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<p ALIGN="CENTER"><b><font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="4">UNITED STATES<br>
SECURITIES AND EXCHANGE COMMISSION<br>
</font><font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="3">Washington, D.C. 20549<br>
</font></b><font SIZE="4" FACE="Times New Roman, Times, Serif">___________________<br>
<br>
<strong>FORM 10-Q<br>
</strong>___________________</font></p>

<p style="MARGIN: 0in 0in 0pt 0.5in; COLOR: windowtext; TEXT-INDENT: -0.5in"
align="center"><b><font style="FONT-WEIGHT: bold; FONT-SIZE: 12pt" face="Wingdings"
size="3">&#253</font><font style="FONT-WEIGHT: bold; FONT-SIZE: 3pt" size="1">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font style="FONT-WEIGHT: bold; FONT-SIZE: 12pt" size="3">QUARTERLY REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</font></b></p>

<p style="MARGIN: 0in 0in 0pt; COLOR: windowtext" align="center"><font size="1">&nbsp; </font></p>

<p style="MARGIN: 0in 0in 0pt; COLOR: windowtext; TEXT-ALIGN: center" align="center"><font
style="FONT-SIZE: 10pt" face="Times New Roman" size="2">For the quarterly period ended
December 31, 2008</font></p>

<p style="MARGIN: 0in 0in 0pt; COLOR: windowtext" align="center"><font size="1">&nbsp;&nbsp;
</font></p>

<p style="MARGIN: 0in 0in 0pt; COLOR: windowtext; TEXT-ALIGN: center" align="center"><font
style="FONT-SIZE: 10pt" face="Times New Roman" size="2">OR</font></p>

<p style="MARGIN: 0in 0in 0pt; COLOR: windowtext; TEXT-ALIGN: center" align="center"><font
size="1">&nbsp; </font></p>

<p style="MARGIN: 0in 0in 0pt 0.5in; COLOR: windowtext; TEXT-INDENT: -0.5in"
align="center"><b><font style="FONT-WEIGHT: bold; FONT-SIZE: 12pt" face="Wingdings"
size="3">&#168</font><font style="FONT-WEIGHT: bold; FONT-SIZE: 3pt" size="1">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font style="FONT-WEIGHT: bold; FONT-SIZE: 12pt" size="3">TRANSITION REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</font></b></p>

<p style="MARGIN: 0in 0in 0pt; COLOR: windowtext; TEXT-ALIGN: center" align="center">&nbsp;</p>

<p style="MARGIN: 0in 0in 0pt; COLOR: windowtext; TEXT-ALIGN: center" align="center"><font
style="FONT-SIZE: 10pt" face="Times New Roman" size="2">For the transition period from
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to</font></p>

<p style="MARGIN: 0in 0in 0pt; COLOR: windowtext; TEXT-ALIGN: center" align="center"><font
size="1">&nbsp;&nbsp; </font></p>

<p style="FONT-SIZE: 10pt; MARGIN: 0in 0in 0pt; COLOR: windowtext; TEXT-ALIGN: center"
align="center"><font style="FONT-SIZE: 10pt" face="Times New Roman" size="2">Commission
file number: 0-27511</font></p>

<p style="FONT-SIZE: 10pt; MARGIN: 0in 0in 0pt; COLOR: windowtext; TEXT-ALIGN: center"
align="center"><font size="1">&nbsp; </font></p>

<p ALIGN="center"><font face="TIMES NEW ROMAN, TIMES, SERIF" size="5"><b>PEREGRINE
INDUSTRIES, INC.<br>
</b></font><font face="TIMES NEW ROMAN, TIMES, SERIF" size="1">(Exact Name Of Registrant
As Specified In Its Charter)</font></p>

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    <td width="50%" align="center"><font face="TIMES NEW ROMAN, TIMES, SERIF" size="2"><u>Florida</u></font></td>
    <td width="50%" align="center"><font face="TIMES NEW ROMAN, TIMES, SERIF" size="2"><u>65-0611007</u></font></td>
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  <tr>
    <td width="50%" align="center" bgcolor="#ccffcc"><font size="1">(State of Incorporation)</font></td>
    <td width="50%" align="center" bgcolor="#ccffcc"><font size="1">(I.R.S. Employer
    Identification No.)</font></td>
  </tr>
  <tr>
    <td width="50%" align="center"><font size="1">&nbsp; </font></td>
    <td width="50%" align="center"><font size="1">&nbsp; </font></td>
  </tr>
  <tr>
    <td width="50%" align="center"><font face="TIMES NEW ROMAN, TIMES, SERIF" size="2"><u>40
    Wall Street, 28th Floor</u></font></td>
    <td width="50%" align="center"><font face="TIMES NEW ROMAN, TIMES, SERIF" size="2"><u>10005</u></font></td>
  </tr>
  <tr>
    <td width="50%" align="center" bgcolor="#ccffcc"><font size="1">(Address of Principal
    Executive Offices)</font></td>
    <td width="50%" align="center" bgcolor="#ccffcc"><font size="1">(ZIP Code)</font></td>
  </tr>
</table>

<p align="center"><font face="TIMES NEW ROMAN, TIMES, SERIF" size="2">Registrant's
Telephone Number, Including Area Code: (212) 400-7198</font></p>

<p ALIGN="JUSTIFY"><font face="TIMES NEW ROMAN, TIMES, SERIF" size="2">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 preceding 12 months (or for
such shorter period that the registrant was required to file such reports), and (2) has
been subject to such filing requirements for the past 90 days.&nbsp;Yes&nbsp;</font><font
size="2" FACE="WINGDINGS">&#120</font><font face="TIMES NEW ROMAN, TIMES, SERIF" size="2">&nbsp;No&nbsp;</font><font
size="2" FACE="WINGDINGS">&#168</font><font face="TIMES NEW ROMAN, TIMES, SERIF" size="2"><br>
</font><font size="2">Indicate by check mark whether the registrant is a shell company (as
defined in Rule 12b-2 of the Exchange Act). </font><font
face="TIMES NEW ROMAN, TIMES, SERIF" size="2">Yes&nbsp;</font><font size="2"
FACE="WINGDINGS">x</font><font face="TIMES NEW ROMAN, TIMES, SERIF" size="2">&nbsp;No&nbsp;</font><font
size="2" FACE="WINGDINGS">&#168</font></p>

<p ALIGN="JUSTIFY"><font
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Indicate by check
mark whether the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated filer </font><font style="FONT-SIZE: 10pt" face="Times New Roman" size="2">(as
defined in Rule&nbsp;12b-2 of the Exchange Act)</font><font
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"> or a smaller
reporting company</font><font style="FONT-SIZE: 10pt" face="Times New Roman" size="2"> </font><font
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.</font></p>

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  <tr>
    <td width="25%" align="center"><font
    style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">Large accelerated
    filer <font style="FONT-FAMILY: Wingdings">&#168</font></font></td>
    <td width="25%" align="center"><font
    style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">Accelerated filer <font
    style="FONT-FAMILY: Wingdings">&#168</font></font><font id="TAB2"
    style="COLOR: black; LETTER-SPACING: 27pt">&nbsp;</font></td>
    <td width="25%" align="center"><font
    style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">Non-Accelerated
    filer <font style="FONT-FAMILY: Wingdings">&#168</font></font><font id="TAB2"
    style="COLOR: black; LETTER-SPACING: 27pt">&nbsp;</font></td>
    <td width="25%" align="center"><font
    style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">Smaller reporting
    company </font><font face="WINGDINGS" size="2">&#120</font></td>
  </tr>
</table>

<p ALIGN="JUSTIFY"><font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2">At December 31,
2008, the Registrant had 524,200 shares of common stock outstanding.</font></p>

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</div>

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</p>
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<font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="3">

<hr SIZE="1" NOSHADE COLOR="#000000">
</font>

<p ALIGN="CENTER">&nbsp;</p>

<p ALIGN="CENTER"><a name="TABLE OF CONTENTS"><strong><font size="2">TABLE OF CONTENTS</font></strong></a></p>

<table ALIGN="CENTER" CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="100%" height="356">
  <tr VALIGN="BOTTOM">
    <th nowrap ALIGN="LEFT" height="55"><font size="2">Item</font><hr SIZE="1" NOSHADE
    COLOR="#000000" ALIGN="left">
    </th>
    <th height="55"></th>
    <th nowrap ALIGN="LEFT" height="55"><font size="2">Description</font><hr SIZE="1" NOSHADE
    COLOR="#000000" ALIGN="left">
    </th>
    <th COLSPAN="3" nowrap height="55"><font size="2">Page</font><hr SIZE="1" NOSHADE
    COLOR="#000000" WIDTH="60%">
    </th>
  </tr>
  <tr VALIGN="TOP" BGCOLOR="#ccffcc">
    <td ALIGN="CENTER" WIDTH="12%" COLSPAN="6" height="0"><div
    STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><p><font size="2"><strong>PART I - FINANCIAL
    INFORMATION</strong></font></p>
    </div></td>
  </tr>
  <tr>
    <td height="0"><font size="2">&nbsp; </font></td>
  </tr>
  <tr VALIGN="TOP">
    <td ALIGN="LEFT" WIDTH="12%" height="0"><div STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><p><font
    size="2">ITEM 1.</font></p>
    </div></td>
    <td WIDTH="3%" height="0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="LEFT" WIDTH="75%" height="0"><div STYLE="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><a
    HREF="pgid12312008.htm#a050"><p></a><font size="2">&nbsp;&nbsp; <a
    href="pgid12312008.htm#ITEM 1.&nbsp;FINANCIAL STATEMENTS">FINANCIAL
    STATEMENTS.</a></font></p>
    </div></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap height="0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="RIGHT" height="0"><font size="2">3</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap height="0"><font size="2">&nbsp;&nbsp;</font></td>
  </tr>
  <tr VALIGN="TOP" BGCOLOR="#ccffcc">
    <td ALIGN="LEFT" WIDTH="12%" height="0"><div STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><p><font
    size="2">ITEM 2.</font></p>
    </div></td>
    <td WIDTH="3%" height="0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="LEFT" WIDTH="75%" height="0"><div STYLE="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><a
    HREF="pgid12312008.htm#a051"><p></a><font size="2">&nbsp;&nbsp; <a
    href="pgid12312008.htm#ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS AND PLAN OF OPERATION">MANAGEMENT'S
    DISCUSSION AND ANALYSIS AND PLAN OF OPERATION.</a></font></p>
    </div></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap height="0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="RIGHT" height="0"><font size="2">3</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap height="0"><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" WIDTH="12%" height="0"><font size="2">ITEM 3.</font></td>
    <td WIDTH="3%" height="0"></td>
    <td ALIGN="LEFT" WIDTH="75%" height="0"><font size="2">&nbsp;&nbsp; <a
    href="#ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK">QUANTITATIVE
    AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK</a></font></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap height="0"></td>
    <td ALIGN="RIGHT" height="0"><font size="2">6</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap height="0"></td>
  </tr>
  <tr VALIGN="TOP">
    <td ALIGN="LEFT" WIDTH="12%" bgcolor="#CCFFCC" height="0"><div
    STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><p><font size="2">ITEM 4.</font></p>
    </div></td>
    <td WIDTH="3%" bgcolor="#CCFFCC" height="0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="LEFT" WIDTH="75%" bgcolor="#CCFFCC" height="0"><div
    STYLE="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><p><font size="2">&nbsp;&nbsp; <a
    href="pgid12312008.htm#ITEM 3. CONTROLS AND PROCEDURES">CONTROLS
    AND PROCEDURES.</a></font></p>
    </div></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap bgcolor="#CCFFCC" height="0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="RIGHT" bgcolor="#CCFFCC" height="0"><font size="2">6</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap bgcolor="#CCFFCC" height="0"><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" WIDTH="12%" bgcolor="#FFFFFF" height="0"><font size="2">&nbsp; </font></td>
    <td WIDTH="3%" bgcolor="#FFFFFF" height="0"></td>
    <td ALIGN="LEFT" WIDTH="75%" bgcolor="#FFFFFF" height="0"></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap bgcolor="#FFFFFF" height="0"></td>
    <td ALIGN="RIGHT" bgcolor="#FFFFFF" height="0"></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap bgcolor="#FFFFFF" height="0"></td>
  </tr>
  <tr VALIGN="TOP">
    <td ALIGN="center" WIDTH="12%" COLSPAN="6" bgcolor="#ccffcc" height="0"><div
    STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><p><font size="2"><strong>PART II - OTHER
    INFORMATION</strong></font></p>
    </div></td>
  </tr>
  <tr>
    <td height="0"><font size="2">&nbsp; </font></td>
  </tr>
  <tr VALIGN="TOP" BGCOLOR="#ccffcc">
    <td ALIGN="LEFT" WIDTH="12%" height="0"><div STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><p><font
    size="2">ITEM 1.</font></p>
    </div></td>
    <td WIDTH="3%" height="0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="LEFT" WIDTH="75%" height="0"><div STYLE="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><p><font
    size="2">&nbsp;&nbsp; <a
    href="pgid12312008.htm#ITEM 1. LEGAL PROCEEDINGS">LEGAL
    PROCEEDINGS.</a></font></p>
    </div></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap height="0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="RIGHT" height="0"><font size="2">6</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap height="0"><font size="2">&nbsp;&nbsp;</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" WIDTH="12%" height="0"><font size="2">ITEM 1A.</font></td>
    <td WIDTH="3%" height="0"></td>
    <td ALIGN="LEFT" WIDTH="75%" height="0"><font size="2">&nbsp;&nbsp; <a
    href="#ITEM 1A. RISK FACTORS">RISK FACTORS</a></font></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap height="0"></td>
    <td ALIGN="RIGHT" height="0"><font size="2">6</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap height="0"></td>
  </tr>
  <tr VALIGN="TOP">
    <td ALIGN="LEFT" WIDTH="12%" bgcolor="#CCFFCC" height="1"><div
    STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><p><font size="2">ITEM 2.</font></p>
    </div></td>
    <td WIDTH="3%" bgcolor="#CCFFCC" height="1"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="LEFT" WIDTH="75%" bgcolor="#CCFFCC" height="1"><div
    STYLE="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><p><font size="2">&nbsp;&nbsp; <a
    href="#ITEM 2. CHANGES IN SECURITIES">UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF
    PROCEEDS</a></font></p>
    </div></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap bgcolor="#CCFFCC" height="1"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="RIGHT" bgcolor="#CCFFCC" height="1"><font size="2">6</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap bgcolor="#CCFFCC" height="1"><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
  </tr>
  <tr VALIGN="TOP" BGCOLOR="#ccffcc">
    <td ALIGN="LEFT" WIDTH="12%" bgcolor="#FFFFFF" height="0"><div
    STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><p><font size="2">ITEM 3.</font></p>
    </div></td>
    <td WIDTH="3%" bgcolor="#FFFFFF" height="0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="LEFT" WIDTH="75%" bgcolor="#FFFFFF" height="0"><div
    STYLE="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><p><font size="2">&nbsp;&nbsp; <a
    href="pgid12312008.htm#ITEM 3.&nbsp;DEFAULTS UPON SENIOR SECURITIES">DEFAULT
    UPON SENIOR SECURITIES.</a></font></p>
    </div></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap bgcolor="#FFFFFF" height="0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="RIGHT" VALIGN="TOP" bgcolor="#FFFFFF" height="0"><font size="2">6</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap bgcolor="#FFFFFF" height="0"><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
  </tr>
  <tr VALIGN="TOP">
    <td ALIGN="LEFT" WIDTH="12%" bgcolor="#CCFFCC" height="0"><div
    STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><p><font size="2">ITEM 4.</font></p>
    </div></td>
    <td WIDTH="3%" bgcolor="#CCFFCC" height="0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="LEFT" WIDTH="75%" bgcolor="#CCFFCC" height="0"><div
    STYLE="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><p><font size="2">&nbsp;&nbsp; <a
    href="pgid12312008.htm#ITEM 4.&nbsp;SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS">SUBMISSION
    OF MATERS TO A VOTE OF SECURITY HOLDERS.</a></font></p>
    </div></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap bgcolor="#CCFFCC" height="0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="RIGHT" bgcolor="#CCFFCC" height="0"><font size="2">6</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap bgcolor="#CCFFCC" height="0"><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
  </tr>
  <tr VALIGN="TOP" BGCOLOR="#ccffcc">
    <td ALIGN="left" WIDTH="12%" bgcolor="#FFFFFF" height="0"><div
    STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><p><font size="2">ITEM 5.</font></p>
    </div></td>
    <td WIDTH="3%" bgcolor="#FFFFFF" height="0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="left" WIDTH="75%" bgcolor="#FFFFFF" height="0"><div
    STYLE="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><p><font size="2">&nbsp;&nbsp; <a
    href="pgid12312008.htm#ITEM 5.&nbsp;OTHER INFORMATION">OTHER
    INFORMATION.</a></font></p>
    </div></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap bgcolor="#FFFFFF" height="0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="RIGHT" bgcolor="#FFFFFF" height="0"><font size="2">6</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap bgcolor="#FFFFFF" height="0"><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
  </tr>
  <tr>
    <td ALIGN="left" WIDTH="12%" bgcolor="#CCFFCC" height="0"><font size="2">ITEM 6.</font></td>
    <td WIDTH="3%" bgcolor="#CCFFCC" height="0"></td>
    <td ALIGN="left" WIDTH="75%" bgcolor="#CCFFCC" height="0"><font size="2">&nbsp;&nbsp; <a
    href="pgid12312008.htm#ITEM 6.&nbsp;EXHIBITS AND REPORTS ON FORM 8-K">EXHIBITS
    AND REPORTS ON FORM 8-K.</a></font></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap bgcolor="#CCFFCC" height="0"></td>
    <td ALIGN="RIGHT" bgcolor="#CCFFCC" height="0"><font size="2">6</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap bgcolor="#CCFFCC" height="0"></td>
  </tr>
</table>

<p>&nbsp;</p>
<b><font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="3">

<hr SIZE="1" NOSHADE COLOR="#000000">
</font></b>

<hr NOSHADE SIZE="5">
</div>

<p><br clear="all" style="page-break-before:always; mso-break-type:section-break">
</p>
<div>

<p ALIGN="CENTER"><font size="2"><b>PART I - FINANCIAL INFORMATION</b></font></p>

<p ALIGN="JUSTIFY"><font size="2"><a name="ITEM 1.&nbsp;FINANCIAL STATEMENTS">ITEM
1.&nbsp;FINANCIAL STATEMENTS</a><b> </b></font><a
href="pgid12312008.htm#TABLE OF CONTENTS"><font size="1">Back to
Table of Contents</font></a></p>

<p ALIGN="JUSTIFY"><font size="2">The Registrant's unaudited interim financial statements
are attached hereto. <a
href="pgid12312008.htm#Unaudited Interim Financial Statements">Unaudited
Interim Financial Statements</a></font></p>

<p ALIGN="JUSTIFY"><font size="2"><a
name="ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS AND PLAN OF OPERATION">ITEM 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS AND PLAN OF OPERATION</a> </font><font size="1"><a
href="pgid12312008.htm#TABLE OF CONTENTS">Back to Table of
Contents</a></font></p>

<p align="justify"><font size="2">Some of the statements contained in this quarterly
report of Peregrine Industries, Inc. (hereinafter the &quot;Company&quot;, &quot;We&quot;
or the &quot;Registrant&quot;) discuss future expectations, contain projections of our
plan of operation or financial condition or state other forward-looking information.
Forward-looking statements give our current expectations or forecasts of future events.
You can identify these statements by the fact that they do not relate strictly to
historical or current facts. They use of words such as &quot;anticipate,&quot;
&quot;estimate,&quot; &quot;expect,&quot; &quot;project,&quot; &quot;intend,&quot;
&quot;plan,&quot; &quot;believe,&quot; and other words and terms of similar meaning in
connection with any discussion of future operating or financial performance. From time to
time, we also may provide forward-looking statements in other materials we release to the
public.</font></p>

<p align="justify"><font color="#000000" size="2"><u>Plan of Operation</u></font></p>

<p align="justify"><font color="#000000" size="2">We have no present operations or
revenues and our current activities are related to seeking new business opportunities,
including seeking an acquisition or merger with an operating company. The Registrant does
not intend to limit itself to a particular industry and has not established any particular
criteria upon which it shall consider and proceed with a business opportunity.</font></p>

<p align="justify"><font color="#000000" size="2">If the Company seeks to acquire another
business or pursue a business opportunity, management would have substantial flexibility
in identifying and selecting a prospective business. Registrant would not be obligated nor
does management intend to seek pre-approval by our shareholders. Under the laws of the
State of Florida, the consent of holders of a majority of the issued and outstanding
shares, acting without a shareholders meeting, can approve an acquisition.</font></p>

<p align="justify"><font color="#000000" size="2">The Registrant is entirely dependent on
the judgment of management in connection with the selection process for a target company.
In evaluating a prospective business opportunity, we would consider, among other factors,
the following: (i) costs associated with effecting a transaction; (ii) equity interest in
and opportunity to control the prospective candidate; (iii) growth potential of the target
business; (iv) experience and skill of management and availability of additional
personnel; (v) necessary capital requirements; (vi) the prospective candidate's
competitive position; (vii) stage of development of the business opportunity; (viii) the
market acceptance of the business its products or services; (ix) the availability of
audited financial statements of the potential business opportunity; and (x) the regulatory
environment that may be applicable to any prospective business opportunity.</font></p>

<p align="justify"><font color="#000000" size="2">The foregoing criteria are not intended
to be exhaustive and there may be other criteria that management may deemed relevant. In
connection with an evaluation of a prospective or potential business opportunity,
management may be expected to conduct a due diligence review.</font></p>

<p align="justify"><font color="#000000" size="2">We had operating expenses of $12,950 and
$9,950 during the three-month periods ended December 31, 2008 and 2007, respectively,
consisting mainly of accounting fees, professional fees and general and administrative
expenses. The Company does not expect its operating expenses to increase significantly
until it starts to pursue a new business opportunity or enters into a business
combination.</font></p>

<p align="justify"><font color="#000000" size="2"><u>Liquidity and Capital Resources</u></font></p>

<p align="justify"><font color="#000000" size="2">We are dependent upon interim funding
provided by management and/or related parties to pay professional fees and other expenses.
We have no written finance agreement with management and/or related parties to provide any
continued funding.</font></p>

<p align="justify"><font color="#000000" size="2">At December 31, 2008, we had no assets
and $139,226 in liabilities.</font></p>

<p align="justify"><font face="TIMES NEW ROMAN, TIMES, SERIF" color="#000000" size="2">As
part of our intent to seek new business opportunities, we may determine to seek to raise
funds from the sale of equity or debt securities. We have no agreements to issue any debt
or equity securities and cannot predict whether equity or debt financing will become
available at terms acceptable to us, if at all.</font></p>

<p align="justify"><font color="#000000" size="2">We anticipate that in connection with
the commencement of a new business opportunity or consummation of a business combination,
we will issue a substantial number of additional restricted shares or other securities. If
such additional securities are issued, our shareholders will experience a dilution in
their ownership interest in the Company. If a substantial number of shares are issued in
connection with a business combination, a change in control may be expected to occur.</font></p>

<p align="justify"><font face="TIMES NEW ROMAN, TIMES, SERIF" color="#000000" size="2">There
are no limitations in our articles of incorporation on our ability to borrow funds or
raise funds through the issuance of restricted common stock to pursue new business
opportunities. Our limited resources and lack of operating history may make it difficult
to do borrow funds or raise capital. Our inability to borrow funds or raise funds through
the issuance of restricted common stock required to facilitate new business opportunities
may have a material adverse effect on our financial condition and future prospects.</font></p>

<p ALIGN="JUSTIFY"><font size="2"><a
name="ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK">ITEM 3.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK</a> </font><font size="1"><a
href="pgid12312008.htm#TABLE OF CONTENTS">Back to Table of
Contents</a></font></p>

<p ALIGN="JUSTIFY"><font
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We have not entered
into, and do not expect to enter into, financial instruments for trading or hedging
purposes.</font></p>

<p ALIGN="JUSTIFY"><font size="2"><a name="ITEM 3. CONTROLS AND PROCEDURES">ITEM 4.
CONTROLS AND PROCEDURES</a><b> </b></font><font size="1"><a
href="pgid12312008.htm#TABLE OF CONTENTS">Back to Table of
Contents</a></font></p>
<font face="Times New Roman" size="2"><b>

<p></b><em>Evaluation of Disclosure Controls and Procedures</em></p>

<p>Our Chief Executive Officer/Chief Financial Officer evaluated the effectiveness of the
design and operation of our disclosure controls and procedures (as such term is defined in
Rule 13a-15(e) under the Securities Exchange Act of 1934 (the &quot;Exchange Act&quot;).
Disclosure controls and procedures are the controls and other procedures that we designed
to ensure that we record, process, summarize and report in a timely manner the information
we must disclose in reports that we file with or submit to the Securities and Exchange
Commission under the Exchange Act. Based on this evaluation, we have concluded that our
disclosure controls and procedures were effective as of the end of the period covered by
this report. </p>
<b>

<p></b><em>Changes in Internal Control Over Financial Reporting</em></p>

<p>There were no changes in our internal control over financial reporting or in other
factors identified in connection with the evaluation required by paragraph (d) of Exchange
Act Rules 13a-15 or 15d-15 that occurred during the quarter ended December 31, 2008 that
have materially affected, or are reasonably likely to materially affect, our internal
control over financial reporting.</p>
</font>

<p ALIGN="center"><font size="2"><b>PART II - OTHER INFORMATION</b></font></p>

<p ALIGN="JUSTIFY"><font size="2"><a name="ITEM 1. LEGAL PROCEEDINGS">ITEM 1. LEGAL
PROCEEDINGS</a><b> </b></font><font size="1">&nbsp; <a
href="pgid12312008.htm#TABLE OF CONTENTS">Back to Table of
Contents</a></font></p>

<p ALIGN="JUSTIFY"><font size="2" color="#000000">None.</font></p>

<p ALIGN="JUSTIFY"><font size="2" color="#000000"><a name="ITEM 1A. RISK FACTORS">ITEM 1A.
RISK FACTORS</a> </font><a
href="pgid12312008.htm#TABLE OF CONTENTS"><font size="1">Back to
Table of Contents</font></a></p>

<p ALIGN="JUSTIFY"><font face="Times New Roman" size="2">In addition to the other
information set forth in this report, you should carefully consider the factors discussed
in Part I, &#147;Item&nbsp;1. Description of Business, subheading Risk Factors&#148; in
our Annual Report on Form&nbsp;10-K for the year ended June 30, 2008, which could
materially affect our business, financial condition or future results. The risks described
in our Annual Report on Form&nbsp;10-K are not the only risks facing our company.
Additional risks and uncertainties not currently known to us or that we currently deem to
be immaterial also may materially adversely affect our business, financial condition
and/or operating results. </font></p>

<p ALIGN="JUSTIFY"><font size="2"><a name="ITEM 2. CHANGES IN SECURITIES">ITEM 2.
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS</a> </font><font size="1"><a
href="pgid12312008.htm#TABLE OF CONTENTS">Back to Table of
Contents</a></font></p>

<p ALIGN="JUSTIFY"><font size="2">None.</font></p>

<p ALIGN="JUSTIFY"><font size="2"><a name="ITEM 3.&nbsp;DEFAULTS UPON SENIOR SECURITIES">ITEM
3.&nbsp;DEFAULTS UPON SENIOR SECURITIES</a><b> </b></font><font size="1"><a
href="pgid12312008.htm#TABLE OF CONTENTS">Back to Table of
Contents</a></font></p>

<p ALIGN="JUSTIFY"><font size="2">None.</font></p>

<p ALIGN="JUSTIFY"><font size="2"><a
name="ITEM 4.&nbsp;SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS">ITEM
4.&nbsp;SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS</a> </font><font size="1"><a
href="pgid12312008.htm#TABLE OF CONTENTS">Back to Table of
Contents</a></font></p>

<p ALIGN="JUSTIFY"><font size="2">None.</font></p>

<p ALIGN="JUSTIFY"><font size="2"><a name="ITEM 5.&nbsp;OTHER INFORMATION">ITEM
5.&nbsp;OTHER INFORMATION</a><b> </b></font><font size="1"><a
href="pgid12312008.htm#TABLE OF CONTENTS">Back to Table of
Contents</a></font></p>

<p ALIGN="JUSTIFY"><font size="2">None.</font></p>

<p ALIGN="JUSTIFY"><font size="2"><a name="ITEM 6.&nbsp;EXHIBITS AND REPORTS ON FORM 8-K">ITEM
6.&nbsp;EXHIBITS</a><b> </b></font><font size="1"><a
href="pgid12312008.htm#TABLE OF CONTENTS">Back to Table of
Contents</a></font></p>

<p ALIGN="JUSTIFY" style="text-align: justify"><font size="2">(a) The following documents
are filed as exhibits to this report on Form 10-Q or incorporated by reference herein. Any
document incorporated by reference is identified by a parenthetical reference to the SEC
filing that included such document.</font></p>

<table ALIGN="CENTER" CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="100%" height="0%">
  <tr VALIGN="BOTTOM">
    <th nowrap height="0" bgcolor="#ccffcc" width="8%"><p align="left"><font size="1">Exhibit
    No.</font></th>
    <th nowrap ALIGN="LEFT" height="0" bgcolor="#ccffcc" width="92%"><font size="1">Description</font></th>
  </tr>
  <tr>
    <td width="8%" bgcolor="#FFFFFF" height="0%"><font size="1">31</font></td>
    <td width="92%" bgcolor="#FFFFFF" height="0%"><font size="1">Certification of President
    and CFO pursuant to Rule 13a-14(a) or 15d-14(a) of the Exchange Act pursuant to Section
    302 of the Sarbanes-Oxley Act of 2002.</font></td>
  </tr>
  <tr>
    <td width="8%" bgcolor="#FFFFFF" height="0%"><font size="1">32</font></td>
    <td width="92%" bgcolor="#FFFFFF" height="0%"><font size="1">Certification of President
    and CFO pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the
    Sarbanes-Oxley Act of 2002.</font></td>
  </tr>
</table>
</div>

<p><br clear="all" style="page-break-before:always; mso-break-type:section-break">
</p>
<div>

<p align="center"><font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2">SIGNATURES</font></p>

<p ALIGN="JUSTIFY"><font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2">Pursuant to the
requirements of the Securities Exchange Act of 1934, this report has been signed below by
the following persons on behalf of the registrant and in the capacities and on the date
indicated.</font></p>

<p ALIGN="JUSTIFY"><font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2"><u>/s/ Richard
Rubin</u><br>
Richard Rubin<br>
&nbsp;&nbsp; <em>CEO, CFO and Chairman</em><br>
<i>&nbsp;&nbsp; Dated: February 12, 2009</i></font></p>
</div>

<p><br clear="all" style="page-break-before:always; mso-break-type:section-break">
</p>
<div>

<p align="center"><font size="2"><a name="Unaudited Interim Financial Statements"><strong>Unaudited
Interim Financial Statements</strong></a> </font><a
href="pgid12312008.htm#TABLE OF CONTENTS"><font size="1">Back to
Table of Contents</font></a></p>

<table style="BORDER-BOTTOM: rgb(0,0,0) 1px" height="0%" cellSpacing="0" cellPadding="0"
width="100%" border="0">
  <tr>
    <td vAlign="middle" width="100%" height="0%" colspan="5" align="center" bgcolor="#ccffcc"><font
    size="2"><b>Peregrine Industries, Inc.</b></font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="100%" height="0%" colspan="5" align="center"><font size="2">Balance
    Sheets</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="100%" height="0%" colspan="5" align="center"><font size="1">&nbsp;
    </font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="1"><strong>&nbsp;&nbsp; </strong></font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"><font size="1"><strong>Decemebr
    31, 2008</strong></font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"><font size="1"><strong>June 30,
    2008</strong></font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="1">(Unaudited)</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="1">&nbsp; </font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="1">&nbsp; </font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><p align="center"><font size="2">Assets</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">Current assets:</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">&nbsp;&nbsp; Cash</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"><font size="2">$</font></td>
    <td vAlign="middle" align="right" width="13%" height="0%"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">0</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"><font size="2">$</font></td>
    <td vAlign="middle" align="right" width="13%" height="0%"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">0</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Total
    current assets</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">0</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">0</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">&nbsp;&nbsp; </font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">&nbsp;&nbsp; Other assets</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">0</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"
    style="border-bottom: 1px none rgb(0,0,0)"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">0</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%" bgcolor="#ccffcc"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Total Assets</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%" bgcolor="#ccffcc"><font size="2">$</font></td>
    <td vAlign="middle" align="right" width="13%" height="0%" bgcolor="#ccffcc"
    style="border-bottom: 2px double rgb(0,0,0)"><font size="2">0</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%" bgcolor="#ccffcc"
    style="border-bottom: 2px none rgb(0,0,0)"><font size="2">$</font></td>
    <td vAlign="middle" align="right" width="13%" height="0%" bgcolor="#ccffcc"
    style="border-bottom: 2px double rgb(0,0,0)"><font size="2">0</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">&nbsp; </font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><p align="center"><font size="2">Liabilities
    and Stockholders' Deficiency</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">Current liabilities:</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">&nbsp;&nbsp; Accounts payable -
    trade</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"><font size="2">$</font></td>
    <td vAlign="middle" align="right" width="13%" height="0%"><font size="2">15,226</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"><font size="2">$</font></td>
    <td vAlign="middle" align="right" width="13%" height="0%"><font size="2">13,326</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">&nbsp;&nbsp; Advances from and
    accruals due to related parties</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">124,000</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">97,500</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%" bgcolor="#ccffcc"><font size="2">&nbsp;&nbsp;
    &nbsp;&nbsp; Total current liabilities</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%" bgcolor="#ccffcc"></td>
    <td vAlign="middle" align="right" width="13%" height="0%" bgcolor="#ccffcc"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">139,226</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%" bgcolor="#ccffcc"
    style="border-bottom: 1px none rgb(0,0,0)"></td>
    <td vAlign="middle" align="right" width="13%" height="0%" bgcolor="#ccffcc"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">110,826</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">&nbsp; </font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">Stockholders' deficiency:</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">Preferred stock, 5,000,000
    shares authorized, $0.0001 par value, none issued</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"><font size="2">-</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"><font size="2">-</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">Common stock, 100,000,000
    shares authorized, $0.0001 par value;</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;
    524,200 issued and outstanding at December 31, 2008; and </font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;
    524,200 issued and outstanding at June 30, 2008</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"><font size="2">52</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"><font size="2">52</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">&nbsp;&nbsp; Additional paid in
    capital</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"><font size="2">157,832</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"><font size="2">157,832</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">&nbsp;&nbsp; Accumulated
    deficit</font></td>
    <td style="BORDER-BOTTOM: rgb(0,0,0) 1px" vAlign="middle" align="right" width="2%"
    height="0%"></td>
    <td style="border-bottom: 1px solid rgb(0,0,0)" vAlign="middle" align="right" width="13%"
    height="0%"><font size="2">(297,110)</font></td>
    <td style="border-bottom: 1px none rgb(0,0,0)" vAlign="middle" align="right" width="2%"
    height="0%"></td>
    <td style="border-bottom: 1px solid rgb(0,0,0)" vAlign="middle" align="right" width="13%"
    height="0%"><font size="2">(268,710)</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Total
    stockholders' deficiency</font></td>
    <td style="BORDER-BOTTOM: rgb(0,0,0) 1px" vAlign="middle" align="right" width="2%"
    height="0%"></td>
    <td style="border-bottom: 1px none rgb(0,0,0)" vAlign="middle" align="right" width="13%"
    height="0%"><font size="2">(139,226)</font></td>
    <td style="border-bottom: 1px none rgb(0,0,0)" vAlign="middle" align="right" width="2%"
    height="0%"></td>
    <td style="border-bottom: 1px none rgb(0,0,0)" vAlign="middle" align="right" width="13%"
    height="0%"><font size="2">(110,826)</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">&nbsp; </font></td>
    <td style="BORDER-BOTTOM: rgb(0,0,0) 1px" vAlign="middle" align="right" width="2%"
    height="0%"></td>
    <td style="border-bottom: 1px solid rgb(0,0,0)" vAlign="middle" align="right" width="13%"
    height="0%"><font size="2">&nbsp;&nbsp; </font></td>
    <td style="border-bottom: 1px none rgb(0,0,0)" vAlign="middle" align="right" width="2%"
    height="0%"></td>
    <td style="border-bottom: 1px solid rgb(0,0,0)" vAlign="middle" align="right" width="13%"
    height="0%"><font size="2">&nbsp; </font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%" bgcolor="#ccffcc"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Total liabilities and stockholders' deficiency</font></td>
    <td style="BORDER-BOTTOM: rgb(0,0,0) 2px" vAlign="middle" align="right" width="2%"
    height="0%" bgcolor="#ccffcc"><font size="2">$</font></td>
    <td style="border-bottom: 2px double rgb(0,0,0)" vAlign="middle" align="right" width="13%"
    height="0%" bgcolor="#ccffcc"><font size="2">0</font></td>
    <td style="border-bottom: 2px none rgb(0,0,0)" vAlign="middle" align="right" width="2%"
    height="0%" bgcolor="#ccffcc"><font size="2">$</font></td>
    <td style="border-bottom: 2px double rgb(0,0,0)" vAlign="middle" align="right" width="13%"
    height="0%" bgcolor="#ccffcc"><font size="2">0</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="100%" height="0%" bgcolor="#FFFFFF" colspan="5"><font size="2">&nbsp;
    </font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="100%" height="0%" bgcolor="#FFFFFF" colspan="5"><font size="2">See
    notes to unaudited interim financial statements</font></td>
  </tr>
</table>
</div>

<p><br clear="all" style="page-break-before:always; mso-break-type:section-break">
</p>
<div>

<table height="1" cellSpacing="0" cellPadding="0" width="100%" border="0">
  <tr>
    <td width="100%" height="0" colspan="10" align="center" bgcolor="#ccffcc"><font size="2"><b>Peregrine
    Industries, Inc.</b></font></td>
  </tr>
  <tr>
    <td width="100%" height="0" colspan="10" align="center"><font size="2">Statements of
    Operations</font></td>
  </tr>
  <tr>
    <td width="100%" height="0" colspan="10">&nbsp; </td>
  </tr>
  <tr>
    <td width="40%" height="0"></td>
    <td width="2%" align="right" height="0"></td>
    <td width="13%" align="right" height="0"><font size="1"><strong>Three Months</strong></font></td>
    <td width="2%" align="right" height="0"></td>
    <td width="2%" align="right" height="0"></td>
    <td width="13%" align="right" height="0"><font size="1"><strong>Three Months</strong></font></td>
    <td width="2%" align="right" height="0"></td>
    <td width="13%" align="right" height="0"><font size="1"><strong>Six Months</strong></font></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" height="0" align="right"><font size="1"><strong>Six Months</strong></font></td>
  </tr>
  <tr>
    <td width="40%" height="0"></td>
    <td width="2%" align="right" height="0"></td>
    <td width="13%" align="right" height="0"><font size="1"><strong>Ended</strong></font></td>
    <td width="2%" align="right" height="0"></td>
    <td width="2%" align="right" height="0"></td>
    <td width="13%" align="right" height="0"><font size="1"><strong>Ended</strong></font></td>
    <td width="2%" align="right" height="0"></td>
    <td width="13%" align="right" height="0"><font size="1"><strong>Ended</strong></font></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" height="0" align="right"><font size="1"><strong>Ended</strong></font></td>
  </tr>
  <tr>
    <td width="40%" height="0"></td>
    <td width="2%" align="right" height="0"></td>
    <td width="13%" align="right" height="0"><font size="1"><strong>December 31, 2008</strong></font></td>
    <td width="2%" align="right" height="0"></td>
    <td width="2%" align="right" height="0"></td>
    <td width="13%" align="right" height="0"><font size="1"><strong>December 31, 2007</strong></font></td>
    <td width="2%" align="right" height="0"></td>
    <td width="13%" align="right" height="0"><font size="1"><strong>December 31, 2008</strong></font></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" height="0" align="right"><font size="1"><strong>December 31, 2007</strong></font></td>
  </tr>
  <tr>
    <td width="40%" height="0"></td>
    <td width="2%" align="right" style="border-bottom: 1px none rgb(0,0,0)" height="0"></td>
    <td width="13%" align="right" style="border-bottom: 1px solid rgb(0,0,0)" height="0"><font
    size="1">(Unaudited)</font></td>
    <td width="2%" align="right" style="border-bottom: 1px none rgb(0,0,0)" height="0"></td>
    <td width="2%" align="right" style="border-bottom: 1px none rgb(0,0,0)" height="0"></td>
    <td width="13%" align="right" style="border-bottom: 1px solid rgb(0,0,0)" height="0"><font
    size="1">(Unaudited)</font></td>
    <td width="2%" align="right" style="border-bottom: 1px none rgb(0,0,0)" height="0"></td>
    <td width="13%" align="right" style="border-bottom: 1px solid rgb(0,0,0)" height="0"><font
    size="1">(Unaudited)</font></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" height="0" align="right" style="border-bottom: 1px solid rgb(0,0,0)"><font
    size="1">(Unaudited)</font></td>
  </tr>
  <tr>
    <td width="40%" height="0" bgcolor="#FFFFFF"><font size="1">&nbsp; </font></td>
    <td width="2%" bgcolor="#FFFFFF" align="right" height="0"></td>
    <td width="13%" bgcolor="#FFFFFF" align="right" height="0"></td>
    <td width="2%" bgcolor="#FFFFFF" align="right" height="0"></td>
    <td width="2%" bgcolor="#FFFFFF" align="right" height="0"></td>
    <td width="13%" bgcolor="#FFFFFF" align="right" height="0"></td>
    <td width="2%" bgcolor="#FFFFFF" align="right" height="0"></td>
    <td width="13%" bgcolor="#FFFFFF" align="right" height="0"></td>
    <td width="2%" height="0" bgcolor="#FFFFFF" align="right"></td>
    <td width="13%" height="0" bgcolor="#FFFFFF" align="right"></td>
  </tr>
  <tr>
    <td width="40%" height="0" bgcolor="#ccffcc"><font size="2">Revenue</font></td>
    <td width="2%" bgcolor="#ccffcc" align="right" height="0"><font size="2">$</font></td>
    <td width="13%" bgcolor="#ccffcc" align="right" height="0"><font size="2">0</font></td>
    <td width="2%" bgcolor="#ccffcc" align="right" height="0"></td>
    <td width="2%" bgcolor="#ccffcc" align="right" height="0"><font size="2">$</font></td>
    <td width="13%" bgcolor="#ccffcc" align="right" height="0"><font size="2">0</font></td>
    <td width="2%" bgcolor="#ccffcc" align="right" height="0"><font size="2">$</font></td>
    <td width="13%" bgcolor="#ccffcc" align="right" height="0"><font size="2">0</font></td>
    <td width="2%" height="0" bgcolor="#ccffcc" align="right"><font size="2">$</font></td>
    <td width="13%" bgcolor="#ccffcc" align="right" height="0"><font size="2">0</font></td>
  </tr>
  <tr>
    <td width="40%" height="0"><font size="2">Costs and expenses:</font></td>
    <td width="2%" align="right" height="0"></td>
    <td width="13%" align="right" height="0"></td>
    <td width="2%" align="right" height="0"></td>
    <td width="2%" align="right" height="0"></td>
    <td width="13%" align="right" height="0"></td>
    <td width="2%" align="right" height="0"></td>
    <td width="13%" align="right" height="0"></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" align="right" height="0"></td>
  </tr>
  <tr>
    <td width="40%" height="1"><font size="2">&nbsp;&nbsp; General and administrative</font></td>
    <td width="2%" align="right" height="1" style="border-bottom: 1px none rgb(0,0,0)"></td>
    <td width="13%" align="right" height="1" style="border-bottom: 1px solid rgb(0,0,0)"><font
    size="2">12,950</font></td>
    <td width="2%" align="right" height="1" style="border-bottom: 1px none rgb(0,0,0)"></td>
    <td width="2%" align="right" height="1" style="border-bottom: 1px none rgb(0,0,0)"></td>
    <td width="13%" align="right" height="1" style="border-bottom: 1px solid rgb(0,0,0)"><font
    size="2">9,950</font></td>
    <td width="2%" align="right" height="1" style="border-bottom: 1px none rgb(0,0,0)"></td>
    <td width="13%" align="right" height="1" style="border-bottom: 1px solid rgb(0,0,0)"><font
    size="2">15,450</font></td>
    <td width="2%" height="1" align="right"></td>
    <td width="13%" align="right" height="1" style="border-bottom: 1px solid rgb(0,0,0)"><font
    size="2">9,950</font></td>
  </tr>
  <tr>
    <td width="40%" height="0"><font size="2">Total costs and expenses</font></td>
    <td width="2%" align="right" height="0"></td>
    <td width="13%" align="right" height="0"><font size="2">12,950</font></td>
    <td width="2%" align="right" height="0"></td>
    <td width="2%" align="right" height="0"></td>
    <td width="13%" align="right" height="0"><font size="2">9,950</font></td>
    <td width="2%" align="right" height="0"></td>
    <td width="13%" align="right" height="0"><font size="2">15,450</font></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" align="right" height="0"><font size="2">9,950</font></td>
  </tr>
  <tr>
    <td width="40%" height="1"><font size="2">&nbsp; </font></td>
    <td width="2%" align="right" height="1"></td>
    <td width="13%" align="right" height="1"></td>
    <td width="2%" align="right" height="1"></td>
    <td width="2%" align="right" height="1"></td>
    <td width="13%" align="right" height="1"></td>
    <td width="2%" align="right" height="1"></td>
    <td width="13%" align="right" height="1"></td>
    <td width="2%" height="1" align="right"></td>
    <td width="13%" align="right" height="1"></td>
  </tr>
  <tr>
    <td width="40%" height="0" bgcolor="#ccffcc"><font size="2"><strong>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </strong>Net loss</font></td>
    <td width="2%" align="right" bgcolor="#ccffcc" style="border-bottom: 2px none rgb(0,0,0)"
    height="0"></td>
    <td width="13%" align="right" bgcolor="#CCFFCC"
    style="border-bottom: 2px double rgb(0,0,0)" height="0"><font size="2">(12,950)</font></td>
    <td width="2%" align="right" bgcolor="#ccffcc" style="border-bottom: 2px none rgb(0,0,0)"
    height="0"></td>
    <td width="2%" align="right" bgcolor="#ccffcc" style="border-bottom: 2px none rgb(0,0,0)"
    height="0"><font size="2">$</font></td>
    <td width="13%" align="right" bgcolor="#CCFFCC"
    style="border-bottom: 2px double rgb(0,0,0)" height="0"><font size="2">(9,950)</font></td>
    <td width="2%" align="right" bgcolor="#ccffcc" style="border-bottom: 2px none rgb(0,0,0)"
    height="0"><font size="2">$</font></td>
    <td width="13%" align="right" bgcolor="#CCFFCC"
    style="border-bottom: 2px double rgb(0,0,0)" height="0"><font size="2">(15,450)</font></td>
    <td width="2%" height="0" align="right" bgcolor="#ccffcc"><font size="2">$</font></td>
    <td width="13%" align="right" bgcolor="#CCFFCC"
    style="border-bottom: 2px double rgb(0,0,0)" height="0"><font size="2">(9,950)</font></td>
  </tr>
  <tr>
    <td width="40%" height="0"><font size="2">&nbsp; </font></td>
    <td width="2%" align="right" height="0"></td>
    <td width="13%" align="right" height="0"></td>
    <td width="2%" align="right" height="0"></td>
    <td width="2%" align="right" height="0"></td>
    <td width="13%" align="right" height="0"></td>
    <td width="2%" align="right" height="0"></td>
    <td width="13%" align="right" height="0"></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" align="right" height="0"></td>
  </tr>
  <tr>
    <td width="40%" height="0"><font size="2">Basic and diluted per share amounts:</font></td>
    <td width="2%" align="right" height="0"></td>
    <td width="13%" align="right" height="0"></td>
    <td width="2%" align="right" height="0"></td>
    <td width="2%" align="right" height="0"></td>
    <td width="13%" align="right" height="0"></td>
    <td width="2%" align="right" height="0"></td>
    <td width="13%" align="right" height="0"></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" align="right" height="0"></td>
  </tr>
  <tr>
    <td width="40%" height="0"><font size="2">Basic and diluted net loss</font></td>
    <td width="2%" align="right" height="0" style="border-bottom: 1px none rgb(0,0,0)"><font
    size="2">$</font></td>
    <td width="13%" align="right" height="0" style="border-bottom: 2px double rgb(0,0,0)"><font
    size="2">(0.02)</font></td>
    <td width="2%" align="right" height="0" style="border-bottom: 1px none rgb(0,0,0)"></td>
    <td width="2%" align="right" height="0" style="border-bottom: 1px none rgb(0,0,0)"><font
    size="2">$</font></td>
    <td width="13%" align="right" height="0" style="border-bottom: 2px double rgb(0,0,0)"><font
    size="2">(0.02)</font></td>
    <td width="2%" align="right" height="0" style="border-bottom: 1px none rgb(0,0,0)"><font
    size="2">$</font></td>
    <td width="13%" align="right" height="0" style="border-bottom: 2px double rgb(0,0,0)"><font
    size="2">(0.05)</font></td>
    <td width="2%" height="0" align="right"><font size="2">$</font></td>
    <td width="13%" align="right" height="0" style="border-bottom: 2px double rgb(0,0,0)"><font
    size="2">(0.04)</font></td>
  </tr>
  <tr>
    <td width="40%" height="0"><font size="2">&nbsp; </font></td>
    <td width="2%" align="right" height="0"></td>
    <td width="13%" align="right" height="0"></td>
    <td width="2%" align="right" height="0"></td>
    <td width="2%" align="right" height="0"></td>
    <td width="13%" align="right" height="0"></td>
    <td width="2%" align="right" height="0"></td>
    <td width="13%" align="right" height="0"></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" align="right" height="0"></td>
  </tr>
  <tr>
    <td width="40%" height="0"><font size="2">Weighted average shares outstanding</font></td>
    <td width="2%" align="right" height="0"></td>
    <td width="13%" align="right" height="0"></td>
    <td width="2%" align="right" height="0"></td>
    <td width="2%" align="right" height="0"></td>
    <td width="13%" align="right" height="0"></td>
    <td width="2%" align="right" height="0"></td>
    <td width="13%" align="right" height="0"></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" align="right" height="0"></td>
  </tr>
  <tr>
    <td width="40%" height="1" bgcolor="#ccffcc"><font size="2">Basic and diluted</font></td>
    <td width="2%" align="right" bgcolor="#ccffcc" style="border-bottom: 2px none rgb(0,0,0)"
    height="1"></td>
    <td width="13%" align="right" bgcolor="#ccffcc"
    style="border-bottom: 2px double rgb(0,0,0)" height="1"><font size="2">524,200</font></td>
    <td width="2%" align="right" bgcolor="#ccffcc" style="border-bottom: 2px none rgb(0,0,0)"
    height="1"></td>
    <td width="2%" align="right" bgcolor="#ccffcc" style="border-bottom: 2px none rgb(0,0,0)"
    height="1"></td>
    <td width="13%" align="right" bgcolor="#ccffcc"
    style="border-bottom: 2px double rgb(0,0,0)" height="1"><font size="2">504,200</font></td>
    <td width="2%" align="right" bgcolor="#ccffcc" style="border-bottom: 2px none rgb(0,0,0)"
    height="1"></td>
    <td width="13%" align="right" bgcolor="#ccffcc"
    style="border-bottom: 2px double rgb(0,0,0)" height="1"><font size="2">524,200</font></td>
    <td width="2%" height="1" align="right" bgcolor="#ccffcc"></td>
    <td width="13%" align="right" bgcolor="#ccffcc"
    style="border-bottom: 2px double rgb(0,0,0)" height="1"><font size="2">504,200</font></td>
  </tr>
  <tr>
    <td width="100%" height="1" bgcolor="#FFFFFF" colspan="10"><font size="2">&nbsp; </font></td>
  </tr>
  <tr>
    <td width="100%" height="1" bgcolor="#FFFFFF" colspan="10"><font size="2">See notes to
    unaudited interim financial statements</font></td>
  </tr>
</table>
</div>

<p><br clear="all" style="page-break-before:always; mso-break-type:section-break">
</p>
<div>

<table cellSpacing="0" cellPadding="0" width="100%" border="0" height="419">
  <tr>
    <td width="101%" height="0" colspan="5" align="center" bgcolor="#ccffcc"><font size="2"><b>Peregrine
    Industries, Inc.</b></font></td>
  </tr>
  <tr>
    <td width="101%" height="0" colspan="5" align="center"><font size="2">Statement of Cash
    Flows</font></td>
  </tr>
  <tr>
    <td width="101%" height="0" colspan="5" align="center"><p align="left"><font size="1">&nbsp;&nbsp;
    &nbsp; </font></td>
  </tr>
  <tr>
    <td width="70%" height="0"></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" align="right" height="0"><font size="1"><strong>Six Months</strong></font></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" align="right" height="0"><font size="1"><strong>Six Months</strong></font></td>
  </tr>
  <tr>
    <td width="70%" height="0"></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" align="right" height="0"><font size="1"><strong>Ended</strong></font></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" align="right" height="0"><font size="1"><strong>Ended</strong></font></td>
  </tr>
  <tr>
    <td width="70%" height="0"></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" align="right" height="0"><font size="1"><strong>December 31, 2008</strong></font></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" align="right" height="0"><font size="1"><strong>December 31, 2007</strong></font></td>
  </tr>
  <tr>
    <td width="70%" height="0">&nbsp; </td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" align="right" style="border-bottom: 1px solid rgb(0,0,0)" height="0"><font
    size="1">(Unaudited)</font></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" align="right" style="border-bottom: 1px solid rgb(0,0,0)" height="0"><font
    size="1">(Unaudited)</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">Cash flows from operating activities:</font></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" height="0" align="right"></td>
    <td align="right" width="2%" height="0"></td>
    <td width="13%" height="0" align="right"></td>
  </tr>
  <tr>
    <td width="70%" height="0" bgcolor="#ccffcc"><font size="2">Net loss</font></td>
    <td width="2%" height="0" align="right" bgcolor="#ccffcc"><font size="2">$</font></td>
    <td width="13%" height="0" align="right" bgcolor="#ccffcc"><font size="2">(28,400)</font></td>
    <td align="right" width="2%" height="0" bgcolor="#ccffcc"><font size="2">$</font></td>
    <td width="13%" height="0" align="right" bgcolor="#ccffcc"><font size="2">(19,900)</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">Adjustments to reconcile net loss to cash used
    in operating activities:</font></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" height="0" align="right"></td>
    <td align="right" width="2%" height="0"></td>
    <td width="13%" height="0" align="right"></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">&nbsp;&nbsp; Fair value of services provided by
    related parties</font></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" height="0" align="right"><font size="2">24,000</font></td>
    <td align="right" width="2%" height="0"></td>
    <td width="13%" height="0" align="right"><font size="2">18,000</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">&nbsp;&nbsp; Expenses paid by related parties</font></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" height="0" align="right"><font size="2">2,500</font></td>
    <td align="right" width="2%" height="0"></td>
    <td width="13%" height="0" align="right"><font size="2">0</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">&nbsp;&nbsp; Increase (decrease) in accounts
    payable and accrued expenses</font></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" height="0" align="right" style="border-bottom: 1px solid rgb(0,0,0)"><font
    size="2">1,900</font></td>
    <td align="right" width="2%" height="0"></td>
    <td width="13%" height="0" align="right" style="border-bottom: 1px solid rgb(0,0,0)"><font
    size="2">1,900</font></td>
  </tr>
  <tr>
    <td width="70%" height="0" bgcolor="#ccffcc"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Cash
    flows used by operating activities</font></td>
    <td width="2%" height="0" bgcolor="#ccffcc" align="right"></td>
    <td width="13%" height="0" bgcolor="#ccffcc" align="right"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">0</font></td>
    <td style="BORDER-BOTTOM: rgb(0,0,0) 1px" align="right" width="2%" height="0"
    bgcolor="#ccffcc"></td>
    <td width="13%" height="0" bgcolor="#ccffcc" align="right"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">0</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">&nbsp; </font></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" height="0" align="right"></td>
    <td align="right" width="2%" height="0"></td>
    <td width="13%" height="0" align="right"></td>
  </tr>
  <tr>
    <td width="70%" height="0" bgcolor="#FFFFFF"><font size="2">Cash flows from investing
    activities:</font></td>
    <td width="2%" height="0" bgcolor="#FFFFFF" align="right"></td>
    <td width="13%" height="0" bgcolor="#FFFFFF" align="right"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">&nbsp; </font></td>
    <td align="right" width="2%" height="0" bgcolor="#FFFFFF"></td>
    <td width="13%" height="0" bgcolor="#FFFFFF" align="right"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">&nbsp; </font></td>
  </tr>
  <tr>
    <td width="70%" height="0" bgcolor="#ccffcc"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Cash
    used in investing activities</font></td>
    <td width="2%" height="0" bgcolor="#ccffcc" align="right"></td>
    <td width="13%" height="0" bgcolor="#ccffcc" align="right"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">0</font></td>
    <td align="right" width="2%" height="0" bgcolor="#ccffcc"></td>
    <td width="13%" height="0" bgcolor="#ccffcc" align="right"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">0</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">&nbsp;&nbsp; </font></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" height="0" align="right"></td>
    <td align="right" width="2%" height="0"></td>
    <td width="13%" height="0" align="right"></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">Cash flows from financing activities:</font></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" height="0" align="right"></td>
    <td align="right" width="2%" height="0"></td>
    <td width="13%" height="0" align="right"></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">&nbsp;&nbsp; Advances from related parties</font></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" height="0" align="right" style="border-bottom: 1px solid rgb(0,0,0)"><font
    size="2">0</font></td>
    <td align="right" width="2%" height="0"></td>
    <td width="13%" height="0" align="right" style="border-bottom: 1px solid rgb(0,0,0)"><font
    size="2">0</font></td>
  </tr>
  <tr>
    <td width="70%" height="0" bgcolor="#ccffcc"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Cash
    generated by financing activities</font></td>
    <td width="2%" height="0" bgcolor="#ccffcc" align="right"></td>
    <td width="13%" height="0" bgcolor="#ccffcc" align="right"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">0</font></td>
    <td align="right" width="2%" height="0" bgcolor="#ccffcc"></td>
    <td width="13%" height="0" bgcolor="#ccffcc" align="right"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">0</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">&nbsp; </font></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" height="0" align="right"></td>
    <td align="right" width="2%" height="0"></td>
    <td width="13%" height="0" align="right"></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Change in cash</font></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" height="0" align="right"><font size="2">0</font></td>
    <td align="right" width="2%" height="0"></td>
    <td width="13%" height="0" align="right"><font size="2">0</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">Cash - beginning of period</font></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" height="0" align="right" style="border-bottom: 1px solid rgb(0,0,0)"><font
    size="2">0</font></td>
    <td align="right" width="2%" height="0"></td>
    <td width="13%" height="0" align="right" style="border-bottom: 1px solid rgb(0,0,0)"><font
    size="2">0</font></td>
  </tr>
  <tr>
    <td width="70%" height="0" bgcolor="#ccffcc"><font size="2">Cash - end of period</font></td>
    <td width="2%" height="0" bgcolor="#ccffcc" align="right"><font size="2">$</font></td>
    <td width="13%" height="0" bgcolor="#ccffcc" align="right"
    style="border-bottom: 2px double rgb(0,0,0)"><font size="2">0</font></td>
    <td style="BORDER-BOTTOM: rgb(0,0,0) 2px" align="right" width="2%" height="0"
    bgcolor="#ccffcc"><font size="2">$</font></td>
    <td width="13%" height="0" bgcolor="#ccffcc" align="right"
    style="border-bottom: 2px double rgb(0,0,0)"><font size="2">0</font></td>
  </tr>
  <tr>
    <td width="100%" height="0" bgcolor="#FFFFFF" colspan="5"><font size="2">&nbsp; </font></td>
  </tr>
  <tr>
    <td width="100%" height="0" bgcolor="#FFFFFF" colspan="5"><font size="2">See notes to
    unaudited interim financial statements</font></td>
  </tr>
</table>
</div>

<p><br clear="all" style="page-break-before:always; mso-break-type:section-break">
</p>
<div><font size="2"><b>

<p ALIGN="center">PEREGRINE INDUSTRIES, INC.<br>
</b>Notes to Unaudited Interim Financial Statements</p>
<b>

<p>1. Basis of Presentation</p>
</b>

<p ALIGN="JUSTIFY">Peregrine Industries, Inc. (the &quot;Company&quot;) was formed on
October 1, 1995 for the purpose of manufacturing residential pool heaters. On March 29,
2004, the U.S. Bankruptcy Court confirmed the sale of the Peregrine corporate shell
entity. The accounts of the former subsidiaries were not included in the sale and have not
been carried forward.</p>

<p ALIGN="JUSTIFY">The Financial Statements presented herein have been prepared by us in
accordance with the accounting policies described in our June 30, 2008 Annual Report on
Form 10-K and should be read in conjunction with the Notes to Financial Statements which
appear in that report.</p>

<p ALIGN="JUSTIFY">The preparation of these financial statements in conformity with
accounting principles generally accepted in the United States requires us to make
estimates and judgments that affect the reported amounts of assets, liabilities, revenues
and expenses, and related disclosure of contingent assets and liabilities. On an on going
basis, we evaluate our estimates, including those related intangible assets, income taxes,
insurance obligations and contingencies and litigation. We base our estimates on
historical experience and on various other assumptions that are believed to be reasonable
under the circumstances, the results of which form the basis for making judgments about
the carrying values of assets and liabilities that are not readily apparent from other
resources. Actual results may differ from these estimates under different assumptions or
conditions.</p>

<p ALIGN="JUSTIFY">In the opinion of management, the information furnished in this Form
10-Q reflects all adjustments necessary for a fair statement of the financial position and
results of operations and cash flows as of and for the three and six-month periods ended
December 31, 2008 and 2007. All such adjustments are of a normal recurring nature. The
Financial Statements have been prepared in accordance with the instructions to Form 10-Q
and therefore do not include some information and notes necessary to conform with annual
reporting requirements.</p>
<b>

<p ALIGN="JUSTIFY">&#147;Fresh Start&#148; Accounting:</b> On September 4, 2002 all assets
were transferred to the chapter 7 trustee in settlement of all outstanding corporate
obligations. We adopted &quot;fresh-start&quot; accounting as of September 5, 2002 in
accordance with procedures specified by AICPA Statement of Position (&quot;SOP&quot;) No.
90-7, &quot;Financial Reporting by Entities in Reorganization under the Bankruptcy
Code.&quot;</p>

<p ALIGN="JUSTIFY">On March 29, 2004, the U.S. Bankruptcy Court for the Southern District
of Florida confirmed the order previously granted on March 15, 2004 for the sale of
Peregrine as a shell entity. All results for periods including and subsequent to September
5, 2002 are referred to as those of the &quot;Successor Company&quot;.</p>

<p ALIGN="JUSTIFY">In accordance with SOP No. 90-7, the reorganized value of the Company
was allocated to the Company's assets based on procedures specified by SFAS No. 141,
&quot;Business Combinations&quot;. Each liability existing at the plan sale date, other
than deferred taxes, was stated at the present value of the amounts to be paid at
appropriate market rates. It was determined that the Company's reorganization value
computed immediately before September 5, 2002 was $0. We adopted &quot;fresh-start&quot;
accounting because holders of existing voting shares immediately before filing and
confirmation of the sale received less than 50% of the voting shares of the emerging
entity and its reorganization value is less than its post-petition liabilities and allowed
claims.</p>

<p ALIGN="JUSTIFY">The accounts of the former subsidiaries were not included in the
bankruptcy sale and have not been carried forward.</p>
<b>

<p ALIGN="JUSTIFY">Change of Control:</b> On February 12, 2004, the Trustee for Peregrine
and Park Avenue Group, Inc. entered into a contract resulting in a change in control of
Peregrine. On March 15, 2004, the Bankruptcy Court granted an order approving the contract
and finding that Park Avenue Group is a good faith purchaser within the meaning of 11 USC
Section 363(m). On March 29, 2004, the U.S. Bankruptcy Court for the Southern District of
Florida confirmed the order previously granted on March 15, 2004.</p>

<p ALIGN="JUSTIFY">The confirmed Court order provided that the existing officers and
directors were deemed removed from office and also authorized the following: (i)
the&nbsp;appointment of new members to the board of directors; (ii) the amendment of the
Article of Incorporation to increase the number of authorized shares to 100,000,000
shares; (iii) the issuance of up to 30,000,000 shares of common stock, par value $0.0001
to the new management;(iv) the authority to implement a reverse split of the issued and
outstanding shares in a ratio to be determined by the board of directors; (v) the
cancellation and extinguishment of all common share conversion rights of any kind,
including without limitation, warrants, options, convertible bonds, other convertible debt
instruments and convertible preferred stock; and (vi) the cancellation and extinguishment
of all preferred shares of every series and accompanying conversion rights of any kind.</p>
<b>

<p ALIGN="JUSTIFY">2. Earnings/Loss Per Share</p>
</b>

<p ALIGN="JUSTIFY">Basic earnings per share is computed by dividing income available to
common shareholders (the numerator) by the weighted-average number of common shares
outstanding (the denominator) for the period. Diluted earnings per share assume that any
dilutive convertible securities outstanding were converted, with related preferred stock
dividend requirements and outstanding common shares adjusted accordingly. It also assumes
that outstanding common shares were increased by shares issuable upon exercise of those
stock options for which market price exceeds the exercise price, less shares which could
have been purchased by us with the related proceeds. In periods of losses, diluted loss
per share is computed on the same basis as basic loss per share as the inclusion of any
other potential shares outstanding would be anti-dilutive.</p>
<b>

<p>3. Related Party Transactions not Disclosed Elsewhere: </p>
</b><i>

<p ALIGN="JUSTIFY">Due related parties and Fair value of services: </i>The principal
stockholders and management provided, without cost to the Company, services and office
space. The total of these expenses was $24,000 for the six-month period ended December 31,
2008, and was $19,900 for the six-month period ended September 30, 2007. These expenses
were reflected in the statement of operations as general and administrative expenses.</p>
<b>

<p ALIGN="JUSTIFY">4. New Accounting Standards</p>
</b>

<p ALIGN="JUSTIFY">In December 2007, the FASB issued SFAS No. 141(R), &#147;Business
Combinations&#148;. This Statement replaces SFAS No. 141, Business Combinations. This
Statement retains the fundamental requirements in Statement 141 that the acquisition
method of accounting (which Statement 141 called the purchase method) be used for all
business combinations and for an acquirer to be identified for each business combination.
This Statement also establishes principles and requirements for how the acquirer: a)
recognizes and measures in its financial statements the identifiable assets acquired, the
liabilities assumed, and any noncontrolling interest in the acquiree; b) recognizes and
measures the goodwill acquired in the business combination or a gain from a bargain
purchase and c) determines what information to disclose to enable users of the financial
statements to evaluate the nature and financial effects of the business combination. SFAS
No. 141(R) will apply prospectively to business combinations for which the acquisition
date is on or after Company&#146;s fiscal year beginning October 1, 2009. While the
Company has not yet evaluated this statement for the impact, if any, that SFAS No. 141(R)
will have on its consolidated financial statements, the Company will be required to
expense costs related to any acquisitions after September 30, 2009</p>

<p ALIGN="JUSTIFY">In May 2008, the FASB issued SFAS No. 162, &#147;<i>The Hierarchy of
Generally Accepted Accounting Principles.</i>&#148; SFAS 162 identifies the sources of
accounting principles and the framework for selecting the principles used in the
preparation of financial statements of nongovernmental entities that are presented in
conformity with generally accepted accounting principles (GAAP) in the United States. SFAS
162 is effective 60 days following the SEC&#146;s approval of the Public Company
Accounting Oversight Board amendments to AU Section 411, <i>The Meaning of Present Fairly
in Conformity With Generally Accepted Accounting Principles</i>. Our Company is currently
evaluating the impact of SFAS 162 on its financial statements but does not expect it to
have a material effect.</p>
</font></div>
</body>
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pgid
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________
FORM 10-Q
___________________
ý
QUARTERLY REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended
December 31, 2008
OR
¨
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: 0-27511
PEREGRINE
INDUSTRIES, INC.
(Exact Name Of Registrant
As Specified In Its Charter)
Florida
65-0611007
(State of Incorporation)
(I.R.S. Employer
    Identification No.)
40
    Wall Street, 28th Floor
10005
(Address of Principal
    Executive Offices)
(ZIP Code)
Registrant's
Telephone Number, Including Area Code: (212) 400-7198
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 preceding 12 months (or for
such shorter period that the registrant was required to file such reports), and (2) has
been subject to such filing requirements for the past 90 days. Yes
x
No
¨
Indicate by check mark whether the registrant is a shell company (as
defined in Rule 12b-2 of the Exchange Act).
Yes
x
No
¨
Indicate by check
mark whether the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated filer
(as
defined in Rule 12b-2 of the Exchange Act)
or a smaller
reporting company
.
Large accelerated
    filer
¨
Accelerated filer
¨
Non-Accelerated
    filer
¨
Smaller reporting
    company
x
At December 31,
2008, the Registrant had 524,200 shares of common stock outstanding.
TABLE OF CONTENTS
Item
Description
Page
PART I - FINANCIAL
    INFORMATION
ITEM 1.
FINANCIAL
    STATEMENTS.
3
ITEM 2.
MANAGEMENT'S
    DISCUSSION AND ANALYSIS AND PLAN OF OPERATION.
3
ITEM 3.
QUANTITATIVE
    AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
6
ITEM 4.
CONTROLS
    AND PROCEDURES.
6
PART II - OTHER
    INFORMATION
ITEM 1.
LEGAL
    PROCEEDINGS.
6
ITEM 1A.
RISK FACTORS
6
ITEM 2.
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF
    PROCEEDS
6
ITEM 3.
DEFAULT
    UPON SENIOR SECURITIES.
6
ITEM 4.
SUBMISSION
    OF MATERS TO A VOTE OF SECURITY HOLDERS.
6
ITEM 5.
OTHER
    INFORMATION.
6
ITEM 6.
EXHIBITS
    AND REPORTS ON FORM 8-K.
6
PART I - FINANCIAL INFORMATION
ITEM
1. FINANCIAL STATEMENTS
Back to
Table of Contents
The Registrant's unaudited interim financial statements
are attached hereto.
Unaudited
Interim Financial Statements
ITEM 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS AND PLAN OF OPERATION
Back to Table of
Contents
Some of the statements contained in this quarterly
report of Peregrine Industries, Inc. (hereinafter the "Company", "We"
or the "Registrant") discuss future expectations, contain projections of our
plan of operation or financial condition or state other forward-looking information.
Forward-looking statements give our current expectations or forecasts of future events.
You can identify these statements by the fact that they do not relate strictly to
historical or current facts. They use of words such as "anticipate,"
"estimate," "expect," "project," "intend,"
"plan," "believe," and other words and terms of similar meaning in
connection with any discussion of future operating or financial performance. From time to
time, we also may provide forward-looking statements in other materials we release to the
public.
Plan of Operation
We have no present operations or
revenues and our current activities are related to seeking new business opportunities,
including seeking an acquisition or merger with an operating company. The Registrant does
not intend to limit itself to a particular industry and has not established any particular
criteria upon which it shall consider and proceed with a business opportunity.
If the Company seeks to acquire another
business or pursue a business opportunity, management would have substantial flexibility
in identifying and selecting a prospective business. Registrant would not be obligated nor
does management intend to seek pre-approval by our shareholders. Under the laws of the
State of Florida, the consent of holders of a majority of the issued and outstanding
shares, acting without a shareholders meeting, can approve an acquisition.
The Registrant is entirely dependent on
the judgment of management in connection with the selection process for a target company.
In evaluating a prospective business opportunity, we would consider, among other factors,
the following: (i) costs associated with effecting a transaction; (ii) equity interest in
and opportunity to control the prospective candidate; (iii) growth potential of the target
business; (iv) experience and skill of management and availability of additional
personnel; (v) necessary capital requirements; (vi) the prospective candidate's
competitive position; (vii) stage of development of the business opportunity; (viii) the
market acceptance of the business its products or services; (ix) the availability of
audited financial statements of the potential business opportunity; and (x) the regulatory
environment that may be applicable to any prospective business opportunity.
The foregoing criteria are not intended
to be exhaustive and there may be other criteria that management may deemed relevant. In
connection with an evaluation of a prospective or potential business opportunity,
management may be expected to conduct a due diligence review.
We had operating expenses of $12,950 and
$9,950 during the three-month periods ended December 31, 2008 and 2007, respectively,
consisting mainly of accounting fees, professional fees and general and administrative
expenses. The Company does not expect its operating expenses to increase significantly
until it starts to pursue a new business opportunity or enters into a business
combination.
Liquidity and Capital Resources
We are dependent upon interim funding
provided by management and/or related parties to pay professional fees and other expenses.
We have no written finance agreement with management and/or related parties to provide any
continued funding.
At December 31, 2008, we had no assets
and $139,226 in liabilities.
As
part of our intent to seek new business opportunities, we may determine to seek to raise
funds from the sale of equity or debt securities. We have no agreements to issue any debt
or equity securities and cannot predict whether equity or debt financing will become
available at terms acceptable to us, if at all.
We anticipate that in connection with
the commencement of a new business opportunity or consummation of a business combination,
we will issue a substantial number of additional restricted shares or other securities. If
such additional securities are issued, our shareholders will experience a dilution in
their ownership interest in the Company. If a substantial number of shares are issued in
connection with a business combination, a change in control may be expected to occur.
There
are no limitations in our articles of incorporation on our ability to borrow funds or
raise funds through the issuance of restricted common stock to pursue new business
opportunities. Our limited resources and lack of operating history may make it difficult
to do borrow funds or raise capital. Our inability to borrow funds or raise funds through
the issuance of restricted common stock required to facilitate new business opportunities
may have a material adverse effect on our financial condition and future prospects.
ITEM 3.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Back to Table of
Contents
We have not entered
into, and do not expect to enter into, financial instruments for trading or hedging
purposes.
ITEM 4.
CONTROLS AND PROCEDURES
Back to Table of
Contents
Evaluation of Disclosure Controls and Procedures
Our Chief Executive Officer/Chief Financial Officer evaluated the effectiveness of the
design and operation of our disclosure controls and procedures (as such term is defined in
Rule 13a-15(e) under the Securities Exchange Act of 1934 (the "Exchange Act").
Disclosure controls and procedures are the controls and other procedures that we designed
to ensure that we record, process, summarize and report in a timely manner the information
we must disclose in reports that we file with or submit to the Securities and Exchange
Commission under the Exchange Act. Based on this evaluation, we have concluded that our
disclosure controls and procedures were effective as of the end of the period covered by
this report.
Changes in Internal Control Over Financial Reporting
There were no changes in our internal control over financial reporting or in other
factors identified in connection with the evaluation required by paragraph (d) of Exchange
Act Rules 13a-15 or 15d-15 that occurred during the quarter ended December 31, 2008 that
have materially affected, or are reasonably likely to materially affect, our internal
control over financial reporting.
PART II - OTHER INFORMATION
ITEM 1. LEGAL
PROCEEDINGS
Back to Table of
Contents
None.
ITEM 1A.
RISK FACTORS
Back to
Table of Contents
In addition to the other
information set forth in this report, you should carefully consider the factors discussed
in Part I, "Item 1. Description of Business, subheading Risk Factors" in
our Annual Report on Form 10-K for the year ended June 30, 2008, which could
materially affect our business, financial condition or future results. The risks described
in our Annual Report on Form 10-K are not the only risks facing our company.
Additional risks and uncertainties not currently known to us or that we currently deem to
be immaterial also may materially adversely affect our business, financial condition
and/or operating results.
ITEM 2.
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
Back to Table of
Contents
None.
ITEM
3. DEFAULTS UPON SENIOR SECURITIES
Back to Table of
Contents
None.
ITEM
4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Back to Table of
Contents
None.
ITEM
5. OTHER INFORMATION
Back to Table of
Contents
None.
ITEM
6. EXHIBITS
Back to Table of
Contents
(a) The following documents
are filed as exhibits to this report on Form 10-Q or incorporated by reference herein. Any
document incorporated by reference is identified by a parenthetical reference to the SEC
filing that included such document.
Exhibit
    No.
Description
31
Certification of President
    and CFO pursuant to Rule 13a-14(a) or 15d-14(a) of the Exchange Act pursuant to Section
    302 of the Sarbanes-Oxley Act of 2002.
32
Certification of President
    and CFO 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, this report has been signed below by
the following persons on behalf of the registrant and in the capacities and on the date
indicated.
/s/ Richard
Rubin
Richard Rubin
CEO, CFO and Chairman
Dated: February 12, 2009
Unaudited
Interim Financial Statements
Back to
Table of Contents
Peregrine Industries, Inc.
Balance
    Sheets
Decemebr
    31, 2008
June 30,
    2008
(Unaudited)
Assets
Current assets:
Cash
$
0
$
0
Total
    current assets
0
0
Other assets
0
0
Total Assets
$
0
$
0
Liabilities
    and Stockholders' Deficiency
Current liabilities:
Accounts payable -
    trade
$
15,226
$
13,326
Advances from and
    accruals due to related parties
124,000
97,500
Total current liabilities
139,226
110,826
Stockholders' deficiency:
Preferred stock, 5,000,000
    shares authorized, $0.0001 par value, none issued
-
-
Common stock, 100,000,000
    shares authorized, $0.0001 par value;
524,200 issued and outstanding at December 31, 2008; and
524,200 issued and outstanding at June 30, 2008
52
52
Additional paid in
    capital
157,832
157,832
Accumulated
    deficit
(297,110)
(268,710)
Total
    stockholders' deficiency
(139,226)
(110,826)
Total liabilities and stockholders' deficiency
$
0
$
0
See
    notes to unaudited interim financial statements
Peregrine
    Industries, Inc.
Statements of
    Operations
Three Months
Three Months
Six Months
Six Months
Ended
Ended
Ended
Ended
December 31, 2008
December 31, 2007
December 31, 2008
December 31, 2007
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Revenue
$
0
$
0
$
0
$
0
Costs and expenses:
General and administrative
12,950
9,950
15,450
9,950
Total costs and expenses
12,950
9,950
15,450
9,950
Net loss
(12,950)
$
(9,950)
$
(15,450)
$
(9,950)
Basic and diluted per share amounts:
Basic and diluted net loss
$
(0.02)
$
(0.02)
$
(0.05)
$
(0.04)
Weighted average shares outstanding
Basic and diluted
524,200
504,200
524,200
504,200
See notes to
    unaudited interim financial statements
Peregrine
    Industries, Inc.
Statement of Cash
    Flows
Six Months
Six Months
Ended
Ended
December 31, 2008
December 31, 2007
(Unaudited)
(Unaudited)
Cash flows from operating activities:
Net loss
$
(28,400)
$
(19,900)
Adjustments to reconcile net loss to cash used
    in operating activities:
Fair value of services provided by
    related parties
24,000
18,000
Expenses paid by related parties
2,500
0
Increase (decrease) in accounts
    payable and accrued expenses
1,900
1,900
Cash
    flows used by operating activities
0
0
Cash flows from investing
    activities:
Cash
    used in investing activities
0
0
Cash flows from financing activities:
Advances from related parties
0
0
Cash
    generated by financing activities
0
0
Change in cash
0
0
Cash - beginning of period
0
0
Cash - end of period
$
0
$
0
See notes to
    unaudited interim financial statements
PEREGRINE INDUSTRIES, INC.
Notes to Unaudited Interim Financial Statements
1. Basis of Presentation
Peregrine Industries, Inc. (the "Company") was formed on
October 1, 1995 for the purpose of manufacturing residential pool heaters. On March 29,
2004, the U.S. Bankruptcy Court confirmed the sale of the Peregrine corporate shell
entity. The accounts of the former subsidiaries were not included in the sale and have not
been carried forward.
The Financial Statements presented herein have been prepared by us in
accordance with the accounting policies described in our June 30, 2008 Annual Report on
Form 10-K and should be read in conjunction with the Notes to Financial Statements which
appear in that report.
The preparation of these financial statements in conformity with
accounting principles generally accepted in the United States requires us to make
estimates and judgments that affect the reported amounts of assets, liabilities, revenues
and expenses, and related disclosure of contingent assets and liabilities. On an on going
basis, we evaluate our estimates, including those related intangible assets, income taxes,
insurance obligations and contingencies and litigation. We base our estimates on
historical experience and on various other assumptions that are believed to be reasonable
under the circumstances, the results of which form the basis for making judgments about
the carrying values of assets and liabilities that are not readily apparent from other
resources. Actual results may differ from these estimates under different assumptions or
conditions.
In the opinion of management, the information furnished in this Form
10-Q reflects all adjustments necessary for a fair statement of the financial position and
results of operations and cash flows as of and for the three and six-month periods ended
December 31, 2008 and 2007. All such adjustments are of a normal recurring nature. The
Financial Statements have been prepared in accordance with the instructions to Form 10-Q
and therefore do not include some information and notes necessary to conform with annual
reporting requirements.
"Fresh Start" Accounting:
On September 4, 2002 all assets
were transferred to the chapter 7 trustee in settlement of all outstanding corporate
obligations. We adopted "fresh-start" accounting as of September 5, 2002 in
accordance with procedures specified by AICPA Statement of Position ("SOP") No.
90-7, "Financial Reporting by Entities in Reorganization under the Bankruptcy
Code."
On March 29, 2004, the U.S. Bankruptcy Court for the Southern District
of Florida confirmed the order previously granted on March 15, 2004 for the sale of
Peregrine as a shell entity. All results for periods including and subsequent to September
5, 2002 are referred to as those of the "Successor Company".
In accordance with SOP No. 90-7, the reorganized value of the Company
was allocated to the Company's assets based on procedures specified by SFAS No. 141,
"Business Combinations". Each liability existing at the plan sale date, other
than deferred taxes, was stated at the present value of the amounts to be paid at
appropriate market rates. It was determined that the Company's reorganization value
computed immediately before September 5, 2002 was $0. We adopted "fresh-start"
accounting because holders of existing voting shares immediately before filing and
confirmation of the sale received less than 50% of the voting shares of the emerging
entity and its reorganization value is less than its post-petition liabilities and allowed
claims.
The accounts of the former subsidiaries were not included in the
bankruptcy sale and have not been carried forward.
Change of Control:
On February 12, 2004, the Trustee for Peregrine
and Park Avenue Group, Inc. entered into a contract resulting in a change in control of
Peregrine. On March 15, 2004, the Bankruptcy Court granted an order approving the contract
and finding that Park Avenue Group is a good faith purchaser within the meaning of 11 USC
Section 363(m). On March 29, 2004, the U.S. Bankruptcy Court for the Southern District of
Florida confirmed the order previously granted on March 15, 2004.
The confirmed Court order provided that the existing officers and
directors were deemed removed from office and also authorized the following: (i)
the appointment of new members to the board of directors; (ii) the amendment of the
Article of Incorporation to increase the number of authorized shares to 100,000,000
shares; (iii) the issuance of up to 30,000,000 shares of common stock, par value $0.0001
to the new management;(iv) the authority to implement a reverse split of the issued and
outstanding shares in a ratio to be determined by the board of directors; (v) the
cancellation and extinguishment of all common share conversion rights of any kind,
including without limitation, warrants, options, convertible bonds, other convertible debt
instruments and convertible preferred stock; and (vi) the cancellation and extinguishment
of all preferred shares of every series and accompanying conversion rights of any kind.
2. Earnings/Loss Per Share
Basic earnings per share is computed by dividing income available to
common shareholders (the numerator) by the weighted-average number of common shares
outstanding (the denominator) for the period. Diluted earnings per share assume that any
dilutive convertible securities outstanding were converted, with related preferred stock
dividend requirements and outstanding common shares adjusted accordingly. It also assumes
that outstanding common shares were increased by shares issuable upon exercise of those
stock options for which market price exceeds the exercise price, less shares which could
have been purchased by us with the related proceeds. In periods of losses, diluted loss
per share is computed on the same basis as basic loss per share as the inclusion of any
other potential shares outstanding would be anti-dilutive.
3. Related Party Transactions not Disclosed Elsewhere:
Due related parties and Fair value of services:
The principal
stockholders and management provided, without cost to the Company, services and office
space. The total of these expenses was $24,000 for the six-month period ended December 31,
2008, and was $19,900 for the six-month period ended September 30, 2007. These expenses
were reflected in the statement of operations as general and administrative expenses.
4. New Accounting Standards
In December 2007, the FASB issued SFAS No. 141(R), "Business
Combinations". This Statement replaces SFAS No. 141, Business Combinations. This
Statement retains the fundamental requirements in Statement 141 that the acquisition
method of accounting (which Statement 141 called the purchase method) be used for all
business combinations and for an acquirer to be identified for each business combination.
This Statement also establishes principles and requirements for how the acquirer: a)
recognizes and measures in its financial statements the identifiable assets acquired, the
liabilities assumed, and any noncontrolling interest in the acquiree; b) recognizes and
measures the goodwill acquired in the business combination or a gain from a bargain
purchase and c) determines what information to disclose to enable users of the financial
statements to evaluate the nature and financial effects of the business combination. SFAS
No. 141(R) will apply prospectively to business combinations for which the acquisition
date is on or after Company's fiscal year beginning October 1, 2009. While the
Company has not yet evaluated this statement for the impact, if any, that SFAS No. 141(R)
will have on its consolidated financial statements, the Company will be required to
expense costs related to any acquisitions after September 30, 2009
In May 2008, the FASB issued SFAS No. 162, "
The Hierarchy of
Generally Accepted Accounting Principles.
" SFAS 162 identifies the sources of
accounting principles and the framework for selecting the principles used in the
preparation of financial statements of nongovernmental entities that are presented in
conformity with generally accepted accounting principles (GAAP) in the United States. SFAS
162 is effective 60 days following the SEC's approval of the Public Company
Accounting Oversight Board amendments to AU Section 411,
The Meaning of Present Fairly
in Conformity With Generally Accepted Accounting Principles
. Our Company is currently
evaluating the impact of SFAS 162 on its financial statements but does not expect it to
have a material effect.