Latitude 360 10-Q 2009 Q2 Quarterly report

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 quarterly period ended June 30, 2009

OR

[    ]TRANSITION REPORT UNDER SECTION 13 OF 15(d) OF THE EXCHANGE ACT OF 1934

From the transition period from ___________ to ____________.

Commission File Number 333-138111

KINGDOM KONCRETE, INC.

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

Nevada	20-5587756
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

4232 E. Interstate 30, Rockwall, Texas 75087

(Address of principal executive offices)

  (972) 771-4205

(Issuer's telephone number)

N/A

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

Indicate by check mark whether the registrant (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 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-accelerated filer, or a smaller reporting company. See the 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]

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

As of August 3, 2009, there were 5,441,900 shares of Common Stock of the issuer outstanding.

TABLE OF CONTENTS

	PART I FINANCIAL STATEMENTS
Item 1	Financial Statements	3
Item 2	Management’s Discussion and Analysis or Plan of Operation	13
	PART II OTHER INFORMATION
Item 1	Legal Proceedings	18
Item 2	Changes in Securities	18
Item 3	Default upon Senior Securities	18
Item 4	Submission of Matters to a Vote of Security Holders	18
Item 5	Other Information	18
Item 6	Exhibits and Reports on Form 8-K	18

2

KINGDOM KONCRETE, INC.

 Consolidated Balance Sheets

 As of June 30, 2009 and December 31, 2008

	As of June 30, 2009 (Unaudited)			As of December 31, 2008 (Audited)
Assets
Current Assets
Cash	$	83,586		$	125,926
Inventory		474			250
Other Current Assets		3,500			0
Total Current Assets		87,560			126,176
Fixed Assets:
Equipment		156,406			156,406
Leasehold Improvements		7,245			7,245
Office Equipment		675			675
Less: Accumulated Depreciation		(132,588	)		(123,521	)
Total Fixed Assets		31,738			40,805
Total Assets	$	119,298		$	166,981
Liabilities and Shareholders’ Equity
Current Liabilities
Accounts Payable	$	4,141		$	4,305
Accrued Expenses		1,911			1,570
Due to Shareholder		85,556			108,656
Note Payable Equipment		3,486			10,337
Total Current Liabilities		95,094			124,868
Total Liabilities		95,094			124,868
Shareholders’ Equity:
Preferred stock, $.001 par value, 20,000,000 shares   authorized, -0- shares issued and outstanding		0			0
Common stock, $.001 par value, 50,000,000 shares   authorized, 5,441,900 and 5,441,900 shares issued   and outstanding respectively		5,442			5,442
Additional Paid In Capital		240,362			240,362
Accumulated Deficit		(221,600	)		(203,691	)
Total Shareholders’ Equity		24,204			42,113
Total Liabilities and Shareholders’ Equity	$	119,298		$	166,981

See accompanying summary of accounting policies and notes to financial statements.

3

KINGDOM KONCRETE, INC.

Consolidated Statements of Operations

For the Three and Six Months Ended June 30, 2009 and 2008

(Unaudited)

	Three Months Ended						Six Months Ended
	June 30,  2009			June 30,  2008			June 30,  2009			June 30,  2008
Revenue
Revenue	$	34,185		$	34,137		$	64,116		$	69,338
Cost of Sales		15,029			17,614			29,227			38,493
Gross Profit		19,156			16,523			34,889			30,845
Operating Expenses:
Depreciation and Amortization		4,567			4,895			9,067			10,041
General and Administrative		20,750			20,249			43,588			44,612
Total Operating Expenses		25,317			25,144			52,655			54,653
Net Operating Loss		(6,161	)		(8,621	)		(17,766	)		(23,808	)
Other Income (Expense)
Interest Income		24			2,088			103			2,819
Interest Expense		(96	)		(321	)		(246	)		(692	)
Total Other Income (Expense)		(72	)		1,767			(143	)		2,127
Net Loss	$	(6,223	)	$	(6,854	)	$	(17,909	)	$	(21,681	)
Basic and Diluted Earnings (Loss) per share	$	0.00		$	0.00		$	0.00		$	0.00
Weighted Average Shares Outstanding:
Basic and Diluted		5,441,900			5,210,688			5,441,900			5,337,244

See accompanying summary of accounting policies and notes to financial statements.

4

KINGDOM KONCRETE, INC.
Consolidated Statement of Shareholders' Equity
For the Six months Ended June 30, 2009 (Unaudited) and the Year Ended December 31, 2008 (Audited)
					Additional
	Common				Paid-in		Accumulated
	Shares		Par Value		Capital		Deficit			Totals
January 1, 2008		5,199,500	$	5,199	$	119,105	$	(140,559	)	$	(16,255	)
Shares issued for Cash		220,400		221		110,279					110,500
Shares issued for Services		22,000		22		10,978					11,000
Net loss								(63,132	)		(63,132	)
December 31, 2008		5,441,900	$	5,442	$	240,362	$	(203,691	)		42,113
Net Loss								(17,909	)		(17,909	)
June 30, 2009		5,441,900	$	5,442	$	240,362	$	(221,600	)	$	24,204

See accompanying summary of accounting policies and notes to financial statements.

5

KINGDOM KONCRETE, INC.

Consolidated Statements of Cash Flows

For the Six Months Ended June 30, 2009 and 2008

(Unaudited)

	Six months Ended June 30, 2009			Six months Ended June 30, 2008
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(17,909	)	$	(21,681	)
Adjustments to reconcile net deficit to cash used  by operating activities:
Depreciation and amortization		9,067			10,040
Change in assets and liabilities:
Shares issued in exchange for services		0			0
Decrease in inventory		(224	)		(59	)
(Increase) in other assets		(3,500	)		(15,000	)
(Decrease) in accounts payable		(164	)		(6,430	)
Increase (Decrease) in accrued expenses		341			(140	)
CASH FLOWS (USED) IN OPERATING ACTIVITIES		(12,389	)		(33,270	)
CASH FLOWS USED IN INVESTING ACTIVITIES
Purchase of fixed assets		0			(15,000	)
CASH FLOWS USED IN INVESTING ACTIVITIES		0			(15,000	)
CASH FLOWS FROM FINANCING ACTIVITIES
Payments on notes		(6,851	)		(6,405	)
Proceeds from sale of common stock		0			108,501
Payments  on amounts due to shareholder		(23,100	)		(1,900	)
CASH FLOWS PROVIDED (USED) BY FINANCING ACTIVITIES		(29,951	)		100,196
NET INCREASE (DECREASE) IN CASH		(42,340	)		51,926
Cash, beginning of period		125,926			82,099
Cash, end of period	$	83,586		$	134,025
SUPPLEMENTAL CASH FLOW INFORMATION
Interest paid	$	246		$	692
Income taxes paid	$	0		$	0

See accompanying summary of accounting policies and notes to financial statements.

6

KINGDOM KONCRETE, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2009

NOTE 1 – NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES

Nature of Activities, History and Organization:

Kingdom Koncrete, Inc. (The “Company”) operates a ‘carry and go’ concrete business. The Company is located in Rockwall, Texas and was incorporated on August 22, 2006 under the laws of the State of Nevada.

Kingdom Koncrete Inc. is the parent company of Kingdom Concrete, Inc. (“Kingdom Texas”), a company incorporated under the laws of the State of Texas. Kingdom Texas was established in 2003 and for the past six years has been operating a single plant in Texas.

On August 22, 2006, Kingdom Koncrete, Inc. ("Koncrete Nevada"), a private holding company established under the laws of Nevada, was formed in order to acquire 100% of the outstanding common stock of Kingdom Texas.  On September 30, 2006, Koncrete Nevada issued 5,000,000 shares of common stock in exchange for a 100% equity interest in Kingdom Texas.  As a result of the share exchange, Kingdom Texas became the wholly owned subsidiary of Koncrete Nevada.  As a result, the shareholders of Kingdom Texas owned a majority of the voting stock of Koncrete Nevada.  The transaction was regarded as a reverse merger whereby Kingdom Texas was considered to be the accounting acquirer as its shareholders retained control of Koncrete Nevada after the exchange, although Koncrete Nevada is the legal parent company.  The share exchange was treated as a recapitalization of Koncrete Nevada.  As such, Kingdom Texas (and its historical financial statements) is the continuing entity for financial reporting purposes. The financial statements have been prepared as if Koncrete Nevada had always been the reporting company and, on the share exchange date, changed its name and reorganized its capital stock.

Unaudited Interim Financial Statements:

The accompanying unaudited interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States and applicable Securities and Exchange Commission (“SEC”) regulations for interim financial information. These financial statements are unaudited and, in the opinion of management, include all adjustments (consisting of normal recurring accruals) necessary to present fairly the balance sheets, statements of operations and statements of cash flows for the periods presented in accordance with accounting principles generally accepted in the United States. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to SEC rules and regulations. It is presumed that users of this interim financial information have read or have access to the audited financial statements and footnote disclosure for the preceding fiscal year contained in the Company’s Annual Report on Form 10-K. Operating results for the interim periods presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2009.

Significant Accounting Policies:

The Company’s management selects accounting principles generally accepted in the United States of America and adopts methods for their application.  The application of accounting principles requires the estimating, matching and timing of revenue and expense. It is also necessary for management to determine, measure and allocate resources and obligations within the financial process according to those principles.  The accounting policies used conform to generally accepted accounting principles which have been consistently applied in the preparation of these financial statements.

The financial statements and notes are representations of the Company’s management which is responsible for their integrity and objectivity. Management further acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control and preventing and detecting fraud.  The Company's system of internal  accounting control is designed to assure, among other items, that  1) recorded  transactions  are valid;  2) valid  transactions  are recorded;  and  3) transactions  are  recorded in the proper  period in a timely  manner to produce financial  statements which present fairly the financial  condition,  results of operations  and cash  flows of the  Company  for the  respective  periods  being presented.

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Management believes that all adjustments necessary for a fair statement of the results of the three and six months ended June 30, 2009 and 2008 have been made.

Basis of Presentation:

The Company prepares its financial statements on the accrual basis of accounting.  All intercompany balance and transactions are eliminated.  Investments in subsidiaries are reported using the equity method.

Reclassification:

Certain prior year amounts have been reclassified in the consolidated balance sheets, consolidated statements of operations and consolidated statements of cash flows to conform to current period presentation.  These reclassifications were not material to the consolidated financial statements and had no effect on net earnings reported for any period.

Use of Estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures.  Accordingly, actual results could differ from those estimates.

Recently Issued Accounting Pronouncements:

The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position or cash flow.

Cash and Cash Equivalents:

Cash and cash equivalents includes cash in banks with original maturities of six months or less and are stated at cost which approximates market value, which in the opinion of management, are subject to an insignificant risk of loss in value.

Inventory:

Inventory is comprised of gravel, the primary raw material used to make concrete.   The Company uses the weighted average method for inventory tracking and valuation and calculates inventory at each month end.  Inventory is stated at the lower of cost or market value.  

Revenue Recognition:

The Company recognizes revenue from the sale of products in accordance with the Securities and Exchange Commission Staff Accounting Bulletin No. 104, "Revenue Recognition in Financial Statements" ("SAB 104").  Revenue will be recognized only when all of the following criteria have been met.

1. Persuasive evidence of an arrangement exists;

2. Ownership and all risks of loss have been transferred to buyer, which is generally upon shipment;

3. The price is fixed and determinable; and

4. Collectability is reasonably assured.

Revenue is recorded net any of sales taxes charged to customers.

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Cost of Goods Sold:

Cost of goods sold consists primarily of gravel, which is used to make concrete.   Due to large space requirements, the Company orders gravel approximately every four to six weeks and expenses all purchases when made.   At each month end, the Company approximates the amount of gravel remaining and includes it as inventory based upon the weighted average method.

Income Taxes:

The Company has adopted SFAS No. 109, which requires the use of the liability method in the computation of income tax expense and the current and deferred income taxes payable.

Advertising:

Advertising costs are expensed as incurred.  These expenses were $992 and $1,379 for the three months ended June 30, 2009 and 2008 respectively and $3,214 and $2,565 for the six months ended June 30, 2009 and 2008, respectively.

Property and Equipment:

Property and equipment are stated at cost less accumulated depreciation.  Major renewals and improvements are capitalized; minor replacements, maintenance and repairs are charged to current operations.  Depreciation is computed by applying the straight-line method over the estimated useful lives which are generally five to seven years.

Earnings per Share:

Earnings per share (basic) is calculated by dividing the net income (loss) by the weighted average number of common shares outstanding for the period covered.  As the Company has no potentially dilutive securities, fully diluted earnings per share is identical to earnings per share (basic).

Comprehensive Income:

SFAS No. 130 “Reporting Comprehensive Income”, establishes standards for reporting and display of comprehensive income and its components in a full set of general purpose financial statements.  For the quarters ended June 30, 2009 and 2008, the Company had no items of other comprehensive income.  Therefore, the net loss equals the comprehensive loss for the periods then ended.

Fair Value of Financial Instruments:

In accordance with the reporting requirements of SFAS No. 157, Disclosures About Fair Value of Financial  Instruments,  the Company  calculates the fair value of its assets and  liabilities which qualify as financial  instruments  under this statement and includes this additional information in the notes to the financial statements  when the fair value is different  than the  carrying  value of those financial instruments.  The estimated fair value of the note payable approximate  its  carrying amounts  due  to  the  short  maturity  of  this instrument.  At June 30, 2009, the Company did not have any other financial instruments.

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NOTE 2 – FIXED ASSETS

Fixed assets at June 30, 2009 and December 31, 2008 are as follows:

		June 30, 2009			December 31, 2008
Equipment	$	156,406		$	156,406
Office Equipment		675			675
Leasehold Improvements		7,245			7,245
Less: Accumulated Depreciation		(132,588	)		(123,521	)
Total Fixed Assets	$	31,738		$	40,805

Depreciation expense for the three month periods ended June 30, 2009 and 2008 was $4,567 and $4,895 respectively, and for the six month periods ended June 30, 2009 and 2008 was $9,067 and $10,041 respectively.

NOTE 3 – NOTE PAYABLE

The Company acquired machinery and equipment through an SBA loan on September 12, 2003 in the amount of $70,000 with an interest rate of 6.59%.  The monthly payment is $1,183 including principal and interest for 71 months, due August 12, 2009.  Balances at June 30, 2009 are as follows:

	Balance remaining	Current portion	Long- Term
SBA loan	$3,486	$3,486	0

Interest expense was $96 and $321 for the three month periods ended June 30, 2009 and 2008 respectively, and $246 and $692 for the six month periods ended June 30, 2009 and 2008 respectively.

NOTE 4 – COMMON STOCK

The Company is authorized to issue 50,000,000 common shares at a par value of $0.001 per share.  These shares have full voting rights.

The Company issued 222,400 shares during 2008 at a price of $.50 per share.  The Company issued 22,000 common shares for consulting services that were rendered.     No shares have been issued in 2009.

At June 30, 2009 there were 5,441,900 common shares outstanding .  There are no stock option plans or outstanding warrants as June 30, 2009.

NOTE 5 – INCOME TAXES

The Company has adopted SFAS No. 109, which requires the use of the liability method in the computation of income tax expense and the current and deferred income taxes payable (deferred tax liability) or benefit (deferred tax asset).   Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized.

Deferred tax assets at June 30, 2009 and December 31, 2008 consisted of the following:

	2009			2008
Net Operating Loss Carryforward	$	55,400		$	50,923
Less: Valuation Allowance		(55,400	)		(50,923	)
Net Deferred Tax Asset	$	0		$	0

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The net deferred tax asset generated by the loss carryforward has been fully reserved. The cumulative net operating loss carry-forward is approximately $221,600 at June 30, 2009 and $203,691 at December 31, 2008, and will expire in the years 2025 through 2029.

The difference in the income tax benefit not shown in the consolidated statements of operations and the amount that would result if the U.S. Federal statutory rate of 25% were applied to pre-tax loss for 2009 and 2008 is attributable to the valuation allowance.

The realization of deferred tax benefits is contingent upon future earnings and is fully reserved at June 30, 2009 and December 31, 2008.

NOTE 6 – DUE TO SHAREHOLDER

The Company is obligated to a shareholder for funds advanced to the Company for start up expenses and working capital.  The advances are unsecured and are to be paid back as the Company has available funds to do so.  No interest rate or payback schedule has been established.  There has been no interest paid on these advances.

NOTE 7 – COMMITMENTS AND CONTINGENCIES

The Organization leases an office and operational facilities on a month to month basis. Rent expense was $3,450 and $3,150 for the three months ended June 30, 2009 and 2008 and was $6,700 and $6,300 for the six months ended June 30, 2009 and 2008.

NOTE 8 – FINANCIAL CONDITION AND GOING CONCERN

Kingdom Koncrete, Inc. has an accumulated deficit through June 30, 2009 totaling $221,600 and had working capital of ($7,534).  Because of this accumulated loss, Kingdom Koncrete, Inc. will require additional working capital to develop its business operations.  Kingdom Koncrete, Inc. intends to raise additional working capital either through private placements, public offerings, bank financing and/or shareholder funding.  There are no assurances that Kingdom Koncrete, Inc. will be able to either (1) achieve a level of revenues adequate to generate sufficient cash flow from operations; or (2) obtain additional financing through either private placement, public offerings, bank financing and/or shareholder funding necessary to support Kingdom Koncrete, Inc.'s working capital requirements.  To the extent that funds generated from any private placements, public offerings, bank financing and/or shareholder funding are insufficient, Kingdom Koncrete, Inc. will have to raise additional working capital.  No assurance can be given that additional financing will be available, or if available, will be on terms acceptable to Kingdom Koncrete, Inc..  If adequate working capital is not available Kingdom Koncrete, Inc. may not be able to continue its operations.

Management believes that the efforts it has made to promote its business will continue for the foreseeable future.  These conditions raise substantial doubt about Kingdom Koncrete, Inc.'s ability to continue as a going concern.  The financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might be necessary should Kingdom Koncrete, Inc. be unable to continue as a going concern.

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NOTE 9 – RECENT ACCOUNTING PRONOUNCEMENTS

In 2009, the FASB issued the following guidance; 

SFAS No. 166:  "Accounting for Transfers of Financial Assets—an amendment of FASB Statement No. 140"

SFAS No. 167:  "Accounting for Transfers of Financial Assets"

FSP No. FAS 107-1 and APB 28-1:   Interim Disclosures about Fair Value of Financial Instruments.

FSP No. FAS 115-2 and FAS 124-2:    Recognition and Presentation of Other-Than-Temporary Impairments.

FSP No. FAS 157-4:   Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly.

Management has reviewed these new standards and believe that they will have no material impact on the financial statements of the Company.

In May 2009, the FASB issued SFAS No. 165, “Subsequent Events,” which establishes general standards for accounting for and disclosure of events that occur after the balance sheet date but before the financial statements are issued or are available to be issued. The pronouncement requires the disclosure of the date through which an entity has evaluated subsequent events and the basis for that date, whether that date represents the date the financial statements were issued or were available to be issued. SFAS 165 is effective with interim and annual financial periods ending after June 15, 2009.   In conjunction with the preparation of these financial statements, an evaluation of subsequent events was performed through August 4, 2009, which is the date the financial statements were issued.    No reportable subsequent events were noted.

In July 2009, the FASB issued SFAS No. 168, “FASB Accounting Standards Codification” (“SFAS 168”), as the single source of authoritative nongovernmental U.S. generally accepted accounting principles (GAAP). The Codification is effective for interim and annual periods ending after September 15, 2009. All existing accounting standards are superseded as described in SFAS 168.   Therefore, beginning with the 10Q filing for September 30, 2009, all references made by the Company to GAAP in the consolidated financial statements will be the new codification numbering system.  The Codification does not change or alter existing GAAP and therefore, is not expected to have any impact on the Company’s consolidated financial statements.

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Item 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS

General

Kingdom Koncrete, Inc. specializes in providing pre-mixed concrete into our mobile mixer trailers which are then towed by one of our customers to a job site of their choosing.  Kingdom Concrete serves contractors and homeowners in the North Texas area with transit-mix trailers for small-pour concrete jobs.  This process saves time, money and labor on a homeowners or small business’ ready-mix cement project.  Large concrete companies generally don’t like small jobs as they are inherently unprofitable due to the small amount of concrete delivered. In addition, large concrete companies add a delivery fee for less than a full load and additional fees if the load cannot be unloaded immediately.  Hand-mixing seems less expensive until all the costs are added up. Sufficient ready-mix sacks for one yard of concrete costs more than $110.  Hand mixing is also back-breaking labor that results in an uneven distribution of moisture and aggregate.

We sell concrete on small, manageable, mobile mixing trailers to help complete a smaller project.  The result is less cost and a better product.  One trailer can mix from ¼ to 1¼ yards for patios, sidewalks, slabs, fence posts or other concrete work.  We sell to companies, municipalities, subcontractors and homeowners.  Our transit-mix trailers are a completely different concept.  In the past, with other types of pre-mixed concrete, the mix would settle out and begin to set as it was being delivered to the job site, giving a limited range and an inferior product that was difficult to work with.  Our trailers mix on the way to the job, just like the “big” trucks.  The concrete arrives ready for the job.

Our pricing is competitive with hardware store ready-mix sacks and much easier to manage physically.  Compared to cement truck prices for small-pours, we provide an economic benefit in that the customer pays only for what they use and need.  Pricing is structured on a residential, contractor, and multiple load basis. As of June 30, 2009, our general pricing structure was as follows:

	¼ yard	½ yard	¾ yard	1 yard	1 ¼ yard
4 bag	$72	$88	$105	$121	$137
5 bag	$73	$90	$110	$128	$146
6 bag	$74	$94	$115	$134	$154

'4 bag', '5 bag', '6 bag' refer to the proportion of cement in the mix.  The higher the bag count, the higher the PSI (strength) of the concrete.  We provide flexibility in that a customer can order the appropriate mix for the project, for example:

·      4 bag mix: Fence posts

·      5 bag mix: Sidewalks, slabs, or footers

·      6 bag mix: Driveways

As of June 30, 2009, we had 5 portable ready-mixed concrete trailers and one batch plant.  Our operations consist principally of formulating, preparing and delivering ready-mixed concrete to the trailers at our batch plant in Rockwall, Texas. Our marketing efforts primarily target general contractors, developers and home builders whose focus is on price, flexibility, and convenience.

Industry Overview

General

Ready-mixed concrete is a highly versatile construction material that results from combining coarse and fine aggregates, such as gravel, crushed stone and sand, with water, various admixtures and cement. Ready-mixed concrete can be manufactured in thousands of variations, which in each instance may reflect a specific design use. Manufacturers of ready-mixed concrete generally maintain only a few days’ inventory of raw materials and must coordinate their daily materials purchases with the time-sensitive delivery requirements of their customers.

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The quality of ready-mixed concrete is time-sensitive, as it becomes difficult to place within 90 minutes after mixing. Many ready-mixed concrete specifications do not allow for its placement beyond that time. Consequently, the market for a permanently installed ready-mixed concrete plant generally is limited to an area within a 25-mile radius of its location. Concrete manufacturers produce ready-mixed concrete in batches at their plants and use mixer and other trucks to distribute and place it at the job sites of their customers. These manufacturers generally do not provide paving or other finishing services, which construction contractors or subcontractors typically perform.

Concrete manufacturers generally obtain contracts through local sales and marketing efforts they direct at general contractors, developers and home builders. As a result, local relationships are very important.

Four major segments of the construction industry accounted for the following approximate percentages of the total volume of ready-mixed concrete produced in the United States in 2005:

Residential construction	34	%
Commercial and industrial construction	19	%
Street and highway construction and paving	18	%
Other public works and infrastructure construction	29	%

Historically, barriers to the start-up of a new ready-mixed concrete manufacturing operation were low. During the past several years, public concerns about dust, process water runoff, noise and heavy mixer and other truck traffic associated with the operation of ready-mixed concrete plants and their general appearance have made obtaining the permits and licenses required for new plants more difficult. Delays in the regulatory process, coupled with the substantial capital investment that start-up operations entail, have raised the barriers to entry for those operations.

Our Business Strategy

Our objectives are to become the leading provider of ready-mixed concrete in our primary market and to further expand the geographic scope of our business and, on a select basis, to integrate our operations vertically through acquisitions of aggregates supply sources that support our ready-mixed concrete operations. We plan to achieve this objective by continuing to implement our business strategy, which includes the primary elements we discuss below.

Operations

Our ready-mixed concrete plant consists of a fixed facilities that produces ready-mixed concrete in primarily wet batches. Our fixed-plant facilities produce ready-mixed concrete that is transported to a job sites by our mixer trailers

Our wet batch plant serves a local market that we expect will have consistently high demand as opposed to dry batch plants that will serve markets that we expect will have a less consistent demand. 

Employees

We currently employ one employee, the President.

RESULTS FOR THE QUARTER ENDED June 30, 2009

Our quarter ended on June 30, 2009.  Any reference to the end of the fiscal quarter refers to the end of the second quarter for the period discussed herein.

REVENUE.  Revenue for the three months ended June 30, 2009 was $34,185 compared to $34,137 for the three month period ended June 30, 2008.  Revenue remained flat due to an approximate 2-3% price increase (impact about $1,000) and the closing of a nearby competitor who has been referring business toward the Company, offset by fewer construction projects as a result of the current economic recession.  The competitor that closed is approximately 15 miles away so we have received referral business for customers that reside between the locations.  This referral business impacted revenue about $3,000 during the quarter.

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Revenue for the six months ended June 30, 2009, was $64,116 compared to $69,338 for the period ended June 30, 2008.  The decrease in revenue occurred during the first quarter and  is attributed to the overall decline in the economy, and the slow-down of construction related projects.  The second quarter rebounded (see above) and with referral business remaining steady coupled with the price increases we revenue to remain flat in the third quarter while the local economy continues to struggle with the nationwide recession.

GROSS PROFIT.  Gross profit for the three months ended June 30, 2009 was $19,156 compared to $16,523 for the three months ended June 30, 2008.  Margins improved in the quarter ended June 30, 2009 versus 2008 from 48% to 56% .  The improvement is due to the aforementioned price increase of $1,000 or about 1% in gross margin and a 7% decrease in the cost of cement or about $1,100 in margin equaling a total improvement of 7.6%.

Gross profit for the six months ended June 30, 2009 was $34,889 compared to $30,845 for the six month period ended June 30, 2008.  Margins improved in the quarter ended June 30, 2009 versus the same period in 2008 from 45% to 54%.  The improvement is attributable to the aforementioned price increase of $1,000 or about 0.5% in gross margin, the cement cost reduction of about $1,100 during Q2 or about  2.8% in gross margin and favorable product mix in the first quarter totaling a total improvement of 9% points.

OPERATING EXPENSES. Total operating expenses for the three months ended June 30, 2009 were $20,750 compared to $29,249 for the three months ended June 30, 2008. The increase is mainly attributed to professional fees and contract services.  The professional fees were up $6,000 due to year-end audit fees compared to 2008 and the contract fees were up $4,000 for business consulting.  Both these categories, on a year-to-date bases, when added together are flat year-over year as the timing of expense incurred by quarter no longer impacts the results.  The above expenses do not include depreciation which was $4,567 and $4,895 for the three months ended June 30, 2009 and 2008 respectively.

Total operating expenses for the six months ended June 30, 2009, were $43,588 compared to expenses for the six month period ended June 30, 2008 of $44,612.  The decrease is mainly attributed to a decrease in repairs and maintenance of $1,900 partially off-set by an increase in rent year-over-year of $400.  The above expenses do not include depreciation which was $9,067 and $10,041 for the six months ended June 30, 2009 and 2008, respectively.

NET INCOME (LOSS). Net loss for the three months June 30, 2009 was $6,233 compared to a net loss of $6,854 for the three month period ended June 30, 2008.  The increase in price ($1,000) and raw material cost reductions ($1,100) were more than offset by the increase in professional fees and contract services ($10,000).

Net loss for the six months ended June 30, 2009 was $17,909 compared to the six month period ended June 30, 2008 of $21,681.  The increase in price ($1,000), raw material cost reductions ($1,000) and the product mix improvement as discussed above wee the reasons for the improvement.  Operating expenses were slightly favorable ($1,000) due to reduced repairs and maintenance costs.

LIQUIDITY AND CAPITAL RESOURCES. Kingdom Koncrete filed on Form SB-1, a registration statement with the U.S. Securities & Exchange Commission in order to raise funds to develop their business. The registration statement became effective in July 2007 and Kingdom Koncrete has raised funds under that registration statement at $0.50 per share. As of June 30, 2009, Kingdom Koncrete has raised $210,950 by selling 421,900 shares.

In addition to the preceding, the Company plans for liquidity needs on a short term and long term basis as follows:

Short Term Liquidity:

The company relies on funding operations through operating cash flows.  And although operating cash flows (net loss less depreciation) were about -$8,800, approximately $23,000 of that loss was related to professional fees and contract services that were paid by the funds raised in the offering that became effective in July 2007.  Backing out this expense the company had positive modified cash flows of about $4,800 for the six months ended June 30, 2009. The President has advanced the Company $85,556 and $108,656 as of June 30, 2009 and 2008, respectively, for working capital.  No interest is paid on this advance.

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Long Term Liquidity:

The long term liquidity needs of the Company are projected to be met primarily through the cash flow provided by operations. As discussed above modified cash flow from operating activities for the six month period ended June 30, 2009 when backing out the professional fees and contract services was about $4,800.  The comparative cash flows from activities number for the six months ended June 30, 2008 was about $8,000.  With the price increase that was administered in 2009, the cement cost reduction and the referral business the Company believes that operating cash flow will be sufficient to support the business going-forward.

Capital Resources

In September 2003, the Company entered into a loan agreement that has a term of six years, ending August 2009.  The general purpose of the loan agreement was to purchase the concrete batch plant that the company owns and uses in daily operations.  As of June 30, 2009 the Company owes $3,486, under this loan agreement.

With the limited operating history of our Company we have noticed a slight seasonal trend with increased business in the spring / summer and a fall off during the colder part of the year.  Due to the recession, we expect do not expect 2009 to be a typical year.  At the beginning of the year we saw that people had less discretionary money to spend on projects but have begun to see an improvement in the latter part of Q2 2009.

We do not expect any significant change to our equity or debt structure and do not anticipate entering into any off-balance sheet arrangements.

Material Changes in Financial Condition

WORKING CAPITAL: Working Capital decreased by $8,842 to ($7,534).  This reduction is due to the decrease in cash of $38,800 since December 31, 2008.  This reduction in cash was partially off-set by repayments to the shareholder on his advances of $23,100 and debt payments of $6,800.  Accounts payable and accrued expenses remained flat.

SHAREHOLDERS’ EQUITY: Shareholders’ Equity decreased by $17,900 due to the net loss in the six months ended June 30, 2009.

Item 3: Quantitative and Qualitative Disclosures About Market Risk

Not applicable.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of June 30, 2009.  This evaluation was accomplished under the supervision and with the participation of our chief executive officer / principal executive officer, and chief financial officer / principal financial officer who concluded that our disclosure controls and procedures are not effective to ensure that all material information required to be filed in the quarterly Form 10-Q has been made known to them.

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For purposes of this section, the term disclosure controls and procedures means controls and other procedures of an issuer that are designed to ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Act (15 U.S.C. 78a et seg.) is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms.  Disclosure, controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by in our reports filed under the Securities Exchange Act of 1934, as amended (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.

Based upon an evaluation conducted for the period ended June 30, 2009, our Chief Executive and Chief Financial Officer as of June 30, 2009 and as of the date of this Report, has concluded that as of the end of the periods covered by this report, we have identified the following material weakness of our internal controls:

· Reliance upon independent financial reporting consultants for review of critical accounting areas and disclosures and material non-standard transaction.

· Lack of sufficient accounting staff which results in a lack of segregation of duties necessary for a good system of internal control.

In order to remedy our existing internal control deficiencies, as our finances allow, we will hire additional accounting staff.

Changes in Internal Controls over Financial Reporting

We have not yet made any changes in our internal controls over financial reporting that occurred during the period covered by this report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II

Items No. 1, 2, 3, 4, 5 - Not Applicable.

Item No. 6 - Exhibits and Reports on Form 8-K

(a)  None

(b)   Exhibits

Exhibit Number                                                      Name of Exhibit

31.1      Certification of Chief Executive Officer, pursuant to Rule 13a-14(a) of the Exchange Act, as enacted by Section 302 of the Sarbanes-Oxley Act of 2002.

31.2      Certification of Chief Financial Officer, pursuant to Rule 13a-14(a) of the Exchange Act, as enacted by Section 302 of the Sarbanes-Oxley Act of 2002.

32.1      Certification of Chief Executive Officer and Chief Financial Officer, pursuant to 18 United States Code Section 1350, as enacted by Section 906 of the Sarbanes-Oxley Act of 2002.

SIGNATURES

In accordance with 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.

Kingdom Koncrete, Inc.

By /s/ Edward Stevens

Edward Stevens, President, CFO

Date: August 3, 2009

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