PureRay (PURY) 10QSB 2007 Q0 Quarterly report (small business)

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

FORM 10-QSB

               (Mark One)

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

	For the quarterly period endedJanuary 31, 2007
[   ]	TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
	ACT OF 1934
	For the transition period from  ____________	to  _____________
Commission File No.000-32089
NORTH AMERICAN NATURAL GAS, INC.
(Exact name of small business issuer as specified in its charter)
Washington		91-2023071
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)

580 Hornby Street, Suite 210
Vancouver, British Columbia, Canada V6C 3B6
(Address of principal executive offices)

(604) 687-6991
Issuer's telephone number

Check whether the Issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the ExchangeAct during the past 12 months (or for such shorter period that the Company was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes [X]  No [   ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of theExchange Act).

Yes [X] No [    ]  

APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the Issuer's classes of common equity, as of the latest practicable date:March 1, 2007: 19,812,500 common shares 

==============================================================================================================

PART 1 – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Our financial statements are stated in United States Dollars (US$) and are prepared in accordance withUnited States Generally Accepted Accounting Principles.

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North American Natural Gas, Inc.
(A Development Stage Company)
Balance Sheets
(Expressed in U.S. Dollars)
	January 31		April 30,
	2007		2006
	$		$
	(unaudited)
ASSETS
Current Assets
Cash	7,984		5,381
Total Assets	7,984		5,381
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities
Accounts payable	13,358		7,164
Accrued liabilities	-		365
Amount due to a related party (Note 3(b))	29,500		9,500
Total Liabilities	42,858		17,029
CONTINGENCIES (Note 1)
Stockholders' Deficit
Preferred Stock: 20,000,000 shares authorized, $0.0001 par value;
None issued and outstanding	–		–
Common Stock: 100,000,000 shares authorized, $0.0001 par value;
19,812,500 shares issued and outstanding	1,981		1,981
Additional Paid-in Capital	309,019		309,019
Donated Capital	2,000		2,000
Deficit Accumulated During the Development Stage	(347,874	)	(324,648	)
Total Stockholders' Deficit	(34,874	)	(11,648	)
Total Liabilities and Stockholders' Deficit	7,984		5,381

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

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North American Natural Gas, Inc.
(A Development Stage Company)
Statements of Operations
(Expressed in U.S. Dollars)
(unaudited)
									Accumulated from
	Three Months Ended				Nine Months Ended				March 24, 2000
	January 31,				January 31,				(Date of Inception)
									to January 31,
	2007		2006		2007		2006		2007
	$		$		$		$		$
Revenue	–		–		–		–		–
Expenses
					--
Business development	–		–		–		–		24,475
Consulting fees	–		–		–		–		25,000
Director’s fees	1,500		1,500		4,500		4,500		27,500
Finance costs	–		–		–		–		75,975
License written-off	–		–		–		–		35,000
Office and rent (Note 3(a))	360		431		1,257		1,057		128,816
Professional fees	4,500		2,750		15,400		10,450		13,574
Transfer agent and filing fees	1,660		520		2,069		1,993		18,516
Travel	–		–		–		–		863
Total Expenses	8,020		5,201		23,226		18,000		349,719
Net Loss Before Other Income	(8,020	)	(5,201	)	(23,226	)	(18,000	)	(349,719	)
Other Income
Interest income	–		–		–		–		1,845
Net Loss for the Period	( 8,020	)	( 5,201	)	(23,226	)	(18,000	)	(347,874	)
Net Loss Per Share – Basic
and Diluted	–		–		–		–
Weighted Average Number of
Shares Outstanding	19,812,500		19,812,500		19,812,500		19,812,500

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

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North American Natural Gas, Inc.
(A Development Stage Company)
Statements of Cash Flow
(Expressed in U.S. Dollars)
(unaudited)
	For the Nine		For the Nine
	Months Ended             Months Ended
	January 31,		January 31,
	2007		2006
	$		$
Operating Activities
Net loss for the period	(23,226	)	(18,000	)
Adjustment to reconcile net loss to net cash used in operating activities
Donated rent	–		800
Changes in operating assets and liabilities
Accounts payable	6,194		2,317
Accrued liabilities	(365	)	–
Net Cash Used in Operating Activities	(17,397	)	(14,883	)
Financing Activities
Advances from a related party	20,000		9,500
Net Cash Provided by Financing Activities	20,000		9,500
Decrease In Cash	2,603		(5,383	)
Cash - Beginning of Period	5,381		15,078
Cash - End of Period	7,984		9,695
Supplemental Disclosures
Interest paid	–		–
Income tax paid	–		–

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

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North American Natural Gas, Inc.
(A Development Stage Company)
Notes To The Financial Statements
January 31, 2007
(Expressed in U.S. Dollars)
(Unaudited)

1.	Nature of Operations and Continuance of Business
	North American Natural Gas, Inc. herein (the “Company”) was incorporated in the State of Washington, U.S.A. on March 24, 2000 and is a Development Stage Company as defined by Statement of Financial Accounting Standard (“SFAS”) No. 7 “Accounting and Reporting for Enterprises in the Development Stage”. The Company acquired a license to market and distribute vitamins, minerals, nutritional supplements, and other health and fitness products in which the grantor of the license offers these products for sale from various suppliers on their Web Site. The Company was also developing a marketing strategy to offer personal care products through a kiosk-based ordering system.
	During fiscal 2003 the Company changed its name from FAR Group, Inc. to North American Natural Gas, Inc. as it had anticipated that it would undertake a new business purpose in the oil and gas exploration industry. The Company was unsuccessful in its efforts to raise the required capital to acquire the oil and gas properties contemplated and reverted back to its original business to exploit the license to market and sell vitamins and other health and fitness products. The Company is currently exploring new business opportunities after not renewing its license to market health and fitness products.
	These financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The Company has never generated revenues since inception and has never paid any dividends and is unlikely to pay dividends or generate earnings in the immediate or foreseeable future. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability of the Company to obtain necessary equity financing to continue operations, confirmation of the Company’s interests in the underlying properties, and the attainment of profitable operations. As at January 31, 2007, the Company has never generated any revenues, has a working capital deficit of $34,874 and has accumulated losses of $347,874 since inception. These factors raise substantial doubt regarding the Company’s ability to continue as a goin g concern. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.
2.	Summary of Significant Accounting Policies
	(a)	Basis of Accounting
		These financial statements are prepared in conformity with accounting principles generally accepted in the United States and are presented in United States dollars.
	(b)	Year end
		The Company’s fiscal year end is April 30.
	(c)	Use of Estimates
		The preparation of financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the periods. Actual results could differ from those estimates.

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North American Natural Gas, Inc.
(A Development Stage Company)
Notes To The Financial Statements
January 31, 2007
(Expressed in U.S. Dollars)
(Unaudited)

2.	Summary of Significant Accounting Policies (continued)
	(d)	Cash and Cash Equivalents
		The Company considers all highly liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents.
	(e)	Financial Instruments
		The fair values of cash, accounts payable, accrued liabilities, and due to a related party were estimated to approximate their carrying values due to the immediate short-term maturity of these financial instruments. As the Company operates in Canada, virtually all of its assets and liabilities are giving rise to significant exposure to market risks from changes in foreign currency rates. The financial risk is the risk to the Company’s operations that arise from fluctuations in foreign exchange rates and the degree of volatility of these rates. Currently, the Company does not use derivative instruments to reduce its exposure to foreign currency risk. Management does not believe the Company is exposed to significant credit or interest rate risk.
	(f)	Concentration of Credit Risk
		Financial instruments that potentially subject the company to credit risk consist principally of cash. Cash is deposited with a high quality credit institution.
	(g)	Long-lived Assets
		In accordance with SFAS No. 144, “Accounting for the Impairment or Disposal Of Long-Lived Assets”, the carrying value of intangible assets and other long-lived assets is reviewed on a regular basis for the existence of facts or circumstances that may suggest impairment. The Company recognizes an impairment when the sum of the expected undiscounted future cash flows is less than the carrying amount of the asset. Impairment losses, if any, are measured as the excess of the carrying amount of the asset over its estimated fair value.
	(h)	Foreign Currency Translation
		The Company's functional currency is the United States dollar. Occasional transactions occur in Canadian currency, and management has adopted SFAS No. 52, “Foreign Currency Translation”. Monetary assets and liabilities denominated in foreign currencies are translated into United States dollars at rates of exchange in effect at the balance sheet date. Non-monetary assets, liabilities and items recorded in income arising from transactions denominated in foreign currencies are translated at rates of exchange in effect at the date of the transaction.
	(i)	Income Taxes
		Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company has adopted SFAS No. 109 “Accounting for Income Taxes” as of its inception. Pursuant to SFAS No. 109, the Company is required to compute tax asset benefits for net operating losses carried forward. The potential benefits of net operating losses have not been recognized in these financial statements because the Company cannot be assured it is more likely than not it will utilize the net operating losses carried forward in future years.

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North American Natural Gas, Inc.
(A Development Stage Company)
Notes To The Financial Statements
January 31, 2007
(Expressed in U.S. Dollars)
(Unaudited)

2.	Summary of Significant Accounting Policies (continued)
	(j)	Revenue Recognition
		The Company will receive, from the Grantor of the license, commissions of one-half of all the profit on all sales made through the Grantor’s Web Site. The commission revenue will be recognized in the period the sales have occurred. The Company recognizes revenue in accordance with Securities and Exchange Commission Staff Accounting Bulletin No. 104, “Revenue Recognition in Financial Statements.” Revenue is recognized only when the price is fixed or determinable, persuasive evidence of an arrangement exists, the service is performed, and collectibility is reasonably assured. The Company will report the commission revenue on a net basis as the Company is acting as an Agent for the Grantor and does not assume any risks or rewards of the ownership of the products. This policy is prospective in nature, as the Company has not yet generated any revenue.
	(k)	Comprehensive Loss
		SFAS No. 130, “Reporting Comprehensive Income,” establishes standards for the reporting and display of comprehensive loss and its components in the financial statements. As at January 31, 2007 and 2006, the Company has no items that represent comprehensive loss and, therefore, has not included a schedule of comprehensive loss in the financial statements.
	(l)	Basic and Diluted Net Income (Loss) per Share
		The Company computes net income (loss) per share in accordance with SFAS No. 128, "Earnings per Share". SFAS No. 128 requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of common shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period including stock options, using the treasury stock method, and convertible preferred stock, using the if-converted method. In computing Diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive. Loss per share information does not include the effect of any potential commo n shares, as their effect would be anti-dilutive.
	(m)	Interim Financial Statements
		These interim financial statements have been prepared on the same basis as the annual financial statements and in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company’s financial position, results of operations and cash flows for the periods shown. The results of operations for such periods are not necessarily indicative of the results expected for a full year or for any future period.

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North American Natural Gas, Inc.
(A Development Stage Company)
Notes To The Financial Statements
January 31, 2007
(Expressed in U.S. Dollars)
(Unaudited)

2.	Summary of Significant Accounting Policies (continued)
	(n)	Recent Accounting Pronouncements
		In September 2006, the Financial Accounting Standards Board (“FASB”) issued SFAS No. 158, “Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans – an amendment of FASB Statements No. 87, 88, 106, and 132(R)”. This statement requires employers to recognize the overfunded or underfunded status of a defined benefit postretirement plan (other than a multiemployer plan) as an asset or liability in its statement of financial position and to recognize changes in that funded status in the year in which the changes occur through comprehensive income of a business entity or changes in unrestricted net assets of a not-for- profit organization. This statement also requires an employer to measure the funded status of a plan as of the date of its year-end statement of financial position, with limited exceptions. The provisions of SFAS No. 158 are effective for employers with publicly traded equity securities as of the en d of the fiscal year ending after December 15, 2006. The adoption of this statement is not expected to have a material effect on the Company's future reported financial position or results of operations.
		In September 2006, the FASB issued SFAS No. 157, “Fair Value Measurements”. The objective of SFAS No. 157 is to increase consistency and comparability in fair value measurements and to expand disclosures about fair value measurements. SFAS No. 157 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. SFAS No. 157 applies under other accounting pronouncements that require or permit fair value measurements and does not require any new fair value measurements. The provisions of SFAS No. 157 are effective for fair value measurements made in fiscal years beginning after November 15, 2007. The adoption of this statement is not expected to have a material effect on the Company's future reported financial position or results of operations.
		In June 2006, the FASB issued FASB Interpretation No. 48, “Accounting for Uncertainty in Income Taxes, an interpretation of FASB Statements No. 109” (“FIN 48”). FIN 48 clarifies the accounting for uncertainty in income taxes by prescribing a two-step method of first evaluating whether a tax position has met a more likely than not recognition threshold and second, measuring that tax position to determine the amount of benefit to be recognized in the financial statements. FIN 48 provides guidance on the presentation of such positions within a classified statement of financial position as well as on derecognition, interest and penalties, accounting in interim periods, disclosure, and transition. FIN 48 is effective for fiscal years beginning after December 15, 2006. The adoption of this statement is not expected to have a material effect on the Company's future reported financial position or results of operations.
		In March 2006, the FASB issued SFAS No. 156, "Accounting for Servicing of Financial Assets, an amendment of FASB Statement No. 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities". This statement requires all separately recognized servicing assets and servicing liabilities be initially measured at fair value, if practicable, and permits for subsequent measurement using either fair value measurement with changes in fair value reflected in earnings or the amortization and impairment requirements of Statement No. 140. The subsequent measurement of separately recognized servicing assets and servicing liabilities at fair value eliminates the necessity for entities that manage the risks inherent in servicing assets and servicing liabilities with derivatives to qualify for hedge accounting treatment and eliminates the characterization of declines in fair value as impairments or direct write-downs. SFAS No. 156 is effective for an entity's first fiscal year beginning after September 15, 2006. The adoption of this statement is not expected to have a material effect on the Company's future reported financial position or results of operations.

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North American Natural Gas, Inc.
(A Development Stage Company)
Notes To The Financial Statements
January 31, 2007
(Expressed in U.S. Dollars)
(Unaudited)

2.	Summary of Significant Accounting Policies (continued)
	(n)	Recent Accounting Pronouncements (continued)
		In February 2006, the FASB issued SFAS No. 155, "Accounting for Certain Hybrid Financial Instruments-an amendment of FASB Statements No. 133 and 140", to simplify and make more consistent the accounting for certain financial instruments. SFAS No. 155 amends SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities", to permit fair value re- measurement for any hybrid financial instrument with an embedded derivative that otherwise would require bifurcation, provided that the whole instrument is accounted for on a fair value basis. SFAS No. 155 amends SFAS No. 140, "Accounting for the Impairment or Disposal of Long-Lived Assets", to allow a qualifying special-purpose entity to hold a derivative financial instrument that pertains to a beneficial interest other than another derivative financial instrument. SFAS No. 155 applies to all financial instruments acquired or issued after the beginning of an entity's first fiscal year that begins after Septe mber 15, 2006, with earlier application allowed. The adoption of this statement is not expected to have a material effect on the Company's future reported financial position or results of operations.
3.	Related Party Transactions
	(a)	For the nine months ended January 31, 2007, the President of the Company donated office rent of $Nil (2006 - $900). Effective January 1, 2006, the Company leases space on a month-to-month basis at a cost of $100 per month from a non-related third party.
	(b)	As at January 31, 2007, the amount of $29,500 (April 30, 2006 - $9,500) is due to the President of the Company for cash advanced to the Company which is non-interest bearing, unsecured and due on demand.

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

This quarterly report contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “potential”, or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

Our financial statements are stated in United States Dollars (US$) and are prepared in accordance with United States Generally Accepted Accounting Principles. In this quarterly report, unless otherwise specified, all dollar amounts are expressed in United States dollars. All references to “common shares” refer to the common shares in our capital stock.

As used in this quarterly report the terms “we”, “us”, “our”, the “Company” and “North American Natural Gas”, means North American Natural Gas, Inc., unless otherwise indicated.

General

We were incorporated in the State of Washington on March 24, 2000 as FAR Group Inc. The Company acquired a license to market and distribute vitamins, minerals, nutritional supplements, and other health and fitness products in which the grantor of the license offers these products for sale from various suppliers on their Web site.

The Company is in the development stage. In a development stage company, management devotes most of its activities in developing a market for its products. Planned principal activities have not yet begun. The ability of the Company to emerge from the development stage with respect to any planned principal business activity is dependent upon its successful efforts to raise additional equity financing and/or attain profitable operations. There is no guarantee that the Company will be able to raise any equity financing or sell any of its products at a profit. There is substantial doubt regarding the Company’s ability to continue as a going concern.

During fiscal 2003, the Company changed its name to North American Natural Gas, Inc. as it had anticipated that it would undertake a new business purpose in the oil and gas exploration industry. The Company was unsuccessful in its efforts to raise the required capital to acquire the oil and gas properties contemplated and reverted back to its original business to exploit the license to market and sell vitamins and other health and fitness products.

In light of the numerous delays with the Vitamineralherb.com website and initial reaction to our preliminary market survey, the Company decided to no longer try to exploit the license to market and sell vitamins and other health related products and is seeking new business opportunities.

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Plan of Operation

North American Natural Gas, Inc. is in the development stage. During the period from March 24, 2000 through January 31, 2007, we engaged in no significant operations other than organizational activities, acquisition of the rights to market Vitamineralherb.com, preparation for registration of securities under the Securities Act of 1933, as amended, preparation of a supplementary business plan and completing a private placement. No revenues were received by us during this period.

During the fourth quarter of fiscal 2003, we changed our name to North American Natural Gas, Inc. as we had anticipated that we would undertake a new business purpose in the oil and gas exploration industry. We entered into agreements to purchase interests in two oil and gas exploration opportunities subject to raising a minimum of US$11,000,000 in a private placement. We were unsuccessful in our efforts to raise the minimum amount and all funds received were subsequently returned to the original subscribers. All agreements were terminated. We spent an aggregate of $85,683 in connection with the failed financing efforts. As we were unsuccessful in our efforts to raise the required capital to change our business purpose, the Company extended its license with Vitamineralherb.com in 2003 for an additional three years to market vitamins, minerals, nutritional supplements and other health and fitness products through the Vitamineralherb.com website.

In April 2006, the License with Vitamineralherb.com expired and the Company did not renew the license, due to numerous delays with the Vitamineralherb.com website. For the period ended January 31, 2007, much of our efforts were directed at locating new business opportunities. We intend to continue to explore other business opportunities although we have not identified any new business opportunities and have no agreements related to such opportunities.

For the nine- month period ended January 31, 2007, we had total general and administrative expenses of $23,226. For the remainder of the current fiscal year ending April 30, 2007, we anticipate incurring a loss as a result of expenses associated with maintaining the Company in good standing and exploring new business opportunities.

We remain a company in the development stage. Our balance sheet as of January 31, 2007 reflects total assets of $7,984 comprising of cash and total current liabilities of $42,858 for a working capital deficiency of $34,874. To date, our President has loaned us $29,500 for additional working capital. This loan will have to be repaid upon demand. There can be no assurance that he will continue to advance funds as required or that other methods of financing will be available or accessible on reasonable terms.

We have incurred a loss of $23,226 for the fiscal period to date and a total loss of $347,874 from inception. During the quarter ended January 31, 2007, we did not issue any common stock.

Liquidity

As of the date of this report, the Company has yet to generate any revenues from its business operations. During the period, the Company’s President loaned us an additional $10,000 for general working capital. We had cash on hand of $7,984 as at January 31, 2007 and a working capital deficiency of $34,874 as compared to cash on hand of $5,381 and working capital deficiency of $11,648 as at April 30, 2006.

We currently do not have sufficient funds to meet our cash requirements for the next twelve months. We intend to raise the capital required to fund our cash requirements and future business opportunities by issuing debt and/or equity securities, although we have no current arrangements or agreements related to such financings. Management is exploring a variety of options to meet the Company's cash requirements and future capital requirements, including the possibility of equity offerings, debt financing, and business combinations.

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We may engage in a combination with another business. During the fiscal year of 2003, we entered into agreements that would have changed our business to the oil and gas industry. We were unsuccessful in raising the minimum capital required to complete the transaction and subsequently terminated all the agreements. We have engaged in discussions concerning potential business combinations, but have not entered into any agreement for such a combination.

Our failure to generate revenue and conduct operations since inception raises substantial doubt about the Company’s ability to continue as a going concern. We will require substantial working capital, and currently have inadequate capital to fund all of our business strategies, which could severely limit our operations.

ITEM 3.    CONTROL AND PROCEDURES

As required by Rule 13a-15 under the Exchange Act, as of the end of the period covered by this quarterly report, being January 31, 2007, we have carried out an evaluation of the effectiveness of the design and operation of our company’s disclosure controls and procedures. This evaluation was carried out under the supervision and with the participation of our company’s management, including our company’s Chief Executive Officer and Chief Financial Officer. Based upon that evaluation, our company’s Chief Executive Officer and Chief Financial Officer concluded that our company’s disclosure controls and procedures are effective as at the end of the period covered by this report. There have been no significant changes in our company’s internal controls over financial reporting that occurred during our most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect our internal controls over financial r eporting.

Disclosure controls and procedures and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act of 1934 is recorded, processed, summarized and reported, within the time period 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 Securities Exchange Act of 1934 is accumulated and communicated to management, including our President and Chief Financial Officer as appropriate, to allow timely decisions regarding required disclosure.

PART II - OTHER INFORMATION

ITEM 1.        LEGAL PROCEEDINGS

We know of no material, active 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 of our directors, officers or affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our interest.

ITEM 2.	CHANGES IN SECURITIES
None.
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4.	SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.

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ITEM 5.	OTHER INFORMATION
None.
ITEM 6.	EXHIBITS

(a)	Exhibits
	31.1	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 – Chief Executive Officer
	31.2	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 – Chief Financial Officer
	32.1	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section
		906of the Sarbanes Oxley Act of 2002 – Chief Executive Officer
	32.2	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section
		906of the Sarbanes Oxley Act of 2002 – Chief Financial Officer

SIGNATURES

In accordance with the requirements of the Securities Exchange Act of 1934, the registrant caused thisreport to be signed on its behalf by the undersigned, thereunto duly authorized.

		NORTH AMERICAN NATURAL GAS, INC.
Date:	March 9, 2007	By:	JIM GLAVAS
			Jim Glavas
			President, Chief Executive Officer
			and Director

Date:	March 9, 2007	By:	RICHARD ACHRON
			Richard Achron
			Chief Financial Officer, Principal
			Accounting Officer and Director

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