CuraTech Industries, Inc. - FORM 10-Q

Attached files

file	filename
EX-32.2 - CuraTech Industries, Inc.	v166572_ex32-2.htm
EX-31.1 - CuraTech Industries, Inc.	v166572_ex31-1.htm
EX-32.1 - CuraTech Industries, Inc.	v166572_ex32-1.htm
EX-31.2 - CuraTech Industries, Inc.	v166572_ex31-2.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 10-Q

(Mark One)

x	QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2009

¨	TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to____________

Commission file number 000-51140

CuraTech Industries, Inc.

(Exact name of registrant as specified in its charter)

NEVADA	87-0649332
(State or other jurisdiction of	(I.R.S. Employer identification No.)
incorporation or organization)

6337 Highland Drive, No. 1053

Salt Lake City, Utah 84121

(Address of principal executive offices)

Registrant’s telephone number: (801) 616-2355

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 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 o No x

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

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

Large accelerated filer ¨		Accelerated filer ¨

Non-accelerated filer ¨ (Do not check if a smaller reporting company)		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 ¨ No x

APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date: As of December 10, 2009, there were 17,146,699 shares of the issuer’s common stock issued and outstanding. There were also stock subscriptions payable for an additional 505,400 shares as of that date.

CURATECH INDUSTRIES, INC.

FORM 10-Q

TABLE OF CONTENTS

		Page
PART I – FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)		3

Condensed Consolidated Balance Sheets — As of June 30, 2009 (Unaudited)
and December 31, 2008		5

Condensed Consolidated Statements of Operations for the Three and Six Months
Ended June 30, 2009 and 2008, and for the period from inception on April 25, 2006
through June 30, 2009 (Unaudited)		6

Condensed Consolidated Statements of Cash Flows for the Six Months
Ended June 30, 2009 and 2008 and for the period from inception on April 25, 2006
through June 30, 2009 (Unaudited)		7

Notes to Condensed Consolidated Financial Statements (Unaudited)		8

Item 2. Management’s Discussion and Analysis of Financial
Condition and Results of Operations		10

Item 3. Quantitative and Qualitative Disclosures About
Market Risk		13

Item 4. Controls and Procedures		13

PART II – OTHER INFORMATION
Item 1. Legal Proceedings		13

Item 1A. Risk Factors		14

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		14

Item 3. Defaults Upon Senior Securities		14

Item 4. Submission of Matters to a Vote of Security Holders		14

Item 5. Other Information		14

Item 6. Exhibits		14

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.

The condensed consolidated balance sheets of CuraTech Industries, Inc., a Nevada corporation (“CuraTech” or the “Company”) as of June 30, 2009 (unaudited) and December 31, 2008, the related unaudited condensed consolidated statements of operations for the three and six month periods ended June 30, 2009 and June 30, 2008 and for the period from inception on April 25, 2006 through June 30, 2009, the related unaudited condensed consolidated statements of cash flows for the six month periods ended June 30, 2009 and June 30, 2008 and for the period from inception on April 25, 2006 through June 30, 2009, and the notes to the unaudited condensed consolidated financial statements follow. The financial statements have been prepared by CuraTech’s management in conformity with United States generally accepted accounting principles. In the opinion of management, all adjustments considered necessary for a fair presentation of the results of operations and financial position have been included and all such adjustments are of a normal recurring nature. Operating results for the period ended June 30, 2009, are not necessarily indicative of the results that can be expected for the year ending December 31, 2009.

The names “CuraTech”, “we”, “our” and “us” used in this report refer to CuraTech Industries, Inc.

CURATECH INDUSTRIES, INC.

(A Development Stage Company)

FINANCIAL STATEMENTS

June 30, 2009

CURATECH INDUSTRIES, INC.

(A DEVELOPMENT STAGE COMPANY)

INDEX TO FINANCIAL STATEMENTS

		Page

Condensed Consolidated Balance Sheets – June 30, 2009 (Unaudited)
and December 31, 2008		5

Condensed Consolidated Statements of Operations (Unaudited) for the Three and Six Months
Ended June 30, 2009 and 2008, and for the period from inception on April 25, 2006 through
June 30, 2009		6

Condensed Consolidated Statements of Cash Flows (Unaudited) for the Six Months
Ended June 30, 2009 and 2008, and for the period from inception on April 25, 2006 through
June 30, 2009		7

Notes to the Unaudited Condensed Consolidated Financial Statements		8

CURATECH INDUSTRIES, INC.

(A Development Stage Company)

Condensed Consolidated Balance Sheets

	June 30,			December 31,
	2009			2008
	(Unaudited)
ASSETS
CURRENT ASSETS

Cash	$	8,314		$	8,305
Note receivable		200,000			-
Interest receivable		4,979			-

Total Current Assets		213,293			8,305

FIXED ASSETS, Net		3,406			4,087

OTHER ASSETS

Real estate investment		230,862			230,862

Total Other Assets		230,862			230,862

TOTAL ASSETS	$	447,561		$	243,254

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES

Accounts payable and accrued expenses	$	51,027		$	13,467
Accrued officer salaries		87,562			66,434
Notes payable - related party		251,500			-
Notes payable		40,000			-
Accrued interest payable - related party		2,013			-
Accrued interest payable		1,600			-

Total Current Liabilities		433,702			79,901

TOTAL LIABILITIES		433,702			79,901

STOCKHOLDERS' EQUITY

Common stock: 25,000,000 shares authorized;
$0.001 par value; 16,780,199 shares issued
and outstanding		16,780			16,780
Additional paid-in capital		4,337,013			4,337,013
Stock subscriptions receivable		(99,252	)		(99,252	)
Stock subscriptions payable		703,900			580,900
Accumulated deficit		(4,944,582	)		(4,672,088	)

Total Stockholders' Equity		13,859			163,353

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	447,561		$	243,254

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

CURATECH INDUSTRIES, INC.

(A Development Stage Company)

Condensed Consolidated Statements of Operations

(Unaudited)

													From Inception
	For the Three						For the Six						on April 25,
	Months Ended						Months Ended						2006 Through
	June 30,						June 30,						June 30,
	2009			2008			2009			2008			2009

REVENUES	$	-		$	-		$	-		$	-		$	-

OPERATING EXPENSES

General and administrative		52,953			50,533			95,001			155,261			2,065,459
Consulting		16,660			15,050			53,178			15,900			2,033,463
Officer compensation		62,500			105,000			125,000			105,000			375,000
Depreciation		341			341			681			681			3,406

Total Operating Expenses		132,454			170,924			273,860			276,842			4,477,328

LOSS FROM OPERATIONS		(132,454	)		(170,924	)		(273,860	)		(276,842	)		(4,477,328	)

OTHER INCOME (EXPENSES)

Impairment of assets		-			-			-			-			(472,500	)
Interest expense		(1,600	)		-			(3,613	)		-			(3,613	)
Interest income		3,000			-			4,979			-			8,859

Total Other Income (Expenses)		1,400			-			1,366			-			(467,254	)

NET LOSS	$	(131,054	)	$	(170,924	)	$	(272,494	)	$	(276,842	)	$	(4,944,582	)

BASIC LOSS PER SHARE	$	(0.01	)	$	(0.01	)	$	(0.02	)	$	(0.01	)

WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING		16,780,199			18,580,199			16,780,199			18,580,199

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

CURATECH INDUSTRIES, INC.

(A Development Stage Company)

Condensed Consolidated Statements of Cash Flows

(Unaudited)

							From Inception
							on April 25,
	For the Six Months Ended						2006 Through
	June 30,						June 30,
	2009			2008			2009

CASH FLOWS FROM OPERATING ACTIVITIES

Net loss	$	(272,494	)	$	(276,842	)	$	(4,944,582	)
Adjustments to reconcile net loss to
net cash used by operating activities:
Depreciation		681			681			3,405
Common stock issued for services		-			-			3,153,000
Conversion of note receivable to officer salaries					77,885			-
Impairment of assets		-			-			472,500
Services contributed by officers		-			-			7,000
Changes in operating assets and liabilities
Increase in interest receivable		(4,979	)		-			(54,979	)
Increase in accrued expenses - related parties		21,128			-			20,328
Increase in accounts payable and accrued expense		37,560			8,341			112,973
Increase in accrued interest - related parties		2,013			-			2,013
Increase in accrued interest		1,600			-			1,600

Net Cash Used by Operating Activities		(214,491	)		(189,935	)		(1,226,742	)

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of investment		-			-			(150,000	)
Purchase of notes receivable		(200,000	)		-			(200,000	)
Cash paid for real estate		-			(230,862	)		(230,862	)

Net Cash Used by Investing Activities		(200,000	)		(230,862	)		(580,862	)

CASH FLOWS FROM FINIANCING ACTIVITIES

Common stock issued for cash		-			-			603,559
Cash received in acquisition		-			-			137,673
Cash received on note payable		40,000			-			45,288
Cash received on note payable - related		281,500			-			281,500
Cash paid on notes payable - related		(30,000	)		-			(30,000	)
Cash received on subscriptions receivable		-			-			73,998
Cash received on subscriptions payable		123,000			450,900			703,900

Net Cash Provided by Financing Activities		414,500			450,900			1,815,918

NET INCREASE IN CASH		9			30,103			8,314

CASH AT BEGINNING OF PERIOD		8,305			58,160			-

CASH AT END OF PERIOD	$	8,314		$	88,263		$	8,314

SUPPLIMENTAL DISCLOSURES OF
CASH FLOW INFORMATION

CASH PAID FOR:

Interest	$	-		$	-		$	-
Income Taxes	$	-		$	-		$	-

NON-CASH FINANCING ACTIVITIES

Common stock issued for services	$	-		$	-		$	3,153,000
Services contributed by director	$	-		$	-		$	7,000

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

CURATECH INDUSTRIES, INC.

(A Development Stage Company)

Notes to the Unaudited Condensed Consolidated Financial Statements

June 30, 2009

NOTE 1 - BASIS OF FINANCIAL STATEMENT PRESENTATION

The accompanying unaudited condensed financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted in accordance with such rules and regulations. The information furnished in the interim condensed financial statements includes normal recurring adjustments and reflects all adjustments, which, in the opinion of management, are necessary for a fair presentation of such financial statements. Although management believes the disclosures and information presented are adequate to make the information not misleading, it is suggested that these interim condensed financial statements be read in conjunction with the Company's most recent audited financial statements and notes thereto included in its December 31, 2008 Annual Report on Form 10-K of the Company. Operating results for the period ended June 30, 2009 are not necessarily indicative of the results that may be expected for the year ending December 31, 2009.

NOTE 2 - GOING CONCERN

The Company's financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not established revenues sufficient to cover its operating costs and allow it to continue as a going concern. Management intends to increase operations through expanding its operations into other locals, in the interim, management and primary shareholders are committed to meeting the Company’s minimal operating expenses.

NOTE 3 - AGREEMENT AND PLAN OF MERGER

On October 26, 2006, the Company completed the acquisition of MedaCure International, Inc., a Nevada corporation located in Salt Lake City, Utah (“MedaCure”). The acquisition was consummated pursuant to an agreement entered into on June 22, 2006, whereby the Company agreed to merge its newly created, wholly-owned subsidiary, CuraTech Acquisitions, Inc., with and into MedaCure with MedaCure being the surviving entity as the Company’s wholly-owned subsidiary.

Prior to completion of the acquisition the Company changed its corporate name to CuraTech Industries, Inc. The Company also changed its corporate domicile from the State of Utah to Nevada. Also, the Company added three new directors, each nominated by MedaCure, to its Board of Directors.

From the consummation of the Merger Agreement, the Company has begun the development and bringing to market a certain health supplement that is intended to enhance and build-up the body’s natural immune system defenses. The Company intends to commence commercial marketing of its supplement in the near future primarily outside the U.S. Initial marketing in the U.S. will primarily be to the veterinarian market for use in treating animals. The Company also intends to initiate a collaboration and partnering program that will focus on developing business alliances designed to generate sales, applications and marketing opportunities.

NOTE 4 - SIGNIFICANT EVENTS

Equity Activity – During the six months ended June 30, 2009 the Company received $123,000 from various investors in exchange for 123,000 shares of common stock at $1.00 per share. As of June 30, 2009 the shares have not been issued; therefore, this amount has been recorded as stock subscriptions payable in the Company’s financial statements.

CURATECH INDUSTRIES, INC.

(A Development Stage Company)

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

June 30, 2009

NOTE 4 - SIGNIFICANT EVENTS (Continued)

Notes Payable – Related Party – During the six months ended June 30, 2009, the Company received a total of $281,500 in cash from related parties. These amounts have been recorded as notes payable – related parties. Each note is unsecured, bears interest at a rate of 8.0% per annum, and is due on demand. As of June 30, 2009 the Company had made payments on these notes amounting to $30,000. Accrued interest payable on these notes totaled $2,013 as of June 30, 2009.

Notes Payable – During the six months ended June 30, 2009, the Company received a total of $40,000 in cash from an unrelated third party. This amount accrues interest at a rate of 24% per annum, and is due in full, including accrued interest, on October 27, 2009. Accrued interest payable on this note totaled $1,600 as of June 30, 2009. This note is subsequently in default.

Notes Receivable – During the six months ended June 30, 2009, the Company loaned a total of $200,000 to various unrelated entities. These amounts have been recorded as notes receivable in these financial statements. The notes are unsecured, bear interest at a rate of 9.5% per annum, and are due on demand. The Company recorded $4,979 in interest income on these notes during the six months ended June 30, 2009.

NOTE 5 - SUBSEQUENT EVENTS

Stock issuances – Subsequent to June 30, 2009 the Company issued 366,500 shares of common stock to various unrelated entities. Of these shares, 168,000 were issued for cash at $1.00 per share, and the remaining 198,500 were issued pursuant to various stock subscriptions payable.

The Company evaluated subsequent events from the balance sheet date through December 9, 2009.

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

The following information should be read in conjunction with the financial statements and notes thereto appearing elsewhere in this Form 10-Q.

Recent Events

As of June 30, 2009, the Company owed its Chief Executive Officer $87,562 in accrued wages.

Plan of Operation

Following the completion of the acquisition of MedaCure on October 26, 2006, we have become engaged in attempting to develop a market for MedaCure’s proprietary health supplement formula that is believed to enhance and build-up the body’s natural immune system defenses in both humans and animals. In November 2008, we engaged a third party manufacturer to begin manufacturing the MedaCure product. A total of 785,000 capsules have been manufactured to date. Manufacturing and marketing costs have been incurred primarily by independent contractors with whom the Company has no contractual agreements. We anticipate consummating formal manufacturing, marketing, and sales agreements with respect to our product at such time a viable market for the product has been established. Our recent strategic emphasis has been to attempt to develop a market for our product in the country of India. Our next priority will be to establish new facilities for our corporate headquarters and to warehouse the product. Management is seeking a 3,000 square foot facility that can be leased on a long-term basis. The facility will also handle shipping of product. We have not selected a final site, but we are searching for one in Utah County, Utah.

Contemporaneous with selecting the site for our headquarters and warehouse, we will be creating a distribution network that will focus on initiating a collaboration and partnering program and developing business alliances designed to generate sales, applications and marketing opportunities. At present, we are negotiating with two groups of potential distributors. We anticipate that during the next 12 months we will hire approximately 10-15 persons, 3-5 for administrative duties, and 7-10 for sales and marketing.

We estimate that during the next 12 months we will need approximately $500,000 to establish our headquarters/warehouse facility, establish a sales and distribution network, and begin selling activities. We anticipate that the source of the remaining funds needed will be from the private sale of securities and/or other financing activities conducted by our officers and directors. We hope to raise approximately $500,000 during the remaining portion of 2009, although there presently are no commitments for funds, and we cannot offer any assurance that we will be able to raise such funds on terms acceptable to the Company.

Inflation

In the opinion of management, inflation has not and will not have a material effect on our operations in the immediate future. Management will continue to monitor inflation and evaluate the possible future effects of inflation on our business and operations.

Results of Operations

Three Months Ended June 30, 2009 Compared to the Three Months Ended June 30, 2008.

Revenues from continuing operations for the three months ended June 30, 2009 were $-0- compared to $-0- for the three month period ended June 30, 2008. This lack of revenues was due primarily to the fact that our revenue stream pertaining to the Medacure subsidiary has not yet been developed. We anticipate such sales may begin as early as fourth quarter 2009.

Total operating expenses for the three month period ended June 30, 2009 were $132,454, a decrease of $38,470 from the $170,924 of total operating expenses incurred in the three month period ended June 30, 2008. General and administrative expenses for the three month period ended June 30, 2009 were $52,953, an increase of $2,420 from the $50,533 of general and administrative expenses incurred in the three months ended June 30, 2008. Consulting expenses totaled $16,660 in the three months ended June 30, 2009, an increase of $1,610 from the $15,050 of consulting expenses incurred in the three months ended June 30, 2008. Officer compensation totaled $62,500 in the three months ended June 30, 2009, a decrease of $42,500 from the $105,000 of officer compensation incurred in the three months ended June 30, 2008. The Company anticipates that officer compensation should remain at the current quarterly level for the rest of 2009.

We reported a net loss of $131,054, or $.01 per share, for the three months ended June 30, 2009, which is $39,870 less than the $170,924 net loss, or $0.01 per share, incurred during the three months ended June 30, 2008. The decreased net loss is primarily attributed to the decreases in officer compensation and general and administrative expenses incurred in the later period.

Six Months Ended June 30, 2009 Compared to the Six Months Ended June 30, 2008

Revenues from continuing operations for the six month period ended June 30, 2009 were $-0- compared to $-0- for the six month period ended June 30, 2008. This lack of revenues was due primarily to the fact that our revenue stream pertaining to the Medacure subsidiary has not yet been developed. We anticipate such sales may begin as early as fourth quarter 2009.

Total operating expenses for the six month period ended June 30, 2009 were $273,860, a decrease of $2,982 from the $276,842 of total operating expenses incurred in the six month period ended June 30, 2008. General and administrative expenses for the six month period ended June 30, 2009 were $95,001, a decrease of $60,260 from the $155,261 of general and administrative expenses incurred in the six months ended June 30, 2008. Consulting expenses totaled $53,178 in the six months ended June 30, 2009, an increase of $37,278 from the $15,900 of consulting expenses incurred in the six months ended June 30, 2008. Officer compensation totaled $125,000 in the six months ended June 30, 2009, an increase of $20,000 from the $105,000 of officer compensation incurred in the six months ended June 30, 2009. The Company anticipates that officer compensation should remain at the current quarterly level for the rest of 2009.

We incurred a net loss of $272,494, or $0.02 per share, during the six months ended June 30, 2009, which is $4,348 less than the $276,842 net loss, or $0.01 per share, incurred during the six months ended June 30, 2008. The reduced net loss is primarily attributed to the substantial reduction in general and administrative expenses partially offset by increases in consulting expense and officer compensation incurred during the six months ended June 30, 2009.

Liquidity and Capital Resources

At June 30, 2009, our current assets consisted of cash on hand of $8,314, a note receivable of $200,000 and interest receivable of $4,979. We believe that current cash on hand is not sufficient to satisfy our cash requirements for the next twelve months, which we estimate to be approximately $500,000. Due to the fact that our limited operations have not generated cash flow sufficient to cover ongoing business expenses, we may have to rely on our directors, or on outside sources, to provide additional funds. However, we have no agreements with anyone to provide future funds to our Company. If our directors are unable to provide future funding, if the need arises, we may have to look at alternative sources of funding. There is no assurance that such funds will be available or, that even if they are available, that they will be available on terms that will be acceptable to us. In the event we are unable to secure necessary future funding, we may have to curtail our business or cease operations completely. At the present time, the Company is attempting to raise additional funds through a private placement offering of the Company’s common stock. No one is obligated to purchase any additional shares in the offering.

At June 30, 2009, we had total assets of $447,561 and stockholders' equity of $13,859 compared to total assets of $243,254 and total stockholders' equity of $163,353 at December 31, 2008.

All of the Company’s liabilities of $433,702 as of June 30, 2009 are current liabilities due within the next year, and primarily consist of $251,500 in notes payable-related party, $87,562 accrued officer salaries, $40,000 in notes payable, and $51,027 in accounts payable and accrued expenses.

The Company expects to hire 10-15 employees in the next 12 months.

Capital Expenditures

The Company expended no amounts on capital expenditures during the six months ended June 30, 2009. The Company has no current plans for capital expenditures.

Critical Accounting Policies

In the notes to the audited consolidated financial statements for the year ended December 31, 2008, included in the Company’s Annual Report on Form 10-K, the Company discusses those accounting policies that are considered to be significant in determining the results of operations and its financial position. The Company believes that the accounting principles utilized by it conform to accounting principles generally accepted in the United States of America.

The preparation of financial statements requires Company management to make significant estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. By their nature, these judgments are subject to an inherent degree of uncertainty. On an on-going basis, the Company evaluates estimates. The Company bases its estimates on historical experience and other facts and circumstances that are believed to be reasonable, and the results form the basis for making judgments about the carrying value of assets and liabilities. The actual results may differ from these estimates under different assumptions or conditions.

Going Concern

There is a substantial doubt as to the Company’s ability to continue as a going concern as a result of recurring losses, lack of revenue-generating activities and a deficit accumulated during the development stage in the amount of $4,944,582 as of June 30, 2009. The Company’s ability to continue as a going concern is subject to the ability of the Company to realize a profit from operations and /or obtain funding from outside sources. Since the Company has no revenue generating operations, our plan to address the Company’s ability to continue as a going concern over the next twelve months includes obtaining additional funding from the sale of our securities. Although we believe that we will be able to obtain the necessary funding to allow the Company to remain a going concern through the methods discussed above, there can be no assurances that such methods will prove successful.

Net Operating Loss

We have accumulated approximately $1,079,847 of net operating loss carryforwards as of June 30, 2009, which may be offset against taxable income and income taxes in future years. The use of these losses to reduce future income taxes will depend on the generation of sufficient taxable income prior to the expiration of the net operating loss carryforwards. The carryforwards expire in the year 2029. In the event of certain changes in control, there will be an annual limitation on the amount of net operating loss carryforwards which can be used. No tax benefit has been reported in the financial statements for the period ended June 30, 2009 because there is a 50% or greater chance that the carryforward will not be used. Accordingly, the potential tax benefit of the loss carryforward is offset by a valuation allowance of the same amount.

Forward-Looking and Cautionary Statements

This report, including the sections entitled "Business," "Risk Factors" and "Management's Discussion and Analysis or Plan of Operations" contains forward-looking statements. These statements relate to future events or our future financial performance and involve known and unknown risks and uncertainties. These factors may cause our Company's or our industry's actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. These risks and other factors include those listed under "Risk Factors" and elsewhere in this report. In some cases, you can identify forward-looking statements by terminology such as "may," "will" "should," "expects," "intends," "plans," anticipates," "believes," "estimates," "predicts," "potential," "continue," or the negative of these terms or other comparable terminology.

You should be aware that a variety of factors could cause actual results to differ materially from the anticipated results or other matters expressed in forward-looking statements. These risks and uncertainties, many of which are beyond our control, include:

* the sufficiency of existing capital resources and our ability to raise additional capital to fund cash requirements for future operations;

* uncertainties following any successful acquisition or merger related to the future rate of growth of our business and acceptance of our products and/or services;

* volatility of the stock market, particularly within the technology sector; and

* general economic conditions.

Although we believe the expectations reflected in these forward-looking statements are reasonable, such expectations cannot guarantee future results, levels of activity, performance or achievements.

You are cautioned that any forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties. Actual results may differ materially from those included within the forward-looking statements as a result of various factors. Cautionary statements in the risk factors section and elsewhere in this report identify important risks and uncertainties affecting our future, which could cause actual results to differ materially from the forward-looking statements made in this report.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

A “smaller reporting company” (as defined by Item 10 of Regulation S-K) is not required to provide the information required by this Item.

Item 4. Controls and Procedures.

Under the supervision and with the participation of management, our principal executive officer and principal financial officer evaluated the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (“Exchange Act”), as of June 30, 2009. Based on this evaluation, our principal executive officer and our principal financial officer concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were not effective and adequately designed to ensure that the information required to be disclosed by us in the reports we submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the applicable rules and forms and that such information was accumulated and communicated to our chief executive officer and chief financial officer, in a manner that allowed for timely decisions regarding required disclosure.

During the last fiscal quarter ended June 30, 2009, there has been no change in internal control over financial reporting that has materially affected, or is reasonably likely to materially affect our internal control over financial reporting.

ANY FORWARD-LOOKING STATEMENTS INCLUDED IN THIS FORM 10-Q REPORT REFLECT MANAGEMENT’S BEST JUDGMENT BASED ON FACTORS CURRENTLY KNOWN AND INVOLVE RISKS AND UNCERTAINTIES. ACTUAL RESULTS MAY VARY MATERIALLY.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

There are no material pending legal proceedings to which we or our subsidiary is a party or to which any of our property is subject and, to the best of our knowledge, no such action against us is contemplated or threatened.

Item 1A. Risk Factors.

A “smaller reporting company” (as defined by Item 10 of Regulation S-K) is not required to provide the information required by this Item.

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

During the six month period ended June 30, 2009, the Company did not sell any shares of its common stock without registration under the Securities Act of 1933, except for the following:

The Company received a total of $123,000 in gross offering proceeds from subscriptions receivable from one person during the six months ended June 30, 2009. The shares were sold at $1.00 per share, and the shares had not been issued as of June 30, 2009. The Company has

issued 123,000 shares of its common stock at $1.00 per share to the subscriber during third quarter 2009. The shares were issued without registration pursuant to Section 4(2) of the Securities Act of 1933 and/or Rule 506 of Regulation D for transactions not involving any public offering. Each purchaser represented that he is acquiring the shares with investment intent, and the certificates representing the shares will be given a restricted legend. Each purchaser received a private placement memorandum prior to making his/her investment.

For information concerning other issuance of the Company’s common stock without registration under the Securities Act of 1933 since January 1, 2006, see the Company’s annual reports on Forms 10-K or 10-KSB and the Company’s quarterly reports on Form 10-Q and 10-QSB filed since January 1, 2006.

Item 3. Defaults Upon Senior Securities.

None; not applicable.

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

None; not applicable.

Item 5. Other Information.

None; not applicable.

Item 6. Exhibits

(a) Exhibits.

Exhibit
Number		Description

31.1		Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2		Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1		Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.2		Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

SIGNATURES

In accordance with the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	CURATECH INDUSTRIES, INC.


Date: December 10, 2009	By:	/s/ Lincoln M. Dastrup
	Lincoln M. Dastrup
	President, Chief Executive Officer, Chief Financial Officer and Chief Accounting Officer

CuraTech Industries, Inc. - FORM 10-Q - December 10, 2009

Attached files