|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | **UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

Washington, D.C. 20549

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                          | **FORM 10-Q**

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

For the quarterly	period ended September 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)

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|  

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. YESx  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 Company	x

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

  |
| State the number of shares  outstanding of each of the issuer’s classes of common equity, as of the  latest practicable date: 1,037,000 shares of common stock, par value $.0001  per share, as of November 13, 2009.

Transitional  Small Business Disclosure Format (Check one). YES  NOx

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**HAMPTONS EXTREME,INC.**

** **

**(A DEVELOPMENTSTAGE COMPANY)**

** **

**September 30, 2009 and 2008**

 

**INDEXTO FINANCIAL STATEMENTS**

** **

** **

** **

** **

 

 

 

Contents

 

Page(s)

 

 

 

Balance  Sheets at September 30, 2009 (Unaudited) and December 31, 2008

 

F-2

 

 

 

Statement  of Operations for the Three Months Ended September 30, 2009 and 2008  (Unaudited)

 

F-3

 

 

 

Statement  of Operations for the Nine Months Ended September 30, 2009 and  2008,                                                                                   

and  the Period from March 19, 2007 (Inception) through September 30, 2009  (Unaudited)

 

F-4

 

 

 

Statement  of Stockholders’ Deficit for the Period from March 19, 2007  (Inception)                                         

 

 

through  September 30, 2009 (Unaudited)

 

F-5

 

 

 

Statement  of Cash Flows for the Nine Months Ended September 30, 2009 and 2008,                                                                                               

and  the Period from March 10, 2007 (Inception) through September 30, 2009  (Unaudited)

 

F-6

 

 

 

Notes  to the Financial Statements  (Unaudited)

 

F-7

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** **

** **

** **

** **

** **

** **

** **

** **

 F-1

 

** **

** **

** **

**  **

** **

**HAMPTONS EXTREME,INC.**

(A Development StageCompany)

 

Balance Sheets

 

 

 

September 30,

2009

 

 

December 31, 2008

 

 

(Unaudited)

 

 

 

Current Assets:

 

 

 

 

 

Cash

$

243

 

$

919

Total current assets

 

243

 

 

919

 

 

 

 

 

 

TOTAL ASSETS

$

243

 

$

919

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

Accrued expenses

$

27,000

 

$

22,500

Advance from officer

 

700

 

 

-

Total current liabilities

 

27,700

 

 

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 shares issued and outstanding

 

104

 

 

104

Additional paid-in capital

 

36,996

 

 

36,996

Deficit accumulated during the development stage

 

 

(64,557)

 

 

 

(58,681)

Total stockholders’ deficit

 

(27,457)

 

 

(21,581)

 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

$

243

 

 

$

919

 

 

 

 

 

 

See accompanying  notes to the financial statements.

 

 

 

 

 

 

 

 

 

F-2

 

 

 

 

 

 

 

 

**HAMPTONS EXTREME,INC.**

 (A Development StageCompany)

** **

Statement ofOperations

(Unaudited)

 

 

 

Three Months Ended September  30, 2009

 

Three Months Ended September  30, 2008

Operating Expenses:

 

 

 

 

Professional fees

$

1,500

$

1,500

General and administrative expenses

 

488

 

2,203

Total operating expenses

 

1,988

 

3,703

 

 

 

 

 

Loss before income taxes

 

( 1,988)

 

(3,703)

 

 

 

 

 

Provision for income taxes

 

-

 

-

 

 

 

 

 

Net loss

$

(1,988)

$

(3,703)

 

 

 

 

 

Net loss per common share - basic and diluted

 

$

 

(0.00)

 

$

 

  (0.00)

 

 

 

 

 

Weighted average number of common shares outstanding –  basic and diluted

 

 

 

1,037,000

 

 

 

1,035,000

 

 

 

 

 

 

 

 

 

 

 

 

F-3

 

 

 

 

 

 

**HAMPTONS EXTREME,INC.**

 (A Development StageCompany)

** **

Statement ofOperations

(Unaudited)

 

 

 

Nine Months Ended September  30, 2009

 

Nine Months Ended September  30, 2008

 

For the Period from  March 19, 2007 (Inception) through September 30, 2009

Operating Expenses:

 

 

 

 

 

 

Professional fees

$

4,500

$

10,500

$

36,500

General and administrative expenses

 

1,376

 

8,810

 

28,057

Total operating expenses

 

5,876

 

19,310

 

64,557

 

 

 

 

 

 

 

Loss before income taxes

 

(5,876)

 

(19,310)

 

(64,557)

 

 

 

 

 

 

 

Provision for income taxes

 

-

 

-

 

-

 

 

 

 

 

 

 

Net loss

$

(5,876)

$

(19,310)

$

(64,557)

 

 

 

 

 

 

 

Net loss per common share - basic and diluted

 

$

 

(0.01)

 

$

 

(0.02)

 

$

 

(0.06)

 

 

 

 

 

 

 

Weighted average number of common shares outstanding –  basic and diluted

 

 

 

1,037,000

 

 

 

1,033,544

 

 

 

1,028,662

 

 

 

 

 

 

 

See accompanying  notes to the financial statements.

 

 
 
F-4

**HAMPTONS EXTREME,INC.**

 (A Development StageCompany)

 

Statement ofStockholders’ Deficit

For the Period fromMarch 19, 2007 (Inception) through September 30, 2009

(Unaudited)

 

 

 

 

 

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

 

 

 

(5,876)

(5,876)

 

 

 

 

 

 

Balance, September 30, 2009

1,037,000

$           104

$    36,996

$   (64,557)

$   (27,457)

 

 

Seeaccompanying notes to the financial statements.

 

 

 

F-5

 

 

 

 

 

 

**HAMPTONS EXTREME,INC.**

 (A Development StageCompany)

 

Statement of CashFlows

(Unaudited)

 

 

 

 

Nine Months Ended September  30, 2009

 

Nine Months Ended September  30, 2008

 

The Period from  March 19, 2007 (Inception) through September 30, 2009

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

Net loss

$

(5,876)

$

(19,310)

$

(64,557)

Adjustments to reconcile net loss to net cash used in  operating activities:

 

 

 

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Increase (decrease) in accrued expenses

 

4,500

 

(500)

 

27,000

Net Cash Used in Operating Activities

 

(1,376)

 

(19,810)

 

(37,557)

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

Sale of common stock

 

-

 

11,000

 

37,100

Advance from officer

 

700

 

-

 

700

 

 

 

 

 

 

 

Net Cash Provided by Financing Activities

 

700

 

11,000

 

37,800

 

 

 

 

 

 

 

NET CHANGE IN CASH

 

(676)

 

(8,810)

 

243

 

 

 

 

 

 

 

CASH AT BEGINNING OF PERIOD

 

919

 

10,479

 

-

CASH AT END OF PERIOD

$

243

$

1,669

$

243

 

 

 

 

 

 

 

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)**

September 30, 2009and 2008

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 nine months ended September 30, 2009 and 2008, and the periodfrom March 19, 2007 (Inception) through September 30, 2009 are unaudited andhave been prepared in accordance with accounting principles generally acceptedin the United States of America (“U.S. GAAP”) for interim financial informationand with the instructions to Form 10-Q and Article 10 of Regulation S-X.Accordingly, they do not include all of the information and footnotes requiredby U.S. GAAP for complete financial statements. In the opinion of management,all adjustments (consisting of normal recurring accruals) considered necessary fora fair presentation have been included. The results of operations realizedduring an interim period are not necessarily indicative of results to beexpected for a full year. These financial statements should be read inconjunction with the information filed on Form 10-K which was filed with theSEC on March 18, 2009.

* *

*Development Stage Company*

 

The Company is adevelopment stage company as defined by section 810-10-20 of the FASBAccounting Standards Codification. The Company isstill devoting substantially all of its efforts on establishing the businessand its planned principal operations have not commenced.  All lossesaccumulated since inception have been considered as part of the Company’sexploration 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 Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of itsfinancial instruments and paragraph 820-10-35-37 of the FASB AccountingStandards Codification (“Paragraph 820-10-35-37”) to measure the fair value ofits financial instruments. Paragraph 820-10-35-37 establishes a framework formeasuring fair value in accounting principles generally accepted in the United States of America (U.S. GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and relateddisclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy which prioritizesthe inputs to valuation techniques used to measure fair value into three (3) broadlevels.  The fair value hierarchy gives the highest priority to quoted prices (unadjusted)in active markets for identical assets or liabilities and the lowest priority tounobservable inputs.  The three (3) levels of fair value hierarchy defined by Paragraph820-10-35-37 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.

 

                The carrying amountsof the Company’s financial assets and liabilities, such as cash and accrued expenses,approximate their fair values because of the short maturity of theseinstruments.

 

                The Company does not have any assets orliabilities measured at fair value on a recurring or a non-recurring basis,consequently, the Company did not have any fair value adjustments for assetsand liabilities measured at fair value at September 30, 2009 or 2008, nor gainsor losses are reported in the statement of operations that are attributable to thechange in unrealized gains or losses relating to those assets and liabilities stillheld at the reporting date for the interim period ended September 30, 2009, 2008or for the period from March 19, 2007 (inception) through September 30, 2009.

 

*Revenue recognition*

 

The Company applies paragraph605-10-S99-1 of the FASB Accounting Standards Codification for revenuerecognition.  The Company recognizes revenue when it is realized or realizableand earned less estimated future doubtful accounts.  The Company considersrevenue realized or realizable and earned when all of the following criteriaare met: (i) persuasive evidence of an arrangement exists, (ii) the product hasbeen shipped or the services have been rendered to the customer, (iii) thesales price is fixed or determinable, and (iv) collectability is reasonablyassured.

 

*Income taxes*

 

The Company accounts for income taxes under Section740-10-30 of the FASB Accounting Standards Codification.  Deferred income taxassets and liabilities are determined based upon differences between thefinancial reporting and tax bases of assets and liabilities and are measuredusing the enacted tax rates and laws that will be in effect when thedifferences are expected to reverse.  Deferred tax assets are reduced by avaluation allowance to the extent management concludes it is more likely thannot that the assets will not be realized.  Deferred tax assets and liabilitiesare measured using enacted tax rates expected to apply to taxable income in theyears in which those temporary differences are expected to be recovered orsettled. The effect on deferred tax assets and liabilities of a change in taxrates is recognized in the statements of operations in the period that includesthe enactment date.

 

The Company adoptedsection 740-10-25 of the FASB Accounting Standards Codification (“Section740-10-25”)..  Section 740-10-25 addresses the determination of whether tax benefits claimed orexpected to be claimed on a tax return should be recorded in the financialstatements.  Under Section 740-10-25, theCompany may recognize the tax benefit from an uncertain tax position only if itis more likely than not that the tax position will be sustained on examinationby the taxing authorities, based on the technical merits of the position.  Thetax benefits recognized in the financial statements from such a position shouldbe measured based on the largest benefit that has a greater than fifty percent(50%) likelihood of being realized upon ultimate settlement.  Section 740-10-25 also provides guidance on de-recognition, classification,interest and penalties on income taxes, accounting in interim periods andrequires increased disclosures.  The Company had no material adjustments to itsliabilities for unrecognized income tax benefits according to the provisions ofSection 740-10-25.

 

*Net loss per common share*

* *

Net loss percommon share is computed pursuant to section 260-10-45 of the FASB AccountingStandards Codification.  Basic net loss per share iscomputed by dividing net loss by the weighted average number of shares ofcommon stock outstanding during the period.  Diluted net loss per share iscomputed by dividing net loss by the weighted average number of shares ofcommon stock and potentially outstanding shares of common stock during eachperiod.  There were no potentially dilutive shares outstanding as ofSeptember 30, 2009 or 2008.

 

*Recently Issued Accounting Pronouncements*

 

In June 2003, the Securities and ExchangeCommission (“SEC”) adopted final rules under Section 404 of the Sarbanes-OxleyAct of 2002 (“Section 404”), as amended by SECRelease No. 33-9072 on October 13, 2009.  Commencing with its annual report forthe year ending December 31, 2010, the Company will be required to include areport of management on its internal control over financial reporting. Theinternal control report must include a statement

 

F-8

 

 

 

of management’s responsibility for  establishing and maintaining adequate internal control over its financial  reporting;

 

of management’s assessment of the  effectiveness of its internal control over financial reporting as of year  end; and

 

of the framework used by  management to evaluate the effectiveness of the Company’s internal control  over financial reporting.

 

Furthermore, it is required to file theauditor’s attestation report separately on the Company’s internal control overfinancial reporting on whether it believes that the Company has maintained, inall material respects, effective internal control over financial reporting.

 

In June 2009, the FASB approved the“FASB Accounting Standards Codification” (the “Codification”) as the singlesource of authoritative nongovernmental U.S. GAAP to be launched on July 1, 2009.  The Codification does not change current U.S. GAAP, but is intended to simplify useraccess 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 adoption did not have a material impact on theCompany’s financial position, results of operations or cash flows.

 

In August 2009, the FASB issued the FASBAccounting Standards Update No. 2009-04 *“Accounting for Redeemable EquityInstruments - Amendment to Section 480-10-S99”* which represents an updateto section 480-10-S99, distinguishing liabilities from equity, per EITF TopicD-98, *Classification and Measurement of Redeemable Securities*.  TheCompany does not expect the adoption of this update to have a material impacton its consolidated financial position, results of operations or cash flows.

 

In August 2009, the FASB issued the FASBAccounting Standards Update No. 2009-05 *“Fair Value Measurement andDisclosures Topic 820 – Measuring Liabilities at Fair Value”*, whichprovides amendments to subtopic 820-10, Fair Value Measurements and Disclosures– Overall, for the fair value measurement of liabilities.  This Update providesclarification that in circumstances in which a quoted price in an active marketfor the identical liability is not available, a reporting entity is required tomeasure fair value using one or more of the following techniques: 1. Avaluation technique that uses: a. The quoted price of the identical liabilitywhen traded as an asset b. Quoted prices for similar liabilities or similarliabilities when traded as assets. 2. Another valuation technique that isconsistent with the principles of topic 820; two examples would be an incomeapproach, such as a present value technique, or a market approach, such as atechnique that is based on the amount at the measurement date that thereporting entity would pay to transfer the identical liability or would receiveto enter into the identical liability. The amendments in this Update alsoclarify that when estimating the fair value of a liability, a reporting entityis not required to include a separate input or adjustment to other inputsrelating to the existence of a restriction that prevents the transfer of theliability. The amendments in this Update also clarify that both a quoted pricein an active market for the identical liability when traded as an asset in anactive market when no adjustments to the quoted price of the asset are requiredare Level 1 fair value measurements.  The Company does not expect the adoption ofthis update to have a material impact on its consolidated financial position,results of operations or cash flows.

 

In September 2009, the FASB issued theFASB Accounting Standards Update No. 2009-08 *“Earnings Per Share –Amendments to Section 260-10-S99”,*which represents technical corrections totopic 260-10-S99, Earnings per share, based on EITF Topic D-53, *Computationof Earnings Per Share for a Period that includes a Redemption or an InducedConversion of a Portion of a Class of Preferred Stock* and EITF Topic D-42, *TheEffect of the Calculation of Earnings per Share for the Redemption or InducedConversion of Preferred Stock*. The Company does not expect the adoption ofthis update to have a material impact on its consolidated financial position,results of operations or cash flows.

 

In September 2009, the FASB issued theFASB Accounting Standards Update No. 2009-09 *“Accounting forInvestments-Equity Method and Joint Ventures and Accounting for Equity-BasedPayments to Non-Employees”*.  This Update represents a correction to Section323-10-S99-4, *Accounting by an Investor for Stock-Based Compensation Grantedto Employees of an Equity Method Investee*. Additionally, it adds observercomment*Accounting Recognition for Certain Transactions Involving EquityInstruments Granted to Other Than Employees* to the Codification. TheCompany does not expect the adoption to have a material impact on itsconsolidated financial position, results of operations or cash flows.

 

F-9

 

In September 2009, the FASB issued theFASB Accounting Standards Update No. 2009-12 *“Fair Value Measurements andDisclosures Topic 820 – Investment in Certain Entities That Calculate NetAssets Value Per Share (or Its Equivalent)”*, which provides amendments toSubtopic 820-10, Fair Value Measurements and Disclosures-Overall, for the fairvalue measurement of investments in certain entities that calculate net assetvalue per share (or its equivalent). The amendments in this Update permit, as apractical expedient, a reporting entity to measure the fair value of an investmentthat is within the scope of the amendments in this Update on the basis of thenet asset value per share of the investment (or its equivalent) if the netasset value of the investment (or its equivalent) is calculated in a mannerconsistent with the measurement principles of Topic 946 as of the reportingentity’s measurement date, including measurement of all or substantially all ofthe underlying investments of the investee in accordance with Topic 820. Theamendments in this Update also require disclosures by major category ofinvestment about the attributes of investments within the scope of theamendments in this Update, such as the nature of any restrictions on theinvestor’s ability to redeem its investments a the measurement date, anyunfunded commitments (for example, a contractual commitment by the investor toinvest a specified amount of additional capital at a future date to fundinvestments that will be make by the investee), and the investment strategiesof the investees. The major category of investment is required to be determinedon the basis of the nature and risks of the investment in a manner consistentwith the guidance for major security types in U.S. GAAP on investments in debtand equity securities in paragraph 320-10-50-1B. The disclosures are requiredfor all investments within the scope of the amendments in this Updateregardless of whether the fair value of the investment is measured using thepractical expedient. The Company does not expect the adoption to have amaterial impact on its consolidated financial position, results of operationsor cash flows.

 

Management does notbelieve that any other recently issued, but not yet effective accountingpronouncements, if adopted, would have a material effect on the accompanyingfinancial statements.

 

**NOTE3 –GOING CONCERN**

 

As reflected in the accompanying financialstatements, the Company had a negative working capital of $27,457 and a deficitaccumulated during the development stage of $64,557 at September 30, 2009 andhad a net loss and cash used in operations of $65,577 and $37,557 for the periodfrom March 19, 2007 (inception) through September 30, 2009, respectively, and earned no revenues since inception.

 

While the Company is attempting to commenceoperations and produce revenues, the Company’s cash position may not besignificant enough to support the Company’s daily operations. Managementintends to raise additional funds by way of a public or private offering.  Managementbelieves that the actions presently being taken to further implement itsbusiness plan and generate revenues provide the opportunity for the Company tocontinue as a going concern. While the Company believes in the viability of itsstrategy to increase revenues and in its ability to raise additional funds,there can be no assurances to that effect. The ability of the Company tocontinue as a going concern is dependent upon the Company’s ability to furtherimplement its business plan and generate revenues. The financial statements donot include any adjustments that might be necessary if the Company is unable tocontinue as a going concern. 

** **

**NOTE4– SUBSEQUENT EVENTS**

** **

The Company has evaluated all events that occur after the balancesheet date through November 15, 2009, the date when the financial statementswere issued to determine if they must be reported.  The Management of theCompany determined that there were no reportable subsequent events to bedisclosed. 

 

F-10

 

**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 andAnalysis contains statements that are forward-looking. These statements arebased on current 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 

 

 

 

 

 

Officer  Salaries                                                                                   

$150,000 

 

$350,000 

 

 

 

 

 

Marketing  Expense                                                                                

$135,000 

 

$700,000 

 

 

 

 

 

Working Capital                                                                                      

$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.

 

2

**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**

As of September  30, 2009, we had $243 cash on hand and $27,000 in accruedexpenses.  Our limited resources will affect the extent of our activities inthe future unless we 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.”

 

3

**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, assurancethat the objectives of the control system are met. Further, the design of acontrol system must reflect the fact that there are resource constraints, andthe benefits of controls must be considered relative to their costs. Because ofthe inherent limitations in all control systems, no evaluation of the controlscan provide absolute assurance that all control issues and instances of fraud,if any, 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.

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 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.

 

**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

5

 

**(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.

 

 

**Hamptons Extreme, Inc.**

 

Date:  November 13, 2009

By:

/s/  John Delaney

 

 

John  Delaney, President and CEO

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

                                                                                                               Brien Reidy, Chief Financial Officer 

 

 

 

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