0001477932-12-004326.txt : 20121114 0001477932-12-004326.hdr.sgml : 20121114 20121114121320 ACCESSION NUMBER: 0001477932-12-004326 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 9 CONFORMED PERIOD OF REPORT: 20120930 FILED AS OF DATE: 20121114 DATE AS OF CHANGE: 20121114 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Module One RD, INC CENTRAL INDEX KEY: 0001420061 STANDARD INDUSTRIAL CLASSIFICATION: BLANK CHECKS [6770] IRS NUMBER: 260830388 STATE OF INCORPORATION: NV FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-52953 FILM NUMBER: 121202390 BUSINESS ADDRESS: STREET 1: 228 CLEARWATER DRIVE CITY: PONTE VEDRA BEACH STATE: FL ZIP: 32082 BUSINESS PHONE: 904 273 8420 MAIL ADDRESS: STREET 1: 228 CLEARWATER DRIVE CITY: PONTE VEDRA BEACH STATE: FL ZIP: 32082 10-Q 1 mdloe_10q.htm FORM 10-Q mdloe_10q.htm


U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: September 30, 2012

o 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- 52953

MODULE ONE RD, INC.
(Name of Small Business Issuer in its charter)

Nevada
 
26-0830388
(State or other jurisdiction of Identification No.)
 
(I.R.S. Employer incorporation or organization)

228 Clearwater Drive, Ponte Vedra Beach, Florida 32082
(Address of principal executive offices)

(904) 273-8420
Issuer’s telephone number

______________________________________
(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. x Yes  o 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 (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). x Yes  o No
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer
o
Accelerated filer
o
Non-accelerated filer
o (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). x Yes o No

State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date:  At November 14, 2012 there were 1,000,000 shares of common stock outstanding.
 


 
 

 
 
PART I — FINANCIAL INFORMATION

Item 1. Financial Statements.

MODULE ONE RD, INC.
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEETS
AS OF SEPTEMBER 30 AND JUNE 30, 2012
 
   
September 30, 2012
(unaudited)
   
June 30,
2012
 
ASSETS
Current Assets
           
Cash and equivalents
  $ 24     $ 116  
                 
TOTAL ASSETS
  $ 24     $ 116  
                 
LIABILITIES AND STOCKHOLDER’S DEFICIT
Liabilities
               
Current Liabilities
               
Accrued expenses
  $ 1,650     $ 4,050  
Accrued interest – related party
    9,548       8,506  
Loan payable - related party
    47,262       42,892  
Total liabilities
    58,460       55,448  
                 
Stockholder’s Deficit
               
Common Stock, $.0001 par value, 100,000,000 shares authorized, 1,000,000 shares issued and outstanding
    100       100  
Preferred Stock, $.0001 par value, 10,000,000 shares authorized, -0- shares issued and outstanding
    0       0  
Deficit accumulated during the development stage
    (58,536 )     (55,432 )
Total stockholder’s deficit
    (58,436 )     (55,332 )
                 
TOTAL LIABILITIES AND STOCKHOLDER’S DEFICIT
  $ 24     $ 116  
 
See accompanying notes to financial statements.
 
 
2

 
 
MODULE ONE RD, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF OPERATIONS (unaudited)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011
PERIOD FROM OCTOBER 11, 2007 (INCEPTION) TO SEPTEMBER 30, 2012
 
   
Three months ended September 30, 2012
   
Three months ended September 30, 2011
   
Period from October 11, 2007 (Inception) to September 30, 2012
 
                   
REVENUES
  $ 0     $ 0     $ 0  
                         
EXPENSES
                       
Professional fees
    1,653       2,937       43,919  
General and administrative expenses
    410       375       5,070  
TOTAL EXPENSES
    2,063       3,312       48,989  
                         
LOSS FROM OPERATIONS
    (2,063 )     (3,312 )     (48,989 )
                         
OTHER EXPENSES
                       
Interest expense
    1,041       660       9,547  
                         
LOSS BEFORE PROVISION FOR INCOME TAXES
    (3,104 )     (3,972 )     (58,536 )
                         
PROVISION FOR INCOME TAXES
    0       0       0  
                         
NET LOSS
  $ (3,104 )   $ (3,972 )   $ (58,536 )
                         
NET LOSS PER SHARE: BASIC AND DILUTED
  $ (0.00 )   $ (0.00 )        
                         
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC AND DILUTED
    1,000,000       1,000,000          

See accompanying notes to financial statements.
 
 
3

 

MODULE ONE RD, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF STOCKHOLDERS’ DEFICIT (unaudited)
PERIOD FROM OCTOBER 11, 2007 (INCEPTION) TO SEPTEMBER 30, 2012
 
   
Common Stock
   
Deficit accumulated during the development
       
   
Shares
   
Amount
   
stage
   
Total
 
                         
Inception, October 11, 2007
    0     $ 0     $ 0     $ 0  
                                 
Issuance of common stock for cash @$.0001
    1,000,000       100       -       100  
                                 
Net loss for the period ended June 30, 2008
    -       -       (10,484 )     (10,484 )
                                 
Balance, June 30, 2008
    1,000,000       100       (10,484 )     (10,384 )
                                 
Net loss for the year ended June 30, 2009
    -       -       (7,331 )     (7,331 )
                                 
Balance, June 30, 2009
    1,000,000       100       (17,815 )     (17,715 )
                                 
Net loss for the year ended June 30, 2010
     -       -       (10,066 )     (10,066 )
                                 
Balance, June 30, 2010
    1,000,000       100       (27,881 )     (27,781 )
                                 
Net loss for the year ended June 30, 2011
     -       -       (11,488 )     (11,488 )
                                 
Balance, June 30, 2011
    1,000,000       100       (39,369 )     (39,269 )
                                 
Net loss for the year ended June 30, 2012
     -       -       (16,063 )     (16,063 )
                                 
Balance, June 30, 2012
    1,000,000       100       (55,432 )     (55,332 )

Net loss for the three months ended September 30, 2012
     -       -       (3,104 )     (3,104 )
                                 
Balance, September 30, 2012
    1,000,000       100       (58,536 )     (58,436 )

See accompanying notes to financial statements.
 
 
4

 
 
MODULE ONE RD, INC.
 (A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF CASH FLOWS (unaudited)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011
PERIOD FROM OCTOBER 11, 2007 (INCEPTION) TO SEPTEMBER 30, 2012
 
   
Three months ended September 30, 2012
   
Three months ended September 30, 2011
   
Period from October 11, 2007 (Inception) to September 30, 2012
 
CASH FLOWS FROM OPERATING ACTIVITIES
                 
Net loss for the period
  $ (3,104 )   $ (3,972 )   $ (58,536 )
Change in non-cash working capital items:
                       
Changes in assets and liabilities:
                       
Increase (decrease) in accrued expenses
    (2,400 )     148       1,650  
Increase in accrued interest – related party
    1,042       660       9,548  
CASH FLOWS USED BY OPERATING ACTIVITIES
    (4,462 )     (3,164 )     (47,338 )
                         
CASH FLOWS FROM FINANCING ACTIVITIES
                       
Loans received from related party
    4,370       3,289       47,262  
Proceeds from sales of common stock
    0       0       100  
NET CASH PROVIDED BY FINANCING ACTIVITIES
    4,370       3,289       47,362  
                         
NET INCREASE (DECREASE) IN CASH
    (92 )     125       24  
                         
Cash, beginning of period
    116       30       0  
Cash, end of period
  $ 24     $ 155     $ 24  
                         
SUPPLEMENTAL CASH FLOW INFORMATION:
                       
Interest paid
  $ 0     $ 0     $ 0  
Income taxes paid
  $ 0     $ 0     $ 0  
 
See accompanying notes to financial statements.
 
 
5

 

MODULE ONE RD, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2012

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Business
Module One RD, Inc. (“The Company”) was organized under the laws of the State of Nevada on October 11, 2007 as a corporation with a year end of June 30. The Company’s objective is to acquire or merge with a target business or company in a business combination.

Development Stage Company
The accompanying financial statements have been prepared in accordance with generally accepted accounting principles related to development-stage companies.  A development-stage company is one in which planned principal operations have not commenced or if its operations have commenced, there has been no significant revenues there from.

Basis of Presentation
The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars.

Accounting Basis
The Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of America (“GAAP” accounting).  The Company has adopted a June 30 fiscal year end.

Cash and Cash Equivalents
Module One RD considers all highly liquid investments with maturities of three months or less to be cash equivalents.  At September 30, 2012 and June 30, 2012, the Company had $24 and $116 of cash, respectively.

Fair Value of Financial Instruments
The Company’s financial instruments consist of cash and cash equivalents, accrued expenses, accrued interest – related party and loans payable to a related party. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements.

Income Taxes
Income taxes are computed using the asset and liability method.  Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws.  A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized.

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 the financial statements and the reported amount of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

Revenue Recognition
The Company recognizes revenue when products are fully delivered or services have been provided and collection is reasonably assured.

 
6

 
 
MODULE ONE RD, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2012

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Basic Income (Loss) Per Share
Basic income (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. There are no such common stock equivalents outstanding as of September 30, 2012.

Stock-Based Compensation
Stock-based compensation is accounted for at fair value in accordance with SFAS No. 123 and 123 (R) (ASC 718).  To date, the Company has not adopted a stock option plan and has not granted any stock options. As of September 30, 2012, the Company has not issued any stock-based payments to its employees.

Recent Accounting Pronouncements
Module One RD does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position or cash flow.

NOTE 2 – ACCRUED EXPENSES

Accrued expenses at September 30 and June 30, 2012 consisted of amounts owed to the Company’s outside independent auditors and its outside attorney.

NOTE 3 – LOAN PAYABLE – RELATED PARTY

The Company has received loans from a related party to be used for working capital.  The loans are due upon demand, bear 8% interest and are unsecured. The balance due on these loans was $47,262 and $42,892 as of September 30, 2012 and June 30, 2012, respectively.

Accrued interest on the above loans was $9,548 and $8,506 as of September 30, 2012 and June 30, 2012.

NOTE 4 – COMMON STOCK

The Company has 100,000,000 shares of $0.0001 par value common stock authorized.

On October 13, 2007, the Company issued 1,000,000 shares of common stock for cash proceeds of $100.

As of September 30, 2012 and June 30, 2012 there were 1,000,000 shares of common stock issued and outstanding.

The Company also has 10,000,000 shares of $0.0001 par value preferred stock authorized.

As of September 30, 2012 and June 30, 2012 there were 0 shares of preferred stock issued and outstanding.
 
 
7

 
 
MODULE ONE RD, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2012

NOTE 5 – INCOME TAXES

As of September 30, 2012, the Company had net operating loss carry forwards of approximately $58,500 that may be available to reduce future years’ taxable income through 2032. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards.

The provision for Federal income tax consists of the following:

   
September 30,
2012
   
September 30,
2011
 
Federal income tax benefit attributable to:
           
Current Operations
  $ 1,055     $ 1,350  
Less: valuation allowance
    (1,055 )     (1,350 )
Net provision for Federal income taxes
  $ 0     $ 0  

The cumulative tax effect at the expected rate of 34% of significant items comprising our net deferred tax amount is as follows:

   
September 30,
2012
   
June 30,
2012
 
Deferred tax asset attributable to:
           
Net operating loss carryover
  $ 19,901     $ 18,846  
Less: valuation allowance
    (19,901 )     (18,846 )
Net deferred tax asset
  $ 0     $ 0  

Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of $58,500 for Federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur net operating loss carry forwards may be limited as to use in future years.

NOTE 6 – LIQUIDITY AND GOING CONCERN
 
Module One RD has negative working capital, has incurred losses since inception, and has not yet received revenues from sales of products or services.  These factors create substantial doubt about the Company’s ability to continue as a going concern.  The financial statements do not include any adjustment that might be necessary if the Company is unable to continue as a going concern.
 
The ability of Module One RD to continue as a going concern is dependent on the Company generating cash from the sale of its common stock and/or obtaining debt financing and attaining future profitable operations.  Management’s plans include selling its equity securities and obtaining debt financing to fund its capital requirement and ongoing operations; however, there can be no assurance the Company will be successful in these efforts.

 
8

 
 
MODULE ONE RD, INC.
 (A DEVELOPMENT STAGE COMPANY)
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2012

NOTE 7 – COMMITMENTS AND CONTINGENCIES

The Company neither owns nor leases any real or personal property. An officer has provided office services without charge.  There is no obligation for the officer to continue this arrangement.  Such costs are immaterial to the financial statements and accordingly are not reflected herein.  The officers and directors are involved in other business activities and most likely will become involved in other business activities in the future.

NOTE 8 – SUBSEQUENT EVENTS

Management has evaluated subsequent events through the date these financial statements were issued, and has determined it does not have any material subsequent events to disclose.
 
 
9

 
 
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Overview

Statements, other than historical facts, contained in this Quarterly Report on Form 10-Q, including statements of potential acquisitions and our strategies, plans and objectives, are "forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).  Although we believe that our forward looking statements are based on reasonable assumptions, we caution that such statements are subject to a wide range of risks, trends and uncertainties that could cause actual results to differ materially from those projected.  Among those risks, trends and uncertainties are important factors that could cause actual results to differ materially from the forward looking statements, including, but not limited to; the time management devotes to identifying a target business; management’s ability to consummate a business combination; the financial condition of the target company with which we may enter a business combination; the effect of existing and future laws; governmental regulations; the political and economic climate of the United States; and conditions in the capital markets.  We undertake no duty to update or revise these forward-looking statements.

When used in this Form 10-Q, the words, "expect," "anticipate," "intend," "plan," "believe," "seek," "estimate" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.  Because these forward-looking statements involve risks and uncertainties, actual results could differ materially from those expressed or implied by these forward-looking statements for a number of important reasons.

Overview

Module One RD, Inc. (“we”, “us” or the “Company”) was organized in the State of Nevada on October 12, 2007.  We are a developmental stage company and have not generated any revenues to date.  We were organized to serve as a vehicle for a business combination through a capital stock exchange, merger, reverse acquisition, asset acquisition or other similar business combination (a “Business Combination”) with an operating or development stage business (the “Target”) which desires to utilize our status as a reporting company under the Exchange Act.

The Company voluntarily filed a registration statement on Form 10 with the U.S. Securities and Exchange Commission (the “SEC”) on December 5, 2007, and since its effectiveness, the Company has focused its efforts on identifying a possible Target for a Business Combination.  We are not presently engaged in, and will not engage in, any substantive commercial business operations unless and until we consummate a Business Combination.  Our fiscal year ends on December 31.

Based on our business activities, the Company is a “shell company” as defined under the Exchange Act because we have no operations and nominal assets consisting solely of cash and/or cash equivalents.  Because we are a “shell” company, the Business Combination we enter into with a Target will be deemed to be a “reverse acquisition” or “reverse merger.”  We are also a “blank check” company as defined under the Exchange Act because we are a development stage company that is issuing a “penny stock” (as defined under the Exchange Act) and have no specific business plan or purpose other than to merge with an unidentified company or companies.  Many states have enacted statutes, rules and regulations limiting the sale of securities of blank check companies in their respective jurisdictions.

Our management has broad discretion with respect to identifying and selecting a prospective Target.  We have not established any specific attributes or criteria (financial or otherwise) for a prospective Target and may enter into a Business Combination with a development stage company, a distressed company or a foreign company engaged in any industry.  Our sole officer and director has never served as an officer or director of a development stage public company that has consummated a Business Combination such as that contemplated by our Company.  Accordingly, he may not successfully identify a Target or conclude a Business Combination.  In addition, our management engages in other business activities and is not obligated to devote any specific number of hours to our matters.  Management intends to devote only as much time as it deems necessary to our affairs.

 
10

 
 
We cannot assure you that we will be successful in concluding a Business Combination.  We will not realize any revenues or generate any income unless and until we successfully merge with or acquire an operating business that is generating revenues and otherwise is operating profitably.  Moreover, we can offer no guarantee that the Company will achieve long-term or immediate short-term earnings from any Business Combination.
 
Any entity with which we enter into a Business Combination will be subject to numerous risks in connection with its operations.  To the extent we affect a Business Combination with a financially unstable company or an entity in its early stage of development or growth, including entities without established records of sales or earnings, we may be affected by numerous risks inherent in the business and operations of such companies.  If we consummate a Business Combination with a foreign entity, we will be subject to all of the risks attendant to foreign operations.  Although our management will endeavor to evaluate the risks inherent in a particular Target, we cannot assure you that we will properly ascertain or assess all significant risk factors.

We expect that in connection with any Business Combination, we will issue a significant number of shares of our common stock (equal to at least 80% of the total number of shares outstanding after giving effect to the transaction and likely, a significantly higher percentage) in order to ensure that the Business Combination qualifies as a “tax free” transaction under federal tax laws.  The issuance of additional shares of our capital stock will significantly reduce the equity interest of our stockholders prior to the transaction and cause a change in control in our Company and likely result in the resignation or removal of our officer and director as of the date of the transaction.

Our management anticipates that our Company likely will affect only one Business Combination, due primarily to our limited financial resources and the dilution of interest for present and prospective stockholders, which is likely to occur as a result of our management's plan to offer a controlling interest to a Target in order to achieve a tax-free reorganization.  This lack of diversification should be considered a substantial risk in investing in us because it will not permit us to offset potential losses from one venture against potential gains from another.

The Company currently does not engage in any business activities that provide cash flow.  During the next twelve months we anticipate incurring costs related to filing periodic reports under the Exchange Act, investigating and analyzing Targets and, possibly, consummating a Business Combination.  Our current assets will not be sufficient for these purposes; however, we believe we will be able to meet these costs from cash which may be loaned to or invested in us by our stockholders, management or other investors.  It is unlikely that we will be able to secure third party funding for our operations and we cannot be certain that the Company will be able to secure additional funding as needed.  Our ability to continue as a going concern is dependent upon our ability to generate cash from the sale of our common stock and/or obtain debt financing and attain future profitable operations by acquiring or merging with a profitable company.

Liquidity and Capital Resources

At September 30, 2012, we had total assets of $24, consisting exclusively of cash.  This compares with total assets of $116 at June 30, 2012 our fiscal year end.  At September 30, 2012, the Company had current liabilities of $58,460 compared with current liabilities of $55,448 at June 30, 2012, in each case, comprised principally of amounts owed to our stockholder.

Our existing cash reserves will not be sufficient to cover our operating costs and expenses over the next twelve months.

To date, we have funded our operations through loans from our stockholder.  Our stockholder has advised management orally that he presently expects to fund additional costs and expenses we may incur through loans or further investment in the Company, as and when necessary.  However, our stockholder is under no obligation to provide such funding.

 
11

 
 
The following is a summary of the Company's cash flows provided by (used in) operating, investing, and financing activities:

   
Three
Months
Ended
September 30,
2012
   
Three
Months
Ended
September 30,
2011
   
For the Cumulative
Period from
October 12, 2007
(Inception) to
September 30, 2012
 
Net Cash Used by Operating Activities
  $ 4,462     $ 3,164     $ 47,338  
Net Cash Provided by Financing Activities
  $ 4,370     $ 3,289     $ 47,362  
Net Increase (Decrease) in Cash and Cash Equivalents
  $ 24     $ 155     $ 24  

We do not expect to engage in any substantive activities unless and until such time as we enter into a Business Combination with a Target, if ever.  We cannot provide investors with any assurance that we will have sufficient capital resources to fund our operations and realize our business objectives.

Results of Operations

Since our inception, we have not engaged in any substantive operations, other than seeking to identify a Target, nor have we generated any revenues.  We reported a net loss for the three months ended September 30, 2012 of $3,104, compared to a net loss of $3,972 for the comparable 2011 period, and have suffered a net loss since inception of $58,536.  At September 30, 2012, we had a working capital deficit of $58,436 compared to a working capital deficit of $55,332 at June 30, 2012.  Since our inception, our operating expenses have principally comprised professional fees and expenses incurred in connection with the filing of reports under the Exchange Act, as well as interest accrued on loans from one of our stockholders.

We do not expect to engage in any activities, other than seeking to identify a Target, unless and until such time as we enter into a Business Combination with a Target, if ever.  We cannot provide investors with any assessment as to the nature of a Target’s operations or speculate as to the status of its products or operations, whether at the time of the Business Combination it will be generating revenues or its future prospects.

Going Concern

Our negative working capital, continuing operating losses, failure to generate revenues and lack of operating capital create substantial doubt about the Company’s ability to continue as a going concern.  The ability of the Company to continue as a going concern is dependent on its ability to obtain capital from our affiliates to fund our operations, generate cash from the sale of its securities and attain future profitable operations.  Management’s plans include selling its equity securities and obtaining debt financing to fund its capital requirement and ongoing operations; however, there can be no assurance the Company will be successful in these efforts.

Item 3. Quantitative and Qualitative Disclosures about Market Risk.

Not applicable.

 
12

 
 
Item 4(T). Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

As of September 30, 2012, the Company’s management performed an evaluation, under the supervision and with the participation of the Company’s Chief Executive Officer, who is the Company’s principal executive officer and principal financial officer and who we refer to herein as our PEO, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rules 13a-15 and 15d-15 under the Exchange Act), pursuant to Exchange Act Rule 13a-15.  As a result of our continuing efforts to remediate the material weaknesses in our internal control over financial reporting that existed as of December 31, 2011 and which remained extant as of the close of the period covered by this Report, our PEO concluded that the Company's disclosure controls and procedures were not effective as of September 30, 2012.

The weaknesses in our disclosure and procedures encompassed weaknesses in certain elements of our internal control over financial reporting (ICFR) that our subsumed within our disclosure controls and procedures.  A material weakness is defined in Section 210.1-02(4) of Regulation S-X as a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the annual or interim financial statements will not be prevented or detected on a timely basis.  The specific weaknesses relate to elements of our ICFR that provide reasonable assurances that transactions are recorded as necessary to permit the preparation of financial statements in accordance with generally accepted accounting principles and comprise the following:

1.
We did not maintain effective controls over the control environment.
2.
We did not maintain effective controls over financial statement disclosure.
3.
We did not maintain effective controls over financial reporting.
4.
There existed a lack of segregation of duties in regard to the Company’s financial reporting, procedures for depositing of funds, procedures for cash disbursements, procedures for checkbook entries, period close procedures, and procedures for financial statement preparation, because we have only one officer who is responsible for all such duties.

We believe that the weaknesses in our disclosure controls and procedures and ICFR are a direct consequence of our size, resource constraints and the nature of our business.  We are a “shell company,” as defined under the Securities Act, in that we have no operations and nominal assets.  Further, we have no full-time employees.  As a result, we are constrained by our lack of resources to take the types of corrective actions that would be necessary to remediate the material weaknesses, including, for example, engaging additional accounting personnel and adopting an audit committee charter and seating an audit committee with at least one independent member who qualifies as an audit committee financial expert as defined in Item 407(d)(5)(ii) of Regulation S-K

Changes in Internal Controls

There have been no changes in the Company’s internal control over financial reporting (as defined in Rules 13a-15 and 15d-15 under the Exchange Act) during the three months ended September 30, 2012 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

 
13

 
 
PART II — OTHER INFORMATION

Item 1. Legal Proceedings.

There are presently no material pending legal proceedings to which the Company is a party or as to which any of its property is subject, and no such proceedings are known to the Company to be threatened or contemplated against it.

Item 1A. Risk Factors.

As a “smaller reporting company” as defined by Item 10 of Regulation S-K, the Company is not required to provide this information.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

None.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

N/A

Item 5. Other Information.

None.

 
14

 
 
Item 6. Exhibits.

Exhibit
 
Description
     
31.1
 
Certification of the Company’s Principal Executive Officer and Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, with respect to the registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2012.
     
32.1*
 
Certification of the Company’s Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002.

101.INS **
 
XBRL Instance Document
     
101.SCH **
 
XBRL Taxonomy Extension Schema Document
     
101.CAL **
 
XBRL Taxonomy Extension Calculation Linkbase Document
2
   
101.DEF **
 
XBRL Taxonomy Extension Definition Linkbase Document
     
101.LAB **
 
XBRL Taxonomy Extension Label Linkbase Document
     
101.PRE **
 
XBRL Taxonomy Extension Presentation Linkbase Document
____________
*  Pursuant to Commission Release No. 33-8238, this certification will be treated as “accompanying” this Quarterly Report on Form 10-Q and not “filed” as part of such report for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of Section 18 of the Securities Exchange Act of 1934, as amended, and this certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except to the extent that the registrant specifically incorporates it by reference.

** XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.
 
 
15

 
 
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused the Report to be signed on its behalf by the undersigned thereunto duly authorized.
 
  MODULE ONE RD, INC.  
       
Date: November 14, 2012
By:
/s/ Thomas Hurley  
  Name: Thomas Hurley  
  Title: President, Principal Executive Officer  
    and Principal Financial Officer  
 
 
16

EX-31.1 2 mdloe_ex311.htm CERTIFICATION mdloe_ex311.htm
EXHIBIT 31.1
 
CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO SECTION 302 OF THE
SARBANES-OXLEY ACT OF 2002

I, Thomas Hurley, certify that:

1.           I have reviewed this Quarterly Report on Form 10-Q of Module One RD, 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.           As the registrant’s sole certifying officer, I am 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 my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared;

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

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

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

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

a. all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are 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
By:
/s/ Thomas Hurley
 
 
Name:
Thomas Hurley
 
 
Title:
President, Principal Executive Officer and
Principal Financial Officer
 
EX-32.1 3 mdloe_ex321.htm CERTIFICATION mdloe_ex321.htm
EXHIBIT 32.1
 
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
 
I, Thomas Hurley, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report on Form 10-Q of Module One RD, Inc. for the quarter ended September 30, 2012 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such Quarterly Report on Form 10-Q fairly presents in all material respects the financial condition and results of operations of Module One RD, Inc.
 
Date: November 14, 2012
By:
/s/ Thomas Hurley
 
 
Name:
Thomas Hurley
 
 
Title:
President, Principal Executive Officer and
Principal Financial Officer
 

The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.
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LOAN PAYABLE - RELATED PARTY
3 Months Ended
Sep. 30, 2012
Notes to Financial Statements  
Note 3. LOAN PAYABLE - RELATED PARTY

The Company has received loans from a related party to be used for working capital.  The loans are due upon demand, bear 8% interest and are unsecured. The balance due on these loans was $47,262 and $42,892 as of September 30, 2012 and June 30, 2012, respectively.

 

Accrued interest on the above loans was $9,548 and $8,506 as of September 30, 2012 and June 30, 2012.

 

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ACCRUED EXPENSES
3 Months Ended
Sep. 30, 2012
Notes to Financial Statements  
Note 2. ACCRUED EXPENSES

Accrued expenses at September 30 and June 30, 2012 consisted of amounts owed to the Company’s outside independent auditors and its outside attorney.

XML 14 R2.htm IDEA: XBRL DOCUMENT v2.4.0.6
BALANCE SHEETS (USD $)
Sep. 30, 2012
Jun. 30, 2012
Current Assets    
Cash and equivalents $ 24 $ 116
TOTAL ASSETS 24 116
LIABILITIES AND STOCKHOLDER'S DEFICIT    
Accrued expenses 1,650 4,050
Accrued interest - related party 9,548 8,506
Loan payable - related party 47,262 42,892
Total liabilities 58,460 55,448
Stockholder's Deficit    
Common Stock, $.0001 par value, 100,000,000 shares authorized, 1,000,000 shares issued and outstanding 100 100
Preferred Stock, $.0001 par value, 10,000,000 shares authorized, -0- shares issued and outstanding 0 0
Deficit accumulated during the development stage (58,536) (55,432)
Total stockholder's deficit (58,436) (55,332)
TOTAL LIABILITIES AND STOCKHOLDER'S DEFICIT $ 24 $ 116
XML 15 R6.htm IDEA: XBRL DOCUMENT v2.4.0.6
STATEMENT OF STOCKHOLDERS DEFICIT (Unaudited) (USD $)
Common Stock
Deficit accumulated during the development stage
Total
Beginning Balance, Amount at Oct. 10, 2007       
Beginning Balance, Shares at Oct. 10, 2007         
Issuance of common stock for cash @$.0001, Amount 100    100
Issuance of common stock for cash @$.0001, Shares 1,000,000    
Net loss   (10,484) (10,484)
Ending Balance, Amount at Jun. 30, 2008 100 (10,484) (10,384)
Ending Balance, Shares at Jun. 30, 2008 1,000,000    
Net loss   (7,331) (7,331)
Ending Balance, Amount at Jun. 30, 2009 100 (17,815) (17,715)
Ending Balance, Shares at Jun. 30, 2009 1,000,000    
Net loss   (10,066) (10,066)
Ending Balance, Amount at Jun. 30, 2010 100 (27,881) (27,781)
Ending Balance, Shares at Jun. 30, 2010 1,000,000    
Net loss   (11,488) (11,488)
Ending Balance, Amount at Jun. 30, 2011 100 (39,369) (39,269)
Ending Balance, Shares at Jun. 30, 2011 1,000,000    
Net loss   (16,063) (16,063)
Ending Balance, Amount at Jun. 30, 2012 100 (55,432) (55,332)
Ending Balance, Shares at Jun. 30, 2012 1,000,000    
Net loss   (3,104) (3,104)
Ending Balance, Amount at Sep. 30, 2012 $ 100    
Ending Balance, Shares at Sep. 30, 2012 1,000,000 (58,536) (58,436)
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INCOME TAXES (Details Narrative) (USD $)
Sep. 30, 2012
Income Taxes Details Narrative  
Net operating loss carry forwards $ 58,500
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
3 Months Ended
Sep. 30, 2012
Accounting Policies [Abstract]  
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Business

Module One RD, Inc. (“The Company”) was organized under the laws of the State of Nevada on October 11, 2007 as a corporation with a year end of June 30. The Company’s objective is to acquire or merge with a target business or company in a business combination.

 

Development Stage Company

The accompanying financial statements have been prepared in accordance with generally accepted accounting principles related to development-stage companies.  A development-stage company is one in which planned principal operations have not commenced or if its operations have commenced, there has been no significant revenues there from.

 

Basis of Presentation

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars.

 

Accounting Basis

The Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of America (“GAAP” accounting).  The Company has adopted a June 30 fiscal year end.

 

Cash and Cash Equivalents

Module One RD considers all highly liquid investments with maturities of three months or less to be cash equivalents.  At September 30, 2012 and June 30, 2012, the Company had $24 and $116 of cash, respectively.

 

Fair Value of Financial Instruments

The Company’s financial instruments consist of cash and cash equivalents, accrued expenses, accrued interest – related party and loans payable to a related party. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements.

 

Income Taxes

Income taxes are computed using the asset and liability method.  Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws.  A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized.

 

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 the financial statements and the reported amount of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

 

Revenue Recognition

The Company recognizes revenue when products are fully delivered or services have been provided and collection is reasonably assured.

 

Basic Income (Loss) Per Share

Basic income (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. There are no such common stock equivalents outstanding as of September 30, 2012.

 

Stock-Based Compensation

Stock-based compensation is accounted for at fair value in accordance with SFAS No. 123 and 123 (R) (ASC 718).  To date, the Company has not adopted a stock option plan and has not granted any stock options. As of September 30, 2012, the Company has not issued any stock-based payments to its employees.

 

Recent Accounting Pronouncements

Module One RD does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position or cash flow.

XML 20 R3.htm IDEA: XBRL DOCUMENT v2.4.0.6
BALANCE SHEETS (Parenthetical) (USD $)
Sep. 30, 2012
Jun. 30, 2012
Stockholder's Deficit    
Preferred stock, par value $ 0.0001 $ 0.0001
Preferred stock, authorized shares 10,000,000 10,000,000
Preferred stock, issued shares 0 0
Preferred stock, outstanding shares 0 0
Common stock, par value $ 0.0001 $ 0.0001
Common stock, Authorized 100,000,000 100,000,000
Common stock, Issued 1,000,000 1,000,000
Common stock, outstanding 1,000,000 1,000,000
XML 21 R17.htm IDEA: XBRL DOCUMENT v2.4.0.6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) (USD $)
Sep. 30, 2012
Summary Of Significant Accounting Policies Details Narrative  
Common stock equivalents outstanding $ 0
XML 22 R1.htm IDEA: XBRL DOCUMENT v2.4.0.6
Document and Entity Information
3 Months Ended
Sep. 30, 2012
Nov. 14, 2012
Document And Entity Information    
Entity Registrant Name Module One RD, INC  
Entity Central Index Key 0001420061  
Document Type 10-Q  
Document Period End Date Sep. 30, 2012  
Amendment Flag false  
Current Fiscal Year End Date --06-30  
Is Entity a Well-known Seasoned Issuer? No  
Is Entity a Voluntary Filer? No  
Is Entity's Reporting Status Current? Yes  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock, Shares Outstanding   1,000,000
Document Fiscal Period Focus Q1  
Document Fiscal Year Focus 2013  
XML 23 R18.htm IDEA: XBRL DOCUMENT v2.4.0.6
LOAN PAYABLE - RELATED PARTY (Details Narrative) (USD $)
Sep. 30, 2012
Jun. 30, 2012
Loan Payable - Related Party Details Narrative    
Interest rate on unsecured loan 8.00%  
Balance Due on Unsecured loans $ 47,262 $ 42,892
Accrued interest on unsecured loans $ 9,548 $ 8,506
XML 24 R4.htm IDEA: XBRL DOCUMENT v2.4.0.6
STATEMENTS OF OPERATIONS (Unaudited) (USD $)
3 Months Ended 60 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Income Statement [Abstract]      
REVENUES $ 0 $ 0 $ 0
EXPENSES      
Professional fees 1,653 2,937 43,919
General and administrative expenses 410 375 5,070
TOTAL EXPENSES 2,063 3,312 48,989
LOSS FROM OPERATIONS (2,063) (3,312) (48,989)
OTHER EXPENSES      
Interest expense 1,041 660 9,547
LOSS BEFORE PROVISION FOR INCOME TAXES (3,104) (3,972) (58,536)
PROVISION FOR INCOME TAXES 0 0 0
NET LOSS $ (3,104) $ (3,972) $ (58,536)
NET LOSS PER SHARE: BASIC AND DILUTED $ 0.00 $ 0.00  
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC AND DILUTED 1,000,000 1,000,000  
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LIQUIDITY AND GOING CONCERN
3 Months Ended
Sep. 30, 2012
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Note 6. LIQUIDITY AND GOING CONCERN

Module One RD has negative working capital, has incurred losses since inception, and has not yet received revenues from sales of products or services.  These factors create substantial doubt about the Company’s ability to continue as a going concern.  The financial statements do not include any adjustment that might be necessary if the Company is unable to continue as a going concern.

 

The ability of Module One RD to continue as a going concern is dependent on the Company generating cash from the sale of its common stock and/or obtaining debt financing and attaining future profitable operations.  Management’s plans include selling its equity securities and obtaining debt financing to fund its capital requirement and ongoing operations; however, there can be no assurance the Company will be successful in these efforts.

XML 26 R11.htm IDEA: XBRL DOCUMENT v2.4.0.6
INCOME TAXES
3 Months Ended
Sep. 30, 2012
Income Tax Disclosure [Abstract]  
Note 5. INCOME TAXES

As of September 30, 2012, the Company had net operating loss carry forwards of approximately $58,500 that may be available to reduce future years’ taxable income through 2032. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards.

 

The provision for Federal income tax consists of the following:

 

   

September 30,

2012

   

September 30,

2011

 
Federal income tax benefit attributable to:            
Current Operations   $ 1,055     $ 1,350  
Less: valuation allowance     (1,055 )     (1,350 )
Net provision for Federal income taxes   $ 0     $ 0  

 

The cumulative tax effect at the expected rate of 34% of significant items comprising our net deferred tax amount is as follows:

 

   

September 30,

2012

   

June 30,

2012

 
Deferred tax asset attributable to:            
Net operating loss carryover   $ 19,901     $ 18,846  
Less: valuation allowance     (19,901 )     (18,846 )
Net deferred tax asset   $ 0     $ 0  

 

Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of $58,500 for Federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur net operating loss carry forwards may be limited as to use in future years.

XML 27 R19.htm IDEA: XBRL DOCUMENT v2.4.0.6
COMMON STOCK (Details Narrative) (USD $)
Sep. 30, 2012
Jun. 30, 2012
Common Stock Details Narrative    
Common stock authorized 100,000,000 100,000,000
Common stock par value $ 0.0001 $ 0.0001
Common stock shares issued 1,000,000 1,000,000
Common stock shares Outstanding 1,000,000 1,000,000
Preferred stock authorized 10,000,000 10,000,000
Preferred stock par value $ 0.0001 $ 0.0001
Preferred stock shares Issued 0 0
Preferred stock shares outstanding 0 0
XML 28 R15.htm IDEA: XBRL DOCUMENT v2.4.0.6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
3 Months Ended
Sep. 30, 2012
Summary Of Significant Accounting Policies Policies  
Nature of Business

Module One RD, Inc. (“The Company”) was organized under the laws of the State of Nevada on October 11, 2007 as a corporation with a year end of June 30. The Company’s objective is to acquire or merge with a target business or company in a business combination.

Development Stage Company

The accompanying financial statements have been prepared in accordance with generally accepted accounting principles related to development-stage companies.  A development-stage company is one in which planned principal operations have not commenced or if its operations have commenced, there has been no significant revenues there from.

Basis of Presentation

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars.

Accounting Basis

The Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of America (“GAAP” accounting).  The Company has adopted a June 30 fiscal year end.

Cash and Cash Equivalents

Module One RD considers all highly liquid investments with maturities of three months or less to be cash equivalents.  At September 30, 2012 and June 30, 2012, the Company had $24 and $116 of cash, respectively.

Fair Value of Financial Instruments

The Company’s financial instruments consist of cash and cash equivalents, accrued expenses, accrued interest – related party and loans payable to a related party. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements.

Income Taxes

Income taxes are computed using the asset and liability method.  Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws.  A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized.

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 the financial statements and the reported amount of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

Revenue Recognition

The Company recognizes revenue when products are fully delivered or services have been provided and collection is reasonably assured.

Basic Income (Loss) Per Share

Basic income (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. There are no such common stock equivalents outstanding as of September 30, 2012.

Stock-Based Compensation

Stock-based compensation is accounted for at fair value in accordance with SFAS No. 123 and 123 (R) (ASC 718).  To date, the Company has not adopted a stock option plan and has not granted any stock options. As of September 30, 2012, the Company has not issued any stock-based payments to its employees.

Recent Accounting Pronouncements

Module One RD does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position or cash flow.

XML 29 R13.htm IDEA: XBRL DOCUMENT v2.4.0.6
COMMITMENTS AND CONTINGENCIES
3 Months Ended
Sep. 30, 2012
Commitments and Contingencies Disclosure [Abstract]  
Note 7. COMMITMENTS AND CONTINGENCIES

The Company neither owns nor leases any real or personal property. An officer has provided office services without charge.  There is no obligation for the officer to continue this arrangement.  Such costs are immaterial to the financial statements and accordingly are not reflected herein.  The officers and directors are involved in other business activities and most likely will become involved in other business activities in the future.

XML 30 R14.htm IDEA: XBRL DOCUMENT v2.4.0.6
SUBSEQUENT EVENTS
3 Months Ended
Sep. 30, 2012
Subsequent Events [Abstract]  
Note 8. SUBSEQUENT EVENTS

Management has evaluated subsequent events through the date these financial statements were issued, and has determined it does not have any material subsequent events to disclose.

XML 31 R16.htm IDEA: XBRL DOCUMENT v2.4.0.6
INCOME TAXES (Tables)
3 Months Ended
Sep. 30, 2012
Income Taxes Tables  
Provision for Federal income tax

The provision for Federal income tax consists of the following:

 

   

September 30,

2012

   

September 30,

2011

 
Federal income tax benefit attributable to:            
Current Operations   $ 1,055     $ 1,350  
Less: valuation allowance     (1,055 )     (1,350 )
Net provision for Federal income taxes   $ 0     $ 0  

 

Net deferred tax asset

The cumulative tax effect at the expected rate of 34% of significant items comprising our net deferred tax amount is as follows:

 

   

September 30,

2012

   

June 30,

2012

 
Deferred tax asset attributable to:            
Net operating loss carryover   $ 19,901     $ 18,846  
Less: valuation allowance     (19,901 )     (18,846 )
Net deferred tax asset   $ 0     $ 0  

 

XML 32 R21.htm IDEA: XBRL DOCUMENT v2.4.0.6
INCOME TAXES (Details 1) (USD $)
Sep. 30, 2012
Jun. 30, 2012
Deferred tax asset attributable to:    
Net operating loss carryover $ 19,901 $ 18,846
Less: valuation allowance (19,901) (18,846)
Net deferred tax asset $ 0 $ 0
XML 33 R5.htm IDEA: XBRL DOCUMENT v2.4.0.6
STATEMENTS OF CASH FLOWS (Unaudited) (USD $)
3 Months Ended 60 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES      
Net loss for the period $ (3,104) $ (3,972) $ (58,536)
Increase (decrease) in accrued expenses (2,400) 148 1,650
Increase in accrued interest - related party 1,042 660 9,548
Net Cash Used in Operating Activities (4,462) (3,164) (47,338)
CASH FLOWS FROM FINANCING ACTIVITIES      
Loans received from related party 4,370 3,289 47,262
Proceeds from sales of common stock 0 0 100
NET CASH PROVIDED BY FINANCING ACTIVITIES 4,370 3,289 47,362
NET INCREASE (DECREASE) IN CASH (92) 125 24
Cash, beginning of period 116 30 0
Cash, end of period 24 155 24
SUPPLEMENTAL CASH FLOW INFORMATION:      
Interest paid 0 0 0
Income taxes paid $ 0 $ 0 $ 0
XML 34 R10.htm IDEA: XBRL DOCUMENT v2.4.0.6
COMMON STOCK
3 Months Ended
Sep. 30, 2012
Notes to Financial Statements  
Note 4. COMMON STOCK

The Company has 100,000,000 shares of $0.0001 par value common stock authorized.

 

On October 13, 2007, the Company issued 1,000,000 shares of common stock for cash proceeds of $100.

 

As of September 30, 2012 and June 30, 2012 there were 1,000,000 shares of common stock issued and outstanding.

 

The Company also has 10,000,000 shares of $0.0001 par value preferred stock authorized.

 

As of September 30, 2012 and June 30, 2012 there were 0 shares of preferred stock issued and outstanding.

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3 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Federal income tax attributable to:    
Current Operations $ 1,055 $ 1,350
Less: valuation allowance (1,055) (1,350)
Net provision for Federal income taxes $ 0 $ 0