquisition costs		-			-			364,974
Mineral property option/exploration expenditures		-			-			13,107
Write down of web development costs		-			-			418
Write down of capital assets		-			-			4,987
Write off of licensee fee/related hardware (Note 4)		-			-			57,911
Loss on write off of assets from discontinued business (Note 1(c))		50,285			-			1,565,979
Provision for income taxes		-			-			-
Net (Loss) For The Period	$	(50,285	)	$	(243,950	)	$	(5,490,816	)
Basic And Diluted (Loss) Per Share	$	(1.51	)	$	(8.96	)
Weighted Average Number Of Common Shares Outstanding		33,267			27,234

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

Gazoo Energy Group, Inc. (formerly PRINCIPAL CAPITAL GROUP, INC.) (A Development Stage Company) CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY For the period March 14, 2002 (Date of Inception) to October 31, 2009

(formerly Fortuna Gaming Corp.)

														Additional
	Preferred Stock				Common Stock					Treasury Stock				Paid-In			Subscriptions			Deficit
	Shares		Amount		Shares			Amount		Shares		Amount		Capital			Receivable			Accumulated			TOTAL

Shares issued for cash at $0.001		-	$	-		19		$	-		-	$	-	$	6,000		$	-		$	-		$	6,000
Shares issued to acquire mineral
Property interest at $0.001		-		-		1			-		-		-		20			-			-			20
Shares issued for cash at $0.01		-		-		23			-		-		-		73,003			-			-			73,003
Shares issued for cash at $0.15		-		-		2			-		-		-		105,493			(19,602	)		-			85,891
Net loss for the period		-		-		-			-		-		-		-			-			(79,386	)		(79,386	)
Balance, October 31, 2002		-		-		45			-		-		-		184,516			(19,602	)		(79,386	)		85,528

Balance, October 31, 2002		-		-		45			-		-		-		184,516			(19,602	)		(79,386	)		85,528
Share subscriptions received		-		-		-			-		-		-		-			19,602			-			19,602
Net loss for the year		-		-		-			-		-		-		-			-			(90,687	)		(90,687	)
Balance, October 31, 2003		-		-		45			-		-		-		184,516			-			(170,073	)		14,443

Balance, October 31, 2003		-		-		45			-		-		-		184,516			-			(170,073	)		14,443
Net loss for the year		-		-		-			-		-		-		-			-			(29,298	)		(29,298	)
Balance, October 31, 2004		-		-		45			-		-		-		184,516			-			(199,371	)		(14,855	)

Balance, October 31, 2004		-		-		45			-		-		-		184,516			-			(199,371	)		(14,855	)
Shares issued for S8 stock
- cash and consultants’ fees		-		-		192			-		-		-		96,000			-			-			96,000
Shares issued pursuant
private placement		-		-		231			-		-		-		1,443,336			-			-			1,443,336
Shares issued pursuant
to Finder’s Fee		-		-		9			-		-		-		56,664			-			-			56,664
Shares issued pursuant
to Acquisition Agreement		-		-		480			-		-		-		30,000			-			-			30,000
Returned to Treasury		-		-		(480	)		-		-		-		(30,000	)		-			-			(30,000	)
Shares issued pursuant
Share Exchange Agreement		-		-		12,000			12		-		-		14,988			-			-			15,000
Shares issued for S8 stock
- cash and consultants’ fees		-		-		14,080			14		-		-		175,986			-			-			176,000
Adjust to Transfer Agent		-		-		1			-		-		-		283			-			-			283
Net loss for the year		-		-		-			-		-		-		-			-			(3,021,657	)		(3,021,657	)
Balance, October 31, 2005		-		-		26,558			26		-		-		1,971,773			-			(3,221,028	)		(1,249,229	)

(A Development Stage Company)

Balance, October 31, 2005	-		-	26,558			27	-			-			1,971,773			-		(3,221,028	)		(1,249,229	)
Private Placements @ $1.00	-		-	678			1	-			-			1,695,709			-		-			1,695,710
Adjust to Transfer Agent	-		-	(2	)		-	-			-			(2,507	)		-		-			(2,507	)
Net loss for the period	-		-	-			-	-			-			-			-		(1,975,554	)		(1,975,554	)
Balance, October 31, 2006	-		-	27,234			27	-			-			3,664,975			-		(5,196,582	)		(1,531,580	)
Net loss for the year	-		-	-			-	-			-						-		(243,950	)		(243,950	)
Balance, October 31, 2007	-		-	27,234			27	-			-			3,664,975			-		(5,440,531	)		(1,775,530	)

Balance, October 31, 2007	-		-	27,234			27	-			-			3,664,975			-		(5,440,531	)		(1,775,529	)
Shares isued for debt	-		-	12,000			12	-			-			29,988			-		-			30,000
Beneficial conversion of notes
payable	-		-	-			-	-			-			508,540			-		-			508,540
Net loss for the year	-		-	-			-	-			-			-			-		(105,388	)		(105,388	)
Balance, October 31, 2008	-		-	39,234			39	-			-			4,203,503			-		(5,545,919	)		(1,342,377	)

Balance, October 31, 2008	-		-	39,234			39	-			-			4,203,503			-		(5,545,919	)		(1,342,377	)
Shares issued for debt	-		-	5,500,000			5,500	-			-			54,500			-		-			60,000
Shares issued pursuant to an
Acquisition Agreement-April 29,2009	-		-	30,000,000			30,000	-			-			(30,000	)		-		-			-
Demand loan converted to common
stock-April 29,2009	-		-	9,000,000			9,000	-			-			81,000			-		-			90,000
Shares held in treasury pending
completion of Acquisition	-		-	-			-	(30,000,000	)		(30,000	)		30,000			-		-			-
Issuance of preferred shares for
services rendered-April 28,2009	100,000,000		100,000	-			-	-			-			(70,000	)		-		-			30,000
Net loss for the year																			(550,914	)		(550,914	)
Balance, October 31, 2009	100,000,000	$	100,000	44,539,234		$	44,539	(30,000,000	)	$	(30,000	)	$	4,269,003		$	-	$	(6,096,833	)	$	(1,713,291	)

~~CONSOLIDATED~~ ~~STATEMENTS~~The OFaccompanying ~~CASH~~notes ~~FLOWS~~are an integral part of these financial statements

For the years ended October 31, 2008 and October 31, 2007 and for the period

from March 14, 2002 (Date of Inception) to October 31, 2008

(Stated in US Dollars)

	Years Ended October 31						Cumulative from inception March 14, 2002 to
	2008			2007			October 31, 2008
Net loss for the period	$	50,285		$	(243,950		$	(5,490,816	)
Non-cash items:
Write off of assets and working capital		-			-			1,515,694
Write off of license fee and related hardware		-			-			57,911
Write down of capital assets		-			-			4,986
Write off of web development costs		-			-			418
Amortization		-			2,030			38,042
	$	50,285		$	(241,920	)	$	(3,873,765	)
Change in prepaid expense		-			740			-
Current portion of promissory note		-			-			56,055
Change in advances receivable		549			(549	)		-
Share subscriptions received		-			-			-
Demand loans		-			142,124			918,853
Acquisition deposit loan		-			-			267,740
Notes payable - acquisition		-			(3,945	)
Change in accounts payable and accrued liabilities		30,000			27,924			369,013
Change in interest payable		-			112,702			214,378
		30,000		$	37,076		$	(2,047,726	)
Issue of common stock		30,000			-			252,041
Paid in capital		-			-			3,412,960
		30,000		$	-		$	3,665,001
Promissory notes		-			-			-
Purchase of hardware		-			-			(38,400	)
Acquisition deposits		-			-			-
Software license fee/domain name		(49,736	)		(45,000	)		(45,264	)
Purchase of domain names		-			-			(10,175	)
Shares and advances under Asset Purchase Agreement		-			-			(1,515,694	)
Website development costs		-			-			(1,000	)
Purchase of office equipment		-			-			(6,519	)
	$	(50,285	)	$	(45,000	)	$	(1,617,052	)
(Decrease) Increase in Cash for The Period		-			(7,924	)		223
Cash, Beginning of Period		223			8,147			-
Cash, End of Period		223		$	223		$	223

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

~~PRINCIPAL~~ GAZOO ~~CAPITAL~~ENERGY GROUP, INC. (Formerly Principal Capital Group, Inc.) (A Development Stage Company) Notes to the Consolidated Financial Statements October 31, 2009 and 2008

~~(formerly Fortuna~~1) ~~Gaming~~Nature ~~Corp)~~of Operations

(A Development Stage Company)

CONSOLIDATED STATEMENT OF SHAREHOLDERS’ (DEFICIENCY) EQUITY

For the period March 14, 2002 (Date of Inception) to October 31, 2008

(Stated in U.S. Dollars)

							Additional						Deficit Accumulated
	Common			Par			Paid-In			Subscriptions			during the
	Shares			Value			Capital			Receivable			Development stage			TOTAL
Shares issued for cash at $0.001		19		$	0		$	6,000								$	6,000
Shares issued to acquire mineral
Property interest at $0.001		1			0			20									20
Shares issued for cash at $0.01		23			0			73,003									73,003
Shares issued for cash at $0.15		2			0			105,493			(19,602	)					105,493
Net loss for the period														(79,386	)		(79,386	)
Balance, October 31, 2002		45		$	0		$	184,516		$	(19,602	)	$	(79,386	)	$	105,130
Balance, October 31, 2002		45			0			184,516			(19,602	)		(79,386	)		105,130
Share subscriptions received											19,602
Net loss for the period														(90,687	)		(90,687	)
Balance, October 31, 2003		45		$	0		$	184,516			-		$	(170,073	)	$	14,443
Balance, October 31, 2003		45			0			184,516			-			(170,073	)		14,443
Net loss for the period														(29,298	)		(29,298	)
Balance, October 31, 2004		45		$	0		$	184,516			-		$	(199,371	)	$	(14,855	)
Balance, October 31, 2004		45			0			184,516						(199,371	)		(14,855	)
Shares issued for S8 stock - cash and consultants’ fees		192			0			96,000									96,000
Shares issued pursuant private		231			0			1,443,336									1,443,336
Placement
Shares issued pursuant to		9			0			56,664									56,664
Finder’s Fee
Shares issued pursuant to		1			480			29,520									30,000
Acquisition Agreement
Returned to Treasury		(1	)		(480	)		(29,520	)								(30,000	)
Shares issued pursuant Share Exchange Agreement		12,000			12			14,988									15,000
Shares issued for S8 stock – cash and consultants’ fees		14,080			14			175,986									176,000
Adjust to Transfer Agent		(1	)		0			283									283
Net loss for the period														(3,021,657	)		(3,021,657	)
Balance, October 31, 2005		26,557		$	26		$	1,971,773			-		$	(3,221,028	)	$	(1,249,229	)
Balance, October 31, 2005		26,557		$	26		$	1,971,773			-		$	(3,221,028	)	$	(1,249,229	)
Private Placements @ $1.00		678			0			1,695,710									1,695,710
Adjust to Transfer Agent		(1	)		1			(2,508	)								(2,507	)
Net loss for the period														(1,975,554	)		(1,975,554	)
Balance, October 31, 2006		27,234		$	27		$	3,664,975					$	(5,196,581	)	$	(1,531,580	)
Net loss for the year														(243,950	)		(243,950	)
Balance, October 31, 2007		27,234		$	27		$	3,664,975					$	(5,440,531	)	$	(1,775,530	)
Debt liquidation		12,000			12			29,988									30,000
Net loss for the year														(50,285	)		(50,285	)
Balance, October 31, 2008		39,234		$	39		$	3,694,963					$	(5,490, 816	)	$	(1,795,815	)

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

PRINCIPAL CAPITAL GROUP, INC.

(formerly Fortuna Gaming Group)

(A Development Stage Company)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

OCTOBER 31, 2008 AND 2007

(Stated in U.S. Dollars)

1. NATURE OF OPERATIONS

a)	Organization

The Company was incorporated on March 14, 2002 under the laws of the State of Nevada as North American General Resources Corporation and wewas ~~were~~engaged, ~~primarily~~until ~~engaged~~November 2004, primarily, in the acquisition and exploration of mining properties ~~until November 2004~~.

On November 29, 2004 a Certificate of Amendment was filed with the Secretary of State in Nevada to change the name of the Company from North American General Resources Corporation to MoneyFlow Capital Corporation at which time we changed our business to providing financial services including operating a foreign exchange service and providing short-term loans and check cashing from retail premises.

By way of a reverse take over the Company changed its business and on June 28, 2005 a Certificate of Amendment was filed with the Secretary of State in Nevada to change the name of the Company from MoneyFlow Capital Corporation to ~~Principal Capital~~Fortuna ~~Group,~~Gaming ~~Inc.~~ Corp.

On June 28, 2005 the company changed its name to Fortuna Gaming Corp.

On November 10, 2008 the company, at a special meeting of the directors, changed the name of the corporation to Principal Capital Group, Inc.

On March 27, 2009, the directors decided to become involved in the pursuit of “green” energy development and renamed the corporation Gazoo Energy Group, Inc. Management is presently involved in the pursuit of acquisitions that are compatible with that business model.

b)	Principles of Consolidation

The accompanying consolidated financial statements reflect the operations of ~~Principal~~ ~~Capital~~Gazoo Energy Group, Inc. ~~Corp.~~ and its wholly owned subsidiaries, ~~Principal Capital~~Fortuna ~~Group,~~Gaming ~~Inc.~~ (UK) Limited and ~~Principal~~Fortuna ~~Capital~~Gaming ~~Group, Inc.~~ Corp. Limited (both inactive United Kingdom incorporated corporations). All intercompany accounts and transactions have been eliminated in consolidation.

c) ~~Discontinued Operations~~ Change of Business and ~~Loss~~Use ~~Associated~~of ~~with~~Consultants ~~Write~~During ~~off~~Re-organization ofand ~~Assets Purchased~~Start-Up Stage

On ~~October~~ ~~25,~~June ~~2004~~28, ~~the Company entered into an agreement (the "Agreement") which provided that it would incorporate a Canadian subsidiary~~2005, ~~MoneyFlow Capital Corporation (“MoneyFlow Canada”), which would purchase all of~~ the ~~assets of CMC Investments Inc. ("CMC") and its subsidiary, Canadian Cheque Cashing Corporation ("CCCC"), in exchange for the issuance of 6,000,000 shares of the~~ Company ~~and the assumption of two debt obligations amounting to approx $2,500,000. As a result of entering into this Agreement, the Company~~ changed its name ~~from~~to ~~North~~Fortuna ~~American~~Gaming ~~General Resources~~ Corp. toand ~~MoneyFlow~~underwent ~~Capital~~a ~~Corporation~~change ~~(“MoneyFlow~~in ~~Nevada”)~~management and ~~its nature~~direction ofand ~~business~~became toinvolved ~~providing~~in ~~financial~~the ~~services~~acquisition ~~including operating a foreign exchange service~~ and ~~providing~~licensing ~~short~~of on-~~term~~line ~~loans~~ and ~~check~~mobile ~~cashing~~gaming ~~from retail premises through its subsidiary~~technologies.

~~Under~~As the ~~terms~~ ofCompany ~~the~~was ~~Agreement~~in the ~~Company~~start-up ~~paid~~stage, aFortuna ~~total~~Gaming ofCorp. ~~$1,473,336~~and ~~relating~~its tosubsidiaries engaged the ~~development~~ services of ~~financial~~various ~~software~~consultants onpossessing ~~behalf~~critical ofknowledge ~~its~~and ~~subsidiary~~experience ~~Money~~in ~~Flow Canada~~the gaming industry, regulatory, legal and financial services sector. ~~However,~~The inservices ~~February~~performed by consultants from June 28, 2005 ~~the~~to ~~Company~~October ~~defaulted~~31, on2008 ~~its~~include ~~remaining~~legal, ~~payment~~due ~~obligations~~diligence ofand ~~$1,040,140. As~~accounting aassociated ~~result,~~with the ~~parties agreed~~planned toacquisition ~~rescind~~of ~~the~~GFED ~~Agreement~~(of bywhich ~~returning~~negotiations ~~the~~were 6terminated on May 3,~~000~~ 2006),~~000~~ ~~shares~~raising toequity and debt financing, developing the Company’s ~~treasury~~overall inbusiness ~~exchange~~plan ~~for~~and ~~giving~~strategies, upidentifying, ~~its~~selecting ~~shares~~and innegotiating ~~MoneyFlow Canada. As~~intellectual aproperty ~~result~~licensing ~~of this termination~~agreements, ~~the~~developing ~~Company~~operational ~~wrote~~plans ~~off~~covering ~~its investment~~domestic ofand $1international operations,~~473,336~~ ~~plus~~seeking ~~working~~out ~~capital~~and ofhiring ~~$42~~professional management,~~358,~~ ~~creating~~developing amarketing ~~loss~~and ofpromotion plans including setting up $1an investor relations program,~~515,694~~ developing a merger and acquisition strategy and policy and developing corporate and potential acquisition candidates and establishing corporate governance policies.

2019

d1) ~~Change~~ ~~of Business~~Nature ~~and Use~~ of ~~Consultants~~Operations ~~During Re-organization and Start Up Stage~~(Continued)

Ond) ~~June 28,~~GFED ~~2005,~~Acquisition ~~the~~Deposit ~~Company changed its name to Principal Capital Group, Inc..~~ and ~~underwent~~ aPrivate ~~change~~Placement ~~in management and direction and is currently involved in the acquisition and licensing of on-line and mobile gaming technologies.~~Advances

AsOn ~~the Company~~December ~~is in the start-up stage~~4, ~~Principal Capital Group~~2005, ~~Inc.~~the ~~and~~Company ~~its subsidiaries~~entered ~~engage~~into ~~the~~a ~~services~~Letter of ~~various~~Intent ~~consultants possessing critical knowledge and experience in the gaming industry, regulatory, legal and financial services sector. The services performed by consultants from June 28, 2005~~ to ~~October 31~~acquire, ~~2008~~directly ~~include~~or ~~legal~~indirectly, ~~due~~100% ~~diligence~~of ~~and accounting associated with~~ the ~~planned~~assets ~~acquisition~~ of ~~GFED~~a ~~(of~~software ~~which~~development ~~negotiations~~company ~~were~~doing ~~terminated~~business ~~on May~~as 3,GFED. A ~~2006),~~refundable ~~raising~~deposit ~~equity~~of ~~and~~$500,000 ~~debt~~USD ~~financing,~~was ~~developing~~paid to the ~~Company~~vendor’s ~~overall~~ ~~business~~attorney ~~plan~~pursuant ~~and~~to ~~strategies,~~the ~~identifying,~~signing ~~selecting~~of ~~and~~the ~~negotiating intellectual~~Letter ~~property~~of ~~licensing~~Intent. ~~agreements,~~On ~~developing~~February ~~operational plans covering domestic and international operations~~1, ~~seeking out and hiring professional management~~2006, ~~developing marketing and promotion plans including~~a ~~setting~~second updeposit anof ~~investor relations program~~$500,000 ~~developing~~USD awas ~~merger~~paid ~~and~~to ~~acquisition strategy~~the ~~and~~vendor’s ~~policy~~attorney ~~and~~bringing ~~developing~~the ~~corporate~~total ~~and~~deposits ~~potential~~to ~~acquisition candidates~~$ ~~and~~1million ~~establishing corporate governance policies~~USD.

e) The Company also received private placement advances, held in a lawyers’ trust account, totaling $2,000,000. The funds were to be used as a down payment associated with the acquisition of GFED. As announced in a press release dated May 3, 2006, based upon results ~~Acquisition~~from ~~Deposit~~its due diligence examination process, discussions and ~~Private~~negotiations ~~Placement~~relating ~~Advances~~to the purchase of the GFED group terminated. With the termination of the acquisition, $1,940,000 was returned to the lenders, leaving a balance of $60,000 owing to one lender as of October 31, 2006. The $60,000 note payable bears interest at a rate of 10% per annum accrued monthly. On November 2, 2006, the balance of $7,923 held in trust was returned to this lender. $3,978 was applied against accrued interest and the remaining $3,945 was applied against the principal leaving an outstanding balance of $56,055. The Company has not received any demand for payment of the outstanding principle from that lender.

The Company also received private placement advances, held in a lawyers’ trust account, totaling $2,000,000. The funds were to be used as a down payment associated with the acquisition of GFED. As announced in a press release dated May 3, 2006, based upon results from its due diligence examination process, discussions and negotiations relating to the purchase of the GFED group terminated. With the termination of the acquisition, $1,940,000 was returned to the lenders, leaving a balance of $60,000 owing to one lender as of October 31, 2006. The $60,000 note payable bears interest at a rate of 10% per annum accrued monthly. On November 2, 2006, the balance of $7,923 held in trust was returned to this lender. $3,978 was applied against accrued interest and the remaining $3,945 was applied against the principal leaving an outstanding balance of $56,055. The Company has not received a formal demand for payment of the outstanding principle from the lender and is relying on continued support from this lender while it restructures its finances and pursues other business opportunities and acquisitions.

The $1 million deposits less legal fees, advanced under the original Letter of Intent were returned to the Company and used to pay down demand loans as noted in Notes 5 (a) and (b).

fe) Going Concern

The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern.

As shown in the accompanying consolidated financial statements, the Company has incurred a net loss for the period from March 14, 2002 (inception) to October 31, ~~2008~~2009 of ~~$5,440,531~~ ~~which includes the write-off of assets amounting to~~ $16,~~515~~096,~~694 in 2005 and the write-off of $364,974 in 2006 relating to legal, due diligence and accounting costs associated with the acquisition of GFED~~833. To date, the Company has nonot ~~revenues~~generated any revenue. The future of the Company is dependent upon the continued support of its lenders, its ability to obtain financing and upon future profitable operations from the development of acquisitions. Management has plans to seek additional capital through a private placement ~~and public offering of its common stock~~. The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event the Company cannot continue in existence. z

2.	SIGNIFICANT ACCOUNTING POLICIES

The accompanying consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States. Because a precise determination of many assets and liabilities is dependent upon future events, the preparation of consolidated financial statements for a period necessarily involves the use of estimates which have been made using careful judgment.

~~a) Capital Assets and Amortization~~20

~~b) Use~~2. ~~of Estimates~~SIGNIFICANT ACCOUNTING POLICIES (Continued)

ca) ~~Foreign Currency~~ ~~Translation~~Use of Estimates

The ~~Company’s~~ ~~functional~~preparation ~~currency~~of isconsolidated ~~the~~financial ~~U.S.~~statements ~~dollar.~~in ~~Transactions~~conformity with accounting principles generally accepted in ~~foreign~~the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial ~~currency~~statements, ~~are~~and ~~translated~~the ~~into~~reported Uamounts of revenues and expenses for the reporting period.S. ~~dollars~~Actual asresults ~~follows:~~could differ from those estimates.

ib) ~~monetary~~Income items at the rate prevailing at the balance sheet date; ii) non-monetary items at the historical exchange rate; iii) revenue and expense at the average rate in effect during the applicable accounting periodTaxes

d) The Company follows SFAS No. 109, “Accounting for Income Taxes” which requires the use of the asset and liability method of accounting for income taxes. Under the asset and liability method of SFAS 109, deferred tax assets and liabilities are recognized for future tax consequences attributable to temporary differences between the financial statements carrying amounts of existing assets and liabilities and loss carry forwards and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which those temporary differences are expected to be recovered or settled. If it is more likely than not that some portion or all of a deferred tax asset will not be realized, a valuation allowance is recognized.

ec) Basic and Diluted Loss Per Share

In accordance with SFAS No. 128 – “Earnings Per Share”, the basic loss per common share is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding. Diluted loss per common share is computed similar to basic loss per common share except that the ~~denominator~~ denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. At ~~August~~October 31, ~~2007~~2009, the Company has no stock equivalents that were anti-dilutive and excluded in the earnings per share computation.

22d) Development Stage Company

fThe Company complies with the Statement of Financial Accounting Standards (“SFAS”) No. 7, “Accounting and Reporting by Development Stage Enterprises” for its characterization of the Company as a development stage company. The Company is devoting substantially all of its present efforts to establish a new business and none of its planned principal operations have commenced. For the purpose of providing cumulative amounts for the statement of operations and cash flows, these amounts consider only those losses for the period from the Company’s development stage activity effective March 14, 2002 to October 31, 2009.

~~The Company~~e) ~~complies with the Statement of~~ Financial Accounting Standards (“SFAS”) No. 7, “Accounting and Reporting by Development Stage Enterprises” for its characterization of the Company as a development stage company. The Company is devoting substantially all of its present efforts to establish a new business and none of its planned principal operations have commenced. For the purpose of providing cumulative amounts for the statement of operations and cash flows, these amounts consider only those losses for the period from the Company’s development stage activity effective March 14, 2002 to October 31, 2008.Instruments

g) Financial Instruments

The carrying values of cash, advances receivable, prepaid expenses, accounts payable and accrued liabilities, advances payable and demand loans payable approximate their carrying values due to the short-term maturity of these instruments. Unless otherwise noted, it is management’s opinion that the Company is not exposed to significant interest, currency or credit risks arising from these financial instruments.

~~h) Recent Accounting Pronouncements~~21

~~Recent~~2. ~~Accounting Pronouncements~~SIGNIFICANT ACCOUNTING POLICIES (Continued)

f)	Preferred Stock

During the year ended October 31, 2009 the Company issued 100,000,000 shares of preferred stock. The preferred shares hold liquidation preference over common shares. There are no terms for conversion of preferred shares into common shares.

g)	Recent Accounting Pronouncements

In June 2008, the FASB issued FASB Staff Position EITF 03-6-1, Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities, (“FSP EITF 03-6-1”). FSP EITF 03-6-1 addresses whether instruments granted in share-based payment transactions are participating securities prior to vesting, and therefore need to be included in the computation of earnings per share under the two-class method as described in FASB Statement of Financial Accounting Standards No. 128, “Earnings per Share.” FSP EITF 03-6-1 is effective for financial statements issued for fiscal years beginning on or after December 15, 2008 and earlier adoption is prohibited. We are not required to adopt FSP EITF 03-6-1; neither do we believe that FSP EITF 03-6-1 would have material effect on our consolidated financial position and results of operations if adopted.

In May 2008, the Financial Accounting Standards Board (“FASB”) issued SFAS No. 163, “Accounting for Financial Guarantee Insurance Contracts-and interpretation of FASB Statement No. 60”. SFAS No. 163 clarifies how Statement 60 applies to financial guarantee insurance contracts, including the recognition and measurement of premium revenue and claims liabilities. This statement also requires expanded disclosures about financial guarantee insurance contracts. SFAS No. 163 is effective for fiscal years beginning on or after December 15, 2008, and interim periods within those years. SFAS No. 163 has no effect on the Company’s financial position, statements of operations, or cash flows at this time.

In May 2008, the Financial Accounting Standards Board (“FASB”) issued SFAS No. 162, “The Hierarchy of Generally Accepted Accounting Principles”. SFAS No. 162 sets forth the level of authority to a given accounting pronouncement or document by category. Where there might be conflicting guidance between two categories, the more authoritative category will prevail. SFAS No. 162 will become effective 60 days after the SEC approves the PCAOB’s amendments to AU Section 411 of the AICPA Professional Standards. SFAS No. 162 has no effect on the Company’s financial position, statements of operations, or cash flows at this time.

In March 2008, the Financial Accounting Standards Board, or FASB, issued SFAS No. 161, Disclosures about Derivative Instruments and Hedging Activities—an amendment of FASB Statement No. 133.

This standard requires companies to provide enhanced disclosures about (a) how and why an entity uses derivative instruments, (b) how derivative instruments and related hedged items are accounted for under Statement 133 and its related interpretations, and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance, and cash flows. This Statement is effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008, with early application encouraged. The Company has not yet adopted the provisions of SFAS No. 161, but does not expect it to have a material impact on its consolidated financial position, results of operations or cash flows.

2.	SIGNIFICANT ACCOUNTING POLICIES (Continued)

g)	Recent Accounting Pronouncements

In December 2007, the SEC issued Staff Accounting Bulletin (SAB) No. 110 regarding the use of a "simplified" method, as discussed in SAB No. 107 (SAB 107), in developing an estimate of expected term of "plain vanilla" share options in accordance with SFAS No. 123 (R), Share-Based Payment. In particular, the staff indicated in SAB 107 that it will accept a company's election to use the simplified method, regardless of whether the company has sufficient information to make more refined estimates of expected term. At the time SAB 107 was issued, the staff believed that more detailed external information about employee exercise behavior (e.g., employee exercise patterns by industry and/or other categories of companies) would, over time, become readily available to companies. Therefore, the staff stated in SAB 107 that it would not expect a company to use the simplified method for share option grants after December 31, 2007. The staff understands that such detailed information about employee exercise behavior may not be widely available by December 31, 2007. Accordingly, the staff will continue to accept, under certain circumstances, the use of the simplified method beyond December 31, 2007. The Company currently uses the simplified method for “plain vanilla” share options and warrants, and will assess the impact of SAB 110 for fiscal year 2009. It is not believed that this will have an impact on the Company’s consolidated financial position, results of operations or cash flows.

In December 2007, the FASB issued SFAS No. 160, Noncontrolling Interests in Consolidated Financial Statements—an amendment of ARB No. 51. This statement amends ARB 51 to establish accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. It clarifies that a noncontrolling interest in a subsidiary is an ownership interest in the consolidated entity that should be reported as equity in the consolidated financial statements. Before this statement was issued, limited guidance existed for reporting noncontrolling interests. As a result, considerable diversity in practice existed. So-called minority interests were reported in the consolidated statement of financial position as liabilities or in the mezzanine section between liabilities and equity. This statement improves comparability by eliminating that diversity. This statement is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2008 (that is, January 1, 2009, for entities with calendar year-ends). Earlier adoption is prohibited. The effective date of this statement is the same as that of the related Statement 141 (revised 2007). The Company will adopt this Statement beginning March 1, 2009. It is not believed that this will have an impact on the Company’s consolidated financial position, results of operations or cash flows.

In December 2007, the FASB, issued FAS No. 141 (revised 2007), Business Combinations’. This Statement replaces FASB Statement No. 141, Business Combinations, but retains the fundamental requirements in Statement 141. This Statement establishes principles and requirements for how the acquirer: (a) recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed, and any ~~noncontrolling~~ non controlling interest in the acquiree; recognizes and measures the goodwill acquired in the business combination or a gain from a bargain purchase; and (c) determines what information to disclose to enable users of the financial statements to evaluate the nature and financial effects of the business combination. This statement applies prospectively to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2008. An entity may not apply it before that date. The effective date of this statement is the same as that of the related FASB Statement No. 160, Noncontrolling Interests in Consolidated Financial Statements. The Company will adopt this statement beginning March 1, 2009. It is not believed that this will have an impact on the Company’s consolidated financial position, results of operations or cash flows.

2423

~~(b) recognizes~~2. ~~and~~SIGNIFICANT ~~measures~~ACCOUNTING ~~the~~POLICIES ~~goodwill acquired in the business combination or a gain from a bargain purchase; and~~ (cContinued) determines what information to disclose to enable users of the financial statements to evaluate the nature and financial effects of the business combination. This statement applies prospectively to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2008. An entity may not apply it before that date. The effective date of this statement is the same as that of the related FASB Statement No. 160, Noncontrolling Interests in Consolidated Financial Statements. The Company will adopt this statement beginning March 1, 2009. It is not believed that this will have an impact on the Company’s consolidated financial position, results of operations or cash flows.

g)	Recent Accounting Pronouncements

In February 2007, the FASB, issued SFAS No. 159, The Fair Value Option for Financial Assets and Liabilities—Including an Amendment of FASB Statement No. 115. This standard permits an entity to choose to measure many financial instruments and certain other items at fair value. This option is available to all entities. Most of the provisions in FAS 159 are elective; however, an amendment to FAS 115 Accounting for Certain Investments in Debt and Equity Securities applies to all entities with available for sale or trading securities. Some requirements apply differently to entities that do not report net income. SFAS No. 159 is effective as of the beginning of an entity’s first fiscal year that begins after November 15, 2007. Early adoption is permitted as of the beginning of the previous fiscal year provided that the entity makes that choice in the first 120 days of that fiscal year and also elects to apply the provisions of SFAS No. 157 Fair Value Measurements. The Company will adopt SFAS No. 159 beginning March 1, 2008 and is currently evaluating the potential impact the adoption of this pronouncement will have on its consolidated financial statements.

In September 2006, the FASB issued SFAS No. 157, Fair Value Measurements This statement defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles (GAAP), and expands disclosures about fair value measurements. This statement applies under other accounting pronouncements that require or permit fair value measurements, the Board having previously concluded in those accounting pronouncements that fair value is the relevant measurement attribute. Accordingly, this statement does not require any new fair value measurements. However, for some entities, the application of this statement will change current practice. This statement is effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. Earlier application is encouraged, provided that the reporting entity has not yet issued financial statements for that fiscal year, including financial statements for an interim period within that fiscal year. The Company will adopt this statement March 1, 2008, and it is not believed that this will have an impact on the Company’s consolidated financial position, results of operations or cash flows.

3. ~~PREPAID~~SOFTWARE ~~EXPENSES~~AND WEBSITE RIGHTS

Prepaid expenses as of October 31, 2006 consisted of a $140 in legal fees held in trust on behalf of the Company. As at July 31, 2007 the legal fees have been fully expensed. There are no additional prepaid expenses.

4. SOFTWARE AND WEBSITE RIGHTS

On November 8, 2006, the Company entered into a Software License Agreement (“Agreement”) with G.I. Enterprises, LTD., of KN Nevis, West Indies (the “Licensor”). Under the terms of the Agreement, the Company acquired a non exclusive license to both poker and casino software developed by the Licensor. The terms of the license agreement required a payment of a license fee amounting to $45,000 which has been paid and accounted for.

During ~~the~~ ~~current fiscal year~~2008, it has been determined that the domain name rights and software license rights are no longer viable and have, ~~been~~ accordingly, been written off.

54. LOANS PAYABLE AND PROMISSORY NOTE

~~(a)~~Promissory During the fiscal year ending October 31, 2006, the Company issued a Demand Loan for $500,000 to a third party to fund the first GFED deposit. After the collapse of the GFED transaction, $322,260 was repaid to the lender, leaving a principle balance owing of $177,740. The loan is payable on demand and bears interest at a rate of 10% per annum accrued monthly.Note

~~(b)~~At ~~During the fiscal year ending~~ October 31, ~~2006~~2009 and 2008, the Company ~~issued~~holds a ~~Demand~~promissory ~~Loan~~note ~~for~~payable ~~$500,000~~ to aan ~~third~~unrelated third-party toentity ~~fund~~in the ~~second~~amount ~~GFED~~of ~~deposit~~$56,055. This ~~After~~note ~~the~~accrues ~~collapse~~interest ofat ~~the~~a ~~GFED~~rate ~~transaction,~~of ~~$410,000~~10.0% ~~was~~per ~~repaid~~annum. The tonote ~~the~~has ~~lender,~~no ~~leaving~~formal apayment ~~principle balance owing of $90~~terms,~~000.~~ ~~The~~other ~~loan~~than isbeing ~~payable~~due on demand. As ~~and~~of ~~bears~~October ~~interest~~31, at2009, athe ~~rate~~Company ofhad ~~10%~~received no ~~per~~formal ~~annum~~demand ~~accrued~~for ~~monthly~~payment from the lender.

The principle balance owing on the acquisition deposit loans in 5 (a) and 5 (b) amounts to $267,740. The Company has not received a formal demand for payment of the outstanding principle from either lender and is relying on continued support from its lenders while it restructures its finances and pursues other business opportunities and acquisitions.24

~~(c) During the fiscal year ending October 31, 2006, the Company received private placement advances, held in a lawyers’ trust account, totaling $2,000,000~~4. ~~The~~LOANS ~~funds~~PAYABLE ~~were~~AND toPROMISSORY beNOTE used as a down payment associated with the acquisition of GFED. With the termination of the acquisition, $1,940,000 was returned to the lenders, leaving a balance of $60,000 owing to one lender at year end. The Promissory Note bears interest at a rate of 10% per annum accrued monthly. On November 2, 2006, the balance of $7,923 held in trust was returned to this lender. $3,978 was applied against accrued interest and the remaining $3,945 was applied against the principal leaving a balance of $56,055 outstanding. The Company has not received a formal demand for payment of the outstanding principle from the lender and is relying on continued support from this lender while it restructures its finances and pursues other business opportunities and acquisitions.(Continued)

~~(d)~~Non-Interest ~~The~~Bearing ~~Company~~Convertible ~~has~~Demand received advances from a third party to cover operating costs and the $45,000 payment for the gaming software license. Advances, consisting of three separate loans, total $918,853 as at October 31, 2008 and are payable on demand and have no fixed terms of repayment. The advances bear interest at a rate of 10% per annum accrued monthly. The Company has not received a formal demand for payment of the outstanding principle from this lender and is relying on continued support from the lender to allow it to restructure its finances.Loans

6On June 1, 2008 the Company held a $267,740 note payable which was acquired by a third-party and re-written in the form of a six-month non-interest bearing convertible promissory note. The ~~SHARE~~notes ~~CAPITAL~~became convertible at the option of the Company at a conversion price equal to 70% of the closing market price on the date of notification. Pursuant to this beneficial conversion feature of the notes, the Company recorded a discount on debt in the amount of $114,746. At December 1, 2008, which is the earliest conversion date, the Company recognized all of the interest expense related to the discount of notes payable of $114,746 as the promissory note has an indefinite life. On May 1, 2009, $90,000 of this note was converted into 9,000,000 shares of common stock at $0.01 per share, leaving $177,740 in unpaid principal as of October 31, 2009. Contractual simple interest was accrued through January 31, 2008, but by mutual consent has been discontinued since that date. As of October 31, 2009, the note is in default. However, the Company has received no formal demand for payment.

On June 1, 2008 the Company held $918,853 in notes payable which were acquired by a) ~~Authorized:~~third-party and re-written in the form of one non-interest bearing convertible promissory note. The note became convertible at the option of the Company at a conversion price equal to 70% of the closing market price on the date of notification. Pursuant to this beneficial conversion feature of the notes, the Company recorded a discount on debt in the amount of $393,794, At December 1, 2008, which is the earliest conversion date, the Company recognized all of the interest expense related to the discount of notes payable of $393,794 as the promissory note has an indefinite life. Contractual simple interest was accrued through January 31, 2008, but by mutual consent has been discontinued since that date. As of October 31, 2009, the note is in default. However, the Company has received no formal demand for payment.

~~100,000,000 preferred~~5. ~~shares~~PREFERRED ~~with~~AND aCOMMON ~~par value of $0.001 per share~~STOCK

~~100~~During the year ended October 31,~~000~~ 2008, the Company issued 12,000 ~~common~~ shares ~~with~~of acommon ~~par~~stock ~~value~~as payment on $30,000 of debt. The shares were valued at $02.~~001~~50 per share, and the debt was considered satisfied in full upon issuance of the shares.

b)During ~~Issued:~~the year ended October 31, 2009, the Company issued 5,500,000 shares of common stock as payment on $60,000 of debt. The shares were valued at $0.01 per share, and the debt was considered satisfied in full upon issuance of the shares. The Company issued an additional 9,000,000 shares of common stock pursuant to the conversion of a $90,000 demand loan. These shares were valued at $0.01 per share and the demand loan was considered satisfied in full upon issuance of the shares.

Also during the year ended October 31, 2009, the Company issued 30,000,000 shares of common stock in order to acquire certain assets and intellectual property of an unrelated third-party entity. As of October 31, ~~2008~~2009 ~~there~~the ~~have~~Company ~~been~~had nonot ~~preferred~~completed ~~shares~~its due diligence with respect to these assets and intellectual property, and the issued shares are held by the Company and classified as treasury stock in these financial statements.

AsAdditionally, of during the year ended October 31, ~~2008~~2009, the ~~number~~Company issued 100,000,000 shares of ~~issued~~preferred stock to its President and ~~outstanding~~sole ~~common~~director as payment for $30,000 of services rendered to the Company. The preferred shares ~~was 39234~~were valued at $0.003.

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c)6. ~~Stock~~RELATED ~~Option~~PARTY ~~Plan:~~TRANSACTIONS

AsOn ~~at October~~May 311, ~~2008~~2009 the Company issued 100,000,000 ~~there~~shares ~~were~~of nopreferred stock ~~options~~to ~~available~~its President and Sole Director as payment for $30,000 for services rendered to the company.

dDuring the years ended October 31, 2009 and 2008, the Company’s president and sole director paid various Company expenses on behalf of the Company. The Company records these transactions as increases in its related-party payable account, and makes payments back to the related-party when either a) ~~Weighted~~necessary cash funds are available, or b) the related-~~average~~party ~~shares~~agrees to accept common stock in lieu of cash payments. At October 31, 2009 and 2008, the outstanding: balance on this related-party payable account was $142,484 and $191,216, respectively.

Loss per share has been calculated using the weighted-average number of common shares outstanding during the year of 33,267. Diluted loss per shares does not differ from basic loss per share as all potential common shares are anti-dilutive.

e) On October 1, 2008, the Company issued 12,000 shares of common stock to retire $30,000 of debt.

7. RELATED PARTY TRANSACTION

During the year, there were no related party transactions.

8.	INCOME TAXES

The Company has adopted FASB 109 to account for income taxes. The Company currently has no issue that creates timing differences that would mandate deferred tax expense. Net operating losses would create possible tax assets in future years. Due to the uncertainty as to the utilization of net operating loss carry forwards, an evaluation allowance has been made to the extent of any tax benefit that net operating losses may generate. No provision for income taxes has been recorded due to the net operating loss ~~carryforward~~carry forward of $53,~~490~~929,~~816~~704 as of October 31, 2009 ($3,577,119 as of October 31, 2008) that will be offset against further taxable income. No tax benefit has been reported in the financial statements.

Deferred tax assets and the valuation account as of October 31, 2008 and ~~2007~~2009 are as follows:

	2008			2007
	2009			2008
Deferred tax asset:
Net operating loss carryforward	$	53,~~490~~929,~~816~~704	)	$	53,~~440~~577,~~531~~119	)
Valuation allowance		(53,~~490~~929,~~816~~704	)		(53,~~440~~577,~~531~~119	)
	$	-		$	-

The components of income tax expense are as follows:

	2008			2007
Current Federal Tax	$	-		$	-
Current State Tax		-			-
Change in NOL benefit		(114,751	)		(95,140	)
Change in allowance	$	114,751		$	95,140
	$	-		$	-

The Company has incurred losses that can be carried forward to offset future earnings if conditions of the Internal Revenue Codes are met.

9. SUBSEQUENT EVENTS

On ~~November~~ 29October 13, ~~2007~~2009, the Company ~~received~~entered ~~loan~~into ~~proceeds~~an inagreement with Only Natures Finest, Inc., whereby the ~~amount~~Company ofwould ~~$29~~issue 4,~~975 which~~000,000 isof ~~payable~~its oncommon ~~demand~~shares to ONF in return for approximately 88,000,000 ~~unsecured~~ONF ~~and~~shares ~~bears~~which ~~interest~~was atto represent a ~~rate~~70% ownership of ~~10% per annum~~ONF. The ~~proceeds~~Company’s ofshares ~~the~~were ~~loan~~issued on November 13, 2009 but are being held ~~used~~by ~~for~~the ~~general~~Company ~~working capital~~pending ~~purposes~~completion of the due diligence process.

On In November 7,2009 ~~2008~~the Company, ~~Principal~~through ~~Capital~~its ~~Group,~~wholly ~~Inc,~~owned ~~(DE)~~subsidiary ~~acquired~~Global ~~64,876,154~~Wind ~~pre reverse~~Energy ~~split~~Corporation, ~~shares~~entered ofinto ~~common~~an ~~stock~~agreement ~~from~~to aacquire, ~~shareholder~~in ~~through~~return for a ~~Stock~~10% ~~Purchase Agreement~~interest ~~and~~in ~~changed~~Global, the ~~name~~existing entitlements on 2,750 acres of ~~the~~real ~~company~~estate, to ~~Principal~~prepare ~~Capital~~and ~~Group,~~enhance ~~Inc~~the real estate to produce electrical energy. ~~(NV).~~

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~~Effective November~~ITEM ~~10,~~9. ~~2008,~~CHANGES ~~the~~IN ~~company~~AND ~~effectuated~~DISAGREEMENTS ~~the~~WITH ~~recapitalization~~ACCOUNTANTS ofON ~~the~~ACCOUNTING ~~Company through~~AND aFINANCIAL ~~reverse split where by the holders of common shares received 1 common share for each 2500 common shares owned~~DISCLOSURE.

~~On November~~The 7PCAOB, ~~2008~~on August 27, 2009 revoked the ~~company~~registration ~~appointed~~of aMoore ~~new~~& ~~board~~Associates, Chartered because of ~~directors~~violations of PCAOB rules and ~~new~~auditing standards in auditing financial statements and PCAOB rules and quality controls standards, and Section (10(b) of the Securities Exchange Act of 1934 and rule 10b-5 there under, and non-cooperation ~~officers~~with a Board investigation.

~~On December~~None ~~19,2008~~of athe ~~majority~~reports, of Moore, on the ~~shareholders~~Company’s ~~declared~~financial ~~the~~statements ~~company~~for ineither ~~default under~~of the ~~Stock~~past ~~Purchase~~two ~~Agreement~~years or subsequent periods contained an adverse opinion or disclaimer of opinion, ~~and~~or ~~voted~~was toqualified ~~remove~~or ~~the~~modified ~~newly~~as ~~appointed officers~~to ~~and~~uncertainty, ~~directors~~audit ~~and~~scope ~~appointed~~or ~~Alan~~accounting ~~Miller~~principles, except that the ~~former~~Registrant’s ~~director~~audited ~~and~~financial statements contained ~~officer~~in asits Form 10K for the ~~sole~~fiscal ~~director~~years ~~and~~ended ~~President~~October 31, 2007 and ~~Secretary~~2008, of a going concern qualification in the ~~company~~ registrant’s audited financial statement.

~~ITEM~~The 8.Registrant ~~CHANGES~~initially INengaged ~~AND~~Seale ~~DISAGREEMENTS~~and ~~WITH~~Beers ~~ACCOUNTANTS~~as ONits ~~ACCOUNTING~~principal ~~AND~~independent ~~FINANCIAL~~accounting ~~DISCLOSURE~~firm effective August 27, 2009, but before they were required to report on any of the Registrant’s financial statements they resigned and the company retained Sadler, Gibbs and Associates as its principal independent accounting firm. There were no disagreements between the company and Seale and Beers.

~~There have~~ITEM ~~been no changes in or disagreements with accountants or our auditors~~9A. ~~Moore~~ &CONTROLS ~~Associates,~~AND ~~Chartered of Las Vegas, Nevada has been our auditor since our fiscal year ending October 31, 2005~~PROCEDURES.

~~ITEM~~As 8Arequired by Rule 13a-15 under the Exchange Act, as of the date of the filing of this annual report on Form 10-K (the “Evaluation Date”), being October 31, 2008, we have carried out an evaluation of the effectiveness of the design and operation of our company's disclosure controls and procedures. ~~CONTROLS~~This ~~AND~~evaluation ~~PROCEDURES~~was carried out under the supervision and with the participation of our management, including our President (who is acting as our Chief Executive Officer and Chief Financial Officer). Based upon that evaluation, our President (who is acting as our Chief Executive Officer and Chief Financial Officer) concluded that as of the Evaluation Date, our disclosure controls and procedures are effective to ensure that material information relating to it would be made known to us by others, particularly during the period in which this annual report on Form 10-K was being prepared. There have been no changes in our internal controls over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect our internal controls over financial reporting.

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our company's reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is accumulated and communicated to management, including our President (who is acting as our Chief Executive Officer and Chief Financial Officer) as appropriate, to allow timely decisions regarding required disclosure. There were no significant changes in our internal controls or in other factors that could significantly affect our disclosure controls and procedures subsequent to the Evaluation Date, nor any significant deficiencies or material weaknesses in such disclosure controls and procedures requiring corrective actions.

PART III

ITEM 910. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS; COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE ACT.

Name	Age	Office(s) Held
Alan Miller	4950	Director, President, , Secretary
Chip Hackley	38	Director, Chief Excutive Officer
Lewis Kurtz	80	Director, Secretary

On November 7, 2008 certain shareholders of the Company entered into a definitive stock purchase agreement with various shareholders of Principal Capital Group, Inc., a Nevada corporation, to acquire a controlling interest in the Company. As a result of the purchasers not completing their obligations pursuant to the terms of that agreement, a majority of the shareholders of the Company, voted to reverse the transaction, remove the management, newly elected directors and officers and re-appointed Alan Miller as the sole director and officer of the Company.

Alan Miller has worked as a security broker and an executive for a variety of companies during his career specializing in the securities industry. In 1990 he funded Winchester Securities, a brokerage firm based in Kansas City, Kansas. In 2008 he served as a director for Fortuna Gaming Corp, a Nevada Corporation.

28Chip Hackley and Lewis Kurtz were elected to their respective positions on October 9th, 2009, at which time Alan Miller resigned. There are no compensation arrangements with respect to Mr. Hackley or Mr. Kurtz.

Term of Office

Directors are appointed for a one-year term to hold office until the next annual general meeting of our shareholders or until removed from office in accordance with our bylaws. Our officers are appointed by our board of directors and hold office until removed by the board.

Significant Employees

We have no significant employees other than our officers and directors. We conduct our business through agreements with consultants and arms-length third parties.

Committees of the Board of Directors

We presently do not have an audit committee, compensation committee, nominating committee, an executive committee of our board of directors, stock plan committee or any other committees.

Audit Committee Financial Expert

Our board of directors has determined that it does not have a member of its audit committee that qualifies as an “audit committee financial expert” as defined in Item 401(e) of Regulation S-B, and is “independent” as the term is used in Item 7(d)(3)(iv) of Schedule 14A under the Securities Exchange Act of 1934, as amended. We believe that retaining an independent director who would qualify as an “audit committee financial expert” would be overly costly and burdensome and is not warranted in our circumstances given the early stages of our development and the fact that we have not generated any material revenues to date.

Code of Ethics

We have not yet adopted a corporate code of ethics. Our board of directors is considering establishing a code of ethics to deter wrongdoing and promote honest and ethical conduct; provide full, fair, accurate, timely and understandable disclosure in public reports; comply with applicable laws; ensure prompt internal reporting of code violations; and provide accountability for adherence to the code.

Involvement in Certain Legal Proceedings

Our directors, executive officers and control persons have not been involved in any of the following events during the past five years:

1.	any bankruptcy petition filed by or against any business of which such person was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time;
2.	any conviction in a criminal proceeding or being subject to a pending criminal proceeding (excluding traffic violations and other minor offences);
3.	being subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his involvement in any type of business, securities or banking activities; or
4	being found by a court of competent jurisdiction (in a civil action), the Commission or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended, or vacated.

1.	any bankruptcy petition filed by or against any business of which such person was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time;
2.	any conviction in a criminal proceeding or being subject to a pending criminal proceeding (excluding traffic violations and other minor offences);
3.	being subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his involvement in any type of business, securities or banking activities; or
4.	being found by a court of competent jurisdiction (in a civil action), the Commission or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended, or vacated.

Compliance with Section 16(a) of the Securities Exchange Act

Section 16(a) of the Exchange Act requires our executive officers and directors, and persons who own more than 10% of a registered class of our equity securities (“Reporting Persons”), to file reports of ownership and changes in ownership with the SEC. Reporting Persons are required by SEC regulations to furnish us with copies of all forms they file pursuant to Section 16(a). Based solely on our review of the copies of such reports received by it, and written representations from certain Reporting Persons that, other than as described below, no other reports were required for those persons, we believe that, during the year ended October 31, 2008, the Reporting Persons complied with all Section 16(a) filing requirements applicable to them.

No one with a principal position has failed to file, on a timely basis, the identified reports required by section 16(a) of the Exchange Act during the most recent fiscal year.

30ITEM 11. EXECUTIVE COMPENSATION

ITEM 10. EXECUTIVE COMPENSATION

Summary Compensation Table

The following table sets forth summary information concerning compensation paid by or accrued for services rendered to us in all capacities during the past three fiscal years to our Chief Executive Officer and to each additional executive officer whose salary and bonus exceeded $100,000 (the “Named Executive Officer.”)

SUMMARY COMPENSATION TABLE

Annual Compensation

~~Long-Term Compensation~~

Long-Term Compensation

~~Awards~~

~~Payouts~~

Awards

Payouts

Name And Principal Position

Year

~~Salary ($)~~

~~Bonus~~Salary ($)

~~(1) Other Annual Compensation ($)~~

Bonus ($)

~~Restricted Stock Awards ($)~~

~~Securities~~(1) ~~Underlying~~Other ~~Options/~~Annual ~~SARs~~Compensation (#$)

~~LTIP Payouts ($)~~

~~All~~Restricted ~~Other~~Stock ~~Compensation~~Awards ($)

Securities Underlying Options/ SARs (#)

LTIP Payouts ($)

All Other Compensation ($)

Richard Ritter v.Raffay

Richard Ritter v.Raffay

(1)	paid as consulting fees to Mr. Waugh from July, 2005 to October, 2006.

Mr. Douglas Waugh was our president and director from September 1, 2005 to October 4, 2006. Mr. Richard Von Ratter has not received any compensation since taking over the presidency on October 1, 2006.

Mr. Alan Miller was the company president since July 3, 2008 and although he received no regular compensation, the company agreed to award him 100,000,000 preferred shares having a par value of $.001 each. This reward was recorded as an expense of $30,000.

Stock Option Grants

As of the date of this annual report on Form 10-KSB, we do not have any outstanding options, warrants to purchase our common stock or securities convertible into shares of our common stock.

Long-Term Incentive Plans

There are no arrangements or plans in which we provide pension, retirement or similar benefits for directors or executive officers, except that our directors and executive officers may receive stock options at the discretion of our board of directors. We do not have any material bonus or profit sharing plans pursuant to which cash or non-cash compensation is or may be paid to our directors or executive officers, except that stock options may be granted at the discretion of our board of directors.

We have no plans or arrangements in respect of remuneration received or that may be received by our executive officers to compensate such officers in the event of termination of employment (as a result of resignation, retirement, change of control) or a change of responsibilities following a change of control, where the value of such compensation exceeds $60,000 per executive officer.

Employment Contracts, Termination of Employment and Change In Control Arrangements

We have not entered into any employment agreements with our officers and directors.

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ITEM 1112. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The following table sets forth certain information concerning the number of shares of our common stock owned beneficially as of ~~January~~February 2515, ~~2007~~2009 by: (i) each person (including any group) known to us to own more than five percent (5%) of any class of our voting securities, (ii) each of our directors, (iii) each of our named executive officers; and (iv) officers and directors as a group. Unless otherwise indicated, the shareholders listed possess sole voting and investment power with respect to the shares shown.

	Name and Address	Amount and Nature of	Percentage of
Title of Class	Of Beneficial Owner	Beneficial Ownership	Common Stock ~~(1)~~
Common Stock	All Officers and Directors	Nil	0.0%

(1) Based on 27,234 shares of our common stock issued and outstanding as of January 31, 2008. Under Rule 13d-3, certain shares may be deemed to be beneficially owned by more than one person (if, for example, persons share the power to vote or the power to dispose of the shares). In addition, shares are deemed to be beneficially owned by a person if the person has the right to acquire the shares (for example, upon exercise of an option) within 60 days of the date as of which the information is provided. In computing the percentage ownership of any person, the amount of shares outstanding is deemed to include the amount of shares beneficially owned by such person (and only such person) by reason of these acquisition rights. As a result, the percentage of outstanding shares of any person as shown in this table does not necessarily reflect the person’s actual ownership or voting power with respect to the number of shares of common stock actually outstanding on January 31, 2008

Change in Control

We are not aware of any arrangement that might result in a change in control in the future.

Securities Authorized for Issuance under Equity Compensation Plans

The Company does not have any equity compensation plans.

ITEM 1213. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS. Since the date of incorporation, we have not been a party to any transaction, proposed transaction, or series of transactions in which the amount involved exceeded $60,000, and in which, to our knowledge, any of the following persons had, or is to have, a direct or indirect material interest: a director or executive officer of our company; a nominee for election as a director of our company; a beneficial owner of more than five percent of the outstanding shares of our common stock; or any member of the immediate family of any such person.

Since the date of incorporation, we have not been a party to any transaction, proposed transaction, or series of transactions in which the amount involved exceeded $60,000, and in which, to our knowledge, any of the following persons had, or is to have, a direct or indirect material interest: a director or executive officer of our company; a nominee for election as a director of our company; a beneficial owner of more than five percent of the outstanding shares of our common stock; or any member of the immediate family of any such person.31

32 ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Audit Fees The aggregate fees billed for the fiscal year ended October 31, 2008 for professional services rendered by the principal accountant, Moore & Associates, Chartered Accountant and Advisors, for the audit of our annual financial statements, review of our October 31, 2008 Form 10-K, review of our January 31, 2008, April 30, 2008 and July 31, 2008 Form 10-QSB’s were as follows: Audit Fee $ 3,500 Review of Quarterly Reports $ 2,250 Audit Related Fees None. Tax Fees None. All Other Fees None.

ITEM 1315. EXHIBITS

Exhibit Number	Description of Exhibit
3.1	Articles of Incorporation (1)
3.2	Amended Bylaws (1)
10.1	Wool Bay Property Option Agreement dated May 16, 2002 between 4763 NWT LTD. and North American General Resources Corporation (1)
10.2	Wool Bay Property Option Agreement dated July 5, 2002 between 4763 NWT LTD. and North American General Resources Corporation (1)
10.3	Amendment No. 1 to Wool Bay Property Option Agreement dated April 15, 2003 between 4763 NWT LTD. And North American General Resources Corporation (1)
10.4	Asset Purchase Agreement dated October 25, 2004 among CMC Investments Inc., MoneyFlow Capital Corp., Canadian Cheque Cashing Corporation, Wayne Mah, and North American General Resources Corp.
10.5	Stock Purchase Agreement dated November 7, 2008.
23.1	Consent of Independent Registered Accounting Firm
31	Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 302 of the Sarbanes- Oxley Act of 2002
32	Certification of 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

(1)	Filed with the SEC as an exhibit to our Form SB-2 Registration Statement originally filed on January 16, 2004, as amended.

~~ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES.~~32

The aggregate fees billed for the fiscal year ended October 31, 2008 for professional services rendered by the principal accountant, Moore & Associates, Chartered Accountant and Advisors, for the audit of our annual financial statements, review of our October 31, 2008 Form 10-K, review of our January 31, 2007, April 30, 2007 and July 31, 2007 Form 10-QSB’s were as follows:

Audit Fee	$ 3,750
Review of Quarterly Reports	$ 5,250

Audit Related Fees

None.

Tax Fees

None.

All Other Fees

None.

SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	PRINCIPAL CAPITAL GROUP, INC.
	Gazoo Energy Group, Inc.
	By:	/s/ ~~Alan~~Chip ~~Miller~~Hackley
		Alan B. Miller
		Chip Hacley
		President, Secretary
		Chief Executive Officer
		and Director
		Date: January 29, 2009
		Date: February 15, 2010

In accordance with the Exchange Act, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

	By:	/s/ ~~Alan~~Chip ~~Miller~~Hackley
		Alan B. Miller
		Chip Hackley
		President, Secretary
		Chief Executive Officer
		and Director
		Date: January 29, 2009
		Date: February 15, 2010

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