f10q0608_ea2bfc.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

_______________

FORM 10-Q

_______________

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

For the quarterly period ended June 30, 2008

o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______to______.

BEDMINSTER FINANCIAL CORP.

(Exact name of registrant as specified in Charter

NEVADA		000-52666		20-8285559
(State or other jurisdiction of incorporation or organization)		(Commission File No.)		(IRS Employee Identification No.)

90 Washington Valley Road, Bedminster, New Jersey 07921

(Address of Principal Executive Offices)

_______________

(908) 719-8941

(Issuer Telephone number)

_______________

(Former Name or Former Address if Changed Since Last Report)

Check whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the issuer was required to file such reports), and (2)has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company filer. See definition of “accelerated filer” and “large accelerated filer” in Rule 12b-2 of the Exchange Act (Check one):

Large Accelerated Filer o Accelerated Filer o Non-Accelerated Filer o Smaller Reporting Company x

Indicate by check mark whether the registrant is a shell company as defined in Rule 12b-2 of the Exchange Act.

Yes x No £

State the number of shares outstanding of each of the issuer’s classes of common equity, as of June 30, 2008: 895,590 shares of Class A Common Stock and 215,400 shares of Class B Common Stock.

BEDMINSTER FINANCIAL CORP

FORM 10-Q

June 30, 2008

Table of Contents

INDEX


PART I FINANCIAL INFORMATION

Item 1.	Financial Statements	1

	Balance Sheets at June 30, 2008 (unaudited) and December 31, 2007	2

	Statements of Operations (unaudited) for the three months and six months ended June 30, 2008 and 2007	3

	Statements of Cash Flows (unaudited) for the six months ended June 30, 2008 and 2007	4

	Notes to Financial Statements (unaudited)	5

Item 2.	Management Discussion and Analysis of Financial Condition and Results of Operations.	9

Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	12

Item 4T.	Controls and Procedures.	12

PART II OTHER INFORMATION

Item 1.	Legal Proceedings.	13

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	13

Item 3.	Defaults Upon Senior Securities.	13
3
Item 4.	Submission of Matters to a Vote of Security Holders.	13

Item 5.	Other Information.	13

Item 6.	Exhibits.	13

Signatures.

Item 1. Financial Information

BEDMINSTER FINANCIAL CORP.

(A DEVELOPMENT STAGE COMPANY)

FINANCIAL STATEMENTS

AS OF JUNE 30, 2008

BEDMINSTER FINANCIAL CORP.
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEETS


	June 30, 2008			December 31, 2007
	(unaudited)			(audited)

ASSETS

CURRENT ASSETS
Cash	$	10,524		$	25
Total Current Assets		10,524			25
OTHER ASSETS
Deposits		450			450
Total Other Assets		450			450

TOTAL ASSETS	$	10,974		$	475


LIABILITIES AND STOCKHOLDERS’ DEFICIT

CURRENT LIABILITIES
Line of credit	$	197,926		$	113,127
Accounts payable and accrued expenses		198,080			87,108
Notes payable - related party		5,000			-
Total Current Liabilities		401,006			200,235

STOCKHOLDERS’ DEFICIT
Preferred stock, $0.0001 par value, 100,000,000 shares authorized, none issued and outstanding		-			-
Common stock – Class A, $0.0001 par value, 200,000,000 shares authorized, 895,590 shares issued and outstanding		90			90
Common stock – Class B, $0.0001 par value, 3,000,000 shares authorized, 215,400 shares issued and outstanding		22			22
Additional paid in capital		88,261			88,261
Deficit accumulated during development stage		(478,405	)		(288,133	)
Total Stockholders’ Deficit		(390,032	)		(199,760	)

TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT	$	10,974		$	475

The accompanying notes to the financial statements are an integral part of these statements.

BEDMINSTER FINANCIAL CORP.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF OPERATIONS (UNAUDITED)


	Six Months Ended			Period from January 16, 2007 (Inception) to			Three Months Ended						Cumulative from January 16, 2007 (Inception) to
	June 30, 2008			June 30, 2007			June 30, 2008			June 30, 2007			June 30, 2008

REVENUES	$	-		$	-		$	-		$	-		$	-

OPERATING EXPENSES
Professional fees		177,661			102,772			80,900			89,594			449,096
General and administrative		6,673			2,468			3,160			1,516			18,985
Total Operating Expenses		184,334			105,240			84,060			91,110			468,081

LOSS FROM OPERATIONS		(184,334	)		(105,240	)		(84,060	)		(91,110	)		(468,081	)

OTHER EXPENSE
Interest expense		(5,938	)		(839	)		(3,023	)		(749	)		(10,324	)
Total Other Expense		(5,938	)		(839	)		(3,023	)		(749	)		(10,324	)


NET LOSS	$	(190,272	)	$	(106,079	)	$	(87,083	)	$	(91,859	)	$	(478,405	)


Net loss per share - basic and diluted	$	(0.17	)	$	(0.13	)	$	(0.08	)	$	(0.11	)

Weighted average number of shares outstanding - basic and diluted		1,110,990			837,400			1,110,990			837,400

The accompanying notes to the financial statements are an integral part of these statements.

BEDMINSTER FINANCIAL CORP.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF CASH FLOWS (UNAUDITED)



		Six Months Ended June 30, 2008			Period from January 16, 2007 (Inception) to June 30, 2007		Cumulative from January 16, 2007 (Inception) to June 30, 2008

CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(190,272	)	$	(106,079	)	$	(478,405	)
Adjustments to reconcile net loss to
net cash used in operating activities:
Common stock issued for service		-			20,000			65,000
Services contributed		-			20,000			20,000
Changes in operating assets and liabilities:
Increase in accounts payable and accrued expenses		110,972			23,487			198,080
Increase in deposits		-			(450	)		(450	)
Net Cash Used In Operating Activities		(79,300	)		(43,042	)		(195,775	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock		-			837			3,373
Proceeds from issuance of notes payable - related party		5,000			-			5,000
Proceeds from lines of credit		84,799			42,701			197,926
Net Cash Provided By Financing Activities		89,799			43,538			206,299

NET INCREASE IN CASH		10,499			496			10,524

CASH AT BEGINNING OF PERIOD		25			-			-

CASH AT END OF PERIOD	$	10,524		$	496		$	10,524

Supplementary disclosure of cash flow information:
Cash paid for interest	$	5,937		$	839		$	10,324

The accompanying notes to the financial statements are an integral part of these statements.

BEDMINSTER FINANCIAL CORP.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO FINANCIAL STATEMENTS

AS OF JUNE 30, 2008

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ORGANIZATION

(A) Basis of presentation and Organization

The accompanying unaudited condensed financial statements have been prepared in accordance with the requirements of Form 10-Q and Rule 8-03 of Regulation S-X of the Securities and Exchange Commission (the “Commission”) and include the results of Bedminster Financial Corp. (a development stage company) (the “Company”). Accordingly, certain information and footnote disclosures required in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. Statements are subject to possible adjustments in connection with the annual audit of the Company’s accounts for the year ended December 31, 2008. In the opinion of the Company’s management, the accompanying unaudited condensed financial statements contain all adjustments (consisting only of normal recurring adjustments) which the Company considers necessary for the fair presentation of the Company’s financial position as of June 30, 2008 and the results of its operations and cash flows for the three and six month period ended June 30, 2008. Results for the six months ended June 30, 2008 are not necessarily indicative of results that may be expected for the entire year. The unaudited condensed financial statements should be read in conjunction with the audited financial statements of the Company and the notes thereto as of and for the year ended December 31, 2007 included in the Company’s Form 10-KSB filed with the Commission on March 10, 2008.

The Company was incorporated under the laws of the State of Nevada on January 16, 2007. The Company was organized to manage investment assets and provide trust services. The Company will provide institutions and high net worth individuals with trust and custodial services and related financial advisory services. The Company was a wholly owned subsidiary of Bedminster National Corp (BNC), until the August 2007, when the Company was spun off.

Activities during the development stage include developing the business plan and raising capital.

(B) Use of Estimates

In preparing financial statements in conformity with generally accepted accounting principles, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reported period. Actual results could differ from those estimates.

The Company’s policy is to consider all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents.

(D) Income Taxes

The Company accounts for income taxes under the Statement of Financial Accounting Standards No. 109, “Accounting for Income Taxes” (“Statement 109”). Under Statement 109, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under Statement 109, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. At June 30, 2008, deferred tax assets amounted to approximately $187,000 which related to net operating loss carryforwards. The Company recorded a full valuation allowance to reflect the estimated amount of deferred tax assets which are currently not realizable.

BEDMINSTER FINANCIAL CORP.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO FINANCIAL STATEMENTS

AS OF JUNE 30, 2008

The Company maintains a valuation allowance with respect to deferred tax assets. The Company establishes a valuation allowance based upon the potential likelihood of realizing the deferred tax asset and taking into consideration the Company’s consolidated financial position and results of operations for the current period. Future realization of the deferred tax benefit depends on the existence of sufficient taxable income within the carryforward period under the Federal tax laws.

Changes in circumstances, such as the Company generating taxable income, could cause a change in judgment about the realizability of the related deferred tax asset. Any change in the valuation allowance will be included in income in the year of the change in estimate.

(E) Business Segments

The Company operates in one segment and therefore segment information is not presented.

(F) Revenue Recognition

The Company is in the development stage and has yet to realize revenues from operations. Once the Company has commenced operations, it will recognize revenues when delivery of goods or completion of services has occurred provided there is persuasive evidence of an agreement, acceptance has been approved by its customers, the fee is fixed or determinable based on the completion of stated terms and conditions, and collection of any related receivable is probable. The Company had no revenues for the quarter and six months ended June 30, 2008.

(G) Financial Instruments

The Company’s financial instruments consist of cash and lines of credit. Unless otherwise noted, it is management’s opinion that the Company is not exposed to significant interest, currency or credit risks arising from these financial instruments. The fair value of these financial instruments approximates their carrying value, unless otherwise noted.

(H) Loss Per Share

Basic and diluted net loss per common share is computed based upon the weighted average common shares outstanding as defined by Financial Accounting Standards No. 128, “Earnings Per Share.” There are no dilutive securities outstanding as of June 30, 2008.

(I) Recent Accounting Pronouncements

In September 2006, the FASB issued SFAS No. 157, “Fair Value Measurements”. The objective of SFAS 157 is to increase consistency and comparability in fair value measurements and to expand disclosures about fair value measurements. SFAS 157 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. SFAS 157 applies under other accounting pronouncements that require or permit fair value measurements and does not require any new fair value measurements. The provisions of SFAS No. 157 are effective for fair value measurements made in fiscal years beginning after November 15, 2007. The adoption of this statement did not have a material effect on the Company's future reported financial position or results of operations.

In February 2007, the Financial Accounting Standards Board (FASB) issued SFAS No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities – Including an Amendment of FASB Statement No. 115.” This statement permits entities to choose to measure many financial instruments and certain other items at fair value. Most of the provisions of SFAS No. 159 apply only to entities that elect the fair value option. However, the amendment to SFAS No. 115 “Accounting for Certain Investments in Debt and Equity Securities” applies to all entities with available-for-sale and trading securities. SFAS No. 159 is effective as of the beginning of an entity’s first fiscal year that begins after November 15, 2007. The adoption of this statement did not have a material effect on the Company's financial statements.

BEDMINSTER FINANCIAL CORP.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO FINANCIAL STATEMENTS

AS OF JUNE 30, 2008

In December 2007, the FASB issued SFAS No. 160, “Noncontrolling Interests in Consolidated Financial Statements, an Amendment of ARB No. 51” (“SFAS 160”). SFAS 160 amends ARB 51 to establish accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. An ownership interest in subsidiaries held by parties other than the parent should be presented in the consolidated statement of financial position within equity, but separate from the parent’s equity. SFAS 160 requires that changes in a parent’s ownership interest while the parent retains its controlling financial interest in its subsidiary should be accounted for similarly as equity transactions. When a subsidiary is deconsolidated, any retained noncontrolling equity investment in the former subsidiary should be initially measured at fair value, with any gain or loss recognized in earnings. SFAS 160 requires consolidated net income to be reported at amounts that include the amounts attributable to both the parent and the noncontrolling interest. It also requires disclosure, on the face of the consolidated income statement, of the amounts of consolidated net income attributable to the parent and to the noncontrolling interests. SFAS 160 is effective for fiscal years (including interim periods within those fiscal years) beginning on or after December 15, 2008 (October 1, 2009 for the Company). Earlier adoption is prohibited. The statement shall be applied prospectively as of the beginning of the fiscal year in which it is initially applied, except for the presentation and disclosure requirement which shall be applied retrospectively for all periods presented. The Company is currently evaluating the impact SFAS 160 will have on its consolidated financial statements.

NOTE 2 RELATED PARTY TRANSACTIONS

The Company has entered into a management services agreement with Apogee Holdings Inc. (“Apogee”), a related party due to common ownership that became effective March 1, 2007. The management agreement ends December 31, 2017 and calls for an annual fee of $240,000 (which amount shall be increased by $5,000 when and if the Company’s revenues, based on the trailing twelve months over per forma basis, exceed $5,000,000 and there after increase by an additional $2,000 for each proforma revenue increase of $5,000,000), which management fee shall increase by no less then 5% annually. In the event of termination of services without cause, the agreement provides that the Company shall pay the amount of the balance of the term of the agreement up to a maximum of $250,000.

Apogee will also earn an annual bonus as follows: ten percent of the annual adjusted EBITDA based on the audited consolidated results of the Company. 40% of such bonus shall be paid in cash and the remaining 60% shall be paid in shares of Class A Common Stock of the Company based on an amount equal to 120% of the annual average stock price. Such shares shall be restricted from sale for a period of three years from the date that Apogee receives such bonus shares. Apogee will also be entitled to an additional bonus of $100,000 in cash if and when the Company becomes a separate publicly traded entity, provided that the Board shall determine that the Company has sufficient funds to pay such bonus or any portion of such bonus from time to time. For the six months ended June 30, 2008, the Company has included in professional fees $126,000 under the management agreement and $0 has been waived by Apogee. For the period January 16, 2007 (inception) to June 30, 2008, the Company has incurred fees of $230,500 under the management agreement and no fees were waived by Apogee during the second quarter of 2008.

At June 30, 2008, the Company had a $5,000 note payable due to Bedminster National Corp used for operating expenses. (“BNC”). There are no definite repayment terms associated with the note. BNC is the former parent of the Company (see Note 1).

NOTE 3 LINES OF CREDIT

In January 2007, Signature Bank approved a $100,000 line of credit for the Company. In November 2007 the line of credit was increased to $200,000. The line bears interest at a rate of 1% above the Wall Street Journal prime rate (5% as of June 30, 2008) on all outstanding amounts and requires monthly payments of 1/36 of all principal amounts outstanding under the line plus interest. The line of credit is secured by all the assets of the Company and the Company’s former parent has also guaranteed repayment of the line. The CEO, Paul Patrizio, has also personally guaranteed repayment of the line. As of June 30, 2008, there is $197,926 outstanding under the line (including accrued interest).

BEDMINSTER FINANCIAL CORP.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO FINANCIAL STATEMENTS

AS OF JUNE 30, 2008

NOTE 4 COMMITMENTS AND CONTINGENCIES

(A) Management Service Agreement

The Company has entered into a management services agreement with Apogee Holdings Inc. (“Apogee”), a related party due to common ownership, that became effective March 1, 2007 (see Note 2).

NOTE 5 GOING CONCERN

As reflected in the accompanying financial statements, the Company is in the development stage, has an accumulated deficit from inception of $478,405, negative working capital of $390,482, and has a negative cash flow from operations of $195,775 from inception. This raises substantial doubt about its ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company’s ability to raise additional capital and implement its business plan. Management believes that actions presently being taken to obtain additional funding and implement its strategic plans may provide the opportunity for the Company to continue as a going concern. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

NOTE 6 STOCKHOLDERS’ DEFICIT

A one-for-ten reverse stock split was effected during April 2008. The Company retained the current par value of $.0001 per share for all shares or its Class A and Class B common stock. All references in the financial statements to the number of shares outstanding and per share amounts have been restated to reflect the effect of the reverse stock split for all periods presented. Stockholders’ deficit reflects the reverse stock split by reclassifying from “Common stock” to “additional paid in capital” an amount equal to the par value of the reduced shares arising from the reverse split.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 relating to future events or our future performance. Actual results may materially differ from those projected in the forward-looking statements as a result of certain risks and uncertainties set forth in this prospectus. Although management believes that the assumptions made and expectations reflected in the forward-looking statements are reasonable, there is no assurance that the underlying assumptions will, in fact, prove to be correct or that actual results will not be different from expectations expressed in this report.

Separation from Bedminster National

During August 2007, we were spun-off from our former parent Bedminster National. We are in the business of managing investment assets. Following the distribution, we are an independent public company and Bedminster National no longer maintains any stock ownership in us.

Plan of Operations

During the next twelve months, we expect to take the following steps in connection with the further development of our business and the implementation of our plan of operations:

Third Quarter 2008

We will attempt to raise $200,000 in debt financing for initial working capital. We expect that the $200,000 in debt financing will be a private placement to individual investors of short term notes personally guaranteed by management. The proceeds of the note offering would be used solely for beginning the process of funding our business and commence receiving any regulatory approvals.

Fourth Quarter 2008

During this quarter, we may seek investment partners in order to raise the necessary funds to further develop our business. Such partners include banks, investment funds and broker-dealers, and management intends to utilize its significant contacts among these entities to facilitate such a relationship. The funding will likely consist of a private placement of debt and/or our equity securities possibly through the assistance of a broker-dealer. We intend to sell only shares of Class A Common Stock or securities that are convertible into shares of Class A Common Stock and accordingly we believe that such a placement would not result in any change in our control. However, the specific amount, timing and terms of any such placement will not be known until an agreement has been executed by us and any potential investment partner.

First Quarter 2009

If we have the necessary approvals, we will seek out opportunities to provide investment and trust services and intend to enhance our capabilities by adding personnel or entering into joint ventures with other financial service firms. We intend to raise an additional $500,000 through debt or equity financing to support our efforts to hire additional staff during this period.

Second Quarter 2009

If we have not already completed the financing transaction during the third quarter, we intend to close on such additional financing for working capital and corporate overhead. We intend to actively recruit new board members with appropriate experience and hire a corporate staff including a chief financial officer.

Going Concern

As reflected in the accompanying financial statements, the Company is in the development stage, has an accumulated deficit from inception of $478,405, negative working capital of $390,482, and has a negative cash flow from operations of $195,775 from inception. This raises substantial doubt about its ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company’s ability to raise additional capital and implement its business plan. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

Management believes that actions presently being taken to obtain additional funding and implement its strategic plans may provide the opportunity for the Company to continue as a going concern

Results of Operations

From Inception, January 16, 2007, through June 30, 2008

Revenues

We had no revenues from inception through June 30, 2008.

Operating Expenses

Total operating expenses from inception through June 30, 2008 were $468,081 consisting of $449,096 for professional fees and $18,985 for general and administrative expenses. The cost and expenses from inception through June 30, 2008 were attributable primarily to professional fees incurred in connection with our formation and management fees and management fees as set forth below.

Net Loss

Our net loss from inception through June 30, 2008 was $478,405.

At June 30, 2008, the Company had a $5,000 note payable due to Bedminster National Corp. (“BNC”). BNC is the former parent of the Company (see Note 1).

Liquidity and Capital Resources

As of June 30, 2008 we had $ $10,524 in cash. In January 2007, Signature Bank approved a $100,000 line of credit for the Company. In November 2007 the line of credit was increased to $200,000. The line bears interest at a rate of 1% above the Wall Street Journal prime rate (5% as of June 30, 2008) on all outstanding amounts and requires monthly payments of 1/36 of all principal amounts outstanding under the line plus interest. The line of credit is secured by all the assets of the Company and the Company’s former parent has also guaranteed repayment of the line. The CEO, Paul Patrizio, has also personally guaranteed repayment of the line. As of June 30, 2008, there is $197,926 outstanding under the line (including accrued interest).

We believe we can not currently satisfy our cash requirements over the next twelve months with our current cash and our bank lines. However, management plans to obtain additional financing in order to sustain operations for at least the next twelve months. Also completion of our plan of operation is subject to attaining adequate revenue. We cannot assure investors that adequate revenues will be generated. In the absence of our projected revenues, we may be unable to proceed with our plan of operations. Even without significant revenues within the next twelve months, we still anticipate being able to continue with our present activities, but we may require financing to potentially achieve our goal of profit, revenue and growth.

In the event we are not successful in reaching our initial revenue targets, additional funds may be required, and we would not be able to proceed with our business plan for the development and marketing of our services. Should this occur, we would likely seek additional financing to support the continued operations of our business. We anticipate that depending on market conditions and our plan of operations, we would incur operating losses in the foreseeable future. We base this expectation, in part, on the fact that we may not be able to generate enough gross profit from our services to cover our operating expenses. Consequently, there is substantial doubt about the company’s ability to continue to operate as going concern.

On April 30, 2008, the board of directors and the holders of the majority of the Class B Common Stock of the Company approved a 1-for-10 reverse split of the Company’s issued and outstanding Class A and Class B Common Stock. The reverse split was effective on July 2, 2008. All share amounts have been updated in these financial statements to reflect the 1-for-10 reverse split.

Critical Accounting Policies

Our significant accounting policies are summarized in Note 1 of our financial statements.

We have adopted the following accounting standards. While all of these significant accounting policies impact our financial condition, our views of these policies are critical. Policies determined to be critical are those policies that have the most significant impact on our financial statements and require management to use a greater degree of judgment and estimates. Actual results may differ from those estimates. Our management believes that given current facts and circumstances, it is unlikely that applying any other reasonable judgments or estimate methodologies would cause effect on our results of operations, financial position or liquidity for the periods presented in this report:

Recent Accounting Pronouncements

In February 2007, the Financial Accounting Standards Board (FASB) issued SFAS No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities – Including an Amendment of FASB Statement No. 115”. This statement permits entities to choose to measure many financial instruments and certain other items at fair value. Most of the provisions of SFAS No. 159 apply only to entities that elect the fair value option. However, the amendment to SFAS No. 115 “Accounting for Certain Investments in Debt and Equity Securities” applies to all entities with available-for-sale and trading securities. SFAS No. 159 is effective as of the beginning of an entity’s first fiscal year that begins after November 15, 2007. Early adoption is permitted as of the beginning of a fiscal year that begins on or before November 15, 2007, provided the entity also elects to apply the provision of SFAS No. 157, “Fair Value Measurements”. The adoption of this statement did not have a material effect on the Company's financial statements.

In December 2007, the FASB issued SFAS No. 160, “ Noncontrolling Interests in Consolidated Financial Statements, an Amendment of ARB No. 51” (“ SFAS 160” ). SFAS 160 amends ARB 51 to establish accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. An ownership interest in subsidiaries held by parties other than the parent should be presented in the consolidated statement of financial position within equity, but separate from the parent’s equity. SFAS 160 requires that changes in a parent’s ownership interest while the parent retains its controlling financial interest in its subsidiary should be accounted for similarly as equity transactions. When a subsidiary is deconsolidated, any retained noncontrolling equity investment in the former subsidiary should be initially measured at fair value, with any gain or loss recognized in earnings. SFAS 160 requires consolidated net income to be reported at amounts that include the amounts attributable to both the parent and the noncontrolling interest. It also requires disclosure, on the face of the consolidated income statement, of the amounts of consolidated net income attributable to the parent and to the noncontrolling interests. SFAS 160 is effective for fiscal years (including interim periods within those fiscal years) beginning on or after December 15, 2008 (October 1, 2009 for the Company). Earlier adoption is prohibited. The statement shall be applied prospectively as of the beginning of the fiscal year in which it is initially applied, except for the presentation and disclosure requirement which shall be applied retrospectively for all periods presented. The Company is currently evaluating the impact SFAS 160 will have on its consolidated financial statements.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements, financings, or other relationships with unconsolidated entities or other persons, also known as “special purpose entities” (SPEs).

Item 3. Quantitative and Qualitative Disclosures about Market Risks

We conduct our business in United States dollars. Our market risk is limited to the United States domestic, economic and regulatory factors.

Item 4T. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Pursuant to Rule 13a-15(b) under the Securities Exchange Act of 1934 (“Exchange Act”), the Company carried out an evaluation, with the participation of the Company’s management, including the Company’s Chief Executive Officer (“CEO”) and Chief Accounting Officer (“CAO”) (the Company’s principal financial and accounting officer), of the effectiveness of the Company’s disclosure controls and procedures (as defined under Rule 13a-15(e) under the Exchange Act) as of the end of the period covered by this report. Based upon that evaluation, the Company’s CEO and CAO concluded that the Company’s disclosure controls and procedures are effective to ensure that information required to be disclosed by the Company in the reports that the Company files or submits under the Exchange Act, is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including the Company’s CEO and CAO, as appropriate, to allow timely decisions regarding required disclosure.

Management’s Report on Internal Controls over Financial Reporting

There were no changes in internal control over financial reporting that occurred during the fiscal period covered by this report that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

Currently we are not aware of any litigation pending or threatened by or against the Company.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities.

None

Item 4. Submission of Matters to a Vote of Security Holders.

None.

Item 5. Other Information.

None

Item 6. Exhibits and Reports of Form 8-K.

(a) Exhibits

31.1 Certifications pursuant to Section 302 of Sarbanes Oxley Act of 2002

32.1 Certifications pursuant to Section 906 of Sarbanes Oxley Act of 2002

(b) Reports of Form 8-K

None.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Bedminster Financial Corp

Date: August 4, 2008	By:	/s/ Paul Patrizio
		Paul Patrizio
		President, Chief Executive Officer, Chief Financial Officer