UNITED STATES


SECURITIES AND EXCHANGE COMMISSION


Washington, D.C.  20549





FORM 10-Q


(Mark One)


[X]   QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE


SECURITIES EXCHANGE ACT OF 1934





For the quarterly period ended: September 30, 2010





or





[  ]   TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE


EXCHANGE ACT





For the transition period from __________ to __________





Commission file number  33-20111





Eat at Joe's Ltd.(Exact name of registrant as specified in its charter)





Delaware

75-2636283(State or other jurisdiction of incorporation or organization)

(IRS Employer Identification No.)





670 White Plains Road, Suite 120, Scarsdale, New York, 10583


(Address of principal executive offices)





(914) 725-2700


(Registrant's telephone number)





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


9 Yes 9 No





Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.





Large accelerated filer 9
Accelerated filer 9Non-accelerated filer 9  (Do not check if a smaller reporting company)
Smaller reporting company /





Indicate by check mark whether the  registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act). Yes [  ] No [ X ]





APPLICABLE ONLY TO CORPORATE ISSUERS





As of September 30, 2010, there were 106,577,710 shares of the Registrant's common stock, par value $0.0001, issued, and 20,000 shares of Series E Convertible preferred stock (convertible to 9,803,922 common shares), par value $0.0001.


1





PART I - FINANCIAL INFORMATION





Item 1.  Financial Statements





EAT AT JOE’S LTD., AND SUBSIDIARIES


CONSOLIDATED BALANCE SHEETS











(Unaudited)September 30,


December 31,2010


2009ASSETSCurrent Assets:Cash and cash equivalents

$
1,164,456


$
1,238,747Receivables


13,388



11,560Inventory


10,240



10,240Prepaid expense


17,292



15,993Loan Receivable


116,338



112,139Trading securities


36,263



262,509Available-for-sale securities


45,010



448,400Total Current Assets


1,402,987



2,099,588Property and equipment:Equipment


123,421



123,421Furniture & fixtures


3,964



3,964Leasehold improvements


381,133



381,133508,518



508,518Less accumulated depreciation


(499,399
)


(495,779
)Total Property & Equipment


9,119



12,739Other Assets:Intangible and other assets net ofamortization of $154,837 and $154,837for 2010 and 2009, respectively


-



-Total Other Assets


-



-TOTAL ASSETS

$
1,412,106


$
2,112,327


2


EAT AT JOE’S LTD., AND SUBSIDIARIES


CONSOLIDATED BALANCE SHEETS


(Continued)











(Unaudited)September 30,


December 31,2010


2009LIABILITIESCurrent Liabilities:Accounts payable and accrued liabilities

$
164,583


$
172,205Related party accounts payable


8,784



8,784Short-term notes payable


172,870



172,870Related party notes payable


2,451,594



2,591,219Convertible debentures


2,043,702



2,043,702Total Current Liabilities


4,841,533



4,988,780Non-Current Liabilities:Related party notes payable


157,982



151,047Total Liabilities


4,999,515



5,139,827STOCKHOLDERS’ EQUITYPreferred stock - $0.0001 par value.10,000,000 shares authorized;20,000 Series E shares issued and outstanding


2



2Common Stock - $0.0001 par value.250,000,000 shares authorized;106,577,710 issued and outstandingSeptember 30, 2010 and December 31, 2009.


10,658



10,658Additional paid-in capital


13,240,515



13,240,515Unrealized gain/loss on available-for-sale securities


(121,009
)


69,900Retained deficit


(16,717,575
)


(16,348,575
)Total Stockholders’ Equity


(3,587,409
)


(3,027,500
)TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$
1,412,106


$
2,112,327
































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


3


EAT AT JOE’S LTD., AND SUBSIDIARIES


CONSOLIDATED STATEMENTS OF OPERATIONS


(Unaudited)











For the three months ended


For the nine months endedSeptember 30,


September 30,2010


2009


2010


2009Revenues

$
354,472


$
319,112


$
927,123


$
979,217Cost of Revenues


124,898



136,284



332,272



393,628Gross Margin


229,574



182,828



594,851



585,589ExpensesLabor and Related Expenses


89,782



87,843



252,098



270,753Rent


52,206



46,784



152,903



140,227Depreciation and Amortization


1,180



1,217



3,620



3,737Other General and Administrative


62,736



31,934



179,365



164,992Total Operating Expenses


205,904



167,778



587,986



579,709Net Operating Income (Loss)


23,670



15,050



6,865



5,880Other Income (Expense)Interest Income


2,702



1,491



9,122



4,305Dividend Income


3



7



39



38Interest Expense


(34,302
)


(34,379
)


(107,310
)


(101,613
)Unrealized Gain (loss) on Trading Securities


(746
)


37,038



(137,984
)


75,443Gain (Loss) on Sale of MarketableSecurities


4,152



152,960



(139,732
)


154,256Net Other Income (Expense)


(28,191
)


157,117



(375,865
)


132,429Net Income (Loss) Before Income Taxes

$
(4,521
)

$
172,167


$
(369,000
)

$
138,309Income Tax (Expense) Benefit


-



-



-



-Net Income (Loss)

$
(4,521
)

$
172,167


$
(369,000
)

$
138,309Basic and Diluted Loss Per Common Share:

$
-


$
-


$
-


$
-Weighted Average Common Shares and Dilutive Potential Convertible Preferred Stock


116,381,632



119,077,710



116,381,632



119,077,710























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


4





EAT AT JOE’S LTD. AND SUBSIDIARIES


CONSOLIDATED STATEMENTS OF CASH FLOWS


(Unaudited)


For the nine months endedSeptember 30,2010


2009Cash Flows From Operating ActivitiesNet gain (loss) for the period

$
(369,000
)

$
138,309Adjustments to reconcile net loss to net cash

Provided by operating activitiesDepreciation and amortization


3,620



3,737Unrealized (gain) loss on trading securities


137,984



(75,443
)(Gain) Loss on sale of marketable securities


139,732



(154,256
)Decrease (Increase) in receivables


(1,828
)


(2,954
)Decrease (Increase) in interest receivable


(4,199
)


-Decrease (Increase) in prepaid expense


(1,299
)


(25
)(Decrease) Increase in accrued interest payable


107,310



101,613(Decrease) Increase in accounts payable and accrued liabilities


(7,621
)


(19,395
)Net Cash Used in Operating Activities


4,699



(8,414
)Cash Flows From Investing ActivitiesAdvance to investment company


-



(50,181
)Purchase of trading securities


(15,305
)


(294,675
)Purchase of available-for-sale securities


(27,500
)


(80,000
)Proceeds from sale of trading securities


203,815



533,689Proceeds from sale of available-for-sale securities


-



-Net Cash Provided by Investing Activities


161,010



108,833Cash Flows From Financing ActivitiesAdvances from majority stockholders


-



-Repayment of notes, advances and related party payables


(240,000
)


-Net Cash Provided by (Used in) Financing Activities


(240,000
)


-Increase in Cash


(74,291
)


100,419Cash at beginning of period


1,238,747



1,131,017Cash at End of Period

$
1,164,456


$
1,231,436





Supplemental Disclosure of Interest and Income Taxes PaidInterest paid during the period

$
-


$
-Income taxes paid during the period

$
-


$
-Supplemental Disclosure of Non-cash Investing and Financing Activities:Unrealized gain(loss) on trading securities

$
(137,984
)

$
75,443


.








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


5








EAT AT JOE’S LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2010 AND 2009





NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES





This summary of accounting policies for Eat At Joe’s, Ltd. and subsidiaries is presented to assist in understanding the Company's financial statements.  The accounting policies conform to generally accepted accounting principles and have been consistently applied in the preparation of the financial statements.





Interim Financial Statements





The unaudited financial statements as of September 30, 2010 and for the three and nine month periods ended September 30, 2010 and 2009 reflect, in the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to fairly state the financial position and results of operations for the three  and nine months.  Operating results for interim periods are not necessarily indicative of the results which can be expected for full years.





Organization





Eat At Joe’s Ltd. (Company) was incorporated on January 6, 1988, under the laws of the State of Delaware, as a wholly-owned subsidiary of Debbie Reynolds Hotel and Casino, Inc. (DRHC) (formerly Halter Venture Corporation or Halter Racing Stables, Inc.) a publicly-owned corporation.  DRHC caused the Company to register 1,777,000 shares of its initial 12,450,000 issued and outstanding shares of common stock with the Securities and Exchange Commission on Form S-18.  DRHC then distributed the registered shares to DRHC stockholders.





During the period September 30, 1988 to December 31, 1992, the Company remained in the development stage while attempting to enter the mining industry.  The Company acquired certain unpatented mining claims and related equipment necessary to mine, extract, process and otherwise explore for kaolin clay, silica, feldspar, precious metals, antimony and other commercial minerals from its majority stockholder and other unrelated third-parties.  The Company was unsuccessful in these start-up efforts and all activity was ceased during 1992 as a result of foreclosure on various loans in default and/or the abandonment of all assets.  From 1992 until 1996 the Company had no operations, assets or liabilities.





On July 29, 2003, the Board of Directors Resolved to change the authorized capital stock from 50,000,000 common shares to 250,000,000 common shares.  There was no change to the par value.





Basis of Presentation





The Company’s consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business.  The consolidated financial statements do not include any adjustment relating to recoverability and classification of recorded amounts of assets and liabilities that might be necessary should the Company be unable to continue as a going concern.


6





EAT AT JOE’S LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2010 AND 2009


(Continued)





NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


(Continued)





Basis of Presentation (continued)





The Company has incurred net loss for the nine months ended September 30, 2010 of $369,000.  As of September 30, 2010, the Company had a working capital deficit of $3,438,546.  These conditions raise substantial doubt as to the Company's ability to continue as a going concern.





The Company's continued existence is dependent upon its ability to execute its operating plan and to obtain additional debt or equity financing.  There can be no assurance the necessary debt or equity financing will be available, or will be available on terms acceptable to the Company.





Management plans include opening one new restaurant during the next twelve months and obtaining additional financing to fund payment of obligations and to provide working capital for operations and to finance future growth.  The Company is actively pursuing alternative financing and has had discussions with various third parties, although no firm commitments have been obtained.  In the interim, shareholders of the Company have committed to meeting its operating expenses.  Management believes these efforts will generate sufficient cash flows from future operations to pay the Company’s obligations and realize other assets.  There is no assurance any of these transactions will occur.





Nature of Business





The Company is developing, owns and operates theme restaurants styled in an “American Diner” atmosphere.





Principles of Consolidation





The consolidated financial statements include the accounts of Eat At Joe’s, LTD. And its wholly-owned subsidiaries, E.A.J. Hold, Inc., a Nevada corporation (“Hold”),  E.A.J. PHL Airport, Inc., a Pennsylvania corporation, E.A.J. Shoppes, Inc., a Nevada corporation, E.A.J. Cherry Hill, Inc., a Nevada corporation, E.A.J. Neshaminy, Inc., a Nevada corporation, E.A.J. PM, Inc., a Nevada corporation, E.A.J. Echelon, Inc., a Nevada corporation, E.A.J. Market East, Inc., a Nevada corporation, E.A.J. MO, Inc., a Nevada corporation, Branded Restaurant Group, Inc. (formerly E.A.J. Syracuse, Inc.), a Nevada corporation, E.A.J. Walnut Street, Inc., a Nevada corporation, E.A.J. Owings, Inc., a Nevada corporation, and 1398926 Ontario, Inc. and 1337855 Ontario, Inc., British Columbia corporations.  All significant intercompany accounts and transactions have been eliminated.





On January 29, 2010, the Company filed certificates of dissolution with the State of Nevada for E.A.J. Echelon, Inc., E.A.J. Owings, Inc., and Regency Communications Group, Inc. (formerly E.A.J. Neshaminy, Inc.).


7





EAT AT JOE’S LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2010 AND 2009


(Continued)





NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


(Continued)





Inventories





Inventories consist of food, paper items and related materials and are stated at the lower of cost (first-in, first-out method) or market.





Revenue Recognition





The Company generates revenue from the sale of food and beverage through its restaurants.  Revenue is recognized upon receipt of payment.





Income Taxes





The Company accounts for income taxes under the provisions of ASC 740 (formerly SFAS No. 109, “Accounting for Income Taxes”).  ASC 740 requires recognition of deferred income tax assets and liabilities for the expected future income tax consequences, based on enacted tax laws, of temporary differences between the financial reporting and tax bases of assets and liabilities.





Cash and Cash Equivalents





For purposes of the statement of cash flows, the Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents to the extent the funds are not being held for investment purposes.





Depreciation





Office furniture, equipment and leasehold improvements, are stated at cost.  Depreciation and amortization are computed using the straight-line method over the estimated economic useful lives of the related assets as follows:


Furniture & fixtures
5-10 yearsEquipment
5- 7 yearsLeasehold improvements
8-15 years





Maintenance and repairs are charged to operations; betterments are capitalized.  The cost of property sold or otherwise disposed of and the accumulated depreciation thereon are eliminated from the property and related accumulated depreciation accounts, and any resulting gain or loss is credited or charged to income.


8


EAT AT JOE’S LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2010 AND 2009


(Continued)





NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


(Continued)





Amortization





Intangible assets consist of a trademark registered with the United States of America Patent and Trademark Office with a registration No. 1575696.  Intangible assets are amortized over their estimated useful life of 10 years.





The Company has adopted the Financial Accounting Standards Board ASC 350 (formerly SFAS No., 142,  “Goodwill and Other Intangible Assets”).  ASC 350 requires, among other things, that companies no longer amortize goodwill, but instead test goodwill for impairment at least annually.  In addition, ASC requires that the Company identify reporting units for the purposes of assessing potential future impairments of goodwill, reassess the useful lives of other existing recognized intangible assets, and cease amortization of intangible assets with an indefinite useful life.  An intangible asset with an indefinite useful life should be tested for impairment in accordance with the guidance in ASC 350.





The Company has adopted Financial Accounting Standards Board ASC 360 (formerly Statement No. 144).  ASC 360 requires that long-lived assets, such as property, plant, and equipment, and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.  Recoverability of assets to be held and used is measured by comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset.  If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset.





Assets to be disposed of would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. The assets and liabilities of a disposed group classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheet.


9


EAT AT JOE’S LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2010 AND 2009


(Continued)





NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


(Continued)





Recent Accounting Standards





In April 2009, the FASB updated ASC 820 to provide additional guidance for estimating fair value when the volume and level of activity for the asset or liability have decreased significantly. ASC 820 also provides guidance on identifying circumstances that indicate a transaction is not orderly. The implementation of ASC 820 did not have a material effect on the Company’s financial statements.





In April 2009, the FASB updated ASC 825 regarding interim disclosures about fair value of financial instruments.  ASC 825 requires disclosures about fair value of financial instruments in interim reporting periods of publicly traded companies that were previously only required to be disclosed in annual financial statements. The implementation of ASC 825 did not have a material effect on the Company’s financial statements.





In April 2009, the FASB updated ASC 320 for proper recognition and presentation of other-than-temporary impairments.  ASC 320 provides additional guidance designed to create greater clarity and consistency in accounting for and presenting impairment losses on securities.  The implementation of ASC 320 did not have a material effect on the Company’s consolidated financial statements.





In June 2009, the FASB created the Accounting Standards Codification, which is codified as ASC 105.  ASC 105 establishes the codification as the single official non-governmental source of authoritative accounting principles (other than guidance issued by the SEC) and supersedes and effectively replaces previously issued GAAP hierarchy framework.  All other literature that is not part of the codification will be considered non-authoritative.  The codification is effective for interim and annual periods ending on or after September 15, 2009.  The Company has applied the codification, as required, beginning with the 2009 Form 10-K.  The adoption of the codification did not have a material impact on the Company’s financial position, results of operations or cash flows.





In June 2009, the FASB updated ASC 855, which established principles and requirements for subsequent events.  This guidance details the period after the balance sheet date which the Company should evaluate events or transactions that may occur for potential recognition or disclosure in the financial statements, the circumstances under which the Company should recognize events or transactions occurring after the balance sheet date in its financial statements and the required disclosures for such events.  ASC 855 is effective for interim and annual periods ending after June 15, 2009.  The implementation of ASC 855 did not have a material effect on the Company’s financial statements.





In October 2009, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2009-13 (ASU 2009-13), which provided an update to ASC 605.  ASU 2009-13 addresses how to separate deliverables and how to measure and allocate arrangement consideration to one or more units of accounting in multiple-deliverable arrangements. The amendments in this update will be effective prospectively for revenue arrangements entered into or materially modified in fiscal years beginning on or after June 15, 2010. The Company is currently evaluating the impact that this update will have on its Financial Statements.


10


EAT AT JOE’S LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2010 AND 2009


(Continued)





NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


(Continued)





Earnings (Loss) Per Share





Basic loss per share has been computed by dividing the loss for the year applicable to the common stockholders by the weighted average number of common shares outstanding during the years.





Diluted  net income per common share was calculated based on an increased number of shares that would be outstanding assuming that the preferred shares were converted to 9,803,922 and 12,500,000 common shares as of September 30, 2010 and 2009, respectively.  The effect of outstanding common stock equivalents are anti-dilutive for 2010 and 2009 and are thus not considered.





Pervasiveness of Estimates





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





Concentration of Credit Risk





The Company has no significant off-balance-sheet concentrations of credit risk such as foreign exchange contracts, options contracts or other foreign hedging arrangements.  The Company maintains the majority of its cash balances with one financial institution, in the form of demand deposits.





Reclassifications





Certain reclassifications have been made in the 2009 financial statements to conform with the 2010 presentation.





Fair Value of Financial Instruments





The carrying value of the Company's financial instruments, including receivables and accounts payable and accrued liabilities at September 30, 2010 and December 31, 2009 approximates their fair values due to the short-term nature of these financial instruments.  The carrying values of trading securities and available for sale securities are based on quoted market prices.


11





EAT AT JOE’S LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2010 AND 2009


(Continued)





NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


(Continued)





Investment in Marketable Securities





The Company’s securities investments that are bought and held for an indefinite period of time are classified as available-for-sale securities.  Available-for-sale securities are recorded at fair value on the balance sheet in current assets, with the change in fair value during the period excluded from earnings and recorded net of tax as a component of other comprehensive income.   All of the Company’s available-for-sale are marketable securities and have no maturity date.





The  Company’s securities investments that are bought and held principally for the purpose of selling them in the near term are classified as trading securities.  Trading securities are recorded at fair value on the balance sheet in current assets, with the change in fair value during the period included in earnings.





Investments in securities are summarized as follows:


December 31, 2009Gross


GrossUnrealized


Unrealized


FairGain


Loss


ValueTrading securities

$
107,562


$
-


$
262,509Available-for-sale securities

$
69,900


$
-


$
448,400





September 30, 2010Gross


GrossUnrealized


Unrealized


FairGain


Loss


ValueTrading securities

$
-


$
137,984


$
36,263Available-for-sale securities

$
-


$
121,009


$
45,010





Results of operations for the nine months ended September 30, 2010 include a charge of $137,984 for unrealized holding losses on trading securities.  Results of operations for the year ended December 31, 2009 include a gain of $107,562 for unrealized holding gains on trading securities.  For the nine months ended September 30, 2010, other comprehensive income includes a loss of $121,009 for unrealized holding losses on available-for-sale securities.  For the year ended December 31, 2009, other comprehensive income includes an unrealized holding gain on available-for-sale securities of $69,900.

















12


EAT AT JOE’S LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2010 AND 2009


(Continued)





NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


(Continued)





Realized Gains and losses are determined on the basis of specific identification.  During the nine months  ended September 30, 2010 and 2009, sales proceeds and gross realized gains and losses on securities classified as available-for-sale securities were:


For the nine months endedSeptember 30,2010


2009Trading securities:Sales Proceeds

$
203,815


$
533,689Gross Realized Losses

$
139,732


$
-Gross Realized Gains

$
-


$
154,256Available-for-sale securities:Sale Proceeds

$
-


$
-Gross Realized Losses

$
-


$
-Gross Realized Gains

$
-


$
-





The following table discloses the assets measured at fair value on a recurring basis and the methods used to determine fair value:


Fair Value Measurements at Reporting Date UsingQuoted Prices


Significant


SignificantFair Value at


in Active


Other


UnobservableSeptember 30,


Markets


Observable Inputs


Inputs2010


(Level 1)


(Level 2)


(Level 3)Trading securities

$
36,263


$
36,263


$
-


$
-Available-for-sale securities

$
45,010


$
45,010


$
-


$
-Total

$
81,273


$
81,273


$
-


$
-





Generally, for all trading securities and available-for-sale securities, fair value is determined by reference to quoted market prices.





NOTE 2 - SHORT-TERM NOTES PAYABLE





Short-Term Notes Payable consist of loans from unrelated entities as of September 30, 2010 and December 31, 2009.  The notes are payable one year from the date of issuance together with interest at 6.50% A.P.R.





13


EAT AT JOE’S LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2010 AND 2009


(Continued)





NOTE 3 - INCOME TAXES





As of December 31, 2009, the Company had a net operating loss carryforward for income tax reporting purposes of approximately $5,400,000 that may be offset against future taxable income through 2029.  Current tax laws limit the amount of loss available to be offset against future taxable income when a substantial change in ownership occurs.  Therefore, the amount available to offset future taxable income may be limited.  No tax benefit has been reported in the financial statements, because the Company believes there is a 50% or greater chance the carryforwards will expire unused.  Accordingly, the potential tax benefits of the loss carryforwards are offset by a valuation allowance of the same amount.





The Company has the following tax assets:


December 31,


December 31,2009


2008Net Operating Losses

$
1,836,000


$
2,074,000Depreciation and Other


102,340



108,800Valuation Allowance


(1,938,340
)


(2,182,800
)$
-


$
-





The provision for income taxes differs from the amount computed using the federal US statutory income tax rate as follows:


December 31,


December 31,2009


2008Provision (Benefit) at US Statutory Rate

$
99,900


$
(350,200
)Net Operating Losses


251,000



34,000Depreciation and Other


(106,440
)


355,400Increase (Decrease) in Valuation Allowance


(244,460
)


(39,200
)$
-


$
-





The Company evaluates its valuation allowance requirements based on projected future operations. When circumstances change and causes a change in management's judgement about the recoverability of deferred tax assets, the impact of the change on the valuation is reflected in current income.





NOTE 4 - UNCERTAIN TAX POSITIONS





Effective January 1, 2007, the company adopted the provisions of ASC 740 (formerly FASB Interpretation No. 48, “Accounting for Uncertainty in Income Taxes - an interpretation of FASB Statement No. 109” (“FIN 48”)). ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. The adoption of the provisions of ASC 740 did not have a material impact on the company’s condensed consolidated financial position and results of operations. At June 30, 2010, the company had no liability for unrecognized tax benefits and no accrual for the payment of related interest and penalties. The Company did not record a cumulative effect adjustment relating to the adoption of ASC 740.


14


EAT AT JOE’S LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2010 AND 2009


(Continued)





NOTE 4 - UNCERTAIN TAX POSITIONS (continued)





Interest costs related to unrecognized tax benefits are classified as “Interest expense, net” in the accompanying condensed consolidated statements of operations. Penalties, if any, would be recognized as a component of “Selling, general and administrative expenses”. The Company recognized $0 of interest and penalties expense related to unrecognized tax benefits during 2009. In many cases the company’s uncertain tax positions are related to tax years that remain subject to examination by relevant tax authorities. With few exceptions, the company is generally no longer subject to U.S. federal, state, local or non-U.S. income tax examinations by tax authorities for years before 2006. The following describes the open tax years, by major tax jurisdiction, as of December 31, 2009:


United States (a)

2006 - Present





(a) Includes federal as well as state or similar local jurisdictions, as applicable.





NOTE 5 - RELATED PARTY TRANSACTIONS





During 2009 and 2008, Joseph Fiore, C.E.O. of the Company, and Berkshire Capital, which is controlled by Mr. Fiore, paid expenses and made advances to the Company.  All expenses paid on behalf of the company have been recorded in the consolidated statements of operations for the period incurred.  As of September 30, 2010 and December 31, 2009,  $1,058,709 and $1,012,236 (including accrued interest at 6%) in advances was due to these related parties.





On August 8, 2003, the Board resolved to enter into an agreement with Berkshire Capital Management Co., Inc., a related party, for the purpose of utilizing the Company’s tax loss carry forward to sell Berkshire’s acquired free trading stock in other public companies.  As of September 30, 2010 and December 31, 2009, related party accounts payable include $8,784 and $8,784, respectively, due to Berkshire Capital.





On May 16, 2007, the Company acquired 3,000,000 shares of Sustainable Power Corp. From Berkshire Capital Management in exchange for a demand note in the amount of $210,000, carrying an interest rate of 6% A.P.R.  During the nine months ended September 30, 2010, the Company paid $210,000 towards this loan.  At September 30, 2010, $43,190 was due on this loan.





On May 16, 2007, 45,529,411 restricted shares of Eat at Joe’s, LTD were issued by the Board of Directors to Berkshire Capital Management Co, Inc at $0.015 per share in satisfaction of $682,941 in related party accounts payable due to Berkshire Capital Management.  The shares were valued using the fair market value of the stock on the date of issuance.  The fair market value of the stock was determined by the quoted market price of the stock on the date of issuance.





On June 14, 2007, the Company acquired 1,000,000 shares of International Oil & Gas Holdings Corp. From Berkshire Capital Management in exchange for a demand note in the amount of $125,000, carrying an interest rate of 6% A.P.R.  At September 30, 2010, $152,239 was due on this loan.








15


EAT AT JOE’S LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2010 AND 2009


(Continued)





NOTE 5 - RELATED PARTY TRANSACTIONS (continued)





On July 17, 2007, the Company acquired 3,000,000 shares of International Oil & Gas Holdings Corp. From Berkshire Capital Management in exchange for a demand note in the amount of $465,000, carrying an interest rate of 6% A.P.R.  On January 8, 2008, $375,156 was paid on this note.  At September 30, 2010, $121,647 was due on this loan.





On August 22, 2007, the Company acquired 2,000,000 shares of International Oil & Gas Holdings Corp. From Berkshire Capital Management in exchange for a demand note in the amount of $160,000, carrying an interest rate of 6% A.P.R.  At September 30, 2010, $192,711 was due on this loan.





On September 20, 2007, the Company acquired 1,000,000 shares of International Oil & Gas Holdings Corp. From Berkshire Capital Management in exchange for a demand note in the amount of $55,000, carrying an interest rate of 6% A.P.R.  At September 30, 2010, $65,926 was due on this loan.





On January 11, 2008, the Company acquired 1,000,000 shares of Sustainable Power Corp from Berkshire Capital Management in exchange for a demand note in the amount of $47,000, carrying an interest rate of 6% A.P.R.  At September 30, 2010, $55,314 was due on this loan.





On February 29, 2008, the Company acquired 2,000,000 shares of Sustainable Power Corp. From Berkshire Capital Management in exchange for a demand note in the amount of $126,000, carrying an interest rate of 6% A.P.R.  At September 30, 2010, $147,068 was due on this loan.





On February 28, 2008, 16,000,000 shares at $.013 of common stock were issued to the company’s current officers, directors and support staff.  The shares were valued using the fair market value of the stock on the date of issuance.  The fair market value of the stock was determined by the quoted market price of the stock on the date of issuance.  Compensation expense of $208,000 resulting from this issuance has been recorded in the accompanying financial statements.





On April 24, 2008, the Company acquired 2,000,000 shares of Sustainable Power Corp. From Berkshire Capital Management in exchange for a demand note in the amount of $71,000, carrying an interest rate of 6% A.P.R.  At September 30, 2010, $82,130 was due on this loan.





On April 24, 2008, the Company acquired 862,500 shares of EFoodSafety.Com from Berkshire Capital Management in exchange for a demand note in the amount of $163,875, carrying an interest rate of 6% A.P.R.  On March 26, 2010, $30,000 was paid on this note.  At September 30, 2010, $158,646 was due on this loan.





On July 1, 2008, the Company acquired 2,000,000 shares of Sustainable Power Corp. from Berkshire Capital Management in exchange for a demand note in the amount of $63,000, carrying an interest rate of 6% A.P.R.  At September 30, 2010, $72,077 was due on this loan.





On November 18, 2009, the Company acquired 5,000,000 share of Nuvilex, Inc. from Berkshire Capital Management in exchange for a note payable in the amount of $150,000.  The note is due in three years and carries an interest rate of 6% A.P.R.  At September 30, 2010, $157,982 was due on this loan.


16


EAT AT JOE’S LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2010 AND 2009


(Continued)





NOTE 6 - RENT AND LEASE EXPENSE





The Company’s wholly-owned subsidiary E.A.J. PHL Airport, Inc. leases approximately 845 square feet in the Philadelphia Airport, Philadelphia, Pennsylvania pursuant to a  lease dated April 30, 1997.  E.A.J. PHL Airport pays $7,083 per month basic rent plus 15% -18% of gross revenues above $850,000 under the lease which expires April 2010.





The minimum future lease payments under these leases for the next five years are:





Year Ended December 31,

Real Property2010


28,3322011


-2012


-2013


-2014


-Total five year minimum lease payments

$
28,332





The lease generally provides that insurance, maintenance and tax expenses are obligations of the Company.  It is expected that in the normal course of business, leases that expire will be renewed or replaced by leases on other properties.





NOTE 7 - CONVERTIBLE DEBENTURES





On July 31, and September 2, 1998, the Company sold its 8% convertible debenture in the aggregate principal amount of $1,500,000 to an accredited investor pursuant to an exemption from registration under Section 4(2) and/or Regulation D.





The material terms of the Company' convertible debentures provide for the payment of interest at 8% per annum payable quarterly, mandatory redemption after 3 years from the date of issuance at 130% of the principal amount.  Subject to adjustment, the debentures are convertible into Common Stock at the lower of a fixed conversion price ($1.82 per share for $900,000 principal amount of debentures; $1.61 per share for $600,000 principal amount of debentures) or 75% of the average closing bid price for the Company's Common Stock for the 5 trading days preceding the date of the conversion  notice.  Repayment of the indebtedness is secured by a general lien on the assets of the Company and guarantee by 5 of the Company's subsidiaries.





Total issue costs were $156,551.20 which were amortized over the initial terms of the debt with a maturity date of July 31 and September 2, 2001.

















17


EAT AT JOE’S LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2010 AND 2009


(Continued)





NOTE 8 - CONVERTIBLE PREFERRED STOCK





The Series E Convertible Preferred Stock carries the following rights and preferences;





*
No dividends.


*
Convertible to common stock at the average closing bid price for the Company’s common stock for the 5 trading days prior to the conversion date, and is adjustable to prevent dilution.  (Convertible to 9,803,922 common shares at September 30, 2010).


*
Convertible at the Option of the Company at par value only after repayment of the shareholder loans from Joseph Fiore and subject to the holders option to convert.


*
Entitled to vote 1,000 votes per share of Series E Convertible Preferred Shares.


*
Entitled to liquidation preference at par value.


*
Is senior to all other share of preferred or common shares issued past, present and future.





NOTE 9 - NOTE RECEIVABLE





On September 8, 2009, the company loaned to an unrelated entity an amount of $50,000.  The note is payable within one year from the date of issuance together with interest of 6.0% A.P.R.





On November 24, 2009, the company loaned to an unrelated entity an amount of $1,000.  The note is payable within one year from the date of issuance together with interest of 4.0% A.P.R.





On December 1, 2009, the company loaned to an unrelated entity an amount of $60,000.  The  note is  payable within one year from the date of issuance together with interest of 6.0% A.P.R.





As of September 30, 2010 and December 31, 2009, note receivable outstanding was $116,338 and $112,139 (including accrued interest at 6.0% and 4.0%).























18


Item 2.  Management's Discussion and Analysis or Plan of Operation.





General - This discussion should be read in conjunction with Management's Discussion and Analysis of Financial Condition and Results of Operations in the Company's annual report on Form 10-K for the year ended December 31, 2009.





Plan of Operations -Eat at Joe's Ltd. Intends to open and operate theme restaurants styled in an "American Diner" atmosphere where families can eat wholesome, home cooked food in a safe friendly atmosphere.  Eat at Joe's, the classic American grill, is a restaurant concept that takes you back to eating in the era when favorite old rockers were playing on chrome-spangled jukeboxes and neon signs reflected on shiny tabletops of the 1950's.  Eat at Joe's fulfills the diner dream with homey ambiance that's affordable while providing food whose quality and variety is such you can eat there over and over, meal after meal.  To build on the diner experience, a retail section in each Eat at Joe's would allow customers to take the good feelings home with them, in the form of 50's memorabilia.





The Company's expansion strategy is to open restaurants either through Joint Venture agreements or Company owned units.  Units may consist of a combination of full service restaurants or food court locations.  Restaurant construction will take from 90-150 days to complete on a leased site.





In considering site locations, the Company concentrates on trade demographics, such as traffic volume, accessibility and visibility.  High Visibility Malls and Strip Malls in densely populated suburbs are the preferred locations.  The Company also scrutinizes the potential competition and the profitability of national restaurant chains in the target market area.  As part of the expansion program, the Company will inspect and approve each site before approval of any joint venture or partnership.





A typical food court unit is approximately 500 square feet, whereas for a full service operation it is approximately 3,500 square feet.  Food court operation consists of a limited menu.  A full service restaurant consists of 30-35 tables seating about 140-150 people.  The bar area will hold 6-8 tables and seats 30-35 people.





The restaurant industry is an intensely competitive one, where price, service, location, and food quality are critical factors.  The Company has many established competitors, ranging from similar casual-style chains to local single unit operations.  Some of these competitors have substantially greater financial resources and may be established or indeed become established in areas where the Eat  at Joe's Company operates.  The restaurant industry may be affected by changes in customer tastes, economic, demographic trends, and traffic patterns.  Factors such as inflation, increased supplies costs and the availability of suitable employees may adversely affect the restaurant industry in general and the Eat at Joe's Company Restaurant in particular.  Significant numbers of the Eat at Joe's personnel are paid at rates related to the federal minimum wage and accordingly, any changes in this would affect the Company's labor costs.





Over the next twelve months, the company will maintain operations as they currently exist.  We do not anticipate the hiring of new full-time employees or the need for additional funds to satisfy cash requirements.  Expansion within the current location is not viable, however management may seek to make acquisitions of established businesses, or, if a desirable location becomes available, we may elect to expand the concept.  Locations would be sought in heavily trafficked areas, such as within an airport, train station, etc.  We have not found any such location as of the date of this filing and no agreements are in place.














19


Results of Operations - For the nine months ended September 30 2010, the Company had a net loss of $369,000,  composed of a gain from operations of $6,865 and net other loss of $375,865   For the nine months ended September 30, 2009, the Company had a net income of $138,309 composed of a gain from operations of $5,880 and net other gain of $132,429.  Net other income/loss is primarily due to gains and losses from the sale of trading and available for sale securities.





Total Revenues - For the nine months ended September 30, 2010 and 2009, the Company had total sales of approximately $927,000 and $980,000  respectively, for a decrease of approximately $53,000.  The overall economic condition of the country has caused airport traffic to decline. Consumers are spending and traveling less and airlines are eliminating or combining flights. There is a direct correlation between airport traffic and the Company’s sales, thus the decrease in revenues in 2010 compared to 2009. As the economy stabilizes and moves toward a recovery, airport traffic is expected to increase and will be reflected in increased sales for the Company.





Costs and Expenses - Costs of revenues, which include the costs of food, beverage, and kitchen supplies remained similar as a percentage of sales from 2010 to 2009. The cost of labor, rent and other general and administrative costs, remained the same as a percentage of sales for the nine months ended September 30, 2010 compared to the nine months ended September 30, 2009.





Depreciation and amortization expense decresed by approximately $117 from 2010 to 2009, respectively, due to certain fixed assets reaching the end of their estimated depreciable lives.  Management expects depreciation and amortization to decline  until the Company can carry out its expansion plans.  Depreciation expense will increase as these plans are completed and as new assets are acquired.





LIQUIDITY AND CAPITAL RESOURCES





As of September 30, 2010, the Company has a working capital deficit of approximately $3,438,546.  The Company's continued existence is dependent upon its ability to execute its operating plan and to obtain additional debt or equity financing.  There can be no assurance the necessary debt or equity financing will be available, or will be available on terms acceptable to the Company.





Management plans include searching for and opening new restaurants in the future and obtaining additional financing to fund payment of obligations and to provide working capital for operations and to finance future growth.  The Company is actively pursuing alternative financing and has had discussions with various third parties, although no firm commitments have been obtained.  In the interim, shareholders of the Company have committed to meeting its operating expenses.  Management believes these efforts will generate sufficient cash flows from future operations to pay the Company’s obligations and realize other assets.  There is no assurance any of these transactions will occur.





The Company has met its capital requirements through the sale of its Common Stock, Convertible Preferred Stock, Convertible Debentures  and Notes Payable.





Since the Company's re-activation in January, 1997, the Company's principal capital  requirements have been the funding of (i) the development of the Company and its 1950's diner style  concept, (ii) the construction of its existing units and the acquisition of the furniture, fixtures and equipment therein and (iii) towards the development of additional units.





During the nine months ended September 30, 2010 and 2009, the Company generated approximately $161,000 and $109,000 respectfully, in cash from investing activities from the purchase and sale of marketable equity securities.  As of September 30, 2010, the company owns marketable securities valued at $81,273 with corresponding liabilities of $1,257,714 in the form of related party payables of $8,784 and related party notes payable of $1,248,930 (including interest accruing at 6%).





20


During the nine months ended September 30, 2010 and 2009, the Company raised approximately $0 and $0 through short-term notes payable and advances from Majority stockholders.  The net proceeds to the Company were used for working capital.  During 2009, the Company repaid $60,000 in shareholder advances from past years. As of September 30, 2010, approximately $1,058,709 (including interest accruing at 6%) in advances was due to Joseph Fiore, C.E.O. of the Company.





On May 16, 2007, 45,529,411 restricted shares of Eat at Joe’s, LTD were issued by the Board of Directors to Berkshire Capital Management Co, Inc at $0.015 per share in satisfaction of $682,941.00 in related party accounts payable due to Berkshire Capital Management.  The shares were valued using the fair market value of the stock on the date of issuance.  The fair market value of the stock was determined by the quoted market price of the stock on the date of issuance.





On February 28, 2008, 16,000,000 shares at $.013 of common stock were issued to the company’s current officers, directors and support staff.  The shares were valued using the fair market value of the stock on the date of issuance.  The fair market value of the stock was determined by the quoted market price of the stock on the date of issuance.  Compensation expense of $208,000 resulting from this issuance has been recorded in the accompanying financial statements.





For the nine months ended September 30, 2010 and 2009, operating activities provided (used) approximately $4,700 and ($8,400) in cash.





After the completion of its expansion plans, the Company expects future development and expansion will be financed through cash flow from operations and other forms of financing such as the sale of additional equity and debt securities, capital leases and other credit facilities.  There are no assurances that such financing will be available on terms acceptable or favorable to the Company.





Government Regulations -The Company is subject to all pertinent Federal, State, and Local laws governing its business.  Each Eat at Joe's is subject to licensing and regulation by a number of authorities in its State or municipality.  These may include health, safety, and fire regulations.  The Company's operations are also subject to Federal and State minimum wage laws governing such matters as working conditions, overtime and tip credits.





Critical Accounting Policies -The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Note 1 to the Consolidated Financial Statements describes the significant accounting policies and methods used in the preparation of the Consolidated Financial Statements. Estimates are used for, but not limited to, contingencies and taxes.  Actual results could differ materially from those estimates. The following critical accounting policies are impacted significantly by judgments, assumptions, and estimates used in the preparation of the Consolidated Financial Statements.





We are subject to various loss contingencies arising in the ordinary course of business.  We consider the likelihood of loss or impairment of an asset or the incurrence of a liability, as well as our ability to reasonably estimate the amount of loss in determining loss contingencies.  An estimated loss contingency is accrued when management concludes that it is probable that an asset has been impaired or a liability has been incurred and the amount of the loss can be reasonably estimated.  We regularly evaluate current information available to us to determine whether such accruals should be adjusted.





21


We recognize deferred tax assets (future tax benefits) and liabilities for the expected future tax consequences of temporary differences between the book carrying amounts and the tax basis of assets and liabilities.  The deferred tax assets and liabilities represent the expected future tax return consequences of those differences, which are expected to be either deductible or taxable when the assets and liabilities are recovered or settled.  Future tax benefits have been fully offset by a 100% valuation allowance as management is unable to determine that it is more likely than not that this deferred tax asset will be realized.





Investment in Marketable Securities





The Company’s securities investments that are bought and held for an indefinite period of time are classified as available-for-sale securities.  Available-for-sale securities are recorded at fair value on the balance sheet in current assets, with the change in fair value during the period excluded from earnings and recorded net of tax as a component of other comprehensive income.





The  Company’s securities investments that are bought and held principally for the purpose of selling them in the near term are classified as trading securities.  Trading securities are recorded at fair value on the balance sheet in current assets, with the change in fair value during the period included in earnings.





Recently Enacted and Proposed Regulatory Changes - Recently enacted and proposed changes in the laws and regulations affecting public companies, including the provisions of the Sarbanes-Oxley Act of 2002 and rules proposed by the SEC and NASDAQ could cause us to incur increased costs as we evaluate the implications of new rules and respond to new requirements. The new rules could make it more difficult for us to obtain certain types of insurance, including directors and officers liability insurance, and we may be forced to accept reduced policy limits and coverage or incur substantially higher costs to obtain the same or similar coverage. The impact of these events could also make it more difficult for us to attract and retain qualified persons to serve on the Company's board of directors, or as executive officers. We are presently evaluating and monitoring developments with respect to these new and proposed rules, and we cannot predict or estimate the amount of the additional costs we may incur or the timing of such costs.





In April 2009, the FASB updated ASC 820 to provide additional guidance for estimating fair value when the volume and level of activity for the asset or liability have decreased significantly. ASC 820 also provides guidance on identifying circumstances that indicate a transaction is not orderly. The implementation of ASC 820 did not have a material effect on the Company’s financial statements.





In April 2009, the FASB updated ASC 825 regarding interim disclosures about fair value of financial instruments.  ASC 825 requires disclosures about fair value of financial instruments in interim reporting periods of publicly traded companies that were previously only required to be disclosed in annual financial statements. The implementation of ASC 825 did not have a material effect on the Company’s financial statements.





In April 2009, the FASB updated ASC 320 for proper recognition and presentation of other-than-temporary impairments.  ASC 320 provides additional guidance designed to create greater clarity and consistency in accounting for and presenting impairment losses on securities.  The implementation of ASC 320 did not have a material effect on the Company’s consolidated financial statements.





22


In June 2009, the FASB created the Accounting Standards Codification, which is codified as ASC 105.  ASC 105 establishes the codification as the single official non-governmental source of authoritative accounting principles (other than guidance issued by the SEC) and supersedes and effectively replaces previously issued GAAP hierarchy framework.  All other literature that is not part of the codification will be considered non-authoritative.  The codification is effective for interim and annual periods ending on or after September 15, 2009.  The Company has applied the codification, as required, beginning with the 2009 Form 10-K.  The adoption of the codification did not have a material impact on the Company’s financial position, results of operations or cash flows.





In June 2009, the FASB updated ASC 855, which established principles and requirements for subsequent events.  This guidance details the period after the balance sheet date which the Company should evaluate events or transactions that may occur for potential recognition or disclosure in the financial statements, the circumstances under which the Company should recognize events or transactions occurring after the balance sheet date in its financial statements and the required disclosures for such events.  ASC 855 is effective for interim and annual periods ending after June 15, 2009.  The implementation of ASC 855 did not have a material effect on the Company’s financial statements.





In October 2009, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2009-13 (ASU 2009-13), which provided an update to ASC 605.  ASU 2009-13 addresses how to separate deliverables and how to measure and allocate arrangement consideration to one or more units of accounting in multiple-deliverable arrangements. The amendments in this update will be effective prospectively for revenue arrangements entered into or materially modified in fiscal years beginning on or after June 15, 2010. The Company is currently evaluating the impact that this update will have on its Financial Statements.





Item 3. Quantitative and Qualitative Disclosures About Market Risk





Not applicable.





Item 4.  Controls and Procedures





The Company's Chief Executive Officer and Chief Financial Officer are responsible for establishing and maintaining disclosure controls and procedures for the Company.





(a)
Evaluation of Disclosure Controls and Procedures





As of the end of the period covered by this report, the Company carried out an evaluation, under the supervision and with the participation of the Company's management, including the Company's President, of the effectiveness of the design and operation of the Company's disclosure controls and procedures pursuant to Rule 13a-15 under the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Based upon the evaluation, the Company's President concluded that, as of the end of the period, the Company's disclosure controls and procedures were effective in timely alerting him to material information relating to the Company required to be included in the reports that the Company files and submits pursuant to the Exchange Act.





(b)
Changes in Internal Controls





Based on this evaluation as of September 30, 2010, there were no changes in the Company's internal controls over financial reporting or in any other areas that could significantly affect the Company's internal controls subsequent to the date of his most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.


23


PART II - OTHER INFORMATION





Item 1.  Legal Proceedings





None.





Item 1A.  Risk Factors





None.





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





None.





Item 3.  Defaults Upon Senior Securities





None.





Item 4.  Submission of Matters to a Vote of Security Holders.





None





Item 5.  Other Information





None.





Item 6.  Exhibits





The following exhibits are included as part of this report:





Exhibit Number
Title of Document31
Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.32
Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.








24


SIGNATURES





In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.








EAT AT JOE'S LTD.


(Registrant)




















DATE:  November 8, 2010
By: /s/ Joseph FioreJoseph FioreC.E.O., C.F.O., Chairman, Secretary, Director(Principal Executive & Accounting Officer)