Nevada
|
87-0460247
|
(State
of other jurisdiction of
|
(I.R.S.
Employer
|
incorporation
or organization)
|
Identification
No.)
|
Large accelerate filer ¨
|
Accelerated filer ¨
|
Non-accelerated filer x
|
Smaller reporting company ¨
|
Page
|
||||
Part
I
|
||||
Item
1:
|
Business
|
3
|
||
Item
1A:
|
Risk
Factors
|
4
|
||
Item
2:
|
Properties
|
4
|
||
Item
3:
|
Legal
proceedings
|
4
|
||
Item
4:
|
Submission
of Matters to a Vote of Security Holders
|
4
|
||
Part
II
|
||||
Item
5:
|
Market
for Registrant’s Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities
|
5
|
||
Item
6:
|
Selected
Financial Data
|
6
|
||
Item
7:
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operation
|
6
|
||
Item
7A:
|
Quantitative
and Qualitative Disclosures about Market Risk
|
9
|
||
Item
8:
|
Financial
Statements and Supplementary Data
|
10
|
||
Item
9:
|
Changes
in and Disagreements with Accountants on Accounting and Financial
Disclosure
|
37
|
||
Item
9A(T):
|
Controls
and Procedures
|
37
|
||
Item
9B:
|
Other
Information
|
38
|
||
Part
III
|
||||
Item
10:
|
Directors,
Executive Officers and Corporate Governance
|
39
|
||
Item
11:
|
Executive
Compensation
|
41
|
||
Item
12:
|
Security
Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters
|
43
|
||
Item
13:
|
Certain
Relationships and Related Transactions and Director
Independence
|
46
|
||
Item
14:
|
Principal
Accountant Fees and Services
|
50
|
||
Part
IV
|
||||
Item
15:
|
Exhibits
and Financial Statement Schedules
|
51
|
||
Signatures
|
|
|
52
|
ITEM
1:
|
BUSINESS
|
ITEM
1A:
|
RISK
FACTORS
|
ITEM 2:
|
PROPERTIES
|
ITEM
3:
|
LEGAL
PROCEEDINGS
|
ITEM
4:
|
SUBMISSION
OF MATTERS TO A VOTE OF SECURITY
HOLDERS
|
ITEM
5:
|
MARKET
FOR REGISTRANT’S COMMON EQUITY AND RELATED STOCKHOLDER
MATTERS
|
QUARTER
ENDED
|
CLOSING
|
HIGH
|
LOW
|
|||||||||
December
31, 2008
|
.100 | .130 | .020 | |||||||||
March
31, 2009
|
.025 | .120 | .020 | |||||||||
June
30, 2009
|
.016 | .070 | .010 | |||||||||
September
30, 2009
|
.006 | .023 | .005 | |||||||||
December
31, 2007
|
.23 | .25 | .09 | |||||||||
March
31, 2008
|
.04 | .25 | .04 | |||||||||
June
30, 2008
|
.04 | .07 | .03 | |||||||||
September
30, 2008
|
.04 | .06 | .02 |
ITEM 6:
|
SELECTED
FINANCIAL DATA
|
ITEM
7:
|
MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
|
2009
|
2008
|
|||||||
Interest
income - related parties
|
$ | 6,266 | $ | 6,457 | ||||
Interest
expense - related party
|
(2,844 | ) | - | |||||
Realized
gain (loss) related party
|
(24,500 | ) | 5,000 | |||||
Other
than temporary decline in available-for-sale securities
|
(3,620 | ) | (58,500 | ) | ||||
$ | (24,698 | ) | $ | (47,043 | ) |
ITEM
7A:
|
QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK
|
ITEM 8:
|
FINANCIAL
STATEMENTS AND SUPPLEMENTARY DATA
|
Page
|
||
Report
of Independent Registered Public Accounting Firm
|
11
|
|
Consolidated
Balance Sheets at September 30, 2009 and 2008
|
12
|
|
Statements
of Operations for the Years Ended September 30, 2009 and 2008
and from Inception (January 20, 2009) through September 30,
2009
|
13
|
|
Statements
of Changes in Stockholders' Equity (Deficit) for the Years Ended September
30, 2009 and 2008
|
14
|
|
Statements
of Cash Flows for the Years Ended September 30, 2009 and 2008 and from
Inception (January 20, 2009) through September 30, 2009
|
15
|
|
Notes
to Consolidated Financial Statements
|
|
16
|
2009
|
2008
|
|||||||
(Restated
|
||||||||
Note 3)
|
||||||||
ASSETS
|
||||||||
Current
assets:
|
||||||||
Cash
and cash equivalents
|
$ | 582 | $ | 10,886 | ||||
Advance
to related party
|
- | 670 | ||||||
TOTAL
CURRENT ASSETS
|
582 | 11,556 | ||||||
Notes
and accrued interest receivable - affiliate
|
57,819 | 54,652 | ||||||
Available-for-sale
investments - affiliates
|
179,495 | 331,500 | ||||||
Investments
at cost - affiliate
|
- | 24,500 | ||||||
$ | 237,896 | $ | 422,208 | |||||
LIABILITIES
AND STOCKHOLDERS' EQUITY (DEFICIT) LIABILITIES
|
||||||||
Accounts
payable
|
75,094 | 57,004 | ||||||
Accounts
payable - related parties
|
97,854 | 23,148 | ||||||
Convertible
notes payable – affiliate
|
100,000 | - | ||||||
Accrued
expenses
|
2,844 | 166 | ||||||
Advances
from related parties
|
31,660 | 20,000 | ||||||
TOTAL
CURRENT LIABILITIES
|
307,452 | 100,318 | ||||||
Commitments
and contingencies
|
||||||||
STOCKHOLDERS'
EQUITY (DEFICIT)
|
||||||||
Preferred
stock, $0.001 par value; authorized 12,500 shares; no shares issued and
outstanding; $100 per share liquidation preference
|
- | - | ||||||
Common
stock, $0.001 par value; authorized 100,000,000 shares; 50,925,820 shares
and 50,592,487 shares issued and outstanding at September 30, 2009 and
September 30, 2008, respectively
|
50,926 | 50,592 | ||||||
Additional
paid-in capital
|
9,946,022 | 9,936,356 | ||||||
Accumulated
other comprehensive income
|
31,085 | 279,470 | ||||||
Accumulated
deficit:
|
||||||||
During
the development stage
|
(97,895 | ) | ||||||
Other
|
(9,999,694 | ) | (9,944,528 | ) | ||||
Total
accumulated deficit
|
(10,097,589 | ) | (9,944,528 | ) | ||||
Total
stockholders' equity (deficit)
|
(69,556 | ) | 321,890 | |||||
Total
liabilities and stockholders' equity (deficit)
|
$ | 237,896 | $ | 422,208 |
Development
|
||||||||||||
Stage
|
||||||||||||
Inception
|
||||||||||||
(January 20, 2009)
|
||||||||||||
Through
|
||||||||||||
2009
|
2008
|
September 30, 2009
|
||||||||||
(Restated
|
||||||||||||
Note 3)
|
||||||||||||
Revenue
|
||||||||||||
Management
income – affiliate
|
$ | 2,567 | $ | - | $ | 2,567 | ||||||
Total
income
|
2,567 | - | 2,567 | |||||||||
Expenses:
|
||||||||||||
Asset
impairment
|
- | 707,158 | - | |||||||||
Related
party services
|
85,908 | 187,784 | 58,039 | |||||||||
General
and administrative expense
|
45,022 | 263,475 | 16,146 | |||||||||
130,930 | 1,158,417 | 74,185 | ||||||||||
Loss
from operations
|
(128,363 | ) | (1,158,417 | ) | (71,618 | ) | ||||||
Other
income (expense):
|
||||||||||||
Interest
income - related parties
|
6,266 | 6,457 | 4,687 | |||||||||
Interest
expense - related party
|
(2,844 | ) | - | (2,844 | ) | |||||||
Realized
gain (loss) - related party
|
(24,500 | ) | 5,000 | (24,500 | ) | |||||||
Other
than temporary decline in available-for-sale securities
|
(3,620 | ) | (58,500 | ) | (3,620 | ) | ||||||
Other
income (expense)
|
(24,698 | ) | (47,043 | ) | (26,277 | ) | ||||||
Loss
before income taxes
|
(153,061 | ) | (1,205,460 | ) | (97,895 | ) | ||||||
Income
taxes
|
- | - | - | |||||||||
Net
loss before non-controlling interest
|
(153,061 | ) | (1,205,460 | ) | (97,895 | ) | ||||||
Non-controlling
interest
|
- | 213,333 | - | |||||||||
Net
loss
|
(153,061 | ) | (992,127 | ) | (97,895 | ) | ||||||
Preferred
dividends
|
- | (162,780 | ) | - | ||||||||
Net
loss available to common shareholders
|
$ | (153,061 | ) | $ | (1,154,907 | ) | $ | (97,895 | ) | |||
Loss
per common share, basic and diluted
|
$ | (0.00 | ) | $ | (0.03 | ) | ||||||
Weighted
average common shares outstanding
|
50,892,943 | 38,155,238 | ||||||||||
Other
comprehensive income (loss):
|
||||||||||||
Net
loss
|
$ | (153,061 | ) | $ | (992,127 | ) | $ | (97,895 | ) | |||
Unrealized
gain (loss) on available-for-sale securities
|
(248,385 | ) | 279,470 | 24,615 | ||||||||
Net
comprehensive loss
|
$ | (401,446 | ) | $ | (712,657 | ) | $ | (73,280 | ) |
Accumulated
|
||||||||||||||||||||||||||||||||||||
Additional
|
Stock
|
Other
|
||||||||||||||||||||||||||||||||||
Preferred
Stock
|
Common
Stock
|
Paid-in
|
Subscription
|
Comprehensive
|
Accumulated
|
|||||||||||||||||||||||||||||||
Shares
|
Par
|
Shares
|
Par
|
Capital
|
Receivable
|
Income
|
Deficit
|
Total
|
||||||||||||||||||||||||||||
Balance,
September 30, 2007
|
2,713 | $ | 2 | 6,375,821 | $ | 6,376 | $ | 8,874,261 | $ | (5,000 | ) | $ | - | $ | (8,789,621 | ) | $ | 86,018 | ||||||||||||||||||
Common
stock issued for:
|
||||||||||||||||||||||||||||||||||||
Cash
|
- | - | 12,166,666 | 12,166 | 623,417 | - | - | - | 635,583 | |||||||||||||||||||||||||||
Collect
Stock Subscription
|
- | - | - | - | - | 5,000 | - | - | 5,000 | |||||||||||||||||||||||||||
Acquire
60% of USN
|
- | - | 6,400,000 | 6,400 | 313,600 | - | - | - | 320,000 | |||||||||||||||||||||||||||
To
convert preferred stock and pay a portion of preferred
dividends
|
(2,713 | ) | (2 | ) | 25,150,000 | 25,150 | 101,078 | - | - | - | 126,226 | |||||||||||||||||||||||||
Acquire
5% of Alt Energy
|
- | - | 500,000 | 500 | 24,000 | - | - | - | 24,500 | |||||||||||||||||||||||||||
Unrealized
gain from available-for-sale securities
|
- | - | - | - | - | - | 279,470 | - | 279,470 | |||||||||||||||||||||||||||
Preferred
dividends declared
|
- | - | - | - | - | - | - | (162,780 | ) | (162,780 | ) | |||||||||||||||||||||||||
Restated
Net loss (Note 3)
|
- | - | - | - | - | - | - | (992,127 | ) | (992,127 | ) | |||||||||||||||||||||||||
Balance,
September 30, 2008
|
- | - | 50,592,487 | 50,592 | 9,936,356 | - | 279,470 | (9,944,528 | ) | 321,890 | ||||||||||||||||||||||||||
Common
stock issued for:
|
||||||||||||||||||||||||||||||||||||
Cash
|
- | - | 333,333 | 334 | 9,666 | - | - | - | 10,000 | |||||||||||||||||||||||||||
Unrealized
loss from available-for-sale securities
|
- | - | - | - | - | - | (248,385 | ) | - | (248,385 | ) | |||||||||||||||||||||||||
Net
loss
|
- | - | - | - | - | - | - | (153,061 | ) | (153,061 | ) | |||||||||||||||||||||||||
Balance,
September 30, 2009
|
- | $ | - | 50,925,820 | $ | 50,926 | $ | 9,946,022 | $ | - | $ | 31,085 | $ | (10,097,589 | ) | $ | (69,556 | ) |
Development
|
||||||||||||
Stage
|
||||||||||||
Inception
|
||||||||||||
2008
|
(January 20, 2009)
|
|||||||||||
(Restated
|
Through
|
|||||||||||
2009
|
Note 3
|
September 30, 2009
|
||||||||||
Operating activities:
|
||||||||||||
Net
increase (decrease) in net assets from operations
|
$ | (153,061 | ) | $ | (992,127 | ) | $ | (97,895 | ) | |||
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
|
3,620 | 58,500 | 3,620 | |||||||||
Asset
impairment
|
- | 707,158 | - | |||||||||
Bad
debt expense
|
- | 166,166 | - | |||||||||
Proceeds
from sale of investments
|
- | 55,000 | - | |||||||||
(Gain)
loss on sale of investments
|
24,500 | (5,000 | ) | 24,500 | ||||||||
Non-controlling
interest
|
- | (213,333 | ) | - | ||||||||
Changes
in operating assets and liabilities:
|
||||||||||||
Accounts
receivable and accrued interest - related parties
|
(2,497 | ) | (3,504 | ) | (4,686 | ) | ||||||
Accounts
payable and accrued expenses
|
48,449 | 53,602 | 28,262 | |||||||||
Accounts
payable and accrued expenses - related parties
|
47,025 | 20,512 | 33,656 | |||||||||
Advances
from related parties for working capital
|
11,660 | 20,000 | 6,660 | |||||||||
Net
cash used in operating activities
|
(20,304 | ) | (133,026 | ) | (5,883 | ) | ||||||
Investing
activities:
|
||||||||||||
Website
development costs
|
- | (173,825 | ) | - | ||||||||
Investments
made
|
- | (263,696 | ) | - | ||||||||
Net
cash used in investing activities
|
- | (437,521 | ) | - | ||||||||
Financing
activities:
|
||||||||||||
Common
stock issued for cash
|
10,000 | 635,583 | - | |||||||||
Preferred
dividends paid in cash
|
- | (67,500 | ) | - | ||||||||
Collection
of stock subscription receivable
|
- | 5,000 | - | |||||||||
Net
cash used in investing activities
|
10,000 | 573,083 | - | |||||||||
Net
increase (decrease) in cash and cash equivalents
|
(10,304 | ) | 2,536 | (5,883 | ) | |||||||
Cash
and cash equivalents, beginning of period
|
10,886 | 8,350 | 6,465 | |||||||||
Cash
and cash equivalents, end of period
|
$ | 582 | $ | 10,886 | $ | 582 | ||||||
Supplemental
Cash Flow Information:
|
||||||||||||
Cash
paid for interest and income taxes:
|
||||||||||||
Interest
|
$ | - | $ | - | $ | - | ||||||
Income
taxes
|
- | - | - | |||||||||
Non-cash
investing and financing activities:
|
||||||||||||
Common
stock issued for redemption of preferred stock and payment of preferred
dividends
|
- | 397,526 | - | |||||||||
Note
payable issued to acquire investment
|
100,000 | 320,000 | 100,000 | |||||||||
Common
stock issued for stock subscription receivable
|
- | 6,000 | - |
1.
|
NATURE
OF BUSINESS
|
|
a.
|
ORGANIZATION
|
|
b.
|
GOING
CONCERN
|
2.
|
SIGNIFICANT
ACCOUNTING POLICIES
|
|
·
|
Persuasive
evidence of an arrangement exists;
|
|
·
|
Delivery
has occurred or services have been
rendered;
|
|
·
|
The
seller's price to the buyer is fixed or determinable;
and
|
|
·
|
Collectability
is reasonably assured.
|
3.
|
RESTATEMENT
|
2008
|
||||
Net
decrease in net assets from opeations, as originally
reported
|
$ | (63,667 | ) | |
Unrealized
gain on available-for-sale securities
|
(279,470 | ) | ||
Net
loss of majority owned subsidiary not previously
consolidated
|
(463,413 | ) | ||
Net
loss before noncontrolling interest
|
(806,550 | ) | ||
Noncontrolling
interest
|
213,333 | |||
Net
loss
|
(593,217 | ) | ||
Preferred
dividends
|
(162,780 | ) | ||
Net
loss available to common shareholders
|
$ | (755,997 | ) | |
Net
loss per share, basic and diluted:
|
||||
As
originally reported
|
$ | (0.01 | ) | |
Restated
|
$ | (0.02 | ) | |
Other
comprehensive income (loss):
|
||||
Net
loss as adjusted above
|
$ | (593,217 | ) | |
Gain
on available-for-sale securities
|
279,470 | |||
Other
comprehensive loss
|
$ | (313,747 | ) |
Balance Sheet
|
Reported as
Consolidated
with USN
|
Adjustments
|
As Adjusted
|
||||||||||
Website
|
$ | 173,825 |
a
|
(173,825 | ) | $ | - | ||||||
Notes
receivable - Zatso, LLC
|
166,166 |
b
|
(166,166 | ) | - | ||||||||
Accrued
interest receivable - Zatso, LLC
|
7,719 |
b
|
(7,719 | ) | - | ||||||||
Accounts
receivable - Zatso, LLC
|
7,500 |
c
|
(7,500 | ) | - | ||||||||
Accounts
payable
|
15,940 |
d
|
43,700 | 59,640 | |||||||||
Retained
earnings
|
(9,545,618 | ) |
a
|
(173,825 | ) | (9,944,528 | ) | ||||||
b
|
(166,166 | ) | |||||||||||
b
|
(7,719 | ) | |||||||||||
c
|
(7,500 | ) | |||||||||||
d
|
(43,700 | ) | |||||||||||
Statement
of operations
|
|||||||||||||
Management
fee income
|
(7,500 | ) |
c
|
7,500 | - | ||||||||
Asset
impairment
|
533,333 |
a
|
173,825 | 707,158 | |||||||||
Interest
income - Zatso, LLC
|
(7,719 | ) |
b
|
7,719 | - | ||||||||
Bad
debt expense
|
- |
b
|
166,166 | 166,166 | |||||||||
General
and administrative expense
|
255,775 |
d
|
43,700 | 299,475 | |||||||||
Net
loss
|
(593,217 | ) | (398,910 | ) | (992,127 | ) | |||||||
Preferred
dividends
|
(162,780 | ) | (162,780 | ) | |||||||||
Net
loss available to common shareholders
|
(755,997 | ) | (398,910 | ) | (1,154,907 | ) | |||||||
Net
loss per common share, basic and diluted:
|
|||||||||||||
As
originally reported
|
$ | 0.02 | |||||||||||
Restated
|
$ | 0.01 | $ | 0.03 | |||||||||
Other
comprehensive income (loss):
|
|||||||||||||
Net
loss
|
$ | (593,217 | ) | $ | (398,910 | ) | $ | (992,127 | ) | ||||
Unrealized
gain on available-for-sale securities
|
279,470 | - | 279,470 | ||||||||||
Other
comprehensive loss
|
$ | (313,747 | ) | $ | (398,910 | ) | $ | (712,657 | ) |
a
|
Impairment
of website
|
b
|
Write
off note receivable from Zatso, LLC and related accrued
interest
|
c
|
Reverse
management income billed to Zatso,
LLC
|
d
|
Unrecorded
liabilities of which the Company had no previous
knowledge
|
4.
|
INVESTMENTS
IN AFFILIATES
|
2009
|
2008
|
|||||||
Available-for-sale
securities - affiliates
|
$ | 179,495 | $ | 331,500 | ||||
Notes
receivable due from affiliate
|
||||||||
Cost
|
55,089 | 51,500 | ||||||
Accrued
interest
|
2,730 | 3,152 | ||||||
57,819 | 54,652 | |||||||
Investments
at cost - affiliate
|
$ | - | $ | 24,500 |
Realized
|
Unrecognized
|
|||||||||||||||
Holding
|
Holding
|
Fair
|
||||||||||||||
Cost
|
Losses
|
Losses
|
Value
|
|||||||||||||
September 30, 2008
|
||||||||||||||||
Efftec
International, Inc.
|
$ | 75,000 | $ | (58,500 | ) | $ | - | $ | 16,500 | |||||||
North
American Energy
|
35,530 | - | 279,470 | 315,000 | ||||||||||||
$ | 110,530 | $ | (58,500 | ) | $ | 279,470 | $ | 331,500 | ||||||||
September 30, 2009
|
||||||||||||||||
Efftec
International, Inc.
|
$ | 16,500 | $ | (3,620 | ) | $ | - | $ | 12,880 | |||||||
North
American Energy
|
135,530 | - | 31,085 | 166,615 | ||||||||||||
$ | 152,030 | $ | (3,620 | ) | $ | 31,085 | $ | 179,495 |
2009
|
2008
|
|||||||
Efftec International,
Inc.
|
||||||||
Principal
|
$ | 55,089 | $ | 51,500 | ||||
Accrued
interest
|
2,730 | 3,152 | ||||||
$ | 57,819 | $ | 54,652 |
2009
|
2008
|
|||||||
ALT Energy, Inc., 5% stock
ownership
|
$ | - | $ | 24,500 |
2009
|
2008
|
|||||||
Computed "expected" income tax
benefit
|
$ | 52,000 | $ | 337,300 | ||||
State income taxes, net of federal
benefit
|
6,100 | 39,700 | ||||||
Valuation
allowance
|
(58,100 | ) | (377,000 | ) | ||||
$ | - | $ | - |
2009
|
2008
|
|||||||
Net operating loss
carryforwards
|
853,400 | $ | 900,400 | |||||
Capital loss
carryforwards
|
6,100 | 6,100 | ||||||
Investments
|
161,700 | 56,600 | ||||||
Total deferred tax
assets
|
1,021,200 | 963,100 | ||||||
Valuation
allowance
|
(1,021,200 | ) | (963,100 | ) | ||||
Net deferred tax
assets
|
$ | - | $ | - |
2009
|
2008
|
|||||||
Advance to related
party:
|
||||||||
HealthSport,
Inc.
|
- | 670 | ||||||
- | 670 |
Realized
|
Unrecognized
|
|||||||||||||||
Holding
|
Holding
|
Fair
|
||||||||||||||
Cost
|
Losses
|
Losses
|
Value
|
|||||||||||||
September 30,
2008
|
||||||||||||||||
Efftec International,
Inc.
|
$ | 75,000 | $ | (58,500 | ) | $ | - | $ | 16,500 | |||||||
North American
Energy
|
35,530 | - | 279,470 | 315,000 | ||||||||||||
$ | 110,530 | $ | (58,500 | ) | $ | 279,470 | $ | 331,500 | ||||||||
September 30,
2009
|
||||||||||||||||
Efftec International,
Inc.
|
$ | 16,500 | $ | (3,620 | ) | $ | - | $ | 12,880 | |||||||
North American
Energy
|
135,530 | - | 31,085 | 166,615 | ||||||||||||
$ | 152,030 | $ | (3,620 | ) | $ | 31,085 | $ | 179,495 |
2009
|
2008
|
|||||||
Notes and accrued interest
receivable -
affiliates
|
||||||||
Efftec International, Inc. -
principal
|
$ | 55,089 | $ | 51,500 | ||||
Accrued
interest
|
2,730 | 3,152 | ||||||
57,819 | 54,652 | |||||||
Investments at cost -
affiliate
|
||||||||
ALT Energy,
Inc.
|
$ | - | $ | 24,500 | ||||
- | 24,500 | |||||||
Accounts payable - related
parties:
|
||||||||
G. David Gordon & Associates,
P.C. and G. David Gordon
|
$ | 55,354 | $ | 22,613 | ||||
Hank
Durschlag
|
9,000 | 535 | ||||||
BJB Services,
Inc.
|
31,000 | - | ||||||
Ross Silvey
|
2,500 | - | ||||||
97,854 | 23,148 | |||||||
Notes payable - affiliate - Avenel
Financial Group
|
$ | 100,000 | $ | - | ||||
Accrued interest - affiliate - Avenel
Financial Group
|
$ | 2,844 | $ | - | ||||
Non-interest bearing advances from
affiliates:
|
||||||||
Avenel Financial
Group
|
$ | 20,000 | $ | 20,000 | ||||
MLM
Concepts
|
5,000 | - | ||||||
Chef-on-the-Go
|
1,660 | - | ||||||
G. David
Gordon
|
5,000 | - | ||||||
31,660 | 20,000 |
2009
|
2008
|
|||||||
Consulting income -
affiliate - Chef
on-the-Go
|
$ | 2,567 | $ | - | ||||
Interest income -
affiliates
|
||||||||
Efftec International,
Inc.
|
$ | 6,266 | $ | 4,652 | ||||
North American Energy Resources,
Inc.
|
- | 1,805 | ||||||
6,266 | 6,457 | |||||||
Related party
expenses:
|
||||||||
Bad debt expense - Zatso,
LLC
|
$ | - | $ | 168,423 | ||||
Director fees - Ross
Silvey
|
3,000 | 10,000 | ||||||
Legal fees - G. David Gordon &
Associates, PC
|
32,681 | 98,784 | ||||||
Accounting - BJB Services,
Inc.
|
34,000 | 36,000 | ||||||
CEO compensation - Hank
Durschlag
|
16,227 | 19,500 | ||||||
Consulting fees - Jack
Hargett
|
- | 23,500 | ||||||
85,908 | 356,207 | |||||||
Realized loss - ALT Energy,
Inc.
|
$ | 24,500 | $ | - | ||||
Unrealized gains (losses) from
marketable equity securities of affiliates:
|
||||||||
Efftec International,
Inc.
|
$ | (3,620 | ) | $ | (58,500 | ) | ||
North American Energy Resources,
Inc.
|
(248,385 | ) | 279,470 | |||||
(252,005 | ) | 220,970 |
ITEM
9:
|
CHANGES
IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE
|
ITEM
10:
|
DIRECTORS
AND EXECUTIVE OFFICERS OF THE
REGISTRANT
|
NAME
|
AGE
|
POSITION
|
M.E.
“Hank” Durschlag
|
46
|
President,
CEO and Director since March 30, 2007
|
Ross
E. Silvey
|
80
|
Independent
Director since March 30, 2007
|
Erik
S. Phillips
|
39
|
Independent
Director since December 2007
|
ITEM
11:
|
EXECUTIVE
COMPENSATION
|
Name and Principal
Position
|
Year
|
Salary
|
Bonus
|
Total
|
|||||||||
M.E. “Hank”
Durschlag
|
2009
|
$ | 16,227 |
None
|
$ | 16,227 | |||||||
Chairman of the
Board,
|
2008
|
$ | 19,500 | N/A | $ | 19,500 | |||||||
President, CEO and
CFO
|
2007
|
$ | 3,000 | N/A | $ | 3,000 | |||||||
Since March 30,
2007
|
|||||||||||||
Michael D.
Pruitt
|
2009
|
N/A | N/A | N/A | |||||||||
Chairman of the
Board,
|
2008
|
N/A | N/A | N/A | |||||||||
President, CEO and
CFO
|
2007
|
None
|
None
|
None
|
|||||||||
Since September 22,
2006
|
|||||||||||||
Until March 30,
2007
|
Directors
Fee
|
||||
Earned
or Paid
|
||||
Name
|
In Cash ($)
|
|||
M.E.
“Hank” Durschlag
|
$ | - | ||
Ross
E. Silvey
|
3,000 | |||
Erik
S. Phillips
|
- |
ITEM
12:
|
SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED
STOCKHOLDER MATTERS
|
Name
and Address of
|
Amount
and Nature of
|
|||||||||
Title
of Class
|
Beneficial
Owner *
|
Beneficial
Owner
|
% of
Class
|
|||||||
Common
|
Adam
Adler
|
4,000,000 | 7.85 | % | ||||||
Common
|
Avenel
Financial Group, Inc.
|
2,580,000 | 5.07 | % |
Name
and Address of
|
Amount
and Nature of
|
|||||||||
Title of Class
|
Beneficial Owner
|
Beneficial Owner
|
% of Class
|
|||||||
Common
|
M.E.
“Hank” Durschlag
|
1,000,000 | 1.96 | % | ||||||
Common
|
Ross
E. Silvey
|
- | * | |||||||
Common
|
Erik
S. Phillips
|
- | * | |||||||
Common
|
All
officers and directors as a
|
1,000,000 | 1.96 | % | ||||||
Group
(3 persons)
|
|
*
|
Less
than 1%.
|
ITEM
13:
|
CERTAIN
RELATIONSHIPS AND RELATED
TRANSACTIONS
|
2009
|
2008
|
|||||||
Advance to related
party:
|
||||||||
HealthSport,
Inc.
|
- | 670 | ||||||
- | 670 |
Realized
|
Unrecognized
|
|||||||||||||||
Holding
|
Holding
|
Fair
|
||||||||||||||
Cost
|
Losses
|
Losses
|
Value
|
|||||||||||||
September 30,
2008
|
||||||||||||||||
Efftec International,
Inc.
|
$ | 75,000 | $ | (58,500 | ) | $ | - | $ | 16,500 | |||||||
North American
Energy
|
35,530 | - | 279,470 | 315,000 | ||||||||||||
$ | 110,530 | $ | (58,500 | ) | $ | 279,470 | $ | 331,500 | ||||||||
September 30,
2009
|
||||||||||||||||
Efftec International,
Inc.
|
$ | 16,500 | $ | (3,620 | ) | $ | - | $ | 12,880 | |||||||
North American
Energy
|
135,530 | - | 31,085 | 166,615 | ||||||||||||
$ | 152,030 | $ | (3,620 | ) | $ | 31,085 | $ | 179,495 |
2009
|
2008
|
|||||||
Notes and accrued interest
receivable - affiliates
|
||||||||
Efftec International, Inc. -
principal
|
$ | 55,089 | $ | 51,500 | ||||
Accrued
interest
|
2,730 | 3,152 | ||||||
57,819 | 54,652 | |||||||
Investments at cost -
affiliate
|
||||||||
ALT Energy,
Inc.
|
$ | - | $ | 24,500 | ||||
- | 24,500 | |||||||
Accounts payable - related
parties:
|
||||||||
G. David Gordon & Associates,
P.C. and G. David Gordon
|
$ | 55,354 | $ | 22,613 | ||||
Hank
Durschlag
|
9,000 | 535 | ||||||
BJB Services,
Inc.
|
31,000 | - | ||||||
Ross Silvey
|
2,500 | - | ||||||
97,854 | 23,148 | |||||||
Notes payable - affiliate - Avenel
Financial Group
|
$ | 100,000 | $ | - | ||||
Accrued interest - affiliate -
Avenel Financial
Group
|
$ | 2,844 | $ | - | ||||
Non-interest bearing advances from
affiliates:
|
||||||||
Avenel Financial
Group
|
$ | 20,000 | $ | 20,000 | ||||
MLM
Concepts
|
5,000 | - | ||||||
Chef-on-the-Go
|
1,660 | - | ||||||
G. David
Gordon
|
5,000 | - | ||||||
31,660 | 20,000 |
2009
|
2008
|
|||||||
Consulting income - affiliate -
Chef on-the-Go
|
$ | 2,567 | $ | - | ||||
Interest income -
affiliates
|
||||||||
Efftec International,
Inc.
|
$ | 6,266 | $ | 4,652 | ||||
North American Energy Resources,
Inc.
|
- | 1,805 | ||||||
6,266 | 6,457 | |||||||
Related party
expenses:
|
||||||||
Bad debt expense - Zatso,
LLC
|
$ | - | $ | 168,423 | ||||
Director fees - Ross
Silvey
|
3,000 | 10,000 | ||||||
Legal fees - G. David Gordon &
Associates, PC
|
32,681 | 98,784 | ||||||
Accounting - BJB Services, Inc.
|
34,000 | 36,000 | ||||||
CEO compensation - Hank
Durschlag
|
16,227 | 19,500 | ||||||
Consulting fees - Jack
Hargett
|
- | 23,500 | ||||||
85,908 | 356,207 | |||||||
Realized loss - ALT Energy,
Inc.
|
$ | 24,500 | $ | - | ||||
Unrealized gains (losses) from
marketable equity securities of affiliates:
|
||||||||
Efftec International,
Inc.
|
$ | (3,620 | ) | $ | (58,500 | ) | ||
North American Energy Resources,
Inc.
|
(248,385 | ) | 279,470 | |||||
(252,005 | ) | 220,970 |
ITEM
14:
|
PRINCIPAL
ACCOUNTANT FEES AND SERVICES
|
ITEM
15:
|
EXHIBITS
AND FINANCIAL STATEMENT SCHEDULES
|
(a)
|
The
following documents are filed as part of this
report:
|
1.
|
Financial
Statements – The following financial statements of Double Eagle Holdings,
Ltd. are contained in Item 8 of this Form
10-K:
|
·
|
Report
of Independent Registered Public
Accountant
|
·
|
Consolidated
Balance Sheets at September 30, 2009 and
2008
|
·
|
Consolidated
Statements of Operations – For the years ended September 30, 2009
and 2008 and Inception (January 20, 2009) to September 30,
2009
|
·
|
Consolidated
Statements of Stockholders' Equity (Deficit) at September 30, 2009 and
2008
|
·
|
Consolidated
Statements of Cash Flows - For the years ended September 30, 2009 and 2008
and Inception (January 20, 2009) to September 30,
2009
|
·
|
Notes
to the Consolidated Financial
Statements
|
2.
|
Financial
Statement Schedules were omitted, as they are not required or are not
applicable, or the required information is included in the Financial
Statements.
|
3.
|
Exhibits
– The following exhibits are filed with this report or are incorporated
herein by reference to a prior filing, in accordance with Rule 12b-32
under the Securities Exchange Act of
1934.
|
Exhibit
|
Description | |
31.1
|
Certification
of the Chief Executive Officer and Chief Financial Officer pursuant to
Rule 13a-14 of the Securities Exchange Act of 1934, as amended, pursuant
to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
32.1
|
Certification
of the Chief Executive Officer and Chief Financial Officer pursuant to 18
U.S.C. Section 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of
2002
|
DOUBLE
EAGLE HOLDINGS, LTD.
|
|
By:
|
/s/
M.E. “Hank”
Durschlag
|
M.E. “Hank” Durschlag, Chairman,
|
|
Chief
Executive Officer and
|
|
Chief
Financial Officer
|
Date
|
Title
(Capacity)
|
Signature
|
||
February
12, 2010
|
Chairman,
Chief Executive Officer
|
/s/ M.E. “Hank”
Durschlag
|
||
and
Chief Financial Officer
|
M.E. “Hank” Durschlag
|
|||
February
12, 2010
|
Director
|
/s/ Ross E. Silvey
|
||
Ross E. Silvey
|
||||
February
12, 2010
|
Director
|
/s/ Erik S. Phillips
|
||
Erik S.
Phillips
|