Heartland, Inc - Preferred stock $0.001 par value 5,000,000 shares...

Heartland, Inc - Recent Material Event

Item 1. FINANCIAL STATEMENTS
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
ITEM 3. CONTROLS AND PROCEDURES
PART II. OTHER INFORMATION
ITEM 1. - LEGAL PROCEEDINGS
ITEM 2. - CHANGES IN SECURITIES AND USE OF PROCEEDS
ITEM 3. - DEFAULTS UPON SENIOR SECURITIES
ITEM 4. - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
ITEM 5. - OTHER INFORMATION
ITEM 6. - EXHIBITS
SIGNATURES

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

HEARTLAND, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET

SEPTEMBER 30, 2007 (UNAUDITED)

ASSETS

CURRENT ASSETS
Cash	$	263,363
Accounts receivable, net of allowance for doubtful accounts of $197,525		3,876,648
Cost and estimated earnings in excess of billings on uncompleted contracts		211,872
Inventory		1,104,485
Prepaid expenses and other		1,620
Total current assets		5,457,988

PROPERTY, PLANT AND EQUIPMENT, net		894,815

OTHER ASSETS		23,465

Total assets	$	6,376,268

The accompanying notes are an integral part of the unaudited consolidated financial statements.

HEARTLAND, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET

SEPTEMBER 30, 2007 (UNAUDITED)

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES
Accounts payable	$	1,931,500
Convertible promissory notes payable		53,450
Current portion of notes payable		41,203
Current portion of notes payable to related parties		88,835
Obligations to related parties		12,008
Accrued payroll and related taxes		528,694
Accrued interest		122,306
Accrued expenses		266,547
Billings in excess of costs and estimated earnings on uncompleted contracts		1,035,995
Total current liabilities		4,080,538

LONG-TERM OBLIGATIONS
Notes payable, less current portion		396,687
Notes payable to related parties, less current portion		421,579
Total long term liabilities		818,266

STOCKHOLDERS’ EQUITY
Preferred stock $0.001 par value 5,000,000 shares Authorized 2,330,000 shares issued and outstanding		2,330
Additional paid-in capital – preferred stock		703,607
Common stock, $0.001 par value 100,000,000 shares authorized; 36,237,105 shares issued and outstanding		36,237
Additional paid-in capital – common stock		16,058,914
Accumulated deficit		(14,923,785	)
Deferred compensation		(399,839	)
Total stockholders’ equity		1,477,464

Total Liabilities and Stockholders’ Equity	$	6,376,268

The accompanying notes are an integral part of the unaudited consolidated financial statements

HEARTLAND, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

	Three months ended September 30,						Nine months ended September 30,


REVENUE - SALES	$	3,168,965		$	2,619,088		$	9,656,306		$	7,671,149

COSTS AND EXPENSES
Cost of goods sold		2,920,674			2,276,285			8,613,137			6,387,341
Selling, general and administrative expenses		288,173			2,013,543			1,946,307			2,962,819
Depreciation and amortization		15,256			14,425			52,026			41,802
Total costs and expenses		3,224,103			4,304,253			10,611,470			9,391,962

NET OPERATING LOSS		(55,138	)		(1,685,165	)		(955,164	)		(1,720,813	)

OTHER INCOME (EXPENSE)
Other income		6,652			25,248			23,735			90,309
Loss on disposal of property, plant and equipment		--			--			(19,432	)		--
Interest expense		(12,587	)		(2,864	)		(104,583	)		(196,834	)
Total other income (expense)		(5,935	)		22,384			(100,280	)		(106,525	)