UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q

/A (Amendment No. 1)  [ X ]   QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934For the quarterly period ended June 30, 2009 OR [   ]   TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
EXCHANGE ACTFor the transition period from   to __________ Commission file number 000-51808  ATHENA SILVER CORPORATION (formerly

GOLDEN WEST BREWING COMPANY, INC.

)(Exact Name of Small Business Issuer as Specified in its Charter)  Delaware(State or other jurisdiction
of incorporation or organization)25-1909408I.R.S. Employer
Identification number  2010A Harbison Drive #312, Vacaville, CA 95687(Address of principal executive offices)           (Zip Code) Issuer's telephone number: 

(707) 844-3766 _______

945 West 2nd Street, Chico, P O Box 3750, CA  95928

____________ Former name, former address, and former fiscal year, if changed since last report  Check whether the Issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the last 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  [  X  ]    No [  ]  Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer,  a non-accelerated filer, or a smaller reporting company.  See definition of large accelerated filer, accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act.  (Check one):  Large accelerated filer [    ] Accelerated filer [    ]  Non-accelerated filer [   ]  Smaller Reporting Company [ X ]  Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes [   ]  No  [ X ].  As of August 18, 2009, the Registrant had 20,000,000 shares of its Common Stock outstanding.  1   INDEX PART I -- FINANCIAL INFORMATION Item 1.Financial StatementsPageConsolidated Balance Sheets as of June 30, 2009

 (unaudited)

 and December 31, 2008

(Restated)

(unaudited)5Consolidated Statements of Operations for the three and six month periods ended June 30, 2009

 (Restated)

 (unaudited) and June 30, 2008 (unaudited)6Consolidated Statement of Stockholders Deficit
June 30, 2009

 (Restated)

 (unaudited)7Consolidated Statements of Cash Flows for the six month periods
ended June 30, 2009

 (Restated)

 (unaudited) and June 30, 2008(unaudited)8Notes to Consolidated Financial Statements (unaudited)10Item 2.Management's Discussion And Analysis Of Financial
Condition And Results Of OperationsPlan of Operations30Liquidity and Capital Resources3

5Item 3.Quantitative and Qualitative Disclosures about Market Risk41Item 4.Controls & Procedures41PART II - OTHER INFORMATIONItem 1.Legal Proceedings43Item 1ARisk Factors43Item 2.Unregistered Sale of Equity Securities and Use of Proceeds43Item 3.Defaults Upon Senior Securities43Item 4.Submission of Matters to a Vote of Security Holders44Item 5.Other Information44Item 6.Exhibits44   2   EXPLANATORY NOTE  The primary purpose of this Amendment No. 1 on Form 10-Q/A is to restate the consolidated financial statements for the fiscal quarter ended June 30, 2009, presented in our Quarterly Report on Form 10-Q initially filed with the Securities and Exchange Commission (SEC) on August 18, 2009 (the Original Filing). As previously reported, subsequent to the issuance of our interim financial statements on Form 10-Q for the quarter ended June 30, 2009, management discovered a financial statement error that related to the fiscal year ended December 31, 2008 that caused an understatement of the previously reported net loss for the year ended December 31, 2008 by $191,800, or $0.06 per common share. This error relates to the accounting for forgiveness of debt by a related party. As a result of this error, total other expense for the fourth quarter of fiscal 2008 was understated by $191,800 due to the recording of debt forgiveness by a related party as other income and additional paid-in capital was understated by a like amount.  Management also discovered a financial statement error that related to the fiscal quarter ended June 30, 2009 that caused an overstatement of the previously reported net income for the three and six months ended June 30, 2009 by $139,295, or $0.02 and $0.03 per common share, respectively. This error relates to the accounting for forgiveness of debt by a related party. As a result of this error, total other income for the three and six months ended June 30, 2009 was overstated by $139,295, respectively, due to the recording of debt forgiveness by a related party as other income and additional paid-in capital was understated by a like amount.  See Note 2 to the Notes to the consolidated interim financial statements for more details on this error and the related financial statement effect.
Generally, no attempt has been made in this Form 10-Q/A to modify or update other disclosures presented in the Original Filing except as required to reflect the effects of the restatement. This Form 10-Q/A does not reflect events occurring after the Original Filing or modify or update those disclosures. Information not affected by the restatement is unchanged and reflects the disclosures made at the time of the Original Filing. Accordingly, this Form 10-Q/A should be read in conjunction with the Companys filings made with the Securities and Exchange Commission subsequent to the filing of the original Form 10-Q. The following items have been amended as a result of the restatement: Part I  Item 1 (Financial Information), Part I  Item 2 (Managements Discussion and Analysis of Financial Condition and Results of Operations) and Part I  Item 4 (Controls and Procedures), have been amended from the Original Filing as a result of the restatement. In addition, Part II  Item 6 (Exhibits) has been amended to include new certifications executed as of the date of this Form 10-Q/A by our Chief Financial Officer.   3   PART 1.  FINANCIAL INFORMATION  Item 1. Financial Statements The consolidated financial statements included herein have been prepared by Golden West Brewing Company, Inc. (the "Company") without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC).  Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to such SEC rules and regulations.  In the opinion of management of the Company the accompanying statements contain all adjustments necessary to present fairly the financial position of the Company as of June 30, 2009 and December 31, 2008, and its results of operations for the three and six month periods ended June 30, 2009 and 2008 and its cash flows for the six month periods ended June 30, 2009  and 2008 and the statement of stockholders deficit as of June 30, 2009.  The results for these interim periods are not necessarily indicative of the results for the entire year.  The accompanying financial statements should be read in conjunction with the financial statements and the notes thereto filed as a part of the Company's annual report on Form 10-K.        4    GOLDEN WEST BREWING COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
AS OFCurrent Assets:(Unaudited)
June 30, 2009
(Restated)December 31

,




2008(Restated)Cash and cash equivalents$    19,882$    21,201Accounts receivable, net of allowance for doubtful accounts of
$0



 and $23,849 at June 30, 2009 and December 31, 2008
respectively49,73839,178Inventory  (Note 1)105,833109,495Marketable Securities (Note




3

)34,21573,952Prepaid Expenses2,6378,976Total current assets212,305252,802Fixed Assets:Property and equipment from discontinued operations held for sale (Note 1)28,142152,590Other Assets:Intangibles, net of accumulated amortization of $19,167 and $16,667



at June 30, 2009 and December 31, 2008, respectively19,73916,068Deferred financing costs, net of accumulated amortization of
$5,858 at



December 31,

 2008 (Note 4)-84,922Other assets1,8097,709Total other assets21,548108,699Total Assets$ 261,995$ 514,091LIABILITIES AND STOCKHOLDERS DEFICITCurrent Liabilities:Accounts payable$312,380$445,353Accrued expenses194,133265,105Checks issued in excess of funds available19,3836,095Lines of credit payable (Note




4

)22,97832,555Advances  related parties (Note




4

)47,5007,425Advances -- other2,396-Notes payable  other, current portion (Note




4

)26,08668,731Notes payable  related party, current portion (Note




4

)514,8811,109,054Total current liabilities1,139,7371,934,318Long-term liabilities:Note payable  related party, net of current portion (Note




4

)--Total long-term liabilities--Total Liabilities1,139,7371,934,318Commitments and Contingencies (Notes 1,2,3,4, 5, 6,7, 8, 9

, 10

 and 1




1

)Stockholders Deficit:Preferred Stock, $.0001 par value, 5,000,000 shares authorized,
0 shares and 300,000 issued and outstanding as of
June 30, 2009 and December 31, 2008, respectively-30Common stock, $.0001 par value, 20,000,000 shares authorized,
20,000,000 and 3,404,525 shares issued and outstanding as of
June 30, 2009 and December 31, 2008

, respectively2,000340Additional paid-in capital2,547,5951,898,015Accumulated (deficit)(




3,427,337

)(




3,318,612

)Total Stockholders Deficit(877,742)(1,420,227)Total Liabilities and Stockholders Deficit$    261,995$    514,091  5     GOLDEN WEST BREWING COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND SIX MONTHS ENDED JUNE 30,

 (UNAUDITED)  For the




three

 months ended June 30,For the




six

 months ended June 30,2009

 (Restated)20082009

 (Restated)2008Revenues$

     

74,528$  

  

290,875$  118,969$   577,175Less: Excise taxes(1,847)(14,026)(3,728)(26,344)Net revenues72,681276,849115,241550,831Cost of sales66,712263,603108,995475,905Gross profit5,96913,2466,24674,926Operating expenses:Amortization1,2501,5862,5003,173Legal and accounting33,55546,13360,35265,714Management compensation-24,08811,25059,674Stock-based compensation (note 1




1

)3,3383,3386,6766,676Selling expenses4,61429,9079,87064,449Other13,69859,73233,29611,502Total operating expenses56,455164,784123,944211,188Other Income (Expense):Miscellaneous income3351441,596210Gain



on



marketable securities98,015-80,311-Debt Forgiveness26,458-26,458-Loan Fees(2,400)(1,750)(2,400)(10,750)Deferred Financing Costs(67,469)( 48,113)(84,922)(86,927)Interest expense(5,628)(29,359)(36,205)(56,221)Total other

 income

 (expense)49,311(




79,078

)(





15,162)(




153,688

)Loss from continuing operations(1,175)(230,616)(132,860)(289,950)Discontinued operations:Revenues from discontinued operations1,83882,5155,507148,315Gain on equipment sales74,895-68,142-Expenses from discontinued operations(11,871)(107,224)(49,514)(293,447)Gain (Loss) from discontinued operations64,862(24,709)24,135(145,132)Net Income (Loss)$



63,687$(255,325)$(108,725)$(435,082)Preferred dividends-3,582-13,348Net Income (Loss) attributable to common shareholders$ 63,687$ (




258,907

)$

  

(108,725)$

(448,430)Net Income (Loss) per share$  

 

.0




1$  (.0




8

)$

   

 



        (

..0




2)$

  

         (.




15

)Net



(Loss) attributable to continuing operations$

   

(1,175

)$  (




230,616

)$

  

(132,860)$  (289,950)Net



(Loss) per share$






 (

..0




0)$  (.0




7

)$  (

..0




3)$






 (.




10

)N




et

Income (





L

oss

)

 attributable to discontinued operations$      





64,862$

 

 (




24,709

)$

      

 

  





24,135$  

 (145,132)Net

Income (

Loss

)

 per share$

  

 

 

 ..0



1$  (.01)$

   

 

 

 

  

.0




0$  (.0




5

)Weighted Average Shares
Outstanding6,322,4113,371,8164,871,5283,025,167  6      GOLDEN WEST BREWING COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT
 JUNE 30, 2009

 (RESTATED)

 (UNAUDITED) Preferred StockCommon StockAdditional
Paid-InAccumulatedSharesAmtSharesAmountCapital(Deficit)TotalsBalance, December 31, 2007300,000303,335,0003341,485,033(2,221,948)(736,551)Shares issued for compensation at $0.50, March, 20086,00012,9993,000Shares issued for loan fees at $0.50, March, 200818,00018,9999,000Deferred financing costs on line of credit for three
months ended March 31, 200880,96080,960Shares issued for compensation at $0.50, June, 20086,00012,9993,000Shares issued for loan fees at $0.50, June, 20083,5001,7501,750Deferred financing costs on line of credit for three
months ended June 30, 200817,83017,830Shares issued for trade liability at $.30 per share,
September, 200821,22526,3656,367Shares issued for loan fees at $.25 per share, August, 20081,500375375Shares issued for compensation at $.25 per share,
August, 20086,00011,4991,500Stock-based compensation  options13,35213,352Deferred financing costs on line of credit for three
months ended September 30, 20086,8306,830Shares issued for compensation at $.10 per share,
December 1, 20086,000600600Shares issued for loan fees at $.10 per share, December, 20081,300130130Deferred financing costs on line of credit for three
months ended December 31, 200890,82090,820Dividends on Preferred Stock for the year ended 12-31-08(14,326)(14,326)Contributed capital  forgiveness of related party debt and accrued interest expense, December 2008 (Restated)191,800191,800Net (Loss)

 (Restated)-----(




1,096,664

)(




1,096,664

)Balance, December 31, 2008

 (Restated)300,000303,404,5253401,898,015(




3,318,612

)(1,420,227)Dividends on Preferred Stock

, March, 2009(3,582)(3,582)Shares issued in satisfaction of accounts payable at $0.04 per share, June, 20092,500,00025099,750100,000Shares issued for debt conversion at $

0

..04 per share, June



, 20099,595,475960382,859383,819Common shares exchanged for preferred shares

, June, 2009(300,000)(30)4,500,000450-420Contributed capital  forgiveness of related party debt and accrued interest expense, June, 2009 (Restated)139,295139,295Forgiveness of accrued preferred dividends

, June, 200924,58224,582Stock-based compensation  options6,6766,676Net (Loss)

 (Restated)-----(





108,725)(





108,725)Balance. June 30, 2009

 (Restated)--      



 -20,000,0002,0002,547,595(




3,427,337

)(877,742)  7      GOLDEN WEST BREWING COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) For the six months ended






June 30,(Restated)20092008Cash Flows from Operating Activities:Net

loss$  

(





108,725)$      (435,082)Adjustments to reconcile net loss to net cash

from (

used in

)
operating activities:Depreciation-15,782Amortization of intangibles2,5003,173Stock-Based Compensation and expenses6,6766,676Shares issued for compensation-6,000Deferred financing costs84,92286,927(Gain) on forgiveness of line of credit payable and accounts payable(26,458)-(Gain) on marketable securities(80,311)-(Gain) on sale of property and equipment from discontinued operations held for sale(68,142)-(80,813)118,558Changes in operating assets and liabilities:(Increase) decrease in:Accounts Receivable(10,




560

)(42,899)Inventories3,66283,486Prepaid expenses6,339(6,231)Marketable Securities120,048-Increase (decrease) in:Checks written in excess of funds available13,288(26,713)Accounts payable(




13,708

)100,770Accrued Expenses4,49246,238123,561154,651Net cash from (used in) operating activities(




65,977

)(




161,873

)  (continued on the following page)    8   GOLDEN WEST BREWING COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) For the six months ended






June 30,(Restated)20092008  (continued from the previous page)  Cash Flows from (used in) Investing Activities:Proceeds from sale of fixed assets192,590-Investment in fixed assets-(6,265)Net Investment in intangibles and other assets(




271

)(




4,089

)Net cash from (used in) investing activities192,319(




10,354

)Cash Flows from

 (used in)

 Financing Activities:Borrowings from lines of credit, advances and notes payable231,948250,436Repayment of lines of credit, advances and notes payable(




359,609

)(82,242)Net cash from

 (used in)

 financing activities(




127,661

)168,195Increase (Decrease) in Cash and Cash Equivalents$ (1,319)$    (4,032)Cash and Cash Equivalents, beginning of period21,2014,684Cash and Cash Equivalents, end of period$  19,882$          652Supplemental Schedule of Cash Flow Information:Cash paid for interest$

 





  





8,764$  




 

 




3,713Common shares issued for notes payable$383,819$            -Debt forgiveness lines of credit$    7,193$            -Debt forgiveness notes payable  related parties$  85,250$            -   9   GOLDEN WEST BREWING COMPANY AND SUBSIDIARIES NOTES TO FINANCIAL STATEMENTS  1.      Nature of Business and Significant Accounting Policies:  This summary of significant accounting policies of is presented to assist in understanding the Company's financial statements. The financial statements and notes are representations of management who is responsible for their integrity and objectivity. These accounting policies conform to generally accepted accounting principles in the United States of America and have been consistently applied in preparation of the financial statements. The Company has selected December 31 as its year end.  Description of Business- Golden West Brewing Company, Inc.

 (GWB)

, a Delaware Corporation, and its wholly-owned California subsidiary Golden West Brewing Company

 (GWB-CA)





were formed in 2003 for the purpose of acquiring Butte Creek Brewing Company, LLC ("Butte Creek").  The acquisition of Butte Creek was completed on August 31, 2005.  In 2008, the Company formed a wholly-owned Washington subsidiary, Golden West Brewing, Inc.

 (GWB-WA)

 which is engaged in the business of investing in speculative securities.

Together these entities are referred to as the Company on a consolidated basis.  In the opinion of management of the Company the accompanying statements contain all adjustments necessary to present fairly the financial position of the Company as of June 30, 2009 and December 31, 2008, and its results of operations for the three and six month periods ended June 30, 2009 and 2008 and its cash flows for the six month period ended June 30, 2009 and 2008 and the statement of stockholders deficit as of June 30, 2009 and December 31, 2008. The accompanying financial statements should be read in conjunction with the

 financial statements for the year ended December 31, 2008 contained in our Form 10-K filed on April 14, 2009.




  All inter-company account balances and transactions are eliminated in consolidation.  In January 2009, we discontinued brewing operations at our Chico, California brewery.  In February 2009, we entered into a three (3) year contract brewing agreement with an unrelated brewery located in California and will outsource the brewing and bottling of all our beers in 2009.  As a result of the closure of our brewing facility, we expensed an impairment charge to fixed assets of $82,730 in 2008.  We retained an independent equipment broker to sell our brewery equipment and are obligated to pay him a 10% commission on any completed transactions.  As a result, our property and equipment was fairly valued at $28,142 and 152,589 as of  June 30, 2009 and December 31, 2008, respectively.  Accounts Receivable - Accounts receivable are reported at net realizable value.  The Company has established an allowance for doubtful accounts based on factors pertaining to the credit risk of specific customers, historical trends and other information.   Delinquent accounts are written-off when it is determined that the amounts are uncollectible.   10   Inventory  

-

Inventory is stated at the lower-of-average cost or market computed on a first-in first-out basis.  Inventory values as of June 30, 2009 and December 31, 2008 are classified as follows:    Inventory Class20092008Finished Product$    86,201$    34,550Manufacturing Materials19,63263,925Goods in Process11,020Total$  105,833$  109,495  Fixed Assets  Fixed assets are valued at historical cost less accumulated depreciation.  Depreciation is computed on a straight-line basis.  Fixed Assets values net of accumulated depreciation as of June 30, 2009 and December 31, 2008 are classified as follows:  Fixed Asset ClassLifeJune 30, 2009December 31, 2008Assets held for salen/a$  

28,142$  

152,590Totals$  28,142$  152,590  As a result of the closure of our brewing facility, we expensed an impairment charge to fixed assets of $82,730 in 2008.  We retained an independent equipment broker to sell our brewery equipment and are obligated to pay him a 10% commission on any completed transactions.   In May 2009, we entered into an agreement to sell the majority of our brewing equipment for $170,000 and completed the transaction in June 2009.    Our property and equipment was fairly valued at $28,142 and $152,590 as of June 30, 2009 and December 31, 2008, respectively.  Our Assets Held For Sale were located in our former brewing facility in Chico, California.  Our landlord filed suit against us for back rent in February 2009.   We reached a settlement of this lawsuit in March 2009.  The settlement requires us to pay rent on a month-to-month basis to retain possession of these premises.  Income Recognition - The Company recognizes revenues at the point of sale when title to the product changes hands to the buyer.  Accounting Estimates - The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes. The actual results could differ from those estimates. The Company's financial statements are based upon a number of significant estimates including the allowance for doubtful accounts, inventory valuation, amortization, impairment of assets and the carrying value of our marketable securities.   Due to the uncertainties inherent in the estimation process, it is at least reasonably possible that the estimates for these items could be further revised in the near term and such revisions could be material.  Financial Instruments - The Company discloses fair value information about financial instruments when it is practicable to estimate that value. The carrying value of the Company's cash, cash  11   equivalents, and accounts payable approximate their estimated fair values due to their short-term maturities.  Concentrations of Credit Risk - Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and advances. At June 30, 2009 and December 31, 2008, the Company had no amounts of cash or cash equivalents in financial institutions in excess of amounts insured by agencies of the U.S. Government.  Valuation of Long-Lived Assets - The Company evaluates the carrying value of long-lived assets to be held and used whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The carrying value of a long-lived asset is considered impaired when the projected undiscounted future cash flows are less than its carrying value. The Company measures impairment based on the amount by which the carrying value exceeds the fair market value. Fair market value is determined primarily using the projected cash flows discounted at a rate commensurate with the risk involved. Losses on long-lived assets to be disposed of are determined in a similar manner, except that fair market values are reduced for the cost to dispose.  Income Taxes - The Company recognizes deferred tax assets and liabilities for temporary differences between the tax bases of assets and liabilities and the amounts at which they are carried in the financial statements, the effect of net operating losses, based upon the enacted tax rates in effect for the year in which the differences are expected to reverse. A valuation allowance is established when necessary to reduce deferred tax assets to the amount expected to be realized.  Intangibles - Intangibles consists of goodwill, trade names and trademarks. Intangibles other than goodwill are amortized using the straight-line method over the estimated useful life of the intangibles. The $25,000 of acquired intangible assets relate to trade names and trademarks that had an expected remaining useful life of approximately five years at the time of their purchase in August 2005 are being amortized over a 5-year period.  In addition, we have capitalized an additional $13,906 in costs associated with the development of our registered trademark portfolio that are also being amortized over a 5-year period.    Assets determined to have indefinite lives are no longer amortized in accordance with SFAS No. 142, "Goodwill and Other Intangibles," but are tested for impairment on an annual basis.  Recent Accounting Pronouncements - There were various accounting standards and interpretations issued during 2009 and 2008, none of which are expected to have a material impact on the Company's consolidated financial position, operations or cash flows.  Per Share Information - Per share information is computed by dividing the net income or loss by the weighted average number of shares outstanding during the period.  Cash and Cash Equivalents- The Company considers cash and cash equivalents to consist of cash on hand and demand deposits in banks with an initial maturity of 90 days or less.  Risks and Uncertainties - The Company is subject to substantial business risks and uncertainties inherent in starting a new business. There is no assurance that the Company will be able to generate sufficient revenues or obtain sufficient funds necessary for launching a new business venture.  Basis of Presentation - Going Concern - Generally accepted accounting principles in the United States of America contemplates the continuation of the Company as a going concern. However, the  12   Company has sustained losses from operations, and has a net working capital deficit and is in default on significant commitments, which raise substantial doubt about the Company's ability to continue as a going concern.   Management of the Company believes that the additional capital from the proposed public offering and improved results from operations will be sufficient for the continued viability of the company, however there can be no assurance that either will occur.  In view of these matters, realization of certain of the assets in the accompanying balance sheet is dependent upon continued operations of the Company, which in turn is dependent upon the Company's ability to meet its financial requirements, raise additional capital, and the success of its future operations.  2.  Restatement of Previously Issued Consolidated Financial Statements  On December 31, 2008, John C. Power, the Companys CEO and significant shareholder, forgave $191,800 of debt and accrued interest.  The Company originally recorded this amount as a gain on debt forgiveness in its consolidated statements of operations. Forgiveness of debt and accrued interest by a related party should be accounted for as a contribution of capital and accordingly, the Company has restated its 2008 consolidated financial statements to reflect this $191,800 increase in net loss and $191,800 increase in additional paid-in capital, summarized as follows:  13    Consolidated Balance Sheet Effects of 2008 Restatement

:  December 31, 2008Originally

ReportedRestatementRestated AmountTotal Assets$ 514,091$



-$ 514,091Total Liabilities1,934,318-1,934,318Stockholders Equity:Preferred stock30-30Common stock340-340Additional paid-in capital1,706,215191,8001,898,015Accumulated (deficit)(3,126,812)(191,800)(3,318,612)Total Liabilities and Stockholders Deficit$ 514,091$



-$ 514,091  On June 15, 2009, John C. Power and three other significant shareholders forgave $139,295 of debt and accrued interest payable. The Company originally recorded this amount as a gain on debt forgiveness in its consolidated statements of operations. Forgiveness of debt and accrued interest by a related party should be accounted for as a contribution of capital and accordingly, the Company has restated its June 30, 2009 consolidated financial statements to reflect this $139,295 decrease in net income and $139,295 increase in additional paid-in capital, summarized as follows:  Consolidated Statement of Operations Effects of 2009 Restatement: Consolidated Statement of Operations for the Three Months Ended June 30, 2009Originally
ReportedRestatementReclassificationsRestated
Amount(a)Revenues$72,681$-$-$72,681Cost of sales66,712--66,712Gross profit5,969--5,969Operating (expenses) applicable to continuing operations(123,924)-67,469(56,455)Other income (expense) applicable to continuing operations256,075(139,295)(67,469)49,311Income (loss) from continuing operations138,120(139,295)-(1,175)Income from discontinued operations64,862--64,862Net income$202,982$(139,295)$-$63,687Preferred dividends------Net income (loss) attributable to common shareholders$202,982$(139,295)$-$(7,144)Basic and diluted net income (loss) per share$0.02$(0.02)$-$(0.00)Net income (loss) attributable to continuing operations$138,120$(139,295)$-$(1,175)Basic and diluted net income (loss) per share$0.02$(0.02)$-$(0.00)Net income attributable to discontinued operations$64,862$-$-$64,862Basic and diluted net income per share$0.01$-$-$0.01Basic and diluted weighted average shares outstanding6,322,411--6,322,411  14     (a) Certain amounts have been reclassified in the three months ended June 30, 2009 consolidated financial statements to conform to the 2009 consolidated financial statements included in the Companys 2009 Form 10-K filed on May 4, 2010. Such reclassifications had no effect on the Companys three months ended June 30, 2009 net income. Consolidated Statement of Operations for the Six Months Ended June 30, 2009Originally
ReportedRestatementReclassificationsRestated
Amount(a)Revenues$115,241$-$-$115,241Cost of sales108,995--108,995Gross profit6,249--6,249Operating (expenses) applicable to continuing operations(208,866)-84,922(123,944)Other income (expense) applicable to continuing operations209,055(139,295)(84,922)(15,162)Income (loss) from continuing operations6,435(139,295)-(132,860)Income from discontinued operations24,135--24,135Net income (loss)$30,570$(139,295)$-$(108,725)Preferred dividends------Net income (loss) attributable to common shareholders$30,570$(139,295)$-$(108,725)Basic and diluted net income (loss) per share$0.01$(0.03)$-$(0.02)Net income (loss) attributable to continuing operations$6,435$(139,295)$-$(132,860)Basic and diluted net income (loss) per share$0.00$(0.03)$-$(0.03)Net income attributable to discontinued operations$24,135$-$-$24,135Basic and diluted net income per share$0.00$-$-$0.00Basic and diluted weighted average shares outstanding4,871,528--4,871,528 (a) Certain amounts have been reclassified in the six months ended June 30, 2009 consolidated financial statements to conform to the 2009 consolidated financial statements included in the Companys 2009 Form 10-K filed on May 4, 2010. Such reclassifications had no effect on the Companys six months ended June 30, 2009 net loss.   Consolidated Balance Sheet Effects of 2008 and 2009 Restatement:  Consolidated Balance Sheet as of June 30, 2009Originally

ReportedRestatementReclassificationsRestated AmountTotal Assets$     261,995$              -$                   -$        261,995Total Liabilities1,139,737--1,139,737Stockholders Equity:Common stock2,000--2,000Additional paid-in capital2,216,500331,095-2,547,595Accumulated (deficit)(3,096,242)(331,095)-(3,427,337)Total Liabilities and Stockholders Deficit$    261,995$               -$                



-$       261,995   15   Consolidated Statement of Cash Flows Effects of 2009 Restatement:  Consolidated Statement of Cash Flows for the six months ended June 30, 2009Originally

ReportedRestatementReclassificationsRestated AmountCash Flows from Operating Activities:(a)Net income (loss)$ 30,570$ (139,295)$



-$ (108,725)Net cash (used in) operating activities(26,811)(139,295)100,129(65,977)Net cash from (used in) investing activities117,501-74,818192,319Net cash from financing activities(92,009)139,295(174,947)(127,661)Increase (Decrease) in Cash and Cash Equivalents$      (1,319)--$         (1,319)Cash and Cash Equivalents, beginning of period21,201--21,101Cash and Cash Equivalents, end of period$ 19,882$

              

-$

               

-$ 19,882 (a) Certain amounts have been reclassified in the June 30, 2009 consolidated financial statements to conform to the 2009 consolidated financial statements included in the Companys 2009 Form 10-K filed on May 4, 2010. Such reclassifications had no effect on the Companys six months ended June 30, 2009 net loss.  3




..  Marketable Securities  In 2008, we formed a wholly-owned Washington subsidiary, Golden West Brewing, Inc. which is engaged in the business of investing in speculative securities.   The following table sets forth marketable securities owned as of June 30, 2009 together with a presentation of gains and/or losses for the

 three and

 six month period

s

 ending June 30, 2009.  Shares
HeldSecurityHistorical
CostMarket
Value @




12/31/08Market
Value @ 6/30/09Realized
Gain/(Loss)
3 mos

 ended

June 30,




 2009Realized
Gain/(Loss)
6 mos

 ended

June 30,




 20091,000AECFF$ 12,150$             

-$



 11,470$     (680)$     





(680)50,000AHT.A5,005-4,475(64)(64)5,000TRMA9,740-$

  

17,150(2,590)(2,590)7,000MENB1,440-1,120(70)(320)SoldEPEXP114,28632,126-(2,465)(15,473)SoldDTG22,34624,198-103,883105,437SoldSLG.C16,87517,628--(





5,998

)Total$ 154,947$

   





73,952$

    

34,215$     




98,014$     




80,312   16    4

..

Lines of Credit,

Advances and Notes Payable:    Between March and September 2005, the Company borrowed a total of $125,000 from three lenders: $50,000 in July 2005 from Power Curve, Inc. (a company controlled by John Power); $50,000 in May 2005 from Lone Oak Vineyards, Inc. (a company controlled by Brian Power); and $25,000 in March 2005 from Tiffany Grace, an unaffiliated party.  The loans were used to pay off Butte Creek's loans to Tri County Economic Development Corporation, purchase additional equipment and provide working capital. The Tiffany Grace note, which was executed on September 9, 2005 accrued interest at the rate of 9% per annum, was payable in monthly payments of principal and interest based upon a five year amortization, was due in full March, 2008.  As of June 30, 2009, the principle balance of the Power Curve, Inc. note was $2,000 with accrued interest of $7,920.  The other notes and all accrued interest have been paid from the proceeds of equipment sales.  On December 30, 2005, John Power and Power Curve, Inc. converted $215,000 and $90,000, respectively, in outstanding advances into collateralized long-term debt. The notes bear interest at 9% and matured December 31, 2008 and are collateralized by a security interest covering all of our tangible and intangible assets but are junior to the security interest granted to Power Curve, Inc. ($50,000), Lone Oak Vineyards, Inc. ($25,000), Dayton Misfeldt Trust ($25,000) and Tiffany Grace ($25,000) in September 2005 described above.  As of June 30, 2009, these notes had current maturities of $131,700 and $90,000 respectively and had accrued interest of $21,076 and $16,200 respectively.  During the three months ended June 30, 2009

net

payments of $83,300 were made to John Power on this note.  As part of the acquisition of Butte Creek, the Company assumed an $8,136 note payable to Bruce Detweiler, a member of Butte Creek.  As of June 30, 2009 the note had accrued interest of $5,132.  During the twelve months ended December 31, 2007, John Power and Power Curve, Inc. made advances to the Company of $115,000 and $155,000, respectively. The advances were uncollateralized and due on demand.  On December 31, 2007, John Power and Power Curve, Inc. converted these advances of $115,000 and $155,000, respectively, into collateralized long-term debt. The notes bear interest at 8% and matured on December 31, 2008 and are collateralized by all tangible and intangible assets but junior to all prior perfected liens against those assets.  On December 31, 2008 John Power forgave the $115,000 debt, plus $

16,100




 in accrued interest, and Power Curve forgave $55,000 of its debt, plus the $5,700 portion of accrued interest.  Consequently, as of June 30, 2009, these notes had current maturities of $0 and $100,000 respectively and had accrued interest of $0 and $20,000 respectively.  Effective September 4, 2007, the following transactions were completed: 1. John C. Power and Power Curve, Inc. (collectively Power), the former being the President, Director and principal shareholder of the Company, assigned to Shana Capital Ltd., a Colorado corporation

 and significant shareholder

 (Shana Capital) an advance owed to Power by the Company in the amount of $112,500. 2. Power assigned to Webquest, Inc., a Colorado corporation

and significant shareholder

(Webquest) an advance owed to Power by the Company in the amount of $112,500. 3. Shana Capital and Webquest each executed and delivered an Agreement to Convert Debt pursuant to which each agreed to convert their respective Advances owed to them by the Company that had been acquired from Power in the amount of $112,500 into 150,000 shares of Series A Convertible Preferred Stock of the Company (the Series A Preferred Stock), or an aggregate of 300,000 shares of Series A Preferred Stock, valued at $0.75 per share. The Company had previously issued an aggregate of 300,000 shares of Series A Convertible Preferred Stock to two non-affiliated investors and, effective June 15, 2009 the Company agreed to lower the conversion price of the Series A Convertible Preferred Stock from $0.75 per share to $0.04 per share.  Both of the investors agreed to convert their Series A Preferred Convertible Stock into an aggregate of 4,500,000 shares of the Companys



common stock at the revised conversion price.  In January, 2008, the Company issued a convertible debenture to represent a portion of its outstanding indebtedness to its legal counsel.  The debenture was $30,000 and was not collateralized and was repayable, together with interest at the rate of 8% per annum, on or before December 31, 2008.  The debenture was convertible, at the option of the holder, into shares of the Companys common stock at a conversion price of $0.60 per share



..  On June 15, 2009, the Company entered into an Agreement to Convert Debt with Clifford L. Neuman, PC, the Companys legal counsel, pursuant to which Clifford L. Neuman, PC agreed to accept, and the Company agreed to issue, 2,500,000 shares of common stock







in satisfaction of $70,000 in accrued and unpaid fees for services rendered in the capacity of legal counsel and $30,000 under a convertible debenture.  All accrued and unpaid interest under the debenture was waived.  The




s

hares were valued at $0.04 per share

..  In March, 2008, the Company borrowed the principal sum of $50,000 from one lender, the proceeds of which were used for working capital.  The note is repayable, together with interest at the rate of 10% per annum, on or before May 31, 2008.  The promissory note is collateralized by a UCC security interest against the Companys inventory and accounts receivable associated with the launch of its new brand Blue Marble Organic Pilsner.  The loan is guaranteed by of John C. Power, the Companys Chief Executive Officer.  As of June 30, 2009, the balance of this note and all accrued interest was paid in full.  Effective December, 2008,




GWB-WA

 issued a note in the principal amount of $200,000 to evidence a note.    The note accrues interest at the rate of 6% per annum and was due and payable, in full, on December 31, 2009.  The note was convertible, at the option of the holder, into shares of the Companys common stock at a conversion price equal to $0.10 per share



..   The note was collateralized by the marketable securities held by

GWB-WA




 and 100% of the common stock of

GWB-WA




..  

The note was  17   issued to a significant shareholder.  The fair value of the beneficial conversion feature applicable to this note represents deferred financing fees and was valued using the Black Scholes pricing model at the date the note was issued. The total value of the beneficial conversion was $75,630 and was credited to additional paid-in capital and charged to deferred financing fees.  On June 15, 2009, the Company entered into an Agreement to Convert Debt with

the shareholder




, pursuant to which the




shareholder

 agreed to accept, and the Company agreed to issue, 1,665,000 shares of common stock






in satisfaction of $83,250 in principal amount owed by

this significant shareholder




..  All accrued and unpaid interest

 applicable to the $83,250

 as of June 15, 2009 was waived and forgiven.






The




s

hares were valued at $0.04 per share and the




C

ompany recorded a gain of the forgiveness of debt in the amount of $16,650

 applicable to principal and $1,972 applicable to interest payable; these amounts are recorded as additional paid-in capital in our restated consolidated financial statements.








Simultaneously, the remaining balance on the note of $100,000 became due and payable on June 30, 2009.

 Accrued interest payable was $3,851 at June 30, 2009.

  In July 2009, an additional $60,000 was paid on this note from the sale of securities.  On April 28, 2009, Butte Creek Brands, LLC, a Delaware limited liability company

(



BCB




) a wholly-owned subsidiary of

GWB-CA




, itself  a wholly-owned subsidiary of

GWB




 entered into two loans, each evidenced by a Promissory Note (the Notes) pursuant to which

BCB




 borrowed from each of Clifford L. Neuman and John C. Power the principal amount of $24,000.  The Notes are due and payable July 31, 2009.  Each Note is secured by a Security Agreement covering GWB-CAs accounts receivable and the filing of a Uniform Commercial Code financing statement.  The Note in favor of Mr. Neuman is further secured by a personal guaranty of John C. Power.  As of June 30, 2009, the balance on these notes

was




 $24,000 to Neuman plus accrued interest and $10,000 to Power plus accrued interest.






The current balance on the Neuman note is $19,000 plus accrued interest.   The current balance on the Power note is $




10

,000 plus accrued interest.  During the years ended December 31, 2007 and 2008,




an

affiliate



 of Mr. Power made short-term advances to the Company that remained unpaid as of December 31, 2008 and June 30, 2009 in the amounts of $107,425 and $57,181, respectively.   The advances are uncollateralized and due on  18   demand and had total accrued interest of $18,000 and $1,715 as of December 31, 2008 and June 30, 2009, respectively.

On June 15, 2009, the Company entered into an Agreement to Convert Debt with the affiliate of Mr. Power, pursuant to which the affiliate agreed to accept, and the Company agreed to issue, 1,070,475 shares of common stock in satisfaction of $42,189 in principal amount owed by this affiliate.  All accrued and unpaid interest applicable to these advances as of June 30, 2009 was waived and forgiven. The shares were valued at $0.04 per share and the Company recorded a gain of the forgiveness of debt in the amount of $21,000 applicable to interest payable; this amount was recorded as additional paid-in capital in our restated consolidated financial statements.  During the six months ended June 30, 2009, John Power and affiliates of Mr. Power made additional short-term advances to the Company which




has

 a balance of $47,500.  The advances were uncollateralized and due on demand.  Credit Agreement  In December, 2007, the Company entered into a Credit Agreement whereby the Company was extended a line of credit by four individual lenders, including two affiliates, in the maximum principal amount of $350,000.  The Credit Agreement terminated on December 31, 2008.  The outstanding credit balance under the Credit Agreement accrues interest at the rate of 8% per annum and is payable, at the option of the lender, either in cash or in shares of the Companys common stock valued at the then applicable conversion price.  The credit balance was convertible into shares of common stock of the Company at a conversion price equal to 75% of the market price of the Companys common stock on the trading day immediately preceding the conversion date, but in no event is the conversion price to be greater than $1.00 per share or less than $0.25 per share.  The fair value of the beneficial conversion feature represents financing fees for each advance under the Agreement, and are valued using the Black Scholes pricing model at the time the advance is made.  Expected volatility is based on historical trading activity of the Companys common stock, and was calculated at 95% for advances made in 2007.  The risk free interest rate was obtained from published US Treasury data for constant maturity treasury bills and ranged from 3.2% to 5.0%.  The expected life of the conversion feature was determined to be the life of the Credit

Agreement




 which terminated on December 31, 2008.  

The total value of the beneficial conversion features applicable to advances under the Credit Agreement during 2008 and 2007 representing deferred financing fees were $105,660 and $95,270, respectively, which were credited to additional paid-in capital and charged to deferred financing fees associated with the advances under this Agreement.  The Company has also agreed to issue to each lender as a financing fee, 100 shares of common stock for every $1,000 of advances made under the Credit Agreement.   The credit agreement is collateralized by a senior lien and security interest in the Companys tangible and intangible assets.  On June 15, 2009, the Company entered into an Agreement to Convert the Debt under the

Credit Agreement




 with the investors, pursuant to which the investors agreed to accept, and the Company agreed to issue, 6,860,000 shares of common stock






in satisfaction of $343,000 in principal amount owed under

the Credit Agreement




..  All accrued and unpaid interest as of June 15, 2009 was waived and forgiven.   The Shares were valued at $0.04 per share and the Company recorded a gain on the forgiveness of debt in the amount of $




68,600 in principal and $31,072 in accrued interest  19   payable; these amounts were recorded as additional paid-in capital in our restated consolidated financial statements.

..  Lines of Credit -The Company assumed a $25,000 balance on a credit card issued by Wells Fargo Bank, with interest at the rate of 14.25% as of June 30, 2009. The card is uncollateralized and guaranteed by Tom Atmore, Butte Creek

s




 Managing Member and our former general manager. The outstanding balance as of June 30, 2009 was $

21,144 in principal and $1,834 of accrued interest payable, or $

22,978

 total

..  The Company assumed a $15,400 line of credit on a Butte Creek credit card with Bank of America (formerly MBNA) with interest at the rate of 27.98%. The debt on the credit card was uncollateralized but guaranteed by Tom Atmore, our former general manager. In 2009, the lender agreed to a payment of $2,000 as payment in full and forgave the remaining balance of $7,193.  Notes Payable
June 30, 2009Current
PortionLong-Term
PortionAccrued
InterestInterest
RateMaturity
DateCollateralizedLines of CreditWells Fargo (Atmore)$






21,144-$ 1,83414.25%DemandNoTOTAL$21,144-$





1,834Notes Payable  Related PartiesPower Curve, Inc. #1$   2,000-$    7,9209%Sep., 2008YesPower Curve, Inc. #290,000-16,2009%Dec., 2008YesPower Curve, Inc. #3100,000-20,0008%Dec., 2008YesJohn C. Power #1131.700-21,0769%Dec., 2008YesJohn C. Power - BCB10,000-John Gibbs100,000-3,8516%Dec., 2009YesCliff Neuman -BCB24,000--15%July, 2009YesSea Ranch Lodge & Village57,181-1,71512%DemandNoTOTAL$514,881-$70,762Notes Payable - UnaffiliatedB. Detweiller$   

8,136-$  

5,




2948%DemandNoBRK Holdings, LLC17,950-3,29712.246%Nov., 2008No$26,086$-$8,591   The Company has pledged substantially all of its assets to secure some of its notes and obligations. Should the Company default in the payment of these secured notes, the collateral could be subject to forfeiture.  20    5




..      Related Party Transactions  Between March and September 2005, the Company borrowed a total of $125,000 from three lenders: $50,000 in July 2005 from Power Curve, Inc. (a company controlled by John Power); $50,000 in May 2005 from Lone Oak Vineyards, Inc. (a company controlled by Brian Power); and $25,000 in March 2005 from Tiffany Grace, an unaffiliated party.  The loans were used to pay off Butte Creek's loans to Tri County Economic Development Corporation, purchase additional equipment and provide working capital. The Tiffany Grace note, which was executed on September 9, 2005 accrued interest at the rate of 9% per annum, and was payable in monthly payments of principal and interest based upon a five year amortization, and was due in full March, 2008.  As of June 30, 2009, the principle balance of the Power Curve, Inc. note was $2,000 with accrued interest of $7,920.  The other notes and all accrued interest have been paid from the proceeds of equipment sales.  On December 30, 2005, John Power and Power Curve, Inc. converted $215,000 and $90,000, respectively, in outstanding advances into collateralized long-term debt. The notes bear interest at 9% and matured December 31, 2008 and are collateralized by a security interest covering all of our tangible and intangible assets but are junior to the security interest granted to Power Curve, Inc. ($50,000), Lone Oak Vineyards, Inc. ($25,000), Dayton Misfeldt Trust ($25,000) and Tiffany Grace ($25,000) in September 2005 described above.  As of June 30, 2009, these notes had current maturities of $131,700 and $90,000 respectively and had accrued interest of $21,076 and $16,200 respectively.  During the three months ended June 30, 2009 payments of $83,300 were made to John Power on this note.  As part of the acquisition of Butte Creek, the Company assumed an $8,136 note payable to Bruce Detweiler, a member of Butte Creek.  As of June 30, 2009 the note had accrued interest of $

5,294




..  During the twelve months ended December 31, 2007, John Power and Power Curve, Inc. made advances to the Company of $115,000 and $155,000, respectively. The advances were uncollateralized and due on demand.  On December 31, 2007, John Power and Power Curve, Inc. converted these advances of $115,000 and $155,000, respectively, into collateralized long-term debt. The notes bear interest at 8% and matured on December 31, 2008 and are collateralized by all tangible and intangible assets but junior to all prior perfected liens against those assets.  On December 31, 2008 John Power forgave the $115,000 debt, plus $

16,100




 in accrued interest, and Power Curve forgave $55,000 of its debt, plus the $5,700 portion of accrued interest.  Consequently, as of June 30, 2009, these notes had current maturities of $0 and $100,000 respectively and had accrued interest of $0 and $20,000 respectively.  Effective September 4, 2007, the following transactions were completed: 1. John C. Power and Power Curve, Inc. (collectively Power), the former being the President, Director and principal shareholder of the Company, assigned to Shana Capital Ltd., a Colorado corporation

 and significant shareholder

 (Shana Capital) an advance owed to Power by the Company in the amount of $112,500. 2. Power assigned to Webquest, Inc., a Colorado corporation

 and significant shareholder

 (Webquest) an advance owed to Power by the Company in the amount of $112,500.  21   3. Shana Capital and Webquest each executed and delivered an Agreement to Convert Debt pursuant to which each agreed to convert their respective Advances owed to them by the Company that had been acquired from Power in the amount of $112,500 into 150,000 shares of Series A Convertible Preferred Stock of the Company (the Series A Preferred Stock), or an aggregate of 300,000 shares of Series A Preferred Stock, valued at $0.75 per share. The Company had previously issued an aggregate of 300,000 shares of Series A Convertible Preferred Stock to




these two

 investors and, effective June 15, 2009 the Company agreed to lower the conversion price of the Series A Convertible Preferred Stock from $0.75 per share to $0.04 per share.  Both of the investors agreed to convert their Series A Preferred Convertible Stock into an aggregate of 4,500,000 shares of the Companys



common stock at the revised conversion price.  In January, 2008, the Company issued a convertible debenture to represent a portion of its outstanding indebtedness to its legal counsel.  The debenture was in the principal amount of $30,000 and was not collateralized and was repayable, together with interest at the rate of 8% per annum, on or before December 31, 2008.  The debenture was convertible, at the option of the holder, into shares of the Companys common stock at a conversion price of $0.60 per share



..  On June 15, 2009 the balance of the debenture and $70,000 of accounts payable to its legal counsel were converted to 2,500,000 shares of common stock at $.04 per share.  All accrued interest was forgiven

..  In March, 2008, the Company borrowed the principal sum of $50,000 from one lender, the proceeds of which were used for working capital.  The note is repayable, together with interest at the rate of 10% per annum, on or before May 31, 2008.  The promissory note is collateralized by a UCC security interest against the Companys inventory and accounts receivable associated with the launch of its new brand Blue Marble Organic Pilsner.  The loan is guaranteed by of John C. Power, the Companys Chief Executive Officer.  As of June 30, 2009, the balance of this note and all accrued interest was paid in full.  Effective December, 2008,




GWB-WA

 issued a note in the principal amount of $200,000 to evidence a note.    The note accrues interest at the rate of 6% per annum and is due and payable, in full, on December 31, 2009.  The note was convertible, at the option of the holder, into shares of the Companys common stock at a conversion price equal to $0.10 per share



..   The note was collateralized by the marketable securities held by

GWB-WA




 and 100% of the common stock of

GWB-WA




..

 The note was issued to a significant shareholder.  The fair value of the beneficial conversion feature applicable to this note represents deferred financing fees and was valued using the Black Scholes pricing model at the date the note was issued.   The total value of the beneficial conversion was $75,630 and was  22   credited to additional paid-in capital and charged to deferred financing fees.  On June 15, 2009, the Company entered into an Agreement to Convert Debt with a



 related party investor, pursuant to which the investor agreed to accept, and the Company agreed to issue, 1,665,000 shares of common stock



 in satisfaction of $83,250 in principal amount owed by

 this significant investor




..  All accrued and unpaid interest

 applicable to this $83,250

 as of June 15, 2009 was waived and forgiven.   The Shares were valued at $0.04 per share

 and the Company recorded a




 a gain on the forgiveness of debt in the amount of $16,650

 applicable to principal and $1,972 applicable to interest payable; these amounts were recorded as additional paid-in capital in our restated consolidated financial statements.  




Simultaneously, the remaining balance on the note of the $100,000 became due and payable on June 30, 2009.  

Accrued interest payable was $3,851 at June 30, 2009.  

In July 2009, an additional $60,000 was paid on this note from the sale of securities.  On April 28, 2009, Butte Creek Brands, LLC, a Delaware limited liability company 

BCB




) a wholly-owned subsidiary of

GWB-CA




, itself  a wholly-owned subsidiary of

GWB




 entered into two loans, each evidenced by a Promissory Note (the Notes) pursuant to which

BCB




 borrowed from each of Clifford L. Neuman and John C. Power the principal amount of $24,000.  The Notes are due and payable July 31, 2009.  Each Note is secured by a Security Agreement covering GWB-CAs accounts receivable and the filing of a Uniform Commercial Code financing statement.  The Note in favor of Mr. Neuman is further secured by a personal guaranty of John C. Power.  As of June 30, 2009, the balance

s

 on these notes




were

 $24,000 to Neuman plus accrued interest and $10,000 to Power plus accrued interest.  The current balance on the Neuman note is $19,000 plus accrued interest.   The current balance on the Power note is $




10

,000 plus accrued interest.  During the years ended December 31, 2007 and 2008, affiliates of Mr. Power made short-term advances to the Company that remained unpaid as of December 31, 2008 and June 30, 2009 in the amounts of $107,425 and $57,181, respectively.   The advances are uncollateralized and due on demand and had total accrued interest of $18,000 and $1,715 as of December 31, 2009



 and June 30,  23   2009, respectively.

On June 15, 2009, the Company entered into an Agreement to Convert Debt with the affiliate of Mr. Power, pursuant to which the affiliate agreed to accept, and the Company agreed to issue, 1,070,475 shares of common stock in satisfaction of $42,189 in principal amount owed by this affiliate.  All accrued and unpaid interest applicable to these advances as of June 30, 2009 was waived and forgiven. The shares were valued at $0.04 per share and the company recorded a gain of the forgiveness of debt in the amount of $21,000 applicable to interest payable; this amount was recorded as additional paid-in capital in our restated consolidated financial statements.  During the three months ended June 30, 2009, John Power and affiliates of Mr. Power made additional short-term advances to the Company and its subsidiaries which have a balance of $47,500.  The advances were uncollateralized and due on demand.  Credit Agreement  In December, 2007, the Company entered into a Credit Agreement whereby the Company was extended a line of credit by four individual lenders, including two affiliates, in the maximum principal amount of $350,000.  The Credit Agreement terminated on December 31, 2008.  The outstanding credit balance under the Credit Agreement accrues interest at the rate of 8% per annum and was payable, at the option of the lender, either in cash or in shares of the Companys common stock valued at the then applicable conversion price.  The credit balance is convertible into shares of common stock of the Company at a conversion price equal to 75% of the market price of the Companys common stock on the trading day immediately preceding the conversion date, but in no event is the conversion price to be greater than $1.00 per share or less than $0.25 per share.  The fair value of the beneficial conversion feature represents financing fees for each advance under the Agreement, and are valued using the Black Scholes pricing model at the time the advance is made.  Expected volatility is based on historical trading activity of the Companys common stock, and was calculated at 95% for advances made in 2007.  The risk free interest rate was obtained from published US Treasury data for constant maturity treasury bills and ranged from 3.2% to 5.0%.  The expected life of the conversion feature was determined to be the life of the Credit

Agreement




 which terminated on December 31, 2008.



  

The total value of the beneficial conversion features applicable to advances under the Credit Agreement during 2008 and 2007 representing deferred financing fees were $105,660 and $95,270, respectively, which were credited to additional paid-in capital and charged to deferred financing fees associated with the advances under this Agreement.  The Company has also agreed to issue to each lender as a financing fee, 100 shares of common stock for every $1,000 of advances made under the Credit Agreement.   The credit agreement is collateralized by a senior lien and security interest in the Companys tangible and intangible assets.  The lenders under the credit agreement are John C. Power, John Gibbs, Shana Capital and Clifford L. Neuman, the Companys legal counsel.  On June 15, 2009, the Company entered into an Agreement to Convert the Debt under the credit facility with the investors, pursuant to which the investors agreed to accept, and the Company agreed to issue, 6,860,000 shares of common stock



 in satisfaction of $343,000 in principal amount owed under a Credit

Agreement




..  All accrued and unpaid interest as of June 15, 2009 was waived and forgiven.   The Shares were valued at $0.04 per share and the Company recorded a gain on the forgiveness of debt in the amount of  24   $




68,600 in principal and $31,072 in accrued interest payable; these amounts were recorded as additional paid-in capital in our restated consolidated financial statements.  These related party transactions have not been evaluated for fairness.  6




..     Operating Leases  Effective July 1, 2005, the Company entered into a five year lease for office and warehouse space in Chico, California for Butte Creek. The lease provided for initial monthly rent of $3,150, which increased to $3,726 in July 2006 and is subject to annual increases every year starting in July 2007 based on the Consumer Price Index, and expires in 2010.  On February 9, 2009, BRK Holdings, LLC (landlord) filed suit against us for 4 months of delinquent rent of $14,904 and legal fees of $800.  We have negotiated a settlement that allows us to retain possession of the premises by paying rent on a month-to-month basis.  We have paid rent in March - July 2009 and rent is due each month thereafter by the 5th of that month as long as the premises remain in our possession.  We are still liable for the delinquent rent amount of $14,904, legal fees of $800 and future rents due under the lease.  7




..     Commitments & Contingencies  A.  Delinquent Taxes At June 30, 2009, the Company had outstanding payroll tax liabilities of $43,702. Of these amounts $41,915 are considered delinquent. California Redemption Value (CRV) is a tax collected on all package sales to retailers, processed through the California Department of Conservation and refunded through the State's recycling program. The United States Tax and trade Bureau ("TTB"), and various state agencies collect excise taxes often referred to as "alcohol taxes" with the amount based on the volume of beer sold. At June 30, 2009, the Company had alcohol related taxes payable to federal and state taxing authorities of $6,129. The detail of those taxes payable is as follows: June 30, 2009Tax AgencyDueDelinquentInternal Revenue Service$  42,623$   41,915PAYROLL TAXESCA Employment Development Department$    1,079$           0PAYROLL TAXESFederal Tax and Trade Bureau$    2,706$     2,706EXCISE TAXCA Board of Equalization$    (364)$           0EXCISE TAXCA Board of Equalization$          0$           0SALES AND USE TAXCA Department of Conservation$   24,190$   24,190CRV TAX  25    CA Franchise Tax Board$   6,600$   6,600FRANCHISE TAXESButte County Tax Collector$  3,558$        0PROPERTY TAXES Most of these delinquent taxes payable have been assumed by the Company in connection with our acquisition of Butte Creek as the continuation of regulatory compliance is material to the Company's ability to continue as a going concern.  The Company has entered into monthly payment plans with all of the aforementioned agencies. Continued operations could be severely impaired should the Company default on its payment plans with the IRS or any other governmental agency seek to collect any of the delinquent payables before we are able to pay them.  B. There are two material legal proceedings in which either we or any of our affiliates were involved in 2009 which could have a material adverse effect on our business, financial condition or future operations.  1. On January 6, 2009, Capital Beverage Co. and Capital Coors Co. (Capital) filed suit against Crown Imports LLC, Butte Creek Brewing Company and Bison Brewing Company alleging that the defendants had unlawfully cancelled their distribution contracts with Capital.   Capital is seeking damages equal to fair market value of the respective brands.    This amount is expected not to exceed $75,000.  We intend to vigorously defend this lawsuit but a contingency exists as to the ultimate outcome in this matter.  2. On February 9, 2009, BRK Holdings, LLC (landlord) filed suit against us for 4 months of delinquent rent of $14,904 and legal fees of $800.  We have negotiated a settlement that allows us to retain possession of the Chico brewery premises by paying rent on a month-to-month basis.  We have paid rent in March - July 2009 and rent is due each month thereafter by the 5th of that month as long as the premises remain in our possession.  We are still liable for the delinquent rent amount of $14,904, legal fees of $800 and future rents due under the lease.   8




..     Common and Preferred Stock:  PREFERRED STOCK  Effective September 4, 2007, the following transactions were completed: 1   John C. Power and Power Curve, Inc. (collectively Power), the former being the President, Director and principal shareholder of the Company, assigned to Shana Capital Ltd., a Colorado corporation

 and significant shareholder

 (Shana Capital) an advance owed to Power by the Company in the amount of $112,500. 2.  Power assigned to Webquest, Inc., a Colorado corporation

 and significant shareholder

 (Webquest) an advance owed to Power by the Company in the amount of $112,500. 3




..  Shana Capital and Webquest each executed and delivered an Agreement to Convert Debt pursuant to which each agreed to convert their respective Advances owed to them by the Company that had been acquired from Power in the amount of $112,500 into 150,000 shares of Series A Convertible Preferred Stock of the Company (the Series A Preferred Stock), or an aggregate of 300,000 shares of Series A Preferred Stock, valued at $0.75 per share. The Company had previously issued an aggregate of 300,000 shares of Series A Convertible Preferred Stock to




these two

 investors and, effective June 15, 2009 the Company agreed to lower the conversion price of the Series A Convertible Preferred Stock from $0.75 per share to $0.04 per share.  Both of the investors agreed to convert their Series A Preferred Convertible Stock into an aggregate of 4,500,000 shares of the Companys



common stock at the revised conversion price

.. COMMON STOCK  In December, 2007, the Company entered into a Credit Agreement with four individuals providing for a revolving line of credit in the maximum principal amount of $350,000.  The Company agreed to pay a financing fee in the form of 100 shares of common stock for every $1,000 in advances made under the Credit Agreement.  A total of 19,300 shares were issued in 2008 under this agreement.   As of June 30, 2009, the Company has borrowed $343,000 under the Credit Agreement and has issued an aggregate of 34,300 shares of common stock as a financing fee.  On June 15, 2009, the Company entered into an Agreement to Convert the Debt under the credit facility with the investors, pursuant to which the investors agreed to accept, and the Company agreed to issue, 6,860,000 shares of common stock



 in satisfaction of $343,000 in principal amount owed under a Credit

Agreement




..  All accrued and unpaid interest as of June 15, 2009 was waived and forgiven.   The Shares were valued at $0.04 per share and the Company recorded a gain on the forgiveness of debt in the amount of $




68,600 in principal and $31,072 in accrued interest payable; these amounts were recorded as additional paid-in capital in our restated consolidated financial statements.  




This investor group included several




related

 parties.  On January 15, 2008




, the Company issued a Convertible Debenture in the principal amount of $30,000 evidencing a portion of its outstanding account payable in favor of its legal counsel.  The Debenture was convertible at the option of the holder into shares of common stock at a conversion price equal to $0.60 per share. On June 15, 2009, the Company entered into an Agreement to Convert Debt with Clifford L. Neuman, PC, the Companys legal counsel, pursuant to which Clifford L. Neuman, PC agreed to accept, and the Company agreed to issue, 2,500,000 shares of common stock



 in satisfaction of $70,000 in accrued and unpaid fees for services rendered in the capacity of legal counsel and $30,000 under a convertible debenture.  All accrued and unpaid interest under the debenture was waived.  The




s

hares were valued at $0.04 per share

..  Effective March, 2008, the Company issued an aggregate of 5,000 shares of common stock to one investor as a financing fee for a loan to the Company in the principal amount of $50,000.  In September 2008, the Company issued an aggregate of 21,225 shares to three unrelated individuals at $0.30 per share as settlement of an unpaid trade payable.  In 2008, the Company granted and issued an aggregate of 24,000 shares of common stock:  12,000 to its President, Mark Simpson; and, 12,000 shares to its Chief Financial Officer of a wholly-owned subsidiary.  The shares were issued for services for the 12



month period ended December 31, 2008.  On June 15, 2009, the Company entered into an Agreement to Convert Debt with an entity controlled by John C. Power, pursuant to which the entity agreed to accept, and the Company agreed to issue, 1,070,475 shares of common stock



 in satisfaction of $42,819 in principal debt

..




  

All accrued and unpaid interest applicable to these advances as of June 30, 2009 was waived and forgiven.




The Shares were valued at $0.04 per share

 and the Company recorded a gain of the forgiveness of debt in the amount of $21,000 applicable to interest payable; this amount was recorded as additional paid-in capital in our restated consolidated financial statements.  On June 15, 2009, the Company entered into an Agreement to Convert Debt with an related party investor, pursuant to which the investor agreed to accept, and the Company agreed to issue, 1,665,000 shares of common stock



 in satisfaction of $83,250 in principal amount owed by

 the significant investor




..  All accrued and unpaid interest

 applicable to this $83,250

 as of June 15, 2009 was waived and forgiven.   The Shares were valued at $0.04 per share




and the Company recorded a gain on the forgiveness of debt in the amount of $16,650 applicable to principal and $1,972 applicable to interest payable; these amounts were recorded as additional paid-in capital in our restated consolidated financial statements.  The Company had previously issued an aggregate of 300,000 shares of Series A Convertible Preferred Stock to two




significant shareholders




 and, effective June 15, 2009 the Company agreed to lower the conversion price of the Series A Convertible Preferred Stock from $0.75 per share to $0.04 per share.  Both of the

shareholders




 agreed to convert their Series A Preferred Convertible Stock into an aggregate of 4,500,000 shares of the Companys



common stock at the revised conversion price.  9

..     Income Taxes  The Company has an estimated net operating loss carry forward






of approximately $




3,381,838 (restated)

 as of



 December 31, 2008,  to offset future taxable income. The net operating loss carry forward, if not used, will expire in various  26   years through 2025, and may be restricted if there is a change in ownership. No deferred income taxes have been recorded because of the uncertainty of future taxable income to be offset.  Significant components of the Company's net deferred income tax asset are as follows: Six Months Ended June 30,




 2009 (Restated)Prior Years(Restated)Net operating



loss



 carry forward$  




(108,725)$  (




3,381,838

)Effective Tax rate37.5

%37.5

%Deferred income tax

 asset65,2851,268,189Deferred income tax allowance(65,285)(




1,268,189

)Net deferred income tax asset$

   

              -$ 

       

           -  The reconciliation of income tax (benefit) computed at the federal statutory rate to income tax expense (benefit) for all periods presented is as follows:  Tax (benefit) at Federal statutory rate(




34.0

)%State tax (benefit) net of Federal benefit(3

..5)





%Valuation allowance37.5%Tax provision (benefit)   10




..       Equity Incentive Plan:  On December 10, 2004, we adopted our 2004 Equity Incentive Plan for our officers, directors and other employees, plus outside consultants and advisors.  That in consideration of their services to the Company, certain consultants, employees, officers and directors were granted non-qualified stock options exercisable to purchase, in the aggregate 400,000 shares of common stock at an exercise price of $0.50 per share.  The foregoing options are exercisable until December 31, 2012, their Expiration Date.  The foregoing options are subject to vesting and become exercisable 50% on the date of grant; 16.67% on July 31, 2007; 16.67% on July 31, 2008; and 16.67% on July 31, 2009,  subject to the holder continuing to serve in their positions with the Company, or in some other capacity as shall be approved by the Company and the holder, on each vesting date.  Options vest over 5 years and the expense for the three and six month periods ended June 30, 2009 was $3,338 and $6,676, respectivel

y




 .  The options were granted to five persons who serve as directors, employees or consultants to the Company.  Presently only one of the five original recipients is still with the Company.  The one remaining option holder still with the Company has 50,000 options.   All of the other options have expired except for 75,000 options that were vested to Scott Burchell as part of his separation agreement with the Company.  The options held by Burchell will expire on August 8, 2011. The shares issuable upon exercise of the options will be restricted securities within the meaning of Rule 144 under the Securities Act of 1933, as amended.  27    Under the Equity Incentive Plan, our employees, outside consultants and advisors may receive awards of non-qualified options and incentive options, stock appreciation rights or shares of stock. A maximum of 500,000 shares of our common stock are subject to the Equity Incentive Plan. No stock appreciation rights, options or bonus stock have been granted under the Equity Incentive Plan.  The Equity Incentive Plan may be administered by the Board or in the Board's sole discretion by the Compensation Committee of the Board or such other committee as may be specified by the Board to perform the functions and duties of the Committee under the Equity Incentive Plan. Subject to the provisions of the Equity Incentive Plan, the Committee and the Board shall determine, from those eligible to be participants in the Equity Incentive Plan, the persons to be granted stock options, stock appreciation rights and restricted stock, the amount of stock or rights to be optioned or granted to each such person, and the terms and conditions of any stock option, stock appreciation rights and restricted stock.  28    The following tables present summarized information about fixed price stock options at June 30, 2009: Options outstanding at December 31, 2007400,000Granted-Exercised-Forfeitures(275,000)Options outstanding at December 31, 2008125,000Options outstanding at June 30, 2009125,000Exercise PriceWeighted Average
Number OutstandingWeighted Average
Contractual LifeWeighted Average
PriceNumber
Exercisable$0.50350,0005 years$0.50125,000  The fair value of the options granted in fiscal year 2006 was estimated using the Black-Scholes option pricing model with the following assumptions:  Expected life6.4 yearsDividend rate0%Expected volatility75%Risk-free interest rate4.85%  11




..       Subsequent Events:  Subsequent to June 30, 2009, John Power and affiliates of Mr. Power made additional short-term advances to the Company in the amount of $36,600.  The advances were uncollateralized and due on demand.       29    ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS  The following managements discussion and analysis of financial condition and results of operations (MD&A) gives effect to the restatement discussed in Note 2 of the Notes to the Consolidated Financial Statements.  Plan of Operations Golden West Brewing Company, Inc. (the "Company" or "Golden West") was formed in December 2003 to acquire substantially all of the business assets of Butte Creek Brewing Company, LLC ("Butte Creek" or "Butte"). We are currently a holding company for our wholly-owned subsidiary Golden West Brewing Company, a California corporation, which acquired the assets and certain liabilities of Butte Creek on August 31, 2005. Butte Creek has been operating as a craft brewery in Chico, California since 1996.  In January 2009, we discontinued operations at our brewery in Chico, California and entered into a contract brewing agreement through our 100% owned subsidiary to brew our beers at Mendocino Brewing Company in Ukiah, California.  Butte Creek specializes in brewing and marketing certified organic craft beers.   We face numerous operational challenges.   The following are the key issues and challenges facing the Company: *Sales.   Our shortage of working capital has forced us to reduce inventories and new products.  Our closure of our brewing facility in Chico, California will also negatively impact our sales as we transition to a contract brewing model.  Furthermore, we have discontinued all of our contract brewing for other customers.  We expect sales in 2009 to be significantly below our 2008 sales as we make the transition to outsourcing our production.   We are seeking financing to build inventory and sales.   Our new contract facility produced our Organic IPA and Pale Ale in March 2009 that wasnt available to our distributors until April 2009.    Our Organic Pilsner and Porter wasnt produced until May 2009 and wasnt available to our distributors until June 2009.   We do not have the necessary working capital to maintain adequate inventory levels which may negatively impact our sales.*Increase Gross Profit Margin.   Our goal is to increase our gross profit margin to 20% of sales.  This will require us to raise our prices in 2009.  A price increase will almost certainly decrease our gross sales.  We believe the conversion from an operating brewery to a contract model will help us increase our gross profit margin in 2009.*Control Selling, General & Administrative Expenses.  As a result of converting to a contract brewing model, we have been able to reduce our selling and G&A expenses.   We have eliminated most of our controllable expenses.  As of June 30, 2009, we only have 2 salaried full-time employees.  30    *Working Capital Shortage.  Our history of working capital deficiencies make it difficult to raise capital to build inventory.  We owe delinquent taxes to the IRS and several Federal and State agencies.  We have secured loans to make a minimum amount of inventory.*Lack of Marketing Materials.  We have very limited marketing budgets and are not competitive with other breweries of our size in the amount and quality of marketing materials needed to support our distribution network.*Continued Operating Losses.   Our history of operating losses makes it difficult to raise capital for our working capital needs.  We believe that our new contract brewing model will help us reduce our operating losses in 2009.*Lack of Inventory Controls.    Historically our inventory controls have been weak.  Prior efforts to improve our inventory controls had been unsuccessful.   In 2009, all of our inventory will be maintained at independent warehouses.  We believe this will improve our inventory control. Both Golden West and Butte Creek have sustained losses from operations.  Golden West has a working capital deficit which raises substantial doubts about their ability to continue as a going concern. Our audited financial statements have received going concern qualifications from our Independent Registered Public Accounting Firm. The following discussion and analysis is for the three and six month periods ended June 30, 2009 and should be read in conjunction with the Notes of our unaudited financial statements for the same period.   We were a development stage entity prior to our acquisition of Butte Creek on August 31, 2005. Critical Accounting Policies and Estimates In the ordinary course of business, we have made a number of estimates and assumptions relating to the reporting of results of operations and financial condition in the preparation of our financial statements in conformity with accounting principles generally accepted in the United States of America. Actual results could differ significantly from those estimates under different assumptions and conditions. We believe that the following discussion addresses our most critical accounting policies, which are those that are most important to the portrayal of our financial condition and results. We constantly re-evaluate these significant factors and make adjustments where facts and circumstances dictate. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes. The actual results could differ from those estimates. Our financial statements are based upon a number of significant estimates, the allowance for doubtful accounts, obsolescence of inventories and the estimated useful lives selected for property and equipment. Due to the uncertainties inherent in the estimation process, it is at least reasonably possible that the estimates for these items could be further revised in the near term and such revisions could be material.  31   Overview - Factors Affecting Results of Operations Sales in the craft beer industry generally reflect a degree of seasonality, with the first and fourth quarters historically being the slowest and the rest of the year typically demonstrating stronger sales. We have historically operated with little or no backlog and, therefore, our ability to predict sales for future periods is limited. Our sales are affected by several factors, including consumer demand, price discounting and competitive considerations. We compete in the craft brewing market as well as in the much larger specialty beer market, which encompasses producers of import beers, major national brewers that produce fuller-flavored products, and large spirit companies and national brewers that produce flavored alcohol beverages. Beyond the beer market, craft brewers also face competition from producers of wines and spirits. The craft beer segment is highly competitive due to the proliferation of small craft brewers, including contract brewers, and the large number of products offered by such brewers. Imported products from foreign brewers have enjoyed resurgence in demand since the mid-1990s. Certain national domestic brewers have also sought to appeal to this growing demand for craft beers by producing their own fuller-flavored products. The wine and spirits market has experienced a surge in the past several years, attributable to competitive pricing, increased merchandising, and increased consumer interest in spirits. Because the number of participants and number of different products offered in this segment have increased significantly in the past ten years, the competition for bottled product placements and especially for draft beer placements has intensified. Operating and Financial Review and Prospects Operating Results For the three months ended June 30, 2009 compared to the three months ended June 30, 2008: REVENUES  Gross Revenues and Revenues net of excise taxes (Net Revenues) were $74,528 and $72,681, respectively, for the three months ended June 30, 2009.    Net Revenues decreased



 $204,168 or 73.

8




% as compared to net revenues of $276,849 for the three months ended June 30, 2008.   Our lack of working capital and inability to maintain adequate inventory was the primary cause of our decrease in sales.  Furthermore, we closed our brewery in January 2009 and eliminated  all of our contract brewing sales.  It also took longer to commence outsourcing of our production than we had anticipated.  COST OF GOODS SOLD  Cost of goods sold for the three months ended June 30, 2009 was $66,712 or 91.8% of beer sales revenues compared to $263,603 or 95.2% of net sales for the three months ended June 30, 2008.    Our Cost of Goods Sold as a percentage of sales decreased as we converted our



production into a contract brewing facility and ceased production at our Chico, California facility.  GROSS PROFIT Gross profit for the three months ended June 30, 2009 was $5,969 or 8.2% of net revenues compared to $13,246 or 4.8% of net revenues for the three months ended June 30, 2008. Our Gross Profit decreased due to our significant reduction of sales.   32   OPERATING EXPENSES Total operating expenses decreased $




108,329

 or




65.7

% to $




56,455

 for the three months ended June 30, 2009.    Components of operating expenses were:  *Amortization expense was $1,250 for the three months ended June 30, 2009 compared to $1,586 for the three months ended June 30, 2008.*Management compensation was $0 for the three months ended June 30, 2009 compared to $24,088 for the three months ended June 30, 2008.  The decrease was related to a reduction of salaried employees.*Selling expensewas $4,614 for the three months ended June 30, 2009 compared to $29,907 for the three months ended June 30, 2008.  We aggressively reduced our selling expense as we did not have sufficient inventory levels to warrant selling efforts in the quarter.  We reduced our trade show, travel expenses and all discretionary selling expenses.*Legal and Accounting expense was $33,555 for the three months ended June 30, 2009 compared to $46,133 for the three months ended June 30, 2008.*Stock Based Compensationwas $3,338 for the three months ended June 30, 2009 compared to $3,338 for the three months ended June 30, 2008.*Other General & Administrative Operating Expenses decreased $46,035 or 77% to $13,697 for the three months ended June 30, 2009 compared to $59,732 for three months ended June 30, 2008.  OTHER INCOME & EXPENSE

 (RESTATED)

..  Net other income and expense increased by $




128,389

 to a gain of $




49,311

for the three months ended June 30, 2009 compared to loss of $




79,078

 for the three months ended June 30, 2008.   The gain



 was primarily the result of




an increase in the fair market value of our marketable equity securities held for trading during the three months ended June 30, 2009.  LOSS FROM CONTINUING OPERATIONS (RESTATED).  The loss from continuing operations for the three months ended June 30, 2009 decreased $229,441 or 99% to $1,175 compared to $230,616 for the three months ended June 30, 2008.  The primary reasons for the reduced loss was  33   our substantial reduction in operating expenses and gains from the increase in market values applicable to our securities held for trading.  DISCONTINUED OPERATIONS.  In the first quarter of 2009 the company closed its manufacturing facility in Chico, CA and entered into a three (3) year contract with Mendocino Brewing Company, Inc. to outsource the production of our certified organic beers.  During the three months ending June 30, 2009 the company sold most of its brewing equipment.  As a result, the company had a gain from discontinued operations for the three months ended June 30, 2009 of $64,862 compared to a loss from discontinued operations of $24,709 for the comparable period in 2008.  NET INCOME (LOSS)

 (RESTATED)

.. Net Income increased $




319,012

 or




125

% to a profit of $




63,687

 for the three months ended June 30, 2009 compared to a loss of $



255,325



 for the three months ended June 30, 2008.   The reduction in our net loss was primarily the result of



a gain on the sale of previously written down equipment of $74,895 and a gain on the




increase in market values our

marketable

 equitable

 securities

 held for trading

 of $98,015.  For the six months ended June 30, 2009 compared to the six months ended June 30, 2008: REVENUES  Gross Revenues and Revenues net of excise taxes (Net Revenues) were $118,969 and $115,241, respectively, for the six months ended June 30, 2009.    Net Revenues were decreased $435,590 or 79% as compared to net revenues of $550,831 for the six months ended June 30, 2008.   Our lack of working capital and inability to maintain adequate inventory was the primary cause of our decrease in sales.  Furthermore, we closed our brewery in January 2009 and eliminated  all of our contract brewing sales. It also took longer to commence outsourcing of our production than we had anticipated.  COST OF GOODS SOLD  Cost of goods sold for the six months ended June 30, 2009 was $108,995 or 94.6% of beer sales revenues compared to $475,905 or 86.4% of net sales for the six months ended June 30, 2008.    Our Cost of Goods Sold as a percentage of sales increased due to higher prices for raw materials and a substantial decrease in our production due to the closure of our brewing facility in January 2009  GROSS PROFIT Gross profit for the six months ended June 30, 2009 was $6,246 or 5.4% of net revenues compared to $74,926 or 13.6% of net revenues for the six months ended June 30, 2008. Our Gross Profit decreased due to our significant reduction of sales and our higher Cost of Goods Sold as described above  OPERATING EXPENSES Total operating expenses decreased $




87,244

 or




41

% to $




123,944

 for the six months ended June 30, 2009.    Components of operating expenses were:  *Amortization expense was $2,500 for the six months ended June 30, 2009 compared to $3,173 for the six months ended June 30, 2008.  34    *Management compensation was $11,250 for the six months ended June 30, 2009 compared to $59,674 for the six months ended June 30, 2008.  The decrease was related to a reduction of salaried employees.*Selling expensewas $9,870 for the six months ended June 30, 2009 compared to $64,449 for the six months ended June 30, 2008.  We aggressively reduced our selling expense as we did not have sufficient inventory levels to warrant selling efforts in the quarter.  We reduced our trade show, travel expenses and all discretionary selling expenses.*Legal and Accounting expense was $60,352 for the six months ended June 30, 2009 compared to $65,714 for the six months ended June 30, 2008.*Stock Based Compensationwas $6,676 for the six months ended June 30, 2009 compared to $6,676 for the six months ended June 30, 2008.*Other General & Administrative Operating Expenses increased $21,794 or 189% to $33,296 for the six months ended June 30, 2009 compared to $




11,502

 for six months ended June 30, 2008.  OTHER INCOME & EXPENSE

 (RESTATED)

..  Net other



expense

 decreased




 by $




138,526

 to



$




15,162

 for the six months ended June 30, 2009 compared to

 a net expense of




$




153,688

 for the six months ended June 30, 2008.   The

decrease







was primarily the result of



a gain

of $80,311 applicable to the increase in fair value of our marketable equity securities held for trading during the six months ended June 30, 2009.  LOSS FROM CONTINUING OPERATIONS (RESTATED).  The loss from continuing operations for the six months ended June 30, 2009 decreased $157,090 or 54% to $132,860 compared to $289,950 for the six months ended June 30, 2008.  The primary reason for the decreased operating  35   loss was our gain of $80,311 applicable to the increase in fair value of our marketable equity securities held for trading during the six months ended June 30, 2009.  DISCONTINUED OPERATIONS.  In the first quarter of 2009 the company closed its manufacturing facility in Chico, CA and entered into a three (3) year contract with Mendocino Brewing Company, Inc. to outsource the production of our certified organic beers During the three months ending June 30, 2009 the company sold most of its brewing equipment.  As a result, the company had a gain from discontinued operations of for the six months ended June 30, 2009 of $24,135 compared to a loss from discontinued operations of $145,132 for the comparable period in 2008.  NET INCOME (LOSS). Net




loss decreased $326,357 to a net loss of $108,725

for the six months ended June 30, 2009 compared to a loss of $



435,082



 for the six months ended June 30, 2008.   The reduction in our net loss was primarily the result of



a gain on the sale of previously written down equipment of $68,142

, a $101,124 reduction in negative gross profits from our discontinued brewery operations

 and a gain

of $80,311 applicable to the increase in fair value of our marketable equity securities held for trading during the six months ended June 30, 2009.   Liquidity and Capital Resources We have required capital principally for the purchase of Butte Creek and the funding of operating losses and working capital. To date, we have financed our capital requirements through the sale of equity and short and long-term borrowings primarily from related parties. We expect to meet our future financing needs and working capital and capital expenditure requirements through cash on hand, borrowings and offerings of debt or equity securities, although there can be no assurance that our future financing efforts will be successful. The terms of future financings could be highly dilutive to existing shareholders. We have no commitments, understandings or arrangements for any additional working capital. If we are unable to secure additional financing to cover our operating losses until break-even operations can be achieved, we may not be able to continue as a going concern. We




have

a working capital deficit of $927,432 at June 30, 2009.  Our total debt, all short-term, was $

613,841




 at June 30, 2009.  We do not have sufficient cash on hand or available credit facilities to continue operations  and are dependent upon securing loans or the sale of equity to provide adequate working capital to continue operations. We have raised capital through the sales of unregistered securities and advances and/or loans from

our




 officers and directors to acquire Butte Creek, and fund operating losses and working capital needs  after its acquisition.   There are no assurances that we will be able to secure additional capital to maintain the operations. In January 2009, we discontinued brewing operations at our Chico, California brewery.  In February 2009, we entered into a three (3) year contract brewing agreement with an unrelated brewery located in California and as a result will outsource the brewing and bottling of all our beers in 2009.  This transition to a contract brewing model will require a significant investment in inventory.   There is no  36   assurance that working capital will be available to fund our new contract brewing model.   As of June 30, 2009, we have only had sufficient working capital to brew our Organic IPA, Organic OPA, Organic Pilsner and Organic Porter under the contract brewing arrangement signed in February 2009. During the three months ended June 30, 2009, the Company had no capital expenditures. Lines of Credit The Company assumed a $25,000 balance on a credit card issued by Wells Fargo Bank, with interest at the rate of 14.25% as of June 30, 2009. The card is uncollateralized and guaranteed by Tom Atmore, our former general manager. The outstanding balance as of June 30, 2009 was $22,978.  The Company assumed a $15,400 line of credit on a Butte Creek credit card with Bank of America (formerly MBNA) with interest at the rate of 27.98%. The debt on the credit card is uncollateralized but guaranteed by Tom Atmore our former general manager. The lender agreed to a payment of $2,000 as payment in full and forgave the remaining balance of $7,193. Notes Payable Between March and September 2005, the Company borrowed a total of $125,000 from three lenders: $50,000 in July 2005 from Power Curve, Inc. (a company controlled by John Power); $50,000 in May 2005 from Lone Oak Vineyards, Inc. (a company controlled by Brian Power); and $25,000 in March 2005 from Tiffany Grace, an unaffiliated party.  The loans were used to pay off Butte Creek's loans to Tri County Economic Development Corporation, purchase additional equipment and provide working capital. The Tiffany Grace note, which was executed on September 9, 2005 accrues interest at the rate of 9% per annum, is payable in monthly payments of principal and interest based upon a five year amortization, was due in full March, 2008.  As of June 30, 2009, the principle balance of the Power Curve, Inc. note was $2,000 with accrued interest of $7,920.  The other notes and all accrued interest have been paid from the proceeds of equipment sales.  On December 30, 2005, John Power and Power Curve, Inc. converted $215,000 and $90,000, respectively, in outstanding advances into collateralized long-term debt. The notes bear interest at 9% and matured December 31, 2008 and are collateralized by a security interest covering all of our tangible and intangible assets but are junior to the security interest granted to Power Curve, Inc. ($50,000), Lone Oak Vineyards, Inc. ($25,000), Dayton Misfeldt Trust ($25,000) and Tiffany Grace ($25,000) in September 2005 described above.  As of June 30, 2009, these notes had current maturities of $131,700 and $90,000 respectively and had accrued interest of $21,076 and $16,200 respectively.  During the three months ended June 30, 2009

net

payments of $83,300 were made to John Power on this note.  As part of the acquisition of Butte Creek, the Company assumed an $8,136 note payable to Bruce Detweiler, a member of Butte Creek.  As of June 30, 2009 the note had accrued interest of $5,132.  During the twelve months ended December 31, 2007, John Power and Power Curve, Inc. made advances to the Company of $115,000 and $155,000, respectively. The advances were uncollateralized and due on demand.  On December 31, 2007, John Power and Power Curve, Inc. converted these advances of $115,000 and $155,000, respectively, into collateralized long-term debt. The notes bear interest at 8% and matured on December 31, 2008 and are collateralized by all  37   tangible and intangible assets but junior to all prior perfected liens against those assets.  On December 31, 2008 John Power forgave the $115,000 debt, plus $




16,100

 in accrued interest, and Power Curve forgave $55,000 of its debt, plus the $5,700 portion of accrued interest.  Consequently, as of June 30, 2009, these notes had current maturities of $0 and $100,000 respectively and had accrued interest of $0 and $20,000 respectively.  In January, 2008, the Company issued a convertible debenture to represent a portion of its outstanding indebtedness to its legal counsel.  The debenture was in the principal amount of $30,000 is not collateralized and was repayable, together with interest at the rate of 8% per annum, on or before December 31, 2008.  The debenture was convertible, at the option of the holder, into shares of the Companys common stock at a conversion price of $0.60 per share




..

   On June 15, 2009, the Company entered into an Agreement to Convert Debt with Clifford L. Neuman, PC, the Companys legal counsel, pursuant to which Clifford L. Neuman, PC agreed to accept, and the Company agreed to issue, 2,500,000 shares of common stock,



in satisfaction of $70,000 in accrued and unpaid fees for services rendered in the capacity of legal counsel and $30,000 under a convertible debenture.  All accrued and unpaid interest under the debenture was waived.  The Shares were valued at $0.04 per share

..  In March, 2008, the Company borrowed the principal sum of $50,000 from one lender, the proceeds of which were used for working capital.  The note is repayable, together with interest at the rate of 10% per annum, on or before May 31, 2008.  The promissory note is collateralized by a UCC security interest against the Companys inventory and accounts receivable associated with the launch of its new brand Blue Marble Organic Pilsner.  The loan is guaranteed by of John C. Power, the Companys Chief Executive Officer.  As of June 30, 2009, the balance of this note and all accrued interest was paid in full.  Effective December, 2008, the Companys subsidiary issued a note in the principal amount of $200,000 to evidence a note.    The note accrues interest at the rate of 6% per annum and is due and payable, in full, on December 31, 2009.  The note was convertible, at the option of the holder, into shares of the Companys common stock at a conversion price equal to $0.10 per share



..   The note was collateralized by the marketable securities held by our Washington subsidiary and 100% of the common stock of our Washington subsidiary.  



In January, 2009, the balance owed under this note was reduced by a payment from the proceeds of securities sales to $183,250.  In June, 2009, $83,250 of the note was converted into 1,665,000 common shares valued at $0.04 and we recorded a gain on the forgiveness of debt in the amount of $16,650

 applicable to principal and $1,972 applicable to interest payable; these amounts are recorded as additional paid-in capital in our restated consolidated financial statements.




   Simultaneously, the remaining balance on the note of the $100,000 became due and payable on June 30, 2009.  In July 2009, an additional $60,000 was paid on this note from the sale of securities.  On April 28, 2009, Butte Creek Brands, LLC, a Delaware limited liability company Butte Creek) a wholly-owned subsidiary of Golden West Brewing Company, a California corporation, (GWB-CA), itself  a wholly-owned subsidiary of Golden West Brewing Company, Inc., a Delaware  38   corporation (the Company) entered into two loans, each evidenced by a Promissory Note (the Notes) pursuant to which Butte Creek borrowed from each of Clifford L. Neuman and John C. Power the principal amount of $24,000.  The Notes are due and payable July 31, 2009.  Each Note is secured by a Security Agreement covering GWB-CAs accounts receivable and the filing of a Uniform Commercial Code financing statement.  The Note in favor of Mr. Neuman is further secured by a personal guaranty of John C. Power.   The balance outstanding on these notes as of June 30, 2009 was $19,000 to Neuman and $10,000 to Power as of June 30, 2009.  During the years ended December 31, 2007 and 2008,  

an

affiliate



 of Mr. Power made short-term advances to the Company that remained unpaid as of December 31, 2008 and June 30, 2009 in the amounts of $107,425 and $57,181, respectively.   The advances are uncollateralized and due on demand and had total accrued interest of $18,000 and $1,715 as of December 31, 2008 and June 30, 2009, respectively.

On June 15, 2009, the Company entered into an Agreement to Convert Debt with the affiliate of Mr. Power, pursuant to which the affiliate agreed to accept, and the Company agreed to issue, 1,070,475 shares of common stock in satisfaction of $42,189 in principal amount owed by this affiliate.  All accrued and unpaid interest applicable to these advances as of June 30, 2009 was waived and forgiven. The shares were valued at $0.04 per share and the Company recorded a gain of the forgiveness of debt in the amount of $21,000 applicable to interest payable; this amount was recorded as additional paid-in capital in our restated consolidated financial statements.  During the six months ended June 30, 2009, John Power and affiliates of Mr. Power made additional short-term advances to the Company which ha

s




 a balance of $47,500.  The advances were uncollateralized and due on demand.  Credit Agreement  In December, 2007, the Company entered into a Credit Agreement whereby the Company was extended a line of credit by four individual lenders, including two affiliates, in the maximum principal amount of $350,000.  The Credit Agreement terminated on December 31, 2008.  The outstanding credit balance under the Credit Agreement accrues interest at the rate of 8% per annum and is payable, at the option of the lender, either in cash or in shares of the Companys common stock valued at the then applicable conversion price.  The credit balance is convertible into shares of common stock of the Company at a conversion price equal to 75% of the market price of the Companys common stock on the trading day immediately preceding the conversion date, but in no event is the conversion price to be greater than $1.00 per share or less than $0.25 per share.  The fair value of the beneficial conversion feature represents financing fees for each advance under the Agreement, and are valued using the Black Scholes pricing model at the time the advance is made.  Expected volatility is based on historical trading activity of the Companys common stock, and was calculated at 95% for advances made in 2007.  The risk free interest rate was obtained from published US Treasury data for constant maturity treasury bills and ranged from 3.2% to 5.0%.  The expected life of the conversion  39   feature was determined to be the life of the Credit Facility which terminated on December 31, 2008.  

The total value of the beneficial conversion features applicable to advances under the credit facility during 2008 and 2007 representing deferred financing fees is $105,660 and $95,270 which was credited to additional paid-in capital and charged to deferred financing fees associated with the advances under this Agreement.





..  The Company has also agreed to issue to each lender as a financing fee, 100 shares of common stock for every $1,000 of advances made under the Credit Agreement.   The credit agreement was collateralized by a senior lien and security interest in the Companys tangible and intangible assets.  The lenders under the credit agreement are John C. Power, John Gibbs, Shana Capital and Clifford L. Neuman, the Companys legal counsel.  On June 15, 2009, the Company entered into an Agreement to Convert the Debt under the credit facility with the investors, pursuant to which the investors agreed to accept, and the Company agreed to issue, 6,860,000 shares of common stock






in satisfaction of $343,000 in principal amount owed under a Credit Facility.  All accrued and unpaid interest as of June 15, 2009 was waived and forgiven.   The Shares were valued at $0.04 per share and the Company recorded a gain on the forgiveness of debt in the amount of




$68,600 in principal and $31,072 in accrued interest payable; these amounts were recorded as additional paid-in capital in our restated consolidated financial statements.   40   Delinquent Taxes At June 30, 2009, the Company had outstanding payroll tax liabilities of $43,702. Of these amounts $41,915 are considered delinquent. California Redemption Value (CRV) is a tax collected on all package sales to retailers, processed through the California Department of Conservation and refunded through the State's recycling program. The United States Tax and trade Bureau ("TTB"), and various state agencies collect excise taxes often referred to as "alcohol taxes" with the amount based on the volume of beer sold. At June 30, 2009, the Company had alcohol related taxes payable to federal and state taxing authorities of $6,129. The detail of those taxes payable is as follows: June 30, 2009Tax AgencyDueDelinquentInternal Revenue Service$  42,623$   41,915PAYROLL TAXESCA Employment Development Department$    1,079$           0PAYROLL TAXESFederal Tax and Trade Bureau$    2,706$     2,706EXCISE TAXCA Board of Equalization$    (364)$           0EXCISE TAXCA Board of Equalization$          0$           0SALES AND USE TAXCA Department of Conservation$  24,190$  24,190CRV TAXCA Franchise Tax Board$    6,600$    6,600FRANCHISE TAXESButte County Tax Collector$   3,558$          0PROPERTY TAXES Most of these delinquent taxes payable have been assumed by the Company in connection with our acquisition of Butte Creek as the continuation of regulatory compliance is material to the Company's ability to continue as a going concern.  The Company has entered into monthly payment plans with all of the aforementioned agencies. Continued operations could be severely impaired should the Company default on its payment plans with the IRS or any other governmental agency seek to collect any of the delinquent payables before we are able to pay them.  Off Balance Sheet Arrangements The Company does not have and has never had any off-balance sheet arrangements. Overview of Product Distribution Our products are available for sale directly to consumers in draft and bottles at restaurants, bars and liquor stores, as well as in bottles at supermarkets, warehouse clubs and convenience stores. Like substantially all craft brewers, our products are delivered to these retail outlets through a network of local distributors whose principal business is the distribution of beer and, in some cases, other alcoholic beverages, and who traditionally have local distribution relationships with one or more national beer brand. Sales in the craft beer industry generally reflect a degree of seasonality, with the first and fourth quarters historically being the slowest and the rest of the year typically demonstrating stronger sales.  41   We have historically operated with little or no backlog and, therefore, our ability to predict sales for future periods is limited. Certain Considerations: Issues and Uncertainties We do not provide forecasts of future financial performance or sales volume, although this report contains certain other types of forward-looking statements that involve risks and uncertainties. While we are hopeful about our long-term prospects, the following issues and uncertainties, among others, should be considered in evaluating its business prospects and any forward-looking statements. Changes in general economic and business conditions effecting the craft/microbrew industries;Developments that make our products less competitive;Changes in our business strategies including our conversion to a contract brewer;The level of demand for our products; andAvailability of sufficient working capital. Recent Accounting Pronouncements There were various accounting standards and interpretations issued during 2009

 and




 2008



, none of which are expected to have a material impact on the Company's consolidated financial position, operations or cash flows.  ITEM 3.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Our cash and cash equivalents are nominal and do not yield any return.  Our credit facilities are at fixed rates and are not subject to market risk. ITEM 4.CONTROLS AND PROCEDURES  The Company's Principal Executive Officer and Principal Financial Officer, John C. Power, has established and is currently maintaining disclosure controls and procedures for the Company.  The disclosure controls and procedures have been designed to provide reasonable assurance that the information required to be disclosed by the Company in reports that it files under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC and to ensure that information required to be disclosed by the Company is accumulated and communicated to the Company's management as appropriate to allow timely decisions regarding required disclosure.

  Our management necessarily applied its judgment in assessing the costs and benefits of such controls and procedures, which, by their nature, can provide only reasonable assurance regarding managements control objectives.   42   The Principal Executive Officer and Principal Financial Officer conducted an update review and evaluation of the effectiveness of the Company's disclosure controls and procedures and have concluded, based on his evaluation as of the end of the period covered by this Report, that our disclosure controls and procedures are not effective to provide reasonable assurance that information required to be disclosed in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Commissions rules and forms and to ensure that the information required to be disclosed by the Company is accumulated and communicated to management, including our principal executive officer and our principal financial officer, to allow timely decisions regarding required disclosure.    The principal deficiency in our disclosure controls and procedures is our lack of a dedicated Chief Financial Officer who is primarily responsible for our public disclosures and financial reporting.  On April 26, 2010, the Company concluded that it would amend its Annual Report on Form 10-K for the fiscal year ended December 31, 2008 and Forms 10-Q for the quarters ended, March 31, 2009, June 30, 2009, and September 30, 2009 to properly account for forgiveness of debt and interest by a related party. Gains on forgiveness of debt previously recognized in the consolidated statement of operations should have been recorded as capital contributions to additional paid-in capital in the consolidated balance sheet and in the consolidated statement of stockholders deficit.  These accounting errors and the corresponding restatements have resulted in managements determination that another material weakness existed with respect to the internal controls over financial reporting related to accounting for non-recurring complex accounting transactions. The material weakness existed at December 31, 2008, March 31, 2009, June 30, 2009, September 30, 2009 and December 31, 2009 and was not identified until April 2010.  To remediate this material weakness, in April 2010, management retained a financial consultant to design, implement and improve processes and controls to ensure that (a) all material transactions are properly recorded, reviewed and approved; (b) all significant accounts are reconciled on a timely basis; (c) duties are properly segregated to the extent practicable; and, (d) complex accounting issues are properly evaluated and accounted for in accordance with GAAP.  Although management has began to implement these additional control procedures to remediate this material weakness, we believe that additional time and testing are necessary before concluding that the material weakness has been remediated.   43   Our Principal Executive and Principal Financial Officer does not expect that our disclosure controls or internal controls will prevent all error and all fraud. Although our disclosure controls and procedures were designed to provide reasonable assurance of achieving their objectives and our principal executive and financial officer has determined that our disclosure controls and procedures are effective at doing so, a control system, no matter how well conceived and operated, can provide only reasonable, not absolute assurance that the objectives of the system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented if there exists in an individual a desire to do so. There can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.  OTHER INFORMATIONItem 1.Legal ProceedingsNone, except as previously disclosed.Item 1ARisk FactorsNone.Item 2.Unregistered Sales of Equity Securities and Use of Proceeds from Registered SecuritiesNone.  Item 3.Defaults Upon Senior Securities2.
Promissory Note in favor of Power Curve, Inc. ($2,000 plus $7,920 in interest).
2.
Notes payable to John C. Power and a company controlled by John C. Power in the amount of $221,700 plus accrued interest of $37,276 matured on December 31, 2008 and were not repaid.  44    Item 4.Submission of Matters to a Vote of Security HoldersNone, except as previously disclosed.Item 5.Other InformationNone, except as previously disclosed.Item 6.ExhibitsExhibits31Certification32Certification pursuant to 18 U.S.C. Section 1350   45    SIGNATURES  Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. .  GOLDEN WEST BREWING COMPANY, INC.Date:August 9, 2010By:_/s/ John C. Power____
John C. Power, Chief Financial
Officer, Principal Accounting Officer     46