-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Uav35b6zqkMBKwbEgeI6TZsfJdKBGnjmuh8Zw/VYK1daiXwCs0p0avW4DrC4FZdX rhqOJxJU63BkSqa3ReyWFw== 0001144204-09-059290.txt : 20091116 0001144204-09-059290.hdr.sgml : 20091116 20091116082831 ACCESSION NUMBER: 0001144204-09-059290 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 20090930 FILED AS OF DATE: 20091116 DATE AS OF CHANGE: 20091116 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BRAMPTON CREST INTERNATIONAL INC CENTRAL INDEX KEY: 0001321002 STANDARD INDUSTRIAL CLASSIFICATION: COMMUNICATION SERVICES, NEC [4899] IRS NUMBER: 300286164 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-51207 FILM NUMBER: 091183762 BUSINESS ADDRESS: STREET 1: 1210 WASHINGTON AVENUE STREET 2: SUITE 21 CITY: MAIMI BEACH STATE: FL ZIP: 33139 BUSINESS PHONE: 305-439-7416 MAIL ADDRESS: STREET 1: 1210 WASHINGTON AVENUE STREET 2: SUITE 21 CITY: MAIMI BEACH STATE: FL ZIP: 33139 10-Q 1 v165984_10q.htm Unassociated Document

 
 
U.S. 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, 2009

¨  Transition Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act
For the transition period from N/A to N/A
 

 
Commission File No. 333-137170
 

Brampton Crest International, Inc.
(Name of registrant as specified in its charter)

Nevada
30-0286164
State of Incorporation
IRS Employer Identification No.

4700 Biscayne Blvd., Suite 500, Miami, FL 33137
(Address of principal executive offices)

 (305) 722-4800
(Registrant’s telephone number)
Securities registered under Section 12(b) of the Exchange Act:
None
Securities registered under Section 12(g) of the Exchange Act:
Common Stock, $0.001 par value per share
(Title of Class)
 

Indicate by check mark whether the Registrant (1) has filed all reports required by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 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 definition of “accelerated filer and large accelerated filer” in Rule 12b–2 of the Exchange Act. (Check one):

Large accelerated filer ¨ Accelerated filer ¨ Non–Accelerated filer ¨ Smaller Reporting Company x

 
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ¨ No ¨
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b–2 of the Exchange Act). Yes ¨ No x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class
 
Outstanding at  November   16, 2009
 
Common stock, $0.001 par value
    149,054,881  

 

 

BRAMPTON CREST INTERNATIONAL INC. AND SUBSIDARIES
INDEX TO FORM 10-Q FILING

 
  
 
  
Page No
PART I - FINANCIAL INFORMATION
  
 
     
Item 1.
  
Condensed Consolidated Financial Statements (unaudited)
  
 
 
  
Balance Sheets as of September 30, 2009 and December 31, 2008
  
3
 
  
Statements of Operations for the three and nine months ended September 30, 2009 and 2008
  
4
 
  
Statement of Cash Flows for the nine months ended September 30, 2009 and 2008
  
5
 
  
Notes to Condensed Consolidated Financial Statements
  
6
Item 2.
  
Management Discussion & Analysis of Financial Condition and Results of Operations
  
18
Item 3
  
Quantitative and Qualitative Disclosures About Market Risk
  
25
Item 4.
  
Controls and Procedures
  
25
   
PART II - OTHER INFORMATION
  
 
     
Item 1.
  
Legal Proceedings
  
26
Item 1A
  
Risk Factors
  
27
Item 2.
  
Unregistered Sales of Equity Securities and Use of Proceeds
  
31
Item 3.
  
Defaults Upon Senior Securities
  
32
Item 4.
  
Submission of Matters to a Vote of Security Holders
  
32
Item 5
  
Other Information
  
32
Item 6.
  
Exhibits
  
32

CERTIFICATIONS

Exhibit 31 – Management certification
 
   
Exhibit 32 – Sarbanes-Oxley Act
 

 
2

 

PART I                                FINANCIAL INFORMATION

General

The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q.  Therefore, they do not include all information and footnotes necessary for a complete presentation of financial position, results of operations, cash flows, and stockholders' equity in conformity with generally accepted accounting principles in the United State of America.  Except as disclosed herein, there has been no material change in the information disclosed in the notes to the consolidated financial statements included in the Company's annual report on Form 10-K/A for the year ended December 31, 2008.  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.   The results of operations for the three and nine months ended September 30, 2009 are not necessarily indicative of the results that can be expected for the year ending December 31, 2009.


BRAMPTON CREST INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)


   
September 30,
   
December 31,
 
   
2009
   
2008
 
         
(As Restated)
 
ASSETS:
           
CURRENT ASSETS
           
Cash
  $ 2,542     $ 375,058  
Marketable securities
    181,500       1,025,000  
Accounts receivable - net
    10,174       31,147  
Total current assets
    194,216       1,431,205  
                 
PROPERTY AND EQUIPMENT, net
    346,245       355,220  
                 
Deposits and prepaid expenses
    6,227       6,294  
Trademark
    10,650       10,650  
TOTAL ASSETS
  $ 557,338     $ 1,803,369  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY:
               
                 
CURRENT LIABILITIES:
               
Accounts payable
  $ 220,711     $ 25,391  
Due to related party
    95,926       95,926  
Total current liabilities
    316,637       121,317  
                 
TOTAL LIABILITIES
    316,637       121,317  
                 
CONTINGENCIES AND COMMITMENTS
    -       -  
                 
STOCKHOLDERS' EQUITY:
               
Preferred stock, $.001 par value, 25,000,000 shares authorized; 0 issued and outstanding as of September 30, 2009 and December 31, 2008, respectively
    -       -  
Common stock, $.001 par value, 950,000,000 shares authorized; 149,054,881 and 221,854,881 issued and outstanding as of September 30, 2009 and December 31, 2008, respectively
    149,054       221,854  
Additional paid-in capital
    13,831,863       13,959,063  
Accumulated deficit
    (13,740,216 )     (12,498,865 )
Total stockholders' equity
    240,701       1,682,052  
                 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
  $ 557,338     $ 1,803,369  

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

 
3

 


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008
(Unaudited)


   
Three Months
   
Nine Months
 
   
2009
   
2008
   
2009
   
2008
 
         
(As Restated)
         
(As Restated)
 
                         
REVENUE
  $ 10,350     $ 75,000     $ 125,286     $ 75,000  
Total
    10,350       75,000       125,286       75,000  
                                 
COST OF GOODS SOLD
    48,527       6,166       89,650       6,166  
GROSS PROFIT
    (38,177 )     68,834       35,636       68,834  
                                 
OPERATING EXPENSES:
                               
General and administrative
    317,679       273,693       1,097,571       611,455  
Selling and marketing
    33,624       25,575       93,493       58,498  
Depreciation and amortization
    30,000       20,424       90,000       61,277  
Total operating expenses
    381,303       319,692       1,281,064       731,230  
OPERATING LOSS
    (419,480 )     (250,858 )     (1,245,428 )     (662,396 )
                                 
OTHER (INCOME) AND EXPENSES
                               
Interest income
    (2,391 )     (7,256 )     (4,077 )     (19,893 )
Total other (income) expense
    (2,391 )     (7,256 )     (4,077 )     (19,893 )
                                 
NET LOSS
  $ (417,089 )   $ (243,602 )   $ (1,241,351 )   $ (642,503 )
                                 
NET LOSS PER SHARE:
                               
Basic and diluted
  $ (0.00 )   $ (0.00 )   $ (0.01 )   $ (0.00 )
                                 
Basic and diluted
    149,054,881       201,819,475       191,878,410       142,839,070  

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

 
4

 


BRAMPTON CREST INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008
(Unaudited)


   
2009
   
2008
 
         
(As Restated)
 
             
Net loss
  $ (1,241,351 )   $ (642,503 )
Adjustments to reconcile net loss to net cash used in operating activities:
               
Depreciation and amortization
    90,000       61,277  
Changes in operating assets and liabilities:
               
Decreases (Increases) in assets
               
Accounts receivables
    20,973       (76,438 )
Prepaid expenses and deposits
    67       (9,450 )
Increases (Decreases) in liabilities
               
Accounts payables
    195,320       (74,958 )
Net cash used in operating activities
    (934,991 )     (742,072 )
                 
CASH FLOWS FROM INVESTING ACTIVITIES:
               
Purchased marketable securities
    -       (1,325,000 )
Redeemed marketable securities
    843,500       -  
Cash acquired in acquisition
    -       19,349  
Purchase of property and equipment
    (81,025 )     (348,873 )
Net cash provided by (used in) investing activities
    762,475       (1,654,524 )
                 
CASH FLOWS FROM FINANCING ACTIVITIES:
               
Proceeds from the issuance of common stock
    -       2,474,233  
Repurchase of common stock
    (200,000 )     -  
Net cash (used in) provided by financing activities
    (200,000 )     2,474,233  
                 
NET (DECREASE) INCREASE IN CASH
    (372,516 )     77,637  
CASH, BEGINNING OF PERIOD
    375,058       31,479  
CASH, END OF PERIOD
  $ 2,542     $ 109,116  
                 
Supplemental disclosure of non cash activities:
               
                 
Acqusiiton of America's Emergency Network LLC:
               
Cash acquired in acqusition
  $ -     $ 19,349  
Fixed assets
    -       61,194  
Other assets
    -       12,900  
Loan payable
    -       (204,337 )
Officer loan
    -       (95,926 )
Accounts payable
    -       (108,927 )
Goodwill
    -       10,415,747  
Common stock issued for acquisition
  $ -     $ 10,100,000  

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

 
5

 
 
BRAMPTON CREST INTERNATIONAL INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008

NOTE 1 - DESCRIPTION OF BUSINESS

Brampton Crest International, Inc., formerly known as Hamilton-Biophile Companies (the “Company"), a Nevada corporation, was formerly organized as Mehl/Biophil International Corporation. On March 22, 2000, the Company was reorganized as Hamilton-Biophile Companies. Effective November 9, 2004, the Company changed its name to Brampton Crest International, Inc.

Effective March 2, 2007, the Company announced that it had formed a wholly owned subsidiary, White Peak Capital Group, Inc., a Florida corporation (“White Peak”) that would focus on making secured short and medium term loans. Effective July 2007, White Peak changed its name to Laurentian Peak Capital Group (“Laurentian”). Laurentian’s corporate structure and marketing plan remains the same as it was with White Peak.

Laurentian will generate its own business through an established network of finance industry contacts developed by its management and by seeking the participation by other originators known to the company management. Laurentian loans will be both short and medium term, secured by accounts and trade receivables, real estate, credit card receivables, equipment letters of credit and shares of stock. The originators from whom Laurentian will purchase participations are established companies known to Laurentian management. Laurentian obtained a license as a mortgage lender and is now able to begin to implement its marketing plan.

On March 19, 2008, the Company, America’s Emergency Network, LLC, a Florida limited liability company, Bryan Norcross, in his capacity as a member and representative of the members of America’s Emergency Network, LLC, Max Mayfield, a member of America’s Emergency Network, LLC, Matthew Straeb, a member of the America’s Emergency Network, LLC, Robert Adams, a member of America’s Emergency Network, LLC, and Brampton Acquisition Subsidiary Corp., a Florida corporation and a wholly owned subsidiary of the Company, entered into an Agreement and Plan of Merger whereby America’s Emergency Network, LLC was merged into Brampton Acquisition Subsidiary Corp. Brampton Acquisition Subsidiary Corp.’s name was subsequently changed to America’s Emergency Network, Inc. Consequently, America’s Emergency Network, Inc. (which contains the operating business formerly conducted by America’s Emergency Network, LLC), continues as a wholly owned subsidiary of the Company.      
 
NOTE 2 - GOING CONCERN ISSUES

The accompanying Condensed Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America which contemplate continuation of the Company as a going concern.  However, the Company has period end losses from operations for the three and nine months ended September 30, 2009.  The Company has an accumulated net loss of $13,740,216.  Further, the Company has inadequate working capital to maintain or develop its operations, and is dependent upon funds from private investors and the support of certain stockholders.  
 
These factors raise substantial doubt about the ability of the Company to continue as a going concern.  The Condensed Consolidated Financial Statements do not include any adjustments that might result from the outcome of these uncertainties.  In this regard, Management is planning to raise any necessary additional funds through loans and additional sales of its common stock. There is no assurance that the Company will be successful in raising additional capital.

 
6

 
 
The Company's ability to meet its obligations and continue as a going concern is dependent upon its ability to obtain additional financing, and the achievement of profitable operations.   The Company cannot reasonably be expected to earn revenue in the exploration stage of operations. Although the Company plans to pursue additional financing, there can be no assurance that the Company will be able to secure financing when needed or to obtain such financing on terms satisfactory to the Company, if at all.
 
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 
The Company prepares its Condensed Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States of America.  Significant accounting policies are as follows:
 
Basis of Presentation

Interim Financial Statements
 
The accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X.  Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In our opinion, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine month period ended September 30, 2009 and 2008 are not necessarily indicative of the results that may be expected for the year ending December 31, 2009. While management of the Company believes that the disclosures presented herein are adequate and not misleading, these interim condensed consolidated financial statements should be read in conjunction with the restated audited consolidated financial statements and the footnotes thereto for the fiscal year ended December 31, 2008 as filed with the Securities and Exchange Commission as an exhibit to our Form 10-K/A.

Principle of Consolidation

The condensed consolidated financial statements include the accounts of Brampton Crest International, Inc. and America’s Emergency Network,  Inc. (“AEN”). Intercompany accounts and transactions have been eliminated in the consolidated financial statements.

Accounting Changes And Error Corrections
 
The Company determined that accounting errors existed in reporting the acquisition of AEN, as a result of the Company not appropriately determining the fair value of its common stock issued in connection with the acquisition. The Company has restated its financial statements for the quarters ended March 31, 2008, June 30, 2008, and September 30, 2008, and for the year ended December 31, 2008, to record goodwill on the acquisition at the excess of the fair value of the consideration given (i.e., the common stock issued) and the liabilities assumed over the estimated fair value of the assets acquired. The restated financial statements include the disclosures required under ASC Topic 820, “Accounting Changes and Error Corrections”.
 
A revised stock price of $0.10 per share was used for the valuation of the common stock issued for the AEN acquisition. This price was derived from an average of the stock price at the time of the acquisition and the stock price used in the private placement dated March 24, 2008. This revaluation resulted in an increase of $7 million in the purchase price of AEN, to a total consideration of approximately $10.1 million, and a corresponding adjustment of the estimated recoverable value of recorded goodwill from approximately $3.4 million to approximately $10.4 million.

 
7

 

The Company also discovered classification errors in its consolidated financial statements for cash and cash equivalents and marketable securities. The Company has reclassified marketable securities on its restated consolidated balance sheets for the aforementioned reporting periods. The Company has also corrected errors in reporting cash flow activity relative to purchases and redemptions of marketable securities on its restated consolidated statements of cash flows for the aforementioned reporting periods.
 
Use of Estimates
 
The preparation of Condensed Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates and assumptions that affect (i) the reported amounts of assets and liabilities, (ii) the disclosure of contingent assets and liabilities known to exist as of the date the Condensed consolidated Financial Statements are published, and (iii) the reported amount of net sales and expenses recognized during the periods presented. Adjustments made with respect to the use of estimates often relate to improved information not previously available. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of Condensed consolidated Financial Statements; accordingly, actual results could differ from these estimates.

Revenue Recognition

The Company recognizes revenue in accordance with the Securities and Exchange Commission, Staff Accounting Bulletin (SAB) No. 104, “Revenue Recognition” (“SAB No. 104”). SAB 104 clarifies application of generally accepted accounting principles related to revenue transactions. The Company also follows the guidance in ASC Topic 980, Revenue Arrangements with Multiple Deliverables ("ASC Topic 980"), in arrangements with multiple deliverables.

The Company recognizes revenues when all of the following criteria are met: (1) persuasive evidence of an arrangement exists, (2) delivery of products and services has occurred, (3) the fee is fixed or determinable and (4) collectability is reasonably assured.

The Company receives revenue for consulting services, video streaming services, equipment sales and leasing, installation, content licensing, and maintenance agreements. Sales and leasing agreement terms generally are for one year, and are renewable year to year thereafter. Revenue for consulting services is recognized as the services are provided to customers. For upfront payments and licensing fees related to contract research or technology, the Company determines if these payments and fees represent the culmination of a separate earnings process or if they should be deferred and recognized as revenue as earned over the life of the related agreement. Milestone payments are recognized as revenue upon achievement of contract-specified events and when there are no remaining performance obligations. Revenues from monthly video streaming agreements, as well as equipment maintenance, are recorded when earned. Operating equipment lease revenues are recorded as they become due from customers. Revenues from equipment sales and installation are recognized when equipment delivery and installation have occurred, and when collectability is reasonably assured.

In certain cases, the Company enters into agreements with customers that involve the delivery of more than one product or service. Revenue for such arrangements is allocated to the separate units of accounting using the relative fair value method in accordance with ASC Topic 980. The delivered item(s) is considered a separate unit of accounting if all of the following criteria are met: (1) the delivered item(s) has value to the customer on a standalone basis, (2) there is objective and reliable evidence of the fair value of the undelivered item(s) and (3) if the arrangement includes a general right of return, delivery or performance of the undelivered item(s) is considered probable and substantially in the control of the vendor. If all the conditions above are met and there is objective and reliable evidence of fair value for all units of accounting in an arrangement, the arrangement consideration is allocated to the separate units of accounting based on their relative fair values.

 
8

 

Explicit return rights are not offered to customers; however, the Company may accept returns in limited circumstances. There have been no returns through September 30, 2009. Therefore, a sales return allowance has not been established since management believes returns will be insignificant.

Cash And Cash Equivalents

The Company considers all highly liquid investments with an original term of three months or less to be cash equivalents. At September 30, 2009 and December 31, 2008, the Company had cash equivalents in the amount of $2,542 and $375,058, respectively, all in low risk investments or bank accounts.

Marketable Securities
 
The Company holds marketable securities with a financial institution. The investments are highly liquid, short-term securities and the fair value of these securities has little or no change from the original purchase price. The amounts held at September 31, 2009 and December 31, 2008 were $181,500 and $1,025,000 respectively.

Accounts Receivable

Substantially all of the Company’s accounts receivable balance is related to trade receivables. Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in its existing accounts receivable. The Company will maintain allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments for products. Accounts with known financial issues are first reviewed and specific estimates are recorded. The remaining accounts receivable balances are then grouped in categories by the amount of days the balance is past due, and the estimated loss is calculated as a percentage of the total category based upon past history. Account balances are charged off against the allowance when it is probable the receivable will not be recovered.

Property and Equipment

Property and equipment is recorded at cost and depreciated over the estimated useful lives of the assets using the straight-line method. When items are retired or otherwise disposed of, income is charged or credited for the difference between net book value and proceeds realized thereon.  Ordinary maintenance and repairs are charged to expense as incurred, and replacements and betterments are capitalized.

The range of estimated useful lives used to calculate depreciation for property and equipment are as follow:

Asset Category
     
Depreciation/
Amortization Period
Furniture and Fixture
 
5 Years
Office equipment
 
5 Years
Leasehold improvements
 
2 Years

9


Impairment Of Long-Lived Assets and Long-Lived Assets To Be Disposed Of

The Company accounts for the impairment of long-lived assets in accordance with ACS Topic 360, “Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of” (“ACS Topic 360”) requires write-downs to be recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amount.

If the long-lived assets are identified as being planned for disposal or sale, they would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. The assets and liabilities of a disposed group classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheet. As of September 30, 2009 this does not apply.

Income Taxes

Deferred income taxes are provided based on the provisions of ASC Topic 740, "Accounting for Income Taxes", to reflect the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income.  Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized.

The Company adopted the provisions of ASC Topic 740; "Accounting For Uncertainty In Income Taxes-An Interpretation Of ASC Topic 740 ("Topic 740").  Topic 740 contains a two-step approach to recognizing and measuring uncertain tax positions.  The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not, that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount, which is more than 50% likely of being realized upon ultimate settlement.  The Company considers many factors when evaluating and estimating the Company's tax positions and tax benefits, which may require periodic adjustments. At September 30, 2009, the Company did not record any liabilities for uncertain tax positions.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash. The Company maintains cash balances at one financial institution, which is insured by the Federal Deposit Insurance Corporation (“FDIC”). The FDIC insured institution insures up to $250,000 on account balances. The amounts that are not insured by FDIC limitations are held in short-term securities. As of September 30, 2009 and December 31, 2008, there were approximately $2,542 and $1,025,000, respectively in these accounts. The Company has not experienced any losses in such accounts.

Share-Based Compensation

The Company applies Topic 718 “Share-Based Payments” (“Topic 718”) to share-based compensation, which requires the measurement of the cost of services received in exchange for an award of an equity instrument based on the grant-date fair value of the award.  Compensation cost is recognized when the event occurs.  The Black-Scholes option-pricing model is used to estimate the fair value of options granted.

10

 
Earnings (Loss) Per Share

Earnings (loss) per share is computed in accordance with ASC Topic 260, "Earnings per Share". Basic earnings (loss) per share is computed by dividing net income (loss), after deducting preferred stock dividends accumulated during the period, by the weighted-average number of shares of common stock outstanding during each period. Diluted earnings per share is computed by dividing net income by the weighted-average number of shares of common stock, common stock equivalents and other potentially dilutive securities outstanding during the period. The outstanding warrants for the quarters ended September, 31, 2009 and 2008, are anti-dilutive and therefore are not included in earnings (loss) per share.

The following is a summary of the securities that could be potentially dilute basic loss per share in the future that were not included in the computation of diluted loss per share because to do so would be anti-dilutive

   
Quarter Ended
   
Quarter Ended
 
   
September 30,
   
September 30,
 
   
2009
   
2008
 
Warrants
   
600,000
     
50,100,000
 
Total
   
600,000
     
50,100,000
 

Reclassifications
 
Certain prior year amounts have been reclassified to conform to the current period presentation for comparative purposes.

Segment Information

The Company currently operates two business operations within its two subsidiaries, America’s Emergency Network, Inc. (“AEN”) and Laurentian Peak Capital Group. In 2008, all of the Company’s operations were in AEN, which is the material business segment. Laurentian’s business activities and operations were minimal in 2009 and 2008, and its operations are not materially considered in management’s decision making. The entire business is comprehensively managed by a single management team that reports to the Chief Executive Officer. Accordingly, the Company does not have separately reportable segments as defined by ASC 280, Disclosures about Segments of a Enterprise and Related Information.

Recent Accounting Pronouncements

Recent accounting pronouncements that the Company has adopted or that will be required to adopt in the future are summarized below.
 
In September 2009, Accounting Standards Codification (“ASC”) became the source of authoritative U.S. GAAP recognized by the Financial Accounting Standards Board (“FASB”) for nongovernmental entities, except for certain FASB Statements not yet incorporated into ASC. Rules and interpretive releases of the SEC under federal securities laws are also sources of authoritative U.S. GAAP for registrants. The discussion below includes the applicable ASC reference.
 
The Company adopted ASC Topic 810-10 Consolidation (formerly SFAS No. 160, Noncontrolling Interests in Consolidated Financial Statements – an amendment of ARB No. 51) effective January 2, 2009. Topic 810-10 changes the manner of presentation and related disclosures for the noncontrolling interest in a subsidiary (formerly referred to as a minority interest) and for the deconsolidation of a subsidiary. The presentation changes are reflected retrospectively in the Company’s unaudited condensed consolidated financial statements.

 
11

 
 
ASC Topic 815-10 Derivatives and Hedging (formerly SFAS No. 161, Disclosures about Derivative Instruments and Hedging Activities) was adopted by the Company effective January 2, 2009. The guidance under Topic 815-10 changes the manner of presentation and related disclosures of the fair values of derivative instruments and their gains and losses.
 
The Company adopted ASC Topic 825-10 Financial Instruments (formerly, FASB Staff Position No. SFAS 107-1 and APB No. 28-1, Disclosures about the Fair Value of Financial Instruments), which requires quarterly disclosure of information about the fair value of financial instruments within the scope of Topic 825-10. The Company adopted this pronouncement effective April 1, 2009.
 
In April 2009, the Company adopted ASC Topic 820-10-65 Fair Value Measurements and Disclosures (formerly FASB Staff Position No. SFAS 157-4, Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly). The standard provides additional guidance for estimating fair value in accordance with Topic 820-10-65 when the volume and level of activity for the asset or liability have significantly decreased and includes guidance on identifying circumstances that indicate if a transaction is not orderly. The Company adopted this pronouncement effective April 1, 2009 with no impact on its consolidated financial statements.
 
The Company adopted, ASC Topic 855-10 Subsequent Events (formerly SFAS 165, Subsequent Events) effective April 1, 2009. This pronouncement changes the general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued or are available to be issued.
 
In June 2009, the FASB finalized SFAS No. 167, Amending FASB interpretation No. 46(R), which was included in ASC Topic 810. The provisions of ASC 810 amend the definition of the primary beneficiary of a variable interest entity and will require the Company to make an assessment each reporting period of its variable interests. The provisions of this pronouncement are effective January 1, 2010. The Company is evaluating the impact of the statement on its consolidated financial statements.
  
In July 2009, the FASB issued SFAS No. 168, The Hierarchy of Generally Accepted Accounting Principles. SFAS 168 codified all previously issued accounting pronouncements, eliminating the prior hierarchy of accounting literature, in a single source for authoritative U.S. GAAP recognized by the FASB to be applied by nongovernmental entities. SFAS 168, now ASC Topic 105-10 Generally Accepted Accounting Principles, is effective for financial statements issued for interim and annual periods ending after September 15, 2009. The adoption of this pronouncement did not have an effect on the consolidated financial statements.
 
In August 2009, the FASB issued Accounting Standards Update (“ASU”) No. 2009-05, Measuring Liabilities at Fair Value, which clarifies, among other things, that when a quoted price in an active market for the identical liability is not available, an entity must measure fair value using one or more specified techniques. The Company adopted the pronouncement effective July 1, 2009 with no impact on its consolidated financial statements.
 
In October 2009, the FASB issued ASU No. 2009-13, Multiple-Deliverable Revenue Arrangements, which revises the existing multiple-element revenue arrangements guidance and changes the determination of when the individual deliverables included in a multiple-element revenue arrangement may be treated as separate units of accounting, modifies the manner in which the transaction consideration is allocated across the separately identified deliverables and expands the disclosures required for multiple-element revenue arrangements. The pronouncement is effective for financial statements issued after December 31, 2010. The Company does not expect the pronouncement to have a material effect on its consolidated financial statements.

12

 
NOTE 4 – FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company’s financial instruments consist primarily of cash, cash equivalents, and marketable securities. account receivable, accounts payable, accrued expenses, and debt. The carrying amounts of such financial instruments approximate their respective estimated fair value due to the short-term maturities and/or approximate market interest rates of these instruments.  The estimated fair value is not necessarily indicative of the amounts the Company would realize in a current market exchange or from future earnings or cash flows.
 
The Company adopted Statement of ASC Topic 820  Fair Value Measurements (“ACS Topic 820”), which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements.  The standard provides a consistent definition of fair value which focuses on an exit price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.  The standard also prioritizes, within the measurement of fair value, the use of market-based information over entity specific information and establishes a three-level hierarchy for fair value measurements based on the nature of inputs used in the valuation of an asset or liability as of the measurement date.
 
The three-level hierarchy for fair value measurements is defined as follows:

 
·
Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets;

 
·
Level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable or the asset or liability other than quoted prices, either directly or indirectly including inputs in markets that are not considered to be active;

 
·
Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement

Assets measured at fair value on a recurring basis are summarized below:
         
Fair value measurement at reporting date using
 
Description
 
September 30,
2009
   
Quoted Prices in Active
Markets for Identical Assets
(Level 1)
   
Significant Other
Observable Inputs
(Level 2)
   
Significant
Unobservable Inputs
(Level 3)
 
Assets
                       
Cash e  Cash Equivalents:
                       
                Money market
   
2,542
     
2,542
     
—
     
—
 
Marketable securities:
                               
Mutual Funds
   
156,500
     
156,500
     
—
     
—
 
Preferred/Fixed
                               
              Rate Cap
                               
             Securities
   
     25,000
     
—
     
25,000
     
—
 
                                 
 Total assets
 
$
184,042
   
$
159,042
   
$
25,000
   
$
—
 
 
No other than temporary impairments were recognized for the three and nine months ended September 30, 2009.

 
13

 

NOTE 5 - EQUITY

Private Placement Offering

On March 24, 2008, the Company accepted subscriptions for 10,000,000 shares of common stock, at a price of $.10 per share, resulting in gross proceeds of one million dollars ($1,000,000).  After legal costs and commissions the net proceeds to the Company were approximately $915,000.  No other warrants or options are associated with the stock purchase.  The common stock issued to U.S. investors was sold based on an exemption from registration pursuant to Section 4(2) and Rule 506 of Regulation D of the Securities Act of 1933 and the common stock issued to non-U.S. investors was sold based on an exemption from registration pursuant to Regulation S of the Securities Act of 1933.

During the second and third quarters of 2008 the Company accepted subscriptions for 9,915,943 shares of common stock, at a price of $.17 per share, resulting in gross proceeds of One Million six hundred seventy-one thousand seven hundred and ten Dollars ($1,671,710).  After legal costs and commissions the net proceeds to the Company were approximately $1,559,000.  No other warrants or options are associated with the stock purchase.  The common stock issued to U.S. investors was sold based on an exemption from registration pursuant to Section 4(2) and Rule 506 of Regulation D of the Securities Act of 1933 and the common stock issued to non-U.S. investors was sold based on an exemption from registration pursuant to Regulation S of the Securities Act of 1933.

Common Stock

As of September 30, 2009 and December 31, 2008, the Company authorized 950,000,000 shares of common stock, at $.001 par value and of which 149,054,881 and 221,854,881 were issued and outstanding as of September 30, 2009 and December 31, 2008, respectively.

During the three months ended September 30, 2009, the Company issued 200,000 shares of common stock as a result of the exercise of warrants.

Preferred Stock

As of September 30, 2009 and December 31, 2008, the Company authorized 25,000,000 shares of preferred stock, at $.001 par value and there are no preferred shares issued and outstanding as of September 30, 2009 and December 31, 2008.

Options
As of September 30, 2009, no options to purchase common stock of the Company were issued and outstanding.

Warrants
As of September 30, 2009, the Company has 600,000 common stock warrants outstanding.

The following represents the stock warrant activity during the years ended December 31, 2008 and quarter ended September 30, 2009:
         
Weighted
 
         
Average
 
   
Warrants
   
Price
 
Balance, 12/31/07
   
51,100,000
   
$
.001
 
Activity:
               
Activity 1/1/08-12/31/08-Warrants exercised
   
(50,300,000
)
   
.001
 
Balance, 12/31/08
   
800,000
   
$
.001
 
Activity:
               
Activity 1/1/09-9/30/09—Warrants exercised
   
(200,000)
     
—
 
Balance  9/30/09
   
600,000
   
$
.001
 

 
14

 

Redemption And Cancellation Of Common Stock
 
Effective June 15, 2009, Robert Adams redeemed, for the sum of $100,000, 24,000,000 of the 25,000,000 shares held in the name of Adams Family Company LLC of which Robert Adams is the controlling Member.  Also Matthew Straeb, for the sum of $100,000, redeemed 24,000,000 of the 25,000,000 shares held in the name of RMS Associates of Broward, LLC of which Matthew Straeb is the controlling Member. The 48,000,000 shares were subsequently cancelled by the Company.
 
Effective June 15, 2009, Bryan Norcross and Max Mayfield each redeemed 12,500,000 shares of common stock for no consideration, and the 25,000,000 shares were subsequently cancelled by the Company.

NOTE 6 - - ACQUISITIONS

Acquisition of America’s Emergency Network, LLC (“AEN”)

On March 19, 2008, the Company, America’s Emergency Network, LLC, a Florida limited liability company, Bryan Norcross, in his capacity as a member and representative of the members of America’s Emergency Network, LLC, Max Mayfield, a member of America’s Emergency Network, LLC, Matthew Straeb, a member of the America’s Emergency Network, LLC, Robert Adams, a member of America’s Emergency Network, LLC, and Brampton Acquisition Subsidiary Corp., a Florida corporation and a wholly owned subsidiary of the Company, entered into an Agreement and Plan of Merger whereby America’s Emergency Network, LLC was merged into Brampton Acquisition Subsidiary Corp. Brampton Acquisition Subsidiary Corp.’s name was subsequently changed to America’s Emergency Network, Inc. Consequently, America’s Emergency Network, Inc. (which contains the operating business formerly conducted by America’s Emergency Network, LLC), continues as a wholly owned subsidiary of the Company.      

Pursuant to the terms and conditions of the Merger Agreement, the members of America’s Emergency Network, LLC received an aggregate of 100,000,000 shares of Company Common Stock.

The following table sets forth the allocation of the purchase price for tangible and intangible assets associated with the above 2008 acquisition and acquired assets and liabilities assumed as of March 19, 2008:

Goodwill
 
$
10,415,747
 
Cash
   
19,349
 
Fixed assets
   
61,194
 
Other assets
   
12,900
 
Accounts payable
   
(108,927
)
Officer loan
   
(95,926
)
Loan payable
   
(204,337
)
Total stock issued for purchase
 
$
10,100,000
 

When fully deployed, America's Emergency Network will link Emergency Operations Centers (EOC's) in cities, towns, counties, school boards, and other government entities with the general public, media outlets, first responders, and other government agencies. The satellite-based system will send video feeds of news briefings by emergency officials and critical text bulletins issued at any EOC in any location to all users instantly. The satellite-based system is designed to operate before and after disasters, even when telephone, cell phone, and terrestrial internet systems have failed. In addition, during short-fuse emergencies (tanker accidents, bio-hazards, etc.), America's Emergency Network will provide an instant-communications link directly to all subscribing media outlets. Critical information will reach the public much sooner since all subscribing media outlets will receive the text and video feeds at once.

 
15

 

The summarized unaudited pro forma financial information for the quarter ended September 30, 2008 that follows assumes the acquisition of America’s Emergency Network, LLC was consummated on January 1, 2008:

   
Nine months
 
   
Ended
 
   
September 30,
 
   
2008
 
SALES
 
$
75,000
 
COST OF SALES
   
6,166
 
GROSS PROFIT
   
68,834
 
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
   
791,841
 
LOSS FROM OPERATIONS
   
         (723,007)
 
OTHER INCOME
       
Interest income
   
20,345
 
Total Other Income
   
20,345
 
LOSS BEFORE INCOME TAXES
   
(702,662
)
INCOME TAX BENEFIT
   
—
 
         
NET LOSS
 
$
(702,662
)
LOSS PER SHARE - BASIC AND DILUTED
 
$
(.01)
 
         
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC AND DILUTED
   
142,839,070
 

NOTE 7 – RELATED PARTY TRANSACTIONS

Prior to the acquisition of AEN its President and current CEO of Brampton advanced the Company funds for legal and other start up costs for the Company’s operations. These advances are non-interest bearing and are expected to be paid at an undetermined date.

NOTE 8 - PROPERTY AND EQUIPMENT

The Company has fixed assets as of September 30, 2009 and December 31, 2008 as follows:

   
September
30, 2009
   
December
31, 2008
 
Property Plant & Equipment
  $ 547,599     $ 466,574  
Accumulated depreciation
    (201,354 )     (111,354 )
Total
  $ 346,245     $ 355,220  

 
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NOTE 9 - INCOME TAXES

The Company adopted ASC 740 which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the financial statement or tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between Consolidated Financial Statements and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Temporary differences between taxable income reported for financial reporting purposes and income tax purposes are insignificant.

For income tax reporting purposes, the Company’s aggregate unused net operating losses approximate $3,730,216 which expire in various years through 2028, subject to limitations of Section 382 of the Internal Revenue Code, as amended. The Company has provided a valuation reserve against the full amount of the net operating loss benefit, because in the opinion of management based upon the earning history of the Company, it is more likely than not that the benefits will not be realized.
 
Under the Tax Reform Act of 1986, the benefits from net operating losses carried forward may be impaired or limited on certain circumstances. Events which may cause limitations in the amount of net operating losses that the Company may utilize in any one year include, but are not limited to, a cumulative ownership change of more than 50% over a three-year period. The impact of any limitations that may be imposed for future issuances of equity securities, including issuances with respect to acquisitions have not been determined.

Deferred income taxes result from temporary differences in the recognition of income and expenses for the financial reporting purposes and for tax purposes. The tax effect of these temporary differences representing deferred tax asset and liabilities result principally from the following:     

   
September
30, 2009
   
September
30, 2008
 
             
Net operating loss carryforward
    158,162       92,407  
Valuation allowance
    (158,162 )     (92,407 )
                 
Deferred income tax asset
  $ -       -  

NOTE 10 – COMMITMENT AND CONTINGENCIES

The Company entered into various consulting agreements related to services to be rendered by the consultants.  The agreements are currently in place.

NOTE 11 – SUBSEQUENT EVENTS

Effective October 31, 2009, Brad Hacker resigned as  Chief Financial Officer and member of the Board of Directors of the Company and a new interim Chief Financial Officer was appointed.  There are no disagreements with Mr. Hacker on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure.

On  Nov 18, 2009, Brampton has scheduled in Circuit Court a motion for a default final judgment against Blackpool Corporate Advisors LLC for damages in the amount of $33,403.75. On October 23 2009, the court entered an order of default against the defendant for failure to obtain counsel.

The Company evaluated subsequent events through November 16, 2009.

 
17

 

* * * * * * * * * * *

 
18

 

In this Quarterly Report on Form 10-Q, “Company,” “our company,” “us,” and “our” refer to Brampton Crest International Inc., unless the context requires otherwise.

ITEM 2 - MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Management’s Discussion and Analysis contains various “forward looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, regarding future events or the future financial performance of the Company that involve risks and uncertainties. Certain statements included in this Form 10-Q, including, without limitation, statements related to anticipated cash flow sources and uses, and words including but not limited to “anticipates”, “believes”, “plans”, “expects”, “future” and similar statements or expressions, identify forward looking statements. Any forward-looking statements herein are subject to certain risks and uncertainties in the Company’s business, including but not limited to, reliance on key customers and competition in its markets, market demand, product performance, technological developments, maintenance of relationships with key suppliers, difficulties of hiring or retaining key personnel and any changes in current accounting rules, all of which may be beyond the control of the Company. The Company adopted at management’s discretion, the most conservative recognition of revenue based on the most astringent guidelines of the SEC in terms of recognition of software licenses and recurring revenue. Management will elect additional changes to revenue recognition to comply with the most conservative SEC recognition on a forward going accrual basis as the model is replicated with other similar markets (i.e. SBDC). The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of certain factors, including those set forth therein.

Forward-looking statements involve risks, uncertainties and other factors, which may cause our actual results, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Factors and risks that could affect our results and achievements and cause them to materially differ from those contained in the forward-looking statements include those identified in the section titled “Risk Factors” in the Company’s Annual Report on Form 10-K/A for the year ended December 31, 2008, as well as other factors that we are currently unable to identify or quantify, but that may exist in the future.
 
In addition, the foregoing factors may affect generally our business, results of operations and financial position. Forward-looking statements speak only as of the date the statement was made. We do not undertake and specifically decline any obligation to update any forward-looking statements.

Overview

Brampton Crest International, Inc, a Nevada corporation, was originally organized as Selvac Corporation, a Delaware corporation. On September 28, 1982, Selvac Corporation’s name was changed to Mehl/Biophile International Corporation. On March 22, 2000, our company reorganized as Hamilton-Biophile Companies. On November 26, 2001, we re-domiciled to Nevada. Hamilton Biophile Companies changed their name to Brampton Crest International, Inc., effective on November 9, 2004.

We filed a Form 10-SB on December 16, 2004, and on May 17, 2005 became a reporting company pursuant to the Securities Exchange Act of 1934, as amended.
 
On March 24, 2008, we accepted subscriptions for 10,000,000 shares of common stock, at a price of $.10 per share, resulting in gross proceeds of One Million Dollars ($1,000,000). After legal costs and commissions our net proceeds were approximately $915,000. No other warrants or options are associated with the stock purchase. The common stock issued to U.S. investors was sold based on an exemption from registration pursuant to Section 4(2) and Rule 506 of Regulation D as promulgated under the Securities Act of 1933 and the common stock issued to non-U.S. investors was sold based on an exemption from registration pursuant to Regulation S of the Securities Act of 1933.

 
19

 
 
During the second and third quarters of 2008, we accepted subscriptions for 9,915,943 shares of common stock, at a price of $.17 per share, resulting in gross proceeds of One Million Six Hundred Seventy-One Thousand Seven Hundred and Ten Dollars ($1,671,710).  After legal costs and commissions the net proceeds to the Company were approximately $1,525,000.  No other warrants or options are associated with the stock purchase.  The common stock issued to U.S. investors was sold based on an exemption from registration pursuant to Section 4(2) and Rule 506 of Regulation D of the Securities Act of 1933 and the common stock issued to non-U.S. investors was sold based on an exemption from registration pursuant to Regulation S of the Securities Act of 1933.
 
Business

Effective March 2, 2007, our management announced that we had formed a wholly owned subsidiary, White Peak Capital Group, Inc., a Florida corporation ("White Peak") that will focus on making secured short and medium term loans. Effective July 2007, White Peak changed its name to Laurentian Peak Capital Group (“Laurentian”).
 
Management intends that Laurentian will generate business through an established network of finance industry contacts developed by its management and by seeking the participation by other originators known to the company management. Laurentian loans will be both short and medium term, secured by accounts and trade receivables, real estate, credit card receivables, equipment letters of credit and shares of stock. The originators from whom Laurentian will purchase participations are established companies known to Laurentian management.
 
Laurentian obtained a license as a mortgage lender and is now able to begin to implement its marketing plan.
 
Laurentian was initially funded by capital from our company. We intend to raise additional capital, and will attempt to secure bank lines of credit to further its lending activities. However, there are no assurances or guarantees that the lines of credit or additional capital will be achieved.

 On September 20, 2007, our subsidiary, Laurentian, loaned $200,000 to America’s Emergency Network, LLC (“AEN” or “America's Emergency Network”) at an interest rate of 12% per annum. During the course of the due diligence for the loan, our management determined that a merger with AEN was in the best interest of both parties. The loan was consolidated as part of the acquisition of AEN.

Effective March 19, 2008, our company and a subsidiary acquired all the stock of America’s Emergency Network, LLC from its four members.

America's Emergency Network 

America's Emergency Network will link Emergency Operations Centers (EOC's) in cities, towns, counties, school boards, and other government entities with the general public, media outlets, first responders, and other government agencies. The satellite-based system will send video feeds of news briefings by emergency officials issued at any EOC in any location to all users instantly. The satellite-based system is designed to operate before and after disasters, even when telephone, cell phone, and terrestrial internet systems have failed. In addition, during short-fuse emergencies (tanker accidents, bio-hazards, etc.), America's Emergency Network will provide an instant communications link directly to all subscribing media outlets. Critical information will reach the public much sooner since all subscribing media outlets will receive the text and video feeds at once.

 
20

 

Aside from AEN, there is no standardized, dedicated and secure distribution infrastructure for disseminating critical information and instructions issued in news briefings by local, state and federal emergency management agencies that overcomes the delays and incomplete-distribution limitations of the everyday news-coverage system. Local municipalities are especially handicapped by the current system because of the practical and physical limitations intrinsic to covering news. For example, even major television stations do not have enough crews to cover the news briefings that would be held in every municipality in their coverage area after a regional disaster. However, during an emergency, each mayor or emergency manager has valuable information to dispense – information that could be critical to the health and safety of the residents in his/her area of responsibility – and the volume of information that needs to be effectively communicated has no relation to the number of reporters or crews the local television stations has available. (This is particularly true given the aggressive staffing cuts made at the local television level and at newspapers and their websites in recent years.) AEN fills this large and growing gap in the system. All municipalities, regardless of their size, will be able to participate in the AEN emergency-information distribution system, and feeds will be accessible by media outlets without regard to the availability of reporters, crews or field resources.

With AEN, for the first time emergency managers will have a direct, always-on connections to the media and the public. With AEN, broadcast television stations, online newspapers and other key media partners will have the ability to receive live video feeds of news briefings from government agencies – as they occur – without the need to deploy reporters, camera crews or satellite equipment. The general public will receive the same briefings via the internet and, eventually, on planned dedicated cable, satellite and broadcast television channels (AEN-TV). Additionally, the same distribution backbone will be used to develop a for-profit, parallel system to distribute emergency information for non-governmental organizations (such as universities and health-care organizations) and for private businesses.

During 2008, beta deployments of the AEN Network were installed in ten (10) Florida governmental agencies. During Tropical Storm Fay and Hurricanes Gustav, Hanna and Ike, governmental emergency management personnel successfully used AEN to broadcast messages from the governor of Florida and other public officials. This included storm forecasts, evacuation plans, school closings, shelter locations and other critical information. Applicable localized information was carried live by the South Florida Sun-Sentinel ( www.sunsentinel.com ), the Florida Times-Union ( www.jacksonville.com ), the Miami Herald ( www.miamiherald.com ), and the Fort Myers News-Press (www.news-press.com). Though neither AEN nor any of these news sites actively promoted or advertised AEN’s feeds to the public, except on the AEN’s and the news-sites’ home pages, the information nonetheless was widely viewed. Feedback throughout the beta was very positive from our governmental and media partners, and we have received several inquiries from additional governmental agencies, media outlets and private companies interested in utilizing our service – both in and out of Florida. In spite of the favorable response to our beta program, our projected rate of revenue growth has been adversely affected by the current downturn in the overall economy; however, management remains optimistic and believes that overall future anticipated demand for our services will continue to be robust. Our management acknowledges that the economic downturn has created uncertainty in both the size and administration of governmental budgets. To that end, the Company is working with governmental entities whose budgets have been affected and other entities to identify and acquire additional sources of funding, including government grant programs, to install and maintain the AEN system.

During the year ended December 31, 2008, AEN was also nominated for ITFlorida’s Government Technology Leadership award, and ultimately was awarded first place during a ceremony on October 6, 2008. AEN was presented the first place prize during a ceremony that included recognition from several prominent governmental figures, including an administrator for the SBA and Senator Bill Nelson. ITFlorida is a state umbrella organization comprised of public and private technology leaders and includes advocates for sound public policy to the Governor, the Legislature and Enterprise Florida on issues and initiatives.

 
21

 

In addition to the continued development of its network and the successful conduct of its initial beta testing, significant progress also was achieved in other areas during the year ended December 31, 2008 and the first quarter of 2009, both strategically and operationally.

AEN signed a strategic agreement with Peacock Productions, a division of NBC News, which in turn is a division of NBC Universal, Inc., pursuant to which AEN is to provide to Peacock its expertise and experience on engineering and meteorological issues. In return, AEN is provided with a revenue stream and an opportunity to actively explore new potential uses and deployments of the AEN network with industry leading, world-class brands. The agreement, which commenced on July 21, 2008 and continued through April 30, 2009, includes close and regular interaction between AEN and NBCU, and included AEN’s advice with respect to matters such as growth opportunities in programming and technology. In addition, the agreement explicitly acknowledged the parties’ intent to enter into good faith negotiations concerning the possible integration of AEN technology into the NBC and/or its affiliated companies, though neither party is under any firm commitment to do so.

From an operational perspective, during the year ended December 31, 2008, AEN leased additional space within which it will house its headquarters through December 1, 2009 and we intend to extend our lease agreement with AEN. The management believes the new space is both cost-effective and operationally conducive to the Company’s planned growth and expansion. Located in Miami, Florida, the new space replaced the Company’s former arrangement pursuant to which it shared office space with an unrelated, third-party law firm.
 
In the quarter ended September 30, 2009, a permanent network was deployed and the conversion of the beta systems that were deployed in 2008 over to that network was begun. The permanent network is an expanded version of the temporary beta system with enhancements derived from the beta process as well as the addition of security measures. In addition, sales plans and system packages were finalized and detailed proposals were prepared. In addition, in response to the cutbacks in government funding that occurred in 2008, the management elected to accelerate the introduction of AEN technology into other markets less affected by the economic climate. The process of packaging existing products for other markets and introducing complementary products was begun and continues. Since AEN’s products can lead to cost savings as well as additional content for media outlets, we expect that simultaneous development of products for those markets as well as for government agencies will be beneficial.
 
In addition, in the quarter ended September 30, 2009, the management elected to focus company resources on increasing the number of distribution partners for its feeds, mainly the co-owned websites of television and radio stations and newspapers. It is expected that a significant number of websites will sign up to carry the streaming video feeds from the National Hurricane Center in Miami and other government agencies in Florida for the 2009 hurricane season. In turn, we expect that the larger distribution network will encourage more government agencies to subscribe to the AEN system to distribute critical news briefings in 2010.
 
Results of Operations

Revenues decreased from $75,000 for the three months ended September 30, 2008 to $10,350 for the three months ended September 30, 2009. This decrease was primarily as a result of revenues from the contract with Peacock Productions not realized in the current quarter.  Revenues for the nine months ended September 30, 2009 and 2008 increased to $125,286 from $75,000, respectively.

 
22

 

Cost of goods sold increased to $48,527 for the three months ended September 30, 2009 from $6,166 for the three months ended September 30, 2008.  Cost of goods sold increased to $89,650 for the nine months ended September 30, 2009 from $6,166 for the nine months ended September 30, 2008. Our cost of goods sold is primarily due to costs associated with the current quarter sales at a lower margin than the Peacock revenue which is consulting fees and have a higher profit margin.

General and administrative expenses increased to $317,679 for the three months ended September 30, 2009 from $273,693 for the three months ended September 30, 2008.  General and administrative expenses increased to $1,097,571 for the nine months ended September 30, 2009 from $611,455 for the nine months ended September 30, 2008. We introduced an aggressive cost-cutting initiative in the period and anticipate it will be able to realize additional cost savings going forward.

Selling and marketing expenses increased to $33,624 for the three months ended September 30, 2009 from $25,575 for the three months ended September 30, 2008.  Selling and marketing expenses increased to $93,493 for the nine months ended September 30, 2009 from $58,498 for the nine months ended September 30, 2008.   The increase is due to costs associated with the AEN merger. The increase consists primarily of $115,671 of salary and payroll related expenses and costs paid to independent contractors of $38,797 for consultants and professional fees.

Depreciation and amortization increased to $30,000 for the three months ended September 30, 2009 from $20,424 for the three months ended September 30, 2008.  Depreciation and amortization increased to $90,000 for the nine months ended September 30, 2009 from $61,277 for the nine months ended September 30, 2008.   The increase in depreciation and amortization relates to the acquisition of new assets from AEN.

Liquidity and Capital Resources.

We are financing our operations and other working capital requirements principally from the receipt of proceeds from a private placements of our securities

On March 24, 2008, the Company accepted subscriptions for 10,000,000 shares of common stock, at a price of $.10 per share, resulting in gross proceeds of $1,000,000.  After legal costs and commissions the net proceeds to the Company were approximately $915,000.  No other warrants or options are associated with the stock purchase.  The common stock issued to U.S. investors was sold based on an exemption from registration pursuant to Section 4(2) and Rule 506 of the Securities Act of 1933 and the common stock issued to non-U.S. investors was sold based on an exemption from registration pursuant to Regulation S  of the Securities Act of 1933.

During the second and third quarter of 2008, the Company accepted subscriptions for 9,915,943 shares of common stock, at a price of $.17 per share, resulting in gross proceeds of $1,671,710.  After legal costs and commissions the net proceeds to the Company were approximately $1,559,000.  No other warrants or options are associated with the stock purchase.  The common stock issued to U.S. investors was sold based on an exemption from registration pursuant to Section 4(2) and Rule 506 of Regulation D of the Securities Act of 1933 and the common stock issued to non-U.S. investors was sold based on an exemption from registration pursuant to Regulation S of the Securities Act of 1933.

Management intends to use the balance of the proceeds from the offering towards the implementation  of the business plan and to provide  working  capital and/or for future expansion of the Company's operations.

It is probable the Company will require additional capital in order to operate its business and there are no assurances  the Company will be able to raise that capital in the future.

 
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Our cash (used in) operating activities is ($934,991) and ($742,072) for the nine months ended September 30, 2009 and 2008, respectively.  The increase is mainly attributable to the increase in operating expenses while implementing our business plan.

Cash provided by (used in) investing activities was $762,475 and ($1,654,524) for the nine months ended September 30, 2009 and 2008, respectively.  We redeemed our marketable securities to increase our operation.

Cash (used in) provided by financing activities was ($200,000) and $2,474,233 for the nine months ended September 30, 2009 and 2008, respectively.  We repurchased our common stock for $200,000 and received from the sale of our common stock of $2,474,233 the nine months ended September 30, 2009 and 2008 respectively.

The Company has an accumulated net loss of $13,740,216.  Further, the Company has inadequate working capital to maintain or develop its operations, and is dependent upon funds from private investors and the support of certain stockholders.  
 
These factors raise substantial doubt about the ability of the Company to continue as a going concern.  The Condensed Consolidated Financial Statements do not include any adjustments that might result from the outcome of these uncertainties.  In this regard, Management is planning to raise any necessary additional funds through loans and additional sales of its common stock. There is no assurance that the Company will be successful in raising additional capital.
 
The Company's ability to meet its obligations and continue as a going concern is dependent upon its ability to obtain additional financing, and the achievement of profitable operations.   The Company cannot reasonably be expected to earn revenue in the exploration stage of operations. Although the Company plans to pursue additional financing, there can be no assurance that the Company will be able to secure financing when needed or to obtain such financing on terms satisfactory to the Company, if at all.

Off-balance sheet arrangements

We have no off-balance sheet arrangements including arrangements that would affect the liquidity, capital resources, market risk support and credit risk support or other benefits.
 
Critical Accounting Policies

Revenue Recognition

Revenue includes product sales. The Company recognizes revenue from product sales in accordance with Staff Accounting Bulletin (SAB) No. 104, “Revenue Recognition in Financial Statements” which is at the time customers are invoiced at shipping point, provided title and risk of loss has passed to the customer, evidence of an arrangement exists, fees are contractually fixed or determinable, collection is reasonably assured through historical collection results and regular credit evaluations, and there are no uncertainties regarding customer acceptance.

 
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Segment Information

The Company currently operates two business operations within its two subsidiaries, America’s Emergency Network, Inc. (“AEN”) and Laurentian Peak Capital Group. In 2008, all of the Company’s operations were in AEN, which is the material business segment. Laurentian’s business activities and operations were minimal in 2009 and 2008, and its operations are not materially considered in management’s decision making. The entire business is comprehensively managed by a single management team that reports to the Chief Executive Officer. Accordingly, the Company does not have separately reportable segments as defined by ASC 280, Disclosures about Segments of a Enterprise and Related Information.

Additional Information

Brampton files reports and other materials with the Securities and Exchange Commission.  These documents may be inspected and copied at the Securities and Exchange Commission, Judiciary Plaza, 100 F Street, N.E., Room 1580, Washington, D.C. 20549.  You can obtain information on the operation of the Public Reference Room by calling the Commission at 1-800-SEC-0330.  You can also get copies of documents that the Company files with the Commission through the Commission’s Internet site at www.sec.gov.

ITEM 3.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We do not hold any derivative instruments and do not engage in any hedging activities. Most of our activity is the development and mining of our mining claim.

ITEM 4. CONTROLS AND PROCEDURES

a) Evaluation of Disclosure Controls and Procedures

Our principal executive officer and our principal financial officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures as such term is defined under Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended (“Exchange Act”), as of the last day of the fiscal period covered by this report, September 30, 2009.  The term disclosure controls and procedures means our controls and other procedures that are designed 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 in the SEC’s rules and forms.  Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is accumulated and communicated to management, including our principal executive and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

Our principal executive officer and our principal financial officer, are responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a-15(f).  Our principal executive officer and our principal financial officer  are required to base their assessment of the effectiveness of our internal control over financial reporting on a suitable, recognized control framework, such as the framework developed by the Committee of Sponsoring Organizations (COSO).  The COSO framework, published in Internal Control-Integrated Framework, is known as the COSO Report.  Our principal executive officer and our principal financial officer, have chosen the COSO framework on which to base their assessment.

 
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On July 7, 2009, the Company’s Board of Directors and management determined that our financial statements for the year ended December 31, 2008 could no longer be relied upon because of a change in the accounting treatment of the Merger discussed and accounted for in those financial statements as prepared by our prior Chief Executive Officer and audited by our current auditors.  Based on this factor and the above evaluation, our principal executive officer and our principal financial officer concluded that our disclosure controls and procedures were not effective for the prior quarter. Management identified the following control deficiencies that led to our assessment of the ineffectiveness of disclosure controls and procedures: (1) an inadequate segregation of duties consistent with control objectives; (2) insufficient written policies and procedures for accounting and financial reporting with respect to the requirements and application of US GAAP and SEC disclosure requirements; and (3) ineffective controls over period end financial disclosure and reporting processes.

Subsequent to September 30, 2009, the Company filed amendments to its financial statements for the year ended December 31, 2008 and for its quarterly financial statements to rectify the deficiency in accounting disclosure. In addition, the Company retained our new interim chief financial officer, a certified public accountant.  Due to the size of our Company and the costs associated to remediate these issues, we still consider the concerns listed to be relevant. Based on that evaluation, our principal executive officer and our principal financial officer have concluded that our disclosure controls and procedures as of September 30, 2009 are not effective due to material weaknesses in our internal controls over financial reporting described above, and other factors related to the Company’s financial reporting processes. The Company is in the process of evaluating and continuing to rectify the internal controls and procedures to ensure that the internal controls and procedures satisfy the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control — Integrated Framework.

It should be noted that any system of controls, however well designed and operated, can provide only reasonable and not absolute assurance that the objectives of the system are met. In addition, the design of any control system is based in part upon certain assumptions about the likelihood of certain events. Because of these and other inherent limitations of control systems, there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions, regardless of how remote.

b) Changes in Internal Control over Financial Reporting.

During the Quarter ended September 30, 2009, except as discussed on section (a) above, there was no change in our internal control over financial reporting (as such term is defined in Rule 13a-15(f) under the Exchange Act) that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We are currently not involved in any litigation that we believe could have a material adverse effect on our financial condition or results of operations. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of our company or any of our subsidiaries, threatened against or affecting our company, our common stock, any of our subsidiaries or of our companies or our subsidiaries' officers or directors in their capacities as such, in which an adverse decision could have a material adverse effect.  Although, on Nov 18, 2009, Brampton has scheduled in Circuit Court a motion for a default final judgment against Blackpool Corporate Advisors LLC for damages in the amount of $33,403.75. On October 23, 2009 the court entered an order of default against the defendant for failure to obtain counsel.

 
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ITEM 1A - - Risk Factors

An investment in our common stock involves a high degree of risk. You should carefully consider the following information about these risks, together with the other information contained in this Quarterly Report on Form 10-Q, before investing in our common stock. If any of the events anticipated by the risks described below occur, our results of operations and financial condition could be adversely affected which could result in a decline in the market price of our common stock, causing you to lose all or part of your investment.  We have updated the risk factors previously disclosed in our Annual Report on Form 10–K for the year ended December 31, 2008, which was filed with the Securities and Exchange Commission (the “Fiscal 2008 10–K”). We believe there are no changes that constitute material changes from the risk factors previously disclosed in the Fiscal 2008 10–K except as updated and disclosed below.

POSSIBLE “PENNY STOCK” REGULATION

Any trading of our common stock in the Pink Sheets or on the OTC Bulletin Board may be subject to certain provisions of the Securities Exchange Act of 1934, commonly referred to as the “penny stock” rule.

Our common stock is deemed to be “penny stock” as that term is defined in Rule 3a51-1 promulgated under the Securities Exchange Act of 1934. Penny stocks are stock:

 
·
With a price of less than $5.00 per share;

 
·
That are not traded on a “recognized” national exchange;

 
·
Whose prices are not quoted on the NASDAQ automated quotation system (NASDAQ listed stock must still have a price of not less than $5.00 per share); or

 
·
In issuers with net tangible assets less than $2.0 million (if the issuer has been in continuous operation for at least three years) or $5.0 million (if in continuous operation for less than three years), or with average revenues of less than $6.0 million for the last three years.

Broker/dealers dealing in penny stocks are required to provide potential investors with a document disclosing the risks of penny stocks. Moreover, broker/dealers are required to determine whether an investment in a penny stock is a suitable investment for a prospective investor. These requirements may reduce the potential market for our common stock by reducing the number of potential investors. This may make it more difficult for investors in our common stock to sell shares to third parties or to otherwise dispose of them. This could cause our stock price to decline.
 
BECAUSE WE ARE QUOTED ON THE OTCBB INSTEAD OF AN EXCHANGE OR NATIONAL QUOTATION SYSTEM, OUR INVESTORS MAY HAVE A TOUGHER TIME SELLING THEIR STOCK OR EXPERIENCE NEGATIVE VOLATILITY ON THE MARKET PRICE OF OUR STOCK.

Our common stock is traded on the OTCBB. The OTCBB is often highly illiquid, in part because it does not have a national quotation system by which potential investors can follow the market price of shares except through information received and generated by a limited number of broker-dealers that make markets in particular stocks. There is a greater chance of volatility for securities that trade on the OTCBB as compared to a national exchange or quotation system. This volatility may be caused by a variety of factors, including the lack of readily available price quotations, the absence of consistent administrative supervision of bid and ask quotations, lower trading volume, and market conditions. Investors in our common stock may experience high fluctuations in the market price and volume of the trading market for our securities. These fluctuations, when they occur, have a negative effect on the market price for our securities. Accordingly, our stockholders may not be able to realize a fair price from their shares when they determine to sell them or may have to hold them for a substantial period of time until the market for our common stock improves.

 
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RISKS RELATING TO OWNERSHIP OF OUR COMMON STOCK

Although there is presently a market for our common stock, the price of our common stack may be extremely volatile and investors may not be able to sell their shares at or above their purchase price, or at all. We anticipate that the market may be potentially highly volatile and may fluctuate substantially because of:

 
·
Actual or anticipated fluctuations in our future business and operating results;

 
·
Changes in or failure to meet market expectations;

 
·
Fluctuations in stock market price and volume

WE DO NOT INTEND TO PAY DIVIDENDS

We do not anticipate paying cash dividends on our common stock in the foreseeable future. We may not have sufficient funds to legally pay dividends. Even if funds are legally available to pay dividends, we may nevertheless decide in our sole discretion not to pay dividends. The declaration, payment and amount of any future dividends will be made at the discretion of the board of directors, and will depend upon, among other things, the results of our operations, cash flows and financial condition, operating and capital requirements, and other factors our board of directors may consider relevant. There is no assurance that we will pay any dividends in the future, and, if dividends are rapid, there is no assurance with respect to the amount of any such dividend.
 
FAILURE TO ACHIEVE AND MAINTAIN EFFECTIVE INTERNAL CONTROLS IN ACCORDANCE WITH SECTION 404 OF THE SARBANES-OXLEY ACT COULD HAVE A MATERIAL ADVERSE EFFECT ON OUR BUSINESS AND OPERATING RESULTS.
 
It may be time consuming, difficult and costly for us to develop and implement the additional internal controls, processes and reporting procedures required by the Sarbanes-Oxley Act. We may need to hire additional financial reporting, internal auditing and other finance staff in order to develop and implement appropriate additional internal controls, processes and reporting procedures. If we are unable to comply with these requirements of the Sarbanes-Oxley Act, we may not be able to obtain the independent accountant certifications that the Sarbanes-Oxley Act requires of publicly traded companies.

If we fail to comply in a timely manner with the requirements of Section 404 of the Sarbanes-Oxley Act regarding internal control over financial reporting or to remedy any material weaknesses in our internal controls that we may identify, such failure could result in material misstatements in our financial statements, cause investors to lose confidence in our reported financial information and have a negative effect on the trading price of our common stock.

 
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Pursuant to Section 404 of the Sarbanes-Oxley Act and current SEC regulations, beginning with our annual report on Form 10-K for our fiscal period ending December 31, 2007, we will be required to prepare assessments regarding internal controls over financial reporting and beginning with our annual report on Form 10-K for our fiscal period ending December 31, 2008, furnish a report by our management on our internal control over financial reporting. We have begun the process of documenting and testing our internal control procedures in order to satisfy these requirements, which is likely to result in increased general and administrative expenses and may shift management time and attention from revenue-generating activities to compliance activities. While our management is expending significant resources in an effort to complete this important project, there can be no assurance that we will be able to achieve our objective on a timely basis. There also can be no assurance that our auditors will be able to issue an unqualified opinion on management's assessment of the effectiveness of our internal control over financial reporting. Failure to achieve and maintain an effective internal control environment or complete our Section 404 certifications could have a material adverse effect on our stock price.

In addition, in connection with our on-going assessment of the effectiveness of our internal control over financial reporting, we may discover “material weaknesses” in our internal controls as defined in standards established by the Public Company Accounting Oversight Board, or the PCAOB. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the annual or interim financial statements will not be prevented or detected. The PCAOB defines “significant deficiency” as a deficiency that results in more than a remote likelihood that a misstatement of the financial statements that is more than inconsequential will not be prevented or detected.

In the event that a material weakness is identified, we will employ qualified personnel and adopt and implement policies and procedures to address any material weaknesses that we identify. However, the process of designing and implementing effective internal controls is a continuous effort that requires us to anticipate and react to changes in our business and the economic and regulatory environments and to expend significant resources to maintain a system of internal controls that is adequate to satisfy our reporting obligations as a public company. We cannot assure you that the measures we will take will remediate any material weaknesses that we may identify or that we will implement and maintain adequate controls over our financial process and reporting in the future.

Any failure to complete our assessment of our internal control over financial reporting, to remediate any material weaknesses that we may identify or to implement new or improved controls, or difficulties encountered in their implementation, could harm our operating results, cause us to fail to meet our reporting obligations or result in material misstatements in our financial statements. Any such failure could also adversely affect the results of the periodic management evaluations of our internal controls and, in the case of a failure to remediate any material weaknesses that we may identify, would adversely affect the annual auditor attestation reports regarding the effectiveness of our internal control over financial reporting that are required under Section 404 of the Sarbanes-Oxley Act. Inadequate internal controls could also cause investors to lose confidence in our reported financial information, which could have a negative effect on the trading price of our common stock.

 
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THE MARKET PRICE FOR OUR COMMON SHARES IS PARTICULARLY VOLATILE GIVEN OUR STATUS AS A RELATIVELY UNKNOWN COMPANY WITH A SMALL AND THINLY TRADED PUBLIC FLOAT, LIMITED OPERATING HISTORY AND LACK OF PROFITS WHICH COULD LEAD TO WIDE FLUCTUATIONS IN OUR SHARE PRICE.

The market for our common shares is characterized by significant price volatility when compared to seasoned issuers, and we expect that our share price will continue to be more volatile than a seasoned issuer for the indefinite future. The volatility in our share price is attributable to a number of factors. First, as noted above, our common shares are sporadically and thinly traded. As a consequence of this lack of liquidity, the trading of relatively small quantities of shares by our shareholders may disproportionately influence the price of those shares in either direction. The price for our shares could, for example, decline precipitously in the event that a large number of our common shares are sold on the market without commensurate demand, as compared to a seasoned issuer which could better absorb those sales without adverse impact on its share price. Secondly, we are a speculative or “risky” investment due to our limited operating history and lack of profits to date, and uncertainty of future market acceptance for our potential products. As a consequence of this enhanced risk, more risk-adverse investors may, under the fear of losing all or most of their investment in the event of negative news or lack of progress, be more inclined to sell their shares on the market more quickly and at greater discounts than would be the case with the stock of a seasoned issuer. Many of these factors are beyond our control and may decrease the market price of our common shares, regardless of our operating performance. We cannot make any predictions or projections as to what the prevailing market price for our common shares will be at any time, including as to whether our common shares will sustain their current market prices, or as to what effect that the sale of shares or the availability of common shares for sale at any time will have on the prevailing market price.

Shareholders should be aware that, according to SEC Release No. 34-29093, the market for penny stocks has suffered in recent years from patterns of fraud and abuse. Such patterns include (1) control of the market for the security by one or a few broker-dealers that are often related to the promoter or issuer; (2) manipulation of prices through prearranged matching of purchases and sales and false and misleading press releases; (3) boiler room practices involving high-pressure sales tactics and unrealistic price projections by inexperienced sales persons; (4) excessive and undisclosed bid-ask differential and markups by selling broker-dealers; and (5) the wholesale dumping of the same securities by promoters and broker-dealers after prices have been manipulated to a desired level, along with the resulting inevitable collapse of those prices and with consequent investor losses. Our management is aware of the abuses that have occurred historically in the penny stock market. Although we do not expect to be in a position to dictate the behavior of the market or of broker-dealers who participate in the market, management will strive within the confines of practical limitations to prevent the described patterns from being established with respect to our securities. The occurrence of these patterns or practices could increase the volatility of our share price.
 
FINRA SALES PRACTICE REQUIREMENTS MAY ALSO LIMIT A STOCKHOLDER'S ABILITY TO BUY AND SELL OUR STOCK.
 
In addition to the “penny stock” rules described above, the Financial Industry Regulatory Authority (FINRA) has adopted rules that require that in recommending an investment to a customer, a broker-dealer must have reasonable grounds for believing that the investment is suitable for that customer. Prior to recommending speculative low priced securities to their non-institutional customers, broker-dealers must make reasonable efforts to obtain information about the customer's financial status, tax status, investment objectives and other information. Under interpretations of these rules, FINRA believes that there is a high probability that speculative low priced securities will not be suitable for at least some customers. FINRA requirements make it more difficult for broker-dealers to recommend that their customers buy our common stock, which may limit your ability to buy and sell our stock and have an adverse effect on the market for our shares.

VOLATILITY IN OUR COMMON SHARE PRICE MAY SUBJECT US TO SECURITIES LITIGATION, THEREBY DIVERTING OUR RESOURCES THAT MAY HAVE A MATERIAL EFFECT ON OUR PROFITABILITY AND RESULTS OF OPERATIONS.

As discussed in the preceding risk factors, the market for our common shares is characterized by significant price volatility when compared to seasoned issuers, and we expect that our share price will continue to be more volatile than a seasoned issuer for the indefinite future. In the past, plaintiffs have often initiated securities class action litigation against a company following periods of volatility in the market price of its securities. We may in the future be the target of similar litigation. Securities litigation could result in substantial costs and liabilities and could divert management’s attention and resources.

 
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OUR BUSINESS PLAN RELIES ON SIGNIFICANT REVENUE FROM NATIONAL, STATE AND LOCAL GOVERNMENTS AND REDUCTION IN GOVERNMENT REVENUE COULD EFFECT OUR BUSINESS PLAN

A significant portion of our business plan relies upon our ability to successfully charge licensing and other fees to governmental agencies for our services.    The recent worldwide financial crisis, coupled with dramatic reductions in state revenues due to reduced property values and the economic downturn, creates substantial additional uncertainty in both the size and administration of governmental budgets.  In turn, our business plan may be adversely affected if governmental budgets continue to be reduced, if any limitations or restrictions are placed upon the acquisition of new products or services like ours (such as a “freeze” on new products or services) or if expenditure priorities are changed, particularly if budgets available for emergency management services are reduced.    We believe that our services provide a key benefit to emergency managers and the general public, and that we will ultimately be able to successfully market our services on a widespread basis but we have no control over general economic conditions or the administration of public funds, so the actual timing of the rate of adoption is subject to additional uncertainty.    Should such uncertainties otherwise adversely affect the execution of our business plan, we will make appropriate adjustments to our plan, generally, and/or to the execution of our plan, specifically, in light of the then-available resources, existing prospects, and rapidly changing conditions.   By way of example, since the adoption rates in the governmental sector have been significantly reduced, we may elect to reduce our operating budget and divert more resources toward the pursuit of private sector (rather than governmental) customers, adjust the pricing or terms of our offerings, or any combination of the foregoing.   In anticipation of the potential for a reduction in the short-term revenue from our services, particularly from our governmental prospects, we have already scaled back expenditures beyond previously planned levels.

WE MAY NOT HAVE ACCESS TO SUFFICIENT CAPITAL TO PURSUE OUR BUSINESS AND THEREFORE WOULD BE UNABLE TO ACHIEVE OUR PLANNED FUTURE GROWTH:

As discussed above, we intend to pursue a growth strategy that includes development of the Company's business plan.  Currently we have limited capital which is insufficient to pursue our plans for development and growth.  Our ability to implement our exploration plans will depend primarily on our ability to obtain additional private or public equity or debt financing.  Such financing may not be available at all, or we may be unable to locate and secure additional capital on terms and conditions that are acceptable to us.  Our failure to obtain additional capital will have a material adverse effect on our business.

SHOULD ONE OR MORE OF THE FOREGOING RISKS OR UNCERTAINTIES MATERIALIZE, OR SHOULD THE UNDERLYING ASSUMPTIONS PROVE INCORRECT, ACTUAL RESULTS MAY DIFFER SIGNIFICANTLY FROM THOSE ANTICIPATED, BELIEVED, ESTIMATED, EXPECTED, INTENDED OR PLANNED.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

There were no changes in securities and registrant purchases of equity securities during the period ended September 30, 2009 except that effective September 15, 2009, Robert Adams redeemed, for the sum of $100,000, 24,000,000 of the 25,000,000 shares held in the name of Adams Family Company LLC of which Robert Adams is the controlling Member.  Also Matthew Straeb, for the sum of $100,000, redeemed 24,000,000 of the 25,000,000 shares held in the name of RMS Associates of Broward, LLC of which Matthew Straeb is the controlling Member. The 48,000,000 shares were subsequently cancelled by the Company.

 
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Effective September 15, 2009, Bryan Norcross and Max Mayfield each redeemed 12,500,000 shares of common stock for no consideration, and the 25,000,000 shares were subsequently cancelled by the Company.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

There were no defaults upon senior securities during three months ended September 30, 2009.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

There were no matters submitted to the vote of securities holders during three months ended September 30, 2009.

ITEM 5. OTHER INFORMATION
 
There is no information with respect to which information is not otherwise called for by this form.
 
ITEM 6.  EXHIBITS
 
31.1
Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act
 
31.2
Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act
 
32.1
Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act
 
32.2
Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act
 
 
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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) 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.
Registrant
Brampton Crest International Inc.
Date: November 16, 2009
 By:
/s/ Bryan Norcross
     
 
Bryan Norcross
 
Chief Executive Officer (Principle Executive Officer)

 
By:
/s/ Pamela J. Thompson
     
 
Pamela J. Thompson Interim Chief Financial Officer (Interim
Principle Financial Officer)
 
 
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EX-31.1 2 v165984_ex31-1.htm
Exhibit 31.1
 
Certification pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and pursuant to Rule 13a-14(a) and Rule 15d-14 under the Securities Exchange Act of 1934
 

 
I, Bryan Norcross, Chief Executive Officer of the Company, certify that: 
 
 
1.
I have reviewed this Quarterly report on Form 10Q of Brampton Crest International, Inc..;

 
2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 
3.
Based on my knowledge, the Condensed Consolidated Financial Statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 
4.
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 
a.
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
 
b.
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of Consolidated Financial Statements for external purposes in accordance with generally accepted accounting principles;
 
 
c.
Evaluated the effectiveness of the registrant’s disclosure and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluations: and
 
 
d.
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
 
 
5.
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 
a.
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
 
 
1

 

 
b.
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
 
Registrant
Brampton Crest International Inc.
Date: November 16, 2009
 By:
/s/ Bryan Norcross
     
  Bryan Norcross
  Chief Executive Officer (Principle Executive Officer)
 
 
2

 
 
EX-31.2 3 v165984_ex31-2.htm
Exhibit 31.2
 
Certification pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and pursuant to Rule 13a-14(a) and Rule 15d-14 under the Securities Exchange Act of 1934
 

 
I, Pamela J. Thompson, Interim Principle Financial Officer of the Company, certify that: 
 
 
1.
I have reviewed this Quarterly report on Form 10Q of Brampton Crest International, Inc..;

 
3.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 
3.
Based on my knowledge, the Condensed Consolidated Financial Statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 
4.
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 
a.
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
 
b.
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of Consolidated Financial Statements for external purposes in accordance with generally accepted accounting principles;
 
 
c.
Evaluated the effectiveness of the registrant’s disclosure and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluations: and
 
 
d.
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
 
 
5.
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant board of directors (or persons performing the equivalent functions):

 
a.
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
 

 
1

 

 
b.
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
 
Registrant
Brampton Crest International Inc.
Date: November 16, 2009
 By:
/s/ Pamela J. Thompson
     
  Pamela J. Thompson
 
Interim Chief Financial Officer (Interim Principle Financial
Officer)
 
 
2

 
 
EX-32.1 4 v165984_ex32-1.htm
Exhibit 32.1
 
CERTIFICATIONS PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 (18 U.S.C. SECTION 1350)
 

 
In connection with the Quarterly Report of Brampton Crest International Inc. (the "Company") on Form 10-Q for the period ending September 30, 2009 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Bryan Norcross, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:
 
(1)        The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
 
(2)        The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

Registrant
Brampton Crest International Inc.
Date: November 16, 2009
 By:
/s/ Bryan Norcross
     
 
Bryan Norcross
  Chief Executive Officer (Principle Executive Officer)

 
 

 
 
EX-32.2 5 v165984_ex32-2.htm
Exhibit 32.2
 
CERTIFICATIONS PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 (18 U.S.C. SECTION 1350)
 

 
In connection with the Quarterly Report of Brampton Crest International Inc. (the "Company") on Form 10-Q for the period ending September 30, 2009 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Pamela J. Thompson, Interim Principle Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:
 
(1)        The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
 
(2)        The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.
 
Registrant
Brampton Crest International Inc.
Date: November 16, 2009
By:
/s/ Pamela J. Thompson
     
  Pamela J. Thompson
  Interim Chief Financial Officer (Interim Principle Financial Officer)

 
 

 
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