UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
 
FORM 10-Q
 
(Mark One)

[X]QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
 
For the Quarterly Period Ended June 30, 20082009
 
[  ]
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
For the transition period from ______________ to ________________


For the transition period from ______________ to ________________

Commission file number 0-28315

LUMONALL, INC.
 (Exact Name of Small Business Issuer as Specified in Its Charter)
 
Nevada84-1517404
(State or Other Jurisdiction of Incorporation) (I.R.S. Employer Identification No.)

3565 King Road, Suite 102
King City, Ontario, L7B 1M3, Canada
(Address of Principal Executive Offices)

(905) 833-2753833-9845
(Issuer’s Telephone Number, Including Area Code)
N/A
(Former Name, Former Address and Former Fiscal Year,
if Changed Since Last Report)

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

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
 
Large accelerated filer    
[   ]
Accelerated filerfile
[   ]
Non-accelerated filer     
[   ] (Do not check if a smaller reporting company)
Smaller reporting company           [X]
[X ]
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes [  ] No [X]
 
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:
 
The number of shares of common stock outstanding as of August 8, 2008:  125,429,056




11, 2009: 136,659,671

 
 

 





Lumonall, Inc.




INDEX



PART IFinancial Information 
   
Item 1.Condensed Financial Statements (unaudited) 
 Sheets3
 4
 5
 6
 7
   
Item 2.13
   
Item 3.1715
   
Item 4.1715
   
PART II.Other Information 
   
Item 1.1817
   
Item 2.1817
   
Item 3.1817
   
Item 4.1817
   
Item 5.1817
   
Item 6.and Reports on Form 8-K      17
Signatures
18
  
19

 

2





PART I. Financial Information
 

Item 1.  Condensed Financial Statements

Lumonall, Inc.LUMONALL, INC.
Condensed Balance SheetCONDENSED BALANCE SHEETS
 (Stated in US dollars)

  
June 30, 2008
(UNAUDITED)
  March 31, 2008 
ASSETS      
       
Current Assets:      
Cash and cash equivalents  $364   $9,335 
Accounts receivable  58,300   27,843 
Total current assets  58,664   37,178 
         
TOTAL ASSETS  $58,664   $37,178 
         
LIABILITIES AND STOCKHOLDERS’ DEFICIENCY        
         
Current Liabilities:        
Accounts payable and accrued liabilities  296,878   273,919 
Due to related parties (Note 3)
  616,254   418,994 
Deposits  209,693   221,131 
Unissued share liability (Note 4)
  4,368   149,358 
Total current liabilities  1,127,193   1,063,402 
         
Stockholders’ deficiency        
Preferred stock, $0.001 par value, 5,000,000 shares authorized, No shares issued and outstanding  -   - 
Common stock, $0.001 par value, 200,000,000 shares authorized, 125,429,056 and 114,615,925 shares issued and outstanding, respectively  125,429   114,616 
Additional paid-in capital  2,930,532   2,723,230 
Accumulated deficit  (4,124,490)  (3,864,070)
Total stockholders’ deficiency  (1,068,529)  (1,026,224)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIENCY  $58,664   $37,178 
  
June 30,
2009
(UNAUDITED)
  March 31, 2009 
ASSETS 
Current assets      
Cash $-  $201 
Accounts receivable, net  5,152   4,868 
Prepaid expenses  -   938 
Inventory  122,602   123,441 
Total current assets  127,754   129,448 
         
         
Total assets $127,754  $129,448 
         

SeeLIABILITIES
       
Current liabilities      
Bank overdraft $3,213  $- 
Accounts payable and accrued liabilities  386,414   377,863 
Due to related parties (Note 3)  965,811   809,179 
Deposits (Note 4)  121,367   121,367 
Total current liabilities $1,476,805  $1,308,409 
         

STOCKHOLDERS’ DEFICIENCY
       
Preferred stock, $0.001 par value; 5,000,000
 shares authorized, no shares issued and outstanding
  -   - 
Common stock, $0.001 par value; 200,000,000 shares
 authorized, 136,659,671 shares issued and outstanding (March 31, 2009: 126,659,671)
  136,660   126,660 
Common stock units subscribed (Note 5 )  -   300,000 
Additional paid-in capital  3,242,419   2,952,419 
Accumulated deficit  (4,728,130)  (4,558,040)
Total stockholders’ deficiency  (1,349,051)  (1,178,961)
         
Total liabilities and stockholders’ deficiency $127,754  $129,448 
         



The accompanying notes toare an integral part of these financial statements.statements

3



 Lumonall, Inc.LUMONALL, INC.
Condensed Statements of OperationsCONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)




 
Three months ended
June 30,
  
Three months ended
June 30,
 
 2008  2007  2009  2008 
              
Revenues $76,208  $-  $3,970  $76,208 
                
Cost of sales  60,420   -   2,170   60,420 
Gross profit  15,788   -   1,800   15,788 
                
Operating expenses:                
Management fees  95,288   60,000   53,117   95,288 
Office and general  68,319   152,290   41,364   67,233 
Professional and consulting  99,797   241,431   11,449   99,797 
Amortization  -   5,000 
Total operating expenses  263,404   458,721  $105,930  $262,318 
                
Net loss before other expenses and income taxes  (247,616)  (458,721)  (104,130)  (246,530)
                
Other expenses                
Share of loss of equity accounted investee  -   623 
Interest expense  12,804   -   8,165   12,804 
Foreign exchange loss  57,795   1,086 
Total other expenses  12,804   623  $65,960  $13,890 
                
Net loss before income taxes  (260,420)  (459,344)  (170,090)  (260,420)
                
Provision for income taxes  -   -   -   - 
                
Net loss $(260,420) $(459,344)  (170,090)  (260,420)
                
Weighted average number of common shares outstanding – Basic and diluted  122,472,491   95,094,357   134,993,004   122,472,491 
Loss per share of common stock - Basic and diluted $(0.002) $(0.005) $(0.001) $(0.002)

See

The accompanying notes toare an integral part of these financial statements.statements

4



Lumonall, Inc.
Condensed Statement of Change in Stockholders’ DeficiencyLUMONALL, INC.
MarchCONDENSED STATEMENT OF CHANGES
IN STOCKHOLDERS’ DEFICIENCY
MARCH 31, 2008 to June2009 TO JUNE 30, 20082009
(UNAUDITED)

  Common Stock          
  Shares  Amount  
Additional
Paid-in
Capital
  
Accumulated
Income (Deficit)
  
Total
Stockholders’
Equity/
 
                
Balance, March 31, 2008  114,615,925   $114,616   2,723,230   (3,864,070)  (1,026,224)
                     
Issuance of common stock pursuant to private placement  1,400,000   1,400   68,600   -   70,000 
                     
Issuance of common stock pursuant to settlement with related party  9,100,000   9,100   123,390   -   132,490 
                     
Issuance of common stock for consulting services  313,131   313   15,312   -   15,625 
                     
Net loss for the period  -   -   -   (260,420)  (260,420)
 
Balance, June 30, 2008
  125,429,056   $125,429   2,930,532   (4,124,490)  (1,068,529)


  Common Stock            
  Shares  Par Value Amount  Additional Paid – In Capital  Common Stock Subscribed  Accumulated (Deficit)  Total 
                   
Balance, March 31, 2009  126,659,671  $126,660  $2,952,419  $300,000  $(4,558,040) $(1,178,961)
                         
Issuance of common stock pursuant to private placement  10,000,000   10,000   290,000   (300,000)  -   - 
                         
Net loss for period ended June 30, 2009  -   -   -   -   (170,090)  (170,090)
                         
Balance, June 30, 2009  136,659,671  $136,660  $3,242,419  $-  $(4,728,130) $(1,349,051)
                         


See



The accompanying notes toare an integral part of these financial statements.statements

5


Lumonall, Inc.LUMONALL, INC.
Condensed Statements of Cash FlowsCONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)

  
 Three Months Ended
June 30,
 
  2008  2007 
Net cash used in operations      
Net loss  $(260,420)  $(459,344)
Adjustments to reconcile net loss
to net cash used in operating activities:
        
Amortization  -   5,000 
Share of loss of equity accounted investee  -   623 
Common stock for consulting services provided  -   135,000 
Changes in operating assets and liabilities:        
Accounts receivable  (30,457)  - 
Accounts payable and accrued liabilities  26,083   (10,389)
Deposits  (11,438)  - 
Net cash used in operating activities  (276,232)  (329,110)
 
Cash flows provided by financing activities:
        
Proceeds from the Issuance of common stock  70,000   634,000 
Proceeds from (payments to) related parties  197,261   (258,964)
Notes payable – related party  -   (25,000)
Net cash provided by financing activities:  267,261   350,036 
         
         
Increase (decrease) in cash  (8,971)  20,926 
Cash,  beginning of period
  9,335   1,067 
Cash,  end of period
  $364   $21,993 
  
Three months ended
June 30,
 
  2009  2008 
       
Net cash used in operations      
Net loss $(170,090) $(260,420)
Adjustments to reconcile net loss
to net cash used in operating activities:
        
         
Changes in operating assets and liabilities:        
Accounts receivable  (284)  (30,457)
Accounts payable and accrued liabilities  8,551   26,083 
Inventory  839   - 
Prepaid expenses  938   - 
Deposits  -   (11,438)
Net cash used in operating activities  (160,046)  (276,232)
 
Cash flows provided by financing activities:
        
Proceeds from the Issuance of common stock  -   70,000 
Proceeds from related parties  156,632   197,261 
Bank overdraft  3,213   - 
Net cash provided by financing activities:  159,845   267,261 
         
         
Increase (decrease) in cash  (201)  (8,971)
Cash,  beginning of period
  201   9,335 
Cash,  end of period
 $-  $364 
         



Non cash financing activities:

During the three month period ended June 30, 2008,2009, the Company:

Issued 313,131 common shares valued at $15,625 for consulting services.
1.Issued 10,000,000 common shares valued at $300,000 pursuant to common stock units subscribed during the fiscal period ended March 31, 2009.
Issued 9,100,000 common shares valued at $132,490 pursuant to a settlement with a related party.

During the three month period ended June 30, 2007,2008, the Company:

Issued 2,700,000 common shares valued at $135,000
1.Issued 313,131 common shares valued at $15,625 for consulting services.
Issued 2,450,000 common shares valued at $35,770 for debt forgiveness.
2.Issued 9,100,000 common shares valued at $132,490 pursuant to a settlement with a related party.


See
The accompanying notes toare an integral part of these financial statements.statements

6

LUMONALL, INC.
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2009
(UNAUDITED)


Lumonall, Inc.
Notes to the Condensed Financial Statements
June 30, 2008
(Unaudited)
Note 1 – Description of Business and Basis of Presentation and business operations

BasisGoing concern basis of presentation – Going concern

The financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the liquidation of liabilities in the ordinary course of business.  As shown in the accompanying financial statements, we had assets of $58,664,the Company has a working capital deficit of $1,068,529$1,349,051 and an accumulated deficit of $4,124,490$4,728,130 at June 30, 2008.2009.  As a result, substantial doubt exists about ourthe Company’s ability to continue to fund future operations using its existing resources.

InFor the past ourthree month period ended June 30, 2009, the Company’s operations were substantially funded through private placement of common equity, the sale of certain assets and loans fromby related parties. Although the amounts due to related parties are reflected as current liabilities, there are no specific repayment terms.  In order to ensure the success of the new business, wethe Company will have to raise additional financing to satisfy existing liabilities and to provide the necessary funding for future operations.

The Company heavily relies upon loans from related parties, specifically Newlook Industries Corp. (“Newlook”), to further provide capital contributions. As at June 30, 2009 the Company was indebted to Newlook in the amount of $644,741.

Newlook is an investment and merchant banking enterprise focused on the development of its technology investments. Newlook’s investments have suffered due to unforeseen events and the global financial crisis. Newlook may not be able to provide additional capital over the next year to the Company in order to satisfy existing liabilities and make further capital contributions. Failure to obtain such capital could adversely impact the Company’s operations

The accompanying condensed unaudited financial statements of Lumonall, Inc. (the “Company”) have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Item 310(b)Article 10 of Regulation S-B.S-X. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management of the Company, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three month period ended June 30, 20082009 are not necessarily indicative of the results that may be expected for the year ending March 31, 2009.2010. For further information, refer to the financial statements and footnotes thereto included in the Company’s annual report on Form 10-KSB10-K for the year ended March 31, 2008.2009.

Business operationsSubsequent events were evaluated through August 12, 2009, the date the financial statements were issued.

Description of business

We were originally incorporated in the State of Colorado on May 1, 1996 as Grand Canyon Ventures Two, Incorporated. The Company changed its name to Azonic Engineering Corporation on September 23, 1998. On November 12, 1999 is was re-domiciled to the State of Nevada by merging into its wholly owned subsidiary Azonic Corporation, a Nevada corporation. On July 21, 2005 the Azonic Corporation changed its name to Midland International Corporation (referred to herein as “Midland,” the “Company,” Registrant” and “Issuer”).  During fiscal 2008, in

In February 2007, the Company adopted a new business plan to become a global supplier of innovative photo luminescent (PLM) products, with a concentration on Exit Signs and Safety Way Guidance Systems (SWGS).  In order to accurately reflect the nature of the Company’s business, the Company changed its name from Midland International Corporation to Lumonall, Inc.,  effective August 16, 2007.
 
DescriptionOur present business strategy and direction is to become a global leader in the development and distribution of Current Business Planphotoluminescent (PLM) emergency egress systems.

In February 2007, we adopted a new business plan.  To implement this new business plan we acquiredLumonall is committed to being at the licensing, manufacturingforefront of the development and distribution rightsof applied photo luminescent technologies. Through a network of industrial designers, manufacturing experts and sales professionals, Lumonall brings to a process for photo luminous pigmentsmarket products that leverage the inherent characteristics of photoluminescence to enhance safety, reduce energy consumption and production of foil used in manufacturing of photo luminous materials.improve the environment.

7

LUMONALL, INC.
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2009
(UNAUDITED)



Prolink North AmericaImproving emergency egress is currently the primary focus of the Company's efforts, providing failsafe systems that save lives and Prolink International AS Agreementsprevent injuries by providing critical illumination along exit pathways. These efforts are timed to coincide with changes to building codes in various markets that address the need for improved emergency egress. The systems Lumonall develops not only meet the standards established in these codes, but offer additional options that further promote safe egress.

In February 2007, we entered into a seriesConcurrent with these efforts, the Company is engaged in the development of agreements whereby we acquired the United States licensing, North American manufacturing and Canadian non-government distribution rightsapplications of photo luminous pigmentsluminescent technology for other markets including transportation industries, residential safety and production of foil used in manufacturing of photo luminous materials (“PLM”) and acquired a 30% interest in Prolink Property Rights AS, Norway (“PPRAS”), the holder of the world-wide intellectual property rights to the PLM products, for a cost of US$100,000. As part of the acquisition and investment we also became obligated to pay royalties of CAD$2.00 per exit sign to a maximum of CAD$1,000,000, 1% of all sales arising from other products utilizing PLM, issued a non-interest bearing note in the principal amount of US$100,000 in favor of Lumonall Canada Inc. Royalty payments also included $500,000 from future profits, payable as 15% of earnings before interest, taxes, depreciation and amortization (“EBITDA”) quarterly in arrears.     We also became obligated to provide Prolink North America a secured non-interest bearing demand loan to pay a maximum aggregate of $300,000 owed by Prolink North America Inc. to Prolink International AS, which balance is due upon demand.decorative uses.

The agreements form part of our new business plan involved with photo luminous products initially in the exit sign and safety way guidance systems sector.Recent Developments

In February 2007,Change in anticipation and as a condition precedent of a change in business direction we agreed to issue 35,000,000 shares of our common stock to a group of investors led by one of our officers and directors in exchange for management fee forgiveness by certain related parties.

In February 2008, the Company agreed to issue up to 10,000,000 shares of its common stock in full repayment of future royalties owed to Lumonall Canada Inc. (“LCI”).  In addition, the stock issued was in repayment of a note payable of $50,000, which was in default and an intercompany liability of $86,860 owed by Lumonall Inc. to Lumonall Canada Inc.

Pursuant to management’s recent initiatives and strategic partnerships the Company became able to procure a domestic source for photo luminescent signs and safety way guidance systems at a lower cost and more efficient route to market. Due to this new source, management felt that the carrying value of its licensing, manufacturing rights and investment as at March 31, 2008, was impaired and chose to write down their carrying value to $nil.

New Management

In April 2007, we appointed a new PresidentOn March 12, 2009, Mr. Michael Hetherman resigned as Chief Executive Officer and COO. Mike Hetherman, of the Willis Supply Group in Burlington, Ontario, Canada (near Toronto), has been in the Building materials Distribution business for over 20 years. In the mid 80's he started as a designer and in 1992 became partners in Willis Supply. Willis was established 40 years ago and has exclusive distribution of significant Building Material brands such as DuPont Corian®, DuPont Zodiaq®, and Arpa® Italian Laminates to name a few. Under his leadership Willis expanded from Ontario to across Canada and the Pacific Northwest USA. A few years ago, Mr. Hetherman took Willis to China and now sources many quality building products for the North American market. Today, he is sole owner of Willis, Chairman of the North American DDP (DuPont Distributor Partnership) and Chairman of the Exclusive DuPont Council.

On April 1, 2008, John Simmonds stepped down as CEO and Mike Hetherman was appointed CEO.  Mike Hetherman has served as a member of the boardBoard of Directors. Mr. Hetherman’s resignation was voluntary and did not involve a dispute or disagreement with the Company or any of its officers or directors with respect to the Company’s operations, policies or practices. At a meeting of the Board of Directors on March 16, 2009, the Board accepted the resignations of Mr. Michael Hetherman and also as President and COO.appointed Mr. John G. Simmonds, will continue to serve as Chairman of the Board of Directors and provide strategic guidanceformer CEO as interim CEO.

Review of Operations

In light of general economic conditions and supportthe Company’s current financial performance and financial position the Company is performing a complete analysis of the business including reviewing and reconsidering channels to market; sharing of gross margin with distributors and various other business processes. Management plans to take steps to restructure the Company.manner in which the Company operates.

8



Distributors

During the one-month period between May and JuneIn 2007, we signed a number of distributors to take this new PLM product to market. Those partners coveringcover a majority of North America,America; now include the Willis Group of Companies in Canada, and Designer Building Solutions, Butler-Johnson Corporation, Hallmark Building Supplies and Parksite, Inc. in the United States.

Industry Overview

Photoluminescent Products, Safety and Energy Conservation

Recent increases in “green” initiatives, tied with improved awareness regarding energy use and saving the environment, as well as the tragic events of 9/11, have all contributed to creating this market. Building safety alone provides significant business opportunity for our Exit Signs and Safety Way Guidance Systems, but the potential in energy saving measures in new building developments, as well as retrofitting current, out-of-date premises to lower their energy usage, is enormous. The latter initiative is also highly political in nature, with all levels of government, in both Canada and the United States striving to improve the “green” element(s) of their political platforms.

Since 9/11, there has been an increase in safety measures and initiatives in buildings. New York City created Bylaw 26 in the wake of the tragedy, requiring, amongst other things, any building over six storeys high to install Safety Way Guidance Systems in their stairwells and escape routes.

Specifically,In March, 2009 the catalystInternational Code Council (IBC 2009) published the 2009 International Building Code, a foundation document used by most jurisdictions in the United States as a starting point for Prolink International’s visiontheir own building codes.  IBC 2009 mandates the use of non-electrically powered emergency egress systems in most new and mandate occurred in 1988. During that year, a major cruise ship, The Scandinavian Star caughtexisting buildings with occupied floors 75’ above fire in a horrific disaster that took almost 200 lives. These deaths,emergency vehicle access.  


8

LUMONALL, INC.
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2009
(UNAUDITED)


As IBC 2009 addresses existing as in many fire-related tragedies, were caused by smoke inhalation. However, duewell as new construction, the market for PLM materials is expected to the fact that a majority of the victims were found within 30 feet of exits, a short distance from salvation, it can also be said that many deaths could have been prevented had safety measures (for example, clearly identified and “lit” evacuation routes and exits) been in place, or even existed at the time.expand.

In responseCanada, similar changes to this, and many other similar tragedies, the International Marine Organization (IMO) regulated that all marine vessels be outfitted with Safety Way Guidance Systems with a recommendation that specifically identified PLM lines, markers, signs and direction indicators were the solution. Since that time Prolink International has established itself as the recognized leadercode are expected in the field of superior PLM products, and has outfitted almost every cruise ship and commercial marine vessel in the entire European market.2010.

Competition

Our primary competition comes from American Permalight, Jalite USA, Brady, Jessup, and Lunaplast, all of which offer PLM Exit Signs and Safety Way Guidance Systems in Canada and/or the United States. With the exception of Brady and Jessup, all of these competitors deal exclusively in PLM products like us.

9



Government Regulations

Exit Signs must be approved by the Underwriters Laboratory in both Canada and the United States.  MEA (Materials and Equipment Acceptance) approvals are required at the State level. We are also an Energy Star Partner in Canada and the United States. Our PLM formulation meets most current building code standards.

Employees

As of the date of this report, we have 43 employees, including our current officers, and independent contractors. Our operations are non-union and there hasn’t been any history of labor strikes or unrest at any of our facilities. We believe that our relationship with our employees is satisfactory and management is confident that there is ample available laborlabour force in the geographic areas where are facilities are, and will be located to support expected expansion over the next 12 months. Specifically, we are anticipating moving manufacturing operations for the PLM materials to North America, and when we are in the financial position to do so, we intend to hire additional employees in the areas of sales and marketing.

Risk Factors

While there are relatively few competitors to date, ours is a highly competitive industry, based on maintaining standards and keeping ahead of government regulations and initiatives. Our failure to compete effectively could adversely affect our market share and results in operations.

There is also a significant learning curve and a certain level of acceptance of PLM Exit Signs, not only at all levels of government, but there is also a shift in thinking for our customers to accept them in place of traditional, electrically-powered signs. The status quo is difficult to change.change and the adoption for our product may be slow.

Similarly, despite increased awareness regarding safety measures in buildings, the acceptance and subsequent seriousness of installing Safety Way Guidance Systems to guide people to safety in the event of a blackout, fire or other emergency situation is not a foregone conclusion.

Due to the relative early stages of this industry, the authorities that create the guidelines are not always consistent in their standards. The Underwriters Laboratory seems to have some inconsistencies in its approval processes, the costs involved in getting approvals, the time required in testing and, more specifically, what they do, and do not accept with regard to PLM Exit Sign standards, possibly making it an uneven playing field in regards to the competitive landscape.

In addition, potential roadblocks could be created by differing interpretations of building and fire codes in a state or local code.

Launch of New Line of Safety Products

In April of 2008, the company announced that it has entered into a letter of intent with a manufacturer to distribute a state-of-the-art, U.S. manufactured non-slip photo luminescent stair nosing for all building applications. The new line is made of rugged aluminum with no-slip

10


surfaces and provides critical visibility in stairwells. The strategic move provides a full complement of the best photo luminescent safety products in a timely and effective fashion.

Strategic Partnership with Pacific Stair

In June of 2008, the Company announced a letter of intent with Pacific Stair Corp. that provides for the development and distribution of innovative seismic compliant steel stair systems incorporating the companies photo luminescent technology.


Note 2 – Summary of Significant Accounting Policies

The financial statements have been prepared in accordance with generally accepted accounting principles in the United States.

The financial statements have, in management’s opinion, been properly prepared within reasonable limits of materiality and within the framework of the significant accounting policespolicies summarized below.below:


 
9

LUMONALL, INC.
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2009
(UNAUDITED)


Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenuerevenues and expenses during the reporting period. Actual results could differ from those estimates,estimates.

Revenue Recognition

The Company recognizes revenue upon transfer of title at the time of shipment (F.O.B shipping point), when all significant contractual obligations have been satisfied, the price is fixed or determinable, and such differences could be material.collectability is reasonably assured.

Inventory

Photo luminescent inventory is recorded at lower of cost or market.

Research and development

The Company did not engage in any material research and development activities during the past two years.

Shipping and Handling Costs

Amounts charged to customers and costs incurred by the Company related to shipping and handling are included in office and general expenses.

Accounts Receivable and Allowance for Doubtful Accounts
 
CashAccounts receivable are recorded at the invoiced amount and cash equivalents
Cash and cash equivalents include time deposit, certificatesdo not bear interest. The collectability of deposits, and all highly liquid debt instruments with original maturities of three months or less.outstanding client invoices is continually assessed. The Company maintains cashan allowance for estimated losses resulting from the inability of clients to make required payments. In estimating the allowance, the Company considers factors such as historical collections, a client’s current creditworthiness, age of the receivable balance both individually and cash equivalents at financial institutions, which periodically exceed federal insured amounts.in the aggregate and general economic conditions that may affect a client’s ability to pay.

Fair value of financial instruments

The carrying value of receivables, bank indebtedness,accounts receivable, accounts payable and accrued liabilities income taxes payable, and customer deposits approximates fair value because of the short maturity of these instruments. The carrying value of long-term debtnotes payable and due to and from related parties also approximates fair value. Unless otherwise noted, it is management’s opinion that the Company is not exposed to significant interest, currency or credit risk arising from these financial instruments.

Income taxes

The Company provides for income taxes using the asset and liability method as prescribed by Statement of Financial Accounting Standards ("SFAS") No. 109, “AccountingAccounting for Income Taxes”Taxes. Under the assetsasset and liability method deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amountsamount of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Additionally, a valuation allowance is established when necessary to reduce deferred income tax assets to the amounts expected to be realized. Under StatementSFAS 109, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

11


BasicEarnings and diluted earnings (loss)loss per common share

The Company reports basic earnings (loss)loss per share in accordance with Statement of Financial Accounting StandardsSFAS No. 128, “EarningsEarnings Per Share”.  Basic earnings (loss)loss per share is computed using the weighted average number of shares outstanding during the year.  Diluted earnings per share includes the potentially dilutive effect of outstanding common stock options and warrants, which are convertible to common shares. Diluted loss per share is not presented as results would be “anti-dilutive”.

10

 
LUMONALL, INC.
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2009
(UNAUDITED)



Valuation of Warrants

The Company estimates that value of common share purchase warrants issued using the Black-Scholes pricing model.

Recent issued accounting standardsPronouncements

In February 2007,May 2008, the FASB issued FASB Statement NO. 159, “SFAS No. 162, "The Fair Value OptionHierarchy of Generally Accepted Accounting Principles”.  SFAS 162 identifies the sources of accounting principles and the framework for Financial Assets and Financial Liabilities – Including an Amendmentselecting the principles used in the preparation of FASB Statement No. 115” (“financial statements of nongovernmental entities that are presented in conformity with generally accepted accounting principles (GAAP) in the United States.  SFAS 159”). The fair value option established by SFAS 159 permits all entities to choose to measure eligible items at fair value at specified election dates. A business entity will report unrealized gains or loses on items for which the fair value option has been elected in earnings (or another performance indication if the business entity does not report earnings) at each subsequent reporting date. The fair value option: (a) may be applied instrument by instrument, with a few exceptions, such as investments otherwise accounted for by the equity method; (b) is irrevocable (unless a new election date occurs); and (c) is applied only to entire instruments and not to portions of instruments. FASB No. 159162 is effective as60 days following the SEC’s approval of the beginningPublic Company Accounting Oversight Board amendments to AU Section 411, The Meaning of the fiscal years beginning after November 15, 2007. The Company is currently evaluating what impact, if any, SFAS 159 will have on its financial position or results of operations.
In December 2007, the FinancialPresent Fairly in Conformity With Generally Accepted Accounting Standards Board issued Statement of Financial Accounting Standard (“SFAS”) No. 141(R), "Business Combinations”.  SFAS 141(R) establishes principles and requirements for how the acquirer, recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed, an any noncontrolling interest in the acquiree, recognizes and measures the goodwill acquired in the business combination or a gain from a bargain purchase, and determines what information to disclose to enable users of the financial statements to evaluate the nature and financial effects of the business combination.  SFAS 141(R) is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2008.  As such, the Company is required to adopt these provisions at the beginning of the fiscal year ended March 31, 2010.Principles. The Company is currently evaluating the impact of SFAS 141(R)162 on its consolidated financial statements [butbut does not expect it to have a material effect].effect.

In December 2007,May 2009, the Financial Accounting Standards Board issued Statement of Financial Accounting Standard (“SFAS”) No. 160, "Noncontrolling Interests in Consolidated Financial Statements, an amendment of ARB No. 51”.  SFAS 160 establishes accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary.  SFAS 160 is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2008.  As such, the Company is required to adopt these provisions at the beginning of the fiscal year ended March 31, 2010.  The Company is currently evaluating the impact of SFAS 160 on its consolidated financial statements [but does not expect it to have a material effect].
In March 2008, FASB issued Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments165, “Subsequent Events” (“FAS 165”). FAS 165 established general standards of accounting for and Hedging Activities” (“SFAS 161”). SFAS 161 is intendeddisclosure of events that occur after the balance sheet date but before financial statements are issued. FAS 165 will be effective in the second quarter of fiscal 2010. We do not expect the adoption of FAS 165 to improve financial reporting  about derivative instruments and hedging activities by requiring

12


companies to enhance disclosure about how these instruments and activities affect theirhave a material effect on our financial position, performancecash flows, or results of operations.

In June 2009, the FASB issued Statement No. 168, “The FASB Accounting Standards Codification and cash flows. SFAS 161 also improves the transparency aboutHierarchy of Generally Accepted Accounting Principles—a replacement of FASB Statement No. 162”, to formally establish the locationFASB Accounting Standards Codification as the single source of authoritative, nongovernmental U.S. GAAP, in addition to guidance issued by the SEC. On the effective date, the Codification will supersede existing non-SEC accounting and amountsreporting standards. All other nongrandfathered non-SEC accounting literature not included in the Codification becomes nonauthoritative. Therefore, from the effective date of derivative instruments in a company’s financial statementsthe Codification, there will no longer be levels of authoritative GAAP, rather there will only be authoritative and how they are accounted for under SFAS 133. SFAS 161 isnonauthoritative GAAP. All content within the Codification carries the same level of authority. The Statement makes the Codification effective for financial statements issued for fiscal years beginninginterim and annual periods ending after NovemberSeptember 15, 2008 and interim periods beginning after that date. As such, the Company is required to adopt these provisions beginning with the quarter ending in March 2009.  The Company is currently evaluatingdoes not expect the adoptionimpact of this pronouncement and expects noSFAS No. 168 to have a material impacteffect on the Company’sits consolidated financial statements.

Reclassification of Prior Year Statement of Operations

For the three months ended June 30, 2008, the Company has reclassified foreign exchange loss from selling and administrative costs to other expenses, to facilitate a year over year comparison with three month period ended June 30, 2009.


Note 3 – Related Party Transactions

Periodically expenses of the Company are paid by related parties on behalf of the Company.  These transactions result in non-interest and interest bearing payables to related parties with no specific terms of repayment other than as described below.  At June 30, 20082009, amounts due to related parties amounted to $616,254.$965,811.  Related parties of the Company include entities under common management.management and Officers and Directors of the Company.

Gamecorp Ltd. (formerly Eiger Technology, Inc.)Newlook Industries Corp., a related party (due to common officers with the Company) agreed to provide up to $500,000 funding forfund the development of the Company’s business. The Company is obligated to pay a 5% commitment feebusiness at an interest rate of the maximum amount funded plus interest at Prime + 3% per annum.annum and general security over all the Company’s assets in event of default. During the three month period ended June 30, 2007,2009, amounts owed to Newlook increased $79,238, a result of $22,652 of cash advances, $8,165 of accrued interest and $48,421 relating to a foreign exchange loss. Amounts received from Newlook are recorded in Canadian Dollars and for the three month period ended June 30, 2009, the Canadian dollar appreciated significantly in value to the U.S. Dollar which led to the foreign exchange loss.

The Company incurred $12,804 in interest expense.was obligated to pay $6,000 per month through June 2009 for financial and administrative services to Wireless Age Communications Inc. (“Wireless Age”).
 

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LUMONALL, INC.
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2009
(UNAUDITED)


At June 30, 2008,2009 and March 31, 2009, the amounts due to related parties were:
 
    
Gamecorp Ltd. $483,185 
Officers and directors  133,069 
  $616,254 
  June 30, 2009  March 31, 2009 
Newlook Industries Corp. $644,741  $565,503 
Wireless Age Communications, Inc.  51,147   35,830 
Directors and/or Officers of the Company *
  269,923   207,846 
  $965,811  $809,179 

* Including a former director and officer.


Note 4 Unissued Share LiabilityDeposits

The Company agreed to issue 9,400,000has entered into strategic partnerships for the distribution of PLM products across the North American market place.  Deposits have been made by certain distribution partners for future purchase of PLM products. Deposits held by the Company totalled $121,367 at June 30, 2009 and March 31, 2009.


Note 5 –Common stock Units Subscribed.

In fiscal 2009, 10,000,000 common sharesstock units were subscribed for, valued at $136,860$300,000.  Each common stock unit consisted of one common share and one purchase warrant exercisable at $0.05 for a duration of six months.  As at June 30, 2009 all common stock units were issued.


Note 6– Segment Data, Geographic Information and Significant Customers:

Lumonall products are currently sold through distribution agreements covering most regions of North America. Distributors include Willis Group of Companies in full repaymentCanada, Designer Building Solutions, Butler-Johnson Corporation and Hallmark Building Supplies in the United States. The Company is not organized by market and is managed and operated as one business. A single management team reports to the chief operating decision maker who comprehensively manages the entire business. The Company does not operate any material separate lines of future royalties owedbusiness or separate business entities. Accordingly, the Company does not accumulate discrete financial information, other than product revenue and material costs, with respect to Lumonall Canada Inc. In addition, the stock issued was in repaymentseparate product lines and does not have separately reportable segments as defined by Statement of a note payable of $50,000 and for paymentFinancial Accounting Standards (SFAS) No. 131, “Disclosures about Segments of an intercompany liability of $86,860 owed by Lumonall Inc., to Lumonall Canada Inc.  Lumonall Canada Inc. is a related party by virtue of common directorsEnterprise and officers. As ofRelated Information.

For the three months ended June 30, 2009 and 2008, 300,000 shares had not yet been issuedWillis Group of Companies and the Company has recorded a $4,368 un-issued share liability representing the fair valueHallmark Building Supplies accounted for approximately 100% and 70% of the un-issued shares.sales, respectively.
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Item 2.  Management’s Managements Discussion and Analysis or Plan of Operation.

FORWARD-LOOKING STATEMENTS
Certain matters discussedThe following discussion should be read in this Annual Report may constitute forward-lookingconjunction with our financial statements withinand notes thereto included herein.  In connection with, and because we desire to take advantage of, the meaning"safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, we caution readers regarding certain forward looking statements in the following discussion and as such may involve riskselsewhere in this report and uncertainties.  These forward-lookingin any other statement made by, or on our behalf, whether or not in future filings with the Securities and Exchange Commission.  Forward-looking statements are statements not based on historical information and which relate to amongfuture operations, strategies, financial results or other things, expectationsdevelopments.  Forward looking statements are necessarily based upon estimates and assumptions that are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of thewhich are beyond our control and many of which, with respect to future business environment in  which the Company operates, projections of future performance, perceived opportunities

13


in the marketdecisions, are subject to change.  These uncertainties and statements regarding the Company's goals.  The Company'scontingencies can affect actual results performance,and could cause actual results to differ materially from those expressed in any forward looking statements made by, or achievements expressed or implied in such forward-looking statements may differ.
BACKGROUND
The Company was incorporated in the State of Colorado on May 1, 1996 as Grand Canyon Ventures Two, Incorporated. The Company changed its nameour behalf.  We disclaim any obligation to Azonic Engineering Corporation on September 23, 1998. On November 12, 1999, it was re-domiciled to the State of Nevada by merging into its wholly owned subsidiary Azonic Corporation ("Company"), a Nevada corporation. On July 21, 2005 the Company officially changed its name to Midland International Corporation (“Midland”).  During fiscal 2008, in order to accurately reflect the nature of the Company’s business, the Company changed its name from Midland International Corporation to Lumonall, Inc., effective August 16, 2007.
Description of Current Business Planupdate forward looking statements.

We hold the USA licensing, North American manufacturing and Canadian distribution rights of photo luminous pigments and production of foil used in manufacturing of photo luminous materials (“PLM”) and we made a 30% investment in an entity that holds the world wide intellectual rights to these PLM products. We began to realize on these rights during fiscal 2008.

Pursuant to management initiatives and strategic partnerships the Company became able to procure a domestic source for photo luminescent signs and safety guidance systems at a lower cost and more efficient route to market. Due to this new source , management felt that the carrying value of its licensing, manufacturing rights and investment as at March 31, 2008, was impaired and chose to write down their carrying value to $nil.

With a North American distribution network in place, we have means to capitalize on the world wide market for photo luminescent product. Looking forward, the keys to success will be to further train and equip that network for anticipated sales, expand our product categories, and continue to develop awareness and educate the public on the benefits of PLM with regard to safety and energy conservation.

We continue to ramp up our media strategy to improve awareness regarding PLM Exit Signs and Safety Way Guidance Systems (“SWGS”), as well as lobbying all levels of government to further effect both energy saving legislation, in addition to building safety requirements.Overview

Our online presence will also be growing, aidingpresent business strategy and direction is to distribute of photoluminescent (PLM) emergency egress systems.

Lumonall is committed to the development and distribution of applied photoluminescent technologies. Through a network of industrial designers, manufacturing and sales professionals, Lumonall brings to market products that leverage the inherent characteristics of photoluminescence to enhance safety, reduce energy consumption and improve the environment.

Improving emergency egress is currently the focus of the company's efforts, providing systems that prevent injuries by providing critical illumination along exit pathways. These efforts are timed to coincide with changes to building codes in various markets that address the need for improved emergency egress. The systems Lumonall develops not only meet the standards established in these codes, but offer additional options that further promote safe egress.

Concurrent with these efforts, the Company is engaged in the education processdevelopment of applications of photoluminescent technology for both our distributorsother markets including transportation industries, residential safety and the general public. The new site will provide improved services for our distribution network, as well as the general public. This will likely include streaming video demonstrations (for both Exit Signs and SWGS), an on-line product catalogue, product FAQs, and a marketing materials database.decorative uses.

These measures, in the short term, address the North American marketplace and our presence here. As we develop our infrastructure and grow in sales, we will start capitalizing on our worldwide opportunities.

Following that, we are continuing with research and development in order to further identify other products and applications for PLM as well as expand our product categories.

14



RESULTS OF OPERATION

Comparison of Results of Operations for the Three Month PeriodMonths Ended June 30, 20082009 and 20072008

We generated $76,208$3,970 in revenues duringfrom the sale of PLM product in the three-month period ended June 30, 20082009, compared to nilrevenues of $76,208 in the same three month period for 2008.  Gross profit on sales during the three month period was $1,800 in comparison to $15,788 in the prior year.  Year over year for the three months ended June 30, 2009 revenues declined $72,238.  The reduction in sales is a result of the Company  performing a complete analysis of the business including reviewing and reconsidering our channels to market.

We incurred management fees of $53,117 in the three-month period ended June 30, 2009, compared to $95,288 in the same period ended June 30, 2008. Management fees, during the three month period ended June 30, 2007.  The new PLM business plan was begun during the fourth quarter2009 accrued and/or paid consisted of fiscal 2007. Gross profit on sales during the current quarter was $15,788. Gross profits are expected$15,750 to rise as volumes increase.

We incurred management fees of $95,288 in the three-month period ended June 30, 2008, comparedJohn Simmonds, CEO, $11,025 to $60,000 in the same period ended June 30, 2007. Management fees during the current period were for the services of Mike Hetherman, our CEO,Carrie Weiler, Corporate Secretary, and $11,025 to Gary Hokkanen, our CFO and Carrie Weiler, our Corporate Secretary.CFO. In addition, management fees included an amount$15,317 was paid to Wireless Age Communications, Inc., a related party due to certain common officers, directors and ownership, for the services of managerial level accounting and finance personnel.  Year over year management fees decreased $42,171 primarily a result in a change in management.  Management fees during the three-month period ended June 30, 2008 were for the services of Mike Hetherman, CEO; Carrie Weiler, our Corporate Secretary; Gary Hokkanen, our CFO; and a related party due to certain common officers, directors and ownership for the service of managerial level accounting and finance personnel.
 
We incurred office and general expenses of $68,319$41,364 in the three-month period ended June 30, 20082009, compared to $152,290$67,233 in the same period ended June 30, 2007,2008, a decrease of approximately $83,971.$25,869.  During the three month period ended June 30, 2008 the new PLM business plan was initiated and required significantly more resources during the Company’s current state of evolution. In addition, during the three month period ended June 30, 2009 the Company has focused on strict cost control measures to address the global financial crisis.  Office and general expenses include travel, and auto, occupancy and communications and other similar costs associated with operating the business in its current state of evolution.  The higher costs for the three month period end June 30, 2007 are a result of the incremental start up costs incurred for the new business plan.  During the three month period ended June 30, 2008 travel2009, wages and entertainmentconsulting costs totaled $29,564, advertisingaccounted for $30,889, and promotion totaled $14,688, administrative services totaling $9,767,general office and other miscellaneous expenses $10,475. The costs totaling $14,300.are primarily related to management’s strategy to improve awareness of PLM Exit Signs and Safety Way Guidance Systems in order to develop and exploit the North American market place. We expect operating costs to increase as volumes under thewe pursue new business plan arise.business.

We also incurred professional and consulting fees of $99,797$11,449 in the three-month period ended June 30, 20082009, compared to $241,431$99,797 in the same period ended June 30, 2007. Professional2008 a decrease of $88,348.  Higher costs during fiscal 2009 are a result of the Company’s initial development of the Company’s business and consulting fees during the current period included various fees associated with the new business opportunity, including general management, technical, political lobbyist and marketing functions.strategy.

13

We incurred interest expense of $8,165 during the period ended June 30, 2009, compared to $12,804 during the three month period ended June 30, 2008 compared to nil duringarising from related party liabilities.

We recorded a foreign currency loss of $57,795 for the three month period ended June 30, 2007. Interest expense arose from2009 in comparison to a related party liability from whichloss of $1,086 for the Company is obligated to pay a 5% commitment feecomparative period ended June 30, 2008.  A substantial portion of the maximum amount funded plus interest at Prime + 3% per annum.Company’s liabilities and

expenses are recorded in Canadian Dollars.  For the three month period ended June 30, 2009, the Canadian Dollar appreciated significantly in value to the U.S. Dollar which led to the foreign exchange loss.

As a result, we incurred a net loss of ($260,420)170,090) during the three month period ended June 30, 2008,2009, (approximately $0.002$0.001 per share) compared to a net loss of ($459,344)260,420) in the same period ended June 30, 20072008 (approximately $0.005$0.002 per share)

Management expects the operating losses to continue until breakeven operations are achieved under the PLM business plan. Additional financing will be required in order to offset pre-breakeven operating losses.

15


LIQUIDITY AND CAPITAL RESOURCES

Our total assets increaseddecreased from $37,178$129,448 at March 31, 20082009 to $58,664$127,754 at June 30, 2008.  The increase is primarily the result of increased activity associated with the PLM business.2009.

Our total liabilities increased from $1,063,402$1,308,409 at March 31, 20082009 to $1,127,193$1,476,805 at June 30, 2008.2009, an increase of $168,396.  Accounts payable increased to $386,414 from $377,863, an increase of $8,551, amounts of which are primarily due to costs incurred for professional and accrued liabilitiesconsulting services. At June 30, 2009, due to related parties balance increased from $273,919$809,171 at the beginning of the yearMarch 31, 2009 to $296,878$965,811 at the end of the current quarter.June 30, 2009. Due to related parties increased from $418,994party amounts do not have specific repayment terms and it is expected that these amounts will be repaid as the financial position of the Company improves. Distributor deposits for the future purchase of photo luminescent products remained unchanged at $121,367.  At June 30, 2009 bank indebtedness was $3,213 compared to $Nil at March 31, 2008 to $616,254 at the three months ended June 30, 2008. Deposits declined from $221,131 at the beginning of the year to 209,693 at June 30, 2008.  Unissued share liability declined to $4,368 at June 30, 2008 from 144,358 at March 31, 2008.2009.

The stockholders’ deficiency increased from ($1,026,224)1,178,961) at March 31, 20082009 to ($1,068,529)1,349,051) at June 30, 2008.  Operating losses were offset with an2009.  The increase is attributable to private placements generating net proceedsour loss of $70,000 during$170,090 for the three month periodmonths ended June 30, 2007, and issuance of 9,100,000 common shares, valued at $132,490 as consideration for settlement in certain related party liabilities. (See Statement of Stockholders’ Deficiency contained in the financial statements).2009.

At June 30, 2008,2009, we had a working capital deficit of $1,068,529.$ 1,349,051.  We had cash balances of $364$Nil at June 30, 20082009 and we are largely reliant upon our ability to arrange equity private placements or alternatively advances from related parties to pay expenses as incurred.  In addition to normal accounts payable and accrued liabilities of $296,878$386,414 we also owe related parties $616,254.$965,811 without specific repayment terms and $121,367 in distributor deposits. Our only source for capital could be loans or private placements of common stock.

During the three month periodmonths ended June 30, 20082009 we; 1) used $276,232$160,046 in cash in operating activities arising primarily from operating losses, and 2) generated $267,261$159,845 in cash from financing activities. Financing activities included cash proceeds$156,632 funded from related parties.

For the three month period ended June 30, 2009, the Company’s operations were substantially funded by related parties.  In order to ensure the success of $70,000 from private placements of common stockthe business, the Company will have to raise additional financing to satisfy existing liabilities and amountsto provide the necessary funding for future operations.

The Company heavily relies upon loans from related parties, specifically Newlook, to further provide capital contributions. As at June 30, 2009 the Company was indebted to Newlook in the amount of $197,261.$644,741. During the three month period ended June 30, 2009, amounts owed to Newlook increased $79,238, a result of $22,652 of cash advances, $8,165 of accrued interest and $48,421 relating to a foreign exchange loss. Amounts received from Newlook are recorded in Canadian Dollars and for the three month period ended June 30, 2009, the Canadian dollar appreciated significantly in value to the U.S. Dollar which led to the foreign exchange loss.

Newlook is an investment and merchant banking enterprise focused on the development of its technology investments. Newlook’s investments have suffered due to unforeseen events and the global financial crisis. Newlook may not be able to provide additional capital over the next year to the Company in order to satisfy existing liabilities and make further capital contributions. Failure to obtain such capital could adversely impact the Company’s operations.
14

Our current cash resources may not beare insufficient to support the business over the next 12 months and we are unable to carry out any plan of businesscontinue toward attaining break even operations without funding. We estimate that we may need additional debt or equity capital to fully implement our business plan in the future and there are no assurances that we will be able to raise this capital when needed.  However, as of the date of this report, we have been successful in arranging incremental financing through equity private placements and anticipate continued success in this area.funding.  The inability to obtain sufficient funds from external sources when needed will have a material adverse affect on our results of operations and financial condition.

In light of general economic conditions and the Company’s current financial performance and financial position we are  performing a complete analysis of the business including reviewing and reconsidering our channel to market; sharing of gross margin with distributors and various other business processes. We cannot predict to what extent our current lack of liquidity and capital resources will impair our new business operations. However management does believe we will incur further operating losses. There is no assurance that we can continue as a going concern without continuedincremental funding. Management has taken steps to begin sourcing the necessary funding to begin to execute the business plan.

We estimate itIt will require additional financing to cover legal, accounting, transfer, consulting, management fees and the miscellaneous costs of being a reporting company in the next fiscal year. We do not intend to pursue or fund any research or development activities during the coming year. We do not intend to add any additional part-time or full-time employees until our activities can support it. Our business plan calls for us to not make any large capital expenditures in the coming year.

16



Going concern qualification:  We have incurred significant losses from operations for the three month periodmonths ended June 30, 2007,2009, and such losses are expected to continue until we can attain higher levels of revenue.continue.  In addition, we have a working capital deficit of $1,068,529$1,349,051 and an accumulated deficit of $4,124,490.$4,728,130.  The foregoing raises substantial doubt about the Company's ability to continue as a going concern.  Management's plans include seeking additional capital and/or debt financing.  There is no guarantee that additional capital and/or debt financing will be available when and to the extent required, or that if available, it will be on terms acceptable to us.  The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
CONTRACTUAL OBLIGATIONS AND COMMITMENTS
We hold deposits of $209,693 from our distributors for future orders of PLM products.

 
Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

 
Item 4. Controls and Procedures
a)Evaluation of Disclosure Controls and Procedures:

Disclosure controls and procedures

Our management evaluated, with the participation of our Chief Executive Officer and Chief Financial Officer, the effectiveness of our disclosure controls and procedures as of the end of the period covered by this Form 10-Q. Based on this evaluation, our Chief Executive Officer and Chief

Financial Officer have concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the Exchange Act)), as of the end of such period, are designedeffective to ensure that information required to be disclosed by us in the reports filedthat we file or submittedsubmit under the Exchange Act is recorded, processed, summarized and reported within the time periodperiods specified in the SEC'sSecurities and Exchange Commission rules and forms.  Disclosure

There have been no significant changes in our internal controls and  proceduresover financial reporting during the first quarter ended June 30, 2009 that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

This Quarterly Report does not include without  limitation,  controls and procedures  designed to ensure that information required to be disclosed in the reports filed under the Exchange Act is accumulated  and  communicated  to management,  including the Chief Executive Officer and Chief Financial Officer,  as appropriate,  to allow timely decisions regarding required  disclosure.  Asan attestation report of the endCompany’s registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Company’s registered public accounting firm pursuant to temporary rules of the period  covered  by this report,Securities and Exchange Commission that permit the Company carried out an evaluation,  under the supervisionto provide only management’s report in this Quarterly Report.

15

Management Report on Internal Control over Financial Reporting

Our management is responsible for establishing and with the  participation  of the Company's  management,  including the Company's Chief Executive  Officer and Chief  Financial  Officer,  of the  effectiveness  of the design and operation of the Company's disclosure controls and procedures.  Based upon and as of the date of that  evaluation,  the Chief  Executive  Officer  and Chief Financial  Officer  concluded that the Company's  disclosure  controls and procedures are effective to ensure that information  required to be disclosed in the reports the Company  files and submits  under the  Exchange Act is recorded, processed, summarized and reported as and when required.
b)Changes in Internal Control over Financial Reporting:
There were no changes in the Company'smaintaining adequate internal control over financial reporting identifiedas defined in connectionRule 13a-15(f) or 15d-15(f) promulgated under the Exchange Act. Those rules define internal control over financial reporting as a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles and includes those policies and procedures that:

• Pertain to the Company evaluationmaintenance of these controls asrecords that in reasonable detail accurately and fairly reflect the transactions and dispositions of the endassets of the period covered by this reportcompany;

• Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and the receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the Company; and

• Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisitions, use or disposition of the company's assets that could have significantly affected thosea material effect on the financial statements.

Because of its inherent limitations, internal controls subsequentover financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the daterisk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management assessed the effectiveness of our internal control over financial reporting as of June 30, 2009. In making this assessment, our management used the criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the valuation referred to in the previous paragraph, including any correction action with regard to significant deficiencies and material weakness.Treadway Commission (COSO).


1716




 
PART II. Other Information
 
Item 1. Legal ProceedingsProceedings
 
None
 
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

DateIssued To: # of Shares 
     
1-Apr-08April 8, 2009Katemy Holdings Inc.1,500,000
  1,200,000 
1-Apr-08April 8, 20091677692 Ontario Inc.Carrie Weiler1,000,000
  400,000 
1-Apr-08April 8, 2009Jancar InvestmentsAdam Sykes   500,000
  1,100,000 
1-Apr-08April 8, 2009Gracom HoldingsJohn Simmonds1,500,000
  1,200,000 
1-Apr-08April 8, 2009Gerald MerovitzBram Potechin Holdings Ltd.1,500,000
  800,000 
1-Apr-08April 8, 2009Gerald MerovitzChuckfam Holdings Ltd.1,500,000
  1,200,000 
1-Apr-08April 8, 2009Paul MarsiglioLinda Hoffer1,500,000
  600,000 
1-Apr-08Catharine Doncaster600,000
1-Apr-08April 8, 2009Gary Hokkanen 500,0001,000,000 
21-May-08Bjorn Pedersen  100,000
21-May-08Draco Investering OG Plassering100,000
21-May-08Frank Hoyen100,000
21-May-08Andrew Penuvchev1,200,000
21-May-08Taylor Bradford63,131
21-May-08Robert Gould200,000
21-May-08M H Goddard500,000
21-May-08Chris Black & Kim Black200,000
21-May-08Edward Yun500,000
26-Jun-08Paul Francey250,000 

Item 3. Defaults Upon Senior Securities
 
None
 
Item 4. Submission of Matters to a Vote of Security Holders
 
None
 
Item 5. Other InformationInformation
 
None
 
Item 6. Exhibits
 
Rule 13a-14(a) Certification of Chief Executive Officer. *
  
Rule 13a-14(a) Certification of Chief Financial Officer. *
  
Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. *
  
Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. *
* Filed herein.



1817



SIGNATURESSIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
 Lumonall Inc. 
    
Date: August 13, 200812, 2009By:/s/ Michael HethermanJohn Simmonds 
  Name: Michael HethermanJohn Simmonds 
  Title: Chief Executive Officer and DirectorChairman  
    
 By:/s/ Gary N Hokkanen 
  Name: Gary N. Hokkanen 
  Title: Chief Financial Officer