Multimedia Platforms (MMPWQ) 10-Q 2009 Q2 Quarterly report

U.S. SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

S	Quarterly Report under Section 13 or 15(d) of the Securities Exchange Act of 1934
	For the quarterly period ended June 30, 2009
£	Transition Report under Section 13 or 15(d) of the Exchange Act
	For the Transition Period from ________to __________

Commission File Number: 0-33933

PORFAVOR CORP.

(Exact Name of Registrant as Specified in its Charter)

NEVADA	88-0319470
(State of other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification Number)

2911 N. Lamb Blvd.
Las Vegas, NV	89115
(Address of principal executive offices)	(Zip Code)

Registrant's Phone: (702) 642-0988

Indicate by check mark whether the issuer (1) filed all reports required to be filed by Section13 or 15(d) of the Exchange Act of 1934 during the past 12 months (or 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.                               YesS  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  S

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

As of June 30, 2009, the issuer had 17,500,000 shares of common stock issued and outstanding.

	TABLE OF CONTENTS	Page
PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operation	13
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	18
Item 4.	Controls and Procedures	18
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	18
Item 1A.	Risk Factors	18
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	18
Item 3.	Defaults Upon Senior Securities	18
Item 4.	Submission of Matters to a Vote of Security Holders	18
Item 5.	Other Information	18
Item 6.	Exhibits	19

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ITEM 1. FINANCIAL STATEMENTS

PORFAVOR CORPORATION
BALANCE SHEET
AS OF DECEMBER 31, 2008 AND JUNE 30, 2009
			UNAUDITED		AUDITED
ASSETS			JUNE 30		DECEMBER 31
			2009		2008
Current Assets
	Business Checking	$	92	$	36,931
	Accounts Receivable		11,219		12,219
	Prepaid Insurance		-		5,709
	Inventory		43,515		29,658
Total Current Assets			54,826		84,517
Fixed Assets
	Office Equipment		9,109		9,109
	Office Furniture		4,950		4,950
	Shop Tools		12,140		12,140
	Vehicles		46,825		46,825
			73,024		73,024
	Accumulated Depreciation		(70,799)		(69,201)
Total Fixed Assets			2,225		3,823
Total Assets		$	57,051	$	88,340
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
	Accounts Payable	$	1,162	$	1,162
	Sales Tax Payable		7,389		18,812
Total Current Liabilities			8,551		19,974
Long Term Liabilities
	Loans From Shareholders		275,675		287,743
	Note Payable		123,019		100,819
Total Long Term Liabilities			398,694		388,562
Stockholders' Equity
	*Capital Stock 17,500,000 Issued		25,000		25,000
	Additional Paid In Capital		428,342		428,342
	Retained Earnings		(803,536)		(773,538)
Total Liabilities and Stockholders' Equity			(350,194)		(320,196)
Total Liabilities and Stockholders' Equity		$	57,051	$	88,340

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PORFAVOR CORPORATION
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2009, AND 2008
			June 30,		June 30,
Income			2009		2008
	Revenues	$	43,107	$	213,920
	Refunds		-		-
Total Income			43,107		213,920
Cost of Goods Sold
	Cost of Manufacturing		44,091		117,626
	Manufacturing Wages		-		39,100
Total Cost of Sales			44,091		156,726
Gross Margin			(984)		57,194
Operating Expenses
	Auto and Truck		3,670		4,739
	Advertising		-		-
	Bank Charges		677		-
	Postage		-		-
	Insurance		6,528		6,703
	Interest		196		794
	Licenses and Permits		-		650
	Meals and Entertainment		-		500
	Office Expenses		926		1,218
	Office Supplies		40		60
	Payroll Taxes		-		5,583
	Officers' Salaries		-		20,800
	Office Salaries		-		7,128
	Professional Fees		400		3,523
	Rent		10,000		17,086
	Telephone		1,014		3,478
	Utilities		-		683
	Dues and Subscriptions		200		4
	Travel		200		600
	Repairs and Maintenance		-		84
	Workmans Comp		-		793
	Sales Tax		4,680		13,435
	Depreciation		798		998
Total Operating Expenses			29,329		88,859
Net Income (Loss)		$	(30,313)	$	(31,665)
Net Income (Loss) per share		$	(0.00)	$	(0.00)
Weighted Average Number of Shares Outstanding			17,500,000		17,500,000

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PORFAVOR CORPORATION
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED JUNE 30, 2009, AND 2008
				June 30,		June 30,
CASH FLOWS FROM OPERATING ACTIVITIES				2009		2008
Net income			$	(30,313)	$	(31,665)
Adjustments to reconcile net income to net cash provided
	by operating activities
		Depreciation		798		998
		Increase (decrease) in:
		Accounts Receivable		400		14,832
		Escrow Deposit
		Increase (decrease) in:
		Prepaid Insurance		5,709		5,709
		Inventory		-		-
		Accounts Payable		-		-
		Sales Tax Payable		(5,573)		(7,067)
		Net Cash Provided (Used) By Operating Activities		(28,979)		(17,193)
CASH FLOWS FROM INVESTING ACTIVITIES
	Cash Used for Deposit			-		-
	Increase in Note Receivable			-		-
	Cash Used of Patent Acquisition			-		-
	Increase (decrease) in Marketable Securities			-		-
		Net Cash (Used) By Investing Activities		-		-
CASH FLOWS FROM FINANCING ACTIVITIES
	Note Payable			27,200		8,700
	Loans From Shareholders			(358)		6,981
	Capital Contributions			-		-
		Net Cash (Used) By Financing Activities		26,842		15,681
				(2,137)		(1,512)
CASH AT BEGINNING OF PERIOD				2,229		19,592
CASH AT END OF PERIOD			$	92	$	18,080
Cash Paid for Interest			$	196	$	794

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PORFAVOR CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2009

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A summary of significant accounting policies of Porfavor Corp is presented to assist in understanding the Company’s financial statements. The financial statements and notes are representations of the Company’s management who are responsible for their integrity and objectivity. These accounting policies conform to generally accepted accounting principles and have been consistently applied in the preparation of the accompanying financial statements.

Organization, Nature of Business and Trade Name

Jubilee Trading, Inc. was incorporated in the State of Nevada on April 3, 1996. On August 4, 1996 Alfonzo Hernandez, Sr. and 27 friends purchased Twenty-five Thousand (25,000) shares at no par value of the corporation (100%) for payment of Five Thousand Dollars ($5,000) in order to open and operate a Mexican Seafood Restaurant named “La Perla” in Los Angeles, California. The restaurant plans did not materialize and the corporation lay dormant.

On March 3, 2002, the name of the corporation was changed to Porfavor Corp and our articles of incorporation were changed to increase the Directors to three and to increase the authorized shares from Twenty-five Thousand (25,000) shares of common stock at no par value to Fifty Million (50,000,000) shares of common stock at $.001 par value.

A forward split of Thirty-five shares to One (35:1) was authorized resulting in Eight Hundred Seventy-five Thousand (875,000) shares of common stock issued to Thirty-one (31) shareholders. The Company planned to open and operate a Sports Bar and restaurant in Los Angeles, California. These plans also did not materialize and once again the company lay dormant.

On October 5, 2007, Porfavor Corp made an acquisition of CBA Builders, a Nevada Corp by exchanging Sixteen Million Six Hundred Twenty-five Thousand (16,625,000) shares of common stock (95%) of Porfavor Corp for Fifty Thousand (50,000) shares of commons stock (100%) of CBA Builders, DBA Trussco Sales issued and outstanding common stock.

CBA Builders was incorporated in the State of Nevada on October 10, 1987. CBA Builders was established as a construction company for the purposes of designing and manufacturing structural wood materials.

The financials include the accounts of Porfavor Corp and CBA Builders up until October 5, 2007 each of these companies were separate and distinct. On October 5, 2007, Porfavor Corp acquired CBA Builders as a wholly owned subsidiary. CBA Builders’ primary business is the designing and manufacturing of structural wood materials.

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PORFAVOR CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2009

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Organization, Nature of Business and Trade Name (continued)

Prior to October 5, 2007, CBA Builders had been a privately owned and operated business with well-established relationships in the Las Vegas Metropolitan area. It was incorporated in October 10, 1987

and founded by Boyd Applegate who at that time had several years experience in designing and manufacturing structural wood materials.

Basis of Presentation

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that effect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reported period. Actual results could differ from those estimates. 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) all valid transactions are recorded and (3) transactions are recorded in the 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.

Activity reflected in these consolidated financial statements is from the activity in acquired company CBA Builders.

Property and Equipment

Property and equipment are carried at cost. Expenditures for maintenance and repairs are charged against operations. Renewals and betterments that materially extend the life of the assets are capitalized. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in income for the period.

Depreciation is computed for financial statement purposes on a straight-line basis over estimated useful lives of the related assets. The estimated useful lives of depreciable assets are:

	Estimated
	Useful Lives
Office Equipment	5-10 years
Office Furniture	5-7 years
Shop Tools	5-7 years
Vehicles	5-10 years

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PORFAVOR CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2009

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Property and Equipment (continued)

For federal income tax purposes, depreciation is computed under the modified accelerated cost recovery system. For audit purposes, depreciation is computed under the straight-line method.

Cash and Cash Equivalents

For purposes of the statement of cash flows, the Company considers all short-term debt securities purchased with maturity of three months or less to be cash equivalents.

Revenue and Cost Recognition

The Company reports income and expenses on the accrual basis of accounting, whereby income is recorded when it is earned and expenses recorded when they are incurred. In this specific industry revenue from jobs is recorded upon completion of construction contract. Payment is due as specified in the contract. Job costs include all direct materials, and labor costs and those indirect costs related to

production. Selling, general and administrative costs are charged to expense as incurred.

Cost of Goods Sold

Job costs include all direct materials, and labor costs and those indirect costs related to production. Selling, general and administrative costs are charged to expense as incurred. No depreciation is allocated to cost of goods since the use of the fixed assets cannot be differentiated between office use and the construction process.

Advertising

Expenses related to specific jobs are allocated and classified as costs of goods sold. Expenses not related to specific jobs are recorded as general and administrative expenses.

Use of Estimates

The preparation of financial statements in accounting principles generally accepted in the United States of America 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. A change in managements’ estimates or assumptions could have a material impact on Porfavor Corp’s financial condition

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PORFAVOR CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2009

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Use of Estimates (continued)

and results of operations during the period in which such changes occurred. Actual results could differ from those estimates. Porfavor Corp’s financial statements reflect all adjustments that management believes are necessary for the fair presentation of their financial condition and results of operations for the periods presented.

Principles of Consolidation

These consolidated financial statements are presented based on the generally accepted accounting principle of acquisition. An acquisition of a company occurs when one enterprise pays cash, or issues stock or debt for all or part of the voting stock of another enterprise. The acquired enterprise remains intact as a separate legal entity. The parent subsidiary relationship is accounted for as a purchase, and it is referred to as an acquisition. Consolidated statements present the results of operations and the financial position of a parent company and its subsidiaries essentially as if the group were a single enterprise with one or more branches or divisions.

Common Stock

The Company has authorized common stock and has not authorized any other form of stock including preferred stock.

Inventory Valuation

We value our inventory at the lower of cost or market. Market is determined based on net realizable value. Cost is determined on a “first-in, first-out” basis, which approximates actual cost. We have no policy for a reserve for excess and obsolete inventory based on forecasted demand since inventory generally does not become obsolete. Inventory items are generally ordered on a just-in-time basis to minimize inventory due to limited stock space.

NOTE B – ACQUISITION

An acquisition of a company occurs when one enterprise pays cash, or issues stock or debt for all or part of the voting stock of another enterprise. The acquired enterprise remains intact as a separate legal entity. The parent-subsidiary relationship is accounted for as a purchase, and it is referred to as an acquisition.

CBA Builders originally authorized and issued Fifty Thousand (50,000) shares of common stock, which was issued to one (1) shareholder. In an acquisition the stock disclosures are presented by retroactively stating the equity accounts as of the earliest period presented to give effect to the new capital structure subsequent to the acquisition.

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PORFAVOR CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2009

NOTE B – ACQUISITION (continued)

Therefore, the equity section of the financial statements presented reports the total number of shares issued as of June  30, 2008 and June 30, 2009 as Seventeen Million Five Hundred Thousand (17,500,000) shares of common stock.

On October 9, 2007 for the purpose of the merger an additional Sixteen Million Six Hundred Twenty-five Thousand shares of common stock were authorized and issued. The merger agreement stipulated that Boyd Applegate would exchange Fifty Thousand (50,000) shares, representing One Hundred Percent (100%) of the issued and outstanding shares of CBA Builders common stock, including its processes and assets; for Sixteen Million Six Hundred Twenty-five Thousand (16,625,000) shares of stock of Porfavor

Corp. Upon the finalization of this transaction per the agreement, CBA Builders would become a wholly owned subsidiary of Porfavor Corp.

Per the acquisition agreement, on October 9, 2007, CBA Builders transferred Fifty Thousand (50,000) shares of the stock representing One Hundred Percent (100%) of the authorized and outstanding shares of CBA Builders. Porfavor Corp issued Sixteen Million Six Hundred Twenty-Five Thousand Five Hundred (16,625,500) shares of common stock representing Eighty Percent (95%) of the authorized issued and

outstanding shares of Porfavor Corp in exchange for the Fifty Thousand (50,000) shares of common stock of CBA Builders.

As part of the acquisition CBA Builders exchanged assets valued at $124,487 for Sixteen Million Six Hundred Twenty-Five Thousand Five Hundred (16,625,500) shares of Porfavor Corp at a value of .007488 per share. At the time of the acquisition,

Porfavor Corp, had no assets; therefore the Eight Hundred Seventy Four Thousand Five Hundred (874,500) shares of Porfavor Corp still issued and outstanding had no value at the time of the trade. The resulting increase in shares caused a decrease in the value of the newly issued Sixteen Million Six Hundred Twenty-Five Thousand Five Hundred (16,625,500) shares to .007114 cents per share. This resulted in a dilution of .000374 cents per share equal to a .04995 percent dilution.

NOTE C – LIQUIDITY AND RESOURCES

The Company currently has a payable on the books for funds borrowed from the majority shareholder. There have been no formal loan terms agreed upon by the Board. The loan is listed as a long-term liability due to the fact that the loan cannot be repaid within a twelve-month period.

The ability of the Company to satisfy its obligations depends in part upon its ability to maintain a profitable level of operations, securing short and long-term financing to continue development of its services, and the growth of its customer base. There is no assurance that short and long-term financing can be obtained to fulfill the Company’s capital needs.

10

PORFAVOR CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2009

NOTE D – PROPERTY AND EQUIPMENT

The carrying values of fixed assets as of June 30, 2009, and December 31, 2008 were as follows:

		2008		2009
Office Equipment	$	9,109	$	9,109
Office Furniture		4,950		4,950
Shop Tools		12,140		12,140
Vehicles		46,825		46,825
		73,024		73,024
Accumulated Depreciation		(69,201)		(70,799)
	$	3,823	$	2,225

NOTE E – INCOME TAXES

The Company (Porfavor Corp) filed organization paperwork with the State of Nevada. At the time of filing Porfavor Corp elected and filed to be a C Corporation.

The acquired company, CBA Builders filed organization paperwork with the State of Nevada. At the time of filing CBA Builders elected and filed to be Sub Chapter S Corporations. This election allows all income taxes to be the responsibility of the Shareholders of Corporation not the corporation. Therefore, no provision for income tax was made prior to the acquisition.

The Company accounts for income taxes under Statement of Financial Accounting Standards No. 109 “Accounting for Income Taxes” (“SFAS 109”). Under the asset and liability method of SFAS 109, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax asset and liabilities are measured using enacted tax rates expected to apply to taxable

income in the years in which those temporary differences are expected to be recovered or settled. Under SFAS 109, the effect on deferred tax asset and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. Deferred taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be

realized.

Due to the inherent uncertainty in forecasts and future events and operating results, the Company has provided for a valuation allowance in an amount equal to gross deferred tax assets resulting in no net deferred tax assets or liabilities for the periods audited.

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PORFAVOR CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2009

NOTE F – LINE OF CREDIT

The majority shareholder, Boyd Applegate, has been approved for a $80,000 revolving line of credit in connection with the existing bank accounts for CBA Builders. The credit limit of the line is $80,000 with a variable annual percentage rate of 4.75% above prime. The revolving line of credit has been used exclusively for the purpose of financing the cash flow needs of the Company. Therefore, the Board has agreed that the Company should record the debt on the books and provide for the payments to be met through Company funds. Monthly payments are required if there is an outstanding balance for a minimum of the finance charges.

NOTE G – GOING CONCERN

Under the going concern assumption, an entity is ordinarily viewed as continuing in business for the foreseeable future with neither the intention nor the necessity of liquidation, ceasing trading, or seeking protection from creditors pursuant to laws or regulations. Accordingly, assets and liabilities are recorded on the basis that the entity will be able to realize its assets and discharge its liabilities in the normal course of business.

Management expects to face strong competition from well-established companies and small independent companies. Accordingly, the Company expects to compete on the basis of price (or the value to the customer of the services performed) and, on the basis of their established reputation among customers as a quality provider of management services and our locality of operation. Without a strong performance in the growth process Management expects to be less able than our larger competitors to handle generally increasing costs and expenses of doing business. Additionally, it is expected that there may be significant technological advances in the future and Management may not have adequate resources without the strong public response anticipated to enable the Company to take advantage of such advances.

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ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

FORWARD-LOOKING STATEMENTS

This Form 10-Q includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included or incorporated by reference in this Form 10-Q which address activities, events or developments which the Company expects or anticipates will or may occur in the future, including such things as future capital expenditures (including the amount and nature thereof); finding suitable merger or acquisition candidates; expansion and growth of the Company's business and operations; and other such matters are forward-looking statements.  These statements are based on certain assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate under the circumstances. Ho wever, whether actual results or developments will conform with the Company's expectations and predictions is subject to a number of risks and uncertainties, including general economic, market and business conditions; the business opportunities (or lack thereof) that may be presented to and pursued by the Company; changes in laws or regulation; and other factors, most of which are beyond the control of the Company.

These forward-looking statements can be identified by the use of predictive, future-tense or forward-looking terminology, such as "believes," "anticipates," "expects," "estimates," "plans," "may," "will," or similar terms. These statements appear in a number of places in this Filing and include statements regarding the intent, belief or current expectations of the Company, and its directors or its officers with respect to, among other things: (i) trends affecting the Company's financial condition or results of operations for its limited history; (ii) the Company's business and growth strategies; and, (iii) the Company's financing plans. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve significant risks and uncertainties, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors . Such factors that could adversely affect actual results and performance include, but are not limited to, the Company's limited operating history, potential fluctuations in quarterly operating results and expenses, government regulation, technological change and competition.

Consequently, all of the forward-looking statements made in this Form 10-Q are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by the Company will be realized or, even if substantially realized, that they will have the expected consequence to or effects on the Company or its business or operations. The Company assumes no obligations to update any such forward-looking statements.

GENERAL DESCRIPTION OF BUSINESS

Our acquisition, CBA Builders, DBA Trussco Sales is commonly known in the local market as Trussco. We are first and foremost a broker of structural wood materials. These materials include open web plated trusses, metal web-wood chord trusses, glue laminated beams, I joists, & occasionally steel bar joists. We also sell much of the associated framing anchors and hangers. In recent years we have built a substantial portion of the open web plated trusses that we sell. Our work begins when a customer delivers a set of blueprints for a given project. Projects may range in size from a 2or 3 trusses for a home addition valued at $300 to something such as Vantage One Condominium project where we provided products valued at more than $900,000.  From blue prints, we determine their needs in terms of products that we sell and quote to them a price for all such materials. Probably 60% of our work is awarded on a competitive bid basis with the balance being of a negotiated nature. Once we a re awarded the contract for a project, we then provide our customer all necessary component designs and replacement plans to be approved by the structural engineer and any permitting authority. Once our customer has completed the permitting process and gives his approval to fabricate, we then place orders with our suppliers for all materials that are needed. Nearly all of our products are delivered directly from the point of manufacture to our customer’s job site. If after delivery, problems or mistakes become apparent we will send a repair crew to make any needed modifications to our product. If it is determined that the problem stems from our own mistake there is no cost to the customer for the repairs. If problems arise because of faulty or inaccurate plans we will then invoice the customer for the cost of any alterations or repairs.

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The vast majority of our products are sold on a wholesale basis to framing contractors and occasionally to a general contractor. We do however provide some materials to an owner builder or to an individual doing a home remodel.

We estimate that over 95% of our sales are in Clark County Nevada, including Mesquite and Searchlight. We do provide some product to outlying areas such as Pahrump or Alamo Nevada. Occasionally we will sell products to Northern Nevada or Southern Utah.

Traditionally, a commercial framer would buy glu-lam beams from one source, plated trusses from another source and I joists from yet another source. No other supplier in the area provides the variety of structural floor and roof components that we do. Often a plated truss supplier will take in a set of plans that indicates, for example I joists as the structural floor component. Rather than bidding I joists, he will try to convert the structural components to plated trusses. This process can be time consuming and expensive for all involved and causes considerable consternation among those who now have to try to accommodate the truss supplier. We are much more likely to simply bid what is required in the plans and specifications because we sell them all.

We began doing business as Trussco in August of 1992, selling only plated wood trusses. In April of 1993 we opened a small office at 3432 North Bruce Street Suite #7 in North Las Vegas, Nevada. We soon grew large enough that we needed a repair crew. In order to accommodate this need we began to fabricate only very small jobs so that we had men available when we needed a repair crew. Beginning in 1995 we began to import all of our plated trusses from Canada. This was made possible for two reasons. All of the trusses built in Las Vegas relied on raw lumber from Canada. At that time there was in effect a 15% tariff on raw lumber but no tariff on a finished product such as trusses. During that time the Canadian dollar was worth about $.67 US. These two factors combined to give us a very good competitive edge. Over recent years both of these advantages have been eroded to nothing and we are currently building nearly all that we sell. We found that we are achieving higher net margins by manuf acturing our own.

Over the past 3 years, we have seen I joist and glu-lam sales gain an ever increasing percentage of our sales. We began selling I joists in 1996. Since that time we have sold from a series of different suppliers. The most common reason for us to change from one supplier to another was because our supplier was bought out by one of our larger competitors.  We began selling glue-laminated beams from our current supplier in 1998 and have used them continuously since.

In recent months of very tight market conditions we have learned that we can reduce our markup substantially and still earn reasonable profit margins. Through this effort we expect to increase our market share considerably. The first and greatest physical change in our immediate future will be to increase in manufacturing capacity for the plated truss sector. This will be accomplished mostly through improved equipment and material handling systems. It is probable that yet another relocation will be required to accommodate continued growth. Our next focus will be in solidifying our position in the I joist market through either manufacturing of our own or preferably a purchase of a current supplier. Though this will not be in the immediate future we anticipate that it will be within the next 2 to 3 years. We have for many years attempted to sell steel bar joists. We have sold a limited number of jobs but have been mostly frustrated that all manufacturers currently selling into this market hire a company rep for the area effectively negating any opportunity for us to sell their product. We are currently developing plans to build our own bar  joist product. This effort is somewhat stymied by the current market conditions in the steel industry. With supplies being low and prices very high, our entry into this market will be postponed until that market stabilizes.

Our customer base includes a majority of the commercial framers in the Las Vegas area. Some buy every job from Trussco and others buy occasionally. We also sell to most of the remodeling and fire repair contractors as well as some residential developers who were deemed too small to interest the large residential truss suppliers.

We do sell some government projects but again these are sold to either a framer or a general contractor so that we have no dealings with government agency.

We sell some in almost every segment of the market. Our emphasis is in the commercial and light industrial market. However, we also sell a relatively large percentage of the remodel and fire damage market in the Las Vegas area.

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After several years in the market we determined that it is nearly impossible to survive trying to bid to everyone. If all of our work is derived from the competitive bid process it is not possible to maintain sufficient margins. In observing other successful businesses in this market and others it seems clear that the toughest stage in the development of a company is between the Ma and Pa shop stage and the corporate stage. That is where we are at this moment. One of the most common and successful strategies at this stage is to become partnered (very loosely and not at all legally) with likeminded customers who are maybe too small to get good service from the more established companies yet are aggressive and growth minded. In our case we will partner with 2 or 3 framers who in turn form the same type of “partnership” with 2 or 3 general contractors, who partner with 2 or 3 developers. In this arrangement, we often have input into the budget so we do n ot have to bid against every supplier in town. The downside to this is that if we become too attached, then we become wholly dependent upon those customers. As their business goes, so does your business. We have tried to mitigate that problem by continually bidding much other work but giving preference and occasionally price advantages to our preferred customers.

We currently employ 6 men in the shop and 4 administrative employees. They are led by a man with many years experience in the framing and general construction area. He has great problem solving abilities. Often on a job site what appears first as a “truss problem” can be traced to another cause or solved by simple and minor framing adjustments. Our warehouseman has considerable computer skills and is very good at paperwork flow and maintenance. Our lead man on the fabrication table is well organized and efficient. Our laborers are young and eager to learn. In the office our office manager has been with us for over 13 years and throughout that time has always been very loyal and trustworthy. We have one fulltime design technician who we have trained from the beginning. She now has 2 years experience and has become quite efficient and eager to help. We also have 1 part time design technician who has many years experience and a structural engineer who works on an in call basis.

Our equipment consists of 2 pull saws, 2 c-clamp presses, a wooden assembly table, a caterpillar forklift and a freightliner delivery truck. Of course there are numerous nail guns, skill saws, compressors and the like.

Our greatest strength is in the relationship that we have built over several years with a number and variety of customers. We believe that many of our customers have stayed with us because they know that they may not get the lowest price but we will be competitive and fair in all of our dealings. Every phase of the construction industry is laden with unforeseen occurrences and problems. We go to great efforts to minimize those problems regardless of their source. The last paragraph of our proposals reads in part “our desire is the most expeditious and successful competition of your project.” We work hard toward that goal. Another great strength is in the variety of products that we sell. Again no other competitor in the area offers the line of products that we do.

Our customers buying patterns generally follow the ebb and flow of the construction industry in this market. However, several of them are young and aggressive which allows them to maintain higher activity levels during a general market slow down. It seems that in the most recent slowdown, we and many of our customers had to some degree developed a false sense of security. This false sense stems from the fact that commercial construction has not slowed but probably we did not take into account the trickledown effect that could come from the housing industry, who finding themselves virtually out of work, have crowded into a much smaller commercial market. This has made our market very competitive. Though our response had been slower that probably it should have been, we have responded and are seeing good results.

It is difficult to rank us simply because we are not a lumber yard to be ranked with them nor are we simply a truss fabricator to be ranked with them. In what we do, we are the largest in the area. In terms of ranking us with truss fabricators or lumber yards we would in either case certainly rank in the lower 20% in terms of dollar volume.

We have no announcements regarding new products and services.

Our raw materials are obtained from lumber companies and metal fabricators both of which we are not dependent upon. We currently have a customer base of 15 buyers whom we have maintained for at least 4 years.

There are no trademarks, patents, franchises, concessions, royalty or labor contracts. We comply with state and local licensing requirements. There are no approvals needed from government other than building code compliance

We do not anticipate any probable government regulations in our business

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We have been developing plans to build our own steel bar joist product. Because of current market conditions in the steel industry; low supplies and high pricing; we have postponed our entry into this market until that market stabilizes.

There are no approvals needed from government other than building code compliance. We do not anticipate any probable government regulations in our business

As we have been engaged in this industry and in this market since 1992. As mentioned earlier our office manager has been us for 13 years. Our foreman has 20 years experience in the industry. Through attrition and culling we have developed an excellent group of employees willing to do whatever it takes to succeed.

We believe that our past success and future stems chiefly from three entrenched characteristics. First, aggressiveness and a willingness to adapt and overcome. Over the years we have overcome numerous market-changes, slowdowns, and adaption’s. However, it is now our expectation to become more proactive in these market changes. Second, tenacity and a willing to take the bad times with the good. Third and probably most important is just an old fashioned “have to” mentality.

We comply with the Clark County Nevada environmental laws regarding “dust permit”.

We have ten full time employees consisting of four administrative and six fabrication workers.

MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS

Over the next twelve months, we expect to face strong competition from well-established companies and small independent operations. Accordingly, we expect to compete on the basis of price (or the value to the customer of the service performed) and, on the basis of our established reputation among customers as a quality provider and our locality of operation. Without a strong performance in the growth process, we expect to be less able than our larger competitors to handle generally increasing costs and expenses of doing business. Additionally, it is expected that there may be significant technological advances in the future and we may not have adequate resources without a strong public response anticipated to enable us to take advantage of such advances.

We have been under financial pressure from 2005 to the present. We have experienced a decrease in business due to the overall slowdown in the construction industry caused by the financial crises of the housing industry. This could continue through 2009 and possibly 2010 as predicted by the real estate industry. It is anticipated that a recovery will occur during 2010.

Our Las Vegas construction market is not as seriously affected as the rest of the country, because over 30 billion dollars is committed to the expansion of Las Vegas, Casino/Hotel and commercial construction. We have now and believe in the immediate future, that we can obtain a portion of that business that will enable us to operate through the real estate crisis.

We believe we can sustain our plan of operation for the next twelve months with cash flow from our current clients. Given that this client base has been slightly expanding, we expect that this expansion will provide additional cash flow.

Additionally, we intend to actively search for a suitable business from among our smaller competitors as an acquisition. We anticipate the terms of any acquisitions will require a combination of cash and stock.

Being a public company will position us with the ability to raise capital and issue shares for acquisitions and growth opportunities and as a way to increase cash flow without increasing debt.

We are negotiating the increase of present bank line of credit. In addition, we expect we can obtain personal and business loans should a shortfall occur within the next 12 months.

Our key success and critical factors for the next year are in order of importance;

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1.  Continue our expansion-marketing plan.

2.  Increase our customer base.

3.  Use financial control and cash flow planning.

4.  Use the advantage of economies of scale.

We expect some changes in our operation over the next 12 months. From a purely operational point of view, we should have no problem in satisfying our cash need indefinitely. However, in our efforts to purchase the facility that we are currently occupying and expand our operation we will have cash needs. The largest single issue we believe is in raising funds for a 20% down payment on the property. Although, it will place us in a very tight cash flow situation, it may still be possible to finance the down payment from our own operation.

We are currently engaged in an effort to design wood purlin trusses that would allow us to compete directly against steel bar joists. This involves creating an attachment mechanism at each end of the truss that can be welded to steel beams or girders. Our engineer has developed a preliminary design which we will begin testing soon. Success in this will result in increased sales.

We expect to purchase more efficient plant equipment and delivery equipment. In doing this, we don’t expect that there will be a significant increase in the number of employees that we will have.

There are no causes for any material changes at this time.

There are no seasonal aspects that could have a negative material effect on our financial condition or results of operation.

The major trend in our industry in this market is the continuous growth of the numbers of tourists’ conventioneers and new residents (approximately 6000 per month).

RESULTS OF OPERATIONS

The Company anticipates that it will continue to incur net losses for the foreseeable future. The Company incurred a net income of approximately $(30,313) for the six months ended June 30, 2009, compared with a net loss of $ (31,665)   for the six months ended June 30, 2008.

LIQUIDITY AND CAPITAL RESOURCES

The Company had assets of $57,051 for the quarter ended June 30, 2009 compared with $95,212 for the quarter ended June 30, 2008.   The Company had liabilities of $407,245 for the quarter ended June 30, 2009 compared to $293,822 for the period ended June 30, 2008.

CRITICAL ACCOUNTING POLICIES

In Financial Reporting release No. 60, "CAUTIONARY ADVICE REGARDING DISCLOSURE ABOUT CRITICAL ACCOUNTING POLICIES" ("FRR 60"), the Securities and Exchange Commission suggested that companies provide additional disclosure and commentary on their most critical accounting policies. In FRR 60, the SEC defined the most critical accounting policies as the ones that are most important to the portrayal of a company's financial condition and operating results, and require management to make its most difficult and subjective judgments, often as a result of the need to make estimates of matters that are inherently uncertain.  Based on this definition, our most critical accounting policies include: non-cash compensation valuation that affects the total expenses reported in the current period and the valuation of shares and underlying mineral rights acquired with shares. The methods, estimates and judgments we use in applying these most critical accounting policies have a si gnificant impact on the results we report in our financial statements.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Company is not exposed to market risk related to interest rates or foreign currencies.

CONTROLS AND PROCEDURES

ITEM 4.  CONTROLS AND PROCEDURES

The Company carried out an evaluation of the effectiveness of the design and operation of its disclosure controls and procedures pursuant to Exchange Act Rule 13a-14. This evaluation was done under the supervision and with the participation of the Company's President and Chief Financial Officer. Based upon that evaluation, they concluded that on June 30, 2009, the Company's disclosure controls and procedures are effective in gathering, analyzing and disclosing information needed to satisfy the Company's disclosure obligations under the Exchange Act.

Changes in Internal Control Over Financial Reporting

There were no changes in the Company’s internal control over financial reporting identified in connection with the foregoing evaluation that occurred during the second quarter of 2009 that have materially affected, or are reasonably likely to materially affect the Company’s internal control over financial reporting.

PART II OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

The Company is not a party to any legal proceedings.

ITEM 1A. RISK FACTORS

There are no material changes in the risk factors set forth in Part I of the Company’s Annual Report of Form 10K for the period ended December 31, 2008.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

There were no sales of unregistered equity securities during the covered time period.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None.

ITEM 5. OTHER INFORMATION

None.

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ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

The following documents are included or incorporated by reference as exhibits to this report:

ExhibitNumber	Description
31.1	Certification of Chief Executive Officer pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Chief Financial Officer pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.1	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

(b)   REPORTS ON FORM 8-K

None.

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SIGNATURES

In accordance with Section 13 or 15 (d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Date: August 19, 2009

Porfavor Corp.

Registrant

By: /s/ Boyd V. Applegate                

      Boyd V. Applegate

     Chief Executive Officer, Pres. Dir.

By:/s/ Christine M. Applegate          

       Christine M. Applegate

       CFO, Controller, Sec., Treas., Dir.

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