- Quarterly Report (10-Q)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2009

o TRANSITION REPORT UNDER SECTION 13 OF 15(d) OF THE EXCHANGE ACT

For the transition period from ________to ____________

Commission file number 0001345294

GOLDEN VALLEY DEVELOPMENT, INC.

a Nevada corporation

1200 Truxtun Avenue #130

Bakersfield, CA 93301

(661) 327-0067

I.R.S. Employer I.D. # 84-1658720

Check whether the issuer (1) filed all reports required to be filed by section 13 or 15(d) of the Exchange Act during the past 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 x No o

Number of shares of common stock of Golden Valley Development Inc. outstanding as of May 12, 2010: 72,400,000

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

Transitional Small Business Disclosure Format (Check One): Yes o No x

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PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

GOLDEN VALLEY DEVELOPMENT, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)




	March 31, 2010			December 31, 2009
ASSETS

Cash	$	4,999		$	4,060

Total Assets	$	4,999		$	4,060


LIABILITIES AND STOCKHOLDERS' DEFICIT

Current Liabilities
Accounts Payable	$	185		$	3,567
Accrued Interest		8,435			7,436
Total Current Liabilities		8,620			11,003

Long Term Liabilities
Note Payable to Related Party		82,000			77,000
Total Long Term Liabilities		82,000			77,000

Total Liabilities		90,620			88,003

Stockholder's Deficit
Common Stock; $.001 par value;75,000,000 shares authorized
72,400,000 shares issued and outstanding		72,400			72,400
Additional paid-in-capital		121,308			120,144
Accumulated deficit		(279,329	)		(276,487	)
Total Stockholders' Deficit		(85,621	)		(83,943	)

Total Liabilities and Stockholders' Deficit	$	4,999		$	4,060

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

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GOLDEN VALLEY DEVELOPMENT, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended March 31, 2010 and 2009
(unaudited)

	Three Months
		2010			2009

Revenue	$	-		$	240

Operating Expenses
General & Administrative		1,843			5,524
Interest Expense		999			762
Total Operating Expenses		2,842			6,286


Net Loss	$	(2,842	)	$	(6,046	)

Basic and diluted income (loss) per common share	$	(0.00	)	$	(0.00	)


Basic weighted average common
shares outstanding		72,400,000			42,400,000

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

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GOLDEN VALLEY DEVELOPMENT, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended March 31, 2010 and 2009
(unaudited)

	Three months ended
	March 31,
		2010			2009

CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss	$	(2,842	)	$	(6,046	)
Adjustments to reconcile net loss
to cash used in operating activities:
Imputed rent expense		1,164			1,164
Changes in:
Accounts Receivable		-			(8,240	)
Prepaid and other current assets		-			(600	)
Accrued Expenses		999			762
Accounts Payable		(3,382	)		1,008

NET CASH USED IN OPERATING ACTIVITIES		(4,061	)		(11,952	)

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from note payable to related party		5,000			13,000

NET CASH PROVIDED BY FINANCING ACTIVITIES		5,000			13,000

NET CHANGE IN CASH		939			1,048
Cash balance, beginning of the period		4,060			446
Cash balance, end of the period	$	4,999		$	1,494



Supplemental Disclosures:
Taxes paid	$	-		$	-
Interest paid	$	-		$	-

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

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GOLDEN VALLEY DEVELOPMENT, INC.

Notes to Unaudited 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 2009 annual report on Form 10-K. 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 2009, as reported in the Form 10-K, have been omitted.

Recently Issued Accounting Pronouncements

Effective this quarter, the Company implemented ASC No. 855, Subsequent Events (“ASC 855”). This standard establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued. The adoption of ASC 855 did not impact the Company’s financial position or results of operations. The Company evaluated all events or transactions that occurred after March 31, 2010 up through the date the Company issued these financial statements. During this period, the Company did not have any material recognizable subsequent events.

Note 2 - GOING CONCERN

As shown in the accompanying consolidated financial statements, GVD had an accumulated deficit as of March 31, 2010 and minimal revenues for the three months ended March 31, 2010. 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.

Note 3 – RELATED PARTY

Adavco, Inc. is owned by the President and sole Director of GVD. For the three months ended March 31, 2010 GVD participated in the following transactions:

On January 18, 2010, Adavco, Inc. provided a $5,000 loan to GVD due January 18, 2012 with a 5 percent interest rate. These notes are unsecured.

GVD operates out of Adavco, Inc office; therefore, rent is imputed based on the fair value of the office space. Imputed rent expense for the three months ended as of March 31, 2010 is $1,164

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Item 2. Management’s 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 May 2010. 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. As of March 31, 2010 our cash on hand was $4,999

Results of Operations

During the three months ended March 31 2010 the company had no revenue and operating expenses of $2,842. Operating expenses were comprised of $1,843 of general and administrative expenses and $999 in interest expense. During the comparable three month period ended March 31, 2009, the company had revenues of $240 and operating expenses totaling $6,286. Operating expenses last year were comprised of $5,524 of general and administrative expenses and $762 in interest expense. During these tough economic conditions management will continue to try and develop new contacts and create new transactions.

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.

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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 52% 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 2010, 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 Principle Executive Officer and Principle Financial Officer have concluded the Company’s disclosure controls and procedures 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 as and when required, accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely discussions regarding disclosure 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, 2010, 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.

ITEM 4T Controls and Procedures

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.

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Other Information

Item 4. Exhibits

Index of Exhibits

1.	31.1 Certification of Director pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

2.	31.2 Certification of President pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

3.	32.1 Certification of Director pursuant to 18 U.S.C. Section 1350, adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

4.	32.2 Certification of President pursuant to 18 U.S.C. Section 1350, adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

SIGNATURES

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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)

Date May 12, 2009	By:	/s/ H. Arthur Davis
		H. Arthur Davis
		President, Secretary, Principal Executive Officer, Principal Financial Officer, Chief Accounting Officer