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**UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549**___________________**FORM 10-Q**___________________

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

  

For the quarterly period endedDecember 31, 2009

  

OR

  

** ̈                                TRANSITION REPORTPURSUANT TO SECTION 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.) |
|                                        |                                    |
| 40    Wall Street, 28th Floor               | 10005                                   |
| (Address of Principal    Executive Offices) | (ZIP Code)                              |

Registrant'sTelephone Number, Including Area Code: (212) 400-7198

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

Indicate by checkmark whether the registrant is a large accelerated filer, an accelerated filer, anon-accelerated filer (asdefined in Rule 12b-2 of the Exchange Act) or a smallerreporting company.
| Large accelerated    filer  ̈ | Accelerated filer  ̈  | Non-Accelerated    filer  ̈  | Smaller reporting    company x |
|----------------------------------|-------------------------------|--------------------------------------|------------------------------------|

On December 31,2009, the Registrant had 524,200 shares of common stock issued and outstanding.

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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.   EXHIBITS6
 
****
**PART I - FINANCIAL INFORMATION**

ITEM1. FINANCIAL STATEMENTS****Back toTable of Contents

The Registrant's unaudited interim financial statementsare attached hereto. UnauditedInterim Financial Statements

ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS AND PLAN OF OPERATIONBack to Table ofContents

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 $16,950 and$12,950 during the three-month periods ended December 31, 2009 and 2008, 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.

On December 31, 2008, we had no assetsand $200,026 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 ofContents

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

ITEM 4.CONTROLS AND PROCEDURES****Back to Table ofContents
***Evaluation of Disclosure Controls and Procedures*

Our Chief Executive Officer/Chief Financial Officer evaluated the effectiveness of thedesign and operation of our disclosure controls and procedures (as such term is defined inRule 13a-15(e) under the Securities Exchange Act of 1934 (the "Exchange Act").Disclosure controls and procedures are the controls and other procedures that we designedto ensure that we record, process, summarize and report in a timely manner the informationwe must disclose in reports that we file with or submit to the Securities and ExchangeCommission under the Exchange Act. Based on this evaluation, we have concluded that ourdisclosure controls and procedures were effective as of the end of the period covered bythis report. 
***Changes in Internal Control Over Financial Reporting*

There were no changes in our internal control over financial reporting or in otherfactors identified in connection with the evaluation required by paragraph (d) of ExchangeAct Rules 13a-15 or 15d-15 that occurred during the quarter ended December 31, 2009 thathave materially affected, or are reasonably likely to materially affect, our internalcontrol over financial reporting.

**PART II - OTHER INFORMATION**

ITEM 1. LEGALPROCEEDINGS****  Back to Table ofContents

None.

ITEM 1A.RISK FACTORSBack toTable of Contents

In addition to the otherinformation set forth in this report, you should carefully consider the factors discussedin Part I, “Item 1. Description of Business, subheading Risk Factors” inour Annual Report on Form 10-K for the year ended June 30, 2009, which couldmaterially affect our business, financial condition or future results. The risks describedin our Annual Report on Form 10-K are not the only risks facing our company.Additional risks and uncertainties not currently known to us or that we currently deem tobe immaterial also may materially adversely affect our business, financial conditionand/or operating results. 

ITEM 2.UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDSBack to Table ofContents

None.

ITEM3. DEFAULTS UPON SENIOR SECURITIES****Back to Table ofContents

None.

ITEM4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERSBack to Table ofContents

None.

ITEM5. OTHER INFORMATION****Back to Table ofContents

None.

ITEM6. EXHIBITS****Back to Table ofContents

(a) The following documentsare filed as exhibits to this report on Form 10-Q or incorporated by reference herein. Anydocument incorporated by reference is identified by a parenthetical reference to the SECfiling that included such document.

Exhibit    No.Description31Certification of President    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 2002.32Certification of President    and CFO pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the    Sarbanes-Oxley Act of 2002.
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   *CEO, CFO and Chairman**   Dated: February 16, 2010*

**UnauditedInterim Financial Statements**Back toTable of Contents
**Peregrine Industries, Inc.**Balance    Sheets     **  ****Decemebr    30, 2009****June 30,    2009**(Unaudited)    
AssetsCurrent assets:   Cash$0$0     Total    current assets00      Other assets00           Total Assets$0$0  
Liabilities    and Stockholders' DeficiencyCurrent liabilities:   Accounts payable -    trade$21,026$17,126   Advances from and    accruals due to related parties179,000148,000         Total current liabilities200,026165,126  Stockholders' deficiency:Preferred stock, 5,000,000    shares authorized, $0.0001 par value, none issued--Common stock, 100,000,000    shares authorized, $0.0001 par value;        524,200 issued and outstanding at December 31, 2009; and         524,200 issued and outstanding at June 30, 20095252   Additional paid in    capital157,832157,832   Accumulated    deficit(357,910)(323,010)     Total    stockholders' deficiency(200,026)(165,126)                 Total liabilities and stockholders' deficiency$0$0     See    notes to unaudited interim financial statements**Peregrine    Industries, Inc.**Statements of    Operations  **Three Months****Three Months****Six Months****Six Months****Ended****Ended****Ended****Ended****December 31, 2009****December 31, 2008****December 31, 2009****December 31, 2008**(Unaudited)(Unaudited)(Unaudited)(Unaudited)  Revenue$0$0$0$0Costs and expenses:   General and administrative16,95012,95034,90015,450Total costs and expenses16,95012,95034,90015,450  **     **Net loss(16,950)$(12,950)$(34,900)$(15,450)  Basic and diluted per share amounts:Basic and diluted net loss$(0.03)$(0.02)$(0.07)$(0.05)  Weighted average shares outstandingBasic and diluted524,200524,200524,200524,200  See notes to    unaudited interim financial statements**Peregrine    Industries, Inc.**Statement of Cash    Flows
        **Six Months****Six Months****Ended****Ended****December 31, 2009****December 31, 2008**  (Unaudited)(Unaudited)Cash flows from operating activities:Net loss$(34,900)$(28,400)Adjustments to reconcile net loss to cash used    in operating activities:   Fair value of services provided by    related parties31,00024,000   Expenses paid by related parties-2,500   Increase (decrease) in accounts    payable and accrued expenses3,9001,900     Cash    flows used by operating activities00  Cash flows from investing    activities:         Cash    used in investing activities00   Cash flows from financing activities:   Advances from related parties00     Cash    generated by financing activities00       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 Statements
**1. Basis of Presentation**
Peregrine Industries, Inc. (the "Company") was formed on October 1, 1995 forthe purpose of manufacturing residential pool heaters. On March 29, 2004, the U.S.Bankruptcy Court confirmed the sale of the Peregrine corporate shell entity. The accountsof the former subsidiaries were not included in the sale and have not been carriedforward.

The Financial Statements presented herein have been prepared by us in accordance withthe accounting policies described in our June 30, 2009 Annual Report on Form 10-K andshould be read in conjunction with the Notes to Financial Statements which appear in thatreport.

The preparation of these financial statements in conformity with accounting principlesgenerally accepted in the United States requires us to make estimates and judgments thataffect the reported amounts of assets, liabilities, revenues and expenses, and relateddisclosure of contingent assets and liabilities. On an on going basis, we evaluate ourestimates, including those related intangible assets, income taxes, insurance obligationsand contingencies and litigation. We base our estimates on historical experience and onvarious other assumptions that are believed to be reasonable under the circumstances, theresults of which form the basis for making judgments about the carrying values of assetsand liabilities that are not readily apparent from other resources. Actual results maydiffer from these estimates under different assumptions or conditions.

In the opinion of management, the information furnished in this Form 10-Q reflects alladjustments necessary for a fair statement of the financial position and results ofoperations and cash flows as of and for the three and six-month periods ended December 31,2009 and 2008. All such adjustments are of a normal recurring nature. The FinancialStatements have been prepared in accordance with the instructions to Form 10-Q andtherefore do not include some information and notes necessary to conform with annualreporting requirements.
**“Fresh Start” Accounting: On September 4, 2002 all assets weretransferred 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 District of Floridaconfirmed the order previously granted on March 15, 2004 for the sale of Peregrine as ashell entity. All results for periods including and subsequent to September 5, 2002 arereferred to as those of the "Successor Company".

In accordance with SOP No. 90-7, the reorganized value of the Company was allocated tothe Company's assets based on procedures specified by SFAS No. 141, "BusinessCombinations". Each liability existing at the plan sale date, other than deferredtaxes, was stated at the present value of the amounts to be paid at appropriate marketrates. It was determined that the Company's reorganization value computed immediatelybefore September 5, 2002 was $0. We adopted "fresh-start" accounting becauseholders of existing voting shares immediately before filing and confirmation of the salereceived less than 50% of the voting shares of the emerging entity and its reorganizationvalue is less than its post-petition liabilities and allowed claims.

The accounts of the former subsidiaries were not included in the bankruptcy sale andhave not been carried forward.
**Change of Control: On February 12, 2004, the Trustee for Peregrine and Park AvenueGroup, Inc. entered into a contract resulting in a change in control of Peregrine. OnMarch 15, 2004, the Bankruptcy Court granted an order approving the contract and findingthat Park Avenue Group is a good faith purchaser within the meaning of 11 USC Section363(m). On March 29, 2004, the U.S. Bankruptcy Court for the Southern District of Floridaconfirmed the order previously granted on March 15, 2004.

The confirmed Court order provided that the existing officers and directors were deemedremoved from office and also authorized the following: (i) the appointment of newmembers to the board of directors; (ii) the amendment of the Article of Incorporation toincrease the number of authorized shares to 100,000,000 shares; (iii) the issuance of upto 30,000,000 shares of common stock, par value $0.0001 to the new management;(iv) theauthority to implement a reverse split of the issued and outstanding shares in a ratio tobe determined by the board of directors; (v) the cancellation and extinguishment of allcommon share conversion rights of any kind, including without limitation, warrants,options, convertible bonds, other convertible debt instruments and convertible preferredstock; and (vi) the cancellation and extinguishment of all preferred shares of everyseries and accompanying conversion rights of any kind.
**2. Earnings/Loss Per Share**
Basic earnings per share is computed by dividing income available to commonshareholders (the numerator) by the weighted-average number of common shares outstanding(the denominator) for the period. Diluted earnings per share assume that any dilutiveconvertible securities outstanding were converted, with related preferred stock dividendrequirements and outstanding common shares adjusted accordingly. It also assumes thatoutstanding common shares were increased by shares issuable upon exercise of those stockoptions for which market price exceeds the exercise price, less shares which could havebeen purchased by us with the related proceeds. In periods of losses, diluted loss pershare is computed on the same basis as basic loss per share as the inclusion of any otherpotential shares outstanding would be anti-dilutive.
**3. New Accounting Standards**
In December 2007, the Financial Accounting Standards Board issued FASB StatementNo. 141 (Revised 2007), Business Combinations (“SFAS 141R”). SFAS 141Rprovides additional guidance on improving the relevance, representational faithfulness,and comparability of the financial information that a reporting entity provides in itsfinancial reports about a business combination and its effects. This Statementapplies prospectively to business combinations for which the acquisition date is on orafter the beginning of the first annual reporting period beginning on or afterDecember 15, 2008. 

In December 2007, the Financial Accounting Standards Board issued FASB StatementNo. 160,*Noncontrolling Interests in Consolidated Financial Statements—anamendment of ARB No. 51* (“SFAS 160”). SFAS 160 amends ARB No. 51to establish accounting and reporting standards for the noncontrolling interest in asubsidiary and for the deconsolidation of a subsidiary. This Statement is effectivefor fiscal years and interim periods within those fiscal years, beginning on or afterDecember 15, 2008. The Company is currently evaluating the impact of adopting SFAS160 on our financial statements.

In May 2008, the FASB issued SFAS No. 162, “*The Hierarchy of Generally AcceptedAccounting Principles.*” SFAS 162 identifies the sources of accounting principlesand the framework for selecting the principles used in the preparation of financialstatements of nongovernmental entities that are presented in conformity with generallyaccepted accounting principles (GAAP) in the United States. SFAS 162 is effective 60 daysfollowing the SEC’s approval of the Public Company Accounting Oversight Boardamendments to AU Section 411, *The Meaning of Present Fairly in Conformity WithGenerally Accepted Accounting Principles*. Our Company is currently evaluating theimpact of SFAS 162 on its financial statements but does not expect it to have a materialeffect.

Management does not anticipate that the adoption of these standards will have amaterial impact on the financial statements.
**5. Related Party Transactions not Disclosed Elsewhere***Due Related Parties: Amounts due related parties consist of corporate reinstatementexpenses paid by the principal shareholder, cash advances made to the company as well asthe fair value of services provided without cost and the use of office space providedwithout cost. Such items totaled $179,000 at December 31, 2009. We expensed the fair valueof services by an accrual of $16,000 for the three month interim period ended December 31,2009.*********** |