10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

Form 10-Q/A

(Amendment No. 2)

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

For the quarterly period ended June 30, 2011

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

Commission file number 000-53948

GIGGLES N HUGS, INC.

(Exact name of registrant as specified in its charter)

Nevada	20-1681362
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

1000 N. Green Valley Parkway, Suite 440-484, Henderson, NV	89074
(Address of principal executive offices)	(Zip Code)

(702) 879-8565

(Registrant’s telephone number, including area code)

Copies of Communications to:

Stoecklein Law Group

Emerald Plaza

402 West Broadway

Suite 690

San Diego, CA 92101

(619) 704-1310

Fax (619) 704-0556

Indicate by check mark whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes x    No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes ¨    No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Ruble 12b-2 of the Exchange Act.

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 x    No ¨

The number of shares of Common Stock, $0.001 par value, outstanding on August 16, 2011 was 52,169,929 shares.

1

 EXPLANATORY NOTE –The Registrant is amending this Form 10-Q strictly to supplement the XBRL exhibit requirement. No other disclosure was changed.

GIGGLES N HUGS, INC.

QUARTERLY PERIOD ENDED JUNE 30, 2011

Index to Report on Form 10-Q/A

		Page No.
	PART I - FINANCIAL INFORMATION
Item 1.	Financial Statements	3
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	10
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	14
Item 4T.	Controls and Procedures	14
	PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	14
Item1A.	Risk Factors	14
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	15
Item 3.	Defaults Upon Senior Securities	16
Item 4.	(Removed and Reserved)
Item 5.	Other Information	16
Item 6.	Exhibits	16
	Signature	17

2

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements.

Giggles N' Hugs, Inc.
(formerly Teacher's Pet, Inc.)
(a Development Stage Company)
Balance Sheet
			June 30,		December 31,
			2011		2010
			(unaudited)		(audited)
Assets
Current assets:
	Cash		$	913,498		769
		Total current assets		913,498		769
Accrued interest receivable - related party				17,663		-
Notes receivable				52,600
Notes receivable - related party				998,127		-
Total assets			$	1,981,888		769
Liabilities and Stockholders' Equity (Deficit)
Current liabilities:
	Accounts payable		$	28,112		58,210
	Note payable - related party			85,005		21,515
		Total current liabilities		113,117		79,725
Stockholders' equity (deficit)
	Common stock, $0.001 par value, 1,125,000,000 shares
		authorized, 52,169,929 and 51,607,500 shares issued and
		outstanding as of June 30, 2011 and December 31, 2010, respectively		52,170		51,608
	Additional paid-in capital			2,002,155		34,217
	Stock payable			35,000		-
	Deficit accumulated during development stage			(220,554)		(164,781)
		Total stockholders' equity (deficit)		1,868,771		(78,956)
Total liabilities and stockholders' equity (deficit)			$	1,981,888		769

See Accompanying Notes to Financial Statements.

3

Giggles N' Hugs, Inc.

(formerly Teacher's Pet, Inc.)

(a Development Stage Company)

Statement of Operations

(unaudited)

			For the Three Months Ended				For the Six Months Ended				Inception
			June 30,				June 30,				(September 17, 2004) to
			2011		2010		2011		2010		June 30, 2011
Revenue			$	-		50		-		200		200
Cost of sales				-		-		-		-		-
Gross profit				-		50		-		200		200
Expenses:
	Depreciation expense			-		163		-		375		4,806
	General and administrative expenses			52,527		1,875		73,436		9,915		191,898
		Total expenses		52,527		2,038		73,436		10,290		196,704
Operating loss				(52,527)		(1,988)		(73,436)		(10,090)		(196,504)
Other expenses:
	Interest income			12,383		-		17,663		-		17,663
	Interest expense			-		-		-		-		(4)
	Impairment of inventory			-		-		-		-		(1,510)
		Total other expenses		12,383		-		17,663		-		16,149
Net loss			$	(40,144)		(1,988)		(55,773)		(10,090)		(180,355)
Weighted average number of
	common shares outstanding - basic			52,060,032		51,607,500		51,951,680		51,607,500
Loss per share - basic			$	(0.00)		(0.00)		(0.00)		(0.00)

See Accompanying Notes to Financial Statements.

4

Giggles N' Hugs, Inc.
(formerly Teacher's Pet, Inc.)
(a Development Stage Company)
Statements of Cash Flows
(unaudited)
			For the Six Months Ended				Inception
			June 30,				(September 17, 2004) to
			2011		2010		June 30, 2011
Operating activities
Net loss			$	(55,773)		(10,090)		(180,355)
Adjustments to reconcile net loss to
	net cash used by operating activities:
		Depreciation		-		375		4,806
Changes in operating assets and liabilities:
	Increase in accrued interest receivable			(17,663)		-		(17,663)
	Decrease in accounts payable			(30,098)		250		28,112
Net cash used by operating activities				(103,534)		(9,465)		(165,100)
Investing activities
	Purchase of fixed assets			-		-		(4,806)
	Proceeds for notes receivable			(52,600)		-		(52,600)
	Proceeds for notes receivable - related party			(1,450,127)		-		(1,450,127)
	Repayments received for notes receivable - related party			452,000		-		452,000
Net cash used by investing activities				(1,050,727)		-		(1,055,553)
Financing activities
	Proceeds from note payable - related party			64,259		6,040		85,774
	Repayments received for notes payable - related party			(769)				(769)
	Contributed capital			-		3,500		18,800
	Issuances of common stock			1,968,500		-		1,995,326
	Proceeds from common stock payable			35,000		-		35,000
Net cash provided by financing activities				2,066,990		9,540		2,134,131
Net increase in cash				912,729		75		913,498
Cash - beginning				769		2,194		-
Cash - ending			$	913,498		2,269		913,498
Supplemental disclosures:
	Interest paid		$	-		-		-
	Income taxes paid		$	-		-		-
Non-cash transactions:
	Loans from related party		$	-		-		-

See Accompanying Notes to Financial Statements.

5

GIGGLES N’ HUGS, INC.

(FORMERLY TEACHER’S PET, INC.)

(A Development Stage Company)

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

Note 1 – Basis of presentation

The interim financial statements included herein, presented in accordance with United States generally accepted accounting principles and stated in US dollars, have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with US generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading.

These statements reflect all adjustments, consisting of normal recurring adjustments, which, in the opinion of management, are necessary for fair presentation of the information contained therein.  It is suggested that these interim financial statements be read in conjunction with the financial statements of the Company for the year ended December 31, 2010 and notes thereto included in the Company's Form 10-K annual report.  The Company follows the same accounting policies in the preparation of interim reports.

Results of operations for the interim periods are not indicative of annual results.

Note 2 – History and organization of the company

The Company was originally organized September 17, 2004 (Date of Inception) under the laws of the State of Nevada, as Teacher’s Pet, Inc.  On August 20, 2010, the Company filed an amendment to its articles of incorporation to change its name to Giggles N’ Hugs, Inc.  The Company is authorized to issue 1,125,000,000 shares of its $0.001 par value common stock.

The Company has had minimal operations. In accordance with FASB ASC 915-10, “Development Stage Entities,” the Company is considered a development stage company.  

Note 3 – Going concern

The Company’s financial statements are prepared using generally accepted accounting principles in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and allow it to continue as a going concern. As of June 30, 2011, the Company had an accumulated deficit of $220,554.  The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations.

The Company is currently contemplating an offering of its equity or debt securities to finance continuing operations.  There are no agreements or arrangements currently in place or under negotiation to obtain such financing, and there are no assurances that the Company will be successful and without sufficient financing it would be unlikely for the Company to continue as a going concern.

The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might result from this uncertainty.

6

GIGGLES N’ HUGS, INC.

(FORMERLY TEACHER’S PET, INC.)

(A Development Stage Company)

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

Note 4 – Fixed assets

Fixed assets as of June 30, 2011 and December 31, 2010, consisted of the following:

	June 30, 2011	December 31, 2010
Computer equipment	$   4,806	$   4,806
Accumulated depreciation	(4,806)	(4,806)
	$           -	$           -

During the six months ended June 30, 2011 and 2010, the Company recorded depreciation expenses of $0 and $375, respectively.

Note 5 – Notes receivable

During April, 2011, the Company loaned $50,000 and $2,600 to one non-related entity.  The loans are unsecured, bear interest at a rate of 1% per annum, and mature on April 15, 2014 and April 28, 2014, respectively.  As of June 30, 2011, the balance owed to the Company in principal was $52,600 and accrued interest receivable of $109.  During the three months ended June 30, 2011 interest income was $109.

During the six months ended June 30, 2011, the Company loaned a total of $1,450,127 to an entity that is owned and controlled by a director of the Company.  The Company received repayments totaling $452,000 during the six months ended June 30, 2011.  The Company agreed to loan up to $1,000,000 and the entire balance of principal and interest is due on February 1, 2014.  The loan is unsecured and bears interest at a rate of 6% per annum.  As of June 30, 2011, the balance owed to the Company in principal was $998,127 and accrued interest receivable of $17,554.  During the three and six months ended June 30, 2011 interest income was $12,274 and $17,554, respectively.

Note 6 – Debt obligations

On March 25, 2010, the Company issued an aggregate of $6,040 in debt securities to an officer and director of the Company.  The note is unsecured, bears no interest and is due on demand.  The Company repaid $769 during the six months ended June 30, 2011.  As of June 30, 2011, the balance owed is $5,271.

During the quarter ended December 31, 2010, the Company issued an aggregate of $15,475 in notes payable for expenses paid by a director on behalf of the Company.  During the six months ended June 30, 2011, the Company issued an aggregate of $64,259 in notes payable for expenses paid by a director on behalf of the Company.  The note is unsecured, bears no interest and is due on demand.  As of June 30, 2011, the balance owed is $79,734.

7

GIGGLES N’ HUGS, INC.

(FORMERLY TEACHER’S PET, INC.)

(A Development Stage Company)

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

Note 7 – Stockholders’ equity

The Company is authorized to issue 1,125,000,000 shares of its $0.001 par value common stock.  The Company has only one class of stock.  All rights and privileges normally associated with stock ownership are vested in that single class of stock.  

Since the inception of the Company through June 30, 2011, an officer and director of the Company contributed cash in the amount of $18,800.  The entire amount was contributed, is not expected to be repaid and has been recorded as additional paid-in capital.

On July 15, 2010, the Company amended its articles of incorporation to increase the authorized capital from 75,000,000 common shares to 1,125,000,000 common shares.  Additionally, the Company’s board of directors approved a 15:1 forward stock split with a record date of July 30, 2010.  These events have been retroactively applied to these condensed interim financial statements.

During the six months ended June 30, 2011, the Company issued a total of 562,429 shares of common stock for cash totaling $1,968,500. The Company has received cash of $35,000 in stock payable as of June 30, 2011.

Note 8 – Warrants and options

As of June 30, 2011, there were no warrants or options outstanding to acquire any additional shares of common stock.

Note 9 – Agreements

On September 23, 2010, the Company entered into a reverse triangular merger by and among Giggles ‘N’ Hugs Sub Co., a Nevada corporation and wholly owned subsidiary of the Company, and GNH, Inc. (“GNH”), a Nevada corporation, SUB CO and GNH being the constituent entities in the merger, whereby the Company intends to issue 14,000,000 shares of its common stock in exchange for 100% of GNH’s outstanding common stock.  Pursuant to the terms of the merger, SUB CO will be merged with GNH wherein SUB CO shall cease to exist and GNH will become a wholly owned subsidiary of the Company. The Merger was anticipated to become effective on June 30, 2011. On June 30, 2011, the parties had not completed all of the conditions to the merger and decided to extend the effective date to a later date in order to complete all the terms and conditions of the merger.

We are focused exclusively on successfully consummating the Merger with GNH. If we are unable to effect the proposed transaction, we will have limited capital resources and no saleable inventory with which to operate. Additionally, our ability to fund our operating expenses and debt service requirements are in doubt, and we cannot guarantee that we will be able to satisfy such. As such, we would require a significant infusion of cash through sales of our debt or equity securities. There are no formal or informal agreements to attain such financing. We cannot assure you that any financing can be obtained or, if obtained, that it will be on reasonable terms. Without realization of additional capital, it would be unlikely for us to continue as a going concern.

The Merger with GNH, upon closing, will provide us with the ownership of a Giggles ‘N’ Hugs Restaurant located in the Westfield Century City shopping complex.

8

GIGGLES N’ HUGS, INC.

(FORMERLY TEACHER’S PET, INC.)

(A Development Stage Company)

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

Note 10 – Related party transactions

From our inception to June 30, 2011, an officer and director of the Company contributed cash in the amount of $18,800.  The entire amount was contributed, is not expected to be repaid and has been recorded as additional paid-in capital.

The Company does not lease or rent any property.  Office services are provided without charge by an officer and director of the Company.  Such costs are immaterial to the financial statements and, accordingly, have not been reflected therein.  The officers and directors of the Company are involved in other business activities and may, in the future, become involved in other business opportunities.  If a specific business opportunity becomes available, such persons may face a conflict in selecting between the Company and their other business interests.  The Company has not formulated a policy for the resolution of such conflicts.

Note 11 – Subsequent Events

On August 12, 2011, we issued 10,000 shares of our restricted common stock to an accredited investor for a total purchase price of $35,000 all which was paid in cash. The shares were purchased in August 2011.

9

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

This Quarterly Report on Form 10-Q contains forward-looking statements and involves risks and uncertainties that could materially affect expected results of operations, liquidity, cash flows, and business prospects. These statements include, among other things, statements regarding:

·

our ability to diversify our operations;

·

inability to raise additional financing for working capital;

·

the fact that our accounting policies and methods are fundamental to how we report our financial condition and results of operations, and they may require our management to make estimates about matters that are inherently uncertain;

·

our ability to attract key personnel;

·

our ability to operate profitably;

·

our ability to complete the acquisition of GNH, Inc.;

·

our ability, assuming we complete the GNH, Inc. transaction, to incorporate the GNH, Inc. assets into our operations;

·

our ability to generate sufficient funds to operate the GNH, Inc. operations, upon completion of our acquisition;

·

deterioration in general or regional economic conditions;

·

adverse state or federal legislation or regulation that increases the costs of compliance, or adverse findings by a regulator with respect to existing operations;

·

changes in U.S. GAAP or in the legal, regulatory and legislative environments in the markets in which we operate;

·

the inability of management to effectively implement our strategies and business plan;

·

inability to achieve future sales levels or other operating results;

·

the unavailability of funds for capital expenditures;

·

other risks and uncertainties detailed in this report;

as well as other statements regarding our future operations, financial condition and prospects, and business strategies. These forward-looking statements are subject to certain risks and uncertainties that could cause our actual results to differ materially from those reflected in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in this Quarterly Report on Form 10-Q, and in particular, the risks discussed under the heading “Risk Factors” in Part II, Item 1A and those discussed in other documents we file with the Securities and Exchange Commission. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.

References in the following discussion and throughout this quarterly report to “we”, “our”, “us”, “Giggles”, “the Company”, and similar terms refer to Giggles N’ Hugs, Inc. unless otherwise expressly stated or the context otherwise requires.

10

OVERVIEW AND OUTLOOK

Background

Giggles N’ Hugs, Inc., formerly Teacher’s Pet, Inc., is a development stage company incorporated in the State of Nevada on September 17, 2004. Our prior stated business objective was to sell products and provide services to assist teachers and parents further the education of children aged between kindergarten through sixth grade. As of the date of this report, we generated minimal revenues from that line of business. Due to our lack of sufficient financial resources and inability to establish our educational supply business, we sought business opportunities with established companies and financing from third party sources. In August, 2010, we identified an opportunity to enter into a relationship with a child-friendly restaurant in Los Angeles, California.

On September 23, 2010, we entered into a reverse triangular merger by and among Giggles ‘N’ Hugs Sub Co., a Nevada corporation and wholly owned subsidiary of the Company, and GNH, Inc. (“GNH”), a Nevada corporation, SUB CO and GNH being the constituent entities in the merger, whereby we intend to issue 14,000,000 shares of our common stock in exchange for 100% of GNH’s outstanding common stock. Pursuant to the terms of the merger, SUB CO will be merged with GNH wherein SUB CO shall cease to exist and GNH will become a wholly owned subsidiary of the Company. The Merger was anticipated to become effective on March 31, 2011. As of June 30, 2011, the parties had not completed all of the conditions to the merger and decided to extend the effective date to a later date in order to complete all the terms and conditions of the merger.

We are focused exclusively on successfully consummating the Merger with GNH. If we are unable to effect the proposed transaction, we have limited capital resources and no saleable inventory with which to operate our educational supply business. Additionally, our ability to fund our operating expenses and debt service requirements are in doubt, and we cannot guarantee that we will be able to satisfy such. As such, we would require a significant infusion of cash through sales of our debt or equity securities. There are no formal or informal agreements to attain such financing. We cannot assure you that any financing can be obtained or, if obtained, that it will be on reasonable terms. Without realization of additional capital, it would be unlikely for us to continue as a going concern.

The Merger with GNH, upon closing, will provide us with the ownership of a Giggles ‘N’ Hugs Restaurant located in the Westfield Century City shopping complex.

Going Concern

The Company’s financial statements are prepared using generally accepted accounting principles in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and allow it to continue as a going concern. As of June 30, 2011, the Company had an accumulated deficit of $220,554. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations.

11

            The Company is currently contemplating an offering of its equity or debt securities to finance continuing operations. There are no agreements or arrangements currently in place or under negotiation to obtain such financing, and there are no assurances that the Company will be successful and without sufficient financing it would be unlikely for the Company to continue as a going concern.

            The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations.

RESULTS OF OPERATIONS

During the three months ended June 30, 2011, we did not generate revenue and during the three months ended June 30, 2010, we generated $50 in revenue.  

Operating expenses during the three months ended June 30, 2011 were $52,527, all of which consisted of general and administrative expenses such as accounting, professional and miscellaneous office expenditures. In comparison, operating expenses in the three months ended June 30, 2010 were $2,038, of which $163 is attributable to depreciation expense and $1,875 in general and administrative costs. The increase in total expenses from 2010 to 2011 is primarily attributable to an increase in legal fees, as well as an increase in accounting fees.

During the six months ended June 30, 2011, we did not generate revenue and during the six months ended June 30, 2010, we generated $200 in revenue.  

Operating expenses during the six months ended June 30, 2011 were $73,436, all of which consisted of general and administrative expenses such as accounting, professional and miscellaneous office expenditures. In comparison, operating expenses in the six months ended June 30, 2010 were $10,290, of which $375 is attributable to depreciation expense and $9,915 in general and administrative costs. The increase in total expenses from 2010 to 2011 is primarily attributable to an increase in legal fees, as well as an increase in accounting fees.

We have not been profitable from our inception in 2004 through June 30, 2011, and our accumulated deficit amounts to $220,554. There is significant uncertainty projecting future profitability due to our history of losses and lack of revenues. We are materially dependent upon the successful closing of the September 23, 2010 Merger Agreement to be able to continue to operate as a going concern. In our current state, without merging with GNH, we have no recurring or guaranteed source of revenues and cannot predict when, if ever, we will become profitable. There is significant uncertainty projecting future profitability due to our minimal operating history and lack of guaranteed ongoing revenue streams.

Liquidity and Capital Resources

As of June 30, 2011, we had $913,498 in cash and did not have any other cash equivalents. The following table provides detailed information about our net cash flow for all financial statement periods presented in this Quarterly Report. To date, we have financed our operations through the issuance of stock and borrowings.

The following table sets forth a summary of our cash flows for the six months ended June 30, 2011 and 2010:

12

                                                                                                                                                                                                                                                                                                                                                         Six Months Ended

                                                                                                                                                                                                                                                                                                                                                        June 30,

	2011	2010
Net cash used in operating activities	$(103,534)	$(9,465)
Net cash used in investing activities	(1,050,727)	-
Net cash provided by financing activities	2,066,990	9,540
Net increase/(decrease) in Cash	912,729	75
Cash, beginning	769	2,194
Cash, ending	$913,498	$2,269

Operating activities

Net cash used in operating activities was $103,534 for the period ended June 30, 2011, as compared to $9,465 used in operating activities for the same period in 2010. The increase in net cash used in operating activities was primarily due to an increase in general and administrative expenses.

Investing activities

Net cash used in investing activities was $1,050,727 for the period ended June 30, 2011, as compared to $0 used in investing activities for the same period in 2010. The increase in net cash used in investing activities was primarily due to an increase in related party note receivables.

Financing activities

Net cash provided by financing activities for the period ended June 30, 2011 was $2,066,990, as compared to $9,540 for the same period of 2010. The increase of net cash provided by financing activities was mainly attributable to proceeds from the sale of common stock in addition to proceeds from related party notes.

We believe that cash flow from operations will meet only a part of our present and near-term cash needs and thus we will require additional cash resources, including the sale of equity or debt securities, to meet our planned capital expenditures and working capital requirements for the next 12 months. We will require additional cash resources due to changed business conditions, implementation of our strategy to expand our sales and marketing initiatives as well as our current research and development programs, increase brand awareness, or acquisitions we may decide to pursue. If our own financial resources and then current cash-flows from operations are insufficient to satisfy our capital requirements, we may seek to sell additional equity or debt securities or obtain additional credit facilities. The sale of additional equity securities will result in dilution to our stockholders. The incurrence of indebtedness will result in increased debt service obligations and could require us to agree to operating and financial covenants that could restrict our operations or modify our plans to grow the business. Financing may not be available in amounts or on terms acceptable to us, if at all. Any failure by us to raise additional funds on terms favorable to us, or at all, will limit our ability to expand our business operations and could harm our overall business prospects.

Off-Balance Sheet Arrangements

We did not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

13

Item 3. Quantitative and Qualitative Disclosure About Market Risk

This item is not applicable as we are currently considered a smaller reporting company.

Item 4T. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our Principal Executive Officer and Principal Financial Officer, Tracie Hadama, has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended) as of the end of the period covered by this Report. Based on that evaluation and assessment, Mrs. Hadama concluded that our disclosure controls and procedures are designed at a reasonable assurance level and are effective to provide reasonable assurance that information we are required to disclose in the reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified by the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our principal executive and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting that occurred during our most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Limitations on Effectiveness of Controls and Procedures

In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs.

PART II—OTHER INFORMATION

Item 1. Legal Proceedings.

We are not a party to any material legal proceedings.

Item 1A. Risk Factors

Our significant business risks are described in Item 1A to Form 10-K for the year ended December 31, 2010 to which reference is made herein.

We cannot guarantee the merger with GNH will be completed and closed within the next fiscal quarter. If the merger were to be completed, we cannot ensure that it will be completed with the same business structure and financial basis as is expected today.  Therefore you should not rely on the completion of the merger for investment purposes.

14

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

Stock Issuances

On April 27, 2011, we issued 15,000 shares of our restricted common stock to an accredited investor for a total purchase price of $52,500 all which was paid in cash. The shares were purchased in April 2011.

On May 9, 2011, we issued 17,143 shares of our restricted common stock to an accredited investor for a total purchase price of $60,000 all of which was paid in cash. The shares were purchased in March 2011.

On June 7, 2011, we issued 10,000 shares of our restricted common stock to an accredited investor for a total purchase price of $35,000 all which was paid in cash. The shares were purchased in March 2011.

On June 7, 2011, we issued 4,285 shares of our restricted common stock to an accredited investor for a total purchase price of $15,000 all which was paid in cash. The shares were purchased in January 2011.

On June 7, 2011, we issued 85,715 shares of our restricted common stock to an accredited investor for a total purchase price of $300,000 all which was paid in cash. The shares were purchased in June 2011.

On June 22, 2011, we issued 14,286 shares of our restricted common stock to an accredited investor for a total purchase price of $50,000 all which was paid in cash. The shares were purchased in June 2011.

We believe that the issuance and sale of the above shares was exempt from the registration and prospectus delivery requirements of the Securities Act of 1933 by virtue of Section 4(2) and Regulation D Rule 506. The shares were issued directly by us and did not involve a public offering or general solicitation. The recipients of the shares were afforded an opportunity for effective access to files and records of the Company that contained the relevant information needed to make their investment decision, including the financial statements and 34 Act reports. We reasonably believed that the recipients, immediately prior to the sale of the shares, were accredited investors and had such knowledge and experience in our financial and business matters that they were capable of evaluating the merits and risks of their investment. The recipients had the opportunity to speak with our management on several occasions prior to their investment decision. There were no commissions paid on the issuance and sale of the shares.

Issuer Purchases of Equity Securities

We did not repurchase any of our equity securities from the time of our inception through the period ended June 30, 2011.

15

Item 3. Defaults Upon Senior Securities.

None.

Item 5. Other Information.

None.

Item 6. Exhibits.

Exhibit No.	Description
31.1	Certification of Principal Executive Officer & Principal Financial Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certifications of Principal Executive Officer & Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS*	XBRL Instance Document
101.SCH*	XBRL Taxonomy Extension Schema
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase
101.DEF*	XBRL Taxonomy Extension Definition Linkbase
101.LAB*	XBRL Taxonomy Extension Label Linkbase
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase

*

XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

16

SIGNATURE

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.

GIGGLES N HUGS, INC.

By: /S/ Tracie Hadama                                                                                     

Tracie Hadama, Principal Executive Officer and Principal Financial Officer

Date: September 15, 2011

17

EX-31

EXHIBIT31.1

CERTIFICATION

I, Tracie Hadama, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q/A of Giggles N’ Hugs, Inc. (the “Company”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented ire this report;

4. The Company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, 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;

c. Evaluated the effectiveness of the Company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the Company’s internal control over financial reporting that occurred during the Company’s most recent fiscal quarter (the Company’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting; and

5. The Company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company’s auditors and the audit committee of the Company’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s internal control over financial reporting.      

Date: September 15, 2011

/s/ Tracie Hadama                       

Tracie Hadama

Principal Executive Officer

and Principal Financial Officer

EX-32

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Giggles N’ Hugs, Inc. (the “Company”) on Form 10-Q/A for the period ended June 30, 2011, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Tracie Hadama, Principal Executive Officer and Principal Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

1.

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: September 15, 2011

/s/ Tracie Hadama                         

Tracie Hadama

Principal Executive Officer

and Principal Financial Officer

XML



Giggles N' Hugs, Inc. - Balance Sheets (Parenthetical) (USD $)	Jun. 30, 2011	Dec. 31, 2010
Common Stock, par value	$ 0.001	$ 0.001
Common Stock, authorized	1,125,000,000	1,125,000,000
Common Stock, issued and outstanding	52,169,929	51,607,500

XML



Giggles N' Hugs, Inc. Statements of Operations (USD $)	3 Months Ended		6 Months Ended		82 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011
Revenue		$ 50		$ 200	$ 200
Cost of sales
Gross profit		50		200	200
Expenses:
Depreciation expense		163		375	4,806
General and administrative expenses	52,527	1,875	73,436	9,915	191,898
Total expenses	52,527	2,038	73,436	10,290	196,704
Operating loss	(52,527)	(1,988)	(73,436)	(10,090)	(196,504)
Other expenses:
Interest income	12,383		17,663		17,663
Interest expense					(4)
Impairment of inventory					(1,510)
Total other expenses	12,383		17,663		16,149
Net loss	$ (40,144)	$ (1,988)	$ (55,773)	$ (10,090)	$ (180,355)
Weighted average number of common shares outstanding - basic	52,060,032	51,607,500	51,951,680	51,607,500
Loss per share - basic	$ 0.00	$ 0.00	$ 0.00	$ 0.00

XML



Document and Entity Information	3 Months Ended
	Jun. 30, 2011	Jul. 08, 2011
Document and Entity Information
Entity Registrant Name	Giggles N' Hugs, Inc.
Document Type	10-Q
Document Period End Date	Jun. 30, 2011
Amendment Flag	false
Entity Central Index Key	0001381435
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		52,153,358
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	No
Entity Voluntary Filers	Yes
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	Q2

XML



Other Liabilities

3 Months Ended

Jun. 30, 2011

Other Liabilities {1}

Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block]

Note 8 - Warrants and options

As of June 30, 2011, there were no warrants or options outstanding to acquire any additional shares of common stock.

XML



Property, Plant, and Equipment

3 Months Ended

Jun. 30, 2011

Property, Plant, and Equipment

Property, Plant and Equipment Disclosure [Text Block]

Note 4 - Fixed assets

Fixed assets as of June 30, 2011 and December 31, 2010, consisted of the following:

	June 30, 2011			December 31, 2010
Computer equipment	$	4,806		$	4,806
Accumulated Depreciation		(4,806	)		(4,806	)
	$	-		$	-

During the six months ended June 30, 2011 and 2010, the Company recorded depreciation expenses of $0 and $375, respectively.

XML



Related Party Disclosures

3 Months Ended

Jun. 30, 2011

Related Party Disclosures

Related Party Transactions Disclosure [Text Block]

Note 10 - Related party transactions

From our inception to June 30, 2011, an officer and director of the Company contributed cash in the amount of $18,800.  The entire amount was contributed, is not expected to be repaid and has been recorded as additional paid-in capital.

The Company does not lease or rent any property.  Office services are provided without charge by an officer and director of the Company.  Such costs are immaterial to the financial statements and, accordingly, have not been reflected therein.  The officers and directors of the Company are involved in other business activities and may, in the future, become involved in other business opportunities.  If a specific business opportunity becomes available, such persons may face a conflict in selecting between the Company and their other business interests.  The Company has not formulated a policy for the resolution of such conflicts.

XML



Subsequent Events

3 Months Ended

Jun. 30, 2011

Subsequent Events

Subsequent Events [Text Block]

Note 11 – Subsequent Events

On August 12, 2011, we issued 10,000 shares of our restricted common stock to an accredited investor for a total purchase price of $35,000 all which was paid in cash. The shares were purchased in August 2011.

XML



Commitment and Contingencies

3 Months Ended

Jun. 30, 2011

Commitment and Contingencies

Commitments and Contingencies Disclosure [Text Block]

Note 9 – Agreements

On September 23, 2010, the Company entered into a reverse triangular merger by and among Giggles ‘N’ Hugs Sub Co., a Nevada corporation and wholly owned subsidiary of the Company, and GNH, Inc. (“GNH”), a Nevada corporation, SUB CO and GNH being the constituent entities in the merger, whereby the Company intends to issue 14,000,000 shares of its common stock in exchange for 100% of GNH’s outstanding common stock.  Pursuant to the terms of the merger, SUB CO will be merged with GNH wherein SUB CO shall cease to exist and GNH will become a wholly owned subsidiary of the Company. The Merger was anticipated to become effective on June 30, 2011. On June 30, 2011, the parties had not completed all of the conditions to the merger and decided to extend the effective date to a later date in order to complete all the terms and conditions of the merger.

We are focused exclusively on successfully consummating the Merger with GNH. If we are unable to effect the proposed transaction, we will have limited capital resources and no saleable inventory with which to operate. Additionally, our ability to fund our operating expenses and debt service requirements are in doubt, and we cannot guarantee that we will be able to satisfy such. As such, we would require a significant infusion of cash through sales of our debt or equity securities. There are no formal or informal agreements to attain such financing. We cannot assure you that any financing can be obtained or, if obtained, that it will be on reasonable terms. Without realization of additional capital, it would be unlikely for us to continue as a going concern.

The Merger with GNH, upon closing, will provide us with the ownership of a Giggles ‘N’ Hugs Restaurant located in the Westfield Century City shopping complex.

XML



Accounting Policies

3 Months Ended

Jun. 30, 2011

Accounting Policies

Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block]

Note 1 – Basis of presentation

The interim financial statements included herein, presented in accordance with United States generally accepted accounting principles and stated in US dollars, have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with US generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading.

These statements reflect all adjustments, consisting of normal recurring adjustments, which, in the opinion of management, are necessary for fair presentation of the information contained therein.  It is suggested that these interim financial statements be read in conjunction with the financial statements of the Company for the year ended December 31, 2010 and notes thereto included in the Company's Form 10-K annual report.  The Company follows the same accounting policies in the preparation of interim reports.

Results of operations for the interim periods are not indicative of annual results.

Business Description and Accounting Policies [Text Block]

Note 2 - History and organization of the company

The Company was originally organized September 17, 2004 (Date of Inception) under the laws of the State of Nevada, as Teacher's Pet, Inc.  On August 20, 2010, the Company filed an amendment to its articles of incorporation to change its name to Giggles N' Hugs, Inc.  The Company is authorized to issue 1,125,000,000 shares of its $0.001 par value common stock.

The Company has had minimal operations and is considered a development stage company.  The Company has limited operations and in accordance with FASB ASC 915-10, "Development Stage Entities," the Company is considered a development stage company.

XML



Receivables, Loans, Notes Receivable, and Others

3 Months Ended

Jun. 30, 2011

Receivables, Loans, Notes Receivable, and Others

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

Note 5 – Notes receivable

During April, 2011, the Company loaned $50,000 and $2,600 to one non-related entity.  The loans are unsecured, bear interest at a rate of 1% per annum, and mature on April 15, 2014 and April 28, 2014, respectively.  As of June 30, 2011, the balance owed to the Company in principal was $52,600 and accrued interest receivable of $109.  During the three months ended June 30, 2011 interest income was $109.

During the six months ended June 30, 2011, the Company loaned a total of $1,450,127 to an entity that is owned and controlled by a director of the Company.  The Company received repayments totaling $452,000 during the six months ended June 30, 2011.  The Company agreed to loan up to $1,000,000 and the entire balance of principal and interest is due on February 1, 2014.  The loan is unsecured and bears interest at a rate of 6% per annum.  As of June 30, 2011, the balance owed to the Company in principal was $998,127 and accrued interest receivable of $17,554.  During the three and six months ended June 30, 2011 interest income was $12,274 and $17,554, respectively.

XML



Debt

3 Months Ended

Jun. 30, 2011

Debt

Debt Disclosure [Text Block]

Note 6 – Debt obligations

On March 25, 2010, the Company issued an aggregate of $6,040 in debt securities to an officer and director of the Company.  The note is unsecured, bears no interest and is due on demand.  The Company repaid $769 during the six months ended June 30, 2011.  As of June 30, 2011, the balance owed is $5,271.

During the quarter ended December 31, 2010, the Company issued an aggregate of $15,475 in notes payable for expenses paid by a director on behalf of the Company.  During the six months ended June 30, 2011, the Company issued an aggregate of $64,259 in notes payable for expenses paid by a director on behalf of the Company.  The note is unsecured, bears no interest and is due on demand.  As of June 30, 2011, the balance owed is $79,734.

XML



Equity

3 Months Ended

Jun. 30, 2011

Equity

Stockholders' Equity Note Disclosure [Text Block]

Note 7 – Stockholders’ equity

The Company is authorized to issue 1,125,000,000 shares of its $0.001 par value common stock.  The Company has only one class of stock.  All rights and privileges normally associated with stock ownership are vested in that single class of stock. 

Since the inception of the Company through June 30, 2011, an officer and director of the Company contributed cash in the amount of $18,800.  The entire amount was contributed, is not expected to be repaid and has been recorded as additional paid-in capital.

On July 15, 2010, the Company amended its articles of incorporation to increase the authorized capital from 75,000,000 common shares to 1,125,000,000 common shares.  Additionally, the Company’s board of directors approved a 15:1 forward stock split with a record date of July 30, 2010.  These events have been retroactively applied to these condensed interim financial statements.

During the six months ended June 30, 2011, the Company issued a total of 562,429 shares of common stock for cash totaling $1,968,500. The Company has received cash of $35,000 in stock payable as of June 30, 2011.

XML



Giggles N' Hugs, Inc. - Statements of Cash Flows (USD $)	3 Months Ended		6 Months Ended		82 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011
Net loss	$ (40,144)	$ (1,988)	$ (55,773)	$ (10,090)	$ (180,355)
Adjustments to reconcile net loss to net cash used by operating activities:
Depreciation		375		375	4,806
Changes in operating assets and liabilities:
(Increase) in accounts receivable
Increase in accrued interest receivable	(17,663)		(17,663)		(17,663)
Decrease in accounts payable	(30,098)	250	(30,098)	250	28,112
Net cash used by operating activities	(103,534)	(9,465)	(103,534)	(9,465)	(165,100)
Investing activities
Purchase of fixed assets
Proceeds for notes receivable	(52,600)		(52,600)		(52,600)
Proceeds for notes receivable - related party	(1,450,127)		(1,450,127)		(1,450,127)
Repayments received for notes receivable - related party	452,000		452,000		452,000
Net cash used by investing activities	(1,050,727)		(1,050,727)		(1,055,533)
Financing activities
Proceeds from note payable - related party	64,259	6,040	64,259	6,040	85,774
Repayments received for notes payable - related party	(769)		(769)		(769)
Contributed capital		3,500		3,500	18,800
Issuances of common stock	1,968,500		1,968,500		1,968,500
Proceeds from common stock payable	35,000		35,000		35,000
Net cash provided by financing activities	2,066,990	9,540	2,066,990	9,540	2,134,131
Net increase in cash	912,729	75	912,729	75	913,498
Cash - beginning of period	769	2,194	769	2,194
Cash - ending of period	$ 913,498	$ 2,269	$ 913,498	$ 2,269	$ 913,498

XML



Organization, Consolidation and Presentation of Financial Statements

3 Months Ended

Jun. 30, 2011

Organization, Consolidation and Presentation of Financial Statements

Liquidity Disclosure [Policy Text Block]

Note 3 – Going concern

The Company’s financial statements are prepared using generally accepted accounting principles in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and allow it to continue as a going concern. As of June 30, 2011, the Company had an accumulated deficit of $220,554.  The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations.

The Company is currently contemplating an offering of its equity or debt securities to finance continuing operations.  There are no agreements or arrangements currently in place or under negotiation to obtain such financing, and there are no assurances that the Company will be successful and without sufficient financing it would be unlikely for the Company to continue as a going concern.

The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might result from this uncertainty.

XML



Giggles N' Hugs, Inc. - Balance Sheets (USD $)	Jun. 30, 2011	Dec. 31, 2010
Current assets:
Cash	$ 913,498	$ 769
Total current assets	913,498	769
Accrued interest receivable - related party	17,663
Notes receivable	52,600
Notes receivable - related party	998,127
Total assets	1,981,888	769
Current liabilities:
Accounts payable	28,112	58,210
Note payable - related party	85,005	21,515
Total current liabilities	113,117	79,725
Stockholders' Equity
Common stock, $0.001 par value, 1,125,000,000 shares authorized, 52,169,929 and 51,607,500 shares issued and outstanding as of June 30, 2011 and December 31, 2010, respectively	52,170	51,608
Additional paid-in capital	2,002,155	34,217
Subscription receivable
Stock Payable
Deficit accumulated during development stage	(220,554)	(164,781)
Total stockholders' equity (deficit)	1,868,771	(78,956)
Total liabilities and stockholders' equity (deficit)	$ 1,981,888	$ 769