GOLDEN
VALLEY DEVELOPMENT, INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
Three
Months Ended March 31, 2008 and 2007
|
(unaudited)
|
|
|
Three
months ended
|
|
|
|
March
31,
|
|
|
|
2008
|
|
|
2007
|
|
|
|
|
|
|
|
|
CASH
FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
Net
Loss
|
|
$
|
(11,582
|
)
|
|
$
|
(2,608
|
)
|
Adjustments
to reconcile net loss
|
|
|
|
|
|
|
|
|
to
cash provided by (used in) operating activities:
|
|
|
|
|
|
|
|
|
Imputed
rent expense
|
|
|
1,164
|
|
|
|
1,164
|
|
Imputed
interest expense
|
|
|
-
|
|
|
|
1,226
|
|
Changes
in:
|
|
|
|
|
|
|
|
|
Accounts
Receivable
|
|
|
-
|
|
|
|
(19,372
|
)
|
Prepaid
and other current assets
|
|
|
(600
|
)
|
|
|
(600
|
)
|
Accrued
Expenses
|
|
|
624
|
|
|
|
21,220
|
|
Accounts
Payable
|
|
|
1,420
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
|
|
|
(8,974
|
)
|
|
|
1,030
|
|
|
|
|
|
|
|
|
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CASH
FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
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Proceeds
from note payable to related party
|
|
|
-
|
|
|
|
437,850
|
|
Payments
on note payable to related party
|
|
|
-
|
|
|
|
(497,850
|
)
|
|
|
|
|
|
|
|
|
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NET
CASH USED IN FINANCING ACTIVITIES
|
|
|
-
|
|
|
|
(60,000
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)
|
|
|
|
|
|
|
|
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NET
CHANGE IN CASH
|
|
|
(8,974
|
)
|
|
|
(58,970
|
)
|
Cash
balance, beginning of the period
|
|
|
13,200
|
|
|
|
89,381
|
|
Cash
balance, end of the period
|
|
$
|
4,226
|
|
|
$
|
30,411
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Supplemental
Disclosures:
|
|
|
|
|
|
|
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Taxes
paid
|
|
$
|
-
|
|
|
$
|
-
|
|
Interest
paid
|
|
|
-
|
|
|
|
-
|
|
GOLDEN
VALLEY DEVELOPMENT, INC.
Notes to
Consolidated Financial Statements
NOTE 1 -
BASIS OF PRESENTATION
The
accompanying unaudited interim consolidated financial statements
of Golden
Valley Development, Inc. (“GVD”), have been
prepared
in accordance with accounting principles generally
accepted
in the United States of America and the rules of the
Securities
and Exchange Commission, and should be read
in
conjunction with the audited financial statements and notes
thereto
contained in GVD's 2007 annual report on Form 10-KSB. In the opinion of
management, all adjustments, consisting of normal recurring
adjustments,
necessary for a fair presentation of financial
position
and the results of operations for the interim periods
presented
have been reflected herein. The results of operations
for
interim periods are not necessarily indicative of the results
to be
expected for the full year. Notes to the financial
statements
that would substantially duplicate the disclosure
contained
in the audited financial statements for fiscal year
2007, as
reported in the Form 10-KSB, have been omitted.
Note 2 -
GOING CONCERN
As shown
in the accompanying consolidated financial statements, GVD had an accumulated
deficit as of March 31, 2008 and no revenues for the three months ended March
31, 2008. These conditions raise substantial doubt as to GVD’s ability to
continue as a going concern. Management is trying to raise additional capital
through sales of stock. The financial statements do not include any adjustments
that might be necessary if GVD is unable to continue as a going
concern.
Item
2. Managements Discussion and Analysis
Liquidity and Cash
Requirements
Adavco
Inc., a related party, loaned us $50,000 in October of 2004 to satisfy cash
requirements, including accounting and auditing costs, for our first 48 months –
through October of 2008. In addition, Adavco has provided temporary funding to
support certain broker transactions. Additional funding may be available to us
from Adavco; however, based on our current cash forecasts, we do not expect to
borrow additional funds, except as may be needed on a short-term basis to
support a broker transaction. Our projected cash requirements over the next
twelve months should not exceed $15,000. However, our cash requirements will
increase significantly if we begin any advertising campaigns, as discussed below
in our Marketing subsection. As of March 31, 2008, our cash on hand was
$4,226.
Results of
Operations
During
the quarter ended March 31, 2008, we completed no transactions. The decrease in
revenues is a result of our current clients not making any purchases during the
quarter. We will continue to pursue new clients so that we can have more stable
revenues in the future.
Industry Trends.
As
we discussed above, there is a growing trend in our industry which is of concern
to us. As farms grow and consolidate, they become better able to negotiate sales
directly with the buyers, since the farms now have the sufficient quantity to
satisfy most buyers.
Our
business model only works when there are still sufficient small, niche farmers
with which to work, and by “niche” farmers we mean those that produce a niche
crop such as alfalfa hay or grass hay, organic produce, and unusual or specialty
commodities. However, we are able to work with larger farms and larger buyers on
occasion, because we still retain the advantage of quality control. We send out
a field inspector to make sure all the produce loaded onto the trucks is high
quality, which is something the buyers do not do themselves, nor do the farmers,
nor do our competitors.
Description of
Property
.
Our
principal office is in a dedicated office building at 1200 Truxton Ave., Suite
130 in Bakersfield, California.
We own no
real estate nor other property, nor do we invest in real estate.
Plant and Significant
Equipment
We do not expect any purchase of any plant or significant
equipment assets in the next 12 months.
Number of Employees.
Our current number of employees is zero. We do not expect a
significant number in the change of employees in the next 12
months.
Security Ownership of
Certain Beneficial Owners and Management
.
We have
only one class of securities – our Common Stock.
The
following represents the security ownership of the only person who owns more
than five percent of our outstanding Common Stock:
Annette
Davis 38,054,331
shares 95.1%
of class
Financing Plans
We
will continue to rely on loans from Adavco Inc. to complete brokerage
transactions. At this time there has been nothing signed by Adavco Inc.
guaranteeing that such funds will be made available.
OFF
BALANCE SHEET ARRANGEMENTS
We have
no off balance sheet arrangements.
Item.3
Quantitative and Qualitative Disclosures About Market Risk
None.
Item 4.
Controls and
Procedures.
It is
management’s responsibility for establishing and maintaining adequate internal
control over financial reporting for Golden Valley Development. It is the
President’s ultimate responsibility to ensure the Company maintains disclosure
controls and procedures designed to provide reasonable assurance that material
information, both financial and non-financial, and other information required
under the securities laws to be disclosed is identified and communicated to
senior management on a timely basis. The Company’s disclosure controls and
procedures include mandatory communication of material events, management review
of monthly, quarterly and annual results and an established system of internal
controls.
As of
March 31 2008, management of the Company, including the President, conducted an
evaluation of the effectiveness of the design and operation of the Company’s
disclosure controls and procedures with respect to the information generated for
use in this Quarterly Report. Based upon and as of the date of that evaluation,
the President and Treasurer have concluded the Company’s disclosure controls
were effective to provide reasonable assurance that information required to be
disclosed in the reports that the Company files or submits under the relevant
securities laws is recorded, processed, summarized and reported within the time
periods specified in the Commission’s rules and forms. There have been no
changes in the Company’s internal control over financial reporting during the
period ended March 31, 2008, that have materially affected, or are reasonably
likely to materially affect, the Company’s internal control over financial
reporting.
It should
be noted that while the Company’s management, including the President, believes
the Company’s disclosure controls and procedures provide a reasonable level of
assurance, they do not expect that the Company’s disclosure controls and
procedures or internal control over financial reporting will prevent all errors
and all fraud. A control system, no matter how well conceived or operated, can
provide only reasonable, not absolute, assurance the objectives of the control
system are met. Further, the design of a control system must reflect the fact
there are resource constraints, and the benefits of controls must be considered
relative to their costs. Because of the inherent limitations in all control
systems, no evaluation of controls can provide absolute assurance all control
issues and instances of fraud, if any, have been detected. These inherent
limitations include the realities that judgments in decision-making can be
faulty, and breakdowns can occur because of simple error or mistake.
Additionally, controls can be circumvented by the individual acts of some
persons, by collusion of two or more people, or by management override of the
controls. The design of any system of controls is based in part upon certain
assumptions about the likelihood of future events, and there can be no assurance
any design will succeed in achieving its stated goals under all potential future
conditions; over time, controls may become inadequate because of changes in
conditions, or the degree of compliance with the policies or procedures may
deteriorate. Because of the inherent limitations in a cost-effective control
system, misstatements due to errors or fraud may occur and not be
detected.
This
quarterly report does not include an attestation report of our registered public
accounting firm regarding internal control over financial reporting.
Management’s report was not subject to attestation by our registered public
accounting firm pursuant to temporary rules of the SEC that permit us to
provide only management’s report in this quarterly report
.
Other
Information
Item
4. Exhibits
Index of Exhibits
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.
|
Golden
Valley Development, Inc.
(Registrant)
|
|
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Date
May 14, 2008
|
By:
|
/s/ Annette
Davis
|
|
|
|
Annette
Davis
|
|
|
|
Director,
Treasurer and Principal
Financial
Officer
|
|
|
|
|
|
|
|
|
|
|
|
|
Date
May 14, 2008
|
By:
|
/s/ H.
Arthur Davis
|
|
|
|
H.
Arthur Davis
|
|
|
|
President,
Secretary and Principal Executive Officer
|
|
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|
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|