UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended November 30, 2011

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

For the transition period from _________to ________

Commission File Number: 000-52951

HERE ENTERPRISES, INC.
(Exact name of registrant as specified in its charter)


Nevada	27-2208420
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

2066 County Rd., #405, Floresville, TX 78114
(Address of principal executive offices) (Zip Code)

(210) 957-7879
(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

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 [x] No [ ]

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 during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files)

Yes [X] No [ ]

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


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

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

Yes [ ] No [x]

APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the issuer’s classes of common stock as of the latest practicable date: 819,000,000 shares of common stock outstanding as of November 30, 2011.

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.

It is the opinion of management that the interim consolidated financial statements for the period ended November 30, 2011, include all adjustments necessary in order to ensure that the interim consolidated financial statements are not misleading.

Our interim consolidated financial statements are stated in United States dollars and are prepared in accordance with United States generally accepted accounting principles.

Here Enterprises, Inc.

November 30, 2011

(Unaudited)

Index

Consolidated Balance Sheets

F–1

Consolidated Statements of Operations

F–2

Consolidated Statements of Cash Flows

F–3

Notes to the Consolidated Financial Statements

F–4 – F-13

F-4

Here Enterprises, Inc.

Consolidated Balance Sheets

(Expressed in U.S. dollars)


	November 30, 2011 $	May 31, 2011 $
	(Unaudited)
Current Assets

Cash	12,985	5,790

Total Current Assets	12,985	5,790

Property and Equipment (Note 3)	870,586	921,069
Goodwill	1,188,458	1,188,458

Total Assets	2,072,029	2,115,317


LIABILITIES AND STOCKHOLDERS’ DEFICIT

Current Liabilities

Accounts payable	112,115	51,937
Accrued liabilities	376,492	254,222
Due to related parties (Note 4)	258,217	190,413
Loans payable (Note 5)	607,075	599,197
Contingently convertible promissory notes (Note 6)	131,206	131,206
Convertible promissory notes, net of discount of $81,399 (Note 7)	5,271,207	5,129,716

	6,756,312	6,356,691

Deferred income tax liability	–	139,292

Total Liabilities	6,756,312	6,495,983

Nature of Operations and Going Concern (Note 1)

Commitment (Note 8)

Stockholders’ Deficit

Common stock Authorized: 1,500,000,000 shares, par value $0.001 Issued and outstanding: 819,000,000 shares	819,000	819,000
Preferred stock Authorized: 50,000,000 shares, par value $0.001 Issued and outstanding: no shares	–	–

Subscriptions receivable	(5,600)	(5,600)

Donated capital	89,375	89,375

Additional paid-in capital	4,614,605	4,520,457

Deficit	(10,201,663)	(9,803,898)

Total Stockholders’ Deficit	(4,684,283)	(4,380,666)

Total Liabilities and Stockholders’ Deficit	2,072,029	2,115,317

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

F-1

Here Enterprises, Inc.

Consolidated Statements of Operations

(Expressed in U.S. dollars)

(Unaudited)





	Three Months Ended		Six Months Ended
	November 30,		November 30,
	2011	2010	2011	2010
	$	$	$	$


Revenue	119,959	103,305	203,753	103,305

Expenses

Depreciation	25,242	25,389	50,483	25,389
General and administrative	35,734	33,656	159,657	102,454
Interest	70,007	60,228	139,657	60,228
Property taxes	5,086	5,750	8,885	5,750
Track operation	12,407	19,821	28,148	19,821
Wages and benefits (Note 4)	87,351	151,918	173,370	151,918

Total Operating Expenses	235,827	296,762	560,200	365,560

Loss from Operations Before Other Items	(115,868)	(193,457)	(356,447)	(262,255)

Other Expense

Accretion of convertible promissory notes (Note 7)	(48,621)	(437,729)	(180,610)	(440,059)
Other Expense	–	–	–	(1,453)

Total Other Expense	(48,621)	(437,729)	(180,610)	(441,512)

Loss before taxes	(164,489)	(631,186)	(537,057)	(703,767)
Deferred income tax recovery	–	–	139,292	–

Net Loss and Comprehensive Loss	(164,489)	(631,186)	(397,765)	(703,767)

Net Loss Per Share – Basic and Diluted	–	–	–	–


Weighted Average Shares Outstanding	819,000,000	819,000,000	819,000,000	819,000,000

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

F-2

Here Enterprises, Inc.

Consolidated Statements of Cash Flows

(Expressed in U.S. dollars)

(Unaudited)


	Six Months Ended November 30, 2011 $	Six Months Ended November 30, 2010 $

Operating Activities

Net loss for the period	(397,765)	(703,767)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Accretion of convertible promissory notes	180,610	440,059
Depreciation	50,483	25,389
Convertible notes issued for expenses	–	32,121
Future income tax recovery	(139,292)	–

Changes in operating assets and liabilities:

Accounts payable and accrued liabilities	252,344	73,995
Due to related parties	67,804	100,615

Net Cash Provided by (Used In) Operating Activities	14,184	(31,588)

Investing Activities
Cash acquired from subsidiary	–	4,937
Purchase of property and equipment	–	(16,804)

Net Cash Used in Investing Activities	–	(11,867)
Financing Activities

Proceeds from notes payable	–	62,000
Repayment of notes payable	(6,989)	(690)

Net Cash Provided by Financing Activities	(6,989)	61,310

Net Increase in Cash	7,195	17,855

Cash, Beginning of Period	5,790	3,087

Cash, End of Period	12,985	20,942

Non-cash Investing and Financing Activities

Convertible notes issued for note payments	18,189	–
Convertible notes issued to settle accounts payable and accrued liabilities	82,022	–
Convertible notes issued for acquisition of equipment	–	2,826
Convertible notes issued for expenses	–	32,123
Issuance of convertible note for acquisition of subsidiary	–	5,000,000
Assumption of convertible note for acquisition of subsidiary	–	640,000

Supplemental Disclosures

Interest paid	–	–
Income taxes paid	–	–

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

F-3

Here Enterprises, Inc.

Notes to Consolidated Financial Statements

November 30, 2011

(Expressed in U.S. dollars)

(Unaudited)

Nature of Operations and Continuance of Business

Here Enterprises, Inc. (“Here Enterprises” or the “Company”) was incorporated in the state of Nevada on November 15, 2006. On December 12, 2006, the Company incorporated Here Network Corp., a company incorporated in the province of British Columbia, Canada. On December 12, 2006, Here Network Corp. acquired a website www.dinehere.ca which provided restaurant listings and reviews to a broad spectrum of Internet visitors.

On March 9, 2010, Here Enterprises sold Here Network Corp. On September 9, 2010, Here Enterprises entered into a Share Purchase Agreement with The Good One, Inc. (“The Good One”), under which it agreed to purchase all of the common stock of Cycle Ranch, Inc. and ASB Land Company, Inc., and a 99% limited partnership interest of Cycle Ranch Management, Ltd. (collectively, “Cycle Ranch”). Cycle Ranch, Inc. currently only serves as general partner of Cycle Ranch Management, Ltd. and owns the remaining 1% interest in Cycle Ranch Management Ltd. Cycle Ranch operates a motocross park near Floresville, Texas (the “Cycle Ranch Business”). Revenue is primarily generated from participant registration fees and admissions. Upon the completion of this transaction, the Company emerged from the development stage as defined by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 915, “Development Stage Enterprises” as the Company has realized substantial revenue from principal operations and devotes substantial efforts to operating its motocross business. In addition to the motocross business, the Company intends to develop wind energy projects on the premises of existing commercial businesses. The Company’s first wind farm is being developed on the premises of the Cycle Ranch motocross park.

These consolidated financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. As of November 30, 2011, the Company has a working capital deficit of $6,743,327, and has incurred losses from operations of $10,201,663 since inception. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders and management, the ability of the Company to obtain necessary equity or debt financing to continue operations, and the attainment of profitable operations. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. These consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

The Company intends to fund operations through debt and equity financing arrangements, which may be insufficient to fund its capital expenditures, working capital and other cash requirements for the year ending May 31, 2012. There is no assurance that the Company will obtain the necessary financing to complete its objectives.

Summary of Significant Accounting Policies

Basis of Presentation

These consolidated financial statements and notes are presented in accordance with accounting principles generally accepted in the United States. These consolidated financial statements include the accounts of the Company and wholly-owned subsidiaries, Cycle Ranch, Inc. and ASB Land Company, Inc. and Cycle Ranch Management, Ltd. starting from the date of acquisition, September 9, 2010. All significant inter-company transactions and balances have been eliminated. The Company’s fiscal year end is May 31.

Interim Financial Statements

These interim unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Securities and Exchange Commission (“SEC”) Form 10-Q.

They do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. Therefore, these financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto for the year ended May 31, 2011, included in the Company’s Annual Report on Form 10-K filed October 6, 2011 with the SEC.

The interim financial statements included herein are unaudited; however, they contain all normal recurring accruals and adjustments that, in the opinion of management, are necessary to present fairly the Company’s financial position at November 30, 2011, and the results of its operations and cash flows for the six months ended November 30, 2011. The results of operations for the three and six months ended November 30, 2011 are not necessarily indicative of the results to be expected for future quarters or the full year.

Here Enterprises, Inc.

Notes to Consolidated Financial Statements

November 30, 2011

(Expressed in U.S. dollars)

(Unaudited)

Summary of Significant Accounting Policies (continued)

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company regularly evaluates estimates and assumptions related to valuation of financial instruments, recoverability of long-lived assets, impairment of goodwill, depreciation rates, donated expenses and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.

Cash and Cash Equivalents

The Company considers all highly liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents.

Advertising

Advertising costs totalled approximately $3,979 and $5,158 for the six months ended November 30, 2011 and 2010, respectively, and are expensed as incurred.

Financial Instruments and Concentrations

ASC 825, Financial Instruments requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 825 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 825 prioritizes the inputs into three levels that may be used to measure fair value:

Level 1

Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

Level 2

Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.

Level 3

Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

The Company’s financial instruments consist principally of cash, accounts payable, amounts due to related parties, loans payable, contingently convertible promissory notes and convertible promissory notes. Pursuant to ASC 825, the fair value of the Company’s cash equivalents, when applicable, is determined based on “Level 1” inputs, which consist of quoted prices in active markets for identical assets. The Company estimates that the carrying values of all of its other financial instruments approximate their fair values due to the immediate or relatively short maturities of these instruments and current market rates for similar instruments.

Here Enterprises, Inc.

Notes to Consolidated Financial Statements

November 30, 2011

(Expressed in U.S. dollars)

(Unaudited)

Summary of Significant Accounting Policies (continued)

Financial Instruments and Concentrations (continued)

Assets measured at fair value on a recurring basis were presented on the Company’s balance sheet as of November 30, 2011 as follows:



	Fair Value Measurements Using

	Quoted Prices in Active Markets For Identical Instruments (Level 1) $	Significant Other Observable Inputs (Level 2) $	Significant Unobservable Inputs (Level 3) $	Balance as of November 30, 2011 $
Assets:
Cash	12,985	–	–	12,985

The Company does not have any liabilities measured at fair value on a recurring basis presented on the Company’s balance sheet as of November 30, 2011.

Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash. The Company limits its exposure to credit loss by placing its cash with high credit quality financial institutions.

Property and Equipment

Property and equipment are recorded at cost. Land is not depreciated. Depreciation has been provided using the following rates and methods for property and equipment other than land:


Buildings and improvements	7 years straight-line
Equipment	3 – 7 years straight line

Goodwill

In accordance with ASC 350, “Intangibles – Goodwill and Other”, goodwill is required to be tested for impairment on an annual basis, or more frequently if certain indicators arise, using the guidance specifically provided.

Management reviews goodwill at least annually, and on an interim basis when conditions require, evaluates events or changes in circumstances that may indicate impairment in the carrying amount of such assets. An impairment loss is recognized in the statement of operations in the period that the related asset is deemed to be impaired. During the year ended May 31, 2011, the Company recorded an impairment of goodwill expense of $3,769,656, equal to the excess of the carrying value of goodwill over the estimated fair value of goodwill.

Long-lived Assets

In accordance with ASC 360, “Property, Plant and Equipment”, the carrying values of long-lived assets are reviewed on a regular basis for the existence of facts or circumstances that may suggest impairment. The Company recognizes impairment when the sum of the expected undiscounted future cash flows is less than the carrying amount of the asset. Impairment losses, if any, are measured as the excess of the carrying amount of the asset over its estimated fair value.

Here Enterprises, Inc.

Notes to Consolidated Financial Statements

November 30, 2011

(Expressed in U.S. dollars)

(Unaudited)

Summary of Significant Accounting Policies (continued)

Income Taxes

The Company accounts for income taxes using the asset and liability method in accordance with ASC 740, “Income Taxes”. The asset and liability method provides that deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized.

Revenue Recognition

The Company’s revenue is derived primarily from participant registration fees and admissions to the motocross park. The Company recognizes this revenue in accordance with ASC 605, “Revenue Recognition” when the price is fixed or determinable, persuasive evidence of an arrangement exists, the revenue has been earned, and collectability is reasonably assured. The price is fixed and determinable, persuasive evidence of an arrangement exists and collectability is reasonably assured when participant registration fees and admissions are received. Revenue has been earned upon completion of the races.

Comprehensive Income

ASC 220, “Comprehensive Income,” establishes standards for the reporting and display of other comprehensive income and its components in the financial statements. As at November 30, 2011, the Company does not have any items comprising other comprehensive loss or any accumulated other comprehensive loss.

Earnings (Loss) per Share

The Company computes earnings (loss) per share in accordance with ASC 260, "Earnings per Share". ASC 260 requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period including stock options, using the treasury stock method, and convertible preferred stock, using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential common shares if their effect is anti-dilutive. As at November 30, 2011, the Company has 5,972,007,000 dilutive potential shares outstanding.

Reclassification

Certain reclassifications have been made to the comparative figures to conform to the current period’s presentation.

Recent Accounting Pronouncements

In January 2010, the FASB issued Accounting Standards Update (ASU) No. 2010-06, Improving Disclosures about Fair Value Measurements, which amends the ASC Topic 820, Fair Value Measurements and Disclosures. ASU No. 2010-06 amends the ASC to require disclosure of transfers into and out of Level 1 and Level 2 fair value measurements, and also requires more detailed disclosure about the activity within Level 3 fair value measurements. The new disclosures and clarifications of existing disclosures are effective for interim and annual reporting periods beginning after December 15, 2009, except for the disclosures concerning purchases, sales, issuances, and settlements in the roll forward of activity in Level 3 fair value measurements. Those disclosures are effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. The adoption of this amendment did not have a material effect on the Company’s consolidated financial statements.

The Company believes it 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 other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

Here Enterprises, Inc.

Notes to Consolidated Financial Statements

November 30, 2011

(Expressed in U.S. dollars)

(Unaudited)

Property and Equipment

Property and equipment consists of the following:


	Cost $	Accumulated Depreciation $	November 30, 2011 Net Carrying Value $	May 31, 2011 Net Carrying Value $

Land	265,740	–	265,740	265,740
Buildings and improvements	657,470	(117,405)	540,065	587,027
Equipment	73,001	(8,220)	64,781	68,302
	996,211	(125,625)	870,586	921,069

Related Party Transactions and Balances

As at November 30, 2011, the Company was indebted to the Chief Executive Officer of the Company in the amount of $200,000 (May 31, 2011 - $140,000) for management services and $35,717 for an advance of working capital. The amounts are unsecured, non-interest bearing and due on demand.

As at November 30, 2011, the Company was indebted to the former Chief Financial Officer of Company in the amount of $22,500 (May 31, 2011 - $22,500) for management services. The amount is unsecured, non-interest bearing and due on demand.

The Chief Executive Officer of the Company has an agreement to provide management services at a rate of $10,000 per month. The agreement can be terminated with notice of one month. During the six months ended November 30, 2011, the Company incurred $60,000 (2010 - $60,000) in management fees under the agreement which has been recorded in wages and benefits expense in the statement of operations.

The former Chief Financial Officer of the Company had an agreement to provide management services at a rate of $2,500 per month. The agreement could be terminated with notice of one month. The agreement was terminated effective January 31, 2011. During the six months ended November 30, 2011, the Company incurred $Nil (2010 - $15,000) in management fees under the agreement which has been recorded in wages and benefits expense in the statement of operations.

Loans Payable

(a)

On October 8, 2008, the Company issued a promissory note to an unrelated company for proceeds of $30,000. The promissory note bears interest at 20% per annum, is unsecured and repayable on demand.

(b)

At November 30, 2011, the Company was indebted to a financing company for $Nil (May 31, 2011 - $926). The note is payable in monthly instalments of $162, bears interest of 10.4% and is secured by machinery.

(c)

On April 8, 2009, the Company issued a promissory note to an unrelated company for proceeds of $10,000. On June 26, 2009 and March 24, 2010, the Company issued additional promissory notes to this company for proceeds of $20,000 and $2,700 respectively. The Company repaid $5,000 on October 20, 2009, and $8,000 on November 19, 2009. As at November 30, 2011, the carrying value of the promissory notes and remaining outstanding principal was $19,700 (May 31, 2011- $19,700). The promissory notes bear no interest, are unsecured and have no fixed term for repayment.

(d)

On September 9, 2010, as part of the Share Purchase Agreement described in Note 3, the Company has agreed to guarantee the repayment of a $640,000 promissory note due from The Good One to a third party. The Promissory Note is secured by the Shares and bears interest at 6% per annum. Principal and interest was payable commencing March 1, 2010 in monthly instalments of $5,063, increasing to $6,063 on September 1, 2010, with the remaining balance due on August 30, 2012. The Company is issuing convertible notes for the principal and interest repayments made by the Good One and plans to assume making the payments. The Promissory Note may be repaid, in whole or in part at any time without penalty. The Shares are pledged as security and to be held in escrow until the Promissory Note and accrued interest are repaid. Refer to Note 3. On September 9, 2010, the Company discounted the note to the present value of the future cash flows. The carrying value will be accreted over the term of the promissory note up to its face value of $640,000. As at November 30, 2011, the carrying value of the convertible promissory note was $557,375 and the remaining principal was $549,055.

Here Enterprises, Inc.

Notes to Consolidated Financial Statements

November 30, 2011

(Expressed in U.S. dollars)

(Unaudited)

Contingently Convertible Promissory Notes

On May 12, 2010, the Company issued a contingently convertible promissory note to The Good One, Inc. for proceeds of $10,000. The promissory note is unsecured, bears interest at 5% per annum and is automatically convertible into shares of the Company’s stock upon the satisfaction of certain conditions. The conditions for automatic conversion were not satisfied and the note and accrued interest was repayable on November 12, 2010.

On November 12, 2010, the Company and The Good One, Inc. agreed to amend the repayment date to September 25, 2011 unless the conditions for automatic conversion are satisfied. All other terms and conditions of the Note remain the same. The amendment was accounted for pursuant to ASC 470-60 “Troubled Debt Restructuring”. As the total future cash payments exceeded the carrying amount of the liability, no gain or loss was recognized and there was no change in the carrying value.

The conversion price is equal to 30% of the average closing bid price for the three business days prior to the notice of conversion as quoted on the Pink Sheets quotation system. The note may be repaid by the Company, in whole or in part, at any time without penalty. The note holder has not demanded conversion or repayment and the note remains outstanding and due on demand.

On December 6, 2010, the Company issued a contingently convertible promissory note to a shareholder to settle accounts payable relating to expenses incurred and equipment purchased on behalf of the company of $121,206. The promissory note is unsecured, bears interest at 5% per annum and is automatically convertible into shares of the Company’s stock upon the satisfaction of certain conditions. If the conditions for automatic conversion are not satisfied, the note and accrued interest are repayable on June 6, 2011. The note matured on June 6, 2011. The note holder has not demanded conversion or repayment and the note remains outstanding and due on demand. The conversion price is equal to 30% of the average closing bid price for the three business days prior to the notice of conversion. The note may be repaid by the Company, in whole or in part, at any time without penalty.

Convertible Promissory Notes

Convertible promissory notes outstanding at November 30, 2011 are summarized in the following table:


Issuance Date	Principal $	Discount $	Carrying Value $	Due on Demand After

July 20, 2010	10,000	–	10,000	January 20, 2011
August 3, 2010	10,000	–	10,000	February 3, 2011
August 31, 2010	10,000	–	10,000	February 28, 2011
September 9, 2010	5,000,000	–	5,000,000	March 9, 2011
October 7, 2010	12,000	–	12,000	April 7, 2011
October 15, 2010	25,000	–	25,000	October 15, 2011
October 21, 2010	7,459	–	7,459	October 21, 2011
November 8, 2010	10,000	–	10,000	May 8, 2011
August 30, 2010	3,122	–	3,122	February 28, 2011
September 2, 2010	5,063	–	5,063	March 2, 2011
September 15, 2010	1,000	–	1,000	March 15, 2011
October 2, 2010	3,122	–	3,122	April 2, 2011
October 4, 2010	6,063	–	6,063	April 4, 2011
October 29, 2010	3,122	–	3,122	April 29, 2011
November 1, 2010	6,063	–	6,063	May 1, 2011
November 29, 2010	6,063	–	6,063	May 29, 2011
November 29, 2010	3,122	–	3,122	May 29, 2011
December 28, 2010	6,063	–	6,063	June 28, 2011
December 28, 2010	3,122	–	3,122	June 28, 2011
January 14, 2011	24,500	–	24,500	July 14, 2011
February 2, 2011	82,686	–	82,686	August 2, 2011
March 17, 2011	14,824	–	14,824	September 17, 2011
April 5, 2011	6,064	–	6,064	October 5, 2011
June 6, 2011	3,122	744	2,378	December 6, 2011
July 21, 2011	31,354	22,838	8,516	January 21, 2012
October 12, 2011	59,672	57,817	1,855	April 12, 2012
	5,352,606	81,399	5,271,207

Here Enterprises, Inc.

Notes to Consolidated Financial Statements

November 30, 2011

(Expressed in U.S. dollars)

(Unaudited)

Convertible Promissory Notes (continued)

(a)

On July 20, 2010, the Company issued a $10,000 convertible note to a shareholder of the Company for proceeds of $10,000. The convertible note is unsecured and bears interest at 5% per annum. Principal and accrued interest is repayable on demand commencing six months from the date of issuance being January 20, 2011. The note can be converted into shares of the Company, in whole or in part, at any time prior to maturity, at a conversion price equal to 30% of the average closing bid price for the three business days prior to the notice of conversion as quoted on the Pink Sheets quotation system. The Company analyzed the financial instrument under ASC 815, “Derivatives and Hedging”, and determined that the embedded conversion feature did not meet the characteristics of a derivative instrument. The Company recognized the intrinsic value of the embedded beneficial conversion feature of $10,000 as additional paid-in capital and reduced the carrying value of the convertible promissory note to $nil. The carrying value will be accreted over the term of the convertible promissory note up to its face value of $10,000. As at November 30, 2011, the carrying value of the convertible promissory note was $10,000. The note may be repaid by the Company, in whole or in part, at any time with 10 days notice. The holder may either accept the prepayment or request that it be immediately converted to shares of the Company at the conversion price.

(b)

On August 3, 2010, the Company issued a $10,000 convertible note to a shareholder of the Company for proceeds of $10,000. The convertible note is unsecured and bears interest at 5% per annum. Principal and accrued interest is repayable on demand commencing six months from the date of issuance being February 3, 2011. The note can be converted into shares of the Company, in whole or in part, at any time prior to maturity, at a conversion price equal to 30% of the average closing bid price for the three business days prior to the notice of conversion as quoted on the Pink Sheets quotation system. The Company analyzed the financial instrument under ASC 815, “Derivatives and Hedging”, and determined that the embedded conversion feature did not meet the characteristics of a derivative instrument. The Company recognized the intrinsic value of the embedded beneficial conversion feature of $10,000 as additional paid-in capital and reduced the carrying value of the convertible promissory note to $nil. The carrying value will be accreted over the term of the convertible promissory note up to its face value of $10,000. As at November 30, 2011, the carrying value of the convertible promissory note was $10,000. The note may be repaid by the Company, in whole or in part, at any time with 10 days notice. The holder may either accept the prepayment or request that it be immediately converted to shares of the Company at the conversion price.

(c)

On August 31, 2010, the Company issued a $10,000 convertible note to a shareholder of the Company for proceeds of $10,000. The convertible note is unsecured and bears interest at 5% per annum. Principal and accrued interest is repayable on demand commencing six months from the date of issuance being May 31, 2011. The note can be converted into shares of the Company, in whole or in part, at any time prior to maturity, at a conversion price equal to 30% of the average closing bid price for the three business days prior to the notice of conversion as quoted on the Pink Sheets quotation system. The Company analyzed the financial instrument under ASC 815, “Derivatives and Hedging”, and determined that the embedded conversion feature did not meet the characteristics of a derivative instrument. The Company recognized the intrinsic value of the embedded beneficial conversion feature of $10,000 as additional paid-in capital and reduced the carrying value of the convertible promissory note to $nil. The carrying value will be accreted over the term of the convertible promissory note up to its face value of $10,000. As at November 30, 2011, the carrying value of the convertible promissory note was $10,000. The note may be repaid by the Company, in whole or in part, at any time with 10 days notice. The holder may either accept the prepayment or request that it be immediately converted to shares of the Company at the conversion price.

(d)

On September 9, 2010, the Company, as part of the Share Purchase Agreement described in Note 3, issued a $5,000,000 convertible note pursuant to the acquisition agreement described in Note 3. The convertible note is unsecured and bears interest at 5% per annum. Principal and accrued interest is repayable on demand commencing six months from the date of issuance being March 9, 2011. The note can be converted into shares of the Company, in whole or in part, at any time prior to maturity, at a conversion price equal to 50% of the average closing bid price for the three business days prior to the notice of conversion as quoted on the Pink Sheets quotation system. The conversion price is subject to a minimum of $0.001, being par value. The Company analyzed the financial instrument under ASC 815, “Derivatives and Hedging”, and determined that the embedded conversion feature did not meet the characteristics of a derivative instrument. The Company recognized the intrinsic value of the embedded beneficial conversion feature of $5,000,000 as additional paid-in capital and reduced the carrying value of the convertible promissory note to $nil. The carrying value will be accreted over the term of the convertible promissory note up to its face value of $5,000,000. As at November 30, 2011, the carrying value of the convertible promissory note was $5,000,000. The note may be repaid by the Company, in whole or in part, at any time with 10 days notice. The holder may either accept the prepayment or request that it be immediately converted to shares of the Company at the conversion price.

Here Enterprises, Inc.

Notes to Consolidated Financial Statements

November 30, 2011

(Expressed in U.S. dollars)

(Unaudited)

Convertible Promissory Notes (continued)

(e)

On October 7, 2010, the Company issued a $12,000 convertible note to a shareholder of the Company for proceeds of $12,000. The convertible note is unsecured and bears interest at 5% per annum. Principal and accrued interest is repayable on demand commencing six months from the date of issuance being April 7, 2011. The note can be converted into shares of the Company, in whole or in part, at any time prior to maturity, at a conversion price equal to 30% of the average closing bid price for the three business days prior to the notice of conversion as quoted on the Pink Sheets quotation system. The Company analyzed the financial instrument under ASC 815, “Derivatives and Hedging”, and determined that the embedded conversion feature did not meet the characteristics of a derivative instrument. The Company recognized the intrinsic value of the embedded beneficial conversion feature of $12,000 as additional paid-in capital and reduced the carrying value of the convertible promissory note to $nil. The carrying value will be accreted over the term of the convertible promissory note up to its face value of $12,000. As at November 30, 2011, the carrying value of the convertible promissory note was $12,000. The note may be repaid by the Company, in whole or in part, at any time with 10 days notice. The holder may either accept the prepayment or request that it be immediately converted to shares of the Company at the conversion price.

(f)

On October 15, 2010, the Company issued a $25,000 convertible note to a shareholder of the Company for proceeds of $10,000, $2,826 of equipment purchased and $12,174 of expenses incurred on behalf of the Company. The convertible note is unsecured and bears interest at 5% per annum. Principal and accrued interest is repayable on demand commencing one year from the date of issuance October 15, 2011. The note can be converted into shares of the Company, in whole or in part, at any time prior to maturity, at a conversion price equal to 30% of the average closing bid price for the three business days prior to the notice of conversion as quoted on the Pink Sheets quotation system. The Company analyzed the financial instrument under ASC 815, “Derivatives and Hedging”, and determined that the embedded conversion feature did not meet the characteristics of a derivative instrument. The Company recognized the intrinsic value of the embedded beneficial conversion feature of $25,000 as additional paid-in capital and reduced the carrying value of the convertible promissory note to $Nil. The carrying value will be accreted over the term of the convertible promissory note up to its face value of $25,000. As at November 30, 2011, the carrying value of the convertible promissory note was $25,000. The note may be repaid by the Company, in whole or in part, at any time with 10 days notice. The holder may either accept the prepayment or request that it be immediately converted to shares of the Company at the conversion price.

(g)

On October 21, 2010, the Company issued a $7,459 convertible note to a shareholder of the Company for $7,459 of expenses incurred on behalf of the Company. The convertible note is unsecured and bears interest at 5% per annum. Principal and accrued interest is repayable on demand commencing one year from the date of issuance being October 21, 2011. The note can be converted into shares of the Company, in whole or in part, at any time prior to maturity, at a conversion price equal to 30% of the average closing bid price for the three business days prior to the notice of conversion as quoted on the Pink Sheets quotation system. The Company analyzed the financial instrument under ASC 815, “Derivatives and Hedging”, and determined that the embedded conversion feature did not meet the characteristics of a derivative instrument. The Company recognized the intrinsic value of the embedded beneficial conversion feature of $7,459 as additional paid-in capital and reduced the carrying value of the convertible promissory note to $nil. The carrying value will be accreted over the term of the convertible promissory note up to its face value of $7,459. As at November 30, 2011, the carrying value of the convertible promissory note was $7,459. The note may be repaid by the Company, in whole or in part, at any time with 10 days notice. The holder may either accept the prepayment or request that it be immediately converted to shares of the Company at the conversion price.

(h)

On November 8, 2010, the Company issued a $10,000 convertible note to a shareholder of the Company for proceeds of $10,000. The convertible note is unsecured and bears interest at 5% per annum. Principal and accrued interest is repayable on demand commencing six months from the date of issuance being May 8, 2011. The note can be converted into shares of the Company, in whole or in part, at any time prior to maturity, at a conversion price equal to 30% of the average closing bid price for the three business days prior to the notice of conversion as quoted on the Pink Sheets quotation system. The Company analyzed the financial instrument under ASC 815, “Derivatives and Hedging”, and determined that the embedded conversion feature did not meet the characteristics of a derivative instrument. The Company recognized the intrinsic value of the embedded beneficial conversion feature of $10,000 as additional paid-in capital and reduced the carrying value of the convertible promissory note to $nil. The carrying value will be accreted over the term of the convertible promissory note up to its face value of $10,000. As at November 30, 2011, the carrying value of the convertible promissory note was $10,000. The note may be repaid by the Company, in whole or in part, at any time with 10 days notice. The holder may either accept the prepayment or request that it be immediately converted to shares of the Company at the conversion price.

Here Enterprises, Inc.

Notes to Consolidated Financial Statements

November 30, 2011

(Expressed in U.S. dollars)

(Unaudited)

Convertible Promissory Notes (continued)

(i)

On January 14, 2011, the Company issued a $24,500 convertible note to a shareholder of the Company for proceeds of $24,500. The convertible note is unsecured and bears interest at 5% per annum. Principal and accrued interest is repayable on demand commencing six months from the date of issuance being July 14, 2011. The note can be converted into shares of the Company, in whole or in part, at any time prior to maturity, at a conversion price equal to 30% of the average closing bid price for the three business days prior to the notice of conversion as quoted on the Pink Sheets quotation system. The Company analyzed the financial instrument under ASC 815, “Derivatives and Hedging”, and determined that the embedded conversion feature did not meet the characteristics of a derivative instrument. The Company recognized the intrinsic value of the embedded beneficial conversion feature of $24,500 as additional paid-in capital and reduced the carrying value of the convertible promissory note to $nil. The carrying value will be accreted over the term of the convertible promissory note up to its face value of $24,500. As at November 30, 2011, the carrying value of the convertible promissory note was $24,500. The note may be repaid by the Company, in whole or in part, at any time with 10 days notice. The holder may either accept the prepayment or request that it be immediately converted to shares of the Company at the conversion price.

(j)

On February 2, 2011, the Company issued a $82,686 convertible note to a shareholder of the Company for proceeds of $71,000 and payment of $11,686 of expenses on behalf of the Company. The convertible note is unsecured and bears interest at 5% per annum. Principal and accrued interest is repayable on demand commencing six months from the date of issuance being August 2, 2011. The note can be converted into shares of the Company, in whole or in part, at any time prior to maturity, at a conversion price equal to 30% of the average closing bid price for the three business days prior to the notice of conversion as quoted on the Pink Sheets quotation system. The Company analyzed the financial instrument under ASC 815, “Derivatives and Hedging”, and determined that the embedded conversion feature did not meet the characteristics of a derivative instrument. The Company recognized the intrinsic value of the embedded beneficial conversion feature of $82,686 as additional paid-in capital and reduced the carrying value of the convertible promissory note to $nil. The carrying value will be accreted over the term of the convertible promissory note up to its face value of $82,686. As at November 30, 2011, the carrying value of the convertible promissory note was $82,686. The note may be repaid by the Company, in whole or in part, at any time with 10 days notice. The holder may either accept the prepayment or request that it be immediately converted to shares of the Company at the conversion price.

(k)

(l)

On March 17, 2011, the Company issued a $14,824 convertible note to a shareholder of the Company for payment of $14,823 of expenses on behalf of the Company. The convertible note is unsecured and bears interest at 5% per annum. Principal and accrued interest is repayable on demand commencing six months from the date of issuance being September 2, 2011. The note can be converted into shares of the Company, in whole or in part, at any time prior to maturity, at a conversion price equal to 30% of the average closing bid price for the three business days prior to the notice of conversion as quoted on the Pink Sheets quotation system. The Company analyzed the financial instrument under ASC 815, “Derivatives and Hedging”, and determined that the embedded conversion feature did not meet the characteristics of a derivative instrument. The Company recognized the intrinsic value of the embedded beneficial conversion feature of $14,824 as additional paid-in capital and reduced the carrying value of the convertible promissory note to $nil. The carrying value will be accreted over the term of the convertible promissory note up to its face value of $14,824. As at November 30, 2011, the carrying value of the convertible promissory note was $14,824. The note may be repaid by the Company, in whole or in part, at any time with 10 days notice. The holder may either accept the prepayment or request that it be immediately converted to shares of the Company at the conversion price.

Here Enterprises, Inc.

Notes to Consolidated Financial Statements

November 30, 2011

(Expressed in U.S. dollars)

(Unaudited)

Convertible Promissory Notes (continued)

(m)

On June 6, 2011, the Company issued a $3,122 convertible note to a shareholder of the Company for payment of expenses of $3,122. The convertible note is unsecured and bears interest at 5% per annum. Principal and accrued interest is repayable on demand commencing six months from the date of issuance being December 6, 2011. The note can be converted into shares of the Company, in whole or in part, at any time prior to maturity, at a conversion price equal to 30% of the average closing bid price for the three business days prior to the notice of conversion as quoted on the Pink Sheets quotation system. The Company analyzed the financial instrument under ASC 815, “Derivatives and Hedging”, and determined that the embedded conversion feature did not meet the characteristics of a derivative instrument. The Company recognized the intrinsic value of the embedded beneficial conversion feature of $3,122 as additional paid-in capital and reduced the carrying value of the convertible promissory note to $nil. The carrying value will be accreted over the term of the convertible promissory note up to its face value of $3,122. As at November 30, 2011, the carrying value of the convertible promissory note was $2,378. The note may be repaid by the Company, in whole or in part, at any time with 10 days notice. The holder may either accept the prepayment or request that it be immediately converted to shares of the Company at the conversion price.

(n)

On July 21, 2011, the Company issued a $31,354 convertible note to a shareholder of the Company for payment of expenses of $31,354. The convertible note is unsecured and bears interest at 5% per annum. Principal and accrued interest is repayable on demand commencing six months from the date of issuance being January 21, 2011. The note can be converted into shares of the Company, in whole or in part, at any time prior to maturity, at a conversion price equal to 30% of the average closing bid price for the three business days prior to the notice of conversion as quoted on the Pink Sheets quotation system. The Company analyzed the financial instrument under ASC 815, “Derivatives and Hedging”, and determined that the embedded conversion feature did not meet the characteristics of a derivative instrument. The Company recognized the intrinsic value of the embedded beneficial conversion feature of $31,354 as additional paid-in capital and reduced the carrying value of the convertible promissory note to $nil. The carrying value will be accreted over the term of the convertible promissory note up to its face value of $31,354. As at November 30, 2011, the carrying value of the convertible promissory note was $8,516. The note may be repaid by the Company, in whole or in part, at any time with 10 days notice. The holder may either accept the prepayment or request that it be immediately converted to shares of the Company at the conversion price.

(o)

On October 12, 2011, the Company issued a $59,672 convertible note to a shareholder of the Company. The convertible note is unsecured and bears interest at 5% per annum. Principal and accrued interest is repayable on demand commencing six months from the date of issuance being April 12, 2012. The note can be converted into shares of the Company, in whole or in part, at any time prior to maturity, at a conversion price equal to 30% of the average closing bid price for the three business days prior to the notice of conversion as quoted on the Pink Sheets quotation system. The note may be repaid by the Company, in whole or in part, at any time with 10 days notice. The holder may either accept the prepayment or request that it be immediately converted to shares of the Company at the conversion price. The Company analyzed the financial instrument under ASC 815, “Derivatives and Hedging”, and determined that the embedded conversion feature did not meet the characteristics of a derivative instrument. The Company recognized the intrinsic value of the embedded beneficial conversion feature of $59,672 as additional paid-in capital and reduced the carrying value of the convertible promissory note to $nil. The carrying value will be accreted over the term of the convertible promissory note up to its face value of $59,672. As at November 30, 2011, the carrying value of the convertible promissory note was $1,855. The note may be repaid by the Company, in whole or in part, at any time with 10 days notice. The holder may either accept the prepayment or request that it be immediately converted to shares of the Company at the conversion price.

Commitment

On November 23, 2010, the Company entered into an agreement to host three United States Auto Club sanctioned truck races. One race a year will be held in 2012, 2013 and 2014. Pursuant to the agreement the Company has paid the United States Auto Club $50,000 in 2011, and will pay $75,000 in 2012 and $100,000 in 2013.

Subsequent Events

Subsequent to November 30, 2011, $4,104,941 of outstanding convertible notes were assigned from one creditor to another. None of the terms of the debt was modified.

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

Forward-Looking Statements

This quarterly report contains forward-looking statements. These forward-looking statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expect”, “plan”, “anticipate”, “believe”, “estimate”, “predict”, “potential” or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks in the section entitled “Risk Factors”, that may cause our company’s or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

Our interim consolidated financial statements are stated in United States dollars and are prepared in accordance with United States generally accepted accounting principles. The following discussion should be read in conjunction with our interim consolidated financial statements and the related notes that appear elsewhere in this quarterly report.

In this quarterly report, unless otherwise specified, all dollar amounts are expressed in United States dollars. All references to “common shares” refer to the common shares in our capital stock. As used in this quarterly report, the terms “we”, “us” and “our” refer to Here Enterprises, Inc.

Overview

We were incorporated in the State of Nevada on November 15, 2006. Our former wholly-owned subsidiary, Here Network Corp., was incorporated in the Province of British Columbia on December 12, 2006. On March 9, 2010, the Company sold Here Network Corp. to Here Network’s controlling shareholders in exchange for the return of 5,600,000 common shares of the Company, which were distributed to certain shareholders.

On September 9, 2010, the Company entered into an agreement to become the sole shareholder of ABS Land Company, Inc. and Cycle Ranch, Inc., and the owner of 99% limited partnership interest of Cycle Ranch Management, Ltd., making them wholly-owned subsidiaries of the Company. Cycle Ranch, Inc. is the managing partner of Cycle Ranch Management, Ltd., which operates a motocross park near Floresville, Texas. ASB owns land which it leases to Cycle Ranch Management, Ltd. for its operations.

Current Business

Cycle Ranch operates a motocross race track located in Floresville, Texas. The Company has 108 acres of red dirt and oak trees. The main track is approximately 1.7 miles long and 30 feet wide and is prepared every weekend for races. There is also a junior beginner track located behind the main race track. Facilities also include bathrooms, covered pavilions with picnic tables, covered grandstands that seat 800 people, a bike wash and a bike shop. More details on the track, facilities and events can be viewed at www.cycleranchmx.com.

Sources of Revenue

Currently, Cycle Ranch generates revenues from two separate sources. Cycle Ranch Management, Ltd. generates revenues from the operation of its BMX race track through practice session fees, race event fees, camping fees, special event fees, the bike wash and sales from the bike shop. Cycle Ranch Management, Ltd. pays a fee to lease the land on which the track is located to ASB Land Management,

Inc., which is ASB’s only source of revenue. Cycle Ranch, Inc. currently only serves as general partner of Cycle Ranch Management, Ltd.

The Company generated $119,959 in revenues from continuing operations for the quarter ended November 30, 2011. Revenues generated from Here Network Corp. in the comparative period have been included in loss from discontinued operations.

Results of Operations

The following table summarizes our operating results for the three months ended November 30, 2011:


		Three Months Ended				Six Months Ended
		November 30,		November 30,		November 30,		November 30,
		2011		2010		2011		2010
Revenue	$	119,959	$	103,305	$	203,753	$	103,305
Operating Expenses	$	235,827	$	296,762	$	560,200	$	365,560
Net Loss	$	(164,489)	$	(631,186)	$	(397,765)	$	(703,767)

Three Months Ended November 30, 2011, and November 30, 2010

For the three months ended November 30, 2011, we generated $119,959 in revenues and incurred operating expenses of $235,827 as compared to revenues of $103,305 and operating expenses of $296,762 for the three months ended November 30, 2010. The decrease in operating expenses was primarily attributable to a decrease in operating expenses and wages. As a result, for the three months ended November 30, 2011, we suffered a net loss of $164,489 as compared to net loss of $631,186 for the three months ended November 30, 2010.

General and administrative costs were $35,734 for the three months ended November 30, 2011, as compared to $33,656 for the three months ended November 30, 2010. General and Administrative expenses did not drastically change.

Liquidity and Capital Resources

Working Capital


		November 30,			May 31
		2011			2011
Current assets	$	12,985		$	5,790
Current liabilities		6,756,312			6,495,983
Working capital (deficiency)	$	(6,743,327	)	$	(6,490,193	)

At November 30, 2011, we had cash of $12,985 and working capital deficit of $6,743,327 as compared to cash of $5,790,and working capital deficit of $6,490,193 at May 31, 2011. We have suffered a net loss from inception. Our ability to meet our financial liabilities and commitments is primarily dependent upon the continued financial support of our director and stockholders, the continued issuance of equity to new stockholders, and our ability to achieve and maintain profitable operations.

On October 8, 2008, the Company issued a promissory note to an unrelated company for proceeds of $30,000. The promissory note bears interest at 20% per annum, is unsecured and repayable on demand.

Company, in whole or in part, at any time without penalty. The note holder has not demanded conversion or repayment and the note remains outstanding and due on demand.

During the year ended May 31, 2011, the Company issued convertible notes totalling $51,989 to a shareholder of the Company for $51,989 of expenses paid on behalf of the Company. The convertible notes are unsecured and bear interest at 5% per annum. Principal and accrued interest is repayable on demand commencing six months from the date of issuance. The notes can be converted into shares of the Company, in whole or in part, at any time prior to maturity, at a conversion price equal to 30% of the average closing bid price for the three business days prior to the notice of conversion as quoted on the Pink Sheets quotation system. The Company analyzed the financial instrument under ASC 815, “Derivatives and Hedging”, and determined that the embedded conversion feature did not meet the characteristics of a derivative instrument. The Company recognized the intrinsic value of the embedded beneficial conversion features of $51,989 as additional paid-in capital and reduced the carrying value of the convertible promissory notes to $nil. The carrying value will be accreted over the term of the convertible promissory notes up to their aggregate face value of $51,989. As at November 30, 2011, the carrying value of the convertible promissory notes was $51,989. The notes may be repaid by the Company, in whole or in part, at any time with 10 days’ notice. The holder may either accept the prepayment or request that it be immediately converted to shares of the Company at the conversion price. On August 3, 2010, the Company issued a $10,000 convertible note to a shareholder of the Company for proceeds of $10,000. The convertible note is unsecured and bears interest at 5% per annum. Principal and accrued interest is repayable on demand commencing six months from the date of issuance being February 3, 2011. The note can be converted into shares of the Company, in whole or in part, at any time prior to maturity, at a conversion price equal to 30% of the average closing bid price for the three business days prior to the notice of conversion as quoted on the Pink Sheets quotation system. The Company analyzed the financial instrument under ASC 815, “Derivatives and Hedging”, and determined that the embedded conversion feature did not meet the characteristics of a derivative instrument. The Company recognized the intrinsic value of the embedded beneficial conversion feature of $10,000 as additional paid-in capital and reduced the carrying value of the convertible promissory note to $nil. The carrying value will be accreted over the term of the convertible promissory note up to its face value of $10,000. As at August 31, 2011, the carrying value of the convertible promissory note was $10,000. The note may be repaid by the Company, in whole or in part, at any time with 10 days’ notice. The holder may either accept the prepayment or request that it be immediately converted to shares of the Company at the conversion price.

The note may be repaid by the Company, in whole or in part, at any time with 10 days’ notice. The holder may either accept the prepayment or request that it be immediately converted to shares of the Company at the conversion price.

On September 9, 2010, the Company, as part of the Share Purchase Agreement described in Note 3, issued a $5,000,000 convertible note pursuant to the acquisition agreement described in Note 3. The convertible note is unsecured and bears interest at 5% per annum. Principal and accrued interest is repayable on demand commencing six months from the date of issuance being March 9, 2011. The note can be converted into shares of the Company, in whole or in part, at any time prior to maturity, at a conversion price equal to 50% of the average closing bid price for the three business days prior to the notice of conversion as quoted on the Pink Sheets quotation system. The conversion price is subject to a minimum of $0.001, being par value. The Company analyzed the financial instrument under ASC 815, “Derivatives and Hedging”, and determined that the embedded conversion feature did not meet the characteristics of a derivative instrument. The Company recognized the intrinsic value of the embedded beneficial conversion feature of $5,000,000 as additional paid-in capital and reduced the carrying value of the convertible promissory note to $nil. The carrying value will be accreted over the term of the convertible promissory note up to its face value of $5,000,000. As at November 30, 2011, the carrying value of the convertible promissory note was $5,000,000. The note may be repaid by the Company, in whole or in part, at any time with 10 days’ notice. The holder may either accept the prepayment or request that it be immediately converted to shares of the Company at the conversion price.

On October 7, 2010, the Company issued a $12,000 convertible note to a shareholder of the Company for proceeds of $12,000. The convertible note is unsecured and bears interest at 5% per annum. Principal and accrued interest is repayable on demand commencing six months from the date of issuance being April 7, 2011. The note can be converted into shares of the Company, in whole or in part, at any time prior to maturity, at a conversion price equal to 30% of the average closing bid price for the three business days prior to the notice of conversion as quoted on the Pink Sheets quotation system. The Company analyzed the financial instrument under ASC 815, “Derivatives and Hedging”, and determined that the embedded conversion feature did not meet the characteristics of a derivative instrument. The Company recognized the intrinsic value of the embedded beneficial conversion feature of $12,000 as additional paid-in capital and reduced the carrying value of the convertible promissory note to $nil. The carrying value will be accreted over the term of the convertible promissory note up to its face value of $12,000. As at November 30, 2011, the carrying value of the convertible promissory note was $12,000. The note may be repaid by the Company, in whole or in part, at any time with 10 days’ notice. The holder may either accept the prepayment or request that it be immediately converted to shares of the Company at the conversion price.

On October 15, 2010, the Company issued a $25,000 convertible note to a shareholder of the Company for proceeds of $10,000, $2,826 of equipment purchased and $12,174 of expenses incurred on behalf of the Company. The convertible note is unsecured and bears interest at 5% per annum. Principal and accrued interest is repayable on demand commencing one year from the date of issuance October 15, 2011. The note can be converted into shares of the Company, in whole or in part, at any time prior to maturity, at a conversion price equal to 30% of the average closing bid price for the three business days prior to the notice of conversion as quoted on the Pink Sheets quotation system. The Company analyzed the financial instrument under ASC 815, “Derivatives and Hedging”, and determined that the embedded conversion feature did not meet the characteristics of a derivative instrument. The Company recognized the intrinsic value of the embedded beneficial conversion feature of $25,000 as additional paid-in capital and reduced the carrying value of the convertible promissory note to $Nil. The carrying value will be accreted over the term of the convertible promissory note up to its face value of $25,000. As at November 30, 2011, the carrying value of the convertible promissory note was $25,000. The note may be repaid by the Company, in whole or in part, at any time with 10 days’ notice. The holder may either accept the prepayment or request that it be immediately converted to shares of the Company at the conversion price.

On October 21, 2010, the Company issued a $7,459 convertible note to a shareholder of the Company for $7,459 of expenses incurred on behalf of the Company. The convertible note is unsecured and bears interest at 5% per annum. Principal and accrued interest is repayable on demand commencing one year from the date of issuance being October 21, 2011. The note can be converted into shares of the Company, in whole or in part, at any time prior to maturity, at a conversion price equal to 30% of the average closing bid price for the three business days prior to the notice of conversion as quoted on the Pink Sheets quotation system. The Company analyzed the financial instrument under ASC 815, “Derivatives and Hedging”, and determined that the embedded conversion feature did not meet the characteristics of a derivative instrument. The Company recognized the intrinsic value of the embedded beneficial conversion feature of $7,459 as additional paid-in capital and reduced the carrying value of the convertible promissory note to $nil. The carrying value will be accreted over the term of the convertible promissory note up to its face value of $7,459. As at November 30, 2011, the carrying value of the convertible promissory note was $7,459. The note may be repaid by the Company, in whole or in part, at any time with 10 days’ notice. The holder may either accept the prepayment or request that it be immediately converted to shares of the Company at the conversion price.

On November 8, 2010, the Company issued a $10,000 convertible note to a shareholder of the Company for proceeds of $10,000. The convertible note is unsecured and bears interest at 5% per annum. Principal and accrued interest is repayable on demand commencing six months from the date of issuance being May 8, 2011. The note can be converted into shares of the Company, in whole or in part, at any time prior to maturity, at a conversion price equal to 30% of the average closing bid price for the three business days prior to the notice of conversion as quoted on the Pink Sheets quotation system. The Company analyzed the financial instrument under ASC 815, “Derivatives and Hedging”, and determined that the embedded conversion feature did not meet the characteristics of a derivative instrument. The Company recognized the intrinsic value of the embedded beneficial conversion feature of $10,000 as additional paid-in capital and reduced the carrying value of the convertible promissory note to $nil. The carrying value will be accreted over the term of the convertible promissory note up to its face value of $10,000. As at November 30, 2011, the carrying value of the convertible promissory note was $10,000. The note may be repaid by the Company, in whole or in part, at any time with 10 days’ notice. The holder may either accept the prepayment or request that it be immediately converted to shares of the Company at the conversion price.

On January 14, 2011, the Company issued a $24,500 convertible note to a shareholder of the Company for proceeds of $24,500. The convertible note is unsecured and bears interest at 5% per annum. Principal and accrued interest is repayable on demand commencing six months from the date of issuance being July 14, 2011. The note can be converted into shares of the Company, in whole or in part, at any time prior to maturity, at a conversion price equal to 30% of the average closing bid price for the three business days prior to the notice of conversion as quoted on the Pink Sheets quotation system. The Company analyzed the financial instrument under ASC 815, “Derivatives and Hedging”, and determined that the embedded conversion feature did not meet the characteristics of a derivative instrument. The Company recognized the intrinsic value of the embedded beneficial conversion feature of $24,500 as additional paid-in capital and reduced the carrying value of the convertible promissory note to $nil. The carrying value will be accreted over the term of the convertible promissory note up to its face value of $24,500. As at November 30, 2011, the carrying value of the convertible promissory note was $24,500. The note may be repaid by the Company, in whole or in part, at any time with 10 days’ notice. The holder may either accept the prepayment or request that it be immediately converted to shares of the Company at the conversion price.

On February 2, 2011, the Company issued an $82,686 convertible note to a shareholder of the Company for proceeds of $71,000 and payment of $11,686 of expenses on behalf of the Company. The convertible note is unsecured and bears interest at 5% per annum. Principal and accrued interest is repayable on demand commencing six months from the date of issuance being August 2, 2011. The note can be converted into shares of the Company, in whole or in part, at any time prior to maturity, at a conversion price equal to 30% of the average closing bid price for the three business days prior to the notice of conversion as quoted on the Pink Sheets quotation system. The Company analyzed the financial

instrument under ASC 815, “Derivatives and Hedging”, and determined that the embedded conversion feature did not meet the characteristics of a derivative instrument. The Company recognized the intrinsic value of the embedded beneficial conversion feature of $82,686 as additional paid-in capital and reduced the carrying value of the convertible promissory note to $nil. The carrying value will be accreted over the term of the convertible promissory note up to its face value of $82,686. As at November 30, 2011, the carrying value of the convertible promissory note was $82,686. The note may be repaid by the Company, in whole or in part, at any time with 10 days’ notice. The holder may either accept the prepayment or request that it be immediately converted to shares of the Company at the conversion price.

On March 17, 2011, the Company issued a $14,824 convertible note to a shareholder of the Company for payment of $14,823 of expenses on behalf of the Company. The convertible note is unsecured and bears interest at 5% per annum. Principal and accrued interest is repayable on demand commencing six months from the date of issuance being September 2, 2011. The note can be converted into shares of the Company, in whole or in part, at any time prior to maturity, at a conversion price equal to 30% of the average closing bid price for the three business days prior to the notice of conversion as quoted on the Pink Sheets quotation system. The Company analyzed the financial instrument under ASC 815, “Derivatives and Hedging”, and determined that the embedded conversion feature did not meet the characteristics of a derivative instrument. The Company recognized the intrinsic value of the embedded beneficial conversion feature of $14,824 as additional paid-in capital and reduced the carrying value of the convertible promissory note to $nil. The carrying value will be accreted over the term of the convertible promissory note up to its face value of $14,824. As at November 30, 2011, the carrying value of the convertible promissory note was $14,824. The note may be repaid by the Company, in whole or in part, at any time with 10 days’ notice. The holder may either accept the prepayment or request that it be immediately converted to shares of the Company at the conversion price.

either accept the prepayment or request that it be immediately converted to shares of the Company at the conversion price.

On July 21, 2011, the Company issued a $31,354 convertible note to a shareholder of the Company for payment of expenses of $31,354. The convertible note is unsecured and bears interest at 5% per annum. Principal and accrued interest is repayable on demand commencing six months from the date of issuance being January 21, 2011. The note can be converted into shares of the Company, in whole or in part, at any time prior to maturity, at a conversion price equal to 30% of the average closing bid price for the three business days prior to the notice of conversion as quoted on the Pink Sheets quotation system. The Company analyzed the financial instrument under ASC 815, “Derivatives and Hedging”, and determined that the embedded conversion feature did not meet the characteristics of a derivative instrument. The Company recognized the intrinsic value of the embedded beneficial conversion feature of $31,354 as additional paid-in capital and reduced the carrying value of the convertible promissory note to $nil. The carrying value will be accreted over the term of the convertible promissory note up to its face value of $31,354. As at November 30, 2011, the carrying value of the convertible promissory note was $8,516. The note may be repaid by the Company, in whole or in part, at any time with 10 days’ notice. The holder may either accept the prepayment or request that it be immediately converted to shares of the Company at the conversion price.

Management believes that our cash will not be sufficient to meet our working capital requirements for the next twelve month period. We plan to raise the capital required to satisfy our immediate short-term needs and additional capital required to meet our funding requirements for the next twelve months primarily through future debt or equity financing. There is no assurance that we will be able to obtain further funds required for our continued working capital requirements. If we are not able to obtain additional funds on a timely basis, we will be unable to conduct our operations as planned. In such event, we will be forced to scale down or perhaps even cease our operations.

Going Concern

There is substantial doubt about our ability to continue as a going concern as the continuation of our business is dependent upon the continued financial support from our stockholders, our ability to obtain necessary equity financing to continue operations, and achieving a profitable level of operations. The issuance of additional equity securities by us could result in a significant dilution in the equity interests of our current stockholders. Obtaining commercial loans, assuming those loans would be available, will increase our liabilities and future cash commitments.

Because we have a working capital deficit, have generated minimal revenues, and have incurred losses from operations since inception, in their report on our audited financial statements for the year ended May 31, 2011, our independent auditors included an explanatory paragraph regarding substantial doubt about our ability to continue as a going concern. Our financial statements contain additional note disclosures describing the circumstances that lead to this disclosure by our independent auditors.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to our stockholders.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Not applicable.

Item 4. Controls and Procedures.

As required by Rule 13a-15 under the Securities Exchange Act of 1934, we have carried out an evaluation of the effectiveness of our disclosure controls and procedures as of the end of the period covered by this quarterly report, being November 30, 2011. This evaluation was carried out under the supervision and with the participation of our management, including our president (our principal executive officer, principal financial officer, and principal accounting officer).

Our management does not expect that our disclosure controls or our internal controls over financial reporting will prevent all error and fraud. A control system, no matter how well conceived and operated, can provide only reasonable, but not absolute, assurance that the objectives of a control system are met. Further, any control system reflects limitations on resources, and the benefits of a control system must be considered relative to its costs. These limitations also include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people or by management override of a control. The design of a control system is also based upon certain assumptions about potential future conditions; over time, currently implemented controls may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. Due to the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and may not be detected.

Based upon that evaluation, our president concluded that our disclosure controls and procedures were ineffective as at the end of the period covered by this quarterly report. The Company has made certain changes in its internal controls over financial reporting that occurred during our last fiscal quarter that have materially affected, or are reasonably likely to materially affect our internal control over financial reporting due to the acquisition of Cycle Ranch. The Company has added additional personnel to assist with operations and record keeping.

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported, within the applicable time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include controls and procedures which are designed to ensure that information required to be disclosed in our reports filed under the Securities Exchange Act of 1934 is accumulated and communicated to management, including our president to allow timely decisions regarding required disclosure.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

We know of no material, active or pending legal proceedings against our company, nor are we involved as a plaintiff in any material proceeding or pending litigation. There are no proceedings in which our director and officer, or affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our interest.

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

None.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. (Removed and Reserved).

Item 5. Other Information.

None.

Item 6. Exhibits.


Exhibit
Number	Description

3.1	Articles of Incorporation (incorporated by reference from our registration statement on Form SB-2 filed on September 10, 2007, as amended)

3.2	Bylaws (incorporated by reference from our registration statement on Form SB-2 filed on September 10, 2007, as amended)

3.3	Amended Bylaws (incorporated by reference from our registration statement on Form SB-2 filed on September 10, 2007, as amended)

3.4	Certificate of Amendment (incorporated herein by reference to our Current Report on Form 8K filed June 2, 2010)

10.1	Securities Purchase Agreement with the Good One, Inc., and associated companies (incorporated by reference from our Current Report on Form 8K filed on September 24, 2010)

21*	Subsidiary of Here Enterprises, Inc.:

31*	Section 302 Certification of Mark K. Ryun

32*	Section 906 Certification of Mark K. Ryun

101INS*	XBRL Instance**

101.SCH*	XBRL Taxonomy Extension Schema**

101.CAL*	XBRL Taxonomy Extension Calculation**

101.DEF*	XBRL Taxonomy Extension Definition**

101.LAB*	XBRL Taxonomy Extension Labels**

101.PRE*	XBRL Taxonomy Extension Presentation**

* Filed herewith.

** XBRL information is furnished and not filed or a part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

SIGNATURES

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

HERE ENTERPRISES, INC.


By:	*Mark K. Ryun*
	Mark K. Ryun
	President, Secretary, Treasurer and Director
	(Principal Executive Officer, Principal Financial Officer
	and Principal Accounting Officer)
	Date: May 7, 2012

HERE ENTERPRISES, INC. 10-Q