10-K 1 kurrant10k10final.txt FORM 10-K FOR YEAR ENDED SEPTEMBER 30, 2010 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K [X] 15, ANNUAL REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended: September 30, 2010 OR [ ] 15, 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: 0-1346352 Kurrant Food Enterprises, Inc. (Exact name of registrant in its charter) Colorado 20-3902781 (State or other jurisdiction of (I.R.S. Employer incorporation or organization Identification No.) 194 Hermosa Circle 81301 (Address of principal executive offices) (Zip Code) Registrant's Telephone number, including area code: (303) 349-9616 Securities registered pursuant to Section 12(b) of the Act: None Securities registered pursuant to Section 12(g) of the Act: Common Stock, $.0001 par value Indicate by check mark if the 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 Exchange act Yes [ ] No [x] Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (section 232.406 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 (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act during the preceding 12 months (or such shorter period that Dale the registrant was required to file such reports), and (2) has been subject to such filing requirements for at least the part 90 days. Yes [x] No[ ] 2 Indicate by check mark if disclosure of delinquent filers in response to Item 405 of Regulation S-K is not contained hereof, and will not be contained, to 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. [ ] 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 file" 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] 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, or the average bid and asked price of such common equity, as of the last business day of the registrant's most recently completed second fiscal quarter. The market value of the registrant's voting $.0001 par value common stock held by non-affiliates of the registrant at the end of the registrant's second fiscal quarter was approximately $128,377. Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date. The number of shares outstanding of the registrant's only class of common stock, as of December 28, 2010 was 12,667,533 shares of its $.001 par value common stock. No documents are incorporated into the text by reference. 3 KURRANT FOOD ENTERPRISES, INC. Form 10-K For the Fiscal Year Ended September 30, 2010 Table of Contents Part I ITEM 1. BUSINESS 4 ITEM 1A. RISK FACTORS 6 ITEM 1B. UNRESOLVED STAFF COMMENTS 6 ITEM 2. PROPERTIES 6 ITEM 3. LEGAL PROCEEDINGS 6 ITEM 4. (REMOVED AND RESERVED) 6 Part II ITEM 5. MARKET FOR COMPANY'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS 7 ITEM 6. SELECTED FINANCIAL DATA 8 ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 8 ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 12 ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 12 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 24 ITEM 9A. CONTROLS AND PROCEDURES 24 ITEM 9B. OTHER INFORMATION 27 Part III ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS, PROMOTERS, CONTROL PERSONS AND CORPORATE GOVERANCE; COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT 28 ITEM 11. EXECUTIVE COMPENSATION 29 ITEM 12. SECURITIES OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDERS MATTERS 30 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 30 ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES 30 Part IV ITEM 15. EXHIBITS 32 4 PART I ITEM 1. BUSINESS General Information ------------------- Kurrant Food Enterprises, Inc. was incorporated in the State of Colorado on May 3, 2005. We develop, own, and operate a catering business in Colorado through our subsidiary corporation, Kurrant Cuisine Enterprises, Inc. Our plan is to seek, investigate, and if such investigation warrants, acquire an interest in one or more business opportunities presented to us by persons or firms desiring the perceived advantages of a publicly held corporation. In August 2010, (amended in November 2010), the registrant entered into a non-binding letter of intent and share exchange agreement with Shandong Zhidali Industrial Co., Ltd., a People's Republic of China Corporation. The contemplated share exchange agreement has not been consummated as of the date of the issuance of these financial statements. Discussion of the proposed business under this caption and throughout this annual report is purposefully general and is not meant to restrict our virtually unlimited discretion to search for and enter into a business combination. Our headquarters are located at 194 Hermosa Circle, Durango, Colorado 81301. Our phone number at our headquarters is (303) 349-9616. Our fiscal year end is September 30th. Overview of our Operations -------------------------- Our operations have included social catering, which is composed of individuals who contract for private events, such as cocktail parties and buffet dinners and business catering, which is composed of companies which use catering services primarily for breakfasts, lunches and meetings. We use the term social catering to describe catering for individuals hosting a special event such as a cocktail party, holiday dinner, or private buffet. These events are generally held in private homes. Such customers generally seek caterers who offer high-end food products as well as service for hors d'oeuvers and related activities. Customers generally contract for evening or weekend events involving dinner or cocktail parties. We use the term business catering to describe customers seeking food service for meetings and breakfast and lunch delivery, primarily in a business setting. These customers generally seek convenience and reliability. However, they are generally also attracted to gourmet quality food products which cannot be found in conventional take-out restaurants. The catering industry is a subset of the restaurant industry and has been termed the accommodation and food services sector. The catering industry comprises establishments primarily engaged in providing single event-based food services. The catering industry is experiencing strong growth according to the trade journal Specialty Food News, which states that off-premise catering is the second biggest growth sector, 5 second only to home meal replacement. According to the National Catering industry, the number of catering companies nationwide as of the end of the third quarter of 2010 is approximately 46,000 caterers. We also believe that we must provide a high level of service for our customers. We believe that it is our responsibility to make certain that our products and services are satisfying for our catering customers. In 2008, we began a management project of a restaurant in Durango, Colorado. This restaurant is known as the Swing at Dalton Ranch Restaurant. We received a management fee of $ 4,000 per month under an oral management agreement. This agreement was terminated in 2008. Operations, Management and Employees We believe that operating from one location is central to our current operations. We currently concentrate our catering operations in the Durango, Colorado area. Our food products will be available at local markets and on our website, which is under development. We have not had any significant catering operations in fiscal years ended September 30, 2010 and 2009. We have one full-time employee, our President, Mr. Bell. As we expand, we intend to hire additional employees. We also use part-time contract help as needed. While Mr. Bell, our President, has had extensive catering experience, we must eventually recruit additional personnel. We will strive to maintain quality and consistency through the careful training and supervision of personnel and the establishment of, and adherence to, high standards relating to personnel performance, customer service, and maintenance of our facilities. We believe that we will be able to attract high quality, experienced personnel by paying competitive wages and salaries. Marketing and Promotion ----------------------- We plan to market through direct contact with prospective customers and via the website we plan to develop in the second quarter of our next fiscal year. We have no sales representative who solicits potential clients. Christopher Bell, our president, will use his contacts to generate customers and will attempt to develop repeat business from catering events. Patents and Trademarks ---------------------- We do not currently have any patent or trademark protection. If we determine it is feasible to file for such trademark protection, we still have no assurance that doing so will prevent competitors from using the same or similar names, marks, concepts or appearance. 6 Competition ----------- The food and production industry, in general, is intensely competitive. It is a fragmented industry, with no one company, or groups of companies in control. The relationships are typically local and based upon providing quality service and products. Generally, we compete with a number of local caterers and producers, all of whom are larger and better-financed than we are. We must rely upon our contacts, referrals from customers, and repeat business to be successful. Government and Industry Regulation ---------------------------------- We are subject to regulation as to our food service by health authorities. We do not believe this regulation is material. Otherwise, we are not subject to any material government or industry regulation. Employees and Employment Agreements ----------------------------------- We have one full-time employee, our president, Mr. Bell. We reimburse him for any out-of-pocket expenses he incurs on our behalf. In addition, in the future, we may approve additional payment of salaries for our management, but currently, no such plans have been approved. We do not currently pay for vacation, holidays or provide major medical coverage. None of our officers or directors is a party to any employment agreement. However, we may adopt such plans in the future. We also use part-time help for specific events. ITEM 1A. RISK FACTORS Not applicable to a smaller reporting company. ITEM 1B. UNRESOLVED STAFF COMMENTS Not applicable ITEM 2. PROPERTIES Our offices are located at 194 Hermosa Circle, Durango, Colorado 81301. These offices are donated by Christopher Bell, our sole officer and director. ITEM 3. LEGAL PROCEEDINGS. The registrant is not involved in any legal proceedings at this date. ITEM 4. (REMOVED AND RESERVED) 7 PART II ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Item 5(a) a) Market Information. Our common stock has traded on the Over-the- Counter Bulletin Board since August 2007. Currently, our common stock trades under the symbol KRTF. The following represent the high and low bid quotation for the registrant's common stock for the fiscal year ended September 30, 2010 and 2009. These quotations reflect inter- dealer prices, without retail mark-up, mark-down or commissions, and may not represent actual transactions. Year Ending September 30, 2010 High Low ------------------------------ ---- --- First Quarter $.05 $.01 Second Quarter $.05 $.011 Third Quarter $.15 $.05 Fourth Quarter $.15 $.05 Year Ending September 30, 2009 High Low ------------------------------ ---- --- First Quarter $.05 $.03 Second Quarter $.05 $.05 Third Quarter $.05 $.05 Fourth Quarter $.05 $.05 b) Holders. At December 28, 2010, there were approximately 100 shareholders of the registrant. c) Dividends. Holders of the registrant's common stock are entitled to receive such dividends as may be declared by its board of directors. No dividends on the registrant's common stock have ever been paid, and the registrant does not anticipate that dividends will be paid on its common stock in the foreseeable future. d) Securities authorized for issuance under equity compensation plans. Not applicable. e) Performance graph. Not applicable. f) Sale of unregistered securities. None. Item 5(b) Use of Proceeds. Not applicable. Item 5(c) Purchases of Equity Securities by the issuer and affiliated purchasers. None. 8 ITEM 6. SELECTED FINANCIAL DATA Not applicable to a smaller reporting company. ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion contains forward-looking statements regarding us, our business, prospects and results of operations that are subject to certain risks and uncertainties posed by many factors and events that could cause our actual business, prospects and results of operations to differ materially from those that may be anticipated by such forward-looking statements. Factors that may affect such forward- looking statements include, without limitation: our ability to successfully develop new products and services for new markets; the impact of competition on our revenues, changes in law or regulatory requirements that adversely affect or preclude clients from using us for certain applications; delays our introduction of new products or services; and our failure to keep pace with our competitors. When used in this discussion, words such as "believes", "anticipates", "expects", "intends" and similar expressions are intended to identify forward-looking statements, but are not the exclusive means of identifying forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this report. We undertake no obligation to revise any forward-looking statements in order to reflect events or circumstances that may subsequently arise. Readers are urged to carefully review and consider the various disclosures made by us in this report and other reports filed with the Securities and Exchange Commission that attempt to advise interested parties of the risks and factors that may affect our business. Results of Operations --------------------- Our accountants have expressed substantial doubt about our ability to continue as a going concern as a result of our working capital deficit and accumulated deficit due to our history of net losses. Our ability to achieve and maintain profitability and positive cash flows is dependent upon our ability to successfully develop a catering business and our ability to generate revenues. We began our operations in May, 2005. For the year ended September 30, 2010, we had revenues of $3,965, compared to revenues of $2,851 for year ended September 30, 2009 comprised of rental income. Our rental income is a result of renting our catering equipment to other caterers. For the year ended September 30, 2010, we had gain on asset disposals of $1,498 for the sale of a catering van, depreciation of $7,104 and general and administrative expenses of $24,977. Comparatively, for the year ended September 30, 2009, we had gain on asset disposals of $757 for the sale of used kitchen equipment, depreciation of $8,429 and general and administrative expenses of $45,957. General and administrative expenses consisted of basic 9 operating expenses. The decrease in general and administrative expenses was the due to decreased operations resulting in minimal costs. Our general and administrative expenses were the single largest item of our operating expenses. The major components of these general and administrative expenses were legal fees, accounting, transfer agent and insurance in 2010 and legal fees, accounting, officer salary, transfer agent fees and insurance in 2009. Other Income We recognized other income of $50,685 and $8,350, respectively, for the years ended September 30, 2010 and 2009. For the year ended September 30, 2010 other income was comprised of a finder's fee related to the sale of an affiliated company to a non-related third party. For the year ended September 30, 2009 other income was comprised of management fees relating to the management of the food and beverage operations of Swing at Dalton Ranch. Liquidity and Capital Resources ------------------------------- As of September 30, 2010, we had cash or cash equivalents of $7,758, compared to cash or cash equivalents of $830 as of September 30, 2009. Due to the lack of revenue for the years ended September 30, 2010 and 2009 the company had working capital deficits of $88,796 and $108,034, respectively. Cash flows provided by investing activities were $7,000 resulting from proceeds from asset disposals for the year ended September 30, 2010 compared to cash flows provided by investing activities of $2,500 for the year ended September 30, 2009 also resulting from proceeds from asset disposals. For the year ended September 30, 2010, cash flows used in financing activities consisted of proceeds from borrowings on notes payable of $8,561 and payments on notes payable of $34,724. As a result, net cash used in financing activities of $26,163 for the year ended September 30, 2010. For the year ended September 30, 2009, cash flows provided by financing activities consisted of proceeds from borrowings on notes payable of $78,515 and payments on notes payable of $26,009. As a result, net cash provided by financing activities of $52,506 for the year ended September 30, 2009. At this time, we have no other resources on which to get cash if needed without his assistance and no definitive plans to raise additional capital. Our principal source of liquidity is currently from our financing activities and historically from our operations. Our business activity is closely tied to the economy of Colorado and the U.S. economy. A slow down in entertaining activity will have a negative impact to our business. We try to operate with minimal overhead. Our primary activity will be to seek to expand the number of catering events and, 10 consequently, our sales. If we succeed in expanding our customer base and generating sufficient sales, we will become profitable. We cannot guarantee that this will ever occur. Plan of Operation ----------------- Currently, we are conducting business in only one location in the Durango, Colorado area. In addition we plan on expanding our operations to include retail food products. The registrant is also seeking a company or companies that it can acquire or with which it can merge. If we are not successful in our operations we will be faced with several options: 1. Cease operations and go out of business; 2. Continue to seek alternative and acceptable sources of capital; 3. Bring in additional capital that may result in a change of control; or 4. Identify a candidate for acquisition that seeks access to the public marketplace and its financing sources. Our recent public offering provided sufficient capital in the short term for our past level of operations. However, we anticipate needing to raise additional capital resources in the next twelve months. At this time we have no other resources on which to get cash if needed without their assistance and no definitive plans to do raise additional capital. Proposed Milestones to Implement Business Operations ---------------------------------------------------- At the present time, we are operating from one location in the Durango, Colorado area. We estimate that we must generate at least $5,000 in revenue per month to be profitable. We generated less than $1,000 in revenue per month for the fiscal years ended September 30, 2010 and 2009. We anticipate the need to raise additional capital resources in the next twelve months unless we are more successful than we have anticipated. We expect the source of such funding to be generated internally or through financing from the offering of debt or equity securities. There is no assurance that additional funds will be made available to us on terms that will be acceptable, or at all, if and when needed. We also are planning to rely on the possibility of referrals from customers and will strive to satisfy our customers. We believe that referrals will be an effective form of advertising because of the quality of service that we bring to customers. We believe that satisfied customers will bring more and repeat customers. In the next 12 months, we do not intend to spend any substantial funds to purchase any significant property or equipment. 11 Recently Issued Accounting Pronouncements ----------------------------------------- We have implemented all new accounting pronouncements that are in effect and that may impact our financial statements and we do not believe that there are any new accounting pronouncements that have been issued that might have a material impact on our financial position or results of operations. Seasonality ----------- We have found that our sales are impacted by seasonal demands for our services, with greater sales coming at the end of the calendar year and around major holidays. Critical Accounting Policies ---------------------------- Accounts receivable The registrant reviews accounts receivable periodically for collectability and establishes an allowance for doubtful accounts and records bad debt expense when deemed necessary. At September 30, 2010 and 2009, the registrant had no allowance for doubtful accounts. Property and equipment Property and equipment are recorded at cost and depreciated over each item's estimated useful life, which is five years for vehicles, computers and other items. Revenue recognition Revenue is recognized on an accrual basis after services have been performed under contract terms, the event price to the client is fixed or determinable, and collectibility is reasonably assured. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect 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. Income tax The registrant accounts for income taxes on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. 12 Financial Instruments The carrying value of the registrant's financial instruments, including cash trade accounts payable and notes payable. Due to the short-term nature of these financial instruments, the registrant believes, that the carrying values as reported in the accompanying balance sheets, approximates fair value. ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Not applicable ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA Kurrant Food Enterprises, Inc. Index to the Consolidated Financial Statements Report of Independent Registered 13 Public Accounting Firms Consolidated Balance Sheets 15 Consolidated Statements of Operations 16 Consolidated Statements of Stockholders' Deficit 17 Consolidated Statements of Cash Flows 18 Notes to Consolidated Financial Statements 19 13 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors Kurrant Food Enterprises, Inc. Durango, Colorado We have audited the accompanying consolidated balance sheet of Kurrant Food Enterprises, Inc. (the "Company"), as of September 30, 2010, the related consolidated statements of operations, stockholders' deficit and cash flows for the year then ended. These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audit. The consolidated financial statements as of and for the year ended September 30, 2009 were audited by other auditors whose report expressed an unqualified opinion on those consolidated financial statements. We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. 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 includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall consolidated financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of Kurrant Food Enterprises, Inc. as of September 30, 2010 and the consolidated results of their operations and their consolidated cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America. The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the consolidated financial statements, the Company has a working capital deficit and an accumulated deficit. Those conditions raise substantial doubt about the Company's ability to continue as a going concern. Management's plans in regard to those matters are also described in Note 1. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. /s/GBH CPA's, PC Houston, Texas December 16, 2010 14 RONALD R. CHADWICK, P.C. Certified Public Accountant 2851 South Parker Road, Suite 720 Aurora, Colorado 80014 Telephone: (303) 306-1967 Fax: (303) 306-1944 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Board of Directors Kurrant Food Enterprises, Inc. Denver, Colorado I have audited the accompanying consolidated balance sheets of Kurrant Food Enterprises, Inc. as of September 30, 2009 and 2008, and the related consolidated statements of operations, stockholders' equity and cash flows for the years then ended. These financial statements are the responsibility of the Company's management. My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audit provides a reasonable basis for my opinion. In my opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of Kurrant Food Enterprises, Inc. as of September 30, 2009 and 2008, and the related consolidated statements of operations, stockholders' equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. Aurora, Colorado /s/Ronald R. Chadwick, P.C. January 5, 2010 ---------------------------- Ronald R. Chadwick, P.C. 15 KURRANT FOOD ENTERPRISES, INC. CONSOLIDATED BALANCE SHEETS September 30, September 30 2010 2009 -------------- ------------- ASSETS Current assets Cash $ 7,758 $ 830 Prepaid expenses and other current assets 3,000 - -------- -------- Total current assets 10,758 830 Property and equipment, net of accumulated depreciation of $19,427 and $30,396 619 13,226 -------- -------- Total Assets $ 11,377 $ 14,056 ======== ======== LIABILITIES & STOCKHOLDERS' DEFICIT Current liabilities Accounts payable and accrued liabilities $ 1,955 $ 1,670 Notes payable-related party 97,599 104,022 Current portion of Notes payable - 3,172 -------- -------- Total current liabilities 99,554 108,864 -------- -------- Notes payable, net of current portion - 7,892 --------- --------- - 7,892 -------- -------- Total Liabilities 99,554 116,756 -------- -------- STOCKHOLDERS' DEFICIT Preferred stock, $.10 par value; 1,000,000 shares authorized; none issued and outstanding - - Common stock, $.001 par value; 50,000,000 shares authorized; 12,667,533 shares issued and outstanding 12,667 12,667 Additional paid in capital 249,771 249,771 Accumulated deficit (350,615) (365,138) --------- --------- Total Stockholders' Deficit (88,177) (102,700) --------- --------- Total Liabilities and Stockholders' Deficit $ 11,377 $ 14,056 ========= ========= The accompanying notes are an integral part of these consolidated financial statements. 16 KURRANT FOOD ENTERPRISES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS Year Ended Year Ended September 30, 2010 September 30, 2009 ------------------ ------------------ Revenues $ 3,965 $ 2,851 Operating expenses: Gain on asset disposals (1,498) (757) Depreciation 7,104 8,429 General and administrative 24,977 45,957 -------- -------- 30,583 53,629 -------- -------- Loss from operations (26,618) (50,778) -------- -------- Other income (expense): Other income 50,685 8,350 Interest expense (9,544) (10,771) -------- -------- 41,141 (2,421) -------- -------- Income (loss) before provision (benefit) for income taxes 14,523 (53,199) Provision (benefit) for income tax - - -------- -------- Net income (loss) $ 14,523 $(53,199) ======== ======== Net income (loss) per share (Basic and fully diluted) $ 0.00 $ 0.00 ======== ======== Weighted average number of common shares outstanding 12,667,533 12,667,533 ========== ========== The accompanying notes are an integral part of these consolidated financial statements. 17 KURRANT FOOD ENTERPRISES, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT FOR THE YEARS ENDED SEPTEMBER 30, 2010 and 2009 Common Stock ------------ Additional Total Par $.001 Paid in Accumulated Stockholders' Shares Amount Capital Deficit Deficit ------ --------- ---------- ----------- ------------ Balances at September 30, 2008 12,667,533 $ 12,667 $249,771 $(311,939) $ (49,501) Net Loss - - - (53,199) (53,199) ---------- -------- -------- --------- --------- Balances at September 30, 2009 12,667,533 $ 12,667 $249,771 $(365,138) $(102,700) Net income - - - 14,523 14,523 ---------- -------- -------- --------- --------- Balances at September 30, 2010 12,667,533 $ 12,667 $249,771 $(350,615) $ (88,177) ========== ======== ======== ========= =========

The accompanying notes are an integral part of these consolidated financial statements. 18 KURRANT FOOD ENTERPRISES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS Year Ended Year Ended September 30, 2010 September 30, 2009 ------------------ ------------------ Cash Flows From Operating Activities: Net income (loss) $ 14,523 $ (53,199) Adjustments to reconcile net loss to net cash provided by (used for) operating activities: Depreciation 7,104 8,429 Gain on asset disposals (1,498) (757) Changes in working capital: Accounts receivable - 1,335 Prepaid expenses and other current assets (3,000) - Accounts payable and accrued liabilities 8,962 (10,447) --------- --------- Net cash provided by (used for) operating activities 26,091 (54,639) --------- --------- Cash Flows From Investing Activities: Proceeds from asset disposals 7,000 2,500 --------- --------- Net cash provided by (used for) investing activities 7,000 2,500 --------- --------- Cash Flows From Financing Activities: Proceeds from borrowing on notes payable 8,561 78,515 Payments on notes payable (34,724) (26,009) --------- --------- Net cash provided by (used for) financing activities (26,163) 52,506 --------- --------- Net Increase In Cash 6,928 367 Cash At The Beginning Of The Period 830 463 --------- --------- Cash At The End Of The Period $ 7,758 $ 830 ========= ========= Supplemental Disclosure ----------------------- Cash paid for interest $ 668 $ 815 Cash paid for income taxes $ - $ -

The accompanying notes are an integral part of these consolidated financial statements. 19 KURRANT FOOD ENTERPRISES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 1. ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Kurrant Food Enterprises, Inc. (the "Company"), was incorporated in the State of Colorado on May 3, 2005. The Company was formed to act as a holding corporation for its wholly owned subsidiary, Kurrant Cuisine Enterprises, Inc., a Colorado corporation engaged in the food catering business. The Company is also seeking a company or companies that it can acquire or with which it can merge. Going concern At September 30, 2010, the Company has a working capital deficit and an accumulated deficit. These conditions raise substantial doubt about the Company's ability to continue as a going concern. To continue as a going concern, the Company will need to raise additional capital through the issuance and sale of debt or equity securities or obtain financing from related parties or financial institutions. There is no assurance that the Company can raise additional capital through the issuance of debt or equity securities or potential lenders will extend offers with terms that are acceptable to the Company. Principles of consolidation The accompanying consolidated financial statements include the accounts of Kurrant Food Enterprises, Inc. and its wholly-owned subsidiary. All intercompany accounts and transactions have been eliminated in consolidation. Cash and cash equivalents The Company considers all highly liquid investments with an original maturity of three months or less as cash equivalents. Accounts receivable The Company reviews accounts receivable periodically for collectability and establishes an allowance for doubtful accounts and records bad debt expense when deemed necessary. At September 30, 2010 and 2009 the Company had no allowance for doubtful accounts. Property and equipment Property and equipment are recorded at cost and depreciated over each item's estimated useful life, which is five years for vehicles, computers and other items. Revenue recognition Revenue is recognized on an accrual basis after services have been performed under contract terms, the event price to the client is fixed or determinable, and collectibility is reasonably assured. 20 KURRANT FOOD ENTERPRISES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 1. ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued): Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect 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. Income tax The Company accounts for income taxes on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. Net income (loss) per share The net income (loss) per share is computed by dividing the net income (loss) by the weighted average number of shares of common outstanding. Warrants, stock options, and common stock issuable upon the conversion of the Company's preferred stock (if any), are not included in the computation if the effect would be anti-dilutive and would increase the earnings or decrease loss per share. The Company had no dilutive securities as of September 30, 2010 and 2009. Financial Instruments The carrying value of the Company's financial instruments, including cash trade accounts payable and notes payable. Due to the short-term nature of these financial instruments, the Company believes, that the carrying values as reported in the accompanying balance sheets, approximates fair value. Recent Accounting Pronouncements The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations. 21 KURRANT FOOD ENTERPRISES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2. PROPERTY AND EQUIPMENT Property and equipment is comprised of the following: September 30, September 30, 2010 2009 ------------ ------------ Vehicles $ 15,648 $ 39,224 Furniture and fixtures 1,486 1,486 Computers 2,495 2,495 Other 417 417 --------- --------- 20,046 43,622 Less accumulated depreciation (19,427) (30,396) --------- --------- Net property and equipment $ 619 $ 13,226 ========= ========= NOTE 3. NOTES PAYABLE At September 30, 2010 and 2009, the Company had a $0 and $11,065, respectively, note payable balance outstanding to a finance company. The proceeds from the note payable were used to finance the purchase of Company equipment. The note payable was collateralized by the Company equipment, was guaranteed by a Company officer, bore interest at 8.9% per annum, and had an original maturity date in November 2012, with principal and interest payments of $335 per month. As a result of the sale and disposal of the collateralized equipment during 2010, the Company repaid the note payable. At September 30, 2010 and 2009, the Company had $97,599 and $104,022 in notes payable and accrued interest owed to an officer and another related party. The proceeds from the notes payable were used to finance the operations of the Company. The notes payable are unsecured, bear interest at 15% per annum, and are due on demand. Interest expense on those notes payable was $9,544 and $10,771 in 2010 and 2009, respectively, with accrued interest payable of $17,960 and $9,285 at September 30, 2010 and 2009, respectively. 22 KURRANT FOOD ENTERPRISES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 4. INCOME TAXES Net deferred tax assets consist of the following components: September 30, September 30, 2010 2009 ------------ ------------ Deferred tax asset $ 119,209 $ 124,147 Valuation allowance (119,209) (124,147) ------------ ------------ Net deferred tax asset $ - $ - ============ ============ Deferred tax assets at September 30, 2010, consist primarily of net operating loss carryforwards. The income tax provision differs from the amount of income tax determined by applying the U.S. federal and state income tax rates to pretax income from continuing operations as follows: Year Ended Year Ended September 30, September 30, ------------ ------------ Computed tax at the statutory rate of 34% $ 4,938 $ (18,088) Change in valuation allowance (4,938) 18,088 --------- --------- Net deferred tax assets $ - $ - ========= ========= The Company has accumulated net operating loss carryovers of approximately $350,000 as of September 30, 2010 which are available to reduce future taxable income. Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards for federal income tax reporting purposes may be subject to annual limitations. A change in ownership may limit net operating loss carry forwards in future years. The tax losses begin to expire in 2026 to 2029. The fiscal years 2007 through 2009 remain open to examination by federal tax authorities and other tax jurisdictions. NOTE 5. RELATED PARTY TRANSACTIONS Office space and management services are provided without charge by the sole officer and director of the Company. Such costs are immaterial to the consolidated financial statements and accordingly, have not been reflected therein. 23 NOTE 6. SUBSEQUENT EVENTS In accordance with ASC 855, the Company evaluated subsequent events through the date these financial statements were issued. There were no material subsequent events that required recognition or additional disclosure in these financial statements, except as follows: In August 2010 (amended in November 2010), the Company entered into a non-binding letter of intent and share exchange agreement with Shandong Zhidali Industrial Co., Ltd., a People's Republic of China Corporation. Shandong Zhidali will acquire approximately 95% of the Company's common shares, resulting in a change in control. Shandong Zhidali manufactures electronic equipment in China. Consummation of the Merger Transactions is subject to, among other customary closing conditions, the consent of the majority owners of Shandong Zhidali Industrial Co., Ltd. The contemplated share exchange agreement has not been consummated as of the date of the issuance of these financial statements. 24 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE None. ITEM 9A. CONTROLS AND PROCEDURES Evaluation of Disclosure Controls and Procedures We conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of September 30, 2010. The evaluation was conducted under the supervision and with the participation of management, including our chief executive officer. Disclosure controls and procedures mean our controls and other procedures that are designed to ensure that information required to be disclosed in the reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms. Disclosure controls and procedures are also designed to provide reasonable assurance that such information is accumulated and communicated to our management, including the chief executive officer, as appropriate to allow timely decisions regarding required disclosure. Our quarterly evaluation of disclosure controls and procedures includes an evaluation of some components of our internal control over financial reporting, and internal control over financial reporting is also separately evaluated on an annual basis for purposes of providing the management report that is set forth below. The evaluation of our disclosure controls and procedures included a review of their objectives and design, our implementation of the controls, and the effect of the controls on the information generated for use in this Form 10-K. In the course of the controls evaluation, we sought to identify any past instances of data errors, control problems or acts of fraud and sought to confirm that appropriate corrective actions, including process improvements, were being undertaken. This evaluation is performed on a quarterly basis so that the conclusions of management, including the chief executive officer, concerning the effectiveness of our disclosure controls and procedures can be reported in our periodic reports. Our chief executive officer has concluded, based on the evaluation of the effectiveness of the disclosure controls and procedures by our management, that as of September 30, 2010, our disclosure controls and procedures were not effective due to the material weaknesses described in Management's Report on Internal Control over Financial Reporting below. 25 Management's Report on Internal Control over Financial Reporting Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is defined in Rule 13a-15(f) or 15d-15(f) promulgated under the Securities Exchange Act of 1934 as a process designed by, or under the supervision of, a company's principal executive and principal financial officers and effected by a company's board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles and includes those policies and procedures that: Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and disposition of the assets of the company; Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States, and that receipts and expenditures of the registrant are being made only in accordance with authorizations of management and directors of the registrant; and 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. As required by Rule 13a-15(c) promulgated under the Exchange Act, our management, (chief executive officer and chief financial officer), evaluated the effectiveness of our internal control over financial reporting as of September 30, 2010. Management's assessment was based on criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control - Integrated Framework. Based upon management's assessment using the criteria contained in COSO, and for the reasons discussed below, our management has concluded that, as of September 30, 2010, our internal control over financial reporting were ineffective due to the material weaknesses described below. 1) The registrant did not sufficiently segregate duties over incompatible functions. The registrant's inability to sufficiently segregate duties is due to a small number of personnel. 2) In conjunction with the lack of segregation of duties, the registrant did not institute specific anti-fraud controls. While 26 management found no evidence of fraudulent activity, certain individuals have access to both accounting records and corporate assets, principally the operating bank account. Under the rules promulgated by the US Securities and Exchange Commission, the term "material weakness" means a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the registrant's annual or interim financial statements will not be prevented or detected on a timely basis. A material weakness in internal control over financial reporting does not imply that a material misstatement of the financial statements has occurred, but rather, that there is a reasonable possibility that a material misstatement could occur. Inherent Limitations over Internal Controls Our internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. Our 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 disposition of our assets; (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 are being made only in accordance with authorizations of management and directors; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of assets that could have a material effect on the financial statements. Management, including our chief executive officer and chief accounting officer, does not expect that our internal controls will prevent or detect all errors and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control 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 internal controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected. Also, any evaluation of the effectiveness of controls in future periods are subject to the risk that those internal 27 controls may become inadequate because of changes in business conditions, or that the degree of compliance with the policies or procedures may deteriorate. Changes in Internal Control over Financial Reporting There have not been any changes in the registrant's internal control over financial reporting, as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act, during its fourth fiscal quarter that have materially affected, or are reasonably likely to materially affect its internal control over financial reporting. ITEM 9B. OTHER INFORMATION None 28 PART III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERANCE Our director and executive officer, his age and positions held with us as of December 28, 2010 are as follows: NAME AGE POSITION HELD ---- --- ------------- Christopher Bell President, Chief Executive 194 Hermosa Circle Officer, Secretary Treasurer Durango, Colorado 80205 33 and Chief Financial Officer The person named above is expected to hold said offices/positions until the next annual meeting of our stockholders. He cannot be considered to be an independent director. Background Information about Our Officers and Directors ------------------------------------------------------- Christopher Bell has been the president, chief executive officer, treasurer, chief financial officer and a director of our company since inception in May, 2005. Mr. Bell became our secretary in 2008. In college, Mr. Bell worked for two years at Strater Hotel in Durango, Colorado, from 1997 to 1999. From 1999 to 2001, Mr. Bell was a sous chef at E.O.'s Chop House in Durango, CO, a 4 star rated restaurant. From 2002 to 2005, Mr. Bell worked for Footers Catering, a catering company in Denver, Colorado as the executive chef until co-founding our company. Mr. Bell received a B.A. in business administration and tourism and resort management at Fort Lewis College in Durango, CO. Section 16(a) Beneficial Ownership Reporting Compliance ------------------------------------------------------- Under Section 16(a) of the Securities Exchange Act of 1934, as amended, an officer, director, or greater-than-10% shareholder of the registrant must file a Form 4 reporting the acquisition or disposition of registrant's equity securities with the Securities and Exchange Commission no later than the end of the second business day after the day the transaction occurred unless certain exceptions apply. Transactions not reported on Form 4 must be reported on Form 5 within 45 days after the end of the registrant's fiscal year. Such persons must also file initial reports of ownership on Form 3 upon becoming an officer, director, or greater-than-10% shareholder. To our knowledge, based solely on a review of the copies of these reports furnished to it, our officers, directors and 10% control persons have not complied with applicable Section 16(a) filing requirements during the year ended September 30, 2010. Code of Ethics Policy --------------------- We have not yet adopted a code of ethics that applies to our principal executive officer, principal financial officer, principal accounting officer or controller or persons performing similar functions. 29 Corporate Governance -------------------- There have been no changes in any state law or other procedures by which security holders may recommend nominees to our board of directors. In addition to having no nominating committee for this purpose, we currently have no specific audit committee and no audit committee financial expert. Based on the fact that our current business affairs are simple, any such committees are excessive and beyond the scope of our business and needs. Indemnification --------------- The registrant shall indemnify to the fullest extent permitted by, and in the manner permissible under the laws of the State of Colorado, any person made, or threatened to be made, a party to an action or proceeding, whether criminal, civil, administrative or investigative, by reason of the fact that he is or was a director or officer of the registrant, or served any other enterprise as director, officer or employee at the request of the registrant. The board of directors, in its discretion, shall have the power on behalf of the registrant to indemnify any person, other than a director or officer, made a party to any action, suit or proceeding by reason of the fact that he/she is or was an employee of the registrant. Insofar as indemnification for liabilities arising under the Act may be permitted to directors, officers and controlling persons of the registrant, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceedings) is asserted by such director, officer, or controlling person in connection with any securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issues. INDEMNIFICATION OF OFFICERS OR PERSONS CONTROLLING THE REGISTRANT FOR LIABILITIES ARISING UNDER THE SECURITIES ACT OF 1933, IS HELD TO BE AGAINST PUBLIC POLICY BY THE SECURITIES AND EXCHANGE COMMISSION AND IS THEREFORE UNENFORCEABLE. ITEM 11. EXECUTIVE COMPENSATION Until December 31, 2009, Mr. Bell received a fixed salary of $4,000 per month. Since January 1, 2010, Mr. Bell has not received any further compensation. In addition, our officer and director is reimbursed for any out-of- pocket expenses he incurs on our behalf. In the future, we may approve payment of salaries for our management, but currently, no such plans 30 have been approved. For our full-time office employees, we pay for vacation and holidays but do not provide major medical coverage. In addition, none of our officers, directors or employees is a party to any employment agreements. ITEM 12. SECURITIES OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDERS MATTERS The following sets forth the number of shares of our $0.001 par value common stock beneficially owned by (i) each person who, as of December 28, 2010, was known by us to own beneficially more than five percent (5%) of its common stock; (ii) our individual directors and (iii) our officers and directors as a group. A total of 12,667,533 common shares were issued and outstanding as of December 28, 2010. Name and Address No. of Beneficial Shares Percentage Owner Owned of Ownership ---------------- ------ ------------ Christopher Bell 10,100,000 79.7% 194 Hermosa Circle Durango, Colorado 80205 All Officers and 10,100,000 79.7% Directors as a Group (one person) ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS At September 30, 2010 and 2009, the registrant had $97,599 and $104,022 in notes payable and accrued interest owed to an officer, and another related party. The proceeds from the notes payable were used to finance the operations of the registrant. The notes payable are unsecured, bear interest at 15% per annum, and are due on demand. Interest expense on those notes payable was $9,544 and $10,771 in 2010 and 2009, respectively, with accrued interest payable of $17,960 and $9,285 at September 30, 2010 and 2009, respectively. Office space and management services provided without charge by the sole officer and director of the registrant. Such costs are immaterial to the consolidated financial statements and accordingly, have not been reflected therein. ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES. The firm of GBH CPAs, PC currently serves as the registrant's independent accountants. They have served as our independent registered public accounting firm since September 2010. Our previous auditor was Ronald R. Chadwick, P.C., Certified Public Accountant. 31 We do not have an audit committee and as a result its entire board of directors performs the duties of an audit committee. Our board of directors evaluates the scope and cost of the engagement of an auditor before the auditor renders audit and non-audit services. The board of directors of the registrant, in its discretion, may direct the appointment of different public accountants at any time during the year, if the board believes that a change would be in the best interests of the stockholders. The board of directors has considered the audit fees, audit-related fees, tax fees and other fees paid to the registrant's accountants, as disclosed below, and had determined that the payment of such fees is compatible with maintaining the independence of the accountants. Audit Fees: The aggregate fees, including expenses, in connection with the audit of our consolidated financial statements for the most recent fiscal year and for the reviews of our financial information included in our annual report on Form 10-K and our quarterly reports on Form 10-Q during the fiscal years ending September 30, 2010 and 2009 were approximately $11,000 and $12,000, respectively. 32 Part IV ITEM 15. EXHIBITS The following of exhibits are filed with this report: (31) 302 certification (32) 906 certification 33 SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this Report to be signed on its behalf by the undersigned duly authorized person. Date: December 28, 2010 Kurrant Food Enterprises, Inc. /s/Christopher Bell ------------------------------ By: Christopher Bell, President Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. /s/Christopher Bell CEO/CFO/Controller/Director 12/28/10 ------------------------ Christopher Bell

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

[x] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the Fiscal Year Ended: September 30, 2009

[] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Commission File No. 0-1346352

KURRANT FOOD ENTERPRISES, INC.

(Exact Name of Registrant as specified in its charter)

Colorado	20-3902781
(State or other jurisdiction	(IRS Employer File Number)
of incorporation)

194 Hermosa Circle
Durango, Colorado	81301
(Address of principal executive offices)	(Zip code)

(970) 247-4980

(Registrant's telephone number, including area code)

Securities to be Registered Pursuant to Section 12(b) of the Act: None

Securities to be Registered Pursuant to Section 12(g) of the Act:

Common Stock, $.0.001 per share par value

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 registrant is not required to file reports pursuant to Section 13 or 15(d) of the 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 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: [ ] 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(Section 232.405 of this chapter) during the preceding 12 months(or such shorter period that the registrant was required to submit and post such files. Yes [] No [ ]

Check if there is no disclosure of delinquent filers in response to Item 405 of Regulation S-B is 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. [X]

Indicate by check mark whether the registrant is a large accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer,” and “small 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].

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, or the average bid and asked price of such common equity, as of the last business day of the registrant’s most recently completed second fiscal quarter: Approximately $128,000.

FORM 10-K

Kurrant Food Enterprises, Inc.

INDEX

PART I	Page
Item 1. Business	3
Item 1A. Risk Factors	6
Item 2. Property	9
Item 3. Legal Proceedings	9
Item 4. Submission of Matters to a Vote of Security Holders	10
PART II
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	10
Item 6. Selected Financial Data	12
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations	12
Item 7A. Quantitative and Qualitative Disclosures About Market Risk	15
Item 8. Financial Statements and Supplementary Data	16
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosures	28
Item 9A(T). Controls and Procedures	28
Item 9B. Other Information	29
PART III
Item 10. Directors, Executive Officers and Corporate Governance	29
Item 11. Executive Compensation	29
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	30
Item 13. Certain Relationships and Related Transactions, and Director Independence	30
Item 14. Principal Accountant Fees and Services	31
Item 15. Exhibits Financial Statement Schedules	31
Financial Statements pages	16 - 27
Signatures	32

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References in this document to "us," "we," or "Company" refer to Kurrant Food Enterprises, Inc. and includes our wholly-owned subsidiary, Kurrant Cuisine Enterprises, Inc

Forward-Looking Statements

The following discussion contains forward-looking statements regarding us, our business, prospects and results of operations that are subject to certain risks and uncertainties posed by many factors and events that could cause our actual business, prospects and results of operations to differ materially from those that may be anticipated by such forward-looking statements. Factors that may affect such forward-looking statements include, without limitation: our ability to successfully develop new products and services for new markets; the impact of competition on our revenues, changes in law or regulatory requirements that adversely affect or preclude clients from using us for certain applications; delays our introduction of new products or services; and our failure to keep pace with our competitors.

When used in this discussion, words such as "believes", "anticipates", "expects", "intends" and similar expressions are intended to identify forward-looking statements, but are not the exclusive means of identifying forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this report. We undertake no obligation to revise any forward-looking statements in order to reflect events or circumstances that may subsequently arise. Readers are urged to carefully review and consider the various disclosures made by us in this report and other reports filed with the Securities and Exchange Commission that attempt to advise interested parties of the risks and factors that may affect our business.

PART I

Item 1. DESCRIPTION OF BUSINESS.

General Information

Kurrant Food Enterprises, Inc. was incorporated in the State of Colorado on May 3, 2005. We develop, own, and operate a catering business in Colorado through our subsidiary corporation, Kurrant Cuisine Enterprises, Inc. Through our catering business, we organize and cater a number of different events, from cocktail parties, to buffets of various kinds, to multi-course plated dinners We plan to expand our operations to the production of food products in the second quarter of 2010. Through our catering business we have developed various proprietary recipes related to stocks, sauces, and vinaigrettes. After numerous requests from our loyal customer base we have decided to deliver our first bottled house vinaigrette to new and existing customers via our website to be developed and local markets. We have spent the last year developing our gourmet food product and preparing for this expansion of our operations. .

Kurrant Mobile Catering, Inc. is a corporation which we formed under the laws of the State of Colorado on November 15, 2007. On November 30, 2007, our directors approved, subject to the effectiveness of a registration with the Securities and Exchange Commission, the pro rata spin-off of Kurrant Mobile Catering, Inc. to our shareholders of record on January 10, 2008 on a pro rata basis. Since our business is related to the proposed activities of Kurrant Mobile Catering, Inc., our directors decided it was in our best interests to spin-off Kurrant Mobile Catering, Inc. to minimize any potential of conflict of interest. We distributed the Kurrant Mobile Catering, Inc. shares on or about February 12, 2008.

Our headquarters are located at 194 Hermosa Circle, Durango, Colorado 81301. Our phone number at our headquarters is (970) 247-4980. Our fiscal year end is September 30th.

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Overview of our Operations

Our operations focus on two different customer segments. The first segment is social catering, which is composed of individuals who contract for private events, such as cocktail parties and buffet dinners. The other segment is business catering, which is composed of companies which use catering services primarily for breakfasts, lunches and meetings.

We use the term social catering to describe catering for individuals hosting a special event such as a cocktail party, holiday dinner, or private buffet. These events are generally held in private homes. Such customers generally seek caterers who offer high-end food products as well as service for hors d'oeuvers and related activities. Customers generally contract for evening or weekend events involving dinner or cocktail parties.

We use the term business catering to describe customers seeking food service for meetings and breakfast and lunch delivery, primarily in a business setting. These customers generally seek convenience and reliability. However, they are generally also attracted to gourmet quality food products which cannot be found in conventional take-out restaurants.

Our sales are generated for individual events. The more events we hold, the more sales we generate. Our typical sale per event for a social catering is $1,800. Our typical sale per event for a business catering is $400. Our plan is to attempt to generate as many events as possible with our current resources.

We believe that the catering industry is thriving industry and has been steadily growing for the past thirty years. The catering industry is a subset of the restaurant industry and has been termed the accommodation and food services sector. The catering industry comprises establishments primarily engaged in providing single event-based food services. The catering industry is experiencing strong growth according to the trade journal Specialty Food News, which states that off-premise catering is the second biggest growth sector, second only to home meal replacement. According to the National Catering industry, the number of catering companies is currently approximately 46,000 to caterers nationally.

We also believe that we must provide a high level of service for our customers. We believe that it is our responsibility to make certain that our products and services are satisfying for our catering customers.

In 2008, we began a management project of a restaurant in Durango, Colorado. This restaurant is known as the Swing at Dalton Ranch Restaurant. We receive a management fee of $ 4,000 per month under an oral management agreement. This agreement was terminated in 2008.

In January 2009 we began plans in our operations to include food preparation. Throughout 2009 we were developing recipes and preparing our infrastructure to handle the production and delivery of our products. The first product we plan to bring to market is our house vinaigrette. This product is anticipated to be available for sale in the second quarter of 2010.

Operations, Management and Employees

We believe that initially operating from one location will be central to our overall success. We currently concentrate our catering operations in the Durango, Colorado area. Our food products will be available at local markets and on our website, which is under development.

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We have one full-time employee, our President, Mr. Bell. As we expand, we intend to hire additional employees. We also use part-time contract help as needed.

While Mr. Bell, our President, has had extensive catering experience, we must eventually recruit additional personnel. We will strive to maintain quality and consistency through the careful training and supervision of personnel and the establishment of, and adherence to, high standards relating to personnel performance, customer service, and maintenance of our facilities. We believe that we will be able to attract high quality, experienced personnel by paying competitive wages and salaries.

Marketing and Promotion

We plan to market through direct contact with prospective customers and via the website we plan to develop in the second quarter of our next fiscal year. We have no sales representative who solicits potential clients. However, Mr. Bell, our President, uses his contacts to generate the initial customers and will attempt to develop repeat business from catering events.

Patents and Trademarks

We do not currently have any patent or trademark protection. If we determine it is feasible to file for such trademark protection, we still have no assurance that doing so will prevent competitors from using the same or similar names, marks, concepts or appearance.

Competition

The food and production industry, in general, is intensely competitive. It is a fragmented industry, with no one company, or groups of companies in control. The relationships are typically local and based upon providing quality service and products. Generally, we compete with a number of local caterers and producers, all of whom are larger and better-financed than we are. We must rely upon our contacts, referrals from customers, and repeat business to be successful.

We believe that our products and services are more attractive to our customers than our competitors because we can provide immediate response, with no long lead time. We also believe that we offer our customers flexibility and cost savings because our overhead is lower than many of our competitors. However, we cannot guarantee that we will be able to successfully compete.

Government and Industry Regulation

We are subject to regulation as to our food service by health authorities. We do not believe this regulation is material. Otherwise, we are not subject to any material government or industry regulation.

Employees and Employment Agreements

We have one full-time employee, our President, Mr. Bell. We reimburse him for any out-of-pocket expenses he incurs on our behalf. In addition, in the future, we may approve additional payment of salaries for our management, but currently, no such plans have been approved. We do not currently pay for vacation, holidays or provide major medical coverage. None of our officers or directors is a party to any employment agreement. However, we may adopt such plans in the future. We also use part-time help for specific events.

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How to Obtain our SEC Filings

We file annual, quarterly, and special reports, proxy statements, and other information with the Securities Exchange Commission (SEC). Reports, proxy statements and other information filed with the SEC can be inspected and copied at the public reference facilities of the SEC at 100 F Street N.E., Washington, DC 20549. Such material may also be accessed electronically by means of the SEC's website at www.sec.gov.

Our investor relations department can be contacted at our principal executive office located at our principal office 194 Hermosa Circle, Durango, Colorado 81301. Our phone number at our headquarters is (970) 247-4980. We do not currently have a website but have one under development for the second quarter of our next fiscal year.

ITEM 1A. RISK FACTORS

You should carefully consider the risks and uncertainties described below; and all of the other information included in this document. Any of the following risks could materially adversely affect our business, financial condition or operating results and could negatively impact the value of your investment.

THIS IS A COMPANY WITH A HISTORY OF LOSSES. SUCH A COMPANY IS AN INHERENTLY RISKY INVESTMENT.

For the year ended September 30, 2009, we had a loss of $53,199 on sales of $2,851. For the year ended September 30, 2008, we had a loss of $28,106 on sales of $181,455.We have limited operating history upon which an evaluation of our future success or failure can be made. However, we have a history of losses. As a result, investment in our company is inherently risky.

BECAUSE WE HAD LOSSES AND HAVE A WORKING CAPITAL DEFICIT, OUR ACCOUNTANTS HAVE EXPRESSED DOUBTS ABOUT OUR ABILITY TO CONTINUE AS A GOING CONCERN.

For the fiscal years ended September 30, 2009 and 2008, our accountants have expressed doubt about our ability to continue as a going concern as a result of our continued net losses. Our ability to achieve and maintain profitability and positive cash flow is dependent upon:

● our ability to locate clients who will purchase our catering services and retail products; and

● our ability to generate revenues.

Based upon current plans, we may incur operating losses in future periods because we may, from time to time, be incurring expenses but not generating sufficient revenues. We cannot guarantee that we will be successful in generating sufficient revenues or other funds in the future to cover our operating costs. Failure to generate sufficient revenues will cause us to go out of business.

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OUR SALES DEPEND UPON THE NUMBER OF CUSTOMERS WE CAN GENERAGE. WE CANNOT GUARANTEE WE WILL EVER DEVELOP A SUBSTANTIAL NUMBER OF CUSTOMERS. EVEN IF WE DEVELOP A SUBSTANTIAL NUMBER OF CUSTOMERS, THERE IS NO ASSURANCE THAT WE WILL BECOME A PROFITABLE COMPANY.

To date, we have had approximately two hundred events using our catering services. While we are constantly marketing for additional customers, we cannot guarantee we ever achieve any additional customers. Even if we obtain additional customers for our services, there is no guarantee that we will make a profit. If we do not consistently make a profit, we may have to suspend or cease operations.

BECAUSE WE ARE SMALL AND DO NOT HAVE MUCH CAPITAL, WE MUST LIMIT OUR OPERATIONS. A COMPANY IN OUR INDUSTRY WITH LIMITED OPERATIONS HAS A SMALL OPPORTUNITY TO BE SUCCESSFUL.

Because we are small and do not have much capital, we must limit our operations. We must limit our operations to the Durango, Colorado area as the only geographical area in which we operate. Because we may have to limit our operations, we may not generate sufficient sales to make a profit. If we do not make a profit, we may have to suspend or cease operations.

WE ARE CURRENTLY CONTROLLED BY CHRISTOPHER BELL, OUR LARGEST SHAREHOLDER AND WILL CONTINUE TO BE CONTROLLED BY MR. BELL IN THE FUTURE.

Of the shares which are issued and outstanding, Mr. Bell owns a total of 10,100,000 shares, or approximately 83% together. Mr. Bell will continue to control us for the foreseeable future. The control by Mr. Bell means that he may make decisions for us with which you may disagree or that you may feel is not in our best interests.

WE DO NOT HAVE ANY ADDITIONAL SOURCE OF FUNDING OTHER THAN OUR OPERATIONS AND MAY BE UNABLE TO FIND ANY SUCH ADDITIONAL FUNDING IF AND WHEN NEEDED. WE WILL NEED ADDITIONAL FUNDING TO OPERATE OUR BUSINESS.

Other than the funds raised in our recent public offering, we have no other source of capital identified or sought. As a result we do not have alternate source of funds if such funds should be necessary. If we do find an alternative source of capital, the terms and conditions of acquiring this capital may result in dilution and the resultant lessening of value of the shares of present stockholders.

WE CANNOT PREDICT WHEN OR IF WE WILL PRODUCE SUBSTANTIAL SALES. THIS IS IMPORTANT BECAUSE THE ABILITY TO PRODUCE SUBSTANTIAL SALES IS AN IMPORTANT FACTOR IN OUR PROFITABILITY.

Currently, we are conducting business activities from our catering operation in Durango, Colorado. There can be no assurance that we will generate substantial sales which will be sufficient to maintain our business. As a result, you may lose all of your investment. Failure to generate sufficient sale would have a material adverse effect on our business, financial condition and operating results and have a material adverse effect on the value of your shares of our common stock.

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OUR BUSINESS OPERATIONS WILL BE HIGHLY DEPENDENT UPON OUR ABILITY TO ATTRACT AND MAINTAIN KEY EMPLOYEES WITH EXPERIENCE IN THE CATERING BUSINESS. WE MUST BE ABLE TO ATTRACT AND RETAIN KEY PERSONNEL TO FULLY STAFF OUR OPERATIONS. WE ARE COMPLETELY DEPENDENT UPON MR. BELL FOR OUR OPERATIONS.

The ultimate success of our business operations will be highly dependent upon our ability to attract and maintain key employees with experience in the catering business. The process of hiring employees with the combination of skills and attributes required to carry out our business plan is extremely competitive and time-consuming. Mr. Bell currently performs all of our operations. We cannot guarantee that we will be able to identify and/or hire qualified personnel as and when they are needed for our operations. The loss of the services of Mr. Bell or the inability to attract qualified personnel, could materially adversely affect our business, financial condition and results of operations. No one in our company has a written employment agreement.

THE CATERING AND GOURMET RETAIL FOOD INDUSTRY IS HIGHLY COMPETITIVE. IF WE ARE NOT WELL RECEIVED OR SUCCESSFUL, WE MAY NEVER ACHIEVE PROFITABILITY.

The catering and gourmet retail food industry is highly competitive with respect to price and service. There are numerous competitors, many well-established, including national, regional and local organizations possessing substantially greater financial, marketing, personnel and other resources than we do. There can be no assurance that we will be able to respond to various competitive factors affecting the catering industry. The catering and gourmet retail food industry is also generally affected by changes in client preferences, national, regional and local economic conditions and demographic trends. The performance of catering and retail food sales may also be affected by factors such as demographic considerations, and the type, number and location of competing operations. In addition, factors such as inflation, increased labor and employee benefit costs and a lack of availability of employees may also adversely affect our industry in general and our operations in particular. We cannot guarantee that we will be able to successfully compete.

BUYING LOW-PRICED PENNY STOCKS IS VERY RISKY AND SPECULATIVE.

Our shares are defined as a penny stock under the Securities and Exchange Act of 1934, and rules of the Commission. The Exchange Act and such penny stock rules generally impose additional sales practice and disclosure requirements on broker-dealers who sell our securities to persons other than certain accredited investors who are, generally, institutions with assets in excess of $5,000,000 or individuals with net worth in excess of $1,000,000 or annual income exceeding $200,000, or $300,000 jointly with spouse, or in transactions not recommended by the broker-dealer. For transactions covered by the penny stock rules, a broker-dealer must make a suitability determination for each purchaser and receive the purchaser's written agreement prior to the sale. In addition, the broker-dealer must make certain mandated disclosures in penny stock transactions, including the actual sale or purchase price and actual bid and offer quotations, the compensation to be received by the broker-dealer and certain associated persons, and deliver certain disclosures required by the Commission. Consequently, the penny stock rules may affect the ability of broker-dealers to make a market in or trade our common stock and may also affect your ability to resell any shares you own or may purchase in the public markets.

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OUR COMMON STOCK CURRENTLY HAS A LIMITED TRADING MARKET AND THERE IS NO GUARANTEE A TRADING MARKET WILL EVER DEVELOP.

There is presently a limited public market for our common stock. While we currently trade in the Over-the-Counter Bulletin Board, we cannot guarantee that our shares will actively trade. If no market is ever developed for our common stock, it will be difficult for you to sell any shares you purchase. In such a case, you may find that you are unable to achieve any benefit from your investment or liquidate your shares without considerable delay, if at all. In addition, if we fail to have our common stock actively quoted on a public trading market, your common stock will not have a quantifiable value and it may be difficult, if not impossible, to ever resell your shares, resulting in an inability to realize any value from your investment.

THE OVER-THE-COUNTER MARKET FOR STOCK SUCH AS OURS HAS HAD EXTREME PRICE AND VOLUME FLUCTUATIONS.

The securities of companies such as ours have historically experienced extreme price and volume fluctuations during certain periods. These broad market fluctuations and other factors, such as new product developments and trends in the our industry and in the investment markets generally, as well as economic conditions and quarterly variations in our operational results, may have a negative effect on the market price of our common stock.

MOST OF OUR COMMON STOCK IS RESTRICTED BUT COULD BECOME ELIGIBLE FOR RESALE UNDER RULE 144; THIS COULD CAUSE THE MARKET PRICE OUR COMMON STOCK TO DROP SIGNIFICANTLY, EVEN IF OUR BUSINESS IS DOING WELL.

Of our total current outstanding shares, 11,868,333 or approximately 94% are restricted from immediate resale but may be sold into the market subject to volume and manner of sale limitations under Rule 144. This could cause the market price of our common stock to drop significantly, even if our business is doing well. As restrictions on resale end, the market price of our stock could drop significantly if the holders of restricted shares sell them or are perceived by the market as intending to sell them.

WE DO NOT EXPECT TO PAY DIVIDENDS ON COMMON STOCK.

We have not paid any cash dividends with respect to our common stock, and it is unlikely that we will pay any dividends on our common stock in the foreseeable future. Earnings, if any, that we may realize will be retained in the business for further development and expansion.

ITEM 2. DESCRIPTION OF PROPERTY.

We currently own a van and a delivery truck, as well as office equipment. We have an oral month-to-month lease on our office at 194 Hermosa Circle, Durango, Colorado 81301. We do not pay for this lease.

ITEM 3. LEGAL PROCEEDINGS.

No legal proceedings to which we are a party were pending during the reporting period. We know of no legal proceedings of a material nature pending or threatened or judgments entered against any of our directors or officers in their capacity as such.

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

We held no shareholders meeting in the fourth quarter of our fiscal year.

PART II

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.

Principal Market or Markets

Our common stock has traded on the NASD Over-the-Counter Bulletin Board since August, 2007. Currently, our common stock trades under the symbol KRTF. The following represent the high and low bid quotation for the Company’s common stock for the fiscal year ended September 30, 2009 and 2008. These quotations reflect inter-dealer prices, without retail mark-up, mark-down or commissions, and may not represent actual transactions.

Year Ending September 30, 2009	High		Low
First Quarter	$	0.05	$	0.03
Second Quarter		0.05		0.05
Third Quarter		0.05		0.05
Fourth Quarter		0.05		0.05

Year Ending September 30, 2008	High		Low
First Quarter	$	.35	$	.25
Second Quarter		.35		.25
Third Quarter		.20		.05
Fourth Quarter		.10		.05

Approximate Number of Holders of Common Stock

As of December 1, 2009, a total of 12,667,533 shares of our Common Stock were outstanding and the number of holders of record of our common stock at that date was one hundred.

The Securities Enforcement and Penny Stock Reform Act of 1990

The Securities Enforcement and Penny Stock Reform Act of 1990 requires additional disclosure and documentation related to the market for penny stock and for trades in any stock defined as a penny stock. Unless we can acquire substantial assets and trade at over $5.00 per share on the bid, it is more likely than not that our securities, for some period of time, would be defined under that Act as a "penny stock." As a result, those who trade in our securities may be required to provide additional information related to their fitness to trade our shares. These requirements present a substantial burden on any person or brokerage firm who plans to trade our securities and would thereby make it unlikely that any liquid trading market would ever result in our securities while the provisions of this Act might be applicable to those securities.

Any broker-dealer engaged by the purchaser for the purpose of selling his or her shares in us will be subject to Rules 15g-1 through 15g-10 of the Securities and Exchange Act. Rather than creating a need to comply with those rules, some broker-dealers will refuse to attempt to sell penny stock.

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The penny stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise exempt from those rules, to deliver a standardized risk disclosure document prepared by the Commission, which:

- contains a description of the nature and level of risk in the market for penny stocks in both public offerings and secondary trading; - contains a description of the broker's or dealer's duties to the customer and of the rights and remedies available to the customer with respect to a violation to such duties or other requirements of the Securities Act of 1934, as amended; - contains a brief, clear, narrative description of a dealer market, including "bid" and "ask" prices for penny stocks and the significance of the spread between the bid and ask price; - contains a toll-free telephone number for inquiries on disciplinary actions; - defines significant terms in the disclosure document or in the conduct of trading penny stocks; and - contains such other information and is in such form (including language, type, size and format) as the Securities and Exchange Commission shall require by rule or regulation;

The broker-dealer also must provide, prior to effecting any transaction in a penny stock, to the customer:

- the bid and offer quotations for the penny stock; - the compensation of the broker-dealer and its salesperson in the transaction; - the number of shares to which such bid and ask prices apply, or other comparable information relating to the depth and liquidity of the market for such stock; and - monthly account statements showing the market value of each penny stock held in the customer's account.

In addition, the penny stock rules require that prior to a transaction in a penny stock not otherwise exempt from those rules; the broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser's written acknowledgment of the receipt of a risk disclosure statement, a written agreement to transactions involving penny stocks, and a signed and dated copy of a written suitability statement. These disclosure requirements will have the effect of reducing the trading activity in the secondary market for our stock because it will be subject to these penny stock rules. Therefore, stockholders may have difficulty selling their securities.

Stock Transfer Agent

The stock transfer agent for our securities is Corporate Stock Transfer of Denver, Colorado. Their address is 3200 Cherry Creek Drive South, Suite 430, Denver, Colorado 80209. Their phone number is (303) 282-4800.

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Dividends

Holders of common stock are entitled to receive such dividends as may be declared by our Board of Directors. No dividends on the common stock were paid by us during the periods reported herein nor do we anticipate paying dividends in the foreseeable future.

ITEM 6. SELECTED FINANCIAL DATA

A smaller reporting company is not required to provide the information in this Item.

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Results of Operations

Our accountants have expressed doubt about our ability to continue as a going concern as a result of our history of net loss. Our ability to achieve and maintain profitability and positive cash flow is dependent upon our ability to successfully develop a catering business and our ability to generate revenues.

We began our operations in May, 2005. For the fiscal year ended September 30, 2009, we had sales of $2,851, compared to sales of $181,455 for year ended September 30, 2008. For the fiscal year ended September 30, 2009, we had management fees of $8,350, compared to management fees of $43,500 for year ended September 30, 2008.

Costs of goods include all direct costs incurred in providing services. Direct costs consist of food, beverages, and catering supplies. Our costs of goods for the fiscal year ended September 30, 2009 was $-0-. Our costs of goods for the fiscal year ended September 30, 2008 was $103,186.

The difference between total sales and costs of goods is gross profit. Our gross profit for the fiscal year ended September 30, 2009 was $11,201, which included management fee revenue. Our gross profit for the fiscal year ended September 30, 2008 was $121,769, which also included management fee revenue.

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In 2008, we began a management project of a restaurant in Durango, Colorado. This restaurant is known as the Swing at Dalton Ranch Restaurant. We received a management fee of $ 4,000 per month under an oral management agreement, which was terminated December, 2008.

The major components of operating expenses include salaries and associated payroll costs, professional fees, rent and telephone expenses.

Operating expenses, which includes depreciation and general and administrative expenses for the fiscal year ended September 30, 2009 were $54,386. Operating Expenses for the fiscal year ended September 30, 2008 were $139,069. Our general and administrative expenses were the single largest item of our operating expenses. The major components of these general and administrative expenses were salaries and associated payroll costs and professional fees. Our general and administrative expenses will continue to be our largest expense item.

We had a net loss of $53,199 ($0.00 per share) for the fiscal year ended September 30, 2009, compared to a net loss of $28,106 ($0.00 per share) for the fiscal year ended September 30, 2008. While we have been able to substantially reduce our losses, we have had several years of losses and our losses may continue into the future.

We believe that overhead cost in current operations should remain fairly constant as sales improve. Each additional sale and correspondingly the gross profit of such sale have minimal offsetting overhead cost.

Liquidity and Capital Resources

As of September 30, 2009, we had cash or cash equivalents of $830, compared to cash or cash equivalents of $463 at September 30, 2008.

Net cash used in operating activities was $54,639 for the fiscal year ended September 30, 2009, compared to $20,660 for the fiscal year ended September 30, 2008. We anticipate that overhead costs in current operations will remain fairly constant as sales improve.

Cash flows provided by investing activities were $2,500 for the fiscal year ended September 30, 2009, compared to cash flows provided by investing activities of $1,750 for the fiscal year ended September 30, 2008. These activities represent the sale of equipment in 2008.

Cash flows provided by financing activities were $52,506 for the fiscal year ended September 30, 2009, compared to cash flows provided by financing activities of $9,843 for the fiscal year ended September 30, 2008. The cash flows in 2009and 2008 were each related to borrowings to finance our operations.

Over the next twelve months we do not plan to have any material capital costs.

Our recent public offering provided sufficient capital in the short term for our current level of operations However, we anticipate needing to raise additional capital resources in the next twelve months. Until our current operations become cash flow positive, our officers and directors will fund the operations to continue the business. At this time we have no other resources on which to get cash if needed without their assistance and no definitive plans to do raise additional capital.

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Our principal source of liquidity is our operations. Our variation in sales is based upon the level of our catering event activity and will account for the difference between a profit and a loss. Also business activity is closely tied to the economy of Colorado and the U.S. economy. A slow down in entertaining activity will have a negative impact to our business. In any case, we try to operate with minimal overhead. Our primary activity will be to seek to expand the number of catering events and, consequently, our sales. If we succeed in expanding our customer base and generating sufficient sales, we will become profitable. We cannot guarantee that this will ever occur. Our plan is to build our Company in any manner which will be successful.

Plan of Operation

We will attempt to operate for the coming fiscal year at a profit or at break even.

Currently, we are conducting business in only one location in the Durango, Colorado area. In addition we plan on expanding our operations to include retail food products. We believe we can achieve profitability as we are presently organized with sufficient catering business and product sales.

If we are not successful in our operations we will be faced with several options:

1. Cease operations and go out of business; 2. Continue to seek alternative and acceptable sources of capital; 3. Bring in additional capital that may result in a change of control; or 4. Identify a candidate for acquisition that seeks access to the public marketplace and its financing sources.

Our recent public offering provided sufficient capital in the short term for our current level of operations. However, we anticipate needing to raise additional capital resources in the next twelve months. Until our current operations become cash flow positive, our officers and directors will fund the operations to continue the business. At this time we have no other resources on which to get cash if needed without their assistance and no definitive plans to do raise additional capital.

If we can become profitable, we could operate at our present level indefinitely.

To date, we have never had any discussions with any possible acquisition candidate nor have we any intention of doing so.

Proposed Milestones to Implement Business Operations

At the present time, we are operating from one location in the Durango, Colorado area. Our plan is to operate in a profitable manner. We estimate that we must generate at least $5,000 in revenues per month to be profitable. We generated approximately $1,100 in revenues per month for the fiscal year ended September 30, 2009.We generated approximately $15,000 in revenues per month for the fiscal year ended September 30, 2008.

Our goal is to be profitable or at break even by the end of our next fiscal year, assuming sufficient revenues.

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We anticipate the need to raise additional capital resources in the next twelve months unless we are more successful than we have anticipated, and we determine to expand further go into other cities in this period. In such a case, we expect the source of such funding to be generated internally or and through another offering.

No commitments to provide additional funds have been made by management or current shareholders. There is no assurance that additional funds will be made available to us on terms that will be acceptable, or at all, if and when needed. We expect to continue to generate and increase sales, but there can be no assurance we will generate sales sufficient to continue operations or to expand.

We also are planning to rely on the possibility of referrals from customers and will strive to satisfy our customers. We believe that referrals will be an effective form of advertising because of the quality of service that we bring to customers. We believe that satisfied customers will bring more and repeat customers.

In the next 12 months, we do not intend to spend any substantial funds on research and development and do not intend to purchase any large equipment.

Recently Issued Accounting Pronouncements

We do not expect the adoption of any recently issued accounting pronouncements to have a significant impact on our net results of operations, financial position, or cash flows.

Seasonality

We have found that our sales are impacted by seasonal demands for our services, with greater sales coming at the end of the calendar year and around major holidays.

Critical Accounting Policies

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make a number of 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. Such estimates and assumptions affect the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, we evaluate estimates and assumptions based upon historical experience and various other factors and circumstances. We believe our estimates and assumptions are reasonable in the circumstances; however, actual results may differ from these estimates under different future conditions.

We believe that the estimates and assumptions that are most important to the portrayal of our financial condition and results of operations, in that they require subjective or complex judgments, form the basis for the accounting policies deemed to be most critical to us. These relate to bad debts, impairment of intangible assets and long lived assets, contractual adjustments to revenue, and contingencies and litigation. We believe estimates and assumptions related to these critical accounting policies are appropriate under the circumstances; however, should future events or occurrences result in unanticipated consequences, there could be a material impact on our future financial conditions or results of operations.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK.

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A smaller reporting company is not required to provide the information in this Item.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

KURRANT FOOD ENTERPRISES, INC.

CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2008

& September 30, 2009

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Kurrant Food Enterprises, Inc.

Consolidated Financial Statements

TABLE OF CONTENTS

	Page
REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM	18
CONSOLIDATED FINANCIAL STATEMENTS
Consolidated balance sheets	19
Consolidated statements of operation	20
Consolidated statements of stockholders' equity	21
Consolidated statements of cash flows	22
Notes to consolidated financial statements	24

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RONALD R. CHADWICK, P.C.

Certified Public Accountant

2851 South Parker Road, Suite 720

Aurora, Colorado 80014

Telephone (303)306-1967

Fax (303)306-1944

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Board of Directors

Kurrant Food Enterprises, Inc.

Denver, Colorado

I have audited the accompanying consolidated balance sheets of Kurrant Food Enterprises, Inc. as of September 30, 2008 and 2009, and the related consolidated statements of operations, stockholders' equity and cash flows for the years then ended. These financial statements are the responsibility of the Company's management. My responsibility is to express an opinion on these financial statements based on my audit.

I conducted my audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audit provides a reasonable basis for my opinion.

In my opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of Kurrant Food Enterprises, Inc. as of September 30, 2008 and 2009, and the related consolidated statements of operations, stockholders' equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 6 to the financial statements the Company has incurred losses and has a working capital deficit that raise substantial doubt about its ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 6. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Aurora, Colorado	/s/ Ronald R. Chadwick, P.C.
January 5, 2010	RONALD R. CHADWICK, P.C.

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KURRANT FOOD ENTERPRISES, INC.
CONSOLIDATED BALANCE SHEETS
	Sept. 30, 2008			Sept. 30, 2009
ASSETS
Current assets
Cash	$	463		$	830
Accrued receivables		1,125
Total current assets		1,588			830
Fixed assets		46,179			43,622
Accumulated depreciation		(22,781	)		(30,396	)
Due from related party		210			-
Other assets
		23,608			13,226
Total Assets	$	25,196		$	14,056
LIABILITIES &
STOCKHOLDERS' EQUITY
Current liabilities
Accrued payables	$	18,583		$	1,670
Related party payables		2,820			-
Notes payable - current - related party		39,336			104,022
Notes payable - current		2,903			3,172
Total current liabilities		63,642			108,864
Notes payable		11,055			7,892
		11,055			7,892
Total Liabilities		74,697			116,756
Stockholders' Equity
Preferred stock, $.10 par value;
1,000,000 shares authorized;
no shares issued and outstanding
Common stock, $.001 par value;
50,000,000 shares authorized;
12,667,533 shares issued and outstanding		12,667			12,667
Additional paid in capital		249,771			249,771
Accumulated deficit		(311,939	)		(365,138	)
Total Stockholders' Equity		(49,501	)		(102,700	)
Total Liabilities and Stockholders' Equity	$	25,196		$	14,056

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

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KURRANT FOOD ENTERPRISES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
	Year Ended			Year Ended
	Sept. 30, 2008			Sept. 30, 2009
Sales	$	181,455		$	2,851
Cost of goods sold		103,186			-
		78,269			2,851
Management fee revenue - related party		43,500			8,350
Gross profit		121,769			11,201
Operating expenses:
Depreciation		9,946			8,429
General and administrative		129,123			45,957
		139,069			54,386
Operating - other:
Gain (loss) on asset disposals		(1,900	)		757
Gain (loss) from operations		(19,200	)		(42,428	)
Other income (expense):
Interest income		19			-
Interest expense		(8,925	)		(10,771	)
		(8,906	)		(10,771	)
Income (loss) before
provision for income taxes		(28,106	)		(53,199	)
Provision for income tax		-			-
Net income (loss)	$	(28,106	)	$	(53,199	)
Net income (loss) per share
(Basic and fully diluted)	$	(0.00	)	$	(0.00	)
Weighted average number of
common shares outstanding		12,667,533			12,667,533

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

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KURRANT FOOD ENTERPRISES, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
	Common Stock									Stock-
			Par $.001		Paid In		Accumulated			holders'
	Shares		Amount		Capital		Deficit			Equity
Balances at September 30, 2007		12,667,533	$	12,667	$	249,771	$	(283,833	)	$	(21,395	)
Net income (loss) for the year								(28,106	)		(28,106	)
Balances at September 30, 2008		12,667,533	$	12,667	$	249,771	$	(311,939	)	$	(49,501	)
Net income (loss) for the year								(53,199	)		(53,199	)
Balances at September 30, 2009		12,667,533	$	12,667	$	249,771	$	(365,138	)	$	(102,700	)

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

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KURRANT FOOD ENTERPRISES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
	Year Ended			Year Ended
	Sept. 30, 2008			Sept. 30, 2009
Cash Flows From Operating Activities:
Net income (loss)	$	(28,106	)	$	(53,199	)
Adjustments to reconcile net loss to
net cash provided by (used for)
operating activities:
Depreciation		9,946			8,429
Accrued receivables		37,304			1,335
Other assets		2,100			-
Prepaid expenses		10,873			-
Accrued payables		(63,136	)		(10,447	)
Inventory		6,323			-
Write offs		2,136			-
(Gian) loss on disposal		1,900			(757	)
Net cash provided by (used for)
operating activities		(20,660	)		(54,639	)
Cash Flows From Investing Activities:
Fixed assets - disposals		1,750			2,500
Net cash provided by (used for)
investing activities		1,750			2,500
(Continued On Following Page)

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

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KURRANT FOOD ENTERPRISES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Continued From Previous Page)
	Year Ended			Year Ended
	Sept. 30, 2008			Sept. 30, 2009
Cash Flows From Financing Activities:
Notes payable - borrowings		17,500			78,515
Notes payable - payments		(7,657	)		(26,009	)
Net cash provided by (used for)
financing activities		9,843			52,506
Net Increase (Decrease) In Cash		(9,067	)		367
Cash At The Beginning Of The Period		9,530			463
Cash At The End Of The Period	$	463		$	830
Schedule Of Non-Cash Investing And Financing Activities
None
Supplemental Disclosure
Cash paid for interest	$	6,037		$	815
Cash paid for income taxes	$	-		$	-

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

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KURRANT FOOD ENTERPRISES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1. ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

Kurrant Food Enterprises, Inc. (the “Company”), was incorporated in the State of Colorado on May 3, 2005. The Company was formed to act as a holding corporation for its wholly owned subsidiary Kurrant Cuisine Enterprises, Inc., a Colorado corporation actively engaged in the food catering business. The Company may also engage in any other business permitted by law, as designated by the Board of Directors of the Company. Kurrant Cuisine Enterprises, Inc. was incorporated in the State of Colorado on May 5, 2005.

Principles of consolidation

The accompanying consolidated financial statements include the accounts of Kurrant Food Enterprises, Inc. and its wholly owned subsidiary. All intercompany accounts and transactions have been eliminated in consolidation.

Cash and cash equivalents

The Company considers all highly liquid investments with an original maturity of three months or less as cash equivalents.

Accounts receivable

The Company reviews accounts receivable periodically for collectability and establishes an allowance for doubtful accounts and records bad debt expense when deemed necessary. At September 30, 2008 and 2009 the Company had no balance in its allowance for doubtful accounts.

Property and equipment

Property and equipment are recorded at cost and depreciated under accelerated methods over each item's estimated useful life, which is five years for vehicles, computers and other items.

Revenue recognition

Revenue is recognized on an accrual basis after services have been performed under contract terms, the event price to the client is fixed or determinable, and collectibility is reasonably assured. Standard contract policy calls for partial payment up front with balance due upon receipt of final billing.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect 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.

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KURRANT FOOD ENTERPRISES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1. ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued):

Income tax

The Company accounts for income taxes under Statement of Financial Accounting Standards No. 109 (“SFAS 109”). Under SFAS 109 deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

Net income (loss) per share

The net income (loss) per share is computed by dividing the net income (loss) by the weighted average number of shares of common outstanding. Warrants, stock options, and common stock issuable upon the conversion of the Company's preferred stock (if any), are not included in the computation if the effect would be anti-dilutive and would increase the earnings or decrease loss per share.

Financial Instruments

The carrying value of the Company’s financial instruments, including cash and cash equivalents and accrued payables, as reported in the accompanying balance sheet, approximates fair value.

NOTE 2. FIXED ASSETS

Fixed asset values recorded at cost are as follows:

	Sept. 30,			Sept. 30,
	2008			2009
Vehicles	$	36,244		$	39,224
Furniture & fixtures		1,486			1,486
Computers		5,052			2,495
Other		417			417
		46,179			43,622
Less accumulated depreciation		(22,781	)		(30,396	)
Total	$	23,398		$	13,266

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KURRANT FOOD ENTERPRISES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 3. LEASE COMMITMENTS AND CONTINGENCIES

The Company through December 2007 rented kitchen space under a month to month lease, with rent expense under the lease in 2008 of $6,671.

The Company for part of 2008 leased a vehicle on a verbal month to month basis from a related party at $250 per month. Lease expense under this arrangement in 2008 was $2,150.

NOTE 4. NOTES PAYABLE

At September 30, 2008 the Company had a $13,958 note payable outstanding to a finance company, collateralized by Company equipment, guaranteed by a Company officer, bearing interest at 8.9% per annum, due in November 2012, with principal and interest payments of $335 per month. The Company also had a $21,836 note payable outstanding to an officer, unsecured, bearing interest at 6.5% per annum, due in July 2009, with interest only payments of $145 per month scheduled through January 2008, then principal and interest payments of $1,569 scheduled through July 2009 plus any remainder due. Interest expense from notes payable was $4,366 in 2008. At September 30, 2009 the Company had a $11,064 note payable outstanding to a finance company, collateralized by Company equipment, guaranteed by a Company officer, bearing interest at 8.9% per annum, due in November 2012, with principal and interest payments of $335 per month. The Company also had $94,736 in notes payable outstanding to an officer and another related party, unsecured, bearing interest at 10% per annum, due on demand, with interest only payments due by December 31 beginning in 2008. Interest expense from notes payable was $4,366 and $10,771 in 2008 and 2009, with accrued interest payable of $3,292 and $9,286 at September 30, 2008 and 2009. The fair value of the notes payable is estimated based on the current rates offered to the Company for debt of the same remaining maturities. At September 30, 2008 and 2009 the fair value of the notes payable approximates the amount recorded in the financial statements. Future amounts due under all notes payable are for fiscal years ending on September 30: 2010 $97,908, 2011 $3,466, 2012 $3,788, 2013 $638 (total $105,800).

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KURRANT FOOD ENTERPRISES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Income taxes at Federal and state statutory rates are reconciled to the Company’s actual income taxes as follows:

	September 30,			September 30,
	2008			2009
Tax at federal statutory rate (15%)	$	(4,297	)	$	(7,980	)
State income tax (5%)		(1,432	)		(2,660	)
Book to tax differences		62			-
Change in valuation allowance		5,667			10,640
	$	-		$	-

NOTE 6. GOING CONCERN

The Company has suffered recurring losses from operations and has a working capital deficit. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company may raise additional capital through the sale of its equity securities, through an offering of debt securities, or through borrowings from financial institutions. By doing so, the Company hopes through increased marketing efforts to generate greater revenues. Management believes that actions presently being taken to obtain additional funding provide the opportunity for the Company to continue as a going concern.

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ITEM 9. DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.

We did not have any disagreements on accounting and financial disclosures with its present accounting firm during the reporting period.

ITEM 9A(T). CONTROLS AND PROCEDURES.

Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures

Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of our disclosure controls and procedures, as such term is defined under the Securities Exchange Act of 1934, as amended (the Exchange Act). Accordingly, we concluded that our disclosure controls and procedures were effective as of September 30, 2009.

Management’s Annual Report on Internal Control Over Financial Reporting.

Management is responsible for establishing and maintaining adequate internal control over financial reporting (ICFR).

Our internal control over financial reporting are designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with U. S. generally accepted accounting principles.

Our management conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on our evaluation, management has concluded, as of September 30, 2009, we did maintain effective control over the financial reporting process.

Inherent Limitations Over Internal Controls

Internal control over financial reporting cannot provide absolute assurance of achieving financial reporting objectives because of its inherent limitations, including the possibility of human error and circumvention by collusion or overriding of controls. Accordingly, even an effective internal control system may not prevent or detect material misstatements on a timely basis. 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.

Attestation Report of the Registered Public Accounting Firm.

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

Changes in Internal Control Over Financial Reporting.

We have made no change in our internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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ITEM 9B. OTHER INFORMATION.

Nothing to report.

PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE

Our Director and Executive Officer, his age and positions held with us as of December 1, 2008 are as follows:

NAME	AGE	POSITION HELD
Christopher Bell 194 Hermosa Circle Durango, Colorado 80205	33	President, Chief Executive Officer, Secretary Treasurer, and Chief Financial Officer

The person named above is expected to hold said offices/positions until the next annual meeting of our stockholders. He cannot be considered to be an independent director.

Background Information about Our Officers and Directors

Christopher Bell has been the President, Chief Executive Officer, Treasurer, Chief Financial Officer and a Director of our company since inception in May, 2005. He became our Secretary in 2008. In college, he worked for two years at Strater Hotel in Durango, Colorado, from 1997 to 1999. From 1999 to 2001, he was a Sous Chef at E.O.'s Chop House in Durango, CO. (a 4 star rated restaurant). From 2002 to 2005, he worked for Footers Catering, a catering company in Denver, Colorado as the Executive Chef until co-founding our company. Mr. Bell received a B.A. in Business Administration and Tourism and Resort Management at Fort Lewis College in Durango, CO. He will devote a minimum of forty hours per week to our operations.

Item 11. EXECUTIVE COMPENSATION

Mr. Bell is compensated for the work he performs on our behalf. Mr. Bell receives a fixed salary of $4,000 per month as total compensation.

In addition, our officer and director is reimbursed for any out-of-pocket expenses he incurs on our behalf. In the future, we may approve payment of salaries for our management, but currently, no such plans have been approved. For our full-time office employees, we pay for vacation and holidays but do not provide major medical coverage. In addition, none of our officers, directors or employees is a party to any employment agreements.

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ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The following sets forth the number of shares of our $.0.001 par value common stock beneficially owned by (i) each person who, as of December 1, 2009, was known by us to own beneficially more than five percent (5%) of its common stock; (ii) our individual Directors and (iii) our Officers and Directors as a group. A total of 12,667,533 common shares were issued and outstanding as of December 1, 2009.

Name and Address	No. of
Beneficial	Shares	Percentage
Owner (1)	Owned	of Ownership
Christopher Bell (2)	10,100,000	79.7%
194 Hermosa Circle
Durango, Colorado 80205
_____________
All Officers and	10,100,000	79.7%
Directors as a Group
(one person)

_____________

(1) All shares of owned of record.

_____________

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

Mr. Bell had an option to purchase 5,000,000 shares of Mr. Thompson's common stock for a period beginning May 4, 2005 and ending May 4, 2009. This option has been exercised.

At September 30, 2008 we had a $13,958 note payable outstanding to a finance company, collateralized by Company equipment, guaranteed by our President, bearing interest at 8.9% per annum, due in November 2012, with principal and interest payments of $335 per month. We also had a $21,836 note payable outstanding to our President unsecured, bearing interest at 6.5% per annum, due in July 2009, with interest only payments of $145 per month scheduled through January 2008, then principal and interest payments of $1,569 scheduled through July 2009 plus any remainder due. Interest expense from notes payable was $4,366 in 2008. At September 30, 2009 we had a $11,064 note payable outstanding to a finance company, collateralized by Company equipment, guaranteed by our President, bearing interest at 8.9% per annum, due in November 2012, with principal and interest payments of $335 per month. We also had $94,736 in notes payable outstanding to our President and Mr. Rick Huttner, unsecured, bearing interest at 10% per annum, due on demand, with interest only payments due by December 31 beginning in 2008. Interest expense from notes payable was $4,366 and $10,771 in 2008 and 2009, with accrued interest payable of $3,292 and $9,286 at September 30, 2008 and 2009. The fair value of the notes payable is estimated based on the current rates offered to us for debt of the same remaining maturities. At September 30, 2008 and 2009 the fair value of the notes payable approximates the amount recorded in the financial statements. Future amounts due under all notes payable are for fiscal years ending on September 30: 2010 $97,908, 2011 $3,466, 2012 $3,788, 2013 $638 (total $105,800).

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ITEM 14: PRINCIPAL ACCOUNTANT FEES AND SERVICES

Our independent auditor, Ronald R. Chadwick, P.C., Certified Public Accountants, billed an of $11,500 for the fiscal year ended September 30, 2009 and $12,200 for the fiscal year ended September 30, 2008 for professional services rendered for the audit of our annual financial statements and review of the financial statements included in its quarterly reports.

We do not have an audit committee and as a result its entire board of directors performs the duties of an audit committee. Our board of directors evaluates the scope and cost of the engagement of an auditor before the auditor renders audit and non-audit services.

ITEM 15. EXHIBITS FINANCIAL STATEMENT SCHEDULES

The following financial information is filed as part of this report:

(a)	(1)	FINANCIAL STATEMENTS
	(2)	SCHEDULES
	(3)	EXHIBITS. The following exhibits required by Item 601 to be filed herewith are incorporated by reference to previously filed documents:

Exhibit
Number		Description
3.1		Articles of Incorporation*
3.2		Bylaws*
10.0		Consulting Services Agreement*
21.1		List of Subsidiaries**
31.1		Certification of CEO/CFO pursuant to Sec. 302
32.1		Certification of CEO/CFO pursuant to Sec. 906

_______________

* Previously filed, Form SB-2, December 9, 2005

** Previously filed, Form 10-KSB, January 9, 2009

(b) Reports on Form 8-K.

The Company filed no reports on Form 8-K during the fourth quarter of the fiscal year ended September 30, 2009.

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SIGNATURES

In accordance with Section 12 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.

		KURRANT FOOD ENTERPRISES, INC.
Date: January 10, 2010	By:	/s/ Christopher Bell
		Christopher Bell, President and Chief Executive Officer

Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities and on the dates indicated.

Date: January 10, 2010	By:	/s/ Christopher Bell
		Christopher Bell
		Director, Treasurer and Chief Financial Officer

- 32 -

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