10-K 1 hybred10k20101231.htm HYBRED INTERNATIONAL, INC. FORM 10-K DECEMBER 31, 2010 hybred10k20101231.htm




HYBRED INTERNATIONAL, INC.
(A Developmental Stage Company)



U.S. SECURITIES AND EXCHANGE COMMISION
WASHINGTON, D.C. 20549

FORM 10-K
 
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE
ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2010.
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934.
For the transition period from________ to ________
 
Commission File Number 033-17774-NY
Hybred International, Inc.
(Name of Small Business Issuer in Its Charter)
 
 
COLORADO
 
93-0955290
(State or Other Jurisdiction of
 
(I.R.S. Employer Identification No.)
In Company)
   
     
330 W. Pleasantview Avenue, Suite 163
140 58th Street, Suite 8E
 
(201) 788-3785
Hackensack, NJ 07601
 
(Issuer’s Telephone Number,
(Address of Principal Executive Offices)
 
Including Area Code)

Securities registered under Section 12(b) of the Exchange Act: NONE

Securities registered under Section 12(g) of the Act: Common Stock, $.001 Par Value Per Share

Indicate by check mark if Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.  Yes No x

Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act.  Yes No x

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) 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 definitions of “large accelerated filer,”  “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (check one):

Large accelerated filer   
Accelerated filer 
Non-accelerated filer    
Smaller reporting company x
(do not check if a smaller reporting company)
 
 
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Indicate by check mark if there is no disclosure of delinquent filers in response to Item 405 of Regulation S-B contained in this form and no disclosure will be contained, to the best of Registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. Yes No x

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

State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold. (September 21, 2011) $33,073.
 


Indicate the number of shares outstanding of each of the Registrant’s classes of common stock, as of the latest practicable date: On September 21, 2011, the Registrant had 169,365,519 shares of common stock issued and outstanding.

DOCUMENTS INCORPORATED BY REFERENCE
 
List hereunder the following documents if incorporated by reference and the Part of the Form 10-K (e.g., Part I, Part II, etc.) into which the document is incorporated: (1) Any annual report to security holders; (2) Any proxy or information statement; and (3) Any prospectus filed pursuant to Rule 424(b) or (e) under the Securities Act of 1933.

None

 
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HYBRED INTERNATIONAL, INC.
A Developmental Stage Company
INDEX TO FORM 10-K

 
Page
   
PART I
4
   
ITEM 1.
DESCRIPTION OF BUSINESS
4
ITEM 1A.
RISK FACTORS
5
ITEM 1B.
UNRESOLVED STAFF COMMENTS
5
ITEM 2.
DESCRIPTION OF PROPERTY
5
ITEM 3.
LEGAL PROCEEDINGS
5
ITEM 4.
SUBMISSION OF MATTERS TO A VOTE OF THE SECURITY HOLDERS
6
     
PART II
6
   
ITEM 5.
MARKET FOR COMMON EQUITY, RELATED STOCKHOLDER MATTERS
6
ITEM 6.
SELECTED FINANCIAL DATA
6
ITEM 7.
MANAGEMENT’S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
7
ITEM 7A.
QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
10
ITEM 8.
FINANCIAL STATEMENTS
10
ITEM 9.
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
10
ITEM 9A.
CONTROLS AND PROCEDURES
10
ITEM 9B.
OTHER INFORMATION
12
   
PART III
12
   
ITEM 10.
DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE
12
ITEM 11.
EXECUTIVE COMPENSATION
14
ITEM 12.
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
   14
ITEM 13.
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
15
ITEM 14.
PRINCIPAL ACCOUNTANT FEES AND SERVICES
15
   
PART IV
16
     
ITEM 15.
EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
16
   
SIGNATURES
 

References in this Annual Report to, the terms “Company”, HYBRED”,we”, “us” and “our” refer to Hybred International, Inc., unless otherwise stated or the context clearly indicates otherwise.

 
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     HYBRED INTERNATIONAL, INC.
(A Developmental Stage Company)

PART I


Forward Looking Statements

This report contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “1934 Act”) and Section 27A of the Securities Act of 1933 (the “1933 Act”). Any statements contained in this report that are not statements of historical fact may be forward-looking statements. When we use the words “anticipates,” “plans,” “expects,” “believes,” “should,” “could,” “may,” “will” and similar expressions, we are identifying forward-looking statements. Further, all statements that express expectations, estimates, forecasts or projections are forward-looking statements within the meaning of the 1933 Act and 1934 Act, respectively. Forward-looking statements involve risks and uncertainties, which may cause our actual results, performance or achievements to be materially different from those expressed or implied by forward-looking statements.  These factors include our limited experience with our business plan; pricing pressures on our product caused by competition; the risk that our products will not gain market acceptance; our ability to obtain additional financing; our ability to protect intellectual property; and our ability to attract and retain key employees.

Except as may be required by applicable law, we do not undertake or intend to update or revise ourforward-looking statements, and we assume no obligation to update any forward-looking statementscontained in this report as a result of new information or future events or developments. Thus, you should not assume that our silence over time means that actual events are bearing out as expressed or implied in such forward-looking statements. You should carefully review and consider the various disclosures we make in this report and our other reports filed with the Securities and Exchange Commission (“SEC”) that attempt to advise interested parties of the risks, uncertainties and other factors that may affect our business.

Item 1.        Description of Business

Temporary Time Capital Corp., Inc., a corporation organized under the laws of the State of Colorado, was a shell company with no or nominal business operations. On January 31, 2008, the Company entered into a merger agreement with Hybred International, Inc., a corporation organized under the laws of the State of New Jersey. No prior relationship between the companies, or any natural person, is known to have existed.

The merger agreement was filed and was effective within the State of Colorado on February 7, 2008, and was effective within the State of New Jersey on February 27, 2008.
 
The merger agreement (the “Agreement”) stipulated that the companies would merge and the surviving entity would be Temporary Time Capital Corp., Inc.. Temporary Time Capital Corp., Inc. would then change its name to Hybred International, Inc. (the name of the New Jersey entity that merged into the Colorado entity, with the result that one entity with the name of Hybred International, Inc. with the business operations of the original New Jersey entity would be registered to do business in the States of New Jersey and Colorado).

 
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HYBRED INTERNATIONAL, INC.
(A Developmental Stage Company)

PART I


 
Item 1.
 Description of Business (continued)

The shareholders of the former Hybred International, Inc. had their shares exchanged 1:1 into the new entity. The shareholders of the former Temporary Time Capital Corp., Inc. retained their holdings 1:1. The authorized number of shares in the new Hybred International, Inc. was increased to 120,000,000 (from 50,000,000) to allow for the distribution to the shareholders of the former Hybred International, Inc.

As part of the Agreement, the Directors and officers of Temporary Time Capital Corp., Inc. resigned and the officers and Directors of the former Hybred International, Inc. are now the officers and Directors of the new Hybred International, Inc.

The former (prior to merger) Hybred International, Inc. has developed and intends to produce and market a revolutionary therapeutic horseshoe, which contains an injection molded urethane composition into the shoe designed to reduce the concussive effect of horses’ hooves on surfaces such as concrete, asphalt and rock hard race tracks, thus reducing the chances of a horse developing a hoof injury, which comprise approximately 90% of all equine injuries.

The new (post merger) Hybred International, Inc. has acquired the business operations of the former Hybred International, Inc. which consists mainly of research and development and resultant intellectual property necessary to manufacture (or cause to be manufactured) the therapeutic horseshoe and the knowledge of the equine industry of the pre-merger Hybred’s officers and directors.

In November 2009, the Board of Directors voted to increase the number of authorized shares to 200,000,000. In June 2010, the Board of Directors voted to further increase the number of common shares authorized to 500,000,000 shares.

Item 1A.     Risk Factors

The Company is a “smaller reporting company” as defined by Regulation S-K and as such, are not required to provide the information contained in this item pursuant to Regulation S-K.

Item 1B.     Unresolved Staff Comments

The Company is a “smaller reporting company” as defined by Regulation S-K and as such, are not required to provide the information contained in this item pursuant to Regulation S-K.

Item 2.        Description of Property

The Company recorded rental expense of $4,600 representing payment for office space and facilities.

Item 3.        Legal Proceedings

The Company is not a party to, or the subject of any material pending legal proceedings.

 
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HYBRED INTERNATIONAL, INC.
(A Developmental Stage Company)

PART I


Item 4.        Submission of Matters to Vote of Security Holders

No matters were submitted to shareholders during the fourth quarter for the year ended December 31,2010.


PART II

Item 5.        Market for Common Equity and Related Stockholder Matters

The common stock of the Company (the “common stock”) is traded in the Over-The-Counter Marketand is quoted on the National Association of Securities Dealers Automated Quotation (“NASDAQ”)System Bulletin Board and the Electronic Bulletin Board (OTCBB) under the symbol “HYII”.

Market Information
 
The range of high and low bid prices for the Company’s common stock, for the periods indicated, are setforth below.

Year
 
High Bid
   
Low Bid
 
             
Year ended December 31, 2010 (*)
           
             
1st Quarter
  $ 0.0040     $ 0.0033  
2nd Quarter
  $ 0.0007     $ 0.0007  
3rd Quarter
  $ 0.0004     $ 0.0004  
4th Quarter
  $ 0.0004     $ 0.0004  
                 
Year ended December 31, 2009 (*)
               
                 
1st Quarter
  $ 0.1000     $ 0.0200  
2nd Quarter
  $ 0.2600     $ 0.0020  
3rd Quarter
  $ 0.1400     $ 0.0015  
4th Quarter
  $ 0.0095     $ 0.0021  
 
(*) As reported by the OTCBB.

The above quotations, as reported, represent prices between dealers and do not include retail mark-ups, mark-downs or commissions.  Such quotations do not necessarily represent actual transactions.

On September 21, 2011, the high bid for the common stock was $0.0002 and the low bid was $0.0002

Item 6.        Selected Financial Data

 
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We are a “smaller reporting company” as defined by Regulation S-K and as such, are not required toprovide the information contained in this item pursuant to Regulation S-K.

HYBRED INTERNATIONAL, INC.
(A Developmental Stage Company)

PART II

Item 7.        Management’s Discussion and Analysis of Financial Condition and Results of Operations

Statements contained in this report, which are not historical facts, may be considered forward lookinginformation with respect to plans, projections, or future performance of the Company as defined underthe Private Securities Litigation Act of 1995. These forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those projected. The words “anticipate”, “believe”, “estimate”, “expect”, “objective”, and “think” or similar expressions used herein are intended to identify forward-looking statements. The forward-looking statements are based upon the Company’s current views and assumptions and involve risks and uncertainties that include, among other things, the effects of the Company’s business, actions of competitors, changes in laws and regulations, including accounting standards, employee relations, customer demand, prices of purchased material and parts, domestic economic conditions, including housing starts and changes in consumer disposable income, and foreign economic conditions, including currency rate fluctuations. Some or all of the facts are beyond the Company’s control.

The following discussion and analysis should be read in conjunction with our audited financialstatements and related footnotes included elsewhere in this report, which provide additional informationconcerning the Company’s financial activities and condition.

Critical Accounting Policies

The financial statements have been prepared in accordance with accounting principles generallyaccepted in the United States of America, which require the Company to make estimates andassumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, and revenue and expenses during the periods reported. Actual results could differ from those estimates. The Company believes the following are the critical accounting policies which could have the most significant effect on the Company’s reported results and require the most difficult, subjective or complex judgments by management

 
·
Impairment of Long-Lived Assets:

The Company reviews its long-lived assets for impairment whenever events or circumstancesindicate that the carrying amount of an asset may not be recoverable. If the sum of the expected
cash flows, undiscounted and without interest, is less than the carrying amount of the asset, animpairment loss is recognized as the amount by which the carrying amount of the asset exceeds
its fair value. The Company makes estimates of its future cash flows related to assets subject toimpairment review.

 
·
Income Taxes

The Company records a liability for potential tax assessments based on its estimate of the potential exposure. Due to the subjectivity and complex nature of the underlying issues, actual payments or assessments may differ from estimates. Income tax expense in future periods could be adjusted for the difference between actual payments and the Company's recorded liability based on its assessments and estimates.

 
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HYBRED INTERNATIONAL, INC.
(A Developmental Stage Company)

PART II


Item 7.
 Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

 
 
·
Revenue Recognition

The Company, a developmental stage company has not yet generated any revenues to date with the exception of one sale of a prototype horseshoe.

 
·
Research and Development

The Company is engaged in the research and development of therapeutic horseshoes whereby theCompany utilizes urethane compound which is bonded to an aluminum horseshoe using aproprietary method. The Hybred Horseshoe’s design features contain side clips which act to further secure the shoe to the hoof, nail holes with a recess in the shoe, thus making it easier to remove the shoe at any time and a toe plate for longer wear. The shoe’s compatible design features allow the farrier to use traditional shoeing methods. The Hybred Horseshoe is expected to retail between $22 and $25 per pair.

The Company had filed for a provisional patent for the Hybred Horseshoe in 2007. The Company has expended approximately 1,000 hours researching and developing the Hybred Horseshoe. No knowngovernmental approval is expected for the Hybred Horseshoe and no known governmental regulation is expected to impact the Hybred Horseshoe at this time.

For the year ended December 31, 2010, the Company expended $110 in research and development activities.

 
·
Going Concern

The accompanying financial statements have been prepared assuming that the Companywill continue as a going concern which contemplates the realization of assets and thesatisfaction of liabilities in the normal course of business. The Company has incurredoperating losses and negative operating cash flow since inception and future losses are anticipated. The Company’s plan of operations, even if successful, may not result in cash flow sufficient to finance and expand its business. These factors raise substantial doubt about the Company’s ability to continue as a going concern.

Realization of assets is dependent upon continued operations of the Company, which inturn is dependent upon management’s plans to meet its financing requirements and thesuccess of its future operations. The ability of the Company to continue as a going concernis dependent on improving the Company’s profitability and cash flow and securing additional financing. While the Company believes in the viability of its strategy to generate revenues and profitability and in its ability to raise additional funds, and believes that the actions presently being taken by the Company provide the opportunity for it to continue as a going concern, there can be no assurances to that effect. These financial statements do not include any adjustments related to the recoverability and classification of asset amounts or the amounts and classification of liabilities that might be necessary if the Company is nable to continue as a going concern.

 
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HYBRED INTERNATIONAL, INC.
(A Developmental Stage Company)

PART 1I


Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
(continued)

 
·
Plan of Operation

The Company entered into an agreement with Thoro’bred, Inc., a California manufacturer of horseshoes, in March 2007(“Thoro’bred Contract”), whereby Thoro’bred agreed to manufacture the Hybred Horseshoe in such quantities and at such times as the Company may request. Under the Thoro’bred Contract, the Company is obligated to supply Thoro’bred with the necessary tooling and accompanying designs and specifications. The manufacturing cost to the Company will initially range between $8.25 and $8.45 per pair of shoes, exclusive of the urethane inserts.

The Company anticipates that the initial start up costs relating to the manufacture of the shoes will approximate $150,000. The Company is presently negotiating with a private investor to supply the requisite working capital and it anticipates that it will receive funding within the near future at which time it plans to commence manufacturing.

       ·      Liquidity and Capital Resources
 
 
The Company is a developmental stage company and has not generated any revenues to date with the exception of one sale of a prototype horseshoe in 2009.
 
 
The Company has maintained operating activities to date by raising funds through the unregistered sale of its securities and borrowings from shareholders and third parties.

 
·
Consultant Agreement

On December 25, 2009, The Company entered into an agreement with Brett Hamburger whereby he would attempt to introduce the Company to potential investors for the purpose of procuring funding for the Company. Additionally, he will advise the Company on general business development.

The agreement shall be in effect for a period of two years ending on December 24, 2011 and provides for monthly payments of $5,000 over the term of the contract.

 
·
Off-Balance Sheet Arrangements

The Company does not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.
 
 
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HYBRED INTERNATIONAL, INC.
(A Developmental Stage Company)

PART 1I


Item 7A.     Quantitative and Qualitative Disclosure About Market Risk
The Company is a “smaller reporting company” as defined by Regulation S-K and as such, are not required to provide the information contained in this item pursuant to Regulation S-K.

Item 8.        Financial Statements

See index to financial statements appearing on page 18.

Item 9.
Changes in and Disagreements with Accountants on Accounting and Financial Disclosures

None


Item 9A.    Controls and Procedures

 
Evaluation of Disclosure Controls and Procedures

The Company’s Chief Executive Officer has evaluated the effectiveness of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)). In designing and evaluating the disclosure controls and procedures, the principal executive officer recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

Based upon that evaluation, our Chief Executive Officer has concluded that as of the end of the period covered by this report the disclosure controls and procedures were effective to provide reasonable assurance that information required to be disclosed in the reports that we file and submit under the Exchange Act is (i) recorded, processed, summarized and reported as and when required and (ii) accumulated and communicated to our principal executive officer, as appropriate to allow timely discussions regarding disclosure.

Under the supervision of the principal executive officer, we conducted an assessment of theeffectiveness of our internal control over financial reporting based upon the framework inInternal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based upon this assessment, the principal executive officer has concluded that our internal control over financial reporting is effective as of December 31, 2009.

Management’s report on Internal Controls over Financial Reporting

Our management, under the supervision of our Chief Executive Officer, is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act). Our internal control over financial reporting is a process designed by, or under the supervision of our principal executive officer, or persons performing similar functions, and effected by our Board of Directors, management and other personnel, to provide reasonable

 
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HYBRED INTERNATIONAL, INC.
(A Developmental Stage Company)


Item 9A.    Controls and Procedures (continued)

Evaluation of Disclosure Controls and Procedures (continued)
 
assurance regarding the reliability of financial reporting and the preparation of financial statement for external purposes in accordance with generally accepted accounting principles. The Company’s internal control over financial reporting includes those policies and procedures that:

(i)  pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;

 (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation
of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the Company; and

(iii) provide reasonable assurance regarding prevention or timely detection of unauthorized    acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements.

Our Chief Executive Officer, conducted an evaluation of the effectiveness of our internal control over financial reporting as of December 31, 2010. In making this evaluation, management used the framework in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on our evaluation under the framework in Internal Control – Integrated Framework, our management has concluded that our internal control over financial reporting was effective as of December 31, 2010.

This annual report on Form 10-K does not include an attestation report of our independent register public accounting firm regarding our internal control over financial reporting. Management’s report was not subject to attestation by our registered public accounting firm pursuant to temporary rules of the SEC that permit us to provide only management’s report in this Annual Report.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Changes in Internal Control over Financial Reporting

There was no change in our system of internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) during our fiscal year ended December 31, 2010 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
 
 
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HYBRED INTERNATIONAL, INC.
(A Developmental Stage Company)




Item 9A.     Controls and Procedures (continued)

Inherent Limitations on Effectiveness of Controls

We do not expect that internal controls over financial reporting will prevent all errors or all instances of fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system’s objectives will be met. Further, the design of a control
 
Evaluation of Disclosure Controls and Procedures (continued)

system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within its company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Controls can also be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls.

The design of any system of controls is based in part upon certain assumptions about the likelihood of future events, and any design may not succeed in achieving its stated goals under all potential future conditions. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies or procedures. Because of the inherent limitation of a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

Other Information Related to Internal Controls

Historically, the Company has relied upon the entire Board of Directors in appointing the Company’s independent auditors and reviewing the financial condition and statements of the Company.  Given the relatively small size of the Company’s operations and revenues, the Board has not believed that appointing an independent committee was a necessity.

Item 9B.    Other Information

None.
 
 
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HYBRED INTERNATIONAL, INC.
(A Developmental Stage Company)


PART III


Item 10.     Directors, Executive Officers, Promoters and Control Persons; Compliance with Section 16
(a) of the 1934 Exchange Act

Officers and Board of Directors

The Company’s Board of Directors consists of Gary Kouletas and an independent director, Paul Stitzer.

Mr. Kouletas was the founder of Hybred International, Inc. He has over ten years of entrepreneurial startup business owner experience. Mr. Kouletas attended William Paterson University and Montclair    University, both in New Jersey. After College, Mr. Kouletas became operating partner of Kouletas Real Estate, a commercial property management company. He then went on to develop Kouletas Construction, a town home development company in southern New Jersey. Mr. Kouletas has been involved in the horseshoe manufacturing business for the past seven years. From 2002-2005 Mr. Kouletas served as a consultant to International Surfacing, Inc., a research and development company,  concentrating on the development of a rubberized horseshoe and rubber metal bonding. He has designed
numerous therapeutic and innovative horseshoes and corroborated with top industry professionals to create and bring to market the Hybred Horseshoe.

Mr. Stitzer spent the majority of his career in the electronics industry. Mr. Stitzer initially acquired A &         M Instruments, Inc. from Local Corporation. As the chief executive officer and chairman of the Board of Directors, he built A & M into a leading supplier to the U.S. Government of analog meters for the military. A & M was acquired by Hawker Sidley, a British conglomerate, in 1986. Mr. Stitzer thereafter became an officer and director of Voltampere Corporation, a cutting edge power supply company which was sold to Dynarad Corporation in 1991. Mr. Stitzer is presently residing in Boca Raton, Florida and continues to consult with various companies in the area of corporate finance.

All directors serve for a term of one year or until their successors are duly elected. All officers serve at the discretion of the Board of Directors.

Since the Board of Directors has historically and will in the immediate future consist of only asmall number of members, we have not formed any Board Committees.  All matters relating toaudit, compensation, nominations and corporate governance are considered and acted upon by the entire Board of Directors.

Promoters
 
(None)

Certain Reports
 
Section 16(a) of the Securities Exchange Act of 1934 requires the Company’s directors and officers and persons who own, directly or indirectly, more than 10% of a registered class of the Company’s equity securities, to file with the SEC reports of ownership and reports of changes in ownership of common stock of the Company.
 
 
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HYBRED INTERNATIONAL, INC.
(A Developmental Stage Company)

PART III

Item 10.     Directors, Executive Officers, Promoters and Control Persons; Compliance with Section 16
(a) of the 1934 Exchange Act (continued)

Certain Reports (continued)

Officers, directors and greater than 10% shareholders are required to furnish the Company with copies of all Section 16(a) reports that they file. Based solely on review of the copies of such reports received
by the Company, the Company believes that filing requirements applicable to officers, directors and 10% shareholders were complied with during the year ended December 31, 2010.


Item 11.
Executive Compensation

(None)

Item 12.     Security Ownership of Certain Beneficial Owners and Management

The following table sets forth certain information as of December 31, 2010 with respect to (i) thepersons (including any "group" as that term is used in Section 13(d)(3) of the SecuritiesExchange Actof 1934), known by the Company to be the beneficial owner of more than five percent (5%) of any class of the Company's voting securities; (ii) the Executive Officer and Directors who own common stock in the Company; and (iii) the  Executive Officer and Directors as a group.  As of December 31, 2010 there were 169,365,519 shares of common stock issued and outstanding.

 
 
 
Title of Class
 
 
Name and Address of Beneficial Owner
 
Amount of and Nature of Beneficial Ownership
   
 
Percentage of Class
 
Common Stock
$.001 Par Value
Gary Kouletas
370 W. Pleasantview Ave
Hackensack, NJ 07601
    63,515,043       38 %
 
Paul Stitzer
20220 Boca West Drive
Boca Raton, Fl 33434
    250,000       *  
All Officers & Directors as a Group
(3 in number)
    63,765,043       38 %
        ______________________
        * Less than 1%.

All shares set forth above are owned directly by the named individual unless otherwise stated.
 
 
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HYBRED INTERNATIONAL, INC.
(A Developmental Stage Company)

PART III


Item 13.      Certain Relationships and Related Transactions

As of December 31, 2008, the Company’s President had loaned the Company $5,244 on a non-interest bearing basis to provide funding for certain operating expenses. As of December 31,2009, this amount had been repaid. Additionally, during 2007, a Director and shareholder of the Company loaned the Company $8,000 on a non-interest bearing basis in order to provide the Company with working capital. In July 2008 this same individual loaned the Company an additional $5,000 to be used for working capital. As of December 31, 2010, the Company had repaid $7,000 to this individual, leaving a balance due him of $6,000.


Item 14.      Principal Accountant Fees and Services

The Board of Directors of Hybred has selected Jerome Rosenberg CPA, P.C. as theindependent auditor of Hybred for the year ending December 31, 2010.  Shareholders are notasked to approve such selection because such approval is not required.  The audit services provided by Jerome Rosenberg CPA, P.C. consist of examination of financial statements, services relative to filings with the SEC, and consultation in regard to various accounting matters.  A member of the firm is expected to be present at the next meeting of shareholders, will have the opportunity to make a statement if he so desires, and will be available to respond to appropriate questions.

Audit Fees.  During the year ended December 31, 2010, Hybred incurred an aggregate of $7,500 to Jerome Rosenberg CPA, P.C. for fees related to the audit of its financial statements.

Audit Related Fees. During the year ended December 31, 2010, no fees were paid to Jerome Rosenberg CPA, P.C. with respect to financial systems design or implementation.

Tax Fees.  During the year ended December 31, 2010, the Company incurred to Jerome Rosenberg CPA, P.C. the sum of $500 for tax compliance, tax advice and tax planning services.

All Other Fees.  During the fiscal year ended December 31, 2010, Hybred did not pay any other fees for services to its auditor.

The Board of Directors has determined that the services provided by Jerome Rosenberg CPA,P.C. and the fees incurred to it for such services during the year December 31, 2010 has notcompromised the independence of Jerome Rosenberg CPA, P.C.
 
 
-15-

 

HYBRED INTERNATIONAL, INC.
(A Developmental Stage Company)

PART IV



Item 15.     Exhibits
 
Exhibits filed with Form 10-K:

The financial statements referred to in Part II, Item 8 of this Annual Report appear on pages 18 to 30.

 31.1 Certification of Principal Executive Officer  pursuant to Section17 CFR 240.13a-14(a) or 17 CFR 240.15d-14(a).

32.1 Certification by Principal Executive Officer, pursuant to 17 CFR 240.13a-14(b) or 17 CFR 240.15d-14(b) and Section 1350 of Chapter 63 of Title 18 of the United States Code.
 
 
-16-

 




SIGNATURES



In accordance with the requirements of the Exchange Act, the Registrant has duly caused this Report on Form 10-K to be signed on its behalf by the undersigned, thereunto duly authorized.




 
HYBRED INTERNATIONAL, INC.
 
               (Registrant)
   
   
   
October 5, 2011
 
   
   
 
/s/ Gary Kouletas
 
President (Principal Executive Officer)
 
 
-17-

 
 
HYBRED INTERNATIONAL, INC.
 (A Developmental Stage Company)

AUDITED FINANCIAL STATEMENTS
 


CONTENTS


 
Page
   
Report of Independent Registered Public Accounting Firm
19
   
Balance sheets as of December 31, 2010 and December 31, 2009
20
   
Statements of operations for the years ended December 31, 2010 and December 31, 2009
21
   
Statements of changes in stockholders’ equity for the years ended
22
   
Statements of cash flows for the years ended December 31, 2010 and December 31, 2009
23
   
Notes to financial statements
24
 
 
-18-

 


Report of Independent Registered Public Accounting Firm



Board of Directors
Hybred International, Inc.

We have audited the accompanying balance sheets of Hybred International, Inc.(A Developmental StageCompany) as of December 31, 2010 and December 31, 2009 and the related statements of operations,holders’ equity, and cash flows for eachof the two years then ended.  These financial statements are the responsibility of the Company’s management.  Our responsibility is to express an opinion on these financial statements based upon our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting OversightBoard (United States).  Those standards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of material misstatement. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting.  Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Hybred International, Inc (A Developmental Stage Company) as of December 31, 2010 and December 31, 2009 and the results of its operations and its cash flows for the years then ended in  conformity with U.S. generally accepted accounting principles.

The accompanying financial statements have been prepared assuming that Hybred International, Inc. (ADevelopmental Stage Company) will continue as a going concern. As discussed in Note 3 to the financialstatements, The Company’s cumulative losses during the development period, and the need to obtain substantial additional funding to complete its development, raises substantial doubt about its ability to continue as a going concern. Management’s plans in regard to these matters are also described in Note 3. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 
/s/Jerome Rosenberg CPA, P.C.
 
Jerome Rosenberg CPA, P.C.
 
 Melville, New York
 
September 22, 2011

 
-19-

 

(H HYBRED INTERNATIONAL, INC.
A Developmental Stage Company)
BALANCE SHEETS

As of December 31, 2010 and December 31, 2009


ASSETS
 
             
   
December 31,
   
December 31,
 
   
2010
   
2009
 
CURRENT ASSETS:
           
Cash in bank
  $ -     $ 4,725  
                 
Total current assets
    -       4,725  
                 
FIXED ASSETS:
               
Tools and Dies (Note 4)
    13,036       13,036  
Less: accumulated depreciation
    (7,731 )     (5,867 )
                 
           Net fixed assets
    5,305       7,169  
                 
           Total assets
  $ 5,305     $ 11,894  


LIABILITIES AND STOCKHOLDERS’ EQUITY
 
             
LIABILITIES:
           
Accounts payable
  $ 118,863     $ 50,863  
Cash overdraft
    317       -  
NJ Corporation business tax payable
    1,500       1,000  
Loans payable (Note 5)
    27,900       17,900  
   Due to-shareholders (Note 6)
    9,146       6,000  
Accrued interest payable
    6,990       5,244  
Deferred income (Note 7)
    17,500       17,500  
                 
Total liabilities
    182,216       98,507  
                 
STOCKHOLDERS’ EQUITY:
               
   Common stock, par value $.001 per share; authorized 500,000,000 shares at December 31, 2010 and 200,000,000 shares authorized at December 31, 2009. Issued and outstanding, 169,365,519 shares at December 31, 2010 and at December 31, 2009
        169,366           169,366  
   Preferred stock, no par value, authorized 1,000,000 shares, none issued and outstanding as of December 31, 2010 and
December 31, 2009
      -         -  
Retained earnings (deficit)
    (346,277 )     (255,979 )
                 
Total stockholder’s equity
    (176,911 )     (86,613 )
                 
Total liabilities and stockholder’s equity
  $ 5,305     $ 11,894  


The accompanying notes and independent auditors’ report should be read in conjunction with these financial   statements

 
-20-

 

 
HYBRED INTERNATIONAL, INC.
 (A Developmental Stage Company)
STATEMENTS OF OPERATIONS

For the Years Ended December 31, 2010 and December 31, 2009

   
December 31,
   
December 31,
 
   
2010
   
2009
 
REVENUES:
           
Revenues
  $ -     $ 7,500  
                 
                 
EXPENSES:
               
Farrier expense
    2,335       -  
Bank service charge
    847       144  
Research and Development
    110       -  
Auto expense
    1,562       1,078  
Postage and shipping
    358       253  
Office maintenance and supplies
    3,476       2,745  
Telephone
    1,846       1,115  
Meals and entertainment
    2,592       4,144  
Travel
    162       -  
Promotional expense
    -       3,692  
Website expenses
    -       143  
Rent
    4,600       -  
Accounting fees
    8,000       3,000  
Transfer agent fees
    275       4,300  
Legal fees
    -       15,648  
Consultants
    60,000       -  
Depreciation expense – tools and dies
    1,864       1,864  
Filing fee
    25       100  
NJ Corporation tax
    500       500  
Interest expense
    1,746       1,646  
                 
Total expenses
    90,298       40,372  
                 
Operating deficit
    (90,298 )     (36,007 )
                 
Loss on negotiated debt settlement (Note 11)
    -       (26,100 )
                 
Net (loss)
  $ (90,298 )   $ (62,107 )
 
The accompanying notes and independent auditors’ report should be read in conjunction with these financial statements

 
-21-

 


HYBRED INTERNATIONAL, INC.
 (A Developmental Stage Company)
STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

For the Years Ended December 31, 2010 and December 31, 2009


         
Additional
         
Retained
       
   
Common Stock
   
Paid in
   
Preferred Stock
   
Earnings
       
   
Shares
   
Amount
   
Capital
   
Shares
   
Amount
   
(Deficit)
   
Total
 
Balances at December 31, 2008
    119,815,519     $ 119,816     $ 18,450     $ -     $ -     $ (193,872 )   $ (55,606 )
                                                         
Conversion of existing loan payable of $5,000
into common stock by issuing 49,550,000 shares
(Note 10 and 11)
      49,550,000         49,550       (18,450 )       -         -       (26,100 )         5,000  
                                                         
Net loss of the year ended December 31, 2009
    -       -       -       -       -       (36,007 )     (36,007 )
                                                         
Balances at December 31, 2009
    169,365,519       169,366       -       -       -       (255,979 )     (86,613 )
                                                         
Net loss for the year ended December 31, 2010
    -       -       -       -       -       (90,298 )     (90,298 )
                                                         
Balances at December 31, 2010
    169,365,519     $ 169,366     $ -     $ -     $ -     $ (346,277 )   $ (176,911 )
 
The accompanying notes and independent auditors’ report should be read in conjunction with these financial statements

 
-22-

 

HYBRED INTERNATIONAL, INC.
 (A Developmental Stage Company)
STATEMENTS OF CASH FLOWS

For the Years Ended December 31, 2010 and December 31, 2009

   
December 31,
   
December 31,
 
   
2010
   
2009
 
CASH FLOWS FROM OPERATING ACTIVITIES:
           
Net (loss)
  $ (90,298 )   $ (62,107 )
Adjustments to reconcile net (loss) to  net cash (used) by operating activities:
               
                 
  Depreciation expense
    1,864       1,864  
                 
  Changes in assets and liabilities:
               
Increase in accounts payable
    68,000       21,783  
Increase (decrease) in cash overdraft
    317       (218 )
Increase in NJ Corporation business tax payable
    500       500  
Increase in loans payable
    10,000       -  
Increase in due to Shareholders
    3,146       -  
Increase (decrease) in accrued interest payable
    1,746       1,647  
Increase in deferred income
    -       17,500  
                 
      Total adjustments
    85,573       43,076  
                 
NET CASH (USED) BY OPERATING ACTIVITIES
    (4,725 )     (19,031 )
                 
                 
CASH FLOWS FROM FINANCING ACTIVITIES:
               
Loans from shareholders
    -       (5,244 )
Increase (decrease) in loan payable
    -       (2,100 )
Issuance of stock to cancel debt
    -       49,550  
Reduction of additional paid in capital due to cancelation of debt
    -       (18,450 )
                 
NET CASH PROVIDED BY FINANCING ACTIVITIES
    -       23,756  
                 
    Increase (decrease)  in cash
    (4,725 )     4,725  
                 
 Cash, beginning of period
    4,725       -  
                 
    Cash, end of period
  $ -     $ 4,725  
 
The accompanying notes and independent auditors’ report should be read in conjunction with these financial statements

 
-23-

 
 
HYBRED INTERNATIONAL, INC.
 (A Developmental Stage Company)

NOTES TO FINANCIAL STATEMENTS


Note 1-
NATURE OF BUSINESS:

Organization:
Temporary Time Capital Corp., Inc., a corporation organized under the laws of the State of Colorado, which was a shell company with no or nominal business operations. On January 31, 2008, the Company entered into a merger agreement with Hybred International, Inc., a corporation organized under the laws of the State of New Jersey. No prior relationship between the companies, or any natural person, is known to have existed.

The merger agreement was filed and effective with the States of Colorado on February 7, 2008, and was effective within the State of New Jersey on February 27, 2008.

The merger agreement (the “Agreement”) stipulated that the companies would merge and the surviving entity would be Temporary Time Capital Corp., Inc.. Hybred International would then dissolve into Temporary Time Capital Corp., Inc. Temporary Time Capital Corp., Inc. would then change its name to Hybred International, Inc.. (the name of the New Jersey entity that merged into the Colorado entity, with the result that one entity with the name of Hybred International, Inc. with the business operations of the original New Jersey entity were registered to do business in the States of New Jersey and Colorado).

The shareholders of the former Hybred International, Inc. had their shares exchanged 1:1 into the new entity. The shareholders of the former Temporary Time Capital Corp., Inc. retained their holdings 1:1. The authorized number of shares in the new Hybred International, Inc. were increased to 120,000,000 (from 50,000,000) to allow for the distribution to the shareholders of the former Hybred International, Inc.

As part of the Agreement, the Directors and officers of Temporary Time Capital Corp., Inc. resigned and the officers and Directors of the former Hybred International, Inc. became the officers and Directors of the new Hybred International, Inc.

The former (prior to merger) Hybred International, Inc. has developed and intends to produce and market a revolutionary therapeutic horseshoe, which contains an injection molded urethane composition into the shoe designed to reduce the concussive effect of horses’ hooves on surfaces such as concrete, asphalt and rock hard race tracks, thus reducing the chances of a horse developing a hoof injury, which comprise approximately 90% of all equine injuries.

The new (post merger) Hybred International, Inc. has acquired the business operations of the former Hybred International, Inc. which consists mainly of research and development and resultant intellectual property to manufacture (or caused to be manufactured) the therapeutic horseshoe and industry knowledge associated with the transition of the incoming officers and Directors.

In November 2009, the Board of Directors voted to increase the number of shares authorized to 200,000,000 shares. In June 2010, the Board of Directors voted to further increase the number of authorized common shares to 500,000,000.

 
-24-

 
 
HYBRED INTERNATIONAL, INC.
         (A Developmental Stage Company)

        NOTES TO FINANCIAL STATEMENTS


Note 2-
SIGNIFICANT ACCOUNTING POLICIES:

Basis of Accounting
The financial statements of the Corporation were prepared on the accrual basis of accounting, which recognizes income when earned and expenses when incurred.

Cash and Cash Equivalents
For purpose of the statement of cash flows, the Corporation considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents.

Pervasiveness of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Effect of New Accounting Pronouncements
In June 2009, the FASB issued SFAS No. 168, “The FASB Accounting Standards Codification and Hierarchy of Generally Accepted Principles- a Replacement of FASB Statement No. 162 (“SFAS No. 168”). SFAS No. 168 establishes the ASC as the source of authoritative accounting principles recognized by the FASB to be applied in the preparation of financial statements in conformity with GAAP.

Rules and interpretive releases of the SEC under the authority of Federal securities laws are also sources of authoritative GAAP for SEC registrants. All guidance contained in the ASC carries an equal level of authority.

The ASC superseded all existing non-SEC accounting and reporting standards. The FASB will not issue new standards in the form of any SFAS, FASB Staff Positions or Emerging Issues Task Force Abstracts. Instead, the FASB will issue Accounting Standards Updates (“ASU”) that will serve to update the ASC, provide background information about the guidance and provide the bases for conclusions on the change(s) in the ASC. The adoption of SFAS No. 168 did not have an impact upon the Company’s financial position, results of operations or cash flows.

In May 2009, the FASB issued guidance now codified as ASC Topic 855, “Subsequent Events”, which provides authoritative accounting literature related to evaluating subsequent events. ASC 855 is similar to current guidance with some exceptions that are not intended to result in significant change to current practice. ASC 855 defines subsequent events and also requires the disclosure of the date through which an entity has evaluated subsequent events and the basis for that date. The provisions of ASC 855 are effective for interim or annual financial periods ending after June 15, 2009. The Company has adopted the provisions of ASC 855 effective as of December 31, 2009 and its adoption did not have a material impact on the Company’s financial position, results of operations, cash flows or its required disclosures in its Form 10K.

 
-25-

 



HYBRED INTERNATIONAL, INC.
        (A Developmental Stage Company)

        NOTES TO FINANCIAL STATEMENTS


Note 2 -      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (continued)

Effect of New Accounting Pronouncements (continued)
In April 2009, the FASB issued FSP FAS No. 107-1 and Accounting Principles Board (“APB”) Opinion No. 28-1, Interim Disclosures about Fair Value of Financial Instruments”, which amends SFAS No. 107, Disclosures about Fair Value of Financial Instruments and requires disclosures about the fair value of financial instruments for interim reporting periods as well as in annual financial statements. FSP FAS No. 107-1 and APB No. 28-1 also amend APB Opinion No. 28, Interim Financial Reporting, to require these disclosures in all interim financial statements. FSP FAS No. 107-1 and APB No. 28-1 are effective for interim reporting periods ending after June 15, 2009. The guidance of FSP FAS No. 107-1 and APB No. 28-1 is now included in ASC Topic 825, Financial Statements. The adoption of FSP FAS No. 107-1 and APB No. 28-1 did not have a material impact on the Company’s financial position, results of operations or cash flows.

The Company has adopted the provisions of ASC Topic, 740, Income Taxes which includes the provisions of Financial Accounting Standards Board Interpretation No.48 (“FIN 48”), “Accounting for Uncertainty in Income Taxes- an interpretation of FASB Statement No. 109”, which clarifies the accounting for uncertainty in income taxes recognized in an entity’s financial statements in accordance with FASB Statement No.109, “Accounting for Income Taxes”. FIN 48 prescribes a recognition threshold and measurement attribute for the financial statement disclosures of tax positions taken or expected to be taken in an income tax filing.

The evaluation of a tax position is a two step process. The first step requires an entity to determine whether it is more likely than not that a tax position will be sustained upon examination based upon the technical merits of the position. The second step requires an entity to recognize in the financial statements each tax position that meets the more likely than not criteria, measured at the largest amount of benefit that has a greater than fifty percent likelihood of being recognized. FIN 48 also provides guidance on de-recognition, classification, interest and penalties, accounting for interim periods, disclosure and transition.

The Company believes that with its adoption of ASC Topic 740, that the income tax positions taken by it did not have a material effect on the financial statements for the year ended
December 31, 2010.

The Company has adopted the provisions of ASC Topic 820, Fair Value Measurements and Disclosures which includes the provisions of SFAS No.157, “Fair Value Measurements”, which enhances existing guidance for measuring assets and liabilities using fair value. ASC Topic 820 and SFAS No. 157 provide a single definition of fair value, together with a framework for measuring it, and require additional disclosure about the use of fair value to measure assets and liabilities. The Company does not believe that ASC Topic 820 will have a material impact on its financial statements.



 
-26-

 

HYBRED INTERNATIONAL, INC.
        (A Developmental Stage Company)

        NOTES TO FINANCIAL STATEMENTS


Note 2 -      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (continued)

Effect of New Accounting Pronouncements (continued)
The Company has adopted the provisions of ASC Topic 825, Financial Instruments, which includes the provisions of SFAS No. 159 (“SFAS 159”) “The Fair Value Option for Financial Assets and Financial Liabilities”, providing companies with an option to report selected financial assets and liabilities at fair value. The objective of ASC Topic 825 and SFAS 159 is to reduce both complexity in accounting for financial instruments and the volatility in earnings caused by measuring related assets and liabilities differently. They also require entities to display the fair value of those assets and liabilities.  The Company has chosen to use fair value on the face of the balance sheet. The Company does not believe that ASC Topic 825 will have a material impact on its financial statements.
 
Note 3-       GOING CONCERN:

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred operating losses and negative operating cash flow since inception and future losses are anticipated. The Company’s plan of operations, even if successful, may not result in cash flow sufficient to finance and expand its business. These factors raise substantial doubt about the Company’s ability to continue as a going concern.

Realization of assets is dependent upon continued operations of the Company, which in turn is dependent upon management’s plans to meet its financing requirements and the success of its future operations. The ability of the Company to continue as a going concern is dependent on improving the Company’s profitability and cash flow and securing additional financing. While the Company believes in the viability of its strategy to generate revenues and profitability and in its ability to raise additional funds, and believes that the actions presently being taken by the Company provide the opportunity for it to continue as a going concern, there can be no assurances to that effect. These financial statements do not include any adjustments related to the recoverability and classification of asset amounts or the amounts and classification of liabilities that might be necessary if the Company is unable to continue as a going concern.
 
Note 4-
FIXED ASSETS:

  Fixed assets consist of tools and dies which are recorded at cost. These assets are being depreciated using the straight line method of depreciation over an estimated useful life of seven years. As of December 31, 2010 the Company had acquired tools and dies at a cost of $13,036.  The accumulated depreciation recorded on these assets as of December 31, 2010 was $7,731.
 
 
-27-

 

 
HYBRED INTERNATIONAL, INC.
         (A Developmental Stage Company)

       NOTES TO FINANCIAL STATEMENTS


Note 5-       LOANS PAYABLE:

During 2006, the Company borrowed the sum of $16,000 from an independent third party. The loan is payable on demand and bears interest at the rate of 6.75% per annum. As of December 31, 2010, the Company had repaid $5,000 with the issuance of 49,550,000 shares of stock. The amount of interest accrued on this loan as of December 31, 2010 was $4,766.

During August 2008, the Company borrowed the sum of $4,000 from Brett Hamburger on a non-interest bearing basis. The loan is payable upon demand and as of December 31, 2010, it remained unpaid. Additionally during 2009, the Company borrowed $2,900 from Christine Mulijono, the wife of Brett Hamburger. This loan is payable on demand and bears interest at the rate of 10% per annum. The accumulated interest on this loan as of December 31, 2010 was $508.

On September 9, 2010, the Company borrowed the sum of $10,000 from an unrelated third party.
The loan is payable on demand and bears interest at the rate of 8% per annum. The loan agreement provides for the right of this individual to purchase up to 40,000 free trading common shares of the Company at any time that the loan remains unpaid. The purchase price with respect to purchase shares is equal to $.00.25 per share. As of December 31, 2010, the accumulated interest on this loan was $308.


Note 6-       RELATED PARTY TRANSACTIONS:

As of December 31, 2008, the Company’s President had loaned the Company $5,244 on a non-interest bearing basis to provide funding for certain operating expenses. As of December 31, 2009, this amount was fully repaid. Additionally, during 2007, Martin Honig, a former Director and current shareholder of the Company loaned the Company $8,000 on a non-interest bearing basis in order to provide the Company with working capital. In July 2008 this same individual loaned the Company an additional $5,000 to be used for working capital. As of December 31, 2010, the Company had repaid $7,000 to this individual, leaving a balance due him of $6,000.
 
 
Note 7-       DEFERRED INCOME:

During 2009, the Company entered into an agreement to produce and sell 1,000 pairs of a prototype horseshoe to an unrelated entity at $25 per pair. The Company did receive full payment of $25,000 for the sale of these horseshoes in 2009, however, only 300 pairs of horse shoes were produced and delivered.

With only 300 pairs of this prototype horseshoe being produced and delivered, in 2009,  the Company reported revenue on this sale of $7,500 and $17,500 as deferred revenue in the accompanying financial statements. To date, no additional prototype horse shoes have been produced or sold.
 
 
-28-

 
 
HYBRED INTERNATIONAL, INC.
         (A Developmental Stage Company)

       NOTES TO FINANCIAL STATEMENTS




Note 8-       STOCKHOLDERS’ EQUITY:

Prior to the merger, the Company was authorized to issue 50,000,000 of its common stock. As of December 31, 2009, the Company had recorded as issued and outstanding 20,390,519 shares of common stock. On February 7, 2008, the Board of Directors voted to increase the numbers of common stock authorized to120,000,000 shares. On October 30, 2009, the Board of Directors voted to increase the number of common stock authorized to 200,000,000. In June 2010, the Board of Directors voted to further increase the number of authorized common shares to 500,000,000. As of December 31, 2010 the Company reported 169,365,519 shares of common stock as issued and outstanding.

The Company is also authorized to issue 1,000,000 of its no par preferred stock. As of December 31, 2010, none of these shares were issued and outstanding.




Note 9-       MERGER WITH HYBRED INTERNATIONAL, INC.:

On January 31, 2008, Board of Directors of the Company agreed to merge with Hybred International, Inc. (Hybred), a New Jersey corporation. The effective date of the merger was February 1, 2008. Under the terms of the “Plan of Merger,” Hybred was merged into the Company and Temporary Time Capital Corp. became the surviving entity. The surviving Company then changed its name to Hybred International, Inc. The Board of Directors of the Company voted to increase the number of common shares authorized from 50,000,000 to 120,000,000. Under the terms of the merger agreement the shareholders of Hybred International, Inc. were issued 80,000,000 shares of the Company’s common stock in exchange for their shares of the former Company.


Note 10-    STOCK ISSUANCES:

On January 28, 2008 the Company entered into a subscription agreement with AER Investment (AER) whereby AER would purchase 300,000 of the Company’s common stock, par value $.001, for $.30 per share or $90,000. The proceeds of this issuance were used to provide working capital. Subsequently, in April 2008, the Company issued an additional 19,700,000 shares of its common stock in consideration for the cancelation of a debt of $20,000 owed to an individual who is a shareholder.

On November 30, 2009, the Company converted a debt of $5,000 by issuing 49,550,000 shares of its common stock. The transaction resulted in the number of outstanding shares to increase to 169,365,519. (See Note 11)

 
-29-

 

HYBRED INTERNATIONAL, INC.
         (A Developmental Stage Company)

       NOTES TO FINANCIAL STATEMENTS
 



Note 11-    LOSS ON NEGOTIATED DEBT SETTLEMENT:

On November 30, 2009, the Company liquidated a loan payable to an individual in the outstanding amount of $5,000. In consideration for the cancellation of the debt, the Company issued 49,550,000 shares of its common stock. This agreement was accounted for as a negotiated settlement using the then existing market value which was below par value for the conversion of the debt into equity.

This transaction resulted in the Company reporting a loss on conversion of $26,100 and a reduction in its additional paid in capital of $18,450.


Note 12-    CONSULTING AGREEMENT:

On December 25, 2009, The Company entered into an agreement with Brett Hamburger whereby he will attempt to introduce the Company to potential investors for the purpose of procuring funding for the Company. Additionally, he will advise the Company on general business development.

The agreement shall be in effect for a period of two years ending on December 24, 2011 and provides for monthly payments of $5,000 over the term of the contract.

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