NEVADA
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87-0460247
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(State
or other jurisdiction of
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(IRS
Employer
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incorporation
or organization)
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Identification
No.)
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Page
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No.
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Part
I
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Financial
Information
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Item
1:
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Condensed
Consolidated Financial Statements (Unaudited)
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Balance
Sheets as of December 31, 2010 and September 30, 2010
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3
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Statements
of Operations – For the Three Months Ended December 31, 2010 and
2009
|
4
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|
Statements
of Changes in Stockholders' Deficit - From Inception (January 20, 2009)
Through December 31, 2010
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5
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|
Statements
of Cash Flows – For the Three Months Ended December 31, 2010 and 2009 and
from inception (January 20, 2009) through December 31,
2010
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6
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Notes
to Financial Statements
|
7
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Item
2:
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Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
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14
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Item
3:
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Quantitative
and Qualitative Disclosure about Market Risk
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17
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Item
4:
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Controls
and Procedures
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17
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Part
II
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Other
Information
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18
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Item
5:
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Other
Information
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18
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Item
6:
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Exhibits
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18
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December 31,
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September 30,
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|||||||
2010
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2010
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|||||||
ASSETS
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||||||||
Current
assets:
|
||||||||
Cash
and cash equivalents
|
$ | 2,527 | $ | 8,619 | ||||
Prepaid
expenses
|
10,000 | 5,000 | ||||||
Total
current assets
|
12,527 | 13,619 | ||||||
Other
assets:
|
||||||||
Available-for-sale
investments
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12,120 | 55,806 | ||||||
Deposit
on investment
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15,000 | - | ||||||
Total
other assets
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27,120 | 55,806 | ||||||
Total
assets
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$ | 39,647 | $ | 69,425 | ||||
LIABILITIES
AND STOCKHOLDERS' (DEFICIT)
|
||||||||
Current
liabilities:
|
||||||||
Accounts
payable
|
82,936 | 80,579 | ||||||
Accounts
payable - related parties
|
12,000 | 30,267 | ||||||
Convertible
notes payable - stockholders
|
128,143 | 130,803 | ||||||
Accrued
expenses
|
12,909 | 9,222 | ||||||
Total
current liabilities
|
235,988 | 250,871 | ||||||
Commitments
and contingencies
|
||||||||
STOCKHOLDERS'
(DEFICIT)
|
||||||||
Preferred
stock, $0.001 par value; authorized 12,500 shares; no shares
issued
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||||||||
and
outstanting; $100 per share liquidation preference
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- | - | ||||||
Common
stock, $.001 par value; authorized 100,000,000 shares;
50,925,820
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||||||||
shares
issued and outstanding at December 31, 2010 and September 30,
2010
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50,926 | 50,926 | ||||||
Additional
paid-in capital
|
9,946,022 | 9,946,022 | ||||||
Non-controlling
interest
|
(126,344 | ) | (126,344 | ) | ||||
Accumulated
other comprehensive income (loss)
|
6,390 | (453 | ) | |||||
Accumulated
deficit:
|
||||||||
During
the development stage
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(196,481 | ) | (174,743 | ) | ||||
Other
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(9,876,854 | ) | (9,876,854 | ) | ||||
Total
accumulated deficit
|
(10,073,335 | ) | (10,051,597 | ) | ||||
Total
stockholders' (deficit)
|
(196,341 | ) | (181,446 | ) | ||||
Total
liabilities and stockholders' (deficit)
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$ | 39,647 | $ | 69,425 |
Development
|
||||||||||||
Stage
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||||||||||||
Inception
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||||||||||||
(January 20, 2009)
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||||||||||||
Through
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||||||||||||
2010
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2009
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December 31, 2010
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||||||||||
Revenue
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||||||||||||
Management
income - related party
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$ | - | $ | 1,467 | $ | 11,367 | ||||||
Total
income
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- | 1,467 | 11,367 | |||||||||
Expenses:
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||||||||||||
Related
party services
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3,000 | 3,000 | 73,039 | |||||||||
General
and administrative expense
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17,163 | 9,495 | 68,312 | |||||||||
Total
expenses
|
20,163 | 12,495 | 141,351 | |||||||||
Loss
from operations
|
(20,163 | ) | (11,028 | ) | (129,984 | ) | ||||||
Other
income (expense):
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||||||||||||
Interest
income - related party
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- | 1,799 | 9,596 | |||||||||
Interest
expense - stockholders
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(3,923 | ) | (1,512 | ) | (13,145 | ) | ||||||
Realized
gain (loss) - related party
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2,348 | - | (15,552 | ) | ||||||||
Other
than temporary decline in available-for-sale
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||||||||||||
securities
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- | (13,280 | ) | (50,900 | ) | |||||||
Other
income (expense)
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(1,575 | ) | (12,993 | ) | (70,001 | ) | ||||||
Net
loss before non-controlling interest
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(21,738 | ) | (24,021 | ) | (199,985 | ) | ||||||
Non-controlling
interest
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- | - | 4 | |||||||||
Net
loss
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(21,738 | ) | (24,021 | ) | (199,981 | ) | ||||||
Other
comprehensive income (loss)
|
||||||||||||
Unrealized
gain (loss) on available-for-sale securities (none attributed to the
non-controlling interest)
|
6,843 | (148,439 | ) | (80 | ) | |||||||
Net
comprehensive loss
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$ | (14,895 | ) | $ | (172,460 | ) | $ | (200,061 | ) | |||
Loss
per share, basic and diluted
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$ | (0.00 | ) | $ | (0.00 | ) | ||||||
Weighted
average shares outstanding
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50,925,820 | 50,925,820 |
Additional
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||||||||||||||||||||
Preferred Stock
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Common Stock
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Paid-in
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||||||||||||||||||
Shares
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Par
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Shares
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Par
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Capital
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||||||||||||||||
Balance,
January 20, 2009
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- | $ | - | 50,925,820 | $ | 50,926 | $ | 9,946,022 | ||||||||||||
Unrealized
loss from available-
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||||||||||||||||||||
for-sale
securities
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- | - | - | - | - | |||||||||||||||
Net
loss
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- | - | - | - | - | |||||||||||||||
Balance,
September 30, 2009
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- | - | 50,925,820 | 50,926 | 9,946,022 | |||||||||||||||
Noncontrolling
interest
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- | - | - | - | - | |||||||||||||||
Unrealized
loss from available-
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||||||||||||||||||||
for-sale
securities
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- | - | - | - | - | |||||||||||||||
Net
loss
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- | - | - | - | - | |||||||||||||||
Balance,
September 30, 2010
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- | - | 50,925,820 | 50,926 | 9,946,022 | |||||||||||||||
Unrealized
loss from available-
|
||||||||||||||||||||
for-sale
securities
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- | - | - | - | - | |||||||||||||||
Net
loss
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- | - | - | - | - | |||||||||||||||
Balance,
December 31, 2010
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- | $ | - | 50,925,820 | $ | 50,926 | $ | 9,946,022 |
Accumulated
|
||||||||||||||||||||
Non
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Other
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Accumulated
Deficit
|
||||||||||||||||||
Controlling
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Comprehensive
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Development
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||||||||||||||||||
Interest
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Income
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Stage
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Other
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Total
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||||||||||||||||
Balance,
January 20, 2009
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$ | - | $ | 279,470 | $ | - | $ | (9,999,694 | ) | $ | 276,724 | |||||||||
Unrealized
loss from available-
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||||||||||||||||||||
for-sale
securities
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- | (248,385 | ) | - | - | (248,385 | ) | |||||||||||||
Net
loss
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- | - | (97,895 | ) | - | (97,895 | ) | |||||||||||||
Balance,
September 30, 2009
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- | 31,085 | (97,895 | ) | (9,999,694 | ) | (69,556 | ) | ||||||||||||
Noncontrolling
interest
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(126,340 | ) | - | 3,500 | 122,840 | - | ||||||||||||||
Unrealized
loss from available-
|
||||||||||||||||||||
for-sale
securities
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- | (31,538 | ) | - | - | (31,538 | ) | |||||||||||||
Net
loss
|
(4 | ) | - | (80,348 | ) | - | (80,352 | ) | ||||||||||||
Balance,
September 30, 2010
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(126,344 | ) | (453 | ) | (174,743 | ) | (9,876,854 | ) | (181,446 | ) | ||||||||||
Unrealized
loss from available-
|
||||||||||||||||||||
for-sale
securities
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- | 6,843 | - | - | 6,843 | |||||||||||||||
Net
loss
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- | - | (21,738 | ) | - | (21,738 | ) | |||||||||||||
Balance,
December 31, 2010
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$ | (126,344 | ) | $ | 6,390 | $ | (196,481 | ) | $ | (9,876,854 | ) | $ | (196,341 | ) |
Development
|
||||||||||||
Stage
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||||||||||||
Inception
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||||||||||||
(January 20, 2009)
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||||||||||||
Through
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||||||||||||
2010
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2009
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December 31, 2010
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||||||||||
Operating
activities:
|
||||||||||||
Net
loss
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$ | (21,738 | ) | $ | (24,021 | ) | $ | (199,981 | ) | |||
Adjustments
to reconcile net increase (decrease) in net assets
|
||||||||||||
from
operations to net cash used in operating activities:
|
||||||||||||
Other
than temporary decline in available-for-sale securities
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- | 13,280 | 50,900 | |||||||||
Gain
(loss) on sale/impairment of investment in related party
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(2,348 | ) | - | 15,552 | ||||||||
Non-controlling
interest
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- | - | (4 | ) | ||||||||
Accrued
interest income
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- | - | (4,909 | ) | ||||||||
Investment
received for management services
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- | (1,467 | ) | (8,800 | ) | |||||||
Changes
in operating assets and liabilities:
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||||||||||||
Accounts
receivable and accrued interest - related parties
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- | (1,800 | ) | (4,686 | ) | |||||||
Prepaid
expenses
|
(5,000 | ) | - | (10,000 | ) | |||||||
Accounts
payable and accrued expenses
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8,204 | (629 | ) | 37,292 | ||||||||
Accounts
payable and accrued expenses - related parties
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(20,426 | ) | (15,188 | ) | 24,172 | |||||||
Advances
from related parties for working capital
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- | - | 6,660 | |||||||||
Net
cash used in operating activities
|
(41,308 | ) | (29,825 | ) | (93,804 | ) | ||||||
Investing
activities:
|
||||||||||||
Proceeds
from investments
|
52,876 | - | 75,876 | |||||||||
Deposit
on investment in Skin Science
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(15,000 | ) | - | (15,000 | ) | |||||||
Net
cash used in investing activities
|
37,876 | - | 60,876 | |||||||||
Financing
activities:
|
||||||||||||
Common
stock issued for cash
|
- | - | - | |||||||||
Loans
from related parties
|
(2,660 | ) | 31,650 | 28,990 | ||||||||
Net
cash used in investing activities
|
(2,660 | ) | 31,650 | 28,990 | ||||||||
Net
increase (decrease) in cash and cash equivalents
|
(6,092 | ) | 1,825 | (3,938 | ) | |||||||
Cash
and cash equivalents, beginning of period
|
8,619 | 582 | 6,465 | |||||||||
Cash
and cash equivalents, end of period
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$ | 2,527 | $ | 2,407 | $ | 2,527 | ||||||
Supplemental
Cash Flow Information:
|
||||||||||||
Cash
paid for interest and income taxes:
|
||||||||||||
Interest
|
$ | - | $ | - | $ | - | ||||||
Income
taxes
|
- | - | - | |||||||||
Non-cash
investing and financing activities:
|
||||||||||||
Note
payable issued to acquire investment
|
$ | - | $ | - | $ | 100,000 | ||||||
Accrued
interest receivable included in amended notes
|
- | - | 8,915 | |||||||||
Convertible
notes payable issued for advances from affiliates
|
- | - | 63,310 | |||||||||
Convertible
notes payable issued for accounts payable to affiliates
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- | - | 67,493 |
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·
|
Trading
securities reported at fair value with unrealized gains and losses
included in earnings;
|
|
·
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Available-for-sale
securities reported at fair value with unrealized gains and losses, net of
applicable deferred income taxes, reported in other comprehensive
income;
|
|
·
|
Held-to-maturity
securities and other investments reported at amortized cost;
and
|
|
·
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Investments
using the equity method of
accounting.
|
2.
|
INVESTMENTS
|
Realized
|
Unrecognized
|
|||||||||||||||
Holding
|
Holding
|
Fair
|
||||||||||||||
Cost
|
Losses
|
Gains (Losses)
|
Value
|
|||||||||||||
December 31, 2010
|
||||||||||||||||
Efftec
International, Inc.
|
$ | 4,200 | $ | - | $ | 1,800 | $ | 6,000 | ||||||||
North
American Energy
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1,530 | - | 4,590 | 6,120 | ||||||||||||
$ | 5,730 | $ | - | $ | 6,390 | $ | 12,120 | |||||||||
September 30, 2010
|
||||||||||||||||
Efftec
International, Inc.
|
$ | 54,729 | $ | - | $ | (453 | ) | $ | 54,276 | |||||||
North
American Energy
|
1,530 | - | - | 1,530 | ||||||||||||
$ | 56,259 | $ | - | $ | (453 | ) | $ | 55,806 |
3.
|
DEPOSIT
ON INVESTMENT
|
4.
|
RELATED
PARTY TRANSACTIONS
|
2010
|
2009
|
|||||||
Hank
Durschlag
|
$ | 12,000 | $ | 30,267 | ||||
$ | 12,000 | $ | 30,267 |
Dec 31,
|
Sep 30,
|
||||||||||||
Date
|
Int. Rate
|
2010
|
2010
|
||||||||||
Amy
Gordon
|
2/26/2010
|
12 | % | 5,000 | 5,000 | ||||||||
Chef
on the Go
|
2/26/2010
|
12 | % | - | 2,660 | ||||||||
Progressive
Capital
|
2/26/2010
|
12 | % | 25,650 | 25,650 | ||||||||
Avenel
Financial Group
|
2/26/2010
|
12 | % | 20,000 | 20,000 | ||||||||
MLM
Concepts, LLC
|
2/26/2010
|
12 | % | 10,000 | 10,000 | ||||||||
Avenel
Financial Group
|
3/1/2010
|
12 | % | 32,493 | 32,493 | ||||||||
BJB
Services, Inc.
|
3/1/2010
|
12 | % | 35,000 | 35,000 | ||||||||
$ | 128,143 | $ | 130,803 |
2010
|
2009
|
|||||||
Management
income - Efftec International, Inc.
|
$ | - | $ | 1,467 |
2010
|
2009
|
|||||||
Interest
income - Efftec International, Inc.
|
$ | - | $ | 1,799 |
2010
|
2009
|
|||||||
Related
party expenses:
|
||||||||
CEO
compensation - Hank Durschlag
|
$ | 3,000 | $ | 3,000 | ||||
$ | 3,000 | $ | 3,000 |
5.
|
APPLICATION
OF FASB ASC TOPIC 810
|
Balance
|
Balance
|
|||||||||||
September 30,
|
October 1,
|
|||||||||||
2009
|
Adjustment
|
2009
|
||||||||||
Noncontrolling
interest
|
$ | - | $ | (126,340 | ) | $ | (126,340 | ) | ||||
Accumulated
deficit:
|
||||||||||||
During
the development stage
|
(97,895 | ) | 3,499 | (94,396 | ) | |||||||
Other
|
(9,999,694 | ) | 122,841 | (9,876,853 | ) | |||||||
$ | (10,097,589 | ) | $ | 126,340 | $ | (9,971,249 | ) |
6.
|
COMMITMENTS
AND CONTINGENCIES
|
2010
|
2009
|
|||||||
Interest
income - related party
|
$ | - | $ | 1,799 | ||||
Interest
expense - related party
|
(3,923 | ) | (1,512 | ) | ||||
Realized
gain on sale of investments
|
2,348 | - | ||||||
Other
than temporary decline in available-for-sale securities
|
- | (13,280 | ) | |||||
$ | (1,575 | ) | $ | (12,993 | ) |
|
·
|
None.
|
|
·
|
None.
|
QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK
|
ITEM
4:
|
CONTROLS
AND PROCEDURES
|
ITEM
1:
|
LEGAL
PROCEEDINGS
|
ITEM
1A:
|
RISK
FACTORS
|
ITEM
2:
|
UNREGISTERED
SALES OF EQUITY SECURITIES AND USE OF
PROCEEDS
|
ITEM
3:
|
DEFAULTS
UPON SENIOR SECURITIES
|
ITEM
4:
|
SUBMISSION
OF MATTERS TO A VOTE OF SECURITY
HOLDERS
|
ITEM
5:
|
OTHER
INFORMATION
|
ITEM
6:
|
EXHIBITS
|
31.1
|
Certification
pursuant to 18 U.S.C. Section 1350 Section 302 of the Sarbanes-Oxley Act
of 2002
|
32.1
|
Certification
pursuant to 18 U.S.C. Section 1350 Section 906 of the Sarbanes-Oxley Act
of 2002
|
DOUBLE
EAGLE HOLDINGS, LTD.
|
|
February
11, 2011
|
By: /s/M.E. Durschlag
|
M.E.
Durschlag, President,
|
|
Chief
Executive Officer and
|
|
Chief
Financial Officer
|