SECURITIES
AND EXCHANGE COMMISSION
 Washington,
D.C. 20549
 
 FORM 10-K
 
 [x]
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
 SECURITIES
EXCHANGE ACT OF 1934
 
 For the Fiscal Year Ended: September
30, 2009
 
 []
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
 SECURITIES
EXCHANGE ACT OF 1934
 
 Commission
File No. 0-1346352
 
 KURRANT FOOD ENTERPRISES,
INC.
 (Exact
Name of Registrant as specified in its charter)
 
 Colorado
              20-3902781(State
      or other jurisdiction
              (IRS
      Employer File Number)of
      incorporation)
 
 194
      Hermosa CircleDurango, Colorado
              81301(Address
      of principal executive offices)
              (Zip
      code)
 
 (970)
247-4980
 (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
 
 Indicate
by check mark if registrant is a well-known seasoned issuer, as defined in Rule
405 of the Securities Act. Yes []   No [X].
 
 Indicate
by check mark if registrant is not required to file reports pursuant to Section
13 or 15(d) of the Exchange Act.Yes [] No [X].
 
 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: [ ]   No: [X]
 
 Indicate
by check mark whether the registrant has submitted electronically and posted on
its corporate Web site, if any, every Interactive Data File required to be
submitted and posted pursuant to Rule 405 of Regulation S-T(Section 232.405 of
this chapter) during the preceding 12 months(or such shorter period that the
registrant was required to submit and post such files. Yes []  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-K.
[X]
  Indicate
by check mark whether the registrant is a large accelerated filer, a
non-accelerated filer, or a smaller reporting company. See definitions of “large
accelerated filer,” “accelerated filer,” and “small reporting company” in Rule
12b-2 of the Exchange Act.
 
 Large
      accelerated filer []
              Accelerated
      filer []Non-accelerated
      filer   [] (Do not check if a smaller reporting
      company)
              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 []   No
[X].
 
 State the
aggregate market value of the voting and non-voting common equity held by
non-affiliates computed by reference to the price at which the common equity was
last sold, or the average bid and asked price of such common equity, as of the
last business day of the registrant’s most recently completed second fiscal
quarter: Approximately $128,000.
 
  
  FORM
10-K
 
 Kurrant
Food Enterprises, Inc.
  INDEX
  PART
      I
                PageItem
      1. Business
                3Item 1A. Risk Factors
                6Item
      2. Property
                9Item
      3. Legal Proceedings
                9Item
      4. Submission of Matters to a Vote of Security Holders
                10PART
      IIItem
      5. Market for Registrant’s Common Equity, Related Stockholder Matters and
      Issuer Purchases of Equity Securities
                10Item
      6. Selected Financial Data
                12Item
      7. Management's Discussion and Analysis of Financial Condition and Results
      of Operations
                12Item
      7A. Quantitative and Qualitative Disclosures About Market
    Risk
                15Item
      8. Financial Statements and Supplementary Data
                16Item
      9. Changes in and Disagreements with Accountants on Accounting and
      Financial Disclosures
                28Item
      9A(T). Controls and Procedures
                28Item
      9B. Other Information
                29PART
      IIIItem
      10. Directors, Executive Officers and Corporate Governance
                29Item
      11. Executive Compensation
                29Item
      12. Security Ownership of Certain Beneficial Owners and Management
      and Related Stockholder Matters
                30Item
      13. Certain Relationships and Related Transactions, and Director
      Independence
                30Item
      14. Principal Accountant Fees and Services
                31Item
      15. Exhibits Financial Statement Schedules
                31Financial
      Statements pages
                16
      - 27Signatures
                32
    -
2 -
  References
in this document to "us," "we," or "Company" refer to Kurrant Food Enterprises,
Inc. and includes our wholly-owned subsidiary, Kurrant Cuisine Enterprises,
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 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.
 
 PART
I
 
 Item
1.   DESCRIPTION OF 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. 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 We plan to
expand our operations to the production of food products in the
second  quarter of 2010.  Through our catering business we
have developed various proprietary recipes related to stocks, sauces, and
vinaigrettes.  After numerous requests from our loyal customer base we
have decided to deliver our first bottled house vinaigrette to new and existing
customers via our website to be developed and local markets.  We have
spent the last year developing our gourmet food product and preparing for this
expansion of our operations.    .
 
 Kurrant
Mobile Catering, Inc. is a corporation which we formed under the laws of the
State of Colorado on November 15, 2007. On November 30, 2007, our directors
approved, subject to the effectiveness of a registration with the Securities and
Exchange Commission, the pro rata spin-off of Kurrant Mobile Catering, Inc. to
our shareholders of record on January 10, 2008 on a pro rata basis. Since our
business is related to the proposed activities of Kurrant Mobile Catering, Inc.,
our directors decided it was in our best interests to spin-off Kurrant Mobile
Catering, Inc. to minimize any potential of conflict of interest.  We
distributed the Kurrant Mobile Catering, Inc. shares on or about February 12,
2008.
 
 Our
headquarters are located at 194 Hermosa Circle, Durango, Colorado 81301. Our
phone number at our headquarters is (970) 247-4980. Our fiscal year end is
September 30th.
  -
3 -
 
 
 Overview of our
Operations
 
 Our
operations focus on 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
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 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.
 
 In 2008,
we began a management project of a restaurant in Durango, Colorado. This
restaurant is known as the Swing at
Dalton Ranch Restaurant. We receive a management fee of $ 4,000 per month under
an oral management agreement. This agreement was terminated in
2008.
 
 In
January 2009 we began plans in our operations to include food
preparation.  Throughout 2009 we were developing recipes and preparing
our infrastructure to handle the production and delivery of our
products.  The first product we plan to bring to market is our house
vinaigrette. This product is anticipated to be available for sale in the second
quarter of 2010.
 
 Operations, Management and
Employees
  We
believe that initially operating from one location will be central to our
overall success. We currently concentrate our catering operations in the
Durango, Colorado area.  Our food products will be available at local
markets and on our website, which is under development.
  -
4 -
  
 We have
one full-time employee, our President, Mr. Bell. As we expand, we intend to hire
additional employees. We also use part-time contract help as
needed.
 
 While Mr.
Bell, our President, has 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 and via the website
we plan to develop in the second quarter of our next fiscal year. We have no
sales representative who solicits potential clients. However, Mr. Bell, our
President, uses his 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 food
and production 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 and producers,
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.
 
 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.
 
 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
one full-time employee, our President, Mr. Bell. We reimburse him for any
out-of-pocket expenses he incurs 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.
  -
5 -
  
 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 194 Hermosa Circle, Durango, Colorado 81301. Our
phone number at our headquarters is (970) 247-4980. We do not currently have a
website but have one under development for the second quarter of our next fiscal
year.
 
 ITEM
1A. 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 A HISTORY OF LOSSES. SUCH A COMPANY IS AN INHERENTLY RISKY
INVESTMENT.
 
 For the
year ended September 30, 2009, we had a loss of $53,199 on sales of $2,851. For
the year ended September 30, 2008, we had a loss of $28,106 on sales of
$181,455.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
fiscal years ended September 30, 2009 and 2008, 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
      retail products; and
 
 ●
              our ability to generate revenues.
 
 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 cannot guarantee that we will be successful in generating
sufficient revenues or other funds in the future to cover our operating costs.
Failure to generate sufficient revenues will cause us to go out of
business.
 
  -
6 -
  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 two 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. 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 Durango, Colorado 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, OUR LARGEST SHAREHOLDER AND WILL
CONTINUE TO BE CONTROLLED BY MR. BELL IN THE FUTURE.
 
 Of the
shares which are issued and outstanding, Mr. Bell owns a total of 10,100,000
shares, or approximately 83% together. Mr. Bell will continue to control us for
the foreseeable future. The control by Mr. Bell means that he 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 Durango,
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.
  -
7 -
  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 MR. BELL 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. Mr. Bell currently performs 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 Mr.
Bell 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 AND GOURMET RETAIL FOOD INDUSTRY IS HIGHLY COMPETITIVE. IF WE ARE NOT
WELL RECEIVED OR SUCCESSFUL, WE MAY NEVER ACHIEVE PROFITABILITY.
 
 The
catering and gourmet retail food 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 and gourmet retail food
industry is also generally affected by changes in client preferences, national,
regional and local economic conditions and demographic trends. The performance
of catering and retail food sales 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.
  -
8 -
  OUR
COMMON STOCK CURRENTLY HAS A LIMITED TRADING MARKET AND THERE IS NO GUARANTEE A
TRADING MARKET WILL EVER DEVELOP.
 
 There is
presently a limited public market for our common stock. While we currently trade
in the Over-the-Counter Bulletin Board, we cannot guarantee that our shares will
actively trade. 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 actively 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.
 
 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.
 
 
 ITEM
2. DESCRIPTION OF PROPERTY.
 
 We
currently own a van and a delivery truck, as well as office equipment. We have
an oral month-to-month lease on our office at 194 Hermosa Circle, Durango,
Colorado 81301. We do not pay for this lease.
 
 
 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.
 
  -
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 REGISTRANT’S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS AND
ISSUER PURCHASES OF EQUITY SECURITIES.
 
 Principal Market or
Markets
 
 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
following represent the high and low bid quotation for the Company’s common
stock for the fiscal year ended September 30, 2009 and 2008.  These
quotations reflect inter-dealer prices, without retail mark-up, mark-down or
commissions, and may not represent actual transactions.
  
  Year Ending September 30, 2009
              
              High
              
              
              LowFirst
      Quarter
              
              $
              0.05
              
              
              $
              0.03Second
      Quarter
              
              
              0.05
              
              
              
              0.05Third
      Quarter
              
              
              0.05
              
              
              
              0.05Fourth
      Quarter
              
              
              0.05
              
              
              
              0.05
 
 Year Ending September 30, 2008
              
              High
              
              
              LowFirst
      Quarter
              
              $
              .35
              
              
              $
              .25Second
      Quarter
              
              
              .35
              
              
              
              .25Third
      Quarter
              
              
              .20
              
              
              
              .05Fourth
      Quarter
              
              
              .10
              
              
              
              .05
 
 Approximate Number of
Holders of Common Stock
 
 As of
December 1, 2009, 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.
 
 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.
  -
10 -
  
 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;-
              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.
 
 Stock Transfer
Agent
 
 The stock
transfer agent for our securities is Corporate Stock Transfer of Denver,
Colorado.  Their address is 3200 Cherry Creek Drive South, Suite 430,
Denver, Colorado 80209. Their phone number is (303) 282-4800.
 
  -
11 -
  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.
 
 
 ITEM
6. SELECTED FINANCIAL DATA
 
 A smaller
reporting company is not required to provide the information in this
Item.
 
 
 ITEM
7. 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.
 
 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 a catering business and our ability to generate
revenues.
 
 We began
our operations in May, 2005. For the fiscal year ended September 30, 2009, we
had sales of $2,851, compared to sales of $181,455 for year ended September 30,
2008.  For the fiscal year ended September 30, 2009, we had management
fees of $8,350, compared to management fees of $43,500 for year ended September
30, 2008.
 
 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, 2009 was $-0-. Our costs of goods for the fiscal
year ended September 30, 2008 was $103,186.
 
 The
difference between total sales and costs of goods is gross profit. Our gross
profit for the fiscal year ended September 30, 2009 was $11,201, which included
management fee revenue. Our gross profit for the fiscal year ended September 30,
2008 was $121,769, which also included management fee revenue.
  -
12 -
  
 In 2008,
we began a management project of a restaurant in Durango, Colorado. This
restaurant is known as the Swing at Dalton Ranch Restaurant. We received a
management fee of $ 4,000 per month under an oral management agreement, which
was terminated December, 2008.
 
 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, 2009 were $54,386. Operating Expenses
for the fiscal year ended September 30, 2008 were $139,069. 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. Our general and
administrative expenses will continue to be our largest expense
item.
 
 We had a
net loss of $53,199 ($0.00 per share) for the fiscal year ended September 30,
2009, compared to a net loss of $28,106 ($0.00 per share) for the fiscal year
ended September 30, 2008. While we have been able to substantially reduce our
losses, we have had several 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.
 
 Liquidity and Capital
Resources
 
 As of
September 30, 2009, we had cash or cash equivalents of $830, compared to cash or
cash equivalents of $463 at September 30, 2008.
 
 Net cash
used in operating activities was $54,639 for the fiscal year ended September 30,
2009, compared to $20,660 for the fiscal year ended September 30, 2008. We
anticipate that overhead costs in current operations will remain fairly constant
as sales improve.
 
 Cash
flows provided by investing activities were $2,500 for the fiscal year ended
September 30, 2009, compared to cash flows provided by investing activities of
$1,750 for the fiscal year ended September 30, 2008. These activities represent
the sale of equipment in 2008.
 
 Cash
flows provided by financing activities were $52,506 for the fiscal year ended
September 30, 2009, compared to cash flows provided by financing activities of
$9,843 for the fiscal year ended September 30, 2008. The cash flows in 2009and
2008 were each related to borrowings to finance our operations.
 
 Over the
next twelve months we do not plan to have any material capital
costs.
 
 Our
recent public offering provided sufficient capital in the short term for our
current level of operations However,
we anticipate needing to raise additional capital resources in the next twelve
months.  Until our 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 and no definitive plans to do raise additional
capital.
  -
13 -
  Our
principal 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 Colorado 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 Durango, Colorado area.
In addition we plan on expanding our operations to include retail food products.
We believe we can achieve profitability as we are presently organized with
sufficient catering business and product sales.
 
 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;
      or4.
              Identify
      a candidate for acquisition that seeks access to the public marketplace
      and its financing sources.
 
 Our
recent public offering provided sufficient capital in the short term for our
current level of operations. However,
we anticipate needing to raise additional capital resources in the next twelve
months.  Until our 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 and no definitive plans to do raise additional
capital.
 
 If we can
become profitable, we could operate at our present level
indefinitely.
 
 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 Durango, Colorado area.
Our plan is to operate in a profitable manner. We estimate that we must generate
at least $5,000 in revenues per month to be profitable. We generated
approximately $1,100 in revenues per month for the fiscal year ended September
30, 2009.We generated approximately $15,000 in revenues per month for the fiscal
year ended September 30, 2008.
 
 Our goal
is to be profitable or at break even by the end of our next fiscal year,
assuming sufficient revenues.
 
  -
14 -
  We
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.
 
 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
7A. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK.
  -
15 -
  A smaller
reporting company is not required to provide the information in this
Item.
 
 ITEM
8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.
 
 
   
 
 KURRANT
FOOD ENTERPRISES, INC.
 
 CONSOLIDATED
FINANCIAL STATEMENTS
 
 September
30, 2008
 &
September 30, 2009
 
  
 
  -
16 -
  
 
 
 Kurrant
Food Enterprises, Inc.
 Consolidated
Financial Statements
 
 
 
 TABLE
OF CONTENTS
 
 
 PageREPORT
      OF INDEPENDENT REGISTEREDPUBLIC
      ACCOUNTING FIRM
              18CONSOLIDATED
      FINANCIAL STATEMENTSConsolidated balance
      sheets
              19Consolidated statements of
      operation
              20Consolidated statements of
      stockholders' equity
              21Consolidated statements of cash
      flows
              22Notes to consolidated financial
      statements
              24
 
  -
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 sheets of Kurrant Food
Enterprises, Inc. as of September 30, 2008 and 2009, and the related
consolidated statements of operations, stockholders' equity and cash flows for
the years then ended. 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, 2008 and 2009, and the related
consolidated statements of operations, stockholders' equity and cash flows for
the years then ended 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.January
      5,
      2010
              RONALD
      R. CHADWICK, P.C.
 
  -
18 -
  
 KURRANT
      FOOD ENTERPRISES, INC.CONSOLIDATED
      BALANCE SHEETSSept.
      30, 2008
              
              
              Sept.
      30, 2009ASSETSCurrent
      assetsCash
              
              $
              463
              
              
              $
              830Accrued
      receivables
              
              
              1,125Total current
      assets
              
              
              1,588
              
              
              
              830Fixed
      assets
              
              
              46,179
              
              
              
              43,622Accumulated
      depreciation
              
              
              (22,781
              )
              
              
              (30,396
              )Due
      from related party
              
              
              210
              
              
              
              -Other
      assets23,608
              
              
              
              13,226Total
      Assets
              
              $
              25,196
              
              
              $
              14,056LIABILITIES
      &STOCKHOLDERS'
      EQUITYCurrent
      liabilitiesAccrued
      payables
              
              $
              18,583
              
              
              $
              1,670Related
      party payables
              
              
              2,820
              
              
              
              -Notes
      payable - current - related party
              
              
              39,336
              
              
              
              104,022Notes
      payable - current
              
              
              2,903
              
              
              
              3,172Total current
      liabilities
              
              
              63,642
              
              
              
              108,864Notes
      payable
              
              
              11,055
              
              
              
              7,89211,055
              
              
              
              7,892Total
      Liabilities
              
              
              74,697
              
              
              
              116,756Stockholders'
      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
              
              
              12,667
              
              
              
              12,667Additional
      paid in capital
              
              
              249,771
              
              
              
              249,771Accumulated
      deficit
              
              
              (311,939
              )
              
              
              (365,138
              )Total
      Stockholders' Equity
              
              
              (49,501
              )
              
              
              (102,700
              )Total
      Liabilities and Stockholders' Equity
              
              $
              25,196
              
              
              $
              14,056
   The
accompanying notes are an integral part of the consolidated financial
statements.
 
 -
19 -
 
 
 
 KURRANT
      FOOD ENTERPRISES, INC.CONSOLIDATED
      STATEMENTS OF OPERATIONSYear
      Ended
              
              
              Year
      EndedSept.
      30, 2008
              
              
              Sept.
      30, 2009Sales
              
              $
              181,455
              
              
              $
              2,851Cost
      of goods sold
              
              
              103,186
              
              
              
              -78,269
              
              
              
              2,851Management
      fee revenue - related party
              
              
              43,500
              
              
              
              8,350Gross
      profit
              
              
              121,769
              
              
              
              11,201Operating
      expenses:Depreciation
              
              
              9,946
              
              
              
              8,429General
      and administrative
              
              
              129,123
              
              
              
              45,957139,069
              
              
              
              54,386Operating
      - other:Gain
      (loss) on asset disposals
              
              
              (1,900
              )
              
              
              757Gain
      (loss) from operations
              
              
              (19,200
              )
              
              
              (42,428
              )Other
      income (expense):Interest
      income
              
              
              19
              
              
              
              -Interest
      expense
              
              
              (8,925
              )
              
              
              (10,771
              )(8,906
              )
              
              
              (10,771
              )Income
      (loss) beforeprovision
      for income taxes
              
              
              (28,106
              )
              
              
              (53,199
              )Provision
      for income tax
              
              
              -
              
              
              
              -Net
      income (loss)
              
              $
              (28,106
              )
              
              $
              (53,199
              )Net
      income (loss) per share(Basic
      and fully diluted)
              
              $
              (0.00
              )
              
              $
              (0.00
              )Weighted
      average number ofcommon
      shares outstanding
              
              
              12,667,533
              
              
              
              12,667,533
 
 The
accompanying notes are an integral part of the consolidated financial
statements.
 
 -
20 -
 
 
 
 KURRANT
      FOOD ENTERPRISES, INC.CONSOLIDATED
      STATEMENTS OF STOCKHOLDERS' EQUITYCommon
      Stock
              
              
              
              
              
              
              
              
              Stock-Par
      $.001
              
              
              Paid
      In
              
              
              Accumulated
              
              
              holders'Shares
              
              
              Amount
              
              
              Capital
              
              
              Deficit
              
              
              EquityBalances
      at September 30, 2007
              
              
              12,667,533
              
              
              $
              12,667
              
              
              $
              249,771
              
              
              $
              (283,833
              )
              
              $
              (21,395
              )Net
      income (loss) for the year
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              (28,106
              )
              
              
              (28,106
              )Balances
      at September 30, 2008
              
              
              12,667,533
              
              
              $
              12,667
              
              
              $
              249,771
              
              
              $
              (311,939
              )
              
              $
              (49,501
              )Net
      income (loss) for the year
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              (53,199
              )
              
              
              (53,199
              )Balances
      at September 30, 2009
              
              
              12,667,533
              
              
              $
              12,667
              
              
              $
              249,771
              
              
              $
              (365,138
              )
              
              $
              (102,700
              )
 
 
 The
accompanying notes are an integral part of the consolidated financial
statements.
 
  -
21 -
  
 KURRANT
      FOOD ENTERPRISES, INC.CONSOLIDATED
      STATEMENTS OF CASH FLOWSYear
      Ended
              
              
              Year
      EndedSept.
      30, 2008
              
              
              Sept.
      30, 2009Cash
      Flows From Operating Activities:Net
      income (loss)
              
              $
              (28,106
              )
              
              $
              (53,199
              )Adjustments
      to reconcile net loss tonet
      cash provided by (used for)operating
      activities:Depreciation
              
              
              9,946
              
              
              
              8,429Accrued
      receivables
              
              
              37,304
              
              
              
              1,335Other
      assets
              
              
              2,100
              
              
              
              -Prepaid
      expenses
              
              
              10,873
              
              
              
              -Accrued
      payables
              
              
              (63,136
              )
              
              
              (10,447
              )Inventory
              
              
              6,323
              
              
              
              -Write
      offs
              
              
              2,136
              
              
              
              -(Gian)
      loss on disposal
              
              
              1,900
              
              
              
              (757
              )Net cash provided by (used
      for)operating
      activities
              
              
              (20,660
              )
              
              
              (54,639
              )Cash
      Flows From Investing Activities:Fixed
      assets - disposals
              
              
              1,750
              
              
              
              2,500Net
      cash provided by (used for)investing
      activities
              
              
              1,750
              
              
              
              2,500(Continued
      On Following Page)
 
 
 The
accompanying notes are an integral part of the consolidated financial
statements.
 
  -
22 -
  
 KURRANT
      FOOD ENTERPRISES, INC.CONSOLIDATED
      STATEMENTS OF CASH FLOWS(Continued
      From Previous Page)Year
      Ended
              
              
              Year
      EndedSept.
      30, 2008
              
              
              Sept.
      30, 2009Cash
      Flows From Financing Activities:Notes
      payable - borrowings
              
              
              17,500
              
              
              
              78,515Notes
      payable - payments
              
              
              (7,657
              )
              
              
              (26,009
              )Net cash provided by (used
      for)financing
      activities
              
              
              9,843
              
              
              
              52,506Net
      Increase (Decrease) In Cash
              
              
              (9,067
              )
              
              
              367Cash
      At The Beginning Of The Period
              
              
              9,530
              
              
              
              463Cash
      At The End Of The Period
              
              $
              463
              
              
              $
              830Schedule Of Non-Cash
      Investing And Financing ActivitiesNoneSupplemental
      DisclosureCash
      paid for interest
              
              $
              6,037
              
              
              $
              815Cash
      paid for income taxes
              
              $
              -
              
              
              $
              -
 
 
 The
accompanying notes are an integral part of the consolidated financial
statements.
 
  -
23 -
  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, 2008 and 2009 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.
  -
24 -
  
 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.
      30,2008
              
              
              2009Vehicles
              
              $
              36,244
              
              
              $
              39,224Furniture
      & fixtures
              
              
              1,486
              
              
              
              1,486Computers
              
              
              5,052
              
              
              
              2,495Other
              
              
              417
              
              
              
              41746,179
              
              
              
              43,622Less
      accumulated depreciation
              
              
              (22,781
              )
              
              
              (30,396
              )Total
              
              $
              23,398
              
              
              $
              13,266
 
  -
25 -
  KURRANT
FOOD ENTERPRISES, INC.
 NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS
 
 
 NOTE
3. LEASE COMMITMENTS AND CONTINGENCIES
 
 The
Company through December 2007 rented kitchen space under a month to month lease,
with rent expense under the lease in 2008 of $6,671.
 
 The
Company for part of 2008 leased a vehicle on a verbal month to month basis from
a related party at $250 per month. Lease expense under this arrangement in 2008
was $2,150.
 
 
 NOTE
4. NOTES PAYABLE
 
 At
September 30, 2008 the Company had a $13,958 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
$21,836 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 $4,366 in 2008. At September 30, 2009 the Company had a $11,064 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 $94,736 in notes payable outstanding to an officer and another
related party, unsecured, bearing interest at 10% per annum, due on demand, with
interest only payments due by December 31 beginning in 2008. Interest expense
from notes payable was $4,366 and $10,771 in 2008 and 2009, with accrued
interest payable of $3,292 and $9,286 at September 30, 2008 and 2009. 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, 2008 and
2009 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:  2010 $97,908, 2011 $3,466, 2012 $3,788,
2013 $638 (total $105,800).
 
 
 
  -
26 -
  
 KURRANT
FOOD ENTERPRISES, INC.
 NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS
 
 Income
taxes at Federal and state statutory rates are reconciled to the Company’s
actual income taxes as follows:
 
  September
      30,
              
              
              September
      30,2008
              
              
              2009Tax
      at federal statutory rate (15%)
              
              $
              (4,297
              )
              
              $
              (7,980
              )State
      income tax (5%)
              
              
              (1,432
              )
              
              
              (2,660
              )Book
      to tax differences
              
              
              62
              
              
              
              -Change
      in valuation allowance
              
              
              5,667
              
              
              
              10,640$
              -
              
              
              $
              -
 
 
 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.
 
 
  -
27 -
  
 ITEM
9. 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
9A(T). CONTROLS AND PROCEDURES.
 
 Conclusion
Regarding the Effectiveness of Disclosure Controls and Procedures
 
 Under the
supervision and with the participation of our management, including our
principal executive officer and principal financial officer, we conducted an
evaluation of our disclosure controls and procedures, as such term is defined
under the Securities Exchange Act of 1934, as amended (the Exchange
Act).  Accordingly, we concluded that our disclosure controls and
procedures were effective as of September 30, 2009.
 
 Management’s Annual Report
on Internal Control Over Financial Reporting.
 
 Management
is responsible for establishing and maintaining adequate internal control over
financial reporting (ICFR).
 
 Our
internal control over financial reporting are designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation
of consolidated financial statements for external purposes in accordance with U.
S. generally accepted accounting principles.
 
 Our
management conducted an evaluation of the effectiveness of our internal control
over financial reporting based on the framework in Internal Control — Integrated
Framework issued by the Committee of Sponsoring Organizations of the
Treadway Commission.  Based on our evaluation, management has
concluded, as of September 30, 2009, we did maintain effective control over the
financial reporting process.
 
 Inherent Limitations Over
Internal Controls
 
 Internal
control over financial reporting cannot provide absolute assurance of achieving
financial reporting objectives because of its inherent limitations, including
the possibility of human error and circumvention by collusion or overriding of
controls. Accordingly, even an effective internal control system may not prevent
or detect material misstatements on a timely basis. Also, projections of any
evaluation of effectiveness to future periods are subject to the risk that
controls may become inadequate because of changes in conditions or that the
degree of compliance with the policies or procedures may
deteriorate.
 
 Attestation Report of the
Registered Public Accounting Firm.
 
 This
annual report does not include an attestation report of our independent
registered public accounting firm regarding internal control over financial
reporting. Management's report was not subject to attestation by our independent
registered public accounting firm pursuant to temporary rules of the SEC that
permit us to provide only management's report in this annual
report.
 
 Changes in Internal Control
Over Financial Reporting.
 
 We have
made no change in our internal control over financial reporting that has
materially affected, or is reasonably likely to materially affect, our internal
control over financial reporting.
  -
28 -
 
 
 ITEM
9B. OTHER INFORMATION.
 
 Nothing
to report.
 
 
 PART
III
 
 ITEM
10. DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE
 
 Our
Director and Executive Officer, his age and positions held with us as of
December 1, 2008 are as follows:
 
 NAME
              AGE
              POSITION HELDChristopher
      Bell
                194
      Hermosa Circle
                Durango,
      Colorado  80205
              33
              President,
      Chief Executive Officer, Secretary Treasurer, and Chief Financial
      Officer
 
 The
person named above is expected to hold said offices/positions until the next
annual meeting of our stockholders. He cannot be considered to be an independent
director.
 
 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. He became
our Secretary in 2008. 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.
 
 
 Item
11. EXECUTIVE COMPENSATION
 
 Mr. Bell
is compensated for the work he performs on our behalf. Mr. Bell receives a fixed
salary of $4,000 per month as total compensation.
 
 In
addition, our officer and director is reimbursed for any out-of-pocket expenses
he incurs on our behalf. 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.
 
 
  -
29 -
  ITEM
12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED
STOCKHOLDER MATTERS
 
 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 December 1, 2009, 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 December 1,
2009.
 
 Name
      and Address
              No.
      ofBeneficial
              Shares
              PercentageOwner
(1)
              Owned
              of OwnershipChristopher
      Bell (2)
              10,100,000
              79.7%194
      Hermosa CircleDurango,
      Colorado  80205_____________All
      Officers and
              10,100,000
              79.7%Directors
      as a Group(one
      person)
 
 _____________
 
 (1)  All
shares of owned of record.
 _____________
 
 
 ITEM
13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
 
 Mr. Bell
had 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 has
been exercised.
 
 At
September 30, 2008 we had a $13,958 note payable outstanding to a finance
company, collateralized by Company equipment, guaranteed by our President,
bearing interest at 8.9% per annum, due in November 2012, with principal and
interest payments of $335 per month. We also had a $21,836 note payable
outstanding to our President 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 $4,366
in 2008. At September 30, 2009 we had a $11,064 note payable outstanding to a
finance company, collateralized by Company equipment, guaranteed by our
President, bearing interest at 8.9% per annum, due in November 2012, with
principal and interest payments of $335 per month. We also had $94,736 in notes
payable outstanding to our President and Mr. Rick Huttner, unsecured, bearing
interest at 10% per annum, due on demand, with interest only payments due by
December 31 beginning in 2008. Interest expense from notes payable was $4,366
and $10,771 in 2008 and 2009, with accrued interest payable of $3,292 and $9,286
at September 30, 2008 and 2009. The fair value of the notes payable is estimated
based on the current rates offered to us for debt of the same remaining
maturities. At September 30, 2008 and 2009 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:  2010 $97,908, 2011 $3,466, 2012 $3,788, 2013 $638 (total
$105,800).
  -
30 -
  
 
 ITEM
14: PRINCIPAL ACCOUNTANT FEES AND SERVICES
 
 Our
independent auditor, Ronald R. Chadwick, P.C., Certified Public Accountants,
billed an of $11,500  for the fiscal year ended September 30,
2009  and  $12,200 for the fiscal year ended September 30,
2008 for professional services rendered for the audit of our 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.
 
 
 ITEM
15. EXHIBITS FINANCIAL STATEMENT SCHEDULES
 
 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:
 
 ExhibitNumber
              
              Description3.1
              
              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. 30232.1
              
              Certification
      of CEO/CFO pursuant to Sec. 906
 
 _______________
 
 *
Previously filed, Form SB-2, December 9, 2005
 **
Previously filed, Form 10-KSB, January 9, 2009
 
 (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, 2009.
 
 
  -
31 -
  
 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:
      January 10, 2010
              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:
      January 10, 2010
              By:
              /s/ Christopher
      BellChristopher
      BellDirector,
      Treasurer and Chief Financial
Officer
 
 
 
 
  -
32 -