x
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QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
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o
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TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
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Delaware
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98-0412432
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(State
or other jurisdiction of
incorporation
or organization)
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(I.R.S.
Employer Identification No.)
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1
Innwood Circle, Suite 209, Little Rock, Arkansas
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72211
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(Address
of principal executive offices)
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(Zip
Code)
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(501)
223-3310
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(Issuer’s
telephone number)
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PART
I - FINANCIAL INFORMATION
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1
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Item
1. Financial Information
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10
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Item
2. Management’s Discussion and Analysis or Plan of
Operation
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12
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Item
3. Controls and Procedures
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|
|
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PART
II -OTHER INFORMATION
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13
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Item
1. Legal Proceedings.
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13
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Item
2. Unregistered Sales of Equity Securities and Use of
Proceeds.
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13
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Item
3. Defaults Upon Senior Securities.
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13
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Item
4. Submission of Matters to a Vote of Security Holders.
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13
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Item
5. Other Information.
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13
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Item
6. Exhibits and Reports of Form 8-K.
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13
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|
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SIGNATURES
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14
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PAGE
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1
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CONDENSED
CONSOLIDATED BALANCE SHEET AS OF JUNE 30, 2007
(UNAUDITED)
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PAGE
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2
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CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND SIX MONTHS
ENDED
JUNE 30, 2007 AND 2006, AND FOR THE PERIODS FROM FEBRUARY 23, 2004
(INCEPTION) TO JUNE 30, 2007 (UNAUDITED)
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PAGE
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3-4
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CONDENSED
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ DEFICIENCY FOR THE
PERIOD FROM FEBRUARY 23, 2004 (INCEPTION) TO JUNE 30, 2007
(UNAUDITED)
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PAGE
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5
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CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE
30,
2007 AND 2006, AND FOR THE PERIOD FROM FEBRUARY 23, 2004 (INCEPTION)
TO
JUNE 30, 2007 (UNAUDITED)
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PAGES
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6 -
11
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NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2007
(UNAUDITED)
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ASSETS
|
||||
CURRENT
ASSETS
|
||||
Cash
|
$ |
1,507
|
||
Total
Current Assets
|
1,507
|
|||
PROPERTY
AND EQUIPMENT, NET
|
3,268
|
|||
OTHER
ASSETS
|
||||
Deposits
|
750
|
|||
Total
Other Assets
|
750
|
|||
TOTAL
ASSETS
|
$ |
5,525
|
||
LIABILITIES
AND STOCKHOLDERS’ DEFICIENCY
|
||||
CURRENT
LIABILITIES
|
||||
Accounts
payable and accrued expenses
|
$ |
21,404
|
||
Stockholder
loans
|
52,634
|
|||
TOTAL
LIABILITIES
|
74,038
|
|||
STOCKHOLDERS’
DEFICIENCY
|
||||
Common
stock, $0.0001 par value, 100,000,000 shares authorized,
53,980,000 shares issued and outstanding
|
5,400
|
|||
Additional
paid in capital
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251,460
|
|||
Accumulated
deficit during development stage
|
(325,373 | ) | ||
Total
Stockholders’ Deficiency
|
(68,513 | ) | ||
TOTAL
LIABILITIES AND STOCKHOLDERS’ DEFICIENCY
|
$ |
5,525
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||
For
the Three Months Ended June 30, 2007
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For
the Three Months Ended
June
30, 2006 (Restated)
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For
the Six Months Ended
June
30, 2007
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For
the Six Months Ended
June
30, 2006 (Restated)
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For
the Period from February 23, 2004 (Inception) to June 30,
2007
|
||||||||||||||||
REVENUE
|
$ |
-
|
$ |
-
|
$ |
-
|
$ |
-
|
$ |
-
|
||||||||||
OPERATING
EXPENSES
|
||||||||||||||||||||
In-Kind
contribution of Officer’s Salary
|
27,250
|
- |
27,250
|
- |
81,750
|
|||||||||||||||
Professional
Fees
|
3,404
|
- |
9,980
|
- |
61,849
|
|||||||||||||||
General
and administrative
|
9,902
|
16,675
|
14,643
|
26,360
|
168,983
|
|||||||||||||||
Total
Operating Expenses
|
40,556
|
16,675
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51,873
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26,360
|
312,582
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|||||||||||||||
LOSS
FROM OPERATIONS
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(40,556 | ) | (16,675 | ) | (51,873 | ) | (26,360 | ) | (312,582 | ) | ||||||||||
OTHER
INCOME (EXPENSE)
|
||||||||||||||||||||
Other
income
|
-
|
-
|
-
|
-
|
(30 | ) | ||||||||||||||
Loss
on disposal of assets
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-
|
-
|
-
|
-
|
6,893
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|||||||||||||||
Interest
expense
|
710
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26
|
1,332
|
854
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5,928
|
|||||||||||||||
Total
Other (Income) Expense
|
710
|
26
|
1,332
|
854
|
12,791
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|||||||||||||||
LOSS
BEFORE PROVISION FOR INCOME TAXES
|
(41,266 | ) | (16,701 | ) | (53,205 | ) | (27,214 | ) | (325,373 | ) | ||||||||||
Provision
for Income Taxes
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
NET
LOSS
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$ | (41,266 | ) | $ | (16,701 | ) | (53,205 | ) | (27,214 | ) | (325,373 | ) | ||||||||
Net
Loss Per Share – Basic and Diluted
|
$ |
-
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$ |
-
|
$ |
-
|
$ |
-
|
||||||||||||
Weighted
Average Number of Common Shares Outstanding – Basic and
Diluted
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53,804,176
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53,440,440
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53,642,983
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52,846,851
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Common
Stock
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Additional
Paid-In
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Accumulated
Deficit During Development
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||||||||||||||||||
Shares
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Amount
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Capital
|
Stage
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Total
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||||||||||||||||
Common
stock issued to founders for cash ($0.00002 per share)
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45,000,000
|
$ |
4,500
|
$ | (3,600 | ) | $ |
-
|
$ |
900
|
||||||||||
Common
stock issued for legal services ($0.02 per share)
|
500,000
|
50
|
9,950
|
-
|
10,000
|
|||||||||||||||
Common
stock issued for services ($0.02 per share)
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2,500,000
|
250
|
49,750
|
-
|
50,000
|
|||||||||||||||
Common
stock issued for cash ($0..02 per share)
|
2,280,000
|
230
|
45,370
|
-
|
45,600
|
|||||||||||||||
In-kind
contribution of interest on stockholder loans
|
-
|
-
|
646
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-
|
646
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|||||||||||||||
Net
loss for the period from February 23, 2004 (inception) to December
31,
2004
|
-
|
-
|
-
|
(110,081 | ) | (110,081 | ) | |||||||||||||
Balance,
December 31, 2004
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50,280,000
|
5,030
|
102,116
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(110,081 | ) | (2,935 | ) | |||||||||||||
Common
stock issued for services ($0.02 per share)
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500,000
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50
|
9,950
|
-
|
10,000
|
|||||||||||||||
Common
stock issued for cash ($0.02 per share)
|
500,000
|
50
|
9,950
|
-
|
10,000
|
|||||||||||||||
In-kind
contribution of interest on stockholder loans
|
-
|
-
|
1,787
|
-
|
1,787
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|||||||||||||||
Common
stock issued in reverse merger
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500,000
|
50
|
(1,650 | ) |
-
|
(1,600 | ) | |||||||||||||
Net
loss, 2005
|
-
|
-
|
-
|
(51,484 | ) | (51,484 | ) | |||||||||||||
Balance,
December 31, 2005 (restated)
|
51,780,000
|
5,180
|
122,153
|
(161,565 | ) | (34,232 | ) | |||||||||||||
Stock
issued for cash ($0.02 per share)
|
1,700,000
|
170
|
33,830
|
-
|
34,000
|
|||||||||||||||
In-kind
contribution of interest on stockholder loans
|
-
|
-
|
1,248
|
-
|
1,248
|
|||||||||||||||
In-kind
contribution of compensation
|
-
|
-
|
54,500
|
-
|
54,500
|
|||||||||||||||
In
–kind contribution of automobile allowance
|
-
|
-
|
1,500
|
-
|
1,500
|
|||||||||||||||
Net
loss, 2006
|
-
|
-
|
-
|
(110,603 | ) | (110,603 | ) | |||||||||||||
BALANCE,
December 31, 2006
|
53,480,000
|
5,350
|
213,231
|
(272,168 | ) | (53,587 | ) | |||||||||||||
Stock
Issued for cash ($0.02 per share)
|
500,000
|
50
|
9,950
|
-
|
10,000
|
|||||||||||||||
In-kind
contribution of compensation
|
-
|
-
|
27,250
|
-
|
27,250
|
|||||||||||||||
In-kind
contribution of interest of stockholder loans
|
-
|
-
|
1,029
|
-
|
1,029
|
|||||||||||||||
Net
loss for the six months ended June 30, 2007
|
-
|
-
|
-
|
(53,205 | ) | (53,205 | ) | |||||||||||||
BALANCE,
June 30, 2007
|
53,980,000
|
$ |
5,400
|
$ |
251,460
|
$ | (325,373 | ) | $ | (68,513 | ) |
For
the Six Months Ended June 30, 2007
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For
the Six Months June 30, 2006
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For
the Period from February 23, 2004 (Inception) to June 30,
2007
|
||||||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||||
Net
loss
|
$ | (53,205 | ) | $ | (27,214 | ) | $ | (325,373 | ) | |||
Adjustments
to reconcile net loss to net cash provided by (used in) operating
activities:
|
||||||||||||
In-Kind
Compensation
|
27,250
|
-
|
81,750
|
|||||||||
Depreciation
|
463
|
462
|
5,130
|
|||||||||
Loss
on disposal of property and equipment
|
-
|
-
|
6,893
|
|||||||||
In-kind
contribution of expenses
|
1,029
|
578
|
6,210
|
|||||||||
Stock
issued for payment of services and expenses
|
-
|
70,000
|
||||||||||
Changes
in operating assets and liabilities:
|
||||||||||||
Deposits
|
-
|
-
|
(750 | ) | ||||||||
Prepaid
expenses
|
250
|
550
|
||||||||||
Accounts
payable and accrued expenses
|
2,452
|
3,400
|
19,803
|
|||||||||
Net
Cash Provided By (Used In) Operating Activities
|
(21,761 | ) | (22,224 | ) | (136,337 | ) | ||||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||||
Proceeds
from the sale of property and equipment
|
-
|
-
|
3,425
|
|||||||||
Purchase
of property and equipment
|
-
|
-
|
(18,716 | ) | ||||||||
Net
Cash Provided By (Used In) Investing Activities
|
-
|
-
|
(15,291 | ) | ||||||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||||
Proceeds
from issuance of loan payable – related party
|
20,000
|
-
|
111,420
|
|||||||||
Repayment
of loan payable – related party
|
(7,962 | ) | (12,481 | ) | (58,785 | ) | ||||||
Proceeds
from issuance of common stock
|
10,000
|
34,000
|
100,500
|
|||||||||
Net
Cash Provided By (Used In) Financing Activities
|
22,038
|
21,519
|
153,135
|
|||||||||
NET
INCREASE (DECREASE) IN CASH
|
277
|
(705 | ) |
1,507
|
||||||||
CASH
AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
1,230
|
2,335
|
-
|
|||||||||
CASH
AND CASH EQUIVALENTS AT END OF PERIOD
|
$ |
1,507
|
$ |
1,630
|
$ |
1,507
|
||||||
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION:
|
||||||||||||
Cash
paid during the period for interest
|
$ |
62
|
$ |
276
|
$ |
1,114
|
||||||
Cash
paid during the period for taxes
|
$ |
-
|
$ |
-
|
$ |
-
|
NOTE
1
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SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES AND
ORGANIZATION
|
NOTE
2
|
RELATED
PARTY TRANSACTIONS
|
NOTE
3
|
STOCKHOLDERS’
EQUITY
|
NOTE
4
|
GOING
CONCERN
|
|
(a)
|
Reports
on Form 8-K and Form 8K-A
|
|
|
|
|
|
|
|
None
|
|
|
|
|
|
|
(b)
|
Exhibits
|
|
|
|
|
|
|
|
Exhibit
Number
|
Exhibit
Title
|
|
|
|
|
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3.1
|
Certificate
of Incorporation; Certificate of Amendment to Certificate of Incorporation
*
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|
|
|
|
|
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3.3
|
By-Laws
*
|
|
|
|
|
|
|
31.1
|
Certification
of Gary Moore pursuant to 18 U.S.C. Section 1350 as adopted pursuant
to
Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
|
|
|
31.2
|
Certification
of Don Bratcher pursuant to 18 U.S.C. Section 1350 as adopted pursuant
to
Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
|
|
|
32.1
|
Certification
of Gary Moore pursuant to 18 U.S.C. Section 1350 as adopted pursuant
to
Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
|
|
|
32.2
|
Certification
of Don Bratcher pursuant to 18 U.S.C. Section 1350 as adopted pursuant
to
Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
|
|
|
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*
Incorporated by reference to our quarterly report for the period-ending
September 30, 2005 filed on Form 10-QSB filed with the SEC on June
7, 2006
(File No. 000-50494).
|