**U. S. Securities and Exchange Commission**

 

**Washington, D.C. 20549**

**FORM 10-QSB**

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

**For the quarterly period ended September 30, 2007**

**o TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT**

**For the transition period from ____________ to____________**

**Commission File No. 000-49671**

**BEAR LAKE RECREATION, INC.**

(Exact name of small business issuer as specified in its charter)

 

 

Nevada

87-0620495

(State or Other Jurisdiction of

(I.R.S. Employer I.D. No.)

incorporation or organization)

 

 

4685 S. Highland Drive, Suite #202 

Salt Lake City, Utah 84117

(Address of Principal Executive Offices)

 

(801) 278-9424

(Issuer’s Telephone Number)

 

N/A

(Former name, former address and former fiscal year,

if changed since last report)

 

Check whether the Issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the Issuer was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

 

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

Yes x No o

 

1

**APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY**

**PROCEEDINGS DURING THE PRECEDING FIVE YEARS**

 

Not applicable.

 

Check whether the Issuer filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court.  Yes o No o

 

**APPLICABLE ONLY TO CORPORATE ISSUERS**

 

Indicate the number of shares outstanding of each of the Issuer’s classes of common equity, as of the latest practicable date: November 7, 2007 - 1,249,816 shares of common stock.

 

Transitional Small Business Disclosure Format (Check one): Yes o No x

 

**PART I - FINANCIAL INFORMATION**

 

**Item 1. Financial Statements.**

 

**FINANCIAL STATEMENTS**

 

**September 30, 2007**

**C O N T E N T S**

 

Condensed Balance Sheets

3

Condensed Statements of Operations

4

Condensed Statements of Cash Flows

5

Notes to Unaudited Financial Statements

6

 

 

2

**Bear Lake Recreation, Inc.**

**(A Development Stage Company)**

**Condensed Balance Sheets**

**September 30, 2007 and June 30, 2007**

 

 

 

 

**9/30/2007**

 

 

 

**6/30/2007**

 

 

 

**(Unaudited)**

 

 

 

**(Audited)**

 

**ASSETS**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

**Total Assets**

 

$

— 

 

 

 

$

— 

 

 

 

 

 

 

 

 

 

 

 

**LIABILITIES AND STOCKHOLDERS' DEFICIT**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

 

Accounts Payable

 

$

— 

 

 

 

$

— 

 

Related Party Payable

 

 

41,562 

 

 

 

 

37,651 

 

Total Current Liabilities

 

 

41,562 

 

 

 

 

37,651 

 

**Total Liabilities**

 

 

41,562 

 

 

 

 

37,651 

 

 

 

 

 

 

 

 

 

 

 

**Stockholders' Deficit**

 

 

 

 

 

 

 

 

 

Preferred Stock -- 5,000,000 shares authorized having a

 

 

 

 

 

 

 

 

 

par value of $.001 per share; 0 shares issued

 

 

 

 

 

 

 

 

 

and outstanding

 

 

— 

 

 

 

 

— 

 

Capital Stock -- 50,000,000 shares authorized having a

 

 

 

 

 

 

 

 

 

par value of $.001 per share; 1,249,816 shares issued

 

 

 

 

 

 

 

 

 

and outstanding

 

 

1,250 

 

 

 

 

1,250 

 

Additional Paid-in Capital

 

 

82,828 

 

 

 

 

82,828 

 

Accumulated Deficit during the Development Stage

 

 

(125,640

)

 

 

 

(121,729

)

**Total Stockholders' Deficit**

 

 

(41,562

)

 

 

 

(37,651

)

**Total Liabilities and Stockholders' Deficit**

 

$

— 

 

 

 

$

— 

 

 

 

See accompanying notes to financial statements.

 

3

**Bear Lake Recreation, Inc.**

**(A Development Stage Company)**

**Condensed Statements of Operations**

**For the Three Months Ended September 30, 2007 and 2006, and**

**For the Period from Inception (October 22, 1998) through September 30, 2007**

**(Unaudited)**

 

 

 

 

 

 

**For the**

 

 

 

**For the**

 

 

 

**From Inception**

 

 

 

 

 

**Three Months**

 

 

 

**Three Months**

 

 

 

**(October 22,**

 

 

 

 

 

**Ended**

 

 

 

**Ended**

 

 

 

**1998) Through**

 

 

 

 

 

**September 30,**

 

 

 

**September 30,**

 

 

 

**September 30,**

 

 

 

 

 

**2007**

 

 

 

**2006**

 

 

 

**2007**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

**Revenues**

 

 

 

$

— 

 

 

 

$

— 

 

 

 

$

1,396 

 

**Cost of Goods Sold**

 

 

 

 

— 

 

 

 

 

— 

 

 

 

 

707 

 

**Gross Profit**

 

 

 

 

— 

 

 

 

 

— 

 

 

 

 

689 

 

General and Administrative Expenses

 

 

 

 

3,911 

 

 

 

 

3,567 

 

 

 

 

106,618 

 

**Net Income (Loss) from Operations**

 

 

 

 

(3,911

)

 

 

 

(3,567

)

 

 

 

(105,929

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

**Other Income (Expense)**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Write off of inventory

 

 

 

 

— 

 

 

 

 

— 

 

 

 

 

(10,645

)

Loss on Sale of Assets

 

 

 

 

— 

 

 

 

 

— 

 

 

 

 

(9,066

)

**Total Other Income (Expense)**

 

 

 

 

— 

 

 

 

 

— 

 

 

 

 

(19,711

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

**Net Loss Before Taxes**

 

 

 

 

(3,911

)

 

 

 

(3,567

)

 

 

 

(125,640

)

Provision for Income Taxes

 

 

 

 

— 

 

 

 

 

— 

 

 

 

 

— 

 

**Net Loss**

 

 

 

$

(3,911

)

 

 

$

(3,567

)

 

 

$

(125,640

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

**Loss Per Share - Basic and Diluted**

 

 

 

$

(0.01

)

 

 

$

(0.01

)

 

 

$

(0.17

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

**Weighted Average Shares Outstanding -**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

**Basic and Diluted**

 

 

 

 

1,249,816 

 

 

 

 

1,249,816 

 

 

 

 

719,381 

 

 

 

See accompanying notes to financial statements.

 

4

**Bear Lake Recreation, Inc.**

**(A Development Stage Company)**

**Condensed Statements of Cash Flows**

**For the Three Months Ended September 30, 2007 and 2006, and**

**For the Period from Inception (October 22, 1998) through September 30, 2007**

**(Unaudited)**

 

 

**For the**

 

 

 

**For the**

 

 

 

**From Inception**

 

 

**Three Months**

 

 

 

**Three Months**

 

 

 

**(October 22,**

 

 

**Ended**

 

 

 

**Ended**

 

 

 

**1998) Through**

 

 

**September 30,**

 

 

 

**September 30,**

 

 

 

**September 30,**

 

 

**2007**

 

 

 

**2006**

 

 

 

**2007**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

**Cash Flows From Operating Activities**

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

$

(3,911

)

 

 

$

(3,567

)

 

 

$

(125,640

)

Adjustments to reconcile net income (loss) to

 

 

 

 

 

 

 

 

 

 

 

 

 

net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and Amortization

 

0 

 

 

 

 

0 

 

 

 

 

4,799 

 

Shares issued for services

 

0 

 

 

 

 

0 

 

 

 

 

3,000 

 

Loss on disposal of equipment

 

0 

 

 

 

 

0 

 

 

 

 

9,066 

 

Write off of related party receivable

 

0 

 

 

 

 

0 

 

 

 

 

1,000 

 

Write off of Website development costs

 

0 

 

 

 

 

0 

 

 

 

 

8,877 

 

Write off of inventory

 

0 

 

 

 

 

0 

 

 

 

 

10,645 

 

Decrease / (Increase) - Inventory

 

0 

 

 

 

 

0 

 

 

 

 

(10,645

)

Increase / (Decrease) - Accounts Payable

 

0 

 

 

 

 

0 

 

 

 

 

— 

 

Increase / (Decrease) - Related Party Payables

 

3,911 

 

 

 

 

3,567 

 

 

 

 

41,562 

 

**Net Cash From Operating Activities**

 

0 

 

 

 

 

0 

 

 

 

 

(57,336

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

**Cash Flows From Investing Activities**

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase of property and equipment

 

0 

 

 

 

 

0 

 

 

 

 

(12,433

)

Website development costs

 

0 

 

 

 

 

0 

 

 

 

 

(10,309

)

**Net Cash From Investing Activities**

 

0 

 

 

 

 

0 

 

 

 

 

(22,742

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

**Cash Flows from Financing Activities**

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock offering costs

 

0 

 

 

 

 

0 

 

 

 

 

(6,072

)

Related-party receivable

 

0 

 

 

 

 

0 

 

 

 

 

(1,000

)

Proceeds from the issuance of common stock

 

0 

 

 

 

 

0 

 

 

 

 

87,150 

 

**Net Cash From Financing Activities**

 

0 

 

 

 

 

0 

 

 

 

 

80,078 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

**Net Increase In Cash**

 

0 

 

 

 

 

0 

 

 

 

 

— 

 

**Beginning Cash Balance**

 

0 

 

 

 

 

0 

 

 

 

 

— 

 

**Ending Cash Balance**

$

— 

 

 

 

$

— 

 

 

 

$

— 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

**Supplemental Disclosure of Cash Flow Information:**

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash paid during the year for interest

 

0 

 

 

 

 

0 

 

 

 

$

— 

 

Cash paid during the year for income taxes

 

0 

 

 

 

 

0 

 

 

 

$

— 

 

 

 

See accompanying notes to financial statement.

 

5

**Bear Lake Recreation, Inc.**

**(A Development Stage Company)**

**Condensed Notes to Financial Statements**

**September 30, 2007**

**(Unaudited)**

 

**PRELIMINARY NOTE**

 

The accompanying condensed financial statements have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. In the opinion of management, the interim financial statements reflect all adjustments, consisting of normal recurring accruals, which are necessary for a fair statement of the results for the period. Certain information and disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-KSB for the year ended June 30, 2007.

 

**RECENT ACCOUNTING PRONOUNCEMENTS**

 

In February, 2007, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities – Including an amendment of FASB Statement No. 115” (hereinafter SFAS No. 159”). This statement permits entities to choose to measure many financial instruments and certain other items at fair value. The objective is to improve financial reporting by providing entities with the opportunity to mitigate volatility in reported earnings caused by measuring related assets and liabilities differently without having to apply complex hedge accounting provisions. This Statement is expected to expand the use of fair value measurement, which is consistent with the Board’s long-term measurement objectives for accounting for financial instruments. This statement is effective as of the beginning of anentity’s first fiscal year that begins after November 15, 2007, although earlier adoption is permitted. Management does not expect that adopting this statement would have an impact on the Company’s financial condition or results of operations.

 

 

 

6

**Item 2. Management’s Discussion and Analysis or Plan of Operation.**

 

**Plan of Operation**

 

Our Company’s plan of operation for the next 12 months is to: (i) consider guidelines of industries in which our Company may have an interest; (ii) adopt a business plan regarding engaging in business in any selected industry; and (iii) to commence such operations through funding and/or the acquisition of a “going concern” engaged in any industry selected.

 

Our Company’s only foreseeable cash requirements during the next 12 months will relate to maintaining our Company in good standing in the State of Nevada, as well as legal and accounting fees. Management does not anticipate that our Company will have to raise additional funds during the next 12 months.

 

**Management’s Discussion and Analysis of Financial Condition and Results of Operations**

 

Three Months Ended September 30, 2007 Compared to Three Months Ended September 30, 2006  

 

The Company has had no operations during the quarterly period ended September 30, 2007, nor do we have operations as of the date of this filing.  General and administrative expenses were $3,911 for the September 30, 2007, period compared to $3,567 for the September 30, 2006, period. General and administrative expenses for the three months ended September 30, 2007, were comprised mainly of accounting and transfer fees. We had a net loss of $3,911 for the September 30, 2007, period compared to a net loss of $3,567 for the September 30, 2006, period. 

 

**Off-balance Sheet Arrangements**

 

None; not applicable

 

7

**Item 3(a)T. Controls and Procedures.**

 

**Management’s Annual Report on Internal Control Over Financial Reporting**

 

As of the end of the period covered by this Quarterly Report, we carried out an evaluation, under the supervision and with the participation of our President and Secretary, of the effectiveness of our disclosure controls and procedures. Based on this evaluation, our President and Secretary concluded that information required to be disclosed is recorded, processed, summarized and reported within the specified periods and is accumulated and communicated to management, including our President and Secretary, to allow for timely decisions regarding required disclosure of material information required to be included in our periodic Securities and Exchange Commission reports. Our disclosure controls and procedures are designed to provide reasonable assurance of achieving their objectives and our President and Secretary have concluded that our disclosure controls and procedures are effective to a reasonableassurance level of achieving such objectives. However, it should be noted that the design of any system of controls is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions, regardless of how remote. In addition, we reviewed our internal controls over financial reporting, and there have been no changes in our internal controls or in other factors in the last fiscal quarter that has materially affected or is reasonably likely to materially affect our internal control over financial reporting.

 

**Changes in Internal Control Over Financial Reporting**

 

None; not applicable.

 

**PART II - OTHER INFORMATION**

 

**Item 1. Legal Proceedings.**

 

None; not applicable. 

 

**Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.**

 

There were no sales of equity securities during the period of this Quarterly Report.  

 

**Recent Sales of Unregistered Securities**

 

None; not applicable.

 

**Use of Proceeds of Registered Securities**

 

None; not applicable.

 

**Purchases of Equity Securities by Us and Affiliated Purchasers**

 

None; not applicable.

 

**Item 3. Defaults Upon Senior Securities.**

 

None; not applicable. 

 

**Item 4. Submission of Matters to a Vote of Security Holders.**

 

None; not applicable.

 

8

**Item 5. Other Information.**

 

 

(a)

None; not applicable.

 

 

(b)

Nominating Committee

 

There are no established committees because there are currently no material operations.

 

**Item 6.Exhibits.**

 

(a) Exhibits and index of exhibits.

 

**31.1 302 Certification of Wayne Bassham**

 

**31.2 302 Certification of Todd Albiston**

 

**32  906 Certification**

 

 

9

**SIGNATURES**

 

In accordance with the requirements of the Exchange Act, the Registrant has caused this Quarterly Report to be signed on its behalf by the undersigned, thereunto duly authorized. 

 

**BEAR LAKE RECREATION, INC.**

 

*Date:***

*11/07/07***

* *

*By:***

*/s/Wayne Bassham***

* *

* *

* *

* *

*Wayne Bassham***

* *

* *

* *

* *

*President and Director***

* *

* *

* *

* *

* *

*Date:***

*11/07/07***

* *

*By:***

*/s/Todd Albiston***

* *

* *

* *

* *

*Todd Albiston***

* *

* *

* *

* *

*Secretary and Director***

 

 

10