SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2012

OR

[    ] TRANSITION REPORT UNDER SECTION 13 OF 15(d) OF THE EXCHANGE ACT OF 1934

From the transition period from ___________ to ____________.

Commission File Number 333-138111

GLOBAL CONDIMENTS, INC.

(Exact name of small business issuer as specified in its charter)

Nevada	27-1458154
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

415 East Calder Way, State College, Pennsylvania 16801

 (Address of principal executive offices)

  (814) 237-0134

(Issuer's telephone number)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (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 [     ].

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 [  ]	Smaller Reporting Company [X]

Indicate by a check mark whether the company is a shell company (as defined by Rule 12b-2 of the Exchange Act:  Yes [    ]   No [ X ].

As of November 14, 2012, there were 7,581,736 shares of Common Stock of the issuer outstanding.

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TABLE OF CONTENTS

	PART I FINANCIAL STATEMENTS
Item 1	Consolidated Financial Statements	3
Item 2	Management’s Discussion and Analysis or Plan of Operation	8
	PART II OTHER INFORMATION
Item 1	Legal Proceedings	11
Item 2	Changes in Securities	11
Item 3	Default upon Senior Securities	11
Item 4	Submission of Matters to a Vote of Security Holders	11
Item 5	Other Information	11
Item 6	Exhibits	11

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GLOBAL CONDIMENTS, INC.
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 2012 AND DECEMBER 31, 2011
ASSETS
		2012			2011
Current Assets		(Unaudited)
Cash	$	106,385		$	169,371
Accounts Receivable, net		3,629			8,119
Other Current Assets		7,549			—
Total Current Assets		117,563			177,490
Fixed Assets, net		1,014			2,841
TOTAL ASSETS	$	118,577		$	180,331
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts Payable – Related Party	$	1,428		$	7,270
Accounts Payable – Trade		3,049			2,726
Total Current Liabilities		4,477			9,996
TOTAL LIABILITIES		4,477			9,996
Commitments
Stockholders’ Equity
Preferred Stock, $0.001 par value, 20,000,000 authorized,
-0-  issued and outstanding at September 30, 2012 and December 31, 2011		—			—
Common Stock, $0.001 par value, 50,000,000 authorized,
7,581,736 issued and outstanding at September 30, 2012 and December 31, 2011		7,582			7,582
Additional Paid-in-capital		336,320			336,320
Accumulated Deficit		(229,802	)		(173,567	)
Total Stockholders’ Equity		114,100			170,335
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	118,577		$	180,331
See accompanying summary of accounting policies and notes to consolidated financial statements.

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GLOBAL CONDIMENTS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011

(Unaudited)

	Three Months Ended						Nine months Ended
	September 30, 2012			September 30, 2011			September 30, 2012			September 30, 2011
Revenue	$	17,430		$	33,639		$	67,089		$	88,480
Cost of Revenues		13,905			22,224			52,405			66,659
Gross Profit		3,525			11,415			14,684			21,821
Operating Expenses:
Depreciation and Amortization		608			609			1,826			1,826
Selling and Advertising Expenses		491			14,131			3,101			38,136
General and Administrative		13,627			17,590			66,293			67,172
Total Operating Expenses		14,726			32,330			71,220			107,134
Operating Loss		(11,201	)		(20,915	)		(56,536	)		(85,313	)
Other Income
Interest Income		53			95			301			346
Total Other Income		53			95			301			346
Net Loss	$	(11,148	)	$	(20,820	)	$	(56,235	)	$	(84,967	)
Basic and Diluted Loss per share	$	(0.00	)	$	(0.00	)	$	(0.01	)	$	(0.01	)
Weighted Average Shares Outstanding:
Basic and Diluted		7,581,736			7,431,736			7,581,736			7,431,736

See accompanying summary of accounting policies and notes to consolidated financial statements.

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GLOBAL CONDIMENTS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012 and 2011 (Unaudited)
		2012			2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss	$	(56,235	)	$	(84,967	)
Adjustments to reconcile net loss to net cash
used by operating activities:
Depreciation Expense		1,826			1,826
Changes in operating assets and liabilities:
Accounts Receivable, net		4,490			11,132
Other Current Assets		(7,549	)		2,748
Inventory		—			(256	)
Accounts Payable – Related Party		(5,842	)		1,437
Accounts Payable – Trade		324			(23,895	)
NET CASH USED IN OPERATING ACTIVITIES		(62,986	)		(91,975	)
NET CHANGE IN CASH AND CASH EQUIVALENTS		(62,986	)		(91,975	)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		169,371			267,069
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	106,385		$	175,094
SUPPLEMENTAL DISCLOSURES
Cash Paid During the Period for Interest Expense	$	—		$	—
Cash Paid During the Period for Taxes	$	—		$	—
See accompanying summary of accounting policies and notes to consolidated financial statements.

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GLOBAL CONDIMENTS, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2012

(Unaudited)

NOTE 1 – NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES

Nature of Activities, History and Organization:

Global Condiments, Inc. (The “Company” or "GLOBAL") operates as an internet wholesaler and retailer of mustard, salsa and other food products.  The Company is located in State College, Pennsylvania and was incorporated on September 17, 2009 under the laws of the State of Nevada.

Global Condiments, Inc., is the parent company of Herlocher Foods Online, L.L.C., (“HFO”), a company incorporated under the laws of the State of Pennsylvania. HFO was established on March 2, 2007 and for the past two and a half years has been operating from their offices in State College, PA.

GLOBAL was formed in order to acquire 100% of the outstanding membership interests of HFO.  On September 17, 2009, GLOBAL issued 7,000,000 shares of common stock in exchange for a 100% equity interest in HFO.  As a result of the share exchange, HFO became the wholly owned subsidiary of GLOBAL,  and the former members of HFO owned a majority of the voting stock of GLOBAL.  The transaction was regarded as a reverse merger whereby HFO was considered to be the accounting acquirer as its members retained control of GLOBAL after the exchange, although GLOBAL is the legal parent company.  The share exchange was treated as a recapitalization of GLOBAL.  As such, HFO (and its historical financial statements) is the continuing entity for financial reporting purposes. The financial statements have been prepared as if HFO had always been the reporting company and, on the share exchange date, changed its name and reorganized its capital stock.

 Basis of Presentation and Consolidation:

The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States and applicable Securities and Exchange Commission (“SEC”) regulations for interim financial information. These consolidated financial statements are unaudited and, in the opinion of management, include all adjustments (consisting of normal recurring accruals) necessary to make the consolidated financial statements not misleading, and to present fairly the balance sheets, statements of operations and statements of cash flows for the periods presented in accordance with accounting principles generally accepted in the United States. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to SEC rules and regulations. It is presumed that users of this interim consolidated financial information have read or have access to the audited consolidated financial statements and footnote disclosure for the preceding fiscal year. Operating results for the interim periods presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2012. Notes to the consolidated financial statements which would substantially duplicate the disclosure contained in the audited consolidated financial statements for the most recent fiscal year ended December 31, 2011 as reported in form 10-K have been omitted.

These financial statements have been prepared on a going concern basis which assumes the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The Company anticipates future losses in the development of its business raising substantial doubt about the Company’s ability to continue as a going concern.

Recently Issued Accounting Pronouncements:

The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position or cash flow.  

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GLOBAL CONDIMENTS, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2012

(Unaudited)

NOTE 2 – EQUITY

The Company is authorized to issue 20,000,000 preferred shares at a par value of $0.001 per share. These shares have full voting rights.  At September 30, 2012 and December 31, 2011, there were zero shares issued and outstanding.

The Company is authorized to issue 50,000,000 common shares at a par value of $0.001 per share. These shares have full voting rights.  At September 30, 2012 and December 31, 2011, there were 7,581,736 shares issued and outstanding.

NOTE 3 – RELATED PARTY TRANSACTIONS

Under a contract with the Company beginning January 1, 2008, Herlocher Foods, Inc. provides general office space and administrative support at 2-6% of gross sales.  For the nine months ended September 30, 2012 and 2011 the amounts charged were $2,013 and $2,654, respectively.

The Company currently purchases all of their products from Herlocher Foods, Inc.   In the nine months ended September 30, 2012 and 2011 the amounts purchased were $53,573 and $57,030, respectively. The Company does not have a written supplier / distributor agreement with Herlocher Foods, Inc., nor is the Company an exclusive distributor.

On September 30, 2009 the Company signed a contract with Herlocher Foods, Inc. to provide management services at a cost of up to $5,000 per month, depending on activity, beginning October 1, 2009.  This agreement can be cancelled by either party with a 30 day written notice.  Total management services expenses for the nine months ended September 30, 2012 and 2011 were $0 and $0.

NOTE 4 – MAJOR CUSTOMERS

The Company has over 150 customers and has one that is greater than 10% of the total revenue. For the nine months ended September 30, 2012, the Company sold $41,152 to Giant Eagle Grocery Stores, or 61% of the Company’s revenues. For the nine months ended September 30, 2011, the comparable sales to Giant Eagle were $40,689 or 46% of the Company’s revenues.

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Item 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS

General

Over the past few years sales via the internet have increased year-over-year and GLOBAL is no exception.  The Company’s sales have decreased in 2012 by 24% to $67,089 for the nine months ended September 30, 2012.  The Company is looking for new ways to market its products in the face of these reduced revenues.

Employees

We currently employ one employee, the President, who is not compensated.

RESULTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2012 and 2011

Our quarter ended on September 30, 2012.  Any reference to the end of the fiscal quarter refers to the end of the third quarter for the period discussed herein.

REVENUE.  Revenue for the three months ended September 30, 2012 was $17,430 compared to $33,639 for the three month period ended September 30, 2011.  

The decrease in revenue in the three month period ended September 30, 2012 of $16,209 is due to decreased sales to Giant Eagle of about $6,500 and lower volume to the next two largest customers of $3,300. The volume decrease was 36% and the revenue decrease was 48%. Due to the mustard product mix the AUP (average unit price) was lower.  Mustard volume sales were down 31% and revenue 43%.  Salsa volume sales were down 89% and revenue 90%.  Mustard accounted for 98% of the sales for the three months ended September 30, 2012.

Revenue for the nine months ended September 30, 2012 was $67,089 compared to $88,480 for the nine month period ended September 30, 2011.  

The decrease in revenue in the nine month period ended September 30, 2012 of $21,391 is due to lower general internet sales compared to 2011 when we engaged in an aggressive marketing campaign as well as lower sales to our largest customers. The volume decrease was 17% and the revenue decrease was 24% as the period was impacted by not attending trade shows (as we did in 2011). Due to the mustard product mix the AUP (average unit price) was lower.  Mustard volume sales were down 14% and revenue 21%.  Salsa volume sales were down 75% and revenue 71%.  Mustard accounted for 98% of the sales for the nine months ended September 30, 2012.

GROSS PROFIT.  Gross profit for the three months ended September 30, 2012 was $3,525 compared to $11,415 for the three months ended September 30, 2011.   Margins deteriorated in the three months ended September 30, 2012 versus 2011 from 34% to 20%.  The decrease is attributable to unfavorable product mix and the decrease in revenues.

Gross profit for the nine months ended September 30, 2012 was $14,684 compared to $21,821 for the nine months ended September 30, 2011.   Margins deteriorated in the nine months ended September 30, 2012 versus 2011 from 25% to 22%.  The decrease in gross margin percentage is attributable to unfavorable product mix.

OPERATING EXPENSES. Total operating expenses for the three months ended September 30, 2012 were $14,726 compared to $32,330 for the three months ended September 30, 2011. Depreciation expense included in the operating expense was $608 and $609 for the three months ended September 30, 2012 and 2011, respectively.

The decrease of approximately $17,600 in the three months ended September 30, 2012 is attributed to lower marketing fees of $14,000 and auto fees of about $3,000.

Total operating expenses for the nine months ended September 30, 2012 were $71,220 compared to $107,134 for the nine months ended September 30, 2011. Depreciation expense included in the operating expense was $1,826 and $1,826 for the nine months ended September 30, 2012 and 2011, respectively.

The decrease of approximately $35,900 in the nine months ended September 30, 2012 is attributed to decreased advertising and marketing expenses and trade show costs of $34,000, $6,000 decrease in auto and travel expense, facilities and repairs of $9,000 and $6,000 decrease in general office expenses; this was partially offset by increased professional fees of $19,000.

NET LOSS. Net loss for the three months ended September 30, 2012 was $11,148 compared to a loss of $20,820 for the three month period ended September 30, 2011.   Net loss for the nine months ended September 30, 2012 was $56,235 compared to a loss of $84,967 for the nine month period ended September 30, 2011.

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LIQUIDITY AND CAPITAL RESOURCES. Global Condiments filed on Form S-1/A, a registration statement with the U.S. Securities & Exchange Commission in order to raise funds to develop their business. The registration statement became effective in July 2010, the offering closed on October 12, 2010 and the Company raised $323,802 by selling 431,736 shares.

Trends, events or uncertainties impact on liquidity:

The Company expects revenue trends to improve toward the holiday and sports seasons.  Off-peak periods will be financed, if needed, through shareholder advances.  

In addition to the preceding, the Company plans for liquidity needs on a short term and long term basis as follows:

Short Term Liquidity:

We believe our cash balance affords us adequate short term liquidity. We anticipate we will need additional capital to continue our business operations. We have historically financed our operations through equity financing. We do not have any commitments for equity funding at this time. As such there is no assurance that we can raise additional capital from external sources, the failure of which could cause us to curtail operations.

Long Term Liquidity:

The long term liquidity needs of the Company are projected to be met primarily through the cash flow provided by operations.

Capital Resources

At the time of this filing the Company has no capital commitments.  

Trends, events or uncertainties

The Company has not been in existence long enough and has limited sales data to determine whether sales fluctuations are truly a result of trends.  The Company believes that sales will trend with promotions that typically follow the holiday and sports seasons and this will be monitored over the next few quarters.  There are no other known events or uncertainties.

Material Changes in Financial Condition

WORKING CAPITAL: Working Capital for the nine months ended September 30, 2012 decreased by $54,408 to $113,086, versus the year ended December 31, 2011.  This decrease is primarily due the reduction of cash of approximately $63,000 and partially offset by an increase in other assets of approximately $7,500.

	Working Capital		Change from prior period
September 30, 2012	$	113,086	$	(54,408	)
December 31, 2011	$	167,494	$	(93,000	)
December 31, 2010	$	260,494	$	270,472

STOCKHOLDER’S EQUITY: Stockholder’s Equity for the nine months ended September 30, 2012 decreased by $56,235 to $114,100 due to the net loss for the nine month period.  Please see the section on ‘Results for the Quarter Ended September 30, 2012’ that discusses in more detail the reasons for the loss.

GOING CONCERN: The Company has limited operations and has working capital of $113,086 and an accumulated deficit of $229,802 as of September 30, 2012. Because of this accumulated deficit and limited operations, the Company may require additional working capital to survive. The Company intends to raise additional working capital either through private placements or bank loans or loans from management if there is need for liquidity to alleviate the substantial doubt to continuing as a going concern. There are no assurances that the Company will be able to do any of these. No assurance can be given that additional financing will be available, or if available, will be on terms acceptable to the Company.  If adequate working capital cannot be generated, the Company may not be able to continue its operations. These factors raise substantial doubt about the Company’s ability to continue as a going concern.

Management Advisors

Yorkdale Capital, LLC advises and assists the President with many aspects related to the regulatory filings including assistance with the consolidation of financial statements for the quarterly reviews and year-end audit.  Yorkdale Capital, LLC or its principals are also shareholders.

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Item 3:  Quantitative and Qualitative Disclosures About Market Risk

Not applicable.

Item 4.  Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of September 30, 2012.  This evaluation was accomplished under the supervision and with the participation of our chief executive officer / principal executive officer, and chief financial officer / principal financial officer who concluded that our disclosure controls and procedures are not effective.

Based upon an evaluation conducted for the period ended September 30, 2012, our Chief Executive and Chief Financial Officer as of September 30, 2012 and as of the date of this Report, has concluded that as of the end of the periods covered by this report, we have identified the following material weakness of our internal controls:

• Reliance upon third party financial reporting consultants for review of critical accounting areas and disclosures and material non-standard transaction.

• Lack of sufficient accounting staff which results in a lack of segregation of duties necessary for a good system of internal control.

In order to remedy our existing internal control deficiencies, as our finances allow, we will hire additional accounting staff.

Changes in Internal Controls over Financial Reporting

There were no changes in our internal controls over financial reporting that occurred during the period covered by this report on Form 10-Q that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II

Items No. 1, 2, 3, 4, 5 - Not Applicable.

Item No. 6 - Exhibits

(a)  None

(b)   Exhibits

Exhibit Number		Name of Exhibit
31.1	Certification of Chief Executive Officer, pursuant to Rule 13a-14(a) of the Exchange Act, as enacted by Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Chief Financial Officer, pursuant to Rule 13a-14(a) of the Exchange Act, as enacted by Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Chief Executive Officer and Chief Financial Officer, pursuant to 18 United States Code Section 1350, as enacted by Section 906 of the Sarbanes-Oxley Act of 2002.

SIGNATURES

In accordance with 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, thereunto duly authorized.

Global Condiments, Inc.

By /s/ Charles C. Herlocher

Charles C. Herlocher, Chief Executive Officer

and  Chief Financial Officer

Date: November 14, 2012

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