0001002014-13-000366.txt : 20130815 0001002014-13-000366.hdr.sgml : 20130815 20130815143100 ACCESSION NUMBER: 0001002014-13-000366 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 9 CONFORMED PERIOD OF REPORT: 20130630 FILED AS OF DATE: 20130815 DATE AS OF CHANGE: 20130815 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HDS INTERNATIONAL CORP. CENTRAL INDEX KEY: 0001454742 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER PROCESSING & DATA PREPARATION [7374] IRS NUMBER: 263988293 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-53949 FILM NUMBER: 131041799 BUSINESS ADDRESS: STREET 1: 10 DORRANCE STREET STREET 2: SUITE 700 CITY: PROVIDENCE STATE: RI ZIP: 02903 BUSINESS PHONE: (401) 400-0028 MAIL ADDRESS: STREET 1: 10 DORRANCE STREET STREET 2: SUITE 700 CITY: PROVIDENCE STATE: RI ZIP: 02903 FORMER COMPANY: FORMER CONFORMED NAME: GMV Wireless, Inc. DATE OF NAME CHANGE: 20090126 10-Q 1 hdsi10q-6302013.htm HDS INTERNATIONAL CORP. FORM 10-Q (6/30/2013). hdsi10q-6302013.htm




UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

[X]
QUARTERLY REPORT UNDER TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2013
 
 
 
OR
 
 
[   ]
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 000-53949
 
HDS INTERNATIONAL CORP.
(Exact name of registrant as specified in its charter)
 
Nevada
(State of incorporation)

10 Dorrance Street, Suite 700
Providence, RI   02903
(Address of principal executive offices)
 
(401) 400-0028
(Registrant’s telephone number)

Indicate by check mark whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act 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 last 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 (SS 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).
YES [X]     NO [   ]

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

Large Accelerated Filer
[   ]
 
Accelerated Filer
[   ]
Non-accelerated Filer
[   ]
 
Smaller Reporting Company
[X]
(Do not check if smaller reporting company)
     

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   YES [   ]     NO [X]

APPLICABLE ONLY TO CORPORATE ISSUERS:

As of August 14, 2013, there were 377,203,075 shares of the registrant’s $0.001 par value common stock issued and outstanding.








HDS INTERNATIONAL CORP.

TABLE OF CONTENTS

  
Page
   
 
  
 
FINANCIAL STATEMENTS.
3
 
   
 
3
 
4
 
5
 
6
 
   
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
11
 
   
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
13
 
   
CONTROLS AND PROCEDURES.
13
 
 
  
 
 
  
 
RISK FACTORS.
13
 
   
EXHIBITS.
14
     
 
15
     
 
16










 
-2-


PART I - FINANCIAL INFORMATION

ITEM 1.                      FINANCIAL STATEMENTS.

HDS International Corp.
(A Development Stage Company)
Consolidated Balance Sheets
(expressed in U.S. dollars)


 
June 30,
2013
(unaudited)
$
December 31,
2012
 
$
ASSETS
   
 
   
Current Assets
   
Cash
9,608
12,650
Prepaid expenses
113
 
   
Total Current Assets
9,721
12,650
 
   
Other Assets
   
Deferred financing costs
4,310
 
   
Total Assets
14,031
12,650
 
   
 
   
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
   
 
   
Current Liabilities
   
Accounts payable and accrued liabilities
295,360
119,732
Accounts payable and accrued liabilities – related parties
114,121
57,219
Due to related parties
300,000
300,000
 
   
Total Current Liabilities
709,481
476,951
 
   
Non-Current Liabilities
   
Convertible debenture, net of unamortized discount of $31,128
1,372
 
   
Total Liabilities
710,853
476,951
 
   
Stockholders’ Equity (Deficit)
   
 
   
Preferred Stock
Authorized: 25,000,000 preferred shares, with a par value of $0.001 per share
Issued and outstanding: nil preferred shares
Class A Preferred Stock
Authorized: 25,000,000 preferred shares, with a par value of $0.001 per share
Issued and outstanding: 7,500,000 shares
7,500
7,500
Common Stock
Authorized: 2,000,000,000 common shares, with a par value of $0.001 per share
Issued and outstanding: 377,203,075 and 376,603,075 shares, respectively
377,203
376,603
Additional paid-in capital
321,775
283,875
Deficit accumulated during the development stage
(1,403,300)
(1,132,279)
 
   
Total Stockholders’ Equity (Deficit)
(696,822)
(464,301)
 
   
Total Liabilities and Stockholders’ Equity (Deficit)
14,031
12,650




(The accompanying notes are an integral part of these consolidated financial statements)

 
-3-


HDS International Corp.
(A Development Stage Company)
Consolidated Statements of Operations
(expressed in U.S. dollars)
(unaudited)


 
For the Three
Months Ended
June 30,
2013
$
For the Three
Months Ended
June 30,
2012
$
For the Six
Months Ended
June 30,
2013
$
For the Six
Months Ended
June 30,
2012
$
Accumulated from
November 3, 2008
(date of inception)
to June 30,
2013
$
 
         
Revenue
 
         
Operating Expenses
         
 
         
Consulting fees
102,750
103,500
214,500
204,000
806,750
General and administrative
442
20,636
3,103
37,603
100,838
Management fees
43,727
Professional fees
25,893
12,289
35,393
20,789
210,853
Transfer agent fees
82
101
251
101
18,859
 
         
Total Operating Expenses
129,167
136,526
253,247
262,493
1,181,027
 
         
Loss Before Other Expenses (Income)
(129,167)
(136,526)
(253,247)
(262,493)
(1,181,027)
 
         
Other Expenses (Income)
         
 
         
Accretion expense
2,758
5,501
16,800
Impairment of intangible assets
92,538
Interest expense
10,377
11,218
17,774
22,408
94,017
Loss (gain) on settlement of debt
18,918
 
         
Total Other Expenses (Income)
10,377
13,976
17,774
27,909
222,273
 
         
Net Loss for the Period
(139,544)
(150,502)
(271,021)
(290,402)
(1,403,300)
 
         
Net Loss Per Share, Basic and Diluted
 
 
         
Weighted Average Shares Outstanding
377,203,075
347,380,000
376,885,045
347,380,000
 





















(The accompanying notes are an integral part of these consolidated financial statements)

 
-4-


HDS International Corp.
(A Development Stage Company)
Consolidated Statements of Cash Flows
(expressed in U.S. dollars)
(unaudited)

 
For the Six Months
Ended June 30,
2013
$
For the Six Months
Ended June 30,
2012
$
Accumulated from
November 3, 2008
(date of inception)
to June 30,
2013
$
Operating Activities
     
 
     
Net loss
(271,021)
(290,402)
(1,403,300)
Adjustment to reconcile net loss to cash used in operating activities:
     
Accretion of debt discount
1,372
5,501
18,172
Amortization of deferred financing costs
190
190
Loss (gain) on settlement of debt
18,918
Impairment of intangible assets
92,538
Shares issued for management fees
6,000
13,000
Stock-based compensation
2,227
Changes in operating assets and liabilities:
     
Prepaid expense and deposits
(113)
6,708
(113)
Accounts payable and accrued liabilities
175,628
6,633
342,967
Accounts payable and accrued liabilities – related
56,902
14,959
114,121
Due to related parties
11,965
 
     
Net Cash Used in Operating Activities
(31,042)
(256,601)
(789,315)
 
     
Investing activities
     
Acquisition of intangible assets
(10,000)
 
     
Net Cash Used by Investing Activities
(10,000)
 
     
Financing activities
     
Deferred financing costs
(4,500)
(4,500)
Proceeds from convertible debenture
32,500
32,500
Proceeds from loan payable
60,000
709,600
Repayments of loan payable
(149,449)
Proceeds from related parties
2,649
Repayments to related parties
(25,000)
Capital contribution
200,600
Proceeds from the issuance of common stock
42,523
 
     
Net Cash Provided by Financing Activities
28,000
60,000
808,923
 
     
Change in Cash
(3,042)
(196,601)
9,608
Cash, Beginning of Period
12,650
320,178
 
     
Cash, End of Period
9,608
123,577
9,608
 
     
Supplemental Disclosures
     
Interest paid
Income tax paid
 
     
Non-cash investing and financing activities
     
Debt discount due to beneficial conversion feature
32,500
32,500
Forgiveness of related party debt
2,649
Issuance of common shares to settle debt
580,055
Issuance of common shares for acquisition of assets
250,000
Issuance of preferred shares for acquisition of assets
7,500
Issuance of note payable for acquisition of assets
325,000

(The accompanying notes are an integral part of these consolidated financial statements)

 
-5-


HDS International Corp.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
(expressed in U.S. dollars)


1.                Nature of Operations and Continuance of Business

HDS International Corp. (the “Company”) was incorporated on November 3, 2008 under the laws of the State of Nevada.  A substantial portion of the Company’s activities has involved developing a business plan and establishing contacts and visibility in the marketplace and the Company has not generated any revenue to date.  The Company plans to engage in the business of providing renewable energy and eco-sustainability solutions based on its licensed technologies.

On June 11, 2012, HDS Energy and Ecosystems NB, Ltd., the Company’s wholly owned subsidiary, was incorporated in the Province of New Brunswick, Canada to manage the operations and other business development efforts.

Going Concern

These consolidated financial statements have been prepared on a going concern basis, which implies that the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The Company has generated no revenues to date and has never paid any dividends and is unlikely to pay dividends or generate significant earnings in the immediate or foreseeable future.  As of June 30, 2013, the Company had a working capital deficiency of $699,760 and an accumulated deficit of $1,403,300. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability to raise equity or debt financing, and the attainment of profitable operations from the Company's future business. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. These consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. 


2.                Summary of Significant Accounting Policies

a)      Principles of Consolidation

The consolidated financial statements for the periods ending June 30, 2013 and December 31, 2012 include the accounts of HDS International Corp. and HDS Energy and Ecosystems NB, Ltd., the Company’s wholly owned subsidiary effective June 11, 2012. All intercompany transactions and balances have been eliminated in consolidation.

b)      Basis of Presentation

These consolidated financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States, and are expressed in US dollars. The Company’s fiscal year-end is December 31.

c)      Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles in the United States 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 revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to long-lived assets, convertible debentures, stock-based compensation and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.

d)      Cash and Cash Equivalents

The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents. As of June 30, 2013 and December 31, 2012, the Company had no cash equivalents.

e)      Intangible Assets

Intangible assets are carried at the purchased cost less accumulated amortization. Amortization is computed over the estimated useful lives of the respective assets, generally from fifteen to twenty years.

 
-6-


HDS International Corp.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
(expressed in U.S. dollars)


2.                Summary of Significant Accounting Policies (continued)

f)      Impairment of Long-Lived Assets

Long-lived assets and certain identifiable intangible assets to be held and used are reviewed for impairment whenever events or changes in circumstance indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. Measurement of an impairment loss for long-lived assets and certain identifiable intangible assets that management expects to hold and use is based on the fair value of the asset. Long-lived assets and certain identifiable intangible assets to be disposed of are reported at the lower of carrying amount or fair value less costs to sell.

g)      Beneficial Conversion Features

From time to time, the Company may issue convertible notes that may contain an imbedded beneficial conversion feature. A beneficial conversion feature exists on the date a convertible note is issued when the fair value of the underlying common stock to which the note is convertible into is in excess of the remaining unallocated proceeds of the note after first considering the allocation of a portion of the note proceeds to the fair value of the warrants, if related warrants have been granted. The intrinsic value of the beneficial conversion feature is recorded as a debt discount with a corresponding amount to additional paid in capital. The debt discount is amortized to interest expense over the life of the note using the effective interest method.

h)      Development Stage Company

The Company is currently considered a development stage company as defined by ASC 915-10-05. As a development stage enterprise, the Company discloses the deficit accumulated during the development stage and the cumulative statements of operations and cash flows from inception to the current balance sheet date. An entity remains in the development stage until such time as, among other factors, revenues have been realized. To date, the development stage of the Company’s operations consists of developing the business model and marketing concepts.

i)       Basic and Diluted Net Loss Per Share

The Company computes net loss per share in accordance with ASC 260, Earnings Per Share, which requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net loss available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing Diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive.

j)       Interim Consolidated Financial Statements

These interim unaudited consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company’s financial position, results of operations and cash flows for the periods shown. The results of operations for such periods are not necessarily indicative of the results expected for a full year or for any future period.

k)      Income Taxes

Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company has adopted ASC 740, Income Taxes, as of its inception. Pursuant to ASC 740, the Company is required to compute tax asset benefits for net operating losses carried forward. The potential benefits of net operating losses have not been recognized in these financial statements because the Company cannot be assured it is more likely than not it will utilize the net operating losses carried forward in future years.

l)       Comprehensive Loss

ASC 220, Comprehensive Income, establishes standards for the reporting and display of comprehensive loss and its components in the financial statements. As at June 30, 2013 and December 31, 2012, the Company has no items that represent comprehensive loss and, therefore, has not included a schedule of comprehensive loss in the financial statements.

 
-7-


HDS International Corp.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
(expressed in U.S. dollars)


2.                Summary of Significant Accounting Policies (continued)

m)     Financial Instruments

ASC 820, “Fair Value Measurements” and ASC 825, Financial Instruments, requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. It establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. It prioritizes the inputs into three levels that may be used to measure fair value:

Level 1

Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

Level 2

Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.

Level 3

Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

The carrying values of all of our other financial instruments, which include accounts payable and accrued liabilities and due to related parties approximate their current fair values because of their nature and respective maturity dates or durations.

n)      Recent Accounting Pronouncements

In February 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, to improve the transparency of reporting these reclassifications. Other comprehensive income includes gains and losses that are initially excluded from net income for an accounting period. Those gains and losses are later reclassified out of accumulated other comprehensive income into net income. The amendments in the ASU do not change the current requirements for reporting net income or other comprehensive income in financial statements. All of the information that this ASU requires already is required to be disclosed elsewhere in the financial statements under U.S. GAAP. The new amendments will require an organization to:

·     
Present (either on the face of the statement where net income is presented or in the notes) the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income - but only if the item reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period; and
·     
Cross-reference to other disclosures currently required under U.S. GAAP for other reclassification items (that are not required under U.S. GAAP) to be reclassified directly to net income in their entirety in the same reporting period. This would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is initially transferred to a balance sheet account (e.g., inventory for pension-related amounts) instead of directly to income or expense.

The amendments apply to all public and private companies that report items of other comprehensive income. Public companies are required to comply with these amendments for all reporting periods (interim and annual). The amendments are effective for reporting periods beginning after December 15, 2012, for public companies. Early adoption is permitted. The adoption of ASU No. 2013-02 is not expected to have a material impact on our financial position or results of operations.



 
-8-


HDS International Corp.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
(expressed in U.S. dollars)


2.                Summary of Significant Accounting Policies (continued)

n)      Recent Accounting Pronouncements (continued)
In January 2013, the FASB issued ASU No. 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, which clarifies which instruments and transactions are subject to the offsetting disclosure requirements originally established by ASU 2011-11. The new ASU addresses preparer concerns that the scope of the disclosure requirements under ASU 2011-11 was overly broad and imposed unintended costs that were not commensurate with estimated benefits to financial statement users. In choosing to narrow the scope of the offsetting disclosures, the Board determined that it could make them more operable and cost effective for preparers while still giving financial statement users sufficient information to analyze the most significant presentation differences between financial statements prepared in accordance with U.S. GAAP and those prepared under IFRSs. Like ASU 2011-11, the amendments in this update will be effective for fiscal periods beginning on, or after January 1, 2013. The adoption of ASU 2013-01 is not expected to have a material impact on our financial position or results of operations.

The Company has implemented all new accounting pronouncements that are in effect.  These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.


3.                Convertible Debenture

On June 7, 2013, the Company entered into a $32,500 convertible debenture with a non-related party. Under the terms of the debenture, the amount is unsecured, bears interest at 8% per annum, and matures on December 7, 2014. The note is convertible into shares of common stock 180 days after the date of issuance (December 4, 2013) at a conversion rate of 50% of the average of the five lowest closing bid prices of the Company’s common stock for the thirty trading days ending one trading date prior to the date the conversion notice is sent by the holder to the Company. As at June 30, 2013, the Company recorded accrued interest of $164 (December 31, 2012 - $nil), which has been included in accounts payable and accrued liabilities.

In accordance with ASC 470-20, “Debt with Conversion and Other Options”, the Company recognized the intrinsic value of the embedded beneficial conversion feature of $32,500 as additional paid-in capital and an equivalent discount which will be charged to operations over the term of the convertible note. During the six months ended June 30, 2013, the Company had amortized $1,372 (December 31, 2012 - $nil) of the debt discount to interest expense. As at June 30, 2013, the carrying value of the debenture was $1,372 (December 31, 2012 - $nil).


4.                Related Party Transactions

a)      
As at June 30, 2013, the Company owes $300,000 (December 31, 2012 - $300,000) to a company controlled by officers and directors of the Company.  The amount owing is unsecured, bears interest at 10% per annum, and due on demand.  As at June 30, 2013, the Company has recorded accrued interest of $57,096 (December 31, 2012 - $42,219) which has been included in accounts payable and accrued liabilities – related parties.

b)      
As at June 30, 2013, the Company owes $18,725 (December 31, 2012 - $nil) to companies under common control by officers and directors of the Company which has been included in accounts payable and accrued liabilities – related parties. The amounts owing are unsecured, non-interest bearing, and due on demand.

c)      
For the period ended June 30, 2013, the Company incurred $22,500 (December 31, 2012 - $43,500) to the President and CEO of the Company for consulting services. As at June 30, 2013, the Company owes $37,500 (December 31, 2012 - $15,000), which has been included in accounts payable and accrued liabilities – related parties. The amounts owing are unsecured, non-interest bearing, and due on demand.

d)      
For the period ended June 30, 2013, the Company incurred $800 (December 31, 2012 - $nil) to the President and CEO of the Company for reimbursement of expenses which has been included in accounts payable and accrued liabilities – related parties.


5.                Common Stock

On January 2, 2013, the Company issued 600,000 common shares with a fair value of $6,000 for consulting services. The fair value of the common shares was determined by using the closing trading price on the measurement date.

 
-9-


HDS International Corp.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
(expressed in U.S. dollars)


6.                Commitments

a)      
On October 12, 2011, the Company entered into a verbal consulting agreement with a non-related party whereby the Company will pay a monthly consulting fee for services provided in the amounts of $3,000. The agreement is for a one month term automatically renewing in each successive month unless earlier terminated. On July 18, 2012, the Board of Directors reviewed the consulting agreement and authorized an increase to the monthly consulting fee from $3,000 to $3,750 per month beginning July 2012. On October 1, 2012, the Board of Directors reviewed the consulting agreement and adjusted the consulting fee from $3,750 to $3,000 per month beginning October 2012.

During the period ended June 30, 2013, the Company incurred $18,000 (December 31, 2012 - $38,250) in consulting fees relating to this agreement, of which $24,000 (December 31, 2012 - $6,000) is recorded in the account payable balance as at June 30, 2013.

b)      
On October 12, 2011, the Company entered into a consulting agreement with a non-related party whereby the Company will pay a monthly consulting fee for services provided in the amounts of $27,500. The agreement is for a one month term automatically renewing in each successive month unless earlier terminated.

During the period ended June 30, 2013, the Company incurred $165,000 (December 31, 2012 - $330,000) in consulting fees relating to this agreement, of which $241,000 (December 31, 2012 - $91,000) is recorded in the account payable balance as at June 30, 2013.

c)      
On October 12, 2011, the Company entered into a consulting agreement with the President and CEO of the Company whereby the Company will pay a monthly consulting fee for services provided in the amounts of $3,000. The agreement is for a one month term automatically renewing in each successive month unless earlier terminated. On June 10, 2012, the Board of Directors authorized an increase to the monthly consulting fee from $3,000 to $6,000 per month beginning June 2012. On July 18, 2012, the Board of Directors reviewed the consulting agreement and adjusted the monthly consulting fee to $3,750 beginning July 2012.

During the year ended June 30, 2013, the Company incurred $22,500 (December 31, 2012 - $43,500) in consulting fees relating to this agreement, of which $37,500 (December 31, 2012 - $15,000) is recorded in the account payable – related parties balance as at June 30, 2013.

d)      
On January 2, 2013, the Company entered into a consulting agreement with The Holden Group, LLC (the “Consultant”) whereby the Company paid the Consultant $2,000 and issued 600,000 restricted common shares of the Company upon the execution of the agreement as well as pay $500 on each of the first, second and third month anniversaries of the agreement.


7.                Subsequent Events

On July 15, 2013, the Company entered into a $27,500 convertible debenture with a non-related party. Under the terms of the debenture, the amount is unsecured, bears interest at 8% per annum, and matures on January 16, 2015. The note is convertible into shares of common stock 180 days after the date of issuance (January 11, 2014) at a conversion rate of 50% of the average of the five lowest closing bid prices of the Company’s common stock for the thirty trading days ending one trading date prior to the date the conversion notice is sent by the holder to the Company.





 
-10-


ITEM 2.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION OR PLAN OF OPERATION.

Forward Looking Statements

This Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) contains forward-looking statements that involve known and unknown risks, significant uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed, or implied, by those forward-looking statements.  You can identify forward-looking statements by the use of the words may, will, should, could, expects, plans, anticipates, believes, estimates, predicts, intends, potential, proposed, or continue or the negative of those terms.  These statements are only predictions. In evaluating these statements, you should consider various factors which may cause our actual results to differ materially from any forward-looking statements.  Although we believe that the exceptions reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.  Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements.  We undertake no obligation to revise or update publicly any forward-looking statements for any reason.

We are considered a start-up corporation.  Our auditors have issued a going concern opinion on the financial statements for the year ended December 31, 2012.

RESULTS OF OPERATIONS

Working Capital

  
June 30,
2013
$
December 31,
2012
$
Current Assets
9,721
12,650
Current Liabilities
709,481
476,951
Working Capital (Deficit)
(699,760)
(464,301)

Cash Flows

  
June 30,
2013
$
June 30,
2012
$
Cash Flows from (used in) Operating Activities
(31,042)
(256,601)
Cash Flows from (used in) Financing Activities
28,000
60,000
Net Increase (decrease) in Cash During Period
(3,042)
(196,601)

Operating Revenues

We have not generated any revenues since inception.

Operating Expenses and Net Loss

Operating expenses for the three months ended June 30, 2013 were $129,167 compared with $136,526 for the three months ended June 30, 2012. The decrease in operating expenses was attributed to a decrease in consulting fees of $750, transfer again fees of 19 and general and administrative fees of $20,194 for day-to-day operating costs offset by an increase in professional fees of $13,604. For the six months ended June 30, 2013 the Company incurred operating expenses of $253,247 compared with $262,493 for the six months ended June 30, 2012. The decrease in operating expenses was attributed to a decrease in general and administrative fees of $34,500 for day-to-day operating costs offset by an increase in consulting fees of $10,500, professional fees of $14,604 and transfer agent fees of $150.

During the six months ended June 30, 2013, the Company recorded a net loss of $271,021 compared with net loss of $290,402 for the six months ended June 30, 2012.  In addition to the above, the Company incurred a decrease of $4,634 of interest expense relating to debt balances and $5,501 of accretion expense for the fair value of the beneficial conversion feature on the convertible note issued in August 2011 which was fully accreted during fiscal 2012.

 
-11-


Liquidity and Capital Resources

As at June 30, 2013, the Company’s cash balance was $9,608 and total assets was $14,031, compared to cash balance and total assets of $12,650 as at December 31, 2012. The decrease in the cash balance was attributed to the use of cash during the period for day-to-day activities.  The increase in total assets was attributed to an increase in deferred finance costs.

As at June 30, 2013, the Company had total liabilities of $710,853 compared with total liabilities of $476,951 as at December 31, 2012. The increase in total liabilities is attributed to an increase of account payable and accrued liabilities of $232,530, $175,628 of which pertained to trade accounts payable and $56,902 pertained to related party accounts payable and accrued liabilities, as well as an increase in convertible debenture of $1,372, net of unamortized discount.

As at June 30, 2013, the Company has a working capital deficit of $699,760 compared with working capital deficit of $464,301 at December 31, 2012 with the increase in the working capital deficit attributed to the decrease of $3,402 in cash held to pay for day-to-day activities of the Company and an increase in accounts payable and accrued liabilities during the period as noted above.

Cashflow from Operating Activities

During the six months ended June 30, 2013, the Company used $31,042 of cash for operating activities compared to the use of $256,601 of cash for operating activities during the six months ended June 30, 2012.  The decrease in the use of cash for operating activities was attributed to the fact that the Company incurred less for general and administrative costs for the period for day-to-day activities which was offset by an increase in consulting fees related to the renewable energy and eco-sustainable technologies owned, as well as small increases for professional and transfer agent fees and the issuance of shares for management fees.

Cashflow from Financing Activities

During the six months ended June 30, 2013, the Company received $28,000 of proceeds from financing activities compared to $60,000 during the six months ended June 30, 2012. The decrease in proceeds from financing activities was due to the Company issuing a smaller loan this year than in the previous year, offset by incurring deferred financing costs.

Subsequent Developments

None

Going Concern

We have not attained profitable operations and are dependent upon the continued financial support from our shareholders, the ability to raise equity or debt financing, and the attainment of profitable operations from our future business. These factors raise substantial doubt regarding our ability to continue as a going concern.

Off-Balance Sheet Arrangements

We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to stockholders.

Future Financings

We will continue to rely on equity sales of our common shares in order to continue to fund our business operations. Issuances of additional shares will result in dilution to existing stockholders. There is no assurance that we will achieve any additional sales of the equity securities or arrange for debt or other financing to fund our operations and other activities.




 
-12-


Critical Accounting Policies

Our consolidated financial statements and accompanying notes have been prepared in accordance with United States generally accepted accounting principles applied on a consistent basis. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods.

We regularly evaluate the accounting policies and estimates that we use to prepare our consolidated financial statements. A complete summary of these policies is included in the notes to our consolidated financial statements. In general, management’s estimates are based on historical experience, on information from third party professionals, and on various other assumptions that are believed to be reasonable under the facts and circumstances. Actual results could differ from those estimates made by management.

Recently Issued Accounting Pronouncements

The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

ITEM 3.                      QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

ITEM 4.                      CONTROLS AND PROCEDURES.

Under the supervision and with the participation of our management, including the Principal Executive Officer and Principal Financial Officer, we have evaluated the effectiveness of our disclosure controls and procedures as required by Exchange Act Rule 13a-15(b) as of the end of the period covered by this report. Based on that evaluation, the Principal Executive Officer and Principal Financial Officer have concluded that these disclosure controls and procedures are not effective due to the material weaknesses resulting from the Board of Directors not currently having any independent members and no director qualifies as an audit committee financial expert as defined in Item 407(d)(5)(ii) of Regulation S-K, and controls were not designed and in place to ensure that all disclosures required were originally addressed in our financial statements. Please refer to our Annual Report on Form 10-K as filed with the SEC on March 28, 2013, for a complete discussion relating to the foregoing evaluation of Disclosures and Procedures.

There was no change in our internal control over financial reporting during the quarter ended June 30, 2013 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.


PART II - OTHER INFORMATION

ITEM 1A.                   RISK FACTORS.

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.




 
-13-


ITEM 6.                      EXHIBITS.

Exhibit
 
Incorporated by reference
Filed
Number
Description of Exhibit
Form
Date
Number
herewith
3.1
Articles of Incorporation.
S-1
3/24/09
3.1
 
3.2
Bylaws.
S-1
3/24/09
3.2
 
3.3
Amended and Restated Articles of Incorporation.
8-K
6/14/11
3.1a
 
3.4
Amended and Restated Articles of Incorporation.
8-K
8/17/11
3.1
 
10.1
Management Agreement between the Company and Mr. Mark
Simon dated March 23, 2010.
10-K
4/07/10
10.1
 
10.2
Promissory Note issued to Newton Management Ltd. dated
September 28, 2010.
8-K
10/08/10
10.1
 
10.3
Amended Management Agreement between the Company and
Mr. Mark Simon dated October 1, 2010.
8-K
11/10/10
10.1
 
10.4
Investors Relations Services Agreement with Blue Chip IR
dated October 1, 2010.
10-Q
11/15/10
10.3
 
10.5
Share Exchange Agreement with AmeriSure Pharmaceuticals
LLC dated May 13, 2011.
8-K
5/16/11
10.1
 
10.6
Promissory Note to Amerisure Pharmaceuticals, LLC dated
June 20, 2011.
8-K
6/29/11
10.1
 
10.7
Promissory Note to Serik Enterprises, Inc.
8-K
8/12/11
10.1
 
10.8
Settlement Agreement with Vail International Ltd.
8-K
8/12/11
10.2
 
10.9
Settlement Agreement with Newton Management Ltd.
8-K
8/12/11
10.3
 
10.10
Settlement Agreement with Mark Simon.
8-K
8/12/11
10.4
 
10.11
Settlement Agreement with Carrillo Huettel, LLC.
8-K
8/12/11
10.5
 
10.12
Asset Acquisition Agreement.
8-K
8/17/11
10.1
 
10.13
Promissory Note with Hillwinds Ocean Energy, LLC.
8-K
8/17/11
10.2
 
10.14
Settlement Agreement and General Mutual Release with Serik
Enterprises, Inc.
10-Q
11/21/11
10.14
 
10.15
Draw Down Convertible Promissory Note.
10-Q
11/21/11
10.15
 
10.16
Intellectual Property License Agreement with Hillwinds Energy
Development Corporation.
10-K
4/16/12
10.1
 
10.17
Professional Services Consulting Agreement with the Holden
Group, LLC – June 6, 2013.
8-K
6/17/13
10.1
 
10.18
Convertible Promissory Note – June 7, 2013.
8-K
6/17/13
10.2
 
10.19
Securities Purchase Agreement – June 7, 2013.
8-K
6/17/13
10.3
 
10.20
Convertible Promissory Note – July 15, 2013.
8-K
7/24/13
10.1
 
10.21
Securities Purchase Agreement – July 15, 2013.
8-K
7/24/13
10.2
 
14.1
Code of Ethics.
10-K
3/29/11
   
31.1
Certification of Principal Executive Officer and Principal
Financial Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002.
     
X
32.1
Certification of Chief Executive Officer and Chief Financial
Officer pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
     
X
101.INS
XBRL Instance Document.
     
X
101.SCH
XBRL Taxonomy Extension – Schema.
     
X
101.CAL
XBRL Taxonomy Extension – Calculations.
     
X
101.LAB
XBRL Taxonomy Extension – Labels.
     
X
101.PRE
XBRL Taxonomy Extension – Presentation.
     
X
101.DEF
XBRL Taxonomy Extension – Definition.
     
X




 
-14-



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following person on behalf of the Registrant and in the capacities on this 14th day of August, 2013.

 
HDS INTERNATIONAL CORP.
 
(the “Registrant”)
     
 
BY:
TASSOS RECACHINAS
   
Tassos Recachinas
   
President, Principal Executive Officer, Principal Accounting Officer, Principal Financial Officer
























 
-15-


EXHIBIT INDEX

Exhibit
 
Incorporated by reference
Filed
Number
Description of Exhibit
Form
Date
Number
herewith
3.1
Articles of Incorporation.
S-1
3/24/09
3.1
 
3.2
Bylaws.
S-1
3/24/09
3.2
 
3.3
Amended and Restated Articles of Incorporation.
8-K
6/14/11
3.1a
 
3.4
Amended and Restated Articles of Incorporation.
8-K
8/17/11
3.1
 
10.1
Management Agreement between the Company and Mr. Mark
Simon dated March 23, 2010.
10-K
4/07/10
10.1
 
10.2
Promissory Note issued to Newton Management Ltd. dated
September 28, 2010.
8-K
10/08/10
10.1
 
10.3
Amended Management Agreement between the Company and
Mr. Mark Simon dated October 1, 2010.
8-K
11/10/10
10.1
 
10.4
Investors Relations Services Agreement with Blue Chip IR
dated October 1, 2010.
10-Q
11/15/10
10.3
 
10.5
Share Exchange Agreement with AmeriSure Pharmaceuticals
LLC dated May 13, 2011.
8-K
5/16/11
10.1
 
10.6
Promissory Note to Amerisure Pharmaceuticals, LLC dated
June 20, 2011.
8-K
6/29/11
10.1
 
10.7
Promissory Note to Serik Enterprises, Inc.
8-K
8/12/11
10.1
 
10.8
Settlement Agreement with Vail International Ltd.
8-K
8/12/11
10.2
 
10.9
Settlement Agreement with Newton Management Ltd.
8-K
8/12/11
10.3
 
10.10
Settlement Agreement with Mark Simon.
8-K
8/12/11
10.4
 
10.11
Settlement Agreement with Carrillo Huettel, LLC.
8-K
8/12/11
10.5
 
10.12
Asset Acquisition Agreement.
8-K
8/17/11
10.1
 
10.13
Promissory Note with Hillwinds Ocean Energy, LLC.
8-K
8/17/11
10.2
 
10.14
Settlement Agreement and General Mutual Release with Serik
Enterprises, Inc.
10-Q
11/21/11
10.14
 
10.15
Draw Down Convertible Promissory Note.
10-Q
11/21/11
10.15
 
10.16
Intellectual Property License Agreement with Hillwinds Energy
Development Corporation.
10-K
4/16/12
10.1
 
10.17
Professional Services Consulting Agreement with the Holden
Group, LLC – June 6, 2013.
8-K
6/17/13
10.1
 
10.18
Convertible Promissory Note – June 7, 2013.
8-K
6/17/13
10.2
 
10.19
Securities Purchase Agreement – June 7, 2013.
8-K
6/17/13
10.3
 
10.20
Convertible Promissory Note – July 15, 2013.
8-K
7/24/13
10.1
 
10.21
Securities Purchase Agreement – July 15, 2013.
8-K
7/24/13
10.2
 
14.1
Code of Ethics.
10-K
3/29/11
   
31.1
Certification of Principal Executive Officer and Principal
Financial Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002.
     
X
32.1
Certification of Chief Executive Officer and Chief Financial
Officer pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
     
X
101.INS
XBRL Instance Document.
     
X
101.SCH
XBRL Taxonomy Extension – Schema.
     
X
101.CAL
XBRL Taxonomy Extension – Calculations.
     
X
101.LAB
XBRL Taxonomy Extension – Labels.
     
X
101.PRE
XBRL Taxonomy Extension – Presentation.
     
X
101.DEF
XBRL Taxonomy Extension – Definition.
     
X






 
-16-

 

EX-31.1 2 exh31-1.htm SARBANES-OXLEY 302 CERTIFICATION - PRINCIPAL EXECUTIVE AND PRINCIPAL FINANCIAL OFFICER. exh31-1.htm
Exhibit 31.1

SARBANES-OXLEY SECTION 302(a) CERTIFICATION

I, Tassos Recachinas, certify that:

1.
I have reviewed this Form 10-Q for the period ended June 30, 2013 of HDS International Corp.;

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.
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 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.
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:
August 14, 2013
TASSOS RECACHINAS
   
Tassos Recachinas
   
Principal Executive Officer and Principal Financial Officer


 
 

 

EX-32.2 3 exh32-1.htm SARBANES-OXLEY 906 CERTIFICATION - CHIEF EXECUTIVE AND CHIEF FINANCIAL OFFICER. exh32-1.htm
Exhibit 32.1





CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


In connection with the Quarterly Report of HDS International Corp. (the “Company”) on Form 10-Q for the period ended June 30, 2013 as filed with the Securities and Exchange Commission on the date here of (the “report”), I, Tassos Recachinas, Chief Executive Officer of the Company, certify, 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 this Report fairly presents, in all material respects, the financial condition and results of operations of the Company.


Dated this 14th day of August, 2013.

 
TASSOS RECACHINAS
 
Tassos Recachinas
 
Chief Executive Officer and Chief Financial Officer


 
 

 






 
 

 

EX-101.INS 4 hdsi-20130630.xml XBRL INSTANCE DOCUMENT. 0001454742 2013-06-30 0001454742 2012-12-31 0001454742 2013-04-01 2013-06-30 0001454742 2012-04-01 2012-06-30 0001454742 2013-01-01 2013-06-30 0001454742 2012-01-01 2012-06-30 0001454742 2008-11-03 2013-06-30 0001454742 2011-12-31 0001454742 2012-06-30 0001454742 2013-08-13 0001454742 2013-06-07 0001454742 2013-07-16 2015-01-16 0001454742 2013-07-16 2014-01-11 0001454742 2012-01-01 2012-12-31 0001454742 2013-06-29 0001454742 2013-01-01 2013-03-31 0001454742 2011-10-12 0001454742 2012-07-18 0001454742 2012-10-01 0001454742 2013-04-02 2013-06-30 0001454742 2012-06-10 0001454742 2013-01-02 0001454742 2013-01-01 2013-01-02 0001454742 2013-07-15 iso4217:USD xbrli:shares iso4217:USD xbrli:shares xbrli:pure 9608 12650 113 9721 12650 4310 14031 12650 295360 119732 114121 57219 300000 300000 709481 476951 1372 710853 476951 7500 7500 377203 376603 321775 283875 1403300 1132279 -696822 -464301 14031 12650 25000000 25000000 0.001 0.001 25000000 25000000 0.001 0.001 7500000 7500000 7500000 7500000 2000000000 2000000000 0.001 0.001 377203075 376603075 377203075 376603075 102750 103500 214500 204000 806750 442 20636 3103 37603 100838 43727 25893 12289 35393 20789 210853 82 101 251 101 18859 129167 136526 253247 262493 1181027 -129167 -136526 -253247 -262493 -1181027 2758 5501 16800 92538 10377 11218 17774 22408 94017 18918 10377 13976 17774 27909 222273 -139544 -150502 -271021 -290402 -1403300 377203075 347380000 376885045 347380000 -271021 -290402 -1403300 1372 5501 18172 190 190 18918 6000 13000 2227 -113 6708 -113 175628 6633 342967 56902 14959 114121 11965 -31042 -256601 -789315 10000 -10000 -4500 -4500 32500 32500 60000 709600 -149449 2649 -25000 200600 42523 28000 60000 808923 -3042 -196601 9608 12650 320178 9608 123577 32500 32500 2649 580055 250000 7500 325000 HDS International Corp. 10-Q --12-31 377203075 false 0001454742 Yes No Smaller Reporting Company No 2013 Q2 2013-06-30 <div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt; FONT-WEIGHT: bold">1.&#160;&#160;&#160;&#160;&#160;&#160; &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Nature of Operations and Continuance of Business</font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 44pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">HDS International Corp. (the &#8220;Company&#8221;) was incorporated on November 3, 2008 under the laws of the State of Nevada.&#160;&#160;A substantial portion of the Company&#8217;s activities has involved developing a business plan and establishing contacts and visibility in the marketplace and the Company has not generated any revenue to date.&#160;&#160;The Company plans to engage in the business of providing renewable energy and eco-sustainability solutions based on its licensed technologies.</font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 44pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">On June 11, 2012, HDS Energy and Ecosystems NB, Ltd., the Company&#8217;s wholly owned subsidiary, was incorporated in the Province of New Brunswick, Canada to manage the operations and other business development efforts.</font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 44pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Going Concern</font></font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 44pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">These consolidated financial statements have been prepared on a going concern basis, which implies that the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The Company has generated no revenues to date and has never paid any dividends and is unlikely to pay dividends or generate significant earnings in the immediate or foreseeable future.&#160; As of June 30, 2013, the Company had a working capital deficiency of $699,760 and an accumulated deficit of $1,403,300. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability to raise equity or debt financing, and the attainment of profitable operations from the Company's future business. These factors raise substantial doubt regarding the Company&#8217;s ability to continue as a going concern. These consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.&#160;</font> </div><br/> 699760 1403300 <div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt; FONT-WEIGHT: bold">2.&#160;&#160;&#160;&#160;&#160;&#160; &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Summary of Significant Accounting Policies</font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 22pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">a)&#160;&#160;&#160;&#160;&#160;&#160;Principles of Consolidation</font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 44pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">The consolidated financial statements for the periods ending June 30, 2013 and December 31, 2012 include the accounts of HDS International Corp. and HDS Energy and Ecosystems NB, Ltd., the Company&#8217;s wholly owned subsidiary effective June 11, 2012. All intercompany transactions and balances have been eliminated in consolidation.</font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 22pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">b)&#160;&#160;&#160;&#160;&#160;&#160;Basis of Presentation</font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 44pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">These consolidated financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States, and are expressed in US dollars. The Company&#8217;s fiscal year-end is December 31.</font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 22pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">c)&#160;&#160;&#160;&#160;&#160;&#160;Use of Estimates</font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 44pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">The preparation of financial statements in conformity with generally accepted accounting principles in the United States 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 revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to long-lived assets, convertible debentures, stock-based compensation and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company&#8217;s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.</font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 22pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">d)&#160;&#160;&#160;&#160;&#160;&#160;Cash and Cash Equivalents</font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 44pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents. As of June 30, 2013 and December 31, 2012, the Company had no cash equivalents.</font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 22pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">e)&#160;&#160;&#160;&#160;&#160;&#160;Intangible Assets</font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 44pt; MARGIN-RIGHT: 0pt" align="left"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">Intangible assets are carried at the purchased cost less accumulated amortization. Amortization is computed over the estimated useful lives of the respective assets, generally from fifteen to twenty years.</font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 22pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">f)&#160;&#160;&#160;&#160;&#160;&#160;Impairment of Long-Lived Assets</font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 44pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">Long-lived assets and certain identifiable intangible assets to be held and used are reviewed for impairment whenever events or changes in circumstance indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. Measurement of an impairment loss for long-lived assets and certain identifiable intangible assets that management expects to hold and use is based on the fair value of the asset. Long-lived assets and certain identifiable intangible assets to be disposed of are reported at the lower of carrying amount or fair value less costs to sell.</font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 22pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">g)&#160;&#160;&#160;&#160;&#160;&#160;Beneficial Conversion Features</font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 44pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">From time to time, the Company may issue convertible notes that may contain an imbedded beneficial conversion feature. A beneficial conversion feature exists on the date a convertible note is issued when the fair value of the underlying common stock to which the note is convertible into is in excess of the remaining unallocated proceeds of the note after first considering the allocation of a portion of the note proceeds to the fair value of the warrants, if related warrants have been granted. The intrinsic value of the beneficial conversion feature is recorded as a debt discount with a corresponding amount to additional paid in capital. The debt discount is amortized to interest expense over the life of the note using the effective interest method.</font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 22pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">h)&#160;&#160;&#160;&#160;&#160;&#160;Development Stage Company</font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 44pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">The Company is currently considered a development stage company as defined by ASC 915-10-05. As a development stage enterprise, the Company discloses the deficit accumulated during the development stage and the cumulative statements of operations and cash flows from inception to the current balance sheet date. An entity remains in the development stage until such time as, among other factors, revenues have been realized. To date, the development stage of the Company&#8217;s operations consists of developing the business model and marketing concepts.</font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 22pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">i) &#160;&#160;&#160;&#160;&#160;&#160;Basic and Diluted Net Loss Per Share</font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 44pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">The Company computes net loss per share in accordance with ASC 260, <font style="FONT-STYLE: italic; DISPLAY: inline">Earnings Per Share,</font> which requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net loss available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing Diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive.</font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 22pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">j)&#160;&#160;&#160; &#160;&#160;&#160;Interim Consolidated Financial Statements</font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 44pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">These interim unaudited consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company&#8217;s financial position, results of operations and cash flows for the periods shown. The results of operations for such periods are not necessarily indicative of the results expected for a full year or for any future period.</font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 22pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">k)&#160;&#160;&#160;&#160;&#160;&#160;Income Taxes</font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 44pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company has adopted ASC 740, <font style="FONT-STYLE: italic; DISPLAY: inline">Income Taxes,</font> as of its inception. Pursuant to ASC 740, the Company is required to compute tax asset benefits for net operating losses carried forward. The potential benefits of net operating losses have not been recognized in these financial statements because the Company cannot be assured it is more likely than not it will utilize the net operating losses carried forward in future years.</font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 22pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">l)&#160; &#160;&#160;&#160;&#160;&#160;Comprehensive Loss</font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 44pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">ASC 220, <font style="FONT-STYLE: italic; DISPLAY: inline">Comprehensive Income</font>, establishes standards for the reporting and display of comprehensive loss and its components in the financial statements. As at June 30, 2013 and December 31, 2012, the Company has no items that represent comprehensive loss and, therefore, has not included a schedule of comprehensive loss in the financial statements.</font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 22pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">m)&#160;&#160;&#160;&#160;&#160;Financial Instruments</font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 44pt; MARGIN-RIGHT: 0pt" align="left"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">ASC 820, <font style="FONT-STYLE: italic; DISPLAY: inline">&#8220;Fair Value Measurements&#8221;</font> and ASC 825, <font style="FONT-STYLE: italic; DISPLAY: inline">Financial Instruments,</font> requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. It establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument&#8217;s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. It prioritizes the inputs into three levels that may be used to measure fair value:</font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 44pt; MARGIN-RIGHT: 0pt" align="left"> <font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">Level 1</font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 44pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.</font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 44pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">Level 2</font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 44pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.</font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 44pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">Level 3</font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 44pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.</font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 44pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">The carrying values of all of our other financial instruments, which include accounts payable and accrued liabilities and due to related parties approximate their current fair values because of their nature and respective maturity dates or durations.</font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 22pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">n)&#160;&#160;&#160;&#160;&#160;&#160;Recent Accounting Pronouncements</font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 44pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">In February 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2013-02, <font style="FONT-STYLE: italic; DISPLAY: inline">Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income</font>, to improve the transparency of reporting these reclassifications. Other comprehensive income includes gains and losses that are initially excluded from net income for an accounting period. Those gains and losses are later reclassified out of accumulated other comprehensive income into net income. The amendments in the ASU do not change the current requirements for reporting net income or other comprehensive income in financial statements. All of the information that this ASU requires already is required to be disclosed elsewhere in the financial statements under U.S. GAAP. The new amendments will require an organization to:</font> </div><br/><table cellpadding="0" cellspacing="0" id="list" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 11pt; FONT-SIZE: 11pt; FONT-FAMILY: times new roman"> <tr valign="top"> <td align="right" style="WIDTH: 80px"> <div> <font style="display: inline; font-size: 9pt; font-family: Symbol, serif;">&#183;&#160;&#160; &#160;&#160;</font> </div> </td> <td width="1485"> <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">Present (either on the face of the statement where net income is presented or in the notes) the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income - but only if the item reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period; and</font> </div> </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" id="list-0" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 11pt; FONT-SIZE: 11pt; FONT-FAMILY: times new roman"> <tr valign="top"> <td align="right" style="WIDTH: 80px"> <div> <font style="display: inline; font-size: 9pt; font-family: Symbol, serif;">&#183;&#160;&#160; &#160;&#160;</font> </div> </td> <td width="1485"> <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">Cross-reference to other disclosures currently required under U.S. GAAP for other reclassification items (that are not required under U.S. GAAP) to be reclassified directly to net income in their entirety in the same reporting period. This would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is initially transferred to a balance sheet account (e.g., inventory for pension-related amounts) instead of directly to income or expense.</font> </div> </td> </tr> </table><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 44pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">The amendments apply to all public and private companies that report items of other comprehensive income. Public companies are required to comply with these amendments for all reporting periods (interim and annual). The amendments are effective for reporting periods beginning after December 15, 2012, for public companies. Early adoption is permitted. The adoption of ASU No. 2013-02 is not expected to have a material impact on our financial position or results of operations.</font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 44pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">In January 2013, the FASB issued ASU No. 2013-01, <font style="FONT-STYLE: italic; DISPLAY: inline">Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities</font>, which clarifies which instruments and transactions are subject to the offsetting disclosure requirements originally established by ASU 2011-11. The new ASU addresses preparer concerns that the scope of the disclosure requirements under ASU 2011-11 was overly broad and imposed unintended costs that were not commensurate with estimated benefits to financial statement users. In choosing to narrow the scope of the offsetting disclosures, the Board determined that it could make them more operable and cost effective for preparers while still giving financial statement users sufficient information to analyze the most significant presentation differences between financial statements prepared in accordance with U.S. GAAP and those prepared under IFRSs. Like ASU 2011-11, the amendments in this update will be effective for fiscal periods beginning on, or after January 1, 2013. The adoption of ASU 2013-01 is not expected to have a material impact on our financial position or results of operations.</font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 44pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">The Company has implemented all new accounting pronouncements that are in effect.&#160;&#160;These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.</font> </div><br/> <div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt; FONT-WEIGHT: bold">3.&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Convertible Debenture</font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 44pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">On June 7, 2013, the Company entered into a $32,500 convertible debenture with a non-related party. Under the terms of the debenture, the amount is unsecured, bears interest at 8% per annum, and matures on December 7, 2014. The note is convertible into shares of common stock 180 days after the date of issuance (December 4, 2013) at a conversion rate of 50% of the average of the five lowest closing bid prices of the Company&#8217;s common stock for the thirty trading days ending one trading date prior to the date the conversion notice is sent by the holder to the Company. As at June 30, 2013, the Company recorded accrued interest of $164 (December 31, 2012 - $nil), which has been included in accounts payable and accrued liabilities.</font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 44pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">In accordance with ASC 470-20, &#8220;Debt with Conversion and Other Options&#8221;, the Company recognized the intrinsic value of the embedded beneficial conversion feature of $32,500 as additional paid-in capital and an equivalent discount which will be charged to operations over the term of the convertible note. During the six months ended June 30, 2013, the Company had amortized $1,372 (December 31, 2012 - $nil) of the debt discount to interest expense. As at June 30, 2013, the carrying value of the debenture was $1,372 (December 31, 2012 - $nil).</font> </div><br/> 32500 0.08 2008-12-31 0.50 164 32500 1372 <div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt; FONT-WEIGHT: bold">4.&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Related Party Transactions</font> </div><br/><table cellpadding="0" cellspacing="0" id="list-1" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 11pt; FONT-SIZE: 11pt; FONT-FAMILY: times new roman"> <tr valign="top"> <td align="right" style="WIDTH: 56px"> <div> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">a)&#160;&#160;&#160;&#160; &#160;</font> </div> </td> <td width="1509"> <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">As at June 30, 2013, the Company owes $300,000 (December 31, 2012 - $300,000) to a company controlled by officers and directors of the Company.&#160;&#160;The amount owing is unsecured, bears interest at 10% per annum, and due on demand.&#160;&#160;As at June 30, 2013, the Company has recorded accrued interest of $57,096 (December 31, 2012 - $42,219) which has been included in accounts payable and accrued liabilities &#8211; related parties.</font> </div> </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" id="list-2" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 11pt; FONT-SIZE: 11pt; FONT-FAMILY: times new roman"> <tr valign="top"> <td align="right" style="WIDTH: 56px"> <div> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">b)&#160;&#160;&#160; &#160;&#160;</font> </div> </td> <td width="1509"> <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">As at June 30, 2013, the Company owes $18,725 (December 31, 2012 - $nil) to companies under common control by officers and directors of the Company which has been included in accounts payable and accrued liabilities &#8211; related parties. The amounts owing are unsecured, non-interest bearing, and due on demand.</font> </div> </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" id="list-3" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 11pt; FONT-SIZE: 11pt; FONT-FAMILY: times new roman"> <tr valign="top"> <td align="right" style="WIDTH: 56px"> <div> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">c)&#160;&#160;&#160; &#160;&#160;</font> </div> </td> <td width="1509"> <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">For the period ended June 30, 2013, the Company incurred $22,500 (December 31, 2012 - $43,500) to the President and CEO of the Company for consulting services. As at June 30, 2013, the Company owes $37,500 (December 31, 2012 - $15,000), which has been included in accounts payable and accrued liabilities &#8211; related parties. The amounts owing are unsecured, non-interest bearing, and due on demand.</font> </div> </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" id="list-4" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 11pt; FONT-SIZE: 11pt; FONT-FAMILY: times new roman"> <tr valign="top"> <td align="right" style="WIDTH: 56px"> <div> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">d)&#160;&#160;&#160; &#160;&#160;</font> </div> </td> <td width="1509"> <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">For the period ended June 30, 2013, the Company incurred $800 (December 31, 2012 - $nil) to the President and CEO of the Company for reimbursement of expenses which has been included in accounts payable and accrued liabilities &#8211; related parties.</font> </div> </td> </tr> </table><br/> 300000 300000 0.10 57096 42219 18725 22500 43500 37500 15000 800 <div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt; FONT-WEIGHT: bold">5.&#160;&#160;&#160;&#160;&#160;&#160; &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Common Stock</font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 44pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">On January 2, 2013, the Company issued 600,000 common shares with a fair value of $6,000 for consulting services. The fair value of the common shares was determined by using the closing trading price on the measurement date.</font> </div><br/> 600000 6000 <div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt; FONT-WEIGHT: bold">6.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160;&#160;&#160;&#160;&#160;&#160;&#160;Commitments</font> </div><br/><table id="list-5" style="width: 100%; font-family: times new roman; font-size: 11pt; margin-left: 30px;" cellspacing="0" cellpadding="0"> <tr valign="top"> <td style="width: 56px;" align="right"> <div> <font style="display: inline; font-family: Times New Roman, serif; font-size: 9pt;">a)&#160;&#160;&#160; &#160;&#160;</font> </div> </td> <td width="1509"> <div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;" align="justify"> <font style="display: inline; font-family: Times New Roman, serif; font-size: 9pt;">On October 12, 2011, the Company entered into a verbal consulting agreement with a non-related party whereby the Company will pay a monthly consulting fee for services provided in the amounts of $3,000. The agreement is for a one month term automatically renewing in each successive month unless earlier terminated. On July 18, 2012, the Board of Directors reviewed the consulting agreement and authorized an increase to the monthly consulting fee from $3,000 to $3,750 per month beginning July 2012. On October 1, 2012, the Board of Directors reviewed the consulting agreement and adjusted the consulting fee from $3,750 to $3,000 per month beginning October 2012.</font> </div> </td> </tr> </table><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 44pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">During the period ended June 30, 2013, the Company incurred $18,000 (December 31, 2012 - $38,250) in consulting fees relating to this agreement, of which $24,000 (December 31, 2012 - $6,000) is recorded in the account payable balance as at June 30, 2013.</font> </div><br/><table id="list-6" style="width: 100%; font-family: times new roman; font-size: 11pt; margin-left: 30px;" cellspacing="0" cellpadding="0"> <tr style="margin-left: 60px;" valign="top"> <td style="width: 56px;" align="right"> <div> <font style="display: inline; font-family: Times New Roman, serif; font-size: 9pt;">b)&#160;&#160;&#160; &#160;&#160;</font> </div> </td> <td width="1509"> <div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;" align="justify"> <font style="display: inline; font-family: Times New Roman, serif; font-size: 9pt;">On October 12, 2011, the Company entered into a consulting agreement with a non-related party whereby the Company will pay a monthly consulting fee for services provided in the amounts of $27,500. The agreement is for a one month term automatically renewing in each successive month unless earlier terminated.</font> </div> </td> </tr> </table><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 44pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">During the period ended June 30, 2013, the Company incurred $165,000 (December 31, 2012 - $330,000) in consulting fees relating to this agreement, of which $241,000 (December 31, 2012 - $91,000) is recorded in the account payable balance as at June 30, 2013.</font> </div><br/><table id="list-7" style="width: 100%; font-family: times new roman; font-size: 11pt; margin-left: 30px;" cellspacing="0" cellpadding="0"> <tr valign="top"> <td style="width: 56px;" align="right"> <div> <font style="display: inline; font-family: Times New Roman, serif; font-size: 9pt;">c)&#160;&#160;&#160; &#160;&#160;</font> </div> </td> <td width="1509"> <div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;" align="justify"> <font style="display: inline; font-family: Times New Roman, serif; font-size: 9pt;">On October 12, 2011, the Company entered into a consulting agreement with the President and CEO of the Company whereby the Company will pay a monthly consulting fee for services provided in the amounts of $3,000. The agreement is for a one month term automatically renewing in each successive month unless earlier terminated. On June 10, 2012, the Board of Directors authorized an increase to the monthly consulting fee from $3,000 to $6,000 per month beginning June 2012. On July 18, 2012, the Board of Directors reviewed the consulting agreement and adjusted the monthly consulting fee to $3,750 beginning July 2012.</font> </div> </td> </tr> </table><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 44pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">During the year ended June 30, 2013, the Company incurred $22,500 (December 31, 2012 - $43,500) in consulting fees relating to this agreement, of which $37,500 (December 31, 2012 - $15,000) is recorded in the account payable &#8211; related parties balance as at June 30, 2013.</font> </div><br/><table id="list-8" style="width: 100%; font-family: times new roman; font-size: 11pt; margin-left: 30px;" cellspacing="0" cellpadding="0"> <tr valign="top"> <td style="width: 56px;" align="right"> <div> <font style="display: inline; font-family: Times New Roman, serif; font-size: 9pt;">d)&#160;&#160; &#160;&#160;&#160;</font> </div> </td> <td width="1509"> <div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;" align="justify"> <font style="display: inline; font-family: Times New Roman, serif; font-size: 9pt;">On January 2, 2013, the Company entered into a consulting agreement with The Holden Group, LLC (the &#8220;Consultant&#8221;) whereby the Company paid the Consultant $2,000 and issued 600,000 restricted common shares of the Company upon the execution of the agreement as well as pay $500 on each of the first, second and third month anniversaries of the agreement.</font> </div> </td> </tr> </table><br/> 3000 3750 3000 18000 38250 24000 6000 27500 165000 330000 241000 91000 3000 6000 3750 22500 43500 37500 15000 2000 600000 500 <div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt; FONT-WEIGHT: bold">7.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160;&#160;&#160;&#160;&#160;&#160;&#160;Subsequent Events</font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 44pt; MARGIN-RIGHT: 0pt" align="left"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">On July 15, 2013, the Company entered into a $27,500 convertible debenture with a non-related party. Under the terms of the debenture, the amount is unsecured, bears interest at 8% per annum, and matures on January 16, 2015. The note is convertible into shares of common stock 180 days after the date of issuance (January 11, 2014) at a conversion rate of 50% of the average of the five lowest closing bid prices of the Company&#8217;s common stock for the thirty trading days ending one trading date prior to the date the conversion notice is sent by the holder to the Company.</font> </div><br/> 27500 EX-101.SCH 5 hdsi-20130630.xsd XBRL TAXONOMY EXTENSION - SCHEMA. 001 - Statement - Balance Sheets link:presentationLink link:definitionLink link:calculationLink 002 - Statement - Balance Sheets (Parentheticals) link:presentationLink link:definitionLink link:calculationLink 003 - Statement - Consolidated Statements of Operations (Unaudited) link:presentationLink link:definitionLink link:calculationLink 004 - Statement - Consolidated Statements of Cash Flows (Unaudited) link:presentationLink link:definitionLink link:calculationLink 005 - Disclosure - 1. Nature of Operations and Continuance of Business link:presentationLink link:definitionLink link:calculationLink 006 - Disclosure - 2. Summary of Significant Accounting Policies link:presentationLink link:definitionLink link:calculationLink 007 - Disclosure - 3. Convertible Debenture link:presentationLink link:definitionLink link:calculationLink 008 - Disclosure - 4. Related Party Transactions link:presentationLink link:definitionLink link:calculationLink 009 - Disclosure - 5. Common Stock link:presentationLink link:definitionLink link:calculationLink 010 - Disclosure - 6. Commitments link:presentationLink link:definitionLink link:calculationLink 011 - Disclosure - 7. Subsequent Events link:presentationLink link:definitionLink link:calculationLink 012 - Disclosure - 1. Nature of Operations and Continuance of Business (Details) link:presentationLink link:definitionLink link:calculationLink 013 - Disclosure - 3. Convertible Debenture (Details) link:presentationLink link:definitionLink link:calculationLink 014 - Disclosure - 4. Related Party Transactions (Details) link:presentationLink link:definitionLink link:calculationLink 015 - Disclosure - 5. Common Stock (Details) link:presentationLink link:definitionLink link:calculationLink 016 - Disclosure - 6. Commitments (Details) link:presentationLink link:definitionLink link:calculationLink 017 - Disclosure - 7. Subsequent Events (Details) link:presentationLink link:definitionLink link:calculationLink 000 - Disclosure - Document And Entity Information link:presentationLink link:definitionLink link:calculationLink EX-101.CAL 6 hdsi-20130630_cal.xml XBRL TAXONOMY EXTENSION - CALCULATIONS. EX-101.DEF 7 hdsi-20130630_def.xml XBRL TAXONOMY EXTENSION - DEFINITIONS. EX-101.LAB 8 hdsi-20130630_lab.xml XBRL TAXONOMY EXTENSION - LABELS. EX-101.PRE 9 hdsi-20130630_pre.xml XBRL TAXONOMY EXTENSION - PRESENTATION. XML 10 R8.xml IDEA: 3. Convertible Debenture 2.4.0.8007 - Disclosure - 3. Convertible Debenturetruefalsefalse1false falsefalsec2_From1Apr2013To30Jun2013http://www.sec.gov/CIK0001454742duration2013-04-01T00:00:002013-06-30T00:00:001true 1us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstractus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse02false 2us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlockus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalseterseLabel1falsefalsefalse00<div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt; FONT-WEIGHT: bold">3.&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Convertible Debenture</font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 44pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">On June 7, 2013, the Company entered into a $32,500 convertible debenture with a non-related party. Under the terms of the debenture, the amount is unsecured, bears interest at 8% per annum, and matures on December 7, 2014. The note is convertible into shares of common stock 180 days after the date of issuance (December 4, 2013) at a conversion rate of 50% of the average of the five lowest closing bid prices of the Company&#8217;s common stock for the thirty trading days ending one trading date prior to the date the conversion notice is sent by the holder to the Company. As at June 30, 2013, the Company recorded accrued interest of $164 (December 31, 2012 - $nil), which has been included in accounts payable and accrued liabilities.</font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 44pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">In accordance with ASC 470-20, &#8220;Debt with Conversion and Other Options&#8221;, the Company recognized the intrinsic value of the embedded beneficial conversion feature of $32,500 as additional paid-in capital and an equivalent discount which will be charged to operations over the term of the convertible note. During the six months ended June 30, 2013, the Company had amortized $1,372 (December 31, 2012 - $nil) of the debt discount to interest expense. As at June 30, 2013, the carrying value of the debenture was $1,372 (December 31, 2012 - $nil).</font> </div><br/>falsefalsefalsenonnum:textBlockItemTypenaThe entire disclosure for the entity's entire derivative instruments and hedging activities. Describes an entity's risk management strategies, derivatives in hedging activities and non-hedging derivative instruments, the assets, obligations, liabilities, revenues and expenses arising therefrom, and the amounts of and methodologies and assumptions used in determining the amounts of such items.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=7668309&loc=d3e80748-113994 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41638-113959 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4E -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624181-113959 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41635-113959 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 30 -Section 45 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6441202&loc=d3e80720-113993 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4J -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5708773-113959 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4H -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624258-113959 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(n)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5618551-113959 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624163-113959 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 44 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4K -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5708775-113959 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 25 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6886632&loc=d3e76258-113986 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 45 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=7668309&loc=d3e80784-113994 Reference 16: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41620-113959 Reference 17: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5580258-113959 Reference 18: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5579245-113959 Reference 19: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5579240-113959 Reference 20: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41641-113959 Reference 21: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624171-113959 Reference 22: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4D -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624177-113959 false0false3. Convertible DebentureUnKnownUnKnownUnKnownUnKnowntruefalsefalseSheethttp://hdsicorp.com/role/3ConvertibleDebenture12 XML 11 R6.xml IDEA: 1. Nature of Operations and Continuance of Business 2.4.0.8005 - Disclosure - 1. Nature of Operations and Continuance of Businesstruefalsefalse1false falsefalsec2_From1Apr2013To30Jun2013http://www.sec.gov/CIK0001454742duration2013-04-01T00:00:002013-06-30T00:00:001true 1hdsi_NatureofOperationandContinuanceofBusinessAbstracthdsi_falsenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse02false 2hdsi_NatureofOperationandContinuanceofBusinesshdsi_falsenadurationfalsefalsefalsefalsefalsefalsefalsefalseterseLabel1falsefalsefalse00<div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt; FONT-WEIGHT: bold">1.&#160;&#160;&#160;&#160;&#160;&#160; &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Nature of Operations and Continuance of Business</font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 44pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">HDS International Corp. (the &#8220;Company&#8221;) was incorporated on November 3, 2008 under the laws of the State of Nevada.&#160;&#160;A substantial portion of the Company&#8217;s activities has involved developing a business plan and establishing contacts and visibility in the marketplace and the Company has not generated any revenue to date.&#160;&#160;The Company plans to engage in the business of providing renewable energy and eco-sustainability solutions based on its licensed technologies.</font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 44pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">On June 11, 2012, HDS Energy and Ecosystems NB, Ltd., the Company&#8217;s wholly owned subsidiary, was incorporated in the Province of New Brunswick, Canada to manage the operations and other business development efforts.</font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 44pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Going Concern</font></font> </div><br/><div style="LINE-HEIGHT: 10.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 44pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt">These consolidated financial statements have been prepared on a going concern basis, which implies that the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The Company has generated no revenues to date and has never paid any dividends and is unlikely to pay dividends or generate significant earnings in the immediate or foreseeable future.&#160; As of June 30, 2013, the Company had a working capital deficiency of $699,760 and an accumulated deficit of $1,403,300. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability to raise equity or debt financing, and the attainment of profitable operations from the Company's future business. These factors raise substantial doubt regarding the Company&#8217;s ability to continue as a going concern. These consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.&#160;</font> </div><br/>falsefalsefalsenonnum:textBlockItemTypenaThe entire disclosure for the nature of an entity's business, the major products or services it sells or provides and its principal markets, including the locations of those markets. If the entity operates in more than one business, the disclosure also indicates the relative importance of its operations in each business and the basis for the determination (for example, assets, revenues, or earnings). Further, there is a substantial doubt about an entity's ability to continue as a going concern for a reasonable period of time (generally a year from the balance sheet date), disclose: (a) pertinent conditions and events giving rise to the assessment of substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time, (b) the possible effects of such conditions and events, (c) management's evaluation of the significance of those conditions and events and any mitigating factors, (d) possible discontinuance of operations, (e) management's plans (including relevant prospective financial information), and (f) information about the recoverability or classification of recorded asset amounts or the amounts or classification of liabilities.No definition available.false0false1. Nature of Operations and Continuance of BusinessUnKnownUnKnownUnKnownUnKnowntruefalsefalseSheethttp://hdsicorp.com/role/1NatureofOperationsandContinuanceofBusiness12 XML 12 R17.htm IDEA: XBRL DOCUMENT v2.4.0.8
6. Commitments (Details) (USD $)
0 Months Ended 3 Months Ended 6 Months Ended 12 Months Ended 56 Months Ended
Jan. 02, 2013
Jun. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Dec. 31, 2012
Jun. 30, 2013
Oct. 01, 2012
Jul. 18, 2012
Jun. 10, 2012
Oct. 12, 2011
Disclosure Text Block Supplement [Abstract]                          
Contractual Obligation One                         $ 3,000
Contractual Obligation One First Revision                     3,750    
Contractual Obligation One Second Revision                   3,000      
Professional and Contract Services Expense   18,000 102,750   103,500 214,500 204,000 38,250 806,750        
Contractual Obligation One Account Payable   24,000 24,000     24,000   6,000 24,000        
Contractual Obligation Two                         27,500
Contractual Obligation Two, Professional and Contract Fee Expense     165,000         330,000          
Contractual Obligation Two Account Payable   241,000 241,000     241,000   91,000 241,000        
Contractual Obligation Three                         3,000
Contractual Obligation Three First Revision                       6,000  
Contractual Obligation Three Second Revision                     3,750    
Contractual Obligation, Three Professional and Contract Fee Expense     22,500         43,500          
Contractual Obligation Three Account Payable   37,500 37,500     37,500   15,000 37,500        
Contractual Obligation 2,000                        
Stock Issued During Period, Shares, Issued for Services (in Shares) 600,000     600,000                  
Contractual Obligation, Due in Next Twelve Months $ 500                        
XML 13 R4.htm IDEA: XBRL DOCUMENT v2.4.0.8
Consolidated Statements of Operations (Unaudited) (USD $)
3 Months Ended 6 Months Ended 56 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Operating Expenses          
Consulting fees $ 102,750 $ 103,500 $ 214,500 $ 204,000 $ 806,750
General and administrative 442 20,636 3,103 37,603 100,838
Management fees         43,727
Professional fees 25,893 12,289 35,393 20,789 210,853
Transfer agent fees 82 101 251 101 18,859
Total Operating Expenses 129,167 136,526 253,247 262,493 1,181,027
Loss Before Other Expenses (Income) (129,167) (136,526) (253,247) (262,493) (1,181,027)
Other Expenses (Income)          
Accretion expense   2,758   5,501 16,800
Impairment of intangible assets         92,538
Interest expense 10,377 11,218 17,774 22,408 94,017
Loss (gain) on settlement of debt         18,918
Total Other Expenses (Income) 10,377 13,976 17,774 27,909 222,273
Net Loss for the Period $ (139,544) $ (150,502) $ (271,021) $ (290,402) $ (1,403,300)
Weighted Average Shares Outstanding (in Shares) 377,203,075 347,380,000 376,885,045 347,380,000  
XML 14 R10.htm IDEA: XBRL DOCUMENT v2.4.0.8
5. Common Stock
3 Months Ended
Jun. 30, 2013
Stockholders' Equity Note [Abstract]  
Stockholders' Equity Note Disclosure [Text Block]
5.                Common Stock

On January 2, 2013, the Company issued 600,000 common shares with a fair value of $6,000 for consulting services. The fair value of the common shares was determined by using the closing trading price on the measurement date.

ZIP 15 0001002014-13-000366-xbrl.zip IDEA: XBRL DOCUMENT begin 644 0001002014-13-000366-xbrl.zip M4$L#!!0````(`.YS#T-=R84X!C<``+.1`0`1`!P`:&1S:2TR,#$S,#8S,"YX M;6Q55`D``W\>#5)_'@U2=7@+``$$)0X```0Y`0``[%U[<]I(MO__5MWOH/5N M3>W4&EL/0.!DJ")@)TPILJ+QA^")Y\?`D9Y=QZ._ M'248X>43/QB=JK*LG=H>#0W/)$>\Y1G>M;=H;Y%E:]:2$O-DY$]/X08\H:@U M6:EI2I*\E7DBIMT\Y3?G3<<673;$/TP_F*!4D*PF-S5YWC*BM9%A3!:-AP9] M9%3C&SDX'-O[NJ:7>/O1H$NI.&L:?[Z$U@DLX6Q":"X8=B<'C4W]NJKHZ\3. M6\P?B)5E\4">\BRQ9_OZI#'"2KO=/F5W%TUI7CL`H)Q^?G=Y9XZ):]06&M`! M)9.DETC@C+)[MV0H,8)GV-/?CJCM3AP4(KLV#L@0Z,-(UN8C>/),K:/3F)#I M@Y4\AY)M_79DRO_NTNNA)O\>>=CXJ,/-`/]]2;S0#F>=Q06X9%MX<6B#53$H M)-61N4[V!F^/.C)TI]ZHZW7UY>GRL23]TR6#^:4)"6S?2K-D<@@["*\F-VN: M_/)T?FU!:?D<[^-IW,DYI72G%=YII4],5)+#[K1:@_]I2NE.J_^^"'Q7Z4X" ME.2]?\AC#AT-PC[XX'C4ZV#'+T^75R4IV9IX5J(MUY#YM1V%I26%I2Z%=8BZ MDA*6NH6PU(J$5>?"^MWP?C[-4GZT9C62POK)-$M86%5I5I,)2[ORIQ`<6S^/ M9LFMF@+"TGZH9NFIJ*8!N6^6[S5-/A0_VP6>>,-9R^71;:3./H!95 MD0Y+`#EE)/6'3LE4GK,JZ>G)80DI.S]1RL]/5%Y@5>.X<=BFP2-%>3>HJIE@ M><#=+Q,JN;#*&H;&#:,1Y^H';A@\16_LHB.19_,^1]0Z6M)_Z1*#1@'IQ"M. M9Q_N^B]/YQ>E)3U\/O'W@AP=&P&ARXG-_%&VL'C&[R8(KB<&V&Y(L"`YIVG9 M4Q!@2BCXR%7DXAJL'W26-T1ZM"!RFJ62IM\GGN_:WOQ>'H^"7JYRR=):#-RR M;QMD,P'**1-.8\#;J]U<)<>72,]Z!AU+>.\6%^E0)Z188]B%E?4XR2*F[1H. M_>U(/NJTFS(D+DE:G6T99->^T@P4M=F05SFD6=P$9&+8UOGSA'B4]*(@`'O: MO5,*%H?6TNZD^7MJ\J2<8KHK@RW$FZ&8YIEGPP)W+`N0'<]D_1\ M&M(K4J*W=4U)\"X@G]OO$B-;E[45$:]H[&8N.XAUE8MI^I$7TAMC9CPZI.M9 M<"6(B'5I&X^V8X;WFQ0K"L_)',E*V%MFIYP M#P7D.X4R*"%[16XUM-S.KQWTO8A[R9&9<,\Q*.U"JL*#Z%WHFU]+]+2!NEY( MN"3O]7T6YKW4`-?U/7;SH^%$)31+TW55UI*ZE:9U^%-C>*/M$N<122T6(TF!RYFK[[>&F MQ$Q35;V]YQXRC1_[C@63__-OD5TF+ZLUV\V6F@@6J\17S6H[`.M%5JLWZYJL M;`<@X>0A$ZM2'IG)SR9&.:-3!MM64Z8=L*7CQ!TKQ'2C<.P']G=B+9'%-25A MP0VN+L`E->1,!KB>76Z)8G=X:V2W%WB0TEX'8*)@N2SZW)"`D4B-[[(^)RQ+ M[:@CG\A)BQ#CV]D;V#62+0FV,(7)&_6MI_6+`1=@T]F8KHE!VA"UJX4$TBV3 MSBT';R.'3>,E@D1(C4HCL2F-RFB-WM@T0IR#0(*_&H.AS*\Y_<&4MNN*D*V\986"6V'Q<(!9CN$>I68;`T M5#X&@XP+V4D3^9Q=3DX7"QAUJH"S2?GX-+X*.-=Y#F1O(KI.^I&J@%4AK&)@ M-X$_))2RN@#,$7K`&5^TO2/!U#8)C=?KUCG?XO?/,G,36=4;J=Q:A/-*>:(\ MX.)WP+*`M89\"("+W\/*Y(Y*_3``%[\+E0$LU^6#`%S\/E(:<$MN5J'#_&5W M?*)KN;9G4W@*WVVOT-KJ]43%9@._3F7H1$U+E9M:?SN`E2$4M14%[FJMK2"F,5Z'8Q)<&H]^$"\1QBW7+@6)HJMKNJHO MP17R6A,N+\AZ***FJC9:;2W?IR"+M>YN$P;A6*>JK?:>,`B;7$/;FQS$(Y*^ M-SF(JJ::62'-`Y%&<>5[-BX;$!K&>GL?&!Z%&6YW1+P0(U-$0]^R#:\JI6TE MPLN6[+/>LD+TXJF=4@;^WO`+9WJ-P\0O:F:'*G_AV-9J-=JE>I"-=1/<,PO3 M,[9C#QX0B77",R^UK323P:Z(6=8R=T(E;(-:LZ$V?Q0J<M M)]M9NW]*%&`;+"@Q2EOQS^CS()TF5%-7U?2$(FC5I<3NI"L7, MT\8A.LJ\*-KZT%D9I8D MK#H_U=J->F(P4AQ*`!!/2QMR0U:K!R">C>J0>"G5`Q!/0MMR?1\2$,\]LYN< M5Q&D(7PB]F@<$JL[A1QU1*XB]Y$$U\.5I=U7!K7-#:O)0II:M."]%9`]=T1( MXWE'ZKK62N]D.:2."%G.?*6_U6K(]0,=$2$+W->(X$GA`1F#([>GA%L3F-7U M\-YXWHO;6L,O.V?:$=K.#FW_T'9W=>NQ9>::KA^$]G<#YX(\>>S;E+UC>1,0 MUX[<2I*CU'MP&UEF7Z0N`W''&?J/A"B>^"M;BG$=2/[R>J*,.'^ZFG2X+1&[5',,<"C>GF3LSW,`3?R3+VYG=S:=^$'[PP/8@&V MK6KAK+G<"+R65S6HA&6FB%K2$F$@L]*[A5IA85S982D^=\/JLJ!BX] M(`:^N\;_._#B@S_F!U/$DRU05+;E8O,9$<(1.G7,CL@9#-645!I-=>WXB"#)26.K[Y*PPC6UM2,DVJ$]=T=4X;2Z MVF[J_XD12I]G486V-9KM9'Z_)8+]]D%XQT>]G=PQ<5!]$%_OYB?4[-R)#1W( M.0ZE&MCM9F,=ZAR^.0*'>1H>&W83^'C`FO5J]@&R@8&W6#CMXN>Y*O.P-4V1 MZ^DJG2#WSCY@BT_&&\VFK.R&>Q_`A0.TWFIK2J,*X*#\F*_2>[]K?HOL@&07 M22O:79QZQWJ`!6*/"0T:OAXGW32MY-T=MJ%H^VER>@K%] M$0BJS535EDAHSV$NGF-OB7Q+#WM`R,7?PVRUDRJR#?3T`A@\A=OSX3]X)-+4 M<-!X;]CAW]F$HIII36I6LPW[G),I*@(O/+F!B61J!0T,@ADH6\DS#'..ZM[(K>!`\E(HLY\=S&:/LJ)OE.@*S&HA;GNHNI@< MJ\68_9!A=K"U1FJ3X@YBQ.1BX-$PB##S2.2>>]ALFYDTB++>`^(=ISE;(F:I M_84?C.PI\0C=4TK)\][-O+*)SC(;X@>#>=8GT!,#-`;(S`\AN`YZCF&[E<3= M!N0ZC60M<1L`.>]]FJ#GUP'V+_Z#56\H.ZP<_,E7I^,#EY M>5I$>:D2V*+OF\R_W,\FXCP5N?:>,T@^GB83Y+9D)V0P)QCE=^DF&&2BXG=JL'>C;R`W&!WH'2P'/2HB\2;D4Q MO%F2?8IT)X?W)^(X;SW_R;N#W-[W8):(?C'8L;<%U#JKGF!I8Q=P15RZ^&_: M*60H%?+B3GX[;N_5/%X)2IT\+\?O;^N)\-_YY_@*J:6CT!4H;T#\8;P(!7Z9 MG[ED>RQ`^,-7$;4Q=1+=\][YQ0E?6/94HN',(;_]\BWRPQ>7@ZOSVIOSP>LW M]V>2(I^HC4GX0KH__WQ?&USUSZ_@JHQ7^H.[F\ONPYGTZ("?>B&]Z]Z^'ES5 M+L\OYBWB*[><%%SB#"3#L4=>S.U+1$-[..-__#*"___UV7H1=QM_$.(0NI/" MN.!M>P[T^(5T<7UU7[OHOAM"/\S.I MC?C8WY_BGC[ZCK5$H9S\8KB3%W]5FO*+'7[C?5ATH0RIM;]QC47L;M>7%%>_"H]&32-W_9,>-@/<-XC^9X$J2+! M5P$D[5C"G!&R#0O^0M*.\41Q,/%W=GAF1NO@UA69&I:1J\I=B4:/[*-_-B!F M(078<7*+[BUH9;`K^@O0JV5)BV@RE5V"KDMVX")KEBND_01-`4GI6(-\*/('!8V2ZF[7#"2K+8 M.2S@C.E\.W+GITQD- MB0M,7AU+EZ%U(Q^H*T^=M>FAHJ&ROQ MQUX<>_X8&QHWZZ;--TTF86&ID."SY.[A<*/+=TM*KWWP M*7E^&G0C\-*#]M\S@M6.%OA^FC%HB%#@CVV+V>>0+Z]!^*08?MFZ-P2>*80$ M0CQP_60"/X^T+%RBM!@0%I3A1B#A9G<6D?GG:CV+([4SV5`$ MP_B5@+<$*A,CV=H/%LPE"DIC#VW30+=E!!X(EBZ_-=OM8[TIL]YC2K3\V%'\:(@H_J8^%P#YCJ54O%H@DFB-(2I)-,C5NV*/Z=SO!JHXG2& MJ:5A@R(1_FT?D+N%RP;#^=KT\3QW2],P0DR*6"CB:=30#ME()4(8PY+H[B_& MQ*<08OE@9HRT)Y64T7#0J?)FP,(E$P`&2:^4AQ#0U&;^`4(9B^Q MQF2@X".!A1DSNA#)ZV.@F9)?1AU5!)O+UW!"W-L+%Q77ADDKJC;A/W,KC3\C%'RK;?:46G(#> MG)?[KS2*U9>5BWAP-"__4JM)__ST[F/]7__\;$ZBYP>O MT;:^Z]/1P\S[T(^>7NM!6W^K?OEP/Z../C6_R\[OX3^>^N_[S='5\Q\7T:TY M^-3Z_?W[CQ^'E_35^W]T;T_[EFQ/Q[>CA_H@:-V\^:#>/]:=IGD>?/E\:=Y= M/'SJ6C.SK1JVK-%A0W]X>/=]],>#_DUNAN'75P_OK#].K?IT_&I\VNN^>7-_ MV;W^_.7F4?YYO__1'$:*?G_M?AW<#N[4 ML?Y9/F_?])^_?^O?M2]"Y:EU:YCN5>OKZ5CIA^[YYM^>G MUV]OOGW]E]2[NZW5LDM\=\O(%+\:@:M/8.<0$N@]C,LK3)'^K-:5K=:I/T>U M[BYR7?"`*WX;_&A"4Z2EJDAS7=G!P>U-653UYTGAC5_+C-=-`-'6GCB+3#DY M8KU%Q(:H\63M+U%GNTH<$ MA%=2XYK.(I5BZ6K\YAJ.;++`N[;"BV0%ZD*KR?$6=2$LQ!"LM))4%Q?DYA6J M$ZGK.!([AMF,LRIQX-!Y,:/DE=H<0FK<2Q79`Z+S\E1@-HY)>" M_O1!F]3\L90/P@-_\MS/#[+#\=S7H->:+"),7,X`%Y`A!:W))*:$ON,#Y/?P%UOQ MH7SRC-]G(\_(D_)V'^[2G;+`M1A!NH"3?0)1?5(&]$_K3^7?(/7K1=E#=R'0`/C)"'N%A209-. M0U]8\M)V\TT^SZ*SKCX@;-,EC1=U6$&,+?%\);AXRL>?>P%*(W?"HWVR%)-P M)2R5B.M"6,U#9.XB[TF4C)-E'?A[14Q84G9\&@6L0,PK-OBIAT(:G*NU6*5. M:#'>*'2T!5A72E9QM9FMJ<[/3+789L\$"29^EC;FE%'GM:B`C")PEC!Z9&HX M$1-OL:#C0+!2:_8EQ_=&-<>>S@MIX*O-Y79K+()")T&`<)WB1K\:6][-28@3 MYQJQ:GZ\896M%;J0O1K/<:6.P\5\8*4PZ#C^$TO]TC5\9$E9-;>PAYGA`M7G M6^I8^12PCVU`']@8/5#PP?^U=VV];5Q)^J\T`@>P`$HA*5&2DUD#BF7/>.") MC,C!8I\63;(I=:;9S>EF2];^^JW+N5^:%$7;HD.]));(<^K5@APYN@B+'$Z1')=C/#`$E(D$4(%X\$(?>3UIY^BUG>`N M\CDW;<&WF6,I^$HY2H]Z%!D/\'2,V)D<[,]V>B.NW;AJ^;I.1-8![6S6\4;< MP>3-3;&B"NP,O9%FZ=Q/6CK*;O3KPH*G>?$0>+0+C"*5PO/.$=NF:FMUF+"1 M.(=UU?T!FMCS MG'U>$J\">C-:I9S%7R*3D9%I,LZ6]VB(T!#6I5QZ:^WYMXH\_^8U,,(%5`\? M[A:SP6P:4F3V:LPJJ3E]DAJ#F3VN@HOX-/AU8F3\["V:+>HT\L6C:9-CN`[E M`3#NFUMXXD4.NX["1.8$-6RDS#$P8N"1+(%=9_"<82&W%(@M$#LB)#P\6%() M M(3;,=_WG762SI7L>7R'TH:=T]U0'1UDKJ5EGR5'GY/>X`$7AEG"#J("( MIZI!!KZF:%17A3=I_`M]`JB,MH1,O1,@5"FB_9':)INU18(:L(*I@EQ>"&>F MU(FUL43*QBR?+4'\!_1I4`M*,+?011%\T/OWO.KVS)[VGE7;GX!(^(#&S@R_`USFD#\IL##]Q1&&`#9GF\"`1PI//_R[!Y]G2#)D%]MB8R:V6`WF>A$?<`F>GZ4P,3Q(:BQ.^*PCE MDE?#VCWRSP"%SE!D$UO;<)1\Z*+42718Y_+RSB$9,W%9V1/DV=M\T>"\X,*B ML>W>N)I6(&@N.$.JH6ELJL#J+9X7Y'F7!,S-TR)=P'`07I1Z&%"_/<]+A+9<9CDO.>P5=C+C-RB1)R^9NXVS M*:()Q^IXQ5!TGC,^3U`U/;AFU^>!<>7X?@5[8H2Q#ZFT"$:F1DN9DG!3?,WB M9/YZ&'S_P,!#3,MF=RUN%[L8&3/-XYMS`E.KW$7E)"^SSXB%U$KQ'/:*,\G1 M43NAR.)"5/URZ=(8:UPR*,O`VO(:5'MIW4N7MQA*!#)2(\7+QR/08&I&`1WU M]B:Y%[41>DGN>^`Y("H_8N#@;_`7&;O<<5.`0FRF(T<.W$9TUW:>?MZ8*%58 M'$**'8JDC!QW\N[:8BGZEMI=U'F"D?G`9\R+'L,>;9\K8*.B_W(FHE M_[M]DHBZU`E2WH.\7F+.E?2-/Y\0^2Y)IR[O)7)7#CT5VI6)[]]*6VOH%`0" MRD.08TH%PJO&#\G%]9ODU6!T..@?]D?D?0P,Y+)OA'34BSIO'"DIPJ$D$S.5 MN-'E9S%BDS[Y,MHQ40!L,RRJ6:;B*G96GV&\<+9&B5%HY)^"LXM]=!BF0(?,J]Y^?N`Y5)\(FYMP_"`OR&7Y6^;=5&II^1$N(Q79V9L4 M7R+D1`YC3/L3WHT%AJ]QNT/(.&#*OO(U/.WW-D[8U63*'!8\<'\2N@$]ZPH( M]5X!5FV>^0HG(D0\55W=#48-,X)4J M"EC2EJ(L7%2(+`@B"%\IZ\+\7Q(0W&R@/!3;G9/`EH'W!C;!`\7H960#^GPD\: MV6SOQ`CJPZ;+V`P7*6=G]CFK)WF3!?0.IJ@24"@@25I_]F&"N8LX^\8Z11

1S(QT&3OV=A/,Y MIWRMM-AG=7H[)FU=IT(NCJ`MTW9*4-)'E"GPN+%1M0"??X-E(QD\E[)YDY9E MRVX9-8?/0:.`3F$_H)(MY*@.1SB9,L!>"WSZR#:,U&95)D&D[U1E\2"+%M09 MVC8:WJ=XJ/EUG8J,9058JI.WJ[`0'AD-N3Y95.(;7AA$8`GE`O/B08;C4&[J(+P""DZ6(O+G.D]G;<'I`*)0 M`A5K$.@Z(;"?U1/>)0;\[R?B:BPM4=+]*?TK*(_D85RG9$\UOT8!< M%]33UX#O3JJ;DIS`5K4R]30GJATR^D78IZ%P-?.J1IV@9`CA7#I*/K8U@OY(85=4^5MA./2$ M;345%@E:,P:>7>T\\I\R\UVNE6S&)D]#@I_@"Z"*BI"#5BV-H[1O&!I-WF`D M(AF*0%XHYX!=*1R4>.-LDF(\W7063D"`,L`!=6]"\GN>B<2\%^1'$Y`C^E-5RKPTG]N&V!*'.Y8KP-8!3YQ$7SME-H$03'@G9W&;3M@CY'@);(DR+X(KWT=)-GM%\`TTU M9OOKKB-[Z/>6.-KY=CB:4:/X'6(^J#&&-YD!7&R,&L:.7EBR0GH^'&V#LC7N MDJ.8*F]]JB*7E"W[.9]+?:FU?)E:F1S#"=P).")HHLQBT9/J?!-4>.^S[H4@ M@-&<=HR0HPI*)0=VVKJNVE.7LY!+):XP;Q(=K$>HALC1CU=E"5E1UPHT'I&&#(9W< MPX\:`S($2*]3H4Y5)4)$=%+:@EKS@G(S4S=X#5\URT#Z$*:YOKYT!HLZ!TH1 MMN-C9-7V((1+I#L1"8T$T'+)NL#FN7M&D__\UV!X7[Y^[@<\!/N&#W9P;[^] M8`]M)&8:<]W92J*P,;G/R.)'I55A'D56+P[I`[(I2M5PB)=\CXR3X"$8^HT9 MXVH:GS<8\SXCY6W7"U`'SGVX?T!;VLC-'E!8@6"0%/E]^(7))Z6*!A@ZB#0F MV6U6>4)(DO`@,VV<,2FN`&I.D=9K/DG_9?\2&%,]]``8(;@_,*ID%(0'`3VC MG7$!Y65R5Q4M)A>[(92\G*'61\4&S(IG+T6RHTGEP2^)FUU#6*Y#!$YCVHJJ MH4'$\%F9BH54#0--5_1YP*K@PY3`(H8515]4GF//(P/AR=585/X?/_3,\9AX MQ+ZESROJ\AVRP^,].]S21F[$#NTQ`I:65.W50Q60&NR`\J"XHV?=!8R#N9V) MUY4.TLFU_C+JR5>H_ADHN%.0X5>UM00.!ZS0)N"LM$$"*OZVX/Z97.@&R_-D M\6I7!EI;]%?@))=%6O-G%XNZ^LQYI0Q6TL61Y$5RK4L9$:HDOJGDE!:N*JC2 MXV7Y#0(\-P&9/FT%*N!Y281=\FZ63XK#_YY-0FD@9O'FNBKA_R=[Q-,3BUZX M=_]=-JY;Q._H+AS*4V@>P+4*M_Q:P7^.KN M:(Z`60C>W20WE'E"-=6T)Y$LN8R8@IP+&BA%R,29#F:QZC`+-9`_U MZ;8"\KV)T?#"':R-E:%KUMQO"_2A=IR%5V2=L,N:QD!MPE3VZ%5!+KB1LB,( M%V(P$WND%YSYCA,/K&KCE(R=J>IN&KW512*++*_9B8K5]UA)$\4@\@8I]P6L M=ML76`C/`X=P+0#*L9HF6=%D]Z0PVHT!.Y$87$7PCZ/KH^3O%QFJF_24CJWEU7(J[N:G7,3FTE6%`O,/"UO!,/H"]Z+?X$7-?'_ MDD^E:S9O)*>^SZ?+6_'K0;__H_BUQXDD[UT2[\5EU\A[+:8[&*@N"]XO(M_W M',1RUW@+EJ0#:5FRK!8=WQ#?F5KBI\;\@\"J_OO]Y:=__)R<]Q>??2^U/2J/ M*T_#O<7F9SPN+D+P6I#A)PZ;_/\RT9."_CU+YWD!'[I^F(^K0LHS-[XV.#_N M@%M[Y(0^&<>"F*OXR5VJM\<_+:?=)V!=JY/S46"+@SML;9ZODFRWY\A:)[AE MF"!#&\)']C++B7\&,GL4'TJ8;VFV&SY&BF?I&N+H2I.]V<`:.##2Q%4)!-(H M8H,1/`-H,=G]S+*)16G=R-8&A-TJX1;>(S'Y83+&01"XG0M9`23:T^2!%"9- MCQ`-#E=7Q6.-<5BVQL=2`H[KX()24&>JYRS#W]WJP;$;B+9CS'MDWM+-7RC_ MK0Y_F?^(\N7+R9W#_C.5/'O1LQ<]W[/H>5.#!7)(&8<(Z(A>)F!WS(UUB7:S M<$*`<\99(['4F3(,7&-.R)679AWK\)6*\>N#$,.>PB+>4V/"L;"E4C``"<>3AMNC>]R?2\JL)2NCQQZ_-'VI2B)$Z_>*7^^E9!\GKXVE_QOX)@WC&2,ZCS(G.Q%.RY$ MG85%G=^ALXQKK[C]0`U[FMK(*I4T[G/`A!(:78WH1F.H(J"=05)P0P[A?C+( M)L>/-N\=>K1N!_Q,YE-R3UY,=CP0E?:-73!B3!IMIRHWV5X6.?(XN\E+RLSF MPET*;3T8]9RU,=0:AUDXFW"4O*7N%)3_(_*'%ICRO91%MMQMDA]$;^'U'\EO MU9'T9>)WT86D4@&Q#B2FO02XBBS?3_4J)ZB]4U#&SX5,:.TR?]$A1FCW8;MH^9(WX0F,YIQ^*%`7>*> M*BQ9[?%J:@']IZ@W$:P*46FZC/XWIJ\5KGX.3YQ=T`KDBW@.UQ9/[-+!56*`.B!_7 M5;'/`4^L` M`.`Y-%PMX[:JN&`'J']I75?WK.69:]<'Y$5+]8WC-T(!(54L`SF?Z$,S(1V0 MVBO!Y^:>O*"T/.)B,HI,A=5MUB_/#KLZY@7Z?PS/LA[K)K\C=+B_"[SPQ$`_ M6<[TRA\KA5OW('#JB<;.MB'P%WM+-ODR^',7,?%0,2QY*3 MMOBCT:75P^RJ0W?3??#^=M/C^OC[G9_O\S()`*.9.0K7933 M?V13X#\W%\BL2)_1^M!WU1/^*UBMG5WACY_6%?YK]8=_HTN*N7+X4C8)W.#V M[MD^3'CEFTN8\WS6,\PER0*IN"NI-^C<2%X<#WNC?M^L^.9/<9*#;K`-##-\Q]1IW'M M_;)LYSU1G92*Y2/_5+X&7ON),#NX;KD/Q['+F*N">C.[!OK@O)],TX=&*%#A ME8FN&ZHCV$M%R@D?PP$N)37K?-?\'?NZC/H_JG83HB2>ZAYZIU(%D9&B&!KG M*A4A5/$\5!366IK,J0!-LUZ2UY7+",)J[=%$__D*KI7^$)53SW$(QAI/!434 M6*2[YW`46-D/$QE1WQ<%&+DVHQQ&4.WF[]L$^3=;UTH7@%=UAV`#7PQ.3_29 MN%3)IFO)8?*BS(L#:6VCSL0R7&;KYZ4'LG4'BV!NGU7QD5WB;KXS*%!0-3DY MZQ]2HKA.\[[$$O;T`:.U1A#YS$#!*]$+5J=]^Q=,%,=9FD7^/8W-:B>0K=4: MPGN^DC%3#22K=O\A]B+B4OW">6MT`729MVH/0/=9&I$38'0W;,`9A==4V7YD MXH%B%/IEZW831\FE+CG:Y)]EPT3VH=A/U]PB__EB5T/=8^#%H'=\-C2XJ'ZB MSC[A>U5N(:MI0:!/@"(V9,'UC"BD.X6B83,\]&*":"7U\%H56 MSY^B:+^6RS34]O%2C_,NG62,L447&.OC;3/]P5;0!_W_O6BN9F=2+8?-F.3S MM&C^ZX?^#Z^/AW!?37+#$ZPBQ5`4WTI?QWMQC+^C@%$$+F"%+H4#MB%._]D6 M;$3`_Z9([R=!;R8!7#^PE/)&"R+J"&Z.G M^AW'[#Z5CK6XIS**7J'XY*\EU;?3)H]_ZX*%LCS)KIO.%UT;H/9-!UWB;S\] M:J[7:^^K[@^E%RG:0741?,([S+MJV*3KD1&X)68'S:L9#GHIF/#'.IOG M[;R3JQR;M`^!]@'P3_Q?=]N!U6K25\[I.BI^9YOE(YHLGXRHR'?JE_BV7HF3 MW?!*B#N1T*7P%0+SFGQ+'/SAX+GB$;\Z('%T^D4!B=LU7=+U<^]6@12_#31Q MU'^UAR;RS!=-^(S<"H.V58/N&K#E^OU>'XRYJ`-"_ICV@O@2H0=3V>R))%-= M%44HWBY_*HRG8F05S4.&KE6UZL0GW2N1V$UDE:+%Z#T:1*L<=H-^R&.GAM*> M.\PXQEAM!@).AKWAX-6!XR"* M@P*C;J.8GRAVPZ4/;_"+FZ']?)&&VQ)_P^"]"=E"$3/8BY+L1(>^B&3BZ M/9`3-PJ(%.#&F.;EECF1/R^&'#:+*._'^,<#%_OL#H()T%35CWCHF[=7KMS` ML#EVAFH+`X;KCH(EO3`R'ZQ#[\O)V(*.SSH6-!B1B>C&JV,,?R_*Y%W?95%V MLA=E.RC*IGM1MA=ECQ)EYU&V+\TC',T25I&A(B*LSO+YN*T;51U2H"0\I)S\ M>00JJH.:4$'"G7-OZ4#D(^**K]>*2%ZV&08/5A_W\6 M;1$]8*(CL=XM$VW'N4TLAP)X?,QJ+'6(@,LN+$/'7A-^81"-KJ^8U;D;\M,? M^3F]X=H&%^7TMZJ4!=`VWMW16?_5J:9SC;FV2UWWA3T9#@>OGD(=W`KK1@`3 MV2Z%@_.SX<@XY_7F"R"?\(M7PE5U55\C)E?T*7_S5!J'#M)CY53;)J_["IX< M;TP>(6]$ADHC;@5(&P&Y,3)H"=:Y)29Z1N1N/O7K+TE[]U:#YO;%:+\(#;`V MV2=$]_!5>,_/8U2OG#0@`DU+Y=^#*7LM]DNS:MX+EUN/7(SIX%]I[?+M M][^]^^'UJ:.]/XZ.]1="/?PZUA$0.6LMHL]+6+F`\/R.-HJ<)E\26O^[%#>N MN?SU1<[IML"F7U8,&1=ADZI`[#ZV7<&C@'.4G'9X'?H_.O43/0>P46V1_;WS MM+[)RT-LB_=SR8J6*"X+Z=HSJ6ZB:F_S1*\I%<3M* M029Z.$TQ;9<5%@R:8#FJR"AU!CR/@*MEDJ78ZZR=`&E4A8^'XHHB\,>ZR./H M7-8*4ZI`=U4F_VQA2P;G/:-C.!=DNS^Y%)FGP""D.Q-:^\@K0CDSQ>?O[9JX1EA`]P4IN0FB-),X'"$5X6XX0X5#<,?GO>&HCT5BG6O8ZA\^" M0VHOAB=V@H`U%UFY!^[6Y@;`7?)64?U6QN!D;=RT&T5/=<`V]7J$U-+3[T,M M-9T9&@WJ]2;8Y%\N)9^LY:",XAJ.+9(>_%J(*9^I(+C765K6S:MOQ32;\Z^ M#_UF[W:3M*V79[!77/:*"_[$%1."!ET#>\<#%J`JXHR\'F^M)BXZSE8I.Q MZ45<)?-=;+`2Y6+SO8N/6-=*]V+,V>:ZV")K93^:X6CS1@IY#K\X:]SKG5]< M[WS`2F6/T#HY'\L_C>X$K2UYU3IRIWR*9#+5.GIG`*[N#RCPZQ$O7%0IW4@C M/=]KI-^71AI)%WJ$'KK72'="(^V$R(45TO7U4=3>_H'8L3+Y>UVUBU[RX<,; M[&48"[@:Y7/?\*@IW!M=$?<@J*1B6=INQYP<"@0"J474=,?&_R'&O\XGBI7Z MJS1Q>DXZ4[L0R+OLU2YF[X\SR MNEGBX<,13$6[B1R4,5;M4E"`L'9B6N=9O"BZ_%'T[(2>I+%QW?@V$SO^!LMV MI)-EFQ978WBH7+NQ["QL.3@EC/A@")8;&FR!/"$!$H^-;E<'C7WJ'9[D[Z`V M4U7F+H+.F*!S+F;J)2Z=C5819$WEI#7$OG---VPM^LZ9/MZO4%[5"O+LJ0)@ MS(]U-4.S#2M27Y13.8Z$/[[E),).&E\1SG$8P#FZB386#'.]F;UBJUL@>-T: MI>BTB"$#D03T@,.EE]!^RYUGG#ZU/7G:QR^GCBUGA!G^ZK)S"9 MH9'\$QM^G7<,'S,O1*HOQ+LL6^,6QM'!;GWBT8I=7(>2=3?V24M:_V$=][>R MIM7KV=X[&ZRFV+O+VZ2O^Z6]VH"\5=3=@@KS!:4YC;_&)N''UA;H0S[&@3C& MQS(D?[(UV#E]Z1$R_6DZ1V"V]1XW?N^K<"R1K/I44M;=^:_#LD2*ZS86M=:J MML6XCE>*.W^V]>_3MMC78*6,ZZ126R^!KW9>:29K*#*(W(MLZ:O!P=VZ]%M- MTAH.G?RF$)W;RM%:O9&7;?:^_`VH^P0&]EU&S28Z\[.Z=W>T+X2FSCFOW'<"/VCWS1H%.I#B$', MT3J-"!E1%VA$J`;;J4Z$JLWR*2U^]`T[$2I2./AULN]$B#^/Z42X`73,$*PQ M8;.=IES#8[8-1J*Y4MAWL597+B#F;S]]'M<%"\S_!U!+`P04````"`#N#5)U>`L``00E#@``!#D!``#M7&USVK@6_GYG]C_X9K_SA_@3%L(_NH!";6);F+X[>04VZ1+KC4/Z>CZ; M/=7G-Y[,[KR:B`M+]X]/O;MSQ6)1][Y=W$I1T(V\V9S^<%MO&P-H@PS"E`%L M"`"*KJAWL>X8@"$'A[!+D]XA_LK,;\N(2YES.AYLG[&7.:]I8X%FS! MGN:9?L6F0_CNA")[:`F+O&L#`GO<$I.BC.`P>W&:%6W\+J[\PQ6CCH5,P?TU ML,2;M`<0LA---'S7JBW>0=QN.&0HQ-/%E[KT65V)>37,D6&;\<\VQ)$M7'U< MG[M?LE:6`1U4+6<7Y4YQ8LV08G#&(3FG/K1&MQA/I) M`0>T'&,)Q!)>[)`YA@6ZT'IWXM),'X#A/R5*(:-EEQ!/BR669G9X[MP#M.OY MM/\<]^U<7H<6H_,K@L]\)IOS7?OW8`!]!U,%M2HL]-K5WR^L>J58B2P;"(@Q MMX!_7))KO>?[=^C4M6VOM0SB/CM_OD<<>XL,S%E]>8>8D+P[R9UH8XCZ`R8^ M>I3&(K1)X!`@\V8RA)A"A3X0#.3WD$-E7,*.+T%^38*=.J"ZGG<0-`?QNR*` MU+5C\EJ!/86@MI-M0$MWR@S7GS:1Y>MR MJF`,5SQX'P[U09Q'&:IB9SFSV@OB/?"+P^"\-RI)?"10!S5:!29#,HZ2#E[: MS#%^#!R+MTIOGEVT-C\DHD,`2ARC9S4,"U!:XKG+++SSF@Y7_`AZ<&DP3\,1 MY`(LIJW@-Y9TRYA=TK8=[#5\#RQ745]2Y> MPV4P1`Q82H)N"53ZHV$X,:14R:*!F&GU"%K.4)1>VPSTX8U8-A@21"'/*)&! M&(\97=OUPI**2Q#NKSZA)@/?V:ICZ&])D.][P]E/;\C$'QE?S=,\7=C/;+D5 M\W5!-.7@92,IDLAR4TAY9&\5=)=DAO#62O25Q1*U2RBK*TFQZ^B-H5A7Y;W- MJZ)Q=OR:L9)D20ZV0^;=)$X/4NK-'KQ)SA(3:\%M2$;(@-2'4+,T$`HY_4EX MJ\C+:P?A^-S:TZ/).%OA%X@ETT88429,'D&%^FV#3'=:C23:5O9DP6V\08,- M(*F#KD/\(H[204,*EOJ\$DFB#:1)HMR=A\,J5"/)&L81]91U?M:CRAVZQA<' M(Q'90LI\*SH$8,KS^U*?3]1B0'4IS[6`? M45)0^5B[Z7R9/5;=EU+Y= M?OKZ]?Z^5Z?77_\LM?2*F46C0:O_>%8CE\V/=_E.]\RZ,&[(]X>ZT:X^?BN9 M4Z.8!RA[2GOGAZ+FY0J=A_ZBU:NW\H/"0O2DV M*Y.7YTJ[6&6Y\64+&/:GG@-L?,YEG^B39W11_.:>5>]9%H^SMZ/SQM/?6KG= M\K<_QG#'FCT$B(ATI=&K809P7Q3!9\O\-Q/#HFIAN"2#]BD+@"R]E._*@;GVVS:PNM!SD*TG? M)!]4C]YS07"Q=SMFK,C?7C3!LZ,1XA9<3^^HJ#(N9"R)TQ7*=E%$0-\E=K>' M!`ZX=F@$9U)SW$:O`R:*5D6E<&FG7-'57EDZE1.9])X2/F`3AEZ\-YH-X15$ MO30)MY-HJM-L.>A#CU0X:AJ!UPVK'CBK.-NZ^FASFV&KVDH?%3CVZ3%+2 M31Q+]]C%J]P#A*F8-"%MX*"82TGM?BOHL??0$+1*@MA_L_.#%S=>WKYC$=/; M`)Z4HX-WVVUN(>7#:/%D"<.,K\%%0NN='MHU MX-:)<(K'4MZ;*=FB&8QTW#&HC#Y?I4)2X2%2D1#-G6P+KA!TT52&I:NI']=Q3$@-&F5 MO\:K`XNJBGF;X`YTLMNB72@BDSIPYCF*!*GN`!Q\##>X3X5HYC#3B3"=*0Q' M\O/G._>D%D]=9[-)HZ?Z?'0HW'2W<"37L^3$2K=Y)*'FSY^3V,?`N(9WK/-: M.#(E)>]$.^'^)=R`?:@K&COV1ZFRZX7T)$(51E#7%2_J72CU>LA"'%_5,8A0 MT$KT7MU9E^UGL&@O]*0*Z%54CJ7;FE[N_@=64_K M_P-02P,$%`````@`[G,/0^0KM1_P%0``5$$!`!4`'`!H9'-I+3(P,3,P-C,P M7V1E9BYX;6Q55`D``W\>#5)_'@U2=7@+``$$)0X```0Y`0``[5UM<]HZ%OZ^ M,_L?N-DONW.'2TC2INFT.T,@M-RF(3>D+[D[.QUA"]"ML:EED]!?OY)MP#:6 M+0D)XRSWRVVIK7/\/'HYY^CHZ,TO]7KM';2A"SQHUH:+&FK_TYO^JU:OM9WI M;&"@6L_VR+\:'II#\IL]AR[Y._GWB>?-7C<:CX^/OQGD46P@%V+'=PV(Z0^U M>OW?-?K?W__VA@IINY"*>%V[G_BUEC^N-5_4FN>OS\Y>'U_4/MVW:R?'S=/P M)?*&A>SO0X!A[6EJV?CM44S8T]"U?G/<<>/D^/BTL7SP*'SR]1/](?'\XVGP M=//BXJ(1_.OJ48RR'B3--AM?/UX/C`F<@CJRL0=L@PK`Z#4.?KQV#.`AQ^;0 MJ\9\@OZMOGRL3G^J-T_JI\W?GK"Y4I$\8WHK,?$&7C3"?SP*`*O5WKB.!>_@ MJ!9\XVMO,8-OCS":SBRJ>O#;Q(4CTI:)49V"??SR])@*^P?]Y1NA%CL6,BE) ME\"BGSR80.@=U6C#G^YZ*RWHXX;CSBC+#?J/#>:[C7^'/4"?>M]N@0MM;P(] M9``+;Z-MNBD]RO=LH@@<>.3/4R)-5.'TZXWE(%.K91O@2==R'D756[U']%*A M4_,&>+X+G5%_1JNT+LG9.'7O@.<9W'H42SRL< MT2]IN\BC$P47,(GG%>IQ/O"'&/[P2;M7C;,D[IJF\1<99C)&18U+-WW*4("PRA M]?;(Q_4Q`+-O*[>+Z`9[Y(\X$Z3@4T<`#X/OC5XF:#5/&M#R\/(7.E&=U(^; MD<__CQPIL;XEK_0]&#)85:5P*&$Y*R;8;+E)G0G[2U6BCL#74Z)W1JXSY>'% M<]A`.*X)W;='Q^39H`^_-HBA1CK9E14\1<8!'(08.X MU=#L1*N8!E:8PA)?H):4YEYFLGID@B`U8,4EJ*?IVO'.2=#.TM/;T4$0! MBTAJYHTD.9Y:&$,/MX;8HUL&.JA)2="VV*3,+?EE)PV)>O##Z*WOTNAU+@&, MN&_FF]HZ>C&NV=]`,^I;.OC>! MKO[U,TM,F8MH,0.9P$0\G#!YD.*@`T>0$&UVD4WC!6T'>_@&:N&!):KD`9'3 M"^.<,('2MTR$2NF;D?;3XDE_?83O:0Z^XK;C-0)#9)$/AKAEF\'&Q<2QB"!\ M]<-'WH*PC0SD"5F5HFW&5=\S2UX.H\(9:BL[/ZZ.A+&?]7I9AI!D[TO[`YF( M:)R.PK0+?`L6-(Y%-">_D$;-F!XZK2@!\24M*9S=-3'+B8"J/!X8*,RC0GP/ MFFO4"3>Z_Y1)@E5H/\O9;3Z\=V*"](Z]'&DE.Y.S;Y M;;&RY>&F*8)XX]A;&A?Y+906Z=K6P"@`AL/0DPL[KE.R;AP/+B=9+9%(AJ@R M!P]7=TS$*5EX:=J3BJFE>2ZKHFF>B9(6[U6-O\KIH59T"N/W5\\4C9+0++$` MQJU;-XH610G1/&YJUHLZ-\AU^ZB90$20OU">T1#+0/T,+%_3FI&24>%):A.O MB)J7JA?UEFD&P`#K%B"S9[?!#'G`TD$02U3)$696WTS$`5@H:5K*.W`.+6<6 M)%9X8`ROZ)G'F8LP7'8>P_"G?N`P=7P7V>/T&WJV"+;6JL28-@_/*G#7MR.W M.97H8#E#2D4MC3S<(I;.U;-4I+!FVSQ;9BF[&1I,