Millennium Prime, Inc. - Quarter Report: 2010 June (Form 10-Q)

Unassociated Document

UNITED STATES OF AMERICA

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, 2010

¨	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 000-28459

Millennium Prime, Inc.

(Exact name of Registrant as specified in its charter)

Delaware		22-3360133
(State or Other Jurisdiction of		(I.R.S. Employer
Incorporation or Organization)		Identification No.)

6538 Collins Ave, Suite 262, Miami Beach, FL 33041

(Address of principal executive offices) (Zip Code)

786-347-9309

(Registrant's telephone number)

400 Garden City Plaza, Garden City, NY 11530

(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 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 ¨

Accelerated filer ¨

Non-accelerated filer ¨

(Do not check if a smaller

reporting company)

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 ¨ No x

The number of the registrant's shares of common stock outstanding was 229,937,784 as of August 20, 2010.

MILLENNIUM PRIME, INC.

FORM 10-Q

TABLE OF CONTENTS

		PAGE
PART I. FINANCIAL INFORMATION

Item 1.	Consolidated Financial Statements

	Consolidated Balance Sheets as of June 30, 2010 (unaudited) and September 30, 2009 (audited)	3

	Consolidated Statements of Operations for the three and nine months ended June 30, 2010 and 2009 (unaudited)	4

	Consolidated Statements of Cash Flows for the nine months ended June 30, 2010 and 2009 (unaudited)	5

	Notes to the Unaudited Consolidated Financial Statements	6

Item 2.	Management's Discussion and Analysis or Plan of Operation	12

Item 3.	Management's Quantitative and Qualitative Disclosures About Market Risk

Item 4T.	Controls and Procedures	16

PART II. OTHER INFORMATION

Item 1A.	Risk Factors	17

Item 6.	Exhibits	18

Signatures		19

FORWARD-LOOKING STATEMENTS

Certain statements made in this Quarterly Report on Form 10-Q are "forward-looking statements" regarding the plans and objectives of management for future operations and market trends and expectations. Such statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking statements included herein are based on current expectations that involve numerous risks and uncertainties. Our plans and objectives are based, in part, on assumptions involving the continued expansion of our business. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond our control. Although we believe that our assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the forward-looking statements included in this report will prove to be accurate. In light of the significant statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that our objectives and plans will be achieved. We undertake no obligation to revise or update publicly any forward-looking statements for any reason. The terms "we", "our", "us", or any derivative thereof, as used herein refer to Millennium Prime, Inc., a Delaware corporation, and its predecessors.

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

MILLENNIUM PRIME, INC. and Subsidiaries

CONSOLIDATED BALANCE SHEETS

	June 30, 2010			September 30, 2009
	(Unaudited)			(Audited)
CURRENT ASSETS

CURRENT ASSETS
Cash	$	399		$	416,622
Notes receivable and accrued interest receivable, net of allowance		0			0
TOTAL ASSETS (all current)	$	399		$	416,622

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
Accounts payable and accrued expense	$	755,310			770,950
Interest payable on convertible debentures		22,941			1,333,108
8% Convertible debenture - in default		0			2,066,250
8% Convertible debenture - newly issued		280,000			775,000
Convertible Note - Quest Capital Markets		425,590			0
Other liabilities		231,149			0
Advances and note payable, shareholders		0			389,335
Line of credit payable		150,000			150,000
Total current liabilities		1,864,990			5,484,643

COMMITMENTS and CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred stock, par value $1.00, 10,000,000 shares authorized, 1,000,000 and 0, shares issued, respectively		1,000,000			0
Common stock - par value $.0001, per share; authorized, 1,000,000,000 shares; 229,937,784 and 51,284 shares issued and outstanding, respectively		22,993			5
Additional paid in capital		51,424,189			15,595,045
Accumulated deficit		(54,311,773	)		(20,663,071	)

		(1,,591	)		(5,068,021	)

	$	399		$	416,622

The accompanying notes are an integral part of this statement.

MILLENNIUM PRIME, INC. and Subsidiaries

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Three months ended			Three months ended			Nine months ended			Nine months ended
	June 30, 2010			June 30, 2009			June 30, 2010			June 30, 2009

Net sales	$	0		$	0		$	0		$	0
Cost of sales		0			0			0			0

Gross profit		0			0			0			0

General and administrative expenses		32,193,369			88,451			33,227,640			148,395

Loss from operations		(32,193,369	)		(88,451	)		(33,227,640	)		(148,395	)

Other income and (expense)
Interest income		8,569			2,666			22,433			2,666
Valuation allowance		(48,411	)		(203,842	)		(115,275	)		(203,842	)
Interest and penalties expense		(201,457	)		(78,086	)		(328,220	)		(218,179	)

Loss before provision for income taxes		(32,434,668	)		(367,713	)		(33,648,702	)		(567,750	)
Provision for income taxes		0			0			0			0

NET LOSS	$	(32,434,668	)	$	(367,713	)	$	(33,648,702	)	$	(567,750	)

Basic and diluted earnings (loss) per share		(0.189	)	$	(9.59	)	$	0.510	)	$	(18.11	)

Weighted-average shares outstanding-basic and diluted		171,188,784			38,355			65,942,369			31,345

The accompanying notes are an integral part of this statement.

MILLENNIUM PRIME, INC. and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Nine months ended			Nine months ended
	June 30, 2010			June 30, 2009
Cash flows from operating activities
Net (loss)	$	(33,648,702	)	$	(567,750	)
Valuation allowance		115,275
Inducement expense related to conversion of debt to equity		108,534
Amortization of beneficial conversion of debt		62,062
Shares issued for services		32,680,000
Changes in assets and liabilities
Accounts payable and accrued expense		171,883			287,370
Net cash used in operating activities		(510,948	)		(280,380	)

Cash flows from investing activities
Increase in notes receivable		(115,275	)
Purchase of furniture and equipment
Net cash used in investing activities		(115,275	)		0

Cash flows from financing activities
Advances from shareholders					47,600
Issuance of convertible debentures		210,000			775,000
Increase (decrease) in convertible debentures
Net cash provided by financing activities		210,000			822,600

NET INCREASE (DECREASE) IN CASH		(416,223	)		542,220
Cash at beginning of period		416,622			0

Cash at end of period	$	399		$	542,220

Supplemental disclosures of cash flow information:
Cash paid during the period for
Interest		0			0
Taxes		0			0
Noncash investing and financing transactions:
Equity issued for services	$	32,680,000			0
Debt converted to equity	$	3,773,629			333,750

The accompanying notes are an integral part of this statement.

MILLENNIUM PRIME, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 1 - BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements of Millennium Prime, Inc. (the "Company") included herein have been prepared in accordance with generally accepted accounting principles for interim period reporting in conjunction with the instructions to Form 10-Q. Accordingly, these statements do not include all of the information required by generally accepted accounting principles for annual financial statements, and are subject to year-end adjustments. In the opinion of management, all known adjustments (consisting of normal recurring accruals and reserves) necessary to present fairly the financial position, results of operations and cash flows for the three and nine month period ended June 30, 2010 have been included. The interim statements should be read in conjunction with the financial statements and related notes included in the Company's annual report on Form 10-K for the year ended September 30, 2009.

The financial statements set forth herein represent the operations of Millennium Prime, Inc. and its subsidiaries for the three and nine month period ending June 30, 2010. The operating results for the three and nine months ended June 30, 2010 are not necessarily indicative of the results to be expected for the full year.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

ORGANIZATION

Primarily due to the lack of financing, Millennium Prime, Inc. (formerly known as Genio Group, Inc. and subsidiaries) referred to herein as "Millennium" or the "Company" has closed all operations and terminated all of its employees except for its officers.

We are a developmental corporation that is developing innovative lifestyle brands for the Generation-Y demographic. Our focus is on marketing products for the beverage, apparel and general merchandise categories where we can achieve a clear and authentic market position. We target consumers who live a lifestyle filled with high style, artistic edge and a demand for the best and participate in current trends through premium products that embody the values and aspirations of the millennial generation & beyond. In addition to organic growth, we will grow via acquisition of new brands, or partnership with existing brands, to bolster our beverage, apparel and lifestyle merchandise business lines serving our Millennial trendsetter focused strategies.

One of our product companies, EntMark Partners, assist the entertainment industry in marketing specific projects and events. EntMark Partners mission is to empower small and large artists and companies with the ability to optimize the revenue they make from individual events through interaction via cell phone messaging. By utilizing their Cell Phone Text Based Contest Program, we can enable artists and event organizers to reach their fan base daily on a broader and yet more focused basis.

MILLENNIUM PRIME, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

GOING CONCERN

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company had a net working capital deficiency of $1,864,591 and a stockholders' deficiency of $1.9 million at June 30, 2010 and negative cash flow from operations for the nine months ended June 30, 2010. The Company is in default under its line of credit. These conditions raise substantial doubt about the Company's ability to continue as a going concern.

Management expects to incur additional losses in the foreseeable future and recognizes the need to raise capital to remain viable. The accompanying consolidated financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern.

STOCK OPTIONS AND WARRANTS

The Company adopted the accounting guidance for Share-Based Payments. Under this application, the Company is required to record compensation expense using a fair-value-based measurement method for all awards granted after the date of adoption and for the unvested portion of previously granted awards that remain outstanding at the date of adoption. Per the provisions of this accounting guidance, the Company has adopted the policy to recognize compensation expense on a straight-line attribution method.

The Company had no issuances of stock options or warrants in the past two years, nor have any such prior issued options or warrants vest in the past two years.

FAIR VALUE OF FINANCIAL INSTRUMENTS

The fair value measurement provision defines fair value, establishes a framework for measuring fair value under generally accepted accounting principles, and expands disclosures about fair value measurements. This statement applies under other accounting pronouncements that require or permit fair value measurements, the FASB having previously concluded in those accounting pronouncements that fair value is a relevant measurement attribute.

Valuation techniques for fair value are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our best estimate, considering all relevant information. These valuation techniques involve some level of management estimation and judgment. The valuation process to determine fair value also includes making appropriate adjustments to the valuation model outputs to consider risk factors.

The fair value hierarchy of our inputs used in the determination of fair value for assets and liabilities during the current period consists of three levels. Level 1 inputs are comprised of unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 inputs include quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 inputs incorporate our own best estimate of what market participants would use in pricing the asset or liability at the measurement date where consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. If inputs used to measure an asset or liability fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the asset or liability. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.

We are unable to determine the fair value of the legacy accounts payables, debentures in default and the line of credit payable. We have significant legacy accounts payable balances that are at least four years old and that we believe will never require a financial payment for a variety of reasons. Management is currently assessing the fair value of these payables.

The carrying value of our cash and cash equivalents, accounts payable and other current liabilities approximate fair value because of their short-term maturity. All of our other significant financial assets, financial liabilities and equity instruments are either recognized or disclosed in the financial statements together with other information relevant for making a reasonable assessment of future cash flows, interest rate risk and credit risk. Where practicable the fair values of financial assets and financial liabilities have been determined and disclosed; otherwise only available information pertinent to fair value has been disclosed.

USE OF ESTIMATES

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions which affect the reporting of assets and liabilities as of the dates of the financial statements and revenues and expenses during the reporting period. These estimates primarily relate to the deferred tax asset and debt valuations. Actual results could differ from these estimates.

MILLENNIUM PRIME, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

REVERSE STOCK SPLIT

The Company effectuated a 2000 for 1 reverse stock split on December 30, 2009. All per share and share data have been retroactively presented as if this reverse stock split occurred at the beginning of the periods presented.

NEW ACCOUNTING PRONOUNCEMENTS

Revenue Recognition – Multiple Deliverable Revenue Arrangements

In October 2009, the FASB issued guidance for Revenue Recognition – Multiple Deliverable Revenue Arrangements ( Subtopic 605-25 ) “Subtopic”. This accounting standards update establishes the accounting and reporting guidance for arrangements under which the vendor will perform multiple revenue – generating activities. Vendors often provide multiple products or services to their customers. Those deliverables often are provided at different points in time or over different time periods. Specifically, this Subtopic addresses how to separate deliverables and how to measure and allocate arrangement consideration to one or more units of accounting. The amendments in this guidance will affect the accounting and reporting for all vendors that enter into multiple-deliverable arrangements with their customers when those arrangements are within the scope of this Subtopic.

This Statement is effective for fiscal years, and interim periods within those fiscal years, beginning on or after June 15, 2010. Earlier adoption is permitted. If a vendor elects early adoption and the period of adoption is not the beginning of the entity’s fiscal year, the entity will apply the amendments under this Subtopic retrospectively from the beginning of the entity’s fiscal year. The presentation and disclosure requirements shall be applied retrospectively for all periods presented. Management believes this Statement will have no impact on the financial statements of the Company once adopted.

All other issued accounting pronouncement but not yet effective have been reviewed and are not deemed to have a material financial impact on the Company once adopted.

MILLENNIUM PRIME, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 3 – NOTES RECEIVABLE

The Company made a number of short term loans to Bong Spirit Imports, LLC. Approximately $301,000 of the loans have an interest rate of 10% per annum and matured on July 31, 2010. These loans are secured by a security agreement in the equipment, fixtures, inventory and accounts receivable of Bong Spirit Imports, LLC. Due to uncertainty concerning the priority of the security interest, the Company has fully reserved these notes as of June 30, 2010.

The Company is negotiating the resolution to the matured notes and the closing of the pending merger with Bong. Bong is an importer and distributor of alcohol products including Bong Vodka, Bong’s offices are located in Orlando, Florida.

NOTE 4 - CONVERTIBLE DEBENTURES

During the year ended September 30, 2009, certain debenture holders converted $333,750 of such debentures for 22,250 shares of common stock, which was the fair value of such shares issued.

During the period ended December 30, 2009, certain debenture holders converted $1,760,000 of such debentures together with accrued interest penalties and advances for 500,000 shares of common stock, which was the fair value of such shares issue. The remaining debentures were acquired by the Company’s former sole officer and director and assigned to Quest Capital Markets, Inc on December 23, 2009.

MILLENNIUM PRIME, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 5 – OTHER DEBT LINE OF CREDIT

On May 4, 2004 the Company entered into a loan and security agreement with IIG Capital, LLC, as agent for IIG Trade Opportunities Fund N.V., as lender. The negotiated outstanding balance under the line of credit at June 30, 2010 was $150,000.

The Company is in default under this agreement. In December 2005, the Company agreed to settled its debt to IIG by the immediate payment of $50,000 in cash, the issuance of a $25,000 note due on June 30, 2006 and the conversion of approximately $125,000 of past due fees and interest into a convertible debenture on terms similar to those of the Company's other convertible debentures. As of June 30, 2010, the note and the debentures have not been issued.

NOTE 6 – CONVERTIBLE DEBENTURES – NEWLY ISSUED

The Company issued $985,000.00 of Series A 8% convertible debentures. The Series A debentures are due and payable on the earlier of (a) nine months from the date of issuance or (b) when such amounts are declared due and payable by the holder or automatically due and payable upon or after an event of default (as defined in the debenture). The holder has the right until August 31, 2010 to convert any outstanding and unpaid principal and/or accrued interest due under the debentures into fully paid and nonassessable shares of the Company’s Common Stock at seventy-five percent (75%) of the five-day average closing bid price of the Company’s Common Stock for the five (5) trading days immediately prior to the date of the Conversion Notice, but in no event shall the conversion price be less than $.04 or greater than $.08 per share. After August 31, 2010 and expiring on the Maturity Date the holder shall have the right to convert any outstanding and unpaid principal and/or accrued interest due under the debentures into fully paid and nonassessable shares of the Company’s Common Stock at a fixed conversion price of $.20 per share (“Fixed Conversion Price”)” Thru June 30, 2010 the Company has received conversion notices from holders of an aggregate principal amount of $705,000 of the debentures. Inclusive of accrued interest of $58,820, the Company is obligated to issue the holders an aggregate of 19,005,750 shares. The Company recorded additional interest expense of $108,534 related to this conversion at June 30,02010.

NOTE 7 – CONVERTIBLE NOTE _ QUEST CAPITAL MARKETS, INC

On December 23, 2009, the Company’s former sole officer and director assigned certain convertible debentures and other liabilities of the Company owed to him to Quest Capital Markets, Inc (Quest). On March 24, 2010, the Company and Quest entered into an agreement whereby these liabilities were restructured. These amounts accrue interest at a rate of 8% per annum and are convertible into shares of Company common stock at the rate of $0.001

NOTE 8 – EQUITY TRANSACTIONS

During December 2009, convertible debenture holders converted principal plus accrued interest, advances and penalties in the amount of $3,046,629, for 500,000 shares of common stock.

On October 29, 2009, the Company filed an amendment to its Certificate of Incorporation to (i) change its name to Millennium Prime, Inc.; (ii) effect a reverse split of all of the outstanding shares of its Common Stock at a ratio of one-for-two thousand (1 for 2000); increase our authorized Common Stock from Two Hundred Million (200,000,000) shares, par value $.0001 to Two Hundred Fifty Million (250,000,000) shares, par value $.0001; and (iv) authorize Ten Million (10,000,000) shares of Preferred Stock, par value $1.00 per share, with such designation rights and preferences as may be determined from time to time by our Board of Directors. Concurrently, with the foregoing, the Board of Directors approved the creation of One Million (1,000,000) shares of Series A Preferred Stock with the rights and preferences defined in the amendment to our Certificate of Incorporation including the right of each issued and outstanding share of Series A Preferred Stock to have the number of votes equal to the result of: (a) the number of shares of our Common Stock issued and outstanding at the time of such vote multiplied by 2.33334; and divided by (b) the total number of Series A Preferred shares issued and outstanding at the time of the vote.

As a result of the 1 for 2000 reverse stock split the number of issued and outstanding shares of our Common Stock was decreased from 99,981,787 to 51,284, after issuing one (1) share of our Common Stock to stockholders who would be entitled to a fractional share as a result of the reverse stock split.

On December 30, 2009, the Company executed a Restated and Amended Asset Purchase Agreement (“Amended Agreement”), that amended the original Asset Purchase Agreement dated June 21, 2009 by and among the Company, Millennium Prime Nevada and the shareholders of Millennium Prime Nevada. The Amended Agreement provided for an increase in the number of common shares issuable to the Millennium Prime shareholders. As a result of the Amended Agreement the Company acquires certain assets from Millennium Prime in exchange for: (i) an aggregate of One Million (1,000,000) restricted shares of the Company’s Series A Preferred Stock, $1.00 par value per share (the “Series A Preferred Stock”); and (ii) an aggregate of Twenty-Seven Million (27,000,000) restricted shares of the Company’s common stock $0.0001 par value per share. This transaction, together with the 2000 for 1 reverse stock split discussed above and the conversion of convertible debt discussed below have been accounted for as a recapitalization of the Company at December 30, 2009.

MILLENNIUM PRIME, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The Company completed the acquisition on December 30, 2009, at which time each of the current officers and directors of the Company resigned and John F. Marchese the President of Millennium Prime Nevada was elected to the Company’s board of directors and was appointed the Company’s President and Chief Executive Officer.

On December 30, 2009, the Company issued an aggregate of 500,000 shares of its Common Stock to Steven A. Horowitz, the Company’s former sole officer and director, and his designees and assigns. The shares were issued in consideration of Mr. Horowitz’ efforts in settling some of the Company’s indebtedness and for his General Release, releasing the Company from any and all past, present and future obligations.

On April 9, 2010, the Company issued 22,000,000 shares of its Common Stock to Quest Capital Markets, Inc. and its assignees upon the conversion of an aggregate of $22,000.00 of outstanding indebtedness. The original debt was incurred by the Company in 2004. The certificates evidencing the above mentioned shares were issued without legend in that Rule 144 permits the Quest to tack back to the date of the debt which was more than one year prior to issuance.

On May 11, 2010, the Company filed Schedule 14C with the Securities and Exchange Commission providing notice that certain stockholders of the Company have consented to taking of corporate actions by consent in lieu of a meeting of stockholders. The corporate actions will be effective 20 days after the mailing of this information statement to amend our Certificate of Incorporation to increase the number of shares of Common Stock the Company is authorized to issue to 1,000,000,000.

On April 9, 2010, the Company issued 875,000 shares of its Common Stock to Private Research Holdings LLC. The shares were issued as compensation for services rendered to the Company by each recipient

Thru June 30, 2010 the Company has received conversion notices from holders of an aggregate principal amount of $705,000 of the debentures. Inclusive of accrued interest of $58,820, the Company is obligated to issue the holders an aggregate of 19,005,750 shares

NOTE 9 – SUBSEQUENT EVENTS

On July 16, 2010, the Company and the principal shareholders/members of Bong entered into an Amendment to the Securities Exchange Agreement whereby the Company agreed to increase the number of shares issuable to the Bong shareholders/members upon closing from 30,000,000 to 60,000,000. The closing of this transaction is subject to a number of conditions including but limited to the Company providing Bong with $400,000 of capital at the Closing. The Company anticipates that the closing will occur no later than August 31, 2010. The Company has been a marketing partner and financial investor in Bong since 2009, to date the Company has loaned Bong approximately $341,000.

The Company issued $985,000.00 of Series A 8% convertible debentures. The Series A debentures are due and payable on the earlier of (a) nine months from the date of issuance or (b) when such amounts are declared due and payable by the holder or automatically due and payable upon or after an event of default (as defined in the debenture). The holder has the right until August 31, 2010 to convert any outstanding and unpaid principal and/or accrued interest due under the debentures into fully paid and nonassessable shares of the Company’s Common Stock at seventy-five percent (75%) of the five-day average closing bid price of the Company’s Common Stock for the five (5) trading days immediately prior to the date of the Conversion Notice, but in no event shall the conversion price be less than $.04 or greater than $.08 per share. After August 31, 2010 and expiring on the Maturity Date the holder shall have the right to convert any outstanding and unpaid principal and/or accrued interest due under the debentures into fully paid and nonassessable shares of the Company’s Common Stock at a fixed conversion price of $.20 per share (“Fixed Conversion Price”). To date, the Company has received conversion notices from holders of an aggregate principal amount of $765,000 of the debentures. Inclusive of accrued interest of $60,813, the Company is obligated to issue the holders an aggregate of 20,740,325 shares.

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

The following contains forward-looking statements based on current expectations, estimates and projections about our industry, management's beliefs, and assumptions made by management. All statements, trends, analyses and other information contained in this report relative to trends in our financial condition and liquidity, as well as other statements, including, but not limited to, words such as "anticipate," "believe," "plan," "intend," "expect," "predict," and other similar expressions constitute those statements. These statements are not guarantees of future performance and are subject to risks and uncertainties that are difficult to predict. Accordingly, actual results may differ materially from those anticipated or expressed in the statements.

OVERVIEW

On June 21, 2009, Genio Group, Inc. entered into an agreement and plan of reorganization with Millennium Prime, Inc., a Nevada corporation (“Millennium Prime Nevada”) and the shareholders of Millennium Prime Nevada. Pursuant to the Agreement, the Company acquired certain assets of Millennium Prime Nevada, in exchange for the issuance of 9,000,000 shares of the Company’s Common and 1,000,000 shares of the Company’s Series A Preferred Stock. Further our Board of Directors unanimously adopted a resolution approving an amendment to Certificate of Incorporation to change our name from “Genio Group, Inc.” to “Millennium Prime, Inc.” (which subsequently caused a change of our symbol and CUSIP), also to approve an increase our of authorized common stock from Two Hundred Million (200,000,000) par value $0.0001, to Two Hundred Fifty Million (250,000,000), par value $0.0001 per share, also to approve a 2000 for 1 reverse stock split, and also to authorize Ten Million (10,000,000) shares of blank check preferred stock.

On April 9, 2010, the Company issued an aggregate of 160,000,000 shares of its Common Stock to John F. Marchese (75,000,000), the Company’s CEO and Chairman of the Board, and JPA Capital, LLC (85,000,000), a principal shareholder of the Company to adjust the original purchase price of Millennium Prime, Inc. - Nevada. The adjustment was made as a direct result of the Company being delisted from the OTC-Bulletin Board due to the Company’s delinquent SEC filing status caused by former management. The shares were issued in reliance upon the exemptions from the registration requirements of the Securities Act of 1933, as amended (the “Act”), pursuant to Section 4(2) of the Act. The certificates evidencing the above mentioned shares contain a legend (1) stating that the shares have not been registered under the Act and (2) setting forth or referring to the restrictions on transferability and sale of the shares under the Act.

On December 30, 2009, the Company and an investor holding $1,760,000 principal amount of the Company’s issued and outstanding convertible debentures agreed to convert their entire indebtedness into an aggregate of 500,000 shares of our Common Stock.

Historically, the Company had been a developer and marketer of entertainment and leisure products. Currently, our purpose is to execute the business plan of Millennium Prime to develop innovative lifestyle brands for the Generation-Y demographic in the beverage, apparel, merchandise and entertainment categories. In addition to organic growth, we will seek the acquisition of new brands, as well as strategic partnership with existing brands, to bolster our lifestyle business lines serving our Millennial trendsetter focused strategies.

This discussion of the proposed business is purposefully general and is not meant to be restrictive of our virtually unlimited discretion to search for and enter into potential business opportunities. We anticipate that we may be able to participate in only one potential business venture because we have nominal assets and limited financial resources. This lack of diversification should be considered a substantial risk to our stockholders because it will not permit us to offset potential losses from one venture against gains from another.

We may seek a business opportunity with entities which have recently commenced operations, or which wish to utilize the public marketplace in order to raise additional capital in order to expand into new products or markets, to develop a new product or service, or for other corporate purposes. We may acquire assets and establish wholly-owned subsidiaries in various businesses or acquire existing businesses as subsidiaries. We anticipate that the selection of a business opportunity in which to participate will be complex and extremely risky. Due to general economic conditions, rapid technological advances being made in some industries and shortages of available capital, management believes that there are numerous firms seeking the perceived benefits of a publicly registered corporation. These perceived benefits may include facilitating or improving the terms on which additional equity financing may be sought, providing liquidity for incentive stock options or similar benefits to key employees, providing liquidity (subject to restrictions of applicable statutes), for all stockholders and other factors. Potentially, available business opportunities may occur in many different industries and at various stages of development, all of which will make the task of comparative investigation and analysis of such business opportunities extremely difficult and complex.

The analysis of new business opportunities will be undertaken by, or under the supervision of, Mr. John F. Marchese, our chief executive officer and sole director, and our Board of Directors, and corporate advisors, all of whom may not be considered professional business analysts. Mr. Marchese will be the key person in the search, review and negotiation with potential acquisition or merger candidates. We intend to concentrate on identifying preliminary prospective business opportunities which may be brought to our attention through present associations of our officers and directors, or by our stockholders. In analyzing prospective business opportunities, we will consider such matters as the available technical, financial and managerial resources; working capital and other financial requirements; history of operations, if any; prospects for the future; nature of present and expected competition; the quality and experience of management services which may be available and the depth of that management; the potential for further research, development, or exploration; specific risk factors not now foreseeable but which then may be anticipated to impact our proposed activities; the potential for growth or expansion; the potential for profit; the perceived public recognition of acceptance of products, services, or trades; name identification; and other relevant factors. We will not acquire or merge with any company for which audited financial statements cannot be obtained within the time period prescribed by applicable rules of the Securities and Exchange Commission which is presently four business days from the closing date of the transaction. This requirement for readily available audited financial statement may require us to preclude a transaction with a potential candidate which might otherwise be beneficial to our stockholders.

We will not restrict our search for any specific kind of company, but may acquire a venture which is in its preliminary or development stage, which is already in operation, or in essentially any stage of its corporate life. It is impossible to predict at this time the status of any business in which we may become engaged, in that such business may need to seek additional capital, may desire to have its shares publicly traded, or may seek other perceived advantages which we may offer. However, we do not intend to obtain funds in one or more private placements to finance the operation of any acquired business opportunity until such time as we have successfully consummated such a merger or acquisition.

We anticipate that we will incur nominal expenses in the implementation of our business plan described herein. Because we have no capital with which to pay these anticipated expenses, these expenses will be paid by certain shareholders as interest-free loans. However, the only opportunity to have these loans repaid will be from a prospective merger or acquisition candidate. Repayment of any loans made on our behalf will not impede, or be made conditional in any manner, to consummation of a proposed transaction.

In implementing a structure for a particular business acquisition, we may become a party to a merger, consolidation, reorganization, joint venture, or licensing agreement with another corporation or entity. We may also acquire stock or assets of an existing business. On the consummation of a transaction, it is probable that our present management and stockholders will no longer be in control of our company. In addition, our directors may, as part of the terms of the acquisition transaction, resign and be replaced by new directors without a vote of our stockholders or may sell their stock. Any terms of sale of the shares presently held by officers and/or directors will be also afforded to all other stockholders on similar terms and conditions. Any and all such sales will only be made in compliance with federal and applicable state securities laws.

We anticipate that any securities issued in any such reorganization would be issued in reliance upon exemption from registration under applicable federal and state securities laws. In some circumstances, however, as a negotiated element of a transaction, we may agree to register all or a part of such securities immediately after the transaction is consummated or at specified times thereafter. If such registration occurs, of which there can be no assurance, it will be undertaken by the surviving entity after we have successfully consummated a merger or acquisition. The issuance of substantial additional securities and their potential sale into any trading market which may develop in our securities may have a depressive effect on the value of our securities in the future, if such a market develops, of which there is no assurance.

On April 15, 2010, we entered into a Securities Exchange Agreement with the principal shareholders/members of Bong Spirit Imports, LLC (“Bong”) a Florida Limited Liability Corporation pursuant to which the Company will acquire 100% of the outstanding shares/membership interests in exchange for an aggregate of 30,000,000 shares of the Company’s common stock. On July 16, 2010, the Company and the principal shareholders/members of Bong entered into an Amendment to the Securities Exchange Agreement whereby the Company agreed to increase the number of shares issuable to the Bong shareholders/members upon closing from 30,000,000 to 60,000,000. The closing of this transaction is subject to a number of conditions including but limited to the Company providing Bong with $400,000 of capital at the Closing. The Company anticipates that the closing will occur no later than August 31, 2010. The Company has been a marketing partner and financial investor in Bong since 2009, to date the Company has loaned Bong approximately $341,000.

Bong is an importer and distributor of premium alcohol products including Bong Vodka, Bong’s offices are located in Orlando, Florida.

RESULTS OF OPERATIONS

Because we have not had any material business operations, other then the financing of Bong Spirit Imports, LLC. , since the quarter ended December 30, 2004, we did not have any revenues during the three and nine month periods ended June 30, 2010 and 2009.

General and administrative expenses for the three months ended June 30, 2010 and 2009 were $32,193,369 and $88,451, respectively consisting of general and administrative expense and, in the 2010 period, $32,000,000 of compensation expense related to the April 9, 2010 issuance of 160 million shares previously discussed. Interest expense for the three months ended June 30, 2010 and 2009 was $201,457 and $78,086 respectively, related to the convertible debentures. Due to uncertainty concerning the priority of the security interest in the Bong Spirit Imports LLC, the Company has fully reserved these notes as of June 30, 2010.

General and administrative expenses for the nine months ended June 30, 2010 and 2009 were $33,227,640 and $148,395, respectively consisting of general and administrative expense and, in the 2010 period, $32,000,000 of compensation expense related to the April 9, 2010 issuance of 160 million shares previously discussed. Included in general and administrative expenses for the nine months ended June 30, 2010 was $505,000 of expenses related to the issuance of 500,000 shares of common stock to our former Chairmen and CEO for services and other consideration. Interest expense for the nine months ended June 30, 2010 and 2009 was $328,220 and $218,179, respectively, related to the convertible debentures. Due to uncertainty concerning the priority of the security interest in the Bong Spirit Imports LLC, the Company has fully reserved these notes as of June 30, 2010.

LIQUIDITY AND CAPITAL RESOURCES

As of June 30, 2010, we had $399 in cash and cash equivalents. Net cash used in operations for the nine months ended June 30, 2010 was $510,948 consisting of a net loss of $33,648,702 offset by non cash items of $32,965,871 and an increase in accounts payable and accrued expenses of $171,883 . The Company issued $210,000 in Series A 8% convertible debentures during the period ended June 30, 2010. The Company invested $92,842 in notes receivable during the period ended June 30, 2010.

At June 30, 2010 we had total assets of $399 and an accumulated deficit of $54,311,773 and the report from our independent registered public accounting firm on our audited financial statements at September 30, 2009 contains an explanatory paragraph regarding doubt as to our ability to continue as a going concern as a result of our significant recurring losses from operations since inception. As discussed earlier in this report, in the beginning of fiscal year 2005 we terminated our business operations and are now seeking to acquire assets or shares of an entity actively engaged in a business which generates revenues, or has the potential to generate revenues, in exchange for our securities. We cannot predict when, if ever, we will be successful in implementing this plan and, accordingly, we may be required to cease operations at any time. We do not have sufficient working capital to pay our operating costs for the next 12 months. We will require additional funds to pay our legal, accounting and other fees associated with the company and our filing obligations under federal securities laws, as well as to pay our other accounts payable generated in the ordinary course of our business. We will also need funds to satisfy the approximate $1.9 million of obligations on our balance sheet at June 30, 2010. We have no commitments from any party to provide such funds to us except for the convertible debentures. If we are unable to obtain additional capital as necessary, until such time as we are able to conclude a business combination, we will be unable to satisfy our obligations and otherwise continue to meet our reporting obligations under federal securities laws. In that event, our stock would no longer be quoted on the OTC Bulletin Board and our ability to consummate a business combination upon terms and conditions which would be beneficial to our existing stockholders would be adversely affected.

OFF-BALANCE SHEET ARRANGEMENTS

We had no off-balance sheet arrangements as of June 30, 2010.

ITEM 4 . CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures. We maintain “disclosure controls and procedures” as such term is defined in Rule 13a-15(e) under the Securities Exchange Act of 1934. In designing and evaluating our disclosure controls and procedures, our management recognized that disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of disclosure controls and procedures are met. Additionally, in designing disclosure controls and procedures, our management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible disclosure controls and procedures. The design of any disclosure controls and procedures is also based in part upon 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.

Our Chief Executive Officer and Chief Financial Officer, John F. Marchese, who serves as our principal financial and accounting officer, has evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report. Based on such evaluation, and as discussed in greater detail below, our Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were not effective:

• to give reasonable assurance that the information required to be disclosed by us in reports that we file under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and

• to ensure that information required to be disclosed in the reports that we file or submit under the Securities Exchange Act of 1934 is accumulated and communicated to our management, including our CEO and our Treasurer, to allow timely decisions regarding required disclosure.

During the analysis of our internal controls at June 30, 2010 in connection with our implementation of Section 404 of the Sarbanes-Oxley Act of 2002, we identified a number of controls, the adoption of which are material to our internal control environment and critical to providing reasonable assurance that any potential errors could be detected. Our analysis identified control deficiencies related to the start up of a new business venture or one time or first time transactions. While we have taken certain remedial steps during the three months ended June 30, 2010 to correct these control deficiencies, we have an inadequate number of personnel with the requisite expertise in generally accepted accounting principles to ensure the proper application thereof. Due to the nature of these material weaknesses in our internal control over financial reporting, there is more than a remote likelihood that misstatements which could be material to our annual or interim financial statements could occur that would not be prevented or detected.

Changes in Internal Control over Financial Reporting. There no other changes in our internal control over financial reporting during our last fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

ITEM 1.

LEGAL PROCEEDINGS

None

ITEM 1A.

RISK FACTORS

In addition to the other information set forth in this report, you should carefully consider the factors discussed under the caption “Risk Factors” in Part I, "Item 1. Description of Business" in our Annual Report on Form 10-KSB for the year ended September 30, 2009 which could materially affect our business prospects, financial condition or future results. There have been no other material changes during the three months ended December 30, 2009 to the risk factors discussed in the periodic report noted above.

ITEM 2.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

On April 9, 2010, the Company issued 875,000 shares of its Common Stock to Private Research Holdings LLC. The shares were issued as compensation for services rendered to the Company by each recipient. The shares were issued in reliance upon the exemptions from the registration requirements of the Securities Act of 1933, as amended (the “Act”), pursuant to Section 4(2) of the Act. The certificates evidencing the above mentioned shares contain a legend (1) stating that the shares have not been registered under the Act and (2) setting forth or referring to the restrictions on transferability and sale of the shares under the Act.

The Company issued $985,000.00 of Series A 8% convertible debentures. The Series A debentures are due and payable on the earlier of (a) nine months from the date of issuance or (b) when such amounts are declared due and payable by the holder or automatically due and payable upon or after an event of default (as defined in the debenture). The holder has the right until August 31, 2010 to convert any outstanding and unpaid principal and/or accrued interest due under the debentures into fully paid and nonassessable shares of the Company’s Common Stock at seventy-five percent (75%) of the five-day average closing bid price of the Company’s Common Stock for the five (5) trading days immediately prior to the date of the Conversion Notice, but in no event shall the conversion price be less than $.04 or greater than $.08 per share. After August 31, 2010 and expiring on the Maturity Date the holder shall have the right to convert any outstanding and unpaid principal and/or accrued interest due under the debentures into fully paid and nonassessable shares of the Company’s Common Stock at a fixed conversion price of $.20 per share (“Fixed Conversion Price”). To date, the Company has received conversion notices from holders of an aggregate principal amount of $765,000 of the debentures. Inclusive of accrued interest of $60,813, the Company is obligated to issue the holders an aggregate of 20,740,325 shares.

ITEM 3.

DEFAULTS UPON SENIOR DEBT

None

ITEM 4.

SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

We amended our Certificate of Incorporation to increase the number of shares of Common Stock the Company is authorized to issue to 1,000,000,000.stockholders of record at the close of business on April 20, 2010 representing 88.6% of our issued and outstanding Common Stock gave their written consent to the above corporate actions. This written consent was obtained pursuant to Section 228(a) of the Delaware General Corporation Law, as amended.

ITEM 5. OTHER INFORMATION

On April 15, 2010, we entered into a Securities Exchange Agreement with the principal shareholders/members of Bong Spirit Imports, LLC (“Bong”) a Florida Limited Liability Corporation pursuant to which the Company will acquire 100% of the outstanding shares/membership interests in exchange for an aggregate of 30,000,000 shares of the Company’s common stock. On July 16, 2010, the Company and the principal shareholders/members of Bong entered into an Amendment to the Securities Exchange Agreement whereby the Company agreed to increase the number of shares issuable to the Bong shareholders/members upon closing from 30,000,000 to 60,000,000. The closing of this transaction was subject to a number of conditions including but limited to the Company providing Bong with $400,000 of capital at the Closing. The Company anticipates that the closing will occur no later than August 31, 2010. The Company has been a marketing partner and financial investor in Bong since 2009, to date the Company has loaned Bong approximately $341,000.

Bong is an importer and distributor of alcohol products including Bong Vodka, Bong’s offices are located in Orlando, Florida.

ITEM 6. EXHIBITS

Exhibits:

Exhibit

No.

Description

31.1 Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1 Certification of the Chief Executive and Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

SIGNATURES

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.

		Millennium Prime, Inc.
		(Registrant)

Date: August 20, 2010		/s/ John F. Marchese

		Chief Executive and Financial Officer (principal executive and accounting officer)