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 June 30, 2009 and September 30, 2008
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3
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Statements
of Operations – For the Three Months Ended June 30, 2009 and
2008
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4
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Statements
of Operations – For the Nine Months Ended June 30, 2009 and 2008 and from
inception (January 20, 2009) through June 30, 2009
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5
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Statements
of Cash Flows – For the Nine Months Ended June 30, 2009 and 2008 and from
inception (January 20, 2009) through June 30, 2009
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6
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Notes
to Financial Statements
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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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12
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Item
3:
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Quantitative
and Qualitative Disclosure about Market Risk
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15
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Item
4:
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Controls
and Procedures
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15
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Part II
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Other
Information
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16
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Item
1:
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Legal
Proceedings
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16
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Item
1A:
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Risk
Factors
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16
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Item
2:
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Unregistered
Sales of Equity Securities and Use of Proceeds
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16
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Item
3:
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Defaults
Upon Senior Securities
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16
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Item
4:
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Submission
of Matters to a Vote of Security Holders
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16
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Item
5:
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Other
Information
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16
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Item
6:
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Exhibits
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16
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Signatures
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17
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Exhibits
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June 30,
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September 30,
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|||||||
2009
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2008
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(Unaudited)
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ASSETS
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||||||||
Current
assets:
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||||||||
Cash
and cash equivalents
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$ | 1,408 | $ | 10,886 | ||||
Accounts
receivable
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50 | 15,720 | ||||||
Marketable
equity securities, less unrealized loss of $64,753 at June 30, 2009 and
unrealized gain of $170,970 at September 30, 2008
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220,276 | 331,500 | ||||||
TOTAL
CURRENT ASSETS
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221,734 | 358,106 | ||||||
Notes
and accrued interest receivable
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56,240 | 228,537 | ||||||
Investments
at cost
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- | 24,500 | ||||||
Website
costs in progress
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- | 173,825 | ||||||
$ | 277,974 | $ | 784,968 | |||||
LIABILITIES
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||||||||
Accounts
payable
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64,721 | 32,609 | ||||||
Notes
payable
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101,660 | - | ||||||
Accrued
expenses
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1,331 | 166 | ||||||
Advance
from shareholder
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25,000 | 20,000 | ||||||
TOTAL
CURRENT LIABILITIES
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192,712 | 52,775 | ||||||
Minority
interest
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||||||||
Commitments
and contingencies
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STOCKHOLDERS'
EQUITY
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Common
stock, $.001 par value; authorized 100,000,000 shares;
50,925,820
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shares
and 50,592,487 shares issued and outstanding at June 30,
2009
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and
September 30, 2008, respectively
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50,926 | 50,592 | ||||||
Additional
paid-in capital
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9,946,023 | 9,936,356 | ||||||
Accumulated
deficit
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(9,911,687 | ) | (9,254,755 | ) | ||||
Total
stockholders' equity
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85,262 | 732,193 | ||||||
Total
liabilities and stockholders' equity
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$ | 277,974 | $ | 784,968 |
2009
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2008
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Revenue
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Management
income
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$ | 2,567 | $ | 7,500 | ||||
Total
income
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2,567 | 7,500 | ||||||
Expenses:
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Asset
impairment
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173,825 | - | ||||||
General
and administrative expense
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219,140 | 69,869 | ||||||
392,965 | 69,869 | |||||||
Loss
from operations
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(390,398 | ) | (62,369 | ) | ||||
Other
income (expense):
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Interest
income
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4,117 | 4,715 | ||||||
Interest
expense
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(1,331 | ) | - | |||||
Realized
gain
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- | 5,000 | ||||||
Unrealized
gain (loss) on marketable equity securities
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72,376 | (3,750 | ) | |||||
Other
income (expense)
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75,162 | 5,965 | ||||||
Earnings
(loss) before income taxes
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(315,236 | ) | (56,404 | ) | ||||
Income
taxes
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- | - | ||||||
Net
earnings (loss) before minoritiy interest
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(315,236 | ) | (56,404 | ) | ||||
Minority
interest
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- | 10,167 | ||||||
Net
earnings (loss)
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$ | (315,236 | ) | $ | (46,237 | ) | ||
Earings
(loss) per share, basic and diluted
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$ | (0.01 | ) | $ | (0.00 | ) | ||
Weighted
average shares outstanding
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50,925,820 | 49,417,322 |
Development
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Stage
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Inception
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(January 20, 2009)
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Through
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2009
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2008
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June 30, 2009
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Revenue
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Management
income
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$ | 10,067 | $ | 7,500 | $ | 2,567 | ||||||
Total
income
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10,067 | 7,500 | 2,567 | |||||||||
Expenses:
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Asset
impairment
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173,825 | - | 148,825 | |||||||||
General
and administrative expense
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268,468 | 209,600 | 236,592 | |||||||||
442,293 | 209,600 | 385,417 | ||||||||||
Loss
from operations
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(432,226 | ) | (202,100 | ) | (382,850 | ) | ||||||
Other
income (expense):
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Interest
income
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12,350 | 10,015 | 8,188 | |||||||||
Interest
expense
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(1,332 | ) | - | (1,332 | ) | |||||||
Realized
gain (loss)
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- | 5,000 | - | |||||||||
Unrealized
loss on marketable equity securities
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(235,724 | ) | (63,750 | ) | (28,724 | ) | ||||||
Other
income (expense)
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(224,706 | ) | (48,735 | ) | (21,868 | ) | ||||||
Loss
before income taxes
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(656,932 | ) | (250,835 | ) | (404,718 | ) | ||||||
Income
taxes
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- | - | - | |||||||||
Net
loss before minoritiy interest
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(656,932 | ) | (250,835 | ) | (404,718 | ) | ||||||
Minority
interest
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- | 11,543 | - | |||||||||
Net
loss
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(656,932 | ) | (239,292 | ) | (404,718 | ) | ||||||
Preferred
dividends
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- | (162,780 | ) | - | ||||||||
Net
loss
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$ | (656,932 | ) | $ | (402,072 | ) | $ | (404,718 | ) | |||
Loss
per share, basic and diluted
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$ | (0.01 | ) | $ | (0.01 | ) | $ | (0.01 | ) | |||
Weighted
average shares outstanding
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50,481,620 | 33,999,300 | 50,925,820 |
Development
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Stage
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Inception
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(January 20, 2009)
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Through
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2009
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2008
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June 30, 2009
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Operating
activities:
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Net
increase (decrease) in net assets from operations
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$ | (656,932 | ) | $ | (402,072 | ) | $ | (429,718 | ) | |||
Adjustments
to reconcile net increase (decrease) in net assets
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from
operations to net cash used in operating activities:
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Change
in unrealized (gain) loss of marketable securities
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235,724 | 63,750 | 28,724 | |||||||||
Asset
impairment
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173,825 | - | 173,825 | |||||||||
Bad
debt expense
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204,048 | - | 204,048 | |||||||||
Proceeds
from sale of investment
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- | 55,000 | - | |||||||||
Gain
(loss) on sale of investment
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- | (5,000 | ) | - | ||||||||
Minority
interest
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- | (11,543 | ) | - | ||||||||
Preferred
dividends declared
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- | 162,780 | - | |||||||||
Changes
in operating assets and liabilities:
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Accounts
receivable and accrued interest
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(16,081 | ) | (12,230 | ) | (8,188 | ) | ||||||
Accounts
payable and accrued expenses
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33,278 | 27,268 | 24,592 | |||||||||
Net
cash used in operating activities
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(26,138 | ) | (122,047 | ) | (6,717 | ) | ||||||
Investing
activities:
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Website
development costs
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- | (148,825 | ) | - | ||||||||
Investments
made
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- | (265,573 | ) | - | ||||||||
Net
cash used in investing activities
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- | (414,398 | ) | - | ||||||||
Financing
activities:
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Common
stock issued for cash
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10,000 | 629,583 | - | |||||||||
Preferred
dividends paid in cash
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- | (67,500 | ) | - | ||||||||
Loan
from non affilliated company
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1,660 | - | 1,660 | |||||||||
Loan
from shareholder
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5,000 | - | - | |||||||||
Collection
of stock subscription receivable
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- | 11,000 | - | |||||||||
Net
cash used in investing activities
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16,660 | 573,083 | 1,660 | |||||||||
Net
increase (decrease) in cash and cash equivalents
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(9,478 | ) | 36,638 | (5,057 | ) | |||||||
Cash
and cash equivalents, beginning of period
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10,886 | 8,350 | 6,465 | |||||||||
Cash
and cash equivalents, end of period
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$ | 1,408 | $ | 44,988 | $ | 1,408 | ||||||
Supplemental
Cash Flow Information:
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Cash
paid for interest and income taxes:
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Interest
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$ | - | $ | - | $ | - | ||||||
Income
taxes
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- | - | - | |||||||||
Non-cash
investing and financing activities:
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Common
stock issued for redemption of preferred stock
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and
payment of preferred dividends
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- | 397,526 | - | |||||||||
Note
payable issued to acquire investment
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100,000 | 320,000 | 100,000 | |||||||||
Common
stock issued for stock subscription receivable
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- | 6,000 | - |
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·
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Trading
securities reported at fair value with unrealized gains and losses
included in earnings;
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·
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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;
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·
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Held-to-maturity
securities and other investments reported at amortized cost;
and
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·
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Investments
using the equity method of
accounting.
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Three months
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Nine months
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|||||||
Ended
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Ended
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June
30,
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June
30,
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2008
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2008
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Net
decrease in net assets from operations
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$ | (30,986 | ) | $ | (384,757 | ) | ||
Net
loss of wholly-owned subsidiary not previously
consolidated
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(25,418 | ) | (28,858 | ) | ||||
Net
loss before minority interest
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(56,404 | ) | (413,615 | ) | ||||
Minority
interest
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10,167 | 11,543 | ||||||
Net
loss
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(46,237 | ) | (402,072 | ) | ||||
Other
comprehensive earnings (loss):
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As
originally reported
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- | - | ||||||
Unrealized
gains (losses) on available-for-sale securities
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- | - | ||||||
Net
comprehensive earnings (loss)
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$ | (46,237 | ) | $ | (402,072 | ) | ||
Net
earnings (loss) per share, basic and diluted:
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As
originally reported
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$ | (0.00 | ) | $ | (0.01 | ) | ||
Restated
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$ | (0.00 | ) | $ | (0.01 | ) |
ITEM
2:
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MANAGEMENT'S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
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·
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None.
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·
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None.
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ITEM
3:
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QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK
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ITEM 4:
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CONTROLS
AND PROCEDURES
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ITEM1:
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LEGAL
PROCEEDINGS
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ITEM1A:
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RISK
FACTORS
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ITEM
2:
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UNREGISTERED
SALES OF EQUITY SECURITIES AND USE OF
PROCEEDS
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ITEM3:
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DEFAULTS
UPON SENIOR SECURITIES
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ITEM4:
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SUBMISSION
OF MATTERS TO A VOTE OF SECURITY
HOLDERS
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ITEM5:
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OTHER
INFORMATION
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ITEM6:
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EXHIBITS
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31.1
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Certification
pursuant to 18 U.S.C. Section 1350 Section 302 of the Sarbanes-Oxley Act
of 2002
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32.1
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Certification
pursuant to 18 U.S.C. Section 1350 Section 906 of the Sarbanes-Oxley Act
of 2002
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DOUBLE
EAGLE HOLDINGS, LTD.
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September
4, 2009
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By: /s/M.E. Durschlag
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M.E.
Durschlag, President,
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Chief
Executive Officer and
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Chief
Financial Officer
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