-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, QhABTtxUlow5Bmtq5ESlTW2erVPPUxqcgvmnS/LhcLu8bDppjo7pKXdGFzoGm7vd Wy8krIMOjyakbm9N/4Ic8g== 0001144204-08-059774.txt : 20081028 0001144204-08-059774.hdr.sgml : 20081028 20081028170421 ACCESSION NUMBER: 0001144204-08-059774 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20080930 FILED AS OF DATE: 20081028 DATE AS OF CHANGE: 20081028 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Freedom 4, Inc. CENTRAL INDEX KEY: 0001368293 STANDARD INDUSTRIAL CLASSIFICATION: BLANK CHECKS [6770] IRS NUMBER: 000000000 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-52115 FILM NUMBER: 081145325 BUSINESS ADDRESS: STREET 1: THE GALLERIA, 2 BRIDGE AVENUE CITY: RED BANK STATE: NJ ZIP: 07701 BUSINESS PHONE: (732) 530-9007 MAIL ADDRESS: STREET 1: THE GALLERIA, 2 BRIDGE AVENUE CITY: RED BANK STATE: NJ ZIP: 07701 10-Q 1 v129919_10q.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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 September 30, 2008

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______ to ________

Commission File No. 000-52115

FREEDOM 4, INC.
(Name of small business issuer in its charter)
 
Delaware
 
20-5153464
(State or other jurisdiction of incorporation or
organization)
 
(I.R.S. Employer Identification No.)
 
 
 
The Galleria
2 Bridge Avenue
Red Bank, New Jersey
 
 
07701
(Address of principal executive offices)
 
(Zip Code)
 
2 Bridge Avenue
Red Bank, New Jersey 07701
(Address of principal executive offices) (Zip Code)

Issuer’s telephone number:  (732) 530-9007

N/A
(Former name, former address and former fiscal year, if changed since last report)

Copies to:
The Sourlis Law Firm
Virginia K. Sourlis, Esq.
The Galleria
2 Bridge Avenue
Red Bank, New Jersey 07701
(732) 530-9007
www.SourlisLaw.com

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 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.
 
x Yes      ¨ No
 
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,” "non-accelerated filer" and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):
 
Large accelerated filer
¨
Accelerated filer
¨
       
Non-accelerated filer
¨
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).
 
x Yes       ¨ No
 
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: As of October 28, 2008 there were . 100,000 shares of common stock, $.0001 par value, issued and outstanding



FREEDOM 4, INC.
A DEVELOPMENT STAGE COMPANY
INDEX
September 30, 2008
 

 
PART I - FINANCIAL STATEMENTS
3
 
 
Item 1. Financial Statements
3
 
 
Item 1A. Risk Factors
11
   
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
9
 
 
Item 3. Quantitative and Qualitative Disclosures About Market Risk
11
   
Item 4T. Controls and Procedures
11
   
PART II – OTHER INFORMATION
11
 
 
Item 1. Legal Proceedings
11
 
 
Item 2. Changes in Securities
12
 
 
Item 3. Defaults upon Senior Securities
12
 
 
Item 4. Submission of Matters to a Vote of Security Holders
12
 
 
Item 5. Other Information
12
 
 
Item 6. Exhibits and Reports of Form 8-K
12
   
SIGNATURES
13

2


PART I – FINANCIAL STATEMENTS

Item 1. Financial Statements

FREEDOM 4, INC.
A DEVELOPMENT STAGE COMPANY
BALANCE SHEETS
September 30, 2008 and December 31, 2007
 

 
   
9/30/2008
 
12/31/2007
 
   
Unaudited
 
Audited
 
           
Assets
 
$
-
 
$
-
 
               
Total assets
   
-
   
-
 
               
LIABILITIES AND STOCKHOLDER'S EQUITY
             
               
Current liabilities
             
Accounts payable
   
4,750
   
7,500
 
Note payable, demand
   
7,500
   
-
 
               
Total liabilities
   
12,250
   
7,500
 
           
Commitment and contingencies
   
-
   
-
 
               
Stockholder's equity (deficit)
             
Preferred stock, $.0001 par value,
             
 authorized 10,000,000 shares, none issued
   
-
   
-
 
Common stock, $.0001 par value,
             
 authorized 100,000,000 shares
             
 100,000 issued and outstanding
   
10
   
10
 
Additional paid-in capital
   
8,925
   
8,425
 
Deficit accumulated during the development stage
   
(21,185
)
 
(15,935
)
               
Total stockholder's equity (deficit)
   
(12,250
)
 
(7,500
)
               
Total liabilities and stockholder's equity (deficit)
 
$
-
 
$
-
 
 
The financial information presented herein has been prepared by management without audit by certified public accountants

See accompanying notes

3


A DEVELOPMENT STAGE COMPANY
STATEMENTS OF OPERATIONS
 


                   
For the period
 
   
For the three
 
For the three
 
For the nine
 
For the nine
 
June 27, 2006
 
   
months ended
 
months ended
 
months ended
 
months ended 
 
(Inception) to
 
   
Sept. 30, 2008
 
Sept. 30, 2007
 
Sept. 30, 2008
 
Sept. 30, 2007
 
Sept. 30, 2008
 
   
Unaudited
 
Unaudited
 
Unaudited
 
Unaudited
 
Unaudited
 
                       
Net sales
 
$
-
 
$
-
 
$
-
 
$
-
 
$
-
 
                                 
Cost of sales
   
-
   
-
   
-
   
-
   
-
 
                                 
Gross profit
   
-
   
-
   
-
   
-
   
-
 
                                 
General and administrative expenses
   
1,750
   
750
   
5,250
   
1,950
   
21,185
 
                                 
Net loss
 
$
(1,750
)
$
(750
)
$
(5,250
)
$
(1,950
)
$
(21,185
)
                                 
Weighted average number of
                               
common shares outstanding
                               
(basic and fully diluted)
   
100,000
   
100,000
   
100,000
   
100,000
   
100,000
 
                                 
Basic and diluted (loss) per common share
 
$
(0.02
)
$
(0.01
)
$
(0.05
)
$
(0.02
)
$
(0.142
)
 
The financial information presented herein has been prepared by management without audit by independent certified public accountants

See accompanying notes

4


A DEVELOPMENT STAGE COMPANY
STATEMENTS OF CASH FLOWS
 

 
                   
Period from
 
   
For the three
 
For the three
 
For the nine
 
For the nine
 
June 26, 2006
 
   
months ended
 
months ended
 
months ended
 
months ended
 
(inception ) to
 
   
Sept. 30, 2008
 
Sept. 30, 2007
 
Sept. 30, 2008
 
Sept. 30, 2007
 
Sept. 30, 2008
 
   
Unaudited
 
Unaudited
 
Unaudited
 
Unaudited
 
Unaudited
 
                       
Cash flows from operating activities
                     
Net (loss)
 
$
(1,750
)
$
(750
)
$
(5,250
)
$
(1,950
)
$
(21,185
)
                                 
Adjustments to reconcile net (loss) to net
                               
cash used in operating activities:
                               
(Increase) decrease in prepaid expenses
   
-
   
500
   
-
   
1,500
   
-
 
Increase (decrease) in notes payable
   
-
   
-
   
7,500
         
7,500
 
Increase (decrease) in accounts payable
   
(3,250
)
 
(2,000
)
 
(2,750
)
 
(5,060
)
 
4,750
 
                                 
Net cash (used in) operating activities
   
(5,000
)
 
(2,250
)
 
(500
)
 
(5,510
)
 
(8,935
)
                                 
Cash flows from financing activities
                               
Proceeds from issuance of common stock
   
-
   
-
   
-
   
-
   
10
 
Proceeds from additional capital contributions
   
5,000
   
2,250
   
500
   
5,510
   
8,925
 
                                 
Net cash provided by financing activities
   
5,000
   
2,250
   
500
   
5,510
   
8,935
 
                                 
Net increase in cash and cash equivalents
   
-
   
-
   
-
   
-
   
-
 
                                 
Cash - beginning of period
   
-
   
-
   
-
   
-
   
-
 
                                 
Cash - end of period
 
$
-
 
$
-
 
$
-
 
$
-
 
$
-
 
                                 
Supplemental disclosure of cash flow information:
                               
Taxes paid
   
-
   
-
   
-
   
-
   
-
 
Interest paid
   
-
   
-
   
-
   
-
   
-
 
 
The financial information presented herein has been prepared by management without audit by independent certified public accountants

See accompanying notes

5


FREEDOM 4, INC.
A Development Stage Company
NOTES TO UNAUDITED FINANCIAL STATEMENTS
September 30, 2008
 


NOTE 1.
DEVELOPMENT STAGE COMPANY

Freedom 4, Inc. (“the Company”) was incorporated in the State of Delaware on June 27, 2006 and is currently in its development stage.

On July 7, 2006, the Company filed a Registration Statement on Form 10SB to have its common stock, par value $0.0001, registered under Section 12(g) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). In accordance with the provisions of the Exchange Act such Registration Statement became effective on September 5, 2006.

As a blank check company, the Company’s business is to pursue a business combination through acquisition, or merger with, an existing company. As of the date of the financial statements, the Company has made no efforts to identify a possible business combination. As a result, the Company has not conducted negotiations or entered into a letter of intent concerning any target business. No assurances can be given that the Company will be successful in locating or negotiating with any target company. Since inception, the Company has been engaged in organizational efforts.

NOTE 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Company’s accompanying financial statements are prepared in accordance with U.S. generally accepted accounting principles. Significant accounting policies are as follows:

 
a.
Use of Estimates - The preparation of the statement of financial condition in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the statement of financial condition and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 
b.
Cash and Cash Equivalents - 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. For the period June 27, 2006 (inception) through September 30, 2008, the Company did not maintain any bank accounts.

 
c.
Income Taxes - The Company utilizes the liability method of accounting for income taxes. Under the liability method, deferred tax assets and liabilities are determined based on the differences between financial reporting basis and tax basis of the assets and liabilities and are measured using enacted tax rates that will be in effect when the differences are expected to reverse. An allowance against deferred tax assets is recognized, when it is more likely than not, that such tax benefits will not be realized.

 
d.
Loss per Common Share - Basic loss per share is calculated using the weighted-average number of common shares outstanding during each period as required by the Financial Accounting Standards Board (FASB) under Statement of Financial Accounting Standards (SFAS) No. 128. Diluted loss per share includes potentially dilutive securities such as outstanding options and warrants, using various methods such as the treasury stock or modified treasury stock method in the determination of dilutive shares outstanding during each period. The Company does not have any potentially dilutive instruments.

 
e.
Fair Value of Financial Instruments - The carrying value of cash equivalents and accrued expenses approximates fair value due to the short term nature.

6


FREEDOM 4, INC.
A Development Stage Company
NOTES TO UNAUDITED FINANCIAL STATEMENTS
September 30, 2008
 

 
NOTE 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)

 
f.
New Accounting Pronouncement - In September 2006, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 157 (“FAS 157”), Fair Value Measurements, which defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles (“GAAP”), and expands disclosures about fair value measurements. FAS 157 applies under other accounting pronouncements that require or permit fair value measurements. Prior to FAS 157, there were different definitions of fair value and limited guidance for applying those definitions in GAAP. Moreover, that guidance was dispersed among the many accounting pronouncements that require fair value measurements. Differences in that guidance created inconsistencies that added to the complexity in applying GAAP. The changes to current practice resulting from the application of FAS 157 relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurements. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. The Company does not expect the adoption of FAS 157 to have an effect on its financial statements.
 
NOTE 3.
PREFERRED STOCK

The Company is authorized to issue 10,000,000 shares of preferred stock. The Preferred Stock of the Company may be issued by the Board of Directors of the Company in one or more classes or one or more series within any class and such classes or series shall have such voting powers, full or limited, or no voting powers, and such designations, preferences, limitations or restrictions as the Board of Directors of the Company may determine, from time to time.

NOTE 4.
COMMON STOCK

The Company is authorized to issue 100,000,000 shares of Company Stock. On June 27, 2006, the Company issued 100,000 shares of Common Stock for total consideration of $2,100 to the sole shareholder of the Company.

Holders of shares of Common Stock shall be entitled to cast one vote for each share held at all stockholders’ meetings for all purposes, including the election of directors. The Common Stock does not have cumulative voting rights. No holder of shares of stock of any class shall be entitled as a matter of right to subscribe for or purchase or receive any part of any new or additional issue of shares of stock of any class, or of securities convertible into shares of stock of any class, whether now hereafter authorized or whether issued for money, for consideration other than money, or by way of dividend.

NOTE 5.
RELATED PARTY TRANSACTIONS

The Company utilizes the office space and equipment of sole shareholder, at no cost. Management estimates such amounts to be immaterial.

7

 
FREEDOM 4, INC.
A Development Stage Company
NOTES TO UNAUDITED FINANCIAL STATEMENTS
September 30, 2008
 

 
NOTE 6.
INTERIM FINANCIAL STATEMENTS

The accompanying interim unaudited financial statements of the Company as of September 30, 2008, the three and nine months ended September 30, 2008 and 2007 and for the period June 27, 2006 (inception) through September 30, 2008 have been prepared in accordance with accounting principles generally accepted for interim unaudited financial statement presentation and in accordance with the instructions to Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statement presentation. In the opinion of management, all adjustments for a fair statement of the results of operations and financial position for the interim period presented have been included.

All such adjustments are of a normal recurring nature. This financial information should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Form 10-KSB as of December 31, 2007, and for the period June 27, 2006 (inception) to December 31, 2007.

NOTE 7.
GOING CONCERN

The Company’s accompanying interim unaudited financial statements have been presented on the basis that it is a going concern in the development stage, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.

As of the date of these financial statements, the Company has made no efforts to identify a possible business combination.

The Company’s shareholder shall fund the Company’s activities while the Company takes steps to locate and negotiate with a business entity through acquisition, or merger with, an existing company; however, there can be no assurance these activities will be successful.

8


ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDIDTION AND RESULTS OF OPERATIONS

The Company has not realized any revenues from operations since inception, and its plan of operation for the next twelve months is to locate a suitable acquisition or merger candidate and consummate a business combination. The Company may need additional cash advances from its stockholder or loans from other parties to pay for operating expenses until the Company consummates a merger or business combination with a privately-held operating company. Although it is currently anticipated that the Company can satisfy its cash requirements with additional cash advances or loans from other parties, if needed, for at least the next twelve months, the Company can provide no assurance that it can continue to satisfy its cash requirements for such period.

Since our formation on June 27, 2006, our purpose has been to effect a business combination with an operating business which we believe has significant growth potential. We are currently considered to be a “blank check” company in as much as we have no specific business plans, no operations, revenues or employees. We currently have no definitive agreements or understanding with any prospective business combination candidates and have not targeted any business for investigation and evaluation nor are there any assurances that we will find a suitable business with which to combine. The implementation of our business objectives is wholly contingent upon a business combination and/or the successful sale of securities in the company.

Management anticipates seeking out a target company through solicitation. Such solicitation may include newspaper or magazine advertisements, mailings and other distributions to law firms, accounting firms, investment bankers, financial advisors and similar persons, the use of one or more Internet websites and similar methods. No estimate can be made as to the number of persons who will be contacted or solicited. Management may engage in such solicitation directly or may employ one or more other entities to conduct or assist in such solicitation. Management and its affiliates will pay referral fees to consultants and others who refer target businesses for mergers into public companies in which management and its affiliates have an interest. Payments are made if a business combination occurs, and may consist of cash or a portion of the stock in the Company retained by management and its affiliates, or both.

The Company and/or its sole shareholder will supervise the search for target companies as potential candidates for a business combination. The Company and/or its sole shareholder may pay as their own expenses any costs incurred in supervising the search for a target company. The Company and/or its shareholder may enter into agreements with other consultants to assist in locating a target company and may share stock received by it or cash resulting from the sale of its securities with such other consultants.
 
As a result of our limited resources, we expect to effect only a single business combination. Accordingly, the prospects for our success will be entirely dependent upon the future performance of a single business. Unlike certain entities that have the resources to consummate several business combinations or entities operating in multiple industries or multiple segments of a single industry, we will not have the resources to diversify our operations or benefit from the possible spreading of risks or offsetting of losses. A target business may be dependent upon the development or market acceptance of a single or limited number of products, processes or services, in which case there will be an even higher risk that the target business will not prove to be commercially viable.

Our officers and directors are only required to devote a very limited portion of their time to our affairs on a part-time or as-needed basis. We expect to use outside consultants, advisors, attorneys and accountants as necessary, none of which will be hired on a retainer basis. We do not anticipate hiring any full-time employees so long as we are seeking and evaluating business opportunities.

We expect our present management to play no managerial role in the Company following a merger or business combination. Although we intend to scrutinize closely the management of a prospective target business in connection with our evaluation of a business combination with a target business, our assessment of management may be incorrect. We cannot assure you that we will find a suitable business with which to combine.

Results of Operations

General. The Company has not conducted any active operations since inception, except for its efforts to locate a suitable acquisition or merger transaction. No revenue has been generated by the Company during such period, and it is unlikely the Company will have any revenues unless it is able to effect an acquisition of or merger with another operating company, of which there can be no assurance.

9


Revenues. For the three and nine month periods ended September 30, 2008, and September 30, 2007, and for the period from June 27, 2006 (Inception) to September 30, 2008, the Company had no activities that produced revenues from operations.

Net Loss. For the three month periods ended September 30, 2008 and 2007, the Company had a net loss of $1,750 and $750, respectively. For the nine month periods ended September 30, 2008 and 2007, the Company had a net loss of $5,250 and $1,950, respectively. From the Company’s date of inception (June 27, 2006) to September 30, 2008, the Company had a net loss of $21,185. These losses were mostly due to legal, accounting, audit and other professional service fees incurred in relation to the filing of the Company’s Registration Statement on Form 10-SB-12G filed on July 7, 2006 and annual and quarterly reports filed since the effectiveness of such registration statement.

Liabilities. At September 30, 2008, the Company had $12,250 in liabilities, consisting of Accounts Payable. The Accounts Payable consists of accounting fees accrued for the Registration Statement on Form 10-SB filed on July 7, 2006 and annual and quarterly reports filed with the SEC since the effectiveness of such registration statement.

General and Administrative Expenses. For the three month periods ended September 30, 2008 and 2007, the Company had general and administrative expenses of $1,750 and $750, respectively. For the nine month periods ended September 30, 2008 and 2007, the Company had general and administrative expenses of $5,250 and $1,950, respectively. From the Company’s date of inception (June 27, 2006) to September 30, 2008, the Company had general and administrative expenses of $21,185. These expenses were due to accounting, audit and other professional service fees incurred in relation to the filing of the Company’s Registration Statement on Form 10-SB-12G filed on July 7, 2006 and annual and quarterly reports filed with the SEC since the effectiveness of such registration statement.

Liquidity and Capital Resources

At September 30, 2008 and December 31, 2007, the Company had no assets. The Company’s current liabilities as of September 30, 2008 and December 31, 2007 totaled $12,250 and $7,500, respectively, comprised of accounts payable..
 
The following is a summary of the Company's cash flows from operating, investing, and financing activities:
 
For the three and nine months ended September 30, 2008 and 2007
 
   
For the Three Months
Ended September 30,
 
For the Nine Months Ended
September 30,
 
   
2008
(Unaudited)
 
2007
(Unaudited)
 
2008
(Unaudited)
 
2007
(Unaudited)
 
                   
 
$
(5,000
) 
$
(2,250
) 
$
(500
) 
$
(5,510
) 
Investing activities
 
$
0
 
$
0
 
$
0
 
$
0
 
Cash Provided from Financing activities
 
$
5,000
 
$
2,250
 
$
500
 
$
5,510
 
 
                         
Net effect on cash
 
$
0
 
$
0
 
$
0
 
$
0
 
 
The Company has no assets and has generated no revenues since inception. The Company is also dependent upon the receipt of capital investment or other financing to fund its ongoing operations and to execute its business plan of seeking a combination with a private operating company. If continued funding and capital resources are unavailable at reasonable terms, the Company may not be able to implement its plan of operations.

Off-Balance Sheet Arrangements

The Company does not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on the Company’s financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

10


ITEM 3. QUANTATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

N/A 

ITEM 4T. CONTROLS AND PROCEDURES.

Disclosure Controls and Procedures
 
Disclosure controls and procedures are designed with the objective of ensuring that information required to be disclosed in our reports filed under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), such as this quarterly report, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls are also designed with the objective of ensuring that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Disclosure controls and procedures are controls and procedures designed to ensure that information required to be disclosed by an issuer in reports that it files or submit under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported  within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.
 
Evaluation of Disclosure Controls and Procedures
 
Based on their evaluation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of September 30, 2008, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were sufficiently effective to ensure that the information required to be disclosed by us in this Report was (i) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and instructions for Form 10-Q.
 
Changes in Internal Controls over Financial Reporting.

There have been no changes in our internal controls over financial reporting or in other factors that could significantly affect these controls and procedures during the quarter ended September 30, 2008.

Inherent Limitations on Effectiveness of Controls
 
Our management, including our Chief Executive Officer and Chief Financial Officer, does not expect that our disclosure controls and procedures or our internal controls will prevent all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within our company have been detected.

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

The Company is currently not a party to any pending legal proceedings and no such action by or to the best of its knowledge, against the Company has been threatened.

ITEM 1A. RISK FACTORS.

N/A.

11


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

On June 27, 2006, the Company issued 100,000 shares of common stock for total consideration of $2,100 to the sole shareholder of the Company under the exemption from registration afforded the Company under Section 4(2) of the Securities Act of 1933, as amended.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

None

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

No matter was submitted during the quarter covered by this report, ending September 30, 2008, to a vote of the Company's shareholders, through the solicitation of proxies or otherwise.

ITEM 5. OTHER INFORMATION.

(a) Form 8-K: None
(b) Corporate Governance: There have not been any changes to the procedures by which the security holders of the Company may recommend nominees to the Company’s Board of Directors.

ITEM 6. EXHIBITS.

Exhibit No.:
 
Description:
31.1
 
 Certification pursuant to Section 302 of Sarbanes Oxley Act of 2002
     
32.1
 
Certification pursuant to Section 906 of Sarbanes Oxley Act of 2002

12


SIGNATURES

Pursuant to the requirements 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.

Dated: October 28, 2008

 
FREEDOM 4, INC.
 
 
 
By:
/s/ Virginia K. Sourlis 
 
Virginia K. Sourlis
 
Chief Executive Officer, President
 
And Chief Financial Officer
 
(Principal Executive Officer)
 
(Principal Financial Officer)

13

 
EX-31.1 2 v129919_ex31-1.htm
Exhibit 31.1
 
Certification of the Company’s Principal Executive Officer and Principal Financial Officer
 
Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
and Securities and Exchange Commission Release 34-46427

I, Virginia K. Sourlis, certify that:

1.    I have reviewed this Quarterly Report of Freedom 4, Inc for the quarter ended September 30, 2008;

2.    Based on my knowledge, this quarterly 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 quarterly report;

3.    Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the small business issuer as of, and for, the periods present in this quarterly report;

4.    The small business issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in 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 small business issuer and have:

(a)    designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this quarterly 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 small business issuer’s disclosure controls and procedures and presented in this quarterly report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this quarterly report based on such evaluation;

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

5.    I have disclosed, based on my 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 reasonable likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
 
(b)    any fraud, whether or not material, that involved management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: October 28, 2008
By:  
/s/ Virginia K. Sourlis
 
Virginia K. Sourlis
President
 
(Principal Executive Officer)
(Principal Financial Officer)
 
 
 

 
 
EX-32.1 3 v129919_ex32-1.htm
 EXHIBIT 32.1
 
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
 
In connection with the Quarterly Report of Freedom 4, Inc. (the “Company”) on Form 10-Q for the period ended September 30, 2008 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Virginia K. Sourlis, certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge and belief:

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

2.    The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
 
Dated: October 28, 2008
By:  
/s/ Virginia K. Sourlis
 
Virginia K. Sourlis
President
 
(Principal Executive Officer)
(Principal Financial Officer)
 
 
 

 
 
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