Eastgate Biotech (ETBI) 10-Q 2010 Q3 Quarterly report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

[X]                 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the Quarter Ended September 30, 2010

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

SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number  000-52886

EASTGATE ACQUISITIONS CORPORATION

(Exact name of registrant as specified in its charter)

Nevada	87-0639378
(State or other jurisdiction of	(I.R.S. Employer Identification No.)
incorporation or organization)

2681 East Parleys Way, Suite 204, Salt Lake City, Utah 84109

(Address of principal executive offices)

(801) 322-3401

(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.Yes  [X]   No  [  ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).     Yes  [  ]    No  [   ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company

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

       Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  [X]   No  [  ]

APPLICABLE ONLY TO CORPORATE ISSUERS

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

Class	Outstanding as of November 15, 2010
Common Stock, 0.00001 par value	1,500,000

TABLE OF CONTENTS

Heading	Page
PART  I    —   FINANCIAL INFORMATION
Item 1.                Financial Statements	3
Item 2.                Management's Discussion and Analysis of Financial Condition and Results
of Operations	10
Item 3.                Quantitative and Qualitative Disclosures About Market Risk	11
Item 4(T).           Controls and Procedures	12
PART II   —   OTHER INFORMATION
Item 1.                Legal Proceedings	12
Item 1A.            Risk Factors	12
Item 2                Unregistered Sales of Equity Securities and Use of Proceeds	12
Item 3.               Defaults Upon Senior Securities	12
Item 4.              (Reserved and Removed)	12
Item 5.              Other Information	13
Item 6.             Exhibits	13
Signatures	13

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PART  I   —   FINANCIAL INFORMATION

Item 1.                      Financial Statements

The accompanying unaudited balance sheet of Eastgate Acquisitions Corporation at September 30, 2010, related unaudited statements of operations, statements of stockholders’ equity (deficit) and cash flows for the three and nine months ended September 30, 2010 and 2009 and the period from September 8, 1999 (date of inception) to September 30, 2010, have been prepared by management in conformity with United States generally accepted accounting principles.  In the opinion of management, all adjustments considered necessary for a fair presentation of the results of operations and financial position have been included and all such adjustments are of a normal recurring nature.  It is suggested that these financial statements be read in conjunction with the financial stat ements and notes thereto included in the Company’s December 31, 2009 audited financial statements.  Operating results for the period ended September 30, 2010, are not necessarily indicative of the results that can be expected for the fiscal year ending December 31, 2010 or any other subsequent period.

EASTGATE ACQUISITIONS CORPORATION

(A Development Stage Company)

FINANCIAL STATEMENTS

September 30, 2010

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EASTGATE ACQUISITIONS CORPORATION
(A Development Stage Company)
Balance Sheets
ASSETS
	September 30,				December 31,
	2010				2009
	(unaudited)
CURRENT ASSETS
Cash		$	-			$	-
Total Current Assets			-				-
TOTAL ASSETS		$	-			$	-
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES
Accounts payable		$	250			$	3,000
Accrued interest - related party			9,819				5,779
Payable - related party			54,228				38,135
Total Current Liabilities			64,297				46,914
STOCKHOLDERS' EQUITY (DEFICIT)
Common stock;20,000,000 shares authorized,
at $0.00001 par value, 1,500,000 shares issued
and outstanding			15				15
Additional paid-in capital			24,685				20,185
Deficit accumulated during the development stage			(88,997	)			(67,114	)
Total Stockholders' Equity (Deficit)			(64,297	)			(46,914	)
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT)		$	-			$	-
The accompanying notes are an integral part of these financial statements.

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EASTGATE ACQUISITIONS CORPORATION
(A Development Stage Company)
Statements of Operations
(unaudited)
													From
													Inception on
													September 8,
	For the Three Months Ended						For the Nine Months Ended						1999 Through
	September 30,						September 30,						September 30,
	2010			2009			2010			2009			2010
REVENUES	$	-		$	-		$	-		$	-		$	-
EXPENSES
General and
administrative		3,760			5,566			17,843			12,468			79,178
Total Expenses		3,760			5,566			17,843			12,468			79,178
LOSS FROM OPERATIONS		(3,760	)		(5,566	)		(17,843	)		(12,468	)		(79,178	)
OTHER EXPENSES
Interest expense		(1,286	)		(1,049	)		(4,040	)		(2,734	)		(9,819	)
Total Other Expenses		(1,286	)		(1,049	)		(4,040	)		(2,734	)		(9,819	)
LOSS BEFORE INCOME TAXES		(5,046	)		(6,615	)		(21,883	)		(15,202	)		(88,997	)
PROVISION FOR INCOME TAXES		-			-			-			-			-
NET LOSS	$	(5,046	)	$	(6,615	)	$	(21,883	)	$	(15,202	)	$	(88,997	)
BASIC LOSS PER SHARE	$	(0.00	)	$	(0.00	)	$	(0.01	)	$	(0.01	)
WEIGHTED AVERAGE
NUMBER OF COMMON SHARES
OUTSTANDING		1,500,000			1,500,000			1,500,000			1,500,000
The accompanying notes are an integral part of these financial statements

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EASTGATE ACQUISITIONS CORPORATION
(A Development Stage Company)
Statements of Stockholders' Equity (Deficit)
						Deficit
						Accumulated			Total
				Additional		During the			Stockholders'
	Common Stock			Paid-In		Development			Equity
	Shares	Amount		Capital		Stage			(Deficit)
Balance at inception on September 8, 1999	-	$	-	$	-	$	-		$	-
Common stock issued for cash on
September 8, 1999 at $0.0003 per share	1,500,000		15		485		-			500
Net loss from inception on September 8, 1999
through December 31, 1999	-		-		-		-			-
Balance, December 31, 1999	1,500,000		15		485		-			500
Net loss for the period from
January 1, 2000 through
December 31, 2004	-		-		-		(3,320	)		(3,320	)
Balance, December 31, 2004	1,500,000		15		485		(3,320	)		(2,820	)
Services contributed by shareholders	-		-		500		-			500
Net loss for the year ended
December 31, 2005	-		-		-		(600	)		(600	)
Balance, December 31, 2005	1,500,000		15		985		(3,920	)		(2,920	)
Services contributed by shareholders	-		-		1,700		-			1,700
Net loss for the year ended
December 31, 2006	-		-		-		(5,555	)		(5,555	)
Balance, December 31, 2006	1,500,000		15		2,685		(9,475	)		(6,775	)
Services contributed by shareholders	-		-		5,500		-			5,500
Net loss for the year ended
December 31, 2007	-		-		-		(9,681	)		(9,681	)
Balance December 31, 2007	1,500,000		15		8,185		(19,156	)		(10,956	)
Services contributed by shareholders	-		-		6,000		-			6,000
Net loss for the year ended
December 31, 2008	-		-		-		(24,309	)		(24,309	)
Balance, December 31, 2008	1,500,000		15		14,185		(43,465	)		(29,265	)
Services contributed by shareholders	-		-		6,000		-			6,000
Net loss for the year ended
December 31, 2009	-		-		-		(23,649	)		(23,649	)
Balance, December 31, 2009	1,500,000		15		20,185		(67,114	)		(46,914	)
Services contributed by shareholders (unaudited)	-		-		4,500		-			4,500
Net loss for the nine months ended
September 30, 2010 (unaudited)	-		-		-		(21,883	)		(21,883	)
Balance, September 30, 2010 (unaudited)	1,500,000	$	15	$	24,685	$	(88,997	)	$	(64,297	)
The accompanying notes are an integral part of these financial statements.

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EASTGATE ACQUISITIONS CORPORATION
(A Development Stage Company)
Statements of Cash Flows
(unaudited)
							From
							Inception on
							September 8,
	For the Nine Months Ended						1999 Through
	September 30,						September 30,
	2010			2009			2010
OPERATING ACTIVITIES
Net loss	$	(21,883	)	$	(15,202	)	$	(88,997	)
Adjustments to reconcile net loss to net cash
used by operating activities:
Services contributed by shareholders		4,500			4,500			24,200
Changes in operating assets and liabilities:
Change in accrued interest		4,040			2,734			9,819
Change in accounts payable		(2,750	)		(4,059	)		250
Net Cash Used in
Operating Activities		(16,093	)		(12,027	)		(54,728	)
INVESTING ACTIVITIES		-			-			-
FINANCING ACTIVITIES
Proceeds from notes payable to related parties		16,093			12,027			54,228
Common stock issued for cash		-			-			500
Net Cash Provided by
Financing Activities		16,093			12,027			54,728
NET DECREASE IN CASH		-			-			-
CASH AT BEGINNING OF PERIOD		-			-			-
CASH AT END OF PERIOD	$	-		$	-		$	-
SUPPLEMENTAL DISCLOSURES OF
CASH FLOW INFORMATION
CASH PAID FOR:
Interest	$	-		$	-		$	-
Income Taxes	$	-		$	-		$	-
The accompanying notes are an integral part of these financial statements.

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EASTGATE ACQUISITIONS CORPORATION

(A Development Stage Company)

Notes to Financial Statements

September 30, 2010 and December 31, 2009

NOTE 1 - CONDENSED FINANCIAL STATEMENTS

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

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted.  It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company's December 31, 2009 audited financial statements.  The results of operations for the periods ended September 30, 2010 and 2009 are not necessarily indicative of the operating results for the full years.

NOTE 2 - GOING CONCERN

The Company's financial statements are prepared using generally accepted accounting principles in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and allow it to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations.

In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management's plan is to obtain such resources for the Company by obtaining capital from management and significant shareholders sufficient to meet its minimal operating expenses and seeking equity and/or debt financing. However management cannot provide any assurances that the Company will be successful in accomplishing any of its plans.

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

NOTE 3 – SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

The preparation of financial statements in conformity with 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.

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EASTGATE ACQUISITIONS CORPORATION

(A Development Stage Company)

Notes to Financial Statements

September 30, 2010 and December 31, 2009

NOTE 3 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Recent Accounting Pronouncements

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

NOTE 4 - NOTES PAYABLE RELATED PARTY

The Company has recorded expenses paid on its behalf by shareholders as a related party payable. The note bears interest at 10 percent, is unsecured and is due and payable upon demand. The balance of this payable totaled $54,228 and $38,135 as at September 30, 2010 and December 31, 2009, respectively.  The balance in interest accrued on the note totaled $9,819 and $5,779 as at September 30, 2010 and December 31, 2009, respectively.

During the nine months ended September 30, 2010, Company shareholders performed services valued at $4,500 which have been recorded as a contribution to capital.

NOTE 5 – SUBSEQUENT EVENTS

 In accordance with SFAS 165 (ASC 855-10) Company management reviewed all material events through the date of this report and determined that there are no material subsequent events to report.

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

The following information should be read in conjunction with the financial statements and notes thereto appearing elsewhere in this Form 10-Q.

We are a development stage company with limited operations.  Expenses associated with preparing and filing this and other reports with the SEC, have been paid for by advances from stockholders.  We anticipate that the necessary funds to maintain future corporate viability will most likely be provided by officers, directors or principal stockholders.  Unless we are able to finalize an acquisition of or merger with an operating business or obtain significant outside financing, there is substantial doubt about our ability to continue as a going concern.

Results of Operations

During the three month period ended September 30, 2010 (“third quarter”), we incurred a net loss of $5,046 compared to a $6,615 loss during the three month period ended September 30, 2009.  The decreased loss for the third quarter of 2010 is attributed to the 32% decrease in general and administrative expenses from $5,566 for the third quarter of 2009 period to $3,760 for the 2010 period.  The decreased expenses during the third quarter of 2010 were due to a decrease in legal and accounting costs related to our requisite filings with the SEC.  The decrease in net loss was partially offset by the 23% increase in interest expense from $1,049 for the third quarter of 2009 to $1,286 for the third quarter of 2010, due to the increase in loans from stockh olders.

We also incurred a net loss of $21,883 for the nine month period ended September 30, 2010, compared to $15,202 for the 2009 period.  The increased net loss for the nine month period is attributed to the 43% increase in general and administrative expenses from $12,468 for the 2009 period to $17,843 for the 2010 period, due to increased legal and accounting costs.  We also realized a 48% increase in interest expense from $2,734 for the 2009 period to $4,040 for the 2010 period due to additional loans from stockholders.

In the opinion of management, inflation has not and will not have a material effect on our operations until such time as we successfully complete an acquisition or merger.  At that time, management will evaluate the possible effects of inflation related to our business and operations.

Liquidity and Capital Resources

During the first nine months of 2010, a principal stockholder paid our ongoing expenses.  At September 30, 2010 we had a note payable - related party of $54,228, compared to $38,135 at December 31, 2009.  The increase represents additional expenses paid by the stockholder during the first nine months of 2010.  We expect to continue to rely on the stockholder and/or others to pay our expenses until such time as we complete a merger with or acquisition of an existing, operating company.  There is no assurance that we will complete such a merger or acquisition or that the stockholder will continue indefinitely to pay our expenses.

At September 30, 2010, we had a stockholders’ deficit of $64,297 compared to a stockholders' deficit of $46,914 at December 31, 2009.  The increase in stockholders' deficit is attributed to ongoing general and administrative expenses, principally legal and accounting costs.  Also, during the nine months ended September 30, 2010, shareholders performed services valued at $4,500, which has been recorded as a contribution to capital.

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Plan of Operation

During the next 12 months, we intend to actively seek out and investigate possible business opportunities with the intent to acquire or merge with one or more business ventures.  We will not restrict our search to any specific business, industry, or geographical location and it may participate in a business venture of virtually any kind or nature.

Because we lack capital, it may become necessary for officers, directors or stockholders to advance funds and we intend to accrue expenses until such time as a successful business consolidation can be accomplished.  Management intends to hold expenses to a minimum and to obtain services on a contingency basis when possible.  Further, directors have agreed to defer any compensation until an acquisition or merger can be accomplished and we will strive to have the business opportunity provide their remuneration.  However, if we engage outside advisors or consultants in our search for business opportunities, it may be necessary to raise additional funds.  As of the date hereof, we have not made any arrangements or definitive agreements to use outside advi sors or consultants or to raise any capital.

If we find it necessary to raise capital, most likely the only method available would be the private sale of securities.  Because we are a development stage company, it is unlikely that we could make a public sale of securities or be able to borrow any significant sum from either a commercial or private lender.  There can be no assurance that we will be able to secure funding when and if needed, or that such funding, if available, can be obtained on acceptable terms.

We do not intend to use any employees in the immediate future, with the possible exception of part-time clerical assistance on an as-needed basis.  Outside advisors or consultants will be used only if they can be obtained for minimal cost or on a deferred payment basis.  Management is confident that it will be able to operate in this manner and to continue its search for business opportunities during the next twelve months.  Also, we do not anticipate making any significant capital expenditures until we can successfully complete an acquisition or merger.

Forward-Looking and Cautionary Statements

This report includes "forward-looking statements" that may relate to such matters as anticipated financial performance, future revenues or earnings, business prospects, projected ventures, new products and services, anticipated market performance and similar matters.

When used in this report, the words "may," "will," expect," anticipate," "continue," "estimate," "project," "intend," and similar expressions are intended to identify forward-looking statements regarding events, conditions, and financial trends that may affect our future plans of operations, business strategy, operating results, and financial position. We caution readers that a variety of factors could cause our actual results to differ materially from the anticipated results or other matters expressed in forward-looking statements. These risks and uncertainties, many of which are beyond our control, include:

● the sufficiency of existing capital resources and the ability to raise additional capital to fund cash requirements for future operations;

● uncertainties following any successful acquisition or merger related to the future rate of growth of the acquired business and acceptance of its products and/or services;

● volatility of the stock market, particularly within the technology sector; and

● general economic conditions.

 Although we believe the expectations reflected in these forward-looking statements are reasonable, such expectations cannot guarantee future results, levels of activity, performance or achievements.

Item 3.                   Quantitative and Qualitative Disclosures About Market Risk.

This item is not required for a smaller reporting company.

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Item 4(T).                         Controls and Procedures.

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

As of the end of the period covered by this quarterly report, we carried out an evaluation, under the supervision and with the participation of management, including our chief executive officer and principal accounting officer, of the effectiveness of the design and operation of our disclosure controls and procedures.  In designing and evaluating the disclosure controls and procedures, management recognizes that there are inherent limitations to the effectiveness of any system of disclosure controls and procedures, including the possibility of human error and the circumvention or overriding of the controls and procedures.  Accordingly, even effective disclosure controls and procedures can only provide reasonable assurance of achieving their desired control objectives.
60; Additionally, in evaluating and implementing possible controls and procedures, management is required to apply its reasonable judgment.  Based on the evaluation described above, our management, including our principal executive officer and principal accounting officer, concluded that, as of September 30, 2010, our disclosure controls and procedures were not effective due to a lack of adequate segregation of duties and the absence of an audit committee.

.

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

PART  II   —   OTHER INFORMATION

Item 1.                   Legal Proceedings

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

Item 1A.    ��                    Risk Factors

This item is not required for a smaller reporting company.

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

This Item is not applicable.

Item 3.                   Defaults Upon Senior Securities

This Item is not applicable.

Item 4.                   (Removed and Reserved)

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Item 5.                   Other Information

This Item is not applicable.

Item 6.                   Exhibits

Exhibit 31.1 Certification of C.E.O. and Principal Accounting Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

Exhibit 32.1 Certification of C.E.O. and Principal Accounting Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

SIGNATURES

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

	EASTGATE ACQUISITIONS CORPORATION
Date:  November 15, 2010	By:/S/   Geoff Williams
	Geoff Williams
	President, CEO and Director
	(Principal Accounting Officer)

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