NEVADA
|
87-0460247
|
|
(State
or other jurisdiction of
|
|
(IRS
Employer
|
incorporation
or organization)
|
Identification
No.)
|
Page
|
||
No.
|
||
Part
I
|
Financial
Information
|
3
|
Item
1:
|
Condensed
Financial Statements
|
3
|
Statements
of Net Assets as of December 31, 2008 and September 30,
2008
|
3
|
|
Statements
of Operations – For the Three Months Ended December 31, 2008 and
2007
|
4
|
|
Statements
of Cash Flows – For the Three Months Ended December 31, 2008 and
2007
|
5
|
|
Statements
of Changes in Net Assets – For the Three Months Ended December 31, 2008
and 2007
|
6
|
|
Financial
Highlights - For the Three Months Ended December 31, 2008 and
2007
|
7
|
|
Schedule
of Investments as of December 31, 2008 and September 30,
2008
|
8
|
|
Notes
to Financial Statements
|
10
|
|
Item
2:
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
14
|
Item
3:
|
Quantitative
and Qualitative Disclosure about Market Risk
|
17
|
Item
4:
|
Controls
and Procedures
|
17
|
Part
II
|
Other
Information
|
18
|
Item
1:
|
Legal
Proceedings
|
18
|
Item
1A:
|
Risk
Factors
|
18
|
Item
2:
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
18
|
Item
3:
|
Defaults
Upon Senior Securities
|
18
|
Item
4:
|
Submission
of Matters to a Vote of Security Holders
|
18
|
Item
5:
|
Other
Information
|
18
|
Item
6:
|
Exhibits
|
18
|
Signatures
|
19
|
|
Exhibits
|
December 31,
|
September 30,
|
|||||||
2008
|
2008
|
|||||||
(Unaudited)
|
||||||||
ASSETS
|
||||||||
Investments
in portfolio companies:
|
||||||||
Unaffiliated
issuers (cost $404,953 at December 31, 2008 and at
|
||||||||
September
30, 2008)
|
$ | 368,923 | $ | 575,923 | ||||
Affiliated
issuers (cost $507,922 at December 31, 2008 and $496,422
at
|
||||||||
September
30, 2008)
|
379,922 | 368,422 | ||||||
Total
investments
|
748,845 | 944,345 | ||||||
Cash
and cash equivalents
|
5,729 | 10,570 | ||||||
Accounts
receivable - portfolio companies
|
84,373 | 57,970 | ||||||
TOTAL
ASSETS
|
838,947 | 1,012,885 | ||||||
LIABILITIES
|
||||||||
Accounts
payable
|
35,441 | 21,839 | ||||||
Accrued
expenses
|
- | 166 | ||||||
Advance
from shareholder
|
25,000 | 20,000 | ||||||
TOTAL
CURRENT LIABILITIES
|
60,441 | 42,005 | ||||||
NET
ASSETS
|
$ | 778,506 | $ | 970,880 | ||||
Commitments
and contingencies
|
||||||||
COMPOSITION
OF NET ASSETS:
|
||||||||
Common
stock, $.001 par value; authorized 100,000,000 shares;
50,925,820
|
||||||||
shares
and 50,592,487 shares issued and outstanding at December 31,
2008
|
||||||||
and
September 30, 2008, respectively
|
$ | 50,926 | $ | 50,592 | ||||
Additional
paid-in capital
|
9,946,023 | 9,936,356 | ||||||
Accumulated
deficit:
|
||||||||
Accumulated
net operating loss
|
(9,059,413 | ) | (9,064,038 | ) | ||||
Net
realized gain (loss) on investments
|
5,000 | 5,000 | ||||||
Net
unrealized appreciation (depreciation) of investments
|
(164,030 | ) | 42,970 | |||||
NET
ASSETS
|
$ | 778,506 | $ | 970,880 | ||||
NET
ASSET VALUE PER SHARE
|
$ | 0.0153 | $ | 0.1523 |
2008
|
2007
|
|||||||
Income
from operations:
|
||||||||
Management
income:
|
||||||||
Affiliate
|
$ | 15,000 | $ | - | ||||
Non-affiliate
|
7,500 | - | ||||||
22,500 | - | |||||||
Interest
income:
|
||||||||
Affiliate
|
2,839 | 100 | ||||||
Non-affiliate
|
4,162 | 1,513 | ||||||
7,001 | 1,613 | |||||||
Total
income
|
29,501 | 1,613 | ||||||
Expenses:
|
||||||||
Officer
and employee compensation and benefits
|
6,000 | 1,500 | ||||||
Professional
fees
|
14,000 | 55,140 | ||||||
Shareholder
services and communications
|
1,832 | 2,457 | ||||||
Director
fees
|
3,000 | 1,000 | ||||||
Other
general and administrative expense
|
44 | 1,973 | ||||||
24,876 | 62,070 | |||||||
Loss
before income taxes and realized and unrealized losses
|
4,625 | (60,457 | ) | |||||
Income
taxes
|
- | - | ||||||
Loss
from operations
|
4,625 | (60,457 | ) | |||||
Net
realized and unrealized gains (losses):
|
||||||||
Net
realized gain (loss) on investments, net of income taxes
|
||||||||
of
$0
|
- | - | ||||||
Change
in unrealized appreciation (depreciation) of portfolio
|
||||||||
investments,
net of deferred income taxes of $0
|
(207,000 | ) | (43,125 | ) | ||||
Net
realized and unrealized gains (losses)
|
(207,000 | ) | (43,125 | ) | ||||
Net
increase (decrease) in net assets from operations
|
$ | (202,375 | ) | $ | (103,582 | ) | ||
Net
increase (decrease) in net assets from operations
|
||||||||
per
share, basic and diluted
|
$ | (0.0040 | ) | $ | (0.0087 | ) | ||
Weighted
average shares outstanding
|
50,795,385 | 11,876,691 |
2008
|
2007
|
|||||||
Operating
activities:
|
||||||||
Net
increase (decrease) in net assets from operations
|
$ | (202,375 | ) | $ | (103,582 | ) | ||
Adjustments
to reconcile net increase (decrease) in net assets
|
||||||||
from
operations to net cash used in operating activities:
|
||||||||
Change
in unrealized (appreciation) depreciation of
|
||||||||
portfolio
investments
|
207,000 | 43,125 | ||||||
Investments
in portfolio companies
|
(11,500 | ) | (142,477 | ) | ||||
Changes
in operating assets and liabilities:
|
||||||||
Accounts
receivable from portfolio companies
|
(26,403 | ) | (1,613 | ) | ||||
Accounts
payable and accrued expenses
|
13,436 | 31,632 | ||||||
Net
cash used in operating activities
|
(19,842 | ) | (172,915 | ) | ||||
Investing
activities:
|
||||||||
Net
cash used in investing activities
|
- | - | ||||||
Financing
activities:
|
||||||||
Common
stock issued for cash
|
10,000 | 359,500 | ||||||
Loan
from shareholder
|
5,000 | - | ||||||
Net
cash used in investing activities
|
15,000 | 359,500 | ||||||
Net
increase (decrease) in cash and cash equivalents
|
(4,842 | ) | 186,585 | |||||
Cash
and cash equivalents, beginning of period
|
10,570 | 8,350 | ||||||
Cash
and cash equivalents, end of period
|
$ | 5,728 | $ | 194,935 | ||||
Supplemental
Cash Flow Information:
|
||||||||
Cash
paid for interest and income taxes:
|
||||||||
Interest
|
$ | - | $ | - | ||||
Income
taxes
|
- | - | ||||||
Non-cash
investing and financing activities:
|
||||||||
Common
stock issued to acquire investment
|
- | 320,000 | ||||||
Common
stock issued for stock subscription receivable
|
- | 6,000 |
2008
|
2007
|
|||||||
Changes
in net assets from operations:
|
||||||||
Net
earnings (loss) from operations
|
$ | 4,625 | $ | (60,457 | ) | |||
Net
realized gain (loss) on sale of investments, net
|
- | - | ||||||
Change
in net unrealized appreciation (depreciation)
|
||||||||
of
investments, net
|
(207,000 | ) | (43,125 | ) | ||||
Net
increase (decrease) in net assets from operations
|
(202,375 | ) | (103,582 | ) | ||||
Capital
stock transactions:
|
||||||||
Common
stock sold for cash
|
10,000 | 359,500 | ||||||
Rounding
|
1 | - | ||||||
Common
stock issued for investment
|
- | 320,000 | ||||||
Net
increase in net assets from stock transactions
|
10,001 | 679,500 | ||||||
Net
increase in net assets
|
(192,374 | ) | 575,918 | |||||
Net
assets (liabilities), beginning of period
|
970,880 | (185,282 | ) | |||||
Net
assets, end of period
|
$ | 778,506 | $ | 390,636 |
2008
|
2007
|
|||||||
PER
SHARE INFORMATION
|
||||||||
Net
asset (liability) value, beginning of period
|
$ | 0.0192 | $ | (0.0291 | ) | |||
Net
increase (decrease) from operations
|
0.0001 | (0.0051 | ) | |||||
Net
change in realized gains (losses) and unrealized
|
||||||||
appreciation
(depreciation) of investments, net
|
(0.0041 | ) | (0.0036 | ) | ||||
Net
increase (decrease) from stock transactions
|
0.0001 | 0.0572 | ||||||
Net
asset value, end of period
|
$ | 0.0153 | $ | 0.0194 | ||||
Per
share market value:
|
||||||||
Beginning
of period
|
$ | 0.04 | $ | 0.12 | ||||
End
of period
|
0.10 | 0.23 | ||||||
Investment
return, based on change in market price
|
||||||||
during
the period (1)
|
150.0 | % | 91.7 | % | ||||
RATIOS/SUPPLEMENTAL
DATA
|
||||||||
Net
assets (liabilities), end of period
|
$ | 778,506 | $ | 390,636 | ||||
Average
net assets (liabilities)
|
925,614 | 56,376 | ||||||
Annualized
ratio of expenses to average net assets
|
10.8 | % | 440.00 | % | ||||
Annualized
ratio of net increase (decrease) in net assets from
|
||||||||
operations
to average net assets
|
-87.5 | % | -735.00 | % | ||||
Shares
outstanding at end of period
|
50,925,820 | 20,085,821 | ||||||
Weighted
average shares outstanding during period
|
50,795,385 | 11,876,691 | ||||||
(1)
Periods of less than one year are not annualized
|
Percent
|
|||||||||||||||
Shares/
|
Quarter
|
Original
|
Fair
|
Net
|
|||||||||||
Interest
|
Acquired
|
Cost
|
Value
|
Assets
|
|||||||||||
UNAFFILIATED
PORTFOLIO INVESTMENTS
|
|||||||||||||||
NON-INCOME
PRODUCING INVESTMENTS
|
|||||||||||||||
750,000
|
Mar-07
|
EffTec
International, Inc. (Pink Sheets:EFFI);
|
$ | 125,000 | $ | 45,000 | 6 | % | |||||||
Jun-07
|
EffTec
has developed an Internet-based chiller
|
||||||||||||||
tool
which it is installing and selling to its customer
|
|||||||||||||||
base
|
|||||||||||||||
500
|
Jul-08
|
Alt
Energy, Inc. (private) oil and gas development and
|
|||||||||||||
production
company
|
24,500 | 24,500 | 3 | % | |||||||||||
150,000
|
Jul-08
|
North
American Energy Resources, Inc. (OTCBB:NAEN)
|
|||||||||||||
Oil
and gas development and production company
|
35,529 | 79,500 | 10 | % | |||||||||||
185,029 | 149,000 | 19 | % | ||||||||||||
LOAN
INVESTMENTS
|
|||||||||||||||
Loan
|
Sep-07
|
Line
of credit with EffTec International, Inc. with
|
51,500 | 51,500 | 7 | % | |||||||||
Dec-07
|
interest
at 12%; due September 30, 2008; EffTec has
|
||||||||||||||
developed
and sells an Internet-based chiller tool
|
|||||||||||||||
Loan
|
Dec-07
|
Line
of credit with ZATSO, LLC (private) with interest
|
|||||||||||||
at
6%; due September 30, 2009; Zatso is an Internet
|
|||||||||||||||
based
game developer
|
168,423 | 168,423 | 22 | % | |||||||||||
219,923 | 219,923 | 29 | % | ||||||||||||
Total
unaffiliated portfolio investments
|
404,952 | 368,923 | 48 | % | |||||||||||
AFFILIATED
PORTFOLIO INVESTMENTS
|
|||||||||||||||
Dec-07
|
Ultimate
Social Network, Inc. (private); Ultimate owns
|
||||||||||||||
The
Ultimate College Model contest website. The
|
|||||||||||||||
contest
allows men and women enrolled in college to
|
|||||||||||||||
post
their pictures and enter a weekly modeling
|
|||||||||||||||
contest. Members
participate by rating contestants.
|
|||||||||||||||
60,000
[60%]
|
Stock
investment
|
320,000 | 192,000 | 25 | % | ||||||||||
Loan
|
6%
line-of-credit due September 30, 2009
|
187,922 | 187,922 | 24 | % | ||||||||||
Total
affiliated portfolio investments
|
507,922 | 379,922 | 49 | % | |||||||||||
Total
investments at December 31, 2008
|
$ | 912,874 | 748,845 | 97 | % | ||||||||||
Cash
and other assets, less liabilities
|
29,661 | 4 | % | ||||||||||||
Net
assets at December 31, 2008
|
$ | 778,506 | 101 | % |
Percent
|
|||||||||||||||
Shares/
|
Quarter
|
Original
|
Fair
|
Net
|
|||||||||||
Interest
|
Acquired
|
Cost
|
Value
|
Assets
|
|||||||||||
UNAFFILIATED
PORTFOLIO INVESTMENTS
|
|||||||||||||||
NON-INCOME
PRODUCING INVESTMENTS
|
|||||||||||||||
750,000
|
Mar-07
|
EffTec
International, Inc. (Pink Sheets:EFFI);
|
$ | 125,000 | $ | 16,500 | 2 | % | |||||||
Jun-07
|
EffTec
has developed an Internet-based chiller
|
||||||||||||||
tool
which it is installing and selling to its customer
|
|||||||||||||||
base
|
|||||||||||||||
500
|
Jul-08
|
Alt
Energy, Inc. (private) oil and gas development and
|
|||||||||||||
production
company
|
24,500 | 24,500 | 3 | % | |||||||||||
150,000
|
Jul-08
|
North
American Energy Resources, Inc. (OTCBB:NAEN)
|
|||||||||||||
Oil
and gas development and production company
|
35,529 | 315,000 | 32 | % | |||||||||||
185,029 | 356,000 | 37 | % | ||||||||||||
LOAN
INVESTMENTS
|
|||||||||||||||
Loan
|
Sep-07
|
Line
of credit with EffTec International, Inc. with
|
51,500 | 51,500 | 5 | % | |||||||||
Dec-07
|
interest
at 12%; due September 30, 2008; EffTec has
|
||||||||||||||
developed
and sells an Internet-based chiller tool
|
|||||||||||||||
Loan
|
Dec-07
|
Line
of credit with ZATSO, LLC (private) with interest
|
|||||||||||||
at
6%; due September 30, 2009; Zatso is an Internet
|
|||||||||||||||
based
game developer
|
168,423 | 168,423 | 17 | % | |||||||||||
219,923 | 219,923 | 22 | % | ||||||||||||
Total
unaffiliated portfolio investments
|
404,952 | 575,923 | 59 | % | |||||||||||
AFFILIATED
PORTFOLIO INVESTMENTS
|
|||||||||||||||
Dec-07
|
Ultimate
Social Network, Inc. (private); Ultimate owns
|
||||||||||||||
The
Ultimate College Model contest website. The
|
|||||||||||||||
contest
allows men and women enrolled in college to
|
|||||||||||||||
post
their pictures and enter a weekly modeling
|
|||||||||||||||
contest. Members
participate by rating contestants.
|
|||||||||||||||
60,000
[60%]
|
Stock
investment
|
320,000 | 192,000 | 20 | % | ||||||||||
Loan
|
6%
line-of-credit due September 30, 2009
|
176,422 | 176,422 | 18 | % | ||||||||||
Total
affiliated portfolio investments
|
496,422 | 368,422 | 38 | % | |||||||||||
Total
investments at September 30, 2008
|
$ | 901,374 | 944,345 | 97 | % | ||||||||||
Cash
and other assets, less liabilities
|
26,535 | 3 | % | ||||||||||||
Net
assets at September 30, 2008
|
$ | 970,880 | 100 | % |
ITEM
2:
|
MANAGEMENT'S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
|
|
·
|
None.
|
|
·
|
None.
|
ITEM
3:
|
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
12, 2009
|
By: /s/M.E. Durschlag
|
||
M.E.
Durschlag, President,
|
|||
Chief
Executive Officer and
|
|||
Chief
Financial Officer
|