Bitzio, Inc. - FORM 10-Q - October 21, 2010

Attached files

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EX-32.1 - Bitzio, Inc.	v199376_ex32-1.htm
EX-31.1 - Bitzio, Inc.	v199376_ex31-1.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

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

For the Quarter Ended September 30, 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 000-51688

ROCKY MOUNTAIN FUDGE COMPANY, INC.

(Exact name of registrant as specified in its charter)

Nevada	16-1734022
(State or other jurisdiction of	(I.R.S. Employer Identification No.)
incorporation or organization)

4596 Russell Street, Salt Lake City, Utah 84117

(Address of principal executive offices)

(801) 230-1807

(Registrant's telephone number, including area code)

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 past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant 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

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	¨	Smaller reporting company	x
(Do not check if a smaller reporting company)

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

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

Class	Outstanding as of October 20, 2010

Common Stock, $.001 par value	8,250,000

TABLE OF CONTENTS

Heading		Page

PART I — FINANCIAL INFORMATION

Item 1.	Consolidated Financial Statements	3

Item 2.	Management's Discussion and Analysis of Financial Condition and Results
	of Operations	13

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	15

Item 4(T).	Controls and Procedures	15

PART II — OTHER INFORMATION

Item 1.	Legal Proceedings	16

Item 1A.	Risk Factors	16

Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	16

Item 3.	Defaults Upon Senior Securities	16

Item 4.	(Removed and Reserved)	17

Item 5.	Other Information	17

Item 6.	Exhibits	17

	Signatures	17

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements

The accompanying unaudited consolidated balance sheets of Rocky Mountain Fudge Company, Inc. and Subsidiaries at September 30, 2010 and December 31, 2009 and related unaudited consolidated statements of operations and cash flows for the three and nine months ended September 30, 2010 and 2009, and for the period from January 4, 1990 (date of inception) to September 30, 2010, have been prepared by 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. It is suggested that these consolidated financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s December 31, 2009 audited financial statements. Operating results for the period ended September 30, 2010, are not necessarily indicative of the results that can be expected for the fiscal year ending December 31, 2010 or any other subsequent period.

ROCKY MOUNTAIN FUDGE COMPANY, INC.

(A Development Stage Company)

CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2010

ROCKY MOUNTAIN FUDGE COMPANY, INC. AND SUBSIDIARIES

(A Development Stage Company)

Consolidated Balance Sheets

	September 30,			December 31,
	2010			2009
	(Unaudited)

ASSETS

CURRENT ASSETS

Cash	$	27,526		$	5,476

Total Current Assets		27,526			5,476

FIXED ASSETS

Computer equipment, net		1,877			-

TOTAL ASSETS	$	29,403		$	5,476

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

CURRENT LIABILITIES

Accounts payable	$	2,884		$	1,500
Accrued interest payable - related party		-			1,007
Note payable - related party		-			22,413

Total Current Liabilities		2,884			24,920

STOCKHOLDERS' EQUITY (DEFICIT)

Common stock; 75,000,000 shares authorized, at $0.001 par value, 8,250,000 and 2,250,000 shares issued and outstanding, respectively		8,250			2,250
Additional paid-in capital		231,764			162,200
Deficit accumulated during the development stage		(213,495	)		(183,894	)

Total Stockholders' Equity (Deficit)		26,519			(19,444	)

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)	$	29,403		$	5,476

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

ROCKY MOUNTAIN FUDGE COMPANY, INC. AND SUBSIDIARIES

(A Development Stage Company)

Consolidated Statements of Operations

(Unaudited)

													From Inception
	For the Three						For the Nine						on January 4,
	Months Ended						Months Ended						1990 through
	September 30,						September 30,						September 30,
	2010			2009			2010			2009			2010

REVENUES	$	-		$	-		$	-		$	-		$	157,702

COST OF SALES		-			-			-			-			58,459

GROSS PROFIT		-			-			-			-			99,243

OPERATING EXPENSES

General and administrative		7,107			3,539			28,786			17,719			313,974
Depreciation		171			-			171			-			171

Total Operating Expenses		7,278			3,539			28,957			17,719			314,145

OPERATING LOSS		(7,278	)		(3,539	)		(28,957	)		(17,719	)		(214,902	)

OTHER INCOME (EXPENSES)

Interest income		-			-			-			-			4,437
Interest expense		-			(248	)		(644	)		(430	)		(3,030	)

Total Other Income (Expense)		-			(248	)		(644	)		(430	)		1,407

LOSS BEFORE INCOME TAXES		(7,278	)		(3,787	)		(29,601	)		(18,149	)		(213,495	)
PROVISION FOR INCOME TAXES		-			-			-			-			-

NET LOSS	$	(7,278	)	$	(3,787	)	$	(29,601	)	$	(18,149	)	$	(213,495	)

BASIC AND DILUTED LOSS PER SHARE	$	(0.00	)	$	(0.00	)	$	(0.01	)	$	(0.01	)

WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING		8,250,000			2,250,000			5,426,471			2,250,000

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

ROCKY MOUNTAIN FUDGE COMPANY, INC. AND SUBSIDIARIES

(A Development Stage Company)

Consolidated Statements of Stockholders' Equity (Deficit)

(unaudited)

										Deficit
										Accumulated
							Additional			During the			Total
	Common Stock						Paid-In			Development			Stockholders'
	Shares			Amount			Capital			Stage			Equity
Balance at inception of development
stage on January 4, 1990		-		$	-		$	-		$	-		$	-

Common stock issued for cash
at $0.001 per share on
August 10, 1990		1,200,000			1,200			-			-			1,200

Services contributed by
shareholders		-			-			2,400			-			2,400

Shares cancelled as contributed
capital by shareholders		(500,000	)		(500	)		500			-			-

Common stock issued for cash
at $0.0012 per share on
December 15, 1998		500,000			500			100			-			600

Common stock issued for cash
at $1.00 per share		50,000			50			49,950			-			50,000

Stock offering costs		-			-			(10,000	)		-			(10,000	)

Net loss from inception of
development stage through
December 31, 2004		-			-			-			(44,200	)		(44,200	)

Balance, December 31, 2004		1,250,000		$	1,250		$	42,950		$	(44,200	)	$	-

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

ROCKY MOUNTAIN FUDGE COMPANY, INC. AND SUBSIDIARIES

(A Development Stage Company)

Consolidated Statements of Stockholders' Equity (Deficit)

(unaudited)

							Deficit
							Accumulated
					Additional		During the			Total
	Common Stock				Paid-in		Exploration			Stockholders'
	Shares		Amount		Capital		Stage			Equity

Balance, December 31, 2004		1,250,000	$	1,250	$	42,950	$	(44,200	)	$	-

Capital contributed by shareholder		-		-		50,000		-			50,000

Net loss for the year ended December 31, 2005		-		-		-		(19,545	)		(19,545	)

Balance, December 31, 2005		1,250,000		1,250		92,950		(63,745	)		30,455

Services contributed by shareholders		-		-		5,000		-			5,000

Net loss for the year ended December 31, 2006		-		-		-		(23,234	)		(23,234	)

Balance, December 31, 2006		1,250,000		1,250		97,950		(86,979	)		12,221

Common shares issued for debt		1,000,000		1,000		25,300		-			26,300

Services contributed by shareholders		-		-		5,000		-			5,000

Net loss for the year ended December 31, 2007		-		-		-		(36,752	)		(36,752	)

Balance, December 31, 2008		2,250,000		2,250		128,250		(123,731	)		6,769

Services contributed by shareholders		-		-		7,200		-			7,200

Capital contributed by shareholder		-		-		25,750		-			25,750

Net loss for the year ended December 31, 2008		-		-		-		(33,876	)		(33,876	)

Balance, December 31, 2008		2,250,000		2,250		161,200		(157,607	)		5,843

Services contributed by shareholders		-		-		1,000		-			1,000

Net loss for the year ended December 31, 2009		-		-		-		(26,287	)		(26,287	)

Balance, December 31, 2009		2,250,000		2,250		162,200		(183,894	)		(19,444	)

Common shares issued for cash		4,000,000		4,000		46,000		-			50,000

Common shares issued for debt		2,000,000		2,000		22,064		-			24,064

Services contributed by shareholders		-		-		1,500		-			1,500

Net loss for the nine months ended September 30, 2010		-		-		-		(29,601	)		(29,601	)

Balance, September 30, 2010		8,250,000	$	8,250	$	231,764	$	(213,495	)	$	26,519

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

ROCKY MOUNTAIN FUDGE COMPANY, INC. AND SUBSIDIARIES

(A Development Stage Company)

Consolidated Statements of Cash Flows

(Unaudited)

							From Inception
	For the Nine						on January 4,
	Months Ended						1990 through
	September 30,						September 30,
	2010			2009			2010

CASH FLOWS FROM OPERATING ACTIVITIES

Net loss	$	(29,601	)	$	(18,149	)	$	(213,495	)
Adjustments to reconcile net loss to net cash used by operating activities:
Services contributed by officers and shareholders		1,500			500			14,700
Common stock issued for interest on related party note		-			-			1,007
Depreciation and amortization		171			-			171
Changes in operating assets and liabilities:
Increase in accounts payable		1,384			-			2,884
Increase in accrued expenses - related party		644			430			644

Net Cash Used in Operating Activities		(25,902	)		(17,219	)		(194,089	)

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of computer equipment		(2,048	)		-			(2,048	)

Net Cash Used in Investing Activities		(2,048	)		-			(2,048	)

CASH FLOWS FROM FINIANCING ACTIVITIES

Contributed capital		-			-			83,150
Cash received on note receivable - related		-			10,000			48,713
Sale of common stock for cash		50,000			-			91,800
Net Cash Provided by Financing Activities		50,000			10,000			223,663

NET INCREASE (DECREASE) IN CASH		22,050			(7,219	)		27,526

CASH AT BEGINNING OF PERIOD		5,476			8,484			-

CASH AT END OF PERIOD	$	27,526		$	1,265		$	27,526

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

CASH PAID FOR:

Interest	$	-		$	-		$	79
Income Taxes	$	-		$	-		$	-

NON CASH FINANCING ACTIVITIES

Common stock issued for debt	$	24,064		$	-		$	50,364

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

ROCKY MOUNTAIN FUDGE COMPANY, INC. AND SUBSIDIARIES

(A Development Stage Company)

Notes to the Unaudited Condensed Consolidated Financial Statements

September 30, 2010 and December 31, 2009

NOTE 1 - CONDENSED FINANCIAL STATEMENTS

The accompanying financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows at September 30, 2010 and 2009 and for all periods presented have been made.

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. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company's December 31, 2009 audited financial statements. The results of operations for the periods ended September 30, 2010 and 2009 are not necessarily indicative of the operating results for the full years.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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

b. Recent Accounting Pronouncements

The Company has evaluated recent accounting pronouncements and their adoption has not had or is not expected to have a material impact on the Company’s financial position, or statements.

NOTE 3 - COMMON STOCK

On May 10, 2010, the Company’s outstanding shareholder loan and related accrued interest, totaling $24,064, was satisfied through the issuance of 2,000,000 shares of the Company’s common stock at $0.0125 per share. This transaction resulted in a loss on extinguishment of debt in the amount of $936. However, due to the fact that the debt satisfied was with a related party, the transaction is treated as a capital transaction, with no loss recorded in the Statement of Operations, pursuant to ASC 470-50-40-2.

Also on May 10, 2010, the Company issued an additional 4,000,000 common shares for $50,000 cash at $0.0125 per share.

ROCKY MOUNTAIN FUDGE COMPANY, INC. AND SUBSIDIARIES

(A Development Stage Company)

Notes to the Unaudited Condensed Consolidated Financial Statements

September 30, 2010 and December 31, 2009

NOTE 4 - RELATED PARTY TRANSACTIONS

The Company has recorded expenses paid on its behalf by shareholders as a related party payable. During the nine months ended September 30, 2010, the balance of this payable totaling $24,064 was converted to 2,000,000 shares of the Company’s common stock.

During the nine months ended September 30, 2010, the Company’s president performed services valued at $1,500 which have been recorded as a contribution to capital.

NOTE 5 - 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 yet established an ongoing source of revenues sufficient to cover its operating costs and allow it to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations.

In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management's plans to obtain such resources for the Company include (1) obtaining capital from management and significant shareholders sufficient to meet its minimal operating expenses, and (2) seeking out and completing a merger with an existing operating company. However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans.

The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

NOTE 6 – SIGNIFICANT EVENTS

Formation of Subsidiary

On May 28, 2010 the Company formed Eveps International, Inc. (“Eveps”), a Nevada company, as a wholly-owned subsidiary. Eveps was formed with the intent to be utilized as a vehicle to facilitate any potential future merger transactions with existing operating entities. On September 24, 2010 the Company changed the corporate name of this entity from Eveps International, Inc. to Wireless Power Controls, Inc. (“Wireless”), which remains a wholly-owned subsidiary of the Company as of September 30, 2010. All intercompany transactions between the Company and Wireless have been eliminated in the preparation of these consolidated financial statements.

ROCKY MOUNTAIN FUDGE COMPANY, INC. AND SUBSIDIARIES

(A Development Stage Company)

Notes to the Unaudited Condensed Consolidated Financial Statements

September 30, 2010 and December 31, 2009

NOTE 7 – SUBSEQUENT EVENTS

In accordance with ASC 855-10, Company management reviewed all material events through the date of this report and there are no material subsequent events to report.

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.

Going Concern

Our independent auditors have indicated in a footnote to our financial statements that we have not yet established an ongoing source of revenues sufficient to cover operating costs and to allow us to continue as a going concern. Our ability to continue as a going concern is dependent on us securing and maintaining adequate capital to fund operating losses until we become profitable. If we are unable to increase revenues or secure adequate financing in the near future, allowing us to fully implement our business plan, our ability to continue as a going concern may be compromised, and we could be forced to cease operations.

Plan of Operation

During the next 12 months we will discontinue our search for a joint venture candidate with whom we can contract to sub-lease industrial-quality kitchen facilities for our fudge production processes. We will instead commence a search for business partners to whom we can sell our proprietary fudge recipe and production technique. Our hope is to sell the recipe for $5,000 to approximately 100 different entities, yielding a cash inflow of approximately $500,000. We hope to locate two or more entities in each of the fifty states, and will focus primarily on entities with existing industrial kitchen facilities, primarily in locations with high tourist traffic. We believe this to be a feasible strategy, given the fact that our proprietary fudge recipe and production process is fairly simple to undertake, and produces a far superior fudge product to the majority of what is currently on the market. This strategy would eliminate our obligations with respect to production and shipping of product. With the proceeds of the fudge recipe sale we will expand our fudge and brittle operations locally. As of the date hereof, we have not completed any sales of our proprietary recipe and there can be no assurance that we can successfully make such sales in the future.

In addition, we will commence exploration for potential merger candidates – existing operating entities or start-ups, likely in the real estate industry. Any such mergers would be facilitated with the issuance of common stock, and would play a key role in diversifying our business interests. If cash inflows derived from the sale of our fudge recipe are not sufficient to fund the search for merger candidates as desired, it may be necessary for us to seek funds from our directors or principal stockholders or from outside financing. No assurance can be given that we will be successful in locating, negotiating or consummating any future merger. On May 21, 2010 the Company formed Eveps International, Inc. (“Eveps”), a Nevada company, as a wholly-owned subsidiary. Eveps was formed with the intent to help facilitate any future merger transactions with which the Company may become involved. On September 24, 2010 the Company changed the corporate name of this entity from Eveps International, Inc. to Wireless Power Controls, Inc. (“Wireless”). As of September 30, 2010 Wireless had no assets or liabilities, and had not earned any revenues.

We are also in the early stages of updating our website (www.greatestfudgeonearth.com) so as to accommodate online orders. It is our hope that this process will allow for minimal sales staff and minimal advertising expenses. We will also continue selling products at local retail outlets and in booths located at special events, fairs and festivals.

As of September 30, 2010, we had $27,526 in cash. Management does not anticipate needing additional capital to continue operations for the remainder of 2010. However, if revenues do not provide sufficient funds to continue operations past the end of the 2010 fiscal year, we may need to seek additional financing. Any additional funds would most likely come from current directors, although directors are under no obligation to provide additional funding and there is no assurance outside funding will be available on terms acceptable to us, or at all.

We expect that future facilities will be rented with equipment adequate to handle anticipated production. Therefore, we do not anticipate making any significant capital expenditures in the immediate future for new equipment or other assets. If additional equipment becomes necessary, we will most likely rely on outside funding.

We presently do not have any full time employees. We expect to add employees only if business warrants. Further, we believe that in the event increased business necessitates additional employees, we will be able to pay the added expenses of these employees from increased revenues.

Our plan of operations for the next twelve months will focus on completing development of our Internet website and locating business partners to whom we can sell our proprietary fudge recipe and production process. This 12-month plan of operations includes our goals of:

increasing revenues from sales of candy products;

expanding our marketing area to include communities outside the Salt Lake City metropolitan area;

· expanding the Internet business to be able to attract new customers, regardless of location, which will create an expanded mail order business;

locating business partners to whom we can sell our fudge recipe and production process;

locating existing operating entities with whom we can merge, to aid in business diversification.

To achieve these goals during the next twelve months, we intend to exploit our Internet website to the extent possible and create new business by advertising, as funds permit. Management believes that these plans can be successfully implemented.

Results of Operations

For the Three Months Ended September 30, 2010 and 2009

We did not realize any revenues during the three-month periods (“third quarter”) ended September 30, 2010 and 2009. During the third quarter of 2010, we incurred a net loss of $7,278 compared to a $3,787 loss during the third quarter of 2009. The increased loss for the third quarter of 2010 is attributed primarily to the 101% increase in general and administrative for the 2010 period, primarily due to an increase in legal and accounting costs related to the preparation and filing with the SEC of our requisite periodic reports.

For the Nine Months Ended September 30, 2010 and 2009

We did not realize any revenues during the nine-month periods ended September 30, 2010 and 2009. During the first nine months of 2010, we incurred a net loss of $29,601 compared to a $18,149 loss during the corresponding period of 2009. The increased loss for the 2010 period is attributed primarily to the 62% increase in general and administrative expenses for the 2010 period, primarily due to an increase in legal and accounting costs related to the preparation and filing with the SEC of our requisite periodic reports.

In the opinion of management, inflation has not and will not have a material effect on our operations in the immediate future.

Liquidity and Capital Resources

At September 30, 2010, we had cash on hand of $27,526 compared to $5,476 at December 31, 2009. The increase in cash is attributed primarily the issuance of 4,000,000 shares common stock during the period, yielding cash proceeds of $50,000, partially offset by cash payments on ongoing operating expenses.

We estimate cash requirements for the next twelve months to be approximately $50,000. Current cash on hand will not be sufficient and if we do not realize adequate revenues, we will need to seek additional funding. We have no agreements or arrangements for future capital. If management or stockholders are unable to provide additional future funding, if the need arises, we may have to look at alternative sources of funding. We do not have any firm plans as to the source of this alternative funding and 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 September 30, 2010, we had total assets of $29,403and stockholders' equity of $26,519, compared to total assets of $5,476 in cash and a stockholders' deficit of $19,444 at December 31, 2009.

Net Operating Loss

We have accumulated approximately $189,000 of net operating loss carryforwards through December 31, 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 carry-forwards 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 that can be used. No tax benefit has been reported in the financial statements for the year ended December 31, 2009 or the nine months ended September 30, 2010 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 contains forward-looking statements relating to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may,” “will” “should," “expect," "intend," "plan," anticipate," "believe," "estimate," "predict," "potential," "continue," or similar terms, variations of such terms or the negative of such terms. These statements are only predictions and involve known and unknown risks, uncertainties and other factors. Although forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment, actual results could differ materially from those anticipated in such statements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

This item is not required for a smaller reporting company.

Item 4(T). Controls and Procedures.

Evaluation of Disclosure Controls and Procedures. Disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) are designed to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms. Disclosure and control procedures are also designed to ensure that such information is accumulated and communicated to management, including the chief executive officer and principal accounting officer, to allow timely decisions regarding required disclosures.

As of the end of the period covered by this quarterly report, we carried out an evaluation, under the supervision and with the participation of management, including our chief executive officer and principal accounting officer, of the effectiveness of the design and operation of our disclosure controls and procedures. In designing and evaluating the disclosure controls and procedures, management recognizes that there are inherent limitations to the effectiveness of any system of disclosure controls and procedures, including the possibility of human error and the circumvention or overriding of the controls and procedures. Accordingly, even effective disclosure controls and procedures can only provide reasonable assurance of achieving their desired control objectives. Additionally, in evaluating and implementing possible controls and procedures, management is required to apply its reasonable judgment. Based on the evaluation described above, our management, including our principal executive officer and principal accounting officer, have concluded that, as of September 30, 2010, our disclosure controls and procedures were effective.

Changes in Internal Control Over Financial Reporting. Management has evaluated whether any change in our internal control over financial reporting occurred during the third quarter of fiscal 2010. Based on its evaluation, management, including the chief executive officer and principal accounting officer, initiated no changes in our internal control over financial reporting during the third quarter of fiscal 2010 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II — OTHER INFORMATION

Item 1. Legal Proceedings

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

Item 1A. Risk Factors

This item is not required for a smaller reporting company.

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

During the nine month period ended September 30, 2010, the Company issued an additional 4,000,000 common shares for $50,000 cash at $0.0125 per share. The aforementioned shares of common stock were issued in a private, isolated transaction to two persons familiar with the business of the company. In issuing the shares, we relied on the exemption from registration under the Securities Act of 1933 provided by Section 4(2) of that Act.

Item 3. Defaults Upon Senior Securities

This Item is not applicable.

Item 4. (Removed and Reserved)

Item 5. Other Information

On April 27, 2010, we dismissed the firm of Pritchett, Siler & Hardy, P.C., Certified Public Accountants (“Pritchett, Siler & Hardy”), as our independent certifying accountants pursuant to the unanimous consent of our Board of Directors. We initially retained Pritchett, Siler & Hardy on September 28, 2009, and the firm issued an audit report dated April 15, 2010 relating to our financial statements as of December 31, 2009. We have had no disagreements with the firm, whether or not resolved, on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which, if not resolved to Pritchett, Siler & Hardy’s satisfaction, would have caused it to make reference to the subject matter of the disagreement in connection with its report on our financial statements.

On April 27, 2010, we engaged Sadler, Gibb and Associates, Certified Public Accountants (“Sadler, Gibb and Associates”), as our new independent certifying accountants. During the two most recent fiscal years and the interim periods preceding the engagement, we have not consulted Sadler, Gibb and Associates regarding any of the matters set forth in Item 304(a)(2)(i) or (ii) of Regulation S-B.

In September, 2010 we changed the name of our wholly-owned subsidiary from Eveps International, Inc. to Wireless Power Controls, Inc. Management is currently exploring potential business opportunities in energy management that could result in a new business venture during the fourth quarter of 2010. However, no arrangement or definitive agreement has been made and there is no assurance that our subsidiary will be successful in entering into a new business.

Item 6. Exhibits

Exhibit 31.1

Certification of C.E.O. and Principal Accounting Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

Exhibit 32.1

Certification of C.E.O. and Principal Accounting Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

SIGNATURES

Pursuant to 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.

	ROCKY MOUNTAIN FUDGE COMPANY, INC.

Date: October 20, 2010	By:	/S/ Steven D. Moulton
		Steven D. Moulton
		President, C.E.O. and Director
		(Principal Accounting Officer)

Bitzio, Inc. - FORM 10-Q - October 21, 2010

Attached files

Bitzio, Inc. Reports