INDEX Page Number ------ PART I. ITEM 1. Financial Statements (unaudited)................................3 Balance Sheets March 31, 2008 and September 30, 2007........................4 Statements of Operations For the three and six months ended March 31, 2008 and 2007 and the period June 10, 1998 to March 31, 2008...............................................5 Statements of Cash Flows For the six months ended March 31, 2008 and 2007 and the period June 10, 1998 to March 31, 2008..............6 Notes to Financial Statements...................................7 ITEM 2. Plan of Operations..............................................9 ITEM 3. Controls and Procedures.........................................9 PART II. ITEM 6. Exhibits and Reports on 8K.....................................10 Signatures ..............................................................10 2 PART I - FINANCIAL INFORMATION -------------------------------------------------------------------------------- ITEM 1. FINANCIAL STATEMENTS -------------------------------------------------------------------------------- The accompanying balance sheets of Yummies, Inc. ( development stage company) at March 31, 2008 and September 30, 2007, and the related statements of operations, and statements of cash flows, for the three and six months ended March 31, 2008 and 2007 and the period June 16, 1977 to March 31, 2008 have been prepared by the Company's management in conformity with accounting principles generally accepted in the United States of America. In the opinion of management, all adjustments considered necessary for a fair presentation of the results of operations and financial position have been included and all such adjustments are of a normal recurring nature. Operating results for the quarter ended March 31, 2008, are not necessarily indicative of the results that can be expected for the year ending September 30, 2008. 3 YUMMIES, INC. (A Development Stage Company) BALANCE SHEETS MARCH 31, 2008 AND SEPTEMBER 30, 2007 March 31, September 30, 2008 2007 -------------- -------------- Assets ------ Current Assets: Cash $ 5,230 $ 3,499 -------------- -------------- Total current assets 5,230 3,499 -------------- -------------- Total Assets $ 5,230 $ 3,499 ============== ============== Liabilities and Stockholders' Equity ------------------------------------ Current Liabilities: Accounts payable $ 3,142 $ 3,606 Interest payable 252 168 Interest payable, stockholders 613 307 Note payable 2,105 2,105 Notes payable, stockholders 11,000 6,000 -------------- -------------- Total current liabilities 17,112 12,186 -------------- -------------- Stockholders' Equity: Common stock, $.001 par value 50,000,000 shares authorized, 2,505,000 issued and outstanding 2,505 2,505 Additional paid-in capital 11,987 11,987 Deficit accumulated during the development stage (26,374) (23,179) -------------- -------------- Total Stockholders' Equity (11,882) (8,687) -------------- -------------- Total Liabilities and Stockholders' Equity $ 5,230 $ 3,499 ============== ============== The accompanying notes are an integral part of the financial statements. 4 YUMMIES, INC. (A Development Stage Company) STATEMENTS OF OPERATIONS For the Period For the For the For the For the June 10, Three Three Six Six 1998 Months Months Months Months (Inception) Ended Ended Ended Ended Through March 31, March 31, March 31, March 31, March 31, 2008 2007 2008 2007 2008 ----------- --------- ---------- ---------- ---------- Revenues $ -- $ -- $ -- $ -- $ -- Expenses, general and administrative 629 1,055 2,805 2,892 25,509 ----------- --------- ---------- ---------- ---------- Operating loss (629) (1,055) (2,805) (2,892) (25,509) Other income (expense) Interest expense (228) (150) (390) (150) (865) ----------- --------- ---------- ---------- ---------- Net loss $ (857) $ (1,205) $ (3,195) $ (3,042)$ (26,374) =========== ========= ========== ========== =========== Net loss per share $ -- $ -- $ -- $ -- $ (.01) =========== ========= ========== ========== =========== The accompanying notes are an integral part of the financial statements. 5 YUMMIES, INC. (A Development Stage Company) STATEMENTS OF CASH FLOWS For the period For the For the June 10, 1998 Six Months Six Months (Inception) Ended Ended Through March 31, March 31, March 31, 2008 2007 2008 ------------ ------------ ---------------- Cash flows from operating activities: Net loss $ (3,195) $ (3,042) $ (26,374) Adjustment to reconcile net loss to cash provided by operating activities: Increase (decrease) in accounts payable and interest payable (74) (1,908) 4,007 Expenses paid directly by shareholder -- -- 2,463 Accounts payable converted into note payable -- 2,105 2,105 ------------ ------------ ---------------- Net cash used by operating activities (3,269) (2,845) (17,799) ------------ ------------ ---------------- Cash flows from investing activities -- -- -- ------------ ------------ ---------------- Cash flows from financing activities: Issuance of common stock -- -- 12,029 Proceeds from note payable 5,000 6,000 11,000 ------------ ------------ ---------------- Net cash provided by financing activities 5,000 6,000 23,029 ------------ ------------ ---------------- Net increase (decrease) in cash 1,731 3,155 5,230 Cash, beginning of period 3,499 981 - ------------ ------------ ---------------- Cash, end of period $ 5,230 $ 4,136 $ 5,230 ============ ============ ================ Interest paid $ -- $ -- $ -- ============ ============ ================ Income taxes paid $ -- $ -- $ -- ============ ============ ================ The accompanying notes are an integral part of the financial statements. 6 YUMMIES, INC. (A Development Stage Company) NOTES TO FINANCIAL STATEMENTS 1. Summary of Business and Significant Accounting Policies ------------------------------------------------------- a. Summary of Business ------------------- The Company was incorporated under the laws of the State of Nevada on June 10, 1998. The Company is seeking business opportunities. The Company has not commenced principal operations and is considered a "Development Stage Company" as defined by the Financial Accounting Standards Board Statement No. 7. b. Cash Flows ---------- For purposes of the statement of cash flows, the Company considers all highly liquid investments purchased with a maturity of three months or less to be cash or cash equivalents. c. Net Loss Per Share ------------------ The net loss per share calculation is based on the weighted average number of shares outstanding during the period. d. Use of Estimates ---------------- The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. 2. Note Payable ------------ On January 10, 2007, the Company converted $2,105 of accounts payable from its transfer agent into a one-year note payable. The note balance is $2,105 at March 31, 2008, bears interest at 8% and both principal and accrued interest are convertible into common stock at $.025 per share. 3. Notes Payable, Stockholders --------------------------- At March 31, 2008 and September 30, 2007 loans from stockholders totaled $11,000 and $6,000 respectively. The notes mature in one year and earn interest at 8%. The note principal and accrued interest is convertible into common stock at $.025 per share. 4. Issuance of Common Stock ------------------------ On August 13, 1998, the Company issued 1,000,000 shares of its $.001 par value common stock for an aggregate price of $1,000. In February 1999, pursuant to Rule 504 of Regulation D of the Securities and Exchange Commission, the Company sold 17,500 shares of its common stock at a price of $1.00 per share. Costs of $6,471 associated directly with the offering were offset against the proceeds. 7 Notes to Financial Statements - Continued ----------------------------------------- On December 15, 2000, an officer and stockholder of the Company returned 600,000 shares of common stock to authorized but unissued shares. On February 5, 2001, the Company authorized a 6 for 1 forward split. The stock split has been accounted for retroactively in the accompanying financial statements. 5. Warrants and Options -------------------- No options or warrants are outstanding to acquire the Company's common stock. 6. Income Taxes ------------ The Company has had no taxable income under Federal or State tax laws. The Company has loss carryforwards totaling $23,179 that may be offset against future federal income taxes. If not used, the carryforwards will expire between 2022 and 2027. Due to the Company being in the development stage and incurring net operating losses, a valuation allowance has been provided to reduce the deferred tax assets from the net operating losses to zero. Therefore, there are no tax benefits recognized in the accompanying statement of operations. 7. Going Concern ------------- As shown in the accompanying financial statements, the Company incurred a net loss of $3,195 during the six months ended March 31, 2008 and accumulated losses of $26,374 since inception at June 10, 1998. The Company's current liabilities exceed its current assets by $11,882 at March 31, 2008. These factors create an uncertainty as to the Company's ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent upon the success of raising additional capital through the issuance of common stock and the ability to generate sufficient operating revenue. The financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern. -------------------------------------------------------------------------------- ITEM 2. PLAN OF OPERATIONS -------------------------------------------------------------------------------- The Company's management is seeking and intends to acquire interests in various business opportunities which, in the opinion of management, will provide a profit to the Company but it does not have the working capital to be successful in this effort. 8 Continuation of the Company as a going concern is dependent upon obtaining the working capital necessary for its planned activity. The management of the Company has developed a strategy, which they believe can obtain the needed working capital through additional equity funding and long term debt which will enable the Company to continue operations for the coming year. Liquidity and Capital Resources ------------------------------- The Company will need additional working capital to finance its planned activity. In the near term management believes that its ongoing expenses can be funded by loans from either management or major shareholders. However, no commitments for any such loans have been made. Results of Operations --------------------- The Company has had no operations during this reporting period. -------------------------------------------------------------------------------- ITEM 3. CONTROLS AND PROCEDURES -------------------------------------------------------------------------------- Our Chief Executive Officer/Chief Financial Officer, as of the date of the end of the period covered by this Form 10-KSB, conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as required by Exchange Act Rule 13a-15. In making this assessment, our Chief Executive Officer/Chief Financial Officer used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control -- Integrated Framework. Based on that evaluation, our Chief Executive Officer/ Chief Financial Officer concluded that our disclosure controls and procedures were effective to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by the SEC's rules and forms. In addition, he has concluded that these controls and procedures are also effective to ensure that the information required to be disclosed in the reports that we file or submit under the Exchange Act is accumulated and communicated to management, including the Chief Executive Officer, to allow timely decisions regarding required disclosure. Changes in Internal Controls There were no significant changes in our internal controls over financial reporting that occurred during the quarter ended March 31, 2008 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Limitations on the Effectiveness of Controls We believe that a control system, no matter how well designed and operated, cannot provide absolute assurance that the objectives of the control system are met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected. However, we believe that our controls and procedures are designed to provide reasonable assurance that the objectives of the controls and procedures are met and the Chief Executive Officer/Chief Financial Officer has concluded that our disclosure controls and procedures are effective at that reasonable assurance level. 9 PART 2 - OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits Exhibit 31.1 Rule 13a-14(a)/15d-14(a) Certification. Exhibit 32.1 Certification by the Chief Executive Officer/Acting Chief Financial Officer Relating to a Periodic Report Containing Financial Statements.* (b) Reports on Form 8-K. There were no reports filed on Form 8-K during the period covered by this report. * The Exhibit attached to this Form 10-Q shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to liability under that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing. -------------------------------------------------------------------------------- SIGNATURES -------------------------------------------------------------------------------- Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned there unto duly authorized. Yummies, Inc. [Registrant] /s/ Dianne Hatton-Ward ---------------------- President & Treasurer May 12, 2008 10 -------------------------------------------------------------------------------- </TEXT> </DOCUMENT>