SECURITIES AND EXCHANGE COMMISSION
                        WASHINGTON, D.C. 20549

                              FORM 10-Q

[x] Quarterly Report Pursuant to Section 13 or 15(d) Securities
Exchange Act of 1934 for Quarterly Period Ended September 30, 2008March 31, 2009

- -OR-

[ ] Transition Report Pursuant to Section 13 or 15(d) of the
Securities And Exchange Act of 1934 for the transaction period from
_________ to________

                  Commission File Number      0-4006

                       Baynon International Corp.
                       (Exact name of Registrant
                             in its charter)

            Nevada                                88-0285718
- -------------------------------            ----------------------
(State or Other Jurisdiction of                (I.R.S. Employer
 Incorporation or Organization)              Identification Number)

266 Cedar Street, Cedar Grove, New Jersey         07009
- -----------------------------------------      ----------
(Address of Principal Executive Offices)        (Zip Code)


Baynon's Telephone Number, Including Area Code: (973) 239-2952

Indicate by check mark whether the issuer (1) 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 is a large accelerated
filer, an accelerated filer, a non-accelerate filer, or a small
reporting company as defined by Rule 12b-2 of the Exchange Act):

Large accelerated filer [ ]     Non-accelerated filer     [ ]
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 [x] No [ ]

The number of outstanding shares of the registrant's common stock,
October 31, 2008:April 30, 2009:  Common Stock - 21,152,69223,272,692



2

                 BAYNON INTERNATIONAL CORP.
                         FORM 10-Q
For the quarterly period ended September 30, 2008
                           INDEX

                                                             Page
                                                             ----

PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements

         Balance Sheets at March 31, 2009 (Unaudited)
         and December 31, 2008 (Audited)                       3

         Statements of Operations for the three months
           ended March 31, 2009 and 2008 (Unaudited)           4

         Statements of Cash Flows for the three months
           ended March 31, 2009 and 2008 (Unaudited)           5

         Notes to Financial Statements                         6

Item 2.  Management's Discussion and Analysis of
           Financial Condition and Results of Operations       128

Item 3.  Quantitative and Qualitative Disclosure About
           Market Risk                                         149

Item 4T. Controls and Procedures                              1410

PART II - OTHER INFORMATION

Item 1.  Legal Proceedings                                    1711

Item 1A. Risk Factors                                         1711

Item 2.  Unregistered Sales of Equity Securities and Use
           of Proceeds                                        1711

Item 3.  Defaults upon Senior Securities                      1711

Item 4.  Submission of Matters to a Vote of Security
           Holders                                            1711

Item 5.  Other Information                                    1711

Item 6.  Exhibits                                             1711

SIGNATURES                                                    11






3

                                 PART I
                    Item I - FINANCIAL STATEMENTS

                       BAYNON INTERNATIONAL CORP.
                             BALANCE SHEETS

                                        
                                                 SEPTEMBER 30,          December 31,
                                                     2008                2007
                                                 -------------       ------------
                                                  (UNAUDITED)           (AUDITED)

ASSETS

CURRENT ASSETS:
   Cash and cash equivalents                      $      5,594       $     14,513
                                                  ------------       ------------
   TOTAL CURRENT ASSETS                                  5,594             14,513
                                                  ------------       ------------
TOTAL ASSETS                                      $      5,594       $     14,513March 31,         December 31,
                                          2009                2008
                                     -------------       ------------
                                       (UNAUDITED)           (AUDITED)

                               ASSETS

CURRENT ASSETS:
   Cash and cash equivalents           $      4,483       $     22,949
                                       ------------       ------------
   TOTAL CURRENT ASSETS                       4,483             22,949
                                       ------------       ------------
TOTAL ASSETS                           $      4,483       $     22,949
                                       ============       ============

LIABILITIES AND STOCKHOLDERS' DEFICIENCY

CURRENT LIABILITIES:
   Accounts payable and accrued
     expenses                          $     18,420       $     31,345
   Convertible notes payable -
     stockholders                            25,000             25,000
   Accrued interest - stockholders              401                 32
                                       ------------       ------------
   TOTAL CURRENT LIABILITIES                 43,821             56,377
                                       ------------       ------------
TOTAL LIABILITIES                            43,821             56,377
                                       ------------       ------------

STOCKHOLDERS' DEFICIENCY:
   Common stock, par value $.001,
    authorized 50,000,000 shares, issued
    and outstanding 23,272,692 shares        23,273             23,273
   Additional paid-in capital               155,660            155,660
   Accumulated deficit                     (218,271)          (212,361)
                                       ------------       ------------
   TOTAL STOCKHOLDERS' DEFICIENCY           (39,338)           (33,428)
                                       ------------       ------------
TOTAL LIABILITIES AND STOCKHOLDERS'
   DEFICIENCY                          $      4,483       $     22,949
                                       ============       ============

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY)

CURRENT LIABILITIES:
   Accounts payable and accrued expenses          $     24,726       $     19,470
   Related party loan                                    5,000                  -
   Note payable, stockholder                            20,000             20,000
   Accrued interest, stockholder                         1,072                 62
                                                  ------------       ------------
   TOTAL CURRENT LIABILITIES                            50,798             39,532
                                                  ------------       ------------
TOTAL LIABILITIES                                       50,798             39,532
                                                  ------------       ------------

STOCKHOLDERS' EQUITY (DEFICIENCY):
   Common stock, par value $.001,
    authorized 50,000,000 shares, issued
     and outstanding 21,152,692 shares                  21,153             21,153
   Additional paid-in-capital                          136,580            136,580
   Accumulated deficit                                (202,937)          (182,752)
                                                  ------------       ------------
   TOTAL STOCKHOLDERS' DEFICIENCY                      (45,204)           (25,019)
                                                  ------------       ------------
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIENCY    $      5,594       $     14,513
                                                  ============       ============
The accompanying notes are an integral part of these financial statements 4 BAYNON INTERNATIONAL CORP. STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended Nine Months Ended September 30, September 30, 2008 2007 2008 2007 ---------- ---------- ---------- --------- Revenues $ - $ - $ - $ - Cost of revenue - - - - -------- -------- -------- -------- Gross Profit - - - - -------- -------- -------- -------- Other Costs: General and administrative expenses 4,430 11,769 19,223 27,365 -------- -------- -------- -------- Total Other Cost 4,430 11,769 19,223 27,365 -------- -------- -------- -------- Other Income(Expense): Interest income 10 14 49 233 Interest expense (378) (302) (1,010) (897) -------- -------- -------- -------- Total Other Income (Expense) (368) (288) (961) (664) -------- -------- -------- -------- Net Loss $ (4,798) $(12,057) $(20,184) $ (28,029) ======== ======== ======== ======== Earning (loss)Three Months Ended March 31, 2009 2008 -------- -------- Revenues $ - $ - Cost of revenue - - -------- -------- Gross Profit - - -------- -------- Other Costs: General and administrative expenses 5,575 8,380 -------- -------- Total Other Costs 5,575 8,380 -------- -------- Operating loss (5,575) (8,380) -------- -------- Other Income(Expense): Interest income 34 31 Interest expense - stockholders (369) (300) -------- -------- Total Other Income(Expense) (335) (269) -------- -------- Net Loss $ (5,910) $ (8,649) ======== ======== Earnings(Loss) per share: Basic and diluted earnings (loss) per common share $ - $ - $ - $ - ======== ======== ======== ======== Basic and diluted common shares outstanding 23,272,692 21,152,692 19,032,692 21,152,692 19,032,692 ========== ========== ========== ==========
The accompanying notes are an integral part of these financial statements.statements 5 BAYNON INTERNATIONAL CORP. STATEMENTS OF CASH FLOWS FOR THE NINETHREE MONTHS ENDED SEPTEMBER 30,MARCH 31, 2009 AND 2008 AND 2007 (UNAUDITED) 2008 2007 ---- ---- Cash Flows from Operating Activities: Net loss $ (20,184) $ (28,029) Adjustments to reconcile net loss to net cash used in operating activities: Increase in accounts payable and accrued expenses 6,265 22,688 ----------- ----------- Net cash used in operating activities (13,919) (5,341) ----------- ----------- Cash Flows from Financing Activities Proceeds from related party loan 5,000 - ----------- ----------- Decrease in Cash and Cash Equivalents (8,919) (5,341) Cash and Cash Equivalents, beginning of period 14,513 12,940 ----------- ----------- Cash and Cash Equivalents, end of period $ 5,594 $ 7,599 =========== =========== Supplemental Disclosures of Cash Flow Information: Cash paid during year for: Income Taxes $ 520 $ - =========== ===========
2009 2008 ---- ---- Cash Flows from Operating Activities: Net loss $ (5,910) $ (8,649) Adjustments to reconcile net loss to net cash used in operating activities: Decrease in accounts payable and accrued expenses (12,925) (3,200) Increase in accrued interest - stockholders 369 300 ---------- ---------- Net cash used in operating activities (18,466) (11,549) ---------- ---------- Decrease in Cash and Cash Equivalents (18,466) (11,549) Cash and Cash Equivalents, beginning of period 22,949 14,513 ---------- ---------- Cash and Cash Equivalents, end of period $ 4,483 $ 2,964 ========== ========== Supplemental Disclosures of Cash Flow Information: Cash paid during year for: Income Taxes $ - $ - ========== ========== Interest $ - $ - ========== ========== The accompanying notes are an integral part of these financial statements 6 BAYNON INTERNATIONAL CORP. NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30,MARCH 31, 2009 AND 2008 (UNAUDITED) 1. THE COMPANY Baynon International CorporationCorp. formerly known as Technology Associates Corporation (the "Company"), was originally incorporated on February 29, 1968 under the laws of the Commonwealth of Massachusetts to engage in any lawful corporate undertaking. On December 28, 1989, the Company reincorporated under the laws of the State of Nevada. The Company was formerly engaged in the technology marketing business and its securities traded on the National Association of Securities Dealers OTC Bulletin Board. The Company has not engaged in any business operations for at least the last sixseven fiscal years and has no operations to date. The Company will attempt to identify and negotiate with a business target for the merger of that entity with and into the Company. In certain instances, a target company may wish to become a subsidiary of the Company or wish to contribute assets to the Company rather than merge. No assurance can be given that the Company will be successful in identifying or negotiating with any target company. The Company provides a means for a foreign or domestic private company to become a reporting (public) company whose securities would be qualified for trading in the United States secondary market. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Interim Presentation The December 31, 20072008 balance sheet data was derived from audited financial statements but does not include all disclosures required by generally accepted accounting principles. In the opinion of management, the accompanying unaudited financial statements contain all normal and recurring adjustments necessary to present fairly the financial position of the Company as of September 30, 2008,March 31, 2009, its results of operations for the three and nine months ended September 30,March 31, 2009 and 2008 and 2007 and its cash flows for the ninethree months ended September 30, 2008March 31, 2009 and 2007.2008. The statements of operations for the three and nine months ended September 30,March 31, 2009 and 2008 and 2007 are not necessarily indicative of the results for the full year. While the Company believes that the disclosures presented are adequate to make the information not misleading, these financial statements should be read in conjunction with the financial statements and accompanying notes included in the Company's annual Report on Form 10- KSB10-K for the year ended December 31, 2007. 7 BAYNON INTERNATIONAL CORP. NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2008 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates These financial statements and accompanying notes have been prepared in accordance with GAAP. The preparation of these financial statements requires management to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. The Company continually evaluates the accounting policies and estimates used to prepare the consolidated financial statements. The Company bases its estimates on historical experiences and assumptions believed to be reasonable under current facts and circumstances. Actual amounts and results could differ from these estimates made by management.2008. Earnings (Loss) Per Share The Company computes earnings or loss per share in accordance with Statement of Financial Accounting Standards ("SFAS") No. 128, (SFAS 128), "Earnings Per Share". Basic earnings per share is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding. Diluted earnings per share reflects the potential dilution that could occur if securities or other agreements to issue common stock were exercised or converted into common stock. Diluted earnings per share is computed based upon the weighted average number of common shares and dilutive common equivalent shares outstanding, which includes convertible debentures, stock options and 7 BAYNON INTERNATIONAL CORP. NOTES TO FINANCIAL STATEMENTS MARCH 31, 2009 AND 2008 (UNAUDITED) warrants. The following securities have been excluded from the calculation of loss per share for the three and nine months ended September 30,March 31, 2009 and 2008 and 2007 as their effect would be antidilutive: Three and Nine Months Ended September 30,March 31, --------------------------- 2009 2008 2007 ---- ---- Convertible debt and accrued interest - stockholder 2,107,200 2,066,000708,603 633,096 Going Concern The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As shown in the accompanying financial statements, the Company has incurred continuing operating losses and has an accumulated deficit of $202,937$218,271 at September 30, 2008.March 31, 2009. The Company has no revenue generating operations and has limited cash resources. These factors raise substantial doubt about the ability of the Company to continue as a going concern. Management believes that it will be able to achieve a satisfactory level of liquidity to meet the Company's obligations through December 31, 20082009 by obtaining additional financing from key officers, directors and certain investors. However, there can be no assurance that the8 BAYNON INTERNATIONAL CORP. NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2008 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Going Concern (Continued) Company will be able to generate sufficient liquidity to maintain its operations. The financial statements do not include any adjustments that might result from the outcome of these uncertainties. Recently Issued Accounting Standards The Company adopted SFAS No. 157, "Fair Value Measurements" as of January 1, 2008. This statement defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. The adoption of this pronouncement did not have a material effect on the financial position and results of operations of the Company. On January 1, 2008 we adopted SFAS No. 159, "The Fair Value Option for Financial Assets and Financial Liabilities - Including an Amendment of FASB Statement No. 115" (SFAS No. 159), which permits a company to measure certain financial assets and financial liabilities at fair value that were not previously required to be measured at fair value. We have not elected to measure any financial assets and financial liabilities at fair value which were not previously required to be measured at fair value. Therefore, the adoption of this standard has had no effect on our results of operations. In December 2007, the FASB issued SFAS No. 160, "Noncontrolling Interests in Consolidated Financial Statements - an amendment of ARB No. 51," ("SFAS No. 160"). SFAS No. 160 amends Accounting Research Bulletin No. 51, "Consolidated Financial Statements," to establish accounting and reporting standards for any noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. SFAS No. 160 clarifies that a noncontrolling interest in a subsidiary should be reported as a component of equity in the consolidated financial statements and requires disclosure, on the face of the consolidated statement of income, of the amounts of consolidated net income attributable to the parent and to the noncontrolled interest. SFAS No. 160 is effective for the Company beginning January 1, 2009 and is to be applied prospectively, except for the presentation and disclosure requirements, which upon adoption will be applied retrospectively for all periods presented. Early adoption of SFAS No. 160 is prohibited. The Company does not expect the adoption of this pronouncement to have a material effect on its financial statements. In April 2008, the FASB issued FSP FAS 142-3, "Determination of the Useful Life of Intangible Assets" ("FSP FAS 142-3"). FSP FAS 142-3 amends FASB Statement No. 142, "Goodwill and Other Intangible Assets" ("SFAS No. 142") to improve the consistency between the useful life of a recognized intangible asset under SFAS No. 142 and the period of 9 BAYNON INTERNATIONAL CORP.3. CONVERTIBLE NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2008 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Recently Issued Accounting Standards (Continued) expected cash flows used to measure the fair value of the asset under FASB Statement No 141, "Business Combinations" ("SFAS No. 141") and other U.S. GAAP. This FSP is effective for fiscal years beginning after December 15, 2008. The guidance for determining the useful life of a recognized intangible asset is to be applied prospectively, therefore, the impact of the implementation of this pronouncement cannot be determined until the transactions occur. In May 2008, the FASB issued SFAS No. 162 "The Hierarchy of Generally Accepted Accounting Principles". SFAS No. 162 identifies the sources of accounting principles and the framework for selecting the principles to be used in the preparation of financial statements of nongovernmental entities that are presented in conformity with generally accepted accounting principles. SFAS No. 162 is effective 60 days following the Securities and Exchange Commission's approval of the Public Company Accounting Oversight Board Auditing amendments to AU Section 411, "The Meaning of Present Fairly in Conformity with Generally Accepted Accounting Principles." The Company does not expect the adoption of SFAS No. 162 to change its current practice nor does the Company anticipate an effect on its results of operations or financial position. Management does not believe that any other recently issued, but not yet effective, accounting standard if currently adopted would have a material effect on the accompanying financial statements. 3. RELATED PARTY TRANSACTIONS The related party loan is due to the principle executive officer, is unsecured, bears interest at 6% per annum and has no specific terms for repayment. 4. CONVERTIBLE NOTE PAYABLE - STOCKHOLDERSTOCKHOLDERS On December 13, 2006,2008, the Company issued an unsecured note payable to a stockholder in exchange for $20,000$5,000 in cash, in order for the Company to pay current invoices. The note borebears interest at 6% per annum and maturedmatures on December 13, 2007.2009. The stockholder hadhas the option to convert the note and accrued interest into the Company's common stock at $.01 per share. The option was exercisedexpires on December 12, 2007 and 2,120,000 shares of common stock were issued in satisfaction for the note and accrued interest. 10 BAYNON INTERNATIONAL CORP. NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2008 4. CONVERTIBLE NOTE PAYABLE - STOCKHOLDER (Continued)13, 2009. On December 13, 2007,26, 2008, the Company issued an unsecured note payable to a stockholder in exchange for $20,000 in cash, in order for the Company to pay current invoices. The note bears interest at 6% per annum and matures on December 13, 2008.26, 2009. The stockholder has the option to convert the note and accrued interest into the Company's common stock at $.01 per share. The option expires on December 13, 2008.26, 2009. At September 30,March 31, 2009 and December 31, 2008, and 2007, accrued interest on the loan and note was $1,072$401 and $960$32, respectively. Interest expense amounted to $378, $302, $1,010$369 and $897$300 for the three and nine months ended September 30,March 31, 2009 and 2008, and 2007, respectively. 5. COMMON STOCK The authorized capital stock of the Company consist of 50,000,000 shares of common stock, par value $.001 per share, of which 21,152,692 shares were issued and outstanding at September 30, 2008 and December 31, 2007. On December 12, 2007, the Board of Directors authorized the issuance of 2,120,000 shares of common stock in payment for a note payable of $20,000 plus accrued interest of $1,200. Holders of shares of common stock are entitled to one vote for each share on all matters to be voted on by the stockholders. Holders of common stock do not have cumulative voting rights. Holders of common stock are entitled to share ratably in dividends, if any, as may be declared from time to time by the Board of Directors in its discretion from funds legally available therefore. In the event of liquidation, dissolution or winding up of the Company, the holders of common stock are entitled to share pro rata in all assets remaining after payment in full of all liabilities. All of the outstanding shares of common stock are fully paid and non-assessable. Holders of common stock have no preemptive rights to purchase the Company's common stock. There are no conversions or redemption rights or sinking fund provisions with respect to the common stock. 6. INCOME TAXES The component of deferred tax assets is as follows: September 30, December 31, 2008 2007 ------------- ----------- (Unaudited) (Audited) --------- ------- Net operating loss carry forwards $ 65,700 $ 57,700 Less: Valuation allowance (65,700) (57,700) --------- --------- $ - $ - ========= ========= 11 BAYNON INTERNATIONAL CORP. NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2008 6. INCOME TAXES (Continued) A 100% valuation allowance was provided at September 30, 2008 and December 31, 2007 as it is uncertain if the deferred tax assets would be utilized. The increase in the valuation allowance was as a result of the increase in the Company's net operating loss. At September 30, 2008, the Company has unused federal net operating loss carry forwards of approximately $199,000 expiring between 2019 and 2028 and unused New Jersey net operating loss carry forwards of approximately $164,000 expiring between 2008 and 2015. 128 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Trends and Uncertainties There are no material commitments for capital expenditure at this time. There are no trends, events or uncertainties that have had or are reasonably expected to have a material impact on our limited operations. There are no known causes for any material changes from period to period in one or more line items of Baynon International Corp.'s financial statements. Liquidity and Capital Resources At September 30, 2008, Baynon International Corp. had a cash balance of $5,594, which represents an $8,919 decrease from the $14,513 balance at December 31, 2007. This decrease was primarily the result of cash proceeds used to satisfy the requirements of a reporting company. Baynon's working capital position at September 30, 2008 was ($45,204) as compared to a December 31, 2007 balance of ($25,019). The focus of Baynon's efforts is to acquire or develop an operating business. Despite no active operations at this time, management intends to continue in business and has no intention to liquidate Baynon. Baynon has considered various business alternatives including the possible acquisition of an existing business, but to date has found possible opportunities unsuitable or excessively priced. Baynon does not contemplate limiting the scope of its search to any particular industry. Management has considered the risk of possible opportunities as well as their potential rewards. Management has invested time evaluating several proposals for possible acquisition or combination, however, none of these opportunities were pursued. Baynon presently owns no real property and at this time has no intention of acquiring any such property. Baynon's sole expected expenses are comprised of professional fees primarily incident to its reporting requirements. The accompanying financial statements have been prepared assuming Baynon will continue as a going concern. As shown in the accompanying financial statements, Baynon has incurred losses of $20,184 and $28,029 for the nine months ended September 30, 2008 and 2007, respectively, and a working capital deficiency which raises substantial doubt about the Company's ability to continue as a going concern. Management believes Baynon will continue to incur losses and negative cash flows from operating activities for the foreseeable future and will need additional equity or debt financing to sustain its operations until it can achieve profitability and positive cash flows, if ever. Management plans to seek additional debt and/or equity financing for the Company, but cannot assure that such financing will be available on acceptable terms. Baynon's continuation as a going concern is dependent upon its ability to ultimately attain profitable operations, generate sufficient cash flow to meet its obligations, and obtain additional financing as may be required. The outcome of this uncertainty cannot be assured. 13 The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty. There can be no assurance that management will be successful in implementing its business plan or that the successful implementation of such business plan will actually improve Baynon's operating results. Results of Operations for the Nine Months Ended September 30, 2008, compared to the Nine Months Ended September 30, 2007. Baynon incurred a net loss of $20,184 in the current year versus a net loss of $28,029 in the prior year. General and administrative expenses were $19,223 compared to $27,365 in the prior year, a decrease of $8,142. General and administrative expenses were incurred primarily to enable Baynon to satisfy the requirements of a reporting company. During the current and prior year, Baynon did not record an income tax benefit due to the uncertainty associated with Baynon's ability to merge with an operating company, which might permit Baynon to avail itself of those advantages. Results of Operations for the Three Months Ended September 30, 2008, Compared to the Three Months Ended September 30, 2007. Baynon incurred a net loss of $4,798 in the current year versus a net loss of $12,057 in the prior year. General and administrative expenses were $4,430 compared to $11,769 in the prior year, a decrease of $7,339. General and administrative expenses were incurred primarily to enable Baynon to satisfy the requirements of a reporting company. The accompanying financial statements have been prepared assuming Baynon will continue as a going concern. As shown in the accompanying financial statements, Baynon has incurred a working capital deficiency which raises substantial doubt about Baynon's ability to continue as a going concern. Management believes the Company will continue to incur losses and negative cash flows from operating activities for the foreseeable future and will need additional equity or debt financing to sustain its operations until it can achieve profitability and positive cash flows, if ever. Management plans to seek additional debt and/or equity financing for Baynon, but cannot assure that such financing will be available on acceptable terms. Baynon's continuation as a going concern is dependent upon its ability to ultimately attain profitable operations, generate sufficient cash flow to meet its obligations, and obtain additional financing as may be required. The outcome of this uncertainty cannot be assured. 14 The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty. There can be no assurance that management will be successful in implementing its business plan or that the successful implementation of such business plan will actually improve our operating results. Recently Issued Accounting Standards The Company adopted SFAS No. 157, "Fair Value Measurements" as of January 1, 2008. This statement defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. The adoption of this pronouncement did not have a material effect on the financial position and results of operations of the Company. On January 1, 2008 we adopted SFAS No. 159, "The Fair Value Option for Financial Assets and Financial Liabilities - Including an Amendment of FASB Statement No. 115" (SFAS No. 159), which permits a company to measure certain financial assets and financial liabilities at fair value that were not previously required to be measured at fair value. We have not elected to measure any financial assets and financial liabilities at fair value which were not previously required to be measured at fair value. Therefore, the adoption of this standard has had no effect on our results of operations. In December 2007, the FASB issued SFAS No. 160, "Noncontrolling Interests in Consolidated Financial Statements - an amendment of ARB No. 51," ("SFAS No. 160"). SFAS No. 160 amends Accounting Research Bulletin No. 51, "Consolidated Financial Statements," to establish accounting and reporting standards for any noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. SFAS No. 160 clarifies that a noncontrolling interest in a subsidiary should be reported as a component of equity in the consolidated financial statements and requires disclosure, on the face of the consolidated statement of income, of the amounts of consolidated net income attributable to the parent and to the noncontrolled interest. SFAS No. 160 is effective for the Company beginning January 1, 2009 and is to be applied prospectively, except for the presentation and disclosure requirements, which upon adoption will be applied retrospectively for all periods presented. Early adoption of SFAS No. 160 is prohibited. The Company does not expect the adoption of this pronouncement to have a material effect on its financial statements. In April 2008, the FASB issued FSP FAS 142-3, "Determination of the Useful Life of Intangible Assets" ("FSP FAS 142-3"). FSP FAS 142-3 amends FASB Statement No. 142, "Goodwill and Other Intangible Assets" ("SFAS No. 142") to improve the consistency between the useful life of a recognized intangible asset under SFAS No. 142 and the period of expected cash flows used to measure the fair value of the asset under FASB Statement No 141, "Business Combinations" ("SFAS No. 141") and other U.S. GAAP. This FSP is effective for fiscal years beginning after December 15, 2008. The guidance for determining the useful life of a recognized intangible asset is to be applied prospectively, therefore, the impact of the implementation of this pronouncement cannot be determined until the transactions occur. 15 In May 2008, the FASB issued SFAS No. 162 "The Hierarchy of Generally Accepted Accounting Principles". SFAS No. 162 identifies the sources of accounting principles and the framework for selecting the principles to be used in the preparation of financial statements of nongovernmental entities that are presented in conformity with generally accepted accounting principles. SFAS No. 162 is effective 60 days following the Securities and Exchange Commission's approval of the Public Company Accounting Oversight Board Auditing amendments to AU Section 411, "The Meaning of Present Fairly in Conformity with Generally Accepted Accounting Principles." The Company does not expect the adoption of SFAS No. 162 to change its current practice nor does the Company anticipate an effect on its results of operations or financial position. Forward-Looking Statements This Form 10-Q contains forward-looking statements within the meaning of the federal securities laws. These statements include those concerning the following: Our intentions, beliefs and expectations regarding the fair value of all assets and liabilities recorded; our strategies; growth opportunities; product development and introduction relating to new and existing products; the enterprise market and related opportunities; competition and competitive advantages and disadvantages; industry standards and compatibility of our products; relationships with our employees; our facilities, operating lease and our ability to secure additional space; cash dividends; excess inventory, our expenses; interest and other income; our beliefs and expectations about our future success and results; our operating results; our belief that our cash and cash equivalents will be sufficient to satisfy our anticipated cash requirements; our expectations regarding our revenues and customers; investments and interest rates. These statements are subject to risk and uncertainties that could cause actual results and events to differ materially. Baynon undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this Form 10-Q. Critical Accounting Policies The financial statements and accompanying footnotes included in this report have been prepared in accordance with accounting principles generally accepted in the United States with certain amounts based on management's best estimates and judgments. To determine appropriate carrying values of assets and liabilities that are not readily available from other sources, management uses assumptions based on historical results and other factors that they believe are reasonable. Actual results could differ from those estimates. Our critical accounting policies are described in our Annual Report on Form 10-K for the year ended December 31, 2008. There have been no material changes to our critical accounting policies as of and for the three months ended March 31, 2009. Trends and Uncertainties There are no material commitments for capital expenditure at this time. There are no trends, events or uncertainties that have had or are reasonably expected to have a material impact on our limited operations. There are no known causes for any material changes from period to period in one or more line items of Baynon's financial statements. Liquidity and Capital Resources At March 31, 2009, Baynon had a cash balance of $4,483, which represents an $18,466 decrease from the $22,949 balance at December 31, 2008. This decrease was primarily the result of cash used to satisfy the requirements of a reporting company. Baynon's working capital deficit at March 31, 2009 was $39,338 as compared to a December 31, 2008 deficit of $33,428. The focus of Baynon's efforts is to acquire or develop an operating business. Despite no active operations at this time, management intends to continue in business and has no intention to liquidate Baynon. Baynon has considered various business alternatives including the possible acquisition of an existing business, but to date has found 9 possible opportunities unsuitable or excessively priced. Baynon does not contemplate limiting the scope of its search to any particular industry. Management has considered the risk of possible opportunities as well as their potential rewards. Management has invested time evaluating several proposals for possible acquisition or combination; however, none of these opportunities were pursued. Baynon presently owns no real property and at this time has no intention of acquiring any such property. Baynon's sole expected expenses are comprised of professional fees primarily incident to its reporting requirements. The accompanying financial statements have been prepared assuming Baynon will continue as a going concern. As shown in the accompanying financial statements, Baynon has incurred losses of $5,910 and $8,649 for the three months ended March 31, 2009 and 2008, respectively, and a working capital deficiency which raises substantial doubt about the Company's ability to continue as a going concern. Management believes Baynon will continue to incur losses and negative cash flows from operating activities for the foreseeable future and will need additional equity or debt financing to sustain its operations until it can achieve profitability and positive cash flows, if ever. Management plans to seek additional debt and/or equity financing for the Company, but cannot assure that such financing will be available on acceptable terms. Baynon's continuation as a going concern is dependent upon its ability to ultimately attain profitable operations, generate sufficient cash flow to meet its obligations, and obtain additional financing as may be required. Our auditors have included a "going concern" qualification in their auditors' report dated March 16, 2009. Such a "going concern" qualification may make it more difficult for us to raise funds when needed. The outcome of this uncertainty cannot be assured. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty. There can be no assurance that management will be successful in implementing its business plan or that the successful implementation of such business plan will actually improve Baynon's operating results. Results of Operations for the Three Months Ended March 31, 2009, compared to the Three Months Ended March 31, 2008. Baynon incurred a net loss of $5,910 in the current period versus a net loss of $8,649 in the prior period. General and administrative expenses were $5,575 compared to $8,380 in the prior period, a decrease of $2,805. General and administrative expenses were incurred primarily to enable Baynon to satisfy the requirements of a reporting company. During the current and prior period, Baynon did not record an income tax benefit due to the uncertainty associated with Baynon's ability to merge with an operating company, which might permit Baynon to avail itself of those advantages. Item 3. Quantitative and Qualitative Disclosures About Market Risk We do not consider the effects of interest rate movements to be a material risk to our financial condition. We do not hold any derivative instruments and do not engage in any hedging activities. 10 Item 4T. Controls and Procedures. During the ninethree months ended September 30, 2008,March 31, 2009, there were no changes in our internal controls over financial reporting (as defined in Rule 13a-15(f)13a- 15(f) and 15d-15(f) under the Exchange Act) that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.16 Evaluation of Disclosure Controls and Procedures Under the supervision and with the participation of our management, including our chief executive officer and chief financial officer, we conducted an evaluation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) and Rule 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended, as of September 30, 2008. Based on this evaluation, our chief executive officer and chief principal financial officers have concluded such controls and procedures to be effective as of September 30, 2008March 31, 2009 to ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Act is recorded, processed, summarized and reported, within the time periods specified in the Commission's rules and forms and to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Act is accumulated and communicated to the issuer's management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. 1711 PART II - OTHER INFORMATION Item 1. Legal Proceedings. None. Item 1A. Risk Factors. Not applicable for small reporting company. Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. None. Item 3. Defaults Upon Senior Securities. None. Item 4. Submission of Matters to a Vote of Security Holders. None. Item 5. Other Information. None. Item 6. Exhibits Exhibit 31 - Certifications pursuant to Section 302 of the Sarbanes-OxleySarbanes- Oxley Act of 2002 Exhibit 32 - Certifications pursuant to Section 906 of the Sarbanes-OxleySarbanes- Oxley Act of 2002 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized. Dated: November 19, 2008May 12, 2009 BAYNON INTERNATIONAL CORP. By: /s/ Pasquale Catizone - ---------------------------------------------------- Pasquale Catizone, Principal Executive Officer Please check page numbers before filing