UNITED STATES


SECURITIES AND EXCHANGE COMMISSION





Washington, D.C. 20549




______________






FORM 10-Q




______________






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










For the quarterly period ended September 30, 2010




[  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934







For the transition period from ____________ to____________




Commission File Number: 000-49671




BEAR LAKE RECREATION, INC.


(Exact name of 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


(Registrant’s Telephone Number, Including Area Code)





Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [  ]





Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See definition of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.





Large accelerated filer [  ]
Accelerated filer [  ]
Non-accelerated filer [  ]
Smaller reporting company [X]





Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [X] No [  ]


1


APPLICABLE ONLY TO CORPORATE ISSUERS





Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.





The number of shares outstanding of each of the Registrant’s classes of common equity, as of the latest practicable date:





Class

Outstanding as of October 8, 2010Common Capital Voting Stock, $0.001 par value per share

1,249,816 shares





FORWARD LOOKING STATEMENTS





This Quarterly Report on Form 10-Q, Financial Statements and Notes to Financial Statements contain forward-looking statements that discuss, among other things, future expectations and projections regarding future developments, operations and financial conditions. All forward-looking statements are based on management’s existing beliefs about present and future events outside of management’s control and on assumptions that may prove to be incorrect. If any underlying assumptions prove incorrect, our actual results may vary materially from those anticipated, estimated, projected or intended.





PART I - FINANCIAL STATEMENTS





Item 1. Financial Statements.





September 30, 2010


C O N T E N T S





Condensed Balance Sheets
3Condensed Statements of Operations
4Condensed Statements of Cash Flows
5Notes to Condensed Financial Statements
6





2





Bear Lake Recreation, Inc.


(A Development Stage Company)


Condensed Balance Sheets


September 30, 2010 and June 30, 2010








9/30/2010


6/30/2010(Unaudited)


(Audited)ASSETSTotal Assets

$
-


$
-LIABILITIES AND STOCKHOLDERS' DEFICITLiabilitiesCurrent LiabilitiesAccounts Payable

$
3,490


$
-Related Party Payable


61,862



61,435Total Current Liabilities


65,352



61,435Total Liabilities


65,352



61,435Stockholders' DeficitPreferred Stock -- 5,000,000 shares authorized having apar value of $.001 per share; 0 shares issuedand outstanding


-



-Capital Stock -- 50,000,000 shares authorized having apar value of $.001 per share; 1,249,816 shares issuedand outstanding


1,250



1,250Additional Paid-in Capital


82,828



82,828Accumulated Deficit during the Development Stage


(149,430
)


(145,513
)Total Stockholders' Deficit


(65,352
)


(61,435
)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, 2010 and 2009, and


For the Period from Inception (October 22, 1998) through September 30, 2010


(Unaudited)








For the


For the


From InceptionThree Months


Three Months


(October 22,Ended


Ended


1998) ThroughSeptember 30,


September 30,


September 30,2010


2009


2010Revenues

$
-


$
-


$
1,396Cost of Goods Sold


-



-



707Gross Profit


-



-



689General and Administrative Expenses


3,917



4,137



130,408Net Income (Loss) from Operations


(3,917
)


(4,137
)


(129,719
)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


(3,917
)


(4,137
)


(149,430
)Provision for Income Taxes


-



-



-Net Loss

$
(3,917
)

$
(4,137
)

$
(149,430
)Loss Per Share - Basic and Diluted

$
(0.01
)

$
(0.01
)

$
(0.18
)Weighted Average Shares Outstanding -Basic and Diluted


1,249,816



1,249,816



852,781














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, 2010 and 2009, and


For the Period from Inception (October 22, 1998) through September 30, 2010


(Unaudited)





For the


For the


From InceptionThree Months


Three Months


(October 22,Ended


Ended


1998) ThroughSeptember 30,


September 30,


September 30,2010


2009


2010Cash Flows From Operating ActivitiesNet Income (Loss)

$
(3,917
)

$
(4,137
)

$
(149,430
)Adjustments to reconcile net income (loss) tonet cash provided by operating activities:Depreciation and Amortization


-



-



4,799Shares issued for services


-



-



3,000Loss on disposal of equipment


-



-



9,066Write off of related party receivable


-



-



1,000Write off of Website development costs


-



-



8,877Write off of inventory


-



-



10,645Decrease / (Increase) - Inventory


-



-



(10,645
)Increase / (Decrease) - Accounts Payable


3,490



171



3,490Increase / (Decrease) - Related Party Payables


427



3,966



61,862Net Cash From Operating Activities


-



-



(57,336
)Cash Flows From Investing ActivitiesPurchase of property and equipment


-



-



(12,433
)Website development costs


-



-



(10,309
)Net Cash From Investing Activities


-



-



(22,742
)Cash Flows from Financing ActivitiesStock offering costs


-



-



(6,072
)Related-party receivable


-



-



(1,000
)Proceeds from the issuance of common stock


-



-



87,150Net Cash From Financing Activities


-



-



80,078Net Increase In Cash


-



-



-Beginning Cash Balance


-



-



-Ending Cash Balance

$
-


$
-


$
-Supplemental Disclosure of Cash Flow Information:Cash paid during the year for interest

$
-


$
-


$
-Cash paid during the year for income taxes

$
-


$
-


$
-








See accompanying notes to financial statements.


5


Bear Lake Recreation, Inc.


(A Development Stage Company)


Notes to Condensed Financial Statements


September 30, 2010


(Unaudited)







NOTE 1 BASIS OF PRESENTATION





The accompanying financial statements have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The interim financial statements reflect all adjustments, consisting of normal recurring adjustments which, in the opinion of management, are necessary to present a fair statement of the results for the period.





Certain information and footnote 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-K for the year ended June 30, 2010. The results of operations for the period ended September 30, 2010, are not necessarily indicative of the operating results for the full year.





NOTE 2 LIQUIDITY/GOING CONCERN





The Company does not have significant assets, nor has it established operations, and has accumulated losses since inception. These factors raise substantial doubt about the Company’s ability to continue as a going concern. It is the intent of the Company to seek a merger with an existing, well-capitalized operating company. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.





NOTE 3 RELATED PARTY TRANSACTIONS





The Company had expenses and payables paid in its behalf by a shareholder in the amount of $427 during the quarter. The balance due the shareholder is $61,862 as of September 30, 2010. The unsecured loan bears no interest and is due on demand.





NOTE 4 RECENT ACCOUNTING PRONOUNCEMENTS





In October 2009, the FASB issued Accounting Standards Update No. 2009-13 for Revenue Recognition – Multiple Deliverable Revenue Arrangements (Subtopic 605-25) “Subtopic”. This accounting standard update establishes the accounting and reporting guidance for arrangements under which the vendor will perform multiple revenue – generating activities. Vendors often provide multiple products or services to their customers. Those deliverables often are provided at different points in time or over different time periods. Specifically, this Subtopic addresses how to separate deliverables and how to measure and allocate arrangement consideration to one or more units of accounting.  The amendments in this guidance will affect the accounting and reporting for all vendors that enter into multiple-deliverable arrangements with their customers when those arrangements are within the scope of this Subtopic.  This Statement is effective for fiscal years beginning on or after June 15, 2010. Earlier adoption is permitted. If a vendor elects early adoption and the period of adoption is not the beginning of the entity’s fiscal year, the entity will apply the amendments under this Subtopic retrospectively from the beginning of the entity’s fiscal year.  The presentation and disclosure requirements shall be applied retrospectively for all periods presented. Currently, Management believes this Statement will have no impact on the financial statements of the Company once adopted.





The Company has reviewed all other recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on its consolidated results of operation, financial position or cash flows.  Based on that review, the Company believes that none of these pronouncements will have a significant effect on its consolidated financial statements.


6





Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.





Forward-looking Statements





Statements made in this Quarterly Report which are not purely historical are forward-looking statements with respect to the goals, plan objectives, intentions, expectations, financial condition, results of operations, future performance and our business, including, without limitation, (i) our ability to raise capital, and (ii) statements preceded by, followed by or that include the words “may,” “would,” “could,” “should,” “expects,” “projects,” “anticipates,” “believes,” “estimates,” “plans,” “intends,” “targets” or similar expressions.





Forward-looking statements involve inherent risks and uncertainties, and important factors (many of which are beyond our control) that could cause actual results to differ materially from those set forth in the forward-looking statements, including the following: general economic or industry conditions, nationally and/or in the communities in which we may conduct business, changes in the interest rate environment, legislation or regulatory requirements, conditions of the securities markets, our ability to raise capital, changes in accounting principles, policies or guidelines, financial or political instability, acts of war or terrorism, other economic, competitive, governmental, regulatory and technical factors affecting our current or potential business and related matters.





Accordingly, results actually achieved may differ materially from expected results in these statements.  Forward-looking statements speak only as of the date they are made.  We do not undertake, and specifically disclaim, any obligation to update any forward-looking statements to reflect events or circumstances occurring after the date of such statements.





Plan of Operations





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.





During the next 12 months, our only foreseeable cash requirements will relate to maintaining our good standing; the payment of our Securities and Exchange Commission and the Exchange Act reporting filing expenses, including associated legal and accounting fees; costs incident to reviewing or investigating any potential business venture; and maintaining our good standing as a corporation in our state of organization.  Because a principal shareholder has been paying all of the operating expenses, management does not anticipate that we will have to raise additional funds during the next 12 months.





Our common stock currently trades on the Over-the-Counter Bulletin Board (OTCBB) under the symbol BLKE.OB.





Results of Operations





Three Months Ended September 30, 2010 Compared to Three Months Ended September 30, 2009





We had no operations during the quarterly period ended September 30, 2010, nor do we have operations as of the date of this filing.  In the quarterly period ended September 30, 2010, we had sales of $0, compared to the quarterly period ended September 30, 2009, with sales of $0. General and administrative expenses were $3,917 for the September 30, 2010, period, compared to $4,137 for the September 30, 2009, period. General and administrative expenses for the three months ended September 30, 2010, were comprised mainly of accounting and other office fees, and the decreased general and administrative expenses for the 2010 quarterly period over the 2009 quarterly period was limited to decreased accounting fees. We had a net loss of $3,917 for the September 30, 2010, period compared to a net loss of $4,137 for the September 30, 2009, period.


7


Liquidity and Capital Requirements





We had no cash or cash equivalents on hand at September 30, 2010. If additional funds are required, such funds may be advanced by management or shareholders as loans to us.  During the quarterly period ended September 30, 2010, expenses were paid by a principal shareholder in the amount of $427, and during the quarterly period ended September 30, 2009, additional expenses paid by a principal shareholder totaled $3,966. The aggregate amount of $61,862 is outstanding as of September 30, 2010, is non-interest bearing, unsecured and due on demand. Because we have not identified any acquisition or venture, it is impossible to predict the amount of any such loan.





Off-balance Sheet Arrangements





None.





Item 3.  Quantitative and Qualitative Disclosures About Market Risk.





Not required.





Item 4.  Controls and Procedures.





Evaluation of Disclosure Controls and Procedures





Disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) are designed to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in rules and forms adopted by the Securities and Exchange Commission, and that such information is accumulated and communicated to management, including the President and Secretary, to allow timely decisions regarding required disclosures.





Under the supervision and with the participation of our management, including our President and Secretary, we evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of the end of the period covered by this Quarterly Report.  Based upon that evaluation, our President and Secretary concluded that, as of the end of the period covered by this Quarterly Report, our disclosure controls and procedures were effective.





Changes in Internal Control Over Financial Reporting





During the fiscal quarter covered by this Quarterly Report, there has been no change in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.





PART II - OTHER INFORMATION





Item 1. Legal Proceedings





None.


8


Item 1A. Risk Factors





Not required.





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





None.





Item 3. Defaults Upon Senior Securities





None; not applicable.





Item 4. Removed and Reserved





Item 5. Other Information





None.





Item 6. Exhibits





(a) Exhibits




Exhibit No.
Identification of Exhibit3.1
Amended and Restated Articles of Incorporation*3.2
Bylaws*14.1
Code of Ethics*31.1
Certification of Wayne Bassham Pursuant to Section 302 of the Sarbanes-Oxley Act.31.2
Certification of Todd Albiston Pursuant to Section 302 of the Sarbanes-Oxley Act.32.1
Certification of Wayne Bassham and Todd Albiston Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act.
  *Incorporated herein by reference to our June 30, 2008, 10 K/A as filed on September 2, 2009.





(b) Reports on Form 8-K





None.




SIGNATURES




Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.





BEAR LAKE RECREATION, INC.


(Issuer)





Date:
10/29/10

By:
/s/Wayne BasshamWayne Bassham, Principal Executive Officer







Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this Quarterly Report has also been signed below by the following person on behalf of the Registrant and in the capacities and on the dates indicated.





Date:
10/29/10

By:
/s/Todd AlbistonTodd Albiston, Principal Financial Officer