10-K

  UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-K

[X]	ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended  December 31, 2012
[  ]	TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
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)	(I.R.S. Employer Identification No.)
P.O. Box 2458 Walnut Creek, CA	94595
(Address of principal executive offices)	(Zip Code)
Registrant’s telephone number:  925-943-2090

Securities registered under Section 12(b) of the Exchange Act:
Title of each class	Name of each exchange on which registered
none	not applicable
Securities registered under Section 12(g) of the Exchange Act:
Title of class
none

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.  Yes [  ] No [X]

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes [  ] No [X]

Indicate by checkmark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes [X] No [  ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 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 [  ] No [X]

1

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.   [X]

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

Large accelerated filer [  ] Accelerated filer [  ] Non-accelerated filer [  ] Smaller reporting company [X]

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

State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the registrant’s most recently completed fourth fiscal quarter. $273,339.

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date.  273,339,011 as of March 20, 2013.

2

TABLE OF CONTENTS

		Page
PART I
Item 1.	Business	1
Item 1A.	Risk Factors	6
Item 1B.	Unresolved Staff Comments	6
Item 2.	Properties	6
Item 3.	Legal Proceedings	6
Item 4.	Mine Safety Disclosures	6
PART II
Item 5.	Market for Registrant’s Common Equity and Related Stockholder Matters and Issuer Purchases of Equity Securities	7
Item 6.	Selected Financial Data	9
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	9
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	11
Item 8.	Financial Statements and Supplementary Data	11
Item 9.	Changes In and Disagreements With Accountants on Accounting and Financial Disclosure	12
Item 9A.	Controls and Procedures	12
Item 9B.	Other Information	13
PART III
Item 10.	Directors, Executive Officers and Corporate Governance	13
Item 11.	Executive Compensation	16
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	18
Item 13.	Certain Relationships and Related Transactions, and Director Independence	18
Item 14.	Principal Accountant Fees and Services	18
PART IV
Item 15.	Exhibits, Financial Statement Schedules	19

3

PART I

Item 1.   Business

Company Overview

DM Products is in the business of locating inventive products and introducing these products through a Direct Response Model, a form of marketing that allows potential consumers direct access to the seller without the necessity of traditional retail.  Our primary focus is on infomercials (long-form television commercials, typically five minute or longer).  Infomercials are a form of Direct Response Television, or DRTV for short, which include any TV advertising that asks consumers to respond directly to the company, usually by either calling an 800 number or by visiting a website.  In the future, we intend to utilize other direct marketing channels, such as outbound sales via call centers, and direct mailing.  We also intend to increase our sales efforts in traditional retail markets.

Our management team is approached by individuals and entities with new product ideas.  The contact is usually the result of those viewing our infomercial and having an idea of their own.  In addition, we frequent trade shows throughout the U.S. and have established relationships with companies known for their infomercial contacts and ideas, such as Tristar Products, Inc. (located in New Jersey) and Script-to-Screen (located in Southern California).

Within the last five years, we have only marketed one product, a fishing lure product known as the Banjo Minnow Fishing Lure System (“Banjo Minnow”). We own 75% interest in a joint venture, known as Direct Success LLC #3, which held the exclusive rights to manufacture, use, distribute, sell, advertise, promote and otherwise exploit the Banjo Minnow until June 30, 2012.  The exclusive rights to the Banjo Minnow were obtained through a Manufacturing, Marketing and Distribution Agreement entered into between Direct Success LLC #3 and Banjo Buddies, the inventor and owner of the intellectual property rights of the Banjo Minnow, in October, 2003.  This Agreement, together with modifications made pursuant to an Arbitration settlement, required Direct Success, LLC#3 to pay Banjo Buddies a royalty in the amount 5% for the sale of all products through December 31, 2011, with DM Products maintaining an option to extend, and extended the licensing period for an additional six (6) months, through June 30, 2013.  Although the Company is still receiving residual income from sales made during the contract period and subsequently collected, revenues from this source will shortly terminate.

We do not manufacture or distribute the products that we locate to market.  Our business model incorporates the outsourcing of primary functions.  This outsourcing includes contracting with companies to:  i)  Manufacture the actual product according to our specifications and approval; ii) Warehouse our inventory and fulfill orders provided to these facilities from inbound telemarketing centers; iii) Receive customer calls in response to viewing our commercials, obtain the credit card and billing information, and transfer such information to the fulfillment centers; iv) Receive customer service calls and either correct the situation or report any problems directly to the company for handling; and v) Purchase media time, pursuant to guidelines provided by the company, such as airing dates, times and locations.  We, therefore, have not purchased any machinery or tooling.

In the case of Banjo Minnow, our joint venture entity subcontracted all of the above-listed responsibilities to TriStar Products, Inc. Pursuant to the agreement with TriStar, they were responsible for infomercial production/revision, manufacture of product, procurement of media time, call center activity, fulfillment obligations, and customer service.   We received royalties from the sales of the Banjo Minnow that TriStar distributes in proportion to our holdings in Direct Success LLC #3. Our royalty arrangement with Tristar provided for $4.00 per unit sold domestically and $2.50 per unit sold internationally.  The present retail price for the Banjo Minnow is $19.95. In 2012, the royalties we received totaled $106,535.  

4

We are currently looking to locate and market innovative health, beauty, fashion, fitness and other products for sale through infomercial marketing and distribution channels.  As stated above, our management team is continuously seeking out new infomercial ideas.  Although a specific time frame cannot be defined, management desires to introduce one (1) campaign in each calendar year.  However, the feasibility of such progress will be dependent on the product idea itself as well as the cost associated with the campaign.  Although we do not currently have a source of financing, we are discussing the options and feasibility of a private placement of securities to raise capital, if needed.   However, there is no guarantee that a source of financing, or the success of a private placement of securities, will be secured, and there is no certainty in our obtaining additional funding.

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

·   Complete Project Funding - We 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 - We would share costs of production, marketing and distribution and would share revenues with product developers; and

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

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 develop strategic alliances with strong companies that are established operators in the infomercial and advertising industry.

Elk Films, Inc.

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 was established to become a film distribution and production company in the motion picture industry.  The Company determined to discontinue the pursuit of Elk due in part to a contractual dispute with third party participants.  As such, the Board of Directors determined it to be in the best interest of the corporation to dissolve Elk Films, Inc.  Articles of Dissolution were file with the California Secretary of State in December of 2012.

Dyatlov Pass Productions, LLC

In December, 2012, the Company began negotiations with Magnum Real Estate Services, Inc., a Delaware corporation and Don Baker, an individual, for the formation of Dyatlov Pass Productions, LLC, a Nevada limited liability company.  It is the intent of the joint venture to raise capital sufficient to produce, promote and distribute a film based on screenplay written by Don Baker.  Pursuant to an agreement entered into subsequent to the filing period contained herein, DM Products, Inc. owns 33 1/3% of Dyatlov Pass Productions, LLC.  Although the limited liability company intends to fund the project through a private placement of membership interest, as of the date of this filing, no capital has been raised.

5

Corporate History

We were incorporated on March 1, 2001 under the laws of the state of Nevada under the name Effective Sports Nutrition Corporation.  On April 11, 2005, Effective Sports Nutrition changed its name to Midwest E.S.W.T. Corp. On July 18, 2005, the company entered into a share exchange agreement (the “Share Exchange Agreement”) with Direct Success, Inc., a California corporation.  As a result of the agreement, Midwest E.S.W.T issued an aggregate of 114,851,043 shares of common stock to the shareholders of Direct Success, Inc. in exchange for all of the issued and outstanding common stock in Director Success, Inc. On December 14, 2005, Midwest E.S.W.T changed its name to DM Products, Inc.  As a result of this transaction, Direct Success, Inc. is the wholly owned subsidiary of the registrant, DM Products, Inc.  At the time of the share exchange agreement with Direct Success, Inc., Direct Success had an accumulated loss of $6,195,881.

Employees

During 2012, Mr Cockrum did not receive compensation but his salary has accrued. We do not expect any material changes in the number of employees over the next twelve month period. However, we will be conducting most of our business through agreements with consultants and third parties.

Item 1A.   Risk Factors.

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

Item 1B.   Unresolved Staff Comments

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

Item 2.   Properties

Executive Offices

Our executive offices are located at P.O. Box 2458, Walnut Creek, CA 94595.

Item 3.   Legal Proceedings

We are not currently 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 4.   Mine Safety Disclosures

None

6

PART II

Item 5.    Market for Registrant’s Common Equity and Related Stockholder Matters and Issuer Purchases of Equity Securities

Market Information

Our common stock trades over-the-counter in the recently created OTCQB marketplace under the symbol DMPD. This new comprehensive over-the-counter market tier includes the securities of over 768 SEC reporting companies and banks formerly designated as Pink Sheets stocks, in addition to the 3,050 securities that are currently quoted in both Pink OTC Markets' electronic inter-dealer quotation system and FINRA's OTCBB.  All securities in the new OTCQB tier are displayed on www.otcmarkets.com with an icon reading, "OTCQB."  We commenced trading on the OTCQB following our S-1 effective date of October 15, 2010.  Prior to this date, our common stock traded on Pink Sheets, which is sponsored by FINRA.  The Pink Sheets is a network of security dealers who buy and sell stock.   The dealers on both the Pink Sheets and OTCQB are connected by a computer network that provides information on current "bids" and "asks", as well as volume information.

On November 9, 2010, Financial Industry Regulatory Authority cleared the Company’s request for trading on the OTC Bulletin Board.  This ruling was made pursuant to FINRA Rule 6440 and Rule 15c2-11 under the Securities Exchange Act of 1934 and became effective on November 9, 2010.  The stock traded under the symbol DMPD.BB.

In February, 2011, we learned that market makers trading in our stock dropped use of FINRA’s OCCBB because of the added fees necessary to keep that designation.  With the advent of the OTCQB, these brokers are trading our securities exclusively on the OTCQB and not the OTCBB. We do not believe it necessary at this time to reapply for quotation on the OTCBB because of the new trend in trading on the OTCQB.

The following table sets forth the range of high and low bid quotations for our common stock for each of the periods indicated as reported by the OTCBB. These quotations reflect inter-dealer prices, without retail mark-up, mark-down or commission and may not necessarily represent actual transactions.

	2011		2012
	High	Low	High	Low
First Quarter	.0064	.0031	.001	.0006
Second Quarter	.0044	.0011	.0034	.0007
Third Quarter	.0019	.0008	.0009	.0005
Fourth Quarter	.0027	.001	.002	.0006

Penny Stock

The SEC has adopted rules that regulate broker-dealer practices in connection with transactions in penny stocks. Penny stocks are generally equity securities with a market price of less than $5.00, other than securities registered on certain national securities exchanges or quoted on the NASDAQ system, provided that current price and volume information with respect to transactions in such securities is provided by the exchange or system. The penny stock rules require a broker-dealer, prior to a transaction in a penny stock, to deliver a standardized risk disclosure document prepared by the SEC, that: (a) contains a description of the nature and level of risk in the market for penny stocks in both public offerings and secondary trading; (b) contains a description of the broker's or dealer's duties to the customer and of the rights and remedies available to the customer with respect to a violation of such duties or other requirements of the securities laws; (c) contains a brief, clear, narrative description of a dealer market, including bid and ask prices for penny stocks and the significance of the spread between the bid and ask price; (d) contains a toll-free telephone number for inquiries on disciplinary actions; (e) defines significant terms in the disclosure document or in the conduct of trading in penny stocks; and (f) contains such other information and is in such form, including language, type size and format, as the SEC shall require by rule or regulation.

7

The broker-dealer also must provide, prior to effecting any transaction in a penny stock, the customer with (a) bid and offer quotations for the penny stock; (b) the compensation of the broker-dealer and its salesperson in the transaction; (c) the number of shares to which such bid and ask prices apply, or other comparable information relating to the depth and liquidity of the market for such stock; and (d) a monthly account statement showing the market value of each penny stock held in the customer's account.

In addition, the penny stock rules require that prior to a transaction in a penny stock not otherwise exempt from those rules, the broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser's written acknowledgment of the receipt of a risk disclosure statement, a written agreement as to transactions involving penny stocks, and a signed and dated copy of a written suitability statement.

These disclosure requirements may have the effect of reducing the trading activity for our common stock. Therefore, stockholders may have difficulty selling our securities.

Holders of Our Common Stock

As of December 31, 2012, we had 272,339,011 shares of our common stock issued and outstanding, held by two hundred ninety eight (298) shareholders of record.

Dividends

There are no restrictions in our articles of incorporation or bylaws that prevent us from declaring dividends.  The Nevada Revised Statutes, however, do prohibit us from declaring dividends where after giving effect to the distribution of the dividend:

1.   we would not be able to pay our debts as they become due in the usual course of business, or;

2.   our total assets would be less than the sum of our total liabilities plus the amount that would be needed to satisfy the rights of shareholders who have preferential rights superior to those receiving the distribution.

We have not declared any dividends and we do not plan to declare any dividends in the foreseeable future.

Recent Sales of Unregistered Securities

8

During the Calendar year of 2012, there were no sales of unregistered securities.

Securities Authorized for Issuance under Equity Compensation Plans

We do not have any equity compensation plans.

Item 6.   Selected Financial Data

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

Item 7.  Management’s Discussion and Analysis of Financial Condition and Results of Operations

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.

Results of Operations for the Years Ended December 31, 2012 and 2011

Liquidity and Capital Resources

As of December 31, 2012, we had total assets in the amount of $36,731, consisting of $34,762 in cash, $1,541 in Tristar Receivables, $0.00 in other receivables, $0.00 in Prepaid Expenses, and property and equipment of $428.  Our total current liabilities as of December 31, 2012 were $346,379.  We had working capital deficit of ($309,648) as of December 31, 2012.

Our current monthly fixed expenses (“Burn Rate”) are approximately $15,000.  Since the termination of our distribution contract with Tristar, the Company has no current source of revenue and needs to raise additional capital in order to sustain operations.

9

As of December 31, 2012, our cash reserves were $ 34,762 and we do have a line of credit which enables us to access $45,000.  As of December 31, 2012, the balance on this line of credit was $0.00. If we need to and cannot raise additional capital, we would be forced to discontinue operations.

Infomercials are our sole source of revenue. Our revenue was $200,986 for the year ended December 31, 2011 and $106,535 for the year ended December 31, 2012.  Revenue was down from the year ended December 2011 in 2012 due to the expiring Banjo Minnow agreement on June 30, 2012.  Some residual revenue was received during the sell off period of inventory until year end 2012.  Due to the agreement expiration, there is no further anticipated revenue expected in 2013 from the Banjo Minnow sales.

Off Balance Sheet Arrangements

As of December 31, 2012, there were no off balance sheet arrangements.

Going Concern

Our independent auditor’s report expresses substantial doubt about our ability to continue as a going concern.  Management shares such concern in the event the company is unable to attract and obtain additional products and successfully implement our business plan, including increased revenues and additional funding.   We have operated with limited operating capital and we will continue to face immediate and substantial cash needs.  We did not obtain a profit during fiscal year 2012 and there is no assurance that we will show a net profit in 2013.   We need to obtain additional funding to  implement our business plan and continue as a going concern.

Critical Accounting Policies

Recently Issued Accounting Pronouncements

On December 1, 2009 the Company adopted the guidance in Accounting Standards Codification (“ASC”) 805, “Business Combinations”.  ASC 805 establishes principles and requirements for how the acquirer in a business combination (i) recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed, and any non-controlling interest in the acquired business; (ii) recognizes and measures the goodwill acquired in the business combination or a gain from a bargain purchase; and (iii) determines what information to disclose to enable users of the financial statements to evaluate the nature and financial effects of the business combination.  The adoption of this statement had no effect on the Company’s reported financial position or results of operations.

On December 1, 2009, the Company adopted the newly ratified guidance which is part of ASC 815-40, “Contracts in Entity’s Own Equity”. ASC 815-40 provides guidance for determining whether an equity-linked financial instrument (or embedded feature) is indexed to an entity’s own stock. The adoption of this statement had no effect on the Company’s reported financial position or results of operations.

In April 2010, the FASB issued ASU No. 2010-17, "Revenue Recognition - Milestone Method (Topic 605): Milestone Method of Revenue Recognition" (codified within ASC 605 - Revenue Recognition).  ASU 2010-17 provides guidance on defining a milestone and determining when it may be appropriate to apply the milestone method of revenue recognition for research or development transactions.  ASU 2010-17 is effective for interim and annual periods beginning after June 15, 2010.  The adoption of this statement had no effect on the Company’s reported financial position or results of operations.

In March 2010, the FASB issued ASU No. 2010-11, "Derivatives and Hedging (Topic 815): Scope Exception Related to Embedded Credit Derivatives" (codified within ASC 815 - Derivatives and Hedging).  ASU 2010-11 improves disclosures originally required under SFAS No. 161.  ASU 2010-11 is effective for interim and annual periods beginning after June 15, 2010.  The adoption of this statement had no effect on the Company’s reported financial position or results of operations.

In May 2010, the FASB (Financial Accounting Standards Board) issued Accounting Standards Update 2010-19 (ASU 2010-19), Foreign Currency (Topic 830): Foreign Currency Issues: Multiple Foreign Currency Exchange Rates.  The amendments in this Update are effective as of the announcement date of March 18, 2010.  The Company does not expect the provisions of ASU 2010-19 to have any effect on the Company’s reported financial position or results of operations.

10

Item 7A.   Quantitative and Qualitative Disclosures About Market Risk

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

Item 8.   Financial Statements and Supplementary Data

Index to Financial Statements Required by Article 8 of Regulation S-X:

Audited Financial Statements:
F-1	Report of Independent Registered Public Accounting Firm
F-2	Balance Sheets as of December 31, 2012 and 2011;
F-3	Statements of Operations for the years ended December 31, 2012 and 20101;
F-4	Statement of Stockholders’ Equity (Deficit) as of December 31, 2012;
F-5	Statements of Cash Flows for the years ended December 31, 2012 and 20101
F-6	Notes to Consolidated Financial Statements

11

Silberstein Ungar, PLLC CPAs and Business Advisors

Phone (248) 203-0080

Fax (248) 281-0940

30600 Telegraph Road, Suite 2175

Bingham Farms, MI 48025-4586

www.sucpas.com

Report of Independent Registered Public Accounting Firm

To the Board of Directors of

DM Products, Inc.

Walnut Creek, California

We have audited the accompanying consolidated balance sheets of DM Products, Inc. (the “Company”) as of December 31, 2012 and 2011, and the related consolidated statements of operations, stockholders’ deficit, and cash flows for the years then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.  Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting.  Accordingly, we express no such opinion.  An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of DM Products, Inc. as of December 31, 2012 and 2011, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

The accompanying consolidated financial statements have been prepared assuming that DM Products, Inc. will continue as a going concern.  As discussed in Note 10 to the financial statements, the Company has incurred losses from operations, has negative working capital, and is in need of additional capital to grow its operations so that it can become profitable.  These factors raise substantial doubt about the Company’s ability to continue as a going concern.  Management’s plans with regard to these matters are described in Note 10. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

/s/ Silberstein Ungar, PLLC

Bingham Farms, Michigan

March, 9, 2013

F-1

DM PRODUCTS, INC.

CONSOLIDATED BALANCE SHEETS

AS OF DECEMBER 31, 2012 AND 2011

	December 31, 2012			December 31, 2011
ASSETS
Current Assets
Cash and cash equivalents	$	34,762		$	26,089
Royalties receivable		1,541			15,835
Prepaid expenses		-			10,656
Total Current Assets		36,303			52,580
Property and Equipment - net		428			728
TOTAL ASSETS	$	36,731		$	53,308
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current Liabilities
Accounts payable – related party	$	50,302		$	45,320
Accrued expenses – related party		293,653			173,653
Sales tax payable		2,424			2,424
Total Current Liabilities		346,379			221,397
Total Liabilities		346,379			221,397
Stockholders’ Deficit
Preferred Stock, $.001 par value, 30,000,000 shares authorized, 0 shares issued and outstanding		-			-
Common Stock, $.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		(1,522,860	)		(1,356,079	)
Total DM Products, Inc. Stockholders’ Deficit		(607,176	)		(440,395	)
Non-controlling interest		297,528			272,306
Total Stockholders’ Deficit		(309,648	)		(168,089	)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT	$	36,731		$	53,308

See accompanying notes to consolidated financial statements.

F-2

DM PRODUCTS, INC.

 CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011

	For the year ended December 31, 2012			For the year ended December 31, 2011
REVENUES
Royalty income	$	106,535		$	200,986
OPERATING EXPENSES
Professional fees		21,542			60,774
Salaries and wages		120,500			129,663
Consulting		13,052			87,423
General and administrative		93,000			76,054
TOTAL OPERATING EXPENSES		248,094			353,914
INCOME (LOSS) FROM OPERATIONS AND BEFORE NON-CONTROLLING INTEREST		(141,559	)		(152,928	)
LESS: INCOME ATTRIBUTABLE TO NON-CONTROLLING INTEREST		25,222			48,740
LOSS BEFORE PROVISION FOR INCOME TAXES		(166,781	)		(201,668	)
PROVISION FOR INCOME TAXES		-			-
NET LOSS	$	(166,781	)	$	(201,668	)
LOSS PER SHARE: BASIC AND DILUTED	$	(0.00	)	$	(0.00	)
WEIGHTED AVERAGE COMMON SHARES OUTSANDING: BASIC AND DILUTED		274,756,169			245,042,831

See accompanying notes to consolidated financial statements.

F-3

DM PRODUCTS, INC.

CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIT

AS OF DECEMBER 31, 2012

	Common Stock						Additional Paid in			Non-Controlling		Accumulated			Total Stockholders’
	Shares			Amount			Capital			Interest		Deficit			Deficit
Balance, December 31, 2010		239,937,352		$	239,938		$	611,571		$	223,566	$	(1,154,411	)	$	(79,336	)
Shares issues to officers for services		19,999,999			20,000			10,000			-		-			30,000
Shares issued to independent consultants for services		16,733,333			16,733			8,367			-		-			25,100
Shares issued to board member for  legal services		6,050,000			6,050			3,025			-		-			9,075
Net income (loss) for the year ended December 31, 2011		-			-			-			48,740		(201,668	)		(152,928	)
Balance, December 31, 2011		282,720,684			282,721			632,963			272,306		(1,356,079	)		(168,089	)
Shares surrendered per settlement and release agreement		(14,863,337	)		(14,864	)		14,864			-		-			-
Shares issued per settlement and release agreement previously cancelled		5,481,664			5,482			(5,482	)		-		-			-
Net income (loss) for the year ended December 31, 2012		-			-			-			25,222		(166,781	)		(141,559	)
Balance, December 31, 2012		273,339,011		$	273,339		$	642,345		$	297,528	$	(1,522,860	)	$	(309,648	)

See accompanying notes to consolidated financial statements.

F-4

DM PRODUCTS, INC.

 CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011

	For the year ended December 31, 2012			For the year ended December 31, 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss for the period	$	(141,559	)	$	(152,928	)
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities:
Depreciation		300			487
Share-based compensation		-			64,175
Changes in assets and liabilities:
Royalties receivable		14,294			23,413
Employee advances		-			5,000
Prepaid expenses		10,656			-
Accounts payable		4,982			(9,649	)
Accrued expenses		120,000			128,000
Net Cash Provided by (Used in) Operating Activities		8,673			58,498
CASH FLOWS FROM FINANCING ACTIVITIES
Net change in credit card balances		-			(35,123	)
Net Cash Provided by (Used in) Financing Activities		-			(35,123	)
Net increase  in cash and cash equivalents		8,673			23,375
Cash and cash equivalents, beginning of period		26,089			2,714
Cash and cash equivalents, end of period	$	34,762		$	26,089
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	$	734		$	971
Cash paid for income taxes	$	3,342		$	5,250

See accompanying notes to consolidated financial statements.

F-5

DM PRODUCTS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2012

Note 1: Summary of Significant Accounting Policies

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 25%. The purpose is to market products through direct response to television infomercials. The companies obtain the distribution, production, and licensing rights to a product 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 introduced 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 a 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. was 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 was established for both film production and distribution.

On December 14, 2012, the Company dissolved ELK Films, Inc. 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 ELK Films, Inc. were written off in the respective books with no effect in the consolidated balance sheet and in the consolidated statement of operations.

Basis of Consolidation

The consolidated financial statements include the accounts of DM Products, Inc., Aliano, Inc., Direct Success, Inc. and the accounts of its 75% owned subsidiary Direct Success LLC 3. All material inter-company transactions have been eliminated.

F-6

DM PRODUCTS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2012

Note 1: Summary of Significant Accounting Policies (Continued)

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 BasisThe 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 December 31, 2012 and 2011, the Company had cash balances of $34,762 and $26,089, respectively.

Fair Value of Financial Instruments

The Company’s financial instruments consist of cash and cash equivalents, royalties receivable, prepaid expense, accounts payable, accrued expenses, and sales tax payable. 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.

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 year ended December 31, 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 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 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.

F-7

DM PRODUCTS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2012

Note 1: Summary of Significant Accounting Policies (Continued)

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 December 31, 2012, there have been no interest or penalties incurred on income taxes.

Advertising Policy

The Company recognizes advertising expense as incurred.  Advertising expense for the years ended December 31, 2012, and 2011 were $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 December 31, 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 a fair market value of $.0015 per share totaling to $30,000. There was no stock-based compensation granted during the year ended December 31, 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 a fair market value of $.0015 per share totaling to $34,175. There was no stock-based compensation issued to non-employees during the year ended December 31, 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 flows.

Note 2: Property and 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.

F-8

DM PRODUCTS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2012

Note 2: Property and Equipment (Continued)

Depreciation expenses totaled $300 and $487 for the years ended December 31, 2012 and 2011, respectively.

Note 3:  Prepaid Expenses

Prepaid expenses consisted of the following at December 31:

	2012		2011
Prepaid insurance	$	-	$	10,656
Total prepaid expenses	$	-	$	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 December 31:

	2012		2011
Accrued wages	$	285,653	$	165,653
Accrued directors’ fees		8,000		8,000
Total accrued expenses	$	293,653	$	173,653

Wages are accrued under an employee agreement entered into on the April 20, 2007 by and between the Company and Kurt Cockrum, who is the CEO, President, Board Chairman, and a Director. According to the agreement, the employee's starting salary is $6,000 per month during the first 90 days following execution of the agreement or after $500,000 in capital is raised. After such period of time, the employee's salary was 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 be provided to the employee at the 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 December 31, 2012 and 2011, respectively, were $285,653 and $165,653.

Salary expense to the related party was $120,000 for the years ended December 31, 2012 and 2011.

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. The policy is retroactive with an effective date of January 1, 2010. Per the policy, the Company owed Kurtis Cockrum, who is the CEO, President, Board Chairman, and a Director, $6,000 worth of common stock, and James Clarke, who is a Director, Secretary, and Treasurer, $2,000 worth of common stock as of December 31, 2011. The amount has been recorded as accrued director fees at December 31, 2011. The entire balance of $8,000 is still outstanding as of December 31, 2012.

F-9

DM PRODUCTS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2012

Note 6: Related Party Transactions

The Company entered into a consulting contract with Michael DeBenon, Esq., a stockholder of the Company, for $6,000 per month that was on a month to month basis for general counsel. Legal expenses to the related party were $0 and $27,075 for the years ended December 31, 2012 and 2011, respectively. As of December 31, 2012 and 2011, the Company owed the related party $24,000.

As discussed in Note 5, the Company entered into an employment agreement with Kurt Cockrum, the CEO, President, Board Chairman, and a Director, on April 20, 2007. Total salary expense was $120,000 for the years ended December 31, 2012 and 2011. Total accrued wages were $285,653 and $165,653 for the years ended December 31, 2012 and 2011, respectively.

Also discussed in Note 5, the Company owed Kurt Cockrum and James Clarke, who is the Secretary, Treasurer, and a Director, $6,000 and $2,000, respectively, worth of common stock as of December 31, 2012 and 2011.

Note 7: Capital Stock

The Company has 430,000,000 shares of capital stock authorized, consisting of 400,000,000 shares of $0.001 par value common stock, and 30,000,000 shares of $.001 par value preferred stock. The Company had 273,339,011 shares of common stock issued and outstanding as of December 31, 2012 and 282,720,684 shares issued and outstanding as of December 31, 2011.

In early 2012, a dispute arose between the Company and Script to Screen Products, M2 Marketing and Management Services, Inc., Tony Kerry, Dallas Celecia, Mick Koontz, Ken Kerry, and Barbara Kerry (collectively “STS”). The individuals are shareholders of DM Products, Inc. Tony Kerry, Dallas Celecia and Mick Koontz were former officers and/or directors of the Company. The dispute concerned a potential conflict of interest alleged by the Company, which allegations were, and are, fully denied by STS. On January 27, 2012, DM Products and its wholly-owned subsidiary Direct Success, Inc. entered into a Settlement and Release Agreement with STS in which these individuals agreed to surrender 50% of their current holdings of common stock of the Company in exchange for the Company providing STS with a full and final release of all claims. As a result of the aforementioned agreement, the following equity transactions occurred on January 27, 2012.

3,390,834 shares of $0.001 par value common stock owned by Celecia Family Trust were surrendered.

3,390,834 shares of $0.001 par value common stock owned by Koontz Family Trust were surrendered.

8,081,669 shares of $0.001 par value common stock owned by K & B Kerry Living Trust.

5,481,664 shares of $0.001 par value common stock were issued to Tony L. Kerry and Erika D. Kerry Revocable Trust due to the original total outstanding stock they owned being erroneously cancelled.

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 is 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.

F-10

DM PRODUCTS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2012

Note 9: Income Taxes

As of December 31, 2011, the Company had net operating loss carry forwards of approximately $1,522,860 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:

	2012			2011
Federal income tax benefit attributable to:
Current operations	$	56,705		$	68,567
Less: valuation allowance		(56,705	)		(68,567	)
Net provision for Federal income taxes	$	0		$	0

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

	2012			2011
Deferred tax asset attributable to:
Net operating loss carryover	$	517,772		$	461,067
Less: valuation allowance		(517,772	)		(461,067	)
Net deferred tax asset	$	0		$	0

Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of $1,522,860 for federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, net operating loss carry forwards may be limited as to use in future years.

Note 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 this matter, 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

DM Products, Inc. acquired a 33.3% ownership in the newly created “Dyatlov Pass Productions, LLC”, a Nevada Limited Liability Company established on January 4, 2013 for the purpose of film production.

In accordance with ASC 855-140, the Company has analyzed its operations subsequent to December 31, 2012 to the date these financial statements were issued, and has determined that it does not have any material subsequent events to disclose in these financial statements other than the event described above.

F-11

Item 9.   Changes In and Disagreements with Accountants on Accounting and Financial  Disclosure

None.

Item 9A(T).  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 December 31, 2010.  This evaluation was carried out under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, Mr. Kurtis Cockrum.  Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of December 31, 2012 our disclosure controls and procedures are effective.  There have been no significant changes in our internal controls over financial reporting during the quarter ended December 31, 2012 that have materially affected or are reasonably likely to materially affect such controls.

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 our 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.

12

Management’s Annual Report on Internal Control over Financing Reporting

Our management is responsible for establishing and maintaining adequate control over financial

reporting, as such term is defined in Rules 13a-15(f) and 15d-15(f) under Securities Exchange Act of 1934.  Under the supervision and with the participation of our principal executive and principal financial officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (the “COSO Framework”).  Based on this evaluation under the COSO Framework, management concluded that its internal control over financial reporting was effective as of December 31, 2012

This annual report does not include an attestation report of our registered public accounting firm regarding internal control over financial reporting.  Management’s report was not subject to attestation by our registered public accounting firm pursuant to temporary rules of the Securities and Exchange Commission that permit us to provide only management’s report in this annual report.

Item 9B.   Other Information

None

PART III

Item 10.  Directors, Executive Officers and Corporate Governance

The following table contains information with respect to our current executive officers and directors:

Name	Age	Principal Positions With Us
Kurtis L. Cockrum	61	President, Chairman of Board of Directors
James Clarke	66	Secretary, Treasurer, Board Member

Kurtis L. Cockrum.  Mr. Cockrum is currently the President and Chairman of the Board of Directors for DM Products, Inc.  He has over 33 years of experience working in the Material Handling Industry, more specifically in warehouse distribution and fulfillment. He worked for Interlake, Inc., the world’s leading Materials Handling equipment supplier from 1973 thru 1983.  In 1983 he founded Kacee Construction Company, a subsidiary of Cockrum Enterprises, Inc., a private company, where he was the CEO and President.   He is also presently a board member of a publicly traded company, DM Products, a company currently trading on Pink Sheets, which specializes in producing Infomercials along with marketing, distribution and fulfillment of their products.  From April 2007 to March of 2008 he was President and Board Chairman. March of 2008 till October of 2009 he held the position of V.P. of Operations. He was then reappointed to the Board and retained his former positions as President and Board Chairman.  Working with DM Products for three and one half years, he has worked extensively with manufacturing of products, product search and development, marketing and sales, call and customer service centers, infomercial creation and execution, financial management, media buying time, project budgeting, short and long term planning, and contract negotiations in the Direct Response industry He is also a certified OSHA outreach trainer.

13

In addition, Mr. Cockrum has been involved with several organizations throughout the community, volunteering and helping out with the community’s youth and his church, serving on various boards and committees.  He is presently serving in an advisory capacity to Pacific Lutheran Theological Seminary in Berkeley, California.

James Clarke. James Clarke is currently on the Board of DM Products, Inc. and holds the positions of Secretary and Treasurer. He was President and Board Chairman from March of 2007 until October 2009. Mr. Clarke has over 30 years of Senior and Executive level management experience, including developing operations and building international distribution networks throughout the U.S. and worldwide. He founded five companies: Quintec Industries (1973-1981); Circuit Products West, Inc. (1981-1984); Carter International, Inc. (1985-1990; The Delphi Group (1991-1993), and; Capital Marketing Group (1993-2005).  Over the past 20 years, he operated as President or CEO with several other companies, and has previous Board experience. He received his BS in Business Administration and MS in Marketing from Oklahoma State University.

Term of Office

Our directors are appointed for a one-year term to hold office until the next annual general meeting of our shareholders or until removed from office in accordance with our bylaws.  Our officers are appointed by our board of directors and hold office until removed by the board.

Significant Employees

At present, Kurtis Cockrum is serving as both President and Chairman and has been a significant figure in directing all aspects of company activity.  His overall experience in business start-ups is vital to the success of DM Products. (For more information concerning Mr. Cockrum’s qualifications to lead our company, see his full Bio contained elsewhere in this disclosure statement.).

There are no other significant employees at this time.

Family Relationships

There are no family relationships between or among the directors, executive officers or persons nominated or chosen by us to become directors or executive officers.

Involvement in Certain Legal Proceedings

To the best of our knowledge, during the past five years, none of the following occurred with respect to our present or former director, executive officer, or employee: (1) any bankruptcy petition filed by or against any business of which such person was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time; (2) any conviction in a criminal proceeding or being subject to a pending criminal proceeding (excluding traffic violations and other minor offenses); (3) being subject to any order, judgment or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his or her involvement in any type of business, securities or banking activities; and (4) being found by a court of competent jurisdiction (in a civil action), the SEC or the Commodities Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended or vacated.

14

Committees of the Board

Our company currently does not have nominating, compensation or audit committees or committees performing similar functions nor does our company have a written nominating, compensation or audit committee charter. Our directors believe that it is not necessary to have such committees, at this time, because the functions of such committees can be adequately performed by the board of directors.

Our company does not have any defined policy or procedural requirements for shareholders to submit recommendations or nominations for directors. The board of directors believes that, given the stage of our development, a specific nominating policy would be premature and of little assistance until our business operations develop to a more advanced level. Our company does not currently have any specific or minimum criteria for the election of nominees to the board of directors and we do not have any specific process or procedure for evaluating such nominees. The board of directors will assess all candidates, whether submitted by management or shareholders, and make recommendations for election or appointment.

A shareholder who wishes to communicate with our board of directors may do so by directing a written request addressed to our CEO and director, Kurtis Cockrum, at the address appearing on the first page of this annual report.

Code of Ethics

Our board of directors adopted our code of ethical conduct that applies to all of our employees and directors, including our principal executive officer, principal financial officer, principal accounting officer or controller, and persons performing similar functions.

We believe the adoption of our Code of Ethical Conduct is consistent with the requirements of the Sarbanes-Oxley Act of 2002.

Our Code of Ethical Conduct is designed to deter wrongdoing and to promote:

· Honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;

· Full, fair, accurate, timely and understandable disclosure in reports and documents that we file or submit to the Securities & Exchange Commission and in other public communications made by us;

· Compliance with applicable governmental laws, rules and regulations;

· The prompt internal reporting to an appropriate person or persons identified in the code of violations of our Code of Ethical Conduct; and

· Accountability for adherence to the Code.

15

Item 11.  Executive Compensation

The table below summarizes all compensation awarded to, earned by, or paid to our officers for all services rendered in all capacities to us for our fiscal years ended December 31, 2011 and 2012.

SUMMARY COMPENSATION TABLE
Name and principal position	Year	Salary ($)	Bonus ($)	Stock Awards ($)	Option Awards ($)	Non-Equity Incentive Plan Compensation ($)	Nonqualified Deferred Compensation Earnings ($)	All Other Compensation ($)	Total ($)
Kuris L. Cockrum, President (1)(2)	2012 2011	120,000 120,000	0 0	0 20,000	0 0	0 0	0 0	0 0	120,000 140,000
James R. Clarke(3) Secretary/Treasurer	2012 2011	500 6,000	0 0		0 0	0 0	0 0	0 0	500 6,000

(1)	The aggregate grant date fair value of the stock awards issued at $20,000 is computed in accordance with FASB ASC Topic 718.  The values attributable to the stock compensation were based on the existing sales of our common stock and the restrictions on re-sale at the time of issuance. Please refer to Note 1 of our audited financial statements for the years ended December 31, 2012 and 2011.
(2)	Mr. Cockrum didn’t not receive any salary compensation in 2012 due to lack of funds but did receive stock for service as a director. Compensation is being accrued and will be paid when funds are available.
(3)	The aggregate grant date fair value of the stock awards issued at $10,000 is computed in accordance with FASB ASC Topic 718.  The values attributable to the stock compensation were based on the existing sales of our common stock and the restrictions on re-sale at the time of issuance. Please refer to Note 1 of our audited financial statements for the years ended December 31, 2012 and 2011.

16

Outstanding Equity Awards at Fiscal Year-End

The table below summarizes all unexercised options, stock that has not vested, and equity incentive plan awards for each named executive officer as of December 31, 2012.

OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END

OPTION AWARDS

STOCK AWARDS

Name

Number of Securities Underlying Unexercised Options (#) Exercisable

Number of Securities Underlying Unexercised Options (#) Nonexercisable

Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#)

Option Exercise Price ($)

Option Expiration Date

Number of Shares or Units of Stock That Have Not Vested (#)

Market Value of Shares or Units of Stock That Have Not Vested ($)

Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#)

Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested (#)

Kuris L. Cockrum,

-

-

-

-

-

-

-

-

-

James R. Clarke

-

-

-

-

-

-

-

-

-

Employment Arrangement’s with Named Executive Officers

The company’s only employment contract is with its President, Kurt Cockrum. Such agreement was effective April 20, 2007 and continues unless and until terminated by either party pursuant to their rights under California law.  Compensation is $10,000 per month.  Due to lack of funds available in 2007 and 2008, a portion of Executive salaries were deferred from 2007, 2008 and 2010, 2011 until 2012.  Approximately $285,653 in salary is still owed from years 2007, 2008, 2010, 2011 and 2012.

DIRECTORS’ COMPENSATION TABLE

Name	Year		Salary ($)		Bonus ($)		Stock Awards ($)		Option Awards ($)		Non-Equity Incentive Plan Compensation ($)		Nonqualified Deferred Compensation Earnings ($)		All Other Compensation ($)		Total ($)
Kurtis L. Cockrum James R. Clarke		2012 2011 2012 2011		120,000 120,000 500  6,000		0 0 0 0		0 20,000 0 0		0 0 0 0		0 0 0 0		0 0 0 0		0 0 0 0		120,000 140,000 500 16,000

17

Director Compensation

Kurt Cockrum and James Clarke are the only director’s to have received any compensation for their services on the board of directors. In 2010, no shares of our common stock were issued to any of our directors for services performed. In 2011 shares we issued for compensation for services performed for both 2010 and 2011. In 2012, no shares of common stock have been issued to any of the board of directors for services performed. We have considered offering additional compensation to our directors should we see a growth in our revenues and net worth.

Item 12.  Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

The following table sets forth certain information, as of December 31, 2012, with respect to the beneficial ownership of our common stock by (i) all of our directors, (ii) each of our executive officers named in the Summary Compensation Table, (iii) all of our directors and named executive officers as a group, and (iv) all persons known to us to be the beneficial owner of more than five percent (5%) of any class of our voting securities.

	Common Stock
Name and Address of Beneficial Owner	Amount and Nature of Beneficial Ownership	Percent of Ownership(1)
Kurtis L. Cockrum 1507 Elise Ct. Walnut Creek, CA 94596	62,333,333	22.8%
James Clarke 2031 B Via Mariposa East Laguna Woods, CA 92637	6,666,666	2.5%
All officer and directors	68,999,999	25.3%
5% SHARHEOLDERS
Michael S. DeBenon 20522 Pierview Lane Huntington Beach, CA  92646	33,121,000	12.1%

(1)   The percentages are based on 272,339,011shares of common stock outstanding on December 31, 2012.

Item 13.   Certain Relationships and Related Transactions, and Director Independence

Other than the transactions described below and under the heading “Executive Compensation” (or with respect to which such information is omitted in accordance with SEC regulations), since December 31, 2011 there have not been, and there is not currently proposed, any transaction or series of similar transactions to which we were or will be a participant in which the amount involved exceeded or will exceed the lesser of $120,000 or one percent of the average of our total assets at year-end for the last two completed fiscal years, and in which any director, executive officer, holder of 5% or more of any class of our capital stock or any member of the immediate family of any of the foregoing persons had or will have a direct or indirect material interest.

Item 14.   Principal Accounting Fees and Services

Below is the table of Fees billed by our auditor in connection with the audit of the Company’s annual financial statements and services related to our quarterly filings for the years ended:

Financial Statements for the Year Ended December 31	Audit Services		Audit Related Fees		Tax Fees		Other Fees
2012	$	7,350	$	0	$	0	$	0
2011	$	10,100	$	0	$	0	$	0

18

PART IV

Item 15.   Exhibits, Financial Statements Schedules

(a) Financial Statements and Schedules

The following financial statements and schedules listed below are included in this Form 10-K.

Financial Statements (See Item 8)

(b) Exhibits

Exhibit Number	Description
3.1	Articles of Incorporation (1)
3.2	Certificate of Amendment(1)
3.3	By-Laws(1)
3.4	Certificate of Amendment, Article of Incorporation (3).
5.1	Certificate of Designation, Series “A” Preferred Stock (4)
8.1 8.2	Certificate of Dissolution of Aliano, Inc. Certificate of Dissolution of ELK Films, Inc.
10.1	Share Exchange Agreement, dated July 18, 2005(1)
10.2	Employment Agreement of Kurt Cockrum(1)
10.3	Monthly Retainer Agreement with Michael S. DeBenon(1)
10.4	Manufacturing, Marketing and Distribution Agreement with Banjo Buddies, Inc.(1)
10.5	Modification of Manufacturing, Marketing and Distribution Agreement with Banjo Buddies, Inc.(1)
10.6	Manufacturing, Marketing and Distribution Agreement with Tristar Products, Inc.(1)
10.7	Addendum to Manufacturing, Marketing and Distribution Agreement with Tristar Products, Inc.(1)
10.8	Settlement Agreement and Release with Banjo Buddies, Inc.(1)
10.9	Operating Agreement of Direct Success LLC #3 between Direct Success, Inc. and Buena Vista Infomercials, Inc. (2)
10.10	Settlement and Release Agreement with Script To Screen Productions, M2 Marketing and Management  Services , Inc. (5)
14.1	Code of Ethics (6)
23.1	Consent of Independent Registered Public Accounting firm (6)

19

31.1	Certification of Chief Executive Officer pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Chief Financial Officer pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a), 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

(1) Previously included as an Exhibit to the Registration Statement on Form S-1 filed with the Securities and Exchange Commission on April 8, 2010.

(2) Previously included as an Exhibit to the Registration Statement on Form S-1 filed with the Securities and Exchange Commission on September 30, 2010.

(3) Previously included as an Exhibit to Form 8K filed with the Securities and Exchange Commission on December 14, 2011.

(4) Previously included as an Exhibit to Form 8K filed with the Securities and Exchange Commission on December 14, 2011.

(5) Previously included as an Exhibit to Form 8K filed with the Securities and Exchange Commission on February 7, 2012.

(6)  Previously included as an Exhibit to Form 10K filed with the Securities and Exchange Commission on march 30, 2011.

20

SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 DM Products, Inc.

By:	/s/ Kurtis Cockrum
	Kurtis Cockrum President, Chairman of the Board of Directors, Principal Executive Officer, Principal Accounting Officer, and Director
	March 20, 2013

In accordance with Section 13 or 15(d) of the Exchange Act, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated:

By:	/s/ Kurtis Cockrum
	Kurtis Cockrum President, Chairman of the Board of Directors, Principal Executive Officer, Principal Accounting Officer, and Director
	March 20, 2013
By:	/s/ James Clarke
	James Clarke Chief Financial Officer, Principal Financial Officer, Treasurer, Secretary and Director
	March 20, 2013

21

EX-8.1

Exhibit 8.1

EX-8.2

Exhibit 8.2

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Kurtis Cockrum, certify that;

1.   I have reviewed this annual report on Form 10-K for the year ended December 31, 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 statements were made, not misleading with respect the period covered by this report;

3.   Based on my knowledge, the financial statements and other financial information included in this report, fairly represent in all 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(c) and 15d-15(c) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have;

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

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

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

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

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

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

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

Date: March 20, 2013

/s/ Kurtis Cockrum

BY: Kurtis Cockrum

Title: Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, James Clarke, certify that;

1.   I have reviewed this annual report on Form 10-K for the year ended December 31, 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 statements were made, not misleading with respect the period covered by this report;

3.   Based on my knowledge, the financial statements and other financial information included in this report, fairly represent in all 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(c) and 15d-15(c) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have;

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

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

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

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

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

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

a.   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: March 20, 2013

/s/ James Clarke

BY: James Clarke

Title: Chief Financial Officer

EX-32.1

Exhibit 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 connection with the annual Report of DM Products, Inc. (the “Company”) on Form 10-K for the year ended December 31, 2012 filed with the Securities and Exchange Commission (the “Report”), We, 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:   March 20, 2013

By:       /s/ James Clarke

Name:  James Clarke

Title:    Principal Financial Officer and Director

Date:    March 20, 2013

This certification has been furnished solely pursuant to Section 906 of the Sarbanes- Oxley Act of 2002.

XML

Note 7: Capital Stock (Details) (USD $)	Dec. 31, 2012	Jan. 27, 2012	Dec. 31, 2011
Capital share, authorized	430,000,000
Common stock, shares authorized	400,000,000		400,000,000
Common stock, par value	$ 0.001		$ 0.001
Preferred stock, shares authorized	30,000,000		30,000,000
Preferred stock, par value	$ 0.001		$ 0.001
Common stock, shares outstanding	273,339,011		282,720,684
Current holdings of common stock		50.00%
Celecia Family Trust
Common stock surrendered per settlement and release agreement		3,390,834
Koontz Family Trust
Common stock surrendered per settlement and release agreement		3,390,834
K & B Kerry Living Trust
Common stock surrendered per settlement and release agreement		8,081,669
Tony L Kerry And Erika D Kerry Revocable Trust
Common stock surrendered per settlement and release agreement		5,481,664

XML

Note 1: Summary of Significant Accounting Policies: Income Taxes (Details) (USD $)	Dec. 31, 2012
Interest or penalties incurred on income taxes	$ 0

XML

Note 9: Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Details) (USD $)	Dec. 31, 2012	Dec. 31, 2011
Net Operating Loss Carryover	$ 517,772	$ 461,067
Less: Valuation Allowance	(517,772)	(461,067)
Net Deferred Tax Asset	$ 0	$ 0

XML

Note 3: Prepaid Expenses

12 Months Ended

Dec. 31, 2012

Notes

Note 3: Prepaid Expenses

Note 3:  Prepaid Expenses

Prepaid expenses consisted of the following at December 31:

	2012	2011
Prepaid insurance	0	$10,656
Total prepaid expenses	0	$10,656

XML

Note 3: Prepaid Expenses: Schedule of Prepaid Expenses (Details) (USD $)	Dec. 31, 2012	Dec. 31, 2011
Prepaid insurance	$ 0	$ 10,656
Total Prepaid Expenses		$ 10,656

XML

Note 2: Property and Equipment (Details) (USD $)	12 Months Ended	24 Months Ended
	Dec. 31, 2012	Dec. 31, 2012
Depreciation expense	$ 300	$ 487

XML

Note 5: Accrued Expenses: Schedule of Accrued Liabilities (Details) (USD $)	Dec. 31, 2012	Dec. 31, 2011
Accrued Salaries	$ 285,653	$ 165,653
Accrued Directors' Fees	8,000	8,000
Total Prepaid Expenses	$ 293,653	$ 173,653

XML

Note 5: Accrued Expenses (Details) (USD $)	12 Months Ended					59 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2011 President	Dec. 31, 2011 Director	Dec. 31, 2012 Director	Mar. 31, 2012 President
Description of employment contract						According to the agreement, the employee's starting salary is $6,000 per month during the first 90 days following execution of the agreement or after $500,000 in capital is raised. After such period of time, the employee's salary was increased to $10,000 per month.
Salary expense to the related party	$ 120,000	$ 120,000
Directors fees			6,000	2,000
Receivable from Officers and Directors for Issuance of Capital Stock					$ 8,000

XML

Note 2: Property and Equipment

12 Months Ended

Dec. 31, 2012

Notes

Note 2: Property and Equipment

Note 2: Property and 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 $300 and $487 for the years ended December 31, 2012 and 2011, respectively.

XML

Note 6: Related Party Transactions (Details) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Consulting contract payment, per month	$ 6,000
Investor
Accrued consulting expenses, related party	0	27,075
Accounts Payable, Related Parties, Noncurrent	$ 24,000	$ 24,000

XML

CONSOLIDATED BALANCE SHEETS (USD $)	Dec. 31, 2012	Dec. 31, 2011
Current Assets
Cash and cash equivalents	$ 34,762	$ 26,089
Royalties receivable	1,541	15,835
Prepaid expenses		10,656
Total Current Assets	36,303	52,580
Property and Equipment - net	428	728
TOTAL ASSETS	36,731	53,308
Current Liabilities
Accounts payable - related party	50,302	45,320
Accrued expenses - related party	293,653	173,653
Sales tax payable	2,424	2,424
Total Current Liabilities	346,379	221,397
Total Liabilities	346,379	221,397
Stockholders' Deficit
Preferred Stock, $.001 par value, 30,000,000 shares authorized, 0 shares issued and outstanding
Common Stock, $.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	(1,522,860)	(1,356,079)
Total DM Products, Inc. Stockholders' Deficit	(607,176)	(440,395)
Non-controlling interest	297,528	272,306
Total Stockholders' Deficit	(309,648)	(168,089)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$ 36,731	$ 53,308

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss for the period	$ (141,559)	$ (152,928)
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities:
Depreciation	300	487
Share-based compensation		64,175
Changes in assets and liabilities:
Royalties receivable	14,294	23,413
Employee advances		5,000
Prepaid expenses	10,656
Accounts payable	4,982	(9,649)
Accrued expenses	120,000	128,000
Net Cash Provided by (Used in) Operating Activities	8,673	58,498
CASH FLOWS FROM FINANCING ACTIVITIES
Net change in credit card balances		(35,123)
Net Cash Provided by (Used in) Financing Activities		(35,123)
Net increase in cash and cash equivalents	8,673	23,375
Cash and cash equivalents, beginning of period	26,089	2,714
Cash and cash equivalents, end of period	34,762	26,089
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	734	971
Cash paid for income taxes	$ 3,342	$ 5,250

XML

Note 9: Income Taxes (Details) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Operating Loss Carryforwards		$ 1,522,860
Effective Income Tax Rate, Continuing Operations	34.00%

XML

Note 9: Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2012

Tables/Schedules

Schedule of Deferred Tax Assets and Liabilities

	2012	2011
Deferred tax asset attributable to:
Net operating loss carryover	$517,772	$461,067
Less: valuation allowance	(517,772)	(461,067)
Net deferred tax asset	$0	$0

XML

Note 9: Income Taxes: Schedule of Components of Income Tax Expense (Benefit) (Details) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Current Income Tax Expense (Benefit)	$ 56,705	$ 68,567
Less: Valuation Allowance	(56,705)	(68,567)
Net Provision For Federal Income Taxes	$ 0	$ 0

XML

Note 1: Summary of Significant Accounting Policies: Revenue Recognition (Details)	12 Months Ended
	Dec. 31, 2012	Mar. 01, 2007
Royalty fee percentage of gross sales		4.00%
Royalty Fee Description	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.

XML

Note 1: Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2012

Notes

Note 1: Summary of Significant Accounting Policies

Note 1: Summary of Significant Accounting Policies

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 25%. The purpose is to market products through direct response to television infomercials. The companies obtain the distribution, production, and licensing rights to a product 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 introduced 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 a 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. was 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 was established for both film production and distribution.

On December 14, 2012, the Company dissolved ELK Films, Inc. 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 ELK Films, Inc. were written off in the respective books with no effect in the consolidated balance sheet and in the consolidated statement of operations.

Basis of Consolidation

The consolidated financial statements include the accounts of DM Products, Inc., Aliano, Inc., Direct Success, 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 December 31, 2012 and 2011, the Company had cash balances of $34,762 and $26,089, respectively.

Fair Value of Financial Instruments

The Company’s financial instruments consist of cash and cash equivalents, royalties receivable, prepaid expense, accounts payable, accrued expenses, and sales tax payable. 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.

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 year ended December 31, 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 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 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.

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 December 31, 2012, there have been no interest or penalties incurred on income taxes.

Advertising Policy

The Company recognizes advertising expense as incurred.  Advertising expense for the years ended December 31, 2012, and 2011 were $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 December 31, 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 a fair market value of $.0015 per share totaling to $30,000. There was no stock-based compensation granted during the year ended December 31, 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 a fair market value of $.0015 per share totaling to $34,175. There was no stock-based compensation issued to non-employees during the year ended December 31, 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 flows.

XML

Consolidated Balance Sheets (Parenthetical) (USD $)	Dec. 31, 2012	Dec. 31, 2011
Common Stock, par or stated value	$ 0.001	$ 0.001
Common Stock, shares authorized	400,000,000	400,000,000
Common Stock, shares issued	273,339,011	282,720,684
Common Stock, shares outstanding	273,339,011	282,720,684
Preferred Stock, par or stated value	$ 0.001	$ 0.001
Preferred Stock, shares authorized	30,000,000	30,000,000
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0

XML

Note 11: Subsequent Events

12 Months Ended

Dec. 31, 2012

Notes

Note 11: Subsequent Events

Note 11: Subsequent Events

DM Products, Inc. acquired a 33.3% ownership in the newly created “Dyatlov Pass Productions, LLC”, a Nevada Limited Liability Company established on January 4, 2013 for the purpose of film production.

In accordance with ASC 855-140, the Company has analyzed its operations subsequent to December 31, 2012 to the date these financial statements were issued, and has determined that it does not have any material subsequent events to disclose in these financial statements other than the event described above.

XML

Document and Entity Information (USD $)	12 Months Ended
	Dec. 31, 2012	Mar. 20, 2013
Document and Entity Information
Entity Registrant Name	DM Products, Inc.
Document Type	10-K
Document Period End Date	Dec. 31, 2012
Amendment Flag	false
Entity Central Index Key	0001485029
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		273,339,011
Entity Public Float	$ 273,339
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	No
Entity Voluntary Filers	Yes
Entity Well-known Seasoned Issuer	Yes
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	FY

XML

Note 1: Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2012

Policies

Nature of Operations

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 25%. The purpose is to market products through direct response to television infomercials. The companies obtain the distribution, production, and licensing rights to a product 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 introduced 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 a 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. was 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 was established for both film production and distribution.

On December 14, 2012, the Company dissolved ELK Films, Inc. 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 ELK Films, Inc. were written off in the respective books with no effect in the consolidated balance sheet and in the consolidated statement of operations.

Basis of Consolidation

Basis of Consolidation

The consolidated financial statements include the accounts of DM Products, Inc., Aliano, Inc., Direct Success, Inc. and the accounts of its 75% owned subsidiary Direct Success LLC 3. All material inter-company transactions have been eliminated.

Basis of Presentation

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

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

Cash and Cash Equivalents

All highly liquid investments with maturities of three months or less are considered to be cash equivalents.  At December 31, 2012 and 2011, the Company had cash balances of $34,762 and $26,089, respectively.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

The Company’s financial instruments consist of cash and cash equivalents, royalties receivable, prepaid expense, accounts payable, accrued expenses, and sales tax payable. 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.

Use of Estimates

Use of Estimates

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

Revenue Recognition

Revenue Recognition

The Company records revenue in accordance with ASC Topic 605 - Revenue Recognition. During the year ended December 31, 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 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 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

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.

Income Taxes

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 December 31, 2012, there have been no interest or penalties incurred on income taxes.

Advertising Policy

Advertising Policy

The Company recognizes advertising expense as incurred.  Advertising expense for the years ended December 31, 2012, and 2011 were $0 and $150, respectively.

Basic Income (loss) Per Share

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 December 31, 2012.

Stock-based Compensation

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 a fair market value of $.0015 per share totaling to $30,000. There was no stock-based compensation granted during the year ended December 31, 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 a fair market value of $.0015 per share totaling to $34,175. There was no stock-based compensation issued to non-employees during the year ended December 31, 2012.

Recent Accounting Pronouncements

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 flows.

XML

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
REVENUES
Royalty income	$ 106,535	$ 200,986
Total revenues	106,535	200,986
OPERATING EXPENSES
Professional fees	21,542	60,774
Salaries and wages	120,500	129,663
Consulting	13,052	87,423
General and administrative	93,000	76,054
TOTAL OPERATING EXPENSES	248,094	353,914
INCOME (LOSS) FROM OPERATIONS AND BEFORE NON-CONTROLLING INTEREST	(141,559)	(152,928)
LESS: INCOME ATTRIBUTABLE TO NON-CONTROLLING INTEREST	25,222	48,740
LOSS BEFORE PROVISION FOR INCOME TAXES	(166,781)	(201,668)
PROVISION FOR INCOME TAXES
NET LOSS	$ (166,781)	$ (201,668)
LOSS PER SHARE: BASIC AND DILUTED	$ 0.00	$ 0.00
WEIGHTED AVERAGE COMMON SHARES OUTSANDING: BASIC AND DILUTED	274,756,169	245,042,831

XML

Note 6: Related Party Transactions

12 Months Ended

Dec. 31, 2012

Notes

Note 6: Related Party Transactions

Note 6: Related Party Transactions

The Company entered into a consulting contract with Michael DeBenon, Esq., a stockholder of the Company, for $6,000 per month that was on a month to month basis for general counsel. Legal expenses to the related party were $0 and $27,075 for the years ended December 31, 2012 and 2011, respectively. As of December 31, 2012 and 2011, the Company owed the related party $24,000.

As discussed in Note 5, the Company entered into an employment agreement with Kurt Cockrum, the CEO, President, Board Chairman, and a Director, on April 20, 2007. Total salary expense was $120,000 for the years ended December 31, 2012 and 2011. Total accrued wages were $285,653 and $165,653 for the years ended December 31, 2012 and 2011, respectively.

Also discussed in Note 5, the Company owed Kurt Cockrum and James Clarke, who is the Secretary, Treasurer, and a Director, $6,000 and $2,000, respectively, worth of common stock as of December 31, 2012 and 2011.

XML

Note 5: Accrued Expenses

12 Months Ended

Dec. 31, 2012

Notes

Note 5: Accrued Expenses

Note 5: Accrued Expenses

Accrued expenses consisted of the following at December 31:

	2012	2011
Accrued wages	$285,653	$165,653
Accrued directors’ fees	8,000	8,000
Total accrued expenses	$293,653	$173,653

Wages are accrued under an employee agreement entered into on the April 20, 2007 by and between the Company and Kurt Cockrum, who is the CEO, President, Board Chairman, and a Director. According to the agreement, the employee's starting salary is $6,000 per month during the first 90 days following execution of the agreement or after $500,000 in capital is raised. After such period of time, the employee's salary was 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 be provided to the employee at the 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 December 31, 2012 and 2011, respectively, were $285,653 and $165,653.

Salary expense to the related party was $120,000 for the years ended December 31, 2012 and 2011.

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. The policy is retroactive with an effective date of January 1, 2010. Per the policy, the Company owed Kurtis Cockrum, who is the CEO, President, Board Chairman, and a Director, $6,000 worth of common stock, and James Clarke, who is a Director, Secretary, and Treasurer, $2,000 worth of common stock as of December 31, 2011. The amount has been recorded as accrued director fees at December 31, 2011. The entire balance of $8,000 is still outstanding as of December 31, 2012.

XML

Note 1: Summary of Significant Accounting Policies: Nature of Operations (Details)	Mar. 31, 2012	Jul. 26, 2010	Jul. 18, 2005
Business acquisition, percentage of ownership acquired			70.00%
Business acquisition, share exchange			114,851,043
Ownership percentage of subsidiary by company	75.00%
Equity distribution for services rendered, percentage		5.00%

XML

Note 3: Prepaid Expenses: Schedule of Prepaid Expenses (Tables)

12 Months Ended

Dec. 31, 2012

Tables/Schedules

Schedule of Prepaid Expenses

	2012	2011
Prepaid insurance	0	$10,656
Total prepaid expenses	0	$10,656

XML

Note 9: Income Taxes

12 Months Ended

Dec. 31, 2012

Notes

Note 9: Income Taxes

Note 9: Income Taxes

As of December 31, 2011, the Company had net operating loss carry forwards of approximately $1,522,860 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:

	2012	2011
Federal income tax benefit attributable to:
Current operations	$56,705	$68,567
Less: valuation allowance	(56,705)	(68,567)
Net provision for Federal income taxes	$0	$0

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

	2012	2011
Deferred tax asset attributable to:
Net operating loss carryover	$517,772	$461,067
Less: valuation allowance	(517,772)	(461,067)
Net deferred tax asset	$0	$0

Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of $1,522,860 for federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, net operating loss carry forwards may be limited as to use in future years.

XML

Note 7: Capital Stock

12 Months Ended

Dec. 31, 2012

Notes

Note 7: Capital Stock

Note 7: Capital Stock

The Company has 430,000,000 shares of capital stock authorized, 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 December 31, 2012 and 282,720,684 shares issued and outstanding as of December 31, 2011.

In early 2012, a dispute arose between the Company and Script to Screen Products, M2 Marketing and Management Services, Inc., Tony Kerry, Dallas Celecia, Mick Koontz, Ken Kerry, and Barbara Kerry (collectively “STS”). The individuals are shareholders of DM Products, Inc. Tony Kerry, Dallas Celecia and Mick Koontz were former officers and/or directors of the Company. The dispute concerned a potential conflict of interest alleged by the Company, which allegations were, and are, fully denied by STS. On January 27, 2012, DM Products and its wholly-owned subsidiary Direct Success, Inc. entered into a Settlement and Release Agreement with STS in which these individuals agreed to surrender 50% of their current holdings of common stock of the Company in exchange for the Company providing STS with a full and final release of all claims. As a result of the aforementioned agreement, the following equity transactions occurred on January 27, 2012.

3,390,834 shares of $0.001 par value common stock owned by Celecia Family Trust were surrendered.

3,390,834 shares of $0.001 par value common stock owned by Koontz Family Trust were surrendered.

8,081,669 shares of $0.001 par value common stock owned by K & B Kerry Living Trust.

5,481,664 shares of $0.001 par value common stock were issued to Tony L. Kerry and Erika D. Kerry Revocable Trust due to the original total outstanding stock they owned being erroneously cancelled.

XML

Note 8: Commitments and Contingencies

12 Months Ended

Dec. 31, 2012

Notes

Note 8: Commitments and Contingencies

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 is 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.

XML

Note 10: Going Concern

12 Months Ended

Dec. 31, 2012

Notes

Note 10: Going Concern

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 this matter, 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.

XML

Note 8: Commitments and Contingencies (Details) (USD $)	Dec. 31, 2012
Fair market value of rents contributed by related parties	$ 50.00

XML

Note 9: Income Taxes: Schedule of Components of Income Tax Expense (Benefit) (Tables)

12 Months Ended

Dec. 31, 2012

Tables/Schedules

Schedule of Components of Income Tax Expense (Benefit)

	2012	2011
Federal income tax benefit attributable to:
Current operations	$56,705	$68,567
Less: valuation allowance	(56,705)	(68,567)
Net provision for Federal income taxes	$0	$0

XML

Note 1: Summary of Significant Accounting Policies: Advertising Policy (Details) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Advertising Expense	$ 0	$ 150

XML

CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT (USD $)	Common Stock	Additional Paid in Capital	Non-Controlling Interest	Accumulated Deficit	Total Stockholders' Deficit
Stockholders' Equity at Dec. 31, 2010	$ 239,938	$ 611,571	$ 223,566	$ (1,154,411)	$ (79,336)
Shares, Outstanding at Dec. 31, 2010	239,937,352
Shares issues to officers for services, value	20,000	10,000			30,000
Shares issues to officers for services, shares	19,999,999
Shares issued to independent consultants for services, value	16,733	8,367			25,100
Shares issued to independent consultants for services, shares	16,733,333
Shares issued to board member for legal services, value	6,050	3,025			9,075
Shares issued to board member for legal services, shares	6,050,000
Net income (loss)			48,740	(201,668)	(152,928)
Stockholders' Equity at Dec. 31, 2011	282,721	632,963	272,306	(1,356,079)	(168,089)
Shares, Outstanding at Dec. 31, 2011	282,720,684
Shares surrendered per settlement and release agreement, value	(14,864)	14,864
Shares surrendered per settlement and release agreement, shares	(14,863,337)
Shares issued per settlement and release agreement previously cancelled, value	5,482	(5,482)
Shares issued per settlement and release agreement previously cancelled, shares	5,481,664
Net income (loss)			25,222	(166,781)	(141,559)
Stockholders' Equity at Dec. 31, 2012	$ 273,339	$ 642,345	$ 297,528	$ (1,522,860)	$ (309,648)
Shares, Outstanding at Dec. 31, 2012	273,339,011

XML

Note 4: Non-controlling Interest

12 Months Ended

Dec. 31, 2012

Notes

Note 4: Non-controlling Interest

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.

XML

Note 1: Summary of Significant Accounting Policies: Stock-based Compensation (Details) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Shares issues to officers for services, shares		19,999,999
Share-based compensation, fair market value price		$ 0.0015
Share-based compensation granted, total fair value		$ 30,000
Stock-based compensation issued to non-employees	0	22,783,333
Stock-based compensation issued to non-employees, fair market value price		$ 0.0015
Stock-based compensation issued to non-employees, total fair value value		$ 34,175

XML

Note 11: Subsequent Events (Details)	12 Months Ended
	Dec. 31, 2012
Limited Liability Company (LLC) or Limited Partnership (LP), Managing Member or General Partner, Ownership Interest	33.30%

XML

Note 5: Accrued Expenses: Schedule of Accrued Liabilities (Tables)

12 Months Ended

Dec. 31, 2012

Tables/Schedules

Schedule of Accrued Liabilities

	2012	2011
Accrued wages	$285,653	$165,653
Accrued directors’ fees	8,000	8,000
Total accrued expenses	$293,653	$173,653