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**UNITED STATESSECURITIES AND EXCHANGE COMMISSION**Washington, D.C. 20549___________________**FORM 10-Q**_______________________

**ý                                QUARTERLY REPORT PURSUANT TOSECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

  

For the quarterly period endedMarch 31, 2008

or

** ̈                                TRANSITION REPORT PURSUANT TOSECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

  

For the transition period from               to

  

Commissionfile number: 0-27511

  

**PEREGRINEINDUSTRIES, INC.**(Exact Name Of RegistrantAs Specified In Its Charter)
| Florida                                     | 65-0611007                              |
|---------------------------------------------|-----------------------------------------|
| (State of Incorporation)                    | (I.R.S. Employer    Identification No.) |
|                                        |                                    |
| 90    John Street, Suite 626, New York, NY  | 10038                                   |
| (Address of Principal    Executive Offices) | (ZIP Code)                              |

 Registrant'sTelephone Number, Including Area Code: (646) 202-9679

Indicate by checkmark whether the registrant (1) has filed all reports required to be filed by Section 13or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or forsuch shorter period that the registrant was required to file such reports), and (2) hasbeen subject to such filing requirements for the past 90 days. Yes x No  ̈

At March 31, 2008,the Registrant had 504,200 shares of common stock issued and outstanding.

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

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**TABLE OF CONTENTS**

 
| Item                                  |                          | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             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| **PART I - FINANCIAL    INFORMATION** |
|                                  |
| ITEM 1.                               |      |    FINANCIAL    STATEMENTS.
    3  
ITEM 2.
    
   MANAGEMENT'S    DISCUSSION AND ANALYSIS AND PLAN OF OPERATION.
    3   ITEM 3.   QUANTITATIVE    AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK6
ITEM 4.
    
   CONTROLS    AND PROCEDURES.
    6     
**PART II - OTHER    INFORMATION**
  
ITEM 1.
    
   LEGAL    PROCEEDINGS.
    6  ITEM 1A.   RISK FACTORS6
ITEM 2.
    
   UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF    PROCEEDS
    6   
ITEM 3.
    
   DEFAULT    UPON SENIOR SECURITIES.
    6   
ITEM 4.
    
   SUBMISSION    OF MATERS TO A VOTE OF SECURITY HOLDERS.
    6   
ITEM 5.
    
   OTHER    INFORMATION.
    6   ITEM 6.   EXHIBITS    AND REPORTS ON FORM 8-K.6
 
****
**PART I - FINANCIAL INFORMATION**

ITEM1. FINANCIAL STATEMENTS****Back to Table of Contents

The Registrant's financial statements for the three andnine-month periods ended March 31, 2008 and 2007 are attached to this quarterly report.

Financial Statements

ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS AND PLAN OF OPERATIONBackto Table of Contents

Some of the statements contained in this quarterlyreport of Peregrine Industries, Inc. (hereinafter the "Company", "We"or the "Registrant") discuss future expectations, contain projections of ourplan of operation or financial condition or state other forward-looking information.Forward-looking statements give our current expectations or forecasts of future events.You can identify these statements by the fact that they do not relate strictly tohistorical or current facts. They use of words such as "anticipate,""estimate," "expect," "project," "intend,""plan," "believe," and other words and terms of similar meaning inconnection with any discussion of future operating or financial performance. From time totime, we also may provide forward-looking statements in other materials we release to thepublic.

Plan of Operation

We have no present operations orrevenues and our current activities are related to seeking new business opportunities,including seeking an acquisition or merger with an operating company. The Registrant doesnot intend to limit itself to a particular industry and has not established any particularcriteria upon which it shall consider and proceed with a business opportunity.

If the Company seeks to acquire anotherbusiness or pursue a business opportunity, management would have substantial flexibilityin identifying and selecting a prospective business. Registrant would not be obligated nordoes management intend to seek pre-approval by our shareholders. Under the laws of theState of Florida, the consent of holders of a majority of the issued and outstandingshares, acting without a shareholders meeting, can approve an acquisition.

The Registrant is entirely dependent onthe judgment of management in connection with the selection process for a target company.In evaluating a prospective business opportunity, we would consider, among other factors,the following: (i) costs associated with effecting a transaction; (ii) equity interest inand opportunity to control the prospective candidate; (iii) growth potential of the targetbusiness; (iv) experience and skill of management and availability of additionalpersonnel; (v) necessary capital requirements; (vi) the prospective candidate'scompetitive position; (vii) stage of development of the business opportunity; (viii) themarket acceptance of the business its products or services; (ix) the availability ofaudited financial statements of the potential business opportunity; and (x) the regulatoryenvironment that may be applicable to any prospective business opportunity.

The foregoing criteria are not intendedto be exhaustive and there may be other criteria that management may deemed relevant. Inconnection with an evaluation of a prospective or potential business opportunity,management may be expected to conduct a due diligence review.

We had operating expenses of $29,950 and$9,950 during the three-month periods ended March 31, 2008 and 2007, respectively,consisting mainly of accounting fees, professional fees and general and administrativeexpenses. The Company does not expect its operating expenses to increase significantlyuntil it starts to pursue a new business opportunity or enters into a businesscombination.

Liquidity and Capital Resources

We are dependent upon interim fundingprovided by management and/or related parties to pay professional fees and other expenses.We have no written finance agreement with management and/or related parties to provide anycontinued funding.

At March 31, 2008, we had no assets and$110,000 in liabilities.

Aspart of our intent to seek new business opportunities, we may determine to seek to raisefunds from the sale of equity or debt securities. We have no agreements to issue any debtor equity securities and cannot predict whether equity or debt financing will becomeavailable at terms acceptable to us, if at all.

We anticipate that in connection withthe commencement of a new business opportunity or consummation of a business combination,we will issue a substantial number of additional restricted shares or other securities. Ifsuch additional securities are issued, our shareholders will experience a dilution intheir ownership interest in the Company. If a substantial number of shares are issued inconnection with a business combination, a change in control may be expected to occur.

Thereare no limitations in our articles of incorporation on our ability to borrow funds orraise funds through the issuance of restricted common stock to pursue new businessopportunities. Our limited resources and lack of operating history may make it difficultto do borrow funds or raise capital. Our inability to borrow funds or raise funds throughthe issuance of restricted common stock required to facilitate new business opportunitiesmay have a material adverse effect on our financial condition and future prospects.

ITEM 3.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKBack to Table of Contents

We have not enteredinto, and do not expect to enter into, financial instruments for trading or hedgingpurposes.

ITEM 4.CONTROLS AND PROCEDURES****Backto Table of Contents
*Evaluation of disclosure controls and procedures.As of March 31, 2008, the Company's chief executive officerand chief financial officer conducted an evaluation regarding the effectiveness of theCompany's disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e)under the  Exchange Act. Based upon the evaluation of these controls and procedures,our chief executive officer and chief financial officer concluded that our disclosurecontrols and procedures were effective as of the end of the period covered by this report.

*Changes in internal controls*. During the quarterly period covered by this report, no changesoccurred in our internal control over financial reporting that materially affected, or isreasonably likely to materially affect, our internal control over financial reporting.

**PART II - OTHER INFORMATION**

ITEM 1. LEGALPROCEEDINGS****Backto Table of Contents

None.

ITEM 2.UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDSBackto Table of Contents

None.

ITEM3. DEFAULTS UPON SENIOR SECURITIES****Backto Table of Contents

None.

ITEM4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERSBackto Table of Contents

None.

ITEM5. OTHER INFORMATION****Backto Table of Contents

None.

ITEM6. EXHIBITS****Backto Table of Contents

(a) The following documents are filed as exhibits tothis report on Form 10-Q or incorporated by reference herein. Any document incorporated byreference is identified by a parenthetical reference to the SEC filing that included suchdocument.

Exhibit    No.Description31.1Certification of CEO and CFO    pursuant to Rule 13a-14(a) or 15d-14(a) of the Exchange Act pursuant to Section 302 of the    Sarbanes-Oxley Act of 2002.32.1Certification of CEO and CFO    pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the    Sarbanes-Oxley Act of 2002.
(b) Reports on Form 8-K during the quarter covered by this report:None.

 

SIGNATURES

Pursuant to therequirements of the Securities Exchange Act of 1934, this report has been signed below bythe following persons on behalf of the registrant and in the capacities and on the dateindicated.

/s/ RichardRubinRichard Rubin*   Chief Executive Officer, CFO and Chairman  Dated: May 15, 2008*

**FinancialStatements**Back to Table of Contents
**Peregrine    Industries, Inc.**Balance Sheet  **  ****March 31,    2008****June 30,    2007**(Unaudited)    
AssetsCurrent assets:Cash$0$0Advances to related parties00      Total current assets00                 Total assets$0$0  
Liabilities    and Stockholders' Deficiency  Current liabilities:Accounts payable - trade$9,376$6,526Advances from and accruals due    to related parties101,00054,000      Total current liabilities$110,376$60,526  Stockholders' deficiency:   Preferred stock,    $0.0001 par value; 5,000,000 shares authorized; none issued--   Common stock,    $0.0001 par value; 100,000,000 shares authorized;      504,200    issued and outstanding at March 31, 2008 and June 30, 20075050   Additional paid in    capital137,834137,834   Accumulated deficit(248,260)(198,410)     Total    stockholders' deficiency(110,376)(60,526)          Total liabilities and stockholders' deficiency$0$0     See    notes to unaudited interim financial statements**Peregrine    Industries, Inc.**Statement of    Operations  **Three Months****Three Months****Nine Months****Nine Months****Ended****Ended****Ended****Ended****March 31, 2008****March 31, 2007****March 31, 2008****March 31, 2007**(Unaudited)(Unaudited)(Unaudited)(Unaudited)  Revenue00$0$0Costs and Expenses:   General and    administrative29,9509,95049,85028,900Total costs and expenses29,9509,95049,85028,900  Loss before income taxes(29,950)(9,950)(49,850)(28,900)Income taxes0000Loss from operations(29,950)(9,950)(49,850)(28,900)  Net loss(29,950)(9,950)$(49,850)$(28,900)  Per shares amounts:  Basic and diluted net loss(0.00)(0.00)$(0.00)$(0.00)  Weighted average shares outstanding:   Basic and diluted504,200504,200504,200488,762  See notes to unaudited interim    financial statements**Peregrine Industries, Inc.**Statement of Cash Flows
        **Nine Months****Nine Months**** ****Ended****Ended****March 31, 2008****March 31, 2007**  (Unaudited)(Unaudited)  Cash flows from operating activities:Net loss$(49,850)$(28,900)Adjustments required to reconcile net loss to    cash used in operating activities:   Expenses paid by issuance of common    stock--   Fair value of services provided by    related parties47,00025,000   (Increase) decrease in prepaid    expenses00   Increase (decrease) in accounts    payable and accrued expenses2,8500     Cash    flows used by operating activities0(3,900)  Cash flows from investing    activities:   Purchase of equipment00     Cash    used in investing activities00   Cash flows from financing activities:   Proceeds from issuance of common00   Loans from related parties03,900     Cash    provided by financing activities03,900  Change in cash00Cash - Beginning of period00Cash - End of period$0$0  See notes to    unaudited interim financial statements**PEREGRINE INDUSTRIES, INC.Notes to Unaudited Interim Financial StatementsMarch 31, 2008

 

**1. Basis of Presentation**

Peregrine Industries, Inc. (the "Company") was formed onOctober 1, 1995 for the purpose of manufacturing residential pool heaters. On March 29,2004, the U.S. Bankruptcy Court confirmed the sale of the Peregrine corporate shellentity. The accounts of the former subsidiaries were not included in the sale and have notbeen carried forward. 

The Financial Statements presented herein have been prepared by us inaccordance with the accounting policies described in our June 30, 2007 Annual Report onForm 10-KSB and should be read in conjunction with the Notes to Consolidated FinancialStatements which appear in that report.

The preparation of these financial statements in conformity withaccounting principles generally accepted in the United States requires us to makeestimates and judgments that affect the reported amounts of assets, liabilities, revenuesand expenses, and related disclosure of contingent assets and liabilities. On an on goingbasis, we evaluate our estimates, including those related intangible assets, income taxes,insurance obligations and contingencies and litigation. We base our estimates onhistorical experience and on various other assumptions that are believed to be reasonableunder the circumstances, the results of which form the basis for making judgments aboutthe carrying values of assets and liabilities that are not readily apparent from otherresources. Actual results may differ from these estimates under different assumptions orconditions.

In the opinion of management, the information furnished in this Form10-Q reflects all adjustments necessary for a fair statement of the financial position andresults of operations and cash flows as of and for the three and nine-month periods endedMarch 31, 2008 and 2007. All such adjustments are of a normal recurring nature. TheFinancial Statements have been prepared in accordance with the instructions to Form 10-Qand therefore do not include some information and notes necessary to conform with annualreporting requirements.
**“Fresh Start” Accounting: On September 4, 2002 all assetswere transferred to the chapter 7 trustee in settlement of all outstanding corporateobligations. We adopted "fresh-start" accounting as of September 5, 2002 inaccordance with procedures specified by AICPA Statement of Position ("SOP") No.90-7, "Financial Reporting by Entities in Reorganization under the BankruptcyCode."

On March 29, 2004, the U.S. Bankruptcy Court for the Southern Districtof Florida confirmed the order previously granted on March 15, 2004 for the sale ofPeregrine as a shell entity. All results for periods including and subsequent to September5, 2002 are referred to as those of the "Successor Company".

In accordance with SOP No. 90-7, the reorganized value of the Companywas allocated to the Company's assets based on procedures specified by SFAS No. 141,"Business Combinations". Each liability existing at the plan sale date, otherthan deferred taxes, was stated at the present value of the amounts to be paid atappropriate market rates. It was determined that the Company's reorganization valuecomputed immediately before September 5, 2002 was $0. We adopted "fresh-start"accounting because holders of existing voting shares immediately before filing andconfirmation of the sale received less than 50% of the voting shares of the emergingentity and its reorganization value is less than its post-petition liabilities and allowedclaims. 

The accounts of the former subsidiaries were not included in thebankruptcy sale and have not been carried forward.
**Change of Control: On February 12, 2004, the Trustee for Peregrineand Park Avenue Group, Inc. entered into a contract resulting in a change in control ofPeregrine. On March 15, 2004, the Bankruptcy Court granted an order approving the contractand finding that Park Avenue Group is a good faith purchaser within the meaning of 11 USCSection 363(m). On March 29, 2004, the U.S. Bankruptcy Court for the Southern District ofFlorida confirmed the order previously granted on March 15, 2004.

The confirmed Court order provided that the existing officers anddirectors were deemed removed from office and also authorized the following: (i)the appointment of new members to the board of directors; (ii) the amendment of theArticle of Incorporation to increase the number of authorized shares to 100,000,000shares; (iii) the issuance of up to 30,000,000 shares of common stock, par value $0.0001to the new management;(iv) the authority to implement a reverse split of the issued andoutstanding shares in a ratio to be determined by the board of directors; (v) thecancellation and extinguishment of all common share conversion rights of any kind,including without limitation, warrants, options, convertible bonds, other convertible debtinstruments and convertible preferred stock; and (vi) the cancellation and extinguishmentof all preferred shares of every series and accompanying conversion rights of any kind.
**2. Earnings/Loss Per Share**
Basic earnings per share is computed by dividing income available tocommon shareholders (the numerator) by the weighted-average number of common sharesoutstanding (the denominator) for the period. Diluted earnings per share assume that anydilutive convertible securities outstanding were converted, with related preferred stockdividend requirements and outstanding common shares adjusted accordingly. It also assumesthat outstanding common shares were increased by shares issuable upon exercise of thosestock options for which market price exceeds the exercise price, less shares which couldhave been purchased by us with the related proceeds. In periods of losses, diluted lossper share is computed on the same basis as basic loss per share as the inclusion of anyother potential shares outstanding would be anti-dilutive.
**3. New Accounting Standards**
On January 1, 2006, we adopted the provisions of Statement of FinancialAccounting Standards (“SFAS”) 123R, “Share-Based Payment” (“SFAS123(R)”), which requires that companies measure and recognize compensation expense atan amount equal to the fair value of share-based payments granted under compensationarrangements. Prior to January 1, 2006, we accounted for our stock-based compensationplans under the recognition and measurement principles of Accounting Principles Board(“APB”) Opinion 25, “Accounting for Stock Issued to Employees,” andrelated interpretations, and would typically recognize no compensation expense for stockoption grants if options granted had an exercise price equal to the market value of theunderlying common stock on the date of grant. 

We adopted SFAS 123(R) using the “modified prospective”method, which results in no restatement of prior period amounts. Under this method, theprovisions of SFAS 123(R) apply to all awards granted or modified after the date ofadoption. In addition, compensation expense must be recognized for any unvested stockoption awards outstanding as of the date of adoption on a straight-line basis over theremaining vesting period. We calculate the fair value of options using a Black-Scholesoption pricing model. We do not currently have any outstanding options therefore no chargeis required for the three months ended September 30, 2007. SFAS 123(R) also requires thebenefits of tax deductions in excess of recognized compensation expense to be reported inthe Statement of Cash Flows as a financing cash inflow rather than an operating cashinflow. In addition, SFAS 123(R) required a modification to the Company’s calculationof the dilutive effect of stock option awards on earnings per share. For companies thatadopt SFAS 123(R) using the “modified prospective” method, disclosure of proforma information for periods prior to adoption must continue to be made. 

In May 2005, the FASB issued SFAS No. 154, “Accounting Changes andError Corrections,” which replaces APB Opinion No. 20 “Accounting Changes,”and FASB Statement No. 3 “Reporting Accounting Changes in Interim FinancialStatements,” and changes the requirements for the accounting for and reporting of achange in accounting principle. This Statement requires retrospective application to priorperiods’ financial statements of changes in accounting principle, unless it isimpracticable to determine either the period-specific effects or the cumulative effect ofthe change. This Statement shall be effective for accounting changes and corrections oferrors made in fiscal years beginning after December 15, 2005. Early adoption is permittedfor accounting changes and corrections of errors made in fiscal years beginning after thedate this Statement is issued. We do not believe that adoption of SFAS 154 will have amaterial impact on our financial statements.

 In September 2006, the SEC staff issued Staff AccountingBulletin No. 108, *Considering the Effects of Prior Year Misstatements whenQuantifying Misstatements in Current Year Financial Statements*(“SAB 108”).SAB 108 establishes an approach that requires quantification of financial statementmisstatements based on the effects of the misstatements on each of the Company’sfinancial statements and the related financial statement disclosures. SAB 108 iseffective for the year ending December 31, 2006. We are currently evaluating theeffect that the adoption of SAB 108 will have on our results of operations and financial.

In June 2006, the FASB issued FASB Interpretation No. 48, *Accounting forUncertainty in Income Taxes—an Interpretation of FASB Statement 109* ("FIN48"), which clarifies the accounting for uncertain tax positions. This Interpretationallows the tax effects from an uncertain tax position to be recognized in the Company'sfinancial statements if the position is more likely than not to be sustained upon audit,based on the technical merits of the position. FIN 48 also provides guidance onderecognition, classification, interest and penalties, accounting in interim periods,disclosure and transition. FIN 48 is effective for fiscal years beginning afterDecember 15, 2006. We do not expect the adoption of FIN 48 to have a material impacton our financial statements.******* |