GLOBAL TECH INDUSTRIES GROUP, INC. - Quarter Report: 2009 September (Form 10-Q)

ttii10q_093009.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

[ X] QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For Quarterly Period Ended September 30, 2009

[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition period from _______________ to ______________

Commission File Number:	000-10210

TREE TOP INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)

NEVADA	83-0250943
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

840 North Hollywood Way, 2nd Floor Burbank, CA 91505
(Address of principal executive offices) (Zip Code)

(775) 261-3728
Registrant's telephone number, including area code


(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 proceeding 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

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 definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check One).

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

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

Yes

Indicate the number of shares outstanding of each of the issuer’s classes of common stock as of the latest practicable date.

As of September 30, 2009 the number of shares outstanding of the registrant’s class of common stock was 70,778,400.

		TABLE OF CONTENTS
			Pages

PART I. FINANCIAL INFORMATION			2

	Item 1.	Financial Statements	2

		Consolidated Balance Sheets at September 30, 2009 (Unaudited) and December 31, 2008 (Audited)	2

		Consolidated Statements of Operations for the Three Months and Nine Months Ended September 30, 2009 (Unaudited) and September 30, 2008 (Unaudited)	3

		Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2009 (Unaudited) and September 30, 2008 (Unaudited)[	4

		Notes to Consolidated Financial Statements	5

	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	8

	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	13

	Item 4T.	Controls and Procedures	13

PART II. OTHER INFORMATION			15

	Item 1.	Legal Proceedings	15

	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	16

	Item 3.	Defaults Upon Senior Securities	16

	Item 4.	Submission of Matters to a Vote of Security Holders	16

	Item 5.	Other Information	16

	Item 6.	Exhibits	16

SIGNATURES			17

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Consolidated Balance Sheets at September 30, 2009 (Unaudited) and December 31, 2008 (Audited)

Tree Top Industries, Inc.
(A Development Stage Company)
Consolidated Balance Sheets


ASSETS
	September 30,			December 31,
	2009			2008
CURRENT ASSETS	(unaudited)

Cash	$	1,177		$	663
Prepaid expenses		-			5,164

Total Current Assets		1,177			5,827

PROPERTY AND EQUIPMENT, NET		109,810			134,075

OTHER ASSETS

Technology, net		-			-

Total Other Assets		-			-

TOTAL ASSETS	$	110,987		$	139,902


LIABILITIES AND STOCKHOLDERS' (DEFICIT)

CURRENT LIABILITIES

Accounts payable and accrued expenses	$	574,471		$	385,102
Bank overdraft		-			6,125
Accrued interest payable		62,187			52,490
Due to officers and directors		1,003,468			583,529
Notes payable		267,678			113,000

Total Current Liabilities		1,907,804			1,140,246

STOCKHOLDERS' (DEFICIT)

Preferred stock, $0.0001 par value, 50,000 shares authorized,
-0- shares issued and outstanding		-			-
Common stock, $0.0001 par value, 350,000,000 shares authorized,
70,778,400 and 48,828,400 shares issued and outstanding, respectively		7,078			4,883
Additional paid-in capital		27,637,398			8,792,904
Deficit accumulated during the development stage		(29,441,293	)		(9,798,131	)

Total Stockholders' (Deficit)		(1,796,817	)		(1,000,344	)
TOTAL LIABILITIES AND
STOCKHOLDERS' (DEFICIT)	$	110,987		$	139,902

Consolidated Statements of Operations for the Three Months and Nine Months Ended September 30, 2009 and 2008 (Unaudited)

Tree Top Industries, Inc.
(A Development Stage Company)
Consolidated Statements of Operations
(unaudited)

													From Inception
	For the						For the						on August 1,
	Three Months Ended						Nine Months Ended						2007 through
	September 30,						September 30,						September 30,
	2009			2008			2009			2008			2009


REVENUES, net	$	-		$	2,967		$	-		$	2,967		$	2,967

COST OF SALES, net		-			-			-			-			-

GROSS PROFIT		-			2,967			-			2,967			2,967

OPERATING EXPENSES

General and administrative		102,661			396,294			272,964			894,848			4,404,672
Officer compensation		598,396			-			16,341,689			313,491			21,267,373
Impairment of assets		2,240,000			-			2,240,000			-			2,240,000
Professional fees		709,071			45,909			754,449			841,143			1,460,720
Depreciation		8,089			3,920			24,265			12,158			53,578

Total Operating Expenses		3,658,217			446,123			19,633,367			2,061,640			29,426,343

OPERATING LOSS		(3,658,217	)		(443,156	)		(19,633,367	)		(2,058,673	)		(29,423,376	)

OTHER INCOME (EXPENSES)

Interest income		-			-			-			-			9
Interest expense		(4,642	)		(1,716	)		(9,795	)		(3,941	)		(17,926	)

Total Other Income (Expenses)		(4,642	)		(1,716	)		(9,795	)		(3,941	)		(17,917	)

LOSS BEFORE INCOME TAXES		(3,662,859	)		(444,872	)		(19,643,162	)		(2,062,614	)		(21,705,776	)
INCOME TAX EXPENSE		-			-			-			-			-

NET LOSS	$	(3,662,859	)	$	(444,872	)	$	(19,643,162	)	$	(2,062,614	)	$	(29,441,293	)

BASIC LOSS PER SHARE	$	(0.05	)	$	(0.01	)	$	(0.32	)	$	(0.04	)

WEIGHTED AVERAGE NUMBER
OF SHARES OUTSTANDING		66,897,965			48,828,400			61,680,232			56,600,297

Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2009 and 2008 (Unaudited)

Tree Top Industries, Inc.
(A Development Stage Company)
Consolidated Statements of Cash Flows
(unaudited)


	For the
	Nine Months Ended
	September 30,
	2009			2008

OPERATING ACTIVITIES

Net loss	$	(19,643,162	)	$	(2,062,614	)
Adjustments to reconcile net loss to net
used by operating activities:
Depreciation and amortization		24,265			12,158
Stock options and warrants
granted for services rendered		7,030,188			1,173,088
Impairment of asset		2,240,000			-
Common stock issued for services rendered		9,576,501			-
Changes in operating assets and liabilities
(Increase) decrease in prepaid expenses		5,164			6,033
Increase (decrease) in accounts payable
and accrued expenses		199,066			78,211

Net Cash Used in Operating Activities		(567,978	)		(793,124	)


INVESTING ACTIVITIES

Cash received in acquisition		-			-
Cash paid for property and equipment		-			(68,413	)

Net Cash Used in Investing Activities		-			(68,413	)


FINANCING ACTIVITIES

Repayment of related party loans		-			(193,365	)
Bank overdraft		(6,125	)		-
Cash received from issuance of common stock		-			725,000
Cash received from notes payable		154,678			-
Cash received from related party loans		419,939			38,120

Net Cash Provided by Financing Activities		568,492			569,755


NET DECREASE IN CASH		514			(291,782	)

CASH AT BEGINNING OF PERIOD		663			435,858

CASH AT END OF PERIOD	$	1,177		$	144,076

Tree Top Industries, Inc.
(A Development Stage Company)
Consolidated Statements of Cash Flows (Continued)
(unaudited)

							From Inception
	For the						on August 1,
	For the Nine Months Ended						2007 through
	September 30,						September 30,
	2009			2008			2009

SUPPLEMENTAL DISCLOSURES OF
CASH FLOW INFORMATION

CASH PAID FOR:

Interest		$	-		$	-		$	-
Income Taxes			-			-			-


NON-CASH TRANSACTIONS

Common stock issued for services		$	9,576,501		$	-		$	12,278,001
Common stock issued for subsidiary			2,240,000			-			2,240,000

Notes to Consolidated Financial Statements

1. INTERIM PRESENTATION

The December 31, 2008 balance sheet data was derived from audited financial statements but does not include all disclosures required by generally accepted accounting principles. In the opinion of management, the accompanying unaudited financial statements contain all normal and recurring adjustments necessary to present fairly the financial position of the Company as of September 30, 2009, its results of operations for the three months and nine months ended September 30, 2009 and 2008 and its cash flows for the nine months ended September 30, 2009 and 2008.

The statements of operations for the three months and nine months ended September 30, 2009 and 2008 are not necessarily indicative of the results for the full year.

While the Company believes that the disclosures presented are adequate to make the information not misleading, these financial statements should be read in conjunction with the financial statements and accompanying notes included in the Company's annual Report on Form 10-K for the year ended December 31, 2008.

2. GOING CONCERN

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The Company has incurred accumulated losses totaling $29,441,293 has a working capital deficit of $1,906,627 and is in default on several notes payable (see Note 5).

Since inception (February 23, 1999) through September 30, 2009, the Company has not generated any significant revenues. Through the date of these financial statements viable operations have not been achieved and the Company has been unsuccessful in raising all the capital that it requires. Revenues have been minimal and the Company continues to require substantial financing. Much of the financing has been provided by David Reichman, the present Chief Executive Officer, and Chairman . The Company is dependent upon his ability and willingness to continue to provide such financing which is required to meet reporting and filing requirements of a public company.

In order for the Company to remain a going concern, it will need to continue to receive funds from the exercise of outstanding warrants and options or through other equity or debt financing. There can be no assurance that the Company will continue to receive any proceeds from the exercise of warrants or options or that the Company will be able to obtain the necessary funds to finance its operations. These conditions raise substantial doubt about its ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

3. SIGNIFICANT ACCOUNTING POLICIES

Please refer to the Company's Form 10-K for the year ended December 31, 2008 for its significant accounting policies.

4. EARNINGS (LOSS) PER SHARE

The Company computes earnings or loss per share in accordance with GAAP. Basic earnings per share are computed by dividing income available to common stockholders by the weighted average number of common shares outstanding. Diluted earnings per share reflect the potential dilution that could occur if securities or other agreements to issue common stock were exercised or converted into common stock. Diluted earnings per share are computed based upon the weighted average number of common shares and dilutive common equivalent shares outstanding, which includes convertible debentures, stock options and warrants. The calculation of basic and diluted income (loss) per share for the three months and nine months is as follows:

- -

	Three Months Ended September 30,
	2009				2008


Net income (loss)		$	(3,662,859	)		$	(444,872	)

Weighted average shares outstanding - basic			66,897,965				48,828,400

Net income (loss) - per share - basic		$	(0.05	)		$	(0.01	)

	Nine Months Ended September 30,
	2009				2008


Net income (loss)		$	(19,643,162	)		$	(2,062,614	)

Weighted average shares outstanding - basic			61,680,232				56,600,297

Net income (loss) - per share - basic		$	(0.32	)		$	(0.04	)

For 2009 and 2008, 10,875,000 and 3,875,000, common equivalent shares were considered and excluded from the calculation as their effects are anti-dilutive.

5. NOTES PAYABLE

Notes payable consist of various notes bearing interest at rates from 5% to 7%, all with original due dates between August 2000, September 2002, March 2009, June 2009 and September 2009. $113,000 of the notes is unpaid to date and are in default. At December 31, 2008 and September 30, 2009, notes payable amounted to $113,000 and $267,678.

At September 30, 2009, accrued interest on the notes was $62,187. Interest expense on the notes amounted to $4,642 and $1,716 for the three months and $9,795 and $3,941 for the nine months ended September 30, 2009 and 2008, respectively.

6. RELATED PARTY TRANSACTIONS

Due to officers and directors consists of advances and accrued compensation due primarily to David Reichman, CEO, and Chairman of the Company. The advances are due on demand and do not bear interest. The balance owing to Mr. Reichman is $583,529 and $1,003,468 at December 31, 2008 and September 30, 2009, respectively.

7. STOCKHOLDERS' EQUITY

Effective January 1, 2008, the Company's Board of Directors approved for issuance 250,000 stock options to each of its four directors, to be issued effective January 1, 2008, with an exercise price of $4.50 per share, expiring in 2018. The options vest 1/24th upon grant and then 1/24th each subsequent month. The fair value of the options as calculated under the Black-Scholes model totaled $3,787,174 which vested over a 2 year period. For the year ended December 31, 2008, the Company recognized $1,893,587 of compensation expense related to these options. The fair value of these options was determined using the following assumptions: risk free rate of 3%, no dividend yield, an expected life of five years and a volatility factor of 202%.

The Company also recorded $1,420,188 of compensation expense relating to the amortization of the January 1, 2008 options issued to the Directors during the nine months ended September 30, 2009. During the nine months ended September 30, 2009, the Company recorded the value of 11,000,000 stock options issued to shareholders with an exercise price of $0.55-$1.20 per share, expiring in 2019. The fair value of the options as calculated under the Black-Scholes model totaled $5,610,000 which was recorded as compensation expense. The fair value of these options was determined using the following assumptions: risk free rate of 3.5%, no dividend yield, an expected life of ten years and a volatility factor of 291%-360%. During the nine months ended September 30, 2009, the Company issued 18,450,000 shares of its common stock at an average of $0.52 per share for an aggregate value of $9,576,501.

A summary of our stock option activity is as follows for the year ended December 31, 2008 and the nine months ended September 30, 2009:

						Weighted
				Range of		Average		Remaining Contractual
				Exercise Prices		Exercise		Life
	Shares			Per Share		Price		(Years)

Options outstanding at December 31, 2007		2,975,000		$	0.50-2.00	$	0.98		3.96
Granted		2,000,000			1.00-4.75		2.75		10
Exercised		(1,100,000	)		0.25-1.00		0.66
Expired		-			-		-
Options outstanding at December 31, 2008		3,875,000		$	1.00-2.00		0.68		7.07
Granted		11,000,000		$	0.55-1.20		0.85		9.83
Exercised		-			-		-
Expired		-			-
Options outstanding at September 30, 2009		14,875,000		$	0.25-2.00	$	0.97		9.23

Information with respect to stock options outstanding at September 30, 2009 is as follows:

Range of Exercise		Number of Outstanding		Number Exercisable		Average Remaining Contractual Term (Years)		Weighted Average Exercise Price		Aggregate Intrinsic Value
$	0.25-$0.55		275,000		275,000	$	0.35	$	1.36		862,500
$	1.00-$2.00		2,100,000		2,100,000	$	2.49	$	0.38		1,115,000
$	1.00		500,000		500,000	$	9	$	1.00		500,000
$	4.50		1,000,000		625,000	$	9	$	4.50		4,500,000
$	12.0		11,000,000		11,000,000	$	0.85	$	0.85		9,300,000
Total			14,875,000		14,500,000						16,277,500

8. RECENT ACCOUNTING PRONOUNCEMENTS

In May 2009, the FASB issued a pronouncement regarding “Subsequent Events”. This pronouncement establishes standards for accounting for and disclosing subsequent events (events which occur after the balance sheet date but before financial statements are issued or are available to be issued). The pronouncement requires an entity to disclose the date subsequent events were evaluated and whether that evaluation took place on the date financial statements were issued or were available to be issued. It is effective for interim and annual periods ending after June 15, 2009. The adoption of the pronouncement did not have a material impact on the Company’s financial condition or results of operation.

In June 2009, the FASB issued a pronouncement regarding, “Accounting for Transfers of Financial Assets” an amendment of a prior pronouncement. The pronouncement is intended to improve the relevance, representational faithfulness, and comparability of the information that a reporting entity provides in its financial statements about a transfer of financial assets: the effects of a transfer on its financial position, financial performance , and cash flows: and a transferor’s continuing involvement, if any, in transferred financial assets. This statement must be applied as of the beginning of each reporting entity’s first annual reporting period that begins after November 15, 2009. The Company does not expect the adoption of the pronouncement to have an impact on the Company’s results of operations, financial condition or cash flows.

In June 2009, the FASB issued a pronouncement regarding, “Amendments to FASB Interpretation”. The pronouncement is intended to (1) address the effects on certain provisions of an accounting interpretation regarding, Consolidation of Variable Interest Entities, as a result of the elimination of the qualifying special-purpose entity concept, and (2) constituent concerns about the application of certain key provisions of the interpretation, including those in which the accounting and disclosures under the Interpretation do not always provided timely and useful information about an enterprise’s involvement in a variable interest entity. This statement must be applied as of the beginning of each reporting entity’s first annual reporting period that begins after November 15, 2009. The Company does not expect the adoption of the pronouncement to have an impact on the Company’s results of operations, financial condition or cash flows.

In June 2009, the FASB issued a pronouncement regarding, “The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles”. The pronouncement will become the source of authoritative U.S. generally accepted accounting principles (GAAP) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the Securities and Exchange Commission (SEC) under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. On the effective date of this Statement, the Codification will supersede all then-existing non-SEC accounting and reporting standards. All other nongrandfathered non-SEC accounting literature not included in the Codification will become nonauthoritative. This statement is effective for financial statements issued for interim and annual periods ending after September 15, 2009.The Company does not expect the adoption of the pronouncement to have an impact on the Company’s results of operations, financial condition or cash flows.

9. Acquisition of Subsidiary:

TTI recently closed an acquisition of 100% of the outstanding capital stock of Bioenergy Applied Technologies, Inc.(“BAT”) in a stock-for-stock exchange. The closing took place on Wednesday, August 13th, 2009 in New York City. BAT is the originator of various proprietary, clean-tech, environmentally-friendly technologies and intellectual properties in the areas of hazardous waste destruction, energetic materials, chemical recycling processes, and coal gasification. BAT also maintains unique electrolytic technology that simplifies the product of bio fuels, specifically biodiesel and its byproducts. All of the BAT products and systems offer green, sustainable solutions to the problems of waster generation, collection, storage, and destruction.

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Cautionary Statements

This Form 10-Q may contain "forward-looking statements," as that term is used in federal securities laws, about Tree Top Industries, Inc.'s financial condition, results of operations and business. These statements include, among others:

statements concerning the potential benefits that Tree Top Industries, Inc. ("TTI" or the "Company") may experience from its business activities and certain transactions it contemplates or has completed; and

statements of TTI's expectations, beliefs, future plans and strategies, anticipated developments and other matters that are not historical facts. These statements may be made expressly in this Form 10-Q. You can find many of these statements by looking for words such as "believes," "expects," "anticipates," "estimates," "opines," or similar expressions used in this Form 10-Q. These forward-looking statements are subject to numerous assumptions, risks and uncertainties that may cause TTI's actual results to be materially different from any future results expressed or implied by TTI in those statements. The most important facts that could prevent TTI from achieving its stated goals include, but are not limited to, the following:

(a) volatility or decline of TTI's stock price;

(b) potential fluctuation of quarterly results;

(d) inadequate capital to continue or expand its business, and inability to raise additional capital or financing to implement its business plans;

(e) failure to commercialize TTI's technology or to make sales;

(f) decline in demand for TTI's products and services;

(g) rapid adverse changes in markets;

(h) litigation with or legal claims and allegations by outside parties against TTI, including but not limited to challenges to TTI's intellectual property rights;

(i) insufficient revenues to cover operating costs;

(j) failure of NetThruster.com(R) to acquire ot develop and profitably operate a new business to replace its old content delivery business model, which is no longer being implemented; and

(k) competition from other businesses and technologies that materially adversely impacts TTI's operations, financial condition and business performance.

There is no assurance that TTI will be profitable, TTI may not be able to successfully develop, manage or market its products and services, TTI may not be able to attract or retain qualified executives and technology personnel, TTI may not be able to obtain customers for its products or services, TTI's products and services may become obsolete, government regulation may hinder TTI's business, additional dilution in outstanding stock ownership may be incurred due to the issuance of more shares, warrants and stock options, or the exercise of outstanding warrants and stock options, and other risks inherent in TTI's businesses.

Because the statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by the forward-looking statements. TTI cautions you not to place undue reliance on the statements, which speak only as of the date of this Form 10-Q. The cautionary statements contained or referred to in this section should be considered in connection with any subsequent written or oral forward-looking statements that TTI or persons acting on its behalf may issue. TTI does not undertake any obligation to review or confirm analysts' expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date of this Form 10-Q, or to reflect the occurrence of unanticipated events.

Current Overview

Effective August 13th, 2009, TTI completed a stock-for-stock exchange with BioEnergy Applied Technologies, Inc. (“BAT”), BioEnergy Systems Management, Inc. (“Bio”), Wimase Limited (“Wimase”) and Energetic Systems Inc., LLC, (“Energetic”, and together with Bio and Wimase, the “Stockholders”). TTI acquired all of the issued and outstanding shares of BAT. TTI issued 3,500,000 shares of its common stock, par value $.001 per share, to the Stockholders, in exchange for the transfer of all of the issued and outstanding shares of common stock of BAT by the Stockholders.

BAT is the originator of various proprietary, clean-tech, environmentally-friendly technologies and intellectual properties in the areas of hazardous waste destruction, energetic materials, chemical recycling processes, and coal gasification. BAT also maintains unique electrolytic technology that simplifies the production of bio fuels, specifically biodiesel and its byproducts.

BAT was acquired to exploit their key intellectual properties, which have been applied to the construction of systems and equipment designed to facilitate the destruction of pharmaceutical, medical, biological, chemical, red bag and other hazardous wastes, with clean reusable energy produced as a byproduct. The system utilizes cold plasma technology to initiate a chemical reaction inside the unit. The chemical reaction causes enough heat to facilitate the waste destruction, resulting in a drastically reduced carbon footprint, as no incineration is needed. The energy needed to start the process is the equivalent of only five light bulbs, resulting in a significantly lower cost of operation. The unit is relatively compact, can be retrofitted into existing structures or made mobile for smaller venues, and can be scaled up to meet the hazardous waste destruction needs of almost any user.

TTI is actively engaged in developing a business platform to showcase the BAT technologies, and will spend the majority of its resources in support of this opportunity.

TTI also owns 100% of the issued and outstanding stock of NetThruster, Inc., a Nevada corporation (“NetThruster”), which was formally known as Ludicrous, Inc. (“Ludicrous”). TTI was previously known as GoHealth.MD, Inc. (“GoHealth.Md”). GoHealth.Md was incorporated in Nevada in May 2000. GoHealth was a web based resource provider for certain alternative health- care oriented professionals. In January 2002, GoHealth.MD, Inc. ceased these operations. TTI continued to exist as a shell company.

NetThruster was formed to be a provider of high-performance content delivery network (“CDN”) services. Currently, due to recent industry developments, TTI is in the process of re-evaluating the NetThruster technology, and as such, has temporarily ceased active development of this subsidiary.

Critical Accounting Policies

Our discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements 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. We monitor our estimates on an on-going basis for changes in facts and circumstances, and material changes in these estimates could occur in the future. Changes in estimates are recorded in the period in which they become known. We base our estimates on historical experience and other assumptions that we believe to be reasonable under the circumstances. Actual results may differ from our estimates if past experience or other assumptions do not turn out to be substantially accurate.

Certain of our accounting policies are particularly important to the portrayal and understanding of our financial position and results of operations and require us to apply significant judgment in their application. As a result, these policies are subject to an inherent degree of uncertainty. In applying these policies, we use our judgment in making certain assumption and estimates. Our critical accounting policies are described in our Annual Report on Form 10-K for the year ended December 31, 2008. There have been no material changes to our critical accounting policies as of September 30, 2009 and for the nine months then ended.

Results of Operations for the Three Months Ended September 30, 2009 Compared to Three Months Ended September 30, 2008

We had no revenues in the third three months of 2009 compared to $2,967 in the same period of 2008. Our operating expenses increased from $446,123 in the third three months of 2008 to $3,658,217 in the same period of 2009, primarily due to an increase in stock based compensation expense to officers, directors and a shareholder. Stock based compensation aggregated $-0- in 2008 compared to $598,396 in 2009. Our professional fees also increased from $45,909 in 2008 to $709,071 in 2009 due to the issuance of 1,000,000 shares of common stock to our securities attorneys valued at $640,000. We also impaired in full the investment made in technology of $2,240,000 in 2009. Our net loss was $3,662,859 in the third three months of 2009 compared to net loss of $444,872 in the same period of 2008. Excluding non cash expenses our net loss would have been $309,463 and $444,872 in 2009 and 2008, respectively.

Results of Operations for the Nine Months Ended September 30, 2009 Compared to the Nine Months Ended September 30, 2008

We had no revenues in the first nine months of 2009 compared to $2,967 for the same period of 2008. Our operating expenses increased from $2,061,640 in the first nine months of 2008 to $19,633,367 in the same period of 2009, primarily due to a increase in stock based compensation expense to officers, directors and a shareholder. Stock based compensation aggregated $1,173,088 in 2008 compared to $16,606,689 in 2009. We also impaired in full the investment made in technology of $2,240,000 in 2009.Our net loss was $2,062,614 in the first nine months of 2008 compared to net loss of $19,643,162 in the same period of 2009. Excluding non cash expenses our net loss would have been $889,526 and $3,036,473 in 2008 and 2009, respectively.

Liquidity and Capital Resources

The Company's cash position was $1,177 at September 30, 2009 compared to $663 at December 31, 2008. As of September 30, 2009, the Company had current assets of $1,177 and current liabilities of $1,907,804.

Net cash used in operating activities amounted to $567,978 for the nine month period ended September 30, 2009, as compared to $793,124 of net cash used in operations for the nine month period ended September 30, 2008. The primary reason for the higher utilization of cash in 2008 was to fund the new software development business of the Company. Net cash provided by financing activities amounted to a $568,492 and $569,755 for the nine months ended September 30, 2009 and 2008, respectively. The larger amount in 2008 resulted from the exercise of stock options. The Company had net repayments of officers’ loans of $193,365 in 2008. During the nine months ended September 30, 2009 the Company did not use any cash in investing activities. The Company used $68,413 of cash in during the same period in 2008.

The Company does not have sufficient capital to meet its current cash needs, which include the costs of compliance with the continuing reporting requirements of the Securities Exchange Act of 1934, as amended. The Company intends to seek additional capital and long-term debt financing to attempt to overcome its working capital deficit. The Company will need between $150,000 and $200,000 annually to maintain its reporting obligations. Financing options may be available to the Company either via a private placement or through the public sale of stock. The Company will seek to raise sufficient capital to market NetThruster.com and to sustain monthly operations. There is no assurance, however, that the available funds will be available or adequate. Its need for additional financing is likely to persist.

Going Concern Qualification

The Company has incurred significant losses from operations, and such losses are expected to continue. The Company's auditors have included a "Going Concern Qualification" in their report for the year ended December 31, 2008. In addition, the Company has limited working capital. 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 the Company. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. The "Going Concern Qualification" may make it substantially more difficult to raise capital.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Not Applicable.

Item 4T. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information we are required to disclose is recorded, processed, summarized and reported, within the time periods specified in the rules and forms of the Commission. David Reichman, our Chief Executive Officer and our Principal Accounting Officer, is responsible for establishing and maintaining our disclosure controls and procedures.

Under the supervision and with the participation of our management, including the Chief Executive Officer and Principal Accounting Officer, we have evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) of the Exchange Act) as of the end of the period covered by this report. Based on that evaluation, the Chief Executive Officer and Principal Accounting Officer has concluded that, as of June 30, 2009 these disclosure controls and procedures were ineffective to ensure that all information required to be disclosed by us in the reports that we file or submit under the Exchange Act is: (i) recorded, processed, summarized and reported, within the time periods specified in the Commission’s rule and forms; and (ii) accumulated and communicated to our management, including our Chief Executive Officer and Principal Accounting Officer, as appropriate to allow timely decisions regarding required disclosure.

The term “internal control over financial reporting” is defined as a process designed by, or under the supervision of, the registrant’s principal executive and principal financial officers, or persons performing similar functions, and effected by the registrant’s board of directors, management and other personnel, 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 maintenance of records that in reasonable detail accurately and fairily reflect the transactions and dispositions of the assets of the registrant;
provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the registrant are being made only in accordance with authorizations of management and directors of the registrant; and
provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the registrant's assets that could have a material effect on the financial statements.

Changes in Internal Controls over Financial Reporting

There were no additional changes in our internal control over financial reporting that occurred during the fiscal quarter ended September 30, 2009 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Inherent Limitations over Internal Controls

TTI’s management does not expect that its disclosure controls or its internal control over financial reporting will prevent or detect all error and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system’s objectives will be met. The design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Further, because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, within TTI have been detected. These inherent limitations include the realities that judgments in decision making can be faulty and that breakdowns can occur because of simple error or mistake. Controls can also be circumvented by the individual acts of some persons, by collusion of two or more people, or management override of the controls. The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Projections of any evaluation of controls effectiveness to future periods are subject to risks. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies or procedures.

Our disclosure controls and procedures are designed to provide reasonable assurance of that our reports will be accurate. Our Chief Executive Officer and Principal Accounting Officer concludes that our disclosure controls and procedures were ineffective at that reasonable assurance level, as of the end of the period covered by this Form 10-Q. Our future reports shall also indicate that our disclosure controls and procedures are designed for this reason and shall indicate the related conclusion by the Chief Executive Officer and Principal Accounting Officer as to their effectiveness.

PART II OTHER INFORMATION

Item 1. Legal Proceedings

TTI has filed suit in United States District Court.against Dr. Steven Hoefflin for libel against the Company. The suit seeks redress in the form of enjoining the shareholder from any further harassment and in the form of damages from the shareholder and others who have allegedly abetted the shareholder’s actions. TTI is confident of prevailing in this suit although there is no assurance regarding the results of litigation. This case was dismissed in New York and we are currently evaluating if it would be productive to file the claim in the Los Angeles County Federal Court. In addition, we have recently become aware this same shareholder has filed a third party cross complaint against TTI and one of its officers, in Los Angeles Superior Court. TTI is confident of prevailing in this suit although there is no assurance regarding the results of litigation.

Item 1A.-Risk Factors

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

None.

Item 3. Defaults Upon Senior Securities

Not Applicable.

Item 4. Submission of Matters to a Vote of Security Holders

Not Applicable.

Item 5. Other Information

TTI signed a three year employment contract with Kathy M. Griffin as Director of Strategic Planning for the company. Mrs. Griffin started her employment on April 1st, 2009. Subsequently, the Board of Directors, on May 28th, 2009, elected her as a Director for a one year term, and appointed her President of TTI.

Further, TTI signed a definitive exchange agreement with Bioenergy Applied Technologies, Inc. (“BAT”) BioEnergy Systems Management Inc., Wimase Limited and Energetic Systems Inc., LLC on April 24th, 2009. Pursuant to this agreement, TTI acquired all of the issued and outstanding shares of BAT in exchange for 3,500,000 shares of TTI’s common stock. BAT is the originator of various proprietary, clean-tech, environmentally-friendly technologies and intellectual properties in the areas of hazardous waste destruction, energetic materials, chemical recycling processes, and coal gasification. Specifically, BAT has key intellectual properties which have been applied to the construction of systems and equipment used for the destruction of pharmaceutical, medical, biological, chemical, red bag and other hazardous waste, with clean reusable energy produced as a byproduct.

Item 6. Exhibits

(a) Exhibits

EXHIBIT NO.		DESCRIPTION
3.1		Amended and Restated Articles of Incorporation
31.1		Section 302 Certification of Chief Executive Officer
31.2		Section 302 Certification of Chief Financial Officer
32.1		Section 906 Certification of Chief Executive Officer
32.2		Section 906 Certification of Chief Financial Officer

(b)	The following is a list of Current Reports on Form 8-K filed by the Company during and subsequent to the quarter for which this report is filed.

Form 8 –K filed on October 19th, 2009

related to the completion of the acquisition of BAT

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	TREE TOP INDUSTRIES, INC.

Dated: November 11, 2009	By:	/s/ David Reichman
		David Reichman
		Chief Executive Officer and Chairman (Principal Executive Officer)

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By: David Reichman	Dated: November 11, 2009
David Reichman,
Chief Executive Officer and Chairman (Principal Executive Officer)

By: Kathy M. Griffin	Dated: November 11, 2009
Kathy M. Griffin
Director, President

By: David Reichman	Dated: November 11, 2009
David Reichman
Chief Financial Officer, (Principal Financial/Accounting Officer)