UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 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 ~~September~~June 30, ~~2013~~2014

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

For the transition period from

Commission File No.

000-53186

BONAMOUR, INC.

(Exact name of registrant as specified in its charter)

Colorado		37-1441050
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

3500 Maple Avenue, Suite 1325, Dallas, Texas	75219
2301 Cedar Springs, Suite 450, Dallas, Texas	75201
(Address of principal executive offices)	(Zip Code)

(214) 855-0808

(Registrant’s telephone number, including area code)

4514 Cole Avenue, Suite 600, Dallas, Texas, 75205 (Former name, former address and former fiscal year if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes 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 the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ¨ Accelerated filer ¨

Non-accelerated filer ¨ 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 x No ¨

The number of shares outstanding of the Registrant’s Common Stock as of ~~October~~August 231, ~~2013~~2014 was 199,500,000.

TABLE OF CONTENTS

		Page
PART I –FINANCIAL INFORMATION		1
ITEM 1.	FINANCIAL STATEMENTS	1
	Condensed Balance Sheets as of September 30, 2013 (Unaudited) and December 31, 2012 (Audited)	1
	Condensed Balance Sheets as of June 30, 2014 (Unaudited) and December 31, 2013 (Audited)	1
	Condensed Statements of Operations for the Three and Nine Months Ended September 30, 2013 and 2012 (Unaudited)	2
	Condensed Statements of Operations for the Three and Six Months Ended June 30, 2014 and 2013 (Unaudited)	2
	Condensed Statements of Cash Flows for the Nine Months Ended September 30, 2013 and 2012 (Unaudited)	3
	Condensed Statements of Cash Flows for the Six Months Ended June 30, 2014 and 2013 (Unaudited)	3
	Notes to Condensed Financial Statements	4
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	6
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	87
ITEM 4.	CONTROLS AND PROCEDURES	8
PART II – OTHER INFORMATION		98
ITEM 1.	LEGAL PROCEEDINGS	98
ITEM 1A.	RISK FACTORS	98
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	98
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	9
ITEM 4.	MINE SAFETY DISCLOSURES	9
ITEM 5.	OTHER INFORMATION	9
ITEM 6.	EXHIBITS	9
SIGNATURES		9

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

BONAMOUR, INC.
CONDENSED BALANCE SHEETS
		September 30,				December 31,
			June 30,				December 31,
		2013				2012
			2014				2013
		~~(unaudited)~~	(unaudited)			~~(audited)~~	(audited)
~~ASSETS~~	ASSETS
Current Assets:
~~Cash~~	Cash	$	46$	7,512		$	~~26,452~~$	44
~~Inventory~~	Inventory		~~3,841~~	3,840			~~57,990~~	3,840
~~Prepaid expense~~	Prepaid expense		~~37,256~~	71,076			~~63,402~~	-
Advances to officer (Note 3)			-				25,000
	Total current assets			82,428				3,884
Total current assets			41,143				172,844
Other Assets:
Other Assets:
	Software development costs, net of amortization of
Software development costs, net of amortization of
	$15,000 and $12,500, respectively			-				2,500
$11,250 and $7,500, respectively			3,750				7,500
	Total other assets			-				2,500
Total other assets			3,750				7,500
	Total assets		$	82,428			$	6,384
Total assets		$	44,893			$	180,344
	LIABILITIES AND STOCKHOLDERS' DEFICIT
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current Liabilities:
Current Liabilities:
	Accounts payable		$	31,469			$	15,139
Accounts payable		$	8,147			$	60,765
	Loans from related parties			401,425				279,906
Loans from related parties (Note 3)			262,835				21,087
	Total current liabilities			432,894				295,045
Total current liabilities			270,982				81,852
Commitments and Contingencies
Commitments and Contingencies
Stockholders' Deficit:
Stockholders' Equity (Deficit):
	Preferred stock - no par value; 25,000,000 shares authorized;
Preferred stock - no par value; 25,000,000 shares authorized;
	5,000,000 shares of Series A issued and outstanding			210,000				210,000
5,000,000 shares of Series A issued and outstanding			210,000				210,000
	Common stock - no par value; 500,000,000 shares authorized;
Common stock - no par value; 500,000,000 shares authorized;
	199,500,000 shares issued and outstanding			15,000				15,000
199,500,000 shares issued and outstanding			15,000				15,000
	Additional paid in capital			32,756				32,756
Additional paid in capital			32,756				32,756
	Accumulated deficit			(608,222	)			(546,417	)
Accumulated deficit			(483,845	)			(159,264	)
	Total stockholders' deficit			(350,466	)			(288,661	)
Total stockholders' equity (deficit)			(226,089	)			98,492
Total liabilities and stockholders' deficit			$	82,428			$	6,384
Total liabilities and stockholders' equity (deficit)		$	44,893			$	180,344

The accompanying footnotes are an integral part of these condensed financial statements.

BONAMOUR, INC.
CONDENSED STATEMENTS OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2014 AND 2013
(Unaudited)
	Three Months Ended						~~Nine~~Six Months Ended
	September 30, 2013			September 30, 2012			September 30, 2013			September 30, 2012
	June 30, 2014			June 30, 2013			June 30, 2014			June 30, 2013
Revenue	$	-		$	-202,765		$	~~202,765~~-		$	-202,765
Cost of goods sold		-			-71,148			~~71,148~~-			-71,148
Gross profit		-			-131,617			~~131,617~~-			-131,617
Operating expenses:
Selling, general and administration		2623,~~152~~705			~~118~~174,~~327~~963			~~452~~59,~~448~~305			~~183~~426,~~785~~296
Amortization expense		1,250			1,250			32,~~750~~500			32,~~750~~500
Total operating expenses		2724,~~402~~955			~~119~~176,~~577~~213			~~456~~61,~~198~~805			~~187~~428,~~535~~796
Loss before taxes		(2724,~~402~~955	)		(~~119~~44,~~577~~596	)		(~~324~~61,~~581~~805	)		(~~187~~297,~~535~~179	)
Provision for income taxes		-			-			-			-
Net loss	$	(2724,~~402~~955	)	$	(~~119~~44,~~577~~596	)	$	(~~324~~61,~~581~~805	)	$	(~~187~~297,~~535~~179	)
Loss per share, basic and diluted	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)
Weighted average number of shares outstanding		199,500,000			199,500,000			199,500,000			199,500,000

The accompanying footnotes are an integral part of these condensed financial statements.

BONAMOUR, INC.
CONDENSED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012
FOR THE SIX MONTHS ENDED JUNE 30, 2014 AND 2013
(Unaudited)
	Nine Months Ended
	Six Months Ended
	September 30, 2013			September 30, 2012
	June 30, 2014			June 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(~~324~~61,~~581~~805	)	$	(~~187~~297,~~535~~179	)
Adjustments to reconcile net loss to net cash flows
provided by (used in) operating activities:
Amortization of software development costs		32,~~750~~500			32,~~750~~500
Change in operating assets and liabilities:
Inventory		~~54,149~~-			-54,150
Product deposit		-			(56,055	)
Advances to officer and related party		-			25,000
Customer deposit-related party		-			(471,379	)
Prepaid expense		(71,076	)		26,146
Advances to officer and related party		25,000			-
Accounts payable		16,330			(20,957	)
Prepaid expense		26,146			2,750
Amount due to related parties		121,519			184,129
Accounts payable		(52,618	)		(7,457	)
Net cash flows provided by (used in) operating activities		7,468			(26,211	)
Amount due to related parties		241,748			-
Net cash flows used in operating activities		(26,406	)		(715,926	)
CASH FLOWS FROM INVESTING ACTIVITIES		-			-
CASH FLOWS FROM FINANCING ACTIVITIES		-			-
Decrease in cash		(26,406	)		(715,926	)
Increase (decrease) in cash		7,468			(26,211	)
Cash, beginning of period		~~26,452~~44			126,~~511,338~~452
Cash, end of period	$	467,512		$	~~795,412~~241
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Interest paid	$	-		$	99-
Income taxes paid	$	-		$	-

The accompanying footnotes are an integral part of these condensed financial statements.

BONAMOUR, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2014

NOTE 1 – BASIS OF PRESENTATION AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

Interim Financial Reporting

While the information presented in the accompanying interim financial statements is unaudited, it includes all adjustments, which are, in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented in accordance with generally accepted accounting principles in the United States of America ("GAAP"). These interim financial statements follow the same accounting policies and methods of application as used in the December 31, ~~2012~~2013 audited financial statements of Bonamour, Inc. (the “''Company”''). All adjustments are of a normal, recurring nature. Interim financial statements and the notes thereto do not contain all of the disclosures normally found in year-end audited financial statements and these Notes to Condensed Financial Statements are abbreviated and contain only certain disclosures related to ~~the~~six ~~nine~~ month periods ended ~~September~~June 30, ~~2013~~2014 and ~~2012~~2013. It is suggested that these interim financial statements be read in conjunction with the Company’s audited financial statements and related notes for the year ended December 31, ~~2012~~2013 included in our Form 10-K, filed with the Securities Exchange Commission on ~~April~~March 1631, ~~2013~~2014. Operating results for the ~~three~~six ~~and nine~~ months ended ~~September~~June 30, ~~2013~~2014 are not necessarily indicative of the results that can be expected for the year ending December 31, ~~2013~~2014.

Recent Accounting Pronouncements

The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on its results of operations, financial position or cash flow.

NOTE 2 -- GOING CONCERN

The financial statements of the Company have been prepared in conformity with GAAP, and assume that the Company will continue as a going concern. The Company expects to incur losses as it expands. To date, the Company's cash flow requirements have been met through the product sales, sale of its common stock, cash advances from related parties, and established trade credit. There is no assurance that additional funds will be available for the Company to finance its operations should the Company be unable to realize profitable operations. These conditions, among others, give rise to substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include adjustments relating to the recoverability and realization of assets and classification of liabilities that might be necessary should the Company be unable to continue in operation.

NOTE 3 – RELATED PARTIES

Allocation of Expenses

During the ~~nine~~six months ended ~~September~~June 30, ~~2013~~2014, Bon Amour International, LLC (“''BAI”''), the majority stockholder of the Company, incurred certain costs associated with the Company’s operations, including human resource costs, ~~travel expense, marketing expense~~ and occupancy costs, totaling $~~257~~21,~~301~~050. InAt ~~January~~June ~~2013~~30, 2014 the ~~Company~~outstanding ~~made~~balance aassociated ~~payment~~with tothis ~~BAI~~allocation inwas ~~the amount of~~ $18123,~~668~~313.

~~In April 2013, the Company applied $29,892 to partially offset accounts receivables with BAI. At September 30, 2013 the outstanding balance associated with this allocation was $208,741.~~Loans

4During the six months ended June 30, 2014. BAI advanced the Company $86,048 and made certain payments on the Company's behalf totaling $5,820. As of June 30, 2014, the Company reported a related party loan amount due to BAI of $269,511.

BONAMOUR, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

NOTE 3 – RELATED PARTIES (continued)

Related Party Loans

During 2012 and the nine months ended September 30, 2013, BAI advanced the Company $14,087 and $217,918, respectively. During the nine months ended September 30, 2013, the Company reduced the outstanding related party loan balance with BAI with (i) a $2,000 payment to a BAI corporate credit card account issued in the name of Nathan Halsey, our sole officer and director, (ii) an application of a $1,888 refund paid to BAI in error by one of the Company’s vendors, (iii) a cash repayment of $1,150, and (iv) an application of $172,873 to partially offset accounts receivables with BAI of $202,765 (see Allocation of Expenses above). BAI is controlled by Mr. Halsey. As of September 30, 2013, the Company reported $54,094 as the related party loan amount due to BAI.

During the year ended December 31, 2012, Bonamour Asia, LLC (“Bonamour Asia”), an entity solely owned by Mr. Halsey, advanced the Company $7,000 in the form of direct payments to a vendor to the Company. In September 2013, the Company repaid the advances from Bonamour Asia in full.

Advances to Officer

During October and November 2012, the Company advanced Mr. Halsey $25,000. The amount was repaid in full in February 2013.

Occupancy Cost Allocation

BAI ~~provided~~provides office space ~~for the Company at no charge from December 30, 2010~~ to ~~October 31, 2012. In November 2012, BAI began billing~~ the Company ~~for office occupancy costs~~ at ~~a rate of~~ $~~5,000 per month. In July 2013, BAI reduced its office occupancy cost rate to $~~1,000 per month, ~~all of~~ which is included in ~~the~~ “Allocation of Expenses” discussed above. Management considers the Company's current office space arrangement adequate.

NOTE 4 – INCOME TAXES

Deferred income tax assets and liabilities are determined based upon differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company does not expect to pay any significant federal or state income tax for ~~2013~~2014 as a result of the losses recorded during the ~~nine~~six months ended ~~September~~June 30, ~~2013~~2014 and net operating loss carry forwards from prior years. Accounting standards require the consideration of a valuation allowance for deferred tax assets if it is "more likely than not" that some component or all of the benefits of deferred tax assets will not be realized. As of ~~September~~June 30, ~~2013~~2014, the Company maintains a full valuation allowance for all deferred tax assets. Based on these requirements, no provision or benefit for income taxes has been recorded. There were no recorded unrecognized tax benefits at the end of the reporting period.

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

We urge you to read the following discussion in conjunction with management’s discussion and analysis contained in our Annual Report on Form 10-K for the year ended December 31, ~~2012~~2013, as well as with our condensed financial statements and the notes thereto included elsewhere herein.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

Our prospects are subject to uncertainties and risks. In this Quarterly Report on Form 10-Q, we make forward-looking statements in this Item 2 and elsewhere that also involve substantial uncertainties and risks. These forward-looking statements are based upon our current expectations, estimates and projections about our business, and reflect our beliefs and assumptions based upon information available to us at the date of this report. In some cases, you can identify these statements by words such as “if,” “may,” “might,” “will, “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue,” and other similar terms. These forward-looking statements include, among other things, plans for proposed operations, descriptions of our strategies, our product and market development plans, and other objectives, expectations and intentions, the trends we anticipate in our business and the markets in which we operate, and the competitive nature and anticipated growth of those markets.

We caution readers that forward-looking statements are predictions based on our current expectations about future events. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Our actual results, performance or achievements could differ materially from those expressed or implied by the forward-looking statements as a result of a number of factors including, but not limited to, the risks and uncertainties discussed in our other filings with the Securities Exchange Commission (“SEC”). We undertake no obligation to revise or update any forward-looking statement for any reason.

Overview

We are a developer, distributor and reseller of health and beauty products and originator of the “mind- body” system, a line of skincare products that we have developed and nutraceutical products we are developing to help people “live their best life.” Our products are currently sold under the “Bonamour” brand name, and while we intend to continue to develop and expand our line of Bonamour-branded mind-body products, we may in the future sell our products under different labels, or serve as a reseller or distributor of health and beauty products for third party brands.

Since early 2011, we have been developing our Bonamour-branded skincare products and our first shipment was delivered to BAI, an affiliated company that is our primary customer, in November 2012. Our current focus is on the Asian beauty and wellness market, which we believe has tremendous opportunities for expansion and growth. While our objectives include branching out to other markets and developing a wider customer base, our sole customer ~~during~~since ~~the~~we ~~during~~began ~~the~~selling ~~nine~~Bonamour-branded ~~months~~products ~~ended~~has ~~September~~been ~~30, 2013 was~~ BAI, a multi-level marketing company focused on developing a global platform for entrepreneurs, wellness professionals and individuals, which seeks to develop a global lifestyle wellness brand. BAI has the exclusive right to sell Bonamour-branded products throughout Asia, and is our largest stockholder, holding approximately 71.6% of our voting common stock and 100% of our issued and outstanding voting Series A Preferred Stock. BAI is controlled by Nathan Halsey, who also serves as our sole officer and director. However, BAI is a separate company from us, and we have no economic interest in BAI or its business or operations.

Our principal office is located at ~~3500~~2301 ~~Maple~~Cedar ~~Avenue~~Springs, Suite ~~1325~~450, Dallas, Texas, ~~75219~~75201 and our telephone number is (214) 855-0808. WeOur ~~are~~common ~~traded~~stock is quoted on the OTC Market Groups, Inc. OTCQB (the “OTCQB”) under the symbol “BONI.” We do not currently have a corporate website.

Basis of Presentation of Financial Information

The accompanying financial statements have been prepared in conformity with GAAP, which contemplate continuation of the Company as a going concern, which is dependent upon the Company's ability to establish itself as a profitable business. At ~~September~~June 30, ~~2013~~2014, the Company had an accumulated deficit of $~~483~~608,~~845~~222, and for the ~~nine~~six months ended ~~September~~June 30, ~~2013~~2014, incurred net losses of $~~324~~61,~~581~~805. Management expects that the Company will need to raise additional capital to sustain operations until such time as the Company can achieve profitability through sales of its products. However, there can be no assurance that management will be successful in obtaining additional funding or in attaining profitable operations. The financial statements do not include adjustments relating to the recoverability and realization of assets and classification of liabilities that might be necessary should the Company be unable to continue in operation.

Critical Accounting Policies

There have been no changes from the Critical Accounting Policies described in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on ~~April~~March 1631, ~~2013~~2014.

Liquidity and Capital Resources

Since our inception, we have not attained a level of operations that allows us to meet our current overhead. We do not contemplate attaining profitable operations until we execute plans to grow our distribution and sales operations. Nevertheless, there can be no assurance that management will be able to successfully implement such plans and if executed, there can be no assurance that operating levels sufficient to sustain profitability can ever be achieved. We expect to be dependent upon obtaining additional financing in order to adequately fund working capital, infrastructure and expenses in order to execute plans for future operations, so that we can achieve a level of revenue adequate to support our cost structure, none of which can be assured. These factors raise substantial doubt about our ability to continue as a going concern and the accompanying financial statements do not include any adjustments related to the recoverability or classification of asset carrying amounts or the amounts and classification of liabilities that may result should we be unable to continue as a going concern.

As of ~~September~~June 30, ~~2013~~2014, the Company’s cash balance was $467,512. ~~and~~Our weability ~~had~~to ~~liabilities~~increase ~~totaling~~our ~~$270,982,~~revenue ~~which~~in ~~includes~~order ~~$262,835~~to maintain profitability is solely dependent upon the purchase requirements of ~~related~~our ~~party~~sole ~~debt~~current customer and $8related party,~~147~~ inBAI. ~~accounts~~If ~~payable.~~BAI’s Atpurchase ~~September~~requirements 30do not meet our revenue objective, ~~2013~~we ~~the~~will ~~Company’s~~not ~~working~~be ~~capital~~able ~~deficit~~to ~~was~~sustain ~~$229~~profitability and will be required to obtain funds through debt or equity financing sources,~~839~~ however, there can be no assurance that management will be able to successfully obtain this financing.

During the nine months ended September 30, 2013, BAI, the majority stockholder of the Company, incurred certain costs associated with the Company’s operations, including human resource costs, travel expense, marketing expense and occupancy costs, totaling $257,301. In January 2013, the Company made a payment to BAI in the amount of $18,668. In April 2013, the Company applied $29,892 to partially offset accounts receivables with BAI. At September 30, 2013 the outstanding balance associated with this allocation was $208,741.

Also during the nine months ended September 30, 2013, the Company reduced its outstanding related party loan balance with BAI with (i) a $2,000 payment to a BAI corporate credit card account, (ii) an application of a $1,888 refund paid to BAI in error by one of the Company’s vendors, (iii) a cash payment of repayment $1,150, and (iv) an application of $172,873 to partially offset accounts receivables with BAI of $202,765. BAI is controlled by Nathan Halsey, who also serves as the Company’s sole office and director. As of September 30, 2013, the Company reported $54,094 as related party loan amount due to BAI. During the year ended December 31, 2012, Bonamour Asia, an entity solely owned by Mr. Halsey advanced the Company $7,000 in the form of direct payments to a vendor to the Company. In September 2013, the Company repaid the advances from Bonamour Asia in full.

Management expects that the Company will need to raise additional capital through debt or equity financings in order sustain operations until such time as the Company can implement its plan of future operation and achieve profitability. The terms of financing of capital that may be raised, if any, may not be on terms acceptable by the Company. If adequate funds cannot be raised outside of the Company, it may request that its current stockholders contribute additional funds to sustain operations. The Company does not have any arrangements in place that would require any stockholder to advance additional shares to the Company.

Results of Operations

Comparison of Three Months Ended ~~September~~June 30, ~~2013~~2014 and ~~2012~~2013

For the three months ended ~~September~~June, 302014, ~~2013~~the ~~and~~Company ~~2012~~had no revenue. For the three months ended June 30, 2013, the Company had norevenue of $202,765, derived from the sale of our health and beauty products to a BAI. Cost of goods sold associated with this revenue totaled $71,148, resulting in a gross profit margin of 65%. For the three months ended ~~September~~June 30, ~~2013~~2014, the Company had operating expenses totaling $2724,~~402~~955 compared to $~~119~~176,~~577~~213 for the same period in ~~2012~~2013, a decrease of $92151,~~175~~258. This change is a ~~primarily a~~ result of adecreases ~~decrease~~ in ~~consulting~~(i) ~~expense~~sales and marketing expenses of $9020,000, a(ii) ~~decrease~~human inresource ~~sales~~costs of $21,938, (iii) computer and ~~marketing~~software ~~expenses~~expense of ~~approximately~~ $637,~~000~~217, ~~and~~(iv) atravel ~~decrease~~related inexpenses ~~computer~~of $16,750, (v) legal and ~~software~~accounting ~~expense~~fees of ~~approximately~~ $930,~~000~~188 ~~partially~~and ~~offset~~(vi) byoffice anexpense ~~increase~~and inother ~~wages~~operating costs of ~~approximately~~ $1125,~~000~~165.

7Comparison of Six Months Ended June 30, 2014 and 2013

~~Comparison~~For the six months ended June, 2014, the Company had no revenue. For the six months ended June 30, 2013, the Company had revenue of ~~Nine~~$202,765, ~~Months~~derived ~~Ended~~from ~~September~~the sale of our health and beauty products to a BAI. Cost of goods sold associated with this revenue totaled $71,148, resulting in a gross profit margin of 65%. For the six months ended June 30, 2014, the Company had operating expenses totaling $61,805 compared to $428,796 for the same period in 2013, a decrease of $366,991. This change is a result of a decrease in (i) sales and ~~2012~~marketing expenses of $119,108, (ii) human resource costs of $76,476, (iii) computer and software expense of $77,460, (iv) travel related expenses of $45,250, (v) office related expense $24,169 and (vi) office expense and other operating costs of $24,528.

For the nine months ended September 30, 2013 and 2012, the Company’s had revenue of $202,765 and $0, respectively. Cost of goods sold totaled $71,148, resulting in a gross profit margin of approximately 63%. For the nine months ended September 30, 2013, the Company had operating expenses totaling $456,198 compared to $187,535 for the same period in 2012, an increase of $268,663. This change is a primarily a result of expenses associated with the Company’s expansion of operations, including an increase in sales and marketing expenses of approximately $110,000, an increase in wages of approximately $102,000, an increase in expenses related to computers and software of approximately $69,000, an increase in office expenses of approximately $30,000, and an increases in travel expenses of approximately $45,000. The foregoing expenses were offset by a decrease of approximately $90,000 in consulting expenses and a decrease of approximately $15,000 in legal fees.

Off Balance Sheet Arrangements

We do not have any off balance sheet arrangements.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Our Company is a “smaller reporting company” as defined by Rule 12b-2 of the Exchange Act, and as such, is not required to provide the information required under this Item.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Nathan Halsey, our principal executive officer and principal financial officer, conducted an evaluation of the effectiveness of the design and operation of the Company's disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) promulgated under the Exchange Act) as of ~~September~~June 30, ~~2013~~2014, pursuant to Exchange Act Rule 13a-15. Such disclosure controls and procedures are designed to ensure that information required to be disclosed by the Company is accumulated and communicated to the appropriate management on a basis that permits timely decisions regarding disclosure. Based upon that evaluation, the Company's principal executive officer and principal financial officer concluded that the Company's disclosure controls and procedures as of ~~September~~June 30, ~~2013~~2014 were not effective to provide reasonable assurance that information required to be disclosed in the Company’s periodic filings under the Exchange Act is accumulated and communicated to our management to allow timely decisions regarding required disclosure.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal controls over financial reporting during the quarter ended ~~September~~June 30, ~~2013~~2014 that have materially affected or are reasonably likely to materially affect our internal controls over financial reporting.

Limitations on the Effectiveness of Controls

Our disclosure controls and procedures provide our principal executive officer and principal financial officer with reasonable assurances that our disclosure controls and procedures will achieve their objectives. However, our management does not expect that our disclosure controls and procedures or our internal control over financial reporting can or will prevent all human error. A control system, no matter how well designed and implemented, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Furthermore, the design of a control system must reflect the fact that there are internal resource constraints, and the benefit of controls must be weighed relative to their corresponding costs. Because of the limitations in all control systems, no evaluation of controls can provide complete assurance that all control issues and instances of error, if any, within our company are detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur due to human error or mistake. Additionally, controls, no matter how well designed, could be circumvented by the individual acts of specific persons within the organization. The design of any system of controls 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 objectives under all potential future conditions.

Management is aware that there is a lack of segregation of duties at the Company due to the fact that the Company only has one director and executive officer dealing with general administrative and financial matters. This constitutes a material weakness in the internal controls. Management has decided that considering the officer/director involved, the control procedures in place, and the outsourcing of certain financial functions, the risks associated with such lack of segregation were low and the potential benefits of adding additional employees to clearly segregate duties did not justify the expenses associated with such increases. Management periodically reevaluates this situation. In light of the Company’s current cash flow situation, the Company does not intend to increase staffing to mitigate the current lack of segregation of duties within the general administrative and financial functions.

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

None.

ITEM 1A. RISK FACTORS

Our Company is a “smaller reporting company” as defined by Rule 12b-2 of the Exchange Act, and as such, is not required to provide the information required under this Item.

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

There are no unreported sales of unregistered securities during the quarter ended ~~September~~June 30, ~~2013~~2014.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS

The following exhibits are filed with this Quarterly Report on Form 10-Q or are incorporated by reference as described below.

Exhibit	Description
31.1	Certification of Principal Executive Officer ~~and Principal Financial Officer~~ pursuant to Rule 13a-14a/Rule 14d-14(a)
31.2	Certification of Principal Financial Officer pursuant to Rule 13a-14a/Rule 14d-14(a)
32.1	Certification of Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350
101.1	Interactive data files pursuant to Rule 405 of Regulation S-T

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

November 6, 2013	BONAMOUR, INC.
August 11, 2014	BONAMOUR, INC.
	By:	/s/ Nathan Halsey
		Nathan Halsey
		President, Chief Executive Officer and Secretary (Principal Executive Officer, Principal Financial and Accounting Officer and Authorized Signatory)

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