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<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: bold 10pt Times New Roman">Note 1 – Organization and Nature of Business</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="font: italic 10pt Times New Roman; display: inline">History</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"><font style="display: inline; font: 10pt Times New Roman">Roadships Holdings, Inc  was formed in Delaware on June 5, 2006 as Caddystats, Inc. (Roadships Holdings, Inc. and Caddystats shall hereinafter be collectively referred to as  “Roadships” “Caddystats” “Roadships Holdings”, the “Company”, “we’ or “us”)</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"><font style="font: italic 10pt Times New Roman; display: inline">Share Exchange and 5:1 Forward Split</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt Times New Roman">On March 3, 2009, the owners of Roadships Holdings, Inc., a Florida corporation (“Roadships Florida”), and Roadships America, Inc., also a Florida corporation (“Roadships Am”), both privately held companies, exchanged all of their outstanding shares of common stock for 16,025,000 shares of the common stock of Caddystats, a “public” company, representing approximately 100% of the outstanding common shares of the Caddystats. After the share exchange transaction (the “Transaction”), Caddystats changed its name to Roadships Holdings, Inc. and increased the authorized common stock of Roadships Holdings to 1,000,000,000 shares.  As a result of the transaction, Roadships Florida and Roadships Am (the “Subsidiaries”) are now wholly-owned subsidiaries of Roadships Holdings.</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt Times New Roman">In accordance with Accounting Standards Codification related to Business Combinations (“ASC 805”), the Subsidiaries are considered the accounting acquirer in the Transaction. Because the Subsidiaries owners as a group retained or received the larger portion of the voting rights in the combined entity and the Subsidiaries senior management represents a majority of the senior management of the combined entity, the Subsidiaries are considered the acquirer for accounting purposes and will account for the transaction as a reverse acquisition. The Transaction will be accounted for as a recapitalization, since at the time of the Transaction, Caddystats was a company with no or nominal operations, assets and liabilities. Consequently, the assets and liabilities and the historical operations that will be reflected in future consolidated financial statements will be those of the Subsidiaries and will be recorded using a historical cost basis. The financial statements have been prepared as if the Subsidiaries had always been the reporting company and, on the Transaction date, changed their name and reorganized their capital stock.</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"><font style="display: inline; font: 10pt Times New Roman">On February 25, 2009, the board of directors approved a 5:1 Forward Split of the Company’s common stock. All information in this Form 10-Q has been adjusted to reflect the forward split as if it took place as of the earliest period reported.</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt Times New Roman">The Company adopted the accounting acquirer’s year end, December 31.</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"><font style="font: italic 10pt Times New Roman; display: inline">Our Business</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt Times New Roman">Roadships is an emerging company in the short-sea and ground freight industry sectors operating through its wholly owned subsidiaries in the United States and Australia.</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"><font style="display: inline; font: 10pt Times New Roman">In the United States, Roadships Acquisitions US, Inc. is our subsidiary designated to identify and act upon synergistic acquisition targets throughout North America.  Roadships America, Inc, was established to develop and accommodate organic growth within the North America markets.</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"><font style="display: inline; font: 10pt Times New Roman">Roadships is currently attempting to develop a High Speed (HS) Monohull ship design based on a vessel concept that was initially developed by Kvaerner Masa Yards - Technology (now STX Europe).  The HS vessel design was conceived in the early 1990's for short sea shipping transportation throughout Europe using a hull form derived from a high speed ROPAX ferry built in Helsinki, Finland. This hull form was extensively tested and improved over a period of 5 years to optimize the hull form that offers the least resistance and allows the ship to maintain speed up to SS5.</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"><font style="font: italic 10pt Times New Roman; display: inline">Ground Freight Mergers and Acquisitions</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"><font style="display: inline; font: 10pt Times New Roman">The gestation period for a HS Monohull vessel is eighteen (18) months, best case, from start to finish. To drive short term cash flow, the Company’s strategic intent calls for the acquisition, merger and assimilation of privately held regional freight companies ranging in value from Eight Million USD ($8,000,000) to Twenty Million USD ($20,000,000). Strategically, Management intends to identify and acquire two (2) target operations quarterly – with one of the two being an over-performer and the other an under-performer – synergistically merging the two so as to optimize future operations of both operating entities.</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: bold 10pt Times New Roman">Note 2 – Basis of Presentation and Summary of Significant Accounting Policies</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"><font style="font: italic 10pt Times New Roman; display: inline">Condensed Financial Statements</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt Times New Roman">In the opinion of management, the accompanying financial statements includes all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows for the period ending September 30, 2012.  Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses.  Interim results are not necessarily indicative of results for a full year.  The information included in this Form 10-Q should be read in conjunction with information included in our audited financial statements for the period ended December 31, 2011, as reported in Form 10-K filed with the Securities and Exchange Commission on April 16, 2012.</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt Times New Roman">Management further acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control and preventing and detecting fraud.  The Company's system of internal accounting control is designed to assure, among other items, that 1) recorded transactions are valid; 2) valid transactions are recorded; and 3) transactions are recorded in the proper period in a timely manner to produce financial statements which present fairly the financial condition, results of operations and cash flows of the Company for the respective periods being presented.</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"><font style="font: italic 10pt Times New Roman; display: inline">Principles of Consolidation</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt Times New Roman">Our consolidated financial statements include the accounts of Roadships Holdings, Inc. and all majority-owned subsidiaries. All significant inter-company accounts and transactions are eliminated in consolidation.</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="font: italic 10pt Times New Roman; display: inline">Property, Plant and Equipment</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt Times New Roman">We record our property plant and equipment at historical cost.  The estimated useful lives of these assets range from three to seven years and are depreciated using the straight-line method over the asset’s useful life.</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="font: italic 10pt Times New Roman; display: inline">Foreign Currency Risk</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt Times New Roman">We currently have two subsidiaries operating in Australia.  At September 30, 2012 and December 31, 2011, we had $37 and $214 Australian Dollars, respectively ($52 and $218 US Dollars, respectively) deposited into Australian banks.</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="font: italic 10pt Times New Roman; display: inline">Use of Estimates</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt Times New Roman">The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"><font style="font: italic 10pt Times New Roman; display: inline">Net Loss Per Share</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt Times New Roman">Basic and diluted net loss per share calculations are calculated on the basis of the weighted average number of common shares outstanding during the year. The per share amounts include the dilutive effect of common stock equivalents in years with net income. Basic and diluted loss per share is the same for the nine months ended September 30, 2012 as the effect of our potential common stock equivalents would be anti-dilutive.</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"><font style="font: italic 10pt Times New Roman; display: inline">Recent Accounting Pronouncements</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt Times New Roman">In October 2012, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2012-04, “Technical Corrections and Improvements” in Accounting Standards Update No. 2012-04. The amendments in this update cover a wide range of Topics in the Accounting Standards Codification. These amendments include technical corrections and improvements to the Accounting Standards Codification and conforming amendments related to fair value measurements. The amendments in this update will be effective for fiscal periods beginning after December 15, 2012. The adoption of ASU 2012-04 is not expected to have a material impact on our financial position or results of operations.</font></div>
<div style="text-indent: 0pt; display: block"><br />
</div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt Times New Roman">In August 2012, the FASB issued ASU 2012-03, “Technical Amendments and Corrections to SEC Sections: Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin (SAB) No. 114, Technical Amendments Pursuant to SEC Release No. 33-9250, and Corrections Related to FASB Accounting Standards Update 2010-22 (SEC Update)” in Accounting Standards Update No. 2012-03. This update amends various SEC paragraphs pursuant to the issuance of SAB No. 114. The adoption of ASU 2012-03 is not expected to have a material impact on our financial position or results of operations.</font></div>
<div style="text-indent: 0pt; display: block"><br />
</div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt Times New Roman">In July 2012, the FASB issued ASU 2012-02, “Intangibles – Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment” in Accounting Standards Update No. 2012-02. This update amends ASU 2011-08, Intangibles – Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment and permits an entity first to assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired as a basis for determining whether it is necessary to perform the quantitative impairment test in accordance with Subtopic 350-30, Intangibles - Goodwill and Other - General Intangibles Other than Goodwill. The amendments are effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted, including for annual and interim impairment tests performed as of a date before July 27, 2012, if a public entity’s financial statements for the most recent annual or interim period have not yet been issued or, for nonpublic entities, have not yet been made available for issuance. The adoption of ASU 2012-02 is not expected to have a material impact on our financial position or results of operations.</font></div>
<div style="text-indent: 0pt; display: block"><br />
</div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt Times New Roman">In December 2011, the FASB issued ASU 2011-12, “Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items out of Accumulated Other Comprehensive Income” in Accounting Standards Update No. 2011-05. This update defers the requirement to present items that are reclassified from accumulated other comprehensive income to net income in both the statement of income where net income is presented and the statement where other comprehensive income is presented. The adoption of ASU 2011-12 is not expected to have a material impact on our financial position or results of operations.</font></div>
<div style="text-indent: 0pt; display: block"><br />
</div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt Times New Roman">In December 2011, the FASB issued ASU No. 2011-11 “Balance Sheet: Disclosures about Offsetting Assets and Liabilities” (“ASU 2011-11”). This Update requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. The objective of this disclosure is to facilitate comparison between those entities that prepare their financial statements on the basis of U.S. GAAP and those entities that prepare their financial statements on the basis of IFRS. The amended guidance is effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. The Company is currently evaluating the impact, if any, that the adoption of this pronouncement may have on its results of operations or financial position.</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"><font style="font: italic 10pt Times New Roman; display: inline">Principles of Consolidation</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt Times New Roman">Our consolidated financial statements include the accounts of Roadships Holdings, Inc. and all majority-owned subsidiaries. All significant inter-company accounts and transactions are eliminated in consolidation.</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="font: italic 10pt Times New Roman; display: inline">Property, Plant and Equipment</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt Times New Roman">We record our property plant and equipment at historical cost.  The estimated useful lives of these assets range from three to seven years and are depreciated using the straight-line method over the asset’s useful life.</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="font: italic 10pt Times New Roman; display: inline">Foreign Currency Risk</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt Times New Roman">We currently have two subsidiaries operating in Australia.  At September 30, 2012 and December 31, 2011, we had $37 and $214 Australian Dollars, respectively ($52 and $218 US Dollars, respectively) deposited into Australian banks.</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="font: italic 10pt Times New Roman; display: inline">Use of Estimates</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt Times New Roman">The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"><font style="font: italic 10pt Times New Roman; display: inline">Net Loss Per Share</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt Times New Roman">Basic and diluted net loss per share calculations are calculated on the basis of the weighted average number of common shares outstanding during the year. The per share amounts include the dilutive effect of common stock equivalents in years with net income. Basic and diluted loss per share is the same for the nine months ended September 30, 2012 as the effect of our potential common stock equivalents would be anti-dilutive.</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"><font style="font: italic 10pt Times New Roman; display: inline">Recent Accounting Pronouncements</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt Times New Roman">In October 2012, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2012-04, “Technical Corrections and Improvements” in Accounting Standards Update No. 2012-04. The amendments in this update cover a wide range of Topics in the Accounting Standards Codification. These amendments include technical corrections and improvements to the Accounting Standards Codification and conforming amendments related to fair value measurements. The amendments in this update will be effective for fiscal periods beginning after December 15, 2012. The adoption of ASU 2012-04 is not expected to have a material impact on our financial position or results of operations.</font></div>
<div style="text-indent: 0pt; display: block"><br />
</div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt Times New Roman">In August 2012, the FASB issued ASU 2012-03, “Technical Amendments and Corrections to SEC Sections: Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin (SAB) No. 114, Technical Amendments Pursuant to SEC Release No. 33-9250, and Corrections Related to FASB Accounting Standards Update 2010-22 (SEC Update)” in Accounting Standards Update No. 2012-03. This update amends various SEC paragraphs pursuant to the issuance of SAB No. 114. The adoption of ASU 2012-03 is not expected to have a material impact on our financial position or results of operations.</font></div>
<div style="text-indent: 0pt; display: block"><br />
</div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt Times New Roman">In July 2012, the FASB issued ASU 2012-02, “Intangibles – Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment” in Accounting Standards Update No. 2012-02. This update amends ASU 2011-08, Intangibles – Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment and permits an entity first to assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired as a basis for determining whether it is necessary to perform the quantitative impairment test in accordance with Subtopic 350-30, Intangibles - Goodwill and Other - General Intangibles Other than Goodwill. The amendments are effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted, including for annual and interim impairment tests performed as of a date before July 27, 2012, if a public entity’s financial statements for the most recent annual or interim period have not yet been issued or, for nonpublic entities, have not yet been made available for issuance. The adoption of ASU 2012-02 is not expected to have a material impact on our financial position or results of operations.</font></div>
<div style="text-indent: 0pt; display: block"><br />
</div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt Times New Roman">In December 2011, the FASB issued ASU 2011-12, “Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items out of Accumulated Other Comprehensive Income” in Accounting Standards Update No. 2011-05. This update defers the requirement to present items that are reclassified from accumulated other comprehensive income to net income in both the statement of income where net income is presented and the statement where other comprehensive income is presented. The adoption of ASU 2011-12 is not expected to have a material impact on our financial position or results of operations.</font></div>
<div style="text-indent: 0pt; display: block"><br />
</div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt Times New Roman">In December 2011, the FASB issued ASU No. 2011-11 “Balance Sheet: Disclosures about Offsetting Assets and Liabilities” (“ASU 2011-11”). This Update requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. The objective of this disclosure is to facilitate comparison between those entities that prepare their financial statements on the basis of U.S. GAAP and those entities that prepare their financial statements on the basis of IFRS. The amended guidance is effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. The Company is currently evaluating the impact, if any, that the adoption of this pronouncement may have on its results of operations or financial position.</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: bold 10pt Times New Roman">Note 3 – Going Concern</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt Times New Roman">We have not begun our core operations in the short-sea and ground freight industries and have not yet acquired the assets to enter these markets and we will require additional capital to do so.  There is no guarantee that we will acquire the capital to procure the assets to enter these markets or, upon doing so, that we will generate positive cash flows from operations.  Roadships Holdings’ financial statements have been prepared on a development stage company basis.  Substantial doubt exists as to Roadships Holdings’ ability to continue as a going concern. No adjustment has been made to these financial statements for the outcome of this uncertainty.</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: bold 10pt Times New Roman">Note 4 – Related Party Transactions</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt Times New Roman">For the nine months ended September 30, 2012, a beneficial shareholder loaned the Company $95,185, we made principal payments on those loans of $14,072 and interest payments of $1,916.  According to our agreement with this shareholder, we accrue interest on all unpaid amounts at 8%.  Principal and interest are callable at any time.  If principal and interest are called and not repaid, the loan is considered in default after which interest is accrued at 10%.</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt Times New Roman">During the nine months ended September 30, 2012, we accrued $2,841 of interest and paid $1,916 in interest payments.</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt Times New Roman">We granted 10 million options to purchase our common stock to each of our Chief Executive and Chief Financial Officers (20 million total) of which 5 million each vest immediately (10 million total), See Note 5 for a discussion of these options.</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt Times New Roman">As of the date of this report, no principal or interest has been called by the maker of the note.</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt Times New Roman"><font style="display: inline; font-weight: bold">Note 5 – Capital</font></font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt Times New Roman">At December 31, 2011, we had 187,633,430 common shares issued and outstanding from a total of 1 billion authorized.</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt Times New Roman">We had no capital stock transactions for the nine months ended September 30, 2012.</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt Times New Roman">On July 2, 2012, we granted 10 million options to purchase our common stock to each of our Chief Executive and Chief Financial Officers (20 million total) of which 5 million each vest immediately (10 million total).  The options were valued using the Black-Scholes option pricing model using as inputs:</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div>
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<tr style="vertical-align: top">
<td style="width: 18pt">
<div><font style="display: inline; font: 10pt Times New Roman">  </font></div>
</td>
<td style="width: 18pt">
<div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman"><font style="display: inline; font-family: Symbol, serif">·</font></font></div>
</td>
<td>
<div style="text-align: left"><font style="display: inline; font: 10pt Times New Roman">closing price on measurement date: $0.006;</font></div>
</td>
</tr></table>
</div>
<div>
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<td style="width: 18pt">
<div><font style="display: inline; font: 10pt Times New Roman">  </font></div>
</td>
<td style="width: 18pt">
<div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman"><font style="display: inline; font-family: Symbol, serif">·</font></font></div>
</td>
<td>
<div style="text-align: left"><font style="display: inline; font: 10pt Times New Roman">expiry date: April 19, 2013 and July 2, 2013</font></div>
</td>
</tr></table>
</div>
<div>
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<td style="width: 18pt">
<div><font style="display: inline; font: 10pt Times New Roman">  </font></div>
</td>
<td style="width: 18pt">
<div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman"><font style="display: inline; font-family: Symbol, serif">·</font></font></div>
</td>
<td>
<div style="text-align: left"><font style="display: inline; font: 10pt Times New Roman">exercise price: $0.001;</font></div>
</td>
</tr></table>
</div>
<div>
<table align="center" border="0" cellpadding="0" cellspacing="0" style="font: 10pt times new roman; width: 100%; font-size: 10pt; font-family: times new roman">
<tr style="vertical-align: top">
<td style="width: 18pt">
<div><font style="display: inline; font: 10pt Times New Roman">  </font></div>
</td>
<td style="width: 18pt">
<div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman"><font style="display: inline; font-family: Symbol, serif">·</font></font></div>
</td>
<td>
<div style="text-align: left"><font style="display: inline; font: 10pt Times New Roman">volatility: 567.37%;</font></div>
</td>
</tr></table>
</div>
<div>
<table align="center" border="0" cellpadding="0" cellspacing="0" style="font: 10pt times new roman; width: 100%; font-size: 10pt; font-family: times new roman">
<tr style="vertical-align: top">
<td style="width: 18pt">
<div><font style="display: inline; font: 10pt Times New Roman">  </font></div>
</td>
<td style="width: 18pt">
<div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman"><font style="display: inline; font-family: Symbol, serif">·</font></font></div>
</td>
<td>
<div style="text-align: left"><font style="display: inline; font: 10pt Times New Roman">discount (risk-free) rate: 0.15%</font></div>
</td>
</tr></table>
</div>
<div style="text-indent: 0pt; display: block"><br />
</div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt Times New Roman">These options were expensed based on the greater of the amount vested or straight-line over the service term. The Company recorded $58,669 of options expense during the nine months ended September 30, 2012 as an increase in Additional Paid in Capital and General and Administrative Costs.</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt Times New Roman">In addition to the 10 million options vesting immediately, 10 million options vest in the future as follows:</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div>
<table align="center" border="0" cellpadding="0" cellspacing="0" style="font: 10pt times new roman; width: 100%; font-size: 10pt; font-family: times new roman">
<tr style="vertical-align: top">
<td style="width: 18pt">
<div><font style="display: inline; font: 10pt Times New Roman">  </font></div>
</td>
<td style="width: 18pt">
<div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman"><font style="display: inline; font-family: Symbol, serif">·</font></font></div>
</td>
<td>
<div style="text-align: left"><font style="display: inline; font: 10pt Times New Roman">5 million options to our Chief Financial Officer vest on April 19, 2013, provided that he remains continuously employed as a key employee of the Company or a related corporation from the date hereof through the applicable vesting date.  These 5 million options expire April 19, 2014.</font></div>
</td>
</tr></table>
</div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div>
<table align="center" border="0" cellpadding="0" cellspacing="0" style="font: 10pt times new roman; width: 100%; font-size: 10pt; font-family: times new roman">
<tr style="vertical-align: top">
<td style="width: 18pt">
<div><font style="display: inline; font: 10pt Times New Roman">  </font></div>
</td>
<td style="width: 18pt">
<div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman"><font style="display: inline; font-family: Symbol, serif">·</font></font></div>
</td>
<td>
<div style="text-align: left"><font style="display: inline; font: 10pt Times New Roman">5 million options to our Chief Executive Officer vest on July 2, 2013, provided that he remains continuously employed as a key employee of the Company or a related corporation from the date hereof through the applicable vesting date.  These options expire July 2, 2014.</font></div>
</td>
</tr></table>
</div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: bold 10pt Times New Roman">Note 6 – Property, Plant and Equipment</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt Times New Roman">Property, Plant and Equipment consists principally of office furniture and equipment and vehicles.  Balances at September 30, 2012 and December 31, 2011 are as follows:</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-align: center">
<table cellpadding="0" cellspacing="0" style="width: 50%; font: 10pt times new roman; font-size: 10pt; font-family: times new roman">
<tr>
<td style="vertical-align: bottom; width: 50%; padding-bottom: 2px"><font style="display: inline; font: 10pt times new roman">  </font></td>
<td style="vertical-align: bottom; width: 1%; padding-bottom: 2px"><font style="display: inline; font: bold 10pt times new roman"> </font></td>
<td colspan="2" style="vertical-align: bottom; width: 10%; border-bottom: black 2px solid">
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: center"><font style="display: inline; font: bold 10pt times new roman">09/30/12 (Unaudited)</font></div>
</td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left; padding-bottom: 2px"><font style="display: inline; font: bold 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; padding-bottom: 2px"><font style="display: inline; font: bold 10pt times new roman"> </font></td>
<td colspan="2" style="vertical-align: bottom; width: 10%; border-bottom: black 2px solid">
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: center"><font style="display: inline; font: bold 10pt times new roman">12/31/11</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: center"><font style="display: inline; font: bold 10pt times new roman">(Audited)</font></div>
</td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left; padding-bottom: 2px"><font style="display: inline; font: bold 10pt times new roman"> </font></td>
</tr><tr>
<td style="vertical-align: bottom; width: 50%"><font style="display: inline; font: 10pt times new roman">  </font></td>
<td style="vertical-align: bottom; width: 1%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td colspan="2" style="vertical-align: bottom; width: 10%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td colspan="2" style="vertical-align: bottom; width: 10%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
</tr><tr style="background-color: #cceeff">
<td style="text-align: left; vertical-align: bottom; width: 50%">
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman">Office equipment</font></div>
</td>
<td style="text-align: right; vertical-align: bottom; width: 1%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="display: inline; font: 10pt times new roman">87,836</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="text-align: right; vertical-align: bottom; width: 1%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="display: inline; font: 10pt times new roman">87,836</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
</tr><tr style="background-color: white">
<td style="text-align: left; vertical-align: bottom; width: 50%">
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman">Equipment</font></div>
</td>
<td style="text-align: right; vertical-align: bottom; width: 1%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="display: inline; font: 10pt times new roman">23,362</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="text-align: right; vertical-align: bottom; width: 1%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="display: inline; font: 10pt times new roman">23,362</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
</tr><tr style="background-color: #cceeff">
<td style="text-align: left; vertical-align: bottom; width: 50%; padding-bottom: 2px">
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman">Vehicles</font></div>
</td>
<td style="text-align: right; vertical-align: bottom; width: 1%; padding-bottom: 2px"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; border-bottom: black 2px solid; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 9%; border-bottom: black 2px solid; text-align: right"><font style="display: inline; font: 10pt times new roman">11,912</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left; padding-bottom: 2px"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="text-align: right; vertical-align: bottom; width: 1%; padding-bottom: 2px"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; border-bottom: black 2px solid; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 9%; border-bottom: black 2px solid; text-align: right"><font style="display: inline; font: 10pt times new roman">11,912</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left; padding-bottom: 2px"><font style="display: inline; font: 10pt times new roman"> </font></td>
</tr><tr style="background-color: white">
<td style="text-align: left; vertical-align: bottom; width: 50%">
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman">Total fixed assets at cost</font></div>
</td>
<td style="text-align: right; vertical-align: bottom; width: 1%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="display: inline; font: 10pt times new roman">123,110</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="text-align: right; vertical-align: bottom; width: 1%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="display: inline; font: 10pt times new roman">123,110</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
</tr><tr style="background-color: #cceeff">
<td style="text-align: left; vertical-align: bottom; width: 50%; padding-bottom: 2px">
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman">Less: accumulated depreciation</font></div>
</td>
<td style="text-align: right; vertical-align: bottom; width: 1%; padding-bottom: 2px"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; border-bottom: black 2px solid; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 9%; border-bottom: black 2px solid; text-align: right"><font style="display: inline; font: 10pt times new roman">(111,073</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left; padding-bottom: 2px"><font style="display: inline; font: 10pt times new roman">)</font></td>
<td style="text-align: right; vertical-align: bottom; width: 1%; padding-bottom: 2px"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; border-bottom: black 2px solid; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 9%; border-bottom: black 2px solid; text-align: right"><font style="display: inline; font: 10pt times new roman">(90,725</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left; padding-bottom: 2px"><font style="display: inline; font: 10pt times new roman">)</font></td>
</tr><tr style="background-color: white">
<td style="text-align: left; vertical-align: bottom; width: 50%; padding-bottom: 4px">
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman">Net fixed assets</font></div>
</td>
<td style="text-align: right; vertical-align: bottom; width: 1%; padding-bottom: 4px"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; border-bottom: black 4px double; text-align: left"><font style="display: inline; font: 10pt times new roman">$</font></td>
<td style="vertical-align: bottom; width: 9%; border-bottom: black 4px double; text-align: right"><font style="display: inline; font: 10pt times new roman">12,037</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left; padding-bottom: 4px"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="text-align: right; vertical-align: bottom; width: 1%; padding-bottom: 4px"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; border-bottom: black 4px double; text-align: left"><font style="display: inline; font: 10pt times new roman">$</font></td>
<td style="vertical-align: bottom; width: 9%; border-bottom: black 4px double; text-align: right"><font style="display: inline; font: 10pt times new roman">32,385</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left; padding-bottom: 4px"><font style="display: inline; font: 10pt times new roman"> </font></td>
</tr></table>
</div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: bold 10pt Times New Roman">Note 7 – Subsequent Events</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt Times New Roman">We have evaluated subsequent events through the date of this report.  No subsequent events have been noted.</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt Times New Roman">Property, Plant and Equipment consists principally of office furniture and equipment and vehicles.  Balances at September 30, 2012 and December 31, 2011 are as follows:</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div>
<div style="text-align: center">
<table cellpadding="0" cellspacing="0" style="width: 50%; font: 10pt times new roman; font-size: 10pt; font-family: times new roman">
<tr>
<td style="vertical-align: bottom; width: 50%; padding-bottom: 2px"><font style="display: inline; font: 10pt times new roman">  </font></td>
<td style="vertical-align: bottom; width: 1%; padding-bottom: 2px"><font style="display: inline; font: bold 10pt times new roman"> </font></td>
<td colspan="2" style="vertical-align: bottom; width: 10%; border-bottom: black 2px solid">
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: center"><font style="display: inline; font: bold 10pt times new roman">09/30/12 (Unaudited)</font></div>
</td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left; padding-bottom: 2px"><font style="display: inline; font: bold 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; padding-bottom: 2px"><font style="display: inline; font: bold 10pt times new roman"> </font></td>
<td colspan="2" style="vertical-align: bottom; width: 10%; border-bottom: black 2px solid">
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: center"><font style="display: inline; font: bold 10pt times new roman">12/31/11</font></div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: center"><font style="display: inline; font: bold 10pt times new roman">(Audited)</font></div>
</td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left; padding-bottom: 2px"><font style="display: inline; font: bold 10pt times new roman"> </font></td>
</tr><tr>
<td style="vertical-align: bottom; width: 50%"><font style="display: inline; font: 10pt times new roman">  </font></td>
<td style="vertical-align: bottom; width: 1%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td colspan="2" style="vertical-align: bottom; width: 10%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td colspan="2" style="vertical-align: bottom; width: 10%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
</tr><tr style="background-color: #cceeff">
<td style="text-align: left; vertical-align: bottom; width: 50%">
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman">Office equipment</font></div>
</td>
<td style="text-align: right; vertical-align: bottom; width: 1%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="display: inline; font: 10pt times new roman">87,836</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="text-align: right; vertical-align: bottom; width: 1%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="display: inline; font: 10pt times new roman">87,836</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
</tr><tr style="background-color: white">
<td style="text-align: left; vertical-align: bottom; width: 50%">
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman">Equipment</font></div>
</td>
<td style="text-align: right; vertical-align: bottom; width: 1%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="display: inline; font: 10pt times new roman">23,362</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="text-align: right; vertical-align: bottom; width: 1%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="display: inline; font: 10pt times new roman">23,362</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
</tr><tr style="background-color: #cceeff">
<td style="text-align: left; vertical-align: bottom; width: 50%; padding-bottom: 2px">
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman">Vehicles</font></div>
</td>
<td style="text-align: right; vertical-align: bottom; width: 1%; padding-bottom: 2px"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; border-bottom: black 2px solid; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 9%; border-bottom: black 2px solid; text-align: right"><font style="display: inline; font: 10pt times new roman">11,912</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left; padding-bottom: 2px"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="text-align: right; vertical-align: bottom; width: 1%; padding-bottom: 2px"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; border-bottom: black 2px solid; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 9%; border-bottom: black 2px solid; text-align: right"><font style="display: inline; font: 10pt times new roman">11,912</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left; padding-bottom: 2px"><font style="display: inline; font: 10pt times new roman"> </font></td>
</tr><tr style="background-color: white">
<td style="text-align: left; vertical-align: bottom; width: 50%">
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman">Total fixed assets at cost</font></div>
</td>
<td style="text-align: right; vertical-align: bottom; width: 1%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="display: inline; font: 10pt times new roman">123,110</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="text-align: right; vertical-align: bottom; width: 1%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="display: inline; font: 10pt times new roman">123,110</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
</tr><tr style="background-color: #cceeff">
<td style="text-align: left; vertical-align: bottom; width: 50%; padding-bottom: 2px">
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman">Less: accumulated depreciation</font></div>
</td>
<td style="text-align: right; vertical-align: bottom; width: 1%; padding-bottom: 2px"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; border-bottom: black 2px solid; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 9%; border-bottom: black 2px solid; text-align: right"><font style="display: inline; font: 10pt times new roman">(111,073</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left; padding-bottom: 2px"><font style="display: inline; font: 10pt times new roman">)</font></td>
<td style="text-align: right; vertical-align: bottom; width: 1%; padding-bottom: 2px"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; border-bottom: black 2px solid; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 9%; border-bottom: black 2px solid; text-align: right"><font style="display: inline; font: 10pt times new roman">(90,725</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left; padding-bottom: 2px"><font style="display: inline; font: 10pt times new roman">)</font></td>
</tr><tr style="background-color: white">
<td style="text-align: left; vertical-align: bottom; width: 50%; padding-bottom: 4px">
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman">Net fixed assets</font></div>
</td>
<td style="text-align: right; vertical-align: bottom; width: 1%; padding-bottom: 4px"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; border-bottom: black 4px double; text-align: left"><font style="display: inline; font: 10pt times new roman">$</font></td>
<td style="vertical-align: bottom; width: 9%; border-bottom: black 4px double; text-align: right"><font style="display: inline; font: 10pt times new roman">12,037</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left; padding-bottom: 4px"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="text-align: right; vertical-align: bottom; width: 1%; padding-bottom: 4px"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; border-bottom: black 4px double; text-align: left"><font style="display: inline; font: 10pt times new roman">$</font></td>
<td style="vertical-align: bottom; width: 9%; border-bottom: black 4px double; text-align: right"><font style="display: inline; font: 10pt times new roman">32,385</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left; padding-bottom: 4px"><font style="display: inline; font: 10pt times new roman"> </font></td></tr></table></div>
10000000
10000000
0.006
0.006
2013-04-19
2013-07-02
0.001
0.001
5.6737
5.6737
0.0015
0.0015