Modular Medical (MODD) 10QSB 2008 Q2 Quarterly report (small business)

U. S. Securities and Exchange Commission

Washington, D.C. 20549

FORM 10-QSB

x QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2007

o TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

For the transition period from ____________ to____________

Commission File No. 000-49671

BEAR LAKE RECREATION, INC.

(Exact name of small business issuer as specified in its charter)

Nevada	87-0620495
(State or Other Jurisdiction of	(I.R.S. Employer I.D. No.)
incorporation or organization)

4685 S. Highland Drive, Suite #202

Salt Lake City, Utah 84117

(Address of Principal Executive Offices)

(801) 278-9424

(Issuer’s Telephone Number)

N/A

(Former name, former address and former fiscal year,

if changed since last report)

Check whether the Issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the Issuer was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

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

Yes x No o

1

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Not applicable.

Check whether the Issuer filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court. Yes o No o

APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the Issuer’s classes of common equity, as of the latest practicable date: February 08, 2008 - 1,249,816 shares of common stock.

Transitional Small Business Disclosure Format (Check one): Yes o No x

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.

FINANCIAL STATEMENTS

December 31, 2007

C O N T E N T S

Condensed Balance Sheets 3

Condensed Statements of Operations 4

Condensed Statements of Cash Flows 5

Notes to Unaudited Financial Statements 6

2

Bear Lake Recreation, Inc.

(A Development Stage Company)

Condensed Balance Sheets

December 31, 2007 and June 30, 2007

	12/31/2007			6/30/2007
	(Unaudited)			(Audited)
ASSETS
Total Assets	$	—		$	—
LIABILITIES AND STOCKHOLDERS' DEFICIT
Liabilities
Current Liabilities
Accounts Payable	$	—		$	—
Related Party Payable		42,502			37,651
Total Current Liabilities		42,502			37,651
Total Liabilities		42,502			37,651
Stockholders' Deficit
Preferred Stock -- 5,000,000 shares authorized having a
par value of $.001 per share; 0 shares issued
and outstanding		—			—
Capital Stock -- 50,000,000 shares authorized having a
par value of $.001 per share; 1,249,816 shares issued
and outstanding		1,250			1,250
Additional Paid-in Capital		82,828			82,828
Accumulated Deficit during the Development Stage		(126,580	)		(121,729	)
Total Stockholders' Deficit		(42,502	)		(37,651	)
Total Liabilities and Stockholders' Deficit	$	—		$	—

See accompanying notes to financial statements.

3

Bear Lake Recreation, Inc.

(A Development Stage Company)

Condensed Statements of Operations

For the Three and Six Months Ended December 31, 2007 and 2006, and

For the Period from Inception (October 22, 1998) through December 31, 2007

(Unaudited)

	For the			For the			For the			For the			From Inception
	Three Months			Three Months			Six Months			Six Months			(October 22,
	Ended			Ended			Ended			Ended			1998) Through
	December 31,			December 31,			December 31,			December 31,			December 31,
	2007			2006			2007			2006			2007
Revenues	$	—		$	—		$	—		$	—		$	1,396
Cost of Goods Sold		—			—			—			—			707
Gross Profit		—			—			—			—			689
General and Administrative Expenses		940			1,792			4,851			5,359			107,558
Net Income (Loss) from Operations		(940	)		(1,792	)		(4,851	)		(5,359	)		(106,869	)
Other Income (Expense)
Write off of inventory		—			—			—			—			(10,645	)
Loss on Sale of Assets		—			—			—			—			(9,066	)
Total Other Income (Expense)		—			—			—			—			(19,711	)
Net Loss Before Taxes		(940	)		(1,792	)		(4,851	)		(5,359	)		(126,580	)
Provision for Income Taxes		—			—			—			—			—
Net Loss	$	(940	)	$	(1,792	)	$	(4,851	)	$	(5,359	)	$	(126,580	)
Loss Per Share - Basic and Diluted	$	(0.01	)	$	(0.01	)	$	(0.01	)	$	(0.01	)	$	(0.17	)
Weighted Average Shares Outstanding -
Basic and Diluted		1,249,816			1,249,816			1,249,816			1,249,816			733,931

See accompanying notes to financial statements.

4

Bear Lake Recreation, Inc.

(A Development Stage Company)

Condensed Statements of Cash Flows

For the Six Months Ended December 31, 2007 and 2006, and

For the Period from Inception (October 22, 1998) through December 31, 2007

(Unaudited)

	For the			For the
	Six Months			Six Months			From Inception
	Ended			Ended			(October 22,
	December 31,			December 31,			1998) Through
	2007			2006			December 31, 2007
Cash Flows From Operating Activities
Net Income (Loss)	$	(4,851	)	$	(5,359	)	$	(126,580	)
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Depreciation and Amortization		—			—			4,799
Shares issued for services		—			—			3,000
Loss on disposal of equipment		—			—			9,066
Write off of related party receivable		—			—			1,000
Write off of Website development costs		—			—			8,877
Write off of inventory		—			—			10,645
Decrease / (Increase) - Inventory		—			—			(10,645	)
Increase / (Decrease) - Accounts Payable		—			680			—
Increase / (Decrease) - Related Party Payables		4,851			4,679			42,502
Net Cash From Operating Activities		—			—			(57,336	)
Cash Flows From Investing Activities
Purchase of property and equipment		—			—			(12,433	)
Website development costs		—			—			(10,309	)
Net Cash From Investing Activities		—			—			(22,742	)
Cash Flows from Financing Activities
Stock offering costs		—			—			(6,072	)
Related-party receivable		—			—			(1,000	)
Proceeds from the issuance of common stock		—			—			87,150
Net Cash From Financing Activities		—			—			80,078
Net Increase In Cash		—			—			—
Beginning Cash Balance		—			—			—
Ending Cash Balance	$	—		$	—		$	—
Supplemental Disclosure of Cash Flow Information:
Cash paid during the year for interest		—			—		$	—
Cash paid during the year for income taxes		—			—		$	—

See accompanying notes to financial statement.

5

Bear Lake Recreation, Inc.

(A Development Stage Company)

Condensed Notes to Financial Statements

December 31, 2007

(Unaudited)

NOTE 1 PRELIMINARY NOTE

The accompanying condensed financial statements have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. In the opinion of management, the interim financial statements reflect all adjustments, consisting of normal recurring accruals, which are necessary for a fair statement of the results for the period. Certain information and disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-KSB for the year ended June 30, 2007.

NOTE 2 LIQUIDITY/GOING CONCERN

The Company does not have significant assets, nor has it established operations and has accumulated losses since inception. These factors raise substantial doubt about the Company’s ability to continue as a going concern. It is the intent of the Company to seek a merger with an existing, well-capitalized operating company. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

NOTE 3 RELATED PARTY TRANSACTIONS

The Company has recorded a liability of $42,502 to a shareholder as of December 31, 2007. The unsecured loan bears no interest and is due on demand. For the three months ended December 31, 2007 and 2006, a shareholder paid $940 and $1,792 in expenses on behalf of the Company, respectively.

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Item 2. Management’s Discussion and Analysis or Plan of Operation.

Plan of Operation

Our Company’s plan of operation for the next 12 months is to: (i) consider guidelines of industries in which our Company may have an interest; (ii) adopt a business plan regarding engaging in business in any selected industry; and (iii) to commence such operations through funding and/or the acquisition of a “going concern” engaged in any industry selected.

Our Company’s only foreseeable cash requirements during the next 12 months will relate to maintaining our Company in good standing in the State of Nevada, as well as legal and accounting fees. Management does not anticipate that our Company will have to raise additional funds during the next 12 months.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Three Months Ended December 31, 2007 Compared to Three Months Ended December 31, 2006

The Company has had no operations during the quarterly period ended December 31, 2007, nor do we have operations as of the date of this filing. General and administrative expenses were $940 for the December 31, 2007, period compared to $1,792 for the December 31, 2006, period. General and administrative expenses for the three months ended December 31, 2007, were comprised mainly of accounting and transfer fees. The Company had no legal fees during the period, thus reducing the general and administrative expenses. We had a net loss of $940 for the December 31, 2007, period compared to a net loss of $1,792 for the December 31, 2006, period.

Six Months Ended December 31, 2007 Compared to Six Months Ended December 31, 2006

The Company has had no operations during the six month period ended December 31, 2007, nor do we have operations as of the date of this filing. General and administrative expenses were $4,851 for the December 31, 2007, period compared to $5,359 for the December 31, 2006, period. General and administrative expenses for the six months ended December 31, 2007, were comprised mainly of accounting, transfer and filing fees. The Company had no legal fees during the period, thus reducing the general and administrative expenses. We had net loss of $4,851 for the December 31, 2007, period compared to a net loss of $5,359 for the December 31, 2006, period.

Off-balance Sheet Arrangements

None; not applicable

7

Item 3(a)T. Controls and Procedures.

Management’s Annual Report on Internal Control Over Financial Reporting

As of the end of the period covered by this Quarterly Report, we carried out an evaluation, under the supervision and with the participation of our President and Secretary, of the effectiveness of our disclosure controls and procedures. Based on this evaluation, our President and Secretary concluded that information required to be disclosed is recorded, processed, summarized and reported within the specified periods and is accumulated and communicated to management, including our President and Secretary, to allow for timely decisions regarding required disclosure of material information required to be included in our periodic Securities and Exchange Commission reports. Our disclosure controls and procedures are designed to provide reasonable assurance of achieving their objectives and our President and Secretary have concluded that our disclosure controls and procedures are effective to a reasonable assurance level of achieving such objectives. However, it should be noted that the design of any system of controls is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions, regardless of how remote. In addition, we reviewed our internal controls over financial reporting, and there have been no changes in our internal controls or in other factors in the last fiscal quarter that has materially affected or is reasonably likely to materially affect our internal control over financial reporting.

Changes in Internal Control Over Financial Reporting

None; not applicable.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

None; not applicable.

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

There were no sales of equity securities during the period of this Quarterly Report.

Recent Sales of Unregistered Securities

None; not applicable.

Use of Proceeds of Registered Securities

None; not applicable.

Purchases of Equity Securities by Us and Affiliated Purchasers

None; not applicable.

Item 3. Defaults Upon Senior Securities.

None; not applicable.

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

None; not applicable.

8

Item 5. Other Information.

(a) None; not applicable.

(b) Nominating Committee

There are no established committees because there are currently no material operations.

Item 6.Exhibits.

(a) Exhibits and index of exhibits.

31.1 302 Certification of Wayne Bassham

31.2 302 Certification of Todd Albiston

32 906 Certification

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SIGNATURES

In accordance with the requirements of the Exchange Act, the Registrant has caused this Quarterly Report to be signed on its behalf by the undersigned, thereunto duly authorized.

BEAR LAKE RECREATION, INC.

Date:	02/11/08	By:	/s/Wayne Bassham
			Wayne Bassham
			President and Director
Date:	02/11/08	By:	/s/Todd Albiston
			Todd Albiston
			Secretary and Director

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