10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________

FORM 10-Q

____________________

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

For the quarterly period ended September 30, 2011

[  ] TRANSITION REPORT UNDER SECTION 13 OR 15 ( d ) OF THE EXCHANGE ACT

For the transition period from ____________ to____________

Commission File No. 333-150883

THERMAL TENNIS INC.

(Exact name of Registrant as specified in its charter)

Nevada	88-0367706
(State or Other Jurisdiction of	(I.R.S. Employer Identification No.)
incorporation or organization)

4950 Golden Springs Drive

Reno, Nevada 89509

(Address of Principal Executive Offices)

(775) 560-6659

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year,

if changed since last report)

Indicate by check mark whether the Registrant has (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 (the “Exchange Act”) 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 during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  N/A

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

Large accelerated filer [  ]      Accelerated filer [  ]       Non-accelerated filer [  ]      Smaller reporting company [X]

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

Yes [  ] No [X ]

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.      

Not applicable.

APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the Registrant’s classes of common stock, as of the latest practicable date:  November 9, 2011 – 1,676,000 shares of common stock.

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THERMAL TENNIS INC.

Table of Contents

	Page
PART I – FINANCIAL INFORMATION
Item 1  Financial Statements	3
Item 2  Management’s Discussion and Analysis of Financial Condition and Results of Operations	11
Item 3  Quantitative and Qualitative Disclosures About Market Risk	13
Item 4  Controls and Procedures	14
PART II – OTHER INFORMATION
Item 1  Legal Proceedings	15
Item 1A  Risk Factors	15
Item 2  Unregistered Sales of Equity Securities and Use of Proceeds	15
Item 3  Defaults Upon Senior Securities	15
Item 4  (Removed and Reserved)	15
Item 5  Other Information	15
Item 6  Exhibits	15
SIGNATURES	16

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PART I

Item 1.  Financial Statements

The Financial Statements of the Registrant required to be filed with this 10-Q Quarterly Report were prepared by management and commence below, together with related notes. In the opinion of management, the Financial Statements fairly present the financial condition of the Registrant.

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THERMAL TENNIS INC.
CONDENSED BALANCE SHEETS
SEPTEMBER 30, 2011 AND DECEMBER 31, 2010
ASSETS
	September 30,			December 31,
	2011			2010
	(Unaudited)
CURRENT ASSETS:
Cash	$	5,982		$	2,330
Accounts receivable, net		4,025			1,326
Prepaids		900			433
Total Current Assets		10,907			4,089
TOTAL ASSETS	$	10,907		$	4,089
LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES:
Accounts payable and accrued expenses	$	15,595		$	18,565
Accounts payable and accrued expenses-Related parties		18,722			14,076
Notes payable-Related parties		72,000			46,000
Total Current Liabilities		106,317			78,641
Total Liabilities		106,317			78,641
STOCKHOLDERS' DEFICIT:
Capital stock, $.001 par value; 50,000,000 shares authorized;
1,676,000 shares issued and outstanding
at September 30, 2011 and December 31, 2010, respectively		1,676			1,676
Additional paid-in capital		36,579			34,116
Accumulated deficit		(133,665	)		(110,344	)
Total Stockholders' Deficit		(95,410	)		(74,552	)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$	10,907		$	4,089

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

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THERMAL TENNIS INC.
CONDENSED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND 2010
AND THE THREE MONTHS ENDED SEPTEMBER 30, 2011 AND 2010
	Nine Months Ended						Three Months Ended
	September 30,						September 30,
	2011			2010			2011			2010
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
SALES, Net of Returns, Allowances and Discounts	$	92,264		$	78,392		$	40,211		$	32,590
COST OF SALES		80,001			71,037			36,068			28,601
GROSS PROFIT		12,263			7,355			4,143			3,989
EXPENSES:
General and administrative expenses		30,726			24,628			10,716			6,148
TOTAL OPERATING EXPENSES		30,726			24,628			10,716			6,148
(LOSS) BEFORE OTHER INCOME/(EXPENSE) AND INCOME TAXES		(18,463	)		(17,273	)		(6,573	)		(2,159	)
OTHER INCOME/(EXPENSE)
Interest income		-			1			-			-
Interest expense		(4,858	)		(3,220	)		(1,808	)		(1,159	)
Total other income/(expense)		(4,858	)		(3,219	)		(1,808	)		(1,159	)
(LOSS) BEFORE INCOME TAXES		(23,321	)		(20,492	)		(8,381	)		(3,318	)
PROVISIONS FOR INCOME TAXES		-			-			-			-
NET LOSS	$	(23,321	)	$	(20,492	)	$	(8,381	)	$	(3,318	)
(LOSS) PER SHARE-FULLY DILUTED	$	(0.01	)	$	(0.01	)	$	(0.01	)	$	(0.00	)
WEIGHTED AVERAGE SHARES OUTSTANDING		1,676,000			1,675,670			1,676,000			1,676,000

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

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THERMAL TENNIS INC.
CONDENSED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND 2010
	Nine Months Ended
	September 30,
	2011			2010
	(Unaudited)			(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(23,321	)	$	(20,492	)
Adjustments to reconcile net loss to net cash used
in operating activities:
Contribution of rent expense by a related party		2,250			-
Changes in assets and liabilities:
(Increase) in accounts receivable		(2,699	)		(2,666	)
(Increase) in prepaid insurance		(467	)		(410	)
Decrease in due from officer		-			2,250
Increase in accrued expenses-Related parties		4,646			-
(Decrease)/Increase in accounts payable and accrued expenses		(2,757	)		9,227
Net cash (used) by operating activities		(22,348	)		(12,091	)
CASH FLOWS FROM INVESTING ACTIVITIES:		-			-
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in notes payable-Related parties		26,000			6,000
Proceeds from the sale of common stock		-			1,000
Net cash provided by financing activities		26,000			7,000
Net increase/(decrease) in cash		3,652			(5,091	)
CASH AT BEGINNING PERIOD		2,330			7,735
CASH AT END OF PERIOD	$	5,982		$	2,644
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for income taxes	$	-		$	-
Cash paid for interest expense	$	-		$	-
NON-CASH TRANSACTION-OPERATING ACTIVITIES
Contribution of accrued interest by a related party	$	212		$	-

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

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THERMAL TENNIS INC.

CONDENSED NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

NOTE A - PRESENTATION

The balance sheets of the Company as of September 30, 2011 and December 31, 2010, the related statements of operations for the nine months and three months ended September 30, 2011 and 2010 and the statements of cash flows for the nine months ended September 30, 2011 and 2010, (the financial statements) include all adjustments (consisting of normal recurring adjustments) necessary to summarize fairly the Company's financial position and results of operations. The results of operations for the three months ended September 30, 2011 and 2010 are not necessarily indicative of the results of operations for the full year or any other interim period. The information included in this set of financial statements should be read in conjunction with Management's Discussion and Analysis and Financial Statements and notes thereto included in the Company's Form 10-K for the year ended December 31, 2010.

NOTE B - REVENUE RECOGNITION

The Company recognizes revenue in accordance with the Securities and Exchange Commission Staff Accounting Bulletin (SAB) number 104, which states that revenues are generally recognized when it is realized and earned.  Specifically, the Company recognizes revenue when services are performed and projects are completed and accepted by the customer.  Revenues are earned from tennis lessons, sales of ball machines and other related services.

NOTE C - GOING CONCERN

The Company’s financial statements have been presented on the basis that it is a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.  The Company generated a net loss from its operations in 2010 and 2009.  Additionally, the revenue base of the Company is seasonal and the Company receives a majority of its revenues in the second and third quarters of the Calendar year.  It also sustained operating losses in prior years. Additionally, due to the current and prior year net operating loss, the Company currently has a deficit in its stockholders’ equity account.  These factors raise substantial doubt as to its ability to obtain debt and/or equity financing and achieving future profitable operations.

Management intends to raise additional operating funds through equity and/or debt offerings.  However, there can be no assurance management will be successful in its endeavors.  Ultimately, the Company will need to achieve profitable operations in order to continue as a going concern.

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There are no assurances that Thermal Tennis Inc. will be able to either (1) achieve a level of revenues adequate to generate sufficient cash flow from operations; or (2) obtain additional financing through either private placement, public offerings and/or bank financing necessary to support its working capital requirements.  To the extent that funds generated from operations and any private placements, public offerings and/or bank financing are insufficient, the Company will have to raise additional working capital.  No assurance can be given that additional financing will be available, or if available, will be on terms acceptable to Thermal Tennis Inc.  If adequate working capital is not available Thermal Tennis Inc. may be required to curtail its operations.

NOTE D – NOTES PAYABLE-RELATED PARTIES

The Company’s related party notes payable, all due currently, consists of the following:

	September 30, 2011
Note payable, 10% interest, principle and interest due June 1, 2012	$	20,000
Note payable, 10% interest, principle and interest due June 1, 2012(1)(2)		32,000
Note payable, 10% interest, principle and interest due June 1, 2012(1)		20,000
	$	72,000

(1)	The notes listed above represent credit lines that allow the Company to borrow up to $25,000 on each note to pay the ongoing expenses of the company.
(2)	The lender made the additional loan above the original terms and conditions of the note without amending the credit line.

NOTE E – RECENTLY ENACTED ACCOUNTING PRONOUNCEMENTS

In September 2011, the Financial Accounting Standards Board (“FASB”) issued an accounting pronouncement to simplify how an entity tests goodwill for impairment by permitting an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. Under previous guidance an entity was required to test goodwill for impairment by comparing the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value was less than its carrying amount, then the second step of the test was performed to measure the amount of the impairment loss. Under the new accounting pronouncement an entity is not required to calculate the fair value of a reporting unit unless the entity determines that it is more likely than not that its fair value is less than its carrying amount. The pronouncement is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. Early adoption is permitted. The adoption of this pronouncement is not expected to have a material impact on Thermal’s financial statements.

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In June 2011, the FASB issued an accounting pronouncement that requires all non-owner changes in stockholders’ equity to be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. Under the two-statement approach, the first statement should present total net income and its components followed consecutively by a second statement that should present total other comprehensive income, the components of other comprehensive income, and the total of comprehensive income. The pronouncement should be applied retrospectively effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. Early adoption is permitted. The adoption of this pronouncement is not expected to have a material impact on Thermal’s financial statements.

In May 2011, the FASB issued an accounting pronouncement which amends the fair value measurement and disclosure requirements to achieve common disclosure requirements between U.S. GAAP and International Financial Reporting Standards (“IFRS”). The accounting pronouncement requires certain disclosures about transfers between level 1 and level 2 of the fair value hierarchy, sensitivity of fair value measurements categorized within Level 3 of the fair value hierarchy, and categorization by level of items that are reported at cost but are required to be disclosed at fair value. The disclosures are to be applied prospectively effective in the first interim and annual periods beginning after December 15, 2011. The adoption of this pronouncement is not expected to have a material impact on Thermal’s financial statements.

In April 2011, the FASB issued an accounting pronouncement which clarifies when a loan modification or restructuring is considered a troubled debt restructuring. The new pronouncement also requires new disclosures relating to troubled debt restructurings (“TDRs”). The guidance is effective for the first interim period beginning on or after June 15, 2011, and should be applied retrospectively to the beginning of the annual period of adoption. For purposes of measuring impairment on newly-considered impaired receivables an entity should apply the guidance prospectively. The adoption of this pronouncement did not have a material impact on Thermal’s financial condition and results of operations.

NOTE F – INCOME TAXES

Effective January 1, 2007, we adopted the provisions of ASC 740-10, Accounting for Uncertainty in Income Taxes). ASC 740-10 clarifies the accounting for uncertainty in income taxes recognized in a company’s financial statements. ASC 740-10 requires a company to determine whether it is more likely than not that a tax position will be sustained upon examination based upon the technical merits of the position. If the more-likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements. The application of income tax law is inherently complex. Laws and regulation in this area are voluminous and are often ambiguous. As such, we are required to make many subjective assumptions and judgments regarding the income tax exposures. Interpretations and guidance surrounding income tax laws and regulations change over time. As such, changes in the subjective assumptions and judgments can materially affect amounts recognized in the balance sheets and statements of income.

At the adoption date of January 1, 2007, we had no unrecognized tax benefit, which would affect the effective tax rate if recognized. There has been no significant change in the unrecognized tax benefit during the three months ended September 30, 2011.

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NOTE G – RELATED PARTY TRANSACTIONS

The Company recognized $750 of expense in the three months ended September 30, 2011, which represented the value of the rent associated with the sole officer’s home office.  This amount recognized in the third quarter in the amount of $750 was contributed to additional paid-in capital for the quarter ended September 30, 2011 and $1,500 for the first and second quarters.  An amount of $212 in accounts payable to the president, was contributed to additional paid-in capital for the quarter ended March 31, 2011.

The President of the Company loaned in the quarter ended September 30, 2011, as described in Note D under notes payable-related parties, $4,000 that is due June 1, 2012 with interest at 10%.

The President of the Company loaned in the quarter ended June 30, 2011, as described in Note D under notes payable-related parties, $9,000 that is due June 1, 2012 with interest at 10%.

The President of the Company loaned in the quarter ended March 31, 2011, as described in Note D under notes payable-related parties, $1,000 that is due June 1, 2012 with interest at 10%.

A major shareholder of the Company loaned in the quarter ended March 31, 2011, as described in Note D under notes payable-related parties, $12,000 that is due June 1, 2012 with interest at 10%.

NOTE H – SUBSEQUENT EVENT

The Company has evaluated subsequent events pursuant to ASC 855 and has determined that there are no other reportable subsequent events.

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

Forward-looking Statements

Statements made in this Quarterly Report which are not purely historical are forward-looking statements with respect to the goals, plan objectives, intentions, expectations, financial condition, results of operations, future performance and our business, including, without limitation, (i) our ability to raise capital, and (ii) statements preceded by, followed by or that include the words “may,” “would,” “could,” “should,” “expects,” “projects,” “anticipates,” “believes,” “estimates,” “plans,” “intends,” “targets” or similar expressions.

Forward-looking statements involve inherent risks and uncertainties, and important factors (many of which are beyond our control) that could cause actual results to differ materially from those set forth in the forward-looking statements, including the following, general economic or industry conditions, nationally and/or in the communities in which we may conduct business, changes in the interest rate environment, legislation or regulatory requirements, conditions of the securities markets, our ability to raise capital, changes in accounting principles, policies or guidelines, financial or political instability, acts of war or terrorism, other economic, competitive, governmental, regulatory and technical factors affecting our current or potential business and related matters.

Accordingly, results actually achieved may differ materially from expected results in these statements.  Forward-looking statements speak only as of the date they are made. We do not undertake, and specifically disclaim, any obligation to update any forward-looking statements to reflect events or circumstances occurring after the date of such statements.

Plan of Operations 

Our business is to develop tennis management programs, tennis training programs, sales of tennis equipment and general services related to tennis.  Thermal Tennis has devoted substantially all of their time and effort to organizational and financing matters during the last three years. Through the date hereof, we have not yet generated material service revenue during this period and we have realized a net loss from operations. We generated revenues during the three months ended September 30, 2011 in the amount of $40,211 versus $32,590 generated during the three months ended September 30, 2010.  This was an increase of $7,621 for the quarter.  We generated revenues for the nine months ended September 30, 2011 of $92,264 versus $78,392 for the nine months ended September 30, 2010.  During the quarters and nine months ended September 30, 2011 and 2010, the Company had no revenues from commissions on the sale of the ball machines.  The Company’s net loss during the three months ended September 30, 2011 was $8,381 and for the three months ended September 30, 2010 the loss was $3,318.  Even though the gross revenues increased, the net loss increased by $5,063.  The major reason of the increase in the loss was due to an increase in the administrative expenses for the change to the new reporting system for reporting entities and other professional fees related to the new system.  Additionally, the Company has paid additional professional fees to list its securities for trading on the bulletin board.  Until additional clients are obtained, the Company expects that it will continue to generate operating losses.

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The Company completed its’ S-1 offering in the summer of 2010.  The Company had expected the proceeds from the offering would have provided enough capital to sustain its losses until profitability could be obtained.  However, certain parties have lent a total of $72,000 to the Company.  The parties lent $26,000 in 2011, $6,000 in 2010, $10,000 in 2008 and $30,000 to the company during 2007, and additional funds will be needed to continue on its limited operations.  The Company expects it will have to continue to borrow money to sustain its operations in the next twelve months.  We do not anticipate the performance of any research and development during the next 12 months.

There can be no assurance that we will achieve commercial acceptance for any of our proposed tennis services in the future; that future service revenue will materialize or be significant; that any sales will be profitable; or that we will have sufficient funds available for further development of our proposed services. The likelihood of our success will also depend upon our ability to raise additional capital from equity and/or debt financing to overcome the problems and risks described herein; to absorb the expenses and delays frequently encountered in the operation of a new business; and to succeed in the competitive environment in which we will operate. Although management intends to explore all available alternatives for equity and/or debt financing, including, but not limited to, private and public securities offerings, there can be no assurance that we will be able to generate additional capital. Our continuation as a going concern is dependent on our ability to generate sufficient cash flow to meet our obligations on a timely basis and, ultimately, to achieve profitability.

Financial Condition, Capital Resources and Liquidity

As of September 30, 2011, we had total cash assets of $5,982, which were derived primarily from the loans made to the company totaling $72,000 and $44,000, from proceeds by selling stock subscriptions of its common stock under the S-1 offering and from revenues generated by the operations of the company. We had total assets of $10,907.  We had total current liabilities of $106,317 and working deficit and stockholders' deficit of $95,410 as of September 30, 2011.  Deficits accumulated during the history of the company have totaled $133,665.  Our financial statements are presented on the basis that Thermal Tennis is a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business over a reasonable length of time. However, our independent accountants have noted that the Company has accumulated losses from operations and has the need to raises additional financing in order to satisfy its vendors and other creditors and execute its business plan.  These factors raise substantial doubt about our ability to continue as a going concern. Our future success will be dependent upon our ability to provide effective and competitive tennis services that meet customers' changing requirements. Should Thermal Tennis' efforts to raise additional capital through equity and/or debt financing fail, Robert Deller, our President/Secretary/Treasurer, is expected to provide the necessary working capital so as to permit Thermal Tennis to continue as a going concern.

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At September 30, 2011 the Company has been generating revenues from operations that began in early 2009 and was still seeking capital through a stock offering or the obtaining of additional debt in order to continue its operations. The contract the Company has obtained is seasonal and it receives a majority of the revenues and earnings in the second and third quarters of the calendar year.  The Company does not know if the revenues under this contract will provide sufficient earnings to cover the cost of its operations.  During 2011, this contract contributed $12,263 to its overhead.  The Company expects this gross margin from operations will increase, but it expects the gross revenues will not be sufficient to cover all of its current operations.  The Company will have to obtain additional contracts to become profitable.  At September 30, 2011 and through the date of this filing, the Company has yet to obtain any other commitments for additional funding.  As of the date hereof, the Company has received a total of $44,000 of stock subscriptions under its completed stock offering and $72,000 through borrowings.  The Company expects it will have to borrow additional monies to provide enough working capital to continue its operations during the next twelve months and to execute its business plan.   In the quarter ended September 30, 2011, the Company received $4,000 from borrowings and for the nine months ended the Company has received a total of $26,000 from borrowings.  In the year ended December 31, 2010 the Company received $6,000 from borrowings and in December 31, 2008, the Company received $10,000 in proceeds from debt and $30,000 in 2007.  The Company expects it will have to borrow additional funds against its credit lines to sustain operations to continue its current operations.

Until the Company obtains the capital required to develop any properties or businesses and obtains the revenues needed from its future operations to meet its obligations, the Company will depend on sources other than operating revenues to meet its operating and capital needs. Operating revenues may never satisfy these needs.

Item 3.  Quantitative and Qualitative Disclosures About Market Risk.

Not required.

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Item 4.  Controls and Procedures.

Evaluation of disclosure controls and procedures

Our management, with the participation of our chief executive officer and chief financial officer, evaluated the effectiveness of our disclosure controls and procedures as defined in Rule 13a-15(e) under the Exchange Act as of the end of the period covered by this Quarterly Report on Form 10-Q.  In designing and evaluating the disclosure controls and procedures, our management recognized 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.  The design of any disclosure controls and procedures also is based in part upon certain assumptions about the likelihood of future events and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

Based on that evaluation, our chief executive officer and chief financial officer concluded that, as of September 30, 2011, our disclosure controls and procedures were, subject to the limitations noted above, effective to provide reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules, regulations and forms, and that such information is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure.

Changes in internal control over financial reporting

Our management, with the participation of the chief executive officer and chief financial officer, has concluded there were no significant changes in our internal controls over financial reporting that occurred during our last fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

None.

Item 1A.  Risk Factors.

Not required.

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

None.

Item 3. Defaults Upon Senior Securities.

None; not applicable.

Item 4. (Removed and Reserved)

Item 5. Other Information.

None.

Item 6. Exhibits.

Exhibit No.                         Identification of Exhibit

31 32   101 Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of Robert R. Deller.   Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Robert R. Deller.   Interactive Data Files

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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

THERMAL TENNIS INC.

/s/ Robert R. Deller

_____________________________________________

Robert R. Deller

Principal Executive Officer

Principal Financial Officer

Principal Accounting Officer

Date:  November 14, 2011

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EX-31.1

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Robert R. Deller, certify that:

1.   I have reviewed this Quarterly Report on Form 10-Q of Thermal Tennis Inc., (the “Registrant”);

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 Registrant as of, and for, the periods presented in this report;

4.   The Registrant’s other certifying officer(s) 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 Rule 13a-15(f) and 15d-15(f)) for the Registrant 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 Registrant, 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 principals;

c) evaluated the effectiveness of the Registrant’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 Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5.   The Registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’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 Registrant’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 Registrant’s internal control over financial reporting.

Date:	November 14, 2011	By:	/s/Robert R. Deller
			Robert R. Deller Principal Executive Officer Principal Financial Officer

EX-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 Thermal Tennis Inc. (the "Registrant") on Form 10-Q for the quarter ended September 30, 2011, as filed with the Commission on the date hereof (the "Quarterly Report"), I, Robert R. Deller, Principal Executive Officer and Principal Financial Officer of the Registrant, 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 Quarterly Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Dated:  November 14, 2011

/s/Robert R. Deller

Robert R. Deller,

Principal Executive Officer

Principal Financial Officer

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Condensed Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2011	Dec. 31, 2010
Common Stock, par or stated value	$ 0.001	$ 0.001
Common Stock, shares authorized	50,000,000	50,000,000
Common Stock, shares issued	1,676,000	1,676,000
Common Stock, shares outstanding	1,676,000	1,676,000

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Condensed Statements Of Operations (Unaudited) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
SALES, Net of Returns, Allowances and Discounts	$ 40,211	$ 32,590	$ 92,264	$ 78,392
COST OF SALES	36,068	28,601	80,001	71,037
GROSS PROFIT	4,143	3,989	12,263	7,355
EXPENSES:
General and administrative expenses	10,716	6,148	30,726	24,628
TOTAL OPERATING EXPENSES	10,716	6,148	30,726	24,628
(LOSS) BEFORE OTHER (EXPENSE) AND INCOME TAXES	(6,573)	(2,159)	(18,463)	(17,273)
OTHER INCOME/(EXPENSE)
Interest income				1
Interest expense	(1,808)	(1,159)	(4,858)	(3,220)
Total other income/(expense)	(1,808)	(1,159)	(4,858)	(3,219)
(LOSS) BEFORE INCOME TAXES	(8,381)	(3,318)	(23,321)	(20,492)
PROVISIONS FOR INCOME TAXES
NET LOSS	$ (8,381)	$ (3,318)	$ (23,321)	$ (20,492)
(LOSS) PER SHARE-FULLY DILUTED	$ (0.01)	$ 0	$ (0.01)	$ (0.01)
WEIGHTED AVERAGE SHARES OUTSTANDING	1,676,000	1,676,000	1,676,000	1,675,670

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Document and Entity Information	3 Months Ended
	Sep. 30, 2011	Nov. 09, 2011
Document and Entity Information
Entity Registrant Name	THERMAL TENNIS INC.
Document Type	10-Q
Document Period End Date	Sep. 30, 2011
Amendment Flag	false
Entity Central Index Key	0001417028
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		1,676,000
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	Q3

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Related Party Transactions

3 Months Ended

Sep. 30, 2011

Related Party Transactions

Related Party Transactions

NOTE G – RELATED PARTY TRANSACTIONS

The Company recognized $750 of expense in the three months ended September 30, 2011, which represented the value of the rent associated with the sole officer’s home office.  This amount recognized in the third quarter in the amount of $750 was contributed to additional paid-in capital for the quarter ended September 30, 2011 and $1,500 for the first and second quarters.  An amount of $212 in accounts payable to the president, was contributed to additional paid-in capital for the quarter ended March 31, 2011.

The President of the Company loaned in the quarter ended September 30, 2011, as described in Note D under notes payable-related parties, $4,000 that is due June 1, 2012 with interest at 10%.

The President of the Company loaned in the quarter ended June 30, 2011, as described in Note D under notes payable-related parties, $9,000 that is due June 1, 2012 with interest at 10%.

The President of the Company loaned in the quarter ended March 31, 2011, as described in Note D under notes payable-related parties, $1,000 that is due June 1, 2012 with interest at 10%.

A major shareholder of the Company loaned in the quarter ended March 31, 2011, as described in Note D under notes payable-related parties, $12,000 that is due June 1, 2012 with interest at 10%.

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Going Concern

3 Months Ended

Sep. 30, 2011

Going Concern

Going Concern

NOTE C - GOING CONCERN

The Company’s financial statements have been presented on the basis that it is a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.  The Company generated a net loss from its operations in 2010 and 2009.  Additionally, the revenue base of the Company is seasonal and the Company receives a majority of its revenues in the second and third quarters of the Calendar year.  It also sustained operating losses in prior years. Additionally, due to the current and prior year net operating loss, the Company currently has a deficit in its stockholders’ equity account.  These factors raise substantial doubt as to its ability to obtain debt and/or equity financing and achieving future profitable operations.

Management intends to raise additional operating funds through equity and/or debt offerings.  However, there can be no assurance management will be successful in its endeavors.  Ultimately, the Company will need to achieve profitable operations in order to continue as a going concern.

There are no assurances that Thermal Tennis Inc. will be able to either (1) achieve a level of revenues adequate to generate sufficient cash flow from operations; or (2) obtain additional financing through either private placement, public offerings and/or bank financing necessary to support its working capital requirements.  To the extent that funds generated from operations and any private placements, public offerings and/or bank financing are insufficient, the Company will have to raise additional working capital.  No assurance can be given that additional financing will be available, or if available, will be on terms acceptable to Thermal Tennis Inc.  If adequate working capital is not available Thermal Tennis Inc. may be required to curtail its operations.

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Subsequent Events

3 Months Ended

Sep. 30, 2011

Subsequent Events

Subsequent Events [Text Block]

NOTE H – SUBSEQUENT EVENT

The Company has evaluated subsequent events pursuant to ASC 855 and has determined that there are no other reportable subsequent events.

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Presentation

3 Months Ended

Sep. 30, 2011

Presentation

Presentation

NOTE A - PRESENTATION

The balance sheets of the Company as of September 30, 2011 and December 31, 2010, the related statements of operations for the nine months and three months ended September 30, 2011 and 2010 and the statements of cash flows for the nine months ended September 30, 2011 and 2010, (the financial statements) include all adjustments (consisting of normal recurring adjustments) necessary to summarize fairly the Company's financial position and results of operations. The results of operations for the three months ended September 30, 2011 and 2010 are not necessarily indicative of the results of operations for the full year or any other interim period. The information included in this set of financial statements should be read in conjunction with Management's Discussion and Analysis and Financial Statements and notes thereto included in the Company's Form 10-K for the year ended December 31, 2010.

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Notes Payable- Related Parties

3 Months Ended

Sep. 30, 2011

Notes Payable- Related Parties

Notes Payable- Related Parties

NOTE D – NOTES PAYABLE-RELATED PARTIES

The Company’s related party notes payable, all due currently, consists of the following:

	September 30, 2011
Note payable, 10% interest, principle and interest due June 1, 2012	$	20,000
Note payable, 10% interest, principle and interest due June 1, 2012(1)(2)		32,000
Note payable, 10% interest, principle and interest due June 1, 2012(1)		20,000
	$	72,000

(1)	The notes listed above represent credit lines that allow the Company to borrow up to $25,000 on each note to pay the ongoing expenses of the company.
(2)	The lender made the additional loan above the original terms and conditions of the note without amending the credit line.

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Recently Enacted Accounting Pronouncements

3 Months Ended

Sep. 30, 2011

Recently Enacted Accounting Pronouncements

Recently Enacted Accounting Pronouncements

NOTE E – RECENTLY ENACTED ACCOUNTING PRONOUNCEMENTS

In September 2011, the Financial Accounting Standards Board (“FASB”) issued an accounting pronouncement to simplify how an entity tests goodwill for impairment by permitting an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. Under previous guidance an entity was required to test goodwill for impairment by comparing the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value was less than its carrying amount, then the second step of the test was performed to measure the amount of the impairment loss. Under the new accounting pronouncement an entity is not required to calculate the fair value of a reporting unit unless the entity determines that it is more likely than not that its fair value is less than its carrying amount. The pronouncement is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. Early adoption is permitted. The adoption of this pronouncement is not expected to have a material impact on Thermal’s financial statements. 

In June 2011, the FASB issued an accounting pronouncement that requires all non-owner changes in stockholders’ equity to be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. Under the two-statement approach, the first statement should present total net income and its components followed consecutively by a second statement that should present total other comprehensive income, the components of other comprehensive income, and the total of comprehensive income. The pronouncement should be applied retrospectively effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. Early adoption is permitted. The adoption of this pronouncement is not expected to have a material impact on Thermal’s financial statements.

In May 2011, the FASB issued an accounting pronouncement which amends the fair value measurement and disclosure requirements to achieve common disclosure requirements between U.S. GAAP and International Financial Reporting Standards (“IFRS”). The accounting pronouncement requires certain disclosures about transfers between level 1 and level 2 of the fair value hierarchy, sensitivity of fair value measurements categorized within Level 3 of the fair value hierarchy, and categorization by level of items that are reported at cost but are required to be disclosed at fair value. The disclosures are to be applied prospectively effective in the first interim and annual periods beginning after December 15, 2011. The adoption of this pronouncement is not expected to have a material impact on Thermal’s financial statements.

In April 2011, the FASB issued an accounting pronouncement which clarifies when a loan modification or restructuring is considered a troubled debt restructuring. The new pronouncement also requires new disclosures relating to troubled debt restructurings (“TDRs”). The guidance is effective for the first interim period beginning on or after June 15, 2011, and should be applied retrospectively to the beginning of the annual period of adoption. For purposes of measuring impairment on newly-considered impaired receivables an entity should apply the guidance prospectively. The adoption of this pronouncement did not have a material impact on Thermal’s financial condition and results of operations.

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Income Taxes

3 Months Ended

Sep. 30, 2011

Income Taxes

Income Taxes

NOTE F – INCOME TAXES

Effective January 1, 2007, we adopted the provisions of ASC 740-10, Accounting for Uncertainty in Income Taxes). ASC 740-10 clarifies the accounting for uncertainty in income taxes recognized in a company’s financial statements. ASC 740-10 requires a company to determine whether it is more likely than not that a tax position will be sustained upon examination based upon the technical merits of the position. If the more-likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements. The application of income tax law is inherently complex. Laws and regulation in this area are voluminous and are often ambiguous. As such, we are required to make many subjective assumptions and judgments regarding the income tax exposures. Interpretations and guidance surrounding income tax laws and regulations change over time. As such, changes in the subjective assumptions and judgments can materially affect amounts recognized in the balance sheets and statements of income.

At the adoption date of January 1, 2007, we had no unrecognized tax benefit, which would affect the effective tax rate if recognized. There has been no significant change in the unrecognized tax benefit during the three months ended September 30, 2011.

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Condensed Statements of Cash Flows (Unaudited) (USD $)	9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (23,321)	$ (20,492)
Adjustments to reconcile net loss to net cash used in operating activities:
Contribution of rent expense by a related party	2,250
Changes in assets and liabilities:
(Increase) in accounts receivable	(2,699)	(2,666)
(Increase) in prepaid insurance	(467)	(410)
Decrease in due from officer		2,250
Increase in accrued expenses-Related parties	4,646
Increase/(decrease) in accounts payable and accrued expenses	(2,757)	9,227
Net cash (used) by operating activities	(22,348)	(12,091)
CASH FLOWS FROM INVESTING ACTIVITIES:
Net cash provided by (used in) investing activities	0	0
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in notes payable	26,000	6,000
Proceeds from the sale of common stock		1,000
Net cash provided by financing activities	26,000	7,000
Net increase/(decrease) in cash	3,652	(5,091)
CASH AT BEGINNING PERIOD	2,330	7,735
CASH AT END OF PERIOD	5,982	2,644
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for income taxes
Cash paid for interest expense
NON-CASH TRANSACTION-OPERATING ACTIVITIES
Contribution of accrued interest by; a related party	$ 212

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Revenue Recognition

3 Months Ended

Sep. 30, 2011

Revenue Recognition

Revenue Recognition

NOTE B - REVENUE RECOGNITION

The Company recognizes revenue in accordance with the Securities and Exchange Commission Staff Accounting Bulletin (SAB) number 104, which states that revenues are generally recognized when it is realized and earned.  Specifically, the Company recognizes revenue when services are performed and projects are completed and accepted by the customer.  Revenues are earned from tennis lessons, sales of ball machines and other related services.

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Condensed Balance Sheets (USD $)	Sep. 30, 2011	Dec. 31, 2010
CURRENT ASSETS:
Cash	$ 5,982	$ 2,330
Accounts receivable, net	4,025	1,326
Prepaids	900	433
Total Current Assets	10,907	4,089
TOTAL ASSETS	10,907	4,089
CURRENT LIABILITIES:
Accounts payable and accrued expenses	15,595	18,565
Accounts payable and accrued expenses-Related parties	18,722	14,076
Notes payable-Related parties	72,000	46,000
Total Current Liabilities	106,317	78,641
Total Liabilities	106,317	78,641
STOCKHOLDERS' DEFICIT:
Capital stock, $.001 par value; 50,000,000 shares authorized; 1,676,000 shares issued and outstanding at September 30, 2011 and December 31, 2010, respectively	1,676	1,676
Additional paid-in capital	36,579	34,116
Accumulated deficit	(133,665)	(110,344)
Total Stockholders' Deficit	(95,410)	(74,552)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$ 10,907	$ 4,089