U.
S. 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
      1934


For the
Fiscal quarter ended March 31,
2010





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


For the
transition period from ___________ to _____________





Commission
File Number: 333-150266





BNH
INC.


(Exact
Name of Registrant as specified in its charter)





Nevada
            
            92-0189305(State
      or other jurisdiction of
              incorporation
      or organization)
            
            (I.R.S.
      Employer
              Identification
      No.)





BNH
INC.


c/o
Nehemya Hesin


29 Rashbi
St. Apt # 19


Modiin Illit, Israel,
71919









(Address
of principal executive offices, including zip code)







Indicate
by check mark whether the registrant (1) filed all reports required to be
filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the Registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.


Yes x Noo




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 (§232.405 of this
chapter) during the preceding 12 months (or for such shorter period that the
registrant was required to submit and post such files).


Yes o     No o





Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting
company.





Large
accelerated filer o                                                                                         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 x NO o





The
issuer had 7,583,334 shares of its common stock issued and outstanding as of May
4, 2010.










TABLE OF
CONTENTS





PagePART
      IITEM
      1.
                    
                    Financial
      Statements
                    F-1ITEM
      2.
                    
                    Management's
      Discussion and Analysis of Financial Condition and Results of
      Operations
                    11ITEM
      3.
                    
                    Quantitative
      and Qualitative Disclosures about Market Risk
                    13ITEM
      4.
                    
                    Controls
      and Procedures
                    14ITEM
      4T.
                    
                    Controls
      and ProceduresPART
      IIITEM
      1.
                    
                    Legal
      Proceedings
                    15ITEM 1A.
                    
                    Risk
      Factors
                    15ITEM
      2.
                    
                    Unregistered
      Sales of Equity Securities and Use of Proceeds
                    15ITEM
      3.
                    
                    Defaults
      Upon Senior Securities
                    15ITEM
      4.
                    
                    Submission
      of Matters to a Vote of Security Holders
                    15ITEM
      5.
                    
                    Other
      Information
                    15ITEM
      6.
                    
                    Exhibits
                    15Signatures









Cautionary
Statement Concerning


Forward-Looking
Statements





USE OF
NAMES




In this
quarterly report, the terms “BNH,” “Company,” “we,” or “our,” unless the context
otherwise requires, mean BNH Inc.




CAUTIONARY
STATEMENT REGARDING FORWARD-LOOKING STATEMENTS




This
Quarterly Report on Form 10-Q and other reports that we file with the SEC
contain statements that are considered forward-looking statements.
Forward-looking statements give the Company’s current expectations, plans,
objectives, assumptions, or forecasts of future events. All statements other
than statements of current or historical fact contained in this quarterly
report, including statements regarding the Company’s future financial position,
business strategy, budgets, projected costs and plans and objectives of
management for future operations, are forward-looking statements. In some cases,
you can identify forward-looking statements by terminology such as “anticipate,”
“estimate,” “plans,” “potential,” “projects,” “ongoing,” “expects,” “management
believes,” “we believe,” “we intend,” and similar expressions. These statements
are based on the Company’s current plans and are subject to risks and
uncertainties, and as such the Company’s actual future activities and results of
operations may be materially different from those set forth in the forward
looking statements. Any or all of the forward-looking statements in this
quarterly report may turn out to be inaccurate and as such, you should not place
undue reliance on these forward-looking statements. The Company has based these
forward-looking statements largely on its current expectations and projections
about future events and financial trends that it believes may affect its
financial condition, results of operations, business strategy and financial
needs. The forward-looking statements can be affected by inaccurate assumptions
or by known or unknown risks, uncertainties, and assumptions due to a number of
factors, including:




·
            dependence
      on key personnel;




·
            competitive
      factors;




·
            degree
      of success of research and development
programs




·
            the
      operation of our business; and




·
            general
      economic conditions in the United States and
  Israel.




These
forward-looking statements speak only as of the date on which they are made, and
except to the extent required by federal securities laws, we undertake no
obligation to update any forward-looking statements to reflect events or
circumstances after the date on which the statement is made or to reflect the
occurrence of unanticipated events. In addition, we cannot assess the impact of
each factor on our business or the extent to which any factor, or combination of
factors, may cause actual results to differ materially from those contained in
any forward-looking statements. All subsequent written and oral forward-looking
statements attributable to the Company or persons acting on its behalf are
expressly qualified in their entirety by the cautionary statements contained in
this Quarterly Report.









PART
I





Item
1. Financial Statements.




BNH
INC.


(A
DEVELOPMENT STAGE COMPANY)




INDEX
TO FINANCIAL STATEMENTS


MARCH
31, 2010




Financial
      Statements-Balance
      Sheets as of March 31, 2010 and December 31, 2009
              F-2Statements
      of Operations for the Three Months Ended March 31, 2010 and
      2009and
      Cumulative from Inception
              F-3Statement
      of Stockholders’ Equity for the Period from InceptionThrough
      March 31, 2010
              F-4Statements
      of Cash Flows for the Three Months Ended March 31, 2010 and
      2009and
      Cumulative from Inception
              F-5Notes
      to Financial Statements
              F-6




F-1




BNH
INC.


(A
DEVELOPMENT STAGE COMPANY)


BALANCE SHEETS


AS
OF MARCH 31, 2010 AND DECEMBER 31, 2009


ASSETSAs
      of
                                                          
                                                          
                                                          As
      ofMarch
      31,
                                                          
                                                          
                                                          December
      31,2010
                                                          
                                                          
                                                          2009(Unaudited)
                                                          
                                                          
                                                          (Audited)Current
      Assets:Cash
      in bank
                                                          
                                                          $
                                                          6,441
                                                          
                                                          
                                                          $
                                                          6,500Prepaid
      expenses
                                                          
                                                          
                                                          -
                                                          
                                                          
                                                          
                                                          156Total
      current assets
                                                          
                                                          
                                                          6,441
                                                          
                                                          
                                                          
                                                          6,656Total
      Assets
                                                          
                                                          $
                                                          6,441
                                                          
                                                          
                                                          $
                                                          6,656LIABILITIES AND STOCKHOLDERS'
      EQUITYCurrent
      Liabilities:Accounts
      payable
                                                          
                                                          $
                                                          1,130
                                                          
                                                          
                                                          $
                                                          2,225Accrued
      liabilities
                                                          
                                                          
                                                          2,250
                                                          
                                                          
                                                          
                                                          5,650Due
      to shareholder
                                                          
                                                          
                                                          56,652
                                                          
                                                          
                                                          
                                                          39,857Total
      current liabilities
                                                          
                                                          
                                                          60,032
                                                          
                                                          
                                                          
                                                          47,732Total
      liabilities
                                                          
                                                          
                                                          60,032
                                                          
                                                          
                                                          
                                                          47,732Commitments
      and Contingencies
                                                          
                                                          
                                                          -
                                                          
                                                          
                                                          
                                                          -Stockholders'
      Equity (Deficit):Preferred
      stock, par value $0.001 per share, 5,000,000 sharesauthorized;
      no shares issued and outstanding
                                                          
                                                          
                                                          -
                                                          
                                                          
                                                          
                                                          -Common
      stock, par value $0.001 per share, 100,000,000 sharesauthorized;
      7,583,334 shares issued and outstanding
                                                          
                                                          
                                                          7,583
                                                          
                                                          
                                                          
                                                          7,583Additional
      paid-in capital
                                                          
                                                          
                                                          64,917
                                                          
                                                          
                                                          
                                                          64,917Paid
      stock subscription
                                                          
                                                          
                                                          -
                                                          
                                                          
                                                          
                                                          -(Deficit)
      accumulated during development stage
                                                          
                                                          
                                                          (126,091
                                                          )
                                                          
                                                          
                                                          (113,576
                                                          )Total
      stockholders' equity (deficit)
                                                          
                                                          
                                                          (53,591
                                                          )
                                                          
                                                          
                                                          (41,076
                                                          )Total
      Liabilities and Stockholders' Equity (Deficit)
                                                          
                                                          $
                                                          6,441
                                                          
                                                          
                                                          $
                                                          6,656


The
accompanying notes to financial statements are


an
integral part of these statements.




F-2




BNH
INC.


(A
DEVELOPMENT STAGE COMPANY)


STATEMENTS OF OPERATIONS


FOR
THE THREE MONTHS ENDED MARCH 31, 2010 AND 2009, AND


CUMULATIVE
FROM INCEPTION (SEPTEMBER 4, 2007)


THROUGH
MARCH 31, 2010


(Unaudited)


Three
      Months
                    
                    
                    Three
      MonthsEnded
                    
                    
                    Ended
                    
                    
                    CumulativeMarch
      31,
                    
                    
                    March
      31,
                    
                    
                    From2010
                    
                    
                    2009
                    
                    
                    Inception(Unaudited)
                    
                    
                    (Unaudited)
                    
                    
                    (Unaudited)Revenues
                    
                    $
                    -
                    
                    
                    $
                    -
                    
                    
                    $
                    -Expenses:General
      and administrative-Professional
      fees
                    
                    
                    10,911
                    
                    
                    
                    3,975
                    
                    
                    
                    110,081Filing
      fees
                    
                    
                    1,545
                    
                    
                    
                    579
                    
                    
                    
                    6,135Officers'
      compensation paid by issued shares
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    4,750Organization
      costs
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    488Travel
                    
                    
                    
                    
                    
                    
                    
                    
                    
                    
                    3,419Other
                    
                    
                    59
                    
                    
                    
                    57
                    
                    
                    
                    1,218Total
      general and administrative expenses
                    
                    
                    12,515
                    
                    
                    
                    4,611
                    
                    
                    
                    126,091-(Loss)
      from Operations
                    
                    
                    (12,515
                    )
                    
                    
                    (4,611
                    )
                    
                    
                    (126,091
                    )Other
      Income (Expense)
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -Provision
      for Income Taxes
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -Net
      (Loss)
                    
                    $
                    (12,515
                    )
                    
                    $
                    (4,611
                    )
                    
                    $
                    (126,091
                    )(Loss)
      Per Common Share:(Loss)
      per common share - Basic and Diluted
                    
                    $
                    (0.00
                    )
                    
                    $
                    (0.00
                    )Weighted
      Average Number of Common SharesOutstanding
      - Basic and Diluted
                    
                    
                    7,583,334
                    
                    
                    
                    6,758,242


The
accompanying notes to financial statements are


an
integral part of these statements.




F-3





BNH
INC.


(A
DEVELOPMENT STAGE COMPANY)


STATEMENT OF STOCKHOLDERS' EQUITY


FOR
THE PERIOD FROM INCEPTION (SEPTEMBER 4, 2007)


THROUGH
MARCH 31, 2010


(Unaudited)




Common
      stock
                                    
                                    
                                    Additional
                                      Paid-in
                                    
                                    
                                    Paid
                                      Stock
                                    
                                    
                                    (Deficit)
                                      Accumulated
                                      During
      the
                                      DevelopmentDescription
                                    
                                    Shares
                                    
                                    
                                    Amount
                                    
                                    
                                    Capital
                                    
                                    
                                    Subscriptions
                                    
                                    
                                    Stage
                                    
                                    
                                    TotalsBalance
      at inception
                                    
                                    
                                    -
                                    
                                    
                                    $
                                    -
                                    
                                    
                                    $
                                    -
                                    
                                    
                                    $
                                    -
                                    
                                    
                                    $
                                    -
                                    
                                    
                                    $
                                    -Common
      stock issued for officers' compensation
                                    
                                    
                                    4,750,000
                                    
                                    
                                    
                                    4,750
                                    
                                    
                                    
                                    -
                                    
                                    
                                    
                                    -
                                    
                                    
                                    
                                    -
                                    
                                    
                                    
                                    4,750Payment
      for stock subscriptions
                                    
                                    
                                    -
                                    
                                    
                                    
                                    -
                                    
                                    
                                    
                                    -
                                    
                                    
                                    
                                    1,000
                                    
                                    
                                    
                                    -
                                    
                                    
                                    
                                    1,000Common
      stock issued for cash
                                    
                                    
                                    1,250,000
                                    
                                    
                                    
                                    1,250
                                    
                                    
                                    
                                    24,000
                                    
                                    
                                    
                                    -
                                    
                                    
                                    
                                    -
                                    
                                    
                                    
                                    25,250Net
      (loss) for the year
                                    
                                    
                                    -
                                    
                                    
                                    
                                    -
                                    
                                    
                                    
                                    -
                                    
                                    
                                    
                                    -
                                    
                                    
                                    
                                    (25,798
                                    )
                                    
                                    
                                    (25,798
                                    )Balance
      - December 31, 2007
                                    
                                    
                                    6,000,000
                                    
                                    
                                    $
                                    6,000
                                    
                                    
                                    $
                                    24,000
                                    
                                    
                                    $
                                    1,000
                                    
                                    
                                    $
                                    (25,798
                                    )
                                    
                                    $
                                    5,202Common
      stock issued for cash
                                    
                                    
                                    1,000,000
                                    
                                    
                                    
                                    1,000
                                    
                                    
                                    
                                    24,000
                                    
                                    
                                    
                                    (1,000
                                    )
                                    
                                    
                                    -
                                    
                                    
                                    
                                    24,000Net
      (loss) for the year
                                    
                                    
                                    -
                                    
                                    
                                    
                                    -
                                    
                                    
                                    
                                    -
                                    
                                    
                                    
                                    -
                                    
                                    
                                    
                                    (28,511
                                    )
                                    
                                    
                                    (28,511
                                    )Balance
      - December 31, 2008
                                    
                                    
                                    7,000,000
                                    
                                    
                                    $
                                    7,000
                                    
                                    
                                    $
                                    48,000
                                    
                                    
                                    $
                                    -
                                    
                                    
                                    $
                                    (54,309
                                    )
                                    
                                    $
                                    691Common
      Stock Issued for Cash
                                    
                                    
                                    583,334
                                    
                                    
                                    
                                    583
                                    
                                    
                                    
                                    16,917
                                    
                                    
                                    
                                    
                                    
                                    
                                    
                                    
                                    
                                    
                                    
                                    17,500Net
      (loss) for the period
                                    
                                    
                                    -
                                    
                                    
                                    
                                    -
                                    
                                    
                                    
                                    -
                                    
                                    
                                    
                                    -
                                    
                                    
                                    
                                    (59,267
                                    )
                                    
                                    
                                    (59,267
                                    )Balance
      - December 31, 2009
                                    
                                    
                                    7,583,334
                                    
                                    
                                    
                                    7,583
                                    
                                    
                                    
                                    64,917
                                    
                                    
                                    
                                    -
                                    
                                    
                                    
                                    (113,576
                                    )
                                    
                                    
                                    (41,076
                                    )Net
      (loss) for the period
                                    
                                    
                                    
                                    
                                    
                                    
                                    
                                    
                                    
                                    
                                    
                                    
                                    
                                    
                                    
                                    
                                    
                                    
                                    (12,515
                                    )
                                    
                                    
                                    (12,515
                                    )Balance
      - March 31, 2010
                                    
                                    
                                    7,583,334
                                    
                                    
                                    
                                    7,583
                                    
                                    
                                    
                                    64,917
                                    
                                    
                                    
                                    -
                                    
                                    
                                    
                                    (126,091
                                    )
                                    
                                    
                                    (53,591
                                    )




The
accompanying notes to financial statements are


an
integral part of these statements.




F-4




BNH
INC.


(A
DEVELOPMENT STAGE COMPANY)


STATEMENTS
OF CASH FLOWS


FOR
THE THREE MONTHS ENDED MARCH 31, 2010 AND 2009, AND


CUMULATIVE
FROM INCEPTION (SEPTEMBER 4, 2007)


THROUGH
MARCH 31, 2010


(Unaudited)




Three
      Months
                                
                                
                                Three
      MonthsEnded
                                
                                
                                Ended
                                
                                
                                CumulativeMarch
      31,
                                
                                
                                March
      31,
                                
                                
                                From2010
                                
                                
                                2009
                                
                                
                                Inception(Unaudited)
                                
                                
                                (Unaudited)
                                
                                
                                (Unaudited)Operating
      Activities:Net
      (loss)
                                
                                $
                                (12,515
                                )
                                
                                $
                                (4,611
                                )
                                
                                $
                                (126,091
                                )Adjustments
      to reconcile net (loss) to net cashprovided by operating activities:Common
      stock issued for officers' compensation
                                
                                
                                -
                                
                                
                                
                                -
                                
                                
                                
                                4,750Changes
      in net assets and liabilities-Prepaid
      expenses
                                
                                
                                156
                                
                                
                                
                                287
                                
                                
                                
                                -Accounts
      payable
                                
                                
                                (1,095
                                )
                                
                                
                                2,766
                                
                                
                                
                                1,130Accrued
      liabilities
                                
                                
                                (3,400
                                )
                                
                                
                                -
                                
                                
                                
                                2,250Net
      Cash Used in Operating Activities
                                
                                
                                (16,854
                                )
                                
                                
                                (1,558
                                )
                                
                                
                                (117,961
                                )Investing
      Activities:Cash
      provided by investing activities
                                
                                
                                -
                                
                                
                                
                                -
                                
                                
                                
                                -Net
      Cash Provided by Investing Activities
                                
                                
                                -
                                
                                
                                
                                -
                                
                                
                                
                                -Financing
      Activities:Loan
      from shareholder
                                
                                
                                16,795
                                
                                
                                
                                1,500
                                
                                
                                
                                56,652Issuance
      of common stock for cash
                                
                                
                                -
                                
                                
                                
                                -
                                
                                
                                
                                67,750Net
      Cash Provided by Financing Activities
                                
                                
                                16,795
                                
                                
                                
                                1,500
                                
                                
                                
                                124,402Net
      (Decrease) Increase in Cash
                                
                                
                                (59
                                )
                                
                                
                                (58
                                )
                                
                                
                                6,441Cash
      - Beginning of Period
                                
                                
                                6,500
                                
                                
                                
                                6,354
                                
                                
                                
                                -Cash
      - End of Period
                                
                                $
                                6,441
                                
                                
                                $
                                6,296
                                
                                
                                $
                                6,441Supplemental
      disclosure of cash flow information:Cash
      paid during the period for:Interest
                                
                                $
                                -
                                
                                
                                $
                                -
                                
                                
                                $
                                -Income
      taxes
                                
                                $
                                -
                                
                                
                                $
                                -
                                
                                
                                $
                                -


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




F-5




BNH
INC.


(A
DEVELOPMENT STAGE COMPANY)


NOTES
TO FINANCIAL STATEMENTS


MARCH
31, 2010




1. Summary of
Significant Accounting Policies




Basis
of Presentation and Organization




BNH Inc.
(the “Company”) is a Nevada corporation in the development stage, and has
limited operations. The Company was incorporated under the laws of the State of
Nevada on September 4, 2007. Initially, the proposed business plan of the
Company was to establish the Company as a distributor of bio-degradable plastic
utensils to environmentally conscious consumers in Israel and later in the
United States.   Currently, the Company has shifted its focus
from bio-plastic products to the emerging greenhouse gas (GHG) carbon credit
market. The accompanying financial statements of the Company were prepared from
the accounts of the Company under the accrual basis of accounting.





Unaudited
Interim Financial Statements





The
interim financial statements of the Company as of March 31, 2010, and for the
periods then ended, and cumulative from inception, are unaudited. However, in
the opinion of management, the interim financial statements include all
adjustments, consisting of only normal recurring adjustments, necessary to
present fairly the Company’s financial position as of March 31, 2010, and the
results of its operations and its cash flows for the periods ended March 31,
2010, and cumulative from inception. These results are not necessarily
indicative of the results expected for the calendar year ending December 31,
2010. The accompanying financial statements and notes thereto do not reflect all
disclosures required under accounting principles generally accepted in the
United States. Refer to the Company’s audited financial statements as of
December 31, 2009, filed with the SEC, for additional information, including
significant accounting policies.





Cash and Cash
Equivalents





For
purposes of reporting within the statement of cash flows, the Company considers
all cash on hand, cash accounts not subject to withdrawal restrictions or
penalties, and all highly liquid debt instruments purchased with a maturity of
three months or less to be cash and cash equivalents.





Revenue
Recognition





The Company is in the development stage
and has yet to realize revenues from operations. Once the Company has commenced
operations, it will recognize revenues when delivery of goods or completion of
services has occurred provided there is persuasive evidence of an agreement,
acceptance has been approved by its customers, the fee is fixed or determinable
based on the completion of stated terms and conditions, and collection of any
related receivable is probable.





Loss
per Common Share





Basic
loss per share is computed by dividing the net loss attributable to the common
stockholders by the weighted average number of shares of common stock
outstanding during the period. Fully diluted loss per share is computed similar
to basic loss per share except that the denominator is increased to include the
number of additional common shares that would have been outstanding if the
potential common shares had been issued and if the additional common shares were
dilutive. There were no dilutive financial instruments issued or outstanding for
the period ended March 31, 2010.





Income
Taxes





Deferred
tax assets and liabilities are determined based on temporary differences between
the bases of certain assets and liabilities for income tax and financial
reporting purposes. The deferred tax assets and liabilities are classified
according to the financial statement classification of the assets and
liabilities generating the differences.




F-6




The
Company maintains a valuation allowance with respect to deferred tax assets. The
Company establishes a valuation allowance based upon the potential likelihood of
realizing the deferred tax asset and taking into consideration the Company’s
financial position and results of operations for the current period. Future
realization of the deferred tax benefit depends on the existence of sufficient
taxable income within the carry-forward period under the federal tax
laws.





Changes
in circumstances, such as the Company generating taxable income, could cause a
change in judgment about the realizability of the related deferred tax asset.
Any change in the valuation allowance will be included in income in the year of
the change in estimate.




Fair
Value of Financial Instruments





The
Company estimates the fair value of financial instruments using the available
market information and valuation methods. Considerable judgment is required in
estimating fair value. Accordingly, the estimates of fair value may not be
indicative of the amounts the Company could realize in a current market
exchange. As of December 31, the carrying value of accounts payable-trade and
accrued liabilities approximated fair value due to the short-term nature and
maturity of these instruments.





Deferred
Offering Costs





The
Company defers as other assets the direct incremental costs of raising capital
until such time as the offering is completed. At the time of the completion of
the offering, the costs are charged against the capital raised. Should the
offering be terminated, deferred offering costs are charged to operations during
the period in which the offering is terminated.





Concentration
of Risk





As of
March  31, 2010, the Company maintained its cash account at one
commercial bank. The balance in the account was subject to FDIC
coverage.





Common
Stock Registration Expenses





The
Company considers incremental costs and expenses related to the registration of
equity securities with the SEC, whether by contractual arrangement as of a
certain date or by demand, to be unrelated to original issuance transactions. As
such, subsequent registration costs and expenses are reflected in the
accompanying financial statements as general and administrative expenses, and
are expensed as incurred.





Lease
Obligations





All
non-cancellable leases with an initial term greater than one year are
categorized as either capital leases or operating leases. Assets recorded under
capital leases are amortized according to the methods employed for property and
equipment or over the term of the related lease, if shorter.





Estimates





The
financial statements are prepared on the basis of accounting principles
generally accepted in the United States. 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 as of March 31, 2010  and expenses for the three months
ended March 31, 2010, and cumulative from inception. Actual results could differ
from those estimates made by management.




F-7




Fiscal
Year End





The
Company has adopted a fiscal year end of December 31.





Recent Accounting
Pronouncements




In April
2009, the FASB issued FSP No. FAS 157-4, “Determining Fair Value When the Volume
and Level of Activity for the Asset or Liability Have Significantly Decreased
and Identifying Transactions That Are Not Orderly” (“FSP FAS 157-4”), codified
in FASB ASC 820-10-65, which provides additional guidance for estimating fair
value in accordance with ASC 820-10 when the volume and level of activity for an
asset or liability have significantly decreased. ASC 820-10-65 also includes
guidance on identifying circumstances that indicate a transaction is not
orderly. The adoption of ASC 820-10-65 did not have an impact on the Company's
results of operations or financial condition.




In May
2009, the FASB issued SFAS No. 165, "Subsequent Events" ("SFAS 165") codified in
FASB ASC 855-10-05, which provides guidance to establish general standards of
accounting for and disclosures of events that occur after the balance sheet date
but before financial statements are issued or are available to be issued. FASB
ASC 855-10-05 also requires entities to disclose the date through which
subsequent events were evaluated as well as the rationale for why that date was
selected. FASB ASC 855-10-05 is effective for interim and annual periods ending
after June 15, 2009. FASB ASC 855-10-05 requires that public entities evaluate
subsequent events through the date that the financial statements are
issued.




In June
2009, the FASB issued SFAS No. 166, "Accounting for Transfers of Financial
Assets - an amendment of FASB Statement No. 140" ("SFAS 166"), codified as FASB
ASC 860, which requires entities to provide more information regarding sales of
securitized financial assets and similar transactions, particularly if the
entity has continuing exposure to the risks related to transferred financial
assets. FASB ASC 860 eliminates the concept of a "qualifying special-purpose
entity," changes the requirements for derecognizing financial assets and
requires additional disclosures. FASB ASC 860 is effective for fiscal years
beginning after November 15, 2009. The adoption of FASB ASC 860 did not have an
impact on the Company's financial condition, results of operations or cash
flows.




In June
2009, the FASB issued SFAS No. 167, "Amendments to FASB Interpretation No.
46(R)" ("SFAS 167"), codified as FASB ASC 810-10, which modifies how a company
determines when an entity that is insufficiently capitalized or is not
controlled through voting (or similar rights) should be consolidated. FASB ASC
810-10 clarifies that the determination of whether a company is required to
consolidate an entity is based on, among other things, an entity's purpose and
design and a company's ability to direct the activities of the entity that most
significantly impact the entity's economic performance. FASB ASC 810-10 requires
an ongoing reassessment of whether a company is the primary beneficiary of a
variable interest entity. FASB ASC 810-10 also requires additional disclosures
about a company's involvement in variable interest entities and any significant
changes in risk exposure due to that involvement. FASB ASC 810-10 is effective
for fiscal years beginning after November 15, 2009. The adoption of FASB ASC
810-10 did not have an impact on the Company's financial condition, results of
operations or cash flows.




In June
2009, the FASB issued FASB ASC 105, Generally Accepted Accounting Principles,
which establishes the FASB Accounting Standards Codification as the sole source
of authoritative generally accepted accounting principles. Pursuant to the
provisions of FASB ASC 105, we have updated references to GAAP in our financial
statements. The adoption of FASB ASC 105 did not impact the Company's financial
position or results of operations.




F-8




2. Development Stage
Activities and Going Concern





The
Company is currently in the development stage, and has not commenced operations.
Initially, the business plan of the Company is to establish the Company as a
distributor of bio-plastic utensils to environmentally conscious consumers in
Israel and later in the United States.   Currently, the Company
has shifted its focus from bioplastic products to the emerging greenhouse gas
(GHG) carbon credit market.





The
Company began a capital formation activity through a PPO, exempt from
registration under the Securities Act of 1933, to raise up to $50,000 through
the issuance of 2,000,000 shares of its common stock, par value $0.001 per
share, at an offering price of $0.025 per share. As of January 23, 2008, the
Company had fully subscribed the PPO and raised $50,000 in proceeds with the
issuance of 2,000,000 shares of its common stock.





The Company also commenced an activity
to submit a Registration Statement on Form S-1 to the Securities and Exchange
Commission (“SEC”) to register 2,000,000 of its outstanding shares of common
stock on behalf of selling stockholders. The Company will not receive any of the
proceeds of this registration activity once the shares of common stock are
sold.The Registration
Statement on Form S-1 was filed with the SEC on April 16, 2008, and declared
effective on April 30, 2008.





The
accompanying financial statements have been prepared in conformity with
accounting principles generally accepted in the United States, which contemplate
continuation of the Company as a going concern. The Company has not established
any source of revenues to cover its operating costs, and as such, has incurred
an operating loss since inception. Further, as of March 31, 2010, the cash
resources of the Company were insufficient to meet its current business plan.
These and other factors raise substantial doubt about the Company’s ability to
continue as a going concern. The accompanying financial statements do not
include any adjustments to reflect the possible future effects on the
recoverability and classification of assets or the amounts and classification of
liabilities that may result from the possible inability of the Company to
continue as a going concern.





3.   Loan
from Stockholder





As of
March 31, 2010, loans from an individual who is a stockholder of the Company
amounted to $56,652. The loans were provided for working capital purposes, and
are unsecured, non-interest bearing, and have no terms for
repayment.





4. Common
Stock





On
September 4, 2007, pursuant to the terms of a subscription agreement, the
Company sold 250,000 shares of common stock to Mrs. Goldy Klein, Secretary, for
cash payment of $250 (par value).  The Company believes this issuance
was deemed to be exempt under Regulation S of the Securities Act.





On
October 18, 2007, the Company issued 1,500,000 shares of common stock, valued at
$1,500, to an officer of the Company for services rendered.





On
October 25, 2007, the Company issued 250,000 shares of common stock, valued at
$250, to an officer of the Company for services rendered.





On
November 12, 2007, the Company issued 3,000,000 shares of common stock, valued
at $3,000, to an officer of the Company for services rendered.





In
addition, on November 30, 2007, the Company began a capital formation activity
through a PPO, exempt from registration under the Securities Act of 1933, to
raise up to $50,000 through the issuance of 2,000,000 shares of its common
stock, par value $0.001 per share, at an offering price of $0.025 per share. As
of December 27, 2007, the Company had received $26,000 in proceeds from the PPO.
As of January 23, 2008, the Company had fully subscribed the PPO and raised
$50,000 in proceeds with the issuance of 2,000,000 shares of its common
stock.





The
Company also commenced an activity to submit a Registration Statement on Form
S-1 to the Securities and Exchange Commission (“SEC”) to register 2,000,000 of
its outstanding shares of common stock on behalf of selling stockholders. The
Company will not receive any of the proceeds of this registration activity once
the shares of common stock are sold.  The Registration Statement on
Form S-1 was filed with the SEC on April 16, 2008, and declared effective on
April 30, 2008.





On July
27, 2009, 291,667
shares  were  issued  pursuant  to a
private
placement  subscription  agreement  for  cash  consideration  of  $8,750  at
a subscription  price of $0.03 per unit.





On
November 9, 2009, 291,667
shares  were  issued  pursuant  to a
private
placement  subscription  agreement  for  cash  consideration  of  $8,750  at
a subscription  price of $0.03 per unit.




F-9




5. Income
Taxes





The
provision (benefit) for income taxes for the three months ended March 31, 2010
and 2009 and, was as follows (assuming a 23% effective tax rate):




2010
                                          
                                          
                                          2009Current
      Tax Provision:Federal-Taxable
      income
                                          
                                          $
                                          -
                                          
                                          
                                          $
                                          -Total
      current tax provision
                                          
                                          $
                                          -
                                          
                                          
                                          $
                                          -Deferred
      Tax Provision:Federal-Loss
      carryforwards
                                          
                                          $
                                          2,878
                                          
                                          
                                          $
                                          1,061Change
      in valuation allowance
                                          
                                          
                                          (2,878
                                          )
                                          
                                          
                                          (1,061
                                          )Total
      deferred tax provision
                                          
                                          $
                                          -
                                          
                                          
                                          $
                                          -




The
Company had deferred income tax assets as of March 31, 2010 and December 31,
2009, as follows:




2010
                      
                      
                      2009Loss
      carryforwards
                      
                      $
                      29,001
                      
                      
                      $
                      26,122Less
      - valuation allowance
                      
                      
                      (29,001
                      )
                      
                      
                      (26,122
                      )Total
      net deferred tax assets
                      
                      $
                      -
                      
                      
                      $
                      -





The
Company provided a valuation allowance equal to the deferred income tax assets
for the three months ended March 31, 2010 and the year ended December 31, 2009
because it is not presently known whether future taxable income will be
sufficient to utilize the loss carryforwards.





As of
March 31, 2010, the Company had approximately $126,091 in tax loss carryforwards
that can be utilized in future periods to reduce taxable income, and expire by
the year 2030.




6.   Related
Party Transactions





On
September 4, 2007, pursuant to the terms of a subscription agreement, the
Company sold 250,000 shares of common stock to Mrs. Goldy Klein, Secretary, for
cash payment of $250 (par value).  The Company believes this issuance
was deemed to be exempt under Regulation S of the Securities Act.





On
October 18, 2007, the Company issued 1,500,000 shares of common stock, valued at
$1,500 to an officer of the Company for services rendered.





On
October 25, 2007, the Company issued 250,000 shares of common stock, valued at
$250 to an officer of the Company for services rendered.





On
November 12, 2007, the Company issued 3,000,000 shares of common stock, valued
at $3,000 to an officer of the Company for services rendered.





As
described in Note 3, as of March 31, 2010, the Company owed $56,652 to an
individual who is a stockholder of the Company.





F-10





Item 2. Management’s Discussion and
Analysis of Financial Condition and Results of Operation.





The
following Management’s Discussion and Analysis of Financial Condition and
Results of Operations (“MD&A”) is intended to help you understand our
historical results of operations during the periods presented and our financial
condition. This MD&A should be read in conjunction with our financial
statements and the accompanying notes, and contains forward-looking statements
that involve risks and uncertainties. See section entitled “Cautionary Statement
Concerning Forward Looking Statements” above.





Overview




We were
incorporated in the State of Nevada on September 4, 2007.  Initially
we had been in the process of establishing ourselves as a company in the
business of distributing and selling environmentally friendly and biodegradable
plastics (bioplastics for short), in the form of disposable utensils, plates,
and cups to environmentally-conscious consumers in Israel and later in the
United States.   Currently, the Company has shifted its focus
from bioplastic products to the emerging greenhouse gas (GHG) carbon credit
market.





We have
not generated any revenue since our inception. We are a development stage
company with limited operations. Our auditors have issued a going concern
opinion. This means that our auditors believe there is substantial doubt that we
can continue as an ongoing business for the next twelve
months.





Plan
of Operation





We have
not had any revenues since our inception on September 4, 2007. As originally
stated, the business plan of the Company was to establish the Company as a
distributor of environmentally-friendly, bioplastic
utensils.  Currently, the Company has shifted its focus from
bioplastic products to the emerging greenhouse gas (GHG) carbon credit
market.  The Company plans to provide matching services for
corporations who need to reduce emission outputs in light of more stringent
environmental regulations with emission credit specialists who can assist such
corporations in reducing their emissions and in earning and/or trading carbon
credits.   Our activities and plans in the carbon credit market
are described in more detail below.





In the
next twelve months, we intend to target corporations, first in Israel and in the
US, and eventually in Europe, that are considered greenhouse gas polluters and
which, if advised correctly, may make changes in their facilities to reduce the
amount of greenhouse gas their facilities produce and thereby earn carbon
credits.  In order to achieve these goals, we will attempt to retain a
qualified board of advisors and to attract a new member to our Board of
Directors in order assist us in identifying and locating professionals who could
implement such carbon credit reductions and polluters that will require such
services.





We intend
to attract a board of advisors by engaging a professional head hunting
company.  If we receive additional funding, we may seek to hire
professional management for the Company.








The
Potential GHG Carbon Credit Market in the United States





Current
worldwide legislation and regulatory measures to reduce atmospheric
concentrations of greenhouse gases have their roots in climate change challenges
presented by the United Nations Framework Convention on Climate Change and the
Kyoto Protocol.





On June
27, 2009, the U.S. House of Representatives passed the ground breaking American
Clean Energy and Security Act to impose first-ever limits in the U.S. related to
greenhouse-gas emissions linked to global warming. It is expected that this
legislation will face a tough legislative battle in the Senate. President Obama
called the vote in the House of Representatives “a bold and necessary step that
holds the promise of creating new industry and millions of new jobs.” The bill,
he said, would usher in “a critical transition to a clean-energy economy without
untenable burdens on the American people.”




11




The bill,
if approved by the Senate, would create a market in the United States for
trading pollution permits to curb emissions.





Reduction
Target





The
American Clean Energy and Security Act calls for the U.S. to reduce its
greenhouse-gas emissions by 17 percent from 2005 levels by 2020. It would
establish a limited number of pollution permits, more than 70 percent of which
would initially be given away free to utilities, manufacturers, state
governments and others, according to the Congressional Budget Office. The
permits could then be traded or sold.  In addition, most states would
be required to generate 20 percent of their electricity from renewable sources
by 2020.





Jobs and
Oil Usage Reduction





House
Democratic leaders say the bill would create 1.7 million new jobs and save 240
million barrels of oil by 2020.





Cost Per
Household





According
to the Congressional Budget Office the new bill would cost the average American
household $175 a year in extra expenses.





We
believe that the carbon market is in an expansion phase, and that in the coming
years it will grow if U.S. federal regulation of GHG emissions becomes a
reality.  Any cap-and-trade system will most likely include provisions
relating to allowances issued to regulated entities by the government, emission
reduction certificates generated by clean development projects outside the
regulated entities, and market-based incentives for Reduced Emissions from
Deforestation and Degradation (REDD), such as forestry offsets.





As
corporations that produce GHG emissions become subject to increased regulation,
they will be interested in effective and relatively inexpensive ways to reduce
their GHG emissions to comply with, as well as benefit from, any applicable
cap-and-trade system.





Matching
Services – Carbon Credits





We
foresee the development of a new service market in which brokers would match GHG
emissions specialists with corporations with high GHG emissions which are
interested in receiving advice on how to earn and trade carbon
credits.





Our
management has decided to enter this field and we plan to introduce GHG
emissions consultants to GHG emissions producing corporations, and to assist
these GHG emissions consultants with entering into business agreements with
these GHG emissions producers.  In exchange for our services, our plan
is to receive a percentage of the revenues earned by such consultants on each
client that we match.





As a
preliminary step, we intend to increase the size of our Board of Directors and
our advisory board to include experts in the field of climate
technologies.  We intend to retain the necessary professionals to
assist us in matching GHG emissions producers with GHG emissions
consultants.





Over the
next twelve months we plan to continue in our efforts to locate suitable
corporations in Israel and the United States, and eventually in Europe, that are
seeking to reduce emission outputs and thereby earn carbon credits. In addition
we plan to locate suitable climate consultants whom we can match their services
with the corporations. We will also attempt to retain an advisory board as well
as to expand our Board of Directors to include climate, environmental and other
professionals.  We expect these new Board members not only to help us
build credibility in the eyes of potential customers but also to work to bring
in business to our company.




12




Management
continues to seek funding from its shareholders and other
qualified investors to pursue our business plan.  In the alternative,
we may be amenable to a sale, merger or other acquisition in the event such
transaction is deemed by management to be in the best interests of our
shareholders.





Results
of Operations





Revenues





We had no
revenues for the period from September 4, 2007 (date of inception) through March
31, 2010.





Expenses





Our
expenses for the three month period ended March 31, 2010 were $12,515 compared
with $4,611 for the same period three month period in 2009. Our expenses since
our inception were $126,091. These expenses were comprised primarily of
professional fees and general and administrative expenses.





Net
Income (Loss)





Our net loss for the three month period
ended March 31, 2010 was $12,515compared with $4,611 for the same three
month period in 2009. During the period from September 4, 2007 (date of
inception) through March 31, 2010, we incurred a net loss of $126,091. This loss
consisted primarily of professional fees and administrative expenses. Since
inception, we have sold 7,583,334 shares of common stock.




Liquidity
and Capital Resources




Our
balance sheet as of March 31, 2010, reflects assets of $6,441. Cash and cash
equivalents from inception to date have been insufficient to provide the working
capital necessary to operate to date.




We
anticipate generating losses and, therefore, may be unable to continue
operations in the future. If we require additional capital, we would have to
issue debt or equity or enter into a strategic arrangement with a third party.
There can be no assurance that additional capital will be available to us. We
currently have no agreements, arrangements or understandings with any person to
obtain funds through bank loans, lines of credit or any other
sources.




Going
Concern Consideration




The
financial statements contained herein for the fiscal quarter ended March 31,
2010, have been prepared on a “going concern” basis, which contemplates the
realization of assets and the satisfaction of liabilities in the normal course
of business. For the reasons discussed herein and in the footnotes to our
financial statements included herein, there is a significant risk that we will
be unable to continue as a going concern. Our audited financial statements
included in our Annual Report on Form 10-K for the period ended December 31,
2009, contain additional note disclosures describing the circumstances that lead
to this disclosure by our registered independent auditors.





Off-Balance
Sheet Arrangements





We have
no off-balance sheet arrangements.





Item
3. Quantitative and Qualitative Disclosures about Market Risk.





There
have been no material changes from the information provided in the Company’s
Annual Report on Form 10-K for the year ended December 31,
2008.




13




ITEM 4.
            Controls
      and Procedures




(a) Evaluation of disclosure controls and
procedures. We maintain “disclosure controls and procedures,” as such
term is defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (the
“Exchange Act”), that are designed to ensure that information required to be
disclosed by us in reports that we file or submit under the Exchange Act is
recorded, processed, summarized, and reported within the time periods specified
in Securities and Exchange Commission rules and forms, and that such information
is accumulated and communicated to our management, including our Chief Executive
Officer and Chief Financial Officer, as appropriate, to allow timely decisions
regarding required disclosure. In designing and evaluating our disclosure
controls and procedures, management recognized that disclosure controls and
procedures, no matter how well conceived and operated, can provide only
reasonable, not absolute, assurance that the objectives of the disclosure
controls and procedures are met. Our disclosure controls and procedures have
been designed to meet reasonable assurance standards. Additionally, in designing
disclosure controls and procedures, our management necessarily was required to
apply its judgment in evaluating the cost-benefit relationship of possible
disclosure controls and procedures. The design of any disclosure controls and
procedures also is based in part upon certain assumptions about the likelihood
of future events, and there can be no assurance that any design will succeed in
achieving its stated goals under all potential future conditions.




Based on
their evaluation as of the end of the period covered by this Quarterly Report on
Form 10-Q, our Chief Executive Officer and Chief Financial Officer have
concluded that, as of such date, our disclosure controls and procedures were
effective at the reasonable assurance level.




(b) Changes in internal control over
financial reporting. There was no change in our internal control over
financial reporting (as defined in Rule 13a-15(f) under the Exchange Act)
identified in connection with management’s evaluation during our last fiscal
quarter that has materially affected, or is reasonably likely to materially
affect, our internal control over financial reporting.





14




PART
II





Item
1. Legal Proceedings.





None.





Item
1A. Risk Factors.




There
have been no material changes from the risk factors disclosed in our annual
report on Form 10-K for the year ended December 31, 2009.





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





None.




Item
3. Defaults Upon Senior Securities.





None.





Item 4. (Removed and Reserved).








Item
5. Other Information.





None.





Item
6. Exhibits.




Exhibit
                  Number
                
                Exhibit
      Description3.1
                -
                Certificate
      of Incorporation.*3.2
                -
                Bylaws.*31
                -
                Rule
      13a-14(a)/15d-14(a) Certification of Principal Executive and Financial
      Officer32
                -
                Section
      1350 Certification of Principal Executive and Financial
      Officer




*
incorporated by reference from Registrant's Registration Statement on Form S-1
filed on April 16, 2008 Registration No. 333-150266.




15




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.




BNH
INC.




By:
                      /s/
      Nehemya HesinNehemya
      HesinTitle:
      President, Treasurer and Director
                        (Principal Executive Officer, Principal Financing Officer
                        and Principal Accounting Officer)




Dated:
May 4, 2010