10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)
[X]	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: September 30, 2012
Or
[  ]	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ____________ to _____________
Commission File Number: 000-52942
THE ENGRAVING MASTERS, INC.
(Exact name of registrant as specified in its charter)
Nevada		20-5543728
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
3717 W. Woodside, Spokane, WA		99208
(Address of principal executive offices)		(Zip Code)
(509) 599-2728
(Registrant's telephone number, including area code)
(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  

Yes [X]   No [   ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes [   ]   No [X]

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

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

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)

Yes [X]   No [   ]

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date:

Common Stock, $0.001 par value	7,630,000 shares
(Class)	(Outstanding as at November 14, 2012)

THE ENGRAVING MASTERS, INC.

Table of Contents

	Page
PART I - FINANCIAL INFORMATION	3
Unaudited Financial Statements	3
Condensed Balance Sheets	4
Condensed Statements of Operations	5
Condensed Statements of Cash Flows	6
Notes to Condensed Financial Statements	7
Management's Discussion and Analysis of Financial Condition and Results of Operations	10
Controls and Procedures	11
PART II - OTHER INFORMATION	13
Legal Proceedings	13
Exhibits and Reports on Form 8-K	13
SIGNATURES	14

PART I - FINANCIAL INFORMATION

Unaudited Financial Statements

The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles for interim financial reporting and pursuant to the rules and regulations of the Securities and Exchange Commission ("Commission").  While these statements reflect all normal recurring adjustments which are, in the opinion of management, necessary for fair presentation of the results of the interim period, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. For further information, refer to the financial statements and footnotes thereto, which are included in the Company's December 31, 2011, Annual Report on Form 10-K previously filed with the Commission on March 29, 2012.

3

The Engraving Masters, Inc.

(A Development Stage Company)

Condensed Balance Sheets

	September 30,		December 31,
	2012		2011
	(unaudited)		(audited)
Assets
Current assets:
Cash	$	492	$	314
Total current assets		492		314
Total assets	$	492	$	314
Liabilities and Stockholders’ (Deficit)
Current liabilities:
Note payable	$	2,000	$	2,000
Total current liabilities		2,000		2,000
Total liabilities		2,000		2,000
Stockholders’ (deficit)
Preferred stock, $0.001 par value, 100,000,000 shares
authorized, no shares issued and outstanding		-		-
Common stock, $0.001 par value, 100,000,000 shares
authorized, 7,630,000 shares issued and outstanding
as of 9/30/12 and 12/31/11		7,630		7,630
Additional paid-in capital		75,445		62,945
Deficit accumulated during development stage		(84,583)		(72,261)
Total stockholders’ (deficit)		(1,508)		(1,686)
Total liabilities and stockholders’ (deficit)	$	492	$	314

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

4

The Engraving Masters, Inc.

(A Development Stage Company)

Condensed Statements of Operations

(Unaudited)

	Three Months Ended				Nine Months Ended				Inception
	September 30,				September 30,				(September 11, 2006) to
	2012		2011		2012		2011		September 30, 2012
Revenue	$	-	$	-	$	-	$	-	$	-
Expenses:
Depreciation expense		-		-		-		242		1,521
General and administrative expenses		2,688		3,056		12,322		11,401		83,062
Total expenses		2,688		3,056		12,322		11,643		84,583
Loss before provision for income taxes		(2,688)		(3,056)		(12,322)		(11,643)		(84,583)
Provision for income taxes		-		-		-		-		-
Net loss	$	(2,688)	$	(3,056)	$	(12,322)	$	(11,643)	$	(84,583)
Weighted average number of
common shares outstanding - basic		7,630,000		7,630,000		7,630,000		7,630,000
Net loss per share - basic	$	(0.00)	$	(0.00)	$	(0.00)	$	(0.00)

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

5

The Engraving Masters, Inc.

(A Development Stage Company)

Condensed Statements of Cash Flows

(Unaudited)

	For the nine months ended				Inception
	September30,				(September 11, 2006) to
	2012		2011		September 30, 2012
Operating activities
Net loss	$	(12,322)	$	(11,643)	$	(84,583)
Adjustments to reconcile net loss to
net cash used by operating activities:
Depreciation		-		242		1,521
Changes in operating assets and liabilities:
Increase in accounts payable		-		-		-
Net cash (used) by operating activities		(12,322)		(11,401)		(83,062)
Investing activities
Purchase of fixed assets		-		-		(1,521)
Net cash (used) by investing activities		-		-		(1,521)
Financing activities
Proceeds from notes payable		-		2,000		2,000
Donated capital		12,500		10,000		40,975
Issuances of common stock		-		-		42,100
Net cash provided by financing activities		12,500		12,000		85,075
Net increase (decrease) in cash		178		599		492
Cash - beginning of the year		314		191		-
Cash - end of the year	$	492	$	790	$	492
Supplemental disclosures:
Interest paid		-		-		-
Income taxes paid		-		-		-

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

6

The Engraving Masters, Inc.

(A Development Stage Company)

Notes to Condensed Financial Statements

Note 1 - Basis of presentation

The interim financial statements included herein, presented in accordance with United States generally accepted accounting principles and stated in US dollars, have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC).  Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading.

These statements reflect all adjustments, consisting of normal recurring adjustments, which, in the opinion of management, are necessary for fair presentation of the information contained therein.  It is suggested that these interim financial statements be read in conjunction with the financial statements of the Company for the year ended December 31, 2011 and notes thereto included in the Company's annual report on Form 10-K.  The Company follows the same accounting policies in the preparation of interim reports.

Results of operations for the interim periods are not indicative of annual results.

Note 2 - History and organization of the company

The Company was organized September 11, 2006 (Date of Inception) under the laws of the State of Nevada, as The Engraving Masters, Inc.  The Company is authorized to issue up to 100,000,000 shares of its common stock and 100,000,000 shares of preferred stock, each with a par value of $0.001 per share.

The business of the Company is to sell engraved awards and collectibles via the Internet.  The Company has limited operations and in accordance with ASC 915-10, “Development Stage Entities,” the Company is considered a development stage company.  

Note 3 - Going concern

The Company’s financial statements are prepared using generally accepted accounting principles in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and allow it to continue as a going concern. The Company had an accumulated deficit of $84,583, as of September 30, 2012. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations.

In order to continue as a going concern, the Company will need, among other things, additional capital resources.  The Company is contemplating conducting an offering of its debt or equity securities to obtain additional operating capital.  The Company is dependent upon its ability, and will continue to attempt, to secure equity and/or debt financing.  There are no assurances that the Company will be successful and without sufficient financing it would be unlikely for the Company to continue as a going concern.

The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might result from this uncertainty.

7

The Engraving Masters, Inc.

(A Development Stage Company)

Notes to Condensed Financial Statements

Note 4 - Accounting Policies and Procedures

Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.  Actual results could differ from those estimates.

Revenue recognition

The Company recognizes revenue when all of the following conditions are satisfied: (1) there is persuasive evidence of an arrangement; (2) the amount of fees to be paid by the customer is fixed or determinable; (3) the product has been provided to the customer; and (4) the collection of our fees is probable.  The Company will record revenue when it is realizable and earned and the product has been shipped to the customer.

Loss per share

Net loss per share is provided in accordance with FASB ASC 260-10, “Earnings per Share”.  Basic loss per share is computed by dividing losses available to common stockholders by the weighted average number of common shares outstanding during the period.  Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive. The Company had no dilutive common stock equivalents, such as stock options or warrants as of September 30, 2012.

Recent Accounting Pronouncements

The company evaluated all of the recent accounting updates and deemed that they would not have a material effect on the financial position, results of operations or cash flows of the company.

Note 5 - Debt and interest expense

Through September 30, 2012, a non-affiliated third-party loaned the Company an aggregate of $2,000 in cash.  The note bears no interest and is due upon demand.  

Note 6 - Stockholders’ equity

The Company is authorized to issue 100,000,000 shares of $0.001 par value common stock and 100,000,000 shares of $0.001 par value preferred stock.

From the inception of the Company through September 30, 2012, an officer and director of the Company donated cash in the amount of $40,975.  The entire amount is considered to be additional paid-in capital.

As of September 30, 2012, there have been no other issuances of common stock.

Note 7 - Warrants and options

As of September 30, 2012, there were no warrants or options outstanding to acquire any additional shares of common stock.

8

The Engraving Masters, Inc.

(A Development Stage Company)

Notes to Condensed Financial Statements

Note 8 - Related party transactions

From the inception of the Company through September 30, 2012, an officer and director of the Company donated cash in the amount of $40,975.  The entire amount is considered to be additional paid-in capital.

The Company does not lease or rent any property.  Office services are provided without charge by an officer and director of the Company.  Such costs are immaterial to the financial statements and, accordingly, have not been reflected therein.  The officers and directors of the Company are involved in other business activities and may, in the future, become involved in other business opportunities.  If a specific business opportunity becomes available, such persons may face a conflict in selecting between the Company and their other business interests.  The Company has not formulated a policy for the resolution of such conflicts.

Note 9 - Subsequent Events

The Company’s Management has reviewed all material events through the date of this report in accordance with ASC 855-10, and believes there are no further material subsequent events to report.

9

Management's Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

This Quarterly Report contains forward-looking statements about The Engraving Masters, Inc.’s business, financial condition and prospects that reflect management’s assumptions and beliefs based on information currently available.  We can give no assurance that the expectations indicated by such forward-looking statements will be realized.  If any of our management’s assumptions should prove incorrect, or if any of the risks and uncertainties underlying such expectations should materialize, The Engraving Master’s actual results may differ materially from those indicated by the forward-looking statements.

The key factors that are not within our control and that may have a direct bearing on operating results include, but are not limited to, acceptance of our services, our ability to expand our customer base, managements’ ability to raise capital in the future, the retention of key employees and changes in the regulation of our industry.

There may be other risks and circumstances that management may be unable to predict.  When used in this Quarterly Report, words such as,  "believes,"  "expects," "intends,"  "plans,"  "anticipates,"  "estimates" and similar expressions are intended to identify forward-looking statements, although there may be certain forward-looking statements not accompanied by such expressions.

Management’s Discussion and Results of Operation

We have made substantial effort to become an online retailer of engraved products and awards, consisting of trophies, plaques, medals, statuettes and other recognition awards capable of being engraved with various congratulatory or personal phrases, for the purpose of recognizing achievements in sports, academics or other celebrations.  Since our inception, we have worked with the singular goal of executing our business plan and establishing a base of operations.  Unfortunately, we generated no revenues in any period since our inception.  We have no sources of revenues and cannot forecast the amount, if any, of revenues we will generate for the foreseeable future.

In the execution of our business, we incur depreciation expense related to our computer equipment, as well as various general and administrative costs.  General and administrative expenses mainly consist of office expenditures and accounting and legal fees.  During the three months ended September 30, 2012, our expenses of $2,688 consisted solely of general and administrative expenses.  In the comparable three month period ended September 30, 2011, our expenses of $3,056 also consisted solely of general and administrative expenses.  We did not record depreciation expense in 2012, as our computer assets were fully depreciated during 2011.  In the three months ended September 30, 2012, our net loss totaled $2,688, compared to a net loss of $3,056 in the comparable period ended September 30, 2012.  

In the nine month period ended September 30, 2012, total expenses were $12,322, all of which is attributed to general and administrative purposes.  Comparatively, total expenses in the nine month period ended September 30, 2011 was $11,643, of which general and administrative expenses were $11,401 and depreciation expense was $242.  Without having generated revenues during the nine month periods ended September 30, 2012 and 2011, we incurred net losses of $12,322 and $11,643, respectively.

Aggregate operating expenses from our inception on September 11, 2006 through September 30, 2012 were $84,583, of which $1,521 is related to depreciation expense and $83,062 in general and administrative expenses.  No development related expenses have been or will be paid to our affiliates.  We expect to continue to incur general and administrative expenses for the foreseeable future, although we cannot estimate the extent of these costs.  As a result of not having revenues and incurring ongoing expenses related to the implementation of our business, we have experienced net losses in all periods since our inception on September 11, 2006.  Since our inception, we have accumulated net losses in the amount of $84,583.  We anticipate incurring ongoing operating losses and cannot predict when, if at all, we may expect these losses to plateau or narrow.  We have not been profitable from our inception through September 30, 2012.  There is significant uncertainty projecting future profitability due to our history of losses, lack of revenues, and due to our reliance on the performance of third parties on which we have no direct control.  

10

Generating sales in the next 12 months is important to support our business.  In order for us to achieve profitability and support our planned ongoing operations, we estimate that we must begin generating a minimum of $25,000 in sales in the next 12 months.  However, we cannot guarantee that we will generate any sales, let alone achieve that target.  As of the date of this quarterly report, we are a development stage company with no revenues and a limited operational history.  We have a website located at www.engravingmasters.com to serve as our sole method of attracting customers and generating sales.  We intend to operate solely as an online company.  All sales are expected to be realized through our website.  To date, we have not received any orders via the website.  

Our management believes that most organizations are postponing or suspending purchasing engraved award products, such as we sell.  As a result, we have decided to delay all marketing and promotional efforts.  We intended to implement search engine placement and keyword submission optimization services to increase the visibility of our website.  To date, we have not developed or implemented any marketing strategy.  

As of September 30, 2012, we had $492 of cash on hand, which our management believes these funds are not sufficient to implement our planned strategies and establish a base of operations over the next 12 months.  Our management expects that we will experience net cash out-flows for the fiscal year 2012, given the developmental nature of our business.  We cannot predict the stability of current or projected overhead or that we will generate sufficient revenues to maintain our operations without the need for additional capital.  Our management believes we may need to raise additional capital by issuing capital stock in exchange for cash in order to continue as a going concern.  There are no formal or informal agreements to attain such financing.  We cannot assure you that any financing can be obtained or, if obtained, that it will be on reasonable terms.  As such, our principal accountants have expressed substantial doubt about our ability to continue as a going concern because we have limited operations and have not fully commenced planned principal operations.  If our business fails, our investors may face a complete loss of their investment.  

Our management does not anticipate the need to hire additional full- or part- time employees over the next 12 months, as the services provided by our current officers appear sufficient at this time.  Our officers work for us on a part-time basis, and are prepared to devote additional time, as necessary.  We do not expect to hire any additional employees over the next 12 months.  

No development related expenses have been or will be paid to our affiliates.

Our management does not expect to incur research and development costs.

We do not have any off-balance sheet arrangements.

We currently do not own any significant plant or equipment that we would seek to sell in the near future.  

We have not paid for expenses on behalf of our directors.  Additionally, we believe that this fact shall not materially change.

We currently do not have any material contracts and or affiliations with third parties.

Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our Principal Executive Officer and Chief Financial Officer evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of the period covered by this Report. Based on that evaluation, it was concluded that our disclosure controls and procedures are not designed at a reasonable assurance level and are not effective to provide reasonable assurance that information we are required to disclose in the reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our principal executive and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure

11

Changes in internal controls over financial reporting  

There were no changes in our internal controls over financial reporting that occurred during the period covered by this report, which has materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting.

Limitations on Effectiveness of Controls and Procedures

In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs.

12

PART II - OTHER INFORMATION

Legal Proceedings

We are not a party to any material legal proceedings.

Exhibits and Reports on Form 8-K

Exhibit Number	Name and/or Identification of Exhibit
3	Articles of Incorporation & By-Laws
	(a) Articles of Incorporation *
	(b) By-Laws *
31	Rule 13a-14(a)/15d-14(a) Certifications
	(a) David Uddman
	(b) Jolene Uddman
32	Certification under Section 906 of the Sarbanes-Oxley Act (18 U.S.C. Section 1350)
101	Interactive Data File
	(INS) XBRL Instance Document
	(SCH) XBRL Taxonomy Extension Schema Document
	(CAL) XBRL Taxonomy Extension Calculation Linkbase Document
	(DEF) XBRL Taxonomy Extension Definition Linkbase Document
	(LAB) XBRL Taxonomy Extension Label Linkbase Document
	(PRE) XBRL Taxonomy Extension Presenation Linkbase Document
*  Incorporated by reference herein filed as exhibits to the Company’s Registration Statement on Form 10 previously filed with the SEC on November 28, 2007, and subsequent amendments made thereto.

13

SIGNATURES

Pursuant to the requirements of the Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

THE ENGRAVING MASTERS, INC.
(Registrant)
Signature	Title	Date
/s/ David Uddman	President and	November 14, 2012
David Uddman	Chief Executive Officer
/s/ Jolene Uddman	Chief Financial Officer	November 14, 2012
Jolene Uddman
/s/ Jolene Uddman	Chief Accounting Officer	November 14, 2012
Jolene Uddman

14

EX-31.1

CERTIFICATIONS

I, David Uddman, certify that:

1.

I have reviewed this quarterly report on Form 10-Q of The Engraving Masters, Inc.;

2.

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

3.

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

4.

The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.

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

b.

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

c.

Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.

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

5.

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

a.

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

b.

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:  November 14, 2012

/s/ David Uddman

     David Uddman

     President

EX-31.2

CERTIFICATIONS

I, Jolene Uddman, certify that:

1.

I have reviewed this quarterly report on Form 10-Q of The Engraving Masters, Inc.;

2.

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

3.

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

4.

The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.

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

b.

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

c.

Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.

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

5.

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

a.

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

b.

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:  November 14, 2012

/s/ Jolene Uddman

    Jolene Uddman

     Secretary/Treasurer and CFO

EX-32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of The Engraving Masters, Inc. (the "Company") on Form 10-Q for the period ended September 30, 2012, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, David Uddman, acting in the capacity as the Chief Executive Officer of the Company, and I, Jolene Uddman, acting in the capacity as the Chief Financial Officer of the Company, certify to the best of our knowledge, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)

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

(2)

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

/s/ David Uddman

     David Uddman

     Chief Executive Officer

     November 14, 2012

/s/ Jolene Uddman

     Jolene Uddman

     Chief Financial Officer

     November 14, 2012

XML

Note 4 - Accounting Policies and Procedures

3 Months Ended

Sep. 30, 2012

Notes

Note 4 - Accounting Policies and Procedures

Note 4 - Accounting Policies and Procedures

Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.  Actual results could differ from those estimates.

Revenue recognition

The Company recognizes revenue when all of the following conditions are satisfied: (1) there is persuasive evidence of an arrangement; (2) the amount of fees to be paid by the customer is fixed or determinable; (3) the product has been provided to the customer; and (4) the collection of our fees is probable.  The Company will record revenue when it is realizable and earned and the product has been shipped to the customer.

Loss per share

Net loss per share is provided in accordance with FASB ASC 260-10, “Earnings per Share”.  Basic loss per share is computed by dividing losses available to common stockholders by the weighted average number of common shares outstanding during the period.  Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive. The Company had no dilutive common stock equivalents, such as stock options or warrants as of September 30, 2012.

Recent Accounting Pronouncements

The company evaluated all of the recent accounting updates and deemed that they would not have a material effect on the financial position, results of operations or cash flows of the company.

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Note 3 - Going concern

3 Months Ended

Sep. 30, 2012

Notes

Note 3 - Going concern

Note 3 - Going concern

The Company’s financial statements are prepared using generally accepted accounting principles in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and allow it to continue as a going concern. The Company had an accumulated deficit of $84,583 as of September 30, 2012. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations.

In order to continue as a going concern, the Company will need, among other things, additional capital resources.  The Company is contemplating conducting an offering of its debt or equity securities to obtain additional operating capital.  The Company is dependent upon its ability, and will continue to attempt, to secure equity and/or debt financing.  There are no assurances that the Company will be successful and without sufficient financing it would be unlikely for the Company to continue as a going concern.

The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might result from this uncertainty.

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Condensed Balance Sheets (unaudited) (USD $)	Sep. 30, 2012	Dec. 31, 2011
Current assets:
Cash	$ 492	$ 314
Total current assets	492	314
Total assets	492	314
Current liabilities:
Note payable	2,000	2,000
Total current liabilities	2,000	2,000
Total liabilities	2,000	2,000
Stockholders' equity (deficit)
Preferred stock value
Common stock value	7,630	7,630
Additional paid-in capital	75,445	62,945
Deficit accumulated during development stage	(84,583)	(72,261)
Total stockholders' equity (deficit)	(1,508)	(1,686)
Total liabilities and stockholders' equity (deficit)	$ 492	$ 314	[1]

[1] The numbers in this column, for the year ended December 31, 2011, are derived from audited financials.

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Note 1 - Basis of presentation

3 Months Ended

Sep. 30, 2012

Notes

Note 1 - Basis of presentation

Note 1 - Basis of presentation

The interim financial statements included herein, presented in accordance with United States generally accepted accounting principles and stated in US dollars, have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC).  Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading.

These statements reflect all adjustments, consisting of normal recurring adjustments, which, in the opinion of management, are necessary for fair presentation of the information contained therein.  It is suggested that these interim financial statements be read in conjunction with the financial statements of the Company for the year ended December 31, 2011 and notes thereto included in the Company's annual report on Form 10-K.  The Company follows the same accounting policies in the preparation of interim reports.

Results of operations for the interim periods are not indicative of annual results.

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Note 2 - History and organization of the company

3 Months Ended

Sep. 30, 2012

Notes

Note 2 - History and organization of the company

Note 2 - History and organization of the company

The Company was organized September 11, 2006 (Date of Inception) under the laws of the State of Nevada, as The Engraving Masters, Inc.  The Company is authorized to issue up to 100,000,000 shares of its common stock and 100,000,000 shares of preferred stock, each with a par value of $0.001 per share.

The business of the Company is to sell engraved awards and collectibles via the Internet.  The Company has limited operations and in accordance with ASC 915-10, “Development Stage Entities,” the Company is considered a development stage company.

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Condensed Balance Sheets (unaudited) (Parenthetical) (USD $)	Sep. 30, 2012	Dec. 31, 2011
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	100,000,000	100,000,000
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	7,630,000	7,630,000
Common stock, shares outstanding	7,630,000	7,630,000

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Note 4 - Accounting Policies and Procedures: Loss per share (Policies)

3 Months Ended

Sep. 30, 2012

Policies

Loss per share

Loss per share

Net loss per share is provided in accordance with FASB ASC 260-10, “Earnings per Share”.  Basic loss per share is computed by dividing losses available to common stockholders by the weighted average number of common shares outstanding during the period.  Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive. The Company had no dilutive common stock equivalents, such as stock options or warrants as of September 30, 2012.

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Document and Entity Information	3 Months Ended
	Sep. 30, 2012
Document and Entity Information
Entity Registrant Name	Engraving Masters, Inc.
Document Type	10-Q
Document Period End Date	Sep. 30, 2012
Amendment Flag	false
Entity Central Index Key	0001416697
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding	7,630,000
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	Yes
Entity Well-known Seasoned Issuer	Yes
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q3

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Note 4 - Accounting Policies and Procedures: Recent Accounting Pronouncements (Policies)

3 Months Ended

Sep. 30, 2012

Policies

Recent Accounting Pronouncements

Recent Accounting Pronouncements

The company evaluated all of the recent accounting updates and deemed that they would not have a material effect on the financial position, results of operations or cash flows of the company.

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Condensed Statements of Operations (unaudited) (USD $)	3 Months Ended		9 Months Ended		73 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012
Revenue
Expenses:
Depreciation expense				242	1,521
General and administrative expenses	2,688	3,056	12,322	11,401	83,062
Total expenses	2,686	3,056	12,322	11,643	84,583
Loss before provision for income taxes	(2,688)	(3,056)	(12,322)	(11,643)	(84,583)
Provision for income taxes
Net loss	$ (2,688)	$ (3,056)	$ (12,322)	$ (11,643)	$ (84,583)
Weighted average number of common shares outstanding - basic	7,630,000	7,630,000	7,630,000	7,630,000
Net loss per share - basic	$ 0.00	$ 0.00	$ 0.00	$ 0.00

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Note 7 - Warrants and options

3 Months Ended

Sep. 30, 2012

Notes

Note 7 - Warrants and options

Note 7 - Warrants and options

As of September 30, 2012, there were no warrants or options outstanding to acquire any additional shares of common stock.

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Note 6 - Stockholders' equity

3 Months Ended

Sep. 30, 2012

Notes

Note 6 - Stockholders' equity

Note 6 - Stockholders’ equity

The Company is authorized to issue 100,000,000 shares of $0.001 par value common stock and 100,000,000 shares of $0.001 par value preferred stock.

From the inception of the Company through September 30, 2012, an officer and director of the Company donated cash in the amount of $40,975.  The entire amount is considered to be additional paid-in capital.

As of September 30, 2012, there have been no other issuances of common stock.

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Note 3 - Going concern (Details) (USD $)	Sep. 30, 2012
Retained Earnings (Accumulated Deficit)	$ 84,583

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Note 4 - Accounting Policies and Procedures: Use of estimates (Policies)

3 Months Ended

Sep. 30, 2012

Policies

Use of estimates

Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.  Actual results could differ from those estimates.

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Note 8 - Related party transactions

3 Months Ended

Sep. 30, 2012

Notes

Note 8 - Related party transactions

Note 8 - Related party transactions

From the inception of the Company through September 30, 2012, an officer and director of the Company donated cash in the amount of $40,975.  The entire amount is considered to be additional paid-in capital.

The Company does not lease or rent any property.  Office services are provided without charge by an officer and director of the Company.  Such costs are immaterial to the financial statements and, accordingly, have not been reflected therein.  The officers and directors of the Company are involved in other business activities and may, in the future, become involved in other business opportunities.  If a specific business opportunity becomes available, such persons may face a conflict in selecting between the Company and their other business interests.  The Company has not formulated a policy for the resolution of such conflicts.

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Note 9 - Subsequent Events

3 Months Ended

Sep. 30, 2012

Notes

Note 9 - Subsequent Events

Note 9 - Subsequent Events

The Company’s Management has reviewed all material events through the date of this report in accordance with ASC 855-10, and believes there are no further material subsequent events to report.

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Note 4 - Accounting Policies and Procedures: Revenue recognition (Policies)

3 Months Ended

Sep. 30, 2012

Policies

Revenue recognition

Revenue recognition

The Company recognizes revenue when all of the following conditions are satisfied: (1) there is persuasive evidence of an arrangement; (2) the amount of fees to be paid by the customer is fixed or determinable; (3) the product has been provided to the customer; and (4) the collection of our fees is probable.  The Company will record revenue when it is realizable and earned and the product has been shipped to the customer.

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Note 6 - Stockholders' equity (Details) (USD $)	73 Months Ended
	Sep. 30, 2012
Donated cash, officer and director	$ 40,975

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Condensed Statements of Cash Flows (unaudited) (USD $)	9 Months Ended		73 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012
Operating activities
Net Loss	$ (12,322)	$ (11,643)	$ (84,583)
Adjustments to reconcile net loss to net cash used by operating activities:
Depreciation		242	1,521
Changes in operating assets and liabilities:
Net cash used by operating activities	(12,322)	(11,401)	(83,062)
Investing activities
Purchase of fixed assets			(1,521)
Net cash used by investing activities			(1,521)
Financing activities
Proceeds from notes payable		2,000	2,000
Donated capital	12,500	10,000	40,975
Issuances of common stock			42,100
Net cash provided by financing activities	12,500	12,000	85,075
Net increase (decrease) in cash	178	599	492
Cash - beginning of the period	314	191
Cash - ending of the period	492	790	492
Supplemental disclosures
Interest paid
Income taxes paid

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Note 5 - Debt and interest expense

3 Months Ended

Sep. 30, 2012

Notes

Note 5 - Debt and interest expense

Note 5 - Debt and interest expense

Through September 30, 2012, a non-affiliated third-party loaned the Company an aggregate of $2,000 in cash.  The note bears no interest and is due upon demand. 

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Note 5 - Debt and interest expense (Details) (USD $)	Sep. 30, 2012
Notes Payable	$ 2,000