10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended April 30, 2012

OR

[  ]TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to ______________

Commission File Number 333-157618

AVALON HOLDING GROUP, INC.

(Exact name of registrant as specified in its charter)

Nevada	26-3608086
State or other jurisdiction of	(I.R.S. Employer
incorporation or organization	Identification No.)
6536 102nd Place NE, Kirland, WA 98033 USA
(Address of principal executive offices)
None
(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [  ]   No [X]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer [ ]	Accelerated filer [ ]
Non-accelerated filer [ ] (Do not check if a smaller reporting company)	Smaller reporting company [X]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [ X ] No [  ]

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS

DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes [  ] No [  ]

SEC 1296 (02-08) Potential persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number.

APPLICABLE ONLY TO CORPORATE ISSUERS:

Number of shares outstanding of the registrant’s class of common stock as of June 12, 2012, 121,320,000.

2

PART I

ITEM 1.     FINANCIAL STATEMENTS

AVALON HOLDING GROUP, INC

(A Development Stage Company)

FINANCIAL STATEMENTS

APRIL 30, 2012

	Page
BALANCE SHEET	F-1
STATEMENTS OF OPERATIONS	F-2
STATEMENTS OF CASH FLOWS	F-3
NOTES TO THE FINANCIAL STATEMENTS	F-4 to F-8

3

Avalon Holding Group, Inc.

(A Development Stage Company)

BALANCE SHEETS

	April 30, 2012 (unaudited)				January 31, 2012 (audited)
Current
Cash		$	-			$	-
Total Current Assets			-				-
Total Assets		$	-			$	-
Liabilities and Stockholders’ (Deficit)
Current Liabilities
Accounts payable		$	1,217			$	3,183
Advances			9,000				9,000
Advances from director			51,737				44,898
Total Liabilities		$	61,954				57,081
Stockholders’ (Deficit)
Common stock, $0.001 par value, 500,000,000 shares authorized; 121,320,000 shares issued and outstanding		$	121,320			$	121,320
Additional paid-in-capital			(92,820	)			(92,820	)
Deficit accumulated during the development stage			(90,454	)			(85,581	)
Total Stockholders’ (Deficit)		$	(61,954	)		$	(57,081	)
Total Liabilities and Stockholders’ (Deficit)		$	-			$	-

The accompanying notes are an integral part of these financial statements.

F-1

Avalon Holding Group, Inc.

(A Development Stage Company)

STATEMENTS OF OPERATIONS

 (Unaudited)

	Three Month Ended April 30, 2012			Three Months Ended April 30, 2011			From Inception on  July 28, 2008 to April 30, 2012
Revenue
Revenue	$	-		$	-		$	446
Total revenue	$	-			-		$	446
Expenses
General and administrative expenses		4,873			678			81,000
Depreciation		-			-			965
Total expenses		4,873			678			81,965
Loss before other items and taxes		(4,873	)		(678	)		(81,519)
Loss on disposal of equipment		-			-			(8,935	)
					-
Net Loss	$	(4,873	)	$	(678	)	$	(90,454	)
Loss per common share – basic and diluted	$Nil			$Nil
Weighted Average Number of common shares outstanding – basic and diluted		121,320,000			121,320,000

The accompanying notes are an integral part of these financial statements.

F-2

Avalon Holding Group, Inc.

(A Development Stage Company)

STATEMENTS OF CASH FLOWS

(Unaudited)

	Three Month Period Ended April 30, 2012		Three Month Period Ended April 30,2011			From Inception on July 28, 2008 to April 30, 2012
Operating Activities
Net loss	$	(4,873)	$	(678	)	$	(90,454)
Depreciation		-		-			965
Loss on disposal of equipment		-		-			8,935
Changes in current assets and liabilities:
Accounts payable		(1,966)		678			1,217
Net Cash used in operating activities		(6,839)		-			(79,337)
Investing Activities
Purchase of vending equipment		-		-			(9,900	)
Net cash used in investing activities		-		-			(9,900	)
Financing Activities
Advances payable (Note 7)		-		-			9,000
Advances from director (Note 8)		6,839		-			51,737
Issuance of common stock (Note 5)		-		-			28,500
Net cash provided by financing activities		6,839		-			89,237
Net increase (decrease) in cash and equivalents		-		-			-
Cash at beginning of the period		-		-			-
Cash at end of the period	$	-	$	-		$	-
Supplemental cash flow information:
Cash paid for:
Interest	$	-	$	-		$	-
Income taxes	$	-	$	-		$	-
Non-Cash Activities	$	-	$	-		$	-

The accompanying notes are an integral part of these financial statements.

F-3

AVALON HOLDING GROUP, INC.

(A Development Stage Company)

NOTES TO THE FINANCIAL STATEMENTS

April 30, 2012

(Unaudited)

1.  ORGANIZATION AND BUSINESS OPERATIONS

a) Organization

AVALON HOLDING GROUP, INC (“the Company”) was incorporated under the laws of the State of Nevada, U.S. on July 28, 2008.

b) Development Stage Activities

The Company is in the development stage as defined under ASC 915 and commenced operations in the entertainment and amusement industry by placing and operating amusement gaming machines in public venues with high traffic flow in Russia. For the period from inception on July 28, 2008 through April 30, 2012, the Company has generated $446 in revenues and has accumulated losses of $90,454.

Based upon our business plan, we are a development stage enterprise, and we present our financial statements in conformity with the accounting principles generally accepted in the United States of America.  As a development stage enterprise, we disclose the deficit accumulated during the development stage and the cumulative statements of operations and cash flows from our inception to the current balance sheet date.

2.  BASIS OF PRESENTATION – GOING CONCERN

Our accompanying interim financial statements have been prepared in conformity with GAAP, which contemplates our continuation as a going concern.  However, we have minimal business operations to date.  In addition, from inception on July 28, 2008 through April 30, 2012, we have incurred losses of $90,454, and have working capital deficit of $61,954.  These matters raise substantial doubt about our ability to continue as a going concern. There is no assurance that future capital raising plans will be successful in obtaining sufficient funds to assure our eventual profitability.  While management believes that actions planned and presently being taken to revise our operating and financial requirements provide the opportunity for us to continue as a going concern, there is no assurance the actions will be successful.  In addition, recent events in worldwide capital markets may make it more difficult for us to raise additional equity or debt capital.

Our financial statements do not include any adjustments that might result from these uncertainties.

3.      SIGNIFICANT ACCOUNTING POLICIES

This summary of significant accounting policies is presented to assist in understanding our financial statements.  Our financial statements and notes are representations of our management who is responsible for their integrity and objectivity.

F-4

AVALON HOLDING GROUP, INC.

(A Development Stage Company)

NOTES TO THE FINANCIAL STATEMENTS

April 30, 2012

(Unaudited)

3.  SIGNIFICANT ACCOUNTING POLICIES (cont’d)

  These accounting policies conform to generally accepted accounting principles in the United States of America (“GAAP”) and have been consistently applied in the preparation of the financial statements.  The financial statements are stated in United States of America dollars.

a) Income Taxes

We have adopted the ASCsubtopic 740-10.  ASC 740-10 requires the use of the asset and liability method of accounting of income taxes.  Under the asset and liability method of ASC 740-10, deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases.  Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.

We provide deferred taxes for the estimated future tax effects attributable to temporary differences and carry forwards when realization is more likely than not.

b) Property and Equipment

Property and equipment is stated at cost, and is depreciated over estimated useful lives using primarily the straight line method for financial reporting purposes.  Useful lives range from 3 to 5 years.  We evaluate property and equipment at least annually for impairment. Since inception, all of the equipment has been sold for a net loss of $8,935.   The Company has no property and equipment of value as of April 30, 2012.

c) Basic and Diluted Loss Per Share

In accordance with ASC subtopic 260-10, the basic loss per common share is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding.  Diluted loss per common share is computed similar to basic loss per common share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive.  At April 30, 2012, and January 31, 2012, we had no stock equivalents that were dilutive.

F-5

AVALON HOLDING GROUP, INC.

(A Development Stage Company)

NOTES TO THE FINANCIAL STATEMENTS

April 30, 2012

(Unaudited)

3.  SIGNIFICANT ACCOUNTING POLICIES (cont’d)

d) Fair Value of Financial Instruments

The carrying value of our financial instruments, consisting of accounts payable, approximates their fair value due to the short-term maturity of such instruments.  Unless otherwise noted, it is management’s opinion that we are not

exposed to significant interest, currency or credit risks arising from these financial statements.

e) Revenue Recognition

It is our policy that revenues will be recognized in accordance with ASC subtopic 605-10.  Under ASC 605-10, product revenues (or service revenues) are recognized when persuasive evidence of an arrangement exists, delivery has occurred (or service has been performed), the sales price is fixed and determinable and collectability is reasonably assured.

f) Use of Estimates

The preparation of financial statements in conformity with GAAP 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 amount of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

g) Cash and Cash Equivalents

Cash is comprised of cash on hand and demand deposits. Cash equivalents include short-term highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value.

h) Interim Financial Statements

The interim financial statements presented herein have been prepared pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations. The interim financial statements should be read in conjunction with the company’s annual report. In the opinion of management, all adjustments which are necessary to provide a fair presentation of financial position as April 30, 2012 and related operating results and cash flows for the interim period presented have been made. All adjustments are of a normal recurring nature. The results of operations, for the period presented

F-6

AVALON HOLDING GROUP, INC.

(A Development Stage Company)

NOTES TO THE FINANCIAL STATEMENTS

April 30, 2012

(Unaudited)

3.  SIGNIFICANT ACCOUNTING POLICIES (cont’d)

are not necessarily indicative of the results to be expected for the year ended January 31, 2013.

4.  RECENT ACCOUNTING PRONOUNCEMENTS

The Company does not expect the adoption of any recent accounting pronouncements to have a material impact on its financial statements.

5.  COMMON STOCK

The authorized capital of the Company is 500,000,000 common shares with a par value of $ 0.001 per share.

On November 3, 2008, the Company issued 72,000,000 shares of common stock at a price of $0.00004 per share for total cash proceeds of $3,000.

In November 20, 2008, the Company issued 28,800,000 shares of common stock at a price of $0.0002 per share for total cash proceeds of $6,000.

In January 2009, the Company issued 18,600,000 shares of common stock at a price of $0.00083 per share for total cash proceeds of $15,500.

In January 2009, the Company also issued 1,920,000 shares of common stock at a price of $0.002 per share for total cash proceeds of $4,000.

On September 29, 2010, a forward split 24:1 was approved and enacted.

6.   INCOME TAXES

As of April 30, 2012, the Company had net operating loss carry forwards of approximately $90,454 that may be available to reduce future years’ taxable income through 2033. The approximate deferred tax asset of 31,700 has been fully offset by a valuation allowance, as its realization is determined not likely to occur. The net operating loss carryforwards will begin to expire in 2030.

7.   ADVANCES

Advances from a non-related third party as of April 30, 2012, totaled of $9,000 (January 31, 2012 - $9,000).  The amounts due are non-interest bearing, unsecured and are due upon demand.

F-7

AVALON HOLDING GROUP, INC.

(A Development Stage Company)

NOTES TO THE FINANCIAL STATEMENTS

April 30, 2012

(Unaudited)

8.  RELATED PARTY TRANSACTIONS

The Company entered into the following transactions with a related party:

Advances from a director as of April 30, 2012 totaled $51,737 (January 31, 2012 - $44,898). The amounts due are non-interest bearing, unsecured and are due upon demand. The amounts and dates of the advances are as follows:

Date	Amount
October 28, 2009	$	4,068
January 31, 2010		2,782
April 30, 2010		4,159
July 31, 2010		400
November 18, 2010		1,526
July 31, 2011		19,679
October 31, 2011		8,528
January 31, 2012		3,756
April 30, 2012		6,839
Total advances payable to a director	$	51,737

F-8

ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

GENERAL  

During our first year of operations, we intended to commence operations in the entertainment and amusement industry. We purchased coin operated amusement machines for the purpose of placing and operating them in public venues with high traffic flow in Russia. We were initially focused on four amusement games, "Arm Wrestling Game”, "Hammer Game”, "Kicking Game” and “Punching Game” and place them in places such as nightclubs, bars, pubs, cinemas and amusement complexes. Strength testing amusement games have been around for many years, and prior management believed that if placed in high traffic location can be high revenue producers.

Since our inception, we have purchased six such machines from our supplier, “Punchline Europe”. Our business strategy was to continue acquiring and placing additional amusement machines in as many places in different cities of Russia as possible.

Due to the high cost of maintaining the operations of the company in Russia, and our inability to generate significant revenues, we disposed of our vending machine equipment and recorded a loss on disposal of equipment in our statement of operations during the period ended October 31, 2009. We are looking for new business ventures to be engaged in. Currently, we do not have any operations or assets.

RESULTS OF OPERATION

Our financial statements have been prepared assuming that we will continue as a going concern and, accordingly, do not include adjustments relating to the recoverability and realization of assets and classification of liabilities that might be necessary should we be unable to continue in operation.

We expect we will require additional capital to meet our long term operating requirements. We expect to raise additional capital through, among other things, the sale of equity or debt securities.

Comparison of the Three Month Periods ended April 30, 2012, and 2011.

Our net loss for the three month period ended April 30, 2012, was $4,873, compared to a loss of $678 during the same period from the prior fiscal year. During the three month period ended April 30, 2012, we did not generate any revenue and incurred general and administrative expenses of $4,873, compared to $678 for the same period in 2011. The increase in our general and administrative expenses for the three month period ended April 30, 2012, compared to the same period from the prior fiscal year was due to increased audit, legal and filing expenses.

The weighted average number of shares outstanding was 121,320,000 for the three month period ended April 30, 2012.

LIQUIDITY AND CAPITAL RESOURCES

As at April 30, 2012, and 2011, we had no assets.  As at April 30, 2012, our total liabilities were $61,954, which resulted in a working capital deficit of $61,954 compared to total liabilities of $57,081 and a working capital deficit of $57,081 as of January 31, 2012. The increase in our working capital deficit was due an increase in advances from director of $6,839 during the period, offset partially by a decrease in accounts payable of $1,966.

Stockholders’ deficit increased from $57,081 as of January 31, 2012, to $61,954 as of April 30, 2012.   

4

Three month periods ended April 30, 2012 and 2011

Cash Flows from Operating Activities

We have not generated positive cash flows from operating activities. For the three month period ended April 30, 2012, net cash flows used in operating activities was $6,839 (2011 - $nil) consisting primarily of a net loss of $4,873 (2011 - $678) and a decrease in accounts payable of $1,966 (increase 2011 - $678). Net cash flows used in operating activities was $79,337 for the period from inception July 28, 2008, to April 30, 2012.   

Cash Flows from Investing Activities

For the three month period ended April 30, 2012, or 2011, we did not generate net cash flows from investing activities. For the period from inception July 28, 2008, to April 30, 2012, net cash used in investing activities was $9,900 used to purchase vending equipment.

Cash Flows from Financing Activities

We have financed our operations primarily from either advances or the issuance of equity and debt instruments.  For the three month period ended April 30, 2012, cash flows provided by financing activities was $6,839 (2011 - $nil) which for the current period, were advances from a director.  For the period from inception July 28, 2008, to April 30, 2012, net cash provided by financing activities was $89,237.

PLAN OF OPERATION AND FUNDING

The following discussion of the plan of operation, financial condition, results of operations, cash flows and changes in financial position should be read in conjunction with our most recent financial statements and notes appearing in our Form 10-K for the year ended January 31, 2012.

Our survival is dependent upon the identification and successful completion of additional long-term or permanent equity financing, the support of creditors and shareholders, and, ultimately, the acquisition and/or implementation of profitable operations.  There can be no assurances that we will be successful, which would in turn significantly affect our ability to survive as a going concern. If not, we will be required to dissolve.  We will continue to seek means of financing in order to acquire an ongoing business or assets or to implement a new business strategy. 

We do not anticipate making any major purchases of capital assets, or conducting any research and development in the next twelve (12) months.  Other than our current sole executive officer, we have no employees at the present time.  We do not expect to hire any employees within the next twelve (12) months.

We currently do not have any cash. However, our current officers and directors have personally committed to provide up to an aggregate amount of $60,000 in funds to meet our operational needs. We believe that with this commitment we have sufficient cash resources to satisfy our needs through the end of July 2012. Our ability to satisfy cash requirements thereafter and the need for additional funding is dependent on our ability to acquire new business and generate revenue from such new business in sufficient quantity and on a profitable basis.  To the extent that we require additional funds, we may attempt to sell additional equity shares or issue debt.  Any sale of additional equity securities will result in dilution to our stockholders.  Should we require additional cash in the future, there can be no assurance that we will be successful in raising additional debt or equity financing on terms acceptable to us, if at all.

The recent and continuing downturn in the U.S. economy has had an effect on our ability to generate revenues and to attract long-term financing for our operations. The downturn in the U.S. economy has also made it more difficult to find investors that either have capital to invest or are willing to put capital at risk by investing in our company. We anticipate that both effects of the current economic recession will continue to hinder our abilities to become a profitable company and to grow our operations.

5

PURCHASE OF SIGNIFICANT EQUIPMENT

We do not intend to purchase any significant equipment during the next twelve months.

OFF-BALANCE SHEET ARRANGEMENTS

As of the date of this Quarterly Report, we do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.

GOING CONCERN

The independent auditors' report accompanying our January 31, 2012, financial statements contained an explanatory paragraph expressing substantial doubt about our ability to continue as a going concern. The financial statements have been prepared "assuming that we will continue as a going concern," which contemplates that we will realize our assets and satisfy our liabilities and commitments in the ordinary course of business.

ITEM 3.                QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable.

ITEM 4.                CONTROLS AND PROCEDURES

See Item 4T.

ITEM 4T.             CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

As of the end of the period covered by this report, we conducted an evaluation, under the supervision and with the participation of our chief executive officer and chief financial officer of our disclosure controls and procedures (as defined in Rule 13a-15(e) of the Securities Exchange Act of 1934 (the “Exchange Act”)).  Based upon this evaluation, our chief executive officer and chief financial officer concluded that our disclosure controls and procedures are effective to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms.

6

PART II – OTHER INFORMATION

ITEM 1.                LEGAL PROCEEDINGS

None.

ITEM 1A.             RISK FACTORS

As a smaller reporting company, we are not required to provide the information required by this Item.

ITEM 2.                      UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 3.                      DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4.                      SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None.

ITEM 5.                      OTHER INFORMATION

None.

ITEM  6.                      EXHIBITS

(a) Pursuant to Rule 601 of Regulation S-B, the following exhibits are included herein or incorporated by reference.

Exhibit

Number                 Description

31.1                 Section 302 Certification – Chief Executive Officer

32.1 Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 – Chief Executive Officer.

7

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on this June 11, 2012.

	AVALON HOLDING GROUP, INC.
Date: June 12, 2012	By:	/s/ Phillip Jennings
		Name: Phillip Jennings
		Title: President (Principal Executive Officer), Treasurer (Principal Financial and Principal Accounting Officer)

8

EX-31.1

EXHIBIT 31.1

RULE 13A-14(A)/15D-14(A) CERTIFICATION

I, Philip Jennings, certify that:

(1) I have reviewed this quarterly report of Avalon Holding Group, Inc. (the “Registrant”) for the quarter ending April 30, 2012.

(2) Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report.

(3) Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this annual report.

(4) The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in the Securities Exchange Act of 1934 (the “Exchange Act”), Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

(5) The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the small business issuer's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: June 12, 2012	By:	/s/ Phillip Jennings
		Name: Phillip Jennings
		Title: President, principal executive officer, Secretary, Treasurer, principal financial officer and principal accounting officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of AVALON HOLDING GROUP, INC. (the "Company") on Form 10-Q for the period ended April 30, 2012, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Phillip Jennings, President, principal executive officer, Secretary, Treasurer, principal financial officer and principal accounting officer of the Company, certify, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: June 12, 2012

 By:       /s/ Phillip Jennings                                           

 Name:  Phillip Jennings

 Title:    President, principal executive officer, Secretary, Treasurer, principal financial officer and principal accounting officer

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Recent Accounting Pronouncements

3 Months Ended

Apr. 30, 2012

Notes to Financial Statements

Recent Accounting Pronouncements

4.  RECENT ACCOUNTING PRONOUNCEMENTS

The Company does not expect the adoption of any recent accounting pronouncements to have a material impact on its financial statements.

XML

Significant Accounting Policies

3 Months Ended

Apr. 30, 2012

Notes to Financial Statements

Significant Accounting Policies

3.      SIGNIFICANT ACCOUNTING POLICIES

This summary of significant accounting policies is presented to assist in understanding our financial statements.  Our financial statements and notes are representations of our management who is responsible for their integrity and objectivity.

These accounting policies conform to generally accepted accounting principles in the United States of America (“GAAP”) and have been consistently applied in the preparation of the financial statements.  The financial statements are stated in United States of America dollars.

a) Income Taxes

We have adopted the ASC subtopic 740-10.  ASC 740-10 requires the use of the asset and liability method of accounting of income taxes.  Under the asset and liability method of ASC 740-10, deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases.  Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.

We provide deferred taxes for the estimated future tax effects attributable to temporary differences and carry forwards when realization is more likely than not.

b) Property and Equipment

Property and equipment is stated at cost, and is depreciated over estimated useful lives using primarily the straight line method for financial reporting purposes.  Useful lives range from 3 to 5 years.  We evaluate property and equipment at least annually for impairment. Since inception, all of the equipment has been sold for a net loss of $8,935.   The Company has no property and equipment of value as of April 30, 2012.

c) Basic and Diluted Loss Per Share

In accordance with ASC subtopic 260-10, the basic loss per common share is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding.  Diluted loss per common share is computed similar to basic loss per common share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive.  At April 30, 2012, and January 31, 2012, we had no stock equivalents that were dilutive.

d) Fair Value of Financial Instruments

The carrying value of our financial instruments, consisting of accounts payable, approximates their fair value due to the short-term maturity of such instruments.  Unless otherwise noted, it is management’s opinion that we are not exposed to significant interest, currency or credit risks arising from these financial statements.

e) Revenue Recognition

It is our policy that revenues will be recognized in accordance with ASC subtopic 605-10.  Under ASC 605-10, product revenues (or service revenues) are recognized when persuasive evidence of an arrangement exists, delivery has occurred (or service has been performed), the sales price is fixed and determinable and collectability is reasonably assured.

f) Use of Estimates

The preparation of financial statements in conformity with GAAP 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 amount of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

g) Cash and Cash Equivalents

Cash is comprised of cash on hand and demand deposits. Cash equivalents include short-term highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value.

h) Interim Financial Statements

The interim financial statements presented herein have been prepared pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations. The interim financial statements should be read in conjunction with the company’s annual report. In the opinion of management, all adjustments which are necessary to provide a fair presentation of financial position as April 30, 2012 and related operating results and cash flows for the interim period presented have been made. All adjustments are of a normal recurring nature. The results of operations, for the period presented are not necessarily indicative of the results to be expected for the year ended January 31, 2013.

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Balance Sheets (Unaudited) (USD $)	Apr. 30, 2012	Jan. 31, 2012
Current
Cash	$ 0	$ 0
Total Current Assets
Total Assets	0	0
Current Liabilities
Accounts payable	1,217	3,183
Advances	9,000	9,000
Advances from director	51,737	44,898
Total Liabilities	61,954	57,081
Stockholders (Deficit)
Common stock, $0.001 par value, 500,000,000 shares authorized; 121,320,000 shares issued and outstanding	121,320	121,320
Additional paid-in-capital	(92,820)	(92,820)
Deficit accumulated during the development stage	(90,454)	(85,581)
Total Stockholders (Deficit)	(61,954)	(57,081)
Total Liabilities and Stockholders (Deficit)	$ 0	$ 0

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Organization and Business Operations

3 Months Ended

Apr. 30, 2012

Notes to Financial Statements

Organization and Business Operations

1.  ORGANIZATION AND BUSINESS OPERATIONS

a) Organization

AVALON HOLDING GROUP, INC (“the Company”) was incorporated under the laws of the State of Nevada, U.S. on July 28, 2008.

b) Development Stage Activities

The Company is in the development stage as defined under ASC 915 and commenced operations in the entertainment and amusement industry by placing and operating amusement gaming machines in public venues with high traffic flow in Russia. For the period from inception on July 28, 2008 through April 30, 2012, the Company has generated $446 in revenues and has accumulated losses of $90,454.

Based upon our business plan, we are a development stage enterprise, and we present our financial statements in conformity with the accounting principles generally accepted in the United States of America.  As a development stage enterprise, we disclose the deficit accumulated during the development stage and the cumulative statements of operations and cash flows from our inception to the current balance sheet date.

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Basis of Presentation - Going Concern

3 Months Ended

Apr. 30, 2012

Notes to Financial Statements

Basis of Presentation - Going Concern

2.  BASIS OF PRESENTATION – GOING CONCERN

Our accompanying interim financial statements have been prepared in conformity with GAAP, which contemplates our continuation as a going concern.  However, we have minimal business operations to date.  In addition, from inception on July 28, 2008 through April 30, 2012, we have incurred losses of $90,454, and have working capital deficit of $61,954.  These matters raise substantial doubt about our ability to continue as a going concern. There is no assurance that future capital raising plans will be successful in obtaining sufficient funds to assure our eventual profitability.  While management believes that actions planned and presently being taken to revise our operating and financial requirements provide the opportunity for us to continue as a going concern, there is no assurance the actions will be successful.  In addition, recent events in worldwide capital markets may make it more difficult for us to raise additional equity or debt capital.

Our financial statements do not include any adjustments that might result from these uncertainties.

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Balance Sheets (Parenthetical) (USD $)	Apr. 30, 2012	Jan. 31, 2012
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	121,320,000	121,320,000

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Document and Entity Information	3 Months Ended
	Apr. 30, 2012	Jun. 12, 2012
Document And Entity Information
Entity Registrant Name	Avalon Holding Group, Inc.
Entity Central Index Key	0001453684
Document Type	10-Q
Document Period End Date	Apr. 30, 2012
Amendment Flag	false
Current Fiscal Year End Date	--01-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		121,320,000
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2012

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Statements of Operations (Unaudited) (USD $)	3 Months Ended		45 Months Ended
	Apr. 30, 2012	Apr. 30, 2011	Apr. 30, 2012
Revenue
Revenue	$ 0	$ 0	$ 446
Total revenue	0	0	446
Expenses
General and administrative expenses	4,873	678	81,000
Depreciation	0	0	965
Total expenses	4,873	678	81,965
Loss before other items and taxes	(4,873)	(678)	(81,519)
Loss on disposal of equipment	0	0	(8,935)
Net Loss	$ (4,873)	$ (678)	$ (90,454)
Loss per common share, basic and diluted	$ 0	$ 0
Weighted Average Number of common shares outstanding, basic and diluted	121,320,000	121,320,000

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Advances

3 Months Ended

Apr. 30, 2012

Notes to Financial Statements

Advances

7.   ADVANCES

Advances from a non-related third party as of April 30, 2012, totaled of $9,000 (January 31, 2012 - $9,000).  The amounts due are non-interest bearing, unsecured and are due upon demand.

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Income Taxes

3 Months Ended

Apr. 30, 2012

Notes to Financial Statements

Income Taxes

6.   INCOME TAXES

As of April 30, 2012, the Company had net operating loss carry forwards of approximately $90,454 that may be available to reduce future years’ taxable income through 2033. The approximate deferred tax asset of 31,700 has been fully offset by a valuation allowance, as its realization is determined not likely to occur. The net operating loss carryforwards will begin to expire in 2030.

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Related Party Transactions

3 Months Ended

Apr. 30, 2012

Notes to Financial Statements

Related Party Transactions

8. RELATED PARTY TRANSACTIONS

The Company entered into the following transactions with a related party:

Advances from a director as of April 30, 2012 totaled $51,737 (January 31, 2012 - $44,898). The amounts due are non-interest bearing, unsecured and are due upon demand. The amounts and dates of the advances are as follows:

Date	Amount
October 28, 2009	$	4,068
January 31, 2010		2,782
April 30, 2010		4,159
July 31, 2010		400
November 18, 2010		1,526
July 31, 2011		19,679
October 31, 2011		8,528
January 31, 2012		3,756
April 30, 2012		6,839
Total advances payable to a director	$	51,737

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Statements of Cash Flows (Unaudited) (USD $)	3 Months Ended		45 Months Ended
	Apr. 30, 2012	Apr. 30, 2011	Apr. 30, 2012
Operating Activities
Net loss	$ (4,873)	$ (678)	$ (90,454)
Depreciation	0	0	965
Loss on disposal of equipment	0	0	8,935
Changes in current assets and liabilities:
Accounts payable	(1,966)	678	1,217
Net Cash used in operating activities	(6,839)	0	(79,337)
Investing Activities
Purchase of vending equipment	0	0	(9,900)
Net cash used in investing activities	0	0	(9,900)
Financing Activities
Advances payable (Note 7)	0	0	9,000
Advances from director (Note 8)	6,839	0	51,737
Issuance of common stock (Note 5)	0	0	28,500
Net cash provided by financing activities	6,839	0	89,237
Net increase (decrease) in cash and equivalents	0	0	0
Cash at beginning of the period	0	0	0
Cash at end of the period	0	0	0
Supplemental cash flow information:
Cash Paid for: Interest	0	0	0
Cash Paid For: Income taxes	0	0	0
Total	$ 0	$ 0	$ 0

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Common Stock

3 Months Ended

Apr. 30, 2012

Notes to Financial Statements

Common Stock

5.  COMMON STOCK

The authorized capital of the Company is 500,000,000 common shares with a par value of $ 0.001 per share.

On November 3, 2008, the Company issued 72,000,000 shares of common stock at a price of $0.00004 per share for total cash proceeds of $3,000.

In November 20, 2008, the Company issued 28,800,000 shares of common stock at a price of $0.0002 per share for total cash proceeds of $6,000.

In January 2009, the Company issued 18,600,000 shares of common stock at a price of $0.00083 per share for total cash proceeds of $15,500.

In January 2009, the Company also issued 1,920,000 shares of common stock at a price of $0.002 per share for total cash proceeds of $4,000.

On September 29, 2010, a forward split 24:1 was approved and enacted.