10-Q
2012-03-31
false
Island Radio, Inc.
0001499785
--12-31
4300000
300000
Smaller Reporting Company
No
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<!--egx--><p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><b>NOTE 1 – Summary of Significant Accounting Policies</b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><u>Unaudited Interim Financial Information</u></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">The accompanying Balance Sheet as of March 31, 2012, Statements of Operations for the three months ended March 31, 2012 and March 31, 2011, and cumulative from June 28, 2010 (Inception) to March 31, 2012, Statement of Stockholder’s (Deficit) for the cumulative period from June 28, 2010 (Inception) to March 31, 2012, and the Statements of Cash Flows for the three months ended March 31, 2012 and March 31, 2011, and cumulative from June 28, 2010 (Inception) to March 31, 2012, are unaudited. These unaudited interim financial statements have been prepared in accordance with accounting principles accepted in the United States of America (“GAAP”). In the opinion of the company’s management, the unaudited interim financial statements have been prepared on the same basis as the audited financial statements and included all adjustments necessary for the fair presentation of the Company’s statement of financial position at March 31, 2012 and its results of operations and its cash flows for the period ended March 31, 2012 and cumulative from June 28, 2010 (inception) to March 31, 2012. The results for the period ended March 31, 2012 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2012.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><u>Organization</u></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">Island Radio, Inc. (“Company” or “Island Radio”) is a development stage company with minimal operations. Island Radio was incorporated under the laws of the State of Nevada on June 28, 2010. The Company’s business plan calls for the development of a 24-hour radio program that will be transmitted over commercial FM radio spectrum from radio broadcast towers strategically located throughout the Caribbean region and simulcast worldwide over the Internet. Island Radio’s broadcasting studio will be based in St. Maarten, Dutch West Indies.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><u>Basis of Presentation</u></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">The accompanying financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles (US GAAP) for financial information and in accordance with the Securities and Exchange Commission’s (SEC) Regulation S-X. They reflect all adjustments which are, in the opinion of the Company’s management, necessary for a fair presentation of the financial position and operating results as of and for the three months ended March 31, 2012 and March 31, 2011, and cumulative from June 28, 2010 (inception) to March 31, 2012.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><u>Use of Estimates</u></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">The accompanying financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America. Because a precise determination of many assets and liabilities is dependent upon future events, the preparation of financial statements for a period necessarily involves the use of estimates which have been made using careful judgment. Actual results may vary from these estimates.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><u>Cash and Cash Equivalents</u></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">For purposes of the statement of cash flows, the Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents. As of March 31, 2012, the Company had no cash or other assets.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><u>Investments</u></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">The Company accounts for its marketable securities, which are classified as trading securities, in accordance with generally accepted accounting principles for certain investments in debt and equity securities, which requires that trading securities be carried at fair value. Unrealized gains and losses due to changes in fair value as well as realized gains and losses resulting from sales of securities are reported as Other Income/Expenses in the statement of operations. Fair value of the securities is based upon quoted market prices in active markets or estimated fair value when quoted market prices are not available. The cost basis for realized gains and losses is determined on a specific identification basis. As of March 31, 2012, the Company had no investments.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><u>Fair Value of Financial Instruments</u></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">ASC 820, “Fair Value Measurements” and ASC 825, Financial Instruments, requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. It establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. It prioritizes the inputs into three levels that may be used to measure fair value:</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in; TEXT-AUTOSPACE:"><i>Level 1</i></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in; TEXT-AUTOSPACE:">Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in; TEXT-AUTOSPACE:"><i>Level 2</i></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in; TEXT-AUTOSPACE:">Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.</p> <p style="MARGIN:0in 0in 0pt"><i> </i></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in; TEXT-AUTOSPACE:"><i>Level 3</i></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in; TEXT-AUTOSPACE:">Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">As of March 31, 2012 we believe that the recorded values of all of our financial instruments approximate their current fair values because of their nature and respective maturity dates or durations.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><u><font style="TEXT-DECORATION:none"> </font></u></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><u>Net Loss per Share Calculation</u></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">Basic net loss per common share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per shares is computed similar to basic loss per 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. During the three months ended March 31, 2012 and March 31, 2011, and cumulative from June 28, 2010 (inception) to March 31, 2012 the Company had no dilutive financial instruments issued or outstanding.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><u>Income Taxes</u></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">The Company accounts for income taxes pursuant to FASB ASC 740, Income Taxes. Under FASB ASC 740-10-25, deferred tax assets and liabilities are determined based on temporary differences between the bases of certain assets and liabilities for income tax and financial reporting purposes. The deferred tax assets and liabilities are classified according to the financial statement classification of the assets and liabilities generating the differences.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">The Company maintains a valuation allowance with respect to deferred tax assets. Island Radio establishes a valuation allowance based upon the potential likelihood of realizing the deferred tax asset and taking into consideration the Company’s financial position and results of operations for the current period. Future realization of the deferred tax benefit depends on the existence of sufficient taxable income within the carryforward period under the Federal tax laws.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">Changes in circumstances, such as the Company generating taxable income, could cause a change in judgment about its ability to realize the related deferred tax asset. Any change in the valuation allowance will be included in income in the year of the change in estimate.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p><br clear="all" style="PAGE-BREAK-BEFORE:always"></br> <p style="MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><u>Fiscal Year</u></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">The Company elected December 31st for its fiscal year end. </p>
<!--egx--><p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><b>NOTE 2 – Development Stage Activities and Going Concern</b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">The Company is in the development stage and has minimal operations, and as such has devoted most of its efforts since its inception to developing its business plan, issuing common stock, attempting to raise capital, establishing its accounting systems and other administrative functions. The Company’s business plan calls for the development of a 24-hour radio program that will be transmitted over commercial FM radio spectrum from radio broadcast towers strategically located throughout the Caribbean region and simulcast worldwide over the Internet with its broadcasting studio to be based in St. Maarten, Dutch West Indies. The Company intends to conduct additional capital formation activities through the issuance of its common stock and to achieve these long-term business growth strategies.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">While management of the Company believes that Island Radio will be successful in its planned operating activities under its business plan and capital formation activities, there can be no assurance that it will be able to successfully execute on either of these or that it will be able to generate adequate revenues to earn a profit or sustain its operations.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United State of America, which contemplate continuation of the Company as a going concern. The Company has not established a source of revenues sufficient to cover its operating costs, and as such, has incurred an operating loss since its inception. Further, as of March 31, 2012, the Company had a working capital deficiency of ($86,805). These and other factors raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying financial statements do not include any adjustments or classifications that may result from the possible inability of the Company to continue as a going concern.</p>
<!--egx--><p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><b>NOTE 3 – Share Exchange and Subsequent Sale of Blue Water Restaurant Group, Inc. Common Stock Holdings</b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">On March 29, 2011 we entered into a Share Exchange Agreement with Blue Water Restaurant Group, Inc. (“Blue Water”), a Nevada corporation planning a going public initiative and starting a chain of restaurants in St. Maarten, Dutch West Indies. Under the terms of the agreement we issued Blue Water 2,000,000 shares of our restricted common stock in exchange for 2,000,000 restricted shares of Blue Water common stock, $0.001 par value. These shares were valued at $20,000, or $0.01 a share.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p>
<!--egx--><p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><b>NOTE 4 – Notes Payable to Sole Officer and Director</b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">As of December 31, 2011 we had notes payable to our sole officer and director, Nina Edstrom, aggregating $12,145, which includes $10,750 she loaned the Company to repurchase and cancel 1,075,000 shares of its common stock. </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">Ms. Edstrom voluntarily forgave these outstanding debts on March 1, 2012 which was recorded in the financial statements as additional paid-in capital. Additionally, during the three months ended March 31, 2012 these debts had accrued $272 in imputed interest that was recorded in the financial statements as additional paid-in capital.</p>
<!--egx--><p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><b>NOTE 5 – Common Stock</b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">The total number of common shares authorized that may be issued by the Company is 25,000,000 shares with a par value of $0.001 per share.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">During the period June 28, 2010 (inception) to March, 2012 the Company issued an aggregate of 9,375,000 shares as follows:</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <ul type="disc" style="MARGIN-TOP:0in"> <li style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:; tab-stops:list .5in">4,000,000 shares to its directors as Founder’s Shares;</li></ul> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.25in; TEXT-AUTOSPACE:"> </p> <ul type="disc" style="MARGIN-TOP:0in"> <li style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:; tab-stops:list .5in">2,000,000 shares to a consultant for total consideration of $20,000, or $0.01 per share, based on the value of the services performed;</li></ul> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <ul type="disc" style="MARGIN-TOP:0in"> <li style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:; tab-stops:list .5in">1,375,000 shares in exchange for aggregate cash consideration of $13,750, or $0.01 per share;</li></ul> <p style="MARGIN:0in 0in 0pt 0.5in"> </p> <ul type="disc" style="MARGIN-TOP:0in"> <li style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:; tab-stops:list .5in">2,000,000 shares in exchange for 2,000,000 shares of restricted common stock in Blue Water Restaurant Group, Inc. (“Blue Water”), a Nevada corporation, presently undertaking a going public initiative. This investment was valued at $20,000, or $0.01 per share, based on the most recent private transaction price of Blue Water common stock, which was $0.01 per share. In addition, Blue Water registered 1,300,000 of our shares of its common stock for unrestricted resale in a SEC Registration Statement on Form S-1 which was declared “effective” on September 8, 2011. </li></ul> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">On September 19, 2011 the Company repurchased 1,075,000 shares of its common stock, which were subsequently cancelled. These shares were purchased for $10,750, or $0.01 a share. This purchase was financed by a non-interest bearing demand loan from our sole officer and director, Nina Edstrom. During the three months ended March 31, 2012 this note had accrued $272 in imputed interest that was recorded in the financial statements as additional paid-in capital.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">On October 13, 2011, two shareholders returned to the Company an aggregate of 4,000,000 shares of restricted common stock. These shares were subsequently cancelled.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">As of April 17, 2012, the Company had 4,300,000 shares of its common stock issued and outstanding.</p>
<!--egx--><p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><b>NOTE 6 – Preferred Stock</b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">The total number of preferred shares authorized that may be issued by the Company is 5,000,000 shares with a par value of $0.001 per share.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">As of April 17, 2012, the Company had no shares of its preferred stock issued and outstanding.</p>
<!--egx--><p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><b>NOTE 7 – Income Taxes</b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">The provision (benefit) for income taxes for the period from June 28, 2010 (inception) to March 31, 2012 was as follows, assuming a 35 percent effective tax rate:</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <div align="center"> <table width="993" style="MARGIN:auto auto auto 135.9pt; WIDTH:496.7pt; BORDER-COLLAPSE:collapse" cellpadding="0" cellspacing="0"> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="557" colspan="3" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:278.45pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p></td> <td width="45" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:22.7pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p></td> <td width="183" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:91.3pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="center"> </p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="center">For the three months ended</p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="center">March 31, 2012</p></td> <td width="26" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:12.85pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="center"> </p></td> <td width="183" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:91.4pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="center">For the period</p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="center">June 28, 2010</p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="center">(inception) to</p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="center">March 31, 2012</p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="557" colspan="3" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:278.45pt; PADDING-RIGHT:5.4pt; BACKGROUND:#c6d9f1; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><b>Current tax provision:</b></p></td> <td width="45" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:22.7pt; PADDING-RIGHT:5.4pt; BACKGROUND:#c6d9f1; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="center"> </p></td> <td width="183" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:91.3pt; PADDING-RIGHT:5.4pt; BACKGROUND:#c6d9f1; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p></td> <td width="26" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:12.85pt; PADDING-RIGHT:5.4pt; BACKGROUND:#c6d9f1; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p></td> <td width="183" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:91.4pt; PADDING-RIGHT:5.4pt; BACKGROUND:#c6d9f1; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="55" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:27.45pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p></td> <td width="502" colspan="2" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:251pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">Federal</p></td> <td width="45" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:22.7pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="center"> </p></td> <td width="183" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:91.3pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p></td> <td width="26" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:12.85pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p></td> <td width="183" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:91.4pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="116" colspan="2" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:58.1pt; PADDING-RIGHT:5.4pt; BACKGROUND:#c6d9f1; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p></td> <td width="441" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:220.35pt; PADDING-RIGHT:5.4pt; BACKGROUND:#c6d9f1; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">Taxable income</p></td> <td width="45" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:22.7pt; PADDING-RIGHT:5.4pt; BACKGROUND:#c6d9f1; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="center">$</p></td> <td width="183" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:91.3pt; PADDING-RIGHT:5.4pt; BACKGROUND:#c6d9f1; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="right">-</p></td> <td width="26" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:12.85pt; PADDING-RIGHT:5.4pt; BACKGROUND:#c6d9f1; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="right">$</p></td> <td width="183" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:91.4pt; PADDING-RIGHT:5.4pt; BACKGROUND:#c6d9f1; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="right"> </p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="116" colspan="2" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:58.1pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p></td> <td width="441" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:220.35pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p></td> <td width="45" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:22.7pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="center"> </p></td> <td width="183" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:91.3pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="right"> </p></td> <td width="26" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:12.85pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="right"> </p></td> <td width="183" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:91.4pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="right"> </p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="116" colspan="2" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:58.1pt; PADDING-RIGHT:5.4pt; BACKGROUND:#c6d9f1; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p></td> <td width="441" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:220.35pt; PADDING-RIGHT:5.4pt; BACKGROUND:#c6d9f1; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">Total current tax provision</p></td> <td width="45" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:22.7pt; PADDING-RIGHT:5.4pt; BACKGROUND:#c6d9f1; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="center">$</p></td> <td width="183" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:91.3pt; PADDING-RIGHT:5.4pt; BACKGROUND:#c6d9f1; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="right">-</p></td> <td width="26" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:12.85pt; PADDING-RIGHT:5.4pt; BACKGROUND:#c6d9f1; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="right">$</p></td> <td width="183" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:91.4pt; PADDING-RIGHT:5.4pt; BACKGROUND:#c6d9f1; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="right"> </p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="557" colspan="3" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:278.45pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p></td> <td width="45" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:22.7pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="center"> </p></td> <td width="183" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:91.3pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="right"> </p></td> <td width="26" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:12.85pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="right"> </p></td> <td width="183" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:91.4pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="right"> </p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="557" colspan="3" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:278.45pt; PADDING-RIGHT:5.4pt; BACKGROUND:#c6d9f1; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><b>Deferred tax provision:</b></p></td> <td width="45" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:22.7pt; PADDING-RIGHT:5.4pt; BACKGROUND:#c6d9f1; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="center"> </p></td> <td width="183" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:91.3pt; PADDING-RIGHT:5.4pt; BACKGROUND:#c6d9f1; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="right"> </p></td> <td width="26" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:12.85pt; PADDING-RIGHT:5.4pt; BACKGROUND:#c6d9f1; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="right"> </p></td> <td width="183" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:91.4pt; PADDING-RIGHT:5.4pt; BACKGROUND:#c6d9f1; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="right"> </p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="55" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:27.45pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p></td> <td width="502" colspan="2" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:251pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">Federal</p></td> <td width="45" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:22.7pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="center"> </p></td> <td width="183" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:91.3pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p></td> <td width="26" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:12.85pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p></td> <td width="183" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:91.4pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="116" colspan="2" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:58.1pt; PADDING-RIGHT:5.4pt; BACKGROUND:#c6d9f1; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p></td> <td width="441" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:220.35pt; PADDING-RIGHT:5.4pt; BACKGROUND:#c6d9f1; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">Loss carryforwards</p></td> <td width="45" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:22.7pt; PADDING-RIGHT:5.4pt; BACKGROUND:#c6d9f1; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="center">$</p></td> <td width="183" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:91.3pt; PADDING-RIGHT:5.4pt; BACKGROUND:#c6d9f1; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="right">6,224</p></td> <td width="26" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:12.85pt; PADDING-RIGHT:5.4pt; BACKGROUND:#c6d9f1; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="right">$</p></td> <td width="183" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:91.4pt; PADDING-RIGHT:5.4pt; BACKGROUND:#c6d9f1; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="right">23,186</p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="116" colspan="2" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:58.1pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p></td> <td width="441" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:220.35pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">Change in valuation allowance</p></td> <td width="45" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:22.7pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="center"> </p></td> <td width="183" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:91.3pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="right">(6,224)</p></td> <td width="26" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:12.85pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="right"> </p></td> <td width="183" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:91.4pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="right">(23,186)</p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="116" colspan="2" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:58.1pt; PADDING-RIGHT:5.4pt; BACKGROUND:#c6d9f1; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p></td> <td width="441" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:220.35pt; PADDING-RIGHT:5.4pt; BACKGROUND:#c6d9f1; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p></td> <td width="45" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:22.7pt; PADDING-RIGHT:5.4pt; BACKGROUND:#c6d9f1; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="center"> </p></td> <td width="183" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:91.3pt; PADDING-RIGHT:5.4pt; BACKGROUND:#c6d9f1; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="right"> </p></td> <td width="26" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:12.85pt; PADDING-RIGHT:5.4pt; BACKGROUND:#c6d9f1; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="right"> </p></td> <td width="183" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:91.4pt; PADDING-RIGHT:5.4pt; BACKGROUND:#c6d9f1; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="right"> </p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="116" colspan="2" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:58.1pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p></td> <td width="441" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:220.35pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">Total deferred tax provision</p></td> <td width="45" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:22.7pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="center">$</p></td> <td width="183" style="BORDER-BOTTOM:windowtext 1.5pt double; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:91.3pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="right">-</p></td> <td width="26" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:12.85pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="right">$</p></td> <td width="183" style="BORDER-BOTTOM:windowtext 1.5pt double; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:91.4pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="right">-</p></td></tr> <tr> <td width="55" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; BACKGROUND-COLOR:transparent; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0"></td> <td width="61" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; BACKGROUND-COLOR:transparent; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0"></td> <td width="438" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; BACKGROUND-COLOR:transparent; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0"></td> <td width="45" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; BACKGROUND-COLOR:transparent; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0"></td> <td width="182" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; BACKGROUND-COLOR:transparent; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0"></td> <td width="32" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; BACKGROUND-COLOR:transparent; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0"></td> <td width="182" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; BACKGROUND-COLOR:transparent; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0"></td></tr></table></div> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">As of March 31, 2012, the Company had approximately $66,246 in tax loss carryforwards that can be utilized in future periods to reduce taxable income through 2031.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">The Company provided a valuation allowance equal to the deferred income tax assets for the period from June 28, 2010 (inception) to March 31, 2012 because it is not presently known whether future taxable income will be sufficient to utilize the tax loss carryforwards.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">The Company has no uncertain tax positions.</p>
<!--egx--><p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><b>NOTE 8 – Related Party Transactions</b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">As of March 31, 2012, the Company operated out of office space that is being provided to us by our former president and chief executive officer, Eric Boyer, free of charge.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">There is no written agreement or other material terms or arrangements relating to this arrangement which could be terminated by Mr. Boyer at any time without notice.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">For the three months ended March 31, 2012 and cumulative from June 28, 2010 (inception) to March 31, 2012 the Company’s rent expense was zero. This is because of the short time period and the minimal level of operating activities that have transpired during this period of time.</p>
<!--egx--><p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><b>NOTE 9 – Recent Accounting Pronouncements</b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">In December 2010, the Financial Accounting Standards Board (“FASB”) issued ASU 2010-28, “Intangible –Goodwill and Other (Topic 350): When to perform Step 2 of the goodwill impairment test for reporting units with zero or negative carrying amounts.” This update requires an entity to perform all steps in the test for a reporting unit whose carrying value is zero or negative if it is more likely than not (more than 50%) that a goodwill impairment exists based on qualitative factors, resulting in the elimination of an entity’s ability to assert that such a reporting unit’s goodwill is not impaired and additional testing is not necessary despite the existence of qualitative factors that indicate otherwise. This ASU is effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. The adoption of this standard did not have a material impact on the Company’s financial statements.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">In December 2010, the FASB issued ASU 2010-29, “Business Combinations (Topic 805): Disclosure of supplementary pro forma information for business combinations.” This update changes the disclosure of pro forma information for business combinations. These changes clarify that if a public entity presents comparative financial statements, the entity should disclose revenue and earnings of the combined entity as though the business combination that occurred during the current year had occurred as of the beginning of the comparable prior annual reporting period only. Also, the existing supplemental pro forma disclosures were expanded to include a description of the nature and amount of material, nonrecurring pro forma adjustments directly attributable to the business combination included in the reported pro forma revenue and earnings. This ASU is effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. The adoption of this standard did not have a material impact on the Company’s financial statements.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">In April 2011, the FASB issued ASU 2011-02, “Receivables (Topic 310): A Creditor’s Determination of Whether a Restructuring is a Troubled Debt Restructuring”. This amendment explains which modifications constitute troubled debt restructurings (“TDR”). Under the new guidance, the definition of a troubled debt restructuring remains essentially unchanged, and for a loan modification to be considered a TDR, certain basic criteria must still be met. For public companies, the new guidance is effective for interim and annual periods beginning on or after June 15, 2011, and applies retrospectively to restructuring occurring on or after the beginning of the fiscal year of adoption. The adoption of this standard did not have a material impact on the Company’s financial statements.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">In May 2011, the FASB issued ASU 2011-04, “Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs”, which is effective for annual reporting periods beginning after December 15, 2011. This guidance amends certain accounting and disclosure requirements related to fair value measurements. Additional disclosure requirements in the update include: (1) for Level 3 fair value measurements, quantitative information about unobservable inputs used, a description of the valuation processes used by the entity, and a qualitative discussion about the sensitivity of the measurements to changes in the unobservable inputs; (2) for an entity’s use of a nonfinancial asset that is different from the asset’s highest and best use, the reason for the difference; (3) for financial instruments not measured at fair value but for which disclosure of fair value is required, the fair value hierarchy level in which the fair value measurements were determined; and (4) the disclosure of all transfers between Level 1 and Level 2 of the fair value hierarchy. The adoption of this standard did not have a material impact on the Company’s financial statements.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">In June 2011, the FASB issued ASU 2011-05, “Comprehensive Income (Topic 220): Presentation of Comprehensive Income”, which is effective for annual reporting periods beginning after December 15, 2011. This guidance eliminates the option to present the components of other comprehensive income as part of the statement of changes in stockholders’ equity. In addition, items of other comprehensive income that are reclassified to profit or loss are required to be presented separately on the face of the financial statements. This guidance is intended to increase the prominence of other comprehensive income in financial statements by requiring that such amounts be presented either in a single continuous statement of income and comprehensive income or separately in consecutive statements of income and comprehensive income. The adoption of this standard did not have a material impact on the Company’s financial statements.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">In September 2011, the FASB issued Accounting Standards Update (ASU) No. 2011-08, Intangibles – Goodwill and Other (Topic 350): Testing Goodwill for Impairment. The guidance in ASU 2011-08 is intended to reduce complexity and costs by allowing an entity the option to make a qualitative evaluation about the likelihood of goodwill impairment to determine whether it should calculate the fair value of a reporting unit. The amendments also improve previous guidance by expanding upon the examples of events and circumstances that an entity should consider between annual impairment tests in determining whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Also, the amendments improve the examples of events and circumstances that an entity having a reporting unit with a zero or negative carrying amount should consider in determining whether to measure an impairment loss, if any, under the second step of the goodwill impairment test. The amendments in this ASU are effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. The adoption of this standard did not have a material impact on the Company’s financial statements.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial statements.</p>
<!--egx--><p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><b>NOTE 10 – Subsequent Events</b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">There were no material subsequent events through the date these financial statements were filed with the Securities and Exchange Commission on Form 10-Q.</p>
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