|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | **UNITED STATES**

**SECURITIES AND  EXCHANGE COMMISSION**

Washington, D.C. 20549

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                           | **FORM 10-Q**

                                                              |   |   |
| (Mark  One)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                           |                                                                              |   |   |
| x QUARTERLY REPORT  PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly  period ended June 30, 2009

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                           | OR

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| 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******333.151148

                                   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                           | **HAMPTONS EXTREME, INC.**

(Name of small business  issuer in its charter)       |   |   |
| **Delaware**

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                           | 20-8731646

                                                                 |
| (State  or Other Jurisdiction of

Incorporation  or Organization)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | (I.R.S. Employer  Identification No.)                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 509 S. San Clemente Street
Ventura, California 93001
(Address of Principal  Executive Offices) |                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                           |  

(805) 754-9805

(Issuer's Telephone  Number, Including Area Code)

  |   |   |
|  

Check whether the issuer (1) filed all reports  required to be filed by Section 13 or 15(d) of the Exchange Act 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 is a large accelerated filer, an  accelerated filer, a non-accelerated filer or a smaller reporting company  filer.  See definition of “accelerated filer” and “large  accelerated filer” in Rule 12b-2 of the Exchange Act (Check one):

 

Large  Accelerated Filer    Accelerated  Filer        Non-Accelerated  Filer       Smaller  Reporting Companyx

 

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

YES x NO 

  |
| State  the number of shares outstanding of each of the issuer’s classes of common  equity, as of the latest practicable date: 1,035,000 shares of common stock,  par value $.0001 per share, as of August 13, 2009.

 

Transitional Small Business Disclosure Format  (Check one). YES  NO  x

 

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                |                                                                                   |  |  |  |  |  |  |

 

----

**HAMPTONS EXTREME,INC.**

** **

**(A DEVELOPMENTSTAGE COMPANY)**

** **

**June 30, 2009 and 2008**

 

**INDEXTO FINANCIAL STATEMENTS**

** **

| Contents                                                                                |   | Page(s) |
|-----------------------------------------------------------------------------------------|--------|---------|
|                                                                                    |   |    |
| Balance  Sheet at June 30, 2009 (Unaudited) and December 31, 2008                       |   | F-2     |
|                                                                                    |   |    |
| Statements  of Operations for the Three Months Ended June 30, 2009 and 2008 (Unaudited) |   | F-3     |
|                                                                                    |   |    |
| Statement  of Operations for the Six Months Ended June 30, 2009 and 2008,               |   |    |
| and  the Period from March 19, 2007 (Inception) through June 30, 2009 (Unaudited)       |   | F-4     |
|                                                                                    |   |    |
| Statement  of Stockholders’ Deficit for the Period from March 19, 2007 (Inception) |   |    |
|  through  June 30, 2009 (Unaudited)                                                |   | F-5     |
|                                                                                    |   |    |
| Statements  of Cash Flows for the Three Months Ended March 31, 2009 and 2008            |   |    |
| and  the Period from March 19, 2007 (Inception) through March 31, 2009 (Unaudited)      |   | F-6     |
|                                                                                    |   |    |
| Notes  to the Financial Statements (Unaudited)                                          |   | F-7     |

** **

** **

** **

** **

** **

** **

** **

** **

** **

** **

F-1

 

----

 

**HAMPTONS EXTREME,INC.**

(A Development StageCompany)

 

Balance Sheets

 

|                                                                                                                                 |      | June 30,

2009   |   |      | December 31, 2008 |  |
|--------------------------------------------------------------------------------------------------------------------------------------|-----------|------------------|--------|-----------|-------------------|--|
|                                                                                                                                 |      | (Unaudited)      |   |      |              |  |
| Current Assets:                                                                                                                      |      |             |   |      |              |  |
| Cash                                                                                                                                 | $         | 31               |   | $         | 919               |  |
| Total current assets                                                                                                                 |      | 31               |   |      | 919               |  |
|                                                                                                                                 |      |             |   |      |              |  |
| TOTAL ASSETS                                                                                                                         | $         | 31               |   | $         | 919               |  |
|                                                                                                                                 |      |             |   |      |              |  |
| Current Liabilities                                                                                                                  |      |             |   |      |              |  |
| Accrued expenses                                                                                                                     | $         | 25,500           |   | $         | 22,500            |  |
|                                                                                                                                 |      |             |   |      |              |  |
| Total current liabilities                                                                                                            |      | 25,500           |   |      | 22,500            |  |
|                                                                                                                                 |      |             |   |      |              |  |
| Stockholders' Deficit:                                                                                                               |      |             |   |      |              |  |
| Preferred stock: $0.0001 par value; 1,000,000 shares  authorized; none issued or outstanding                                         |      | -                |   |      | -                 |  |
|                                                                                                                                      |
| Common stock: $0.0001 par value; 20,000,000 shares  authorized; 1,037,000 and 1,037,000 shares issued and outstanding,  respectively |      | 104              |   |      | 104               |  |
|                                                                                                                                      |
|                                                                                                                                      |
| Additional paid-in capital                                                                                                           |      | 36,996           |   |      | 36,996            |  |
| Deficit accumulated during the development stage                                                                                     |      |  

(62,569) |   |      |  

(58,681)  |  |
| Total stockholders’ deficit                                                                                                     |      | (25,469)         |   |      | (21,581)          |  |
|                                                                                                                                 |      |             |   |      |              |  |
| TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT                                                                                     |  

$ | 31               |   |  

$ | 919               |  |
|                                                                                                                                 |      |             |   |      |              |  |
| See accompanying  notes to the financial statements.                                                                                 |           |

 

 

 

 

 

 

 

 

 

 

F-2

----

 

 

**HAMPTONS EXTREME,INC.**

 (A Development StageCompany)

** **

Statement ofOperations

(Unaudited)

|                                                                           |      | Three Months Ended  June 30, 2009 |      | Three Months Ended  June 30, 2008 |
|--------------------------------------------------------------------------------|-----------|-----------------------------------|-----------|-----------------------------------|
| Operating Expenses:                                                            |      |                              |      |                              |
| Professional fees                                                              | $         | 1,500                             | $         | 4,000                             |
| General and administrative expenses                                            |      | 293                               |      | 3,333                             |
| Total operating expenses                                                       |      | 1,793                             |      | 7,333                             |
|                                                                           |      |                              |      |                              |
| Loss before income taxes                                                       |      | ( 1,793)                          |      | (7,333)                           |
|                                                                           |      |                              |      |                              |
| Provision for income taxes                                                     |      | -                                 |      | -                                 |
|                                                                           |      |                              |      |                              |
| Net loss                                                                       | $         | (1,793)                           | $         | (7,333)                           |
|                                                                           |      |                              |      |                              |
| Net loss per common share – basic and diluted                             |  

$ |  

(0.00)                    |  

$ |  

  (0.01)             |
|                                                                           |      |                              |      |                              |
| Weighted average number of common shares outstanding –  basic and diluted |      |  

 

1,037,000         |      |  

 

1,030,495         |
|                                                                           |      |                              |      |                              |

 

 

 

 

 

 

Seeaccompanying notes to the financial statements.

 

F-3

----

 

**HAMPTONS EXTREME,INC.**

 (A Development StageCompany)

** **

Statement ofOperations

 

|                                                                           |      | Six Months Ended  June 30, 2009 |      | Six Months Ended  June 30, 2008 |      | For the Period from  March 19, 2007 (Inception) through June 30, 2009 |
|--------------------------------------------------------------------------------|-----------|---------------------------------|-----------|---------------------------------|-----------|-----------------------------------------------------------------------|
| Operating Expenses:                                                            |      |                            |      |                            |      |                                                                  |
| Professional fees                                                              | $         | 3,000                           | $         | 9,000                           | $         | 35,000                                                                |
| General and administrative expenses                                            |      | 888                             |      | 6,607                           |      | 27,569                                                                |
| Total operating expenses                                                       |      | 3,888                           |      | 15,607                          |      | 62,569                                                                |
|                                                                           |      |                            |      |                            |      |                                                                  |
| Loss before income taxes                                                       |      | (3,888)                         |      | (15,607)                        |      | (62,569)                                                              |
|                                                                           |      |                            |      |                            |      |                                                                  |
| Provision for income taxes                                                     |      | -                               |      | -                               |      | -                                                                     |
|                                                                           |      |                            |      |                            |      |                                                                  |
| Net loss                                                                       | $         | (3,888)                         | $         | (15,607)                        | $         | (62,569)                                                              |
|                                                                           |      |                            |      |                            |      |                                                                  |
| Net loss per common share - basic and diluted                                  |  

$ |  

(0.00)                  |  

$ |  

(0.02)                  |  

$ |  

(0.06)                                                        |
|                                                                           |      |                            |      |                            |      |                                                                  |
| Weighted average number of common shares outstanding –  basic and diluted |      |  

 

1,037,000       |      |  

 

1,032,808       |      |  

 

1,024,806                                             |
|                                                                           |      |                            |      |                            |      |                                                                  |
| See accompanying  notes to the financial statements.                           |

 

 

 

 

 

 

 

 

 

 

F-4

----

 

**HAMPTONS EXTREME,INC.**

 (A Development StageCompany)

 

Statement ofStockholders’ Deficit

 

|  

 

                                                                     | Common Shares | Amount                                                            | Additional Paid-in  Capital                                                               | Deficit Accumulated  During the Development Stage                                                                | Total Stockholder's  Deficit                                             |
|-------------------------------------------------------------------------------------------|---------------|-------------------------------------------------------------------|-------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------|
|                                                                                      |          |                                                              |                                                                                      |                                                                                                             |                                                                     |
|                                                                                      |          |                                                              |                                                                                      |                                                                                                             |                                                                     |
| Balance, March 19, 2007 (inception)                                                       | 1,000,000     |    $     100                             | $                 - | $                    - | $          100    |
|                                                                                      |          |                                                              |                                                                                      |                                                                                                             |                                                                     |
| Sale of common stock from September 10, 2007 through  December 7, 2007 at $1.00 per share | 24,000        | 2                                                                 | 23,998                                                                                    |                                                                                                             | 24,000                                                                   |
|                                                                                      |          |                                                              |                                                                                      |                                                                                                             |                                                                     |
| Net loss                                                                                  |          |                                                              |                                                                                      | (27,327)                                                                                                         | (27,327)                                                                 |
|                                                                                      |          |                                                              |                                                                                      |                                                                                                             |                                                                     |
| Balance, December 31, 2007                                                                | 1,024,000     |           102             |         23,998                                              | (27,327)                                                                                                         |    (3,227)                                                     |
|                                                                                      |          |                                                              |                                                                                      |                                                                                                             |                                                                     |
| Sale of common stock from January 4, 2008 through November  26, 2008 at $1.00 per share   | 13,000        | 2                                                                 | 12,998                                                                                    |                                                                                                             | 13,000                                                                   |
|                                                                                      |          |                                                              |                                                                                      |                                                                                                             |                                                                     |
| Net loss                                                                                  |          |                                                              |                                                                                      | (31,354)                                                                                                         | (31,354)                                                                 |
|                                                                                      |          |                                                              |                                                                                      |                                                                                                             |                                                                     |
| Balance, December 31, 2008                                                                | 1,037,000     |          104                   |    36,996                                                                  |    (58,681)                                                                                            |    (21,581)                                                    |
|                                                                                      |          |                                                              |                                                                                      |                                                                                                             |                                                                     |
| Net loss                                                                                  |          |                                                              |                                                                                      | (3,888)                                                                                                          | (3,888)                                                                  |
|                                                                                      |          |                                                              |                                                                                      |                                                                                                             |                                                                     |
| Balance, June 30, 2009                                                                    | 1,037,000     | $           104 | $    36,996                                                                | $   (62,569)                                                                                           | $    (25,469)                                             |

 

 

Seeaccompanying notes to the financial statements.

 

 

 

F-5

 

----

 

 

 

**HAMPTONS EXTREME,INC.**

 (A Development StageCompany)

 

Statement of CashFlows

 

|                                                                                                            |   | Six Months Ended June  30, 2009 |   | Six Months Ended June  30, 2008 |   | The Period from  March 19, 2007 (Inception) through June 30, 2009 |
|-----------------------------------------------------------------------------------------------------------------|--------|---------------------------------|--------|---------------------------------|--------|-------------------------------------------------------------------|
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                                           |   |                            |   |                            |   |                                                              |
| Net loss                                                                                                        | $      | (3,888)                         | $      | (15,607)                        | $      | (62,569)                                                          |
| Adjustments to reconcile net loss to net cash used in  operating activities:                                    |   |                            |   |                            |   |                                                              |
| Changes in operating assets and liabilities:                                                                    |   |                            |   |                            |   |                                                              |
| Increase (decrease) in accrued expenses                                                                         |   | 3,000                           |   | (2,000)                         |   | 25,500                                                            |
| Net Cash Used in Operating Activities                                                                           |   | (888)                           |   | (17,607)                        |   | (37,069)                                                          |
|                                                                                                            |   |                            |   |                            |   |                                                              |
| CASH FLOWS FROM FINANCING ACTIVITIES                                                                            |   |                            |   |                            |   |                                                              |
| Sale of common stock                                                                                            |   | -                               |   | 11,000                          |   | 37,100                                                            |
| Net Cash Provided by Financing Activities                                                                       |   | -                               |   | 11,000                          |   | 37,100                                                            |
|                                                                                                            |   |                            |   |                            |   |                                                              |
| NET INCREASE (DECREASE) IN CASH                                                                                 |   | (888)                           |   | (6,607)                         |   | 31                                                                |
|                                                                                                            |   |                            |   |                            |   |                                                              |
| CASH AT BEGINNING OF PERIOD                                                                                     |   | 919                             |   | 10,479                          |   | -                                                                 |
| CASH AT END OF PERIOD                                                                                           | $      | 31                              | $      | 3,872                           | $      | 31                                                                |
|                                                                                                            |   |                            |   |                            |   |                                                              |
| SUPPLEMENTAL SCHEDULE OF CASH            FLOW ACTIVITIES |   |                            |   |                            |   |                                                              |
| Cash Paid For:                                                                                                  |   |                            |   |                            |   |                                                              |
| Interest                                                                                                        | $      | -                               |   | -                               | $      | -                                                                 |
| Income taxes                                                                                                    | $      | -                               |   | -                               | $      | -                                                                 |
| See accompanying  notes to the financial statements.                                                            |

 

 

 

F-6

----

 

**HAMPTONSEXTREME, INC.**

** (A DEVELOPMENTSTAGE COMPANY)**

June 30, 2009 and2008

Notes to theFinancial Statements

 (Unaudited)

 

**NOTE 1 -ORGANIZATION AND OPERATIONS**

 

Hamptons Extreme, Inc. (a developmentstage company) (“Hamptons” or the “Company”) was incorporated on March 19, 2007under the laws of the State of Delaware. Asubstantial portion of Hamptons’ activities has involved developing a businessplan and establishing contacts and visibility in the marketplace and theCompany has not generated any revenue to date. Hamptons plans to producea new vacuum composite molded surfboard, which is less toxic, more durable, andoffers a greater level of performance than other boards.

 

**NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTINGPOLICIES**

 

*Basis ofpresentation*

 

The accompanying interim financial statementsfor the three and six months ended June 30, 2009, the three and six monthsended June 30, 2008, and the period from July 19, 2007 (Inception) through June30, 2009 are unaudited and have been prepared in accordance with accountingprinciples generally accepted in the United States of America (“U.S. GAAP”) forinterim financial information and with the instructions to Form 10-Q andArticle 10 of Regulation S-X. Accordingly, they do not include all of theinformation and footnotes required by U.S. GAAP for complete financialstatements. In the opinion of management, all adjustments (consisting of normalrecurring accruals) considered necessary for a fair presentation have beenincluded. The results of operations realized during an interim period are notnecessarily indicative of results to be expected for a full year. Thesefinancial statements should be read in conjunction with the information filedon Form 10-K which was filed with the SEC on March 18, 2009.

* *

*Development Stage Company*

 

The Company is adevelopment stage company as defined by Statement of Financial Accounting StandardsNo. 7*“Accounting and Reporting by Development Stage Enterprises”*(“SFASNo. 7”). The Company is still devoting substantially all of its efforts on establishingthe business and its planned principal operations have not commenced. Alllosses accumulated since inception have been considered as part of theCompany's development stage activities.

 

*Use of estimates*

 

                The preparation of financial statements inconformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect thereported amounts of assets and liabilities and disclosure of contingent assetsand liabilities at the date of the financial statements as well as the reportedamount of revenues and expenses during the reporting period. Actual resultscould differ from these estimates.

 

*Cash equivalents*

 

                The Company considersall highly liquid investments with a maturity of three months or less whenpurchased to be cash equivalents.

 

*Fair value of financial instruments*

 

The Companyfollows Statement of Financial Accounting Standards No. 107 *“Disclosuresabout fair value of Financial Instruments”* (“SFAS No. 107”) for disclosuresabout fair value of its financial instruments and has adopted FinancialAccounting Standards Board (“FASB”) No. 157 *“Fair Value Measurements”*(“SFAS No. 157”) to measure the fair value of its financialinstruments.  SFAS No. 157 establishes a framework for measuring fairvalue in generally accepted accounting principles (GAAP), and expandsdisclosures about fair value measurements. To increase consistency andcomparability in fair value measurements and related disclosures, SFAS No. 157establishes a fair value hierarchy which prioritizes the inputs to valuationtechniques used to measure fair value into three (3) broad levels.  Thefair value hierarchy gives the highest priority to quoted prices (unadjusted)in active markets for identical assets or liabilities and the lowest priorityto unobservable inputs.  The three (3) levels of fair value hierarchydefined by SFAS No. 157 are described below:

 

F-7

----

 

 
| Level 1 |   | Quoted market prices available in active markets for  identical assets or liabilities as of the reporting date.                                               |
|---------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Level 2 |   | Pricing inputs other than quoted prices in active markets  included in Level 1, which are either directly or indirectly observable as of  the reporting date. |
| Level 3 |   | Pricing inputs that are generally observable inputs and  not corroborated by market data.                                                                     |

 

As defined by SFAS No. 107, the fair value of a financialinstrument is the amount at which the instrument could be exchanged in acurrent transaction between willing parties, other than in a forced orliquidation sale, which was further clarified as the price that would bereceived to sell an asset or paid to transfer a liability (“an exit price”) inan orderly transaction between market participants at the measurement date. Thecarrying amounts of the Company’s financial assets and liabilities, such ascash and accrued expenses, approximate their fair values because of the shortmaturity of these instruments.

 

The Company does not have any assets or liabilities measuredat fair value on a recurring or a non-recurring basis, consequently, theCompany did not have any fair value adjustments for assets and liabilitiesmeasured at fair value at June 30, 2009 or 2008, nor gains or losses arereported in the statement of operations that are attributable to the change inunrealized gains or losses relating to those assets and liabilities still heldat the reporting date for the interim period ended June 30, 2009 or 2008.

 

*Revenue recognition*

 

The Company’s future revenues will bederived principally from classroom instruction in driving a Formula One vehicleand other ancillary services to the general public. The Company follows theguidance of the Securities and Exchange Commission’s Staff Accounting Bulletin104 (“SAB No. 104”) for revenue recognition. The Company will recognize revenuewhen it is realized or realizable and earned less estimated future doubtfulaccounts. The Company considers revenue realized or realizable and earned whenit has persuasive evidence of an arrangement that the services have beenrendered to the customer, the sales price is fixed or determinable, andcollectability is reasonably assured.

 

*Income taxes*

 

TheCompany follows Statement of Financial Accounting Standards No. 109 *“Accountingfor Income Taxes”* (“SFAS No. 109”), which requires recognition of deferredtax assets and liabilities for the expected future tax consequences of eventsthat have been included in the financial statements or tax returns.  Under thismethod, deferred tax assets and liabilities are based on the differencesbetween the financial statement and tax bases of assets and liabilities usingenacted tax rates in effect for the year in which the differences are expectedto reverse.  Deferred tax assets are reduced by a valuationallowance to the extent management concludes it is more likelythan not that the assets will not be realized.  Deferred tax assets andliabilities are measured using enacted tax rates expected to apply to taxableincome in the years in which those temporary differences are expected to berecovered or settled.  The effect on deferred tax assets and liabilities of achange in tax rates is recognized in the consolidated statements of income andcomprehensive income in the period that includes the enactment date.

 

The Company adopted the provisionsof Financial Accounting Standards Board (“FASB”) Interpretation No. 48 *“Accountingfor Uncertainty in Income Taxes – an interpretation of FASB Statement No. 109”*(“FIN 48”).  FIN 48 addresses the determination of whether tax benefits claimedor expected to be claimed on a tax return should be recorded in the financialstatements.  Under FIN 48, the Company may recognize the tax benefit from anuncertain tax position only if it is more likely than not that the tax positionwill be sustained on examination by the taxing authorities, based on thetechnical merits of the position.  The tax benefits recognized in the financialstatements from such a position should be measured based on the largest benefitthat has a greater than fifty percent (50%) likelihood of being realized uponultimate settlement.  FIN 48 also provides guidance on de-recognition,classification, interest and penalties on income taxes, accounting in interimperiods and requires increased disclosures.  The Company had no materialadjustments to its liabilities for unrecognized income tax benefits accordingto the provisions of FIN 48.

 

*Net loss per common share*

* *

Net loss per common share is computed pursuant to Statement ofFinancial Accounting Standards No. 128.  "Earnings per Share"("SFAS No. 128").  Basic net loss per common share is computedby dividing net loss by the weighted average number of shares of common stockoutstanding during the period. Diluted net loss per common share is computed bydividing net loss by the weighted average number of shares of common stock andpotentially outstanding shares of common stock during each period. There wereno potentially dilutive shares outstanding as of June 30, 2009 or 2008.

 

 

F-8

----

 

*Recently Issued Accounting Pronouncements*

 

In June 2003, the Securities and Exchange Commission (“SEC”)adopted final rules under Section 404 of the Sarbanes-Oxley Act of 2002(“Section 404”), as amended by SEC Release No. 33-8934 on June 26, 2008.Commencing with the Company’s Annual Report for the fiscal year ended January31, 2010, the Company is required to include a report of management on theCompany’s internal control over financial reporting. The internal controlreport must include a statement of management’s responsibility for establishingand maintaining adequate internal control over financial reporting for theCompany; of management’s assessment of the effectiveness of the Company’sinternal control over financial reporting as of year end; of the framework usedby management to evaluate the effectiveness of the Company’s internal controlover financial reporting; and that the Company’s independent accounting firmhas issued an attestation report on management’s assessment of the Company’sinternal control over financial reporting, which report is also required to befiled as part of the Annual Report on Form 10-K.

 

In April 2009, the Financial Accounting Standards Board(FASB) issued FASB Staff Position (FSP) Financial Accounting Standard (FAS)157-4 “Determining Fair Value When the Volume and Level of Activity for theAsset or Liability Have Significantly Decreased and Identifying TransactionsThat Are Not Orderly”. Based on the guidance, if an entity determines that thelevel of activity for an asset or liability has significantly decreased andthat a transaction is not orderly, further analysis of transactions or quotedprices is needed, and a significant adjustment to the transaction or quotedprices may be necessary to estimate fair value in accordance with Statement ofFinancial Accounting Standards (SFAS) No. 157 “Fair Value Measurements”.This FSP is to be applied prospectively and is effective for interim and annualperiods ending after June 15, 2009 with early adoption permitted forperiods ending after March 15, 2009. The company will adopt this FSP forits quarter ending June 30, 2009. There is no expected impact on thefinancial statements.

 

In April 2009, the FASB issued FSP FAS 107-1 andAccounting Principles Board (APB) 28-1 “Interim Disclosures about Fair Value ofFinancial Instruments”. The FSP amends SFAS No. 107 “Disclosures aboutFair Value of Financial Instruments” to require an entity to providedisclosures about fair value of financial instruments in interim financialinformation. This FSP is to be applied prospectively and is effective forinterim and annual periods ending after June 15, 2009 with early adoptionpermitted for periods ending after March 15, 2009. The company willinclude the required disclosures in its quarter ending June 30, 2009.

 

In April 2008, the FASB issued FSP FAS 142-3,“Determination of the Useful Life of Intangible Assets”. The FSP states that indeveloping assumptions about renewal or extension options used to determine theuseful life of an intangible asset, an entity needs to consider its ownhistorical experience adjusted for entity-specific factors. In the absence ofthat experience, an entity shall consider the assumptions that marketparticipants would use about renewal or extension options. This FSP is to beapplied to intangible assets acquired after January 1, 2009. The adoptionof this FSP did not have an impact on the financial statements.

 

In May 2009, the FASB issued SFAS No. 165,“Subsequent Events” (“SFAS 165”), which provides guidance to establish generalstandards of accounting for and disclosures of events that occur after thebalance sheet date but before financial statements are issued or are availableto be issued. SFAS 165 also requires entities to disclose the date throughwhich subsequent events were evaluated as well as the rationale for why thatdate was selected. This disclosure should alert all users of financialstatements that an entity has not evaluated subsequent events after that datein the set of financial statements being presented. SFAS 165 is effective forinterim and annual periods ending after June 15, 2009. Since FAS 165 atmost requires additional disclosures, the Company does not expect the adoptionto have a material impact on its consolidated financial position, results ofoperations or cash flows.

 

In June 2009, the FASB approved the “FASB AccountingStandards Codification” (the “Codification”) as the single source ofauthoritative nongovernmental U.S. GAAP to be launched on July 1, 2009. TheCodification does not change current U.S. GAAP, but is intended to simplifyuser access to all authoritative U.S. GAAP by providing all the authoritativeliterature related to a particular topic in one place. All existing accountingstandard documents will be superseded and all other accounting literature notincluded in the Codification will be considered non-authoritative. TheCodification is effective for interim and annual periods ending afterSeptember 15, 2009. The Codification is effective for the Company in theinterim period ending September 30, 2009 and the Company does not expectthe adoption to have a material impact on its consolidated financial position,results of operations or cash flows.

 

F-9

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Management does not believe that any recently issued, but notyet effective accounting pronouncements, if adopted, would have a materialeffect on the accompanying financial statements.

 

**NOTE3 – DEVELOPMENT STAGE ACTIVITIES AND GOING CONCERN**

 

The Company is currently in thedevelopment stage. The Company intendsto produce a new vacuum composite molded surfboard, which is less toxic, moredurable, and offers a greater level of performance than other boards; however, theCompany has not yet acquired the customers or begun operations.  Its activitiesas of June 30, 2009 have been organizational and developmental(pre-operational).

 

As reflected in the accompanying financial statements, theCompany had a negative working capital of $25,469 and a deficit accumulated duringthe development stage of $62,569 at June 30, 2009 and had a net loss and cashused in operations of $62,569 and $37,069 for the period from March 19, 2007(inception) through June 30, 2009, respectively, and earnedno revenues since inception.

 

While the Company is attempting to commence operations andproduce revenues, the Company’s cash position may not be significant enough tosupport the Company’s daily operations. Management intends to raise additionalfunds by way of a public or private offering.  Management believes that theactions presently being taken to further implement its business plan andgenerate revenues provide the opportunity for the Company to continue as agoing concern. While the Company believes in the viability of its strategy toincrease revenues and in its ability to raise additional funds, there can be noassurances to that effect. The ability of the Company to continue as a goingconcern is dependent upon the Company’s ability to further implement itsbusiness plan and generate revenues. The financial statements do not includeany adjustments that might be necessary if the Company is unable to continue asa going concern. 

 

**NOTE4          SUBSEQUENT EVENTS**

 

The Company has evaluated all events that occurred after thebalance sheet date but before financial statements were available to be issuedto determine if they must be reported.  The Management of the Companydetermined that there were no reportable subsequent events to be disclosed.

 

 

 

 

 

 

 

F-10

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**Item2 – Management’s Discussion and Analysis or Plan of Operation of FinancialCondition and Results of Operations**

 

Referencesto “Company”, “we” or “us” refer to Hamptons Extreme, Inc., unless the contextrequires otherwise.

 

**MANAGEMENT’SDISCUSSION AND ANALYSIS OR PLAN OF OPERATION AND RESULTS OF OPERATIONS**

 

Management’s Discussion and Analysiscontains statements that are forward-looking. These statements are based oncurrent expectations and assumptions that are subject to risks anduncertainties. Actual results could differ materially because of factorsdiscussed in “Factors That May Affect Future Results and Financial Condition.”

 

**OVERVIEW**

 

We are in a developmentalstage. Implementing our planned business operation is dependant on theeffectiveness of this registration statement and our ability to raise between$625,000 and $2,150,000 of additional capital after all offering expenses paidto a placement agent, attorneys, accountants and among other professional fees.Our plan is to utilize such capital we raise asfollows:

 

                                                                     If a Net of                                   If a Net of

                                                                     $625,000 is Raised                     $2,150,000 is Raised

 

Establishing Manufacturing 

Facility/ Offices                                                 $140,000                                      $500,000

 

Retail Shop                                                        $  25,000                                       $  50,000

 

Equipment                                                        $  75,000                                       $150,000

 

OfficerSalaries                                                 $150,000                                       $350,000

 

MarketingExpense                                          $135,000                                       $700,000

 

WorkingCapital                                               $100,000                                       $400,000

 

The foregoing are estimates only and any funds may bere-allocated based upon management’s evaluation of then existing conditions. We believe that we can commence manufacturing within three to four months ofreceiving financing.  We will have to acquire and install equipment, hiremanufacturing and marketing personnel and establish working relationships withsuppliers.  We believe that when we sell boards to surf shops that the saleswill be on net thirty terms and the time for receipt of payment will require usto maintain significant working capital.  We project that our monthly operatingbudget will be approximately $70,000 to $80,000 per month comprised of rent of$3,300; salaries of $45,000 to $50,000 per month and overhead of $21,700 to$26,700.  Our ability to accomplish these goals is likely to be negativelyimpacted by recent general economic developments.

 

3

 

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**INFLATION**

 

Inflation can be expected tohave an impact on our operating costs. A prolonged period of inflation couldcause a general economic downturn and negatively impact our results. However,the effect of inflation has been minimal over the past three years.

 

 

**SEASONALITY**

 

We believe that our business will be seasonal in thatsales will tend to decrease during winter months.

 

**Going Concern**

Ourfinancial statements have been prepared on a going concern basis, whichcontemplates the realization of assets and the satisfaction of liabilities inthe normal course of business. We have a history of losses that are likely tocontinue in the future. Our independent registered public accounting firm hasincluded a footnote in their report in our audited financial statements for theyear ended December 31, 2008 to the effect that our losses from operations andour negative cash flows from operations raise substantial doubt about ourability to continue as a going concern. Our financial statements do not includeany adjustments that might be necessary should we be unable to continue as agoing concern. If we were unable to continue as a going concern, ourshareholders would be likely to realize less for our assets than they arecurrently carried on our books because they would be sold separate from anyoperating business. We may be required to cease operations which could resultin our shareholders losing almost all of their investment.  

 

**Comparisonof Periods, Year to Year**

Wewere formed on March 17, 2007 and were not in existence during the samecorresponding period in the prior year.  We were inactive during and the sameperiod in prior year, accordingly, we cannot make a year-to-year comparison ofour results.  We have not commenced our manufacturing operations and have notgenerated any revenue at any time.

 

**Liquidityand Capital Resources**

Asof June 30, 2009, we had $31 cash on hand and $25,500 in accrued expenses.  Ourlimited resources will affect the extent of our activities in the future unlesswe are successful in realizing financing.

 

**Off Balance Sheet Arrangements**

None

**Forward-Looking Statements**

Certain statements made inthis Report on Form 10-Q are “forward-looking statements” (within the meaningof the Private Securities Litigation Reform Act of 1995) regarding the plansand objectives of management for future operations. Such statements involveknown and unknown risks, uncertainties and other factors that may cause ouractual results, performance or achievements to be materially different from anyfuture results, performance or achievements expressed or implied by suchforward-looking statements. The forward-looking statements included herein arebased on current expectations that involve numerous risks and uncertainties.Our plans and objectives are based, in part, on assumptions involving judgmentswith respect to, among other things, future economic, competitive and marketconditions, technological developments, and future business decisions, all ofwhich are difficult or impossible to predict accurately and many of which arebeyond our control.

 

Although we believe that ourassumptions underlying the forward-looking statements are reasonable, any ofthe assumptions could prove inaccurate and, therefore, there can be noassurance that the forward-looking statements included in this prospectus willprove to be accurate. In light of the significant uncertainties inherent in theforward-looking statements included herein particularly in view of the currentstate of our operations, the inclusion of such information should not beregarded as a statement by us or any other person that our objectives and planswill be achieved. Factors that could cause actual results to differ materiallyfrom those expressed or implied by such forward-looking statements include, butare not limited to, the factors set forth in our Prospectus included inRegistration Statement on Form S-1 No.: 333-151148 under the headings“Business,” “Risk Factors” and “Plan of Operations.”

 

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**Item3. Quantitative and Qualitative Disclosures About Market Risk**

TheCompany is subject to certain market risks, including changes in interest ratesand currency exchange rates. The Company does not undertake any specificactions to limit those exposures.

**Item4. Controls and Procedures**

Anevaluation was carried out under the supervision and with the participation ofour management, including our Chief Financial Officer and President, of theeffectiveness of our disclosure controls and procedures as of the end of theperiod covered by this report on Form 10-Q. Disclosure controls and proceduresare procedures that are designed with the objective of ensuring thatinformation required to be disclosed in our reports filed under the SecuritiesExchange Act of 1934, such as this Form 10-Q, is recorded, processed,summarized and reported, within the time period specified in the Securities andExchange Commissions rules and forms, and that such information is accumulatedand is communicated to our management, including our principal executive andprincipal financial officers, or persons performing similar functions, asappropriate, to allow timely decisions regarding required disclosure. Based onthat evaluation, our management concluded that, as of June 30, 2009, ourdisclosure controls and procedures are effective to satisfy the objectives forwhich they are intended.

***Management'sReport on Internal Controls over Financial Reporting***

Internalcontrol over financial reporting is a process to provide reasonable assuranceregarding the reliability of consolidated financial reporting and thepreparation of financial statements for external purposes in accordance withaccounting principles generally accepted in the United States of America. Therehas been no change in the Company's internal control over financial reportingduring the interim period ended June 30, 2009 that has materially affected, oris reasonably likely to materially affect, the Company's internal control overfinancial reporting.

TheCompany's management, comprised of two officers, does not expect that theCompany's disclosure controls and procedures or the Company's internal controlswill prevent all errors and all fraud. A control system, no matter how wellconceived and operated, can provide only reasonable, not absolute, assurance thatthe objectives of the control system are met. Further, the design of a controlsystem must reflect the fact that there are resource constraints, and thebenefits of controls must be considered relative to their costs. Because of theinherent limitations in all control systems, no evaluation of the controls canprovide absolute assurance that all control issues and instances of fraud, ifany, within the Company have been detected.

Managementconducted an evaluation of the effectiveness of our internal control overfinancial reporting based on the framework in Internal Control - IntegratedFramework issued by the Committee of Sponsoring Organizations of the TreadwayCommission. Based on this evaluation, management concluded that the company'sinternal control over financial reporting was effective as of June 30, 2009.

Thisquarterly report does not include an attestation report of the Company'sregistered public accounting firm regarding internal control over financialreporting. Management's report was not subject to attestation by the Company'sregistered public accounting firm pursuant to temporary rules of the Securitiesand Exchange Commission that permit the Company to provide only management'sreport in this quarterly report.

 Therewere no changes in our internal control over financial reporting identified inconnection with the evaluation performed that occurred during the fiscalquarter covered by this report that has materially affected or is reasonablylikely to materially affect, our internal control over financial reporting.

5

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**PART II – OTHERINFORMATION**

 

**Item 1 – Legal Proceedings**

The Company is not currently party to any legalproceedings.

**Item 2 – Unregistered Sales of Equity Securitiesand Use of Proceeds**

None.

**Item 3 – Defaults Upon Senior Securities**

None.

**Item 4 – Submission of Matters to a Vote ofSecurity Holders**

None.

**Item 5 – Other Information**

None.

 **Item6 – Exhibits and Reports of Form 8-K**

**(a)    Exhibits**
| **Exhibit  Number** | **Exhibit Description**                                                                                                                                                 |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1                 | Certificate  of Incorporation – Incorporated by reference to like numbered exhibit to the  Company’s Registration Statement on Form S-1 File No.: 333-151148. |
| 3.2                 | Bylaws - Incorporated by reference to like  numbered exhibit to the Company’s Registration Statement on Form S-1 File No.:  333-151148.                            |
| 4.1                 | Specimen Stock Certificate – Incorporated by  reference to like numbered exhibit to the Company’s Registration Statement on  Form S-1 File No.: 333-151148.   |
| 21                  | Description of Subsidiaries. None                                                                                                                                       |
| 31.1                | Rule 13a-14(a)/15d-14(a) Certification by the  Principal Executive Officer.*                                                                                            |
| 31.2                | Rule  13a-14(a)/15d-14(a) Certification by the Principal Financial Officer.*                                                                                            |
| 31.1                | Section 1350  Certification by the Principal Executive Officer.*                                                                                                        |
| 32.2                | Section 1350  Certification by the Principal Accounting and Financial Officer.*                                                                                         |

* Filed herewith

6

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**(b)    Reports of Form 8-K**

**None.**

** **

**SIGNATURE**

 

In accordance with the requirements of theSecurities Exchange Act of 1934, as amended, the registrant caused this Reporton Form 10-Q to be signed on its behalf by the undersigned, thereunto dulyauthorized.

 

                                                                                                                **HamptonsExtreme, Inc.** 

 

Date: August 13, 2009                                                             By:  /s/ John Delany 

                                                                                                                 John Delaney, President and CEO

 

Date: August 13, 2009                                                             By:  /s/ Brien Reidy 

                                                                                                                 Brien Reidy, Chief Financial Officer 

 

 

 

 

 

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