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: March 31, 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.


☐ Yes ☐ 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 ☐
            Accelerated
      filer ☐


Non-accelerated
      filer ☐  (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 March 31, 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
16,556,291 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)March
      31,
            
            
            December
      31,2010
            
            
            2009ASSETSCurrent
      Assets:Cash
      and cash equivalents
            
            $
            1,297,071
            
            
            $
            1,238,747Receivables
            
            
            11,164
            
            
            
            11,560Inventory
            
            
            10,240
            
            
            
            10,240Prepaid
      expense
            
            
            15,993
            
            
            
            15,993Loan
      Receivable
            
            
            113,520
            
            
            
            112,139Trading
      securities
            
            
            64,140
            
            
            
            262,509Available-for-sale
      securities
            
            
            136,400
            
            
            
            448,400Total
      Current Assets
            
            
            1,648,528
            
            
            
            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
            
            
            (497,039
            )
            
            
            (495,779
            )Total
      Property & Equipment
            
            
            11,479
            
            
            
            12,739Other
      Assets:Intangible
      and other assets net ofamortization
      of $154,837 and $154,837for
      2010 and 2009, respectively
            
            
            -
            
            
            
            -Total
      Other Assets
            
            
            -
            
            
            
            -TOTAL
      ASSETS
            
            $
            1,660,007
            
            
            $
            2,112,327





2


EAT AT
JOE’S LTD., AND SUBSIDIARIES


CONSOLIDATED
BALANCE SHEETS


(Continued)











(Unaudited)March
      31
            
            
            December
      31,2010
            
            
            2009LIABILITIESCurrent
      Liabilities:Accounts
      payable and accrued liabilities
            
            $
            161,321
            
            
            $
            172,205Related
      party accounts payable
            
            
            8,784
            
            
            
            8,784Short-term
      notes payable
            
            
            172,870
            
            
            
            172,870Related
      party notes payable
            
            
            2,595,723
            
            
            
            2,591,219Convertible
      debentures
            
            
            2,043,702
            
            
            
            2,043,702Total
      Current Liabilities
            
            
            4,982,400
            
            
            
            4,988,780Non-Current
      Liabilities:Related
      party notes payable
            
            
            153,324
            
            
            
            151,047Total
      Liabilities
            
            
            5,135,724
            
            
            
            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 outstandingMarch
      31, 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
            
            
            (192,719
            )
            
            
            69,900Retained
      deficit
            
            
            (16,534,173
            )
            
            
            (16,348,575
            )Total
      Stockholders’ Equity
            
            
            (3,475,717
            )
            
            
            (3,027,500
            )TOTAL
      LIABILITIES AND STOCKHOLDERS’ EQUITY
            
            $
            1,660,007
            
            
            $
            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 endedMarch
      312010
            
            
            2009Revenues
            
            $
            282,126
            
            
            $
            311,278Cost
      of Revenues
            
            
            118,141
            
            
            
            127,133Gross
      Margin
            
            
            163,985
            
            
            
            184,145ExpensesLabor
      and Related Expenses
            
            
            84,172
            
            
            
            90,175Rent
            
            
            46,784
            
            
            
            46,709Depreciation
      and Amortization
            
            
            1,260
            
            
            
            1,260Other
      General and Administrative
            
            
            34,766
            
            
            
            49,978Total
      Operating Expenses
            
            
            166,982
            
            
            
            188,122Net
      Operating Income (Loss)
            
            
            (2,997
            )
            
            
            (3,977
            )Other
      Income (Expense)Interest
      Income
            
            
            3,751
            
            
            
            1,553Dividend
      Income
            
            
            16
            
            
            
            29Interest
      Expense
            
            
            (36,782
            )
            
            
            (33,365
            )Unrealized
      Gain (loss) on Trading Securities
            
            
            (177,978
            )
            
            
            54,260Gain
      (Loss) on Sale of MarketableSecurities
            
            
            28,392
            
            
            
            32,636Net
      Other Income (Expense)
            
            
            (182,601
            )
            
            
            55,113Net
      Income (Loss) Before Income Taxes
            
            $
            (185,598
            )
            
            $
            51,136Income
      Tax (Expense) Benefit
            
            
            -
            
            
            
            -Net
      Income (Loss)
            
            $
            (185,598
            )
            
            $
            51,136Basic
      and Diluted Loss Per Common Share:
            
            $
            0.00
            
            
            $
            0.00Weighted
      Average Common Shares and Dilutive Potential Convertible Preferred
      Stock
            
            
            106,577,710
            
            
            
            106,577,710











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 three months endedMarch
      31,2010
            
            
            2009Cash
      Flows From Operating ActivitiesNet
      gain (loss) for the period
            
            $
            (185,598
            )
            
            $
            51,136Adjustments
      to reconcile net loss to net cash
              Provided
      by operating activitiesDepreciation
      and amortization
            
            
            1,260
            
            
            
            1,260Unrealized
      (gain) loss on trading securities
            
            
            177,978
            
            
            
            (54,260
            )(Gain)
      Loss on sale of marketable securities
            
            
            (28,392
            )
            
            
            (32,636
            )Decrease
      (Increase) in receivables
            
            
            396
            
            
            
            (2,801
            )Decrease
      (Increase) in interest receivable
            
            
            (1,381
            )
            
            
            -Decrease
      (Increase) in prepaid expense
            
            
            -
            
            
            
            15,570(Decrease)
      Increase in accrued interest payable
            
            
            36,782
            
            
            
            33,366(Decrease)
      Increase in accounts payable and accrued liabilities
            
            
            (10,884
            )
            
            
            (9,318
            )Net
      Cash Used in Operating Activities
            
            
            (9,839
            )
            
            
            2,317Cash
      Flows From Investing ActivitiesPurchase
      of trading securities
            
            
            (1,925
            )
            
            
            (107,500
            )Purchase
      of available-for-sale securities
            
            
            (15,000
            )
            
            
            -Proceeds
      from sale of trading securities
            
            
            115,088
            
            
            
            128,345Proceeds
      from sale of available-for-sale securities
            
            
            -
            
            
            
            -Net
      Cash Provided by Investing Activities
            
            
            98,163
            
            
            
            20,845Cash
      Flows From Financing ActivitiesAdvances
      from majority stockholders
            
            
            -
            
            
            
            -Repayment
      of notes, advances and related party payables
            
            
            (30,000
            )
            
            
            -Net
      Cash Provided by (Used in) Financing Activities
            
            
            (30,000
            )
            
            
            -Increase
      in Cash
            
            
            58,324
            
            
            
            23,162Cash
      at beginning of period
            
            
            1,238,747
            
            
            
            1,131,017Cash
      at End of Period
            
            $
            1,297,071
            
            
            $
            1,154,179





Supplemental
      Disclosure of Interest and Income Taxes PaidInterest
      paid during the period
            
            $
            -
            
            
            $
            -Income
      taxes paid during the period
            
            $
            1,800
            
            
            $
            -Supplemental
      Disclosure of Non-cash Investing and Financing
      Activities:Unrealized
      gain (loss) on trading securities
            
            $
            (177,978
            )
            
            $
            54,260








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
THREE MONTHS  ENDED MARCH 31, 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 March 31, 2010 and for the three month periods ended March 31, 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  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
THREE MONTHS ENDED MARCH 31, 2010 AND 2009


(Continued)





NOTE 1 - ORGANIZATION AND
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


(Continued)





Basis of Presentation
(continued)





The Company has incurred a net loss for
the three months ended March 31, 2010 of $185,598 and net income of $51,136 for
the three months ended March 31, 2009 and the Company used cash from operations
of $9,839 for the three months ended March 31, 2010, and was provided cash of
$2,317 for the three months ended March 31, 2009, respectively.  As of
March 31, 2010, the Company had a working capital deficit of
$3,333,872.  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, 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
THREE MONTHS ENDED MARCH 31, 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 SFAS No. 109, “Accounting for Income
Taxes.”  SFAS No.109 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
THREE MONTHS ENDED MARCH 31, 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 SFAS No., 142,  “Goodwill and Other
Intangible Assets.”  SFAS 142 requires, among other things, that
companies no longer amortize goodwill, but instead test goodwill for impairment
at least annually.  In addition, SFAS 142 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 SFAS
142.





The Company has adopted Financial
Accounting Standards Board Statement No. 144.  SFAS 144 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
THREE MONTHS ENDED MARCH 31, 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
THREE MONTHS ENDED MARCH 31, 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 16,556,291 and
18,518,519 common shares as of March 31, 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 March 31, 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
THREE MONTHS ENDED MARCH 31, 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





March
      31, 2010Gross
            
            
            GrossUnrealized
            
            
            Unrealized
            
            
            FairGain
            
            
            Loss
            
            
            ValueTrading
      securities
            
            $
            -
            
            
            $
            177,978
            
            
            $
            64,140Available-for-sale
      securities
            
            $
            -
            
            
            $
            192,719
            
            
            $
            136,400





Results of operations for the three
months ended March 31, 2010 include a charge of $177,978 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 three months ended March 31, 2010,
other comprehensive income includes a loss of $192,719 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
THREE MONTHS ENDED MARCH 31, 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 three
months  ended March 31, 2010 and 2009, sales proceeds and gross
realized gains and losses on securities classified as available-for-sale
securities were:


For
      the three months endedMarch
      31,2010
            
            
            2009Trading
      securities:Sales
      Proceeds
            
            $
            115,088
            
            
            $
            96,344Gross
      Realized Losses
            
            $
            -
            
            
            $
            -Gross
      Realized Gains
            
            $
            28,392
            
            
            $
            29,615Available-for-sale
      securities:Sale
      Proceeds
            
            $
            -
            
            
            $
            32,001Gross
      Realized Losses
            
            $
            -
            
            
            $
            -Gross
      Realized Gains
            
            $
            -
            
            
            $
            3,021





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
            
            
            UnobservableMarch
      31,
            
            
            Markets
            
            
            Observable
      Inputs
            
            
            Inputs2010
            
            
            (Level
      1)
            
            
            (Level
      2)
            
            
            (Level
      3)Trading
      securities
            
            $
            64,140
            
            
            $
            64,140
            
            
            $
            -
            
            
            $
            -Available-for-sale
      securities
            
            
            136,400
            
            
            
            136,400
            
            
            
            -
            
            
            
            -Total
            
            $
            200,540
            
            
            $
            200,540
            
            
            $
            -
            
            
            $
            -





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 March 31, 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
THREE MONTHS ENDED MARCH 31, 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 FASB Interpretation No. 48, “Accounting for
Uncertainty in Income Taxes - an interpretation of FASB Statement No. 109” (“FIN
48”). FIN 48 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 FIN 48 did not have a material
impact on the company’s condensed consolidated financial position and results of
operations. At December 31, 2009, 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 FIN 48.











14


EAT AT
JOE’S LTD. AND SUBSIDIARIES


NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS


FOR THE
THREE MONTHS ENDED MARCH 31, 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 2007. 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 March 31, 2010 and December
31, 2009,  $1,027,496 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 March 31, 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.





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.





15


EAT AT
JOE’S LTD. AND SUBSIDIARIES


NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS


FOR THE
THREE MONTHS ENDED MARCH 31, 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.





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.





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.





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.





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.





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.





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.





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.





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.





16


EAT AT
JOE’S LTD. AND SUBSIDIARIES


NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS


FOR THE
THREE MONTHS ENDED MARCH 31, 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's
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
THREE MONTHS ENDED MARCH 31, 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 16,556,291
      common shares at March 31, 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 March 31, 2010 and December 31,
2009, note receivable outstanding was $113,520 and $112,139 (including accrued
interest at 6.0% and 4.0%).





NOTE 10 – SUBSEQUENT
EVENTS





The Company adopted ASC 855, and has
evaluated all events occurring after March 31, 2010, the date of the most recent
balance sheet, for possible adjustment to the financial statements or
disclosures through May 17, 2010, which is the date on which the financial
statements were issued.  The Company has concluded that there are no
significant or material transactions to be reported for the period from April 1,
2010 to May 17, 2010.





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 three months ended March 31 2010, the Company had a net loss of $185,598,
composed of a loss from operations of $2,997 and net other loss of $182,601. For
the three months ended March 31, 2009, the Company had a net income of $51,136
composed of a loss from operations of $3,977 and net other income of $55,113.
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 three months ended March 31, 2010 and 2009, the Company had
total sales of approximately $282,000 and $311,000 respectively, for a decrease
of approximately $29,000. 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 the same 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 three months ended March 31, 2010 compared to the
three months ended March 31, 2009.




Depreciation
and amortization expense remained the same from 2009 to 2010, 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 March 31, 2010, the Company has a
working capital deficit of approximately $3,333,872. 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 three months ended
March 31, 2010 and 2009, the Company generated approximately $98,000 and $21,000
respectfully, in cash from investing activities from the purchase and sale of
marketable equity securities. As of March 31, 2010, the company owns marketable
securities valued at $200,540 with corresponding liabilities of 1,428,398 in the
form of related party payables of $8,784 and related party notes payable of
$1,419,615 (including interest accruing at 6%).


20


During the three months ended March 31,
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 March 31, 2010, approximately
$1,027,496 (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 three months ended March 31,
2010 and 2009, operating activities provided (used) approximately ($9,900) and
$2,300 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 March 31, 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 Document








31
            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:  May
      17, 2010
            By:
      /s/
      Joseph Fiore
            Joseph
      Fiore


C.E.O., C.F.O., Chairman, Secretary,
Director


(Principal Executive & Accounting
Officer)