10SB12G 1 form10sb.htm REGISTRATION OF SECURITIES FOR SMALL BUSINESS Converted by EDGARwiz


UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549


Form 10-SB


General Form for Registration of Securities of Small Business Issuers

Under Section 12(b) or (g) of the Securities Exchange Act of 1934




Clopton House Corporation

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(Name of small business issuer in its charter)



Delaware                              20-8024018

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(State of incorporation)                      (IRS Employer Identification No.)



360 Main Street Washington, Virginia 22747

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(Address of principal executive offices) (Zip Code)



(540) 675-3149

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(Registrant's telephone number)



Securities to be registered under Section 12(b) of the Exchange Act:

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None



Securities to be registered under Section 12(g) of the Exchange Act:

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Common Stock: $0.001 par value












 

CLOPTON HOUSE CORPORATION

 

 

 

 

 

TABLE OF CONTENTS

 

 

 

 

PART I

 

 

 

 

 

Item 1

Description of Business                                            

3

 

 

 

Item 2

Management's Discussion and Analysis or Plan of Operation         

16

 

 

 

Item 3

Description of Property                                        

22

 

 

 

Item 4

Securities Ownership of Certain Beneficial Owners and Management

22

 

 

 

Item 5

Directors and Executive Officers, Promoters and Control Persons

23

 

 

 

Item 6

Executive Compensation                                           

25

 

 

 

Item 7

Certain Relationships and Related Transactions  and Director Independence

25

 

 

 

Item 8

Description of Securities                                         

25

 

 

 

PART II

 

 

 

 

 

Item 1

Market Price and Dividends on the Registrant's Common Equity and Related Stockholder Matters                     

25

 

 

 

Item 2

Legal Proceedings                                                 

26

 

 

 

Item 3

Changes in and Disagreements with Accountants                    

27

 

 

 

Item 4

Recent Sales of Unregistered Securities                           

27

 

 

 

Item 5

Indemnification of Directors and Officers                         

28

 

 

 

Part F/S

Financial Statements and Report of Independent Registered Public Accounting Firm                                

30

 

 

 

PART III

 

 

 

 

 

 

 

 

 

SIGNATURES                                                                  

28

 

 

 



 



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PART I



CAUTION REGARDING FORWARD-LOOKING INFORMATION


     All statements contained in this Form 10-SB, other than statements of historical facts, which address future activities, events or developments, are forward-looking statements, including, but not limited to, statements containing the words "believe,"  "anticipate,"  "expect" and words of similar import. These statements are based on certain assumptions and analyses made by us in light of our experience and our assessment of historical trends, current conditions and expected future developments as well as other factors we believe are appropriate under the circumstances.  However, whether actual results will conform to the expectations and predictions of management is subject to a number of risks and uncertainties that may cause actual results to differ materially.


     Such risks include, among others, the following:  international, national and local general economic and market conditions: our ability to sustain, manage or forecast our growth; raw material costs and availability; new product development and introduction; existing government regulations and changes in, or the failure to comply with, government   regulations;   adverse publicity; Competition; the loss of significant customers or suppliers; fluctuations and Difficulty in forecasting operating results; changes in business strategy or Development plans; business disruptions; the ability to attract and retain qualified personnel; the ability to protect technology; and other factors referenced in this filing.


     Consequently, all of the forward-looking statements made in this Form 10-SB are qualified by these cautionary statements and there can be no assurance that the actual results anticipated by management will be realized or, even if substantially realized, that they will have the expected consequences to or effects on our business operations.


     As used in this Form 10-SB, unless the context requires otherwise, "we" or "us" or “us" means Clopton House Corporation



ITEM 1 - DESCRIPTION OF BUSINESS


GENERAL


     Clopton House Corporation ("the Company") was incorporated on December 18, 2006 under the laws of the State of Delaware.  The Company was formed for seeking a merger, acquisition or other business combination transaction with a privately owned entity seeking to become a publicly owned entity.


     The Company is voluntarily filing this Registration Statement on Form 10-SB to register the Company’s common stock under Section 12(g) of the Securities Exchange Act of 1934 (the "Exchange Act").




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     The Company’s current principal business activity is to seek a suitable acquisition candidate through acquisition, merger, reverse merger or other suitable business combination method.


     As a "reporting company," the Company may be more attractive to a private acquisition target because its common stock is eligible to be quoted on the OTC Bulletin Board although there is no assurance it will be quoted.  As a result of filing this Registration Statement, the Company is obligated to file with the Securities and Exchange Commission (the "Commission") certain periodic reports, including an annual report containing audited financial statements.  The Company anticipates that it will continue to file such reports as required under the Exchange Act.


     The Company is a shell company that is defined under Rule 12b-2 of the Exchange Act as a registrant, other than an asset-backed issuer, that has 1) No or nominal operations; and 2) Either i) No or nominal assets; ii) Assets consisting solely of cash and cash equivalents; or iii) Assets consisting of any amount of cash and cash equivalents and nominal other assets.  Private companies wishing to become publicly traded may wish to merge with a shell company through a reverse merger or reverse acquisition transaction whereby the shareholders of the private company becomes the majority of the shareholders of the combined company.  The private company may purchase for cash all or a portion of the common shares of the shell corporation from its major stockholders.  Typically, the Board and officers of the private company become the new Board and officers of the combined Company and often the name of the private company becomes the name of the combined entity.


     The Company has very limited capital, and it is unlikely that the Company will be able to take advantage of more than one such business opportunity.  The Company intends to seek opportunities demonstrating the potential of long-term growth.  Now, the Company has not identified any business opportunity that it plans to pursue, nor has the Company reached any agreement or definitive understanding with any person concerning an acquisition.


     No direct discussions are expected to occur until after the effective date of this registration statement. No assurance can be given that the Company will be successful in finding or acquiring a desirable business opportunity, given the  limited  funds  that  are  expected  to  be  available  for   acquisitions Furthermore, no assurance can be given that any acquisition, which does occur, will be on terms that are favorable to the Company or its current stockholders


     The Company’s search will be directed toward small and medium-sized enterprises, which have a desire to become public corporations.  In addition these enterprises may wish to satisfy, either currently or in the reasonably near future, the minimum tangible asset requirement in order to qualify shares for trading on NASDAQ or on an exchange such as the American Stock Exchange (See the subsection of this Item 1 called “Investigation and Selection of Business Opportunities").   The Company anticipates that the business opportunities presented to it will either (i) be in the process of formation, or be recently organized with limited operating history or a history of losses attributable to under-capitalization or other factors; (ii) experiencing financial or operating difficulties; (iii) be in need of funds to develop new products or services or to  expand  into a new  market,  or  have  plans  for  rapid  expansion  through acquisition of competing businesses; or (iv) has other similar characteristics. The Company intends to concentrate its acquisition efforts on properties or businesses that it believes to be undervalued or that it believes may realize a



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substantial benefit from being publicly owned.  Given the above factors, investors should expect that any acquisition candidate might have little or no operating history, or a history of losses or low profitability.


     The Company does not propose to restrict its search for investment opportunities  to  any  particular  geographical  area  or  industry,  and  may, therefore, engage in essentially any business, to the extent of its limited resources.  The Company's discretion in the selection of business opportunities

is unrestricted, subject to the availability of such opportunities, economic conditions and other factors.


     As a consequence of this registration of its securities, any entity which has an interest in being acquired by, or merging into the Company, is expected to be an entity that desires to become a public company and establish a public trading market for its securities.  In connection with such a merger or acquisition, it is highly likely that an amount of stock constituting control of the Company would either be issued by the Company or be purchased from the current principal stockholders of the Company by the acquiring entity or its affiliates.  If stock is purchased from the current principal stockholders, the transaction is likely to result in substantial gains to the current principal stockholders relative to their purchase price for such stock.  In the Company's judgment, none of the officers and directors would thereby become an underwriter within the meaning of the Section 2(11) of the Securities Act of 1933, as amended, as long as the transaction is a private transaction rather than a public distribution of securities. The sale of a controlling interest by certain principal stockholders of the Company would occur at a time when minority stockholders are unable to sell their shares because of the lack of a public market for such shares.


     Depending upon the nature of the transaction, the current officers and directors of the Company may resign their management and board positions with the Company in connection with a change of control or acquisition of a business opportunity (see the subsection of this Item 1 called "Form of Acquisition," and "Risk Factors").  In the event of such a resignation, the Company’s current management would thereafter have no control over the conduct of the Company's business.


     It is anticipated that business opportunities will come to the Company's attention from various sources, including its officers and directors, its other stockholders,   professional   advisors such as attorneys and   accountants, securities broker-dealers,   venture capitalists, members of the financial community and others who may present unsolicited proposals. The Company has no plans, understandings, agreements, or commitments with any individual for such person to act as a finder of opportunities for the Company.


INVESTIGATION AND SELECTION OF BUSINESS OPPORTUNITIES


     To a large extent, a decision to participate in a specific business opportunity may be made upon management’s analysis of the quality of the other company’s management and personnel, the anticipated acceptability of new products  or  marketing  concepts,  the  merit  of  technological  changes,  the perceived benefit the business opportunity will derive from becoming a publicly held entity, and numerous other factors which are difficult, if not impossible, to analyze through the application of any objective criteria. In many instances, it  is  anticipated  that  the  historical  



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operations  of a  specific  business opportunity may not necessarily be indicative of the potential for the future because of a variety of factors, including, but not limited to, the possible need to expand substantially, shift marketing approaches, change product emphasis, change or substantially augment management, raise capital and the like.


     It is anticipated that the Company will not be able to diversify, but will essentially be limited to the acquisition of one business opportunity because of the Company is limited financing.  This lack of diversification will not permit the Company to offset potential losses from one business opportunity against profits from another, and should be considered an adverse factor affecting any decision to purchase the Company's securities.


     Certain types of business acquisition transactions may be completed without any   requirement   that the Company first submit the transaction to the stockholders for their approval.  In the event the proposed transaction is structured in such a fashion that stockholder approval is not required, holders of the Company’s securities (other than principal stockholders holding a controlling interest) should not anticipate that they would be provided with financial statements or any other documentation prior to the completion of the transaction.  Other types of transactions may require prior approval of the stockholders.


     In the event a proposed business combination or business acquisition transaction requires stockholder approval, the Company will be required to prepare a Proxy or Information Statement describing the proposed transaction, file it with the Securities and Exchange Commission for review and approval, and mail a copy of it to all Company stockholders prior to holding a stockholder meeting for purposes of voting on the proposal or if no stockholders meeting will  be  held,  prior  to  consummating  the  proposed  transaction.   Minority shareholders may have the right, in the event the transaction is approved by the required number of stockholders, to exercise statutory dissenter’s rights and elect to be paid the fair value of their shares.


     The analysis of business opportunities will be undertaken by or under the supervision  of  the  Company's  officers  and  directors,   none  of  whom  are professional   business  analysts  (See  the  section  of  this  Item  1  called "Management").  Although there are no current plans to do so, Company management might hire an outside consultant to assist in the investigation and selection of business opportunities, and might pay a finder's fee. Since Company management has no current plans to use any outside consultants or advisors to assist in the investigation and selection of business opportunities, no policies have been adopted regarding use of such consultants or advisors, the criteria to be used in selecting such consultants or advisors, the services to be provided, the term of service, or the total amount of fees that may be paid.  However, due to the limited resources of the Company, it is likely that any such fee the Company agrees to pay would be paid in stock and not in cash.


     Otherwise,   in analyzing   potential business   opportunities,   Company management anticipates that it will consider, among other things, the following factors:


§

Potential for growth and profitability indicated by new technology, anticipated market expansion, or new products;



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§

the Company’s perception of how any particular business opportunity will be received by the investment community and by the Company’s stockholders;

·

whether, following the business combination, the financial condition of the business opportunity would be, or would have a significant prospect in the near future of becoming, sufficient to enable the securities of the Company to qualify for listing on an exchange or on a national automated securities quotation system, such as NASDAQ, so as to permit the trading of such securities to be exempt from the requirements of Rule 15g-9 adopted by the Securities and Exchange Commission (See the subsection of this Item 1 called "Risk Factors Regulation of Penny Stocks");

·

capital requirements and anticipated availability of required funds, to be provided by the Company or from operations, through the sale of additional securities, through joint ventures or similar arrangements, or from other sources;

·

the extent to which the business opportunity can be advanced;

·

competitive position as compared to other companies of similar size and experience within the industry segment as well as within the industry as a whole;

·

strength and diversity of existing management or management prospects that are scheduled for recruitment;

·

the cost of participation by the Company as compared to the perceived tangible and intangible values and potential; and

·

the accessibility of required management expertise, personnel, raw materials, services, professional assistance, and other required items.


     The Company is unable to predict when it may participate in a business opportunity.  It expects, however, that the analysis of specific proposals and the selection of a business opportunity may take several months or more.


     Prior to making a decision to participate in a business opportunity, the Company will generally request that it be provided with written materials regarding the business opportunity containing as much relevant information as possible,  including,  but not  limited  to,  such  items  as a  description  of products,   services and Company history;   management   resumes;   financial information; available projections, with related assumptions upon which they are based; an explanation of proprietary products and services; evidence of existing patents, trademarks, or service marks, or rights thereto; present and proposed forms of compensation to management; a description of transactions between such Company and its affiliates during the relevant periods; a description of present and required facilities; an analysis of risks and competitive conditions; a financial plan of operation and estimated capital requirements;   audited financial  statements,  or  if  they  are  not  available,  un-audited financial statements, together with reasonable assurance that audited financial statements would be able to be produced within a reasonable period not to exceed 60 days following completion of a merger or acquisition transaction; and the like.


     As part of the Company’s investigation, the Company’s executive officers and directors may meet personally with management and key personnel, may visit moreover, inspect material facilities; obtain independent analysis or verification of certain information provided, check references of management and key personnel, in addition, take other reasonable investigative measures, to the extent of the Company's limited financial resources and management expertise.




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     It is possible that the range of business opportunities that might be available for consideration by the Company could be limited by the impact of Securities and Exchange Commission regulations regarding purchase and sale of penny stocks. The regulations would affect, and possibly impair, any market that might develop in the Company’s securities until such time as they qualify for listing  on  NASDAQ  or on  an  exchange  which  would  make  them  exempt  from applicability of the penny stock regulations. (see the subsection of this Item 1 called "Risk Factors - Regulation of Penny Stocks").


     Company management believes that various types of potential merger or acquisition candidates might find a business combination with the Company to be attractive.  These include acquisition candidates desiring to create a public market for their shares in order to enhance liquidity for current stockholders, acquisition candidates, which have long-term plans for raising capital through public sale of securities and believe that the possible prior existence of a public  market  for  their  securities  would  be  beneficial,  and  acquisition candidates  which  plan  to  acquire   additional  assets  through  issuance  of securities rather than for cash, and believe that the possibility of development of a public market for their securities will be of assistance in that process. Acquisition candidates, who have a need for an immediate cash infusion, are not likely to find a potential business combination with the Company to be an attractive alternative.


FORM OF ACQUISITION


     It is impossible to predict the manner in which the Company may participate in a business opportunity.  Specific business opportunities will be reviewed as well as the respective needs and desires of the Company and the promoters of the opportunity and, upon the basis of the review and the relative negotiating strength of the Company and such promoters, the legal structure or method deemed by management to be suitable will be selected.  Such structure may include, but is not limited to, leases, purchase and sale agreements, licenses, joint ventures and other contractual arrangements.  The Company may act directly or indirectly through an interest in a partnership, corporation or other form of organization.  Implementing such structure may require the merger, consolidation or reorganization of the Company with other corporations or forms of business organization.  In addition, the present management and stockholders of the Company most likely will not have control of a majority of the voting stock of the Company following a merger or reorganization transaction. As part of such a transaction, the Company’s existing directors may resign and new directors may be appointed without any vote by stockholders.


     It is likely that the Company will acquire its participation in a business opportunity through the issuance of Common Stock or other securities of the Company.  Although the terms of any such transaction cannot be predicted, it  should be noted that in certain circumstances the criteria for determining whether or not an acquisition is a so-called B tax free reorganization under the Internal Revenue Code of 1986 as amended, depends upon the issuance to the stockholders of the acquired Company of a controlling interest (i.e., 80% or more) of the common stock of the combined entities immediately following the reorganization.  If a transaction were structured to take advantage of these  provisions rather than other tax-free provisions provided under the Internal Revenue Code, the Company's current stockholders would retain taken together 20% or less of the total issued and outstanding shares.  This could result in substantial additional dilution in the equity of those who were stockholders of the Company prior to such reorganization. Any such issuance of additional



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shares might also be done simultaneously with a sale or transfer of shares representing a controlling interest in the Company by the current officers, directors and principal stockholders.


     It is anticipated that any new securities issued in any reorganization would be issued in reliance upon one or more exemptions from registration under applicable federal and state securities laws to the extent that such exemptions are available.  In some circumstances, however, as a negotiated element of the transaction, the Company may agree to register such securities either at the time the transaction is consummated or under certain conditions at specified times thereafter.  The issuance of substantial additional securities and their potential sale into any trading market that might develop in the Company’s securities may have a depressive effect upon such market.


     The Company will participate in a business opportunity only after the negotiation and execution of a written agreement.  Although the terms of such agreement  cannot  be  predicted,  generally  such an  agreement  would  require specific representations and warranties by all of the parties thereto, specify certain events of default, detail the terms of closing and the conditions which must be satisfied by each of the parties thereto prior to such closing, outline the manner of bearing costs if the transaction is not closed set forth remedies upon default, and include miscellaneous other terms.


     As a general matter, the Company anticipates that it, and/or it’s principal stockholders will enter into a letter of intent with the management, principals or owners of a prospective business opportunity prior to signing a binding agreement.  Such a letter of intent will set forth the terms of the proposed acquisition but will not bind any of the parties to consummate the transaction. Execution of a letter of intent will by no means indicate that consummation of an acquisition is probable.  Neither the Company nor any of the other parties to the letter of intent will be bound to consummate the acquisition unless and until a definitive agreement is executed.  Even after a definitive agreement is executed, it is possible that the acquisition would not be consummated should any party elect to exercise any right provided in the agreement to terminate it on specific grounds.


     It is anticipated that the investigation of specific business opportunities and the negotiation, drafting and execution of relevant agreements, disclosure documents and other instruments will require substantial management time and attention and substantial costs for accountants, attorneys and others.  If a decision is made not to participate in a specific business opportunity, the costs incurred in the related investigation would not be recoverable.  Moreover, because many providers of goods and services require compensation at the time or soon after the goods and services are provided, the inability of the Company to pay until an indeterminate future time may make it impossible to produce goods and services.


COMPETITION


     The Company expects to encounter substantial competition in its efforts to locate attractive business combination opportunities.  The competition may in part come from business development companies, venture capital partnerships and corporations, small investment companies, brokerage firms, and the like. Some of these types of organizations are likely to be in a better position than the Company to obtain access to attractive business acquisition candidates either because they have



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greater experience, resources and managerial capabilities than the Company, because they are able to offer immediate access to limited amounts of cash, or for a variety of other reasons.  The Company also will experience competition from other public companies with similar business purposes, some of which may also have funds available for use by an acquisition candidate.


EMPLOYEES


     The Company currently has no employees.  Management of the Company expects to use consultants, attorneys and accountants as necessary, and does not anticipate a need to engage any full-time employees so long as it is seeking and evaluating business opportunities. The need for employees and their availability will be addressed in connection with the decision whether or not to acquire or participate in specific business opportunities.


RISK FACTORS


     The Company’s business and plan of operation is subject to numerous risk factors, including, but not limited to, the following:


The Company's limited operating history makes its potential difficult to assess.


     The Company has no assets or financial resources.  The Company will, in all likelihood,   continue to sustain operating expenses without corresponding revenues, at least until the consummation of a business combination.  This will most likely result in the Company incurring a net operating loss, which will increase continuously until the Company can consummate a business combination with a target company.  There is no assurance that the Company can identify such a target company and consummate such a business combination.


The  Company  has  no  agreement  for a  business  combination  and  no  minimum

requirements for a business combination.


     The Company has no current arrangement, agreement or understanding with respect to engaging in a business combination with a specific entity. There can be no  assurance  that  the  Company  will  be  successful  in  identifying  and evaluating   suitable business   opportunities or in concluding a business combination.  No particular industry or specific business within an industry has been selected for a target company.  The Company has not established a specific length of operating history or a specified level of earnings, assets, net worth or other criteria which it will require a target company to have achieved, or without which the Company would not consider a business combination with such business entity. Accordingly, the Company may enter into a business combination with a business entity having no significant operating history, losses, limited or no potential for immediate earnings, limited assets, negative net worth or other negative characteristics.  There is no assurance that the Company will be able to negotiate a business combination on terms favorable to the Company.


There is no assurance of success or profitability of the Company.




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     There is no assurance that the Company will acquire a favorable business opportunity.   Even if the Company should become involved in a business opportunity, there is no assurance that it will generate revenues or profits, or that the market price of the Company’s outstanding shares will be increased thereby.  The type of business to be acquired may be one that desires to avoid effecting  its  own  public  offering  and  the  accompanying  expense,  delays, uncertainties and federal and state requirements which purport to protect investors.  Because of the Company's limited capital, it is more likely than not that any acquisition by the Company will involve other parties whose primary interest is the acquisition of control of a publicly traded Company.  Moreover, any business opportunity acquired may be currently unprofitable or present other negative factors.


The Company may not be able to diversify its business.


     Because of the Company's limited financial resources, it is unlikely that the Company will be able to diversify its acquisitions or operations.  The Company's probable inability to diversify its activities into more than one area will subject the Company to economic fluctuations within a particular business or industry and therefore increase the risks associated with the Company’s operations.


The Company has only one director and officer.


     Because management consists of only one person, while seeking a business combination, Joseph Meuse, the President of the Company, will be the only person responsible in conducting the day-to-day operations of the Company.  The Company does not benefit from having access to multiple judgments that a greater number of directors or officers would provide, and the Company will rely completely on the judgment of its one officer and director when selecting a target company.  Mr. Meuse anticipates devoting only a limited amount of time per month to the business of the Company.  Mr. Meuse has not entered into a written employment agreement with the Company and he is not expected to do so. The Company does not anticipate obtaining key man life insurance on Mr. Meuse. The loss of the services of Mr. Meuse would adversely affect development of the Company's business and its likelihood of continuing operations.


The Company depends on management and management's participation is limited.


     The Company will be entirely dependent upon the experience of its officers and directors in seeking, investigating, and acquiring a business and in making decisions regarding the Company's operations.  It is possible that, from time to time, the inability of such persons to devote their full time attention to the company will cause the company to lose an opportunity.


Conflicts of interest exist between the Company and its management.


     Certain conflicts of interest exist between the Company and its officer and director.  He has other business interests to which he currently devotes attention, and is expected to continue to do so. As a result, conflicts of interest may arise that can be resolved only through his exercise of judgment in a manner that is consistent with his fiduciary duties to the Company.




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     It is anticipated that the Company’s principal stockholders may actively negotiate or otherwise consent to the purchase of a portion of their common stock as a condition to, or in connection with, a proposed merger or acquisition transaction.  In this process, the Company's principal stockholders may consider their own personal pecuniary benefit rather than the best interest of other Company shareholders.  Depending upon the nature of a proposed transaction, Company stockholders other than the principal stockholders may not be afforded the opportunity to approve or consent to a particular transaction.


The Company may need additional financing.


     The Company has very limited funds, and such funds, may not be adequate to take advantage of any available business opportunities.  Even if the Company's currently available funds prove to be sufficient to pay for its operations until it is able to acquire an interest in, or complete a transaction with, a business opportunity, such funds will clearly not be sufficient to enable it to exploit the opportunity. Thus, the ultimate success of the Company will depend, in part, upon its availability to raise additional capital. In the event that the Company requires modest amounts of additional capital to fund its operations until it is able to complete a business acquisition or transaction, such funds, are expected to be provided by the principal shareholders.  However, the Company has not investigated the   availability,   source, or terms that might govern the acquisition of the additional capital, which is expected to be required in order to exploit a business opportunity, and will not do so until it has determined the level of need for such additional financing.  There is no assurance that additional capital will be available from any source or, if available, that it can be obtained on terms acceptable to the Company.  If not available, the

Company’s operations will be limited to those that can be financed with its modest capital.


The Company may need to depend upon outside advisors.


     To supplement the business experience of its officer and director, the Company may be required to employ accountants, technical experts, appraisers, attorneys, or other consultants or advisors. The selection of any such advisors will be made by the Company’s officers, without any input by shareholders. Furthermore, it is anticipated that such persons may be engaged on an as needed basis without a continuing fiduciary or other obligation to the Company. In the event  the  officers  of the  Company  consider  it  necessary  to hire  outside advisors, they may elect to hire persons who are affiliates, if those affiliates are able to provide the required services.


REGULATION OF PENNY STOCKS


     The Securities and Exchange Commission (the “Commission") has adopted a number of rules to regulate “penny stocks." Such rules include Rule 3a51-1 and Rules 15g-1 through 15g-9 under the Securities Exchange Act of 1934, as amended. Because the securities of the Company may constitute “penny stocks" within the meaning of the rules (as any equity security that has a market price of less than $5.00 per share or with an exercise price of less than $5.00 per share, largely traded in the National Association of Securities Dealers’ (NASD) OTC Bulletin Board or the "Pink Sheets", the rules would apply to the Company and to its securities.




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     The Commission has adopted Rule 15g-9 that established sales practice requirements low price securities. Unless the transaction is, exempt, it shall be unlawful for a broker or dealer to sell a penny stock to, or to effect  the  purchase  of a penny  stock  by,  any  person  unless  prior to the transaction:  (i) the broker or dealer has approved the person’s account for transactions in penny stock pursuant to this rule and (ii) the broker or dealer has received from the person a written agreement to the transaction setting forth the identity and quantity of the penny stock to be purchased.


     In order to approve a person's account for transactions in penny stock, the broker or dealer must:  (a) obtain from the person information concerning the person's financial situation, investment experience, and investment objectives; (b) reasonably determine that transactions in penny stock are suitable for that person, and that the person has sufficient knowledge and experience in financial matters that the person reasonably may be expected to be capable of evaluating the risks of transactions in penny stock; (c) deliver to the person a written statement setting forth the basis on which the broker or dealer made the determination (i) stating in a highlighted format that it is unlawful for the broker or dealer to affect a transaction in penny stock unless the broker or dealer has received, prior to the transaction, a written agreement to the transaction  from  the  person;   and  (ii)  stating  in  a  highlighted  format immediately preceding the customer signature line that (iii) the broker or dealer is required to provide the person with the written statement; and (iv) the person should not sign and return the written statement to the broker or dealer if it does not accurately reflect the person’s financial situation, investment experience, and investment objectives; and (d) receive from the person a manually signed and dated copy of the written statement.


     It is also required that disclosure be made as to the risks of investing in penny stock and the commissions payable to the broker-dealer, as well as current price quotations and the remedies and rights available in cases of fraud in penny stock transactions.  Statements, on a monthly basis, must be sent to the investor listing recent prices for the Penny Stock and information on the limited market.  Shareholders should be aware that, according to Securities and Exchange Commission Release No.  34-29093, the market for penny stocks has suffered in recent years from patterns of fraud and abuse. Such patterns include (i) control of the market for the security by one or a few broker-dealers that are often related to the promoter or issuer; (ii) manipulation of prices through prearranged matching of purchases and sales and false and misleading press releases; (iii) "boiler room" practices involving high-pressure sales tactics and unrealistic price projections by inexperienced sales persons; (iv) excessive and undisclosed bid-ask differential and markups by selling broker-dealers; and (v) the wholesale dumping of the same securities by promoters and broker dealers after prices have been manipulated to a desired level, along with the resulting inevitable collapse of those prices and with consequent investor losses.  The Company’s management is aware of the abuses that have occurred historically in the penny stock market. Although the Company does not expect to be in a position to dictate the behavior of the market or of broker-dealers who participate in the market, management will strive within the confines of practical limitations to prevent the described patterns from being established with respect to the Company's securities.


The Company may have significant competition for business opportunities and combinations and may be at a competitive disadvantage in completing a business combination.




13



     The Company is and will continue to be an insignificant participant in the business of seeking mergers with and acquisitions of business entities.  A large number of established and well-financed entities, including venture capital firms are active in mergers and acquisitions of companies, which may be merger alternatively, acquisition target candidates for the Company.  Nearly all such entities have significantly greater financial resources, technical expertise and managerial capabilities than the Company and, consequently, the Company will be at a competitive disadvantage in identifying possible business opportunities and successfully completing a business combination.  Moreover, the Company will also compete in seeking merger or acquisition candidates with other public shell companies, some of which may also have funds available for use by an acquisition candidate.


The reporting requirements imposed upon the Company may delay or preclude its ability to enter into a business combination.


     Pursuant to the requirements of Section 13 of the Exchange Act, the Company is required to provide certain information about significant acquisitions including audited financial statements of the acquired company.  Because the Company is a shell company these audited financial statements must be furnished within four business days   following the effective   date of a business combination.   Obtaining   audited   financial   statements   are the economic responsibility of the target company.  The additional time and costs that may be incurred by some potential target companies to prepare such financial statements may significantly delay or essentially preclude consummation of an otherwise desirable acquisition by the Company.  Acquisition prospects that do not have or are unable to obtain the required audited statements may not be appropriate for acquisition  so long  as the  reporting  requirements  of the  Exchange  Act are applicable.  Notwithstanding a target company’s agreement to obtain audited financial statements within the required time frame, such audited financials may not be available to the Company at the time of effecting a business combination. In cases where audited financials are unavailable, the Company will have to rely upon un-audited information that has not been verified by outside auditors in making its decision to engage in a transaction with the business entity.  This risk increases the prospect that a business combination with such a business entity might prove to be an unfavorable one for the Company.


The Company lacks market research and a marketing organization.


     The Company has neither conducted, nor have others made available to it, market research indicating that demand exists for the transactions contemplated by the Company.  In the event demand exists for a transaction of the type contemplated  by  the  Company,  there  is no  assurance  the  Company  will  be successful in completing any such business combination.


It is probable that there will be a change in control of the Company and/or management.


     In conjunction with completion of a business acquisition, it is anticipated that the Company will issue an amount of the Company's authorized, but un-issued common stock that represents the greater majority of the voting power and equity of the Company, which will, in all likelihood, result in stockholders of a target company obtaining a controlling interest in the Company.  As a condition of the business combination agreement, the current stockholder of the Company may



14



agree to sell or transfer all or a portion of the Company’s common stock he owns so to  provide  the  target  company  with  all or  majority  control.  The resulting change in control of the Company will likely result in removal of the present officer and director of the Company and a corresponding reduction in or elimination of his participation in the future affairs of the Company.


Stockholders will likely suffer a dilution of the value of their shares upon a business combination.


     A business combination normally will involve the issuance of a significant number of additional shares.  Depending upon the value of the assets acquired in such business combination, the per-share value of the Company's common stock may increase or decrease, perhaps significantly.


No Public market exists and no public market may develop for the Company’s common stock.


     There is currently no public market for the Company’s common stock, and no assurance can be given that a market will develop or that a shareholder ever will be able to liquidate his investment without considerable delay, if at all. If a market should develop, the price may be highly volatile.  Factors such as those discussed in this "Risk Factors” section may have a significant impact upon the market price of the securities offered hereby.  Owing to the low price of  the  securities,   many  brokerage  firms  may  not  be  willing  to  effect transactions in the securities.  Even if a purchaser finds a broker willing to effect a transaction in these securities,   the combination of brokerage commissions, state transfer taxes, if any, and any other selling costs may exceed the sales proceeds.


Registration of shares of the Company's common stock may be required for resale.


     It is the Commission's position that securities issued by a "shell" company such as Clopton House Corporation, cannot be sold under the exemption from registration provided by Rule 144 promulgated under the Securities Act of 1933 (the "Act"), but must be registered under the Securities Act of 1933. Accordingly, the securities sold to our affiliates may have to be registered under the Act prior to resale.  Any other   securities   issued  to  individuals in  the  capacity  of  management, affiliates,  control persons and promoters may also have to be registered  prior to resale and shall be issued with appropriate  restricted legend to reflect the registration requirements.


There may be restrictions imposed by states on the sale of Common Stock by investors.


     Because the securities registered hereunder have not been registered for resale under the Blue Sky laws of any state, the holders of such shares and persons who desire to purchase them in any trading market that might develop in the future, should be aware, that there may be significant state Blue Sky law restrictions upon the ability of investors to sell the securities and of purchasers to purchase the securities.  Accordingly, investors should consider the secondary market for the Company's securities to be a limited one.


The Company may be subject to additional risks because of doing business in a foreign country.


     The Company may effectuate a business combination with a merger target whose business operations or even headquarters, place of formation or primary place of business are located outside the United States of America.  In such event, the Company may face the significant additional risks



15



associated with doing business in that country. In addition to the language barriers, different presentations of financial information, different business practices, and other cultural differences and barriers that may make it difficult to evaluate such a merger target, ongoing business risks result from the international political situation, uncertain legal systems and applications of law, prejudice against foreigners,   corrupt practices, uncertain economic policies and potential political and economic instability that may be exacerbated in various foreign countries.


The consummation of a business combination may subject the Company and its stockholders to federal and state taxes.


     Federal and state tax consequences will, in all likelihood, be major considerations in any business combination that the Company may undertake. Currently, such transactions may be structured to result in tax-free treatment to  both  companies,  pursuant  to  various  federal  and  state  tax provisions.  The Company intends to structure any business combination so as to minimize the federal and state tax consequences to both the Company and the target entity; however, there can be no assurance that such business combination will meet the statutory requirements of a tax-free reorganization or that the parties will obtain the intended tax-free treatment upon a transfer of stock or assets. A non-qualifying reorganization could result in the imposition of both federal and state taxes, which may have an adverse effect on both parties to the transaction.



ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION


GENERAL


     Clopton House Corporation (the "Company") was originally incorporated on December 18, 2006 under the laws of the State of Delaware.  The  Company  was  initially formed  as a  "blank  check"  entity  for  the  purpose  of  seeking a merger, acquisition or other business  combination  transaction  with a privately  owned entity seeking to become a publicly-owned entity.


     The Company’s current principal business activity is to seek a suitable reverse acquisition candidate through acquisition, merger or other suitable business combination method.


     It is the intent of management and significant stockholders to provide sufficient working capital necessary to support and preserve the integrity of the corporate entity.  However, there is no legal obligation for either management or significant stockholders to provide additional future funding. Should this pledge fail to provide financing, the Company has not identified any alternative sources.  Consequently, there is substantial doubt about the Company's ability to continue as a going concern.


     The Company's need for capital may change dramatically because of any business acquisition or combination transaction.  There can be no assurance that the Company will identify any such business, product, technology or company suitable for acquisition in the future.  Further, there can be no assurance that the Company would be successful in consummating any acquisition on



16



favorable terms or that it will be able to profitably manage the business, product, technology or company it acquires.


PLAN OF OPERATION


GENERAL


     The Company’s current purpose is to seek, investigate and, if such investigation warrants, merge or acquire an interest in business opportunities presented  to it by  persons  or  companies  who or  which  desire  to seek  the perceived   advantages of a Securities   Exchange Act of 1934   registered corporation.  As of the date of this registration statement, the Company has no particular acquisitions in mind and has not entered into any negotiations regarding such an acquisition, and neither the Company’s officer and director nor any  promoter  and  affiliate  has  engaged  in any  negotiations  with  any representatives  of  the  owners  of  any  business  or  company  regarding  the possibility of a merger or acquisition between the Company and such other company.


     Pending negotiation and consummation of a combination,   the Company anticipates  that  it  will  have,  aside  from  carrying  on its  search  for a combination partner, no business activities, and, thus, will have no source of revenue.  Should the Company incur any significant liabilities prior to a combination  with  a  private  company,  it may  not be  able  to  satisfy  such liabilities as are incurred.


     If the Company’s management pursues one or more combination opportunities beyond the preliminary   negotiations   stage and those   negotiations   are subsequently terminated, it is foreseeable that such efforts will exhaust the Company's ability to continue to seek such combination opportunities before any successful combination can be consummated.  In that event, the Company is common stock will become worthless and holders of the Company’s common stock will receive a nominal distribution, if any, upon the Company’s liquidation and dissolution.


MANAGEMENT


     The Company is in the development stage and currently has no full-time employees.  Mr.  Joseph Meuse is the Company’s sole officer, director, and controlling shareholder.  All references herein to management of the Company are to Mr. Meuse. Mr. Meuse, as President of the Company, has agreed to allocate a limited portion of his time to the activities of the Company after the effective date of this Registration Statement without compensation.  Potential conflicts may arise with respect to the limited time commitment by Mr. Meuse and the potential   demands of the   Company's   activities.   See Item 7, “Certain Relationships and Related Transactions - Conflicts of Interest."


     The amount of time spent by Mr. Meuse on the activities of the Company is not predictable.  Such time may vary widely from an extensive amount when reviewing a target company to an essentially quiet time when activities of management focus elsewhere or some amount in between.  It is impossible to predict with any precision the exact amount of time Mr. Meuse will actually be required to spend to locate a suitable target company. Mr. Meuse estimates that the business plan of



17



the Company can be implemented by devoting less than five hours per month but such figure cannot be stated with precision.


SEARCH FOR BUSINESS OPPORTUNITIES


     The Company’s search will be directed toward small and medium-sized enterprises, which have a desire to become reporting corporations and which are able to provide audited financial statements.  The Company does not propose to restrict its search for investment opportunities to any particular geographical area or industry, and may, therefore, engage in essentially any business, to the extent of its limited resources.  The Company’s discretion in the selection of business opportunities is unrestricted, subject to the availability of such opportunities, economic conditions, and other factors. No assurance can be given that the Company will be successful in finding or acquiring a desirable business opportunity, and no assurance can be given that any acquisition, which does occur, will be on terms that are favorable to the Company or its current stockholders.


     The Company may merge with a company that has retained one or more consultants or outside advisors. In that situation, the Company expects that thebusiness opportunity will compensate the consultant or outside advisor.  As of the  date  of  this  filing,  there  have  been no  discussions,  agreements or understandings  with  any  party  regarding  the  possibility  of  a  merger or acquisition between the Company and such other company.  Consequently, the Company is unable to predict how the amount of such compensation would be calculated at this time.  It is anticipated that any finder that the target company retains would be a registered broker-dealer.


     The Company will not restrict its search to any specific kind of firm, but may acquire a venture, which is in its preliminary or development stage, one which is already in operation or in a more mature stage of it is corporate existence. The acquired business may need to seek additional capital, may desire to have its shares publicly traded, or may seek other perceived advantages which the Company may offer.  The Company does not intend to obtain funds to finance the operation of any acquired business opportunity until such time as the Company has successfully consummated the merger or acquisition transaction. There are no loan arrangements or arrangements for any financing whatsoever relating to any business opportunities.


EVALUATION OF BUSINESS OPPORTUNITIES


     The analysis of business opportunities will be under the supervision of the Company's sole officer and director, who is not a professional business analyst. In analyzing prospective business opportunities, management will consider such matters as available technical, financial and managerial resources; working capital and other financial requirements; history of operations, if any; prospects for the future; nature of present and expected competition; the quality and experience of management services which may be available and the depth of that management; the potential for further research, development, or exploration; specific risk factors not now foreseeable, but which then may be anticipated to impact the proposed activities of the Company; the potential for growth or expansion; the potential for profit; the perceived public recognition alternatively, acceptance of products, services, or trades; name identification; and other relevant factors.  In many instances, it is anticipated that the historical operations of a specific business opportunity may not necessarily be indicative of the potential for the future because of a variety of



18



factors, including, but not limited to, the possible need to expand substantially, shift marketing approaches, change product emphasis, change or substantially augment management, raise capital and the like.  Management intends to meet personally with management and key personnel of the target business entity as part of its investigation.  To the extent possible, the Company intends to utilize written reports and personal investigation to evaluate the above factors.  Prior to making a decision to participate in a business opportunity, the Company will generally request that it be provided with written materials regarding the business opportunity containing as much relevant information as possible, including, but not limited to, such items as a description of products, services and company history; management resumes; financial information; available projections, with related assumptions upon which they are based; an explanation of proprietary products and services; evidence of existing patents, trademarks, alternatively, service marks, or rights thereto; present and proposed forms of compensation to management; a description of transactions between such company and its affiliates during the relevant periods; a description of present and required facilities; an analysis of risks and competitive conditions; a financial plan of operation and estimated capital requirements; audited financial statements, or if they are not available at that time, un-audited financial statements, together with reasonable assurance that audited financial statements would be able to be produced within a required period of time; and the like.


     The Company will be subject to the reporting requirements of the Exchange Act 60 days after the initial filing of this Registration Statement on Form 10-SB.  Under the Exchange Act, any merger or acquisition candidate will become subject to the same reporting requirements of the Exchange Act as the Company following consummation of any merger or acquisition.  Thus, in the event the Company successfully completes the acquisition of or merger with an operating business entity, that business entity must provide audited financial statements for at least two most recent fiscal years or, in the event the business entity has been in business for less than two years, audited financial statements will be required from the period of inception.  Acquisition candidates that do not have  or are  unable  to  obtain  the  required  audited  statements  may not be considered appropriate for acquisition.  The Company will not acquire or merge with any entity which cannot provide audited financial statements at or within a required period after closing of the proposed transaction.  The audited financial statements of the acquired company must be furnished within 15 days following the effective date of a business combination.


     When a non-reporting company becomes the successor of a reporting company by merger, consolidation, exchange of securities, and acquisition of assets or otherwise, the successor company is required to provide in a Current Report on Form 8-K the same kind of information that would appear in a Registration Statement or an Annual Report on Form 10-KSB, including audited and pro forma financial statements.  The Commission treats these Form 8-K filings in the same way it treats the Registration Statements on Form 10-SB filings. The Commission subjects them to its standards of review selection, and the Commission may issue substantive comments on the sufficiency of the disclosures represented.  If the Company enters into a business combination with a non-reporting company, such non-reporting company will not receive reporting status until the Commission has determined that it will not review the 8-K filing or all of the comments have been cleared by the Commission.


     Management believes that various types of potential merger or acquisition candidates might find a business combination with the Company to be attractive. These include acquisition candidates



19



desiring to create a public market for their shares in order to enhance liquidity for current stockholders, acquisition candidates, which have long-term plans for raising capital through public sale of securities and believe that the possible prior existence of a public market for their securities would be beneficial, and acquisition candidates which plan to acquire additional assets through issuance of securities rather than for cash, and believe that the possibility of development of a public market for their securities will be of assistance in that process.  Acquisition candidates, who have a need for an immediate cash infusion, are not likely to find a potential business combination with the Company to be an attractive alternative. Nevertheless, the Company has not conducted market research and is not aware of statistical data that would support the perceived benefits of a merger or acquisition transaction for the owners of a business opportunity. The Company is unable to predict when it may participate in a business opportunity. It expects, however, that the analysis of specific proposals and the selection of a business opportunity may take several months or more.  There can also be no assurances that we are able to successfully pursue a business opportunity.  In that event, there is a substantial risk to the Company that failure to complete a business combination will significantly restrict its business operation and force management to cease operations and liquidate the Company.


ACQUISITION OF A BUSINESS OPPORTUNITY


     In implementing a structure for a particular business acquisition, the Company may become a party to a merger, consolidation, and reorganization, joint venture or licensing agreement with another entity. It may also acquire stock or assets of an existing business.  In connection with a merger or acquisition, it is highly likely that an amount of stock constituting control of the Company would either be issued by the Company or be purchased from the current principal stockholder of the Company by the acquiring entity or its affiliates, and accordingly, the shareholders of the target company, typically, become the majority of the shareholders of the combined company, the board of directors and officers of the target company become the new board and officers of the combined company and often the name of the target company becomes the name of the combined company.


     There are currently no arrangements that would result in a change of control of the Company. It is anticipated that any securities issued as a result of consummation of a business combination will be issued in reliance upon one or more exemptions from registration under applicable federal and state securities laws to the extent that such exemptions are available.  In some circumstances, however, as a negotiated element of its transaction, the Company may agree to register all or a part of such securities immediately after the transaction is consummated or at specified times thereafter.  If such registration occurs, of which there can be no assurance; it will be undertaken by the surviving entity after the Company has entered into an agreement for a business combination or has consummated a business combination and the Company is no longer considered a dormant shell company.  Until this occurs, the Company will not attempt to register any additional securities.


     The issuance of substantial additional securities and their potential sale into any trading market may have a depressive effect on the market value of the Company's securities in the future if such a market develops, of which there is no   assurance.   There have been no plans,   proposals,   arrangements   or understandings with respect to the sale or issuance of additional securities. While the actual terms of a transaction to which the Company may be a party cannot be predicted, it may



20



be expected that the parties to the business transaction will find it desirable to avoid the creation of a taxable event and thereby structure the acquisition in a "tax-free” reorganization under Sections 351 or 368 of the Internal Revenue Code of 1986, as amended.


     In order to obtain tax-free treatment, it may be necessary for the owners of the surviving entity to own 80% or more of the voting stock of the surviving entity.  In this event, the shareholders of the Company would retain less than 20% of the issued and outstanding shares of the surviving entity, which could result in significant dilution in the equity of such shareholders.  However, treatment as a tax-free reorganization will not be a condition of any future business combination and if it is not the case, the Company will not obtain an opinion of counsel that the reorganization will be tax-free. With respect to any merger or acquisition, negotiations with target company management are expected to focus on the percentage of the Company which the target company shareholders would acquire in exchange for all of their shareholdings in the target company. Depending upon, among other things, the target company's assets and liabilities, the Company’s only shareholder will in all likelihood hold a substantially lesser percentage ownership interest in the Company following any merger or acquisition. The percentage ownership may be subject to significant reduction in the event the Company acquires a target company with substantial assets.


     Any merger or acquisition effected by the Company can be expected to have a significant dilutive effect on the percentage of shares held by the Company's shareholder at such time. The Company will participate in a business opportunity only after the negotiation and execution of appropriate agreements. Although the terms of such agreements cannot be predicted, generally such agreements will require certain representations and warranties of the parties thereto, will specify certain events of default, will detail the terms of closing and the conditions  which  must be  satisfied  by the  parties  prior to and after  such closing, outline the manner of bearing costs, including costs associated with the Company’s attorneys and accountants, and will include miscellaneous other terms.  It is anticipated that the Company will not be able to diversify, but will essentially be limited to the acquisition of one business opportunity because of the Company's limited financing.  This lack of diversification will not permit the Company to offset potential losses from one business opportunity against profits from another, and should be considered an adverse factor affecting any decision to purchase the Company’s securities.  There are no present plans, proposals, arrangements or understandings to offer the shares of the post-merger companies to third parties if any mergers occur, and there is no marketing plan to distribute the shares of the post-merger companies to third parties.  Mr. Meuse has not had any preliminarily contact, agreements or understandings with anyone to help sell these shares.


     The Company intends to seek to carry out its business plan as discussed herein. In order to do so, the Company needs to pay ongoing expenses, including particularly legal and accounting fees incurred in conjunction with preparation and filing of this registration statement, and in conjunction with future compliance with its on-going reporting obligations.


     The Company does not intend to make any loans to any prospective merger or acquisition candidates or unaffiliated third parties. The Company has adopted a policy that it will not seek an acquisition or merger with any entity in which the Company's officer, director, and controlling shareholder or any affiliate or associate serves as an officer or director or holds any ownership interest.



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LIQUIDITY AND CAPITAL RESOURCES


     It is the belief of management that sufficient working capital necessary to support and preserve the integrity of the corporate entity will be present. However, there is no legal obligation for either management or significant stockholders to provide additional future funding.  Should this pledge fail to Provide financing, the Company has not identified any alternative sources. Consequently, there is substantial doubt about the Company's ability to continue as a going concern.


     The Company has no current plans, proposals, arrangements or understandings with respect to the sale or issuance of additional securities prior to the location of a merger or acquisition candidate.  Accordingly, there can be no assurance that sufficient funds will be available to the Company to allow it to cover the expenses related to such activities.


     The Company's need for capital may change dramatically because of any business acquisition or combination transaction.  There can be no assurance that the Company will identify any such business, product, technology or company suitable for acquisition in the future.  Further, there can be no assurance that the Company would be successful in consummating any acquisition on favorable terms or that it will be able to profitably manage the business, product, technology or company it acquires.


     Regardless of whether the Company’s cash assets prove to be inadequate to meet the Company’s operational needs, the Company might seek to compensate providers of services by issuances of stock in lieu of cash. For information as to the Company’s policy concerning payment for consulting services, see Certain Relationships and Transactions.



ITEM 3 - DESCRIPTION OF PROPERTY


     The Company currently maintains a mailing address at 360 Main Street, Washington, Virginia.  The Company’s telephone number there is (540)675-3149. Other than this mailing address, the Company does not currently maintain any other office facilities, and does not anticipate the need for maintaining office facilities at any time in the near future. The Company pays no rent or other fees for the use of the mailing address as these offices are used virtually full-time by other businesses of the Company's President.


     It is likely that the Company will not establish an office until it has Completed a business acquisition transaction, but it is not possible to predict what   arrangements  will  actually  be  made  with  respect  to  future  office facilities.


ITEM 4 - SECURITIES OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT


     The following table sets forth certain information regarding the beneficial ownership of the Company’s common stock by (i) each stockholder known by the Company to be the beneficial owner of more than 5% of the Company’s common Stock; (ii) by each director and executive



22



officer of the Company; and (iii) by All executive officer and directors of the Company as a group.  Each of the persons named in the table has sole voting and investment power with respect to the shares beneficially owned.


Name and address

 

Number of Shares

 

% of class

Beneficially Owned

--------------------------------

 

----------------------

 

--------------------------------

Belmont Partners, LLC

 

100,000

 

100%

360 Main Street

 

 

 

 

Washington, VA 22747

 

 

 

 


                                                               



ITEM 5 - DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS


     The names, ages and positions of the Company's directors and executive officers are as follows:


Name

 

Age

 

Position Held and Tenure

---------------------

 

---------------------

 

--------------------------------------------

Joseph J. Meuse

 

37

 

President, Chief Executive Officer,

Chief Financial Officer and Secretary

 

 

 

 

 




     The director named above will serve until the next annual meeting of the Company's stockholders or until any successors are duly elected and have qualified.   Directors  will  be  elected  for  one-year  terms  at  the  annual stockholders meeting.  Officers will hold their positions at the pleasure of the Board of directors, absent any employment agreement, of which none currently exists or is contemplated.  There is no arrangement or understanding between any of the directors or officers of the Company and any other person pursuant to which any director or officer was or is to be selected as a director or officer, and there is no arrangement, plan or understanding as to whether non-management shareholders will exercise their voting rights to continue to elect the current Directors to the Company's board. There are also no arrangements, agreements or understandings between non-management  shareholders that may directly or indirectly participate in or influence the management of the Company's affairs.


     Mr. Meuse and any other directors and officers hereafter appointed or elected will devote their time to the Company’s affairs on an as needed basis, this, depending on the circumstances, could amount to as little as two hours per month, or more than forty hours per month, but more than likely will encompass less than four (4) hours per month.  There are no agreements or understandings for any officer or director to resign at the request of another person,  and none of the officers or directors  are acting on behalf of, or will act at the direction of, any other person.


BIOGRAPHICAL INFORMATION




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     Joseph J. Meuse attended, from the College of William and Mary. Mr. Meuse been a practicing corporate restructuring and reverse mergers since 1995 and has been a Managing Partner at Belmont Partners, LLC since 1995.


     The Company's sole officer and director, Mr. Meuse, has been involved in rehabilitating dormant shell companies in the past for acquisition by target companies.


INDEMNIFICATION OF OFFICERS AND DIRECTORS


     The Company's By-Laws provide for the indemnification of its directors, Officers, employees, and agents, under certain circumstances, against attorneys fees and other expenses  incurred by them in any litigation to which they becomeA party arising from their association with or activities on behalf of the Company.  The Company will also bear the expenses of such litigation for any of its directors, officers, employees, or agents, upon such persons promise to repay the Company therefore if it is ultimately determined that any such person shall not have been entitled to indemnification.  This indemnification policy could result in substantial expenditures by the Company, which it may be unable to recoup.


CONFLICTS OF INTEREST


     None of the officers of the Company will devote more than a small portion of their respective time to the affairs of the Company.  There will be occasions when the time requirements of the Company’s business conflict with the demands of the officers’ other business and investment activities.  Such conflicts may require that the Company attempt to employ additional personnel.  There is no assurance that the services of such persons will be available or that they can be obtained upon terms favorable to the Company.


     The officers, directors and principal shareholders of the Company may actively negotiate for the purchase of a portion of their common stock as a condition  to,  or  in  connection   with,  a  proposed  merger  or  acquisition transaction.  It is anticipated that a substantial premium may be paid by the purchaser in conjunction with any sale of shares by the Company’s officers, directors and principal shareholders made as a condition to, or in connection with, a proposed merger or acquisition transaction.  The fact that a substantial premium may be paid to members of Company management to acquire their shares creates a conflict of interest for them and may compromise their state law a fiduciary duty to the Company’s other shareholders.  In making any such sale, members of Company management may consider their own personal pecuniary benefit rather  than  the  best  interests  of  the  Company  and  the  Company's  other shareholders, and the other shareholders are not expected to be afforded the opportunity  to  approve  or  consent  to  any  particular  buy-out  transaction involving shares held by members of Company management.


     It is not currently anticipated that any salary, consulting fee, or finders fee shall be paid to any of the Company's directors or executive officers, or to any  other  affiliate  of  the  Company  except  as  described  under  Executive Compensation above. Although management has no current plans to cause the Company to do so, it is possible  that the  Company will enter into an agreement with an  acquisition  candidate  requiring  the sale of all or a portion  of the Common  Stock held by the  Company's  current  stockholders  to the  acquisition candidate or principals  thereof,  or to other



24



individuals or business entities, or requiring some other form of payment to the Company's  current  stockholders, or requiring the future employment of specified officers and payment of salaries to them. It is more likely than not that any sale of securities by the Company's current   stockholders to an acquisition candidate would be at a price substantially higher than that originally paid by such stockholders. Any payment to current stockholders in the context of an acquisition involving the Company would be determined entirely by the largely unforeseeable terms of a future agreement with an unidentified business entity.



ITEM 6 - EXECUTIVE COMPENSATION


     No officer or director has received any compensation from the Company since the inception of the Company.  Until the Company acquires additional capital, it is not anticipated that any officer or director will receive compensation from the Company other than reimbursement for out-of-pocket expenses incurred on behalf of the Company.


     The Company has no stock option, retirement, pension, or profit sharing programs for the benefit of directors, officers or other employees, but the Board of Directors may recommend adoption of one or more such programs in the future.



ITEM 7 - CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS


     On March 13, 2007, the Company sold 100,000 shares of restricted common stock at $0.001 per share for gross proceeds of $100.00, pursuant to a subscription agreement, to Belmont Partners, LLC. The Company relied upon Section 4(2) of the Securities Act of 1933, as amended, for an exemption from registration of these shares and no underwriter was used in this transaction. Because of this transaction, Joseph Meuse, Managing Director of Belmont Partners, LLC, became the Company's controlling shareholder, owning 100,000 shares of the 100,000 issued and outstanding shares of the Registrant's common stock, or approximately 100.00%, at the close of business on March 13, 2007.


     It is the Commission's position that securities issued by a "shell" company such as Clopton House Corporation cannot be sold under the exemption from registration  provided by Rule 144 promulgated  under the Securities Act of 1933 (the "Act"), but must be registered under the Securities Act of 1933. Accordingly, the securities sold to Joseph Meuse will be registered under the Act prior to resale.  Any other securities issued to individuals in the capacity of management, affiliates, control persons and promoters will also be registered with the Commission prior to resale and shall be issued with appropriate restricted legend to reflect the registration requirements.



ITEM 8 - DESCRIPTION OF SECURITIES


     The authorized capital stock of the Company consists of 35,000,000 shares of common stock, par value $0.001 per share, of which there are 100,000 shares issued and outstanding.




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     The Company is not authorized to issue any shares of Preferred Stock.  The following summarizes the important provisions of the Company’s capital stock. For more information about the Company's capital stock, please see the copy of our Certificate of Incorporation and By-Laws, which are being filed as exhibits to this Registration Statement.


COMMON STOCK


     Holders of shares of common stock are entitled to one vote for each share on all matters to be voted on by the stockholders, have no preemptive rights; have no conversion or redemption rights or sinking fund; do not have cumulative voting rights; and share ratably in dividends, if any, as may be declared from time to time by the Board of Directors in its discretion from funds legally available therefore. In the event of a liquidation,  dissolution or winding up of the  company,  the  holders of common  stock are  entitled to share pro rata all assets  remaining  after  payment  in  full  of  all  liabilities.  All of the outstanding shares of common stock are fully paid and non-assessable.


DIVIDENDS


     Dividends, if any, will be contingent upon the Company's revenues and earnings, if any, and capital requirements and financial conditions. The payment of dividends, if any, will be within the discretion of the Company’s Board of Directors.  The Company presently intends to retain all earnings, if any, and accordingly, the Board of Directors does not anticipate declaring any dividends prior to a business combination.


TRADING OF SECURITIES IN SECONDARY MARKET


     The Company presently has 100,000 shares of common stock issued and outstanding, of which all are "restricted securities," as that term is defined under Rule 144 promulgated under the Securities Act, in that such shares were issued in private transactions not involving a public offering.


     It is the Commission's position that securities issued by a "shell" company such as Clopton House Corporation, cannot be sold under the exemption from registration provided by Rule 144 promulgated under the Securities Act of 1933 (the "Act"), but must be registered under the Securities Act of 1933. Accordingly, the securities sold to Joseph Meuse will be registered under the Act prior to resale.  Any other securities issued to individuals in the capacity of management, affiliates, control persons and promoters will also be registered with the Commission prior to resale and shall be issued with appropriate restricted legend to reflect the registration requirements.



PART II



ITEM 1 - MARKET PRICE AND DIVIDENDS ON THE REGISTRANT'S COMMON EQUITY AND OTHER STOCKHOLDER MATTERS


MARKET PRICE



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     There is no trading market for the Company’s common stock as of the filing of this Registration Statement.


OPTIONS, WARRANTS AND OTHER EQUITY ITEMS


     There  are  no  outstanding  options  or  warrants  to  purchase,  nor  any securities convertible into, the Company's common shares.  Additionally, there are no shares that could be sold pursuant to Rule 144 under the Securities Act or that the Company has agreed to register under the Securities Act for sale by security holders.  Further, there are no common shares of the Company being, or proposed to be, publicly offered by the Company.


HOLDERS


     As of March 13, 2007, there is approximately one holder of the Company's common stock.


DIVIDENDS


     The Company has not paid any dividends to date, and has no plans to do so in the near future.



ITEM 2 - LEGAL PROCEEDINGS


     The Company is not a party to any pending legal proceedings, and no such proceedings are known to be contemplated.



ITEM 3 - CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS


     There are not and have not been any disagreements between the Company and its accountants on any matter of accounting principles, practices or financial statement disclosure.



ITEM 4 - RECENT SALES OF UNREGISTERED SECURITIES


     On March 13, 2007, the Company sold 100,000 shares of restricted common stock at $0.001 per share for gross proceeds of $100.00, pursuant to a subscription agreement, to Belmont Partners, LLC, who became the Companies only shareholder.  The Company relied upon Section 4(2) of the Securities Act of 1933, as amended, for an exemption from registration of these shares and no underwriter was used in this transaction.  Because of this transaction, Joseph Meuse, Managing Director of Belmont Partners, LLC, became the Company's controlling shareholder, owning 100,000 shares of the 100,000 issued and outstanding shares of the Registrant's common stock, or approximately 100.00%, at the close of business March 13, 2007.


     The foregoing sale was exempt from registration under the Securities Act of 1933, as amended (the "Securities Act"), pursuant to Section 4(2) on the basis



27



that the transaction did not involve a public offering.



ITEM 5 - INDEMNIFICATION OF DIRECTORS AND OFFICERS


     The Company's By-Laws provide for the indemnification of its, directors, officers, employees, and agents, under certain circumstances, against attorneys fees and other expenses incurred by them in any litigation to which they become a party arising from their association with or activities on behalf of the Company.  The Company will also bear the expenses of such litigation for any of its directors, officers, employees, or agents, upon such persons promise to repay the Company therefore if it is ultimately determined that any such person shall not have been entitled to indemnification.  This indemnification policy could result in substantial expenditures by the Company, which it may be unable to recoup.










                


        














SIGNATURES


     Pursuant to the requirements of Section 12 of the Securities Exchange Act of 1934, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized.





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Clopton House Corporation




Date: June 25, 2007

   

/s/ Joseph J. Meuse

------------------------        

-----------------------------------

                          Joseph J. Meuse

                          President and Chief Executive Officer













29



Clopton House Corporation

Financial Statements

From Inception (December 18, 2006)
To December 31, 2006



30



Clopton House Corporation

Index to Financial Statements

December 31, 2006

--------------------------------------------------------------------------------




                                                                         Page

                                                                        Number

                                                                       ---------


Independent Auditor's Report                                                 1


Financial Statements


Balance Sheet                                                                2


Statement of Income and Retained Earnings                                    3


Statement of Cash Flows                                                      4


Notes to Financial Statements                                                5








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PS STEPHENSON & CO., P.C.

Certified Public Accountants

1609 N. Richmond Road

Wharton, Texas 77488

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors Clopton House Corporation

We have audited the accompanying balance sheet of Clopton House Corporation (a Delaware corporation) as of December 31, 2006, and the related statements of income and retained earnings, and cash flows for the period from inception (December 18, 2006) to December 31, 2006. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Clopton House Corporation as of December 31, 2006, and the results of its operations and its cash flows for the initial period then ended in conformity with accounting principles generally accepted in the United States of America.

PS STEPHENSON & CO., P.C.

Wharton, Texas

June 15, 2007


(979) 532-5964 • 1-800-509-1964 • FAX: (979) 532-0954






1



32




Clopton House Corporation

Balance Sheet

December 31, 2006

--------------------------------------------------------------------------------



            Assets


Current assets                                                              

                                                                            


  Cash and cash equivalents                             $               -

                                                       ---------------------

     Total current assets                                               -

                                                       ---------------------

     Total assets                                       $               -

                                                       =====================

            Liabilities and Stockholders' Equity

Total liabilities                                       $               -

                                                                            


Stockholders' Equity:


  Common Stock; Par value $.001; 35,000,000 shares authorized;              

  -0- shares issued and outstanding                                     -


  Additional paid-in capital                                            -


  Retained earnings                                                     -

                                                       ---------------------

                                                                            

    Total stockholders' equity                                          -

                                                       ---------------------

      Total Liabilities and Stockholders' Equity        $               -

                                                       =====================






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




2




33





Clopton House Corporation

Statement of Income and Retained Earnings

From Inception (December 18, 2006) to December 31, 2006

--------------------------------------------------------------------------------




Revenues                                                $               -

                                                                            

Operating and administrative expenses                                   -

                                                       ---------------------

Income from operations                                                  -

                                                                            

Other income (expense)                                                  -

                                                       ---------------------

Net income                                                              -

                                                                            

Retained Earnings, at Inception (December 18, 2006)                     -

                                                       ---------------------

Retained Earnings, End of Year                          $               -

                                                       =====================

3



34





Clopton House Corporation

Statement of Cash Flows

From Inception (December 18, 2006) to December 31, 2006

--------------------------------------------------------------------------------




Cash Flows Provided From Operating Activities


  Net income                                            $               -

                                                                            

  Adjustments to reconcile net income to net cash                       -

  Provided (used) by operating activities:                                

                                                       ---------------------

      Net cash provided (used) by operating activities                  -

                                                                            

Cash Flows Provided From Investing Activities                           -

                                                       ---------------------

Cash Flows Used By Financing Activities                                 -

                                                       ---------------------

Net increase (decrease) in cash and cash equivalents                    -

Cash and cash equivalents, at inception                                 -

                                                       ---------------------

Cash and cash equivalents, end of period                $               -

                                                       =====================


Supplemental disclosure

  Interest paid during the period                       $               -

                                                       =====================

4



35