0001445866-12-000921.txt : 20121114 0001445866-12-000921.hdr.sgml : 20121114 20121114112209 ACCESSION NUMBER: 0001445866-12-000921 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 11 CONFORMED PERIOD OF REPORT: 20120930 FILED AS OF DATE: 20121114 DATE AS OF CHANGE: 20121114 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DM Products, Inc. CENTRAL INDEX KEY: 0001485029 STANDARD INDUSTRIAL CLASSIFICATION: [3949] IRS NUMBER: 450460095 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 333-165961 FILM NUMBER: 121201938 BUSINESS ADDRESS: STREET 1: P.O. BOX 2458 CITY: WALNUT CREEK STATE: CA ZIP: 94595 BUSINESS PHONE: 925-943-2090 MAIL ADDRESS: STREET 1: P.O. BOX 2458 CITY: WALNUT CREEK STATE: CA ZIP: 94595 10-Q 1 dm10q11022012.htm 10-Q dm10q11022012.htm


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 10-Q
 
[X]
Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
   
For the quarterly period ended September 30, 2012
 
 
[ ]
Transition Report pursuant to 13 or 15(d) of the Securities Exchange Act of 1934
   
For the transition period from __________ to __________
   
Commission File Number: 333-165961
 
DM Products, Inc.
(Exact name of registrant as specified in its charter)

Nevada
45-0460095
(State or other jurisdiction of incorporation or organization)
(IRS Employer Identification No.)

P.O. Box 2458
Walnut Creek, CA
(Address of principal executive offices)

925-943-2090
(Registrant’s telephone number)
_______________________________________________________________
(Former name, former address and former fiscal year, if changed since last report)
 
Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the issuer was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days [X] Yes [  ] No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). [ ] 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.

[ ] Large accelerated filer Accelerated filer
[ ] Non-accelerated filer
[X] 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   [X] No

State the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 273,339,011 common shares as of November 5, 2012.
 
 
 
1

 
 
 
 
 
 
2

 
 

Item 1.     Financial Statements


These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and the SEC instructions to Form 10-Q.  In the opinion of management, all adjustments considered necessary for a fair presentation have been included.  Operating results for the interim period ended September 30, 2012 are not necessarily indicative of the results that can be expected for the full year.
 

 
 
Consolidated Balance Sheets
 
(Unaudited)
 
             
   
September 30, 2012
   
December 31, 2011
 
ASSETS
           
Current Assets
           
    Cash and cash equivalents
   $ 17,362      $ 26,089  
    Royalties Receivable
    10,826       15,835  
    Prepaid Expense
    0       10,656  
Total Current Assets
    28,188       52,580  
                 
Property and Equipment - net
    503       728  
TOTAL ASSETS
   $ 28,691      $ 53,308  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
               
Current Liabilities
               
    Accounts Payable
   $ 52,070      $ 45,321  
    Accrued Expenses
    263,653       173,653  
    Sales Tax Payable
    2,424       2,424  
Total Current Liabilities
    318,147       221,398  
                 
Total Liabilities
   $ 318,147      $ 221,398  
                 
                 
                 
Stockholders' Equity (Deficit)
               
    Preferred Stock, $0.001 par value, 30,000,000 shares authorized, 0 shares issued and outstanding
    -       -  
    Common Stock, $0.001 par value, 400,000,000 shares authorized, 273,339,011 shares issued and outstanding (282,720,684 - 2011)
    273,339       282,721  
    Additional Paid In Capital
    642,345       632,963  
    Accumulated Deficit
    (1,496,052 )     (1,356,080 )
    Total DM Products, Inc. Stockholders' Equity (Deficit)
    (580,368 )     (440,396 )
    Non-Controlling Interest
    290,912       272,306  
Total Stockholders' Equity (Deficit)
    (289,456 )     (168,090 )
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT)
   $ 28,691      $ 53,308  

See accompanying notes to financial statements.


 
Consolidated Statements of Operations
 
(Unaudited)
 
                         
   
For the 3 months ended
   
For the 3 months ended
   
For the 9 months ended
   
For the 9 months ended
 
   
September 30, 2012
   
September 30, 2011
   
September 30, 2012
   
September 30, 2011
 
Revenues
                       
Royalty income
  $ 39,928     $ 113,087     $ 79,868     $ 165,545  
Total revenues
    39,928       113,087       79,868       165,545  
                                 
Operating expenses
                               
Professional Fees
    6,480       10,419       19,081       49,656  
Salary & Wages
    30,000       32,000       90,500       97,663  
Consulting
    268       10,298       12,768       19,527  
General & Administrative expenses
    28,138       15,002       78,885       49,460  
Total operating expense
    64,886       67,719       201,234       216,306  
                                 
Income (Loss) from operations and before non-controlling Interest
    (24,958 )     45,368       (121,366 )     (50,761 )
                                 
Less: Income Attributable to non-controlling interest
    9,484       27,782       18,606       39,901  
                                 
Income (Loss) before income taxes
    (34,442 )     17,586       (139,972 )     (90,662 )
                                 
Provision for income taxes
    -       -       -       -  
                                 
Net Income (Loss)
  $ (34,442 )   $ 17,586     $ (139,972 )   $ (90,662 )
                                 
                                 
                                 
Net Income (Loss) per common share-basic and fully diluted
  $ (0.0001 )   $ 0.0001     $ (0.0005 )   $ (0.0004 )
                                 
Weighted average common shares outstanding-basic and diluted
    276,283,624       239,937,352       276,283,624       239,937,352  

See accompanying notes to financial statements.


 
Consolidated Statements of Shareholders' Equity (Deficit)
 
(Unaudited)
 
                                     
   
Common Stock
   
Additional Paid In Capital
   
Non-Controlling Interest
   
Accumulated Deficit
   
Total Shareholders' Equity (Deficit)
 
   
Shares
   
Amount
                         
Balance, December 31, 2011
    282,720,684     $ 282,721     $ 632,963     $ 272,306     $ (1,356,080 )   $ (168,090 )
                                                 
Shares surrendered per settlement and release agreement
    (14,863,337 )     (14,864 )     14,864                       -  
                                                 
Shares issued per settlement and release agreement
    5,481,664       5,482       (5,482 )                     -  
                                                 
Net income (loss) for the period ended September 30, 2012
    -       -       -       18,606       (139,972 )     (121,366 )
                                      -          
Balance, September 30, 2012
    273,339,011     $ 273,339     $ 642,345     $ 290,912     $ (1,496,052 )   $ (289,456 )
 
See accompanying notes to financial statements.
 
 
6


Consolidated Statements of Cash Flows
(Unaudited)
             
   
For the 9 months ended
   
For the 9 months ended
 
   
September 30, 2012
   
September 30, 2011
 
Cash flows from operating activities
           
Net Loss
  $ (121,366 )   $ (50,760 )
Adjustment to reconcile net loss to net cash provided (used) by operating activities:
         
Depreciation
    225       300  
Changes in operating assets and liabilities:
               
Royalties receivable
    5,009       (37,706 )
Employee Advances
    -       5,000  
Prepaid Expenses
    10,656       (4,445 )
Accounts payable
    6,749       10,378  
Accrued Expenses
    90,000       90,000  
Net cash provided (used) by operating activities
    (8,727 )     12,767  
                 
Cash flows from financing activities
               
Net decrease in credit card balances
    -       (7,632 )
Net cash (used) by financing activities
    -       (7,632 )
                 
Net increase (decrease) in cash
    (8,727 )     5,135  
                 
Cash at beginning of period
    26,089       2,714  
Cash at end of period
  $ 17,362     $ 7,849  
                 
Supplemental disclosure of cash flow information:
               
Interest paid
  $ 734     $ 776  
Taxes paid
  $ 3,550     $ 5,250  

See accompanying notes to financial statements.

 
             
Nature of Operations
             
DM Products, Inc. (the Company) was incorporated on March 1, 2001 as Effective Sport Nutrition Corporation. Subsequently, on April 11, 2005, the Company changed its name to Midwest E.S.W.T Corp and on December 14, 2005, it changed its name again to DM Products, Inc.
             
On July 18, 2005, the Company acquired Direct Success, Inc. a California Corporation in exchange for 70% of the Company's Common Stock, making Direct Success, Inc. a wholly owned subsidiary of the Company. Midwest E.S.W.T agreed that a total of 114,851,043 shares of Restricted Common Stock were to be issued to shareholders of Direct Success, Inc.
             
The Company operates from Walnut Creek, California and it wholly owns Direct Success, Inc., which owns 75% of Direct Success, LLC 3, a limited liability company formed on or about August 16, 2002. Direct Success, Inc. entered into a joint venture with Buena Vista Infomercial Corporation which owns the remaining 25% of Direct Success, LLC 3. The purpose of Direct Success, Inc. is to market products through direct response television infomercials. The companies obtain the distribution, production and licensing rights to products in exchange for royalty agreements based on the sales of the products.  The Company sets up the production, marketing and the distribution of the products.
             
On July 14, 2010 the Company incorporated a wholly owned subsidiary corporation, Aliano, Inc., dba Aliano Westlake Village. The purpose of this fragrance and personal care division is to create, manufacture, distribute and sell prestige fragrances and beauty related products. Effective as of July 26, 2010, Aliano Inc. entered into an agreement with Portia Entertainment Group LLC for legal services described in the agreement. As per the agreement, Portia Entertainment Group LLC is entitled to receive a fee of 5% on the Net Income earned by Aliano Inc. for celebrity endorsees introduce by Portia.
             
On April 8, 2010, a Form S-1 Registration Statement was completed and submitted to the Securities and Exchange Commission. The registration filing was declared effective on October 15, 2010. On April 21, 2010, an Information Statement Form 211 was submitted to the Financial Industry Regulatory Authority (FINRA) for active trading on the Over the Counter Bulletin Board (OTCBB). The filing was approved on November 09, 2010.
             
On December 27, 2011 the Company dissolved Aliano, Inc., dba Aliano Westlake Village since the corporation has been unsuccessful  in raising sufficient capital to commence operations. As a result of this dissolution the intercompany loan between the Company and Aliano, Inc. were written off in the respective books with no effect in the consolidated balance sheet and in the consolidated statement of operations.

On April 11, 2012, Articles of Incorporation were filed with the California Secretary of State for the creation of a new division, ELK Films, Inc. This division has been established for both film production and distribution.
             
Basis of Consolidation        
             
The consolidated financial statements include the accounts of DM Products, Inc., Direct Success, Inc., Aliano, Inc. and the accounts of its 75% owned subsidiary Direct Success LLC 3. All material inter-company transactions have been eliminated.
             
Basis of Presentation           
             
The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars.
             
Accounting Basis           
             
The Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of America (“GAAP” accounting).  The Company has adopted a December 31 fiscal year end.
 
 
             
 
Cash and Cash Equivalents        
             
All highly liquid investments with maturities of three months or less are considered to be cash equivalents.  At September 30, 2012 and December 31, 2011, the Company had cash balances of $17,362 and $26,089, respectively.
             
Fair Value of Financial Instruments        
             
The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, prepaid expense, accounts payable, sales tax payable, and other current liabilities. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates, unless otherwise disclosed in these financial statements.
             
Income Taxes           
             
Income taxes are computed using the asset and liability method.  Under the asset and liability method, deferred income tax, assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws.  A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized. It is the Company’s policy to classify interest and penalties on income taxes as interest expense or penalties expense. As of September 30, 2012, there have been no interest or penalties incurred on income taxes.
             
Use of Estimates           
             
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period.  Actual results could differ from those estimates.
             
Revenue Recognition           
             
The Company records revenue in accordance with ASC Topic 605 - Revenue Recognition. During the period  ended September  30, 2012  revenues came from royalties from the contract Banjo Minnow the fishing lure with TriStar Products, Inc. Revenues derived from the Company license sales are recognized when (1) there is evidence of an arrangement, (2) collection of our fee is considered probable, and (3) the fee is fixed and determinable.
             
Direct Success entered into a manufacturing, marketing and distribution agreement with Banjo Buddies, who is the inventor of Banjo Minnow, a fishing lure which Direct Success LLC 3 had a license agreement to market the product since Oct 2002. The Company entered into a modification of said agreement in April 2005. On September 30, 2011 the Company exercised their option to extend the Banjo Minnow agreement until June 30, 2012. On or about May 11, 2005,  Direct Success LLC 3, subcontracted the manufacturing and distribution rights to TriStar Products, Inc.  In March 2007, Direct Success granted back to Banjo, the right to license and privilege for internet sales and small parts sale of the product. Under the agreement, Banjo will pay Direct Success 4% royalty on all gross sales of product. As of date of settlement, effective January 1, 2010, Direct Success no longer receives the 4% royalty for internet and part sales from Banjo Buddies. The revenues are strictly based on the contractual obligation contained in the agreement with Tristar Products, Inc., which are the royalties received from the sales of the Banjo Minnow. These royalty arrangements with Tristar provide the Company with a flat $4.00 (for unit sales under $18) and $5.00 (for unit sales over $18), per unit sold domestically, and $2.50 per unit sold internationally. The present retail price for the Banjo Minnow is $19.95.
             
Concentration of Risk           
             
The Company is earning (over 90%) the majority of the royalty income from Tristar Products, Inc. Since the Company is depending on Tristar Products, Inc., the inability of Tristar to perform in the future may have a material adverse effect on the Company’s financial condition.
 
 
             
Advertising Policy           
             
The Company recognizes advertising expense as incurred. The advertising expense for the three and nine month periods ended September 30, 2012 and September 30, 2011 are $0 and $150 respectively.
             
Basic Income (Loss) Per Share        
             
Basic income (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. There are no such common stock equivalents outstanding as of September 30, 2012.
             
Stock-Based Compensation        
             
The Company accounts for employee stock-based compensation in accordance with the guidance of FASB ASC Topic 718, Compensation – Stock Compensation, which requires all share-based payments to employees, including grants of employee stock options, to be recognized in the financial statements based on their fair values. In 2011, 19,999,999 common shares were issued at the fair market value of $0.0015 per share totaling to $30,000. There was no stock-based compensation granted during the period ended September 30, 2012.
             
The Company follows ASC Topic 505-50, formerly EITF 96-18, “Accounting for Equity Instruments that are Issued to Other than Employees for Acquiring, or in Conjunction with Selling Goods and Services,” for stock options and warrants issued to consultants and other non-employees.  In accordance with ASC Topic 505-50, these stock options and warrants issued as compensation for services provided to the Company are accounted for based upon the fair value of the services provided or the estimated fair market value of the option or warrant, whichever can be more clearly determined.  The fair value of the equity instrument is charged directly to operating expense and additional paid-in capital over the period during which services are rendered. In 2011, 22,783,333 common shares were issued at the fair market value of $0.0015 per share totaling to $34,175. There was no stock-based compensation issued to non-employees during the period ended September 30, 2012.
             
Recent Accounting Pronouncements        

The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position or cash flow.
        
Note 2: Property & Equipment        
             
Property and equipment are carried at cost. Major expenditures and those which substantially increase useful lives are capitalized. Maintenance, repairs and minor renewals are charged to operations when incurred. When property and equipment is sold or otherwise disposed of, the asset account and related accumulated depreciation account are relieved, and any gain or loss is included in operations. Once placed in service, depreciable assets are depreciated over their estimated useful lives using both accelerated and straight-line methods.
             
Depreciation expenses totaled $225 and $300 for the nine month periods ended September 30, 2012 and  September 30, 2011, respectively.
 
 

 
Note 3: Prepaid Expenses        
             
Prepaid expenses consisted of the following at September 30, 2012 and December 31, 2011:

   
2012
   
2011
 
Prepaid insurance
  $ 0     $ 10,656  
                 
Total Prepaid Expenses
  $ 0     $ 10,656  

           
 Note 4: Non-Controlling Interest        
             
The Company has owned 75% of Direct Success LLC 3 (LLC 3) since 2002. The assets and liabilities of Direct Success LLC 3 have been included in these consolidated financial statements. The 25% of LLC 3 not owned by the Company has been presented as a non-controlling interest in these financial statements.
           
Note 5: Accrued Expenses        
             
Accrued expenses consisted of the following at September 30, 2012 and December 31, 2011:
             
   
2012
   
2011
 
Accrued Wages
  $ 255,653     $ 165,653  
Accrued Directors' Fees
  $ 8,000     $ 8,000  
Total Prepaid Expenses
  $ 263,653     $ 173,653  
             
Wages are accrued under an employee agreement entered into on the 20th day of April, 2007 by and between the Company and its President. According to the agreement, employee's starting salary is $6,000 per month during the first 90 days following execution of the agreement or until $500,000 in capital is raised. After such period of time, employee's salary shall be increased to $10,000 per month. Should the company determine it in the best interest not to pay employee's entire monthly compensation, at any time, any such compensation shall be treated as deferred compensation and will accumulate on the books and provided to employee, at employee's sole discretion, taking into consideration the funds available and the best interest of the Company.
             
The accrued wages owed under the employment agreement as of September 30, 2012 and December 31, 2011, respectively, were $255,653 and $165,653.
             
Salary expense to the related party was $90,000 and $90,000 for the nine months ended September 30, 2012 and September 30, 2011, respectively.
 
The Board of Directors passed a resolution on October 15, 2011 to compensate Directors, Secretary, Treasurer, CEO, President and Board Chairman by issuing common stock annually. This policy is retroactive with an effective date of January 1, 2010. Per the policy the Company owed Kurtis Cockrum who is a Director, CEO, President and Board Chairman $6,000 worth of common stock, James Clarke who is a Director, Secretary and Treasurer $2,000 worth of common stock as of December 31, 2011. This amount has been recorded as director fees at December 31, 2011.
 
Note 6: Related Party Transactions        
             
The Company has entered into  a consulting contract with Michael DeBenon, Esq., a stockholder of the Company, for $6,000 per month on a month to month basis for general counsel. Legal expenses to the related party were $0 and $18,000 for the nine months ended September 30, 2012 and September 30, 2011, respectively.
 

             
 
Note 7: Common Stock           
             
The Company has 430,000,000 shares of capital stock, consisting of 400,000,000 shares of $0.001 par value common stock,  and 30,000,000 shares of $0.001 par value preferred stock. The Company had 273,339,011 shares of common stock issued and outstanding as of September 30, 2012 and 239,937,352 shares issued and outstanding as of September 30, 2011.
             
On March 26, 2012, 3,390,834 shares of $0.001 par value common stock owned by Celecia Family Trust were surrendered per a Settlement and Release Agreement.
             
On March 26, 2012, 3,390,834 shares of $0.001 par value common stock owned by Koontz Family Trust were surrendered per a Settlement and Release Agreement.
             
On March 26, 2012, 8,081,669 shares of $0.001 par value common stock owned by K & B Kerry Living Trust were surrendered per a Settlement and Release Agreement.
             
On March 26, 2012, 5,481,664 shares of $0.001 par value common stock were issued to Tony L. Kerry and Erika D. Kerry Revocable Trust per a Settlement and Release Agreement.
             
Note 8: Commitments and Contingencies        
             
The CEO and employees of the Company work from their homes. The fair market value of rents contributed by the related parties are estimated to be $50.00 per month, which is immaterial to the Company's financial statements, and has not been recorded on the Company's books.
 
Note 9: Income Taxes           
             
As of September 30, 2012, the Company had net operating loss carry forwards of approximately $1,472,067 that may be available to reduce future years’ taxable income through 2032. Future tax benefits, which may arise as a result of these losses, have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards.
             
The provision for federal income tax consists of the following for the nine months ended:     
             
   
September
 30,
2012
   
September 30,
2011
 
Federal income tax benefit attributable to:
           
Current Operations
  $ 41,264     $ 17,258  
Less: valuation allowance
  $ (41,264 )   $ (17,258 )
Net provision for Federal income taxes
 
~
   
~
 
             
The cumulative tax effect at the expected rate of 34% of significant items comprising our net deferred tax amount is as follows:
             
   
September
 30,
2012
   
December
 31,
 2011
 
Deferred tax asset attributable to:
           
Net operating loss carryover
  $ 502,331     $ 461,067  
Less: valuation allowance
  $ (502,331 )   $ (461,067 )
Net deferred tax asset
 
~
   
~
 
 
 
             

Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of $1,472,067 for federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, the net operating loss carry forwards may be limited as to use in future years.             

Note 10: Going Concern        
             
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern.  The Company has sustained substantial losses since inception, has a working capital deficit, and is in need of additional capital to grow its operations so that it can become profitable.
             
In view of these matters, the ability of the Company to continue as a going concern is dependent upon growth of revenues and the ability of the Company to raise additional capital.  Management believes that its successful ability to raise capital and increases in revenues will provide the opportunity for the Company to continue as a going concern.

Note 11: Subsequent Events        
             
There are no subsequent events to report.
 
 

 

Forward-Looking Statements

Certain statements, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives, and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.   These forward-looking statements generally are identified by the words “believes,” “project,” “expects,” “anticipates,” “estimates,” “intends,” “strategy,” “plan,” “may,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions.  We intend such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and are including this statement for purposes of complying with those safe-harbor provisions.  Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain.  Factors which could have a material adverse affect on our operations and future prospects on a consolidated basis include, but are not limited to: changes in economic conditions, legislative/regulatory changes, availability of capital, interest rates, competition, and generally accepted accounting principles. These risks and uncertainties should also be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements.  We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.  Further information concerning our business, including additional factors that could materially affect our financial results, is included herein and in our other filings with the SEC.

Executive Overview

We, through our wholly owned subsidiary, Direct Success, Inc., develop, finance, produce, market and distribute beauty, fashion, fitness and other products for sale through infomercial marketing and distribution channels. Profits are derived from inbound sales, outbound sales, up sells and retail distribution. Our primary objective is to penetrate this rapidly expanding industry by introducing consumer products to national and international markets through a series of infomercial campaigns. We intend to aggressively develop, finance, produce and market various new products for television infomercials. We intend to systematically expand our product list using a direct response model.

Our operational strategy consists of employing one of three distinct business alternatives for each product/infomercial:

·
Complete Project Funding - The Company would obtain the exclusive licensing rights to products and pay a nominal royalty (2-5%) of gross sales to the product developer;

·
Joint Venture Projects - The Company would share costs of production, marketing and distribution and would share revenues with product developers; and

·
Straight Royalty Arrangements - The Company would partially finance the infomercials in exchange for a fixed royalty on gross sales.

 
 
 
Of course, the key to our ability to continually attract new products and new product developers will, in large part, determine our success. As part of our strategy, we intend to, and have developed, strategic alliances with strong companies that are established operators in the infomercial and advertising industry.  These companies include TriStar Products, Inc. and Script-to-Screen.

Our business is focused on improving shareholder returns with a particular emphasis on profitability and capital productivity.

Economic and market conditions have been, and continue to be, disruptive and volatile.  The availability and cost of credit and currency volatility have obviously contributed to diminished expectations for the economy.  These conditions, along with reduced consumer confidence and increased unemployment, have contributed to reductions in consumer spending, particularly on discretionary products such as the ones offered by DM Products.

Although we continually adjust our procurement, marketing and production schedules, together with an acute awareness of production costs, it is still uncertain as to when the economy will recover, and it is not clear that our current activities will sufficiently offset the impact of the poor economy on our net sales.

Plan of Operation

Since its acquisition of Direct Success, Inc. in July, 2005, we have focused primarily on the manufacturing, marketing, sale, and distribution of the Banjo Minnow Fishing Lure System (“Banjo Minnow”), via a direct marketing campaign, primarily promoted through the production and airing of a thirty minute infomercial.  The exclusive rights to the Banjo Minnow were acquired through a Manufacturing, Marketing and Distribution Agreement entered into between Direct Success, LLC#3 and Banjo Buddies, Inc., dated October 10, 2003 (prior to the company’s acquisition of Direct Success, Inc

Direct Success, Inc., on or about August 16, 2003, entered into a joint venture with Buena Vista Infomercials, Inc. and formed Direct Success, LLC #3 (a Delaware Limited Liability Company) for the purpose of acquiring the exclusive manufacturing and distribution rights to the Banjo Minnow.   Direct Success, LLC #3 is 75% owned by Direct Success, Inc, while the remaining 25% is owned by Buena Vista Infomercials, Inc.

On or about October 10, 2003, Direct Success, LLC #3 entered into an agreement with Banjo Buddies Inc. (the owner and inventor of the lure) in which Banjo granted to Direct Success, LLC #3 the exclusive rights to manufacture, use, distribute, sell, advertise, promote and otherwise exploit the Banjo Minnow.  Direct Success, Inc. produced and financed the current infomercial featuring the Banjo Minnow and invested substantial capital in its promotion.

On or about May 11, 2005, Direct Success, LLC #3 subcontracted the manufacturing and distribution rights to TriStar Products, Inc.  Pursuant to this subcontract, Direct Success, LLC #3 receives a royalty, based on sales generated by TriStar.

Our rights under the Manufacturing, Marketing and Distribution Agreement terminated on June 30, 2012.  However, we expect to receive royalty payments from Tristar for several months following the contract’s termination.

 
 
Diversification

We realize the need to expand on the products offered to consumers, thereby diversifying our commitments and attracting new customers.  Our directors and officers are consistently approached with ideas for new products from various individuals and companies. It is expected that our officers and directors will continue to be “pitched” for new product ideas and that our referral sources will grow as we gain recognition in the infomercial industry. As opportunities arise, our officers and directors will present potential product ideas to our Board of Directors for its discussion and review.

In deciding which products to pursue, our Board will consider, among other things, the product's viability, costs of development and marketing, acceptable sales price point per unit, as well as the product's overall likelihood of success. In some instances, our Board may retain an outside consultant to evaluate such things as the product's likely market appeal or the product's optimal price point. Although we expect that our directors and officers will continue to be approached by inventors with viable products without any solicitation, the Board of Directors may decide to solicit product pitches or ideas in the future if the Board believes that such a strategy would be in the our best interest.

If the Board approves a product for further development, we intend to retain outside parties to produce the infomercial, assist in the design, the overall marketing campaign and sales process, and source and manufacture the product for competitive rates. When determining what parties to retain for these services, our Board of Directors will consider several factors, including a proven track record, cost and the ability to meet our timetable. We do not intend to retain any one service provider exclusively, and, instead we intend to seek competitive bids from numerous potential providers for each infomercial campaign.

Motion Picture Production and Distribution Division

On April 11, 2012, the Board of Directors of DM Products, Inc. (“DMP”) entered into a resolution for the formation of a wholly owned subsidiary corporation, ELK Films, Inc. (“ELK”), a California corporation. Articles of Incorporation were filed with the California Secretary of State on April 12, 2012. The subsidiary has been established to become a film distribution and production company in the motion picture industry.
Our pursuit of this line of business is, however, conditioned upon our ability to raise capital to fund this new line of business.

 
 
 
General

Our results of operations may vary significantly from period-to-period.  Our revenues will fluctuate due to the seasonality of our products, customer buying patterns, product innovations and competition, our ability to meet customer demand, media and advertising campaigns, and our ability to attract new customers and renew existing sales relationships.  In addition, our revenues are highly susceptible to economic factors, including, among other things:  the overall condition of the U.S. economy and economics of other countries where we market our products; and the availability of credit, both in the U.S. and abroad.

Results of Operations for the three and nine months ended September 30, 2012

Our revenue was $39,928 for the three months ended September 30, 2012, a decrease of $73,159 for the same period ended September 30, 2011, respectively. Our revenue was $ 79,868 and for the nine month periods ended September 30, 2012, a decrease of $85,677 for the same period ended  September 30, 2011, respectively.
 
For all periods mentioned above, our revenues were solely based on royalty payments, thus, our cost of goods sold during this period was zero. The contractual term of our rights concerning the Banjo Minnow terminated on June 30, 2012.  However, we anticipate receiving royalty payments for the next several months.

Revenues during the first quarter of our fiscal year are traditionally low due to the seasonality of the fishing industry.  Since our sole source of revenue, at this time, is based on sales of the Banjo Minnow Fishing Lure, management is not surprised with the amount received.  It has been the company’s experience that revenues increase during the second and third quarters of each fiscal year.

We have incurred an operating loss in the amount of $24,958 and net loss in the amount of $34,442 for the three months ended September 30, 2012 as compared to an operating profit of $45,368 and net profit in the amount of $17,586 for the nine month period ended September 30, 2012 and September 30, 2011, respectively.
 
Factors contributing to the increased expenses during this same period were primarily the result of our forming ELK Films and our due diligence in investigating the possibilities of this motion picture production and distribution division.   
 
 
Liquidity and Capital Resources

As of September 30, 2012, we had total current assets in the amount of $28,188, consisting of $17,362 in cash, $10,826 in Tristar Receivables, and $0.00 in Prepaid Expenses.  Our current liabilities as of September 30, 2012 were $318,147.  We had a working capital deficit of $(289,959) as of September 30, 2012.

Our current monthly fixed expenses (“Burn Rate”) are approximately $30,000.  Since the termination of our rights concerning the Banjo Minnow, and the cessation of royalties, we will shortly be faced with depletion of funds should we not manage to raise additional capital or put in place new revenue streams.
 
We expect to launch our film distribution and production division (ELK Films, Inc.) once sufficient capital is acquired for this purpose.    The expected short term cost associated with developing this line of business is roughly $ 100,000.  This money will be used to pay our management team, consultants, and to secure immediate distribution rights to targeted and completed films.

As of September 30, 2012, our cash reserves were $17,362 and we do have a line of credit which enables us to access $45,000.   If we need to and cannot raise additional capital, we would be forced to discontinue operations.
 
Off Balance Sheet Arrangements

As of September 30, 2012, there were no off balance sheet arrangements.
 
 
 


A smaller reporting company is not required to provide the information required by this Item.

Item 4T.     Controls and Procedures

Disclosure Controls and Procedures

We carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of September 30, 2012.  This evaluation was carried out under the supervision and with the participation of our Chief Executive Officer and our Chief Financial Officer, Kurtis Cockrum.  Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of September 30, 2012, our disclosure controls and procedures are effective.  There have been no changes in our internal controls over financial reporting during the quarter ended September 30, 2012.

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act are recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.

Limitations on the Effectiveness of Internal Controls

Our management does not expect that our disclosure controls and procedures or our internal control over financial reporting will necessarily prevent all fraud and material error. Our disclosure controls and procedures are designed to provide reasonable assurance of achieving our objectives and our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are effective at that reasonable assurance level.  Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the internal control. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, control may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate.
 
 
 
 

Item 1.     Legal Proceedings

We are not a party to any pending legal proceeding. We are not aware of any pending legal proceeding to which any of our officers, directors, or any beneficial holders of 5% or more of our voting securities are adverse to us or have a material interest adverse to us.

Item 1A:  Risk Factors

A smaller reporting company is not required to provide the information required by this Item.

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

There were no sales of equity securities during the period ended September 30, 2012.

Item 3.     Defaults upon Senior Securities

None

Item 4.     Mine Safety Disclosures
 
None
 
Item 5.     Other Information

None

Item 6.      Exhibits
 
Exhibit Number
Description of Exhibit
31.1
Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2
Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1
Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

 
 
 

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

 
DM Products, Inc.
   
Date:
November 14, 2012
   
 
By:       /s/ Kurtis Cockrum                                                                                                 
             Kurtis Cockrum
Title:    Chief Executive Officer and Director

 
 
21

 

EX-31.1 2 ex311.htm EXHIBIT 31.1 ex311.htm

CERTIFICATION

I, Kurtis Cockrum, certify that;

1.  I have reviewed this quarterly report on Form 10-Q for the quarter ended June 30, 2012 of DM Products, Inc. ( the  “registrant”);

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 statement s were made, not misleading with respect to the period covered by this report;

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

4.  The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15€ and 15d-15€ 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 consolidate subsidiaries, is made known to us by others within thos 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 statement s 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 first 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.

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

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

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

Date:  November 14, 2012


/s/ Kurtis Cockrum
By:     Kurtis Cockrum
Title:  Chief Executive Officer

 
 

 


 
 

 

EX-31.2 3 ex312.htm EXHIBIT 31.2 ex312.htm
CERTIFICATION

I, James Clarke, certify that;

1.  I have reviewed this quarterly report on Form 10-Q for the quarter ended June 30, 2012 of DM Products, Inc. ( the  “registrant”);

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 statement s were made, not misleading with respect to the period covered by this report;

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

4.  The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15€ and 15d-15€ 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 consolidate subsidiaries, is made known to us by others within thos 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 statement s 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 first 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.

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

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

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

Date:  November 14, 2012


/s/ James Clarke
By:     James Clarke
Title:  Chief Executive Officer

 
 

 


 
 

 

EX-32.1 4 ex321.htm EXHIBIT 32.1 ex321.htm

CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND
CHIEF FINANCIAL OFFICER
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 DM Products, Inc. (the “Company”) on Form 10-Q for the quarter ended June 30, 2012 filed with the Securities and Exchange Commission (the “Report”), I, Kurtis Cockrum and James Clarke, Chief Executive Officer and Chief Financial Officer, respectively, 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) of the Securities Exchange Act of 1934; and

2.  The information contained in the Report fairly presents, in all material respects, the consolidated financial condition of the Company as of the dates presented and the consolidated result of operations of the Company for the periods presented.


By:           /s/ Kurtis Cockrum

Name:                      Kurtis Cockrum
 
Title:           Principal Executive Officer and Director

Date:           November 14, 2012


By:           /s/ James Clarke

Name:           James Clarke

Title:           Principal Financial Officer and Director

Date:           November 14, 2012

 
 

 

GRAPHIC 5 graphic1.jpg begin 644 graphic1.jpg M_]C_X``02D9)1@`!`0$`8`!@``#_VP!#``@&!@<&!0@'!P<)"0@*#!0-#`L+ M#!D2$P\4'1H?'AT:'!P@)"XG("(L(QP<*#7J#A(6&AXB)BI*3E)66EYB9FJ*CI*6FIZBIJK*SM+6VM[BYNL+#Q,7& MQ\C)RM+3U-76U]C9VN'BX^3EYN?HZ>KQ\O/T]?;W^/GZ_\0`'P$``P$!`0$! M`0$!`0````````$"`P0%!@<("0H+_\0`M1$``@$"!`0#!`<%!`0``0)W``$" M`Q$$!2$Q!A)!40=A<1,B,H$(%$*1H;'!"2,S4O`58G+1"A8D-.$E\1<8&1HF M)R@I*C4V-S@Y.D-$149'2$E*4U155E=865IC9&5F9VAI:G-T=79W>'EZ@H.$ MA8:'B(F*DI.4E9:7F)F:HJ.DI::GJ*FJLK.TM;:WN+FZPL/$Q<;'R,G*TM/4 MU=;7V-G:XN/DY>;GZ.GJ\O/T]?;W^/GZ_]H`#`,!``(1`Q$`/P#W^BBBD`44 M44`%%%%`!1110`5R_CSQI;^!?#ZZI/:27323K;PPHP7B:I%-W6$Q2*/H2RG]* MJ77[15FDQ%GX:NI8NS3721M^0#?SKCOCGHFFZ%XKM%TJR@LHIK#>T4$81-P9 M@#@<9QC\J]GT+X<^#6\/:>TGAO3I'>VC9Y)(0S,2HR23SFF!B:!\=_#.JSQV M^HPW.DROQYD^'A!]-X/'U(`KT\S1B`S!@8]N_ M&K=K6YM$,LEHK%HY4'WL`_=8#GC@XQCG(7X!^+YKVTNO"]W*TC6D?VBS9N<1 M9`9,^BDKCV;':@!T7[16EM=2++X?OA;!CY4B3(SLO8E3@#Z9-7_#WQUT[7/$ MUMI,NCW%G#=.(HKEYE;YR?E#*!P#TSD]OJ%^+WA#P[I_PYU/4++1+&UO(YH9 M%G@@5&RTJJ>0.00QXKYZ$=UI\-CJL1QF9FA([/$5//YB@#[>K#\7>)[3P?X; MN=9O$>1(=JI$A`:1V.%49]S^636AI5_%JND66HPG,5U`DZ'V901_.O&OVB-9 MV66CZ*KJQ)*@N%%Q$PRI(B\PH0>H!X/KBOIX>"_#"65Q9+X?TU;6Y97FB6V0*Y'0 MD`=NU,#SBU_:'T1X`;O0]4BF[K"T*+)=)L8+*.:QWO%!&$7T>'?A]X07P]ISMX; MTR5WMHW=YK=9&8E022S`D\T`H->&_&+X:Z+I7AUO$.AV<=BUO*BW,,7$;H[!`0O0$ M,5Z8XS6Y\&M0O-6^'J()6-UI%P\$&6.'B.UPC9]CM'H`,4`>LT5GS:FJVEO+ M;Q/.]R0(HU(!/&3DGH``<_XU?'2D`M%%%`!1110`4444`%%%%`!1110`4444 M`%%%%`!1110`4444`%%%%`'SA^T3_P`C9IW_`&#F_P#0VKW_`$'_`)%W3/\` MKTB_]`%>`?M$_P#(V:=_V#F_]#:O?]!_Y%W3/^O2+_T`4P+SHLB,CJ&5A@@C M((KY:^':'0OC=;6,392*]NK+)XRH#J/_`$$5]2.ZQHSNP5%!+,QP`/6OEOX< M.VO?&RVOXUPLMY(-I#7GP,CU M1$RVG:Y)O/I'(B*?_'ME>W_&G_DE&L?[UO\`^CXZXOX8:1_;_P`$O$6E;=S7 M$\ZH,9^?RT*\?4"@#K?@EJ_]I_#>T@8YET^5[5LD$D`[E^GRL!^%>7>.V/C3 MX[1:3$WF017$-B-H)P%^>7\B7!_W:O?`;Q$FER>(K.Y+")+/^T,'@#R_E?Z' MYEJ+X'64NO?$;4?$-R-QMXI)BQY/FS,?_9=_YT`5]/P/VEF`[:O+_P"BFKZ6 MKYFTMBW[2DA)R?[9G'_CCU],T`?.?[1(+>*=+`ZFP8?^/FO1-(^+O@>UT*PA MFUM4EBMHT=#!(2"%`(^[7G?[1#%?%6EL.HL&/_CYKJ-,^`_AJ]TJSNI+[5`\ M\"2,%E3`)4$X^7WH`YSXK?%?3/$^BC0=!\][>25'N;J1/+5U4Y"J&Y^\`"KG6=`L+FPT&ZBAA,@FD:X4-EB`.N#_=KT70_@_P"#]!NDNDL9+RX3 ME'O)/,"GU"\+GT..*YWP':-#K_E-C?'>NA_X`C5UX;DY9.2N<&+]ISP479/< MEM=5\86LTERBV4K/DG$+[5SR=ORC&X\G'4\U<'Q!\1V1_P!,T6WF502WEN5/ M3\<=^U>@KJ4*Y6X22WD7JCJ3^1'!'T_'!XKFO&5RTNF6[O"8XR\CKN'S8"$! MB.V03QZ'G!X"A.$Y).*'4IU*<')3>AN>&]QK6KDOAI"8O`=AN'S.TK'W_>,`?R`KK:YZB2FTNYU4I.4$WO86BBBH-` MHHHH`****`"BBB@`HJCJ>KZ=HUNMQJ=_;64+.$62XE"*6ZX!/?@UF?\`">^$ M,9_X2?2/_`R/_&@#H:*Y[_A//"._X3SPCQ_Q4^D<_P#3Y'_C1_PGGA#_`*&?2/\`P,C_`,:`.AHKGO\` MA//"&,_\)/I'_@9'_C1_PGGA'./^$GTC_P`#(_\`&@#H:H:OK.FZ#8-?:K>P MVEJK!3)*V!D]![FLW_A/?"/_`$,^D?\`@9'_`(US7C>Z\"^.-!32[SQ=IMN$ MF6>*6*\B)5P"O0GD89A^-,#R/XV^(-+\2>*K632+R*[AAL1&TL1RNXL3C/?@ MBO7]`^*O@G_A'M.677K>WE2VC22*8,KHP4`@C'8CMQZ5PD'PW^%BQ;9_'2R2 M=V2_@4?E@U7F^&GPX8YA^(D"+GHUS`W^%`&E\2OC-IE[H=SHOAB:2=[I#'-> M["B1H?O!=V"6(XSC&#U-7/@+X/GTZRN?$]["T;WL8AM%;(/DY#%\>C$+CV7/ M>H]`\&?";1KI+FZ\26&J3(6#Z[!@'_@617HY\<>#C"8O^$ET?9MVE M1>1@`=,=:`.%^+7CCPSJOP]U33-/UFUNKV2:&-887W-E959OP`4\].E8?P5\ M;>'O#WAR_L-8U."QF-YYJ"8X#J549'XJ:BA^&WPN2XD>7QY&T!)\N-+Z!2H] M"V#FDNOAK\,96`MO'L<(_B#WL#DCOV&*`.`\76\OA;Q[K]I8NL<,IE5-ARIM MYUW`#VVN!^%>I_![5-!\'^"5O=:U2UL9M8N7>$2R`%TC/EYQV&X-3/%GA/X> M^))].EMO&^GV'V.UCL\"ZCDWQQC"]6X('&:D\1>%/AMKL&CP1^-+*S73;46B M".\A;S(P<\Y/WLY.?>@#SK2?$6GQ_&L>(9IPFG2:M-+YS#`$;EU5C[8(-?1D M?Q`\)36%U?1^(+%K:U95FD$G"%ONCWS@]/0UY,?AO\+3%A?'2B3'WOM\&,_3 M%20>`OAK%HE]8-X[M7>XECE217D4-CL>6(Y7V>$O'GAC4-,T738-:M#?S6L2K;;\.&"#*D M=CP>*\WMOAQ\*TC`N?'*RN?XDU"!!^6#5G1?!/PVT3Q)9:O#XYMI5LYA,D$E MY#RP^[EACH?Y4`>YUXQXHNKKPIXQO?+3;%<2BZ@DWE2-RX;!'^UN&/3%>C?\ M)YX1Z_\`"3Z1C_K\C_QIDGC;P9+@2>(M%?V:[C/]:TI5/9N[5S&O2]K&R=CS MN'XGZFF%+L_(`R8SD>O0?K5+6/&TVKVTD$K323,A2,,4`7=PMUB()W4#FEA:DE9S.B\.V!TSP[I]DR[6B@56'^UCG] M>$?^AGTC_P`#(_\`&C_A/?"/_0SZ1_X&1_XUR-MNYW))*R.BHKGO^$\\(YQ_ MPD^D?^!D?^-'_">>$/\`H9](_P#`R/\`QI#.AHKGO^$\\(?]#/I'_@9'_C1_ MPGGA'_H9](_\#(_\:`.AHKGO^$\\(]?^$GTC_P`#(_\`&C_A//"/_0SZ1_X& M1_XT`=#16)9^,/#6H7D5I9:_IMQ`#SP#6W0!Y1\?)%A\':7 M*T8D5-5B8H>C81SBO!TURV36YM0.E0F*2+8(.,*>.>GM7NO[0?\`R(UA_P!A M*/\`]%R5\XUI&I*.QE.E&>LBX+V(:!)IOV2/S7DWBYXW`9''3V]:MS:Y:R:I M970TV%$MX]C0Y&)#CJ>*R*[2&_N])\&Z"^GZ-IUVUR;DSR7&F)*ZB\\/Z8_CR[L39BWB_LB2]ELD<@6MR+4RF,'.<*_8_2I_"7A[1 MK_PQ87-W::5/?WE]-;H-0U2:TWA1'M5!'P3ESG/J*/:RL'L(7O\`UM8YJ+7; M6/7)M0.DPM%)%Y8MSC"G*\CCV_6J"WT*Z"^F_9(S*S[A<<;@/3I_6NNT70_# ML_C3Q/;20O/I6GV\TEL+LSQE2LT2#>(QYG&]AC;GU%4HM)TK6/'MII<-B;&P M?(VV\DQ-R55F^0S@,"Q`09'6CVLF"H05K>7X&5+K5K)J=E=C3(52WCV-$,8D M//)X]ZB35;=!J@.GQ'[:28^G[CKTX]_TJUJ[65SIOVFV\*7&CM'="(S+/-)" MP(8^6_F9Q)QG@C@-Q6GK#^'!X/T^_M/"Z6UUJ$ES$)!J$[B$Q&/#`$X;.\]: M/:S%]7I[?UW.=N-1@FTNQM!91QO:MN:88S+['BK@UZV77AJ1TN'RA'L^SG&W MZ]*D\%1Q2^--+2:"&XC\QB8IDW(^$8X8'J.!73Z!8^&5UNTU*!+6[CUG>EGI MDI+FPRA,Q<$<["-D>>H;=U6A59+^NPWAZ;5FN_7ON<1'?Q1Z/=6)LXVDG<.L MYQE.G'3VJ:35X'GTR0:=$HLT"NHQ^^P`,GCV]ZW_`(=^$[;Q!]LO=3MI)["W M5(%5;A8"99"/FW,1GRTW/MSR=HZ4>&_"]K%XNUS2=?BMY/[,M)G_`-)N7MX2 MZO&%=G3Y@I#9'^\*/:R#V%-N]OZV,&'6+>+4-0N6TZ)DNUPD9QB+Z<57-];G MP\=-^QI]H,N_[3QG'ITS75^(=!T2VUKPQ#9P0*NHLK7$=E=RW$#QF4(I21P# MDC>"!T([&H/%/A_2=%T>633&34G.H26]Q>1ROLL2K';`%.-Q8?\`+1L@[3M] M:/:R!4(+;R_`R)=:LI-9M;Y=*C6&%"KP#;ASSSTQWJ"/5+5(-4C.G1L;PL8F MX_TWPO921:1%<:C/IEO.Q\Z]\P221@E^%\G`SG&[H/PJ MCX>_X1U_"&JWM_X:6\N]+6`F4W\T8G\V8KR%.%PN!QZ9[T>UD)8>".;O;ZWN MM*LK..S2*6W4AYAC,G'TJY+KEM)J]G>C2X5CMT*M",8D)!Y/%1R6=L?!EQJ: MQ%+E=3$"G>2%C,+/MQT/('/6NYU/P1HC>(;M-+MI?LFG6LRW]LTS.8I!:-+# M,&SD(S8&.@9UEO_6@W0@U9^?X[G"1ZK!'%J:'3XF-Z6*$X_W.!P:Q?$^D'0/$^H:60BB"3A$F,H0,`P7>0,D!@#P.:/:R#V$ M+W_K:PY==M$UNYOSIL'ES1A%MR1A"`.>GM^M4Q?0C07T[[)&96F\S[1QD#CY M>GM^M=[IDNGZ=X%T&62]T"PGN6NB[:CH[7;S;9B`0RQM@`<T2>W6XFDLK<2%X4=OE^9%+,Y5?]I1QV/:R8+#TUMY?AL,2$J1D\>_Z5#'JD"1ZFIT^)OMI)0G'[G.>G'O[5T^O>&M M'7Q;X;TNU,=FNI+$;H6MP\\*+))A'BDD`W93GT!X]:K7NGZ9?:'KL\'AJ?1) MM(:,I(UQ+)YNZ58S%('R/,P2P*[?NGC%'MIB^KT_Z\M3`.IP(_L,8-DX9 MVX_?8(.#Q[5.FMVRZM>7ITN$I/&$6'C$9"@9''M^M=1I^C:*Z^%=/E\+75[+ MK%I%)/?6]W,KQL\SH2J\I\H4'!&*YY=%M_\`A'==N8@UU/I^H0P1SQ9(\IO- M!8J.,$JG/^-'M9A]7I_UYZF=#J21:!=:9]E1FFD#^?W7!0XQ_P`!_6K,FN1O M=Z;/]@C`LEP5R/WO&.>*VH_#%C+XL\/Z4\5PB76E17=Q"C_O99?)>0HN[[K. M550.V[@5E:LUG%)])*7'E-*DTTD#\9V-YF2)..QZ9XH]K+8IT(/6W M];$,>MQQSZI+]@C/VY2`I(_=9!Z<>_M4#ZFCZ/9V'V1`UM)O,N>7Y)QT]ZZ' M6G\.CP?I][9>&$M+O46N$60:A/((#$Z#(#'#9#$M=P3&4(SET8+Y!CP,KGJ.^31[60O84][?UL4Y!QT]JSE.Y0?44M'M9OK_`$P6'IKI MV_#8[_X>ZDNH?$SPFBVJ0?9F>,E?X_W3F M6@M+"VU6UM@21%!J42*">O`DKZ@HH`^48_A;\189GGBT2Z2:0.KR"]AW,&!# M`GS.<@G/KFFM\*OB&]M';-H5R8(F9XX_MD&U&;&X@>9P3M7\A7UA10!\MV_@ M#XJ6NI3ZE;6&HPWTX(FN8]0A620$@D%A)D\@'\*9?_#GXH:KWPI^(3V MB6KZ#<-;1L72(W<&Q6(`)`\SJ<#GVJ5OAE\2F=W;2+PM)"+=V-[#EH@``A_> M0!7VG*[AYG.#S7UA10!\GGX4 M_$(VIMCH-Q]G+^88OM<&TOC&['F=<<9JP/AQ\3ENKBZ73+X7%Q&89Y?M\.Z5 M"`-K'S.1@#CVKZHHH`^6M,^'OQ2T5I&TK3]0LC*-K_9[^%-P]\252?X3?$"1 MWDD\/SN[DLS-=P$L3U)/F=:^LJ*`/E!_A7\1)8(8)-"N7AAW>5&UW`5CW'+; M1YG&3S21_"KXAPI-'%H-PB3*$E5;N`!UR&P1YG(RH/U`KZPHH`^4)/A7\1)8 M8(9-#N7B@!6%&O("(P3N(7]YQR2?K5O4/`/Q5U:WAM]1L=2NX8/]5'/J$3JG M&.`9.M?4E%`'R_%X&^+4&FC3H;;58[$*4%NFI1+&%/;`DZE7ME-MVE[>^A0E?0XDY%?5%%`'RE/\+_B1=WKWMQH]Y+=N^]IWOH3(6'0 M[O,SGBK&I?#[XIZR8SJFGZA>F(8C^T:A$^WZ9DXKZEHH`^3W^%7Q#D@B@?0K MAH82QCC-W`50MC=@>9QG`S]*O)X$^+$>E-I26FJ+I[#:;4:E%Y9'IM\SI[5] M144`?)?_``J/QZ/^9 EX-101.INS 6 dmpd-20120930.xml XBRL INSTANCE DOCUMENT 10378 6749 45321 52070 90000 90000 173653 263653 -1356080 -1496052 632963 642345 false 2714 26089 7849 17362 282721 273339 0.001 0.001 400000000 400000000 282720684 273339011 282720684 239937352 273339011 19527 12768 10298 268 --12-31 300 225 Q3 2012 2012-09-30 10-Q 5000 0001485029 Yes Smaller Reporting Company DM Products, Inc. No No 49460 78885 15002 28138 -90662 -139972 17586 -34442 -50761 -121366 45368 -24958 776 734 39901 18606 27782 9484 12767 -8727 -7632 -7632 -0.0004 -0.0005 0.0001 -0.0001 5135 -8727 -50760 -90662 -121366 -139972 17586 -34442 272306 290912 0.001 0.001 30000000 30000000 0 0 0 0 10656 0 -4445 10656 49656 19081 10419 6480 728 503 -37706 5009 15835 10826 165545 79868 113087 39928 97663 90500 32000 30000 2424 2424 5250 3550 53308 28691 52580 28188 221398 318147 -440396 -580368 53308 28691 221398 318147 216306 201234 67719 64886 165545 79868 113087 39928 -168090 -289456 -289456 239937352 276283624 239937352 276283624 282721 632963 272306 -1356080 -168090 282720684 -14864 14864 -14863337 5482 -5482 5481664 18606 -139972 -121366 273339 642345 290912 -1496052 -289456 273339011 <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'><b>Note 1: Summary of Significant Accounting Policies</b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Nature of Operations </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>DM Products, Inc. (the Company) was incorporated on March 1, 2001 as Effective Sport Nutrition Corporation. Subsequently, on April 11, 2005, the Company changed its name to Midwest E.S.W.T Corp and on December 14, 2005, it changed its name again to DM Products, Inc.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>On July 18, 2005, the Company acquired Direct Success, Inc. a California Corporation in exchange for 70% of the Company's Common Stock, making Direct Success, Inc. a wholly owned subsidiary of the Company. Midwest E.S.W.T agreed that a total of 114,851,043 shares of Restricted Common Stock were to be issued to shareholders of Direct Success, Inc.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>The Company operates from Walnut Creek, California and it wholly owns Direct Success, Inc., which owns 75% of Direct Success, LLC 3,&nbsp;a limited liability company formed on or about August 16, 2002. Direct Success, Inc. entered into a joint venture with Buena Vista Infomercial Corporation which owns the remaining 25% of Direct Success, LLC 3. The purpose of Direct Success, Inc. is to market products through direct response television infomercials. The companies obtain the distribution, production and licensing rights to products in exchange for royalty agreements based on the sales of the products.&nbsp;&nbsp;The Company sets up the production, marketing and the distribution of the products.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>On July 14, 2010 the Company incorporated a wholly owned subsidiary corporation, Aliano, Inc., dba Aliano Westlake Village. The purpose of this fragrance and personal care division is to create, manufacture, distribute and sell prestige fragrances and beauty related products. Effective as of July 26, 2010, Aliano Inc. entered into an agreement with Portia Entertainment Group LLC for legal services described in the agreement. As per the agreement, Portia Entertainment Group LLC is entitled to receive a fee of 5% on the Net Income earned by Aliano Inc. for celebrity endorsees introduce by Portia.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>On April 8, 2010, a Form S-1 Registration Statement was completed and submitted to the Securities and Exchange Commission. The registration filing was declared effective on October 15, 2010. On April 21, 2010, an Information Statement Form 211 was submitted to the Financial Industry Regulatory Authority (FINRA) for active trading on the Over the Counter Bulletin Board (OTCBB). The filing was approved on November 09, 2010.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>On December 27, 2011 the Company dissolved Aliano, Inc., dba Aliano Westlake Village since the corporation has been unsuccessful&nbsp;&nbsp;in raising sufficient capital to commence operations. As a result of this dissolution the intercompany loan between the Company and Aliano, Inc. were written off in the respective books with no effect in the consolidated balance sheet and in the consolidated statement of operations.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>On April 11, 2012, Articles of Incorporation were filed with the California Secretary of State for the creation of a new division, ELK Films, Inc. This division has been established for both film production and distribution.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Basis of Consolidation &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>The consolidated financial statements include the accounts of DM Products, Inc., Direct Success, Inc., Aliano, Inc. and the accounts of its 75% owned subsidiary Direct Success LLC 3. All material inter-company transactions have been eliminated.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Basis of Presentation &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Accounting Basis &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>The Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of America (&#147;GAAP&#148; accounting).&nbsp;&nbsp;The Company has adopted a December 31 fiscal year end.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Cash and Cash Equivalents &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>All highly liquid investments with maturities of three months or less are considered to be cash equivalents.&nbsp;&nbsp;At September 30, 2012 and December 31, 2011, the Company had cash balances of $17,362 and $26,089, respectively.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Fair Value of Financial Instruments &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>The Company&#146;s financial instruments consist of cash and cash equivalents, accounts receivable, prepaid expense, accounts payable, sales tax payable, and other current liabilities. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates, unless otherwise disclosed in these financial statements.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Income Taxes &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Income taxes are computed using the asset and liability method.&nbsp;&nbsp;Under the asset and liability method, deferred income tax, assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws.&nbsp;&nbsp;A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized. It is the Company&#146;s policy to classify interest and penalties on income taxes as interest expense or penalties expense. As of September 30, 2012, there have been no interest or penalties incurred on income taxes.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp; &#160;&nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Use of Estimates &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period.&nbsp;&nbsp;Actual results could differ from those estimates.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Revenue Recognition &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>The Company records revenue in accordance with ASC Topic 605 - Revenue Recognition. During the period&#160; ended September &#160;30, 2012 &#160;revenues came from royalties from the contract Banjo Minnow the fishing lure with TriStar Products, Inc. Revenues derived from the Company license sales are recognized when (1) there is evidence of an arrangement, (2) collection of our fee is considered probable, and (3) the fee is fixed and determinable.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Direct Success entered into a manufacturing, marketing and distribution agreement with Banjo Buddies, who is the inventor of Banjo Minnow, a fishing lure which Direct Success LLC 3 had a license agreement to market the product since Oct 2002. The Company entered into a modification of said agreement in April 2005. On September 30, 2011 the Company exercised their option to extend the Banjo Minnow agreement until June 30, 2012. On or about May 11, 2005,&nbsp;&nbsp;Direct Success LLC 3, subcontracted the manufacturing and distribution rights to TriStar Products, Inc.&nbsp;&nbsp;In March 2007, Direct Success granted back to Banjo, the right to license and privilege for internet sales and small parts sale of the product. Under the agreement, Banjo will pay Direct Success 4% royalty on all gross sales of product. As of date of settlement, effective January 1, 2010, Direct Success no longer receives the 4% royalty for internet and part sales from Banjo Buddies. The revenues are strictly based on the contractual obligation contained in the agreement with Tristar Products, Inc., which are the royalties received from the sales of the Banjo Minnow. These royalty arrangements with Tristar provide the Company with a flat $4.00 (for unit sales under $18) and $5.00 (for unit sales over $18), per unit sold domestically, and $2.50 per unit sold internationally. The present retail price for the Banjo Minnow is $19.95.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Concentration of Risk &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>The Company is earning (over 90%) the majority of the royalty income from Tristar Products, Inc. Since the Company is depending on Tristar Products, Inc., the inability of Tristar to perform in the future may have a material adverse effect on the Company&#146;s financial condition.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Advertising Policy &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>The Company recognizes advertising expense as incurred. The advertising expense for the three and nine month periods ended September 30, 2012 and September 30, 2011 are $0 and $150 respectively.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Basic Income (Loss) Per Share &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp; &#160;&nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Basic income (loss) per share is calculated by dividing the Company&#146;s net loss applicable to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated by dividing the Company&#146;s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. There are no such common stock equivalents outstanding as of September 30, 2012.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Stock-Based Compensation &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>The Company accounts for employee stock-based compensation in accordance with the guidance of FASB ASC Topic 718, Compensation &#150; Stock Compensation, which requires all share-based payments to employees, including grants of employee stock options, to be recognized in the financial statements based on their fair values. In 2011, 19,999,999 common shares were issued at the fair market value of $0.0015 per share totaling to $30,000. There was no stock-based compensation granted during the period ended September 30, 2012.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>The Company follows ASC Topic 505-50, formerly EITF 96-18, &#147;Accounting for Equity Instruments that are Issued to Other than Employees for Acquiring, or in Conjunction with Selling Goods and Services,&#148; for stock options and warrants issued to consultants and other non-employees.&nbsp;&nbsp;In accordance with ASC Topic 505-50, these stock options and warrants issued as compensation for services provided to the Company are accounted for based upon the fair value of the services provided or the estimated fair market value of the option or warrant, whichever can be more clearly determined.&nbsp;&nbsp;The fair value of the equity instrument is charged directly to operating expense and additional paid-in capital over the period during which services are rendered. In 2011, 22,783,333 common shares were issued at the fair market value of $0.0015 per share totaling to $34,175. There was no stock-based compensation issued to non-employees during the period ended September 30, 2012.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Recent Accounting Pronouncements &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company&#146;s results of operations, financial position or cash flow.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'><b>Note 2: Property &amp; Equipment</b> &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Property and equipment are carried at cost. Major expenditures and those which substantially increase useful lives are capitalized. Maintenance, repairs and minor renewals are charged to operations when incurred. When property and equipment is sold or otherwise disposed of, the asset account and related accumulated depreciation account are relieved, and any gain or loss is included in operations. Once placed in service, depreciable assets are depreciated over their estimated useful lives using both accelerated and straight-line methods.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Depreciation expenses totaled $225 and $300 for the nine month periods ended September 30, 2012 and&nbsp;&nbsp;September 30, 2011, respectively.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'><b>Note 3: Prepaid Expenses</b> &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Prepaid expenses consisted of the following at September 30, 2012 and December 31, 2011:</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" style='border-collapse:collapse'> <tr> <td width="161" valign="top" style='width:120.4pt;padding:0in 0in 1.5pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp; </p> </td> <td width="91" valign="top" style='width:68.05pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>2012</b></p> </td> <td width="84" valign="top" style='width:62.8pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>2011</b></p> </td> </tr> <tr> <td width="161" valign="top" style='width:120.4pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>Prepaid insurance</p> </td> <td width="91" valign="top" style='width:68.05pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>$0</p> </td> <td width="84" valign="top" style='width:62.8pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>$10,656</p> </td> </tr> <tr> <td width="161" valign="top" style='width:120.4pt;padding:0in 0in 1.5pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp; </p> </td> <td width="91" valign="top" style='width:68.05pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&nbsp; </p> </td> <td width="84" valign="top" style='width:62.8pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp; </p> </td> </tr> <tr> <td width="161" valign="top" style='width:120.4pt;background:#CCEEFF;padding:0in 0in 3.0pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>Total Prepaid Expenses</p> </td> <td width="91" valign="top" style='width:68.05pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>$0</p> </td> <td width="84" valign="top" style='width:62.8pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>$10,656</p> </td> </tr> </table> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&nbsp; </p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'><b>Note 4: Non-Controlling Interest</b> &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>The Company has owned 75% of Direct Success LLC 3 (LLC 3) since 2002. The assets and liabilities of Direct Success LLC 3 have been included in these consolidated financial statements. The 25% of LLC 3 not owned by the Company has been presented as a non-controlling interest in these financial statements.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&#160;&#160;&#160; </p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'><b>Note 5: Accrued Expenses</b> &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Accrued expenses consisted of the following at September 30, 2012 and December 31, 2011:</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <table border="0" cellspacing="0" cellpadding="0" style='border-collapse:collapse'> <tr> <td width="161" valign="top" style='width:120.4pt;padding:0in 0in 1.5pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp; </p> </td> <td width="91" valign="top" style='width:68.05pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>2012</b></p> </td> <td width="84" valign="top" style='width:62.8pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>2011</b></p> </td> </tr> <tr> <td width="161" valign="top" style='width:120.4pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>Accrued Wages</p> </td> <td width="91" valign="top" style='width:68.05pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>$255,653</p> </td> <td width="84" valign="top" style='width:62.8pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>$165,653</p> </td> </tr> <tr> <td width="161" valign="top" style='width:120.4pt;padding:0in 0in 1.5pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Accrued Directors' Fees</p> </td> <td width="91" valign="top" style='width:68.05pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>$&#160;&#160;&#160; 8,000</p> </td> <td width="84" valign="top" style='width:62.8pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>$&#160;&#160;&#160; 8,000</p> </td> </tr> <tr> <td width="161" valign="top" style='width:120.4pt;background:#CCEEFF;padding:0in 0in 3.0pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>Total Prepaid Expenses</p> </td> <td width="91" valign="top" style='width:68.05pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>$263,653</p> </td> <td width="84" valign="top" style='width:62.8pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>$173,653</p> </td> </tr> </table> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Wages are accrued under an employee agreement entered into on the 20th day of April, 2007 by and between the Company and its President. According to the agreement, employee's starting salary is $6,000 per month during the first 90 days following execution of the agreement or until $500,000 in capital is raised. After such period of time, employee's salary shall be increased to $10,000 per month. Should the company determine it in the best interest not to pay employee's entire monthly compensation, at any time, any such compensation shall be treated as deferred compensation and will accumulate on the books and provided to employee, at employee's sole discretion, taking into consideration the funds available and the best interest of the Company.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>The accrued wages owed under the employment agreement as of September 30, 2012 and December 31, 2011, respectively, were $255,653 and $165,653.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Salary expense to the related party was $90,000 and $90,000 for the nine months ended September 30, 2012 and September 30, 2011, respectively.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&#160;The Board of Directors passed a resolution on October 15, 2011 to compensate Directors, Secretary, Treasurer, CEO, President and Board Chairman by issuing common stock annually. This policy is retroactive with an effective date of January 1, 2010. Per the policy the Company owed Kurtis Cockrum who is a Director, CEO, President and Board Chairman $6,000 worth of common stock, James Clarke who is a Director, Secretary and Treasurer $2,000 worth of common stock as of December 31, 2011. This amount has been recorded&nbsp;as director fees at December 31, 2011.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&#160;&#160;&#160; </p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'><b>Note 6: Related Party Transactions</b> &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>The Company has entered into&nbsp;&nbsp;a consulting contract with Michael DeBenon, Esq., a stockholder of the Company, for $6,000 per month on a month to month basis for general counsel. Legal expenses to the related party were $0 and $18,000 for the nine months ended September 30, 2012 and September 30, 2011, respectively.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&#160;&#160;&#160; </p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'><b>Note 7: Common Stock</b> &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>The Company has 430,000,000 shares of capital stock, consisting of 400,000,000 shares of $0.001 par value common stock,&nbsp;&nbsp;and 30,000,000 shares of $0.001 par value preferred stock. The Company had 273,339,011 shares of common stock issued and outstanding as of September 30, 2012 and 239,937,352 shares issued and outstanding as of September 30, 2011.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>On March 26, 2012, 3,390,834 shares of $0.001 par value common stock owned by Celecia Family Trust were surrendered per a Settlement and Release Agreement.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>On March 26, 2012, 3,390,834 shares of $0.001 par value common stock owned by Koontz Family Trust were surrendered per a Settlement and Release Agreement.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>On March 26, 2012, 8,081,669 shares of $0.001 par value common stock owned by K &amp; B Kerry Living Trust were surrendered per a Settlement and Release Agreement.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>On March 26, 2012, 5,481,664 shares of $0.001 par value common stock were issued to Tony L. Kerry and Erika D. Kerry Revocable Trust per a Settlement and Release Agreement.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'><b>Note 8: Commitments and Contingencies</b> &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>The CEO and employees of the Company work from their homes. The fair market value of rents contributed by the related parties are estimated to be $50.00 per month, which is immaterial to the Company's financial statements, and has not been recorded on the Company's books.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&#160;&#160;&#160; </p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'><b>Note 9: Income Taxes</b> &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>As of September 30, 2012, the Company had net operating loss carry forwards of approximately $1,472,067 that may be available to reduce future years&#146; taxable income through 2032. Future tax benefits, which may arise as a result of these losses, have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>The provision for federal income tax consists of the following for the nine months ended: &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <table border="0" cellspacing="0" cellpadding="0" style='border-collapse:collapse'> <tr> <td width="321" valign="top" style='width:240.8pt;padding:0in 0in 1.5pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp; </p> </td> <td width="91" valign="top" style='width:68.05pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>September</b></p> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>&#160;30, </b></p> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>2012</b></p> </td> <td width="84" valign="top" style='width:62.8pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>September</b><b> 30, </b></p> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>2011</b></p> </td> </tr> <tr> <td width="321" valign="top" style='width:240.8pt;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Federal income tax benefit attributable to:</p> </td> <td width="91" valign="top" style='width:68.05pt;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp; </p> </td> <td width="84" valign="top" style='width:62.8pt;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp; </p> </td> </tr> <tr> <td width="321" valign="top" style='width:240.8pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>Current Operations</p> </td> <td width="91" valign="top" style='width:68.05pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>$ 41,264</p> </td> <td width="84" valign="top" style='width:62.8pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>$ 17,258</p> </td> </tr> <tr> <td width="321" valign="top" style='width:240.8pt;padding:0in 0in 1.5pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Less: valuation allowance</p> </td> <td width="91" valign="top" style='width:68.05pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>$(41,264)</p> </td> <td width="84" valign="top" style='width:62.8pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>$(17,258)</p> </td> </tr> <tr> <td width="321" valign="top" style='width:240.8pt;background:#CCEEFF;padding:0in 0in 3.0pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>Net provision for Federal income taxes</p> </td> <td width="91" valign="top" style='width:68.05pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>~</p> </td> <td width="84" valign="top" style='width:62.8pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>~</p> </td> </tr> </table> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>The cumulative tax effect at the expected rate of 34% of significant items comprising our net deferred tax amount is as follows:</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <table border="0" cellspacing="0" cellpadding="0" style='border-collapse:collapse'> <tr> <td width="321" valign="top" style='width:240.8pt;padding:0in 0in 1.5pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp; </p> </td> <td width="91" valign="top" style='width:68.05pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>September</b></p> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>&#160;30, </b></p> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>2012</b></p> </td> <td width="84" valign="top" style='width:62.8pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>December</b></p> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>&#160;31,</b></p> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>&#160;2011</b></p> </td> </tr> <tr> <td width="321" valign="top" style='width:240.8pt;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Deferred tax asset attributable to:</p> </td> <td width="91" valign="top" style='width:68.05pt;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp; </p> </td> <td width="84" valign="top" style='width:62.8pt;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp; </p> </td> </tr> <tr> <td width="321" valign="top" style='width:240.8pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>Net operating loss carryover</p> </td> <td width="91" valign="top" style='width:68.05pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>$ 502,331</p> </td> <td width="84" valign="top" style='width:62.8pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>$ 461,067</p> </td> </tr> <tr> <td width="321" valign="top" style='width:240.8pt;padding:0in 0in 1.5pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Less: valuation allowance</p> </td> <td width="91" valign="top" style='width:68.05pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>$(502,331)</p> </td> <td width="84" valign="top" style='width:62.8pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>$(461,067)</p> </td> </tr> <tr> <td width="321" valign="top" style='width:240.8pt;background:#CCEEFF;padding:0in 0in 3.0pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>Net deferred tax asset</p> </td> <td width="91" valign="top" style='width:68.05pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>~</p> </td> <td width="84" valign="top" style='width:62.8pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>~</p> </td> </tr> </table> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of $1,472,067 for federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, the net operating loss carry forwards may be limited as to use in future years.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&#160;&#160;&#160; </p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'><b>Note 10: Going Concern</b> &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>The accompanying financial statements have been prepared assuming that the Company will continue as a going concern.&nbsp;&nbsp;The Company has sustained substantial losses since inception, has a working capital deficit, and is in need of additional capital to grow its operations so that it can become profitable.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>In view of these matters, the ability of the Company to continue as a going concern is dependent upon growth of revenues and the ability of the Company to raise additional capital.&nbsp;&nbsp;Management believes that its successful ability to raise capital and increases in revenues will provide the opportunity for the Company to continue as a going concern.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&#160;&#160;&#160; </p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'><b>Note 11: Subsequent Events</b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>There are no subsequent events to report.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Nature of Operations </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>DM Products, Inc. (the Company) was incorporated on March 1, 2001 as Effective Sport Nutrition Corporation. Subsequently, on April 11, 2005, the Company changed its name to Midwest E.S.W.T Corp and on December 14, 2005, it changed its name again to DM Products, Inc.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>On July 18, 2005, the Company acquired Direct Success, Inc. a California Corporation in exchange for 70% of the Company's Common Stock, making Direct Success, Inc. a wholly owned subsidiary of the Company. Midwest E.S.W.T agreed that a total of 114,851,043 shares of Restricted Common Stock were to be issued to shareholders of Direct Success, Inc.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>The Company operates from Walnut Creek, California and it wholly owns Direct Success, Inc., which owns 75% of Direct Success, LLC 3,&nbsp;a limited liability company formed on or about August 16, 2002. Direct Success, Inc. entered into a joint venture with Buena Vista Infomercial Corporation which owns the remaining 25% of Direct Success, LLC 3. The purpose of Direct Success, Inc. is to market products through direct response television infomercials. The companies obtain the distribution, production and licensing rights to products in exchange for royalty agreements based on the sales of the products.&nbsp;&nbsp;The Company sets up the production, marketing and the distribution of the products.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>On July 14, 2010 the Company incorporated a wholly owned subsidiary corporation, Aliano, Inc., dba Aliano Westlake Village. The purpose of this fragrance and personal care division is to create, manufacture, distribute and sell prestige fragrances and beauty related products. Effective as of July 26, 2010, Aliano Inc. entered into an agreement with Portia Entertainment Group LLC for legal services described in the agreement. As per the agreement, Portia Entertainment Group LLC is entitled to receive a fee of 5% on the Net Income earned by Aliano Inc. for celebrity endorsees introduce by Portia.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>On April 8, 2010, a Form S-1 Registration Statement was completed and submitted to the Securities and Exchange Commission. The registration filing was declared effective on October 15, 2010. On April 21, 2010, an Information Statement Form 211 was submitted to the Financial Industry Regulatory Authority (FINRA) for active trading on the Over the Counter Bulletin Board (OTCBB). The filing was approved on November 09, 2010.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>On December 27, 2011 the Company dissolved Aliano, Inc., dba Aliano Westlake Village since the corporation has been unsuccessful&nbsp;&nbsp;in raising sufficient capital to commence operations. As a result of this dissolution the intercompany loan between the Company and Aliano, Inc. were written off in the respective books with no effect in the consolidated balance sheet and in the consolidated statement of operations.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>On April 11, 2012, Articles of Incorporation were filed with the California Secretary of State for the creation of a new division, ELK Films, Inc. This division has been established for both film production and distribution.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Basis of Consolidation &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>The consolidated financial statements include the accounts of DM Products, Inc., Direct Success, Inc., Aliano, Inc. and the accounts of its 75% owned subsidiary Direct Success LLC 3. All material inter-company transactions have been eliminated.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Basis of Presentation &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Accounting Basis &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>The Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of America (&#147;GAAP&#148; accounting).&nbsp;&nbsp;The Company has adopted a December 31 fiscal year end.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Cash and Cash Equivalents &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>All highly liquid investments with maturities of three months or less are considered to be cash equivalents.&nbsp;&nbsp;At September 30, 2012 and December 31, 2011, the Company had cash balances of $17,362 and $26,089, respectively.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Fair Value of Financial Instruments &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>The Company&#146;s financial instruments consist of cash and cash equivalents, accounts receivable, prepaid expense, accounts payable, sales tax payable, and other current liabilities. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates, unless otherwise disclosed in these financial statements.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Income Taxes &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Income taxes are computed using the asset and liability method.&nbsp;&nbsp;Under the asset and liability method, deferred income tax, assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws.&nbsp;&nbsp;A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized. It is the Company&#146;s policy to classify interest and penalties on income taxes as interest expense or penalties expense. As of September 30, 2012, there have been no interest or penalties incurred on income taxes.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Use of Estimates &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period.&nbsp;&nbsp;Actual results could differ from those estimates.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Revenue Recognition &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>The Company records revenue in accordance with ASC Topic 605 - Revenue Recognition. During the period&#160; ended September &#160;30, 2012 &#160;revenues came from royalties from the contract Banjo Minnow the fishing lure with TriStar Products, Inc. Revenues derived from the Company license sales are recognized when (1) there is evidence of an arrangement, (2) collection of our fee is considered probable, and (3) the fee is fixed and determinable.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Direct Success entered into a manufacturing, marketing and distribution agreement with Banjo Buddies, who is the inventor of Banjo Minnow, a fishing lure which Direct Success LLC 3 had a license agreement to market the product since Oct 2002. The Company entered into a modification of said agreement in April 2005. On September 30, 2011 the Company exercised their option to extend the Banjo Minnow agreement until June 30, 2012. On or about May 11, 2005,&nbsp;&nbsp;Direct Success LLC 3, subcontracted the manufacturing and distribution rights to TriStar Products, Inc.&nbsp;&nbsp;In March 2007, Direct Success granted back to Banjo, the right to license and privilege for internet sales and small parts sale of the product. Under the agreement, Banjo will pay Direct Success 4% royalty on all gross sales of product. As of date of settlement, effective January 1, 2010, Direct Success no longer receives the 4% royalty for internet and part sales from Banjo Buddies. The revenues are strictly based on the contractual obligation contained in the agreement with Tristar Products, Inc., which are the royalties received from the sales of the Banjo Minnow. These royalty arrangements with Tristar provide the Company with a flat $4.00 (for unit sales under $18) and $5.00 (for unit sales over $18), per unit sold domestically, and $2.50 per unit sold internationally. The present retail price for the Banjo Minnow is $19.95.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Concentration of Risk &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>The Company is earning (over 90%) the majority of the royalty income from Tristar Products, Inc. Since the Company is depending on Tristar Products, Inc., the inability of Tristar to perform in the future may have a material adverse effect on the Company&#146;s financial condition.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Advertising Policy &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>The Company recognizes advertising expense as incurred. The advertising expense for the three and nine month periods ended September 30, 2012 and September 30, 2011 are $0 and $150 respectively.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Basic Income (Loss) Per Share &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp; &#160;&nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Basic income (loss) per share is calculated by dividing the Company&#146;s net loss applicable to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated by dividing the Company&#146;s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. There are no such common stock equivalents outstanding as of September 30, 2012.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Stock-Based Compensation &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>The Company accounts for employee stock-based compensation in accordance with the guidance of FASB ASC Topic 718, Compensation &#150; Stock Compensation, which requires all share-based payments to employees, including grants of employee stock options, to be recognized in the financial statements based on their fair values. In 2011, 19,999,999 common shares were issued at the fair market value of $0.0015 per share totaling to $30,000. There was no stock-based compensation granted during the period ended September 30, 2012.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>The Company follows ASC Topic 505-50, formerly EITF 96-18, &#147;Accounting for Equity Instruments that are Issued to Other than Employees for Acquiring, or in Conjunction with Selling Goods and Services,&#148; for stock options and warrants issued to consultants and other non-employees.&nbsp;&nbsp;In accordance with ASC Topic 505-50, these stock options and warrants issued as compensation for services provided to the Company are accounted for based upon the fair value of the services provided or the estimated fair market value of the option or warrant, whichever can be more clearly determined.&nbsp;&nbsp;The fair value of the equity instrument is charged directly to operating expense and additional paid-in capital over the period during which services are rendered. In 2011, 22,783,333 common shares were issued at the fair market value of $0.0015 per share totaling to $34,175. There was no stock-based compensation issued to non-employees during the period ended September 30, 2012.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Recent Accounting Pronouncements &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company&#146;s results of operations, financial position or cash flow.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Prepaid expenses consisted of the following at September 30, 2012 and December 31, 2011:</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" style='border-collapse:collapse'> <tr> <td width="161" valign="top" style='width:120.4pt;padding:0in 0in 1.5pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp; </p> </td> <td width="91" valign="top" style='width:68.05pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>2012</b></p> </td> <td width="84" valign="top" style='width:62.8pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>2011</b></p> </td> </tr> <tr> <td width="161" valign="top" style='width:120.4pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>Prepaid insurance</p> </td> <td width="91" valign="top" style='width:68.05pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>$0</p> </td> <td width="84" valign="top" style='width:62.8pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>$10,656</p> </td> </tr> <tr> <td width="161" valign="top" style='width:120.4pt;padding:0in 0in 1.5pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp; </p> </td> <td width="91" valign="top" style='width:68.05pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&nbsp; </p> </td> <td width="84" valign="top" style='width:62.8pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp; </p> </td> </tr> <tr> <td width="161" valign="top" style='width:120.4pt;background:#CCEEFF;padding:0in 0in 3.0pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>Total Prepaid Expenses</p> </td> <td width="91" valign="top" style='width:68.05pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>$0</p> </td> <td width="84" valign="top" style='width:62.8pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>$10,656</p> </td> </tr> </table> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <table border="0" cellspacing="0" cellpadding="0" style='border-collapse:collapse'> <tr> <td width="161" valign="top" style='width:120.4pt;padding:0in 0in 1.5pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp; </p> </td> <td width="91" valign="top" style='width:68.05pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>2012</b></p> </td> <td width="84" valign="top" style='width:62.8pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>2011</b></p> </td> </tr> <tr> <td width="161" valign="top" style='width:120.4pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>Accrued Wages</p> </td> <td width="91" valign="top" style='width:68.05pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>$255,653</p> </td> <td width="84" valign="top" style='width:62.8pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>$165,653</p> </td> </tr> <tr> <td width="161" valign="top" style='width:120.4pt;padding:0in 0in 1.5pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Accrued Directors' Fees</p> </td> <td width="91" valign="top" style='width:68.05pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>$&#160;&#160;&#160; 8,000</p> </td> <td width="84" valign="top" style='width:62.8pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>$&#160;&#160;&#160; 8,000</p> </td> </tr> <tr> <td width="161" valign="top" style='width:120.4pt;background:#CCEEFF;padding:0in 0in 3.0pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>Total Prepaid Expenses</p> </td> <td width="91" valign="top" style='width:68.05pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>$263,653</p> </td> <td width="84" valign="top" style='width:62.8pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>$173,653</p> </td> </tr> </table> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <table border="0" cellspacing="0" cellpadding="0" style='border-collapse:collapse'> <tr> <td width="321" valign="top" style='width:240.8pt;padding:0in 0in 1.5pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp; </p> </td> <td width="91" valign="top" style='width:68.05pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>September</b></p> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>&#160;30, </b></p> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>2012</b></p> </td> <td width="84" valign="top" style='width:62.8pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>September</b><b> 30, </b></p> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>2011</b></p> </td> </tr> <tr> <td width="321" valign="top" style='width:240.8pt;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Federal income tax benefit attributable to:</p> </td> <td width="91" valign="top" style='width:68.05pt;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp; </p> </td> <td width="84" valign="top" style='width:62.8pt;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp; </p> </td> </tr> <tr> <td width="321" valign="top" style='width:240.8pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>Current Operations</p> </td> <td width="91" valign="top" style='width:68.05pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>$ 41,264</p> </td> <td width="84" valign="top" style='width:62.8pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>$ 17,258</p> </td> </tr> <tr> <td width="321" valign="top" style='width:240.8pt;padding:0in 0in 1.5pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Less: valuation allowance</p> </td> <td width="91" valign="top" style='width:68.05pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>$(41,264)</p> </td> <td width="84" valign="top" style='width:62.8pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>$(17,258)</p> </td> </tr> <tr> <td width="321" valign="top" style='width:240.8pt;background:#CCEEFF;padding:0in 0in 3.0pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>Net provision for Federal income taxes</p> </td> <td width="91" valign="top" style='width:68.05pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>~</p> </td> <td width="84" valign="top" style='width:62.8pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>~</p> </td> </tr> </table> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp;&#160; &nbsp; </p> <table border="0" cellspacing="0" cellpadding="0" style='border-collapse:collapse'> <tr> <td width="321" valign="top" style='width:240.8pt;padding:0in 0in 1.5pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp; </p> </td> <td width="91" valign="top" style='width:68.05pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>September</b></p> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>&#160;30, </b></p> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>2012</b></p> </td> <td width="84" valign="top" style='width:62.8pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>December</b></p> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>&#160;31,</b></p> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>&#160;2011</b></p> </td> </tr> <tr> <td width="321" valign="top" style='width:240.8pt;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Deferred tax asset attributable to:</p> </td> <td width="91" valign="top" style='width:68.05pt;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp; </p> </td> <td width="84" valign="top" style='width:62.8pt;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>&nbsp; </p> </td> </tr> <tr> <td width="321" valign="top" style='width:240.8pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>Net operating loss carryover</p> </td> <td width="91" valign="top" style='width:68.05pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>$ 502,331</p> </td> <td width="84" valign="top" style='width:62.8pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>$ 461,067</p> </td> </tr> <tr> <td width="321" valign="top" style='width:240.8pt;padding:0in 0in 1.5pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Less: valuation allowance</p> </td> <td width="91" valign="top" style='width:68.05pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>$(502,331)</p> </td> <td width="84" valign="top" style='width:62.8pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>$(461,067)</p> </td> </tr> <tr> <td width="321" valign="top" style='width:240.8pt;background:#CCEEFF;padding:0in 0in 3.0pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>Net deferred tax asset</p> </td> <td width="91" valign="top" style='width:68.05pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>~</p> </td> <td width="84" valign="top" style='width:62.8pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>~</p> </td> </tr> </table> 0.7000 114851043 0.7500 0.2500 0.0500 0 0.0400 As of date of settlement, effective January 1, 2010, Direct Success no longer receives the 4% royalty for internet and part sales from Banjo Buddies. The revenues are strictly based on the contractual obligation contained in the agreement with Tristar Products, Inc., which are the royalties received from the sales of the Banjo Minnow. These royalty arrangements with Tristar provide the Company with a flat $4.00 (for unit sales under $18) and $5.00 (for unit sales over $18), per unit sold domestically, and $2.50 per unit sold internationally. The present retail price for the Banjo Minnow is $19.95. 0 150 19999999 0.0015 30000 22783333 0.0015 34175 225 300 0 10656 0 10656 255653 165653 8000 8000 263653 173653 According to the agreement, employee's starting salary is $6,000 per month during the first 90 days following execution of the agreement or until $500,000 in capital is raised. After such period of time, employee's salary shall be increased to $10,000 per month. 90000 90000 6000 2000 6000 0 18000 430000000 400000000 0.001 30000000 0.001 273339011 239937352 3390834 3390834 8081669 5481664 50.00 1472067 41264 17258 -41264 -17258 0.3400 502331 461067 -502331 -461067 273339011 0001485029 2012-07-01 2012-09-30 0001485029 2012-09-30 0001485029 2011-12-31 0001485029 2011-07-01 2011-09-30 0001485029 2012-01-01 2012-09-30 0001485029 2011-01-01 2011-09-30 0001485029 2012-01-01 2012-03-31 0001485029 us-gaap:CommonStockMember 2012-01-01 2012-03-31 0001485029 us-gaap:AdditionalPaidInCapitalMember 2012-01-01 2012-03-31 0001485029 us-gaap:NoncontrollingInterestMember 2012-01-01 2012-03-31 0001485029 us-gaap:RetainedEarningsMember 2012-01-01 2012-03-31 0001485029 us-gaap:CommonStockMember 2011-12-31 0001485029 us-gaap:AdditionalPaidInCapitalMember 2011-12-31 0001485029 us-gaap:NoncontrollingInterestMember 2011-12-31 0001485029 us-gaap:RetainedEarningsMember 2011-12-31 0001485029 us-gaap:CommonStockMember 2012-03-31 0001485029 us-gaap:AdditionalPaidInCapitalMember 2012-03-31 0001485029 us-gaap:NoncontrollingInterestMember 2012-03-31 0001485029 us-gaap:RetainedEarningsMember 2012-03-31 0001485029 2012-03-31 0001485029 2010-12-31 0001485029 2011-09-30 0001485029 2005-07-18 0001485029 2010-07-26 0001485029 2007-03-01 0001485029 2011-01-01 2011-12-31 0001485029 fil:President1Member 2007-04-20 2012-03-31 0001485029 us-gaap:PresidentMember 2011-01-01 2011-12-31 0001485029 us-gaap:DirectorMember 2011-01-01 2011-12-31 0001485029 2011-03-31 0001485029 fil:CeleciaFamilyTrustMember 2012-03-26 0001485029 fil:KoontzFamilyTrustMember 2012-03-26 0001485029 fil:KBKerryLivingTrustMember 2012-03-26 0001485029 fil:TonyLKerryAndErikaDKerryRevocableTrustMember 2012-03-26 0001485029 us-gaap:InvestorMember 2012-07-01 2012-09-30 0001485029 us-gaap:StockholdersEquityTotalMember 2012-01-01 2012-03-31 0001485029 us-gaap:StockholdersEquityTotalMember 2011-12-31 0001485029 us-gaap:StockholdersEquityTotalMember 2012-03-31 0001485029 2012-11-05 pure iso4217:USD shares iso4217:USD shares EX-101.SCH 7 dmpd-20120930.xsd XBRL TAXONOMY EXTENSION SCHEMA 000200 - Disclosure - Note 5: Accrued Expenses (Tables) link:presentationLink link:definitionLink link:calculationLink 000340 - Disclosure - Note 7: Common Stock (Details) link:presentationLink link:definitionLink link:calculationLink 000350 - Disclosure - Note 8: Commitments and Contingencies (Details) link:presentationLink link:definitionLink link:calculationLink 000220 - Disclosure - Note 1: Summary of Significant Accounting Policies: Nature of Operations (Details) link:presentationLink link:definitionLink link:calculationLink 000310 - Disclosure - Note 5: Accrued Expenses: Accrued Expenses: Salary Expense (Details) link:presentationLink link:definitionLink link:calculationLink 000250 - Disclosure - Note 1: Summary of Significant Accounting Policies: Advertising Policy (Details) link:presentationLink link:definitionLink link:calculationLink 000150 - Disclosure - Note 9: Income Taxes link:presentationLink link:definitionLink link:calculationLink 000280 - Disclosure - Note 3: Prepaid Expenses: Schedule of Prepaid Expenses (Details) link:presentationLink link:definitionLink link:calculationLink 000170 - Disclosure - Note 11: Subsequent Events link:presentationLink link:definitionLink link:calculationLink 000030 - Statement - Consolidated Balance Sheets (Parenthetical) link:presentationLink link:definitionLink link:calculationLink 000330 - Disclosure - Note 6: Related Party Transactions (Details) link:presentationLink link:definitionLink link:calculationLink 000001 - Document - Dimensions link:presentationLink link:definitionLink link:calculationLink 000320 - Disclosure - Note 5: Accrued Expenses: Accrued Expenses: Director Fees (Details) link:presentationLink link:definitionLink link:calculationLink 000260 - Disclosure - Note 1: Summary of Significant Accounting Policies: Stock-based Compensation (Details) link:presentationLink link:definitionLink link:calculationLink 000070 - Disclosure - Note 1: Summary of Significant Accounting Policies link:presentationLink link:definitionLink link:calculationLink 000050 - Statement - Consolidated Statements of Shareholders' Equity (Deficit) (Unaudited) link:presentationLink link:definitionLink link:calculationLink 000380 - Disclosure - Note 9: Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Details) link:presentationLink link:definitionLink link:calculationLink 000090 - Disclosure - Note 3: Prepaid Expenses link:presentationLink link:definitionLink link:calculationLink 000020 - Statement - Consolidated Balance Sheets(Unaudited) link:presentationLink link:definitionLink link:calculationLink 000080 - Disclosure - Note 2: Property & Equipment link:presentationLink link:definitionLink link:calculationLink 000040 - Statement - Consolidated Statements of Operations(Unaudited) link:presentationLink link:definitionLink link:calculationLink 000110 - Disclosure - Note 5: Accrued Expenses link:presentationLink link:definitionLink link:calculationLink 000100 - Disclosure - Note 4: Non-controlling Interest link:presentationLink link:definitionLink link:calculationLink 000010 - Document - Document and Entity Information link:presentationLink link:definitionLink link:calculationLink 000140 - Disclosure - Note 8: Commitments and Contingencies link:presentationLink link:definitionLink link:calculationLink 000300 - Disclosure - Note 5: Accrued Expenses (Details) link:presentationLink link:definitionLink link:calculationLink 000120 - Disclosure - Note 6: Related Party Transactions link:presentationLink link:definitionLink link:calculationLink 000160 - Disclosure - Note 10: Going Concern link:presentationLink link:definitionLink link:calculationLink 000370 - Disclosure - Note 9: Income Taxes: Schedule of Components of Income Tax Expense (Benefit) (Details) link:presentationLink link:definitionLink link:calculationLink 000190 - Disclosure - Note 3: Prepaid Expenses (Tables) link:presentationLink link:definitionLink link:calculationLink 000210 - Disclosure - Note 9: Income Taxes (Tables) link:presentationLink link:definitionLink link:calculationLink 000360 - Disclosure - Note 9: Income Taxes (Details) link:presentationLink link:definitionLink link:calculationLink 000240 - Disclosure - Note 1: Summary of Significant Accounting Policies: Revenue Recognition (Details) link:presentationLink link:definitionLink link:calculationLink 000270 - Disclosure - Note 2: Property & Equipment: Property & Equipment (Details) link:presentationLink link:definitionLink link:calculationLink 000290 - Disclosure - Note 5: Accrued Expenses: Schedule of Accounts Payable and Accrued Liabilities (Details) link:presentationLink link:definitionLink link:calculationLink 000060 - Statement - Consolidated Statements of Cash Flows (Unaudited) link:presentationLink link:definitionLink link:calculationLink 000230 - Disclosure - Note 1: Summary of Significant Accounting Policies: Income Taxes (Details) link:presentationLink link:definitionLink link:calculationLink 000130 - Disclosure - Note 7: Common Stock link:presentationLink link:definitionLink link:calculationLink 000180 - Disclosure - Note 1: Summary of Significant Accounting Policies (Policies) link:presentationLink link:definitionLink link:calculationLink EX-101.CAL 8 dmpd-20120930_cal.xml XBRL TAXONOMY EXTENSION CALCULATION LINKBASE EX-101.DEF 9 dmpd-20120930_def.xml XBRL TAXONOMY EXTENSION DEFINITION LINKBASE EX-101.LAB 10 dmpd-20120930_lab.xml XBRL TAXONOMY EXTENSION LABEL LINKBASE KoontzFamilyTrustMember1Member [Member] Description of employment contract Description of employment contract for the period. Share-based compensation granted, total fair value Business acquisition, percentage of ownership acquired Stock-based Compensation Note 3: Prepaid Expenses Note 3: Prepaid Expenses: Weighted average common shares outstanding-basic and diluted TOTAL ASSETS TOTAL ASSETS Entity Public Float Net deferred tax asset Fair market value of rents contributed by related parties Fair market value of rents per month contributed by related parties. This item is immaterial to the Company's financial statements and has not been recorded on the Company's books. Depreciation expense Basic Income (loss) Per Share Note 7: Common Stock: Note 1: Summary of Significant Accounting Policies Shares issued per settlement and release agreement, shares Operating expenses Total revenues Total revenues Current Liabilities ASSETS Document Period End Date Loan From Shareholder Cash inflow from loan from shareholder during the period. Investor Prepaid insurance Advertising Expense Equity distribution for services rendered, percentage Equity percentage distribution for services rendered Nature of Operations Note 11: Subsequent Events Note 7: Common Stock Total operating expense Total operating expense Consulting Consulting contract payments made on a monthly basis per a consulting agreement. Common Stock, $0.001 par value, 400,000,000 shares authorized, 273,339,011 shares issued and outstanding (282,720,684 - 2011) Property and Equipment - net Document Fiscal Period Focus Entity Common Stock, Shares Outstanding Related Party Stock-based compensation issued to non-employees, fair market value price Fair market value price of shares issued to other than employees for acquiring, or in conjunction with selling goods and services. Interest or penalties incurred on income taxes Advertising Policy Basis of Consolidation Note 10: Going Concern Interest paid Net increase (decrease) in cash Net increase (decrease) in cash Entity Voluntary Filers Current Fiscal Year End Date Receivable - Other Equity Component [Domain] Share-based compensation, fair market value price Details (Detail level 4): Fair Value of Financial Instruments Net cash (used) by financing activities Net cash (used) by financing activities Common Stock Additional Paid In Capital Preferred Stock, $0.001 par value, 30,000,000 shares authorized, 0 shares issued and outstanding Accounts Payable {1} Accounts Payable Entity Registrant Name KoontzFamilyTrustMember Title of Individual with Relationship to Entity Accrued Directors' Fees Business acquisition, share exchange Shares issued as a result of an exchange and company acquisition. Note 4: Non-controlling Interest: Accrued Expenses {1} Accrued Expenses Net Loss Income Statement Accumulated Deficit Total Liabilities Total Liabilities Prepaid Expense {1} Prepaid Expense Document Type Document and Entity Information Investor [Member] New Contract Royalty fee percentage of gross sales Royalty fee percentage of gross sales. Revenue Recognition Use of Estimates Accounting Basis Royalties receivable The increase (decrease) in Royalty Revenue during the reporting period. Additional Paid In Capital {1} Additional Paid In Capital Salary & Wages Revenues {1} Revenues Preferred Stock, shares issued Preferred Stock, shares issued Preferred stock, par value Preferred Stock, par or stated value Common stock, shares outstanding Common Stock, shares outstanding LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Statement {1} Statement Schedule of Deferred Tax Assets and Liabilities Recent Accounting Pronouncements Note 2: Property & Equipment Shares issued per settlement and release agreement, value Shares surrendered per settlement and release agreement, value Shares surrendered per settlement and release agreement, value Accumulated Deficit {1} Accumulated Deficit Net operating loss carryover Federal income tax benefit attributable to: Director President Basis of Presentation Note 6: Related Party Transactions Taxes paid Net cash provided (used) by operating activities Net cash provided (used) by operating activities Accounts payable Adjustment to reconcile net loss to net cash provided (used) by operating activities: Statement, Equity Components Professional Fees Preferred stock, shares authorized Preferred Stock, shares authorized Common stock, par value Common Stock, par or stated value Stockholders' Equity (Deficit) Entity Current Reporting Status Deferred tax asset attributable to: TonyLKerryAndErikaDKerryRevocableTrustMember Consulting contract payment, per month Consulting contract payments made on a monthly basis per a consulting agreement. Title of Individual Concentration of Risk Note 5: Accrued Expenses: Changes in operating assets and liabilities: Entity Central Index Key Net provision for Federal income taxes Operating Loss Carryforwards K & B Kerry Living Trust Ownership percentage of subsidiary by company The ownership percentage in a subsidiary. Schedule of Accounts Payable and Accrued Liabilities Note 8: Commitments and Contingencies Note 8: Commitments and Contingencies: Cash flows from operating activities Shares, Outstanding Shares, Outstanding Shares, Outstanding Non-Controlling Interest {1} Non-Controlling Interest Total Current Liabilities Total Current Liabilities Accrued Expenses Total Current Assets Total Current Assets Royalties Receivable Carrying amount as of the balance sheet date of amounts receivable for royalties within one year or in the normal operating cycle, if longer. Cash and cash equivalents Cash at beginning of period Cash at end of period Amendment Flag Share-based compensation Current Income Tax Expense (Benefit) Accrued Salaries Royalty Fee Description Royalty fees description. Schedule of Components of Income Tax Expense (Benefit) Policies (Detail level 2): Note 10: Going Concern: Note 4: Non-controlling Interest Shares surrendered per settlement and release agreement, shares Shares surrendered per settlement and release agreement, shares Common Stock, shares issued Common Stock, shares issued Sales Tax Payable Less: valuation allowance Schedule of Prepaid Expenses Net decrease in credit card balances Net increase (decrease) in credit card balances during the period. Cash flows from financing activities Provision for income taxes Income (Loss) from operations and before non-controlling Interest Preferred Stock, shares outstanding Preferred Stock, shares outstanding TOTAL LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT) TOTAL LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT) Total DM Products, Inc. Stockholders' Equity (Deficit) Total DM Products, Inc. Stockholders' Equity (Deficit) Statement of Financial Position Statement of Financial Position Entity Filer Category Common stock surrendered per settlement and release agreement Common stock surrendered per settlement and release agreement. CeleciaFamilyTrustMember Total Prepaid Expenses {1} Total Prepaid Expenses Note 2: Property & Equipment: Prepaid Expenses Income (Loss) before income taxes Income (Loss) before income taxes General & Administrative expenses Common stock, shares authorized Common Stock, shares authorized Current Assets Effective Income Tax Rate, Continuing Operations Capital share, authorized Salary expense to the related party Salary expense paid to the related party for the duration. Total Prepaid Expenses Ownership percentage of subsidiary by related party Related party ownership percentage of a subsidiary to the company. Note 6: Related Party Transactions: Net Income (Loss) per common share-basic and fully diluted Net income (loss) Net Income (Loss) Less: Income Attributable to non-controlling interest Royalty income Statement New Contract [Domain] Less: valuation allowance {1} Less: valuation allowance Accrued consulting expenses, related party Accrued consulting expenses due to a related party for the period Directors fees Stock-based compensation issued to non-employees Shares issued to other than employees for acquiring, or in conjunction with selling goods and services. Income Taxes Note 9: Income Taxes: Supplemental disclosure of cash flow information: Employee Advances Depreciation Statement of Stockholders' Equity Total Stockholders' Equity (Deficit) Total Stockholders' Equity (Deficit) Stockholders' Equity Stockholders' Equity Non-Controlling Interest Document Fiscal Year Focus Related Party {1} Related Party President {1} President Stock-based compensation issued to non-employees, total fair value value Total fair value of shares issued to other than employees for acquiring, or in conjunction with selling goods and services. Stock-based compensation granted Tables/Schedules (Detail level 3): Cash and Cash Equivalents Note 11: Subsequent Events: Note 9: Income Taxes Note 5: Accrued Expenses Note 1: Summary of Significant Accounting Policies: Statement of Cash Flows Stockholders' Equity, Total Entity Well-known Seasoned Issuer EX-101.PRE 11 dmpd-20120930_pre.xml BRL TAXONOMY EXTENSION PRESENTATION LINKBASE