SECURITIES
      AND EXCHANGE COMMISSION


Washington,
      D.C. 20549





FORM
      10-KSB





Annual
      Report Under Section 13 or 15(d) of


the
      Securities Exchange Act of 1934





For
      the Fiscal Year Ended:September
      30, 2007





Commission
      File No. 0-1346352





KURRANT
      FOOD ENTERPRISES,
      INC.


(Exact
      Name of Small Business Issuer as specified in its charter)








Colorado
            20-3902781(State
                or other jurisdiction
            (IRS
                Employer File Number)of
                incorporation)





3003
                Arapahoe StreetDenver,
                Colorado
            80205(Address
                of principal executive offices)
            (Zip
                code)





(303)
      300-5255


(Registrant's
      telephone number, including area code)





Securities
      to be Registered Pursuant to
      Section 12(b) of the Act: None





Securities
      to be Registered Pursuant to Section 12(g) of the Act:





Common
      Stock, $.0.001 per
      share par value





Check
      whether issuer is not required to file reports pursuant to Section 13 or 15(d)
      of the Exchange Act [ ]





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: [ ]





Check
      if
      there is no disclosure of delinquent filers in response to Item 405 of
      Regulation S-B is contained in this form and no disclosure will be contained,
      to
      the best of Registrant's knowledge, in definitive proxy or information
      statements incorporated by reference in Part III of this Form 10-KSB. [X]





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


Yes
      [ ]
      No [X]





Registrant's
      revenues for its most recent fiscal year were $454,514. The aggregate market
      value of the voting stock held by nonaffiliates computed by reference to the
      price at which the stock was sold, or the average bid and asked prices of such
      stock, as of November 18, 2007 was approximately $592,000.  The number
      of shares outstanding of the Registrant's common stock, as of the latest
      practicable date, December 1, 2007, was 12,667,533.








FORM
      10-KSB





Kurrant
      Food Enterprises, Inc.





INDEX


PagePART
                  IItem
                  1. Description of Business
              3Item
                  2. Description of Property
              9Item
                  3. Legal Proceedings
              9Item
                  4. Submission of Matters to a Vote of Security Holders
              10PART
                  IIItem
                  5. Market for Common Equity, Related Stockholder Matters and Issuer
                  Purchases of Equity Securities
              10Item
                  6. Management's Discussion and Analysis of Financial Condition
                  and Results
                  of Operations
              11Item
                  7. Financial Statements
              F-1Item
                  8. Changes in and Disagreements with Accountants on Accounting
                  and
                  Financial Disclosures
              17Item
                  8A. Controls and Procedures
              17Item
                  8B. Other Information
              17PART
                  IIIItem
                  9. Directors, Executive Officers, Promoters and Control Persons;
                  Compliance with Section 16(a) of the Exchange Act
              17Item
                  10. Executive Compensation
              18Item
                  11. Security Ownership of Certain Beneficial Owners and
                  Management
              18Item
                  12. Certain Relationships and Related Transactions
              20Item
                  13. Exhibits and Reports on Form 8-K
              20Item
                  14. Principal Accountant Fees and Services
              21Financial
                  Statements pages
              F-1Signatures
              21


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          2 -


References
      in this document to "us," "we," or "Company" refer to Kurrant Food Enterprises,
      Inc. and includes our wholly-owned subsidiaries, Kurrant Cuisine Enterprises,
      Inc. and Kurrant Mobile Catering, Inc.





Forward-Looking
      Statements





The
      following discussion contains forward-looking statements regarding us, our
      business, prospects and results of operations that are subject to certain risks
      and uncertainties posed by many factors and events that could cause our actual
      business, prospects and results of operations to differ materially from those
      that may be anticipated by such forward-looking statements. Factors that may
      affect such forward-looking statements include, without limitation: our ability
      to successfully develop new products and services for new markets; the impact
      of
      competition on our revenues, changes in law or regulatory requirements that
      adversely affect or preclude clients from using us for certain applications;
      delays our introduction of new products or services; and our failure to keep
      pace with our competitors.





When
      used
      in this discussion, words such as "believes", "anticipates", "expects",
      "intends" and similar expressions are intended to identify forward-looking
      statements, but are not the exclusive means of identifying forward-looking
      statements. Readers are cautioned not to place undue reliance on these
      forward-looking statements, which speak only as of the date of this report.
      We
      undertake no obligation to revise any forward-looking statements in order to
      reflect events or circumstancesthat may subsequently
      arise. Readers are urged to carefully review and consider the various
      disclosures made by us in this report and other reports filed with the
      Securities and Exchange Commission that attempt to advise interested parties
      of
      the risks and factors that may affect our business.





PART
      I





Item
      1.   DESCRIPTION OF BUSINESS.





(a)   RISK
      FACTORS





You
      should carefully consider the risks and uncertainties described below; and
      all
      of the other information included in this document. Any of the following risks
      could materially adversely affect our business, financial condition or operating
      results and could negatively impact the value of your investment.





THIS
      IS A
      COMPANY WITH LIMITED OPERATING HISTORY. WE ALSO HAVE A HISTORY OF LOSSES. SUCH
      A
      COMPANY IS AN INHERENTLY RISKY INVESTMENT.





We
      were
      incorporated in May, 2005, with our activities centered in Denver, Colorado.
      For
      the year ended September 30, 2007, we had a loss of $151,601 on sales of
      $454,514. For the year ended September 30, 2006, we had a loss of $101,635
      on
      sales of $329,922. We have limited operating history upon which an evaluation
      of
      our future success or failure can be made. However, we have a history of losses.
      As a result, investment in our company is inherently risky.





BECAUSE
      WE HAD LOSSES AND HAVE A WORKING CAPITAL DEFICIT, OUR ACCOUNTANTS HAVE EXPRESSED
      DOUBTS ABOUT OUR ABILITY TO CONTINUE AS A GOING CONCERN.





For
      the period ended September 30, 2007,
      our accountants have expressed doubt about our ability to continue as a going
      concern as a result of our continued net losses. Our ability to achieve and
      maintain profitability and positive cash flow is dependent
      upon:





·
            our
                ability to locate
                clients who will purchase our catering services;
                and




·
            our
                ability to generate
                revenues.





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          3 -




Based
      upon current plans, we may incur
      operating losses in future periods because we may, from time to time, be
      incurring expenses but not generating sufficient revenues. We expect
      approximately $30,000 in operating costs per month over the next twelve months.
      We cannot guarantee that we will be successful in generating sufficient revenues
      or other funds in the future to cover these operating costs. Failure to generate
      sufficient revenues will cause us to go out of business.





OUR
      SALES
      DEPEND UPON THE NUMBER OF CUSTOMERS WE CAN GENERAGE. WE CANNOT GUARANTEE WE
      WILL
      EVER DEVELOP A SUBSTANTIAL NUMBER OF CUSTOMERS. EVEN IF WE DEVELOP A SUBSTANTIAL
      NUMBER OF CUSTOMERS, THERE IS NO ASSURANCE THAT WE WILL BECOME A PROFITABLE
      COMPANY.





To
      date,
      we have had approximately five hundred events using our catering services.
      While
      we are constantly marketing for additional customers, we cannot guarantee we
      ever achieve any additional customers. Even if we obtain additional customers
      for our services, there is no guarantee that we will make a profit. We believe
      that we need approximately nineteen events per month which average $1,800 per
      catering to break even in our operations. Our anticipated future operating
      costs
      per month is approximately $30,000 for the next twelve months. We were not
      profitable for the fiscal years ended September 30, 2006 and 2007. If we do
      not
      consistently make a profit, we may have to suspend or cease
      operations.





BECAUSE
      WE ARE  SMALL AND DO NOT HAVE MUCH CAPITAL, WE MUST LIMIT OUR
      OPERATIONS. A COMPANY IN OUR INDUSTRY WITH LIMITED OPERATIONS HAS A SMALL
      OPPORTUNITY TO BE SUCCESSFUL.





Because
      we are small and do not have much capital, we must limit our operations. We
      must
      limit our operations to the Denver, Colorado metropolitan area as the only
      geographical area in which we operate. Because we may have to limit our
      operations, we may not generate sufficient sales to make a profit. If we do
      not
      make a profit, we may have to suspend or cease operations.





WE
      ARE
      CURRENTLY CONTROLLED BY CHRISTOPHER BELL AND TRAVIS THOMPSON, OUR LARGEST
      SHAREHOLDERS AND WILL CONTINUE TO BE CONTROLLED BY MESSRS. BELL AND THOMPSON
      IN
      THE FUTURE.





Of
      the
      shares which are issued and outstanding, Mr. Bell and Mr. Thompson each own
      a
      total of 5,100,000 shares, or approximately 83% together. Messrs. Bell and
      Thompson will continue to control us for the foreseeable future. In addition,
      Mr. Bell has an option to acquire 5,000,000 shares from Mr. Thompson. The
      control by Messrs Bell and Thompson mean that they may make decisions for us
      with which you may disagree or that you may feel is not in our best
      interests.





WE
      DO NOT
      HAVE ANY ADDITIONAL SOURCE OF FUNDING OTHER THAN OUR OPERATIONS AND MAY BE
      UNABLE TO FIND ANY SUCH ADDITIONAL FUNDING IF AND WHEN NEEDED. WE WILL NEED
      ADDITIONAL FUNDING TO OPERATE OUR BUSINESS.





Other
      than the funds raised in our recent public offering, we have no other source
      of
      capital identified or sought. As a result we do not have alternate source of
      funds if such funds should be necessary. If we do find an alternative source
      of
      capital, the terms and conditions of acquiring this capital may result in
      dilution and the resultant lessening of value of the shares of present
      stockholders.





WE
      CANNOT
      PREDICT WHEN OR IF WE WILL PRODUCE SUBSTANTIAL SALES. THIS IS IMPORTANT BECAUSE
      THE ABILITY TO PRODUCE SUBSTANTIAL SALES IS AN IMPORTANT FACTOR IN OUR
      PROFITABILITY.





Currently,
      we are conducting business activities from our catering operation in Denver,
      Colorado. There can be no assurance that we will generate substantial sales
      which will be sufficient to maintain our business. As a result, you may lose
      all
      of your investment. Failure to generate sufficient sale would have a material
      adverse effect on our business, financial condition and operating results and
      have a material adverse effect on the value of
      your
      shares of our common stock.





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          4 -


OUR
      BUSINESS OPERATIONS WILL BE HIGHLY DEPENDENT UPON OUR ABILITY TO ATTRACT AND
      MAINTAIN KEY EMPLOYEES WITH EXPERIENCE IN THE CATERING BUSINESS. WE MUST BE
      ABLE
      TO ATTRACT AND RETAIN KEY PERSONNEL TO FULLY STAFF OUR OPERATIONS. WE ARE
      COMPLETELY DEPENDENT UPON MESSRS. BELL AND THOMPSON FOR OUR
      OPERATIONS.





The
      ultimate success of our business operations will be highly dependent upon our
      ability to attract and maintain key employees with experience in the catering
      business. The process of hiring employees with the combination of skills and
      attributes required to carry out our business plan is extremely competitive
      and
      time-consuming. However, to date, we have hired only five employees. Messrs.
      Bell and Thompson currently perform all of our operations. We cannot guarantee
      that we will be able to identify and/or hire qualified personnel as and when
      they are needed for our operations. The loss of the services of Messrs. Bell
      or
      Thompson or the inability to attract qualified personnel, could materially
      adversely affect our business, financial condition and results of operations.
      No
      one in our company has a written employment agreement.





THE
      CATERING INDUSTRY IS HIGHLY COMPETITIVE. IF WE ARE NOT WELL RECEIVED OR
      SUCCESSFUL, WE MAY NEVER ACHIEVE PROFITABILITY.





The
      catering industry is highly competitive with respect to price and service.
      There
      are numerous competitors, many well-established, including national, regional
      and local organizations possessing substantially greater financial, marketing,
      personnel and other resources than we do. There can be no assurance that we
      will
      be able to respond to various competitive factors affecting the catering
      industry. The catering industry is also generally affected by changes in client
      preferences, national, regional and local economic conditions and demographic
      trends. The performance of catering may also be affected by factors such as
      demographic considerations, and the type, number and location of competing
      operations. In addition, factors such as inflation, increased labor and employee
      benefit costs and a lack of availability of employees may also adversely affect
      our industry in general and our operations in particular. We cannot guarantee
      that we will be able to successfully compete.





BUYING
      LOW-PRICED PENNY STOCKS IS VERY RISKY AND SPECULATIVE.





Our
      shares are defined as a penny stock under the Securities and Exchange Act of
      1934, and rules of the Commission. The Exchange Act and such penny stock rules
      generally impose additional sales practice and disclosure requirements on
      broker-dealers who sell our securities to persons other than certain accredited
      investors who are, generally,  institutions with assets in excess of
      $5,000,000 or individuals with net worth in excess of $1,000,000 or annual
      income exceeding $200,000, or $300,000 jointly with spouse, or in transactions
      not recommended by the broker-dealer. For transactions covered by the penny
      stock rules, a broker-dealer must make a suitability determination for each
      purchaser and receive the purchaser's written agreement prior to the sale.
      In
      addition, the broker-dealer must make certain mandated disclosures in penny
      stock transactions, including the actual sale or purchase price and actual
      bid
      and offer quotations, the compensation to be received by the broker-dealer
      and
      certain associated persons, and deliver certain disclosures required by the
      Commission. Consequently, the penny stock rules may affect the ability of
      broker-dealers to make a market in or trade our common stock and may also affect
      your ability to resell any shares you own or may purchase in the public
      markets.





OUR
      COMMON STOCK CURRENTLY HAS NO TRADING MARKET AND THERE IS NO GUARANTEE A TRADING
      MARKET WILL EVER DEVELOP.





There
      is
      presently no public market for our common stock. While we do intend to apply
      for
      quotation in the Over-the-Counter Bulletin Board, we cannot guarantee that
      our
      application will be approved and our stock listed and quoted for sale. If no
      market is ever developed for our common stock, it will be difficult for you
      to
      sell any shares you purchase. In such a case, you may find that you are unable
      to achieve any benefit from your investment or liquidate your shares without
      considerable delay, if at all. In addition, if we fail to have our common stock
      quoted on a public trading market, your common stock will not have a
      quantifiable value and it may be difficult, if not impossible, to ever resell
      your shares, resulting in an inability to realize any value from your
      investment.





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          5 -




THE
      OVER-THE-COUNTER MARKET FOR STOCK SUCH AS OURS HAS HAD EXTREME PRICE AND VOLUME
      FLUCTUATIONS.





The
      securities of companies such as ours have historically experienced extreme
      price
      and volume fluctuations during certain periods. These broad market fluctuations
      and other factors, such as new product developments and trends in the our
      industry and in the investment markets generally, as well as economic conditions
      and quarterly variations in our operational results, may have a negative effect
      on the market price of our common stock.





MOST
      OF
      OUR COMMON STOCK IS RESTRICTED BUT COULD BECOME ELIGIBLE FOR RESALE UNDER RULE
      144; THIS COULD CAUSE THE MARKET PRICE OUR COMMON STOCK TO DROP SIGNIFICANTLY,
      EVEN IF OUR BUSINESS IS DOING WELL.





Of
      our
      total current outstanding shares, 11,868,333 or approximately 94% are restricted
      from immediate resale but may be sold into the market subject to volume and
      manner of sale limitations under Rule 144. This could cause the market price
      of
      our common stock to drop significantly, even if our business is doing well.
      As
      restrictions on resale end, the market price of our stock could drop
      significantly if the holders of restricted shares sell them or are perceived
      by
      the market as intending to sell them.





WE
      DO NOT
      EXPECT TO PAY DIVIDENDS ON COMMON STOCK.





We
      have
      not paid any cash dividends with respect to our common stock, and it is unlikely
      that we will pay any dividends on our common stock in the foreseeable future.
      Earnings, if any, that we may realize will be retained in the business for
      further development and expansion.





(b)   NARRATIVE
      DESCRIPTION OF THE BUSINESS





General
      Information





Kurrant
      Food Enterprises, Inc. was incorporated in the State of Colorado on May 3,
      2005.
      We develop, own, and operate a catering business in Colorado through our
      subsidiary corporation, Kurrant Cuisine Enterprises, Inc. We plan to expand
      our
      operations to other lines of business in the food industry, such as production
      of food products. However, we have no definitive plans to be involved in any
      other activities at the present time other than our catering
      business.





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          6 -


Through
      our catering business, we organize and cater a number of different events,
      from
      cocktail parties, to buffets of various kinds, to multi-course plated
      dinners.





Our
      headquarters are located at 3003 Arapahoe Street, Denver, Colorado 80205. Our
      phone number at our headquarters is (303) 300-5255. Our fiscal year end is
      September 30.





Overview
      of our
      Operations





We
      plan
      to develop our operations to appeal to two different customer segments. The
      first segment is social catering, which is composed of individuals who contract
      for private events, such as cocktail parties and buffet dinners. The other
      segment is business catering, which is composed of companies which use catering
      services primarily for breakfasts, lunches and meetings.





We
      use
      the term social catering to describe catering for individuals hosting a special
      event such as a cocktail party, holiday dinner, or private buffet. These events
      are generally held in private homes. Such customers generally seek caterers
      who
      offer high-end food products as well as service for hors d'oeuvers and related
      activities. Customers generally contract for evening or weekend events involving
      dinner or cocktail parties.





We
      use
      the term business catering to describe customers seeking food service for
      meetings and breakfast and lunch delivery, primarily in a business setting.
      These customers generally seek convenience and reliability. However, they are
      generally also attracted to gourmet quality food products which cannot be found
      in conventional take-out restaurants.





Our
      sales
      are generated for individual events. The more events we hold, the more sales
      we
      generate. Our typical sale per event for a social catering is $1,800. Our
      typical sale per event for a business catering is $400. Our plan is to attempt
      to generate as many events as possible with our current resources. We have
      seven
      full-time employees, including our two officers and directors. We do not plan
      to
      hire additional employees at this time, but we typically hire part-time help
      as
      needed on an individual event basis.





We
      believe that the catering industry is thriving industry and has been steadily
      growing for the past thirty years. The catering industry is a subset of the
      restaurant industry and has been termed the accommodation and food services
      sector. The catering industry comprises establishments primarily engaged in
      providing single event-based food services. The catering industry is
      experiencing strong growth according to the trade journal Specialty Food News,
      which states that off-premise catering is the second biggest growth sector,
      second only to home meal replacement.


According
      to the National Catering industry, the number of catering companies is currently
      approximately 46,000 to caterers nationally.





We
      plan
      to target social catering customers in select, upscale metropolitan Denver
      areas
      such as Cherry Hills Village, Cherry Creek, Castle Rock, Greenwood Village,
      and
      Washington Park. These areas have been chosen based on their proximity to us
      and
      the area's relative affluence Upper income households are most likely to host
      catering events. Furthermore, these areas typically contain homes which are
      spacious and suitable for entertaining.





We
      also
      believe that we must provide a high level of service for our customers. We
      believe that it is our responsibility to make certain that our products and
      services are satisfying for our catering customers.





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          7 -




Operations,
      Management and
      Employees





We
      believe that initially operating from one location will be central to our
      overall success. Our plan is to concentrate our operations in the Denver
      Metropolitan area. We have no plans to operate in additional
      locations.





We
      have
      five full-time employees, including our two officers and directors. As we
      expand, we intend to hire additional employees. We also use part-time
      independent help for specific events. However, we have no present plans to
      do
      so. We typically hire part-time help as needed from time-to-time for specific
      events.





While
      our
      Messrs. Bell and Thompson have had extensive catering experience, we must
      eventually recruit additional personnel. We will strive to maintain quality
      and
      consistency through the careful training and supervision of personnel and the
      establishment of, and adherence to, high standards relating to personnel
      performance, customer service, and maintenance of our facilities. We believe
      that we will be able to attract high quality, experienced personnel by paying
      competitive wages and salaries.





Marketing
      and
      Promotion





We
      plan
      to market through direct contact with prospective customers. We have no sales
      representative who solicits potential clients. However, Messrs. Bell and
      Thompson plan to use their contacts to generate the initial customers and will
      attempt to develop repeat business from catering events.





Patents
      and
      Trademarks





We
      do not
      currently have any patent or trademark protection. If we determine it is
      feasible to file for such trademark protection, we still have no assurance
      that
      doing so will prevent competitors from using the same or similar names, marks,
      concepts or appearance.





Competition





The
      catering industry, in general, is intensely competitive. It is a fragmented
      industry, with no one company, or groups of companies in control. The
      relationships are typically local and based upon providing quality service
      and
      products. Generally, we compete with a number of local caterers, all of whom
      are
      larger and better-financed than we are. We must rely upon our contacts,
      referrals from customers, and repeat business to be successful.





In
      general, we expect our primary competition to be from established, local
      caterers. We believe that our products and services are more attractive to
      our
      customers than our competitors because we can provide immediate response, with
      no long lead time. We also believe that we offer our customers flexibility
      and
      cost savings because our overhead is lower than many of our competitors.
      However, we cannot guarantee that we will be able to successfully
      compete.





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          8 -


Government
      and Industry
      Regulation





We
      are
      subject to regulation as to our food service by health authorities. We do not
      believe this regulation is material. Otherwise, we are not subject to any
      material government or industry regulation.





Employees
      and Employment
      Agreements





We
      have
      seven full-time employees, including our two officers and directors. In
      addition, they serve as our officers and directors. We reimburse them for any
      out-of-pocket expenses they incur on our behalf. In addition, in the future,
      we
      may approve additional payment of salaries for our management, but currently,
      no
      such plans have been approved. We do not currently pay for vacation, holidays
      or
      provide major medical coverage. None of our officers or directors is a party
      to
      any employment agreement. However, we may adopt such plans in the future. We
      also  use part-time help for specific events.





How
      to Obtain our SEC
      Filings





We
      file
      annual, quarterly, and special reports, proxy statements, and other information
      with the Securities Exchange Commission (SEC). Reports, proxy statements and
      other information filed with the SEC can be inspected and copied at the public
      reference facilities of the SEC at 100 F Street N.E., Washington, DC 20549.
      Such
      material may also be accessed electronically by means of the SEC's website
      at
      www.sec.gov.





Our
      investor relations department can be contacted at our principal executive office
      located at our principal office 3003 Arapahoe Street, Denver, Colorado 80205.
      Our phone number at our headquarters is (303) 300-5255. We have a website at
      www.kurrantcatering.com.





Subsequent
      Event





In
      October, 2007, we organized a wholly-owned subsidiary known as Kurrant Mobile
      Catering, Inc. On November 30, 2007, our directors approved, subject to the
      effectiveness of a registration with the Securities and Exchange Commission,
      a
      spin-off to KTRF shareholders of record as of December 31, 2007, on a pro rata
      basis, with one share each of Kurrant Mobile Catering, Inc. to be issued for
      each ten shares issued and outstanding of common stock owned by our shareholders
      as of such date. Since our business is related to the proposed activities of
      Mobile Catering, Inc., our directors decided it was in our best interest to
      spin-off Mobile Catering, Inc. to minimize any potential of conflict of
      interest. All shares of Mobile Catering, Inc. are currently owned by us. We
      will distribute the Mobile Catering shares once the Form SB-2 which we filed
      is
      effective with the Securities and Exchange Commission.





ITEM
      2. DESCRIPTION OF PROPERTY.





We
      currently own a van and a delivery truck, as well as office equipment. We have
      entered into a lease agreement with an unaffiliated third party for kitchen
      space, which is located at 3003 Arapahoe Street, Denver, Colorado 80205. This
      is
      a month-to-month lease. We pay a cost of $3,000 per month, plus possible
      additional costs, based upon the usage. We also lease space for our office
      3003
      Arapahoe Street, Denver, Colorado 80205. We make monthly payments of $625 per
      month a two year lease which expires in March 2009 and can renew at the
      landlord’s discretion. All leased space is from an unaffiliated third
      party.





ITEM
      3. LEGAL PROCEEDINGS.





No
      legal
      proceedings to which we are a party were pending during the reporting period.
      We
      know of no legal proceedings of a material nature pending or threatened or
      judgments entered against any of our directors or officers in their capacity
      as
      such.





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          9 -





ITEM
      4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.





We
      held
      no shareholders meeting in the fourth quarter of our fiscal year.





PART
      II





ITEM
      5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS.








(a)   PRINCIPAL
      MARKET OR MARKET







Our
      common stock has traded on the NASD Over-the-Counter Bulletin Board since
      August, 2007. Currently, our common stock trades under the symbol KRTF. The
      high
      and low bid quotation for the Company’s common stock for the fourth quarter
      period in 2007 was $0.35 and $0.22.







(b)   APPROXIMATE
      NUMBER OF HOLDERS OF COMMON STOCK





As
      of
      November 30, 2007, a total of 12,667,533 shares of our Common Stock were
      outstanding and the number of holders of record of our common stock at that
      date
      was one hundred.





(c)   DIVIDENDS





Holders
      of common stock are entitled to receive such dividends as may be declared by
      our
      Board of Directors. No dividends on the common stock were paid by us during
      the
      periods reported herein nor do we anticipate paying dividends in the foreseeable
      future.





(d)   THE
      SECURITIES ENFORCEMENT AND PENNY STOCK REFORM ACT OF 1990





The
      Securities Enforcement and Penny Stock Reform Act of 1990 requires additional
      disclosure and documentation related to the market for penny stock and for
      trades in any stock defined as a penny stock. Unless we can acquire substantial
      assets and trade at over $5.00 per share on the bid, it is more likely than
      not
      that our securities, for some period of time, would be defined under that Act
      as
      a "penny stock." As a result, those who trade in our securities may be required
      to provide additional information related to their fitness to trade our shares.
      These requirements present a substantial burden on any person or brokerage
      firm
      who plans to trade our securities and would thereby make it unlikely that any
      liquid trading market would ever result in our securities while the provisions
      of this Act might be applicable to those securities.





Any
      broker-dealer engaged by the purchaser for the purpose of selling his or her
      shares in us will be subject to Rules 15g-1 through 15g-10 of the Securities
      and
      Exchange Act. Rather than creating a need to comply with those rules, some
      broker-dealers will refuse to attempt to sell penny stock.





The
      penny
      stock rules require a broker-dealer, prior to a transaction in a penny stock
      not
      otherwise exempt from those rules, to deliver a standardized risk disclosure
      document prepared by the Commission, which:





-
            contains
                a description of the nature and level of risk in the market for penny
                stocks in both public offerings and secondary trading;





-
            contains
                a description of the broker's or dealer's duties to the customer
                and of
                the rights and remedies available to the customer with respect to
                a
                violation to such duties or other requirements of the Securities
                Act of
                1934, as amended;





-
          10 -




-
            contains
                a brief, clear, narrative description of a dealer market, including
                "bid"
                and "ask" prices for penny stocks and the significance of the spread
                between the bid and ask price;





-
            contains
                a toll-free telephone number for inquiries on disciplinary actions;





-
            defines
                significant terms in the disclosure document or in the conduct of
                trading
                penny stocks; and





-
            contains
                such other information and is in such form (including language, type,
                size
                and format) as the Securities and Exchange Commission shall require
                by
                rule or regulation;





The
      broker-dealer also must provide, prior to effecting any transaction in a penny
      stock, to the customer:





-
            the
                bid and offer quotations for the penny stock;





-
            the
                compensation of the broker-dealer and its salesperson in the transaction;





-
            the
                number of shares to which such bid and ask prices apply, or other
                comparable information relating to the depth and liquidity of the
                market
                for such stock; and





-
            monthly
                account statements showing the market value of each penny stock held
                in
                the customer's account.





In
      addition, the penny stock rules require that prior to a transaction in a penny
      stock not otherwise exempt from those rules; the broker-dealer must make a
      special written determination that the penny stock is a suitable investment
      for
      the purchaser and receive the purchaser's written acknowledgment of the receipt
      of a risk disclosure statement, a written agreement to transactions involving
      penny stocks, and a signed and dated copy of a written suitability statement.
      These disclosure requirements will have the effect of reducing the trading
      activity in the secondary market for our stock because it will be subject to
      these penny stock rules. Therefore, stockholders may have difficulty selling
      their securities.





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





The
      following discussion contains forward-looking statements regarding us, our
      business, prospects and results of operations that are subject to certain risks
      and uncertainties posed by many factors and events that could cause our actual
      business, prospects and results of operations to differ materially from those
      that may be anticipated by such forward-looking statements. Factors that may
      affect such forward-looking statements include, without limitation: our ability
      to successfully develop new products and services for new markets; the impact
      of
      competition on our revenues, changes in law or regulatory requirements that
      adversely affect or preclude clients from using us for certain applications;
      delays our introduction of new products or services; and our failure to keep
      pace with our competitors.





When
      used
      in this discussion, words such as "believes", "anticipates", "expects",
      "intends" and similar expressions are intended to identify forward-looking
      statements, but are not the exclusive means of identifying forward-looking
      statements. Readers are cautioned not to place undue reliance on these
      forward-looking statements, which speak only as of the date of this report.
      We
      undertake no obligation to revise any forward-looking statements in order to
      reflect events or circumstances that may subsequently arise. Readers are urged
      to carefully review and consider the various disclosures made by us in this
      report and other reports filed with the Securities and Exchange Commission
      that
      attempt to advise interested parties of the risks and factors that may affect
      our business.





-
          11 -




Results
      of
      Operations





Our
      accountants have expressed doubt
      about our ability to continue as a going concern as a result of our history
      of
      net loss. Our ability to achieve and maintain profitability and positive cash
      flow is dependent upon our ability to successfully develop acatering businessand
      our ability to generate
      revenues.





We
      began
      our operations in May, 2005. For the fiscal year ended September 30, 2007,
      we
      had sales of $454,514 compared to sales of $329,922 for year ended September
      30,
      2006.





Costs
      of
      goods include all direct costs incurred in providing services. Direct costs
      consist of food, beverages, and catering supplies. Our costs of goods for the
      fiscal year ended September 30, 2007 was $252,046 or approximately 55.5 % of
      sales. Our costs of goods for the fiscal year ended September 30, 2006 was
      $192,505, or approximately 58% of sales.





The
      difference between total sales and costs of goods is gross profit. Our gross
      profit for the fiscal year ended September 30, 2007 was $202,468, or
      approximately 44.5% of sales. Our gross profit for the fiscal year ended
      September 30, 2006 was $137,417, or approximately 42% of sales. Increasing
      sales
      have slightly lowered our cost of goods as a percentage of sales and increase
      our gross profit.





The
      major
      components of operating expenses include salaries and associated payroll costs,
      professional fees, rent and telephone expenses.





Operating
      expenses, which includes depreciation and general and administrative expenses
      for the fiscal year ended September 30, 2007 were $348,510. Operating Expenses
      for the fiscal year ended September 30, 2006 was $237,908. Our general and
      administrative expenses were the single largest item of our operating expenses.
      The major components of these general and administrative expenses were salaries
      and associated payroll costs and professional fees. We completed a public
      offering in 2006 in incurred significant legal and accounting fees. In 2007,
      the
      major component of these general and administrative expenses were salaries
      and
      associated payroll costs .While our general and administrative expenses will
      continue to be our largest expense item, we believe that this expense will
      stabilize in the coming fiscal year but will remain largely composed of salaries
      and associated payroll costs.





We
      had a
      net loss of $151,601 for the fiscal year ended September 30, 2007, compared
      to a
      net loss of $101,635 for the fiscal year ended September 30, 2006. We have
      had
      two years of losses and our losses may continue into the future.





We
      believe that overhead cost in current operations should remain fairly constant
      as sales improve. Each additional sale and correspondingly the gross profit
      of
      such sale have minimal offsetting overhead cost. If our sales continue to grow
      at the same pace as last fiscal year, we could be profitable by September 30,
      2008.


In
      October, 2007, we organized a wholly-owned subsidiary known as Kurrant Mobile
      Catering, Inc. On November 30, 2007, our directors approved, subject to the
      effectiveness of a registration with the Securities and Exchange Commission,
      a
      spin-off to KTRF shareholders of record as of December 31, 2007, on a pro rata
      basis, with one share each of Kurrant Mobile Catering, Inc. to be issued for
      each ten shares issued and outstanding of common stock owned by our shareholders
      as of such date. Since our business is related to the proposed activities of
      Mobile Catering, Inc., our directors decided it was in our best interest to
      spin-off Mobile Catering, Inc. to minimize any potential of conflict of
      interest. All shares of Mobile Catering, Inc. are currently owned by us. We
      will distribute the Mobile Catering shares once the Form SB-2 which we filed
      is
      effective with the Securities and Exchange Commission.





Liquidity
      and Capital
      Resources





As
      of
      September 30, 2007, we had cash or cash equivalents of $9,530, compared to
      cash
      or cash equivalents of $122,729 at September 30, 2006.





Net
      cash
      used in operating activities was $115,811 for the fiscal year ended September
      30, 2007, compared to $81,453 for the fiscal year ended September 30, 2006.
      We
      anticipate that overhead costs in current operations will remain fairly constant
      as sales improve.





-
          12 -




Cash
      flows used in investing activities were $25,805 for the fiscal year ended
      September 30, 2007, compared to $4,935 for the fiscal year ended September
      30,
      2006. These activities represent the purchase of equipment for our
      operations.





Cash
      flows from financing activities were $28,417 for the fiscal year ended September
      30, 2007, compared to $178,232 for the fiscal year ended September 30, 2006.
      The
      cash flows in 2007 were principally related to borrowings to finance our
      operations. The cash flows in 2006 were principally related to sales of stock
      in
      our recent public offering.





Over
      the
      next twelve months our capital costs will be approximately $10,000 to $12,000
      primarily to expand our current operations. We plan to buy additional equipment
      to be used in our operations.





We
      believe that our recent public offering will provide sufficient capital in
      the
      short term for our current level of operations, which includes becoming
      profitable. Additional resources will be needed to expand into additional
      locations.





Otherwise,
      we do not anticipate needing to raise additional capital resources in the next
      twelve months.





Until
      the
      current operations become cash flow positive, our officers and directors will
      fund the operations to continue the business. At this time we have no other
      resources on which to get cash if needed without their assistance.





Our
      principle source of liquidity is our operations. Our variation in sales is
      based
      upon the level of our catering event activity and will account for the
      difference between a profit and a loss. Also business activity is closely tied
      to the economy of Denver and the U.S. economy. A slow down in entertaining
      activity will have a negative impact to our business. In any case, we try to
      operate with minimal overhead. Our primary activity will be to seek to expand
      the number of catering events and, consequently, our sales. If we succeed in
      expanding our customer base and generating sufficient sales, we will become
      profitable. We cannot guarantee that this will ever occur. Our plan is to build
      our Company in any manner which will be successful.





Plan
      of
      Operation





We
      will
      attempt to operate for the coming fiscal year at a profit or at break
      even.





Currently,
      we are conducting business in only one location in the Denver Metropolitan
      area.
      We have no plans to expand into other locations or areas. We believe that we
      can
      achieve profitability as we are presently organized with sufficient catering
      business.





If
      we are
      not successful in our operations we will be faced with several
      options:





1.
            Cease
                operations and go out of business;





2.
            Continue
                to seek alternative and acceptable sources of capital;





3.
            Bring
                in additional capital that may result in a change of control; or





4.
            Identify
                a candidate for acquisition that seeks access to the public marketplace
                and its financing sources.





Currently,
      we have sufficient capital to implement our proposed business operations or
      to
      sustain them for the next twelve months. If we can become profitable, we could
      operate at our present level indefinitely.





-
          13 -




To
      date,
      we have never had any discussions with any possible acquisition candidate nor
      have we any intention of doing so.





Proposed
      Milestones to
      Implement Business Operations





At
      the
      present time, we are operating from one location in the Denver Metropolitan
      area. Our plan is to operation profitable. We estimate that we must generate
      at
      least $50,000 in sales per month to be profitable. We generated approximately
      $38,000 in sales per month for the fiscal year ended September 30, 2007.We
      generated approximately $27,500 in sales per month for the fiscal year ended
      September 30, 2006.





We
      believe that we can be profitable or at break even by the end of our next fiscal
      year, assuming sufficient sales.





We
      do not
      anticipate the need to raise additional capital resources in the next twelve
      months unless we are more successful than we have anticipated, and we determine
      to expand further go into other cities in this period. In such a case, we expect
      the source of such funding to be generated internally or and through another
      offering.





No
      commitments to provide additional funds have been made by management or current
      shareholders. There is no assurance that additional funds will be made available
      to us on terms that will be acceptable, or at all, if and when needed. We expect
      to continue to generate and increase sales, but there can be no assurance we
      will generate sales sufficient to continue operations or to expand.





We
      also
      are planning to rely on the possibility of referrals from customers and will
      strive to satisfy our customers. We believe that referrals will be an effective
      form of advertising because of the quality of service that we bring to
      customers. We believe that satisfied customers will bring more and repeat
      customers.





In
      the
      next 12 months, we do not intend to spend any substantial funds on research
      and
      development and do not intend to purchase any large equipment.





Recently
      Issued Accounting
      Pronouncements





We
      do not
      expect the adoption of any recently issued accounting pronouncements to have
      a
      significant impact on our net results of operations, financial position, or
      cash
      flows.





Seasonality





We
      have
      found that our sales are impacted by seasonal demands for our services, with
      greater sales coming at the end of the calendar year and around major
      holidays.





-
          14 -


Critical
      Accounting
      Policies





The
      preparation of consolidated financial statements in conformity with accounting
      principles generally accepted in the United States of America requires us to
      make a number of estimates and assumptions that affect the reported amounts
      of
      assets and liabilities and disclosure of contingent assets and liabilities
      at
      the date of the financial statements. Such estimates and assumptions affect
      the
      reported amounts of revenues and expenses during the reporting period. On an
      ongoing basis, we evaluate estimates and assumptions based upon historical
      experience and various other factors and circumstances. We believe our estimates
      and assumptions are reasonable in the circumstances; however, actual results
      may
      differ from these estimates under different future conditions.





We
      believe that the estimates and assumptions that are most important to the
      portrayal of our financial condition and results of operations, in that they
      require subjective or complex judgments, form the basis for the accounting
      policies deemed to be most critical to us. These relate to bad debts, impairment
      of intangible assets and long lived assets, contractual adjustments to revenue,
      and contingencies and litigation. We believe estimates and assumptions related
      to these critical accounting policies are appropriate under the circumstances;
      however, should future events or occurrences result in unanticipated
      consequences, there could be a material impact on our future financial
      conditions or results of operations.








ITEM
      7. FINANCIAL STATEMENTS.







-
            15 -














KURRANT
      FOOD ENTERPRISES, INC.





CONSOLIDATED
      FINANCIAL STATEMENTS





September
      30, 2006


&
      September 30, 2007

















-
            16 -




Kurrant
      Food Enterprises, Inc.


Consolidated
      Financial Statements








TABLE
      OF CONTENTS





PageREPORT
                  OF INDEPENDENT REGISTEREDPUBLIC
                  ACCOUNTING FIRM
              F-1CONSOLIDATED
                  FINANCIAL STATEMENTSConsolidated
                  balance
                  sheet
              F-2Consolidated
                  statements of
                  operation
              F-3Consolidated
                  statements of
                  stockholders' equity
              F-4Consolidated
                  statements of cash
                  flows
              F-5Notes
                  to consolidated financial
                  statements
              F-7






-
            17 -





RONALD
      R.
      CHADWICK, P.C.


Certified
      Public Accountant


2851
      South Parker Road, Suite 720


Aurora,
      Colorado  80014


Telephone
      (303)306-1967


Fax
      (303)306-1944











REPORT
      OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM








Board
      of
      Directors


Kurrant
      Food Enterprises, Inc.


Denver,
      Colorado





I
      have
      audited the accompanying consolidated balance sheet of Kurrant Food Enterprises,
      Inc. as of September 30, 2007, and the related consolidated statements of
      operations, stockholders' equity and cash flows for the years ended September
      30, 2006 and 2007. These financial statements are the responsibility of the
      Company's management. My responsibility is to express an opinion on these
      financial statements based on my audit.





I
      conducted my audit in accordance with the standards of the Public Company
      Accounting Oversight Board (United States). Those standards require that I
      plan
      and perform the audit to obtain reasonable assurance about whether the financial
      statements are free of material misstatement. An audit includes examining,
      on a
      test basis, evidence supporting the amounts and disclosures in the financial
      statements. An audit also includes assessing the accounting principles used
      and
      significant estimates made by management, as well as evaluating the overall
      financial statement presentation.  I believe that my audit provides a
      reasonable basis for my opinion.





In
      my
      opinion, the consolidated financial statements referred to above present fairly,
      in all material respects, the consolidated financial position of Kurrant Food
      Enterprises, Inc. as of September 30, 2007, and the related consolidated
      statements of operations, stockholders' equity and cash flows for the years
      ended September 30, 2006 and 2007 in conformity with accounting principles
      generally accepted in the United States of America.





The
      accompanying financial statements have been prepared assuming that the Company
      will continue as a going concern. As discussed in Note 6 to the financial
      statements the Company has incurred losses and has a working capital deficit
      that raise substantial doubt about its ability to continue as a going concern.
      Management's plans in regard to these matters are also described in Note 6.
      The
      financial statements do not include any adjustments that might result from
      the
      outcome of this uncertainty.





Aurora,
      Colorado       /s/Ronald
      R.
      Chadwick, P.C.


December
      5,
      2007                                               RONALD R. CHADWICK,
      P.C.







F
            - 1




KURRANT
        FOOD ENTERPRISES, INC.


CONSOLIDATED
        BALANCE SHEET





Sept.
                  30, 2007ASSETSCurrent
                  assetsCash
              
              $
              9,530Accrued
                  receivables
              
              
              40,375Total
                  current
                  assets
              
              
              49,905Inventory
              
              
              6,323Fixed
                  assets
              
              
              56,490Accumulated
                  depreciation
              
              
              (19,096
              )Prepaid
                  expenses
              
              
              10,873Other
                  assets
              
              
              2,10056,690Total
                  Assets
              
              $
              106,595LIABILITIES
                  &STOCKHOLDERS'
                  EQUITYCurrent
                  liabilitiesAccrued
                  payables
              
              $
              84,539Notes
                  payable - current - related party
              
              
              11,606Notes
                  payable - current
              
              
              2,657Total
                  current
                  liabilities
              
              
              98,802Notes
                  payable - related party
              
              
              15,230Notes
                  payable
              
              
              13,95829,188Total
                  Liabilities
              
              
              127,990Stockholders'
                  EquityPreferred
                  stock, $.10 par value;1,000,000
                  shares authorized;no shares issued and outstandingCommon
                  stock, $.001 par value;50,000,000
                  shares authorized;12,667,533 shares issued and outstanding
              
              
              12,667Additional
                  paid in capital
              
              
              249,771Accumulated
                  deficit
              
              
              (283,833
              )Total
                  Stockholders' Equity
              
              
              (21,395
              )Total
                  Liabilities and Stockholders' Equity
              
              $
              106,595




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





F
            - 2


KURRANT
        FOOD ENTERPRISES, INC.
 CONSOLIDATED
        STATEMENTS OF OPERATIONS





Year
                Ended
            
            
            Year
                EndedSept.
                30, 2006
            
            
            Sept.
                30, 2007Sales
            
            $
            329,922
            
            
            $
            454,514Cost
                of goods sold
            
            
            192,505
            
            
            
            252,046Gross
                profit
            
            
            137,417
            
            
            
            202,468Operating
                expenses:Depreciation
            
            
            5,171
            
            
            
            11,907General
                and administrative
            
            
            232,737
            
            
            
            336,603237,908
            
            
            
            348,510Gain
                (loss) from operations
            
            
            (100,491
            )
            
            
            (146,042
            )Other
                income (expense):Interest
                income
            
            
            
            
            
            
            11Interest
                expense
            
            
            (1,144
            )
            
            
            (5,570
            )(1,144
            )
            
            
            (5,559
            )Income
                (loss) beforeprovision
                for income taxes
            
            
            (101,635
            )
            
            
            (151,601
            )Provision
                for income tax
            
            
            -
            
            
            
            -Net
                income (loss)
            
            $
            (101,635
            )
            
            $
            (151,601
            )Net
                income (loss) per share(Basic
                and fully diluted)
            
            $
            (0.01
            )
            
            $
            (0.01
            )Weighted
                average number ofcommon
                shares outstanding
            
            
            12,534,333
            
            
            
            12,534,333




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





F
            - 3


KURRANT
        FOOD ENTERPRISES, INC.
 CONSOLIDATED
        STATEMENTS OF STOCKHOLDERS' EQUITY





Common
                Stock
            
            
            
            
            
            
            
            
            Stock-Par
                $.001
            
            
            Paid
                In
            
            
            Accumulated
            
            
            holders'Shares
            
            
            Amount
            
            
            Capital
            
            
            Deficit
            
            
            EquityBalances
                at September 30, 2005
            
            
            11,868,333
            
            
            $
            11,868
            
            
            $
            97,572
            
            
            $
            (30,597
            )
            
            $
            78,843Sales
                of commmon stock
            
            
            799,200
            
            
            
            799
            
            
            
            152,199
            
            
            
            
            
            
            
            152,998Gain
                (loss) for the period
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            (101,635
            )
            
            
            (101,635
            )Balances
                at September 30, 2006
            
            
            12,667,533
            
            
            $
            12,667
            
            
            $
            249,771
            
            
            $
            (132,232
            )
            
            $
            130,206Gain
                (loss) for the period
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            (151,601
            )
            
            
            (151,601
            )Balances
                at September 30, 2007
            
            
            12,667,533
            
            
            $
            12,667
            
            
            $
            249,771
            
            
            $
            (283,833
            )
            
            $
            (21,395
            )





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





F
            - 4


KURRANT
        FOOD ENTERPRISES, INC.
 CONSOLIDATED
        STATEMENTS OF CASH FLOWS





Year
                Ended
            
            
            Year
                EndedSept.
                30, 2006
            
            
            Sept.
                30, 2007Cash
                Flows From Operating Activities:Net
                income (loss)
            
            $
            (101,635
            )
            
            $
            (151,601
            )Adjustments
                to reconcile net loss tonet
                cash provided by (used for)operating
                activities:Depreciation
            
            
            5,172
            
            
            
            11,907Accrued
                receivables
            
            
            (13,123
            )
            
            
            (10,022
            )Other
                assets
            
            
            (356
            )Prepaid
                expenses
            
            
            
            
            
            
            (10,873
            )Accrued
                payables
            
            
            36,764
            
            
            
            45,525Related
                party payables
            
            
            (2,699
            )Inventory
            
            
            (5,576
            )
            
            
            (747
            )Donated
                office spaceCompensatory
                stock issuancesNet
                cash provided by (used
                for)operating
                activities
            
            
            (81,453
            )
            
            
            (115,811
            )Cash
                Flows From Investing Activities:Fixed
                assets
            
            
            (4,935
            )
            
            
            (25,805
            )Net
                cash provided by (used for)investing
                activities
            
            
            (4,935
            )
            
            
            (25,805
            )(Continued
                On Following Page)





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





F
            - 5





KURRANT
        FOOD ENTERPRISES, INC.
 CONSOLIDATED
        STATEMENTS OF CASH FLOWS


(Continued
        From Previous Page)


Year
                Ended
            
            
            Year
                EndedSept.
                30, 2006
            
            
            Sept.
                30, 2007Cash
                Flows From Financing Activities:Sales
                of common stock
            
            
            162,998Paid
                in capitalStock
                subscription payable
            
            
            200Notes
                payable - borrowings
            
            
            18,000
            
            
            
            70,412Notes
                payable - payments
            
            
            (2,966
            )
            
            
            (41,995
            )Net
                cash provided by (used
                for)financing
                activities
            
            
            178,232
            
            
            
            28,417Net
                Increase (Decrease) In Cash
            
            
            91,844
            
            
            
            (113,199
            )Cash
                At The Beginning Of The Period
            
            
            30,885
            
            
            
            122,729Cash
                At The End Of The Period
            
            $
            122,729
            
            
            $
            9,530Schedule
                Of Non-Cash
                Investing And Financing ActivitiesNoneSupplemental
                DisclosureCash
                paid for interest
            
            $
            1,144
            
            
            $
            4,624Cash
                paid for income taxes
            
            $
            -
            
            
            $
            -





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





F
            - 6





KURRANT
      FOOD ENTERPRISES, INC.


NOTES
      TO CONSOLIDATEDFINANCIAL
      STATEMENTS





NOTE
      1. ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING
      POLICIES:





Kurrant
      Food Enterprises, Inc. (the “Company”), was incorporated in the State of
      Colorado on May 3, 2005. The Company was formed to act as a holding corporation
      for its wholly owned subsidiary Kurrant Cuisine Enterprises, Inc., a Colorado
      corporation actively engaged in the food catering business. The Company may
      also
      engage in any other business permitted by law, as designated by the Board of
      Directors of the Company. Kurrant Cuisine Enterprises, Inc. was incorporated
      in
      the State of Colorado on May 5, 2005.





Principles
      of
      consolidation





The
      accompanying consolidated financial statements include the accounts of Kurrant
      Food Enterprises, Inc. and its wholly owned subsidiary. All intercompany
      accounts and transactions have been eliminated in consolidation.





Cash
      and cash
      equivalents





The
      Company considers all highly liquid investments with an original maturity of
      three months or less as cash equivalents.





Accounts
      receivable





The
      Company reviews accounts receivable periodically for collectability and
      establishes an allowance for doubtful accounts and records bad debt expense
      when
      deemed necessary. At September 30, 2006 and 2007 the Company had no balance
      in
      its allowance for doubtful accounts.





Property
      and
      equipment





Property
      and equipment are recorded at cost and depreciated under accelerated methods
      over each item's estimated useful life, which is five years for vehicles,
      computers and other items.





Revenue
      recognition





Revenue
      is recognized on an accrual basis after services have been performed under
      contract terms, the event price to the client is fixed or determinable, and
      collectibility is reasonably assured. Standard contract policy calls for partial
      payment up front with balance due upon receipt of final billing.





Use
      of
      Estimates





The
      preparation of financial statements in conformity with generally accepted
      accounting principles requires management to make estimates and assumptions
      that
      affect reported amounts of assets and liabilities and disclosure of contingent
      assets and liabilities at the date of the financial statements and the reported
      amounts of revenues and expenses during the reporting period. Actual results
      could differ from those estimates.





F
            - 7








KURRANT
      FOOD ENTERPRISES, INC.


NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS








NOTE
      1. ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
      (Continued):





Income
      tax





The
      Company accounts for income taxes under Statement of Financial Accounting
      Standards No. 109 (“SFAS 109”). Under SFAS 109 deferred taxes are provided on a
      liability method whereby deferred tax assets are recognized for deductible
      temporary differences and operating loss carryforwards and deferred tax
      liabilities are recognized for taxable temporary differences. Temporary
      differences are the differences between the reported amounts of assets and
      liabilities and their tax bases. Deferred tax assets are reduced by a valuation
      allowance when, in the opinion of management, it is more likely than not that
      some portion or all of the deferred tax assets will not be realized. Deferred
      tax assets and liabilities are adjusted for the effects of changes in tax laws
      and rates on the date of enactment.





Net
      income (loss) per
      share





The
      net
      income (loss) per share is computed by dividing the net income (loss) by the
      weighted average number of shares of common outstanding. Warrants, stock
      options, and common stock issuable upon the conversion of the Company's
      preferred stock (if any), are not included in the computation if the effect
      would be anti-dilutive and would increase the earnings or decrease loss per
      share.





Financial
      Instruments





The
      carrying value of the Company’s financial instruments, including cash and cash
      equivalents and accrued payables, as reported in the accompanying balance sheet,
      approximates fair value.








NOTE
      2. FIXED ASSETS





Fixed
      asset values recorded at cost are as follows:




Sept.
                  30,
              
              
              Sept.
                  302006
              
              
              2007Vehicles
              
              $
              22,573
              
              
              $
              46,149Furniture
                  & fixtures
              
              
              1,484
              
              
              
              1,486Computers
              
              
              6,211
              
              
              
              8,438Other
              
              
              417
              
              
              
              41730,685
              
              
              
              56,490Less
                  accumulated depreciation
              
              
              (7,189
              )
              
              
              (19,096
              )Total
              
              $
              23,496
              
              
              $
              37,394




F
            - 8








KURRANT
      FOOD ENTERPRISES, INC.


NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS








NOTE
      3. LEASE COMMITMENT





The
      Company rents kitchen space under a month to month lease, with rent expense
      depending on time used. The Company incurred rent expense under this lease
      in
      2006 and 2007 of $27,290 and $29,450. The Company leases office space under
      a
      two year lease which expires in March 2009. The lease calls for monthly payments
      of $540 to $577 per month plus costs, and is renewable at the landlord's
      discretion. Future payments due in 2008 and 2009 for the office lease are
      approximately $6,700 and $3,500 ($10,200 total). The Company recorded rent
      expense of $3,749 and $6,248 in 2006 and 2007 from the office
      lease.





NOTE
      4. NOTES PAYABLE





At
      September 30, 2006 the Company had a $13,564 note payable outstanding to a
      bank,
      collateralized by Company equipment, bearing interest at 8% per annum, due
      in
      November 2010, with principal and interest payments of $321 per month. The
      Company also had $1,470 due to a bank under a variable interest, revolving
      line
      of credit agreement. Interest expense from notes payable was $1,144 in 2006.
      Both these notes were retired in 2007. At September 30, 2007 the Company had
      a
      $16,615 note payable outstanding to a finance company, collateralized by Company
      equipment, guaranteed by a Company officer, bearing interest at 8.9% per annum,
      due in November 2012, with principal and interest payments of $335 per month.
      The Company also had a $26,836 note payable outstanding to an officer,
      unsecured, bearing interest at 6.5% per annum, due in July 2009, with interest
      only payments of $145 per month scheduled through January 2008, then principal
      and interest payments of $1,569 scheduled through July 2009 plus any remainder
      due. Interest expense from notes payable was $5,570 in 2007. The fair value
      of
      the notes payable is estimated based on the current rates offered to the Company
      for debt of the same remaining maturities. At September 30, 2006 and 2007 the
      fair value of the notes payable approximates the amount recorded in the
      financial statements. Future amounts due under all notes payable are for fiscal
      years ending on September 30:  2008 $14,263, 2009 $18,133, 2010
      $3,172, 2011 $3,466, 2012 $3,788 and thereafter $629 (total
      $43,451).







F
            - 9








KURRANT
      FOOD ENTERPRISES, INC.


NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS





NOTE
      5. INCOME TAXES





Deferred
      income taxes arise from the temporary differences between financial statement
      and income tax recognition of net operating losses and other items. Loss
      carryovers are limited under the Internal Revenue Code should a significant
      change in ownership occur.





The
      Company accounts for income taxes pursuant to SFAS 109. The components of the
      Company’s deferred tax assets and liabilities are as follows:


September
                  30,
              
              
              September
                  30,2006
              
              
              2007Deferred
                  tax liability
              
              $
              -
              
              
              $
              -Deferred
                  tax asset arising from:Net
                  operating loss
                  carryforwards
              
              
              25,844
              
              
              
              55,53325,844
              
              
              
              55,533Valuation
                  allowance
              
              
              (25,844
              )
              
              
              (55,533
              )Net
                  Deferred Taxes
              
              $
              -
              
              
              $
              -
 
 Income
        taxes at Federal and state statutory rates are reconciled to the Company’s
        actual income taxes as follows:
  September
                  30,
              
              
              September
                  30,2006
              
              
              2007Tax
                  at federal statutory rate (15%)
              
              $
              (15,245
              )
              
              $
              (22,740
              )State
                  income tax (5%)
              
              
              (5,082
              )
              
              
              (7,580
              )Book
                  to tax differences
              
              
              341
              
              
              
              631Change
                  in valuation allowance
              
              
              19,986
              
              
              
              29,689$
              -
              
              
              $
              -







NOTE
      6.  GOING CONCERN





The
      Company has suffered recurring losses from operations and has a working capital
      deficit. These conditions raise substantial doubt about the Company’s ability to
      continue as a going concern. The Company may raise additional capital through
      the sale of its equity securities, through an offering of debt securities,
      or
      through borrowings from financial institutions. By doing so, the Company hopes
      through increased marketing efforts to generate greater revenues. Management
      believes that actions presently being taken to obtain additional funding provide
      the opportunity for the Company to continue as a going concern.




F
            - 10




ITEM
      8. DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
      DISCLOSURE.





We
      did
      not have any disagreements on accounting and financial disclosures with its
      present accounting firm during the reporting period.





ITEM
      8A. CONTROLS AND PROCEDURES.





Evaluation
      of Disclosure Controls and Procedures





As
      of the
      end of the period covered by this annual report on Form 10-KSB, we evaluated
      the
      effectiveness of the design and operation of its disclosure controls and
      procedures (as defined in the Securities Exchange Act of 1934 Rules 13a-15(e)
      and 15d-15(e)). That evaluation was performed under the supervision and with
      the
      participation of our management, including our Chief Executive Officer and
      Chief
      Financial Officer. Based on that evaluation, our Chief Financial Officer
      concluded that our disclosure controls and procedures are effective in timely
      alerting him to material information required to be included in its periodic
      SEC
      filings.





Changes
      in Internal Control
      over Financial Reporting





We
      have
      made no significant change in our internal control over financial reporting
      during the most recent fiscal quarter covered by this annual report on Form
      10-KSB that has materially affected, or is reasonably likely to materially
      affect, our internal control over financial reporting.





ITEM
      8B. OTHER INFORMATION.





Nothing
      to report.





PART
      III





ITEM
      9. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS, AND CONTROL PERSONS; COMPLIANCE
      WITH SECTION 16(a) OF THE EXCHANGE ACT.





Our
      Directors and Executive Officers, their ages and positions held with us as
      of
      November 30, 2007 are as follows:




NAME
            AGE
            POSITION
                HELDChristopher
                Bell
            31
            President,
                Chief Executive3003
                Arapahoe Street
            
            Officer,
                Treasurer, andDenver,
                Colorado  80205
            
            Chief
                Financial OfficerTravis
                Thompson
            30
            Secretary3003
                Arapahoe StreetDenver,
                Colorado  80205





The
      persons named above are expected to hold said offices/positions until the next
      annual meeting of our stockholders. These officers and directors are our only
      officers, directors, promoters and control persons. Neither can be considered
      to
      be independent directors.





-
          17 -


Background
      Information about
      Our Officers and Directors





Christopher
      Bell has been the President, Chief Executive Officer, Treasurer, Chief Financial
      Officer and a Director of our company since inception in May, 2005. In college,
      he worked for two years at Strater Hotel in Durango, Colorado, from 1997 to
      1999. From 1999 to 2001, he was a Sous Chef at E.O.'s Chop House in Durango,
      CO.
      (a 4 star rated restaurant). From 2002 to 2005, he worked for Footers Catering,
      a catering company in Denver, Colorado as the Executive Chef until co-founding
      our company. Mr. Bell received a B.A. in Business Administration and Tourism
      and
      Resort Management at Fort Lewis College in Durango, CO. He will devote a minimum
      of forty hours per week to our operations.





Travis
      Thompson was been the Secretary and Director of our company from inception
      in
      May, 2005. He began his culinary career working at the Timberline Lodge at
      the
      top of Mount Hood outside of Portland, Oregon as a garde manger cook from 1997
      to 1998. He worked in various positions in the culinary industry at several
      resort towns including Lake Tahoe, California and Crested Butte, Colorado from
      1998 to 2001. Mr. Thompson moved to San Diego, California where he helped open
      and manage a beach side bistro from 2002 to 2003. From 2003 to 2005, he was
      a
      banquet chef at the Lodge at Torrey Pines in La Jolla, California until
      co-founding our company. Mr. Thompson received an A.A. degree in culinary arts
      at the Colorado Institute of Art in Denver, Colorado.





Item
      10. EXECUTIVE COMPENSATION





Both
      of
      our officers and directors are compensated for the work they perform on our
      behalf. Mr. Bell receives a fixed salary of $3,500 per month as total
      compensation. Mr. Thompson receives a fixed salary of $3,000 per month as total
      compensation.





In
      addition, our officers and directors are reimbursed for any out-of-pocket
      expenses they incur on our behalf. In addition, in the future, we may approve
      payment of salaries for our management, but currently, no such plans have been
      approved. For our full-time office employees, we pay for vacation and holidays
      but do not provide major medical coverage. In addition, none of our officers,
      directors or employees is a party to any employment agreements.





ITEM
      11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT.





The
      following sets forth the number of shares of our $.0.001 par value common stock
      beneficially owned by (i) each person who, as of November 30, 2007, was known
      by
      us to own beneficially more than five percent (5%) of its common stock; (ii)
      our
      individual Directors and (iii) our Officers and Directors as a group. A total
      of
      12,667,533 common shares were issued and outstanding as of November 30,
      2007.




-
          18 -





Name
                and Address
            
            No.
                of
            
            
            PercentageBeneficial
            
            Shares
            
            
            of
                OwnershipOwner(1)
            
            OwnedChristopher
                Bell(2)
            
            
            5,100,000
            
            
            
            40.3
            %3003
                Arapahoe StreetDenver,
                Colorado  80205Travis
                Thompson(2)
            
            
            5,100,000
            
            
            
            40.3
            %3003
                Arapahoe StreetDenver,
                Colorado  80205Sanders
                Huttner Partnership(3)
            
            
            900,000
            
            
            
            7
            %651
                Bering DriveSuite
                202Houston,
                Texas 77057_____________All
                Officers and
            
            
            10,200,000
            
            
            
            80.6
            %Directors
                as a Group(two
                persons)





_____________





(1)  All
      shares of owned of record.





(2)  Mr.
      Bell has an option to purchase 5,000,000 shares of Mr. Thompson's common stock
      for a period beginning May 4, 2005 and ending May 4, 2009.  This
      option may be exercised immediately.





(3)  The
      partnership is controlled by Mr. Frederick A. Huttner and 50% owned by Mr.
      Huttner. Mr. Huttner has a consulting services contract to provide general
      business strategic consulting and management advisory services to us, for which
      he is paid $750 per month. The contract is for eighteen months from October
      1,
      2005. Mr. Huttner is the step-father of Mr. Bell. Mr. Bell disclaims beneficial
      ownership of the Partnership's shares.


_____________




-
          19 -





ITEM
      12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.





Mr.
      Bell
      has an option to purchase 5,000,000 shares of Mr. Thompson's common stock for
      a
      period beginning May 4, 2005 and ending May 4, 2009.  This option may
      be exercised immediately.





Mr.
      Frederick A. Huttner, who owns controls Sanders Huttner Partnership and owns
      50%
      of the partnership, has a consulting services contract to provide general
      business strategic consulting and management advisory services to us, for which
      he is paid $750 per month. The contract was for eighteen months from October
      1,
      2005. This contract has since expired and was not renewed. Mr. Huttner is the
      step-father of Mr. Bell.





We
      have a
      $26,836 note payable outstanding to Mr. Bell, unsecured, bearing interest at
      6.5% per annum, due in July 2009, with interest only payments of $145 per month
      scheduled through January 2008, then principal and interest payments of $1,569
      scheduled through July 2009 plus any remainder due.





ITEM
      13. EXHIBITS AND REPORTS ON FORM 8-K.





The
      following financial information is filed as part of this report:





(a)    
      (1) FINANCIAL STATEMENTS





(2)   SCHEDULES





(3) EXHIBITS.
        The following exhibits required by Item 601 to be filed herewith are
        incorporated by reference to previously filed documents:





--------------------------------------------------------------------------------


Exhibit


Number         Description


--------------------------------------------------------------------------------





3.1           Articles
      of Incorporation*


3.2           Bylaws*


10.0         Consulting
      Services Agreement*


21.1         List
      of Subsidiaries


31.1        
      Certification of CEO/CFO pursuant to Sec. 302


32.1       
       Certification of CEO/CFO pursuant to Sec. 906





--------------------------------------------------------------------------------





*
      Previously filed, Form SB-2, December 9, 2005





-
          20 -




(b)  Reports
      on Form 8-K.





The
      Company filed no reports on Form 8-K during the fourth quarter of the fiscal
      year ended September 30, 2007.





ITEM
      14: PRINCIPAL ACCOUNTANT FEES AND SERVICES





Our
      independent auditor, Ronald R. Chadwick, P.C., Certified Public Accountants,
      billed an aggregate of $12,100 for the fiscal year ended September 30, 2007
      and
      an aggregate of $4,780 for the fiscal year ended September 30, 2006 for
      professional services rendered for the audit of the Company's annual financial
      statements and review of the financial statements included in its quarterly
      reports.





We
      do not
      have an audit committee and as a result its entire board of directors performs
      the duties of an audit committee. Our board of directors evaluates the scope
      and
      cost of the engagement of an auditor before the auditor renders audit and
      non-audit services.








SIGNATURES





In
      accordance with Section 12 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.




KURRANT
                FOOD ENTERPRISES, INC.Date:December
                26,
                2007
            By:
            /s/Christopher
                BellChristopher
                Bell, President and Chief Executive Officer





Pursuant
      to the requirements of the Securities Act of 1933, this registration statement
      has been signed by the following persons in the capacities and on the dates
      indicated.







Date:December
                26,
                2007
            By:
            /s/Christopher
                BellChristopher
                BellDirector,
                Treasurer and Chief Financial
                Officer








Date:December
                26,
                2007
            By:
            /s/
                Travis ThompsonTravis
                ThompsonDirector





-
      21
      -