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, 2008




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





For the transition period from
______to______.




BEDMINSTER
FINANCIAL CORP.


(Exact
name of registrant as specified in Charter




NEVADA
            
            000-52666
            
            20-8285559(State
      or other jurisdiction of
              incorporation
      or organization)
            
            (Commission
      File No.)
            
            (IRS
      Employee Identification No.)





90
Washington Valley Road, Bedminster, New Jersey 07921


(Address
of Principal Executive Offices)


_______________




(908)
719-8941


(Issuer
Telephone number)


_______________




(Former
Name or Former Address if Changed Since Last Report)




Check
whether the issuer (1) has filed all reports required to be filed by Section 13
or 15(d) of the Exchange Act during the preceding 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 registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer or a smaller reporting company filer.
 See definition of “accelerated filer” and “large accelerated filer” in
Rule 12b-2 of the Exchange Act (Check one):




Large
Accelerated Filer o     Accelerated
Filer o     Non-Accelerated
Filer o     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 £




State the
number of shares outstanding of each of the issuer’s classes of common equity,
as of November 10, 2008: 931,590 shares of Class A Common Stock and
215,400 shares of Class B Common Stock.















BEDMINSTER
FINANCIAL CORP





FORM
10-Q




September
30, 2008




Table
of Contents





INDEX




PART I
      FINANCIAL INFORMATIONItem 1.
            
            Financial
      Statements
            
            1Balance
      Sheets at September 30, 2008 (unaudited) and December 31,
    2007
            
            1Statements
      of Operations (unaudited) for the three months and nine months ended
      September 30, 2008 and 2007
            
            2Statements
      of Cash Flows  (unaudited) for the nine months ended September
      30, 2008 and 2007
            
            3Notes
      to Financial Statements (unaudited)
            
            4Item 2.
            
            Management
      Discussion and Analysis of Financial Condition and Results of
      Operations.
            
            8Item 3.
            
            Quantitative
      and Qualitative Disclosures About Market Risk.
            
            11Item 4T.
            
            Controls
      and Procedures.
            
            11PART II
      OTHER INFORMATIONItem 1.
            
            Legal
      Proceedings.
            
            12Item 2.
            
            Unregistered
      Sales of Equity Securities and Use of Proceeds.
            
            12Item 3.
            
            Defaults
      Upon Senior Securities.
            
            12Item 4.
            
            Submission
      of Matters to a Vote of Security Holders.
            
            12Item 5.
            
            Other
      Information.
            
            12Item 6.
            
            Exhibits.
            
            12Signatures.
            
            13
















Item
1. Financial Information




BEDMINSTER
      FINANCIAL CORP.(A
      DEVELOPMENT STAGE COMPANY)BALANCE
      SHEETSSeptember
      30,
              
              
              December
      31,2008
              
              
              2007(unaudited)
              
              
              (audited)ASSETSCURRENT
      ASSETSCash
              
              $
              5,472
              
              
              $
              25Total
      Current Assets
              
              
              5,472
              
              
              
              25OTHER
      ASSETSDeposits
              
              
              450
              
              
              
              450Total
      Other Assets
              
              
              450
              
              
              
              450TOTAL
      ASSETS
              
              $
              5,922
              
              
              $
              475LIABILITIES
      AND STOCKHOLDERS’ DEFICITCURRENT
      LIABILITIESLines
      of credit
              
              $
              211,410
              
              
              $
              113,127Accounts
      payable and accrued expenses
              
              
              273,064
              
              
              
              87,108Note
      payable - related party
              
              
              5,000
              
              
              
              -Total
      Current Liabilities
              
              
              489,474
              
              
              
              200,235STOCKHOLDERS’
      DEFICITPreferred
      stock, $0.0001 par value, 100,000,000 shares authorized,none issued
      and outstanding
              
              
              -
              
              
              
              -Common
      stock – Class A, $0.0001 par value, 200,000,000 shares
      authorized,895,590
      shares issued and outstanding
              
              
              90
              
              
              
              90Common
      stock – Class B, $0.0001 par value, 3,000,000 shares
      authorized,215,400
      shares issued and outstanding
              
              
              22
              
              
              
              22Additional
      paid in capital
              
              
              88,261
              
              
              
              88,261Deficit
      accumulated during development stage
              
              
              (571,925
              )
              
              
              (288,133
              )Total
      Stockholders’ Deficit
              
              
              (483,552
              )
              
              
              (199,760
              )TOTAL
      LIABILITIES AND STOCKHOLDERS’ DEFICIT
              
              $
              5,922
              
              
              $
              475




The
accompanying notes to the financial statements are an integral part of these
statements






-1-






BEDMINSTER
      FINANCIAL CORP.(A
      DEVELOPMENT STAGE COMPANY)STATEMENTS
      OF OPERATIONS (UNAUDITED)Period
                from
              
              
              
              
              
              
              
              
              Cumulative
      fromJanuary
      16,
              
              
              
              
              
              
              
              
              January
      16,Nine
      Months Ended
              
              
              2007
                (Inception)
      to
              
              
              Three
      Months Ended
              
              
              2007
                (Inception)
      toSeptember
      30,
                2008
              
              
              September
      30,
                2007
              
              
              September
      30,
                2008
              
              
              September
      30,
                2007
              
              
              September
      30,
                2008REVENUES
              
              $
              -
              
              
              $
              -
              
              
              $
              -
              
              
              $
              -
              
              
              $
              -OPERATING
      EXPENSESProfessional
      fees
              
              
              264,183
              
              
              
              170,583
              
              
              
              86,522
              
              
              
              67,811
              
              
              
              535,617General
      and administrative
              
              
              10,020
              
              
              
              6,050
              
              
              
              3,347
              
              
              
              3,612
              
              
              
              22,332Total
      Operating Expenses
              
              
              274,203
              
              
              
              176,633
              
              
              
              89,869
              
              
              
              71,423
              
              
              
              557,949LOSS
      FROM OPERATIONS
              
              
              (274,203
              )
              
              
              (176,633
              )
              
              
              (89,869
              )
              
              
              (71,423
              )
              
              
              (557,949
              )OTHER
      EXPENSEInterest
      Expense
              
              
              (9,589
              )
              
              
              (2,351
              )
              
              
              (3,651
              )
              
              
              (1,512
              )
              
              
              (13,976
              )Total
      Other Expense
              
              
              (9,589
              )
              
              
              (2,351
              )
              
              
              (3,651
              )
              
              
              (1,512
              )
              
              
              (13,976
              )NET
      LOSS
              
              $
              (283,792
              )
              
              $
              (178,984
              )
              
              $
              (93,520
              )
              
              $
              (72,935
              )
              
              $
              (571,925
              )Net
      loss per share - basic and diluted
              
              $
              (0.26
              )
              
              $
              (0.16
              )
              
              $
              (0.08
              )
              
              $
              (0.07
              )Weighted
      average number of shares outstandingduring
      the period - basic and diluted
              
              
              1,110,990
              
              
              
              1,090,990
              
              
              
              1,110,990
              
              
              
              1,090,990


The
accompanying notes to the financial statements are an integral part of these
statements




-2-






BEDMINSTER
      FINANCIAL CORP.(A
      DEVELOPMENT STAGE COMPANY)STATEMENTS
      OF CASH FLOWS (UNAUDITED)Period
                from
              
              
              Cumulative
      fromJanuary
      16,
              
              
              January
      16,Nine
      Months Ended
              
              
              2007
                (Inception)
      to
              
              
              2007
                (Inception)
      toSeptember
      30,
                2008
              
              
              September
      30,
                2007
              
              
              September
      30,
                2008CASH
      FLOWS FROM OPERATING ACTIVITIESNet
      loss
              
              $
              (283,792
              )
              
              $
              (178,984
              )
              
              $
              (571,925
              )Adjustments
      to reconcile net loss to net cash used inoperating
      activities:Common
      stock issued for service
              
              
              -
              
              
              
              -
              
              
              
              20,000Services
      contributed
              
              
              -
              
              
              
              65,000
              
              
              
              65,000Changes
      in operating assets and liabilities:Increase in
      accounts payable and accrued expenses
              
              
              185,956
              
              
              
              33,988
              
              
              
              273,064Increase in
      deposits
              
              
              -
              
              
              
              (450
              )
              
              
              (450
              )Net
      Cash Used In Operating Activities
              
              
              (97,836
              )
              
              
              (80,446
              )
              
              
              (214,311
              )CASH
      FLOWS FROM FINANCING ACTIVITIESProceeds
      from issuance of common stock
              
              
              -
              
              
              
              3,373
              
              
              
              3,373Proceeds
      from note payable - related party
              
              
              5,000
              
              
              
              -
              
              
              
              5,000Net
      proceeds from lines of credit
              
              
              98,283
              
              
              
              79,359
              
              
              
              211,410Net
      Cash Provided By Financing Activities
              
              
              103,283
              
              
              
              82,732
              
              
              
              219,783NET
      INCREASE IN CASH
              
              
              5,447
              
              
              
              2,286
              
              
              
              5,472CASH
      AT BEGINNING OF PERIOD
              
              
              25
              
              
              
              -
              
              
              
              -CASH
      AT END OF PERIOD
              
              $
              5,472
              
              
              $
              2,286
              
              
              $
              5,472Supplementary
      disclosure of cash flow informationCash
      paid for interest
              
              $
              9,589
              
              
              $
              2,351
              
              
              $
              13,976


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




-3-




BEDMINSTER
FINANCIAL CORP.
 (A
DEVELOPMENT STAGE COMPANY)
 NOTES
TO FINANCIAL STATEMENTS
 AS
OF SEPTEMBER 30, 2008


NOTE
1     SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES AND ORGANIZATION
 
 (A) Basis of Presentation
and Organization
  The
accompanying unaudited condensed financial statements have been prepared in
accordance with the requirements of Form 10-Q and Rule 8-03 of Regulation S-X of
the Securities and Exchange Commission (the “Commission”) and include the
results of Bedminster Financial Corp. (a development stage company) (the
“Company”).  Accordingly, certain information and footnote disclosures
required in financial statements prepared in accordance with accounting
principles generally accepted in the United States of America have been
condensed or omitted.  Statements are subject to possible adjustments
in connection with the annual audit of the Company’s accounts for the year ended
December 31, 2008.  In the opinion of the Company’s management, the
accompanying unaudited condensed financial statements contain all adjustments
(consisting only of normal recurring adjustments) which the Company considers
necessary for the fair presentation of the Company’s financial position as of
September 30, 2008 and the results of its operations and cash flows for the
three and nine month period ended September 30, 2008.  Results for the
nine months ended September 30, 2008 are not necessarily indicative of results
that may be expected for the entire year.  The unaudited condensed
financial statements should be read in conjunction with the audited financial
statements of the Company and the notes thereto as of and for the year ended
December 31, 2007 included in the Company’s Form 10-KSB filed with the
Commission on March 10, 2008.
 
 The
Company was incorporated under the laws of the State of Nevada on January 16,
2007.  The Company was organized to manage investment assets and
provide trust services. The Company will provide institutions and high net worth
individuals with trust and custodial services and related financial advisory
services.  The Company was a wholly owned subsidiary of Bedminster
National Corp, until the August 2007, when the Company was spun
off.
 
 Activities
during the development stage include developing the business plan and raising
capital.
 
 (B) Use of
Estimates
 
 In
preparing financial statements in conformity with generally accepted accounting
principles, management is required to make estimates and assumptions that affect
the reported amounts of assets and liabilities and the disclosure of contingent
assets and liabilities at the date of the financial statements and revenues and
expenses during the reported period.  Actual results could differ from
those estimates.
  (C) Cash
Equivalents
 
 The
Company’s policy is to consider all highly liquid investments with original
maturities of three months or less at the time of purchase to be cash
equivalents.
 
 (D) Income
Taxes
 
 The
Company accounts for income taxes under the Statement of Financial Accounting
Standards No. 109, “Accounting for Income Taxes” (“Statement
109”).  Under Statement 109, deferred tax assets and liabilities are
recognized for the future tax consequences attributable to differences between
the financial statement carrying amounts of existing assets and liabilities and
their respective tax bases.  Deferred tax assets and liabilities are
measured using enacted tax rates expected to apply to taxable income in the
years in which those temporary differences are expected to be recovered or
settled.  Under Statement 109, the effect on deferred tax assets and
liabilities of a change in tax rates is recognized in income in the period that
includes the enactment date.  At September 30, 2008, deferred tax
assets amounted to approximately $230,000 which related to net operating loss
carryforwards.
  -4-
   BEDMINSTER
FINANCIAL CORP.
 (A
DEVELOPMENT STAGE COMPANY)
 NOTES
TO FINANCIAL STATEMENTS
 AS
OF SEPTEMBER 30, 2008
 The
Company maintains a valuation allowance with respect to deferred tax assets. The
Company establishes a valuation allowance based upon the potential likelihood of
realizing the deferred tax asset and taking into consideration the Company’s
consolidated financial position and results of operations for the current
period. Future realization of the deferred tax benefit depends on the existence
of sufficient taxable income within the carryforward period under the Federal
tax laws. Changes in circumstances, such as the Company generating taxable
income, could cause a change in judgment about the realizability of the related
deferred tax asset. Any change in the valuation allowance will be included in
income in the year of the change in estimate. The Company recorded a full
valuation allowance to reflect the estimated amount of deferred tax assets which
are currently not realizable.
 (E) Business
Segments
 
 The
Company operates in one segment and therefore segment information is not
presented.
 
 (F) Revenue
Recognition
 
 The
Company is in the development stage and has yet to realize revenues from
operations. Once the Company has commenced operations, it will recognize
revenues when delivery of goods or completion of services has occurred provided
there is persuasive evidence of an agreement, acceptance has been approved by
its customers, the fee is fixed or determinable based on the completion of
stated terms and conditions, and collection of any related receivable is
probable. The
Company had no revenues for the quarter and nine months ended September 30,
2008.
  (G) Financial
Instruments
 
 The
Company’s financial instruments consist of cash and lines of credit. Unless
otherwise noted, it is management’s opinion that the Company is not exposed to
significant interest, currency or credit risks arising from these financial
instruments. The fair value of these financial instruments approximates their
carrying value, unless otherwise noted.
 
 (H) Loss Per
Share
 
 Basic and
diluted net loss per common share is computed based upon the weighted average
common shares outstanding as defined by Financial Accounting Standards No. 128,
“Earnings Per Share.”   There are no dilutive securities
outstanding as of September 30, 2008.
 
 (I) Recent Accounting
Pronouncements
 
 In
September 2006, the FASB issued SFAS No. 157, “Fair Value Measurements”. The
objective of SFAS 157 is to increase consistency and comparability in fair value
measurements and to expand disclosures about fair value
measurements.  SFAS 157 defines fair value, establishes a framework
for measuring fair value in generally accepted accounting principles, and
expands disclosures about fair value measurements. SFAS 157 applies under other
accounting pronouncements that require or permit fair value measurements and
does not require any new fair value measurements. The provisions of SFAS No. 157
are effective for fair value measurements made in fiscal years beginning after
November 15, 2007. The adoption of this statement did not have a material effect
on the Company's future reported financial position or results of
operations.
  In
February 2007, the Financial Accounting Standards Board (FASB) issued SFAS No.
159, “The Fair Value Option
for Financial Assets and Financial Liabilities – Including an Amendment of FASB
Statement No. 115.”  This statement permits entities to choose
to measure many financial instruments and certain other items at fair value.
Most of the provisions of SFAS No. 159 apply only to entities that elect the
fair value option. However, the amendment to SFAS No. 115 “Accounting for Certain Investments
in Debt and Equity Securities” applies to all entities with
available-for-sale and trading securities. SFAS No. 159 is effective as of the
beginning of an entity’s first fiscal year that begins after November 15, 2007.
The adoption of this statement did not have a material effect on the Company's
financial statements.
 -5-
   BEDMINSTER
FINANCIAL CORP.
 (A
DEVELOPMENT STAGE COMPANY)
 NOTES
TO FINANCIAL STATEMENTS
 AS
OF SEPTEMBER 30, 2008
 In
December 2007, the FASB issued SFAS No. 160, “Noncontrolling Interests in
Consolidated Financial Statements, an Amendment of ARB No. 51” (“SFAS 160”). SFAS 160 amends
ARB 51 to establish accounting and reporting standards for the noncontrolling
interest in a subsidiary and for the deconsolidation of a subsidiary. An
ownership interest in subsidiaries held by parties other than the parent should
be presented in the consolidated statement of financial position within equity,
but separate from the parent’s equity. SFAS 160 requires that changes in a
parent’s ownership interest while the parent retains its controlling financial
interest in its subsidiary should be accounted for similarly as equity
transactions. When a subsidiary is deconsolidated, any retained noncontrolling
equity investment in the former subsidiary should be initially measured at fair
value, with any gain or loss recognized in earnings. SFAS 160 requires
consolidated net income to be reported at amounts that include the amounts
attributable to both the parent and the noncontrolling interest. It also
requires disclosure, on the face of the consolidated income statement, of the
amounts of consolidated net income attributable to the parent and to the
noncontrolling interests. SFAS 160 is effective for fiscal years (including
interim periods within those fiscal years) beginning on or after December 15,
2008 (October 1, 2009 for the Company). Earlier adoption is prohibited. The
statement shall be applied prospectively as of the beginning of the fiscal year
in which it is initially applied, except for the presentation and disclosure
requirement which shall be applied retrospectively for all periods presented.
The Company is currently evaluating the impact SFAS 160 will have on its
consolidated financial statements.
  NOTE
2     RELATED PARTY
TRANSACTIONS
 
 The
Company has entered into a management services agreement with Apogee Holdings
Inc. (“Apogee”), a related party due to common ownership that became effective
March 1, 2007.  The management agreement ends December 31, 2017 and
calls for an annual fee of $240,000 (which amount shall be increased by $5,000
when and if the Company’s revenues, based on the trailing twelve months over per
forma basis, exceed $5,000,000 and there after increase by an additional $2,000
for each proforma revenue increase of $5,000,000), which management fee shall
increase by no less then 5% annually.  In the event of termination of
services without cause, the agreement provides that the Company shall pay the
amount of the balance of the term of the agreement up to a maximum of
$250,000.
  Apogee
will also earn an annual bonus as follows: ten percent of the annual adjusted
EBITDA based on the audited consolidated results of the Company.  40%
of such bonus shall be paid in cash and the remaining 60% shall be paid in
shares of Class A Common Stock of the Company based on an amount equal to 120%
of the annual average stock price.  Such shares shall be restricted
from sale for a period of three years from the date that Apogee receives such
bonus shares.  Apogee will also be entitled to an additional bonus of
$100,000 in cash if and when the Company becomes a separate publicly traded
entity, provided that the Board shall determine that the Company has sufficient
funds to pay such bonus or any portion of such bonus from time to time. For the
nine months ended September 30, 2008, the Company has included in professional
fees $189,000 under the management agreement. For the period January 16, 2007
(inception) to September 30, 2008, the Company has incurred fees of $293,500
under the management agreement.
 
 At
September 30, 2008, the Company had a $5,000 note payable due to Bedminster
National Corp (“BNC”) used for operating expenses.  There are no
definite repayment terms associated with the note.  BNC is the former
parent of the Company (see Note 1).
  NOTE
3     LINES OF
CREDIT
 
 In
January 2007, Signature Bank approved a $100,000 line of credit for the
Company.  In November 2007 the line of credit was increased to
$201,426.  The line bears interest at a rate of 1% above the Wall
Street Journal prime rate (6% as of September 30, 2008) on all outstanding
amounts and requires monthly payments of 1/36 of all principal amounts
outstanding under the line plus interest.  The line of credit is
secured by all the assets of the Company and the Company’s former parent has
also guaranteed repayment of the line.  The CEO, Paul Patrizio, has
also personally guaranteed repayment of the line.  As of September 30,
2008, there is $201,425 outstanding under the line (including accrued
interest).
   -6-
   BEDMINSTER
FINANCIAL CORP.
 (A
DEVELOPMENT STAGE COMPANY)
 NOTES
TO FINANCIAL STATEMENTS
 AS
OF SEPTEMBER 30, 2008
 In June
2008, PNC Bank extended to the Company a credit line of $10,000.  As
of September 30, 2008, the line bears an interest rate of 15% on all outstanding
balances.  As of September 30, 2008 there is $9,985 outstanding under
the line (including accrued interest).
 
 NOTE
4   COMMITMENTS AND
CONTINGENCIES
 
 (A) Management Service
Agreement
 
 The
Company has entered into a management services agreement with Apogee Holdings
Inc. (“Apogee”), a related party due to common ownership, that became effective
March 1, 2007 (see Note 2).
 
 NOTE
5    GOING
CONCERN
 
 As
reflected in the accompanying financial statements, the Company is in the
development stage, has a deficit accumulated during the development stage
of $571,925, negative working capital of $483,552, and has a negative cash
flow from operations of $214,311 from inception. These factors raise substantial
doubt about its ability to continue as a going concern. The ability of the
Company to continue as a going concern is dependent on the Company’s ability to
raise additional capital and implement its business plan. Management believes
that actions presently being taken to obtain additional funding and implement
its strategic plans may provide the opportunity for the Company to continue as a
going concern.  The financial statements do not include any
adjustments that might be necessary if the Company is unable to continue as a
going concern.
 NOTE
6    STOCKHOLDERS’
DEFICIT
 
 A
one-for-ten reverse stock split was effected during April 2008.  The
Company retained the current par value of $0.0001 per share for all shares or
its Class A and Class B common stock.  All references in the financial
statements to the number of shares outstanding and per share amounts have been
restated to reflect the effect of the reverse stock split for all periods
presented.  Stockholders’ deficit reflects the reverse stock split by
reclassifying from “common stock” to “additional paid in capital” an amount
equal to the par value of the reduced shares arising from the reverse
split.
 
 NOTE
7    SUBSEQUENT
EVENT
 
 The
Company issued 36,000 Class A Common Shares under the consulting agreement for
services rendered in the fourth quarter of 2008.




-7-









ITEM
2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS





The
following discussion contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934 relating to future events or our future performance. Actual
results may materially differ from those projected in the forward-looking
statements as a result of certain risks and uncertainties set forth in this
prospectus. Although management believes that the assumptions made and
expectations reflected in the forward-looking statements are reasonable, there
is no assurance that the underlying assumptions will, in fact, prove to be
correct or that actual results will not be different from expectations expressed
in this report.




Separation from Bedminster
National




During
August 2007, we were spun-off from our former parent Bedminster
National.  We are in the business of managing investment assets.
Following the distribution, we are an independent public company and Bedminster
National no longer maintains any stock ownership in us.




Plan of
Operations





During
the next twelve months, we expect to take the following steps in connection with
the further development of our business and the implementation of our plan of
operations:





Fourth
Quarter 2008




We will
attempt to raise $200,000 in debt financing for initial working capital. We
expect that the $200,000 in debt financing will be a private placement to
individual investors of short term notes personally guaranteed by management.
The proceeds of the note offering would be used solely for beginning the process
of funding our business and commence receiving any regulatory
approvals.




First
Quarter 2009




During
this quarter, we may seek investment partners in order to raise the necessary
funds to further develop our business. Such partners include banks, investment
funds and broker-dealers, and management intends to utilize its significant
contacts among these entities to facilitate such a relationship. The funding
will likely consist of a private placement of debt and/or our equity securities
possibly through the assistance of a broker-dealer. We intend to sell only
shares of Class A Common Stock or securities that are convertible into shares of
Class A Common Stock and accordingly we believe that such a placement would not
result in any change in our control. However, the specific amount, timing
and terms of any such placement will not be known until an agreement has been
executed by us and any potential investment partner.




Second
Quarter 2009




If we
have the necessary approvals, we will seek out opportunities to provide
investment and trust services and intend to enhance our capabilities by adding
personnel or entering into joint ventures with other financial service firms. We
intend to raise an additional $500,000 through debt or equity financing to
support our efforts to hire additional staff during this
period.






-8-




Third
Quarter 2009




If we
have not already completed the financing transaction during the third quarter,
we intend to close on such additional financing for working capital and
corporate overhead. We intend to actively recruit new board members with
appropriate experience and hire a corporate staff including a chief financial
officer.




Going
Concern




As
reflected in the accompanying financial statements, the Company is in the
development stage, has an accumulated deficit during the development stage of
$571,925, negative working capital of $484,002, and has a negative cash flow
from operations of $214,311 from inception. These factors raise substantial
doubt about its ability to continue as a going concern. The ability of the
Company to continue as a going concern is dependent on the Company’s ability to
raise additional capital and implement its business plan. Management believes
that actions presently being taken to obtain additional funding and implement
its strategic plans may provide the opportunity for the Company to continue as a
going concern.  The financial statements do not include any
adjustments that might be necessary if the Company is unable to continue as a
going concern.


Results of
Operations




From
Inception, January 16, 2007, through September 30, 2008





Revenues





We had no
revenues from inception through September 30, 2008.




Operating
Expenses




Total
operating expenses from inception through September 30, 2008 were $557,949consisting of
$535,617for
professional fees and $22,332 for general and administrative expenses. The cost
and expenses from inception through September 30, 2008 were attributable
primarily to professional fees incurred in connection with our formation and
management fees and management fees as set forth below.




Net Loss




Our net
loss from inception through September 30, 2008 was $571,925.


Liquidity and Capital
Resources




As of
September 30, 2008 we had $5,472 in cash. In January 2007, Signature Bank
approved a $100,000 line of credit for the Company.  In November 2007
the line of credit was increased to $200,000.  The line bears interest
at a rate of 1% above the Wall Street Journal prime rate (6% as of September 30,
2008) on all outstanding amounts and requires monthly payments of 1/36 of all
principal amounts outstanding under the line plus interest.  The line
of credit is secured by all the assets of the Company and the Company’s former
parent has also guaranteed repayment of the line.  The CEO, Paul
Patrizio, has also personally guaranteed repayment of the line.  As of
September 30, 2008, there is $201,425 outstanding under the line (including
accrued interest).




In June
2008, PNC Bank extended to the Company a credit line of $10,000.  As
of September 30, 2008, the line bears an interest rate of 15% on all outstanding
balances.  As of September 30, 2008 there is $9,985 outstanding under
the line (including accrued interest).


We
believe we can not currently satisfy our cash requirements over the next twelve
months with our current cash and our bank lines. However, management plans to
obtain additional financing in order to sustain operations for at least the next
twelve months. Also completion of our plan of operation is subject to attaining
adequate revenue. We cannot assure investors that adequate revenues will be
generated. In the absence of our projected revenues, we may be unable to
proceed with our plan of operations. Even without significant revenues within
the next twelve months, we still anticipate being able to continue with our
present activities, but we may require financing to potentially achieve our goal
of profit, revenue and growth.




In
the event we are not successful in reaching our initial revenue targets,
additional funds may be required, and we would not be able to proceed with our
business plan for the development and marketing of
our services.  Should this occur, we would likely seek additional
financing to support the continued operations of our business. We anticipate
that depending on market conditions and our plan of operations, we would incur
operating losses in the foreseeable future. We base this expectation, in part,
on the fact that we may not be able to generate enough gross profit from
our services to cover our operating expenses. Consequently, there is
substantial doubt about the company’s ability to continue to operate as going
concern.




Critical Accounting
Policies




Our
significant accounting policies are summarized in Note 1 of our financial
statements.






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We have
adopted the following accounting standards. While all of these significant
accounting policies impact our financial condition, our views of these policies
are critical. Policies determined to be critical are those policies that have
the most significant impact on our financial statements and require management
to use a greater degree of judgment and estimates. Actual results may differ
from those estimates. Our management believes that given current facts and
circumstances, it is unlikely that applying any other reasonable judgments or
estimate methodologies would cause effect on our results of operations,
financial position or liquidity for the periods presented in this
report:




Recent Accounting
Pronouncements




In
September 2006, the FASB issued SFAS No. 157, “Fair Value Measurements”. The
objective of SFAS 157 is to increase consistency and comparability in fair value
measurements and to expand disclosures about fair value
measurements.  SFAS 157 defines fair value, establishes a framework
for measuring fair value in generally accepted accounting principles, and
expands disclosures about fair value measurements. SFAS 157 applies under other
accounting pronouncements that require or permit fair value measurements and
does not require any new fair value measurements. The provisions of SFAS No. 157
are effective for fair value measurements made in fiscal years beginning after
November 15, 2007. The adoption of this statement did not have a material effect
on the Company's future reported financial position or results of
operations.




In
February 2007, the Financial Accounting Standards Board (FASB) issued SFAS No.
159, “The Fair Value Option
for Financial Assets and Financial Liabilities – Including an Amendment of FASB
Statement No. 115”.  This statement permits entities to choose
to measure many financial instruments and certain other items at fair value.
Most of the provisions of SFAS No. 159 apply only to entities that elect the
fair value option. However, the amendment to SFAS No. 115 “Accounting for Certain Investments
in Debt and Equity Securities” applies to all entities with
available-for-sale and trading securities. SFAS No. 159 is effective as of the
beginning of an entity’s first fiscal year that begins after November 15, 2007.
Early adoption is permitted as of the beginning of a fiscal year that begins on
or before November 15, 2007, provided the entity also elects to apply the
provision of SFAS No. 157, “Fair Value Measurements”. The
adoption of this statement did not have a material effect on the Company's
financial statements.





In
December 2007, the FASB issued SFAS No. 160, “ Noncontrolling Interests in
Consolidated Financial Statements, an Amendment of ARB No. 51”
(“ SFAS 160” ).
SFAS 160 amends ARB 51 to establish accounting and reporting standards for the
noncontrolling interest in a subsidiary and for the deconsolidation of a
subsidiary. An ownership interest in subsidiaries held by parties other than the
parent should be presented in the consolidated statement of financial position
within equity, but separate from the parent’s equity. SFAS 160 requires that
changes in a parent’s ownership interest while the parent retains its
controlling financial interest in its subsidiary should be accounted for
similarly as equity transactions. When a subsidiary is deconsolidated, any
retained noncontrolling equity investment in the former subsidiary should be
initially measured at fair value, with any gain or loss recognized in earnings.
SFAS 160 requires consolidated net income to be reported at amounts that include
the amounts attributable to both the parent and the noncontrolling interest. It
also requires disclosure, on the face of the consolidated income statement, of
the amounts of consolidated net income attributable to the parent and to the
noncontrolling interests. SFAS 160 is effective for fiscal years (including
interim periods within those fiscal years) beginning on or after December 15,
2008 (October 1, 2009 for the Company). Earlier adoption is prohibited. The
statement shall be applied prospectively as of the beginning of the fiscal year
in which it is initially applied, except for the presentation and
disclosure requirement which shall be applied retrospectively for all periods
presented. The Company is currently evaluating the impact SFAS 160 will have on
its consolidated financial statements.






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Off-Balance Sheet
Arrangements





We do not
have any off-balance sheet arrangements, financings, or other relationships with
unconsolidated entities or other persons, also known as “special purpose
entities” (SPEs).




Item
3.  Quantitative and Qualitative Disclosures about Market
Risks





We
conduct our business in United States dollars. Our market risk is limited to the
United States domestic, economic and regulatory factors.





Item
4T. Controls and Procedures




Evaluation of Disclosure
Controls and Procedures




Pursuant
to Rule 13a-15(b) under the Securities Exchange Act of 1934 (“Exchange Act”),
the Company carried out an evaluation, with the participation of the Company’s
management, including the Company’s Chief Executive Officer (“CEO”) and Chief
Accounting Officer (“CAO”) (the Company’s principal financial and accounting
officer), of the effectiveness of the Company’s disclosure controls and
procedures (as defined under Rule 13a-15(e) under the Exchange Act) as of the
end of the period covered by this report. Based upon that evaluation, the
Company’s CEO and CAO concluded that the Company’s disclosure controls and
procedures are effective to ensure that information required to be disclosed by
the Company in the reports that the Company files or submits under the Exchange
Act, is recorded, processed, summarized and reported, within the time periods
specified in the SEC’s rules and forms, and that such information is accumulated
and communicated to the Company’s management, including the Company’s CEO and
CAO, as appropriate, to allow timely decisions regarding required
disclosure.





Management’s Report on
Internal Controls over Financial Reporting





There
were no changes in internal control over financial reporting that occurred
during the fiscal period covered by this report that have materially affected,
or are reasonably likely to materially affect, the Company’s internal control
over financial reporting.







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PART
II - OTHER INFORMATION





Item
1. Legal Proceedings.




Currently
we are not aware of any litigation pending or threatened by or against the
Company.




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




The
Company issued 36,000 Class A Shares for services rendered.




Item
3. Defaults Upon Senior Securities.




None




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




None.




Item
5. Other Information.




None




Item
6. Exhibits and Reports of Form 8-K.




(a)           Exhibits




31.1
Certifications pursuant to Section 302 of Sarbanes Oxley Act of
2002




32.1
Certifications pursuant to Section 906 of Sarbanes Oxley Act of
2002




(b)           Reports
of Form 8-K




None.







-12-









SIGNATURES




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







Bedminster Financial
      CorpDate:
      November 13, 2008
            By:
            /s/
      Paul PatrizioPaul
      PatrizioPresident,
              Chief
      Executive Officer,
              Chief
      Financial Officer







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