UNITED STATES


SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549





FORM 10-Q





(Mark One)[X]
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934For the quarterly period ended: September 30, 2010Or[   ]
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934For the transition period from ____________ to _____________Commission File Number: 333-145088COYOTE HILLS GOLF, INC.(Exact name of registrant as specified in its charter)Nevada
20-8242820(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)711 N. 81STPlace, Mesa, AZ
85207(Address of principal executive offices)
(Zip Code)(480) 335-7351(Registrant's telephone number, including area code)_______________(Former name, former address and former fiscal year, if changed since last report)





Indicate by check mark whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 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 has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that ht registrant was required to submit and post such files).  Yes [   ]   No [X]





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 the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.:





Large accelerated filer  [   ]
Accelerated filer                   [   ]Non-accelerated filer    [   ]  (Do not check if a smaller reporting company)
Smaller reporting company  [X]





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


Yes [X]   No [   ]





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





Common Stock, $0.001 par value
11,100,000 shares(Class)
(Outstanding as at November 12, 2010)









COYOTE HILLS GOLF, INC.


(A Development Stage Company)








Table of Contents











PagePART I – FINANCIAL INFORMATION
3Unaudited Financial Statements
3Balance Sheets
4Statements of Operations
5Statements of Cash Flows
6Notes to Financial Statements
7Management's Discussion and Analysis of Financial Condition and Results of Operation
11Controls and Procedures
13PART II – OTHER INFORMATION
15Unregistered Sales of Equity Securities and Use of Proceeds
15Exhibits and Reports on Form 8-K
15SIGNATURES
16



































2


PART I – FINANCIAL INFORMATION





Unaudited Financial Statements





The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles for interim financial reporting and pursuant to the rules and regulations of the Securities and Exchange Commission ("Commission").  While these statements reflect all normal recurring adjustments which are, in the opinion of management, necessary for fair presentation of the results of the interim period, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. For further information, refer to the financial statements and footnotes thereto, which are included in the Company's Annual Report on Form 10-K previously filed with the Commission on March 25, 2010.







































































3


COYOTE HILLS GOLF, INC.


(A Development Stage Company)


Balance Sheets








September 30,


December 31,2010


2009(unaudited)


(audited)AssetsCurrent assets:Cash

$
703


$
264Inventory


-



1,051Prepaid expenses and current deposits


118



1,034Total current assets


821



2,349Fixed assets, net of accumulated depreciation of $793 and$530 as of 9/30/2010 and 12/31/2009, respectively


256



519Total assets

$
1,007


$
2,868Liabilities and Stockholders’ EquityCurrent liabilities:Accounts payable

$
500


$
500Total current liabilities


500



500Total liabilities


500



500Stockholders’ equityPreferred stock, $0.001 par value, 100,000,000 sharesauthorized, no shares issued and outstanding


-



-Common stock, $0.001 par value, 100,000,000 sharesauthorized, 11,100,000 shares issued and outstandingas of 9/30/2010 and 12/31/2009, respectively


11,100



11,100Additional paid-in capital


71,075



61,075Deficit accumulated during development stage


(81,598
)


(69,807
)Total stockholder’s equity


577



2,368Total liabilities and stockholders’ equity

$
1,007


$
2,868

















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





4


COYOTE HILLS GOLF, INC.


(A Development Stage Company)


Statements of Operations


(unaudited)








Three Months Ended


Nine Months Ended


InceptionSeptember 30,


September 30,


(January 8, 2007) to2010


2009


2010


2009


September 30, 2010Revenue

$
-


$
-


$
-


$
-


$
510Cost of goods sold


-



-



-



-



491Gross profit


-



-



-



-



19Expenses:Depreciation expense


88



88



262



262



793Executive compensation


-



-



-



-



10,000General and administrative expenses


2,231



2,148



11,010



10,474



70,211Total expenses


2,319



2,236



11,272



10,736



81,004Other expense:Impairment expense


468



-



468



-



468Total other expense


468



-



468



-



468Loss before provision for income taxes


(2,787
)


(2,236
)


(11,740
)


(10,736
)


(81,453
)Provision for income taxes


-



-



(50
)


(50
)


(145
)Net loss

$
(2,787
)

$
(2,236
)

$
(11,790
)

$
(10,786
)

$
(81,598
)Weighted average number ofcommon shares outstanding – basic


11,100,000



11,100,000



11,100,000



11,100,000Net loss per common share – basic

$
(0.00
)

$
(0.00
)

$
(0.00
)

$
(0.00
)

















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





5


COYOTE HILLS GOLF, INC.


(A Development Stage Company)


Statements of Cash Flows


(unaudited)





For the nine months ended


InceptionSeptember 30,


(January 8, 2007) to2010


2009


September 30, 2010Operating activitiesNet loss

$
(11,790
)

$
(10,786
)

$
(81,598
)Adjustments to reconcile net loss tonet cash used by operating activities:Shares issued for executive compensation


-



-



10,000Depreciation expense


262



262



793Changes in operating assets and liabilities:(Increase) decrease in prepaid expenses and deposits


916



-



(118
)Decrease in inventory


1,051



1,465



-Increase in accounts payable


-



654



500Net cash used by operating activities


(9,561
)


(8,405
)


(70,423
)Investing activitiesPurchase of fixed assets


-



-



(1,049
)Net cash used by investing activities


-



-



(1,049
)Financing activitiesDonated capital


10,000



5,800



17,675Issuances of common stock


-



-



54,500Net cash provided by financing activities


10,000



5,800



72,175Net increase (decrease) in cash


439



(2,605
)


703Cash – beginning


264



3,203



-Cash – ending

$
703


$
598


$
703Supplemental disclosures:Interest paid

$
-


$
-


$
-Income taxes paid

$
-


$
50


$
145Non-cash transactions:Shares issued for executive compensation

$
-


$
-


$
10,000Number of shares issued for executive compensation


-



-



10,000,000














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





6


COYOTE HILLS GOLF, INC.


(A Development Stage Company)


Notes to Financial Statements


Unaudited





Note 1 – Basis of presentation





The interim financial statements included herein, presented in accordance with United States generally accepted accounting principles and stated in US dollars, have been prepared by 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 generally accepted accounting principles have been omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading.





These statements reflect all adjustments, consisting of normal recurring adjustments, which, in the opinion of management, are necessary for fair presentation of the information contained therein.  It is suggested that these interim financial statements be read in conjunction with the audited financial statements of the Company for the period ended December 31, 2009 and notes thereto included in the Company's annual report on Form 10-K.  The Company follows the same accounting policies in the preparation of interim reports.





Results of operations for the interim periods are not indicative of annual results.





Note 2 – History and organization of the company





The Company was organized January 8, 2007 (Date of Inception) under the laws of the State of Nevada, as Coyote Hills Golf, Inc.  The Company is authorized to issue up to 100,000,000 shares of its common stock and 100,000,000 shares of preferred stock, each with a par value of $0.001 per share.





The business of the Company is to sell golf apparel and equipment via the Internet.  The Company has limited operations and in accordance with FASB ASC 915-10, “Development Stage Entities,” the Company is considered a development stage company.





Note 3 - Going concern





The Company’s financial statements are prepared using generally accepted accounting principles in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business.  The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and allow it to continue as a going concern.  The Company had an accumulated deficit of $81,598 as of September 30, 2010.  The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable.  If the Company is unable to obtain adequate capital, it could be forced to cease operations.





In order to continue as a going concern, the Company will need, among other things, additional capital resources.  The Company is contemplating conducting an offering of its debt or equity securities to obtain additional operating capital.  The Company is dependent upon its ability, and will continue to attempt, to secure equity and/or debt financing.  There are no assurances that the Company will be successful and without sufficient financing it would be unlikely for the Company to continue as a going concern.





The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations.  These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might result from this uncertainty.











7


COYOTE HILLS GOLF, INC.


(A Development Stage Company)


Notes to Financial Statements


Unaudited





Note 4 –Accounting policies and procedures





Use of estimates


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





Inventory


Inventories consist of merchandise held for sale in the ordinary course of business, including cost of freight and other miscellaneous acquisition costs, and are stated at the lower of cost, or market determined on the first-in-first-out basis.  The Company records a write-down for inventories which have become obsolete or are in excess of anticipated demand or net realizable value.  The Company performs a detailed review of inventory each period that considers multiple factors including demand forecasts, market conditions, product life cycle status, product development plans and current sales levels. If future demand or market conditions for the Company’s products are less favorable than forecasted or if unforeseen changes negatively impact the utility of the Company’s inventory, it may be required to record additional write-downs which would negatively impact gross margins in the period when the write-downs are recorded. If actual market conditions are more favorable, the Company may have higher gross margins when products incorporating inventory that were previously written down are sold.





During the three months ended September 30, 2010, management conducted a thorough review of the inventory in all of its product lines.  As a result, a provision for inventory losses of $468 was charged against operations in 2010 to write down inventory to its net realizable value.  This was based on the Company’s best estimates of product sales prices and customer demand patterns, and its plans to transition its products.  It is at least reasonably possible that the estimates used by the Company to determine its provision for inventory losses will materially differ from the actual amounts or results.  These differences could result in materially higher than expected inventory provisions, which could have a materially adverse effect on the Company’s results of operations and financial condition in the near term.





Loss per share


Net loss per share is provided in accordance with FASB ASC 260-10, “Earnings per Share”.  Basic loss per share is computed by dividing losses available to common stockholders by the weighted average number of common shares outstanding during the period.  Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive. The Company had no dilutive common stock equivalents, such as stock options or warrants as of September 30, 2010.





Recent Accounting Pronouncements


In February 2010, the FASB issued Accounting Standards Update 2010-09 (ASU 2010-09), Subsequent Events (Topic 855), amending guidance on subsequent events to alleviate potential conflicts between FASB guidance and SEC requirements. Under this amended guidance, SEC filers are no longer required to disclose the date through which subsequent events have been evaluated in originally issued and revised financial statements. This guidance was effective immediately and we adopted these new requirements for the period ended June 30, 2010. The adoption of this guidance did not have a material impact on our financial statements.





In March 2010, the FASB issued ASU No. 2010-11, "Derivatives and Hedging (Topic 815): Scope Exception Related to Embedded Credit Derivatives" (codified within ASC 815 - Derivatives and Hedging). ASU 2010-11 improves disclosures originally required under SFAS No. 161. ASU 2010-11 is effective for interim and annual periods beginning after June 15, 2010. The adoption of ASU 2010-11 is not expected to have any material impact on our financial position, results of operations or cash flows.





8


COYOTE HILLS GOLF, INC.


(A Development Stage Company)


Notes to Financial Statements


Unaudited





Note 4 –Accounting policies and procedures (continued)





Recent Accounting Pronouncements (continued)


In April 2010, the FASB issued ASU No. 2010-17, "Revenue Recognition - Milestone Method (Topic 605): Milestone Method of Revenue Recognition" (codified within ASC 605 - Revenue Recognition). ASU 2010-17 provides guidance on defining a milestone and determining when it may be appropriate to apply the milestone method of revenue recognition for research or development transactions. ASU 2010-17 is effective for interim and annual periods beginning after June 15, 2010. The adoption of ASU 2010-17 is not expected to have any material impact on our financial position, results of operations or cash flows.





In April 2010, the FASB (Financial Accounting Standards Board) issued Accounting Standards Update 2010-18 (ASU 2010-18), Receivables (Topic 310): Effect of a Loan Modification When the Loan is Part of a Pool That Is Accounted for as a Single Asset-a consensus of the FASB Emerging Task Force. The amendments in this Update are effective for modifications of loans accounted for within pools under Subtopic 310-30 occurring in the first interim or annual period ending on or after July 15, 2010.  The amendments are to be applied prospectively. Early application is permitted.  The Company does not expect the provisions of ASU 2010-18 to have a material effect on the financial position, results of operations or cash flows of the Company.





In April 2010, the FASB (Financial Accounting Standards Board) issued Accounting Standards Update 2010-15 (ASU 2010-15), Financial Services- Insurance (Topic 944): How Investments held through Separate Accounts Affect an Insurer's Consolidation Analysis of Those Investments-a consensus of the  FASB Emerging Issues Task Force.  The amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2010.  Early adoption is permitted.  The amendments in this Update should be applied retrospectively to all prior periods upon the date of adoption.  The Company does not expect the provisions of ASU 2010-15 to have a material effect on the financial position, results of operations or cash flows of the Company.





In May 2010, the FASB (Financial Accounting Standards Board) issued Accounting Standards Update 2010-19 (ASU 2010-19), Foreign Currency (Topic 830): Foreign Currency Issues: Multiple Foreign Currency Exchange Rates.  The amendments in this Update are effective as of the announcement date of March 18, 2010. The Company does not expect the provisions of ASU 2010-19 to have a material effect on the financial position, results of operations or cash flows of the Company.





In July 2010, the FASB (Financial Accounting Standards Board) issued Accounting Standards Update 2010-20 (ASU 2010-20), Receivables (Topic 310): Foreign Currency Issues: Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses.  For public entities, the disclosures as of the end of a reporting period are effective for interim and annual reporting periods ending on or after December 15, 2010.  The disclosures about activity that occurs during a reporting period are affecting for interim and annual reporting periods beginning on or after December 15, 2010.  The Company does not expect the provisions of ASU 2010-20 to have a material effect on the financial position, results of operations or cash flows of the Company.





The Company evaluated all of the other recent accounting updates through ASU 2010-20 and deemed that they would not have a material effect on the financial position, results of operations or cash flows of the Company.

















9


COYOTE HILLS GOLF, INC.


(A Development Stage Company)


Notes to Financial Statements


Unaudited


Note 5-Fixed assets





Fixed assets consisted of the following:





September 30,


December 31,2010


2009Computer equipment

$
1,049


$
1,049Accumulated depreciation


(793
)


(530
)$
256


$
519





During the three and nine month periods ended September 30, 2010 and 2009, the Company recorded depreciation expense of $88 (2009: $88) and $262 (2009: $262), respectively.





Note 6 – Stockholders’ equity





The Company is authorized to issue 100,000,000 shares of its $0.001 par value common stock and 100,000,000 shares of its $0.001 par value preferred stock.





On January 12, 2007, an officer and director of the Company paid for incorporation fees on behalf of the Company in the amount of $175.  The entire amount is not expected to be repaid and is considered to be additional paid-in capital.





On January 12, 2007, the Company issued 10,000,000 shares of its $0.001 par value common stock as founders’ shares to its two officers and directors in exchange for services rendered in the amount of $10,000.





On February 8, 2007, an officer and director of the Company donated cash in the amount of $100.  The entire amount is considered to be additional paid-in capital.





On March 28, 2007, the Company issued 300,000 shares of its $0.001 par value common stock for cash in the amount of $15,000 in a private transaction to one shareholder.





On May 8, 2008, the Company completed a public offering, whereby it sold 800,000 shares of its par value common stock for total gross cash proceeds in the amount of $40,000.  Total offering costs related to this issuance was $500.





On March 10, 2009, an officer and director of the Company donated cash in the amount of $1,000.  The entire amount is considered to be additional paid-in capital.





On May 12, 2009, an officer and director of the Company donated cash in the amount of $2,200.  The entire amount is considered to be additional paid-in capital.





On July 23, 2009, an officer and director of the Company donated cash in the amount of $2,600.  The entire amount is considered to be additional paid-in capital.





On October 13, 2009, an officer and director of the Company donated cash in the amount of $1,600.  The entire amount is considered to be additional paid-in capital.














10


COYOTE HILLS GOLF, INC.


(A Development Stage Company)


Notes to Financial Statements


Unaudited





Note 6 – Stockholders’ equity (continued)





On February 3, 2010, an officer and director of the Company donated cash in the amount of $5,500.  The entire amount is considered to be additional paid-in capital.





On April 27, 2010, an officer and director of the Company donated cash in the amount of $2,500.  The entire amount is considered to be additional paid-in capital.





On July 19, 2010, an officer and director of the Company donated cash in the amount of $2,000.  The entire amount is considered to be additional paid-in capital.





As of September 30, 2010, there have been no other issuances of common stock.





Note 7 – Warrants and options





As of September 30, 2010, there were no warrants or options outstanding to acquire any additional shares of common stock.





Note 8 – Related party transactions





On January 12, 2007, the Company issued 10,000,000 shares of its $0.001 par value common stock as founders’ shares to its two officers and directors in exchange for services rendered in the amount of $10,000.





From inception through September 30, 2010, an officer and director of the Company donated cash in the amount of $17,675.  The entire amount is considered to be additional paid-in capital.





The Company does not lease or rent any property.  Office services are provided without charge by an officer and director of the Company.  Such costs are immaterial to the financial statements and, accordingly, have not been reflected therein.  The officers and directors of the Company are involved in other business activities and may, in the future, become involved in other business opportunities.  If a specific business opportunity becomes available, such persons may face a conflict in selecting between the Company and their other business interests.  The Company has not formulated a policy for the resolution of such conflicts.

















11


Management's Discussion and Analysis of Financial Condition and Results of Operation





Forward-Looking Statements





This Quarterly Report contains forward-looking statements about Coyote Hills Golf, Inc.’s business, financial condition and prospects that reflect management’s assumptions and beliefs based on information currently available. We can give no assurance that the expectations indicated by such forward-looking statements will be realized.  If any of our management’s assumptions should prove incorrect, or if any of the risks and uncertainties underlying such expectations should materialize, Coyote Hills Golf’s actual results may differ materially from those indicated by the forward-looking statements.





The key factors that are not within our control and that may have a direct bearing on operating results include, but are not limited to, acceptance of our services, our ability to expand our customer base, managements’ ability to raise capital in the future, the retention of key employees and changes in the regulation of our industry.





There may be other risks and circumstances that management may be unable to predict.  When used in this Quarterly Report, words such as,  "believes,""expects," "intends,""plans,""anticipates,""estimates"and similar expressions are intended to identify forward-looking statements, although there may be certain forward-looking statements not accompanied by such expressions.





Management’s Discussion and Results of Operation





Coyote Hills Golf, Inc. was incorporated in Nevada on January 8, 2007.  We are a retailer of golf-related apparel, equipment and supplies, primarily targeting male consumers aged 40 and over in the middle- to high-income ranges.  We consider this demographic group to have sufficient disposable income, to be brand conscious and typically experience a moderate to high level of pressure to be early adopters of golf equipment.  These factors make this an ideal target market for us.





To date, we purchased $4,085 in beginning inventory, consisting of golf apparel for men and women.  We began to realize sales during the third quarter of 2008.  In the three and nine month periods ended September 30, 2010 and 2009, we did not generate any revenues.  Sales since our formation on January 8, 2007 to September 30, 2010 were $510.  In association with sales of our golf apparel, we incurred cost of goods sold in the amount of $491.  This amount represents a historical gross margin of approximately 4% on sales of our products and resulted in a gross profit of $19.  After factoring in cost of goods sold, our gross profit was $19 for the period from our inception to September 30, 2010.  We do not have any long-term agreements to supply our apparel to any one customer.  We have no recurring customers and have no ongoing revenue sources.





In the execution of our business, we incur depreciation expense and various general and administrative costs.  General and administrative expenses mainly consist of office expenditures and accounting and legal fees.  In the three months ended September 30, 2010, total expenses were $2,319, comprised of $88 in depreciation expense on our computer equipment and $2,231 in general and administrative costs.  During the comparable period ended September 30, 2009, total expenses were $2,236, consisting of $88 in depreciation expense and $2,148 in general and administrative expenses.  Our expenditures have historically varied materially from period-to-period and our management cautions that any change in such cannot be relied upon to predict trends or developments in our operational direction.





During the nine month period ended September 30, 2010, total expenses were $11,272, consisting of $262 in depreciation expense and $11,010 in general and administrative costs.  In comparison, we incurred total expenses of $10,736 in the nine months ended September 30, 2009, of which $262 consists of depreciation and $10,474 is attributable to general and administrative expenses.





Aggregate operating expenses from our inception through September 30, 2010 were $81,004, of which $793 is attributable to depreciation expense, $10,000 in executive compensation paid in the form of shares of common stock issued to our two officers/directors for services rendered and $70,211 in general and administrative expenses related to the execution of our business plan.  No development related expenses have been or will be paid to our affiliates.  We expect to continue to incur general and administrative expenses for the foreseeable future, although we cannot estimate the extent of these costs.





12


For the period ended September 30, 2010, our management reviewed current inventory on hand.  Based on our management’s estimates of customer demand, obsolescence and the market for similar products, we determined it necessary to write down the inventory to its net realizable value.  As a result, as of September 30, 2010, we recorded a provision for inventory losses of $468.  We did not record any impairment to inventory during the three and nine month periods ended September 30, 2009.  Total inventory impairment since our inception to September 31, 2010 is $468.  As a result of this write down of existing inventory, we no longer have any saleable products.





During the quarters ended September 30, 2010 and 2009, we did not record any provision for income taxes.  In the nine months ended September 30, 2010 and 2009, provision for income taxes amounted to $50 and $50, respectively, related to the minimum tax payable to the State of Arizona.  Since our inception to September 30, 2010, we recorded total provisions for income taxes of $145.





As a result of our minimal level of revenues and incurring ongoing expenses related to the implementation of our business, we have experienced net losses in all periods since our inception on January 8, 2007.  In the three months ended September 30, 2010, we incurred a net loss of $2,787, compared to a net loss of $2,236 in the comparable three month period ended September 30, 2009.  In the nine month period ended September 30, 2010, our net loss totaled $11,790, compared to a net loss of $10,786 for the nine month period ended September 30, 2009.  Since our inception, we have accumulated net losses in the amount of $81,598.  We anticipate incurring ongoing operating losses and cannot predict when, if at all, we may expect these losses to plateau or narrow.  We have not been profitable from our inception through September 30, 2010.  There is significant uncertainty projecting future profitability due to our history of losses, lack of revenues, and due to our reliance on the performance of third parties on which we have no direct control.





In order for us to achieve profitability and support our planned ongoing operations, we estimate that we must begin generating a minimum of $40,000 sales in the next 12 months.  Unfortunately, without saleable inventory on hand, we cannot guarantee that we will generate any additional sales, let alone achieve that target.  Our management has identified increasing exposure of our website as our top priority for the next twelve months to assist us in reaching our goal of $40,000 in sales.





Our management expects that we will experience net cash out-flows through at least fiscal year 2010, given the developmental nature of our business.  We have only recently begun to accumulate an inventory of golf-related merchandise for sale and have not yet developed any advertising or marketing campaign to generate awareness of our brand and website.  We believe that our cash on hand as of September 30, 2010, in the amount of $703, is insufficient to maintain our operations.  If we do not generate sufficient revenues and cash flows to support our operations, or if our costs of operations increase unexpectedly, we may need to raise capital by conducting additional issuances of our equity or debt securities for cash.  We cannot assure you that any financing can be obtained or, if obtained, that it will be on reasonable terms.  As such, our principal accountants have expressed substantial doubt about our ability to continue as a going concern because we have limited operations and have not fully commenced planned principal operations.





Our management does not anticipate the need to hire additional full- or part- time employees over the next 12 months, as the services provided by our current officers and directors appear sufficient at this time.  Our officers and directors work for us on a part-time basis, and are prepared to devote additional time, as necessary.  We do not expect to hire any additional employees over the next 12 months.





No development related expenses have been or will be paid to our affiliates.





Our management does not expect to incur research and development costs.





We do not have any off-balance sheet arrangements.





We currently do not own any significant plant or equipment that we would seek to sell in the near future.





We have not paid for expenses on behalf of our directors. Additionally, we believe that this fact shall not materially change.





We currently do not have any material contracts and or affiliations with third parties.





Off-Balance Sheet Arrangements





We do not have any off-balance sheet arrangements.





13


Controls and Procedures





Evaluation of Disclosure Controls and Procedures





As of September 30, 2010, our management, with the participation of our President and Chief Executive Officer and our Senior Vice President and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures pursuant to Rule 13a-15(b) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).  Based upon that evaluation, our President and Chief Executive Officer and our Chief Financial Officer concluded that, as of September 30, 2010, our disclosure controls and procedures were effective in ensuring that material information required to be disclosed by us 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 Securities and Exchange Commission’s rules and forms, including ensuring that such material information is accumulated by and communicated to our management, including our President and Chief Executive Officer and our Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.





Changes in internal controls over financial reporting





There was no change in our internal controls over financial reporting that occurred during the period covered by this report, which has materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting.



























































14


PART II – OTHER INFORMATION





Unregistered Sales of Equity Securities and Use of Proceeds





Unregistered Offerings





On January 12, 2007, we issued 5,000,000 shares of our common stock to Mitch S. Powers, and issued another 5,000,000 shares of our common stock to Stephanie Lynn Erickson, our founding shareholders, officers and directors.  This sale of stock did not involve any public offering, general advertising or solicitation.  The shares were issued in exchange for services performed by these founding shareholders on our behalf in the amount of $10,000.  Mr. Powers and Ms. Erickson received compensation in the form of common stock for performing services related to the formation and organization of our Company, including, but not limited to, designing and implementing a business plan and providing administrative office space for use by the Company; thus, these shares are considered to have been provided as founder’s shares.  Additionally, the services are considered to have been donated, and have resultantly been expensed and recorded as a contribution to capital.  At the time of the issuance, both Mr. Powers and Ms. Erickson had fair access to and were in possession of all available material information about our company, as Mr. Powers is the President and a director of Coyote Hills Golf, Inc., and Ms. Erickson is the Secretary-Treasurer of the company.  The shares bear a restrictive transfer legend.  On the basis of these facts, we claim that the issuance of stock to our founding shareholders qualifies for the exemption from registration contained in Section 4(2) of the Securities Act of 1933.





On March 28, 2007, we sold 300,000 shares of our common stock to Kamiar Khatami, an acquaintance of our founding shareholders.  The shares were issued for total cash in the amount of $15,000.  The shares bear a restrictive transfer legend.  At the time of the issuance, Mr. Khatami had fair access to and was in possession of all available material information about our company, as she is a friend of the president and director of Coyote Hills Golf, Inc.  The shares bear a restrictive transfer legend.  On the basis of these facts, we claim that the issuance of stock to our founding shareholder qualifies for the exemption from registration contained in Section 4(2) of the Securities Act of 1933.





Exhibits and Reports on Form 8-K





Exhibit Number
Name and/or Identification of Exhibit3
Articles of Incorporation & By-Laws(a) Articles of Incorporation *(b) By-Laws *31
Rule 13a-14(a)/15d-14(a) Certifications(a) Mitch S. Powers(b) Stephanie Lynn Erickson32
Certification under Section 906 of the Sarbanes-Oxley Act (18 U.S.C. Section 1350)*  Incorporated by reference herein filed as exhibits to the Company’s Registration Statement on Form SB-2 previously filed with the SEC on August 3, 2007, and subsequent amendments made thereto.























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SIGNATURES





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





COYOTE HILLS GOLF, INC.(Registrant)Signature
Title
Date/s/ Mitch S. Powers
President and
November 12, 2010Mitch S. Powers
Chief Executive Officer/s/ Stephanie Lynn Erickson
Secretary-Treasurer
November 12, 2010Stephanie Lynn Erickson
Chief Financial Officer/s/ Stephanie Lynn Erickson
Chief Accounting Officer
November 12, 2010Stephanie Lynn Erickson

































































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