0001062993-12-001989.txt : 20120601 0001062993-12-001989.hdr.sgml : 20120601 20120531173436 ACCESSION NUMBER: 0001062993-12-001989 CONFORMED SUBMISSION TYPE: POS AM PUBLIC DOCUMENT COUNT: 19 FILED AS OF DATE: 20120601 DATE AS OF CHANGE: 20120531 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ONLINE DISRUPTIVE TECHNOLOGIES, INC. CENTRAL INDEX KEY: 0001498380 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER PROGRAMMING, DATA PROCESSING, ETC. [7370] IRS NUMBER: 000000000 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: POS AM SEC ACT: 1933 Act SEC FILE NUMBER: 333-168698 FILM NUMBER: 12881245 BUSINESS ADDRESS: STREET 1: 3120 S. DURANGO DRIVE STREET 2: SUITE 305 CITY: LAS VEGAS STATE: NV ZIP: 89117 BUSINESS PHONE: 702-579-7900 MAIL ADDRESS: STREET 1: 3120 S. DURANGO DRIVE STREET 2: SUITE 305 CITY: LAS VEGAS STATE: NV ZIP: 89117 POS AM 1 forms1a.htm POST-EFFECTIVE AMENDMENT NO. 3 Online Disruptive Technologies, Inc.: Form S1/A - Filed by newsfilecorp.com

Registration No. 333-168698

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

FORM S-1/A

(Post-Effective Amendment No. 3)
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
 
Online Disruptive Technologies, Inc.
(Exact name of registrant as specified in its charter)
 
Nevada
(State or other jurisdiction of incorporation or organization)
 
7370
(Primary Standard Industrial Classification Code Number)
 
27-1404923
(I.R.S. Employer Identification Number)
 
3120 S. Durango Dr. Suite 305, Las Vegas, Nevada 89117
Tel: 702-579-7900
(Address, including zip code, and telephone number,
including area code, of registrant’s principal executive offices)
 
National Registered Agents, Inc.
1000 East William Street Suite 204, Carson City, 89701
Tel: 1-800-550-6724
(Name, address, including zip code, and telephone number,
including area code, of agent for service)
 
Copy of Communications To:
Clark Wilson LLP
Suite 800 - 885 West Georgia Street
Vancouver, British Columbia V6C 3H1, Canada
Telephone: (604) 643-3153
 
From time to time after the effective date of this registration statement.
(Approximate date of commencement of proposed sale to the public)

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933 check the following box: [ x ]

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. [     ]

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. [    ]


If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. [ 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 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 ]
(Do not check if a smaller reporting company)  

The registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until the registration statement shall become effective on such date as the Securities and Exchange Commission, acting pursuant to said Section 8(a), may determine.

Explanatory Note

We are filing this post-effective amendment to update the financial statements and other information contained in our registration statement (Registration No. 333-168698), which was declared effective by the Securities and Exchange Commission on December 29, 2010. We are also filing this post-effective amendment to deregister the shares previously sold by the selling shareholders.



The information in this prospectus is not complete and may be changed. The selling stockholders may not sell these securities until the Registration Statement filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any State where the offer or sale is not permitted.

Subject to Completion, Dated ______________, 2012

Preliminary Prospectus

Online Disruptive Technologies, Inc.

200,100 shares of common stock

Offering Price: At prevailing market prices or privately negotiated prices
_________________________________

The selling stockholders identified in this prospectus may offer and sell up to 200,100 shares of our common stock. The shares were acquired by the selling stockholders directly from our company in private placement offerings that were exempt from the registration requirements of the Securities Act of 1933.

The selling stockholders may sell all or a portion of the shares being offered pursuant to this prospectus at prevailing market prices or privately negotiated prices. Our common stock is quoted on the OTC Bulletin Board under the symbol “ONDR”.

We will not receive any proceeds from the sale of the shares of our common stock by the selling stockholders.

OUR BUSINESS IS SUBJECT TO MANY RISKS AND AN INVESTMENT IN OUR COMMON STOCK OFFERED THROUGH THIS PROSPECTUS WILL ALSO INVOLVE A HIGH DEGREE OF RISK. YOU SHOULD CAREFULLY READ AND CONSIDER THE SECTION OF THIS PROSPECTUS ENTITLED “RISK FACTORS” BEGINNING ON PAGE 5 OF THIS PROSPECTUS BEFORE BUYING ANY SHARES OF OUR COMMON STOCK. YOU SHOULD NOT INVEST UNLESS THEY CAN AFFORD TO LOSE THEIR ENTIRE INVESTMENT.

You should rely only on the information contained in this prospectus. We have not authorized anyone to provide you with different information. You should not assume that the information in this prospectus is accurate as of any date other than the date of this prospectus

Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.

The date of this prospectus is ______________, 2012.


Table of Contents

  Page Number
Prospectus Summary 3
Risk Factors 5
Forward-Looking Statements 10
The Offering 10
Use of Proceeds 10
Selling Stockholders 10
Plan of Distribution 11
Description of Securities 13
Experts and Counsel 14
Interest of Named Experts and Counsel 15
Information With Respect to Our Company 15
Description of Business 15
Description of Property 22
Legal Proceedings 22
Market Price of and Dividends on Our Common Equity and Related Stockholder Matters 23
Financial Statements 30
Management’s Discussion and Analysis of Financial Condition and Results of Operations 23
Directors and Executive Officers 104
Executive Compensation 107
Security Ownership of Certain Beneficial Owners and Management 108
Transactions with Related Persons, Promoters and Certain Control Persons and Corporate Governance 109
Where You Can Find More Information 111
Dealer Prospectus Delivery Obligation 112


In this prospectus, unless otherwise specified, all references to “common shares” refer to the shares of our common stock and the terms “we”, “us”, “our”, and “ODT” mean Online Disruptive Technologies, Inc., a Nevada corporation, and our wholly owned subsidiary, Relationshipscoreboard.com Entertainment, Inc. (“RSE”).

Prospectus Summary

Our Business

We were incorporated in the state of Nevada on November 16, 2009. Our wholly-owned subsidiary, Relationshipscoreboard.com Entertainment, Inc., was incorporated in the state of Nevada on November 16, 2009.

We are a start-up development stage company. We own the domain name “RelationshipScoreboard.com” and have recently launched the first version of our flagship social networking website: RelationshipScoreboard.com (“RS.com”). The premise behind RS.com is that we as human beings are curious about relationships and their inner workings. Everyone wants to know what defines a good relationship, what elements make a relationship work, and how much each partner should invest and contribute into the relationship in order to make it function on a balanced basis. We believe this website will provide objective perspectives on what people value most in a relationship and it will help people ease their concerns about their own interactions

From November 16, 2009 (date of inception) to December 31, 2009, ODT and RSE have not generated any revenues and incurred expenses of $3,163 and $1,179, respectively. For the year ended December 31, 2010, we have not generated any revenues and incurred expenses of $66,056 and for the year ended December 31, 2011, we have not generated any revenues and incurred expenses of $100,394.

We are a development stage company. We require funds to enable us to address our minimum current and ongoing expenses, including the expenses associated with the development of the website.

Because we are in the development stage and have yet to attain profitable operations, there exists substantial doubt about our ability to continue as a going concern.

Summary of the Offering

Net Proceeds to the Company: We will not receive any proceeds from the sale of the shares of our common stock by the selling stockholders.
   
Shares being offered by the Selling
Shareholders:
200,100 shares of our common stock
   
Number of shares outstanding before
and after the offering:
53,750,100
   
Risk Factors: See “Risk Factors” beginning on page 5 and the other information in this prospectus for a discussion of the factors you should consider before deciding to invest in shares of our common stock.

Summary of Financial Data

The following information represents selected audited financial information for ODT and RSE for the period from November 16, 2009 (date of inception) to December 31, 2009, audited financial information for ODT for the year ended December 31, 2010 audited financial information for the year ended December 31, 2011 and unaudited financial information for the interim period ended March 31, 2012. The summarized financial information presented below in respect of the period from November 16, 2009 to December 31, 2009 and for the years ended December 31, 2010 and December 31, 2011 and for the interim period ended March 31, 2012 is derived from and should be read in conjunction with our audited financial statements, including the notes to those financial statements, which are included elsewhere in this prospectus along with the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” beginning on page 23 of this prospectus. It should be noted that whereas the information in respect of the period from November 16, 2009 to December 31, 2009 reflects the separate operations of ODT and RSE, the information for the year ended December 31, 2010 and for the year ended December 31, 2011 is a continuation of the financial statements of RSE and reflects the consolidated information of ODT and RSE from the date that ODT acquired RSE, which is March 24, 2010.

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Statements of
Operations Data
From November 16, 2009
(Date of Inception) to
December 31, 2009 of
ODT (audited)
From November 16, 2009
(Date of Inception) to
December 31, 2009 of
RSE (audited)


Year Ended December
31, 2010 (audited)


Year Ended December
31, 2011 (audited)
Revenue Nil Nil Nil Nil
Expenses $3,163 $1,179 $67,235 $100,394
Net Loss $3,163 $1,179 $67,235 $100,394
Basic and Diluted Net
Loss Per Share
$0.02
$0.00
$0.00
$0.00


Statements of Operations Data
Three Months Ended
March 31, 2011
Three Months Ended
March 31, 2012
Revenue Nil Nil
Expenses $14,475 $35,376
Net Loss $14,475 $35,376
Basic and Diluted Net Loss Per Share $0.00 $0.00



Balance Sheet Data
As At December 31,
2009 for ODT
(audited)
As At December 31,
2009 for RSE
(audited)

As at December 31,
2010 (audited)

As at December 31,
2011 (audited)

As at March 31, 2012
(unaudited)
Cash and Cash
Equivalents
$1,578
$8
$13,658
$7,492
$23,050
Working Capital
Surplus/(Deficit)
($1,163)
($779)
($63,152)
($34,972)
($18,267)
Total Assets $1,578 $8 $21,983 $14,473 $29,832
Total Liabilities $2,741 $787 $76,810 $87,662 $87,848
Total Stockholders’
Equity/(Deficit)
($1,163)
($779)
($54,827)
($73,189)
($58,565)
Accumulated (Deficit) ($3,163) ($1,179) ($67,235) ($167,629) ($203,005)

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Please read this prospectus carefully. You should rely only on the information contained in this prospectus. We have not authorized anyone to provide you with different information. You should not assume that the information provided by this prospectus is accurate as of any date other than the date on the front of this prospectus.

Risk Factors

An investment in our common stock involves a number of very significant risks. You should carefully consider the following risks and uncertainties in addition to other information in this prospectus in evaluating our company and our business before purchasing shares of our common stock. Our business, operating results and financial condition could be seriously harmed as a result of the occurrence of any of the following risks. You could lose all or part of your investment due to any of these risks. You should invest in our common stock only if you can afford to lose your entire investment.

Risks Associated With Our Financial Condition

The fact that we have not generated any significant revenues since our inception raises substantial doubt about our ability to continue as a going concern.

We have not generated any revenues since our inception on November 16, 2009. Since we are still in the early stages of operating company and because of the lack of operating history, we will, in all likelihood, continue to incur operating expenses without significant revenues for the foreseeable future. Our primary source of funds has been the sale of our common stock. We cannot assure that we will be able to generate enough interest in our website. If we cannot attract a significant customer base, we will not be able to generate any significant revenues or income. In addition, if we are unable to establish and generate significant revenues, or obtain adequate future financing, our business will fail and you may lose some or all of your investment in our common stock.

Our independent auditors have expressed substantial doubt about our ability to continue as a going concern.

We incurred a net loss of $203,005 for the period from November 16, 2009 (date of inception) to March 31, 2012 and have not generated any revenues since our inception. Because we have incurred losses from operations since inception, have not attained profitable operations and are dependent upon obtaining adequate financing to fulfill our business operations, in their report on our financial statements for the period from November 16, 2009 (date of inception) to December 31, 2011, our independent auditors included an explanatory paragraph regarding the substantial doubt about our ability to continue as a going concern.

Our ability to continue as a going concern is dependent upon our ability to generate future profitable operations and to obtain the necessary financing to meet our obligations and repay our liabilities arising from normal business operations when they come due. We have not generated any revenues since our inception on November 16, 2009. We will continue to incur operating expenses without significant revenues for the foreseeable future. We cannot assure that we will be able to generate enough interest in our website to obtain significant revenues. If we cannot attract a significant user base, we will not be able to generate any significant revenues or income. In addition, if we are unable to establish and generate significant revenues, or obtain adequate future financing, our business will fail and you may lose some or all of your investment in our commons stock.

If we are unable to obtain financing in the amounts and on terms and dates acceptable to us, we may not be able to expand or continue our operations and developments and so may be forced to scale back or cease operations or discontinue our business and you could lose your entire investment.

During the fiscal year ended December 31, 2011, we closed a primary offering for gross proceeds of $60,000 and subsequent to the fiscal year ended December 31, 2011, we closed two private placements for gross proceeds of $17,750 and $12,000. In addition, we borrowed $50,000 with such debt giving conversion rights into common shares. However, we do not currently have any arrangement for additional financing. For the foreseeable future, we intend to fund our operations and capital expenditures from our cash on hand and additional financings. We estimate that we will not be able to initiate our planned operations using currently available capital resources. Our capital resources are insufficient to fund our planned operations for the next 12 month period, as we estimate that we require a total of $100,000 for the maintenance of our company and a further $30,000 for the development and exploitation of our website. Such additional funds may be raised through the sale of additional stock, stockholder and director advances and/or commercial borrowing. There can be no assurance that a financing will continue to be available if necessary to meet these continuing development costs or, if the financing is available, that it will be on terms acceptable to us. The issuance of additional equity securities by us will result in a significant dilution in the equity interests of our stockholders. Obtaining commercial loans, assuming those loans would be available, will increase our liabilities and future cash commitments. If we are unable to obtain financing in the amounts and on terms deemed acceptable to us, we may not be able to expand or continue our operations and developments and so may be forced to scale back or cease operations or discontinue our business and you could lose your entire investment.

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Risk Associated with our Business

To date we have not completed the development of our website however we still do not have any customers.

We do not have any paying customers and there is no guarantee that we will ever have any paying customers. Even if we obtain customers, there is no guarantee that we will generate a profit. If we cannot generate a profit, we will have to suspend or cease operations.

We will be dependent on third parties to continually develop and maintain our website, network infrastructure, and transaction processing systems as well as to design and fulfill a number of customer service and other retail functions. If such parties are unwilling or unable to continue providing these services, our business could be severely harmed. To date, other than with respect to the commissioning of the design of the website and the development of the core functionality, we have not entered into any formal relationship with any third parties to provide these services. Our success will depend on our ability to build and maintain relationships with such third party service providers on commercially reasonable terms. If we are unable to build and maintain such relationships on commercially reasonable terms, we will have to suspend or cease operations. If our customers become dissatisfied with the services provided by these third parties, our reputation could suffer.

We may face risks related to activities of registered users.

Our registered users upload their own content onto our website. We will create a terms of use for such content in the terms and conditions of our website and our users must agree to our submission agreement when they upload their content. Disputes or negative publicity about the use of such content could make members more reluctant to upload personal content or harm our reputation. Our steps to monitor and review the content provided by our users and to reduce our liability for such content may be inadequate and we could face claims arising from or liability for making any such content available on our website. Litigation to defend these claims or efforts to counter any negative publicity could be costly and any other liabilities we incur in connection with any such claims may harm our business, financial condition and results of operations.

Government regulations and legal uncertainties concerning the Internet could hinder our business operations.

Laws applicable to the Internet and online privacy generally are becoming more prevalent. New laws and regulations may be adopted regarding the Internet or other online services in the United States and foreign countries that could limit our business flexibility or cause us to incur higher compliance costs. The adoption of additional laws or regulations, either domestically or abroad, may decrease the popularity or impede the expansion of Internet marketing, restrict our present business practices, require us to implement costly compliance procedures or expose us and/or our customers to potential liability, which, in turn, could adversely affect our business. Furthermore, the applicability of existing laws to the Internet is unsettled with regard to many important issues, including intellectual property rights, export of encryption technology, personal privacy, libel and taxation. It may take years to determine whether and how such existing and future laws and regulations apply to us. If we are required to comply with new regulations or new interpretations of existing regulations, or if we are unable to comply with these regulations, our business could be harmed.

The business of providing services over the internet is difficult to evaluate and our business model is unproven.

Because we only recently began operations, it is difficult to evaluate our business and prospects. Our revenue and income potential is unproven and our business model is emerging. Further, our business plan is derived from our sole director and officers’ experience. We may never achieve favorable operating results or profitability.

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We may be unable to generate significant advertising or sponsorship revenues.

We plan to derive a significant portion of our revenues from advertising and sponsorship on our website. We may not, however, be able to generate adequate advertising or sponsorship revenues. There are no widely accepted standards that measure the effectiveness of web advertising. Advertisers and sponsors that have traditionally relied on other advertising media may be reluctant to advertise on the web. Advertisers that already have invested substantial resources in other advertising or sponsor methods may be reluctant to adopt a new strategy and our business would be adversely affected.

Different pricing models are used to sell advertising on the internet. It is difficult to predict which, if any, will emerge as the industry standard. The proliferation of websites across the internet may cause advertising and sponsor pricing levels to exist or evolve to levels that are below those originally anticipated in our business plan. This makes it difficult to project future advertising and sponsor revenues. Moreover, certain security, filtering and proprietary software programs that limit or prevent certain types of advertising from being delivered to a web user’s computer are available and prevalent. Widespread adoption of these types of software could adversely affect the commercial viability of web advertising.

Changing consumer preferences will require periodic product introduction.

As a result of changing consumer preferences, many websites are successfully marketed for only a limited period of time. There can be no assurance that any of our sites will continue to be popular for a prolonged period of time. Our success will be dependent upon our ability to develop new and improved content for our websites and product lines. Our failure to introduce new content and product lines and to achieve and sustain market acceptance and to produce acceptable margins could have a material adverse effect on our financial condition and results of operations.

Our market is characterized by rapid technological change, and if we fail to develop and market new technologies rapidly, we may not become profitable in the future.

The Internet is characterized by rapid technological change that could render our website prematurely obsolete. The development of our website entails significant technical and business risks. We can give no assurance that we will successfully use new technologies effectively or adapt our website to customer requirements or needs. If our management is unable, for technical, legal, financial, or other reasons, to adapt in a timely manner in response to changing market conditions or customer requirements, we may never become profitable which may result in the loss of all or part of your investment.

If we do not attract customers to our website on cost-effective terms, we will not generate a profit, which ultimately will result in a cessation of operations.

Our success depends on our ability to attract retail customers to our website on cost-effective terms. Our strategy to attract customers to our website, which has not been formalized or implemented, includes viral marketing, the practice of generating a “buzz” among Internet users in our products through the developing and maintaining of weblogs or “blogs”, online journals that are updated frequently and available to the public, postings on online communities such as Yahoo!(R) Groups and amateur websites such as YouTube.com, and other methods of getting Internet users to refer others to our website by e-mail or word of mouth; search engine optimization, marketing our website via search engines by purchasing sponsored placement in search results; and entering into affiliate marketing relationships with website providers to increase our visibility to Internet consumers. We plan to rely on viral marketing as the primary source of traffic to our website, with search engine optimization and affiliate marketing as secondary sources. Our marketing strategy may not be enough to attract sufficient traffic to our website. If we are unsuccessful at attracting a sufficient amount of traffic to our website, our ability to obtain customers and our resulting financial performance will be harmed.

If we are unable to successfully manage growth, our operations could be adversely affected, and our business may fail.

Our ability to manage growth effectively will depend on our ability to improve and expand operations and to recruit operational, financial and administrative personnel. There can be no assurance that management will be able to manage growth effectively.

7


Risks Associated with Our Management

Our executive officers devote only part time efforts to our business which may not be sufficient to successfully develop our business.

The amount of time which our executive officers will devote to our business is limited. Benjamin Cherniak, our president, secretary and treasurer, currently devotes approximately 30% of his working time to our company and David Eyal Davidovits, our Vice President, Business Development, currently devotes approximately 25% of his working time to our company. Further, each has other business interests. While we expect them to increase the percentage of their working time they devote to our company if our operations increase, the amount of time which they devote to our business may not be sufficient to fully develop our business. In addition, there exist potential conflicts of interest including, among other things, time, effort, and corporate opportunity involved with participating in other business entities. We have no agreements with either officer as to how they allocate either their time to our company or how they handle corporate opportunities. As a result, we may be unable to implement our plan and our business might ultimately fail.

The loss of the services of our executive officers would disrupt our operations and interfere with our ability to compete.

We depend upon the continued contributions of our executive officers Benjamin Cherniak and David Eyal Davidovits. They handle all of the responsibilities in the area of corporate administration and business development. We do not carry key person life insurance for them and the loss of their services would likely lead to us being unable to implement our business plan and our business might ultimately fail.

Because our officers and director are not citizens of the United States, you may have no effective recourse against them for misconduct and you may not be able to enforce judgment and civil liabilities against them or our company.

Our officers and director are not citizens of the United States. As a result, it may be difficult for investors to enforce within the United States any judgments obtained against him or our company, including judgments predicated upon the civil liability provisions of the securities laws of the United States or any state thereof.

Risks Associated with Our Common Stock

Because we do not intend to pay any dividends on our common stock, investors seeking dividend income or liquidity should not purchase shares of our common stock in this offering.

We do not currently anticipate declaring and paying dividends to our stockholders in the foreseeable future. It is our current intention to apply net earnings, if any, in the foreseeable future to increasing our working capital. Prospective investors seeking or needing dividend income or liquidity should, therefore, not purchase our common stock. We currently have no revenues and a history of losses, so there can be no assurance that we will ever have sufficient earnings to declare and pay dividends to the holders of shares of our common stock, and in any event, a decision to declare and pay dividends is at the sole discretion of our board of directors, which currently do not intend to pay any dividends on shares of our common stock for the foreseeable future.

Our common stock has never been traded and, if a market ever develops for our common stock, the price of our common stock is likely to be highly volatile and may decline after the offering. If this happens, investors may have difficulty selling their shares and may not be able to sell their shares at all.

There is no public market for our common stock and we cannot assure you that a market will develop or that any stockholder will be able to liquidate his or her investment without considerable delay, if at all. A trading market may not develop in the future, and if one does develop, it may not be sustained. If an active trading market does develop, the market price of our common stock is likely to be highly volatile. The market price of our common stock may also fluctuate significantly in response to the following factors, most of which are beyond our control:

  • variations in our quarterly operating results;

  • changes in market valuations of similar companies;

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  • announcements by us or our competitors of significant new products; and

  • the loss of key management or personnel.

The equity markets have, on occasion, experienced significant price and volume fluctuations that have affected the market prices for many companies’ securities that have been unrelated to the operating performance of these companies. Any such fluctuations may adversely affect the market price of our common stock, regardless of our actual operating performance. As a result, stockholders may be unable to sell their shares, or may be forced to sell them at a loss.

Because we can issue additional shares of our common stock or preferred stock, purchasers of our common stock may experience dilution in their ownership of our company in the future.

We are authorized to issue up to 500,000,000 shares of common stock and 20,000,000 shares of preferred stock. As of May 23, 2012, there were 53,750,100 shares of our common stock issued and outstanding and no shares of our preferred stock issued and outstanding. Our board of directors has the authority to cause our company to issue additional shares of common stock or preferred stock without the consent of any of our stockholders. Consequently, our stockholders may experience dilution in their ownership of our company in the future.

Our stock is a penny stock. Trading of our stock may be restricted by the Securities and Exchange Commission’s penny stock regulations which may limit a stockholder’s ability to buy and sell our stock.

Our stock is a penny stock. The Securities and Exchange Commission has adopted Rule 15g-9 which generally defines a “penny stock” to be any equity security that has a market price (as defined) less than $5.00 per share or an exercise price of less than $5.00 per share, subject to certain exceptions. Our securities are covered by the penny stock rules, which impose additional sales practice requirements on broker-dealers who sell to persons other than established customers and “accredited investors”. The term “accredited investor” refers generally to institutions with assets in excess of $5,000,000 or individuals with a net worth in excess of $1,000,000 or annual income exceeding $200,000 or $300,000 jointly with their spouse. The penny stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise exempt from the rules, to deliver a standardized risk disclosure document in a form prepared by the Securities and Exchange Commission which provides information about penny stocks and the nature and level of risks in the penny stock market. The broker-dealer also must provide the customer with current bid and offer quotations for the penny stock, the compensation of the broker-dealer and its salesperson in the transaction and monthly account statements showing the market value of each penny stock held in the customer’s account. The bid and offer quotations, and the broker-dealer and salesperson compensation information, must be given to the customer orally or in writing prior to effecting the transaction and must be given to the customer in writing before or with the customer’s confirmation. In addition, the penny stock rules require that prior to a transaction in a penny stock not otherwise exempt from these 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 agreement to the transaction. These disclosure requirements may have the effect of reducing the level of trading activity in the secondary market for the stock that is subject to these penny stock rules. Consequently, these penny stock rules may affect the ability of broker-dealers to trade our securities. We believe that the penny stock rules discourage investor interest in and limit the marketability of our common stock.

The Financial Industry Regulatory Authority sales practice requirements may also limit a stockholder’s ability to buy and sell our stock.

In addition to the “penny stock” rules described above, the Financial Industry Regulatory Authority, which we refer to as FINRA, has adopted rules that require that in recommending an investment to a customer, a broker-dealer must have reasonable grounds for believing that the investment is suitable for that customer. Prior to recommending speculative low priced securities to their non-institutional customers, broker-dealers must make reasonable efforts to obtain information about the customer’s financial status, tax status, investment objectives and other information. Under interpretations of these rules, the FINRA believes that there is a high probability that speculative low priced securities will not be suitable for at least some customers. The FINRA requirements make it more difficult for broker-dealers to recommend that their customers buy our common stock, which may limit your ability to buy and sell our common stock and have an adverse effect on the market for shares of our common stock.

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Forward-Looking Statements

This prospectus contains forward-looking statements which relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expect”, “plan”, “anticipate”, “believe”, “estimate”, “predict”, “potential” or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks in the section entitled “Risk Factors,” beginning on page 5 of this prospectus, that may cause our company’s or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.

While these forward-looking statements and any assumptions upon which they are based are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein. Except as required by applicable law, including the securities laws of the United States and Canada, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

Use of Proceeds

We will not receive any proceeds from the sale of the shares of our common stock by the selling stockholders. All expenses for the prospectus and related registration statement including legal, accounting, printing and mailing fees are and will be borne by us. Any commissions, discounts or other fees payable to brokers or dealers in connection with any sale of the shares of our common stock will be borne by the selling stockholders, the purchasers participating in such transactions, or both.

Determination of Offering Price

The selling stockholders may sell all or a portion of the shares being offered pursuant to this prospectus at prevailing market prices or privately negotiated prices. Our common stock is now quoted on the OTC Bulletin Board under the symbol “ONDR”. As of May 23, 2012, there have been no trades of our common shares on the OTC Bulletin Board.

Dilution

The shares being offered pursuant to this prospectus are currently issued and outstanding. Accordingly, there will be no dilution to our existing stockholders.

Selling Stockholders

The selling stockholders may offer and sell, from time to time, any or all of the shares of our common stock issued to them. Because the selling stockholders may offer all or only some portion of the 200,100 shares of common stock being offered pursuant to this prospectus, the numbers in the table below representing the amount and percentage of these shares of our common stock that will be held by the selling stockholders upon termination of the offering are only estimates based on the assumption that each selling stockholder will sell all of his or her shares of our common stock being offered in the offering.

The following table sets forth certain information regarding the beneficial ownership of shares of our common stock by the selling stockholders as of May 23, 2012 and the number of shares of our common stock being offered pursuant to this prospectus. We believe that the selling stockholders have sole voting and investment powers over their shares.

Other than the relationships described below, none of the selling stockholders has had any position or office, or other material relationship with our company or any of our affiliates within the past three years. Robbie Manis served as our sole officer and director from November 16, 2009 to August 4, 2010.

To our knowledge, none of the selling stockholders is a broker-dealer or an affiliate of a broker-dealer.

We may require the selling stockholders to suspend the sales of the shares of our common stock being offered pursuant to this prospectus upon the occurrence of any event that makes any statement in this prospectus or the related registration statement untrue in any material respect or that requires the changing of statements in those documents in order to make statements in those documents not misleading.

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Name of Selling
Stockholder





Shares Owned
By the Selling
Stockholder
Before the
Offering(1)


Total Shares
Offered in the
Offering



Number of Shares To Be Owned
by Selling Stockholder After the
Offering and Percent of Total
Issued and Outstanding Shares(1)


# of
Shares(2)


% of
Class(2),(3)
Robbie Manis 950,100 200,100 750,000 1.4%
Totals 950,100 200,100 750,000 1.8%

  Notes  
(1)

Beneficial ownership is determined in accordance with Securities and Exchange Commission rules and generally includes voting or investment power with respect to shares of our common stock. Shares of our common stock subject to options, warrants and convertible preferred stock currently exercisable or convertible, or exercisable or convertible within 60 days, are counted as outstanding for computing the percentage of the person holding such options or warrants but are not counted as outstanding for computing the percentage of any other person.

  (2)

We have assumed that the selling stockholders will sell all of the shares being offered in this offering.

  (3)

Based on 53,750,100 shares of our common stock issued and outstanding as of May 23, 2012.

Plan of Distribution

Our common stock is currently quoted on the OTC Bulletin Board under the symbol “ONDR”. As of May 23, 2012, there have been no trades of our common stock through the OTC Bulletin Board. We cannot give any assurance that the shares offered will have a market value, or that they can be resold at the offered price if and when an active secondary market might develop, or that a public market for our securities may not be sustained even if developed.

The selling stockholders may, from time to time, sell all or a portion of the shares of our common stock on any market upon which our common stock may be quoted or listed, in privately negotiated transactions or otherwise. Because our common shares are quoted on the OTC Bulletin Board, the selling stockholders may sell all or a portion of the shares being offered pursuant to this prospectus at prevailing market prices or privately negotiated prices. The shares of our common stock being offered for resale pursuant to this prospectus may be sold by the selling stockholders by one or more of the following methods, without limitation:

  1.

block trades in which the broker or dealer so engaged will attempt to sell the shares of our common stock as agent but may position and resell a portion of the block as principal to facilitate the transaction;

     
  2.

purchases by broker or dealer as principal and resale by the broker or dealer for its account pursuant to this prospectus;

     
  3.

an exchange distribution in accordance with the rules of the exchange or quotation system;

     
  4.

ordinary brokerage transactions and transactions in which the broker solicits purchasers;

     
  5.

privately negotiated transactions;

     
  6.

market sales (both long and short to the extent permitted under the federal securities laws);

     
  7.

at the market to or through market makers or into an existing market for the shares;

     
  8.

through transactions in options, swaps or other derivatives (whether exchange listed or otherwise); and

     
  9.

a combination of any aforementioned methods of sale.

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In the event of the transfer by any of the selling stockholders of his or her shares of our common stock to any pledgee, donee or other transferee, we intend to amend this prospectus and the registration statement of which this prospectus forms a part by the filing of a post-effective amendment in order to have the pledgee, donee or other transferee in place of the selling stockholder who has transferred his or her shares.

In effecting sales, brokers and dealers engaged by the selling stockholders may arrange for other brokers or dealers to participate. Brokers or dealers may receive commissions or discounts from a selling stockholder or, if any of the broker-dealers act as an agent for the purchaser of such shares, from a purchaser in amounts to be negotiated which are not expected to exceed those customary in the types of transactions involved. Broker-dealers may agree with a selling stockholder to sell a specified number of the shares of our common stock at a stipulated price per share. Such an agreement may also require the broker-dealer to purchase as principal any unsold shares of our common stock at the price required to fulfill the broker-dealer commitment to the selling stockholder if such broker-dealer is unable to sell the shares on behalf of the selling stockholder. Broker-dealers who acquire shares of our common stock as principal may thereafter resell the shares of our common stock from time to time in transactions which may involve block transactions and sales to and through other broker-dealers, including transactions of the nature described above. Such sales by a broker-dealer could be at prices and on terms then prevailing at the time of sale, at prices related to the then-current market price or in negotiated transactions. In connection with such resale, the broker-dealer may pay to or receive from the purchasers of the shares commissions as described above.

The selling stockholders and any broker-dealers or agents that participate with the selling stockholders in the sale of the shares of our common stock may be deemed to be “underwriters” within the meaning of the Securities Act of 1933 in connection with these sales. In that event, any commissions received by the broker-dealers or agents and any profit on the resale of the shares of common stock purchased by them may be deemed to be underwriting commissions or discounts under the Securities Act of 1933.

From time to time, any of the selling stockholders may pledge shares of our common stock pursuant to the margin provisions of customer agreements with brokers. Upon a default by a selling stockholder, his or her broker may offer and sell the pledged shares of our common stock from time to time. Upon a sale of the shares of our common stock, we believe that the selling stockholders will comply with the prospectus delivery requirements under the Securities Act of 1933 by delivering a prospectus to each purchaser in the transaction. We intend to file any amendments or other necessary documents in compliance with the Securities Act of 1933 which may be required in the event any of the selling stockholders defaults under any customer agreement with brokers.

To the extent required under the Securities Act of 1933, a post effective amendment to the registration statement of which this prospectus forms a part will be filed disclosing the name of any broker-dealers, the number of shares of our common stock involved, the price at which our common stock is to be sold, the commissions paid or discounts or concessions allowed to such broker-dealers, where applicable, that such broker-dealers did not conduct any investigation to verify the information set out or incorporated by reference in this prospectus and other facts material to the transaction. In addition, a post effective amendment to the registration statement of which this prospectus forms a part will be filed to include any additional or changed material information with respect to the plan of distribution not previously disclosed herein.

We and the selling stockholders will be subject to applicable provisions of the Securities Exchange Act of 1934 and the rules and regulations under it, including, without limitation, Rule 10b-5 and, insofar as a selling stockholder is a distribution participant and we, under certain circumstances, may be a distribution participant, under Regulation M under the Securities Exchange Act of 1934.

The anti-manipulation provisions of Regulation M will apply to purchases and sales of shares of our common stock by the selling stockholders, and there are restrictions on market-making activities by persons engaged in the distribution of the shares. Under Regulation M, a selling stockholder or its agents may not bid for, purchase, or attempt to induce any person to bid for or purchase, shares of our common stock while they are distributing shares being offered pursuant to this prospectus. Accordingly, the selling stockholder is not permitted to cover short sales by purchasing shares while the distribution is taking place. We will advise the selling stockholders that if a particular offer of our common stock is to be made on terms materially different from the information set forth in this “Plan of Distribution”, then a post effective amendment to the registration statement of which this prospectus forms a part must be filed with the Securities and Exchange Commission. All of the foregoing may affect the marketability of our common stock.

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All expenses for the prospectus and related registration statement including legal, accounting, printing and mailing fees are and will be borne by us. Any commissions, discounts or other fees payable to brokers or dealers in connection with any sale of the shares of our common stock will be borne by the selling shareholders the purchasers participating in such transaction, or both.

Any shares of our common stock being offered pursuant to this prospectus which qualify for sale pursuant to Rule 144 under the Securities Act of 1933, may be sold under Rule 144 rather than pursuant to this prospectus.

Description of Securities

General

We are authorized to issue 500,000,000 shares of common stock with a par value of $0.001 per share and 20,000,000 shares of preferred stock with a par value of $0.001 per share. As of May 23, 2012, there were 53,750,100 shares of our common stock outstanding and no shares of preferred stock outstanding.

Capital Stock

The aggregate number of shares that we have authority to issue is Five Hundred and Twenty Million (520,000,000), of which Five Hundred Million (500,000,000) shares will be common stock, with a par value of $0.001 per share (“Common Stock”), and Twenty Million (20,000,000) shares will be preferred stock, with a par value of $0.001 per share (“Preferred Stock”).

The Preferred Stock may be divided into and issued in series. Our board of directors (the “Board”) is authorized to divide the authorized shares of Preferred Stock into one or more series, each of which shall be so designated as to distinguish the shares thereof from the shares of all other series and classes. The Board is authorized, within any limitations prescribed by law and our articles, to fix and determine the designations, rights, qualifications, preferences, limitations and terms of the shares of any series of Preferred Stock including but not limited to the following.

  (a)

The rate of dividend, the time of payment of dividends, whether dividends are cumulative, and the date from which any dividends shall accrue;

     
  (b)

Whether shares may be redeemed, and if so, the redemption price and the terms and conditions of such redemption;

     
  (c)

The amount payable upon shares in the event of voluntary or involuntary liquidation;

     
  (d)

Sinking fund or other provisions, if any, for the redemption or purchase of shares;

     
  (e)

The terms and conditions on which shares may be converted, if the shares of any series are issued with the privilege of conversion;

     
  (f)

Voting powers, if any, provided that if any of the Preferred Stock or series thereof shall have voting rights, such Preferred Stock or series shall vote only on a share for share basis with the Common Stock on any matter, including but not limited to the election of directors, for which such Preferred Stock or series has such rights; and

     
  (g)

Subject to the foregoing, such other terms, qualifications, privileges, limitations, options, restrictions, and special or relative rights and preferences, if any, of shares or such series as the Board of the Corporation may, at the time so acting, lawfully fix and determine under the laws of the State of Nevada.

We cannot declare, pay or set apart for payment any dividend or other distribution (unless payable solely in shares of Common Stock or other class of stock junior to the Preferred Stock as to dividends or upon liquidation) in respect of Common Stock, or other class of stock junior to the Preferred Stock, nor shall we redeem, purchase or otherwise acquire for consideration shares of any of the foregoing, unless dividends, if any, payable to holders of Preferred Stock for the current period (and in the case of cumulative dividends, if any, payable to holders of Preferred Stock for the current period and in the case of cumulative dividends, if any, for all past periods) have been paid, are being paid or have been set aside for payment, in accordance with the terms of the Preferred Stock, as fixed by the Board.

13


In the event of our liquidation, holders of Preferred Stock shall be entitled to receive, before any payment or distribution on the Common Stock or any other class of stock junior to the Preferred Stock upon liquidation, a distribution per share in the amount of the liquidation preference, if any, fixed or determined in accordance with the terms of such Preferred Stock plus, if so provided in such terms, an amount per share equal to accumulated and unpaid dividends in respect of such Preferred Stock (whether or not earned or declared) to the date of such distribution. Neither the sale, lease or exchange of all or substantially all of our property and assets, nor any consolidation or merger, shall be deemed to be a liquidation.

Transfer Agent

There are currently 31 holders of record of our common stock. Our transfer agent is Nevada Agency and Transfer Company with an office at 50 West Liberty Street, Suite 880, Reno NV 89501.

Warrants

There are no outstanding warrants to purchase our securities. We may, however, issue warrants to purchase our securities in the future.

Options

There are no outstanding options to purchase our securities. We may, however, grant such options and/or establish an incentive stock option plan for our directors, executive officers, employees and consultants in the future.

Convertible Securities

There are no outstanding securities convertible into shares of our common stock or rights convertible or exchangeable into shares of our common stock. We may, however, issue such convertible or exchangeable securities in the future.

Change in Control

There are no provisions in our certificate of incorporation or bylaws that would delay, defer or prevent a change in control of our company and that would operate only with respect to an extraordinary corporate transaction involving our company or subsidiary, such as merger, reorganization, tender offer, sale or transfer of substantially all of our assets, or liquidation.

Interest of Named Experts and Counsel

The financial statements of our company included in this prospectus have been audited by MNP LLP and Chang Lee LLP to the extent and for the period set forth in their report appearing elsewhere in the prospectus, and are included in reliance upon such report given upon the authority of said firm as experts in auditing and accounting.

Clark Wilson LLP, of Suite 800 – 885 West Georgia Street, Vancouver, British Columbia, Canada has provided an opinion on the validity of the shares of our common stock being offered pursuant to this prospectus.

No expert named in the registration statement of which this prospectus forms a part as having prepared or certified any part thereof (or is named as having prepared or certified a report or valuation for use in connection with such registration statement) or counsel named in this prospectus as having given an opinion upon the validity of the securities being offered pursuant to this prospectus or upon other legal matters in connection with the registration or offering such securities was employed for such purpose on a contingency basis. Also at the time of such preparation, certification or opinion or at any time thereafter, through the date of effectiveness of such registration statement or that part of such registration statement to which such preparation, certification or opinion relates, no such person had, or is to receive, in connection with the offering, a substantial interest, direct or indirect, in our company or any of its parents or subsidiaries. Nor was any such person connected with our company or any of its parents or subsidiaries as a promoter, managing or principal underwriter, voting trustee, director, officer or employee.

14


Information with respect to Our Company

Description of Business

Corporate History

We were incorporated in the State of Nevada on November 16, 2009 under the name “Online Disruptive Technologies, Inc.” with authorized capital of 500,000,000 shares of common stock with a par value of $0.001 per share and 20,000,000 shares of preferred stock with a par value of $0.001 per share. On March 24, 2010, we entered into a share purchase agreement with Benjamin Cherniak, whereby we acquired all of the issued and outstanding shares of Relationshipscoreboard.com Entertainment, Inc. in consideration for the issuance of 16,000,000 of our common shares. RSE was incorporated in the State of Nevada on November 16, 2009. There were no related party interest in the acquisition of Relationshipscoreboard.com Entertainment, Inc.

Our Business

Mineral Property Option Agreement

Effective November 21, 2011, we entered into a mineral property acquisition agreement (the “Agreement”) with Minera Del Pacifico, S.A. (“Minera”), whereby Minera agreed to sell us a 100% interest to exploit and commercialize the Muluncay concession (the “Property”) for a period of twenty years in exchange for 10,000,000 shares of our common stock. The Property covers an area of 374 hectares and is in the centre of the Portovelo-Zaruma mining camp, which is found in the cantons of Ayapamba and Paccha, Province of El Oro, southern Ecuador. Closing of the Agreement will occur three business days after we deliver notice to Minera of our intention to close. We have terminated the Agreement and will not be proceeding with the acquisition of the Property.

Overview of Website

Our business plan for our website is based solely on Mr. Cherniak’s experience, as described in the section “Business Experience”.

We are a start-up development stage company. We own the domain name “RelationshipScoreboard.com” and have recently launched the first version of our flagship social networking website: RelationshipScoreboard.com (“RS.com”). The premise behind RS.com is that we as human beings are curious about relationships and their inner workings. Everyone wants to know what defines a good relationship, what elements make a relationship work, and how much each partner should invest and contribute into the relationship in order to make it function on a balanced basis. We believe this website will provide objective perspectives on what people value most in a relationship and it will help people ease their concerns about their own interactions.

To learn about celebrity relationships, we read gossip magazines such as US Weekly, Star, and The Enquirer. We peruse gossip websites such as TMZ.com and perezhilton.com and we watch shows like Entertainment Tonight to delve into the lives of others. We want to know who is dating who, who is getting married, who is cheating, who is breaking up and who is getting divorced. We debate amongst ourselves whether we think a specific couple is a good fit for one another, and how long we think the relationship will last. This curiosity applies not only to celebrity relationships but within our own social networks as well.

Social networking websites are designed to keep people connected and essentially to build an online community. We believe that RS.com will serve as an interactive website where people can socialize, share relationship advice and score others’ relationships based on a series of questionnaires. While the evaluation of others and their interpersonal relationships tends to be a serious topic of discussion, the purpose of this website is to add a comedic or anecdotal edge to the relationship subject matter. We believe that the entertainment value of rating relationships of others will keep people coming back for more and therefore continually enhance the traffic of the website.

While people are prone to subjectively judging the relationships of others, the unique feature of RS.com is that we anticipate that it will provide a series of mathematical algorithms to provide for much more scientific means of achieving a relationship score. Using its array of formulas and algorithms, RS.com will allow its users to (a) evaluate whether a given relationship is functional or not; (b) determine which partner is “winning” the relationship battle (the definition of “winning’ being getting more out of the relationship than the other party); (c) guesstimate how long the relationship will last; and (d) consider with whom the relationship partners would be better off aligning themselves. Users will have the ability to answer a series of questions regarding any specific relationship, which will in turn help “score” the relationship. The scoring options will include friends’ relationships, relationships of strangers, and celebrity relationships as well, depending on which sections of the website they choose to enter. With such a broad base of social media users, the opportunity to attract people to the website will be within arm’s reach. We believe that RS.com’s unique attributes will allow it to succeed in attracting attention and traffic amongst the vast array of social networking websites.

15


Components of Website

There will be several components to the website and the interface will include the following:

  1.

The Scoreboard

  2.

The Advice Corner

  3.

Editorials

  4.

The Online Store

  5.

The Forum

All of the components of the website will be accessible from our homepage: www.relationshipscoreboard.com. We anticipate directing all our users to one URL, through which the users can access all of the components of the website.

We have launched a basic version of our website, which includes the scoreboard. We anticipate that during the course of the 2012 year, we will expand the website to include the remaining components of the website. We anticipate that in the latter half of fiscal 2012, we will begin the integration of our website with other social media websites.

The Scoreboard

The scoreboard section will contain several mathematic questionnaires designed to assess existing relationships. Visitors can score relationships that have already been nominated for assessment or they can propose a new relationship for prospective analysis. A search tool will allow for users to scan the site by last name to see if the couple has already been nominated. The nominated relationships will be segregated by the geographic region (country state/province, city) in which the subjects of the relationship reside. Users must adhere to the following steps in order to nominate a relationship:

A. Step 1

The first step in the process would be to sign up and become a member of the site. Only a small amount of detail will be required during the registration process. This will include: name, site nickname or alias, avatar image, age, email address, username and password, how they found the site, and lastly if they would like to receive site updates and upcoming event information in the future (opt-in settings).

B. Step 2

The second step will require the nominator to input the names of the people in the relationship to be evaluated. They must first designate the country, state and city where the subject couple resides. The nominator should provide background information about the couple and describe the context of the relationship in question. They can post all of this with either their own name, with their site nickname or anonymously. There will also be an option to upload a picture of the couple who is being nominated. They will then be prompted to classify the type of relationship being evaluated as this will dictate the specific questionnaire to be used for the evaluation process. In the future, once the site is fully established, nominators may have the ability to modify or enhance the questions that will appear in the scoreboard; however, in the first version the questionnaires will be predetermined. Although in certain circumstances RS.com may create conflict or strain between family, friends, and the two individuals in the relationship, the goal is to have fun and keep everyone entertained.

Moreover, users can choose to nominate their own relationship, and they will be able to answer the questionnaire themselves before sending off the request to friends and family. This will provide insight for others to see how the nominee views their own relationship. They can also choose to score it anonymously.

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As an added entertainment publicity stunt, users may choose to nominate a celebrity couple for scoring. We anticipate that RS.com will participate by nominating our own celebrity couples, and will also nominate a couple of the week in order to draw attention to this feature. We anticipated that the celebrity section will be a popular destination for site users. The celebrity relationships area will be updated frequently with new celebrity relationships, and postings of celebrity relationship gossip. It is our hope that once RS.com reaches critical mass, a partnership with a site like TMZ.com can become reality. We believe that this will ultimately help increase traffic at RS.com. When a TMZ.com visitor sees an update or gossip on a celebrity's relationship, that user will have the ability to “score” that relationship by going to TMZ.com's partner site, RS.com. Conversely, RS.com will have a link to TMZ.com. To date, we have not started any discussions with any website to partner with.

C. Step 3

The third step in the process will allow the nominator to share the questionnaire with his or her friends, or to publish the couple publicly so that anyone can score the relationship. The nominator will see a popup screen asking “what friends would you like to share this scoreboard with?” There will be two possible ways of selecting friends. The first option will allow the nominator to fill in email addresses into a pop up screen, with a personalized message indicating who the friends will be scoring etc. A link will be provided in the email sent out directing the friends to the scoreboard page. In order for the friends to fill out the scoreboard, registration will not be required, and each friend will have the option of scoring and posting anonymously or with the use of their own name. RS.com understands that inputting individual email addresses into a popup menu can be tedious and time consuming. One of the benefits of being a member of the website will be to have a personal friend list. This list, where each user will be able to add their other registered RS.com friends, will be present when sending out the scoring invitation. Only a check mark will be required next to each friend with whom the nominator chooses to share the questionnaire. Another option which would be extremely efficient will be to create a “Facebook application” which will provide each registered RS.com user with the ability to login to his or her Facebook account and access their list of Facebook friends. This will benefit the user due to ease of use, but will be equally beneficial to RS.com since having a Facebook application will help to enhance its validity and site appeal.

If the nominator wishes to publicize this relationship entry without restriction, no selection of friends is necessary. Both members and non-members will be able to access and score the couple’s relationship without invitation in this case. With an unbiased audience owing no loyalty to either party, scoring their relationship should provide a fairly accurate outsider’s perspective. Although friends may know the couple better than complete strangers, friends may also be very hesitant to express their true feelings.

At the bottom of every private and public score sheet, each scorer will have the option of adding a comment. These comments will not be part of the actual posting section and therefore will not require the scorer to be a member in order to fill it out. Furthermore these comments will not affect the total score.

As detailed below, each nominated relationship is scored in a number of different ways based on respective sets of approximately 20 weighted questions. The responses to each question are then weighted depending on the relative importance of the subject matter of the particular question. Ultimately, the sum of the individually weighted scores will produce the aggregate score as calculated by the visiting reviewer. A detailed explanation of how the points are calculated will be provided to each user. Of course, there are different types of relationships and as such there will be different relationship categories to choose from. The questions will vary depending on the relationship type designated. Initially, all relationships will fall into one of four categories as outlined below:

  1.

Dating or married (with kids)

     
  2.

Dating or married and living together (without kids)

     
  3.

Adult Dating – living separately

     
  4.

High School dating

Additional categories can be introduced based on demand as the site grows in popularity. It is recognized that the relationship scoring criteria that are important for a couple in high school are materially different from those that would concern a married couple. As an example, a relevant question for a married couple might be whether or not both parties share a similar view towards having children and building a family. For most high school students, building a family is not yet on the radar screen. A more relevant question for someone in high school might be whether both parties are equally popular or physically attractive. While the questions in each category are adjusted according to the nature of the relationship, the end result is the same in that for any category, three unique score results are generated as follows:

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  1.

An aggregate score out of 100 with 0 being a completely dysfunctional relationship and 100 being a perfectly harmonious relationship. Based on the final score of any score sheet, RS.com will automatically generate an appropriately succinct summary of the relationship. Examples would be as follows:

     
 

Score of 80-100: This is clearly the love of a lifetime.

     
 

Score of 60-79: The relationship is working. Congratulations.

     
 

Score of 40-59: This relationship is on the Watch List with negative implications.

     
 

Score of 20-39: Better call the lawyers and begin dividing the assets.

     
 

Score of 19 or less: Do whatever you have to but try not to kill each other.

     
  2.

A separate score for each of the two partners to determine which partner is winning in the relationship and which is losing. While we do not generally tend to associate relationships with the concept of winning or losing, it is clear that from time to time one partner is benefiting more from the relationship while the other is getting the short end of the stick. In a culture that embraces winners, RS.com will mathematically designate the partner of the subject relationship that has seized greater benefit from the relationship, often at the expense of the other partner. The ideal relationship will have a balanced scored of 50 points for each partner, while a score where the two partners are close to the extremes of 0 or 100 implies that one of the two partners is winning the relationship hands down. Again, RS.com will generate an appropriate saying based on the results. Examples in respect of a particular partner’s score would be as follows:

     
 

Score of 80-100: Get the referee to stop this beating.

     
 

Score of 60-79: Congratulations, we have a winner.

     
 

Score of 40-59: Don’t look now but we are in the range of relationship bliss.

     
 

Score of 20-39: Better dust off the number for your divorce lawyer.

     
 

Score of 19 or less: Ouch. Remember that suicide is not an option.

     
  3.

A final scoring system will be used to determine how much longer the scorer perceives that the given relationship will last. The scorer will have the option of either inputting an amount of time up to 100 years or following the lead of a previous scorer who has established a baseline prediction that subsequent scorers must simply guess whether the relationship duration will be over or under the designated baseline. This is analogous to the concept of the “over/under” betting proposition in sports where the bettor guesstimates whether the combined score of the two teams will exceed or fall short of the designated “over/under” baseline. Similar to the other scores, an appropriate saying will be generated based on the overall score. Examples for high school dating might be as follows:

     
 

0-2 weeks: If you don’t have free texting, break up now, it’s not worth it!

     
 

2-4 weeks: Clearly your peers do not think very much of your “serious” relationship...

     
 

1-6 months: a few months... a few years... what’s the difference?

     
 

6-12 months: as long as you two weren’t planning on getting married, you guys seem to be doing alright.

     
 

1-2 years: Congratulations, you’re officially in a real relationship!

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Note that a multitude of “sayings” will be generated randomly on every score sheet. This will decrease the probability of users encountering the same results.

As an added bonus, after scoring the relationship, users will have the option to make suggestions on who they believe would be a better match for the nominees. They can even choose to upload a picture of the person they have proposed for hooking up. We anticipate that this will be a fun attention-grabber that will help generate more traffic to the site.

Additional Features of the Scoreboard:

1. Video Questionnaire

When initially nominating a relationship for review, the nominator will have the option of posting a video clip answering relationship questions created by RS.com. Once both members in the relationship are at the computer with the webcam on, they will be able to prompt the RS.com video questionnaire. Once initiated, a live screen will open and they will be able to record their video. The first question will appear on the bottom of the screen and they will be prompted to answer each question in under a minute. Once they have finished answering each question, they can click on the button “Next Question” which will be present below the screen. If the minute for any individual question is up, the prompter will automatically ask the next question. If some questions are too personal, the couple can choose to click on next question, which will help to avoid any embarrassment. This approach is more personal giving the friends and public a chance to see the couple interact with each other, and formulate their own opinions. Obviously it is preferred for the actual couple to use this feature, however even if the nominator is not one of the individuals in the featured relationship, that individual will still have the option of going through with the video questionnaire.

2. Comment Section

In any nominated relationship, whether accessible by the public at large or simply the subset community authorized, there will be an option for members to post comments at the bottom of the page. Comments can be posted on a public or anonymous basis. Only members will be able to post in this section (although they can post anonymously), adding additional incentive to sign up on RS.com.

Advice Corner

In the advice corner, similar to “Dear Abby,” users will be able to write to an advice columnist who will be online daily to respond to all relationship queries. The advice columnist will respond to the five most interesting questions of the day, and can also do weekly “chat sessions” with live questions and answers. We believe that this will be a popular feature since it will give the users a chance to get feedback on their important relationship questions. Although the website is light and fun, this can be an area where people are free to ask serious questions and get real advice from a professional, albeit one with a sense of humor. We believe that it will help add a sense of authenticity and legitimacy to RS.com. Initially the principals of RSE will serve as the expert dispensers of advice. In time, with the projected growth in traffic, we anticipate that we will engage celebrities to serve as the advice givers on a rotating basis.

Editorials

We anticipate that RS.com will be a destination for those seeking compelling articles related to dating, relationships, marriage advice, and other related topics. We anticipate that there will be both featured and guest editorial writers who wish to expand their following by providing free content as well as subscription-based content to our user base. This can be helpful for users who are hesitant or wary of posting their own questions at the advice corner. The guidance will be readily available to them through these postings and articles.

Online Store

At the online store, we anticipate that users will have the option of purchasing RS.com merchandise. Items will include funny t-shirts, mugs, key chains, and hats etc. with scoreboard ‘final results’ phrases such as: “My relationship has been scored and...we are meant for each other”, “Apparently it’s over next week”, “My friends are so kind....” All of the merchandise will be tagged with the website name ‘RelationshipScoreboard.com’. A “staff favorites” area of the store will be created where RS.com staff can give some suggestions as to what the customers should purchase. Other products may include flower bouquets (when the relationship is having problems), boxes of chocolates, lingerie, seductive music, candles, romance novels, Valentine’s Day gifts, restaurant coupons, wine, weekend getaway specials and babysitter services.

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We anticipate that initially we will keep minimal inventory for our store and such inventory will be kept in our office. We do not anticipate using any sophisticated procurement. We anticipate that we will rely on third party suppliers to procure our merchandise. Sales at our online store are anticipated to be minimal until we obtain significant brand recognition.

Forum

Once traffic reaches a significant level, we anticipate that a forum will be introduced where members can select relationship driven topics and discuss with one another on an ongoing basis in an open forum. The forum would be moderated to ensure that all posts are appropriate.

Target Market

Social networking is defined as the interaction between a group of people who share a common interest. Social networking can be found in the workplace, churches, schools, etc. Over the last decade, the popularity of the Internet has led to the emergence of online social networking websites and an explosion in growth thereof. Traditional social networking websites are those that cater to the masses as opposed to specialized groups.

The primary target market for RS.com will be users between the ages of 13 and 45 due to the nature of the website. Given the partial focus on marital relationships, we believe that RS.com will garner reasonable attention from individuals in their thirties and forties. We believe that RS.com has similar characteristics to sites like Facebook and MySpace in that it keeps people connected and promotes social interaction; however, relationship scoring is an activity that we believe will hold particular appeal for high school, college, or university students. Teens and young adults are at the age when first relationships are becoming an important part of their lives and a significant topic of discussion, and we believe that they will be seeking approval from friends and family about their new love interests. We anticipate that RS.com will be yet another destination that will allow them to stay in touch with friends and share their ideas and opinions on these developing relationships. We anticipate that RS.com will be an online channel where they can feel free to express themselves without embarrassment or judgment. This website will provide an outlet to openly discuss the details of anything and everything related to the central ‘relationship health’ theme.

While the primary marketing efforts will be geared towards teens and young adults, we believe that there is significant potential to reach users between the ages of 25 and 55. We believe that adults are becoming more tech-savvy; learning to adapt to the modern forms of communication and social interaction, and they are seeking to reconnect with old friends and family. We believe that RS.com has the opportunity to help them do just that, in a fun and creative way.

Marketing Strategy

Marketing RS.com to the primary and secondary target markets will be executed through four distinct means:

Other Social Networking Websites

We anticipate that marketing to networks via Facebook, MySpace and Twitter will initially lead the way in bringing new users to the site and later, sites such as Bebo, Friendster, and similar websites can be used as valuable tools that will help market the website free of charge. Communities worldwide will have easy access to RS.com with the push of a button, and this type of exposure will help create a buzz.

Search Engine Optimization

Search Engine optimization is defined as the process of increasing traffic to a website via search engines, such as Google and Yahoo. The higher up in the search results list, the more people will ‘click through’ to visit the website. We anticipate that RS.com will update editorial content regularly and will target the content to specific keywords so as to maximize visibility with the search engines. We believe that this will, in turn, maximize its ranking and bring the maximum amount of visitors possible to the site.

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Banner Exchange

Via partnerships with select synergistic companies and websites, banner exchanges will be contemplated so as to drive traffic back and forth from the two sites, thus allowing both parties to benefit from the other’s user base. Dating websites will be ideally suited to banner exchange partnerships.

Media

We anticipate that RS.com will leverage its relationships with members of online, print, television, and radio media to generate as much exposure as possible upon the launch of the website. While RS.com has yet to formalize any such plans, its principal Benjamin Cherniak enjoys strong relationships with relevant media concerns and will commence serious discussions once the RS.com website is at a more advanced stage of development.

Competition

RS.com will be one of many social networking websites that is easily accessible to its target audience. The major players, as previously mentioned, are Facebook, My Space, and Twitter to name a few. Although these sites are similar in nature because they allow people to connect and interact on many levels, RS.com differs since, to our knowledge, its major themes are unmatched anywhere else. The commonalities between each of these social networking sites are obvious; however, we believe that RS.com will stand out due to its specific focus on relationships and the ability to apply mathematics to achieve an overall score from a relationship. The creation of this website is not expected to re-direct the four hundred million plus users away from these other sites, but rather to enhance their experience on the web by adding entertainment value and variety. We believe that these sites will be able to cross promote to the same targeted groups, and therefore increase all-around exposure.

Revenue Model

In order for RS.com to be profitable, several measures will be taken to generate revenues:

Contextual Advertising (Google)

We anticipate that RS.com will subscribe to Google’s Ad Sense. Once subscribed, Google will automatically deliver ads on RS.com that are targeted to our visitors. Each time an ad is clicked, a percentage of the funds paid to Google for that click will go to RS.com.

Banners

We anticipate that RS.com will target select corporations to pay upfront dollars for advertisement banners. Fees and rates will vary depending on the page, placement, and size of the advertisement on the website. Premium fees will be charged for the homepage while lesser fees will be charged for run of schedule advertisements that will continuously rotate throughout the website. Ideal advertisers will include dating websites, marriage counselors, and divorce lawyers. As soon as sufficient traffic has been realized, overtures will be made to potential banner advertisers. RS.com is contemplating selling a large sponsorship ad-spot based on an existing relationship with the owner of a prominent dating site. Although we anticipate that RS.com will most likely sell the advertisement for less dollars than it will be worth overall during the course of a full year cycle, we want to have an anchor sponsorship when we go live.

Affiliate Marketing

In addition to upfront dollars for banners, RS.com may choose to pursue affiliate deals so as to participate in ongoing revenues for the entire life cycle of clients that are introduced to its advertising partners. While this does not provide for committed up-front revenue to RS.com, we believe it allows RS.com to achieve a long-term revenue stream from the affiliate partner based on (a) the lifetime value of the customer referred by RS.com to the partner; and (b) the ability of RS.com to continually refer incremental customers to the partner site. Partners that offer interesting revenue-sharing affiliate deals include the likes of Match.com, AshleyMadison.com, AdultFriendFinder.com and Lavalife.com.

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RS.com Online Store

We plan that sales at RS.com’s online store will be minimal until we have obtained brand recognition. However, we anticipate that as traffic to our site increases, our sales through our store will increase.

Subscription Revenues

In due course, it is anticipated that subscription dollars can be earned by offering relationship advice and other exclusive content geared to individuals who wish to improve the quality of their relationships.

Governmental Regulations

Within the United States and Canada, the legal landscape for Internet privacy is new and rapidly evolving. Collectors and users of customer information over the Internet face potential liability for public disclosure of private information. Due to the increasing popularity and use of the Internet, it is likely that a growing number of laws and regulations will be adopted at the international, federal, state, local, and foreign levels relating to the Internet covering issues such as user privacy, pricing, content, copyrights, distribution, antitrust and characteristics and quality of services. Furthermore, if more stringent customer protection laws are imposed, additional burdens will be placed on those companies conducting business online. Moreover, the applicability to the Internet of existing laws in various jurisdictions governing issues such as property ownership, sales and other taxes, libel and personal privacy is uncertain and may take years to resolve. Any such new legislation or regulation, the application of laws and regulations from jurisdictions whose laws do not currently apply to our business or the application of existing laws and regulations to the Internet could harm our business.

Employees

As of the date hereof, our company does not have any employees other than Benjamin Cherniak.

Research and Development Expenditures

We have not incurred any research or development expenditures since our incorporation.

Domain Name

We own the domain name realtionshipscoreboard.com. RSE purchased the domain name for a period of 3 years at a cost of $20. The domain name is renewable at any time.

Patents and Trademarks

We do not own any patents or trademarks.

Description of Property

Principal Offices

Our principal offices are located at 3120 S. Durango Dr. Suite 305, Las Vegas, Nevada 89117. We are presently benefitting from free rental space until such time as our operations ramp up. Once we attain the necessary funding and increase our employee base, we will look for more spacious facilities to meet our growing needs.

Legal Proceedings

We know of no material pending legal proceedings to which our company or our subsidiary is a party or of which any of our properties, or the properties of our subsidiary, is the subject. In addition, we do not know of any such proceedings contemplated by any governmental authorities.

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We know of no material proceedings in which any of our directors, officers or affiliates, or any registered or beneficial stockholder is a party adverse to our company or our subsidiary or has a material interest adverse to our company or our subsidiary.

Market Price of and Dividends on Our Common Equity
and Related Stockholder Matters

Market for Securities

Our common shares are quoted on the OTC Bulletin Board under the symbol “ONDR”. As of May 23, 2012, there have not been any trades of our common stock through the OTC Bulletin Board. We do not have any common stock subject to outstanding options or warrants and there are no securities outstanding that are convertible into our common stock. None of our issued and outstanding common stock is eligible for sale pursuant to Rule 144 under the Securities Act of 1933.

We have issued 53,750,100 shares of our common stock since our inception on November 16, 2009, 45,750,000 of which are restricted shares. There are no outstanding options or warrants or securities that are convertible into common shares.

Holders of Our Common Stock

As of the date of this prospectus, we had thirty-one holders of our common stock. Our transfer agent is Nevada Agency and Transfer Company with an office at 50 West Liberty Street, Suite 880, Reno NV 89501.

Registration Rights

We have not granted registration rights any person.

Dividends

We have never declared or paid any cash dividends on our common stock. We currently intend to retain future earnings, if any, to increase our working capital and do not anticipate paying any cash dividends in the foreseeable future.

We must not declare, pay or set apart for payment any dividend or other distribution (unless payable solely in shares of our common stock or other class of stock junior to our preferred stock as to dividends or upon liquidation) in respect of our common stock, or other class of stock junior to our preferred stock, nor must we redeem, purchase or otherwise acquire for consideration shares of any of the foregoing, unless dividends, if any, payable to holders of our preferred stock for the current period (and in the case of cumulative dividends, if any, payable to holders of our preferred stock for the current period and in the case of cumulative dividends, if any, for all past periods) have been paid, are being paid or have been set aside for payment, in accordance with the terms of our preferred stock, as fixed by our board of directors.

Other than as stated above, 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:

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

  • 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 stockholders who have preferential rights superior to those receiving the distribution.

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

Our management’s discussion and analysis of financial condition and results of operations provides a narrative about our financial performance and condition that should be read in conjunction with our audited financial statements for the year ended December 31, 2011 and related notes thereto and unaudited financial statements for the period ended March 31, 2012 and related notes thereto. Our financial statements for the year ended December 31, 2011 as filed on our annual report on Form 10-K on March 23, 2012 is hereby incorporated by reference. Our financial statements for the period ended March 31, 2012 as filed on our interim report on Form 10-Q on May 15, 2012 is hereby incorporated by reference.

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Our management’s discussion and analysis of financial condition and results of operations provides a narrative about our financial performance and condition that should be read in conjunction with the audited financial statements of ODT and RSE for the period ended December 31, 2009, the audited consolidated financial statements for the year ended December 31, 2010 and audited consolidated financial statements for the year ended December 31, 2011 and related notes thereto included in this current report and the unaudited consolidated financial statements for the period ended March 31, 2012. This discussion contains forward looking statements reflecting our current expectations and estimates and assumptions about events and trends that may affect our future operating results or financial position. Our actual results and the timing of certain events could differ materially from those discussed in these forward-looking statements due to a number of factors, including, but not limited to, those set forth in the sections of this Current Report on Form 8-K entitled “Risk Factors”.

The information for the year ended December 31, 2010 is a continuation of the financial statements of RSE and reflects the consolidation information of RSE for the year ended December 31, 2010 and ODT for the period from March 24, 2010 to December 31, 2010.

Plan of Operations

We are a start-up development stage company. There exists substantial doubt that we can continue as an on-going business for the next twelve months unless we obtain additional capital to pay our expenses. This is because we have not generated any revenues and no material revenues are anticipated until we further develop our business. There is no assurance we will reach this point.

If we are unable to attract enough users to our website and obtain revenue from advertising, then we may use up our current working capital and will need to find alternative sources of capital, such as a public offering, a private placement of securities, or loans from our officer or others in order for us to maintain our operations past that 12 month period. At the present time, we have not made any arrangements to raise additional cash other than this offering. If we need additional cash and cannot raise it, we will either have to suspend operations until we do raise the cash, or cease operations entirely. Our new controlling shareholders are considering other potential businesses for our company.

Milestones for Development

The following is a detailed description of the actions and timing of our planned operations over the next 12 months:

Milestone Actions Required Completion Date Approximate Costs
Focus on Advertisement of
Website



- Perform search engine optimization.

- Use “guerrilla marketing” techniques to
promote site. 

-  Begin working on social marketing integration
with sites such as Facebook and Twitter.

Q2 of 2012




$5,000




Launch Improved Website



- Complete code for online store, forum, and
advice section of website.

- Continue working on advertisement of
website, including, if feasible, mainstream
advertising.
Q3 of 2012



$15,000



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Expansion of
Advertisement of Website




-  If revenues support expansion, hire employees
to provide advice and feedback to users. 

- Implementation of bulletin-board chatroom. 

- Add integration with social media sites such
as Facebook and Twitter.
Q4 of 2012





$10,000





We anticipate the costs for the development of our improved website will be substantially reduced due to the uncompensated time and effort of our sole director and officers.

Results of Operations

For the three months ended March 31, 2012 and 2011

Revenues

We have not earned any revenue from operations since our inception and further losses are anticipated in the development of our business. We are currently in the development stage of our business and we can provide no assurances that we will generate revenue in the foreseeable future.

Expenses

For the three month period ended March 31, 2012, we incurred expenses of $35,376 including $14,325 in audit, accounting and tax fees, $3,369 in legal fees, $2,468 in filing and transfer agent fees, $12,500 in consulting fees, $1,652 in interest expense, $748 in amortization, bank charges of $364 and a recovery of $50 in license and permit fees. These expenses relate primarily to the ongoing maintenance of our company and the filing of necessary registration statements and annual report. For the three month period ended March 31, 2011, we incurred expenses of $14,475, including $9,350 in audit, accounting and tax fees, $2,190 in legal fees, $1,503 in filing and transfer agent fees, $1,626 in interest expense, and a recovery of $194 in bank fees. The increase in expenses in the three month period ended March 31, 2012 as compared to the three month period ended March 31, 2011 was primary due to an increase in consulting fees and audit and tax fees.

For the years ended December 31, 2011 and 2010

Revenue

We have not earned any revenue from operations since our inception and further losses are anticipated in the development of our business. We are currently in the development stage of our business and we can provide no assurances that we will generate revenue in the foreseeable future.

Expenses

For the year ended December 31, 2010, we incurred expenses of $66,056 including $29,822 in audit, accounting and tax fees, $24,375 in legal fees, $6,091 in filing and transfer agent fees. These expenses are primarily due to the preparation of our audited financial statements and our Registration Statement on Form S-1. We also incurred $732 in license and permit fees, $1,500 in consulting fees, $3,009 in interest expenses and $527 in bank charges.

For the year ended December 31, 2011, we incurred expenses of $100,394 including $21,848 in accounting, audit and tax fees, $29,767 in legal fees, $14,389 in filing and transfer agent fees. We also incurred $494 in license and permit fees, $13,333 in consulting fees, $1,994 in amortization, $11,043 in travel expenses, $10 in web domain expense and $202 in bank charges. Finally, we recognized $7,314 of interest expense. For the year ended December 31, 2010, we incurred expenses of $67,235 including $25,142 in legal fees, $29,822 in accounting, audit and tax fees, $1,500 for consulting fees, $6,091 for filing and transfer agent fees, $1,057 for licenses and permits, $594 for bank fees, $20 for web domain registration and $3,009 of interest expense.

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The increase in expenses in the year ended December 31, 2011 as compared to the year ended December 31, 2010 was primary due to increased consulting and travel expenses as we sought new business opportunities.

Liquidity and Capital Resources

Working Capital as at March 31, 2012

          As at  
    As at     December 31,  
    March 31, 2012     2011  
Current Assets $  23,050   $  7,492  
Current Liabilities $  41,317   $  42,464  
Working Capital (Deficiency) $  (18,267 ) $  (34,972 )

Our working capital deficiency decreased primarily due to the share subscriptions received during the three months ended March 31, 2012.

We anticipate that we will incur approximately $100,000 for operating expenses, including professional, legal consulting and accounting expenses associated with our reporting requirements under the Exchange Act during the next twelve months. These outflows are in addition to the minimum $30,000 of additional development costs to be incurred relative to our website as detailed above.

As of November 4, 2011, we have received $74,062 as a loan from one of our shareholders. Until November 4, 2011, the loan was due on demand. Pursuant to a loan terms agreement executed by us and the shareholder on November 4, 2011, the terms of repayment were amended to specify that ten per cent (10%) of the gross proceeds of any prospective debt or equity financing undertaken by our company would be applied to the repayment of the principal of this loan until fully repaid. Any balance remaining outstanding on November 4, 2016 would then be fully due and payable.

On November 24, 2011, we entered into a loan agreement with an unrelated third party whereby we borrowed $25,000 from one lender with no interest and no fixed repayment date. The principal amount of the loan is convertible into shares of our common stock at a price to be determined at the time of conversion and we agreed to pay any out of pocket legal costs to the lender.

On November 1, 2011, we executed two consulting agreements. The first agreement relates to the provision of business advisory, financing and general compliance related services. The agreement provides for a monthly fee of $4,167 and is terminable by us with two months’ advance notice. The second agreement relates to the provision of bookkeeping and accounting services. The agreement provides for a monthly fee of $833 and is terminable by us with two months’ advance notice.

As of the date of this report we had uncommitted cash of approximately $7,000, accordingly, we will need to obtain additional financing in order to complete our business plan.

On February 13, 2012, we executed a $25,000 loan agreement with an unrelated third party lender. The amount is unsecured and non-interest bearing. The loan shall be converted to common stock of the Company at the same per share price applicable to the next issuance by the Company of common shares. Such conversion shall take place contemporaneous with the closing of the next equity financing with the subject common shares being issued to such persons as directed by the lender. The loan shall not have any fixed repayment term and shall be retired upon the loan conversion.

On April 9, 2012, we sold 17,750,000 shares of our common stock at a price of US$0.001 per share for gross proceeds of US$17,750.

On May 23, 2012, we sold 12,000,000 shares of our common stock at a price of US$0.001 per share for gross proceeds of US$12,000.

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Cash Flows For the Three Months Ended March 31, 2012 and 2011

    Three Month     Three Month  
    Period Ended     Period Ended  
    March 31, 2012     March 31, 2011  
Cash provided by (used in) Operating Activities $  (9,442 ) $  (15,009 )
Cash provided by (used in) Investing Activities $  nil   $  nil  
Cash provided by (used in) Financing Activities $  25,000   $  60,000  
Net Increase (Decrease) in Cash $  15,558   $  44,991  

Cash Used In Operating Activities

We used cash in operating activities in the amount of $9,442 during the three month period ended March 31, 2012 and $15,009 during the three month period ended March 31, 2011. Cash used in operating activities was funded primarily by cash from financing activities.

Cash From Investing Activities

There was no cash used in investing activities during the three month period ended March 31, 2012. There was also no cash provided by investing activities during the three month period ended March 31, 2011.

Cash from Financing Activities

We generated cash of $25,000 from loan proceeds share subscriptions received during the three month period ended March 31, 2012 compared to cash of $60,000 generated from financing activities during the three month period ended March 31, 2011. The loan proceeds have been characterized as a share subscription for accounting purposes due to the convertible nature of the loan.

Cash Flows For the Years Ended December 31, 2011 and 2010

    Year ended     Year ended  
    December 31, 2011     December 31, 2010  
Cash provided by (used in) Operating Activities $  (108,116 $ (54,739 )
Cash provided by (used in) Investing Activities $  (650 ) $ 11,135  
Cash provided by (used in) Financing Activities $  102,600   $  57,262  
Net Increase (Decrease) in Cash $  (6,166 ) $  13,658  

Cash Used In Operating Activities

We used cash in operating activities in the amount of $108,116 during the year ended December 31, 2011 and $54,739 during the year ended December 31, 2010. Cash used in operating activities was funded primarily by cash from financing activities.

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Cash From Investing Activities

$650 cash was used in investing activities during the year ended December 31, 2011 to complete the development of the website. Cash provided by investing activities during the year ended December 31, 2010 of $11,135 was a result of the cash that we acquired when we completed the reverse takeover transaction on March 24, 2010.

Cash from Financing Activities

We generated cash of $102,600 from financing activities during the year ended December 31, 2011 from our initial public offering and loans from related parties compared to cash of $57,262 generated from financing activities during the year ended December 31, 2010.

Going Concern

The financial statements accompanying this report have been prepared on a going concern basis, which implies that our company will continue to realize its assets and discharge its liabilities and commitments in the normal course of business. Our company has not generated revenues since inception and has never paid any dividends and is unlikely to pay dividends or generate earnings in the immediate or foreseeable future. The continuation of our company as a going concern is dependent upon the continued financial support from our shareholders, the ability of our company to obtain necessary equity financing to achieve our operating objectives, and the attainment of profitable operations. As at March 31, 2012, our company has accumulated comprehensive losses of $203,005 since inception. We do not have sufficient working capital to enable us to carry out our stated plan of operation for the next twelve months.

Due to the uncertainty of our ability to meet our current operating expenses and the capital expenses noted above in their report on the financial statements for the year ended December 31, 2011, our independent auditors included an explanatory paragraph regarding concerns about our ability to continue as a going concern. Our financial statements contain additional note disclosures describing the circumstances that lead to this disclosure by our independent auditors.

The continuation of our business is dependent upon us raising additional financial support. The issuance of additional equity securities by us could result in a significant dilution in the equity interests of our current stockholders. Obtaining commercial loans, assuming those loans would be available, will increase our liabilities and future cash commitments.

Future Financings

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

Off-Balance Sheet Arrangements

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

Product Research and Development

We do not anticipate that we will spend any significant sums on research and development over the twelve month period ending December 31, 2012.

Purchase of Significant Equipment

We do not intend to purchase any significant equipment over the twelve month period ending December 31, 2012.

28


Contingencies and Commitments

We had no contingencies or long-term contractual obligations as at December 31, 2011.

29


ONLINE DISRUPTIVE TECHNOLOGIES, INC.

(A Development Stage Company)

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2012

30


Online Disruptive Technologies, Inc.
(A Development Stage Company)
Consolidated Balance Sheets

    March 31,     December 31,  
    2012     2011  
    $     $  
ASSETS            
             
Current Assets            
Cash and Cash Equivalents   23,050     7,492  
Total Current Assets   23,050     7,492  
             
Website Development Costs (Note 4)   6,233     6,981  
Total Assets   29,283     14,473  
             
LIABILITIES            
             
Current Liabilities            
Accounts Payable and Accrued Liabilities   26,453     2,918  
Term Loan – Related Party (Note 5)   14,464     14,146  
Loans Payable - Related Parties (Note 6)   400     25,400  
Total Current Liabilities   41,317     42,464  
Term loan – Related Party (Note 5)   46,531     45,198  
Total Liabilities   87,848     87,662  
             
SHAREHOLDERS' DEFICIENCY            
Authorized:            
 20,000,000 Preferred Shares, par value $0.001            
 500,000,000 Common Shares, par value $0.001            
             
Issued and outstanding:            
 Nil Preferred Shares
 24,000,100 Common Shares (December 31, 2011:
 24,000,100 common shares)
62,400 62,400
Additional Paid-in Capital   32,040     32,040  
Share subscription received   50,000     -  
(Deficit) Accumulated During the Development Stage   (203,005 )   (167,629 )
Total Shareholders’ Deficiency   (58,565 )   (73,189 )
Total Liabilities and Shareholders' Deficiency   29,283     14,473  

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

31


Online Disruptive Technologies, Inc.
(A Development Stage Company)
Consolidated Statements of Operations and Comprehensive Loss

                From  
                November 16,  
    Three months     Three months     2009  
    ended March     ended March     (inception) to  
    31, 2012     31, 2011     March 31, 2012  
General and Administrative Expenses   $     $     $  
Accounting Fees   2,500     1,500     9,667  
Audit and Tax Fees   11,825     7,850     56,328  
Amortization – Website Development Costs   748     -     2,742  
Bank Fees   364     (194 )   1,160  
Consulting Fees   12,500     -     27,333  
Filing and Transfer Agent Fees   2,468     1,503     22,948  
License and Permit Fees   (50 )   -     1,501  
Legal Fees   3,369     2,190     58,278  
Travel Expenses   -     -     11,043  
Web Domain Expense   -     -     30  
    33,724     12,849     191,030  
                   
(Loss) before other expense   (33,724 )   (12,849 )   (191,030 )
Other Expense                  
Interest Expense   1,652     1,626     11,975  
                   
Net Loss and Comprehensive Loss for the Period   (35,376 )   (14,475 )   (203,005 )
                   
                   
Basic and Diluted Net Loss per Common Share   (0.00 )   (0.00 )      
                   
Weighted Average Number of Common Shares Outstanding – Basic and Diluted   24,000,100     20,333,433      

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

32


Online Disruptive Technologies, Inc.
(A Development Stage Company)
Consolidated Statements of Stockholders’ Deficiency
For the period from November 16, 2009 to March 31, 2012

                                      (Deficit)        
                                      Accumulated        
                          Additional     Share     During the        
  Preferred Stock     Common Stock     Paid In     Subscription     Development        
  Shares     Amount     Shares     Amount     Capital     Received     Stage     Total  
        $       $     $     $     $     $     $  
Shares issued for cash at $0.0001 per                                                
share on November 16, 2009   -     -     1,000     -     -     -     -     -  
Shares issued for cash at $0.000025 per                                                
share on December 5, 2009   -     -     15,999,000     400     -     -     -     400  
Net loss for the period   -     -     -     -     -     -     (1,179 )   (1,179 )
Balance December 31, 2009   -     -     16,000,000     400     -     -     (1,179 )   (779 )
Recapitalization - ODT   -     -     2,000,100     2,000     6,999     -     -     8,999  
Imputed interest from shareholders   -     -     -     -     3,009     -     -     3,009  
Net loss for the year   -     -     -     -     -     -     (66,056 )   (66,056 )
Balance December 31, 2010   -     -     18,000,100     2,400     10,008     -     (67,235 )   (54,827 )
Shares issued for cash at $0.01 per share on February 24th, 2011   -     -     6,000,000     60,000     -     -     -     60,000  
Imputed interest from shareholders   -     -     -     -     6,199     -     -     6,199  
Restructured term loan – a related party   -     -     -     -     15,833     -     -     15,833  
Net loss for the year   -     -     -     -     -     -     (100,394 )   (100,394 )
Balance December 31, 2011   -     -     24,000,100     62,400     32,040     -     (167,629 )   (73,189 )
Share subscription received   -     -     -     -     -     50,000     -     50,000  
Net loss for the period   -     -     -     -     -     -     (35,376 )   (35,376 )
                                                 
Balance March 31, 2012   -     -     24,000,100     62,400     32,040     50,000     (203,005 )   (58,565 )

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

33


Online Disruptive Technologies, Inc.
(A Development Stage Company)
Consolidated Statements of Cash Flows

                From November  
    Three months     Three month     16, 2009  
    ended March     ended March     (inception) to  
    31, 2012     31, 2011     March 31, 2012  
Cash flow from Operating Activities       $     $  
Net loss for the period   (35,376 )   (14,475 )   (203,005 )
Adjustment for items not involving cash:                  
Imputed interest   1,652     1,626     11,975  
Amortization – website development costs   748     -     2,742  
Changes in non-cash working capital items:                  
Increase in accounts payable and accrued liabilities   23,534     (2,160 )   15,991  
Net Cash (Used in) Operating Activities   (9,442 )   (15,009 )   (172,297 )
Cash flow from Financing Activities                  
Common shares issued, net of issuance costs         60,000     60,400  
Increase in loan payable – related parties   -     -     99,462  
Share subscription received   25,000     -     25,000  
Net Cash Provided by Financing Activities   25,000     60,000     184,862  
Cash flow from Investing Activities                  
Cash acquired on acquisition of a subsidiary   -     -     14,910  
Website development costs   -     -     (4,425 )
Net Cash Provided by Investing Activities   -     -     10,485  
Net Increase (Decrease) in Cash and Cash equivalents   15,558     44,991     23,050  
Cash and Cash equivalents, Beginning of Period   7,492     13,658     -  
Cash and Cash equivalents, End of Period   23,050     58,649     23,050  
Supplementary Information                  
Interest Paid   -     -     -  
Income Taxes Paid   -     -     -  

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

34


Online Disruptive Technologies, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
March 31, 2012

Note 1 - Nature of Operations

Online Disruptive Technologies, Inc. (“ODT” or the “Company”) was incorporated on November 16, 2009 in the State of Nevada, U.S.A. The Company is in the business of operating websites with advertising revenue platforms. The Company has limited operations and in accordance with ASC 915, is considered a development stage company that has had no revenues from inception to date. The Company has a December 31 year-end.

Effective March 24, 2010, the Company acquired 100% of the issued and outstanding shares of RelationshipScoreboard.com Entertainment Inc. (“RS” or “RelationshipScoreboard.com”), a company incorporated on November 16, 2009 in the state of Nevada, U.S.A. in exchange for 16,000,000 shares of the Company’s common stock. Upon the completion of the acquisition, the former sole shareholder of RS held 89% of the Company’s issued and outstanding common stock. As a result, the transaction was accounted for as a reverse takeover transaction (“RTO”) for accounting purpose, as RS was deemed to be the acquirer, and these consolidated financial statements are a continuation of the financial statements of RS.

These financial statements have been prepared with the ongoing assumption that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. The Company suffered a recurring loss and had a working capital deficit of $18,267 as at March 31, 2012 (December 31, 2011 – a working capital deficit of $34,972) which raises substantial doubt about the Company’s ability to continue as a going concern. These financial statements do no include any adjustments to the amounts and classification of assets and liabilities that might be necessary should the Company be unable to continue as a going concern.

The operations of the Company have primarily been funded by the sale of common shares and loans received. Continued operations of the Company are dependent on the Company’s ability to complete equity financings or generate profitable operations in the future. Management’s plan in this regard is to secure additional funds through future equity financings. Such financings may not be available or may not be available on reasonable terms to the Company.

Note 2 – Acquisition - ODT

In connection with the RTO described above and prior to the acquisition, ODT had no business and did not meet the definition of a business under ASC 805, “Accounting for Business Combinations”. Accordingly, the reverse takeover of ODT by RS has been accounted for as a capital transaction, in respect of which the net assets of ODT on March 24, 2010 were accounted for as a recapitalization of RS. A breakdown of ODT’s net assets as at March 24, 2010 is as follows:

    March 24, 2010  
Total assets – cash only $  14,910  
Total liabilities   (5,911 )
       
Net assets acquired $  8,999  

35


Online Disruptive Technologies, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
March 31, 2012

Note 3 - Significant Accounting Policies

a)           Basis of Presentation

These financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“US GAAP”). All adjustments considered necessary for a fair presentation of financial position, results of operations and cash flows as at March 31, 2012 have been included.

b)           Accounting Method

The Company’s financial statements are prepared using the accrual method of accounting.

c)           Use of Estimates

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant areas require use of estimates include valuation allowance for deferred income tax assets. Actual results could differ from those estimates.

d)           Foreign Currency Translation

The Company’s functional currency is U.S. dollars. Transactions in other currencies are recorded in U.S. dollars at the rates of exchange prevailing when the transactions occur. Monetary assets and liabilities denominated in other currencies are translated into U.S. dollars at rates of exchange in effect at the balance sheet dates. Exchange gains and losses are recorded in the statements of operations.

e)           Cash and Cash Equivalents

Cash and cash equivalents consist entirely of readily available cash balances. There were no cash equivalents as of March 31, 2012 and December 31, 2011.

f)           Stock-based Compensation

The Company accounts its stock options and similar equity instruments issued in accordance with ASC 718, “Share-Based Payment”. Accordingly, compensation costs attributable to stock options or similar equity instruments granted are measured at the fair value at the grant date, and expensed over the expected vesting period. ASC 718 requires excess tax benefits be reported as a financing cash inflow rather than as a reduction of taxes paid.

As at March 31, 2012 and December 31, 2011 the Company had no stock options issued and outstanding.

g)           Revenue Recognition

Operating revenue consist of advertising revenue. The point in time at which revenues are recognized is determined in accordance with ASC 605-10 (formerly Staff Accounting Bulletin No. 104, “Revenue Recognition”). Revenues are recorded when the Company delivers services to its customers and collection is reasonably estimated.

36


Online Disruptive Technologies, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
March 31, 2012

Note 3 - Significant Accounting Policies (cont’d)

h)           Income Taxes

Income taxes are accounted for under the liability method of accounting for income taxes. Under the liability method, deferred tax liabilities and assets are recognized for the estimated future tax consequences attributable to differences between the amounts reported in the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted or substantially enacted income tax rates expected to apply when the asset is realized or the liability is settled. The effect of a change in income tax rates on deferred income tax liabilities and assets is recognized in income in the period that the change occurs. Deferred income tax assets are recognized to the extent that they are considered more likely than not to be realized.

The Financial Accounting Standards Board (FASB) has issued FASB ASC 740-10, “Accounting for Uncertainty in Income Taxes”. ASC 740-10 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements in accordance with prior literature FASB Statement No. 109, Accounting for Income Taxes. This standard requires a company to determine whether it is more likely than not that a tax position will be sustained will be sustained upon examination based upon the technical merits of the position. If the more-likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements. The implementation of this standard had no impact on the Company’s financial statements.

i)           Comprehensive Income (Loss)

The Company accounts for comprehensive income under the provisions of ASC Topic 220-10, Comprehensive Income - Overall, which establishes standards for reporting and display of comprehensive income, its components and accumulated balances. The Company is disclosing this information on its Statements of Operations and Comprehensive Loss.

j)           Earnings (Loss) Per Share

Basic loss per share is computed on the basis of the weighted average number of common shares outstanding during each period.

Diluted loss per share is computed on the basis of the weighted average number of common shares and dilutive securities outstanding. For the three month period ended March 31, 2012 and 2011, the basic loss per share is equal to the diluted loss per share as there are no potential dilutive securities.

k)           Financial Instruments and Fair Value of Financial Instruments

Fair Value of Financial Instruments – the Company adopted SFAS ASC 820-10-50, “Fair Value Measurements”. This guidance defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The three levels are defined as follows:

  • Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

  • Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

37


Online Disruptive Technologies, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
March 31, 2012

Note 3 - Significant Accounting Policies (cont’d)

k)           Financial Instruments and Fair Value of Financial Instruments (cont’d)

  • Level 3 inputs to valuation methodology are unobservable and significant to the fair measurement.

As at March 31, 2012, the fair value of cash and cash equivalents was measured using Level 1 inputs.

The carrying amounts reported in the balance sheets for the cash and cash equivalents, accounts payable and accrued liabilities and loan payable each qualify as financial instruments and are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization.

l)           Website Development Costs

Website development costs relate to the development of the Company's proprietary website. These costs have been capitalized as incurred and installed and are being amortized over the estimated useful life of three years on a straight line basis. The Company accounts for these costs in accordance with ASC 350, Intangibles, which specifies the appropriate accounting for costs incurred in connection with the development and maintenance of websites.

m)           Recently Adopted Accounting Pronouncements

In April 2011, the FASB issued authoritative guidance to clarify when a restructuring constitutes a troubled debt restructuring. In evaluating whether a restructuring constitutes a troubled debt restructuring, a creditor must separately conclude that two conditions exist: (1) the restructuring constitutes a concession and (2) the debtor is experiencing financial difficulties. The guidance will be effective for interim and annual reporting periods beginning after June 15, 2011 and will be applied retrospectively to the beginning of the annual period of adoption. The Company adopted this authoritative guidance on January 1, 2012 and the adoption did not have an impact on the Company’s financial statements.

In May 2011, the FASB issued an accounting pronouncement related to fair value measurement (FASB ASC Topic 820), which amends current guidance to achieve common fair value measurement and disclosure requirements in U.S. GAAP and International Financial Reporting Standards. The amendments generally represent clarification of FASB ASC Topic 820, but also include instances where a particular principle or requirement for measuring fair value or disclosing information about fair value measurements has changed. This pronouncement is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. The Company adopted this standard on January 1, 2012 and the adoption of ASC Topic 820 did not have an impact on the Company’s financial statements.

38


Online Disruptive Technologies, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
March 31, 2012

Note 3 - Significant Accounting Policies (cont’d)

m)           Recently Adopted Accounting Pronouncements (cont’d)

In June 2011, the FASB issued an accounting pronouncement that provides new guidance on the presentation of comprehensive income (FASB ASC Topic 220) in financial statements. Entities are required to present total comprehensive income either in a single, continuous statement of comprehensive income or in two separate, but consecutive, statements. Under the single-statement approach, entities must include the components of net income, a total for net income, the components of other comprehensive income and a total for comprehensive income. Under the two-statement approach, entities must report an income statement and, immediately following, a statement of other comprehensive income. Under either method, entities must display adjustments for items reclassified from other comprehensive income to net income in both net income and other comprehensive income. The provisions for this pronouncement are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011, with early adoption permitted. The Company adopted this standard on January 1, 2012 and the adoption of ASC Topic 220 did not have an impact on the Company’s financial statements.

n)           Recently Issued Accounting Pronouncements

Other accounting pronouncements that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s financial statements upon adoption.

Note 4 – Website Development Costs

The Company incurred and capitalized costs of $8,975 ( December 31, 2011 - $8,975) related to its ongoing website development. As at May 1, 2011, the development of the initial phase of the website was substantially completed. As such, the Company began amortizing the website cost over the estimated useful life of 3 years. As at March 31, 2012, the Company incurred amortization cost amounting to $2,742 and the net cost of the web development asset of $6,233 is reflected on the consolidated balance sheet.

    As of March 31, 2012  
    Opening balance     Addition     Amortization     Ending balance  
Website development costs $  8,325   $  650   $  2,742   $  6,233  
                         
    As of December 31, 2011  
    Opening balance     Addition     Amortization     Ending balance  
Website development costs $  8,325   $  650   $  1,994   $  6,981  

39


Online Disruptive Technologies, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
March 31, 2012

Note 5 – Term Loan – a related party

On November 4, 2011, the Company entered into a loan terms Agreement (“Agreement”) with a shareholder of the Company to settle a loan payable in the amount of $74,062. Pursuant to the Agreement, the terms of repayment were amended to specify that ten per cent (10%) of the gross proceeds of any prospective debt or equity financing undertaken by the Company would be applied to the repayment of the principal of this loan until fully repaid. The term loan is unsecured, non-interest bearing and requires that any balance remaining outstanding on November 4, 2016 would then be fully due and payable.

The Company’s management has estimated the repayment of the principal of the loan to be approximately $20,000, $25,000 and $25,000 in fiscal years 2012-2014 respectively with the balance of $4,062 being repaid during the first quarter of fiscal 2015 based on the anticipated prospective debt or equity financings. Management has determined the net present value of the term loan as at the date of restructuring to be $58,229 by discounting the future anticipated repayments at a relative market rate of 11.68% . As a result of the restructuring, the Company recorded $15,833 of additional paid-in capital. During the three month period ended March 31, 2012, the Company recorded interest accretion of $1,652. (three month period ended March 31, 2011 - $nil)

A summary of term loan is as follows:

    March 31, 2012  
Term loan – face value $  74,062  
Effective interest rate – 11.68%   (15,833 )
Net present value   58,229  
Interest accretion   2,766  
Total   60,995  
Current portion   14,464  
Term loan – long term $  46,531  

Note 6 – Loans Payable – Related Parties

As at March 31, 2012, the loans payable included followings:

  -

Two separate loan agreements each in the amount of $25,000 entered into with shareholders of the Company. The amount of each loan is unsecured and non-interest bearing. Each loan shall be converted to common stock of the Company at the same per share price applicable to the next issuance by the Company of common shares (the “Next Equity Financing”). Such conversions shall take place contemporaneous with the closing of the Next Equity Financing with the subject common shares being issued to such persons as directed by the lender. The loans do not entail any fixed repayment term and shall be retired upon the loan conversion.

  -

$400 payable to a director and principal shareholder of the Company. The amount is unsecured, non-interest bearing and due on demand.

40


Online Disruptive Technologies, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
March 31, 2012

Note 6 – Loans Payable – Related Parties (cont’d)

As at March 31, 2012, the Company’s intent towards the two loans of $25,000 each is to issue common shares of the Company at the same per share price applicable to the next issuance by the Company of common shares. Therefore, the Company has considered the loan amounts ($50,000 in aggregate) as share subscriptions received and reclassified such amount as part of shareholders’ equity.

Note 7 – Related Party Transactions

See Note 5 and 6.

Note 8 – Stockholders’ Equity

On March 24, 2010, the Company issued 16,000,000 common shares (restricted shares) to the sole shareholder of RS to effect the acquisition and RTO. Prior to the acquisition and RTO (Note 1 and 2), RS engaged in the following equity transactions which have been restated using the exchange ratio established in the acquisition agreement to reflect 16,000,000 common shares issued in the reverse acquisition:

  - On November 16, 2009, RS issued 1,000 common shares at $0.0001 per share for total proceeds of $0.10.
     
  - On December 5, 2009, RS issued 15,999,000 common shares at $0.000025 per share for total proceeds of $400.

Prior to the acquisition and RTO (Note 1 and 2), the Company engaged in the followings equity transactions:

  -

On November 16, 2009, the Company issued 100 common shares at $0.001 per share for total proceeds of $0.10.

  -

On December 2, 2009, the Company issued 200,000 common shares at $0.01 per share for total proceeds of $2,000.

  -

On January 7, 2010, the Company issued 1,800,000 common shares at $0.01 per share for total proceeds of $18,000.

Upon the acquisition and RTO, 2,000,100 common shares issued by the Company prior to the acquisition were considered as a recapitalization to RS.

On February 24, 2011, the Company issued 6,000,000 common shares at $0.01 per share for total proceeds of $60,000.

41


Online Disruptive Technologies, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
March 31, 2012

Note 8 – Stockholders’ Equity (cont’d)

Share subscription received

During the three month ended March 31, 2012, the Company received loan proceeds of from a shareholder of the Company. The amount is unsecured and non-interest bearing. The loan shall be converted to common stock of the Company at the same per share price applicable to the next issuance by the Company of common shares (the “Next Equity Financing”). Such conversion shall take place contemporaneous with the closing of the Next Equity Financing with the subject common shares being issued to such persons as directed by the lender. The loan does not entail any fixed repayment term and shall be retired upon the loan conversion.

The Company’s intent towards the above $25,000 loan is to issue the common shares of the Company at the same per share price applicable to the next issuance by the Company of common shares. Therefore, the Company has considered the loan amount as a share subscription received and recorded it as part of shareholders’ equity.

Note 9 – Commitments and Guarantees

The Company did not become a guarantor to any parties as at March 31, 2012.

Effective November 1, 2011, the Company entered into a consulting agreement with 1367826 Ontario Limited (“OntarioCo”) and Robbie Manis, pursuant to which OntarioCo is to provide certain consulting services to our company including: sourcing and implementing new business opportunities; raising financing reasonably required from time to time by our company; coordinating all required accounting, reporting and disclosure; and fulfilling any other needed administrative functions. As consideration for the performance of the consulting services under the agreement, we agreed to pay OntarioCo the sum of $4,166.67 per month for the duration of the agreement, exclusive of any applicable sales tax. The agreement is for an indefinite period unless terminated by either party with sixty days advance written notice to the other party.

Effective November 1, 2011, we entered into a consulting agreement with Kerry Chow, pursuant to which Kerry Chow will provide certain consulting services to our company including: maintaining the accounting books and records on behalf of our company and our subsidiaries; preparing consolidated quarterly and annual financial statements for our company and our subsidiaries as well as assisting in the preparation of the related disclosure documents; coordinating the quarterly reviews and annual audits on behalf of our company and our subsidiaries; coordinating the preparation and filing of the annual income tax returns of our company and our subsidiaries; and any other accounting-related functions. As consideration for the performance of the consulting services under the agreement, we agreed to pay Kerry Chow the sum of $833.33 per month for the duration of the agreement, exclusive of any applicable sales tax. The agreement is for an indefinite period unless terminated by either party with sixty days advance written notice to the other party.

See Note 10.

42


Online Disruptive Technologies, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
March 31, 2012

Note 10 – Subsequent Events

  1.

On April 9, 2012, the Company undertook a private placement financing (the ”Financing”) consisting of the issuance of 17,750,000 shares at a per share price of $0.001 for gross proceeds of $17,750.

     
  2.

On April 4, 2012, a to-be-incorporated wholly owned Israeli subsidiary of the Company entered into a non-binding term sheet regarding the licensing of a biotechnology process with a division of Tel Aviv University. It is the intention of both parties to negotiate and enter into a superseding licensing agreement. On April 23, 2012, the Company established the Israeli subsidiary named Savicell Diagnostic Ltd. In conjunction with this incorporation, the Company appointed Mr. David Eyal Davidovits as the sole officer and director of the subsidiary. In addition, Mr. Davidovits was also appointed as Vice-President of Business Development of the Company.

43


ONLINE DISRUPTIVE TECHNOLOGIES, INC.

(A Development Stage Company)

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED DECEMBER 31, 2011

44



Chang Lee LLP
Chartered Accountants
606 815 Hornby Street
Vancouver, B.C, V6Z 2E6
Tel: 604-687-3776
Fax: 604-688-3373
E-mail: info@changleellp.com

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of

ONLINE DISRUPTIVE TECHNOLOGIES, INC.
(A Development Stage Company)

We have audited the accompanying consolidated balance sheet of Online Disruptive Technologies, Inc. (“the Company”) (a development stage company) as at December 31, 2010 and the related consolidated statements of operations and comprehensive loss, stockholders deficiency and cash flows for the year ended December 31, 2010 and for the period cumulative from November 16, 2009 (date of inception) to December 31, 2010. 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 audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as at December 31, 2010 and the results of its operations and its cash flows for the year ended December 31, 2010 and for the period cumulative from November 16, 2009 (date of inception) to December 31, 2010, in conformity with accounting principles generally accepted in the United States of America.

The accompanying financial statements have been prepared assuming the Company will continue as a going concern. As discussed in Note 1 to the financial statements, the Company incurred losses from operations since inception, has not attained profitable operations and is dependent upon obtaining adequate financing to fulfill its business operations. These factors raise substantial doubt about the Company's ability to continue as a going concern. Management's plans in regard to these matters are also discussed in Note 1. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.  

Vancouver, Canada
March 7, 2011 Chartered Accountants

45


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of

Online Disruptive Technologies, Inc.
(A development stage company)

We have audited the consolidated balance sheet of Online Disruptive Technologies, Inc. (the “Company”) (a development stage company) as at December 31, 2011 and the related consolidated statements of operations and comprehensive loss, shareholders deficiency and cash flows for the year then ended. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit. We did not audit the Companys financial statements as of and for the year ended December 31, 2010, and the cumulative data from November 16, 2009 (inception) to December 31, 2010 in the statements of operations and comprehensive loss, shareholders deficiency and cash flows, which were audited by other auditors whose report, dated March 17, 2011 which expressed an unqualified opinion, has been furnished to us. Our opinion, insofar as it relates to the amounts included for cumulative data from November 16 (inception) to December 31, 2010, is based solely on the report of the other auditors.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform an audit to obtain reasonable assurance 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 audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstance, but not for the purpose of expressing an opinion on the effectiveness of the companys internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides 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 the Company as at December 31, 2011 and the result of its operations and its cash flow for the year then ended in conformity with accounting principles generally accepted in the United States of America.

The accompanying financial statements have been prepared assuming the Company will continue as a going concern. As discussed in Note 1 to the financial statements, the Company incurred losses from operations since inception, has not attained profitable operations and is dependent upon obtaining adequate financing to fulfill its business operations. These factors raise substantial doubt about the Company's ability to continue as a going concern. Management's plans in regard to these matters are also discussed in Note 1. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

Vancouver, Canada
March 19, 2012 Chartered Accountants

46



Online Disruptive Technologies, Inc.
(A Development Stage Company)
Consolidated Balance Sheets

    December 31,     December 31,  
    2011     2010  
  $    $   
ASSETS            
             
Current Assets            
Cash and Cash Equivalents   7,492     13,658  
Total Current Assets   7,492     13,658  
             
Website Development Costs (Note 4)   6,981     8,325  
Total Assets   14,473     21,983  
             
LIABILITIES            
             
Current Liabilities            
Accounts Payable and Accrued Liabilities   2,918     19,948  
Term loan – a related party (Note 5)   14,146     -  
Loans Payable - Related Parties (Note 6)   25,400     56,862  
Total Current Liabilities   42,464     76,810  
Term loan – a related party (Note 5)   45,198     -  
Total Liabilities   87,662     76,810  
             
SHAREHOLDERS' DEFICIENCY            
Authorized:
20,000,000 Preferred Shares, par value $0.001
500,000,000 Common Shares, par value $0.001
 

   

 
             
Issued and outstanding:
Nil Preferred Shares
24,000,100 Common Shares (December 31, 2010:
18,000,100 common shares)
 


62,400
   


2,400
 
Additional Paid-in Capital   32,040     10,008  
(Deficit) Accumulated During the Development Stage   (167,629 )   (67,235 )
Total Shareholders’ Deficiency   (73,189 )   (54,827 )
Total Liabilities and Shareholders' Deficiency   14,473     21,983  

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

47



Online Disruptive Technologies, Inc.
(A Development Stage Company)
Consolidated Statements of Operations and Comprehensive Loss

                From  
                November 16,  
                2009  
    Year Ended     Year Ended     (inception) to  
    December 31,     December 31,     December 31,  
    2011     2010     2011  
General and Administrative Expenses $    $    $   
Accounting Fees   6,667     500     7,167  
Audit and Tax Fees   15,181     29,322     44,503  
Amortization – Website Development Costs   1,994     -     1,994  
Bank Fees   202     594     796  
Consulting Fees   13,333     1,500     14,833  
Filing and Transfer Agent Fees   14,389     6,091     20,480  
License and Permit Fees   494     1,057     1,551  
Legal Fees   29,767     25,142     54,909  
Travel Expenses   11,043     -     11,043  
Web Domain Expense   10     20     30  
    93,080     64,226     157,306  
                   
(Loss) before other expense   (93,080 )   (64,226 )   (157,306 )
Other Expense                  
Interest Expense   7,314     3,009     10,323  
                   
Net Loss and Comprehensive Loss for the Period   (100,394 )   (67,235 )   (167,629 )
                   
                   
Basic and Diluted Net Loss per Common Share   (0.00 )   (0.00 )      
                   
Weighted Average Number of Common Shares Outstanding – Basic and Diluted   23,109,990     17,545,283      

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

48



Online Disruptive Technologies, Inc.  
(A Development Stage Company)  
Consolidated Statements of Stockholders’  
Deficiency  
For the period from November 16, 2009 to December 31, 2011     (Deficit)        
                                  Accumulated        
                            Additional     During the        
                                                                                                          Preferred Stock     Common Stock     Paid In     Development        
                                                                                                      Shares            Amount     Shares     Amount     Capital     Stage     Total  
        $          $    $    $    $   
Shares issued for cash at $0.0001 per share on November 16, 2009   -     -     1,000     -     -     -     -  
Shares issued for cash at $0.000025 per share on December 5, 2009   -     -     15,999,000     400     -     -     400  
Net loss for the period   -     -     -     -     -     (1,179 )   (1,179 )
Balance December 31, 2009   -     -     16,000,000     400     -     (1,179 )   (779 )
Recapitalization - ODT   -     -     2,000,100     2,000     6,999     -     8,999  
Imputed interest from shareholders   -     -     -     -     3,009     -     3,009  
Net loss for the year   -     -     -     -     -     (66,056 )   (66,056 )
Balance December 31, 2010   -     -     18,000,100     2,400     10,008     (67,235 )   (54,827 )
Shares issued for cash at $0.01 per share on February 24th , 2011   -     -     6,000,000     60,000     -     -     60,000  
Imputed interest from shareholders   -     -     -     -     6,199     -     6,199  
Restructured term loan – a related party   -     -     -     -     15,833     -     15,833  
Net loss for the year   -     -     -     -     -     (100,394 )   (100,394 )
Balance December 31, 2011   -     -     24,000,100     62,400     32,040     (167,629 )   (73,189 )

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

49



Online Disruptive Technologies, Inc.
(A Development Stage Company)
Consolidated Statements of Cash Flows

                From November  
                16, 2009  
    Year Ended     Year Ended     (inception) to  
    December 31,     December 31,     December 31,  
    2011     2010     2011  
Cash flow from Operating Activities $    $    $   
Net loss for the period   (100,394 )   (67,235 )   (167,629 )
Adjustment for items not involving cash:                  
Imputed interest   7,314     3,009     10,323  
Amortization – website development costs   1,994     -     1,994  
Changes in non-cash working capital items:                  
Increase in accounts payable and accrued liabilities   (17,030 )   9,487     (7,543 )
Net Cash (Used in) Operating Activities   (108,116 )   (54,739 )   (162,855 )
Cash flow from Financing Activities                  
Common shares issued, net of issuance costs   60,000     400     60,400  
Increase in loan payable – related parties   42,600     56,862     99,462  
Net Cash Provided by Financing Activities   102,600     57,262     159,862  
Cash flow from Investing Activities                  
Cash acquired on acquisition of subsidiary   -     14,910     14,910  
Website development costs   (650 )   (3,775 )   (4,425 )
Net Cash Provided by Investing Activities   (650 )   11,135     10,485  
Net Increase (Decrease) in Cash and Cash equivalents   (6,166 )   13,658     7,492  
Cash and Cash equivalents, Beginning of Period   13,658     -     -  
Cash and Cash equivalents, End of Period   7,492     13,658     7,492  
Supplementary Information                  
Interest Paid   -     -     -  
Income Taxes Paid   -     -     -  

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

50



Online Disruptive Technologies, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
December 31, 2011

Note 1 - Nature of Operations

Online Disruptive Technologies, Inc. (“ODT” or the “Company”) was incorporated on November 16, 2009 in the State of Nevada, U.S.A. The Company is in the business of operating websites with advertising revenue platforms. The Company has limited operations and in accordance with ASC 915, is considered a development stage company that has had no revenues from inception to date. The Company has a December 31 year-end.

Effective March 24, 2010, the Company acquired 100% of the issued and outstanding shares of RelationshipScoreboard.com Entertainment Inc. (“RS” or “RelationshipScoreboard.com”), a company incorporated on November 16, 2009 in the state of Nevada, U.S.A. in exchange for 16,000,000 shares of the Company’s common stock. Upon the completion of the acquisition, the former sole shareholder of RS held 89% of the Company’s issued and outstanding common stock. As a result, the transaction was accounted for as a reverse takeover transaction (“RTO”) for accounting purpose, as RS was deemed to be the acquirer, and these consolidated financial statements are a continuation of the financial statements of RS.

These financial statements have been prepared with the ongoing assumption that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. The Company suffered a recurring loss and had a working capital deficit of $34,972 as at December 31, 2011 (December 31, 2010 – a working capital deficit of $63,152) which raises substantial doubt about the Company’s ability to continue as a going concern. These financial statements do no include any adjustments to the amounts and classification of assets and liabilities that might be necessary should the Company be unable to continue as a going concern.

The operations of the Company have primarily been funded by the sale of common shares and loans received. Continued operations of the Company are dependent on the Company’s ability to complete equity financings or generate profitable operations in the future. Management’s plan in this regard is to secure additional funds through future equity financings. Such financings may not be available or may not be available on reasonable terms to the Company.

Note 2 – Acquisition - ODT

In connection with the RTO described above and prior to the acquisition, ODT had no business and did not meet the definition of a business under ASC 805, “Accounting for Business Combinations”. Accordingly, the reverse takeover of ODT by RS has been accounted for as a capital transaction, in respect of which the net assets of ODT on March 24, 2010 were accounted for as a recapitalization of RS. A breakdown of ODT’s net assets as at March 24, 2010 is as follows:

    March 24, 2010  
Total assets – cash only $  14,910  
Total liabilities   (5,911 )
       
Net assets acquired $  8,999  

51



Online Disruptive Technologies, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
December 31, 2011

Note 3 - Significant Accounting Policies

a) Basis of Presentation
These financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“US GAAP”). All adjustments considered necessary for a fair presentation of financial position, results of operations and cash flows as at December 31, 2011 have been included.

b) Accounting Method
The Company’s financial statements are prepared using the accrual method of accounting.

c) Use of Estimates
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant areas require use of estimates include valuation allowance for deferred income tax assets. Actual results could differ from those estimates.

d) Foreign Currency Translation
The Company’s functional currency is U.S. dollars. Transactions in other currencies are recorded in U.S. dollars at the rates of exchange prevailing when the transactions occur. Monetary assets and liabilities denominated in other currencies are translated into U.S. dollars at rates of exchange in effect at the balance sheet dates. Exchange gains and losses are recorded in the statements of operations.

e) Cash and Cash Equivalents
Cash and cash equivalents consist entirely of readily available cash balances. There were no cash equivalents as of December 31, 2011 and December 31, 2010.

f) Stock-based Compensation
The Company accounts its stock options and similar equity instruments issued in accordance with ASC 718, “Share-Based Payment”. Accordingly, compensation costs attributable to stock options or similar equity instruments granted are measured at the fair value at the grant date, and expensed over the expected vesting period. ASC 718 requires excess tax benefits be reported as a financing cash inflow rather than as a reduction of taxes paid.

As at December 31, 2011 and 2010 the Company had no stock options issued and outstanding.

g) Revenue Recognition
Operating revenue consist of advertising revenue. The point in time at which revenues are recognized is determined in accordance with ASC 605-10 (formerly Staff Accounting Bulletin No. 104, “Revenue Recognition”). Revenues are recorded when the Company delivers services to its customers and collection is reasonably estimated.

52



Online Disruptive Technologies, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
December 31, 2011

Note 3 - Significant Accounting Policies (cont’d)

h) Income Taxes
Income taxes are accounted for under the liability method of accounting for income taxes. Under the liability method, deferred tax liabilities and assets are recognized for the estimated future tax consequences attributable to differences between the amounts reported in the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted or substantially enacted income tax rates expected to apply when the asset is realized or the liability is settled. The effect of a change in income tax rates on deferred income tax liabilities and assets is recognized in income in the period that the change occurs. Deferred income tax assets are recognized to the extent that they are considered more likely than not to be realized.

The Financial Accounting Standards Board (FASB) has issued FASB ASC 740-10, “Accounting for Uncertainty in Income Taxes”. ASC 740-10 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements in accordance with prior literature FASB Statement No. 109, Accounting for Income Taxes. This standard requires a company to determine whether it is more likely than not that a tax position will be sustained will be sustained upon examination based upon the technical merits of the position. If the more-likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements. The implementation of this standard had no impact on the Company’s financial statements.

i) Comprehensive Income (Loss)
The Company accounts for comprehensive income under the provisions of ASC Topic 220-10, Comprehensive Income - Overall, which establishes standards for reporting and display of comprehensive income, its components and accumulated balances. The Company is disclosing this information on its Statements of Operations and Comprehensive Loss.

j) Earnings (Loss) Per Share
Basic loss per share is computed on the basis of the weighted average number of common shares outstanding during each period.

Diluted loss per share is computed on the basis of the weighted average number of common shares and dilutive securities outstanding. For the years ended December 31, 2011 and 2010, the basic loss per share is equal to the diluted loss per share as there are no potential dilutive securities.

k) Financial Instruments and Fair Value of Financial Instruments
Fair Value of Financial Instruments – the Company adopted SFAS ASC 820-10-50, “Fair Value Measurements”. This guidance defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The three levels are defined as follows:

  • Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

  • Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

53



Online Disruptive Technologies, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
December 31, 2011

Note 3 - Significant Accounting Policies (cont’d)

k) Financial Instruments and Fair Value of Financial Instruments (cont’d)

  • Level 3 inputs to valuation methodology are unobservable and significant to the fair measurement.

As at December 31, 2011, the fair value of cash and cash equivalents was measured using Level 1 inputs.

The carrying amounts reported in the balance sheets for the cash and cash equivalents, accounts payable and accrued liabilities and loan payable each qualify as financial instruments and are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization.

l) Website Development Costs
Website development costs relate to the development of the Company's proprietary website. These costs have been capitalized as incurred and installed and are being amortized over the estimated useful life of three years on a straight line basis. The Company accounts for these costs in accordance with ASC 350, Intangibles, which specifies the appropriate accounting for costs incurred in connection with the development and maintenance of websites.

m) Recently Adopted Accounting Pronouncements
In October 2009, the FASB issued Accounting Standards Update 2009-13, Revenue Recognition (Topic 605): Multiple-Deliverable Revenue Arrangements. This update addressed the accounting for multiple-deliverable arrangements to enable vendors to account for products or services (deliverables) separately rather than a combined unit and will be separated in more circumstances that under existing US GAAP. This amendment has eliminated that residual method of allocation. Effective prospectively for revenue arrangements entered into or materially modified in fiscal years beginning on or after June 15, 2010. Early adoption is permitted. The Company adopted this standard on January 1, 2011 and the adoption of ASU 2009-13 did not have a material effect on the financial position, results of operations or cash flows of the Company.

In October 2009, the FASB issued Accounting Standards Update 2009-14, Software (Topic 985): Certain Revenue Arrangements That Include Software Elements. This update changed the accounting model for revenue arrangements that include both tangible products and software elements. Effective prospectively for revenue arrangements entered into or materially modified in fiscal years beginning on or after June 15, 2010. Early adoption is permitted. The Company adopted this standard on January 1, 2011 and the adoption of ASU 2009-14 did not have an effect on the financial position, results of operations or cash flows of the Company.

54



Online Disruptive Technologies, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
December 31, 2011

Note 3 - Significant Accounting Policies (cont’d)

m) Recently Adopted Accounting Pronouncements (cont’d)
In January 2010, the FASB issued ASU No. 2010-06 regarding fair value measurements and disclosures and improvement in the disclosure about fair value measurements. This ASU requires additional disclosures regarding significant transfers in and out of Levels 1 and 2 of fair value measurements, including a description of the reasons for the transfers. Further, this ASU requires additional disclosures for the activity in Level 3 fair value measurements, requiring presentation of information about purchases, sales, issuances, and settlements in the reconciliation for fair value measurements. This ASU is effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. The Company adopted this standard on January 1, 2011 and the adoption of ASU 2010-06 did not have a material impact on our financial statements.

In February 2010, the FASB issued ASC No. 2010-09, “Amendments to Certain Recognition and Disclosure Requirements”, which eliminates the requirement for SEC filers to disclose the date through which an entity has evaluated subsequent events. ASC No. 2010-09 is effective for its fiscal quarter beginning after December 15, 2010. The adoption of ASC No. 2010-09 is not expected to have a material impact on the Company’s financial statements ASU No. 2010-13 was issued in April 2010, and clarified the classification of an employee share based payment award with an exercise price denominated in the currency of a market in which the underlying security trades. This ASU will be effective for the first fiscal quarter beginning after December 15, 2010, with early adoption permitted. The Company adopted this standard on January 1, 2011 and the adoption of ASU No. 2010-13 did not have a material impact on the Company’s financial statements.

In April 2010, the FASB codified the consensus reached in Emerging Issues Task Force Issue No. 08-09, “Milestone Method of Revenue Recognition.” FASB ASU No. 2010-17 “Revenue Recognition –Milestone Method (Topic 605)” provides guidance on defining a milestone and determining when it may be appropriate to apply the milestone method of revenue recognition for research and development transactions. FASB ASU No. 2010 – 17 is effective for fiscal years beginning on or after June 15, 2010, and is effective on a prospective basis for milestones achieved after the adoption date. The Company adopted this standard on January 1, 2011 and the adoption of ASU 2010-17 did not have a material impact on its financial position or results of operations.

On March 5, 2010, the FASB issued ASU No. 2010-11 Derivatives and Hedging Topic 815 “Scope Exception Related to Embedded Credit Derivatives.” This ASU clarifies the guidance within the derivative literature that exempts certain credit related features from analysis as potential embedded derivatives requiring separate accounting. The ASU specifies that an embedded credit derivative feature related to the transfer of credit risk that is only in the form of subordination of one financial instrument to another is not subject to bifurcation from a host contract under ASC 815-15-25, “Derivatives and Hedging — Embedded Derivatives — Recognition.” All other embedded credit derivative features should be analyzed to determine whether their economic characteristics and risks are “clearly and closely related” to the economic characteristics and risks of the host contract and whether bifurcation is required. The Company adopted this standard on January 1, 2011 and the adoption of ASU 2010-11 did not have a material impact on the Company’s financial statements.

55



Online Disruptive Technologies, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
December 31, 2011

Note 3 - Significant Accounting Policies (cont’d)

m) Recently Adopted Accounting Pronouncements (cont’d)
In April 2010, the FASB issued ASU 2010-13, “Compensation—Stock Compensation (Topic 718): Effect of Denominating the Exercise Price of a Share-Based Payment Award in the Currency of the Market in Which the Underlying Equity Security Trades,” or ASU 2010-13. This ASU provides amendments to Topic 718 to clarify that an employee share-based payment award with an exercise price denominated in currency of a market in which a substantial portion of the entity’s equity securities trades should not be considered to contain a condition that is not a market, performance, or service condition. Therefore, an entity would not classify such an award as a liability if it otherwise qualifies as equity. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2010. The Company adopted this standard on January 1, 2011 and the adoption of ASU 2010-13 did not have a significant impact on its financial statements.

n) Recently Issued Accounting Pronouncements
In April 2011, the FASB issued authoritative guidance to clarify when a restructuring constitutes a troubled debt restructuring. In evaluating whether a restructuring constitutes a troubled debt restructuring, a creditor must separately conclude that two conditions exist: (1) the restructuring constitutes a concession and (2) the debtor is experiencing financial difficulties. The guidance will be effective for interim and annual reporting periods beginning after June 15, 2011 and will be applied retrospectively to the beginning of the annual period of adoption. The Company does not anticipate that the guidance will have an impact on the Company’s financial statements.

In May 2011, the FASB issued an accounting pronouncement related to fair value measurement (FASB ASC Topic 820), which amends current guidance to achieve common fair value measurement and disclosure requirements in U.S. GAAP and International Financial Reporting Standards. The amendments generally represent clarification of FASB ASC Topic 820, but also include instances where a particular principle or requirement for measuring fair value or disclosing information about fair value measurements has changed. This pronouncement is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. The Company does not anticipate that the guidance will have an impact on the Company’s financial statements.

In June 2011, the FASB issued an accounting pronouncement that provides new guidance on the presentation of comprehensive income (FASB ASC Topic 220) in financial statements. Entities are required to present total comprehensive income either in a single, continuous statement of comprehensive income or in two separate, but consecutive, statements. Under the single-statement approach, entities must include the components of net income, a total for net income, the components of other comprehensive income and a total for comprehensive income. Under the two-statement approach, entities must report an income statement and, immediately following, a statement of other comprehensive income. Under either method, entities must display adjustments for items reclassified from other comprehensive income to net income in both net income and other comprehensive income. The provisions for this pronouncement are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011, with early adoption permitted. The Company does not anticipate that the guidance will have an impact on the Company’s financial statements.

56



Online Disruptive Technologies, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
December 31, 2011

Note 3 - Significant Accounting Policies (cont’d)

n) Recently Issued Accounting Pronouncements (cont’d)
Other accounting pronouncements that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s financial statements upon adoption.

Note 4 – Website Development Costs

The Company incurred and capitalized costs of $8,975 (2010 - $8,325) related to its ongoing website development. As at May 1 2011, the development of the initial phase of the website was substantially completed. As such, the Company began amortizing the website cost over the estimated useful life of 3 years. As at December 31, 2011, the Company incurred amortization cost amounting to $1,994 and the net cost of the web development asset of $6,981 is reflected on the balance sheet.

          As of December 31, 2011        
    Opening balance     Addition     Amortization     Ending balance  
Website development costs $  8,325   $  650   $  1,994   $  6,981  

          As of December 31, 2010        
    Opening balance     Addition     Amortization     Ending balance  
Website development costs $  -   $  8,325   $  -   $  8,325  

Note 5 – Term Loan – a related party

On November 4, 2011, the Company entered into a loan terms Agreement (“Agreement”) with a shareholder of the Company to settle a loan payable in the amount of $74,062. Pursuant to the Agreement, the terms of repayment were amended to specify that ten per cent (10%) of the gross proceeds of any prospective debt or equity financing undertaken by the Company would be applied to the repayment of the principal of this loan until fully repaid. The term loan is unsecured, non-interest bearing and requires that any balance remaining outstanding on November 4, 2016 would then be fully due and payable.

The Company’s management has estimated the repayment of the principal of the loan to be approximately $20,000, $25,000 and $25,000 in fiscal years 2012-2014 respectively with the balance of $4,062 being repaid during the first quarter of fiscal 2015 based on the anticipated prospective debt or equity financings. Management has determined the net present value of the term loan as at the date of restructuring to be $58,229 by discounting the future anticipated repayments at a relative market rate of 11.68% . As a result of the restructuring, the Company recorded $15,833 of additional paid-in capital. During the year ended December 31, 2011, the Company recorded interest accretion of $1,115.

57



Online Disruptive Technologies, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
December 31, 2011

Note 5 – Term Loan – a related party (cont’d)

A summary of term loan is as follows:

    December 31, 2011  
Term loan – face value $  74,062  
Effective interest rate – 11.68%   (15,833 )
Net present value   58,229  
Interest accretion   1,115  
Total   59,344  
Current portion   14,146  
Term loan – long term $  45,198  

Note 6 – Loans Payable – Related Parties

As at December 31, 2011, the loans payable included followings:

  • $25,000 payable to a shareholder of the Company. The amount is unsecured and non-interest bearing and due on demand.
  • $400 payable to a director and principal shareholder of the Company. The amount is unsecured, non-interest bearing and due on demand.

During the year ended December 31, 2011, the Company recorded imputed interest on the loans payable from related parties at a market rate of 11.68% thereby leading to the recognition of interest expense of $6,199. A corresponding amount was classified as additional paid-in capital.

Note 7 – Related Party Transactions

See Note 5 and 6.

Note 8 – Stockholders’ Equity

On March 24, 2010, the Company issued 16,000,000 common shares (restricted shares) to the sole shareholder of RS to effect the acquisition and RTO. Prior to the acquisition and RTO (Note 1 and 2), RS engaged in the following equity transactions which have been restated using the exchange ratio established in the acquisition agreement to reflect 16,000,000 common shares issued in the reverse acquisition:

  • On November 16, 2009, RS issued 1,000 common shares at $0.0001 per share for total proceeds of $0.10.
  • On December 5, 2009, RS issued 15,999,000 common shares at $0.000025 per share for total proceeds of $400.

58



Online Disruptive Technologies, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
December 31, 2011

Note 8 – Stockholders’ Equity (cont’d)

Prior to the acquisition and RTO (Note 1 and 2), the Company engaged in the followings equity transactions:

  • On November 16, 2009, the Company issued 100 common shares at $0.001 per share for total proceeds of $0.10.
  • On December 2, 2009, the Company issued 200,000 common shares at $0.01 per share for total proceeds of $2,000.
  • On January 7, 2010, the Company issued 1,800,000 common shares at $0.01 per share for total proceeds of $18,000.

Upon the acquisition and RTO, 2,000,100 common shares issued by the Company prior to the acquisition were considered as a recapitalization to RS.

On February 24, 2011, the Company issued 6,000,000 common shares at $0.01 per share for total proceeds of $60,000.

Note 9 – Income Taxes

The Company is subject to income tax laws in the U.S. The Company incurred a net loss for the year ended December 31, 2011 and therefore did not incur income tax expense.

A reconciliation of the federal statutory income tax, at the statutory rate of 15% to the Company’s effective income tax rate, for the years ended December 31, 2011 and 2010 are as follows:

      For the year ended     For the year ended December  
      December 31, 2011     31, 2010  
       
  Net loss from operations   (100,394 )   (66,056 )
  Statutory tax rate   15%     15%  
  Income tax recovery   (15,059 )   (9,908 )
  Non-deductible item   1,097     451  
  Benefits not recognized   13,962     9,457  
  Income tax expense (recovery)   -     -  

The significant components of deferred income tax assets (liabilities) are as follows:

      December 31, 2011     December 31, 2010  
       
  Non-capital loss carry forwards   25,698     11,284  
  Valuation allowance   (25,698 )   (11,284 )
  Deferred income tax assets   -     -  

59



Online Disruptive Technologies, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
December 31, 2011

Note 9 – Income Taxes (cont’d)

The valuation allowances for deferred tax assets as of December 31, 2011 and 2010 were $25,698 and $11,284, respectively. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible.

As at December 31, 2011, the Company has non-capital loss carry forwards totalling $171,317 available to reduce taxable income otherwise calculated in future years. These losses expire from 2029 to 2031.

Note 10 – Commitments and Guarantees

The Company did not become a guarantor to any parties as at December 31, 2011.

Effective November 1, 2011, we entered into a consulting agreement with 1367826 Ontario Limited (“OntarioCo”) and Robbie Manis, pursuant to which OntarioCo is to provide certain consulting services to our company including: sourcing and implementing new business opportunities; raising financing reasonably required from time to time by our company; coordinating all required accounting, reporting and disclosure; and fulfilling any other needed administrative functions. As consideration for the performance of the consulting services under the agreement, we agreed to pay OntarioCo the sum of US$4,166.67 per month for the duration of the agreement, exclusive of any applicable sales tax. The agreement is for an indefinite period unless terminated by either party with sixty days advance written notice to the other party.

Effective November 1, 2011, we entered into a consulting agreement with Kerry Chow, pursuant to which Kerry Chow will provide certain consulting services to our company including: maintaining the accounting books and records on behalf of our company and our subsidiaries; preparing consolidated quarterly and annual financial statements for our company and our subsidiaries as well as assisting in the preparation of the related disclosure documents; coordinating the quarterly reviews and annual audits on behalf of our company and our subsidiaries; coordinating the preparation and filing of the annual income tax returns of our company and our subsidiaries; and any other accounting-related functions. As consideration for the performance of the consulting services under the agreement, we agreed to pay Kerry Chow the sum of US$833.33 per month for the duration of the agreement, exclusive of any applicable sales tax. The agreement is for an indefinite period unless terminated by either party with sixty days advance written notice to the other party.

See Note 11.

60



Online Disruptive Technologies, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
December 31, 2011

Note 11 – Subsequent Events

On February 13, 2012, the Company executed a $25,000 loan agreement with an unrelated third party lender. The amount is unsecured and non-interest bearing. The loan shall be converted to common stock of the Company at the same per share price applicable to the next issuance by the Company of common shares (the “Next Equity Financing”). Such conversion shall take place contemporaneous with the closing of the Next Equity Financing with the subject common shares being issued to such persons as directed by the lender. The loan shall not have any fixed repayment term and shall be retired upon the loan conversion.

Note 12 – Comparative Figures

Certain comparative figures have been reclassified in order to conform to the current period’s financial statement presentation.

61


ONLINE DISTRUPTIVE TECHNOLOGIES, INC.

(A Development Stage Company)

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED DECEMBER 31, 2010

62



Chang Lee LLP
Chartered Accountants
606 – 815 Hornby Street
Vancouver, B.C, V6Z 2E6
Tel: 604-687-3776
Fax: 604-688-3373
E-mail: info@changleellp.com

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of

ONLINE DISRUPTIVE TECHNOLOGIES, INC.
(A Development Stage Company)

We have audited the accompanying consolidated balance sheets of Online Disruptive Technologies, Inc. (“the Company”) (a development stage company) as at December 31, 2010 and 2009 and the related consolidated statements of operations and comprehensive loss, stockholders’ deficiency and cash flows for the year ended December 31, 2010, for the period from November 16, 2009 (date of inception) to December 31, 2009 and for the period cumulative from November 16, 2009 (date of inception) to December 31, 2010. 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 audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as at December 31, 2010 and 2009 and the results of its operations and its cash flows for the year ended December 31, 2010, for the period from November 16, 2009 (date of inception) to December 31, 2009 and for the period cumulative from November 16, 2009 (date of inception) to December 31, 2010, in conformity with accounting principles generally accepted in the United States of America.

The accompanying financial statements have been prepared assuming the Company will continue as a going concern. As discussed in Note 1 to the financial statements, the Company incurred losses from operations since inception, has not attained profitable operations and is dependent upon obtaining adequate financing to fulfill its business operations. These factors raise substantial doubt about the Company's ability to continue as a going concern. Management's plans in regard to these matters are also discussed in Note 1. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

Vancouver, Canada  
March 7, 2011 Chartered Accountants 

63



Online Disruptive Technologies, Inc.
(A Development Stage Company)
Consolidated Balance Sheets

    December 31,     December 31,  
    2010     2009  
  $    $   
ASSETS            
             
Current Assets            
Cash and Cash Equivalents   13,658     8  
Total Current Assets   13,658     8  
             
Website Development Costs (Note 4)   8,325     -  
Total Assets   21,983     8  
             
LIABILITIES            
             
Current Liabilities            
Accounts Payable and Accrued Liabilities   19,948     787  
Loans Payable - Related Parties (Note 5)   56,862     -  
Total Current Liabilities   76,810     787  
             
SHAREHOLDERS' DEFICIENCY            
Authorized:
  20,000,000 Preferred Shares, par value $0.001
  500,000,000 Common Shares, par value $0.001
 

   

 
             
Issued and outstanding:
  Nil Preferred Shares
  18,000,100 Common Shares
 

2,400
   

400
 
Additional Paid-in Capital   10,008     -  
(Deficit) Accumulated During the Development Stage   (67,235 )   (1,179 )
Total Shareholders’ Deficiency   (54,827 )   (779 )
Total Liabilities and Shareholders' Deficiency   21,983     8  

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

64



Online Disruptive Technologies, Inc.
(A Development Stage Company)
Consolidated Statements of Operations and Comprehensive Loss

          For the period     For the period  
          from     from  
          November 16,     November 16,  
          2009     2009  
    Year Ended     (inception) to     (inception) to  
    December 31,     December 31,     December 31,  
    2010     2009     2010  
General and Administrative Expenses $    $    $   
Accounting Fees   500     -     500  
Audit & Tax Fees   29,322     -     29,322  
Bank Fees   527     67     594  
Consulting Fees   1,500     -     1,500  
Filing and Transfer Agent Fees   6,091     -     6,091  
License and Permit Fees   732     325     1,057  
Legal fees   24,375     767     25,142  
Web domain Expense         20     20  
    63,047     1,179     64,226  
                   
(Loss) before other expense   (63,047 )   (1,179 )   (64,226 )
Other Expense                  
Interest Expense   3,009     -     3,009  
                   
Net Loss and Comprehensive Loss for the Period   (66,056 )   (1,179 )   (67,235 )
                   
                   
Basic and Diluted Net Loss per Common Share   (0.00 )   (0.00 )      
                   
Weighted Average Number of Common Shares
Outstanding – Basic and Diluted
 
17,545,283
   
16,000,000
   
 

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

65



Online Disruptive Technologies, Inc.
(A Development Stage Company)
Consolidated Statements of Stockholders’ Deficiency
For the period from November 16, 2009 to December 31, 2010

                                (Deficit)        
                                Accumulated        
                          Additional     During the        
  Preferred Stock     Common Stock     Paid In     Development        
  Shares     Amount     Shares     Amount     Capital     Stage     Total  
         $         $    $    $    $   
Shares issued for cash at $0.0001 per share on November 16, 2009 -     -     1,000     -     -     -     -  
Shares issued for cash at $0.000025 per share on December 5, 2009 -     -     15,999,000     400     -     -     400  
Net loss for the period -     -     -     -     -     (1,179 )   (1,179 )
Balance December 31, 2009 -     -     16,000,000     400     -     (1,179 )   (779 )
Recapitalization - ODT -     -     2,000,100     2,000     6,999     -     8,999  
Imputed interest from shareholders -     -     -     -     3,009     -     3,009  
Net loss for the year -     -     -     -     -     (66,056 )   (66,056 )
Balance December 31, 2010 -     -     18,000,100     2,400     10,008     (67,235 )   (54,827 )

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

66



Online Disruptive Technologies, Inc.
(A Development Stage Company)
Consolidated Statements of Cash Flows

          For the period     For the period  
          from November     from November  
          16, 2009     16, 2009  
    Year Ended     (inception) to     (inception) to  
    December 31,     December 31,     December 31,  
    2010     2009     2010  
Cash flow from Operating Activities $    $    $   
Net loss for the period   (66,056 )   (1,179 )   (67,235 )
Adjustment for items not involving cash:                  
Imputed interest   3,009     -     3,009  
Changes in non-cash working capital items:                  
Increase in accounts payable and accrued liabilities   8,700     787     9,487  
Net Cash (Used in) Operating Activities   (54,347 )   (392 )   (54,739 )
Cash flow from Financing Activities                  
Common shares issued, net of issuance costs   -     400     400  
Increase in loan payable – related parties   56,862     -     56,862  
Net Cash Provided by Financing Activities   56,862     400     57,262  
Cash flow from Investing Activities                  
Cash acquired on acquisition of subsidiary   14,910     -     14,910  
Website development costs   (3,775 )   -     (3,775 )
Net Cash Provided by Investing Activities   11,135     -     11,135  
Net Increase in Cash and Cash equivalents   13,650     8     13,658  
Cash and Cash equivalents, Beginning of Period   8     -     -  
Cash and Cash equivalents, End of Period   13,658     8     13,658  
Supplementary Information                  
Interest Paid   -     -     -  
Income Taxes Paid   -     -     -  

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

67



Online Disruptive Technologies, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
December 31, 2010

Note 1 - Nature of Operations

Online Disruptive Technologies, Inc. (“ODT” or the “Company”) was incorporated on November 16, 2009 in the State of Nevada, U.S.A. The Company is in the business of operating websites with advertising revenue platforms. The Company has limited operations and in accordance with ASC 915, is considered a development stage company that has had no revenues from inception to date. The Company has a December 31 year-end.

Effective March 24, 2010, the Company acquired 100% of the issued and outstanding shares of RelationshipScoreboard.com Entertainment Inc. (“RS” or “RelationshipScoreboard.com”), a company incorporated on November 16, 2009 in the state of Nevada, U.S.A. in exchange for 16,000,000 shares of the Company’s common stock. Upon the completion of the acquisition, the former sole shareholder of RS is holding 89% of the Company’s issued and outstanding common stock. As a result, the transaction was accounted for as a reverse takeover transaction (“RTO”) for accounting purpose, as RS was deemed to be the acquirer, and these consolidated financial statements are a continuation of the financial statements of RS. The carrying amounts of RS’s assets and liabilities are included in these consolidated financial statements and 2009 comparative figures are those of RS. The consolidated statement of operations included the operations of RS for the year ended December 31, 2010 and the operations of ODT from March 25, 2010 to December 31, 2010.

These financial statements have been prepared with the on-going assumption that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. The Company suffered recurring loss and had a working capital deficit of $63,151 as at December 31, 2010 (2009 – a working capital deficit of $779) which raises substantial doubt about the Company’s ability to continue as a going concern. These financial statements do no include any adjustments to the amounts and classification of assets and liabilities that might be necessary should the Company be unable to continue as a going concern.

The operations of the Company have primarily been funded by the sale of common shares and loans received. Continued operations of the Company are dependent on the Company’s ability to complete equity financings or generate profitable operations in the future. Management’s plan in this regard is to secure additional funds through future equity financings. Such financings may not be available or may not be available on reasonable terms to the Company.

Note 2 – Acquisition - ODT

In connection with the RTO described above and prior to the acquisition, ODT had no business and did not meet the definition of a business under ASC 805, “Accounting for Business Combinations”. Accordingly, the reverse takeover of ODT by RS has been accounted for as a capital transaction, in respect of which the net assets of ODT on March 24, 2010 were accounted for as a recapitalization of RS. A breakdown of ODT’s net assets as at March 24, 2010 is as follows:

    March 24, 2010  
Total assets – cash only $  14,910  
Total liabilities   (5,911 )
       
Net assets acquired $  8,999  

68



Online Disruptive Technologies, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
December 31, 2010

Note 3 - Significant Accounting Policies

a) Basis of Presentation
These financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“US GAAP”). All adjustments considered necessary for a fair presentation of financial position, results of operations and cash flows as at December 31, 2010 have been included.

b) Accounting Method
The Company’s financial statements are prepared using the accrual method of accounting.

c) Use of Estimates
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant areas require use of estimates include valuation allowance for deferred income tax assets. Actual results could differ from those estimates.

d) Foreign Currency Translation
The Company’s functional currency is U.S. dollars. Transactions in other currencies are recorded in U.S. dollars at the rates of exchange prevailing when the transactions occur. Monetary assets and liabilities denominated in other currencies are translated into U.S. dollars at rates of exchange in effect at the balance sheet dates. Exchange gains and losses are recorded in the statements of operations.

e) Cash and Cash Equivalents
Cash and cash equivalents consist entirely of readily available cash balances. There was no cash equivalents as of December 31, 2010 and 2009.

f) Stock-based Compensation
The Company accounts its stock options and similar equity instruments issued in accordance with ASC 718, “Share-Based Payment”. Accordingly, compensation costs attributable to stock options or similar equity instruments granted are measured at the fair value at the grant date, and expensed over the expected vesting period. ASC 718 requires excess tax benefits be reported as a financing cash inflow rather than as a reduction of taxes paid.

As at December 31, 2010 the Company had no stock options issued and outstanding.

g) Revenue Recognition
Operating revenue consist of advertising revenue. The point in time at which revenues are recognized is determined in accordance with ASC 605-10 (formerly Staff Accounting Bulletin No. 104, “Revenue Recognition”). Revenues are recorded when the Company delivers services to its customers and collection is reasonably estimated.

69



Online Disruptive Technologies, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
December 31, 2010

Note 3 - Significant Accounting Policies (cont’d)

h) Income Taxes
Income taxes are accounted for under the liability method of accounting for income taxes. Under the liability method, deferred tax liabilities and assets are recognized for the estimated future tax consequences attributable to differences between the amounts reported in the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted or substantially enacted income tax rates expected to apply when the asset is realized or the liability is settled. The effect of a change in income tax rates on deferred income tax liabilities and assets is recognized in income in the period that the change occurs. Deferred income tax assets are recognized to the extent that they are considered more likely than not to be realized.

The Financial Accounting Standards Board (FASB) has issued FASB ASC 740-10, “Accounting for Uncertainty in Income Taxes”. ASC 740-10 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements in accordance with prior literature FASB Statement No. 109, Accounting for Income Taxes. This standard requires a company to determine whether it is more likely than not that a tax position will be sustained will be sustained upon examination based upon the technical merits of the position. If the more-likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements. The implementation of this standard had no impact on the Company’s financial statements.

i) Comprehensive Income (Loss)
The Company accounts for comprehensive income under the provisions of ASC Topic 220-10, Comprehensive Income - Overall, which establishes standards for reporting and display of comprehensive income, its components and accumulated balances. The Company is disclosing this information on its Statements of Operations and Comprehensive Loss.

j) Earnings (Loss) Per Share
The Company adopted Financial Accounting Standards ASC subtopic 260-10, “Earnings Per Share”, which simplifies the computation of earning per share requiring the restatement of all prior periods.

Basic loss per share is computed on the basis of the weighted average number of common shares outstanding during each year.

Diluted loss per share is computed on the basis of the weighted average number of common shares and dilutive securities outstanding. For the years ended December 31, 2010 and December 31, 2009, the basic loss per share is equal to the diluted loss per share as there are no potential dilutive securities.

k) Financial Instruments and Fair Value of Financial Instruments
Fair Value of Financial Instruments – the Company adopted SFAS ASC 820-10-50, “Fair Value Measurements”. This guidance defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The three levels are defined as follows:

70



Online Disruptive Technologies, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
December 31, 2010

Note 3 - Significant Accounting Policies (cont’d)

k) Financial Instruments and Fair Value of Financial Instruments (cont’d)

  • Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

  • Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

  • Level 3 inputs to valuation methodology are unobservable and significant to the fair measurement.

The carrying amounts reported in the balance sheets for the cash and cash equivalents, accounts payable and accrued liabilities and loan payable each qualify as financial instruments and are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization.

l) Website Development Costs
Website development costs relate to the development of the Company's Internet website. These costs have been capitalized as incurred and installed, and are being amortized over the estimated useful life of three years on a straight line basis. The Company accounts for these costs in accordance with ASC 350, Intangibles, which specifies the appropriate accounting for costs incurred in connection with the development and maintenance of websites.

m) Recently Adopted Accounting Pronouncements
In June 2009, the FASB ASC 860-10, “Accounting for Transfers of Financial Assets,” eliminates the concept of a qualifying special-purpose entity (“QSPE”), clarifies and amends the de-recognition criteria for a transfer to be accounted for as a sale, amends and clarifies the unit of account eligible for sale accounting and requires that a transferor initially measure at fair value and recognize all assets obtained and liabilities incurred as a result of a transfer of an entire financial asset or group of financial assets accounted for as a sale. This standard is effective for fiscal years beginning after November 15, 2009. The Company has adopted this standard on January 1, 2010 and has assessed that the adoption of this standard has no material effect on its financial statements.

In June 2009, the FASB issued FASB ASC 810-10-65 which amends the consolidation guidance applicable to a variable interest entity (“VIE”). This standard also amends the guidance governing the determination of whether an enterprise is the primary beneficiary of a VIE, and is therefore required to consolidate an entity, by requiring a qualitative analysis rather than a quantitative analysis. Previously, the standard required reconsideration of whether an enterprise was the primary beneficiary of a VIE only when specific events had occurred. This standard is effective for fiscal years beginning after November 15, 2009, and for interim periods within those fiscal years. Early adoption is prohibited. The Company has adopted this standard on January 1, 2010 and has assessed that the adoption of this standard has no material effect on its financial statements.

71



Online Disruptive Technologies, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
December 31, 2010

Note 3 - Significant Accounting Policies (cont’d)

m) Recently Adopted Accounting Pronouncements (cont’d)
In September 2009, the FASB issued Accounting Standards Update 2009-12, Fair Value Measurements and Disclosures (Topic 820): Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent). This update provides amendments to Topic 820 for the fair value measurement of investments in certain entities that calculate net asset value per share (or its equivalent). It is effective for interim and annual periods ending after December 15, 2009. Early application is permitted in financial statements for earlier interim and annual periods that have not been issued. The Company has adopted this standard January 1, 2010 and has assessed that the adoption of this standard has no material effect on its financial statements.

In July 2009, the FASB ratified the consensus reached by EITF (Emerging Issues Task Force) issued EITF No. 09-1, (ASC Topic 470) "Accounting for Own-Share Lending Arrangements in Contemplation of Convertible Debt Issuance" ("EITF 09-1"). The provisions of EITF 09-1, clarifies the accounting treatment and disclosure of share-lending arrangements that are classified as equity in the financial statements of the share lender. An example of a share-lending arrangement is an agreement between the Company (share lender) and an investment bank (share borrower) which allows the investment bank to use the loaned shares to enter into equity derivative contracts with investors. EITF 09-1 is effective for fiscal years that begin on or after December 15, 2009 and requires retrospective application for all arrangements outstanding as of the beginning of fiscal years beginning on or after December 15, 2009. Share-lending arrangements that have been terminated as a result of counterparty default prior to December 15, 2009, but for which the entity has not reached a final settlement as of December 15, 2009 are within the scope. The Company has adopted this standard on January 1, 2010 and has assessed that the adoption of this standard has no material effect on its financial statements.

In January 2010, the FASB issued Accounting Standards Update 2010-01, Equity (Topic 505): Accounting for Distributions to Shareholders with Components of Stock and Cash (A Consensus of the FASB Emerging Issues Task Force). This amendment to Topic 505 clarifies the stock portion of a distribution to shareholders that allows them to elect to receive cash or stock with a limit on the amount of cash that will be distributed is not a stock dividend for purposes of applying Topics 505 and 260. Effective for interim and annual periods ending on or after December 15, 2009, and would be applied on a retrospective basis. The Company has adopted this standard on January 1, 2010 and has assessed that the adoption of this standard has no material effect on its financial statements.

In January 2010, the FASB issued Accounting Standards Update 2010-02, Consolidation (Topic 810): Accounting and Reporting for Decreases in Ownership of a Subsidiary. This amendment to Topic 810 clarifies, but does not change, the scope of current US GAAP. It clarifies the decrease in ownership provisions of Subtopic 810-10 and removes the potential conflict between guidance in that Subtopic and asset derecognition and gain or loss recognition guidance that may exist in other US GAAP. An entity will be required to follow the amended guidance beginning in the period that it first adopts FAS 160 (now included in Subtopic 810-10). For those entities that have already adopted FAS 160, the amendments are effective at the beginning of the first interim or annual reporting period ending on or after December 15, 2009. The amendments should be applied retrospectively to the first period that an entity adopted FAS 160. The Company has adopted this standard on January 1, 2010 and has assessed that the adoption of this standard has no material effect on its financial statements.

72



Online Disruptive Technologies, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
December 31, 2010

Note 3 - Significant Accounting Policies (cont’d)

n) Recently Issued Accounting Pronouncements
In October 2009, the FASB issued Accounting Standards Update 2009-13, Revenue Recognition (Topic 605): Multiple-Deliverable Revenue Arrangements. This update addressed the accounting for multiple-deliverable arrangements to enable vendors to account for products or services (deliverables) separately rather than a combined unit and will be separated in more circumstances that under existing US GAAP. This amendment has eliminated that residual method of allocation. Effective prospectively for revenue arrangements entered into or materially modified in fiscal years beginning on or after June 15, 2010. Early adoption is permitted. The Company does not expect the provisions of ASU 2009-13 to have a material effect on the financial position, results of operations or cash flows of the Company.

In October 2009, the FASB issued Accounting Standards Update 2009-14, Software (Topic 985): Certain Revenue Arrangements That Include Software Elements. This update changed the accounting model for revenue arrangements that include both tangible products and software elements. Effective prospectively for revenue arrangements entered into or materially modified in fiscal years beginning on or after June 15, 2010. Early adoption is permitted. The Company does not expect the provisions of ASU 2009-14 to have an effect on the financial position, results of operations or cash flows of the Company.

In January 2010, the FASB issued ASU No. 2010-06 regarding fair value measurements and disclosures and improvement in the disclosure about fair value measurements. This ASU requires additional disclosures regarding significant transfers in and out of Levels 1 and 2 of fair value measurements, including a description of the reasons for the transfers. Further, this ASU requires additional disclosures for the activity in Level 3 fair value measurements, requiring presentation of information about purchases, sales, issuances, and settlements in the reconciliation for fair value measurements. This ASU is effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. The Company is currently evaluating the impact of this ASU; however, the Company does not expect the adoption of this ASU to have a material impact on our financial statements.

In February 2010, the FASB issued ASC No. 2010-09, “Amendments to Certain Recognition and Disclosure Requirements”, which eliminates the requirement for SEC filers to disclose the date through which an entity has evaluated subsequent events. ASC No. 2010-09 is effective for its fiscal quarter beginning after December 15, 2010. The adoption of ASC No. 2010-09 is not expected to have a material impact on the Company’s financial statements ASU No. 2010-13 was issued in April 2010, and clarified the classification of an employee share based payment award with an exercise price denominated in the currency of a market in which the underlying security trades. This ASU will be effective for the first fiscal quarter beginning after December 15, 2010, with early adoption permitted. The adoption of ASU No. 2010-13 is not expected to have a material impact on the Company’s financial statements.

In April 2010, the FASB codified the consensus reached in Emerging Issues Task Force Issue No. 08-09, “Milestone Method of Revenue Recognition.” FASB ASU No. 2010-17 “Revenue Recognition –Milestone Method (Topic 605)” provides guidance on defining a milestone and determining when it may be appropriate to apply the milestone method of revenue recognition for research and development transactions. FASB ASU No. 2010 – 17 is effective for fiscal years beginning on or after June 15, 2010, and is effective on a prospective basis for milestones achieved after the adoption date. The Company does not expect this ASU will have a material impact on its financial position or results of operations.

73



Online Disruptive Technologies, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
December 31, 2010

Note 3 - Significant Accounting Policies (cont’d)

n) Recently Issued Accounting Pronouncements (cont’d)
On March 5, 2010, the FASB issued ASU No. 2010-11 Derivatives and Hedging Topic 815 “Scope Exception Related to Embedded Credit Derivatives.” This ASU clarifies the guidance within the derivative literature that exempts certain credit related features from analysis as potential embedded derivatives requiring separate accounting. The ASU specifies that an embedded credit derivative feature related to the transfer of credit risk that is only in the form of subordination of one financial instrument to another is not subject to bifurcation from a host contract under ASC 815-15-25, “Derivatives and Hedging — Embedded Derivatives — Recognition.” All other embedded credit derivative features should be analyzed to determine whether their economic characteristics and risks are “clearly and closely related” to the economic characteristics and risks of the host contract and whether bifurcation is required. The adoption of this ASU did not have a material impact on the Company’s financial statements.

In April 2010, the FASB issued ASU 2010-13, “Compensation—Stock Compensation (Topic 718): Effect of Denominating the Exercise Price of a Share-Based Payment Award in the Currency of the Market in Which the Underlying Equity Security Trades,” or ASU 2010-13. This ASU provides amendments to Topic 718 to clarify that an employee share-based payment award with an exercise price denominated in currency of a market in which a substantial portion of the entity’s equity securities trades should not be considered to contain a condition that is not a market, performance, or service condition. Therefore, an entity would not classify such an award as a liability if it otherwise qualifies as equity. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2010. The Company does not expect the adoption of ASU 2010-13 to have a significant impact on its financial statements.

In May 2010, the FASB 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 a material effect on the Company's financial position, results of operations or cash flows of the Company.

Other accounting pronouncements that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s financial statements upon adoption.

Note 4 – Website Development Costs

During the 201 fiscal year, the Company incurred and capitalized $8,325 related to its ongoing website development. Upon the completion of the website, the capitalized website costs will be amortized over its estimated useful life of 3 years. As at December 31, 2010, the website has not yet been completed.

74



Online Disruptive Technologies, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
December 31, 2010

Note 5 – Loans Payable – Related Parties

As at December 31, 2010, the loans payable included the following:

  • $56,462 payable to a shareholder of the Company. The amount is unsecured, non-interest bearing and due on demand.
  • $400 payable to a director and principal shareholder of the Company. The amount is unsecured, non-interest bearing and due on demand.

During the year ended December 31, 2010, the Company recorded imputed interest on the loans payable from related parties at a market rate of 11.5% thereby leading to the recognition of interest expense of $3,009. A corresponding amount was classified as additional paid-in capital.

Note 6 – Related Party Transactions

See Note 5.

Note 7 – Stockholders’ Equity

On March 24, 2010, the Company issued 16,000,000 common shares to the sole shareholder of RS to effect the acquisition and RTO. Prior to the acquisition and RTO (Note 1 and 2), RS engaged in the following equity transactions which have been restated using the exchange ratio established in the acquisition agreement to reflect 16,000,000 common shares issued in the reverse acquisition:

  • On November 16, 2009, RS issued 1,000 common shares at $0.0001 per share for total proceeds of $0.1.
  • On December 5, 2009, RS issued 15,999,000 common shares at $0.000025 per share for total proceeds of $400.

Prior to the acquisition and RTO (Note 1 and 2), the Company engaged in the followings equity transactions:

  • On November 16, 2009, the Company issued 100 common shares at $0.001 per share for total proceeds of $0.10.
  • On December 2, 2009, the Company issued 200,000 common shares at $0.01 per share for total proceeds of $2,000.
  • On January 7, 2010, the Company issued 1,800,000 common shares at $0.01 per share for total proceeds of $18,000.

Upon the acquisition and RTO, 2,000,100 common shares issued by the Company prior to the acquisition were considered as a recapitalization to RS.

75



Online Disruptive Technologies, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
December 31, 2010

Note 8 – Income Taxes

The Company is subject to income tax laws in the U.S. The Company incurred a net loss for the year ended December 31, 2010 and therefore did not incur income tax expense.

A reconciliation of the federal statutory income tax, at the statutory rate of 15% to the Company’s effective income tax rate, for the year ended December 31, 2010 and for the period from November 16, 2009 to December 31, 2009 is as follows:

            For the period from  
      For the year ended     November 16, 2009 to  
      December 31, 2010     December 31, 2009  
       
  Net loss from operations   (66,056 )   (1,179 )
  Statutory tax rate   15%     15%  
  Income tax recovery   (9,908 )   (177 )
  Non-deductible item   451     -  
  Benefits not recognized   9,457     177  
  Income tax expense (recovery)   -     -  

The significant components of deferred income tax assets (liabilities) are as follows:

      December 31, 2010     December 31, 2009  
       
  Non-capital loss carry forwards   11,284     177  
  Valuation allowance   (11,284 )   (177 )
  Deferred income tax assets   -     -  

The valuation allowances for deferred tax assets as of December 31, 2010 and 2009 were $11,284 and $177 respectively. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible.

As at December 31, 2010, the Company has non-capital loss carry forwards totalling $75,227 available to reduce taxable income otherwise calculated in future years. These losses expire from 2029 to 2030.

Note 9 – Subsequent Events

On February 24, 2011, the Company completed an equity financing pursuant to which it issued 6,000,000 common shares at a per share price of $0.01 for aggregate proceeds of $60,000. The offering was completed in accordance with a prospectus filed by the Company on December 29, 2010.

In preparing these financial statements, the Company has evaluated events and transactions for potential recognition or disclosure from January 1, 2011 through March 8, 2011, the date the financial statements were available to be issued.

76



Online Disruptive Technologies, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
December 31, 2010

Note 10 – Commitments and Guarantees

The Company did not enter into any commitments nor did it become a guarantor to any parties as at December 31, 2010.

Note 10 – Comparative Figures

Certain comparative figures have been reclassified in order to conform to the current period’s financial statement presentation.

77


ONLINE DISRUPTIVE TECHNOLOGIES, INC.

(A Development Stage Company)

FINANCIAL STATEMENTS

DECEMBER 31, 2009

78



Chang Lee LLP
Chartered Accountants
606 – 815 Hornby Street
Vancouver, B.C, V6Z 2E6
Tel: 604-687-3776
Fax: 604-688-3373
E-mail: info@changleellp.com

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of

ONLINE DISRUPTIVE TECHNOLOGIES, INC.
(A Development Stage Company)

We have audited the accompanying balance sheet of Online Disruptive Technologies, Inc. (“the Company”) (a development stage company) as at December 31, 2009 and the related statements of operations and comprehensive loss, stockholders’ deficiency and cash flows for the period from November 16, 2009 (date of inception) to December 31, 2009. 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 audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as at December 31, 2009 and the results of its operations and its cash flows for the period from November 16, 2009 (date of inception) to December 31, 2009, in conformity with accounting principles generally accepted in the United States of America.

The accompanying financial statements have been prepared assuming the Company will continue as a going concern. As discussed in Note 1 to the financial statements, the Company incurred losses from operations since inception, has not attained profitable operations and is dependent upon obtaining adequate financing to fulfill its business operations. These factors raise substantial doubt about the Company's ability to continue as a going concern. Management's plans in regard to these matters are also discussed in Note 1. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Vancouver, Canada
September 13, 2010
Chartered Accountants

79



Online Disruptive Technologies, Inc.
(A Development Stage Company)
Balance Sheet
As at December 31, 2009

    2009  
       
ASSETS      
       
Current Assets      
Cash and Cash Equivalents $  1,578  
Total Assets $  1,578  
       
LIABILITIES      
       
Current Liabilities      
Accounts Payable and Accrued Liabilities $  599  
Loan Payable (Note 3)   2,142  
Total Current Liabilities   2,741  
       
SHAREHOLDERS' (DEFICIENCY)      
Authorized:      
 20,000,000 Preferred Shares, par value $0.001      
 500,000,000 Common Shares, par value $0.001      
       
Issued and outstanding:      
 Nil Preferred shares   -  
 200,100 Common shares   200  
Additional Paid-in Capital   1,800  
(Deficit) Accumulated During the Development Stage   (3,163 )
Total Shareholders’ (Deficiency)   (1,163 )
Total Liabilities and Shareholders' (Deficiency) $  1,578  

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

80



Online Disruptive Technologies Inc.
(A Development Stage Company)
Statement of Operations and Comprehensive (Loss)

    For the period from  
    November 16, 2009  
    (inception) to  
    December 31, 2009  
General and Administrative Expenses      
 Bank Fees $  97  
 License and Permit Fees   325  
 Legal Fees   2,741  
    3,163  
       
Net (Loss) and Comprehensive (Loss) for the Period $  (3,163 )
       
Basic and Diluted Net (Loss) per Common Share $  (0.02 )
       
Weighted Average Number of Common Shares Outstanding – Basic and Diluted   133,433  

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

81



Online Disruptive Technologies Inc.
(A Development Stage Company)
Statement of Stockholders’ (Deficiency)
For the period from November 16, 2009 (inception) to December 31, 2009

                                  (Deficit)        
                                  Accumulated        
                            Additional     During the        
  Preferred Stock     Common Stock     Paid-in     Development        
  Shares     Amount     Shares     Amount     Capital     Stage     Total  
                                           
Share issued for cash at $0.001 per share on November 16, 2009 - $ - 100 $ - $ - $ - $ -
Share issued for cash at $0.01 per share on December 2, 2009 - - 200,000 200 1,800 - 2,000
Net (loss) for the period   -     -     -     -     -     (3,163 )   (3,163 )
                                           
Balance, December 31, 2009   -   $ -      200,100   $  200   $  1,800   $  (3,163 ) $  (1,163 )

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

82



Online Disruptive Technologies, Inc.
(A Development Stage Company)
Statement of Cash Flows

  For the Period from  
  November 16, 2009  
  (inception) to  
  December 31, 2009  
Cash flow from Operating Activities $  
Net (Loss) for the Period (3,163 )
Changes in Operating Assets and Liabilities    
Increase in Accounts Payable and Accrued Liabilities 599  
Net Cash (Used in) Operating Activities (2,564 )
     
Cash flow from Financing Activities    
Common shares issued 2,000  
Increase in Loan Payable 2,142  
Net Cash Provided by Financing Activities 4,142  
     
Net Increase in Cash and Cash equivalents 1,578  
Cash and Cash equivalents, Beginning of Period -  
     
Cash and Cash equivalents, End of Period 1,578  
Supplementary Information    
Interest Paid -  
Income Taxes Paid -  

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

83



Online Disruptive Technologies, Inc.
(A Development Stage Company)
Notes to Financial Statements
December 31, 2009

Note 1 - Nature of Operations

Online Disruptive Technologies, Inc. (“ODT” or the “Company”) was incorporated on November 16, 2009 in the State of Nevada, U.S.A. The entity was established to explore investment opportunities in operation of websites with advertising revenue platforms. The Company has limited operations and in accordance with ASC 915, is considered a development stage company that has had no revenues from inception to date. The Company has a December 31 year-end.

These financial statements have been prepared with the on-going assumption that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. As shown in the accompanying financial statements, the Company has incurred operating losses since inception and further losses are anticipated in the development of our business. As of December 31, 2009, the Company has limited financial resources and require additional financing to fund its operations. These factors raise substantial doubt about the Company’s ability to continue as a going concern. These financial statements do no include any adjustments to the amounts and classification of assets and liabilities that might be necessary should the Company be unable to continue as a going concern.

The operations of the Company have primarily been funded by the sale of common shares and loans received. Continued operations of the Company are dependent on the Company’s ability to complete equity financings or generate profitable operations in the future. Management’s plan in this regard is to secure additional funds through future equity financings. Such financings may not be available or may not be available on reasonable terms to the Company.

Note 2 - Significant Accounting Policies

a) Basis of Presentation

These financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“US GAAP”). All adjustments considered necessary for a fair presentation of financial position, results of operations and cash flows as at December 31, 2009 have been included.

b) Accounting Method

The Company’s financial statements are prepared using the accrual method of accounting.

c) Use of Estimates

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant areas require use of estimates include valuation allowance for deferred income tax assets. Actual results could differ from those estimates.

d) Foreign Currency Translation

The Company’s functional currency is U.S. dollars. Transactions in other currencies are recorded in U.S. dollars at the rates of exchange prevailing when the transactions occur. Monetary assets and liabilities denominated in other currencies are translated into U.S. dollars at rates of exchange in effect at the balance sheet dates. Exchange gains and losses are recorded in the statements of operations.

e) Cash and Cash Equivalents

Cash and cash equivalents consist entirely of readily available cash balances. There was no cash equivalent as of December 31, 2009.

84


Online Disruptive Technologies, Inc.
(A Development Stage Company)
Notes to Financial Statements
December 31, 2009

Note 2 - Significant Accounting Policies (cont’d)

f) Stock-based Compensation

The Company adopted ASC 718, “Share-Based Payment,” to account for its stock options and similar equity instruments issued. Accordingly, compensation costs attributable to stock options or similar equity instruments granted are measured at the fair value at the grant date, and expensed over the expected vesting period. ASC 718 requires excess tax benefits be reported as a financing cash inflow rather than as a reduction of taxes paid.

As at December 31, 2009, the Company has no stock option issued and outstanding.

g) Revenue Recognition

Operating revenue consist of advertising revenue. The point in time at which revenues are recognized is determined in accordance with ASC 605-10 (formerly Staff Accounting Bulletin No. 104, “Revenue Recognition”). Revenues are recorded when the Company delivers services to its customers and collection is reasonably estimated.

The Company has not generated any revenue since its inception.

h) Income Taxes

Income taxes are accounted for under the liability method of accounting for income taxes. Under the liability method, deferred tax liabilities and assets are recognized for the estimated future tax consequences attributable to differences between the amounts reported in the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted or substantially enacted income tax rates expected to apply when the asset is realized or the liability is settled. The effect of a change in income tax rates on deferred income tax liabilities and assets is recognized in income in the period that the change occurs. Deferred income tax assets are recognized to the extent that they are considered more likely than not to be realized.

The Financial Accounting Standards Board (FASB) has issued FASB ASC 740-10, “Accounting for Uncertainty in Income Taxes”. ASC 740-10 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements in accordance with prior literature FASB Statement No. 109, Accounting for Income Taxes. This standard requires a company to determine whether it is more likely than not that a tax position will be sustained upon examination based upon the technical merits of the position. If the more-likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements. The implementation of this standard has no impact on the Company’s financial statements.

i) Comprehensive Income (Loss)

The Company accounts for comprehensive income under the provisions of ASC Topic 220-10, “Comprehensive Income - Overall,” which establishes standards for reporting and display of comprehensive income, its components and accumulated balances. The Company is disclosing this information on its Statement of Operations and Comprehensive Loss.

85


Online Disruptive Technologies, Inc.
(A Development Stage Company)
Notes to Financial Statements
December 31, 2009

Note 2 - Significant Accounting Policies (cont’d)

j) Earnings (Loss) Per Share

The Company adopted Financial Accounting Standards ASC subtopic 260-10, “Earnings Per Share”, which simplifies the computation of earning per share requiring the restatement of all prior periods.

Basic loss per share is computed on the basis of the weighted average number of common shares outstanding during each year.

Diluted loss per share is computed on the basis of the weighted average number of common shares and dilutive securities outstanding. As at December 31, 2009, diluted loss per share is equal to basic loss per share as there was no other security instrument outstanding as at December 31, 2009.

k) Financial Instruments and Fair Value of Financial Instruments

Fair Value of Financial Instruments – the Company adopted SFAS ASC 820-10-50, “Fair Value Measurements”. This guidance defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The three levels are defined as follows:

Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

Level 3 inputs to valuation methodology are unobservable and significant to the fair measurement.

The carrying amounts reported in the balance sheets for the cash and cash equivalents, accounts payable and accrued liabilities, and loan payable each qualify as financial instruments and are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization.

l) Subsequent Event

The Company has adopted ASC 855, “Subsequent Events,” which establishes general standards of accounting for disclosure of events that occur after the balance sheet date but before financial statements are issued or available to be issued. It requires the disclosure of the date through which an entity has evaluated subsequent events and whether that date represents the date the financial statements were issued or were available to be issued.

In preparing these financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through January 1, 2010 and September 13, 2010, the date the financial statements were available to be issued.

86



Online Disruptive Technologies, Inc.
(A Development Stage Company)
Notes to Financial Statements
December 31, 2009

Note 2 - Significant Accounting Policies (cont’d)

m) Accounting Codification

On July 1, 2009, the FASB launched the “FASB Accounting Standards Codification” (the “FASB ASC”) as the single source of authoritative non-governmental U.S. GAAP. The FASB ASC did not change current U.S. GAAP, but simplified user access to all authoritative U.S. GAAP by organizing all the authoritative literature related to a particular topic in one place. All existing accounting standard documents were superseded and all other accounting literature not included in the FASB ASC is now considered non-authoritative. The adoption of the FASB ASC did not have an impact on the Company’s financial statements.

n) Recently Adopted Accounting Pronouncements

In September 2009, the FASB issued Accounting Standards Update 2009-12, Fair Value Measurements and Disclosures (Topic 820): Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent). This update provides amendments to Topic 820 for the fair value measurement of investments in certain entities that calculate net asset value per share (or its equivalent). It is effective for interim and annual periods ending after December 15, 2009. Early application is permitted in financial statements for earlier interim and annual periods that have not been issued. The Company adopted this standard for its fiscal year ended December 31, 2009 and has assessed that the adoption of this standard did not have a material effect on its financial statements.

In January 2010, the FASB issued Accounting Standards Update 2010-01, Equity (Topic 505): Accounting for Distributions to Shareholders with Components of Stock and Cash (A Consensus of the FASB Emerging Issues Task Force). This amendment to Topic 505 clarifies the stock portion of a distribution to shareholders that allows them to elect to receive cash or stock with a limit on the amount of cash that will be distributed is not a stock dividend for purposes of applying Topics 505 and 260. Effective for interim and annual periods ending on or after December 15, 2009, and would be applied on a retrospective basis. The Company adopted this standard for its fiscal year ended December 31, 2009 and has assessed that the adoption of this standard did not have a material effect on its financial statements.

In January 2010, the FASB issued Accounting Standards Update 2010-02, Consolidation (Topic 810): Accounting and Reporting for Decreases in Ownership of a Subsidiary. This amendment to Topic 810 clarifies, but does not change, the scope of current US GAAP. It clarifies the decrease in ownership provisions of Subtopic 810-10 and removes the potential conflict between guidance in that Subtopic and asset derecognition and gain or loss recognition guidance that may exist in other US GAAP. An entity will be required to follow the amended guidance beginning in the period that it first adopts FAS 160 (now included in Subtopic 810-10). For those entities that have already adopted FAS 160, the amendments are effective at the beginning of the first interim or annual reporting period ending on or after December 15, 2009. The amendments should be applied retrospectively to the first period that an entity adopted FAS 160. The Company adopted this standard for its fiscal year ended December 31, 2009 and has assessed that the adoption of this standard did not have a material effect on its financial statements.

o) Recently Issued Accounting Pronouncements

In June 2009, the FASB ASC 860-10, “Accounting for Transfers of Financial Assets,” eliminates the concept of a qualifying special-purpose entity (“QSPE”), clarifies and amends the de-recognition criteria for a transfer to be accounted for as a sale, amends and clarifies the unit of account eligible for sale accounting and requires that a transferor initially measure at fair value and recognize all assets obtained and liabilities incurred as a result of a transfer of an entire financial asset or group of financial assets accounted for as a sale. This standard is effective for fiscal years beginning after November 15, 2009. The Company is currently evaluating the potential impact of this standard on its financial statements, but does not expect it to have a material effect.

87



Online Disruptive Technologies, Inc.
(A Development Stage Company)
Notes to Financial Statements
December 31, 2009

Note 2 - Significant Accounting Policies (cont’d)

o) Recently Issued Accounting Pronouncements (cont’d)

In June 2009, the FASB issued FASB ASC 810-10-65 which amends the consolidation guidance applicable to a variable interest entity (“VIE”). This standard also amends the guidance governing the determination of whether an enterprise is the primary beneficiary of a VIE, and is therefore required to consolidate an entity, by requiring a qualitative analysis rather than a quantitative analysis. Previously, the standard required reconsideration of whether an enterprise was the primary beneficiary of a VIE only when specific events had occurred. This standard is effective for fiscal years beginning after November 15, 2009, and for interim periods within those fiscal years. Early adoption is prohibited. The Company is currently evaluating the potential impact of the adoption of this standard on its financial statements, but does not expect it to have a material effect.

In July 2009, the FASB ratified the consensus reached by EITF (Emerging Issues Task Force) issued EITF No. 09-1, (ASC Topic 470) "Accounting for Own-Share Lending Arrangements in Contemplation of Convertible Debt Issuance" ("EITF 09-1"). The provisions of EITF 09-1, clarifies the accounting treatment and disclosure of share-lending arrangements that are classified as equity in the financial statements of the share lender. An example of a share-lending arrangement is an agreement between the Company (share lender) and an investment bank (share borrower) which allows the investment bank to use the loaned shares to enter into equity derivative contracts with investors. EITF 09-1 is effective for fiscal years that beginning on or after December 15, 2009 and requires retrospective application for all arrangements outstanding as of the beginning of fiscal years beginning on or after December 15, 2009. Share-lending arrangements that have been terminated as a result of counterparty default prior to December 15, 2009, but for which the entity has not reached a final settlement as of December 15, 2009 are within the scope. The Company does not expect the provisions of EITF 09-1 to have a material effect on the financial position, results of operations or cash flows of the Company.

In October 2009, the FASB issued Accounting Standards Update 2009-13, Revenue Recognition (Topic 605): Multiple-Deliverable Revenue Arrangements. This update addressed the accounting for multiple-deliverable arrangements to enable vendors to account for products or services (deliverables) separately rather than a combined unit and will be separated in more circumstances that under existing US GAAP. This amendment has eliminated that residual method of allocation. Effective prospectively for revenue arrangements entered into or materially modified in fiscal years beginning on or after June 15, 2010. Early adoption is permitted. The Company does not expect the provisions of ASU 2009-13 to have a material effect on the financial position, results of operations or cash flows of the Company.

In January 2010, the FASB issued ASU No. 2010-06 regarding fair value measurements and disclosures and improvement in the disclosure about fair value measurements. This ASU requires additional disclosures regarding significant transfers in and out of Levels 1 and 2 of fair value measurements, including a description of the reasons for the transfers. Further, this ASU requires additional disclosures for the activity in Level 3 fair value measurements, requiring presentation of information about purchases, sales, issuances, and settlements in the reconciliation for fair value measurements. This ASU is effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. The Company is currently evaluating the impact of this ASU; however, the Company does not expect the adoption of this ASU to have a material impact on our financial statements.

88



Online Disruptive Technologies, Inc.
(A Development Stage Company)
Notes to Financial Statements
December 31, 2009

Note 2 - Significant Accounting Policies (cont’d)

o) Recently Issued Accounting Pronouncements (cont’d)

In February 2010, the FASB issued ASC No. 2010-09, “Amendments to Certain Recognition and Disclosure Requirements”, which eliminates the requirement for SEC filers to disclose the date through which an entity has evaluated subsequent events. ASC No. 2010-09 is effective for its fiscal quarter beginning after 15 December 2010. The adoption of ASC No. 2010-09 is not expected to have a material impact on the Company’s financial statements.

ASU No. 2010-13 was issued in April 2010, and clarified the classification of an employee share based payment award with an exercise price denominated in the currency of a market in which the underlying security trades. This ASU will be effective for the first fiscal quarter beginning after December 15, 2010, with early adoption permitted. The adoption of ASU No. 2010-13 is not expected to have a material impact on the Company’s financial statements.

Other accounting pronouncements that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s financial statements upon adoption.

Note 3 – Loans Payable

During the period, the Company borrowed $2,142 from an independent third party. The loan is unsecured, non-interest bearing and due on demand.

Subsequent to December 31, 2009, the independent third party purchased shares of the Company and became a shareholder. The Company further borrowed an additional $29,320 from the shareholder, resulting in total loan payable of $31,462.

Note 4 – Stockholders’ Equity

On November 16, 2009, the Company issued 100 common shares at $0.001 per share for total proceeds of $0.1.

On December 2, 2009, the Company issued 200,000 common shares at $0.01 per share for total proceeds of $2,000.

Note 5 – Income Taxes

The Company is subject to income tax laws in the U.S. The Company incurred a net loss for the period from November 16, 2009 to December 31, 2009 and therefore did not incur income tax expense.

A reconciliation of the federal statutory income tax, at the statutory rate of 15% to the Company’s effective income tax rate, for the period from November 16, 2009 to December 31, 2009 is as follows:

89



Online Disruptive Technologies, Inc.
(A Development Stage Company)
Notes to Financial Statements
December 31, 2009

Note 5 – Income Taxes (cont’d)

    For the period from  
    November 16, 2009  
    (inception) to  
    December 31, 2009  
  $    
Net loss from operations   (3,163 )
Statutory tax rate   15%  
Income tax recovery   (475 )
Unrecognized benefits of non-capital losses   475  
Income tax expense   -  

The significant components of deferred income tax assets (liabilities) are as follows:

    December 31, 2009  
  $    
Non-capital loss carry forwards   475  
Valuation allowance   (475 )
Deferred income tax asset   -  

The valuation allowance for deferred tax assets as of December 31, 2009 was $475. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible.

As at December 31, 2009, the Company has non-capital loss carry forwards of $3,163 available to reduce taxable income otherwise calculated in future years. This loss expires in 2029.

Note 6 – Subsequent Events

On January 7, 2010 the Company issued 1,800,000 common shares at $0.01 per share for a total of $18,000.

On March 24, 2010, the Company acquired Relationshipscoreboard.com Entertainment Inc. (“RS”) by issuing of 16,000,000 of the Company’s shares in exchange for 100% of RS shares. The acquisition is considered as a reverse-takeover as the shareholders of RS become the majority shareholders of the Company.

Subsequent to the year ended December 31, 2009, the Company is in the process of raising funds publicly through the sale of 6,000,000 common shares at a price of $0.01 per share.

Also see Note 3.

Note 7 – Commitments and Guarantees

The Company did not enter into any commitments nor did it become a guarantor to any parties during the period ended December 31, 2009.

90


RELATIONSHIPSCOREBOARD.COM ENTERTAINMENT INC.

(A Development Stage Company)

FINANCIAL STATEMENTS

DECEMBER 31, 2009

91



Chang Lee LLP
Chartered Accountants
606 – 815 Hornby Street
Vancouver, B.C, V6Z 2E6
Tel: 604-687-3776
Fax: 604-688-3373
E-mail: info@changleellp.com

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of

RELATIONSHIPSCOREBOARD.COM ENTERTAINMENT, INC.
(A Development Stage Company)

We have audited the accompanying balance sheet of Relationshipscoreboard.com Entertainment, Inc. (“the Company”) (a development stage company) as at December 31, 2009 and the related statements of operations and comprehensive loss, stockholders’ deficiency and cash flows for the period from November 16, 2009 (date of inception) to December 31, 2009. 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 audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as at December 31, 2009 and the results of its operations and its cash flows for the period from November 16, 2009 (date of inception) to December 31, 2009, in conformity with accounting principles generally accepted in the United States of America.

The accompanying financial statements have been prepared assuming the Company will continue as a going concern. As discussed in Note 1 to the financial statements, the Company incurred losses from operations since inception, has not attained profitable operations and is dependent upon obtaining adequate financing to fulfill its business operations. These factors raise substantial doubt about the Company's ability to continue as a going concern. Management's plans in regard to these matters are also discussed in Note 1. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Vancouver, Canada
September 13, 2010
Chartered Accountants

92



Relationshipscoreboard.com Entertainment Inc.
(A Development Stage Company)
Balance Sheet
As at December 31, 2009

    2009  
ASSETS      
Current Assets      
Cash and Cash Equivalents $  8  
Total Assets $  8  
LIABILITIES      
Current Liabilities      
Accounts Payable and Accrued Liabilities $  787  
Total Current Liabilities   787  
SHAREHOLDERS' (DEFICIENCY)      
Authorized:
100,000,000 common shares, par value $0.0001
 
 
Issued and Outstanding:
    1,600,000 common shares
 
160
 
Additional Paid-in Capital   240  
(Deficit) Accumulated During the Development Stage   (1,179 )
Total Shareholders’ (Deficiency)   (779 )
Total Liabilities and Shareholders' (Deficiency) $  8  

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

93



Relationshipscoreboard.com Entertainment Inc.
(A Development Stage Company)
Statements of Operations and Comprehensive (Loss)

    For the period from  
    November 16, 2009  
    (inception) to  
    December 31, 2009  
General and Administrative Expenses      
 Bank Fees $  67  
 License and Permit Fees   325  
 Legal Fees   767  
 Web domain Expense   20  
    1,179  
       
Net (Loss) and Comprehensive (Loss) for the Period $  (1,179 )
       
       
Basic and Diluted Net (Loss) per Common Share $  (0.00 )
       
Weighted average number of common shares outstanding – Basic and Diluted   939,172  

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

94



Relationshipscoreboard.com Entertainment Inc.
(A Development Stage Company)
Statement of Stockholders’ Deficiency
For the period from November 16, 2009 (inception) to December 31, 2009

                      (Deficit)        
                      Accumulated        
                Additional     During the        
    Common Stock     Paid-in     Development        
    Shares     Amount     Capital     Stage     Total  
                               
Shares issued for cash at $0.001 per share on November 16, 2009   100   $  -   $  -   $  -   $  -  
Shares issued for cash at $0.00025 per share on December 5, 2009   1,599,900     160     240     -     400  
Net (loss) for the period   -     -     -     (1,179 )   (1,179 )
                               
Balance, December 31, 2009   1,600,000   $  160   $  240   $  (1,179 ) $  (779 )

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

95



Relationshipscoreboard.com Entertainment Inc.
(A Development Stage Company)
Statement of Cash Flows

    For the Period  
    November 16, 2009  
    (inception) to  
    December 31, 2009  
Cash flow from Operating Activities $    
Net (Loss) for the Period   (1,179 )
Changes in Operating Assets and Liabilities      
Increase in Accounts Payable and Accrued Liabilities   787  
Net Cash (Used in) Operating Activities   (392 )
       
Cash flow from Financing Activities      
Common shares issued   400  
Net Cash Provided by Financing Activities   400  
Net Increase in Cash and Cash equivalents   8  
Cash and Cash equivalents, Beginning of Period   -  
       
Cash and Cash equivalents, End of Period   8  
Supplementary Information      
Interest Paid   -  
Income Taxes Paid   -  

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

96



Relationshipscoreboard.com Entertainment Inc.
(A Development Stage Company)
Notes to Financial Statements
December 31, 2009

Note 1 - Nature of Operations

Relationshipscoreboard.com Entertainment, Inc. (“RS” or the “Company”) was incorporated on November 16, 2009 in the State of Nevada, U.S.A. The Company was established to operate a website with an advertising revenue platform. The Company has limited operations and in accordance with ASC 915, is considered a development stage company that has had no revenues from inception to date. The Company has a December 31 year-end.

These financial statements have been prepared with the on-going assumption that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. As shown in the accompanying financial statements, the Company has incurred operating losses since inception and further losses are anticipated in the development of our business. As of December 31, 2009, the Company has limited financial resources and require additional financing to fund its operations. These factors raise substantial doubt about the Company’s ability to continue as a going concern. These financial statements do no include any adjustments to the amounts and classification of assets and liabilities that might be necessary should the Company be unable to continue as a going concern.

The operations of the Company have primarily been funded by the sale of common shares. Continued operations of the Company are dependent on the Company’s ability to complete equity financings or generate profitable operations in the future. Management’s plan in this regard is to secure additional funds through future equity financings. Such financings may not be available or may not be available on reasonable terms to the Company.

Note 2 - Significant Accounting Policies

a) Basis of Presentation

These financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“US GAAP”). All adjustments considered necessary for a fair presentation of financial position, results of operations and cash flows as at December 31, 2009 have been included.

b) Accounting Method

The Company’s financial statements are prepared using the accrual method of accounting.

c) Use of Estimates

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant areas require use of estimates include valuation allowance for deferred income tax assets. Actual results could differ from those estimates.

d) Foreign Currency Translation

The Company’s functional currency is U.S. dollars. Transactions in other currencies are recorded in U.S. dollars at the rates of exchange prevailing when the transactions occur. Monetary assets and liabilities denominated in other currencies are translated into U.S. dollars at rates of exchange in effect at the balance sheet dates. Exchange gains and losses are recorded in the statements of operations.

e) Cash and Cash Equivalents

Cash and cash equivalents consist entirely of readily available cash balances. There was no cash equivalent as of December 31, 2009.

97



Relationshipscoreboard.com Entertainment Inc.
(A Development Stage Company)
Notes to Financial Statements
December 31, 2009

Note 2 - Significant Accounting Policies (cont’d)

f) Stock-based Compensation

The Company adopted ASC 718, “Share-Based Payment,” to account for its stock options and similar equity instruments issued. Accordingly, compensation costs attributable to stock options or similar equity instruments granted are measured at the fair value at the grant date, and expensed over the expected vesting period. ASC 718 requires excess tax benefits be reported as a financing cash inflow rather than as a reduction of taxes paid.

As at December 31, 2009, the Company has no stock option issued and outstanding.

g) Revenue Recognition

Operating revenue consist of advertising revenue. The point in time at which revenues are recognized is determined in accordance with ASC 605-10 (formerly Staff Accounting Bulletin No. 104, “Revenue Recognition”). Revenues are recorded when the Company delivers services to its customers and collection is reasonably estimated.

The Company has not generated any revenue since its inception.

h) Income Taxes

Income taxes are accounted for under the liability method of accounting for income taxes. Under the liability method, deferred tax liabilities and assets are recognized for the estimated future tax consequences attributable to differences between the amounts reported in the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted or substantially enacted income tax rates expected to apply when the asset is realized or the liability is settled. The effect of a change in income tax rates on deferred income tax liabilities and assets is recognized in income in the period that the change occurs. Deferred income tax assets are recognized to the extent that they are considered more likely than not to be realized.

The Financial Accounting Standards Board (FASB) has issued FASB ASC 740-10, “Accounting for Uncertainty in Income Taxes”. ASC 740-10 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements in accordance with prior literature FASB Statement No. 109, Accounting for Income Taxes. This standard requires a company to determine whether it is more likely than not that a tax position will be sustained upon examination based upon the technical merits of the position. If the more-likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements. The implementation of this standard has no impact on the Company’s financial statements.

i) Comprehensive Income (Loss)

The Company accounts for comprehensive income under the provisions of ASC Topic 220-10, “Comprehensive Income – Overall,” which establishes standards for reporting and display of comprehensive income, its components and accumulated balances. The Company is disclosing this information on its Statement of Operations and Comprehensive Loss.

98



Relationshipscoreboard.com Entertainment Inc.
(A Development Stage Company)
Notes to Financial Statements
December 31, 2009

Note 2 - Significant Accounting Policies (cont’d)

j) Earnings (Loss) Per Share

The Company adopted Financial Accounting Standards ASC subtopic 260-10, “Earnings Per Share”, which simplifies the computation of earning per share requiring the restatement of all prior periods.

Basic loss per share is computed on the basis of the weighted average number of common shares outstanding during each year.

Diluted loss per share is computed on the basis of the weighted average number of common shares and dilutive securities outstanding. As at December 31, 2009, the diluted loss per share is equal to basic loss per share as there was no other security instrument outstanding as at December 31, 2009.

k) Financial Instruments and Fair Value of Financial Instruments

Fair Value of Financial Instruments – the Company adopted SFAS ASC 820-10-50, “Fair Value Measurements”. This guidance defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The three levels are defined as follows:

  • Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

  • Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

  • Level 3 inputs to valuation methodology are unobservable and significant to the fair measurement.

The carrying amounts reported in the balance sheets for the cash and cash equivalents and accounts payable and accrued liabilities each qualify as financial instruments and are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization.

l) Subsequent Event

The Company has adopted ASC 855, “Subsequent Events,” which establishes general standards of accounting for disclosure of events that occur after the balance sheet date but before financial statements are issued or available to be issued. It requires the disclosure of the date through which an entity has evaluated subsequent events and whether that date represents the date the financial statements were issued or were available to be issued.

In preparing these financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through January 1, 2010 and September 13, 2010, the date the financial statements were available to be issued.

99



Relationshipscoreboard.com Entertainment Inc.
(A Development Stage Company)
Notes to Financial Statements
December 31, 2009

Note 2 - Significant Accounting Policies (cont’d)

m) Accounting Codification

On July 1, 2009, the FASB launched the “FASB Accounting Standards Codification” (the “FASB ASC”) as the single source of authoritative non-governmental U.S. GAAP. The FASB ASC did not change current U.S. GAAP, but simplified user access to all authoritative U.S. GAAP by organizing all the authoritative literature related to a particular topic in one place. All existing accounting standard documents were superseded and all other accounting literature not included in the FASB ASC is now considered non-authoritative. The adoption of the FASB ASC did not have an impact on the Company’s financial statements.

n) Recently Adopted Accounting Pronouncements

In September 2009, the FASB issued Accounting Standards Update 2009-12, Fair Value Measurements and Disclosures (Topic 820): Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent). This update provides amendments to Topic 820 for the fair value measurement of investments in certain entities that calculate net asset value per share (or its equivalent). It is effective for interim and annual periods ending after December 15, 2009. Early application is permitted in financial statements for earlier interim and annual periods that have not been issued. The Company adopted this standard for its fiscal year ended December 31, 2009 and has assessed that the adoption of this standard did not have a material effect on its financial statements.

In January 2010, the FASB issued Accounting Standards Update 2010-01, Equity (Topic 505): Accounting for Distributions to Shareholders with Components of Stock and Cash (A Consensus of the FASB Emerging Issues Task Force). This amendment to Topic 505 clarifies the stock portion of a distribution to shareholders that allows them to elect to receive cash or stock with a limit on the amount of cash that will be distributed is not a stock dividend for purposes of applying Topics 505 and 260. Effective for interim and annual periods ending on or after December 15, 2009, and would be applied on a retrospective basis. The Company adopted this standard for its fiscal year ended December 31, 2009 and has assessed that the adoption of this standard did not have a material effect on its financial statements.

In January 2010, the FASB issued Accounting Standards Update 2010-02, Consolidation (Topic 810): Accounting and Reporting for Decreases in Ownership of a Subsidiary. This amendment to Topic 810 clarifies, but does not change, the scope of current US GAAP. It clarifies the decrease in ownership provisions of Subtopic 810-10 and removes the potential conflict between guidance in that Subtopic and asset derecognition and gain or loss recognition guidance that may exist in other US GAAP. An entity will be required to follow the amended guidance beginning in the period that it first adopts FAS 160 (now included in Subtopic 810-10). For those entities that have already adopted FAS 160, the amendments are effective at the beginning of the first interim or annual reporting period ending on or after December 15, 2009. The amendments should be applied retrospectively to the first period that an entity adopted FAS 160. The Company adopted this standard for its fiscal year ended December 31, 2009 and has assessed that the adoption of this standard did not have a material effect on its financial statements.

o) Recently Issued Accounting Pronouncements

In June 2009, the FASB ASC 860-10, “Accounting for Transfers of Financial Assets,” eliminates the concept of a qualifying special-purpose entity (“QSPE”), clarifies and amends the de-recognition criteria for a transfer to be accounted for as a sale, amends and clarifies the unit of account eligible for sale accounting and requires that a transferor initially measure at fair value and recognize all assets obtained and liabilities incurred as a result of a transfer of an entire financial asset or group of financial assets accounted for as a sale. This standard is effective for fiscal years beginning after November 15, 2009. The Company is currently evaluating the potential impact of this standard on its financial statements, but does not expect it to have a material effect.

100



Relationshipscoreboard.com Entertainment Inc.
(A Development Stage Company)
Notes to Financial Statements
December 31, 2009

Note 2 - Significant Accounting Policies (cont’d)

o) Recently Issued Accounting Pronouncements (cont’d)

In June 2009, the FASB issued FASB ASC 810-10-65 which amends the consolidation guidance applicable to a variable interest entity (“VIE”). This standard also amends the guidance governing the determination of whether an enterprise is the primary beneficiary of a VIE, and is therefore required to consolidate an entity, by requiring a qualitative analysis rather than a quantitative analysis. Previously, the standard required reconsideration of whether an enterprise was the primary beneficiary of a VIE only when specific events had occurred. This standard is effective for fiscal years beginning after November 15, 2009, and for interim periods within those fiscal years. Early adoption is prohibited. The Company is currently evaluating the potential impact of the adoption of this standard on its financial statements, but does not expect it to have a material effect.

In July 2009, the FASB ratified the consensus reached by EITF (Emerging Issues Task Force) issued EITF No. 09-1, (ASC Topic 470) "Accounting for Own-Share Lending Arrangements in Contemplation of Convertible Debt Issuance" ("EITF 09-1"). The provisions of EITF 09-1, clarifies the accounting treatment and disclosure of share-lending arrangements that are classified as equity in the financial statements of the share lender. An example of a share-lending arrangement is an agreement between the Company (share lender) and an investment bank (share borrower) which allows the investment bank to use the loaned shares to enter into equity derivative contracts with investors. EITF 09-1 is effective for fiscal years that beginning on or after December 15, 2009 and requires retrospective application for all arrangements outstanding as of the beginning of fiscal years beginning on or after December 15, 2009. Share-lending arrangements that have been terminated as a result of counterparty default prior to December 15, 2009, but for which the entity has not reached a final settlement as of December 15, 2009 are within the scope. The Company does not expect the provisions of EITF 09-1 to have a material effect on the financial position, results of operations or cash flows of the Company.

In October 2009, the FASB issued Accounting Standards Update 2009-13, Revenue Recognition (Topic 605): Multiple-Deliverable Revenue Arrangements. This update addressed the accounting for multiple-deliverable arrangements to enable vendors to account for products or services (deliverables) separately rather than a combined unit and will be separated in more circumstances that under existing US GAAP. This amendment has eliminated that residual method of allocation. Effective prospectively for revenue arrangements entered into or materially modified in fiscal years beginning on or after June 15, 2010. Early adoption is permitted. The Company does not expect the provisions of ASU 2009-13 to have a material effect on the financial position, results of operations or cash flows of the Company.

In January 2010, FASB issued ASU No. 2010-06 regarding fair value measurements and disclosures and improvement in the disclosure about fair value measurements. This ASU requires additional disclosures regarding significant transfers in and out of Levels 1 and 2 of fair value measurements, including a description of the reasons for the transfers. Further, this ASU requires additional disclosures for the activity in Level 3 fair value measurements, requiring presentation of information about purchases, sales, issuances, and settlements in the reconciliation for fair value measurements. This ASU is effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. The Company is currently evaluating the impact of this ASU; however, the Company does not expect the adoption of this ASU to have a material impact on our financial statements.

101



Relationshipscoreboard.com Entertainment Inc.
(A Development Stage Company)
Notes to Financial Statements
December 31, 2009

Note 2 - Significant Accounting Policies (cont’d)

o) Recently Issued Accounting Pronouncements (cont’d)

In February 2010, the FASB issued ASC No. 2010-09, “Amendments to Certain Recognition and Disclosure Requirements”, which eliminates the requirement for SEC filers to disclose the date through which an entity has evaluated subsequent events. ASC No. 2010-09 is effective for its fiscal quarter beginning after 15 December 2010. The adoption of ASC No. 2010-09 is not expected to have a material impact on the Company’s financial statements.

ASU No. 2010-13 was issued in April 2010, and clarified the classification of an employee share based payment award with an exercise price denominated in the currency of a market in which the underlying security trades. This ASU will be effective for the first fiscal quarter beginning after December 15, 2010, with early adoption permitted. The adoption of ASU No. 2010-13 is not expected to have a material impact on the Company’s financial statements.

Other accounting pronouncements that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s financial statements upon adoption.

Note 3 – Related Party Transactions

There were no related party transactions for the period ended December 31, 2009.

Subsequent to the December 31, 2009, the Company borrowed a loan of $400 from a director and shareholder of the Company.

Note 4 – Shareholders’ Equity

On November 16, 2009, the Company issued 100 common shares at $0.001 per share for total proceeds of $0.1.

On December 5, 2009, the Company issued 1,599,900 common shares at $0.00025 per share for total proceeds of $400.

Note 5 – Income Taxes

The Company is subject to income tax laws in the U.S. The Company incurred a net loss for the period from November 16, 2009 to December 31, 2009 and therefore did not incur income tax expense.

A reconciliation of the federal statutory income tax, at the statutory rate of 15% to the Company’s effective income tax rate, for the period from November 16, 2009 to December 31, 2009 is as follows:

102



Relationshipscoreboard.com Entertainment Inc.
(A Development Stage Company)
Notes to Financial Statements
December 31, 2009
 
Note 5 – Income Taxes (cont’d)

    For the period from  
    November 16,  
    2009(inception) to 
    December 31, 2009  
  $    
Net loss from operations   (1,179 )
Statutory tax rate   15%  
Income tax recovery   (177 )
Unrecognized benefit for non-capital losses   177  
Income tax expense   -  

The significant components of future income tax assets (liabilities) are as follows:

    December 31, 2009  
  $    
Non-capital loss carry forwards   177  
Valuation allowance   (177 )
Deferred income tax asset   -  

The valuation allowance for deferred tax assets as of December 31, 2009 was $177. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible.

As at December 31, 2009, the Company has non-capital loss carry forwards of $1,179 available to reduce taxable income otherwise calculated in future years. This loss expires in 2029.

Note 6 – Subsequent Events

On January 8, 2010, the Company obtained a $400 loan from a shareholder and director of the Company. The loan was unsecured, non-interest bearing and due on demand.

On March 24, 2010, the Company was acquired by Online Disruptive Technologies, Inc. (“ODT”) by ODT issuing 16,000,000 of its shares for 100% of the Company’s shares. The acquisition is considered as a reverse-takeover as the shareholders of the Company become the majority shareholder of ODT.

Note 7 – Commitments and Guarantees

The Company did not enter into any commitments nor did it become a guarantor to any parties during the fiscal year ended December 31, 2009.

103


Changes in and disagreements with accountants
on accounting and financial disclosure

On August 26, 2010, we dismissed Main Amundson and Associates (“Main”) as our auditor, as we learnt that Main was not registered with the Public Company Accounting Oversight Board and could not audit our financial statements for the purposes of including them in this registration statement. None of the reports of Main on our financial statements contained an adverse opinion or disclaimer of opinion, or was qualified or modified as to uncertainty, audit scope or accounting principles. We did not have any disagreements with Main regarding any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure.

We have requested that Main furnish us with a letter addressed to the Securities and Exchange Commission stating whether it agrees with the above statements. A copy of the letter provided from Main was filed as an exhibit to our registration statement on Form S-1/A filed on October 26, 2011.

On August 26, 2010 we engaged Chang Lee LLP as our auditor. Prior to the engagement of Chang Lee LLP, we did not consult with Change Lee LLP regarding (1) the application of accounting principles to specified transactions, (2) the type of audit opinion that might be rendered on our financial statements, (3) written or oral advice that would be an important factor considered by us in reaching a decision as to an accounting, auditing or financial reporting issues, or (4) any matter that was the subject of a disagreement between our company and its predecessor auditor as described in Item 304(a)(1)(iv) or a reportable event as described in Item 304(a)(1)(v) of Regulation S-K. The decision to change auditors was approved by our sole director and officer, Benjamin Cherniak.

On June 1, 2011, Chang Lee LLP resigned as our independent accountant. Chang Lee LLP merged its operations with MNP LLP and the professional staff and partners of Chang Lee LLP joined MNP LLP either as employees or partners of MNP LLP and will continue to practice as members of MNP LLP.

The report of Chang Lee LLP regarding our financial statements for the fiscal years ended December 31, 2010 and 2009 did not contain any adverse opinion or disclaimer of opinion and was not qualified or modified as to uncertainty, audit scope or accounting principles, except that such report on our financial statements for the years ended December 31, 2010 and 2009 contained an explanatory paragraph in respect to uncertainty as to our ability to continue as a going concern. During the years ended December 31, 2010 and 2009 and during the period from the end of the most recently completed fiscal year through June 1, 2011, the date of resignation, there were no disagreements with Chang Lee LLP on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedures, which disagreements, if not resolved to the satisfaction of Chang Lee LLP would have caused it to make reference to such disagreements in its reports.

We have requested that Chang Lee LLP furnish us with a letter addressed to the Securities and Exchange Commission stating whether it agrees with the above statements. A copy of the letter provided from Chang Lee LLP was filed as an exhibit to our Current Report on Form 8-K filed on June 15, 2011.

Concurrent with the resignation of Chang Lee LLP, we engaged MNP LLP, as our independent accountant. Prior to engaging MNP LLP, we did not consult with MNP LLP regarding the application of accounting principles to a specific completed or contemplated transaction or regarding the type of audit opinion that might be rendered by MNP LLP on our financial statements, and MNP LLP did not provide any written or oral advice that was an important factor considered by our company in reaching a decision as to any such accounting, auditing or financial reporting issue. The engagement of MNP LLP was approved by our board of directors.

Directors and Executive Officers

The following table presents information with respect to our officers, directors and significant employees as of the date of this Report:

104



Name Position Held with our Company Age Date First Elected or Appointed
Benjamin Cherniak




David Eyal Davidovits
Director, President, Secretary and Treasurer

Director, President, Secretary and Treasurer of
Relationshipscorebord.com Entertainment Inc.

Vice President Business Development
43


44
August 4, 2010

November 16, 2009


April 5, 2012

Each director serves until our next annual meeting of the stockholders or unless they resign earlier. The Board of Directors elects officers and their terms of office are at the discretion of the Board of Directors.

Significant Employees

We do not currently have any significant employees other than Mr. Cherniak and Mr. Davidovits.

Business Experience

The following is a brief account of the education and business experience of our sole director and our executive officers during at least the past five years.

Benjamin Cherniak Director, President, Secretary and Treasurer

Mr. Cherniak is the President and founder of RelationshipScoreboard.com Inc. Since 2007, Mr. Cherniak has also served as Director of Business Development for Big Stick Media Corporation, a Canadian company that owns and operates sports media assets including websites, client server software, publications and WebTV shows. In this role, Mr. Cherniak’s responsibilities have included expansion of the product lines to Asia and Europe, overseeing the redesign of the company’s flagship website along with development of a mobile application, and acting as interim president for a subsidiary company with call center operations. Since 2007, Mr. Cherniak has been a consultant to Hihenry.com Entertainment Inc. and has assisted in the development of the original business concept of the restaurant portal and assisting in the implementation of the website www.hihenry.com. From 2003 to 2006, Mr. Cherniak was a principal with Bosworth Field Associates (“Bosworth”) and in 2007 Mr. Cherniak was a principal of Stanton Chase International (“Stanton”). Bosworth and Stanton are two executive recruiting firms, specializing in the finance and accounting sectors. Previously, Mr. Cherniak has significant experience in a wide array of businesses, specializing in the areas of marketing and product development

David Eyal Davidovits, Vice President Business Development

Mr. Davidovits has 20 years of experience in the fields of marketing, finance, and operations at an executive level having previously been engaged by Intel, Marvell, and CorInsight. His specific experience includes assessments of strategic partnerships and joint ventures with Intel Capital, Intel Haifa Computer Mobility group operations, finance management at Intel USA, and the development of and responsibility for major Fortune 500 company accounts at CorInsight. Mr. Davidovits is currently a senior partner of CorInsight LLC, a marketing, business development and technology transfer consultancy. As well, he serves as the General Manager of CorInsight's Israeli office. He has BS in Manufacturing Engineering and Business Studies from Coventry University, UK.

Family Relationships

There are no family relationships between any director or executive officer.

105


Committees of Board of Directors

We do not presently have a separately constituted audit committee, compensation committee, nominating committee, executive committee or any other committees of our Board of Directors. Nor do we have an audit committee financial expert. We do not have an audit committee financial expert because we believe the cost related to retaining a financial expert at this time is prohibitive. Further, because we have not had operations to date, and with the limited expenditures we expect over the next two years, we believe the services of a financial expert are not yet warranted. As such, our Board of Directors act as our audit committee and handle matters related to compensation and nomination of directors.

Potential Conflicts of Interest

Since we do not have an audit or compensation committee comprised of independent directors, the functions that would have been performed by such committees has been performed by our Board of Directors. We will continue to not have an audit or compensation committees and thus there is a potential conflict of interest in that our Board of Directors has the authority to determine issues concerning management compensation and audit issues that may affect management decisions.

Our sole director is also a Director of Business Development for Big Stick Media Corporation. Big Stick Media Corporation owns and operates sports media assets including websites. Mr. Cherniak’s role with Big Stick Media Corporation includes the selling of website advertisement. Mr. Cherniak could potentially be placed in a conflict of interest with our company if a company wanting to sell website advertisement approached him. We believe the likelihood of this is small as a potential advertiser for sports media assets are different than a relationship based social media website. Further, Mr. Cherniak is not prevented from accepting other positions that may put him in a conflict of interest with our company. If Mr. Cherniak is presented a business opportunity where he would have to decide a priority or preference between our company and Big Stick Media Corporation, it would depend on the circumstances of the opportunity as to which company he would give preference. In making his decision, Mr. Cherniak would consider the nature of the opportunity and how Mr. Cherniak received the opportunity (e.g. was he acting on behalf of our company or Big Stick Media Corporation when he received the opportunity).

We are not aware of any other conflicts of interest with our sole director.

Director Independence

We are not subject to listing requirements of any national securities exchange or national securities association and, as a result, we are not at this time required to have our board comprised of a majority of “independent directors.” Our determination of independence of directors is made using the definition of “independent director” contained in Rule 5605(a)(2) of the Marketplace Rules of the NASDAQ Stock Market (“NASDAQ”), even though such definitions do not currently apply to us because we are not listed on NASDAQ. We have determined that our President does not meet the definition of “independent” as a result of his position as our executive officer.

Involvement in Certain Legal Proceedings

Our sole director and our executive officers have not been involved in any of the following events during the past ten years:

  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 involvement in any type of business, securities or banking activities;

     
  4.

being found by a court of competent jurisdiction (in a civil action), the Securities and Exchange Commission or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended, or vacated;

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  5.

being the subject of, or a party to, any federal or state judicial or administrative order, judgment, decree, or finding, not subsequently reversed, suspended or vacated, relating to an alleged violation of: (i) any federal or state securities or commodities law or regulation; or (ii) any law or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease- and-desist order, or removal or prohibition order; or (iii) any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or

     
  6.

being the subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Securities Exchange Act of 1934), any registered entity (as defined in Section 1(a)(29) of the Commodity Exchange Act), or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member.

Executive Compensation

The following table shows the compensation received by our executive officers for the year ended December 31, 2011 and for the year ended December 31, 2010:

  SUMMARY COMPENSATION TABLE   






Name
and Principal
Position








Year







Salary
($)







Bonus
($)






Stock
Awards
($)






Option
Awards
($)


Non-
Equity
Incentive
Plan
Compensa-
tion
($)

Change in
Pension
Value and
Nonqualified
Deferred
Compensation
Earnings
($)




All
Other
Compensa
-tion
($)







Total
($)
Benjamin Cherniak
Director, President,
Secretary and Treasurer (1)

2011
2010

Nil
Nil

Nil
Nil

Nil
Nil

Nil
Nil

Nil
Nil

Nil
Nil

Nil
Nil

Nil
Nil
Robbie Manis
Former Director, President,
Secretary and Treasurer (2)

2011
2010

Nil
Nil

Nil
Nil

Nil
Nil

Nil
Nil

Nil
Nil

Nil
Nil

Nil
Nil

Nil
Nil

(1)

Mr. Cherniak was appointed as a director and officer of our company on August 4, 2010.

(2)

Mr. Manis resigned as a director and officer of our company on August 4, 2010.

Employment Agreements or Arrangements

Other than noted below, we have not entered into any employment (or consulting) agreements or arrangements, whether written or unwritten, with our directors or executive officers since our inception.

Effective November 1, 2011, we entered into a consulting agreement with 1367826 Ontario Limited (“OntarioCo”) and Robbie Manis, pursuant to which OntarioCo is to provide certain consulting services to our company including: sourcing and implementing new business opportunities; raising financing reasonably required from time to time by our company; coordinating all required accounting, reporting and disclosure; and fulfilling any other needed administrative functions. As consideration for the performance of the consulting services under the agreement, we agreed to pay OntarioCo the sum of US$4,166.67 per month for the duration of the agreement, exclusive of any applicable sales tax.

The agreement is for an indefinite period unless terminated by either party with sixty days advance written notice to the other party.

Effective November 1, 2011, we entered into a consulting agreement with Kerry Chow, pursuant to which Kerry Chow will provide certain consulting services to our company including: maintaining the accounting books and records on behalf of our company and our subsidiaries; preparing consolidated quarterly and annual financial statements for our company and our subsidiaries as well as assisting in the preparation of the related disclosure documents; coordinating the quarterly reviews and annual audits on behalf of our company and our subsidiaries; coordinating the preparation and filing of the annual income tax returns of our company and our subsidiaries; and any other accounting-related functions. As consideration for the performance of the consulting services under the agreement, we agreed to pay Kerry Chow the sum of US$833.33 per month for the duration of the agreement, exclusive of any applicable sales tax.

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The agreement is for an indefinite period unless terminated by either party with sixty days advance written notice to the other party.

Equity Awards

We have not awarded any shares of stock, options or other equity securities to our directors or executive officers since our inception. We have not adopted any equity incentive plan. Our directors and executive officers may receive stock options at the discretion of our board of directors in the future.

Retirement or Similar Benefit Plans

There are no arrangements or plans in which we provide retirement or similar benefits for our directors or executive officers.

Resignation, Retirement, Other Termination, or Change in Control Arrangements

We have no contract, agreement, plan or arrangement, whether written or unwritten, that provides for payments to our directors or executive officers at, following, or in connection with the resignation, retirement or other termination of our directors or executive officers, or a change in control of our company or a change in our directors’ or executive officers’ responsibilities following a change in control.

Director Compensation

No director received or accrued any compensation for his or her services as a director since our inception.

We have no formal plan for compensating our directors for their services in their capacity as directors. Our directors are entitled to reimbursement for reasonable travel and other out-of-pocket expenses incurred in connection with attendance at meetings of our board of directors. Our board of directors may award special remuneration to any director undertaking any special services on our behalf other than services ordinarily required of a director.

Security Ownership of Certain Beneficial Owners and Management

The following table sets forth certain information regarding beneficial ownership of our common stock as of May 23, 2012: (i) by each of our directors, (ii) by each of the Named Executive Officers, (iii) by all of our executive officers and directors as a group, and (iv) by each person or entity known by us to beneficially own more than 5% of any class of our outstanding shares. As of May 23, 2012, there were 53,750,100 shares of our common stock outstanding:

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Security ownership of certain beneficial owners.


Title of Class

Name and address of beneficial owner
Amount and Nature of
Beneficial Ownership 1

Percent of Class
common

Giora Davidovits
16 Carter Lane, Andover, MA, USA
01810
11,000,000 Direct

20.5%

common

Naday Kidron
2 Elza Street, Jerusalem,
Israel, 93706
4,000,000 Direct

7.4%

common


Jelton Finance Corp.
Withfield Tower, 3d Floor, 4792 Coney
Drive, P.O. Box 1777, Belize City,
Belize, IBC 43707
5,650,000 Direct


10.5%


common
Irit Arbel
6 Hadishon St., Jerusalem, Israel, 96956
3,000,000 Direct
5.6%
common
Yonatan Ackerman
Louis pastier 5, Haifa Israel 35431
4,900,000 Direct
9.1%
    28,550,000  

Security ownership of management.


Title of Class

Name and address of beneficial owner
Amount and Nature of
Beneficial Ownership 1

Percent of Class
common

Benjamin Cherniak
Suit 305 -3120 South Durango Drive,
Las Vegas, Nevada 89117
1,200,000 Direct

2.2%

common

D. Eyal Davidovits
69 Hashomer St.
Zichron Yaakov 30900 Israel
11,000,000 Direct

20.5%

    12,200,000  

1 Percentage ownership is determined based on shares owned together with securities exercisable or convertible into shares of common stock within 60 days of May 23, 2012, for each stockholder. Beneficial ownership is determined in accordance with the rules of the SEC and generally includes voting or investment power with respect to securities. Shares of common stock subject to securities exercisable or convertible into shares of common stock that are currently exercisable or exercisable within 60 days of May 23, 2012, are deemed to be beneficially owned by the person holding such securities for the purpose of computing the percentage of ownership of such person, but are not treated as outstanding for the purpose of computing the percentage ownership of any other person. Our common stock is our only issued and outstanding class of securities eligible to vote.

Changes in Control

We are unaware of any contract or other arrangement the operation of which may at a subsequent date result in a change of control of our company.

Transactions with Related Persons, Promoters and Certain Control Persons and Corporate Governance

Other than as disclosed below, there has been no transaction, since our inception on November 16, 2009, or currently proposed transaction, in which we were or are to be a participant and the amount involved exceeds the lesser of $120,000 or one percent of our total assets at year end for the last completed fiscal year, and in which any of the following persons had or will have a direct or indirect material interest:

  (i)

Any director or executive officer of our company;

     
  (ii)

Any person who beneficially owns, directly or indirectly, shares carrying more than 5% of the voting rights attached to our outstanding shares of common stock;

     
  (iii)

Any of our promoters and control persons; and

     
  (iv)

Any member of the immediate family (including spouse, parents, children, siblings and in- laws) of any of the foregoing persons.

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On November 16, 2009 and December 2, 2009, we issued 100 and 200,000 common shares to Robbie Manis at a price per share of $0.001 and $0.01 for total proceeds of $0.10 and $2,000, respectively. We issued these shares in an offshore transaction relying on Rule 903 of Regulation S of the Securities Act of 1933 and/or Section 4(2) of the Securities Act of 1933. On April 9, 2012, we issued a total of 750,000 common shares to Robbie Manis at a price per share of $0.001 for total gross proceeds of $750.

On December 14, 2009, Peter Hough agreed to lend to our company $1,697. On December 31, 2009 Peter Hough agreed to lend to our company $445. On February 1, 2010 Peter Hough agreed to lend to our company $1,297. On April 19, 2010, Peter Hough agreed to lend to our company $2,472. On May 12, 2010, Peter Hough agreed to lend to our company $551. On June 9, 2010, Peter Hough agreed to loan to our company $25,000. On September 24, 2010, Peter Hough agreed to loan our company $25,000. On September 6, 2011, Peter Hough agreed to lend to our company $17,600. These loans are unsecured, non-interest bearing and due on demand. In total of the above noted loans, Mr. Hough is owed $74,062.33. On November 4, 2011, we entered into a loan terms agreement whereby we agreed to repayment terms regarding an outstanding loan in the amount of $74,062.33 from Mr. Hough. The loan is unsecured, non-interest bearing and due on October 31, 2016. We have agreed to pay the principal of the loan over time by paying to the lender 10% of the gross proceeds received by us from any equity or debt financing that we conduct until the loan is paid in full.

On January 7, 2010, we issued 1,800,000 common shares to two individuals for total proceeds of $18,000. We issued these shares in an offshore transaction relying on Rule 903 of Regulation S of the Securities Act of 1933 and/or Section 4(2) of the Securities Act of 1933. Each of the subscribers represented that he or she was not a “U.S. person” as that term is defined in Regulation S.

In January 2010, Benjamin Cherniak, our sole director and officer, agreed to lend to our company $400. The loan is unsecured, non-interest bearing and due on demand.

On March 24, 2010, we issued 16,000,000 common shares to Benjamin Cherniak pursuant to a share purchase agreement dated for reference March 24, 2010, whereby we acquired all of the issued and outstanding shares of RelationshipScoreboard.com Entertainment, Inc. in consideration for 16,000,000 of our common shares at a deemed price of $0.01 for total deemed value of $160,000.

On November 24, 2011, we entered into a loan agreement whereby we borrowed $25,000 from one lender with no interest and no fixed repayment date. The principal amount of the loan is convertible into shares of our common stock at a price to be determined at the time of conversion and we agreed to pay any out of pocket legal costs to the lender. On February 13, 2012 we entered into another loan agreement whereby we borrowed $25,000 from an unrelated lender with the exact same terms as those applicable to the November 24, 2011 loan.

On April 9, 2012, we issued 5,000,000 common shares to David Eyal Davodovits for total gross proceeds of $5,000; 5,000,000 common shares to Giora Davidovits for total gross proceeds of $5,000; and 4,000,000 common shares to Nadav Kidron for total gross proceeds of $4,000.

For information regarding compensation for our executive officers and directors, see “Executive Compensation”.

Promoter

The promoter of our company was Robbie Manis. Mr. Manis resigned as a director and officer of our company on August 4, 2010. The promoter of our company is now Benjamin Cherniak.

Corporate Governance

Under NASDAQ rule 5605(a)(2), a director is not independent if he or she is also an executive officer or employee of a corporation. Under that definition, Benjamin Cherniak is not an independent director because he is our president, officer, secretary, and treasurer.

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WHERE YOU CAN FIND ADDITIONAL INFORMATION

We are not required to deliver an annual report to our stockholders and will not voluntarily send an annual report. Upon the effective date of the registration statement of which this prospectus forms a part; as we are not registering a class of securities under Section 12 of the Securities Exchange Act of 1934 and will be considered a Section 15(d) filer rather than a fully reporting company; we will only be required to file annual reports on Form 10-K containing audited financial statements following the end of our fiscal year, quarterly reports on Form 10-Q containing unaudited financial statements for the first three quarters of our fiscal year following the end of such fiscal quarter, and current reports on Form 8-K shortly after the occurrence of certain material events with the Securities and Exchange Commission. We will not be subject to the proxy rules and, and therefore, we will not be required to send proxy statements or information statements to our stockholders or file them with the Securities and Exchange Commission. Also the short swing reporting and profit recovery rules will not be applicable to our directors and officers and any person who is the beneficial owner of more than 10% of the shares of our common stock. In addition, any person who acquires beneficial ownership of more than 5% of the shares of our common stock will not be required to report such ownership to the Securities and Exchange Commission by filing a Schedule 13D or Schedule 13G with the Securities and Exchange Commission or provide a copy of such filing to us.

We have filed a registration statement on Form 8-A with the Securities and Exchange Commission. The filing of the registration statement on Form 8-A caused us to become a fully reporting company with the Securities and Exchange Commission under the Securities Exchange Act of 1934. We are required to continue filing our annual, quarterly and current reports with the Securities and Exchange Commission and are subject to the proxy rules. Also the short swing reporting and profit recovery rules are applicable to our directors and officers and any person who is the beneficial owner of more than 10% of the shares of our common stock. In addition, any person who acquires beneficial ownership of more than 5% of the shares of our common stock will be required to report such ownership to the Securities and Exchange Commission.

We have filed with the Securities and Exchange Commission a registration statement on Form S-1 under the Securities Act of 1933 with respect to the securities offered under this prospectus. This prospectus, which forms a part of that registration statement, does not contain all information included in the registration statement. Certain information is omitted and you should refer to the registration statement and its exhibits.

You may review a copy of the registration statement at the Securities and Exchange Commission’s public reference room at 100 F Street, N.E. Washington, D.C. 20549 on official business days during the hours of 10 a.m. to 3 p.m. You may obtain information on the operation of the public reference room by calling the Securities and Exchange Commission at 1-800-SEC-0330. You may also read and copy any materials we file with the Securities and Exchange Commission at the Securities and Exchange Commission’s public reference room. Our filings and the registration statement can also be reviewed by accessing the Securities and Exchange Commission’s website at http://www.sec.gov.

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200,100 Common Shares
 
Online Disruptive Technologies, Inc.
 
Common Stock
 
End of Prospectus
 
_____________ , 2012
 

Dealer Prospectus Delivery Obligation

Until ________________ , all dealers that effect transactions in these securities whether or not participating in this offering, may be required to deliver a prospectus. This is in addition to the dealers’ obligation to deliver a prospectus when acting as underwriters and with respect to their unsold allotments or subscriptions.

No finder, dealer, sales person or other person has been authorized to give any information or to make any representation in connection with this offering other than those contained in this prospectus and, if given or made, such information or representation must not be relied upon as having been authorized by our company. This prospectus does not constitute an offer to sell or a solicitation of an offer to buy any of the securities offered hereby by anyone in any jurisdiction in which such offer or solicitation is not authorized or in which the person making such offer or solicitation is not qualified to do so or to any person to whom it is unlawful to make such offer or solicitation. The information contained in this prospectus is accurate only as of the date of this prospectus, regardless of the time of delivery of this prospectus or any sale of these securities. Our business, financial condition, results of operation and prospects may have changed after the date of this prospectus.


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Information Not Required in Prospectus

Other Expenses of Issuance and Distribution

The following table sets forth the expenses payable by us in connection with the issuance and distribution of the securities being registered hereunder. No such expenses will be borne by the selling stockholders. All of the amounts shown are estimates, except for the Securities and Exchange Commission registration fees.

Securities and Exchange Commission registration fees $  6  
Accounting fees and expenses $  13,000  
Legal fees and expenses $  25,000  
Transfer agent and registrar fees $  2,500  
Miscellaneous expenses $  994  
Total $  $41,500  

Indemnification of Directors and Officers

Nevada Revised Statutes provide that:

  • a corporation may indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, except an action by or in the right of the corporation, by reason of the fact that he is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses, including attorneys’ fees, judgments, fines and amounts paid in settlement actually and reasonably incurred by him in connection with the action, suit or proceeding if he or she acted in good faith and in a manner which he or she reasonably believed to be in or not opposed to the best interests of the corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful;

  • a corporation may indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action or suit by or in the right of the corporation to procure a judgment in its favor by reason of the fact that he or she is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise against expenses, including amounts paid in settlement and attorneys’ fees actually and reasonably incurred by him or her in connection with the defense or settlement of the action or suit if he or she acted in good faith and in a manner which he or she reasonably believed to be in or not opposed to the best interests of the corporation. Indemnification may not be made for any claim, issue or matter as to which such a person has been adjudged by a court of competent jurisdiction, after exhaustion of all appeals therefrom, to be liable to the corporation or for amounts paid in settlement to the corporation, unless and only to the extent that the court in which the action or suit was brought or other court of competent jurisdiction determines upon application that in view of all the circumstances of the case, the person is fairly and reasonably entitled to indemnity for such expenses as the court deems proper; and

  • to the extent that a director, officer, employee or agent of a corporation has been successful on the merits or otherwise in defense of any action, suit or proceeding, or in defense of any claim, issue or matter therein, the corporation must indemnify him or her against expenses, including attorneys’ fees, actually and reasonably incurred by him or her in connection with the defense.

Nevada Revised Statutes provide that we may make any discretionary indemnification only as authorized in the specific case upon a determination that indemnification of the director, officer, employee or agent is proper in the circumstances. The determination must be made:

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  • by our stockholders;

  • by our board of directors by majority vote of a quorum consisting of directors who were not parties to the action, suit or proceeding;

  • if a majority vote of a quorum consisting of directors who were not parties to the action, suit or proceeding so orders, by independent legal counsel in a written opinion;

  • if a quorum consisting of directors who were not parties to the action, suit or proceeding cannot be obtained, by independent legal counsel in a written opinion; or

  • by court order.

Nevada Revised Statutes provide that a corporation may purchase and maintain insurance or make other financial arrangements on behalf of any person who is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise for any liability asserted against him and liability and expenses incurred by him in his capacity as a director, officer, employee or agent, or arising out of his status as such, whether or not the corporation has the authority to indemnify him against such liability and expenses.

Our bylaws also require us to indemnify directors, officers and employees to the fullest extent allowed by law, provided, however, that it will be within the discretion of our board of directors whether to advance any funds in advance of disposition of any action, suit or proceeding.

Recent Sales of Unregistered Securities

On November 16, 2009 and December 2, 2009, we issued 100 and 200,000 common shares to Robbie Manis at a price per share of $0.001 and $0.01 for total proceeds of $0.10 and $2,000, respectively. We issued these shares in an offshore transaction relying on Rule 903 of Regulation S of the Securities Act of 1933 and/or Section 4(2) of the Securities Act of 1933.

On January 7, 2010, we issued 1,800,000 common shares to two individuals for total proceeds of $18,000. We issued these shares in an offshore transaction relying on Rule 903 of Regulation S of the Securities Act of 1933 and/or Section 4(2) of the Securities Act of 1933. Each of the subscribers represented that he or she was not a “U.S. person” as that term is defined in Regulation S.

On March 24, 2010, we issued 16,000,000 common shares to Benjamin Cherniak pursuant to a share purchase agreement dated for reference March 24, 2010, whereby we acquired all of the issued and outstanding shares of RelationshipScoreboard.com Entertainment, Inc. in consideration for 16,000,000 of our common shares at a deemed price of $0.01 for total deemed value of $160,000.

On April 9, 2012, we sold 17,750,000 shares of our common stock at a price of US$0.001 per share for gross proceeds of US$17,750. We issued 5,000,000 of these shares to one U.S. person, who was an accredited investor (as that term is defined in Rule 501 of Regulation D under the Securities Act of 1933), and in issuing these shares to this investor we relied on the registration exemption provided for in Rule 506 of Regulation D and/or Section 4(2) of the Securities Act of 1933. We issued 12,750,000 of these shares to four non-U.S. persons (as that term is defined in Regulation S of the Securities Act of 1933, as amended) in an offshore transaction in which we relied on the registration exemption provided for in Regulation S and/or Section 4(2) of the Securities Act of 1933, as amended.

On May 23, 2012, we sold 12,000,000 shares of our common stock at a price of US$0.001 per share for gross proceeds of US $12,000 pursuant to two subscription agreements.

We issued 6,000,000 of these shares to one U.S. person, who was an accredited investor (as that term is defined in Rule 501 of Regulation D under the Securities Act of 1933, as amended), and in issuing these shares to this investor we relied on the registration exemption provided for in Rule 506 of Regulation D and/or Section 4(2) of the Securities Act of 1933.

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We issued 6,000,000 of these shares to one non-U.S. persons (as that term is defined in Regulation S of the Securities Act of 1933, as amended) in an offshore transaction in which we relied on the registration exemption provided for in Regulation S and/or Section 4(2) of the Securities Act of 1933, as amended.

Exhibits

Exhibit  
Number Description
(3) Articles of Incorporation and Bylaws
3.1(1) Articles of Incorporation
3.2(1) Bylaws
(5) Opinion regarding Legality
5.1* Opinion of Clark Wilson LLP regarding the legality of the securities being registered
(10) Material Contracts
10.1(1) Share Purchase Agreement dated March 24, 2010 between Benjamin Cherniak and Online Disruptive Technologies, Inc.
10.2(1) Subscription Agreement between our company and Robbie Manis
10.3(1) Subscription Agreement between our company and Brian Hough
10.4(1) Subscription Agreement between our company and Peter Hough
10.5(2) Consulting Agreement dated November 1, 2011 with 1367826 Ontario Limited and Robbie Manis
10.6(2) Consulting Agreement dated November 1, 2011 with Kerry Chow
10.7(3) Loan Terms Agreement dated November 4, 2011 with Peter Hough
10.8(4) Mineral Property Acquisition Agreement dated November 21, 2011 with Minera Del Pacifico, S.A.
10.9(5) Form of Subscription Agreement for Non-US Subscriber
10.10(5) Form of Subscription Agreement for US Subscriber
(16) Letter From Former Auditor
16.1(6) Letter dated October 22, 2010 from Main Amundson and Associates
(21) Subsidiaries
21.1 Subsidiary of Online Disruptive Technologies, Inc.: Relationshipscoreboard.com Entertainment, Inc., a Nevada corporation
(23) Consents of Experts and Counsel
23.1* Consent of Chang Lee LLP
23.2* Consent of MNP LLP

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23.3* Consent of Clark Wilson LLP (included in Exhibit 5.1)

*Filed herewith.

(1) Incorporated by reference from our Registration Statement on Form S-1 filed on August 10, 2010
(2) Incorporated by reference from our Current Report on Form 8-K filed on November 3, 2011.
(3) Incorporated by reference from our Current Report on Form 8-K filed on November 8, 2011
(4) Incorporated by reference from our Current Report on Form 8-K filed on November 24, 2011
(5) Incorporated by reference from our Current Report on Form 8-K filed on May 23, 2012
(6) Incorporated by reference from our Registration Statement on Form S-1 filed on October 26, 2010

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Undertakings

The undersigned registrant hereby undertakes:

1. To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:

i. To include any prospectus required by section 10(a)(3) of the Securities Act of 1933;

ii. To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Securities and Exchange Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than 20% change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement; and

iii. To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement;

2. That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof;

3. To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering; and

4. That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use.

Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act of 1933 and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act of 1933 and will be governed by the final adjudication of such issue.

For the purpose of determining liability of the undersigned registrant under the Securities Act of 1933 to any purchaser in the distribution of the securities, the undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:

117


1. Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;

2. Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;

3. The portion of any other free writing prospectus relating to the offering containing material information about the undersigned company or its securities provided by or on behalf of the undersigned registrant; and

4. Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser;

118


Signatures

Pursuant to the requirements of the Securities Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized in the City of Las Vegas, State of Nevada, United States, on May 31, 2012.

ONLINE DISRUPTIVE TECHNOLOGIES, INC.

By:

/s/ Benjamin Cherniak
Benjamin Cherniak
President and Director
(Principal Executive Officer, Principal Financial Officer, and Principal Accounting Officer)
Date: May 31, 2012

Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities and on the dates indicated.

/s/ Benjamin Cherniak
Benjamin Cherniak
President and Director
(Principal Executive Officer, Principal Financial Officer, and Principal Accounting Officer)
Date: May 31, 2012

119


EX-5.1 2 exhibit5-1.htm OPINION OF CLARK WILSON LLP Online Disruptive Technologies, Inc.: Exhibit 5.1 - Filed by newsfilecorp.com
 
R. Stuart Wells
William A. Ruskin, 1
Bernard Pinsky, 4
William D. Holder
David W. Kington
R. Brock Johnston
Mark S. Weintraub
R. Barry Fraser
Brock H. Smith
D. Lawrence Munn, 8
Virgil Z. Hlus, 4
Jonathan L.S. Hodes, 1, 5
L.K. Larry Yen, 10
Conrad Y. Nest, 10
Valerie S. Dixon
Warren G. Brazier, 4
C. Michelle Tribe
Peter J.F. Ferrari
Anna D. Sekunova
Kyle M. Wilson
Raman Johal
Angela M. Blake
Christina J. Kim
Craig V. Rollins
Amaan Gangji
Maggie Cavallin
M. Douglas Howard
Patrick A. Williams
Roy A. Nieuwenburg
Nigel P. Kent, 1
Diane M. Bell
Neil P. Melliship
Kevin J. MacDonald
James A. Speakman
Nicole M. Byres
John C. Fiddick
Stewart L. Muglich, 8
Mark J. Longo, 2
Amy A. Mortimore
Richard T. Weiland
Adam M. Dlin
Veronica P. Franco
Satinder K. Sidhu
Oliver C. Hanson, 1
Jun Ho Song, 4, 8, 11
Jennifer R. Loeb
Parvinder K. Hardwick
Seva Batkin
Nafeesa Valli-Hasham
Rong (Lauren) Liang
Thomas R. Bell
Jordan Watson
W.W. Lyall D. Knott, Q.C.
Alexander Petrenko
William C. Helgason
Douglas W. Lahay
Anne L.B. Kober
Darren T. Donnelly
Don C. Sihota
Ethan P. Minsky, 6, 7, 9
Peter Kenward
R. Glen Boswall
Samantha Ip
Aaron B. Singer
Jane Glanville
Cam McTavish
Allyson L. Baker, 2
Jeffrey F. Vicq, 3
Vikram Dhir, 1
Sarah W. Jones
Shauna K.H. Towriss
Heather M. Hettiarachchi
Pratibha Sharma
Marianna Jasper
Victor S. Dudas
Rachelle J. Mezzarobba
Areet S. Kaila

  Of Counsel: James M. Halley, Q.C.  
    Derek J. Mullan, Q.C.  
  Associate Counsel: Michael J. Roman  
May 31, 2012 David Austin  

  Certain lawyers have been admitted to practice in one or more of the
  following jurisdictions as indicated beside each name:
               
Canada United States      
  1 Alberta 4 California 8 New York
BY EMAIL 2 Ontario 5 Colorado 9 Virginia
  3 Saskatchewan 6 District of Columbia 10 Washington
Online Disruptive Technologies, Inc.     7 Florida 11 Nevada
3120 S. Durango Dr. Suite 305              
Las Vegas, Nevada 89117              

Attention: Benjamin Cherniak, President
   
Dear Sirs:    
     
  Re: Online Disruptive Technologies, Inc. - Registration Statement on
    Form S-1/A Amendment No. 3

     We have acted as special counsel to Online Disruptive Technologies, Inc. (the “Company”), a Nevada corporation, in connection with the preparation of a registration statement on Form S-1/A, Amendment No. 3 (the “Registration Statement”) to be filed with the United States Securities and Exchange Commission (the “Commission”) for the registration of 2,000,100 shares of the Company’s common stock (the “Resale Shares”) for sale by the selling stockholders named in the Registration Statement (the “Selling Stockholders”), as further described in the Registration Statement.

     In connection with this opinion, we have reviewed:

  (a)

the Articles of Incorporation of the Company;

     
  (b)

the bylaws of the Company;

     
  (c)

Resolutions adopted by the board of directors of the Company pertaining to the Resale Shares dated November 16, 2009, December 2, 2009, and January 7, 2010;

     
  (d)

the Registration Statement and the exhibits thereto; and

     
  (e)

the Prospectus (the “Prospectus”) constituting a part of the Registration Statement.


HSBC Building  800 – 885 West Georgia Street  Vancouver BC V6C 3H1  Canada  Tel.: 604.687.5700  Fax: 604.687.6314  www.cwilson.com
 Some lawyers at Clark Wilson LLP practice through law corporations. 


- 2 -

     We have assumed that all signatures on all documents examined by us are genuine, that all documents submitted to us as originals are authentic and that all documents submitted to us as copies or as facsimiles of copies or originals, conform with the originals, which assumptions we have not independently verified. As to all questions of fact material to this opinion which have not been independently established, we have relied upon the statements or certificates of officers or representatives of the Company.

     Based upon the foregoing and the examination of such legal authorities as we have deemed relevant, and subject to the qualifications and further assumptions set forth below, we are of the opinion that the Resale Shares to be sold by the Selling Stockholders are duly authorized and are validly issued, fully paid and non-assessable.

     This opinion letter is opining upon and is limited to the current federal laws of the United States and the laws of the State of Nevada, including the statutory provisions, all applicable provisions of the Nevada constitution, and reported judicial decisions interpreting those laws, as such laws presently exist and to the facts as they presently exist. We express no opinion with respect to the effect or applicability of the laws of any other jurisdiction. We assume no obligation to revise or supplement this opinion letter should the laws of such jurisdiction be changed after the date hereof by legislative action, judicial decision or otherwise.

     We hereby consent to the filing of this opinion with the Commission as an exhibit to the Registration Statement in accordance with the requirements of Item 601(b)(5) of Regulation S-K under the Securities Act of 1933 (the “Securities Act”) and to the use of our name therein and in the related Prospectus under the caption “Legal Matters.” In giving such consent, we do not hereby admit that we are in the category of persons whose consent is required under Section 7 of the Securities Act or the rules and regulations of the Commission.

Yours truly,

/s/ Clark Wilson LLP

cc: United States Securities and Exchange Commission


EX-23.1 3 exhibit23-1.htm CONSENT OF CHANG LEE LLP Online Disruptive Technologies, Inc.: Exhibit 23.1 - Filed by newsfilecorp.com

CHANG LEE LLP
Chartered Accountants
  2300-1055 Dunsmuir Street
  Vancouver, B.C, V7X 1J1
  Tel: 604-685-8408
  Fax: 604-685-8594
  E-mail: info@changleellp.com

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We hereby consent to the use of our following reports included in the filing of the Registration Statement Form S-1/A (Post-Effective Amendment No.3), dated May 31, 2012.

Report dated September 13, 2010, with respect to the balance sheet of Online Disruptive Technologies, Inc. as at December 31, 2009 and the related statements of operations and comprehensive loss, stockholders' deficiency and cash flows for the period from November 16, 2009 (date of inception) to December 31, 2009.

Report dated March 7, 2011, with respect to the consolidated balance sheets of Online Disruptive Technologies, Inc. as at December 31, 2010 and December 31, 2009 and the related consolidated statements of operations and comprehensive loss, stockholders’ deficiency and cash flows for the year ended December 31, 2010, for the period from November 16, 2009 (date of inception) to December 31, 2009 and for the period cumulative from November 16, 2009 (date of inception) to December 31, 2010.

Report dated September 13, 2010, with respect to the balance sheet of Relationshipscoreboard.com Entertainment, Inc. as at December 31, 2009 and the related statements of operations and comprehensive loss, stockholders' deficiency and cash flows for the for the period from November 16, 2009 (date of inception) to December 31, 2009.

In addition, we consent to the reference to our firm under the caption "Experts" in the Registration Statement.

Vancouver, British Columbia, Canada /s/ Chang Lee LLP
May 31, 2012    Chartered Accountants


EX-23.2 4 exhibit23-2.htm CONSENT OF MNP LLP Online Disruptive Technologies, Inc.: Exhibit 23.2 - Filed by newsfilecorp.com

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We hereby consent to the use of our report dated March 19, 2012, with respect to the consolidated balance sheet of Online Disruptive Technologies, Inc. as at December 31, 2011 and the related consolidated statements of operations and comprehensive loss, stockholders' deficiency and cash flows for the year then ended, included in the filing of the Registration Statement Form S-1/A (Post-Effective Amendment No.3), dated May 31, 2012.

In addition, we consent to the reference to our firm under the caption "Experts" in the Registration Statement.

 

Vancouver, British Columbia, Canada        /s/ MNP LLP
May 31, 2012 Chartered Accountants

 

 


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(&#8220;ODT&#8221; or the &#8220;Company&#8221;) was incorporated on November 16, 2009 in the State of Nevada, U.S.A. The Company is in the business of operating websites with advertising revenue platforms. The Company has limited operations and in accordance with ASC 915, is considered a development stage company that has had no revenues from inception to date. The Company has a December 31 year-end.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> Effective March 24, 2010, the Company acquired 100% of the issued and outstanding shares of RelationshipScoreboard.com Entertainment Inc. (&#8220;RS&#8221; or &#8220;RelationshipScoreboard.com&#8221;), a company incorporated on November 16, 2009 in the state of Nevada, U.S.A. in exchange for 16,000,000 shares of the Company&#8217;s common stock. Upon the completion of the acquisition, the former sole shareholder of RS held 89% of the Company&#8217;s issued and outstanding common stock. As a result, the transaction was accounted for as a reverse takeover transaction (&#8220;RTO&#8221;) for accounting purpose, as RS was deemed to be the acquirer, and these consolidated financial statements are a continuation of the financial statements of RS. </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> These financial statements have been prepared with the ongoing assumption that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. The Company suffered a recurring loss and had a working capital deficit of $18,267 as at March 31, 2012 (December 31, 2011 &#8211; a working capital deficit of $34,972) which raises substantial doubt about the Company&#8217;s ability to continue as a going concern. These financial statements do no include any adjustments to the amounts and classification of assets and liabilities that might be necessary should the Company be unable to continue as a going concern. </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The operations of the Company have primarily been funded by the sale of common shares and loans received. Continued operations of the Company are dependent on the Company&#8217;s ability to complete equity financings or generate profitable operations in the future. Management&#8217;s plan in this regard is to secure additional funds through future equity financings. Such financings may not be available or may not be available on reasonable terms to the Company.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>Note 2 &#8211; Acquisition - ODT</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">In connection with the RTO described above and prior to the acquisition, ODT had no business and did not meet the definition of a business under ASC 805, &#8220;Accounting for Business Combinations&#8221;. Accordingly, the reverse takeover of ODT by RS has been accounted for as a capital transaction, in respect of which the net assets of ODT on March 24, 2010 were accounted for as a recapitalization of RS. A breakdown of ODT&#8217;s net assets as at March 24, 2010 is as follows:</p> <div align="center"> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="70%"> <tr valign="top"> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0); border-top: 1px solid rgb(0, 0, 0);">&#160;</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0); border-top: 1px solid rgb(0, 0, 0);" width="1%">&#160;</td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0); border-top: 1px solid rgb(0, 0, 0);" width="22%">March 24, 2010</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0); border-top: 1px solid rgb(0, 0, 0);" width="2%">&#160;</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Total assets &#8211; cash only</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="22%"> 14,910 </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> </tr> <tr valign="top"> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);">Total liabilities</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">&#160;</td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="22%"> (5,911 </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="2%">)</td> </tr> <tr> <td bgcolor="#e6efff">&#160;</td> <td bgcolor="#e6efff" width="1%">&#160;</td> <td bgcolor="#e6efff" width="22%">&#160;</td> <td bgcolor="#e6efff" width="2%">&#160;</td> </tr> <tr valign="top"> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);">Net assets acquired</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">$</td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="22%"> 8,999 </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="2%">&#160;</td> </tr> </table> </div> <p align="center" style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>Note 3 - Significant Accounting Policies</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>a) Basis of Presentation</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">These financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (&#8220;US GAAP&#8221;). All adjustments considered necessary for a fair presentation of financial position, results of operations and cash flows as at March 31, 2012 have been included.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>b) Accounting Method</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The Company&#8217;s financial statements are prepared using the accrual method of accounting.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>c) Use of Estimates</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant areas require use of estimates include valuation allowance for deferred income tax assets. Actual results could differ from those estimates.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>d) Foreign Currency Translation</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The Company&#8217;s functional currency is U.S. dollars. Transactions in other currencies are recorded in U.S. dollars at the rates of exchange prevailing when the transactions occur. Monetary assets and liabilities denominated in other currencies are translated into U.S. dollars at rates of exchange in effect at the balance sheet dates. Exchange gains and losses are recorded in the statements of operations.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>e) Cash and Cash Equivalents</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">Cash and cash equivalents consist entirely of readily available cash balances. There were no cash equivalents as of March 31, 2012 and December 31, 2011.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>f)</b> <b> <b>Stock-based Compensation</b> </b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The Company accounts its stock options and similar equity instruments issued in accordance with ASC 718, &#8220;Share-Based Payment&#8221;. Accordingly, compensation costs attributable to stock options or similar equity instruments granted are measured at the fair value at the grant date, and expensed over the expected vesting period. ASC 718 requires excess tax benefits be reported as a financing cash inflow rather than as a reduction of taxes paid.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">As at March 31, 2012 and December 31, 2011 the Company had no stock options issued and outstanding.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b> <b>g)</b> <b> <b>Revenue Recognition</b> </b> </b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">Operating revenue consist of advertising revenue. The point in time at which revenues are recognized is determined in accordance with ASC 605-10 (formerly Staff Accounting Bulletin No. 104, &#8220;Revenue Recognition&#8221;). Revenues are recorded when the Company delivers services to its customers and collection is reasonably estimated.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b> <b> <b>h) Income Taxes</b> </b> </b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">Income taxes are accounted for under the liability method of accounting for income taxes. Under the liability method, deferred tax liabilities and assets are recognized for the estimated future tax consequences attributable to differences between the amounts reported in the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted or substantially enacted income tax rates expected to apply when the asset is realized or the liability is settled. The effect of a change in income tax rates on deferred income tax liabilities and assets is recognized in income in the period that the change occurs. Deferred income tax assets are recognized to the extent that they are considered more likely than not to be realized.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The Financial Accounting Standards Board (FASB) has issued FASB ASC 740-10, &#8220;Accounting for Uncertainty in Income Taxes&#8221;. ASC 740-10 clarifies the accounting for uncertainty in income taxes recognized in an enterprise&#8217;s financial statements in accordance with prior literature FASB Statement No. 109, Accounting for Income Taxes. This standard requires a company to determine whether it is more likely than not that a tax position will be sustained will be sustained upon examination based upon the technical merits of the position. If the more-likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements. The implementation of this standard had no impact on the Company&#8217;s financial statements.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b> <b> <b>i) Comprehensive Income (Loss)</b> </b> </b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> The Company accounts for comprehensive income under the provisions of ASC Topic 220-10, <i>Comprehensive Income - Overall</i> , which establishes standards for reporting and display of comprehensive income, its components and accumulated balances. 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The amount of each loan is unsecured and non-interest bearing. Each loan shall be converted to common stock of the Company at the same per share price applicable to the next issuance by the Company of common shares (the &#8220;Next Equity Financing&#8221;). Such conversions shall take place contemporaneous with the closing of the Next Equity Financing with the subject common shares being issued to such persons as directed by the lender. The loans do not entail any fixed repayment term and shall be retired upon the loan conversion. </p> </td> </tr> <tr valign="top"> <td width="5%">&#160;</td> <td align="left">-</td> <td align="left" width="90%"> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt; margin: inherit;"> $400 payable to a director and principal shareholder of the Company. 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Prior to the acquisition and RTO (Note 1 and 2), RS engaged in the following equity transactions which have been restated using the exchange ratio established in the acquisition agreement to reflect 16,000,000 common shares issued in the reverse acquisition: </p> <table border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; border-color: rgb(0, 0, 0); font-family: times new roman,times,serif;" width="100%"> <tr> <td valign="top" width="5%">&#160;</td> <td valign="top" width="5%">-</td> <td> On November 16, 2009, RS issued 1,000 common shares at $0.0001 per share for total proceeds of $0.10. </td> </tr> <tr> <td valign="top">&#160;</td> <td valign="top">&#160;</td> <td>&#160;</td> </tr> <tr> <td valign="top">&#160;</td> <td valign="top">-</td> <td> On December 5, 2009, RS issued 15,999,000 common shares at $0.000025 per share for total proceeds of $400. </td> </tr> </table> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> Prior to the acquisition and RTO (Note 1 and 2), the Company engaged in the followings equity transactions: </p> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td width="5%">&#160;</td> <td align="left">-</td> <td align="left" width="90%"> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt; margin: inherit;"> On November 16, 2009, the Company issued 100 common shares at $0.001 per share for total proceeds of $0.10. </p> </td> </tr> <tr valign="top"> <td width="5%">&#160;</td> <td align="left">-</td> <td align="left" width="90%"> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt; margin: inherit;"> On December 2, 2009, the Company issued 200,000 common shares at $0.01 per share for total proceeds of $2,000. </p> </td> </tr> <tr valign="top"> <td width="5%">&#160;</td> <td align="left">-</td> <td align="left" width="90%"> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt; margin: inherit;"> On January 7, 2010, the Company issued 1,800,000 common shares at $0.01 per share for total proceeds of $18,000. </p> </td> </tr> </table> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> Upon the acquisition and RTO, 2,000,100 common shares issued by the Company prior to the acquisition were considered as a recapitalization to RS. </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> On February 24, 2011, the Company issued 6,000,000 common shares at $0.01 per share for total proceeds of $60,000. </p> <p align="center" style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <i>Share subscription received</i> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">During the three month ended March 31, 2012, the Company received loan proceeds of from a shareholder of the Company. The amount is unsecured and non-interest bearing. The loan shall be converted to common stock of the Company at the same per share price applicable to the next issuance by the Company of common shares (the &#8220;Next Equity Financing&#8221;). Such conversion shall take place contemporaneous with the closing of the Next Equity Financing with the subject common shares being issued to such persons as directed by the lender. The loan does not entail any fixed repayment term and shall be retired upon the loan conversion.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> The Company&#8217;s intent towards the above $25,000 loan is to issue the common shares of the Company at the same per share price applicable to the next issuance by the Company of common shares. Therefore, the Company has considered the loan amount as a share subscription received and recorded it as part of shareholders&#8217; equity. </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>Note 9 &#8211; Commitments and Guarantees</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The Company did not become a guarantor to any parties as at March 31, 2012.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> Effective November 1, 2011, the Company entered into a consulting agreement with 1367826 Ontario Limited (&#8220;OntarioCo&#8221;) and Robbie Manis, pursuant to which OntarioCo is to provide certain consulting services to our company including: sourcing and implementing new business opportunities; raising financing reasonably required from time to time by our company; coordinating all required accounting, reporting and disclosure; and fulfilling any other needed administrative functions. As consideration for the performance of the consulting services under the agreement, we agreed to pay OntarioCo the sum of $4,166.67 per month for the duration of the agreement, exclusive of any applicable sales tax. The agreement is for an indefinite period unless terminated by either party with sixty days advance written notice to the other party. </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> Effective November 1, 2011, we entered into a consulting agreement with Kerry Chow, pursuant to which Kerry Chow will provide certain consulting services to our company including: maintaining the accounting books and records on behalf of our company and our subsidiaries; preparing consolidated quarterly and annual financial statements for our company and our subsidiaries as well as assisting in the preparation of the related disclosure documents; coordinating the quarterly reviews and annual audits on behalf of our company and our subsidiaries; coordinating the preparation and filing of the annual income tax returns of our company and our subsidiaries; and any other accounting-related functions. As consideration for the performance of the consulting services under the agreement, we agreed to pay Kerry Chow the sum of $833.33 per month for the duration of the agreement, exclusive of any applicable sales tax. The agreement is for an indefinite period unless terminated by either party with sixty days advance written notice to the other party. </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">See Note 10.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>Note 10 &#8211; Subsequent Events</b> </p> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr> <td width="5%">&#160;</td> <td valign="top" width="5%">1.</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt; margin: inherit;"> On April 9, 2012, the Company undertook a private placement financing (the &#8221;Financing&#8221;) consisting of the issuance of 17,750,000 shares at a per share price of $0.001 for gross proceeds of $17,750. </p> </td> </tr> <tr> <td width="5%">&#160;</td> <td width="5%">&#160;</td> <td>&#160;</td> </tr> <tr> <td width="5%">&#160;</td> <td valign="top" width="5%">2.</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt; margin: inherit;">On April 4, 2012, a to-be-incorporated wholly owned Israeli subsidiary of the Company entered into a non-binding term sheet regarding the licensing of a biotechnology process with a division of Tel Aviv University. 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(&#8220;RS&#8221; or the &#8220;Company&#8221;) was incorporated on November 16, 2009 in the State of Nevada, U.S.A. The Company was established to operate a website with an advertising revenue platform. The Company has limited operations and in accordance with ASC 915, is considered a development stage company that has had no revenues from inception to date. The Company has a December 31 year-end.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">These financial statements have been prepared with the on-going assumption that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. As shown in the accompanying financial statements, the Company has incurred operating losses since inception and further losses are anticipated in the development of our business. As of December 31, 2009, the Company has limited financial resources and require additional financing to fund its operations. These factors raise substantial doubt about the Company&#8217;s ability to continue as a going concern. These financial statements do no include any adjustments to the amounts and classification of assets and liabilities that might be necessary should the Company be unable to continue as a going concern.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The operations of the Company have primarily been funded by the sale of common shares. Continued operations of the Company are dependent on the Company&#8217;s ability to complete equity financings or generate profitable operations in the future. Management&#8217;s plan in this regard is to secure additional funds through future equity financings. 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(&#8220;RS&#8221; or &#8220;RelationshipScoreboard.com&#8221;), a company incorporated on November 16, 2009 in the state of Nevada, U.S.A. in exchange for 16,000,000 shares of the Company&#8217;s common stock. Upon the completion of the acquisition, the former sole shareholder of RS is holding 89% of the Company&#8217;s issued and outstanding common stock. As a result, the transaction was accounted for as a reverse takeover transaction (&#8220;RTO&#8221;) for accounting purpose, as RS was deemed to be the acquirer, and these consolidated financial statements are a continuation of the financial statements of RS. The carrying amounts of RS&#8217;s assets and liabilities are included in these consolidated financial statements and 2009 comparative figures are those of RS. The consolidated statement of operations included the operations of RS for the year ended December 31, 2010 and the operations of ODT from March 25, 2010 to December 31, 2010.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">These financial statements have been prepared with the on-going assumption that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. The Company suffered recurring loss and had a working capital deficit of $63,151 as at December 31, 2010 (2009 &#8211; a working capital deficit of $779) which raises substantial doubt about the Company&#8217;s ability to continue as a going concern. These financial statements do no include any adjustments to the amounts and classification of assets and liabilities that might be necessary should the Company be unable to continue as a going concern.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The operations of the Company have primarily been funded by the sale of common shares and loans received. Continued operations of the Company are dependent on the Company&#8217;s ability to complete equity financings or generate profitable operations in the future. Management&#8217;s plan in this regard is to secure additional funds through future equity financings. 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The Company has a December 31 year-end.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">These financial statements have been prepared with the on-going assumption that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. As shown in the accompanying financial statements, the Company has incurred operating losses since inception and further losses are anticipated in the development of our business. As of December 31, 2009, the Company has limited financial resources and require additional financing to fund its operations. These factors raise substantial doubt about the Company&#8217;s ability to continue as a going concern. These financial statements do no include any adjustments to the amounts and classification of assets and liabilities that might be necessary should the Company be unable to continue as a going concern.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The operations of the Company have primarily been funded by the sale of common shares and loans received. Continued operations of the Company are dependent on the Company&#8217;s ability to complete equity financings or generate profitable operations in the future. Management&#8217;s plan in this regard is to secure additional funds through future equity financings. Such financings may not be available or may not be available on reasonable terms to the Company.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>Note 2 - Significant Accounting Policies</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>a) Basis of Presentation</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">These financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (&#8220;US GAAP&#8221;). All adjustments considered necessary for a fair presentation of financial position, results of operations and cash flows as at December 31, 2009 have been included.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>b) Accounting Method</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The Company&#8217;s financial statements are prepared using the accrual method of accounting.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>c) Use of Estimates</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant areas require use of estimates include valuation allowance for deferred income tax assets. Actual results could differ from those estimates.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>d) Foreign Currency Translation</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The Company&#8217;s functional currency is U.S. dollars. Transactions in other currencies are recorded in U.S. dollars at the rates of exchange prevailing when the transactions occur. Monetary assets and liabilities denominated in other currencies are translated into U.S. dollars at rates of exchange in effect at the balance sheet dates. Exchange gains and losses are recorded in the statements of operations.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>e) Cash and Cash Equivalents</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">Cash and cash equivalents consist entirely of readily available cash balances. There was no cash equivalent as of December 31, 2009.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>f) Stock-based Compensation</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The Company adopted ASC 718, &#8220;Share-Based Payment,&#8221; to account for its stock options and similar equity instruments issued. Accordingly, compensation costs attributable to stock options or similar equity instruments granted are measured at the fair value at the grant date, and expensed over the expected vesting period. ASC 718 requires excess tax benefits be reported as a financing cash inflow rather than as a reduction of taxes paid.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">As at December 31, 2009, the Company has no stock option issued and outstanding.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>g) Revenue Recognition</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">Operating revenue consist of advertising revenue. The point in time at which revenues are recognized is determined in accordance with ASC 605-10 (formerly Staff Accounting Bulletin No. 104, &#8220;Revenue Recognition&#8221;). Revenues are recorded when the Company delivers services to its customers and collection is reasonably estimated.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The Company has not generated any revenue since its inception.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>h) Income Taxes</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">Income taxes are accounted for under the liability method of accounting for income taxes. Under the liability method, deferred tax liabilities and assets are recognized for the estimated future tax consequences attributable to differences between the amounts reported in the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted or substantially enacted income tax rates expected to apply when the asset is realized or the liability is settled. The effect of a change in income tax rates on deferred income tax liabilities and assets is recognized in income in the period that the change occurs. Deferred income tax assets are recognized to the extent that they are considered more likely than not to be realized.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The Financial Accounting Standards Board (FASB) has issued FASB ASC 740-10, &#8220;Accounting for Uncertainty in Income Taxes&#8221;. ASC 740-10 clarifies the accounting for uncertainty in income taxes recognized in an enterprise&#8217;s financial statements in accordance with prior literature FASB Statement No. 109, Accounting for Income Taxes. This standard requires a company to determine whether it is more likely than not that a tax position will be sustained upon examination based upon the technical merits of the position. If the more-likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements. The implementation of this standard has no impact on the Company&#8217;s financial statements.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>i) Comprehensive Income (Loss)</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The Company accounts for comprehensive income under the provisions of ASC Topic 220-10, &#8220;Comprehensive Income - Overall,&#8221; which establishes standards for reporting and display of comprehensive income, its components and accumulated balances. The Company is disclosing this information on its Statement of Operations and Comprehensive Loss.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>j) Earnings (Loss) Per Share</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The Company adopted Financial Accounting Standards ASC subtopic 260-10, &#8220;Earnings Per Share&#8221;, which simplifies the computation of earning per share requiring the restatement of all prior periods.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">Basic loss per share is computed on the basis of the weighted average number of common shares outstanding during each year.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">Diluted loss per share is computed on the basis of the weighted average number of common shares and dilutive securities outstanding. As at December 31, 2009, diluted loss per share is equal to basic loss per share as there was no other security instrument outstanding as at December 31, 2009.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>k) Financial Instruments and Fair Value of Financial Instruments</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">Fair Value of Financial Instruments &#8211; the Company adopted SFAS ASC 820-10-50, &#8220;Fair Value Measurements&#8221;. This guidance defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The three levels are defined as follows:</p> <p align="justify" style="margin-left: 5%; font-family: times new roman,times,serif; font-size: 10pt;">Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.</p> <p align="justify" style="margin-left: 5%; font-family: times new roman,times,serif; font-size: 10pt;">Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.</p> <p align="justify" style="margin-left: 5%; font-family: times new roman,times,serif; font-size: 10pt;">Level 3 inputs to valuation methodology are unobservable and significant to the fair measurement.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The carrying amounts reported in the balance sheets for the cash and cash equivalents, accounts payable and accrued liabilities, and loan payable each qualify as financial instruments and are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>l) Subsequent Event</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The Company has adopted ASC 855, &#8220;Subsequent Events,&#8221; which establishes general standards of accounting for disclosure of events that occur after the balance sheet date but before financial statements are issued or available to be issued. It requires the disclosure of the date through which an entity has evaluated subsequent events and whether that date represents the date the financial statements were issued or were available to be issued.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">In preparing these financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through January 1, 2010 and September 13, 2010, the date the financial statements were available to be issued.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>m) Accounting Codification</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">On July 1, 2009, the FASB launched the &#8220;FASB Accounting Standards Codification&#8221; (the &#8220;FASB ASC&#8221;) as the single source of authoritative non-governmental U.S. GAAP. The FASB ASC did not change current U.S. GAAP, but simplified user access to all authoritative U.S. GAAP by organizing all the authoritative literature related to a particular topic in one place. All existing accounting standard documents were superseded and all other accounting literature not included in the FASB ASC is now considered non-authoritative. The adoption of the FASB ASC did not have an impact on the Company&#8217;s financial statements.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>n) Recently Adopted Accounting Pronouncements</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">In September 2009, the FASB issued Accounting Standards Update 2009-12, Fair Value Measurements and Disclosures (Topic 820): Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent). This update provides amendments to Topic 820 for the fair value measurement of investments in certain entities that calculate net asset value per share (or its equivalent). It is effective for interim and annual periods ending after December 15, 2009. Early application is permitted in financial statements for earlier interim and annual periods that have not been issued. The Company adopted this standard for its fiscal year ended December 31, 2009 and has assessed that the adoption of this standard did not have a material effect on its financial statements.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">In January 2010, the FASB issued Accounting Standards Update 2010-01, Equity (Topic 505): Accounting for Distributions to Shareholders with Components of Stock and Cash (A Consensus of the FASB Emerging Issues Task Force). This amendment to Topic 505 clarifies the stock portion of a distribution to shareholders that allows them to elect to receive cash or stock with a limit on the amount of cash that will be distributed is not a stock dividend for purposes of applying Topics 505 and 260. Effective for interim and annual periods ending on or after December 15, 2009, and would be applied on a retrospective basis. The Company adopted this standard for its fiscal year ended December 31, 2009 and has assessed that the adoption of this standard did not have a material effect on its financial statements.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">In January 2010, the FASB issued Accounting Standards Update 2010-02, Consolidation (Topic 810): Accounting and Reporting for Decreases in Ownership of a Subsidiary. This amendment to Topic 810 clarifies, but does not change, the scope of current US GAAP. It clarifies the decrease in ownership provisions of Subtopic 810-10 and removes the potential conflict between guidance in that Subtopic and asset derecognition and gain or loss recognition guidance that may exist in other US GAAP. An entity will be required to follow the amended guidance beginning in the period that it first adopts FAS 160 (now included in Subtopic 810-10). For those entities that have already adopted FAS 160, the amendments are effective at the beginning of the first interim or annual reporting period ending on or after December 15, 2009. The amendments should be applied retrospectively to the first period that an entity adopted FAS 160. The Company adopted this standard for its fiscal year ended December 31, 2009 and has assessed that the adoption of this standard did not have a material effect on its financial statements.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>o) Recently Issued Accounting Pronouncements</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">In June 2009, the FASB ASC 860-10, &#8220;Accounting for Transfers of Financial Assets,&#8221; eliminates the concept of a qualifying special-purpose entity (&#8220;QSPE&#8221;), clarifies and amends the de-recognition criteria for a transfer to be accounted for as a sale, amends and clarifies the unit of account eligible for sale accounting and requires that a transferor initially measure at fair value and recognize all assets obtained and liabilities incurred as a result of a transfer of an entire financial asset or group of financial assets accounted for as a sale. This standard is effective for fiscal years beginning after November 15, 2009. The Company is currently evaluating the potential impact of this standard on its financial statements, but does not expect it to have a material effect.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">In June 2009, the FASB issued FASB ASC 810-10-65 which amends the consolidation guidance applicable to a variable interest entity (&#8220;VIE&#8221;). This standard also amends the guidance governing the determination of whether an enterprise is the primary beneficiary of a VIE, and is therefore required to consolidate an entity, by requiring a qualitative analysis rather than a quantitative analysis. Previously, the standard required reconsideration of whether an enterprise was the primary beneficiary of a VIE only when specific events had occurred. This standard is effective for fiscal years beginning after November 15, 2009, and for interim periods within those fiscal years. Early adoption is prohibited. The Company is currently evaluating the potential impact of the adoption of this standard on its financial statements, but does not expect it to have a material effect.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">In July 2009, the FASB ratified the consensus reached by EITF (Emerging Issues Task Force) issued EITF No. 09-1, (ASC Topic 470) "Accounting for Own-Share Lending Arrangements in Contemplation of Convertible Debt Issuance" ("EITF 09-1"). The provisions of EITF 09-1, clarifies the accounting treatment and disclosure of share-lending arrangements that are classified as equity in the financial statements of the share lender. An example of a share-lending arrangement is an agreement between the Company (share lender) and an investment bank (share borrower) which allows the investment bank to use the loaned shares to enter into equity derivative contracts with investors. EITF 09-1 is effective for fiscal years that beginning on or after December 15, 2009 and requires retrospective application for all arrangements outstanding as of the beginning of fiscal years beginning on or after December 15, 2009. Share-lending arrangements that have been terminated as a result of counterparty default prior to December 15, 2009, but for which the entity has not reached a final settlement as of December 15, 2009 are within the scope. The Company does not expect the provisions of EITF 09-1 to have a material effect on the financial position, results of operations or cash flows of the Company.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">In October 2009, the FASB issued Accounting Standards Update 2009-13, Revenue Recognition (Topic 605): Multiple-Deliverable Revenue Arrangements. This update addressed the accounting for multiple-deliverable arrangements to enable vendors to account for products or services (deliverables) separately rather than a combined unit and will be separated in more circumstances that under existing US GAAP. This amendment has eliminated that residual method of allocation. Effective prospectively for revenue arrangements entered into or materially modified in fiscal years beginning on or after June 15, 2010. Early adoption is permitted. The Company does not expect the provisions of ASU 2009-13 to have a material effect on the financial position, results of operations or cash flows of the Company.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">In January 2010, the FASB issued ASU No. 2010-06 regarding fair value measurements and disclosures and improvement in the disclosure about fair value measurements. This ASU requires additional disclosures regarding significant transfers in and out of Levels 1 and 2 of fair value measurements, including a description of the reasons for the transfers. Further, this ASU requires additional disclosures for the activity in Level 3 fair value measurements, requiring presentation of information about purchases, sales, issuances, and settlements in the reconciliation for fair value measurements. This ASU is effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. The Company is currently evaluating the impact of this ASU; however, the Company does not expect the adoption of this ASU to have a material impact on our financial statements.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">In February 2010, the FASB issued ASC No. 2010-09, &#8220;Amendments to Certain Recognition and Disclosure Requirements&#8221;, which eliminates the requirement for SEC filers to disclose the date through which an entity has evaluated subsequent events. ASC No. 2010-09 is effective for its fiscal quarter beginning after 15 December 2010. The adoption of ASC No. 2010-09 is not expected to have a material impact on the Company&#8217;s financial statements.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">ASU No. 2010-13 was issued in April 2010, and clarified the classification of an employee share based payment award with an exercise price denominated in the currency of a market in which the underlying security trades. This ASU will be effective for the first fiscal quarter beginning after December 15, 2010, with early adoption permitted. The adoption of ASU No. 2010-13 is not expected to have a material impact on the Company&#8217;s financial statements.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">Other accounting pronouncements that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company&#8217;s financial statements upon adoption.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>Note 2 &#8211; Acquisition - ODT</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">In connection with the RTO described above and prior to the acquisition, ODT had no business and did not meet the definition of a business under ASC 805, &#8220;Accounting for Business Combinations&#8221;. Accordingly, the reverse takeover of ODT by RS has been accounted for as a capital transaction, in respect of which the net assets of ODT on March 24, 2010 were accounted for as a recapitalization of RS. A breakdown of ODT&#8217;s net assets as at March 24, 2010 is as follows:</p> <table align="center" border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="80%"> <tr valign="top"> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0); border-top: 1px solid rgb(0, 0, 0);">&#160;</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0); border-top: 1px solid rgb(0, 0, 0);" width="1%">&#160;</td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0); border-top: 1px solid rgb(0, 0, 0);" width="12%">March 24, 2010</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0); border-top: 1px solid rgb(0, 0, 0);" width="2%">&#160;</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Total assets &#8211; cash only</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%">&#160;14,910</td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> </tr> <tr valign="top"> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);">Total liabilities</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">&#160;</td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%">(5,911</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="2%">)</td> </tr> <tr> <td bgcolor="#e6efff">&#160;</td> <td bgcolor="#e6efff" width="1%">&#160;</td> <td bgcolor="#e6efff" width="12%">&#160;</td> <td bgcolor="#e6efff" width="2%">&#160;</td> </tr> <tr valign="top"> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);">Net assets acquired</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="1%">$</td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" width="12%">&#160;8,999</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="2%">&#160;</td> </tr> </table> <p align="center" style="font-family: times new roman,times,serif; font-size: 10pt;">&#160;</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>Note 2 - Significant Accounting Policies</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>a) Basis of Presentation</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">These financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (&#8220;US GAAP&#8221;). All adjustments considered necessary for a fair presentation of financial position, results of operations and cash flows as at December 31, 2009 have been included.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>b) Accounting Method</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The Company&#8217;s financial statements are prepared using the accrual method of accounting.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>c) Use of Estimates</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant areas require use of estimates include valuation allowance for deferred income tax assets. Actual results could differ from those estimates.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>d) Foreign Currency Translation</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The Company&#8217;s functional currency is U.S. dollars. Transactions in other currencies are recorded in U.S. dollars at the rates of exchange prevailing when the transactions occur. Monetary assets and liabilities denominated in other currencies are translated into U.S. dollars at rates of exchange in effect at the balance sheet dates. Exchange gains and losses are recorded in the statements of operations.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>e) Cash and Cash Equivalents</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">Cash and cash equivalents consist entirely of readily available cash balances. There was no cash equivalent as of December 31, 2009.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>f) Stock-based Compensation</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The Company adopted ASC 718, &#8220;Share-Based Payment,&#8221; to account for its stock options and similar equity instruments issued. Accordingly, compensation costs attributable to stock options or similar equity instruments granted are measured at the fair value at the grant date, and expensed over the expected vesting period. ASC 718 requires excess tax benefits be reported as a financing cash inflow rather than as a reduction of taxes paid.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">As at December 31, 2009, the Company has no stock option issued and outstanding.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>g) Revenue Recognition</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">Operating revenue consist of advertising revenue. The point in time at which revenues are recognized is determined in accordance with ASC 605-10 (formerly Staff Accounting Bulletin No. 104, &#8220;Revenue Recognition&#8221;). Revenues are recorded when the Company delivers services to its customers and collection is reasonably estimated.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The Company has not generated any revenue since its inception.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>h) Income Taxes</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">Income taxes are accounted for under the liability method of accounting for income taxes. Under the liability method, deferred tax liabilities and assets are recognized for the estimated future tax consequences attributable to differences between the amounts reported in the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted or substantially enacted income tax rates expected to apply when the asset is realized or the liability is settled. The effect of a change in income tax rates on deferred income tax liabilities and assets is recognized in income in the period that the change occurs. Deferred income tax assets are recognized to the extent that they are considered more likely than not to be realized.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The Financial Accounting Standards Board (FASB) has issued FASB ASC 740-10, &#8220;Accounting for Uncertainty in Income Taxes&#8221;. ASC 740-10 clarifies the accounting for uncertainty in income taxes recognized in an enterprise&#8217;s financial statements in accordance with prior literature FASB Statement No. 109, Accounting for Income Taxes. This standard requires a company to determine whether it is more likely than not that a tax position will be sustained upon examination based upon the technical merits of the position. If the more-likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements. The implementation of this standard has no impact on the Company&#8217;s financial statements.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>i) Comprehensive Income (Loss)</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The Company accounts for comprehensive income under the provisions of ASC Topic 220-10, &#8220;Comprehensive Income &#8211; Overall,&#8221; which establishes standards for reporting and display of comprehensive income, its components and accumulated balances. The Company is disclosing this information on its Statement of Operations and Comprehensive Loss.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>j) Earnings (Loss) Per Share</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The Company adopted Financial Accounting Standards ASC subtopic 260-10, &#8220;Earnings Per Share&#8221;, which simplifies the computation of earning per share requiring the restatement of all prior periods.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">Basic loss per share is computed on the basis of the weighted average number of common shares outstanding during each year.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">Diluted loss per share is computed on the basis of the weighted average number of common shares and dilutive securities outstanding. As at December 31, 2009, the diluted loss per share is equal to basic loss per share as there was no other security instrument outstanding as at December 31, 2009.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>k) Financial Instruments and Fair Value of Financial Instruments</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> Fair Value of Financial Instruments &#8211; the Company adopted SFAS ASC 820-10-50, &#8220; <i>Fair Value Measurements&#8221;. This guidance</i> defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The three levels are defined as follows: </p> <ul style="text-align: justify;"> <li style="font-family: times new roman,times,serif; font-size: 10pt;"> <p style="font-family: times new roman,times,serif; font-size: 10pt;">Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.</p> </li> <li style="font-family: times new roman,times,serif; font-size: 10pt;"> <p style="font-family: times new roman,times,serif; font-size: 10pt;">Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.</p> </li> <li style="font-family: times new roman,times,serif; font-size: 10pt;"> <p style="font-family: times new roman,times,serif; font-size: 10pt;">Level 3 inputs to valuation methodology are unobservable and significant to the fair measurement.</p> </li> </ul> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The carrying amounts reported in the balance sheets for the cash and cash equivalents and accounts payable and accrued liabilities each qualify as financial instruments and are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>l) Subsequent Event</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The Company has adopted ASC 855, &#8220;Subsequent Events,&#8221; which establishes general standards of accounting for disclosure of events that occur after the balance sheet date but before financial statements are issued or available to be issued. It requires the disclosure of the date through which an entity has evaluated subsequent events and whether that date represents the date the financial statements were issued or were available to be issued.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">In preparing these financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through January 1, 2010 and September 13, 2010, the date the financial statements were available to be issued.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>m) Accounting Codification</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">On July 1, 2009, the FASB launched the &#8220;FASB Accounting Standards Codification&#8221; (the &#8220;FASB ASC&#8221;) as the single source of authoritative non-governmental U.S. GAAP. The FASB ASC did not change current U.S. GAAP, but simplified user access to all authoritative U.S. GAAP by organizing all the authoritative literature related to a particular topic in one place. All existing accounting standard documents were superseded and all other accounting literature not included in the FASB ASC is now considered non-authoritative. The adoption of the FASB ASC did not have an impact on the Company&#8217;s financial statements.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>n) Recently Adopted Accounting Pronouncements</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">In September 2009, the FASB issued Accounting Standards Update 2009-12, Fair Value Measurements and Disclosures (Topic 820): Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent). This update provides amendments to Topic 820 for the fair value measurement of investments in certain entities that calculate net asset value per share (or its equivalent). It is effective for interim and annual periods ending after December 15, 2009. Early application is permitted in financial statements for earlier interim and annual periods that have not been issued. The Company adopted this standard for its fiscal year ended December 31, 2009 and has assessed that the adoption of this standard did not have a material effect on its financial statements.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">In January 2010, the FASB issued Accounting Standards Update 2010-01, Equity (Topic 505): Accounting for Distributions to Shareholders with Components of Stock and Cash (A Consensus of the FASB Emerging Issues Task Force). This amendment to Topic 505 clarifies the stock portion of a distribution to shareholders that allows them to elect to receive cash or stock with a limit on the amount of cash that will be distributed is not a stock dividend for purposes of applying Topics 505 and 260. Effective for interim and annual periods ending on or after December 15, 2009, and would be applied on a retrospective basis. The Company adopted this standard for its fiscal year ended December 31, 2009 and has assessed that the adoption of this standard did not have a material effect on its financial statements.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">In January 2010, the FASB issued Accounting Standards Update 2010-02, Consolidation (Topic 810): Accounting and Reporting for Decreases in Ownership of a Subsidiary. This amendment to Topic 810 clarifies, but does not change, the scope of current US GAAP. It clarifies the decrease in ownership provisions of Subtopic 810-10 and removes the potential conflict between guidance in that Subtopic and asset derecognition and gain or loss recognition guidance that may exist in other US GAAP. An entity will be required to follow the amended guidance beginning in the period that it first adopts FAS 160 (now included in Subtopic 810-10). For those entities that have already adopted FAS 160, the amendments are effective at the beginning of the first interim or annual reporting period ending on or after December 15, 2009. The amendments should be applied retrospectively to the first period that an entity adopted FAS 160. The Company adopted this standard for its fiscal year ended December 31, 2009 and has assessed that the adoption of this standard did not have a material effect on its financial statements.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>o) Recently Issued Accounting Pronouncements</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">In June 2009, the FASB ASC 860-10, &#8220;Accounting for Transfers of Financial Assets,&#8221; eliminates the concept of a qualifying special-purpose entity (&#8220;QSPE&#8221;), clarifies and amends the de-recognition criteria for a transfer to be accounted for as a sale, amends and clarifies the unit of account eligible for sale accounting and requires that a transferor initially measure at fair value and recognize all assets obtained and liabilities incurred as a result of a transfer of an entire financial asset or group of financial assets accounted for as a sale. This standard is effective for fiscal years beginning after November 15, 2009. The Company is currently evaluating the potential impact of this standard on its financial statements, but does not expect it to have a material effect.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">In June 2009, the FASB issued FASB ASC 810-10-65 which amends the consolidation guidance applicable to a variable interest entity (&#8220;VIE&#8221;). This standard also amends the guidance governing the determination of whether an enterprise is the primary beneficiary of a VIE, and is therefore required to consolidate an entity, by requiring a qualitative analysis rather than a quantitative analysis. Previously, the standard required reconsideration of whether an enterprise was the primary beneficiary of a VIE only when specific events had occurred. This standard is effective for fiscal years beginning after November 15, 2009, and for interim periods within those fiscal years. Early adoption is prohibited. The Company is currently evaluating the potential impact of the adoption of this standard on its financial statements, but does not expect it to have a material effect.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">In July 2009, the FASB ratified the consensus reached by EITF (Emerging Issues Task Force) issued EITF No. 09-1, (ASC Topic 470) "Accounting for Own-Share Lending Arrangements in Contemplation of Convertible Debt Issuance" ("EITF 09-1"). The provisions of EITF 09-1, clarifies the accounting treatment and disclosure of share-lending arrangements that are classified as equity in the financial statements of the share lender. An example of a share-lending arrangement is an agreement between the Company (share lender) and an investment bank (share borrower) which allows the investment bank to use the loaned shares to enter into equity derivative contracts with investors. EITF 09-1 is effective for fiscal years that beginning on or after December 15, 2009 and requires retrospective application for all arrangements outstanding as of the beginning of fiscal years beginning on or after December 15, 2009. Share-lending arrangements that have been terminated as a result of counterparty default prior to December 15, 2009, but for which the entity has not reached a final settlement as of December 15, 2009 are within the scope. The Company does not expect the provisions of EITF 09-1 to have a material effect on the financial position, results of operations or cash flows of the Company.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">In October 2009, the FASB issued Accounting Standards Update 2009-13, Revenue Recognition (Topic 605): Multiple-Deliverable Revenue Arrangements. This update addressed the accounting for multiple-deliverable arrangements to enable vendors to account for products or services (deliverables) separately rather than a combined unit and will be separated in more circumstances that under existing US GAAP. This amendment has eliminated that residual method of allocation. Effective prospectively for revenue arrangements entered into or materially modified in fiscal years beginning on or after June 15, 2010. Early adoption is permitted. The Company does not expect the provisions of ASU 2009-13 to have a material effect on the financial position, results of operations or cash flows of the Company.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">In January 2010, FASB issued ASU No. 2010-06 regarding fair value measurements and disclosures and improvement in the disclosure about fair value measurements. This ASU requires additional disclosures regarding significant transfers in and out of Levels 1 and 2 of fair value measurements, including a description of the reasons for the transfers. Further, this ASU requires additional disclosures for the activity in Level 3 fair value measurements, requiring presentation of information about purchases, sales, issuances, and settlements in the reconciliation for fair value measurements. This ASU is effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. The Company is currently evaluating the impact of this ASU; however, the Company does not expect the adoption of this ASU to have a material impact on our financial statements.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">In February 2010, the FASB issued ASC No. 2010-09, &#8220;Amendments to Certain Recognition and Disclosure Requirements&#8221;, which eliminates the requirement for SEC filers to disclose the date through which an entity has evaluated subsequent events. ASC No. 2010-09 is effective for its fiscal quarter beginning after 15 December 2010. The adoption of ASC No. 2010-09 is not expected to have a material impact on the Company&#8217;s financial statements.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">ASU No. 2010-13 was issued in April 2010, and clarified the classification of an employee share based payment award with an exercise price denominated in the currency of a market in which the underlying security trades. This ASU will be effective for the first fiscal quarter beginning after December 15, 2010, with early adoption permitted. The adoption of ASU No. 2010-13 is not expected to have a material impact on the Company&#8217;s financial statements.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">Other accounting pronouncements that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company&#8217;s financial statements upon adoption.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>Note 3 - Significant Accounting Policies</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>a) Basis of Presentation</b> <br/> These financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (&#8220;US GAAP&#8221;). All adjustments considered necessary for a fair presentation of financial position, results of operations and cash flows as at December 31, 2010 have been included. </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>b) Accounting Method</b> <br/> The Company&#8217;s financial statements are prepared using the accrual method of accounting. </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>c) Use of Estimates</b> <br/> The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant areas require use of estimates include valuation allowance for deferred income tax assets. Actual results could differ from those estimates. </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>d) Foreign Currency Translation</b> <br/> The Company&#8217;s functional currency is U.S. dollars. Transactions in other currencies are recorded in U.S. dollars at the rates of exchange prevailing when the transactions occur. Monetary assets and liabilities denominated in other currencies are translated into U.S. dollars at rates of exchange in effect at the balance sheet dates. Exchange gains and losses are recorded in the statements of operations. </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>e) Cash and Cash Equivalents</b> <br/> Cash and cash equivalents consist entirely of readily available cash balances. There was no cash equivalents as of December 31, 2010 and 2009. </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>f) Stock-based Compensation</b> <br/> The Company accounts its stock options and similar equity instruments issued in accordance with ASC 718, &#8220;Share-Based Payment&#8221;. Accordingly, compensation costs attributable to stock options or similar equity instruments granted are measured at the fair value at the grant date, and expensed over the expected vesting period. ASC 718 requires excess tax benefits be reported as a financing cash inflow rather than as a reduction of taxes paid. </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">As at December 31, 2010 the Company had no stock options issued and outstanding.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>g) Revenue Recognition</b> <br/> Operating revenue consist of advertising revenue. The point in time at which revenues are recognized is determined in accordance with ASC 605-10 (formerly Staff Accounting Bulletin No. 104, &#8220;Revenue Recognition&#8221;). Revenues are recorded when the Company delivers services to its customers and collection is reasonably estimated. </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>h) Income Taxes</b> <br/> Income taxes are accounted for under the liability method of accounting for income taxes. Under the liability method, deferred tax liabilities and assets are recognized for the estimated future tax consequences attributable to differences between the amounts reported in the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted or substantially enacted income tax rates expected to apply when the asset is realized or the liability is settled. The effect of a change in income tax rates on deferred income tax liabilities and assets is recognized in income in the period that the change occurs. Deferred income tax assets are recognized to the extent that they are considered more likely than not to be realized. </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The Financial Accounting Standards Board (FASB) has issued FASB ASC 740-10, &#8220;Accounting for Uncertainty in Income Taxes&#8221;. ASC 740-10 clarifies the accounting for uncertainty in income taxes recognized in an enterprise&#8217;s financial statements in accordance with prior literature FASB Statement No. 109, Accounting for Income Taxes. This standard requires a company to determine whether it is more likely than not that a tax position will be sustained will be sustained upon examination based upon the technical merits of the position. If the more-likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements. The implementation of this standard had no impact on the Company&#8217;s financial statements.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>i) Comprehensive Income (Loss)</b> <br/> The Company accounts for comprehensive income under the provisions of ASC Topic 220-10, <i>Comprehensive Income - Overall</i> , which establishes standards for reporting and display of comprehensive income, its components and accumulated balances. The Company is disclosing this information on its Statements of Operations and Comprehensive Loss. </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>j) Earnings (Loss) Per Share</b> <br/> The Company adopted Financial Accounting Standards ASC subtopic 260-10, &#8220;Earnings Per Share&#8221;, which simplifies the computation of earning per share requiring the restatement of all prior periods. </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">Basic loss per share is computed on the basis of the weighted average number of common shares outstanding during each year.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">Diluted loss per share is computed on the basis of the weighted average number of common shares and dilutive securities outstanding. For the years ended December 31, 2010 and December 31, 2009, the basic loss per share is equal to the diluted loss per share as there are no potential dilutive securities.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>k) Financial Instruments and Fair Value of Financial Instruments</b> <br/> Fair Value of Financial Instruments &#8211; the Company adopted SFAS ASC 820-10-50, &#8220;Fair Value Measurements&#8221;. This guidance defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The three levels are defined as follows: </p> <ul style="text-align: justify;"> <li style="font-family: times new roman,times,serif; font-size: 10pt;"> <p style="font-family: times new roman,times,serif; font-size: 10pt;">Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.</p> </li> <li style="font-family: times new roman,times,serif; font-size: 10pt;"> <p style="font-family: times new roman,times,serif; font-size: 10pt;">Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.</p> </li> <li style="font-family: times new roman,times,serif; font-size: 10pt;"> <p style="font-family: times new roman,times,serif; font-size: 10pt;">Level 3 inputs to valuation methodology are unobservable and significant to the fair measurement.</p> </li> </ul> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The carrying amounts reported in the balance sheets for the cash and cash equivalents, accounts payable and accrued liabilities and loan payable each qualify as financial instruments and are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>l) Website Development Costs</b> <br/> Website development costs relate to the development of the Company's Internet website. These costs have been capitalized as incurred and installed, and are being amortized over the estimated useful life of three years on a straight line basis. The Company accounts for these costs in accordance with ASC 350, <i>Intangibles,</i> which specifies the appropriate accounting for costs incurred in connection with the development and maintenance of websites. </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>m) Recently Adopted Accounting Pronouncements</b> <br/> In June 2009, the FASB ASC 860-10, &#8220;Accounting for Transfers of Financial Assets,&#8221; eliminates the concept of a qualifying special-purpose entity (&#8220;QSPE&#8221;), clarifies and amends the de-recognition criteria for a transfer to be accounted for as a sale, amends and clarifies the unit of account eligible for sale accounting and requires that a transferor initially measure at fair value and recognize all assets obtained and liabilities incurred as a result of a transfer of an entire financial asset or group of financial assets accounted for as a sale. This standard is effective for fiscal years beginning after November 15, 2009. The Company has adopted this standard on January 1, 2010 and has assessed that the adoption of this standard has no material effect on its financial statements. </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">In June 2009, the FASB issued FASB ASC 810-10-65 which amends the consolidation guidance applicable to a variable interest entity (&#8220;VIE&#8221;). This standard also amends the guidance governing the determination of whether an enterprise is the primary beneficiary of a VIE, and is therefore required to consolidate an entity, by requiring a qualitative analysis rather than a quantitative analysis. Previously, the standard required reconsideration of whether an enterprise was the primary beneficiary of a VIE only when specific events had occurred. This standard is effective for fiscal years beginning after November 15, 2009, and for interim periods within those fiscal years. Early adoption is prohibited. The Company has adopted this standard on January 1, 2010 and has assessed that the adoption of this standard has no material effect on its financial statements.</p> <p style="text-align: justify;">In September 2009, the FASB issued Accounting Standards Update 2009-12, Fair Value Measurements and Disclosures (Topic 820): Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent). This update provides amendments to Topic 820 for the fair value measurement of investments in certain entities that calculate net asset value per share (or its equivalent). It is effective for interim and annual periods ending after December 15, 2009. Early application is permitted in financial statements for earlier interim and annual periods that have not been issued. The Company has adopted this standard January 1, 2010 and has assessed that the adoption of this standard has no material effect on its financial statements.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">In July 2009, the FASB ratified the consensus reached by EITF (Emerging Issues Task Force) issued EITF No. 09-1, (ASC Topic 470) "Accounting for Own-Share Lending Arrangements in Contemplation of Convertible Debt Issuance" ("EITF 09-1"). The provisions of EITF 09-1, clarifies the accounting treatment and disclosure of share-lending arrangements that are classified as equity in the financial statements of the share lender. An example of a share-lending arrangement is an agreement between the Company (share lender) and an investment bank (share borrower) which allows the investment bank to use the loaned shares to enter into equity derivative contracts with investors. EITF 09-1 is effective for fiscal years that begin on or after December 15, 2009 and requires retrospective application for all arrangements outstanding as of the beginning of fiscal years beginning on or after December 15, 2009. Share-lending arrangements that have been terminated as a result of counterparty default prior to December 15, 2009, but for which the entity has not reached a final settlement as of December 15, 2009 are within the scope. The Company has adopted this standard on January 1, 2010 and has assessed that the adoption of this standard has no material effect on its financial statements.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">In January 2010, the FASB issued Accounting Standards Update 2010-01, Equity (Topic 505): Accounting for Distributions to Shareholders with Components of Stock and Cash (A Consensus of the FASB Emerging Issues Task Force). This amendment to Topic 505 clarifies the stock portion of a distribution to shareholders that allows them to elect to receive cash or stock with a limit on the amount of cash that will be distributed is not a stock dividend for purposes of applying Topics 505 and 260. Effective for interim and annual periods ending on or after December 15, 2009, and would be applied on a retrospective basis. The Company has adopted this standard on January 1, 2010 and has assessed that the adoption of this standard has no material effect on its financial statements.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">In January 2010, the FASB issued Accounting Standards Update 2010-02, Consolidation (Topic 810): Accounting and Reporting for Decreases in Ownership of a Subsidiary. This amendment to Topic 810 clarifies, but does not change, the scope of current US GAAP. It clarifies the decrease in ownership provisions of Subtopic 810-10 and removes the potential conflict between guidance in that Subtopic and asset derecognition and gain or loss recognition guidance that may exist in other US GAAP. An entity will be required to follow the amended guidance beginning in the period that it first adopts FAS 160 (now included in Subtopic 810-10). For those entities that have already adopted FAS 160, the amendments are effective at the beginning of the first interim or annual reporting period ending on or after December 15, 2009. The amendments should be applied retrospectively to the first period that an entity adopted FAS 160. The Company has adopted this standard on January 1, 2010 and has assessed that the adoption of this standard has no material effect on its financial statements.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>n) Recently Issued Accounting Pronouncements</b> <br/> In October 2009, the FASB issued Accounting Standards Update 2009-13, Revenue Recognition (Topic 605): Multiple-Deliverable Revenue Arrangements. This update addressed the accounting for multiple-deliverable arrangements to enable vendors to account for products or services (deliverables) separately rather than a combined unit and will be separated in more circumstances that under existing US GAAP. This amendment has eliminated that residual method of allocation. Effective prospectively for revenue arrangements entered into or materially modified in fiscal years beginning on or after June 15, 2010. Early adoption is permitted. The Company does not expect the provisions of ASU 2009-13 to have a material effect on the financial position, results of operations or cash flows of the Company. </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">In October 2009, the FASB issued Accounting Standards Update 2009-14, Software (Topic 985): Certain Revenue Arrangements That Include Software Elements. This update changed the accounting model for revenue arrangements that include both tangible products and software elements. Effective prospectively for revenue arrangements entered into or materially modified in fiscal years beginning on or after June 15, 2010. Early adoption is permitted. The Company does not expect the provisions of ASU 2009-14 to have an effect on the financial position, results of operations or cash flows of the Company.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">In January 2010, the FASB issued ASU No. 2010-06 regarding fair value measurements and disclosures and improvement in the disclosure about fair value measurements. This ASU requires additional disclosures regarding significant transfers in and out of Levels 1 and 2 of fair value measurements, including a description of the reasons for the transfers. Further, this ASU requires additional disclosures for the activity in Level 3 fair value measurements, requiring presentation of information about purchases, sales, issuances, and settlements in the reconciliation for fair value measurements. This ASU is effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. The Company is currently evaluating the impact of this ASU; however, the Company does not expect the adoption of this ASU to have a material impact on our financial statements.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">In February 2010, the FASB issued ASC No. 2010-09, &#8220;Amendments to Certain Recognition and Disclosure Requirements&#8221;, which eliminates the requirement for SEC filers to disclose the date through which an entity has evaluated subsequent events. ASC No. 2010-09 is effective for its fiscal quarter beginning after December 15, 2010. The adoption of ASC No. 2010-09 is not expected to have a material impact on the Company&#8217;s financial statements ASU No. 2010-13 was issued in April 2010, and clarified the classification of an employee share based payment award with an exercise price denominated in the currency of a market in which the underlying security trades. This ASU will be effective for the first fiscal quarter beginning after December 15, 2010, with early adoption permitted. The adoption of ASU No. 2010-13 is not expected to have a material impact on the Company&#8217;s financial statements.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">In April 2010, the FASB codified the consensus reached in Emerging Issues Task Force Issue No. 08-09, &#8220;Milestone Method of Revenue Recognition.&#8221; FASB ASU No. 2010-17 &#8220;Revenue Recognition &#8211;Milestone Method (Topic 605)&#8221; provides guidance on defining a milestone and determining when it may be appropriate to apply the milestone method of revenue recognition for research and development transactions. FASB ASU No. 2010 &#8211; 17 is effective for fiscal years beginning on or after June 15, 2010, and is effective on a prospective basis for milestones achieved after the adoption date. The Company does not expect this ASU will have a material impact on its financial position or results of operations.</p> <p style="text-align: justify;">On March 5, 2010, the FASB issued ASU No. 2010-11 Derivatives and Hedging Topic 815 &#8220;Scope Exception Related to Embedded Credit Derivatives.&#8221; This ASU clarifies the guidance within the derivative literature that exempts certain credit related features from analysis as potential embedded derivatives requiring separate accounting. The ASU specifies that an embedded credit derivative feature related to the transfer of credit risk that is only in the form of subordination of one financial instrument to another is not subject to bifurcation from a host contract under ASC 815-15-25, &#8220;Derivatives and Hedging &#8212; Embedded Derivatives &#8212; Recognition.&#8221; All other embedded credit derivative features should be analyzed to determine whether their economic characteristics and risks are &#8220;clearly and closely related&#8221; to the economic characteristics and risks of the host contract and whether bifurcation is required. The adoption of this ASU did not have a material impact on the Company&#8217;s financial statements.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">In April 2010, the FASB issued ASU 2010-13, &#8220;Compensation&#8212;Stock Compensation (Topic 718): Effect of Denominating the Exercise Price of a Share-Based Payment Award in the Currency of the Market in Which the Underlying Equity Security Trades,&#8221; or ASU 2010-13. This ASU provides amendments to Topic 718 to clarify that an employee share-based payment award with an exercise price denominated in currency of a market in which a substantial portion of the entity&#8217;s equity securities trades should not be considered to contain a condition that is not a market, performance, or service condition. Therefore, an entity would not classify such an award as a liability if it otherwise qualifies as equity. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2010. The Company does not expect the adoption of ASU 2010-13 to have a significant impact on its financial statements.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">In May 2010, the FASB 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 a material effect on the Company's financial position, results of operations or cash flows of the Company.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">Other accounting pronouncements that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company&#8217;s financial statements upon adoption.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>Note 3 &#8211; Loans Payable</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">During the period, the Company borrowed $2,142 from an independent third party. 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The Company further borrowed an additional $29,320 from the shareholder, resulting in total loan payable of $31,462.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>Note 3 &#8211; Related Party Transactions</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">There were no related party transactions for the period ended December 31, 2009.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">Subsequent to the December 31, 2009, the Company borrowed a loan of $400 from a director and shareholder of the Company.</p> <p align="justify"> <b>Note 4 &#8211; Stockholders&#8217; Equity</b> </p> <p align="justify">On November 16, 2009, the Company issued 100 common shares at $0.001 per share for total proceeds of $0.1.</p> <p align="justify">On December 2, 2009, the Company issued 200,000 common shares at $0.01 per share for total proceeds of $2,000.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>Note 4 &#8211; Shareholders&#8217; Equity</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">On November 16, 2009, the Company issued 100 common shares at $0.001 per share for total proceeds of $0.1.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">On December 5, 2009, the Company issued 1,599,900 common shares at $0.00025 per share for total proceeds of $400.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>Note 4 &#8211; Website Development Costs</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">During the 201 fiscal year, the Company incurred and capitalized $8,325 related to its ongoing website development. 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related parties Share subscription received Share subscription received (ProceedsFromConvertibleDebt) Net Cash Provided by Financing Activities Net Cash Provided by Financing Activities (NetCashProvidedByUsedInFinancingActivities) Cash flow from Investing Activities Cash acquired on acquisition of subsidiary Website development costs Website development costs (PaymentsToDevelopSoftware) Net Cash Provided by Investing Activities Net Cash Provided by Investing Activities (NetCashProvidedByUsedInInvestingActivities) Net Increase in Cash and Cash equivalents Net Increase in Cash and Cash equivalents (CashAndCashEquivalentsPeriodIncreaseDecrease) Cash and Cash equivalents, Beginning of Period Cash and Cash equivalents, End of Period Supplementary Information Interest Paid Income Taxes Paid Statement of Stockholders Equity Equity Components [Axis] Equity Components [Domain] Preferred Stock [Member] Common Stock [Member] Additional Paid-In Capital [Member] Share Subscription Received [Member] Share Subscription Received (Deficit) Accumulated During the Development Stage [Member] Beginning Balance Beginning Balance (Shares) Beginning Balance (Shares) (SharesIssued) Shares issued for cash at $0.0001 per share on November 16, 2009 Shares issued for cash at $0.0001 per share on November 16, 2009 Shares issued for cash at $0.0001 per share on November 16, 2009 (Shares) Shares Issued (Shares) Shares issued for cash at $0.000025 per share on December 5, 2009 Shares issued for cash at $0.000025 per share on December 5, 2009 Shares issued for cash at $0.000025 per share on December 5, 2009 (Shares) Shares issued for cash at $0.01 per share on February 24, 2011 Shares issued for cash at $0.01 per share on February 24, 2011 Shares issued for cash at $0.01 per share on February 24, 2011 (Shares) Recapitalization - 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Significant Accounting Policies
3 Months Ended 12 Months Ended 1 Months Ended
Mar. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Online Disruptive Technologies Inc. [Member]
Dec. 31, 2009
Relationshipscoreboard.com Entertainment Inc. [Member]
Significant Accounting Policies [Text Block]

Note 3 - Significant Accounting Policies

a) Basis of Presentation

These financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“US GAAP”). All adjustments considered necessary for a fair presentation of financial position, results of operations and cash flows as at March 31, 2012 have been included.

b) Accounting Method

The Company’s financial statements are prepared using the accrual method of accounting.

c) Use of Estimates

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant areas require use of estimates include valuation allowance for deferred income tax assets. Actual results could differ from those estimates.

d) Foreign Currency Translation

The Company’s functional currency is U.S. dollars. Transactions in other currencies are recorded in U.S. dollars at the rates of exchange prevailing when the transactions occur. Monetary assets and liabilities denominated in other currencies are translated into U.S. dollars at rates of exchange in effect at the balance sheet dates. Exchange gains and losses are recorded in the statements of operations.

e) Cash and Cash Equivalents

Cash and cash equivalents consist entirely of readily available cash balances. There were no cash equivalents as of March 31, 2012 and December 31, 2011.

f) Stock-based Compensation

The Company accounts its stock options and similar equity instruments issued in accordance with ASC 718, “Share-Based Payment”. Accordingly, compensation costs attributable to stock options or similar equity instruments granted are measured at the fair value at the grant date, and expensed over the expected vesting period. ASC 718 requires excess tax benefits be reported as a financing cash inflow rather than as a reduction of taxes paid.

As at March 31, 2012 and December 31, 2011 the Company had no stock options issued and outstanding.

g) Revenue Recognition

Operating revenue consist of advertising revenue. The point in time at which revenues are recognized is determined in accordance with ASC 605-10 (formerly Staff Accounting Bulletin No. 104, “Revenue Recognition”). Revenues are recorded when the Company delivers services to its customers and collection is reasonably estimated.

h) Income Taxes

Income taxes are accounted for under the liability method of accounting for income taxes. Under the liability method, deferred tax liabilities and assets are recognized for the estimated future tax consequences attributable to differences between the amounts reported in the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted or substantially enacted income tax rates expected to apply when the asset is realized or the liability is settled. The effect of a change in income tax rates on deferred income tax liabilities and assets is recognized in income in the period that the change occurs. Deferred income tax assets are recognized to the extent that they are considered more likely than not to be realized.

The Financial Accounting Standards Board (FASB) has issued FASB ASC 740-10, “Accounting for Uncertainty in Income Taxes”. ASC 740-10 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements in accordance with prior literature FASB Statement No. 109, Accounting for Income Taxes. This standard requires a company to determine whether it is more likely than not that a tax position will be sustained will be sustained upon examination based upon the technical merits of the position. If the more-likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements. The implementation of this standard had no impact on the Company’s financial statements.

i) Comprehensive Income (Loss)

The Company accounts for comprehensive income under the provisions of ASC Topic 220-10, Comprehensive Income - Overall , which establishes standards for reporting and display of comprehensive income, its components and accumulated balances. The Company is disclosing this information on its Statements of Operations and Comprehensive Loss.

j) Earnings (Loss) Per Share

Basic loss per share is computed on the basis of the weighted average number of common shares outstanding during each period.

Diluted loss per share is computed on the basis of the weighted average number of common shares and dilutive securities outstanding. For the three month period ended March 31, 2012 and 2011, the basic loss per share is equal to the diluted loss per share as there are no potential dilutive securities.

k) Financial Instruments and Fair Value of Financial Instruments

Fair Value of Financial Instruments – the Company adopted SFAS ASC 820-10-50, “Fair Value Measurements”. This guidance defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The three levels are defined as follows:

  • Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

  • Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

  • Level 3 inputs to valuation methodology are unobservable and significant to the fair measurement.

As at March 31, 2012, the fair value of cash and cash equivalents was measured using Level 1 inputs.

The carrying amounts reported in the balance sheets for the cash and cash equivalents, accounts payable and accrued liabilities and loan payable each qualify as financial instruments and are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization.

l) Website Development Costs

Website development costs relate to the development of the Company's proprietary website. These costs have been capitalized as incurred and installed and are being amortized over the estimated useful life of three years on a straight line basis. The Company accounts for these costs in accordance with ASC 350, Intangibles, which specifies the appropriate accounting for costs incurred in connection with the development and maintenance of websites.

m) Recently Adopted Accounting Pronouncements

In April 2011, the FASB issued authoritative guidance to clarify when a restructuring constitutes a troubled debt restructuring. In evaluating whether a restructuring constitutes a troubled debt restructuring, a creditor must separately conclude that two conditions exist: (1) the restructuring constitutes a concession and (2) the debtor is experiencing financial difficulties. The guidance will be effective for interim and annual reporting periods beginning after June 15, 2011 and will be applied retrospectively to the beginning of the annual period of adoption. The Company adopted this authoritative guidance on January 1, 2012 and the adoption did not have an impact on the Company’s financial statements.

In May 2011, the FASB issued an accounting pronouncement related to fair value measurement (FASB ASC Topic 820), which amends current guidance to achieve common fair value measurement and disclosure requirements in U.S. GAAP and International Financial Reporting Standards. The amendments generally represent clarification of FASB ASC Topic 820, but also include instances where a particular principle or requirement for measuring fair value or disclosing information about fair value measurements has changed. This pronouncement is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. The Company adopted this standard on January 1, 2012 and the adoption of ASC Topic 820 did not have an impact on the Company’s financial statements.

In June 2011, the FASB issued an accounting pronouncement that provides new guidance on the presentation of comprehensive income (FASB ASC Topic 220) in financial statements. Entities are required to present total comprehensive income either in a single, continuous statement of comprehensive income or in two separate, but consecutive, statements. Under the single-statement approach, entities must include the components of net income, a total for net income, the components of other comprehensive income and a total for comprehensive income. Under the two-statement approach, entities must report an income statement and, immediately following, a statement of other comprehensive income. Under either method, entities must display adjustments for items reclassified from other comprehensive income to net income in both net income and other comprehensive income. The provisions for this pronouncement are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011, with early adoption permitted. The Company adopted this standard on January 1, 2012 and the adoption of ASC Topic 220 did not have an impact on the Company’s financial statements.

n) Recently Issued Accounting Pronouncements

Other accounting pronouncements that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s financial statements upon adoption.

Note 3 - Significant Accounting Policies

a) Basis of Presentation
These financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“US GAAP”). All adjustments considered necessary for a fair presentation of financial position, results of operations and cash flows as at December 31, 2011 have been included.

b) Accounting Method
The Company’s financial statements are prepared using the accrual method of accounting.

c) Use of Estimates
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant areas require use of estimates include valuation allowance for deferred income tax assets. Actual results could differ from those estimates.

d) Foreign Currency Translation
The Company’s functional currency is U.S. dollars. Transactions in other currencies are recorded in U.S. dollars at the rates of exchange prevailing when the transactions occur. Monetary assets and liabilities denominated in other currencies are translated into U.S. dollars at rates of exchange in effect at the balance sheet dates. Exchange gains and losses are recorded in the statements of operations.

e) Cash and Cash Equivalents
Cash and cash equivalents consist entirely of readily available cash balances. There were no cash equivalents as of December 31, 2011 and December 31, 2010.

f) Stock-based Compensation
The Company accounts its stock options and similar equity instruments issued in accordance with ASC 718, “Share-Based Payment”. Accordingly, compensation costs attributable to stock options or similar equity instruments granted are measured at the fair value at the grant date, and expensed over the expected vesting period. ASC 718 requires excess tax benefits be reported as a financing cash inflow rather than as a reduction of taxes paid.

As at December 31, 2011 and 2010 the Company had no stock options issued and outstanding.

g) Revenue Recognition
Operating revenue consist of advertising revenue. The point in time at which revenues are recognized is determined in accordance with ASC 605-10 (formerly Staff Accounting Bulletin No. 104, “Revenue Recognition”). Revenues are recorded when the Company delivers services to its customers and collection is reasonably estimated.

 

h) Income Taxes
Income taxes are accounted for under the liability method of accounting for income taxes. Under the liability method, deferred tax liabilities and assets are recognized for the estimated future tax consequences attributable to differences between the amounts reported in the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted or substantially enacted income tax rates expected to apply when the asset is realized or the liability is settled. The effect of a change in income tax rates on deferred income tax liabilities and assets is recognized in income in the period that the change occurs. Deferred income tax assets are recognized to the extent that they are considered more likely than not to be realized.

The Financial Accounting Standards Board (FASB) has issued FASB ASC 740-10, “Accounting for Uncertainty in Income Taxes”. ASC 740-10 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements in accordance with prior literature FASB Statement No. 109, Accounting for Income Taxes. This standard requires a company to determine whether it is more likely than not that a tax position will be sustained will be sustained upon examination based upon the technical merits of the position. If the more-likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements. The implementation of this standard had no impact on the Company’s financial statements.

i) Comprehensive Income (Loss)
The Company accounts for comprehensive income under the provisions of ASC Topic 220-10, Comprehensive Income - Overall , which establishes standards for reporting and display of comprehensive income, its components and accumulated balances. The Company is disclosing this information on its Statements of Operations and Comprehensive Loss.

j) Earnings (Loss) Per Share
Basic loss per share is computed on the basis of the weighted average number of common shares outstanding during each period.

Diluted loss per share is computed on the basis of the weighted average number of common shares and dilutive securities outstanding. For the years ended December 31, 2011 and 2010, the basic loss per share is equal to the diluted loss per share as there are no potential dilutive securities.

k) Financial Instruments and Fair Value of Financial Instruments
Fair Value of Financial Instruments – the Company adopted SFAS ASC 820-10-50, “Fair Value Measurements”. This guidance defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The three levels are defined as follows:

  • Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

  • Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

 

 

  • Level 3 inputs to valuation methodology are unobservable and significant to the fair measurement.

As at December 31, 2011, the fair value of cash and cash equivalents was measured using Level 1 inputs.

The carrying amounts reported in the balance sheets for the cash and cash equivalents, accounts payable and accrued liabilities and loan payable each qualify as financial instruments and are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization.

l) Website Development Costs
Website development costs relate to the development of the Company's proprietary website. These costs have been capitalized as incurred and installed and are being amortized over the estimated useful life of three years on a straight line basis. The Company accounts for these costs in accordance with ASC 350, Intangibles, which specifies the appropriate accounting for costs incurred in connection with the development and maintenance of websites.

m) Recently Adopted Accounting Pronouncements
In October 2009, the FASB issued Accounting Standards Update 2009-13, Revenue Recognition (Topic 605): Multiple-Deliverable Revenue Arrangements. This update addressed the accounting for multiple-deliverable arrangements to enable vendors to account for products or services (deliverables) separately rather than a combined unit and will be separated in more circumstances that under existing US GAAP. This amendment has eliminated that residual method of allocation. Effective prospectively for revenue arrangements entered into or materially modified in fiscal years beginning on or after June 15, 2010. Early adoption is permitted. The Company adopted this standard on January 1, 2011 and the adoption of ASU 2009-13 did not have a material effect on the financial position, results of operations or cash flows of the Company.

In October 2009, the FASB issued Accounting Standards Update 2009-14, Software (Topic 985): Certain Revenue Arrangements That Include Software Elements. This update changed the accounting model for revenue arrangements that include both tangible products and software elements. Effective prospectively for revenue arrangements entered into or materially modified in fiscal years beginning on or after June 15, 2010. Early adoption is permitted. The Company adopted this standard on January 1, 2011 and the adoption of ASU 2009-14 did not have an effect on the financial position, results of operations or cash flows of the Company.

In January 2010, the FASB issued ASU No. 2010-06 regarding fair value measurements and disclosures and improvement in the disclosure about fair value measurements. This ASU requires additional disclosures regarding significant transfers in and out of Levels 1 and 2 of fair value measurements, including a description of the reasons for the transfers. Further, this ASU requires additional disclosures for the activity in Level 3 fair value measurements, requiring presentation of information about purchases, sales, issuances, and settlements in the reconciliation for fair value measurements. This ASU is effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. The Company adopted this standard on January 1, 2011 and the adoption of ASU 2010-06 did not have a material impact on our financial statements.

In February 2010, the FASB issued ASC No. 2010-09, “Amendments to Certain Recognition and Disclosure Requirements”, which eliminates the requirement for SEC filers to disclose the date through which an entity has evaluated subsequent events. ASC No. 2010-09 is effective for its fiscal quarter beginning after December 15, 2010. The adoption of ASC No. 2010-09 is not expected to have a material impact on the Company’s financial statements ASU No. 2010-13 was issued in April 2010, and clarified the classification of an employee share based payment award with an exercise price denominated in the currency of a market in which the underlying security trades. This ASU will be effective for the first fiscal quarter beginning after December 15, 2010, with early adoption permitted. The Company adopted this standard on January 1, 2011 and the adoption of ASU No. 2010-13 did not have a material impact on the Company’s financial statements.

In April 2010, the FASB codified the consensus reached in Emerging Issues Task Force Issue No. 08-09, “Milestone Method of Revenue Recognition.” FASB ASU No. 2010-17 “Revenue Recognition –Milestone Method (Topic 605)” provides guidance on defining a milestone and determining when it may be appropriate to apply the milestone method of revenue recognition for research and development transactions. FASB ASU No. 2010 – 17 is effective for fiscal years beginning on or after June 15, 2010, and is effective on a prospective basis for milestones achieved after the adoption date. The Company adopted this standard on January 1, 2011 and the adoption of ASU 2010-17 did not have a material impact on its financial position or results of operations.

On March 5, 2010, the FASB issued ASU No. 2010-11 Derivatives and Hedging Topic 815 “Scope Exception Related to Embedded Credit Derivatives.” This ASU clarifies the guidance within the derivative literature that exempts certain credit related features from analysis as potential embedded derivatives requiring separate accounting. The ASU specifies that an embedded credit derivative feature related to the transfer of credit risk that is only in the form of subordination of one financial instrument to another is not subject to bifurcation from a host contract under ASC 815-15-25, “Derivatives and Hedging — Embedded Derivatives — Recognition.” All other embedded credit derivative features should be analyzed to determine whether their economic characteristics and risks are “clearly and closely related” to the economic characteristics and risks of the host contract and whether bifurcation is required. The Company adopted this standard on January 1, 2011 and the adoption of ASU 2010-11 did not have a material impact on the Company’s financial statements.

 

 

In April 2010, the FASB issued ASU 2010-13, “Compensation—Stock Compensation (Topic 718): Effect of Denominating the Exercise Price of a Share-Based Payment Award in the Currency of the Market in Which the Underlying Equity Security Trades,” or ASU 2010-13. This ASU provides amendments to Topic 718 to clarify that an employee share-based payment award with an exercise price denominated in currency of a market in which a substantial portion of the entity’s equity securities trades should not be considered to contain a condition that is not a market, performance, or service condition. Therefore, an entity would not classify such an award as a liability if it otherwise qualifies as equity. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2010. The Company adopted this standard on January 1, 2011 and the adoption of ASU 2010-13 did not have a significant impact on its financial statements.

n) Recently Issued Accounting Pronouncements
In April 2011, the FASB issued authoritative guidance to clarify when a restructuring constitutes a troubled debt restructuring. In evaluating whether a restructuring constitutes a troubled debt restructuring, a creditor must separately conclude that two conditions exist: (1) the restructuring constitutes a concession and (2) the debtor is experiencing financial difficulties. The guidance will be effective for interim and annual reporting periods beginning after June 15, 2011 and will be applied retrospectively to the beginning of the annual period of adoption. The Company does not anticipate that the guidance will have an impact on the Company’s financial statements.

In May 2011, the FASB issued an accounting pronouncement related to fair value measurement (FASB ASC Topic 820), which amends current guidance to achieve common fair value measurement and disclosure requirements in U.S. GAAP and International Financial Reporting Standards. The amendments generally represent clarification of FASB ASC Topic 820, but also include instances where a particular principle or requirement for measuring fair value or disclosing information about fair value measurements has changed. This pronouncement is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. The Company does not anticipate that the guidance will have an impact on the Company’s financial statements.

In June 2011, the FASB issued an accounting pronouncement that provides new guidance on the presentation of comprehensive income (FASB ASC Topic 220) in financial statements. Entities are required to present total comprehensive income either in a single, continuous statement of comprehensive income or in two separate, but consecutive, statements. Under the single-statement approach, entities must include the components of net income, a total for net income, the components of other comprehensive income and a total for comprehensive income. Under the two-statement approach, entities must report an income statement and, immediately following, a statement of other comprehensive income. Under either method, entities must display adjustments for items reclassified from other comprehensive income to net income in both net income and other comprehensive income. The provisions for this pronouncement are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011, with early adoption permitted. The Company does not anticipate that the guidance will have an impact on the Company’s financial statements.


Other accounting pronouncements that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s financial statements upon adoption.

Note 3 - Significant Accounting Policies

a) Basis of Presentation
These financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“US GAAP”). All adjustments considered necessary for a fair presentation of financial position, results of operations and cash flows as at December 31, 2010 have been included.

b) Accounting Method
The Company’s financial statements are prepared using the accrual method of accounting.

c) Use of Estimates
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant areas require use of estimates include valuation allowance for deferred income tax assets. Actual results could differ from those estimates.

d) Foreign Currency Translation
The Company’s functional currency is U.S. dollars. Transactions in other currencies are recorded in U.S. dollars at the rates of exchange prevailing when the transactions occur. Monetary assets and liabilities denominated in other currencies are translated into U.S. dollars at rates of exchange in effect at the balance sheet dates. Exchange gains and losses are recorded in the statements of operations.

e) Cash and Cash Equivalents
Cash and cash equivalents consist entirely of readily available cash balances. There was no cash equivalents as of December 31, 2010 and 2009.

f) Stock-based Compensation
The Company accounts its stock options and similar equity instruments issued in accordance with ASC 718, “Share-Based Payment”. Accordingly, compensation costs attributable to stock options or similar equity instruments granted are measured at the fair value at the grant date, and expensed over the expected vesting period. ASC 718 requires excess tax benefits be reported as a financing cash inflow rather than as a reduction of taxes paid.

As at December 31, 2010 the Company had no stock options issued and outstanding.

g) Revenue Recognition
Operating revenue consist of advertising revenue. The point in time at which revenues are recognized is determined in accordance with ASC 605-10 (formerly Staff Accounting Bulletin No. 104, “Revenue Recognition”). Revenues are recorded when the Company delivers services to its customers and collection is reasonably estimated.

h) Income Taxes
Income taxes are accounted for under the liability method of accounting for income taxes. Under the liability method, deferred tax liabilities and assets are recognized for the estimated future tax consequences attributable to differences between the amounts reported in the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted or substantially enacted income tax rates expected to apply when the asset is realized or the liability is settled. The effect of a change in income tax rates on deferred income tax liabilities and assets is recognized in income in the period that the change occurs. Deferred income tax assets are recognized to the extent that they are considered more likely than not to be realized.

The Financial Accounting Standards Board (FASB) has issued FASB ASC 740-10, “Accounting for Uncertainty in Income Taxes”. ASC 740-10 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements in accordance with prior literature FASB Statement No. 109, Accounting for Income Taxes. This standard requires a company to determine whether it is more likely than not that a tax position will be sustained will be sustained upon examination based upon the technical merits of the position. If the more-likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements. The implementation of this standard had no impact on the Company’s financial statements.

i) Comprehensive Income (Loss)
The Company accounts for comprehensive income under the provisions of ASC Topic 220-10, Comprehensive Income - Overall , which establishes standards for reporting and display of comprehensive income, its components and accumulated balances. The Company is disclosing this information on its Statements of Operations and Comprehensive Loss.

j) Earnings (Loss) Per Share
The Company adopted Financial Accounting Standards ASC subtopic 260-10, “Earnings Per Share”, which simplifies the computation of earning per share requiring the restatement of all prior periods.

Basic loss per share is computed on the basis of the weighted average number of common shares outstanding during each year.

Diluted loss per share is computed on the basis of the weighted average number of common shares and dilutive securities outstanding. For the years ended December 31, 2010 and December 31, 2009, the basic loss per share is equal to the diluted loss per share as there are no potential dilutive securities.

k) Financial Instruments and Fair Value of Financial Instruments
Fair Value of Financial Instruments – the Company adopted SFAS ASC 820-10-50, “Fair Value Measurements”. This guidance defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The three levels are defined as follows:

  • Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

  • Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

  • Level 3 inputs to valuation methodology are unobservable and significant to the fair measurement.

The carrying amounts reported in the balance sheets for the cash and cash equivalents, accounts payable and accrued liabilities and loan payable each qualify as financial instruments and are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization.

l) Website Development Costs
Website development costs relate to the development of the Company's Internet website. These costs have been capitalized as incurred and installed, and are being amortized over the estimated useful life of three years on a straight line basis. The Company accounts for these costs in accordance with ASC 350, Intangibles, which specifies the appropriate accounting for costs incurred in connection with the development and maintenance of websites.

m) Recently Adopted Accounting Pronouncements
In June 2009, the FASB ASC 860-10, “Accounting for Transfers of Financial Assets,” eliminates the concept of a qualifying special-purpose entity (“QSPE”), clarifies and amends the de-recognition criteria for a transfer to be accounted for as a sale, amends and clarifies the unit of account eligible for sale accounting and requires that a transferor initially measure at fair value and recognize all assets obtained and liabilities incurred as a result of a transfer of an entire financial asset or group of financial assets accounted for as a sale. This standard is effective for fiscal years beginning after November 15, 2009. The Company has adopted this standard on January 1, 2010 and has assessed that the adoption of this standard has no material effect on its financial statements.

In June 2009, the FASB issued FASB ASC 810-10-65 which amends the consolidation guidance applicable to a variable interest entity (“VIE”). This standard also amends the guidance governing the determination of whether an enterprise is the primary beneficiary of a VIE, and is therefore required to consolidate an entity, by requiring a qualitative analysis rather than a quantitative analysis. Previously, the standard required reconsideration of whether an enterprise was the primary beneficiary of a VIE only when specific events had occurred. This standard is effective for fiscal years beginning after November 15, 2009, and for interim periods within those fiscal years. Early adoption is prohibited. The Company has adopted this standard on January 1, 2010 and has assessed that the adoption of this standard has no material effect on its financial statements.

In September 2009, the FASB issued Accounting Standards Update 2009-12, Fair Value Measurements and Disclosures (Topic 820): Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent). This update provides amendments to Topic 820 for the fair value measurement of investments in certain entities that calculate net asset value per share (or its equivalent). It is effective for interim and annual periods ending after December 15, 2009. Early application is permitted in financial statements for earlier interim and annual periods that have not been issued. The Company has adopted this standard January 1, 2010 and has assessed that the adoption of this standard has no material effect on its financial statements.

In July 2009, the FASB ratified the consensus reached by EITF (Emerging Issues Task Force) issued EITF No. 09-1, (ASC Topic 470) "Accounting for Own-Share Lending Arrangements in Contemplation of Convertible Debt Issuance" ("EITF 09-1"). The provisions of EITF 09-1, clarifies the accounting treatment and disclosure of share-lending arrangements that are classified as equity in the financial statements of the share lender. An example of a share-lending arrangement is an agreement between the Company (share lender) and an investment bank (share borrower) which allows the investment bank to use the loaned shares to enter into equity derivative contracts with investors. EITF 09-1 is effective for fiscal years that begin on or after December 15, 2009 and requires retrospective application for all arrangements outstanding as of the beginning of fiscal years beginning on or after December 15, 2009. Share-lending arrangements that have been terminated as a result of counterparty default prior to December 15, 2009, but for which the entity has not reached a final settlement as of December 15, 2009 are within the scope. The Company has adopted this standard on January 1, 2010 and has assessed that the adoption of this standard has no material effect on its financial statements.

In January 2010, the FASB issued Accounting Standards Update 2010-01, Equity (Topic 505): Accounting for Distributions to Shareholders with Components of Stock and Cash (A Consensus of the FASB Emerging Issues Task Force). This amendment to Topic 505 clarifies the stock portion of a distribution to shareholders that allows them to elect to receive cash or stock with a limit on the amount of cash that will be distributed is not a stock dividend for purposes of applying Topics 505 and 260. Effective for interim and annual periods ending on or after December 15, 2009, and would be applied on a retrospective basis. The Company has adopted this standard on January 1, 2010 and has assessed that the adoption of this standard has no material effect on its financial statements.

In January 2010, the FASB issued Accounting Standards Update 2010-02, Consolidation (Topic 810): Accounting and Reporting for Decreases in Ownership of a Subsidiary. This amendment to Topic 810 clarifies, but does not change, the scope of current US GAAP. It clarifies the decrease in ownership provisions of Subtopic 810-10 and removes the potential conflict between guidance in that Subtopic and asset derecognition and gain or loss recognition guidance that may exist in other US GAAP. An entity will be required to follow the amended guidance beginning in the period that it first adopts FAS 160 (now included in Subtopic 810-10). For those entities that have already adopted FAS 160, the amendments are effective at the beginning of the first interim or annual reporting period ending on or after December 15, 2009. The amendments should be applied retrospectively to the first period that an entity adopted FAS 160. The Company has adopted this standard on January 1, 2010 and has assessed that the adoption of this standard has no material effect on its financial statements.

n) Recently Issued Accounting Pronouncements
In October 2009, the FASB issued Accounting Standards Update 2009-13, Revenue Recognition (Topic 605): Multiple-Deliverable Revenue Arrangements. This update addressed the accounting for multiple-deliverable arrangements to enable vendors to account for products or services (deliverables) separately rather than a combined unit and will be separated in more circumstances that under existing US GAAP. This amendment has eliminated that residual method of allocation. Effective prospectively for revenue arrangements entered into or materially modified in fiscal years beginning on or after June 15, 2010. Early adoption is permitted. The Company does not expect the provisions of ASU 2009-13 to have a material effect on the financial position, results of operations or cash flows of the Company.

In October 2009, the FASB issued Accounting Standards Update 2009-14, Software (Topic 985): Certain Revenue Arrangements That Include Software Elements. This update changed the accounting model for revenue arrangements that include both tangible products and software elements. Effective prospectively for revenue arrangements entered into or materially modified in fiscal years beginning on or after June 15, 2010. Early adoption is permitted. The Company does not expect the provisions of ASU 2009-14 to have an effect on the financial position, results of operations or cash flows of the Company.

In January 2010, the FASB issued ASU No. 2010-06 regarding fair value measurements and disclosures and improvement in the disclosure about fair value measurements. This ASU requires additional disclosures regarding significant transfers in and out of Levels 1 and 2 of fair value measurements, including a description of the reasons for the transfers. Further, this ASU requires additional disclosures for the activity in Level 3 fair value measurements, requiring presentation of information about purchases, sales, issuances, and settlements in the reconciliation for fair value measurements. This ASU is effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. The Company is currently evaluating the impact of this ASU; however, the Company does not expect the adoption of this ASU to have a material impact on our financial statements.

In February 2010, the FASB issued ASC No. 2010-09, “Amendments to Certain Recognition and Disclosure Requirements”, which eliminates the requirement for SEC filers to disclose the date through which an entity has evaluated subsequent events. ASC No. 2010-09 is effective for its fiscal quarter beginning after December 15, 2010. The adoption of ASC No. 2010-09 is not expected to have a material impact on the Company’s financial statements ASU No. 2010-13 was issued in April 2010, and clarified the classification of an employee share based payment award with an exercise price denominated in the currency of a market in which the underlying security trades. This ASU will be effective for the first fiscal quarter beginning after December 15, 2010, with early adoption permitted. The adoption of ASU No. 2010-13 is not expected to have a material impact on the Company’s financial statements.

In April 2010, the FASB codified the consensus reached in Emerging Issues Task Force Issue No. 08-09, “Milestone Method of Revenue Recognition.” FASB ASU No. 2010-17 “Revenue Recognition –Milestone Method (Topic 605)” provides guidance on defining a milestone and determining when it may be appropriate to apply the milestone method of revenue recognition for research and development transactions. FASB ASU No. 2010 – 17 is effective for fiscal years beginning on or after June 15, 2010, and is effective on a prospective basis for milestones achieved after the adoption date. The Company does not expect this ASU will have a material impact on its financial position or results of operations.

On March 5, 2010, the FASB issued ASU No. 2010-11 Derivatives and Hedging Topic 815 “Scope Exception Related to Embedded Credit Derivatives.” This ASU clarifies the guidance within the derivative literature that exempts certain credit related features from analysis as potential embedded derivatives requiring separate accounting. The ASU specifies that an embedded credit derivative feature related to the transfer of credit risk that is only in the form of subordination of one financial instrument to another is not subject to bifurcation from a host contract under ASC 815-15-25, “Derivatives and Hedging — Embedded Derivatives — Recognition.” All other embedded credit derivative features should be analyzed to determine whether their economic characteristics and risks are “clearly and closely related” to the economic characteristics and risks of the host contract and whether bifurcation is required. The adoption of this ASU did not have a material impact on the Company’s financial statements.

In April 2010, the FASB issued ASU 2010-13, “Compensation—Stock Compensation (Topic 718): Effect of Denominating the Exercise Price of a Share-Based Payment Award in the Currency of the Market in Which the Underlying Equity Security Trades,” or ASU 2010-13. This ASU provides amendments to Topic 718 to clarify that an employee share-based payment award with an exercise price denominated in currency of a market in which a substantial portion of the entity’s equity securities trades should not be considered to contain a condition that is not a market, performance, or service condition. Therefore, an entity would not classify such an award as a liability if it otherwise qualifies as equity. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2010. The Company does not expect the adoption of ASU 2010-13 to have a significant impact on its financial statements.

In May 2010, the FASB 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 a material effect on the Company's financial position, results of operations or cash flows of the Company.

Other accounting pronouncements that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s financial statements upon adoption.

Note 2 - Significant Accounting Policies

a) Basis of Presentation

These financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“US GAAP”). All adjustments considered necessary for a fair presentation of financial position, results of operations and cash flows as at December 31, 2009 have been included.

b) Accounting Method

The Company’s financial statements are prepared using the accrual method of accounting.

c) Use of Estimates

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant areas require use of estimates include valuation allowance for deferred income tax assets. Actual results could differ from those estimates.

d) Foreign Currency Translation

The Company’s functional currency is U.S. dollars. Transactions in other currencies are recorded in U.S. dollars at the rates of exchange prevailing when the transactions occur. Monetary assets and liabilities denominated in other currencies are translated into U.S. dollars at rates of exchange in effect at the balance sheet dates. Exchange gains and losses are recorded in the statements of operations.

e) Cash and Cash Equivalents

Cash and cash equivalents consist entirely of readily available cash balances. There was no cash equivalent as of December 31, 2009.

f) Stock-based Compensation

The Company adopted ASC 718, “Share-Based Payment,” to account for its stock options and similar equity instruments issued. Accordingly, compensation costs attributable to stock options or similar equity instruments granted are measured at the fair value at the grant date, and expensed over the expected vesting period. ASC 718 requires excess tax benefits be reported as a financing cash inflow rather than as a reduction of taxes paid.

As at December 31, 2009, the Company has no stock option issued and outstanding.

g) Revenue Recognition

Operating revenue consist of advertising revenue. The point in time at which revenues are recognized is determined in accordance with ASC 605-10 (formerly Staff Accounting Bulletin No. 104, “Revenue Recognition”). Revenues are recorded when the Company delivers services to its customers and collection is reasonably estimated.

The Company has not generated any revenue since its inception.

h) Income Taxes

Income taxes are accounted for under the liability method of accounting for income taxes. Under the liability method, deferred tax liabilities and assets are recognized for the estimated future tax consequences attributable to differences between the amounts reported in the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted or substantially enacted income tax rates expected to apply when the asset is realized or the liability is settled. The effect of a change in income tax rates on deferred income tax liabilities and assets is recognized in income in the period that the change occurs. Deferred income tax assets are recognized to the extent that they are considered more likely than not to be realized.

The Financial Accounting Standards Board (FASB) has issued FASB ASC 740-10, “Accounting for Uncertainty in Income Taxes”. ASC 740-10 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements in accordance with prior literature FASB Statement No. 109, Accounting for Income Taxes. This standard requires a company to determine whether it is more likely than not that a tax position will be sustained upon examination based upon the technical merits of the position. If the more-likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements. The implementation of this standard has no impact on the Company’s financial statements.

i) Comprehensive Income (Loss)

The Company accounts for comprehensive income under the provisions of ASC Topic 220-10, “Comprehensive Income - Overall,” which establishes standards for reporting and display of comprehensive income, its components and accumulated balances. The Company is disclosing this information on its Statement of Operations and Comprehensive Loss.

j) Earnings (Loss) Per Share

The Company adopted Financial Accounting Standards ASC subtopic 260-10, “Earnings Per Share”, which simplifies the computation of earning per share requiring the restatement of all prior periods.

Basic loss per share is computed on the basis of the weighted average number of common shares outstanding during each year.

Diluted loss per share is computed on the basis of the weighted average number of common shares and dilutive securities outstanding. As at December 31, 2009, diluted loss per share is equal to basic loss per share as there was no other security instrument outstanding as at December 31, 2009.

k) Financial Instruments and Fair Value of Financial Instruments

Fair Value of Financial Instruments – the Company adopted SFAS ASC 820-10-50, “Fair Value Measurements”. This guidance defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The three levels are defined as follows:

Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

Level 3 inputs to valuation methodology are unobservable and significant to the fair measurement.

The carrying amounts reported in the balance sheets for the cash and cash equivalents, accounts payable and accrued liabilities, and loan payable each qualify as financial instruments and are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization.

l) Subsequent Event

The Company has adopted ASC 855, “Subsequent Events,” which establishes general standards of accounting for disclosure of events that occur after the balance sheet date but before financial statements are issued or available to be issued. It requires the disclosure of the date through which an entity has evaluated subsequent events and whether that date represents the date the financial statements were issued or were available to be issued.

In preparing these financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through January 1, 2010 and September 13, 2010, the date the financial statements were available to be issued.

m) Accounting Codification

On July 1, 2009, the FASB launched the “FASB Accounting Standards Codification” (the “FASB ASC”) as the single source of authoritative non-governmental U.S. GAAP. The FASB ASC did not change current U.S. GAAP, but simplified user access to all authoritative U.S. GAAP by organizing all the authoritative literature related to a particular topic in one place. All existing accounting standard documents were superseded and all other accounting literature not included in the FASB ASC is now considered non-authoritative. The adoption of the FASB ASC did not have an impact on the Company’s financial statements.

n) Recently Adopted Accounting Pronouncements

In September 2009, the FASB issued Accounting Standards Update 2009-12, Fair Value Measurements and Disclosures (Topic 820): Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent). This update provides amendments to Topic 820 for the fair value measurement of investments in certain entities that calculate net asset value per share (or its equivalent). It is effective for interim and annual periods ending after December 15, 2009. Early application is permitted in financial statements for earlier interim and annual periods that have not been issued. The Company adopted this standard for its fiscal year ended December 31, 2009 and has assessed that the adoption of this standard did not have a material effect on its financial statements.

In January 2010, the FASB issued Accounting Standards Update 2010-01, Equity (Topic 505): Accounting for Distributions to Shareholders with Components of Stock and Cash (A Consensus of the FASB Emerging Issues Task Force). This amendment to Topic 505 clarifies the stock portion of a distribution to shareholders that allows them to elect to receive cash or stock with a limit on the amount of cash that will be distributed is not a stock dividend for purposes of applying Topics 505 and 260. Effective for interim and annual periods ending on or after December 15, 2009, and would be applied on a retrospective basis. The Company adopted this standard for its fiscal year ended December 31, 2009 and has assessed that the adoption of this standard did not have a material effect on its financial statements.

In January 2010, the FASB issued Accounting Standards Update 2010-02, Consolidation (Topic 810): Accounting and Reporting for Decreases in Ownership of a Subsidiary. This amendment to Topic 810 clarifies, but does not change, the scope of current US GAAP. It clarifies the decrease in ownership provisions of Subtopic 810-10 and removes the potential conflict between guidance in that Subtopic and asset derecognition and gain or loss recognition guidance that may exist in other US GAAP. An entity will be required to follow the amended guidance beginning in the period that it first adopts FAS 160 (now included in Subtopic 810-10). For those entities that have already adopted FAS 160, the amendments are effective at the beginning of the first interim or annual reporting period ending on or after December 15, 2009. The amendments should be applied retrospectively to the first period that an entity adopted FAS 160. The Company adopted this standard for its fiscal year ended December 31, 2009 and has assessed that the adoption of this standard did not have a material effect on its financial statements.

o) Recently Issued Accounting Pronouncements

In June 2009, the FASB ASC 860-10, “Accounting for Transfers of Financial Assets,” eliminates the concept of a qualifying special-purpose entity (“QSPE”), clarifies and amends the de-recognition criteria for a transfer to be accounted for as a sale, amends and clarifies the unit of account eligible for sale accounting and requires that a transferor initially measure at fair value and recognize all assets obtained and liabilities incurred as a result of a transfer of an entire financial asset or group of financial assets accounted for as a sale. This standard is effective for fiscal years beginning after November 15, 2009. The Company is currently evaluating the potential impact of this standard on its financial statements, but does not expect it to have a material effect.

In June 2009, the FASB issued FASB ASC 810-10-65 which amends the consolidation guidance applicable to a variable interest entity (“VIE”). This standard also amends the guidance governing the determination of whether an enterprise is the primary beneficiary of a VIE, and is therefore required to consolidate an entity, by requiring a qualitative analysis rather than a quantitative analysis. Previously, the standard required reconsideration of whether an enterprise was the primary beneficiary of a VIE only when specific events had occurred. This standard is effective for fiscal years beginning after November 15, 2009, and for interim periods within those fiscal years. Early adoption is prohibited. The Company is currently evaluating the potential impact of the adoption of this standard on its financial statements, but does not expect it to have a material effect.

In July 2009, the FASB ratified the consensus reached by EITF (Emerging Issues Task Force) issued EITF No. 09-1, (ASC Topic 470) "Accounting for Own-Share Lending Arrangements in Contemplation of Convertible Debt Issuance" ("EITF 09-1"). The provisions of EITF 09-1, clarifies the accounting treatment and disclosure of share-lending arrangements that are classified as equity in the financial statements of the share lender. An example of a share-lending arrangement is an agreement between the Company (share lender) and an investment bank (share borrower) which allows the investment bank to use the loaned shares to enter into equity derivative contracts with investors. EITF 09-1 is effective for fiscal years that beginning on or after December 15, 2009 and requires retrospective application for all arrangements outstanding as of the beginning of fiscal years beginning on or after December 15, 2009. Share-lending arrangements that have been terminated as a result of counterparty default prior to December 15, 2009, but for which the entity has not reached a final settlement as of December 15, 2009 are within the scope. The Company does not expect the provisions of EITF 09-1 to have a material effect on the financial position, results of operations or cash flows of the Company.

In October 2009, the FASB issued Accounting Standards Update 2009-13, Revenue Recognition (Topic 605): Multiple-Deliverable Revenue Arrangements. This update addressed the accounting for multiple-deliverable arrangements to enable vendors to account for products or services (deliverables) separately rather than a combined unit and will be separated in more circumstances that under existing US GAAP. This amendment has eliminated that residual method of allocation. Effective prospectively for revenue arrangements entered into or materially modified in fiscal years beginning on or after June 15, 2010. Early adoption is permitted. The Company does not expect the provisions of ASU 2009-13 to have a material effect on the financial position, results of operations or cash flows of the Company.

In January 2010, the FASB issued ASU No. 2010-06 regarding fair value measurements and disclosures and improvement in the disclosure about fair value measurements. This ASU requires additional disclosures regarding significant transfers in and out of Levels 1 and 2 of fair value measurements, including a description of the reasons for the transfers. Further, this ASU requires additional disclosures for the activity in Level 3 fair value measurements, requiring presentation of information about purchases, sales, issuances, and settlements in the reconciliation for fair value measurements. This ASU is effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. The Company is currently evaluating the impact of this ASU; however, the Company does not expect the adoption of this ASU to have a material impact on our financial statements.

In February 2010, the FASB issued ASC No. 2010-09, “Amendments to Certain Recognition and Disclosure Requirements”, which eliminates the requirement for SEC filers to disclose the date through which an entity has evaluated subsequent events. ASC No. 2010-09 is effective for its fiscal quarter beginning after 15 December 2010. The adoption of ASC No. 2010-09 is not expected to have a material impact on the Company’s financial statements.

ASU No. 2010-13 was issued in April 2010, and clarified the classification of an employee share based payment award with an exercise price denominated in the currency of a market in which the underlying security trades. This ASU will be effective for the first fiscal quarter beginning after December 15, 2010, with early adoption permitted. The adoption of ASU No. 2010-13 is not expected to have a material impact on the Company’s financial statements.

Other accounting pronouncements that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s financial statements upon adoption.

Note 2 - Significant Accounting Policies

a) Basis of Presentation

These financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“US GAAP”). All adjustments considered necessary for a fair presentation of financial position, results of operations and cash flows as at December 31, 2009 have been included.

b) Accounting Method

The Company’s financial statements are prepared using the accrual method of accounting.

c) Use of Estimates

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant areas require use of estimates include valuation allowance for deferred income tax assets. Actual results could differ from those estimates.

d) Foreign Currency Translation

The Company’s functional currency is U.S. dollars. Transactions in other currencies are recorded in U.S. dollars at the rates of exchange prevailing when the transactions occur. Monetary assets and liabilities denominated in other currencies are translated into U.S. dollars at rates of exchange in effect at the balance sheet dates. Exchange gains and losses are recorded in the statements of operations.

e) Cash and Cash Equivalents

Cash and cash equivalents consist entirely of readily available cash balances. There was no cash equivalent as of December 31, 2009.

f) Stock-based Compensation

The Company adopted ASC 718, “Share-Based Payment,” to account for its stock options and similar equity instruments issued. Accordingly, compensation costs attributable to stock options or similar equity instruments granted are measured at the fair value at the grant date, and expensed over the expected vesting period. ASC 718 requires excess tax benefits be reported as a financing cash inflow rather than as a reduction of taxes paid.

As at December 31, 2009, the Company has no stock option issued and outstanding.

g) Revenue Recognition

Operating revenue consist of advertising revenue. The point in time at which revenues are recognized is determined in accordance with ASC 605-10 (formerly Staff Accounting Bulletin No. 104, “Revenue Recognition”). Revenues are recorded when the Company delivers services to its customers and collection is reasonably estimated.

The Company has not generated any revenue since its inception.

h) Income Taxes

Income taxes are accounted for under the liability method of accounting for income taxes. Under the liability method, deferred tax liabilities and assets are recognized for the estimated future tax consequences attributable to differences between the amounts reported in the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted or substantially enacted income tax rates expected to apply when the asset is realized or the liability is settled. The effect of a change in income tax rates on deferred income tax liabilities and assets is recognized in income in the period that the change occurs. Deferred income tax assets are recognized to the extent that they are considered more likely than not to be realized.

The Financial Accounting Standards Board (FASB) has issued FASB ASC 740-10, “Accounting for Uncertainty in Income Taxes”. ASC 740-10 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements in accordance with prior literature FASB Statement No. 109, Accounting for Income Taxes. This standard requires a company to determine whether it is more likely than not that a tax position will be sustained upon examination based upon the technical merits of the position. If the more-likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements. The implementation of this standard has no impact on the Company’s financial statements.

i) Comprehensive Income (Loss)

The Company accounts for comprehensive income under the provisions of ASC Topic 220-10, “Comprehensive Income – Overall,” which establishes standards for reporting and display of comprehensive income, its components and accumulated balances. The Company is disclosing this information on its Statement of Operations and Comprehensive Loss.

j) Earnings (Loss) Per Share

The Company adopted Financial Accounting Standards ASC subtopic 260-10, “Earnings Per Share”, which simplifies the computation of earning per share requiring the restatement of all prior periods.

Basic loss per share is computed on the basis of the weighted average number of common shares outstanding during each year.

Diluted loss per share is computed on the basis of the weighted average number of common shares and dilutive securities outstanding. As at December 31, 2009, the diluted loss per share is equal to basic loss per share as there was no other security instrument outstanding as at December 31, 2009.

k) Financial Instruments and Fair Value of Financial Instruments

Fair Value of Financial Instruments – the Company adopted SFAS ASC 820-10-50, “ Fair Value Measurements”. This guidance defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The three levels are defined as follows:

  • Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

  • Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

  • Level 3 inputs to valuation methodology are unobservable and significant to the fair measurement.

The carrying amounts reported in the balance sheets for the cash and cash equivalents and accounts payable and accrued liabilities each qualify as financial instruments and are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization.

l) Subsequent Event

The Company has adopted ASC 855, “Subsequent Events,” which establishes general standards of accounting for disclosure of events that occur after the balance sheet date but before financial statements are issued or available to be issued. It requires the disclosure of the date through which an entity has evaluated subsequent events and whether that date represents the date the financial statements were issued or were available to be issued.

In preparing these financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through January 1, 2010 and September 13, 2010, the date the financial statements were available to be issued.

m) Accounting Codification

On July 1, 2009, the FASB launched the “FASB Accounting Standards Codification” (the “FASB ASC”) as the single source of authoritative non-governmental U.S. GAAP. The FASB ASC did not change current U.S. GAAP, but simplified user access to all authoritative U.S. GAAP by organizing all the authoritative literature related to a particular topic in one place. All existing accounting standard documents were superseded and all other accounting literature not included in the FASB ASC is now considered non-authoritative. The adoption of the FASB ASC did not have an impact on the Company’s financial statements.

n) Recently Adopted Accounting Pronouncements

In September 2009, the FASB issued Accounting Standards Update 2009-12, Fair Value Measurements and Disclosures (Topic 820): Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent). This update provides amendments to Topic 820 for the fair value measurement of investments in certain entities that calculate net asset value per share (or its equivalent). It is effective for interim and annual periods ending after December 15, 2009. Early application is permitted in financial statements for earlier interim and annual periods that have not been issued. The Company adopted this standard for its fiscal year ended December 31, 2009 and has assessed that the adoption of this standard did not have a material effect on its financial statements.

In January 2010, the FASB issued Accounting Standards Update 2010-01, Equity (Topic 505): Accounting for Distributions to Shareholders with Components of Stock and Cash (A Consensus of the FASB Emerging Issues Task Force). This amendment to Topic 505 clarifies the stock portion of a distribution to shareholders that allows them to elect to receive cash or stock with a limit on the amount of cash that will be distributed is not a stock dividend for purposes of applying Topics 505 and 260. Effective for interim and annual periods ending on or after December 15, 2009, and would be applied on a retrospective basis. The Company adopted this standard for its fiscal year ended December 31, 2009 and has assessed that the adoption of this standard did not have a material effect on its financial statements.

In January 2010, the FASB issued Accounting Standards Update 2010-02, Consolidation (Topic 810): Accounting and Reporting for Decreases in Ownership of a Subsidiary. This amendment to Topic 810 clarifies, but does not change, the scope of current US GAAP. It clarifies the decrease in ownership provisions of Subtopic 810-10 and removes the potential conflict between guidance in that Subtopic and asset derecognition and gain or loss recognition guidance that may exist in other US GAAP. An entity will be required to follow the amended guidance beginning in the period that it first adopts FAS 160 (now included in Subtopic 810-10). For those entities that have already adopted FAS 160, the amendments are effective at the beginning of the first interim or annual reporting period ending on or after December 15, 2009. The amendments should be applied retrospectively to the first period that an entity adopted FAS 160. The Company adopted this standard for its fiscal year ended December 31, 2009 and has assessed that the adoption of this standard did not have a material effect on its financial statements.

o) Recently Issued Accounting Pronouncements

In June 2009, the FASB ASC 860-10, “Accounting for Transfers of Financial Assets,” eliminates the concept of a qualifying special-purpose entity (“QSPE”), clarifies and amends the de-recognition criteria for a transfer to be accounted for as a sale, amends and clarifies the unit of account eligible for sale accounting and requires that a transferor initially measure at fair value and recognize all assets obtained and liabilities incurred as a result of a transfer of an entire financial asset or group of financial assets accounted for as a sale. This standard is effective for fiscal years beginning after November 15, 2009. The Company is currently evaluating the potential impact of this standard on its financial statements, but does not expect it to have a material effect.

In June 2009, the FASB issued FASB ASC 810-10-65 which amends the consolidation guidance applicable to a variable interest entity (“VIE”). This standard also amends the guidance governing the determination of whether an enterprise is the primary beneficiary of a VIE, and is therefore required to consolidate an entity, by requiring a qualitative analysis rather than a quantitative analysis. Previously, the standard required reconsideration of whether an enterprise was the primary beneficiary of a VIE only when specific events had occurred. This standard is effective for fiscal years beginning after November 15, 2009, and for interim periods within those fiscal years. Early adoption is prohibited. The Company is currently evaluating the potential impact of the adoption of this standard on its financial statements, but does not expect it to have a material effect.

In July 2009, the FASB ratified the consensus reached by EITF (Emerging Issues Task Force) issued EITF No. 09-1, (ASC Topic 470) "Accounting for Own-Share Lending Arrangements in Contemplation of Convertible Debt Issuance" ("EITF 09-1"). The provisions of EITF 09-1, clarifies the accounting treatment and disclosure of share-lending arrangements that are classified as equity in the financial statements of the share lender. An example of a share-lending arrangement is an agreement between the Company (share lender) and an investment bank (share borrower) which allows the investment bank to use the loaned shares to enter into equity derivative contracts with investors. EITF 09-1 is effective for fiscal years that beginning on or after December 15, 2009 and requires retrospective application for all arrangements outstanding as of the beginning of fiscal years beginning on or after December 15, 2009. Share-lending arrangements that have been terminated as a result of counterparty default prior to December 15, 2009, but for which the entity has not reached a final settlement as of December 15, 2009 are within the scope. The Company does not expect the provisions of EITF 09-1 to have a material effect on the financial position, results of operations or cash flows of the Company.

In October 2009, the FASB issued Accounting Standards Update 2009-13, Revenue Recognition (Topic 605): Multiple-Deliverable Revenue Arrangements. This update addressed the accounting for multiple-deliverable arrangements to enable vendors to account for products or services (deliverables) separately rather than a combined unit and will be separated in more circumstances that under existing US GAAP. This amendment has eliminated that residual method of allocation. Effective prospectively for revenue arrangements entered into or materially modified in fiscal years beginning on or after June 15, 2010. Early adoption is permitted. The Company does not expect the provisions of ASU 2009-13 to have a material effect on the financial position, results of operations or cash flows of the Company.

In January 2010, FASB issued ASU No. 2010-06 regarding fair value measurements and disclosures and improvement in the disclosure about fair value measurements. This ASU requires additional disclosures regarding significant transfers in and out of Levels 1 and 2 of fair value measurements, including a description of the reasons for the transfers. Further, this ASU requires additional disclosures for the activity in Level 3 fair value measurements, requiring presentation of information about purchases, sales, issuances, and settlements in the reconciliation for fair value measurements. This ASU is effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. The Company is currently evaluating the impact of this ASU; however, the Company does not expect the adoption of this ASU to have a material impact on our financial statements.

In February 2010, the FASB issued ASC No. 2010-09, “Amendments to Certain Recognition and Disclosure Requirements”, which eliminates the requirement for SEC filers to disclose the date through which an entity has evaluated subsequent events. ASC No. 2010-09 is effective for its fiscal quarter beginning after 15 December 2010. The adoption of ASC No. 2010-09 is not expected to have a material impact on the Company’s financial statements.

ASU No. 2010-13 was issued in April 2010, and clarified the classification of an employee share based payment award with an exercise price denominated in the currency of a market in which the underlying security trades. This ASU will be effective for the first fiscal quarter beginning after December 15, 2010, with early adoption permitted. The adoption of ASU No. 2010-13 is not expected to have a material impact on the Company’s financial statements.

Other accounting pronouncements that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s financial statements upon adoption.

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Acquisition -Odt
3 Months Ended 12 Months Ended
Mar. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Acquisition -Odt [Text Block]

Note 2 – Acquisition - ODT

In connection with the RTO described above and prior to the acquisition, ODT had no business and did not meet the definition of a business under ASC 805, “Accounting for Business Combinations”. Accordingly, the reverse takeover of ODT by RS has been accounted for as a capital transaction, in respect of which the net assets of ODT on March 24, 2010 were accounted for as a recapitalization of RS. A breakdown of ODT’s net assets as at March 24, 2010 is as follows:

    March 24, 2010  
Total assets – cash only $ 14,910  
Total liabilities   (5,911 )
       
Net assets acquired $ 8,999  

 

Note 2 – Acquisition - ODT

In connection with the RTO described above and prior to the acquisition, ODT had no business and did not meet the definition of a business under ASC 805, “Accounting for Business Combinations”. Accordingly, the reverse takeover of ODT by RS has been accounted for as a capital transaction, in respect of which the net assets of ODT on March 24, 2010 were accounted for as a recapitalization of RS. A breakdown of ODT’s net assets as at March 24, 2010 is as follows:

    March 24, 2010  
Total assets – cash only $  14,910  
Total liabilities   (5,911 )
       
Net assets acquired $  8,999  

 

Note 2 – Acquisition - ODT

In connection with the RTO described above and prior to the acquisition, ODT had no business and did not meet the definition of a business under ASC 805, “Accounting for Business Combinations”. Accordingly, the reverse takeover of ODT by RS has been accounted for as a capital transaction, in respect of which the net assets of ODT on March 24, 2010 were accounted for as a recapitalization of RS. A breakdown of ODT’s net assets as at March 24, 2010 is as follows:

    March 24, 2010  
Total assets – cash only $  14,910  
Total liabilities   (5,911 )
       
Net assets acquired $  8,999  

 

XML 25 R2.htm IDEA: XBRL DOCUMENT v2.4.0.6
Statement of Financial Position (USD $)
Mar. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Current Assets        
Cash and Cash Equivalents $ 23,050 $ 7,492 $ 13,658 $ 8
Total Current Assets 23,050 7,492 13,658 8
Website Development Costs 6,233 6,981 8,325 0
Total Assets 29,283 14,473 21,983 8
Current Liabilities        
Accounts Payable and Accrued Liabilities 26,453 2,918 19,948 787
Term loan - a related party 14,464 14,146 0  
Loan Payable 400 25,400 56,862 0
Total Current Liabilities 41,317 42,464 76,810 787
Term loan - a related party 46,531 45,198 0  
Total Liabilities 87,848 87,662 76,810  
SHAREHOLDERS' (DEFICIENCY)        
Authorized: 100,000,000 common shares, par value $0.0001 Issued and Outstanding: 1,600,000 common shares 62,400 62,400 2,400 400
Additional Paid-in Capital 32,040 32,040 10,008 0
Share subscription received 50,000 0    
(Deficit) Accumulated During the Development Stage (203,005) (167,629) (67,235) (1,179)
Total Shareholders' (Deficiency) (58,565) (73,189) (54,827) (779)
Total Liabilities and Shareholders' (Deficiency) 29,283 14,473 21,983 8
Online Disruptive Technologies Inc. [Member]
       
Current Assets        
Cash and Cash Equivalents       1,578
Total Assets       1,578
Current Liabilities        
Accounts Payable and Accrued Liabilities       599
Loan Payable       2,142
Total Current Liabilities       2,741
SHAREHOLDERS' (DEFICIENCY)        
Authorized: 100,000,000 common shares, par value $0.0001 Issued and Outstanding: 1,600,000 common shares       200
Additional Paid-in Capital       1,800
(Deficit) Accumulated During the Development Stage       (3,163)
Total Shareholders' (Deficiency)       (1,163)
Total Liabilities and Shareholders' (Deficiency)       1,578
Relationshipscoreboard.com Entertainment Inc. [Member]
       
Current Assets        
Cash and Cash Equivalents       8
Total Assets       8
Current Liabilities        
Accounts Payable and Accrued Liabilities       787
Total Current Liabilities       787
SHAREHOLDERS' (DEFICIENCY)        
Authorized: 100,000,000 common shares, par value $0.0001 Issued and Outstanding: 1,600,000 common shares       160
Additional Paid-in Capital       240
(Deficit) Accumulated During the Development Stage       (1,179)
Total Shareholders' (Deficiency)       (779)
Total Liabilities and Shareholders' (Deficiency)       $ 8
XML 26 R6.htm IDEA: XBRL DOCUMENT v2.4.0.6
Statement of Stockholders Equity (USD $)
Common Stock [Member]
Common Stock [Member]
Online Disruptive Technologies Inc. [Member]
Common Stock [Member]
Relationshipscoreboard.com Entertainment Inc. [Member]
Additional Paid-In Capital [Member]
Additional Paid-In Capital [Member]
Online Disruptive Technologies Inc. [Member]
Additional Paid-In Capital [Member]
Relationshipscoreboard.com Entertainment Inc. [Member]
Share Subscription Received [Member]
(Deficit) Accumulated During the Development Stage [Member]
(Deficit) Accumulated During the Development Stage [Member]
Online Disruptive Technologies Inc. [Member]
(Deficit) Accumulated During the Development Stage [Member]
Relationshipscoreboard.com Entertainment Inc. [Member]
Total
Online Disruptive Technologies Inc. [Member]
Relationshipscoreboard.com Entertainment Inc. [Member]
Beginning Balance at Nov. 15, 2009                          
Shares issued for cash at $0.0001 per share on November 16, 2009 (Shares) 1,000 100 100                    
Shares issued for cash at $0.000025 per share on December 5, 2009 $ 400 $ 200 $ 160   $ 1,800 $ 240         $ 400 $ 2,000 $ 400
Shares issued for cash at $0.000025 per share on December 5, 2009 (Shares) 15,999,000 200,000 1,599,900                    
Net loss for the year               (1,179) (3,163) (1,179) (1,179) (3,163) (1,179)
Ending Balance at Dec. 31, 2009 400 200 160   1,800 240   (1,179) (3,163) (1,179) (779) (1,163) (779)
Ending Balance (Shares) at Dec. 31, 2009 16,000,000 200,100 1,600,000                    
Recapitalization - ODT 2,000     6,999             8,999    
Recapitalization - ODT (Shares) 2,000,100                        
Imputed interest from shareholders       3,009             3,009    
Net loss for the year               (66,056)     (66,056)    
Ending Balance at Dec. 31, 2010 2,400     10,008       (67,235)     (54,827)    
Ending Balance (Shares) at Dec. 31, 2010 18,000,100                        
Shares issued for cash at $0.01 per share on February 24, 2011 60,000                   60,000    
Shares issued for cash at $0.01 per share on February 24, 2011 (Shares) 6,000,000                        
Imputed interest from shareholders       6,199             6,199    
Restructured term loan a related party       15,833             15,833    
Net loss for the year               (100,394)     (100,394)    
Ending Balance at Dec. 31, 2011 62,400     32,040       (167,629)     (73,189)    
Ending Balance (Shares) at Dec. 31, 2011 24,000,100                        
Share subscription received             50,000       50,000    
Net loss for the year               (35,376)     (35,376)    
Ending Balance at Mar. 31, 2012 $ 62,400     $ 32,040     $ 50,000 $ (203,005)     $ (58,565)    
Ending Balance (Shares) at Mar. 31, 2012 24,000,100                        
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XML 28 R7.htm IDEA: XBRL DOCUMENT v2.4.0.6
Nature of Operations
3 Months Ended 12 Months Ended 1 Months Ended
Mar. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Online Disruptive Technologies Inc. [Member]
Dec. 31, 2009
Relationshipscoreboard.com Entertainment Inc. [Member]
Nature of Operations [Text Block]

Note 1 - Nature of Operations

Online Disruptive Technologies, Inc. (“ODT” or the “Company”) was incorporated on November 16, 2009 in the State of Nevada, U.S.A. The Company is in the business of operating websites with advertising revenue platforms. The Company has limited operations and in accordance with ASC 915, is considered a development stage company that has had no revenues from inception to date. The Company has a December 31 year-end.

Effective March 24, 2010, the Company acquired 100% of the issued and outstanding shares of RelationshipScoreboard.com Entertainment Inc. (“RS” or “RelationshipScoreboard.com”), a company incorporated on November 16, 2009 in the state of Nevada, U.S.A. in exchange for 16,000,000 shares of the Company’s common stock. Upon the completion of the acquisition, the former sole shareholder of RS held 89% of the Company’s issued and outstanding common stock. As a result, the transaction was accounted for as a reverse takeover transaction (“RTO”) for accounting purpose, as RS was deemed to be the acquirer, and these consolidated financial statements are a continuation of the financial statements of RS.

These financial statements have been prepared with the ongoing assumption that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. The Company suffered a recurring loss and had a working capital deficit of $18,267 as at March 31, 2012 (December 31, 2011 – a working capital deficit of $34,972) which raises substantial doubt about the Company’s ability to continue as a going concern. These financial statements do no include any adjustments to the amounts and classification of assets and liabilities that might be necessary should the Company be unable to continue as a going concern.

The operations of the Company have primarily been funded by the sale of common shares and loans received. Continued operations of the Company are dependent on the Company’s ability to complete equity financings or generate profitable operations in the future. Management’s plan in this regard is to secure additional funds through future equity financings. Such financings may not be available or may not be available on reasonable terms to the Company.

Note 1 - Nature of Operations

Online Disruptive Technologies, Inc. (“ODT” or the “Company”) was incorporated on November 16, 2009 in the State of Nevada, U.S.A. The Company is in the business of operating websites with advertising revenue platforms. The Company has limited operations and in accordance with ASC 915, is considered a development stage company that has had no revenues from inception to date. The Company has a December 31 year-end.

Effective March 24, 2010, the Company acquired 100% of the issued and outstanding shares of RelationshipScoreboard.com Entertainment Inc. (“RS” or “RelationshipScoreboard.com”), a company incorporated on November 16, 2009 in the state of Nevada, U.S.A. in exchange for 16,000,000 shares of the Company’s common stock. Upon the completion of the acquisition, the former sole shareholder of RS held 89% of the Company’s issued and outstanding common stock. As a result, the transaction was accounted for as a reverse takeover transaction (“RTO”) for accounting purpose, as RS was deemed to be the acquirer, and these consolidated financial statements are a continuation of the financial statements of RS.

These financial statements have been prepared with the ongoing assumption that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. The Company suffered a recurring loss and had a working capital deficit of $34,972 as at December 31, 2011 (December 31, 2010 – a working capital deficit of $63,152) which raises substantial doubt about the Company’s ability to continue as a going concern. These financial statements do no include any adjustments to the amounts and classification of assets and liabilities that might be necessary should the Company be unable to continue as a going concern.

The operations of the Company have primarily been funded by the sale of common shares and loans received. Continued operations of the Company are dependent on the Company’s ability to complete equity financings or generate profitable operations in the future. Management’s plan in this regard is to secure additional funds through future equity financings. Such financings may not be available or may not be available on reasonable terms to the Company.

Note 1 - Nature of Operations

Online Disruptive Technologies, Inc. (“ODT” or the “Company”) was incorporated on November 16, 2009 in the State of Nevada, U.S.A. The Company is in the business of operating websites with advertising revenue platforms. The Company has limited operations and in accordance with ASC 915, is considered a development stage company that has had no revenues from inception to date. The Company has a December 31 year-end.

Effective March 24, 2010, the Company acquired 100% of the issued and outstanding shares of RelationshipScoreboard.com Entertainment Inc. (“RS” or “RelationshipScoreboard.com”), a company incorporated on November 16, 2009 in the state of Nevada, U.S.A. in exchange for 16,000,000 shares of the Company’s common stock. Upon the completion of the acquisition, the former sole shareholder of RS is holding 89% of the Company’s issued and outstanding common stock. As a result, the transaction was accounted for as a reverse takeover transaction (“RTO”) for accounting purpose, as RS was deemed to be the acquirer, and these consolidated financial statements are a continuation of the financial statements of RS. The carrying amounts of RS’s assets and liabilities are included in these consolidated financial statements and 2009 comparative figures are those of RS. The consolidated statement of operations included the operations of RS for the year ended December 31, 2010 and the operations of ODT from March 25, 2010 to December 31, 2010.

These financial statements have been prepared with the on-going assumption that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. The Company suffered recurring loss and had a working capital deficit of $63,151 as at December 31, 2010 (2009 – a working capital deficit of $779) which raises substantial doubt about the Company’s ability to continue as a going concern. These financial statements do no include any adjustments to the amounts and classification of assets and liabilities that might be necessary should the Company be unable to continue as a going concern.

The operations of the Company have primarily been funded by the sale of common shares and loans received. Continued operations of the Company are dependent on the Company’s ability to complete equity financings or generate profitable operations in the future. Management’s plan in this regard is to secure additional funds through future equity financings. Such financings may not be available or may not be available on reasonable terms to the Company.

Note 1 - Nature of Operations

Online Disruptive Technologies, Inc. (“ODT” or the “Company”) was incorporated on November 16, 2009 in the State of Nevada, U.S.A. The entity was established to explore investment opportunities in operation of websites with advertising revenue platforms. The Company has limited operations and in accordance with ASC 915, is considered a development stage company that has had no revenues from inception to date. The Company has a December 31 year-end.

These financial statements have been prepared with the on-going assumption that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. As shown in the accompanying financial statements, the Company has incurred operating losses since inception and further losses are anticipated in the development of our business. As of December 31, 2009, the Company has limited financial resources and require additional financing to fund its operations. These factors raise substantial doubt about the Company’s ability to continue as a going concern. These financial statements do no include any adjustments to the amounts and classification of assets and liabilities that might be necessary should the Company be unable to continue as a going concern.

The operations of the Company have primarily been funded by the sale of common shares and loans received. Continued operations of the Company are dependent on the Company’s ability to complete equity financings or generate profitable operations in the future. Management’s plan in this regard is to secure additional funds through future equity financings. Such financings may not be available or may not be available on reasonable terms to the Company.

Note 1 - Nature of Operations

Relationshipscoreboard.com Entertainment, Inc. (“RS” or the “Company”) was incorporated on November 16, 2009 in the State of Nevada, U.S.A. The Company was established to operate a website with an advertising revenue platform. The Company has limited operations and in accordance with ASC 915, is considered a development stage company that has had no revenues from inception to date. The Company has a December 31 year-end.

These financial statements have been prepared with the on-going assumption that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. As shown in the accompanying financial statements, the Company has incurred operating losses since inception and further losses are anticipated in the development of our business. As of December 31, 2009, the Company has limited financial resources and require additional financing to fund its operations. These factors raise substantial doubt about the Company’s ability to continue as a going concern. These financial statements do no include any adjustments to the amounts and classification of assets and liabilities that might be necessary should the Company be unable to continue as a going concern.

The operations of the Company have primarily been funded by the sale of common shares. Continued operations of the Company are dependent on the Company’s ability to complete equity financings or generate profitable operations in the future. Management’s plan in this regard is to secure additional funds through future equity financings. Such financings may not be available or may not be available on reasonable terms to the Company.

XML 29 R3.htm IDEA: XBRL DOCUMENT v2.4.0.6
Statement of Financial Position (Parenthetical) (USD $)
Mar. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Preferred Stock, Shares Authorized 20,000,000 20,000,000 20,000,000 20,000,000
Preferred Stock, Par Value Per Share $ 0.001 $ 0.001 $ 0.001 $ 0.001
Common Stock, Shares Authorized 500,000,000 500,000,000 500,000,000 500,000,000
Common Stock, Par Value Per Share $ 0.001 $ 0.001 $ 0.001 $ 0.001
Common Stock, Shares, Issued 24,000,100 24,000,100 18,000,100 18,000,100
Common Stock, Shares, Outstanding 24,000,100 24,000,100 18,000,100 18,000,100
Online Disruptive Technologies Inc. [Member]
       
Preferred Stock, Shares Authorized       20,000,000
Preferred Stock, Par Value Per Share       $ 0.001
Common Stock, Shares Authorized       500,000,000
Common Stock, Par Value Per Share       $ 0.001
Common Stock, Shares, Issued       200,100
Common Stock, Shares, Outstanding       200,100
Relationshipscoreboard.com Entertainment Inc. [Member]
       
Common Stock, Shares Authorized       100,000,000
Common Stock, Par Value Per Share       $ 0.0001
Common Stock, Shares, Issued       1,600,000
Common Stock, Shares, Outstanding       1,600,000
XML 30 R17.htm IDEA: XBRL DOCUMENT v2.4.0.6
Subsequent Events
3 Months Ended 12 Months Ended 1 Months Ended
Mar. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Online Disruptive Technologies Inc. [Member]
Dec. 31, 2009
Relationshipscoreboard.com Entertainment Inc. [Member]
Subsequent Events [Text Block]

Note 10 – Subsequent Events

  1.

On April 9, 2012, the Company undertook a private placement financing (the ”Financing”) consisting of the issuance of 17,750,000 shares at a per share price of $0.001 for gross proceeds of $17,750.

     
  2.

On April 4, 2012, a to-be-incorporated wholly owned Israeli subsidiary of the Company entered into a non-binding term sheet regarding the licensing of a biotechnology process with a division of Tel Aviv University. It is the intention of both parties to negotiate and enter into a superseding licensing agreement. On April 23, 2012, the Company established the Israeli subsidiary named Savicell Diagnostic Ltd. In conjunction with this incorporation, the Company appointed Mr. David Eyal Davidovits as the sole officer and director of the subsidiary. In addition, Mr. Davidovits was also appointed as Vice-President of Business Development of the Company.

 

Note 11 – Subsequent Events

On February 13, 2012, the Company executed a $25,000 loan agreement with an unrelated third party lender. The amount is unsecured and non-interest bearing. The loan shall be converted to common stock of the Company at the same per share price applicable to the next issuance by the Company of common shares (the “Next Equity Financing”). Such conversion shall take place contemporaneous with the closing of the Next Equity Financing with the subject common shares being issued to such persons as directed by the lender. The loan shall not have any fixed repayment term and shall be retired upon the loan conversion.

Note 9 – Subsequent Events

On February 24, 2011, the Company completed an equity financing pursuant to which it issued 6,000,000 common shares at a per share price of $0.01 for aggregate proceeds of $60,000. The offering was completed in accordance with a prospectus filed by the Company on December 29, 2010.

In preparing these financial statements, the Company has evaluated events and transactions for potential recognition or disclosure from January 1, 2011 through March 8, 2011, the date the financial statements were available to be issued.

Note 6 – Subsequent Events

On January 7, 2010 the Company issued 1,800,000 common shares at $0.01 per share for a total of $18,000.

On March 24, 2010, the Company acquired Relationshipscoreboard.com Entertainment Inc. (“RS”) by issuing of 16,000,000 of the Company’s shares in exchange for 100% of RS shares. The acquisition is considered as a reverse-takeover as the shareholders of RS become the majority shareholders of the Company.

Subsequent to the year ended December 31, 2009, the Company is in the process of raising funds publicly through the sale of 6,000,000 common shares at a price of $0.01 per share.

Also see Note 3.

Note 6 – Subsequent Events

On January 8, 2010, the Company obtained a $400 loan from a shareholder and director of the Company. The loan was unsecured, non-interest bearing and due on demand.

On March 24, 2010, the Company was acquired by Online Disruptive Technologies, Inc. (“ODT”) by ODT issuing 16,000,000 of its shares for 100% of the Company’s shares. The acquisition is considered as a reverse-takeover as the shareholders of the Company become the majority shareholder of ODT.

XML 31 R1.htm IDEA: XBRL DOCUMENT v2.4.0.6
Document and Entity Information
28 Months Ended
Mar. 31, 2012
Document and Entity Information  
Document Type Other
Amendment Flag true
Amendment Description   
Document Period End Date Mar. 31, 2012
Trading Symbol odt
Entity Registrant Name ONLINE DISRUPTIVE TECHNOLOGIES, INC.
Entity Central Index Key 0001498380
Current Fiscal Year End Date --12-31
Entity Filer Category Smaller Reporting Company
Entity Current Reporting Status Yes
Entity Voluntary Filers No
Entity Well Known Seasoned Issuer No
Document Fiscal Year Focus 2012
Document Fiscal Period Focus FY
XML 32 R18.htm IDEA: XBRL DOCUMENT v2.4.0.6
Comparative Figures
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Comparative Figures [Text Block]

Note 12 – Comparative Figures

Certain comparative figures have been reclassified in order to conform to the current period’s financial statement presentation.

Note 11 – Comparative Figures

Certain comparative figures have been reclassified in order to conform to the current period’s financial statement presentation.

XML 33 R4.htm IDEA: XBRL DOCUMENT v2.4.0.6
Statement of Operations (USD $)
1 Months Ended 3 Months Ended 12 Months Ended 13 Months Ended 25 Months Ended 28 Months Ended
Dec. 31, 2009
Mar. 31, 2012
Mar. 31, 2011
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2010
Dec. 31, 2011
Mar. 31, 2012
General and Administrative Expenses                
Accounting Fees $ 0 $ 2,500 $ 1,500 $ 6,667 $ 500 $ 500 $ 7,167 $ 9,667
Audit and Tax Fees 0 11,825 7,850 15,181 29,322 29,322 44,503 56,328
Amortization - Website Development Costs   748 0 1,994   0 1,994 2,742
Bank Fees 67 364 (194) 202 527 594 796 1,160
Consulting Fees 0 12,500 0 13,333 1,500 1,500 14,833 27,333
Filing and Transfer Agent Fees 0 2,468 1,503 14,389 6,091 6,091 20,480 22,948
License and Permit Fees 325 (50) 0 494 732 1,057 1,551 1,501
Legal Fees 767 3,369 2,190 29,767 24,375 25,142 54,909 58,278
Travel Expenses   0 0 11,043   0 11,043 11,043
Web Domain Expense 20 0 0 10 0 20 30 30
Total General and Administrative Expenses 1,179 33,724 12,849 93,080 63,047 64,226 157,306 191,030
(Loss) before other expense (1,179) (33,724) (12,849) (93,080) (63,047) (64,226) (157,306) (191,030)
Other Expense                
Interest Expense 0 1,652 1,626 7,314 3,009 3,009 10,323 11,975
Net Loss and Comprehensive Loss for the Period (1,179) (35,376) (14,475) (100,394) (66,056) (67,235) (167,629) (203,005)
Basic and Diluted Net Loss per Common Share $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00         
Weighted Average Number of Common Shares Outstanding - Basic and Diluted 16,000,000 24,000,100 20,333,433 23,109,990 17,545,283         
Online Disruptive Technologies Inc. [Member]
               
General and Administrative Expenses                
Bank Fees 97              
License and Permit Fees 325              
Legal Fees 2,741              
Total General and Administrative Expenses 3,163              
Other Expense                
Net Loss and Comprehensive Loss for the Period (3,163)              
Basic and Diluted Net Loss per Common Share $ (0.02)              
Weighted Average Number of Common Shares Outstanding - Basic and Diluted 133,433              
Relationshipscoreboard.com Entertainment Inc. [Member]
               
General and Administrative Expenses                
Bank Fees 67              
License and Permit Fees 325              
Legal Fees 767              
Web Domain Expense 20              
Total General and Administrative Expenses 1,179              
Other Expense                
Net Loss and Comprehensive Loss for the Period $ (1,179)              
Basic and Diluted Net Loss per Common Share $ 0.00              
Weighted Average Number of Common Shares Outstanding - Basic and Diluted 939,172              
XML 34 R12.htm IDEA: XBRL DOCUMENT v2.4.0.6
Loans Payable Related Parties
3 Months Ended 12 Months Ended 1 Months Ended
Mar. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Online Disruptive Technologies Inc. [Member]
Loans Payable Related Parties [Text Block]

Note 6 – Loans Payable – Related Parties

As at March 31, 2012, the loans payable included followings:

  -

Two separate loan agreements each in the amount of $25,000 entered into with shareholders of the Company. The amount of each loan is unsecured and non-interest bearing. Each loan shall be converted to common stock of the Company at the same per share price applicable to the next issuance by the Company of common shares (the “Next Equity Financing”). Such conversions shall take place contemporaneous with the closing of the Next Equity Financing with the subject common shares being issued to such persons as directed by the lender. The loans do not entail any fixed repayment term and shall be retired upon the loan conversion.

  -

$400 payable to a director and principal shareholder of the Company. The amount is unsecured, non-interest bearing and due on demand.

 

As at March 31, 2012, the Company’s intent towards the two loans of $25,000 each is to issue common shares of the Company at the same per share price applicable to the next issuance by the Company of common shares. Therefore, the Company has considered the loan amounts ($50,000 in aggregate) as share subscriptions received and reclassified such amount as part of shareholders’ equity.

Note 6 – Loans Payable – Related Parties

As at December 31, 2011, the loans payable included followings:

  • $25,000 payable to a shareholder of the Company. The amount is unsecured and non-interest bearing and due on demand.
  • $400 payable to a director and principal shareholder of the Company. The amount is unsecured, non-interest bearing and due on demand.

During the year ended December 31, 2011, the Company recorded imputed interest on the loans payable from related parties at a market rate of 11.68% thereby leading to the recognition of interest expense of $6,199. A corresponding amount was classified as additional paid-in capital.

Note 5 – Loans Payable – Related Parties

As at December 31, 2010, the loans payable included the following:

  • $56,462 payable to a shareholder of the Company. The amount is unsecured, non-interest bearing and due on demand.
  • $400 payable to a director and principal shareholder of the Company. The amount is unsecured, non-interest bearing and due on demand.

During the year ended December 31, 2010, the Company recorded imputed interest on the loans payable from related parties at a market rate of 11.5% thereby leading to the recognition of interest expense of $3,009. A corresponding amount was classified as additional paid-in capital.

Note 3 – Loans Payable

During the period, the Company borrowed $2,142 from an independent third party. The loan is unsecured, non-interest bearing and due on demand.

Subsequent to December 31, 2009, the independent third party purchased shares of the Company and became a shareholder. The Company further borrowed an additional $29,320 from the shareholder, resulting in total loan payable of $31,462.

XML 35 R11.htm IDEA: XBRL DOCUMENT v2.4.0.6
Term Loan a related party
3 Months Ended 12 Months Ended
Mar. 31, 2012
Dec. 31, 2011
Term Loan a related party [Text Block]

Note 5 – Term Loan – a related party

On November 4, 2011, the Company entered into a loan terms Agreement (“Agreement”) with a shareholder of the Company to settle a loan payable in the amount of $74,062. Pursuant to the Agreement, the terms of repayment were amended to specify that ten per cent ( 10%) of the gross proceeds of any prospective debt or equity financing undertaken by the Company would be applied to the repayment of the principal of this loan until fully repaid. The term loan is unsecured, non-interest bearing and requires that any balance remaining outstanding on November 4, 2016 would then be fully due and payable.

The Company’s management has estimated the repayment of the principal of the loan to be approximately $20,000, $25,000 and $25,000 in fiscal years 2012-2014 respectively with the balance of $4,062 being repaid during the first quarter of fiscal 2015 based on the anticipated prospective debt or equity financings. Management has determined the net present value of the term loan as at the date of restructuring to be $58,229 by discounting the future anticipated repayments at a relative market rate of 11.68% . As a result of the restructuring, the Company recorded $15,833 of additional paid-in capital. During the three month period ended March 31, 2012, the Company recorded interest accretion of $1,652. (three month period ended March 31, 2011 - $nil)

A summary of term loan is as follows:

    March 31, 2012  
Term loan – face value $ 74,062  
Effective interest rate – 11.68%   (15,833 )
Net present value   58,229  
Interest accretion   2,766  
Total   60,995  
Current portion   14,464  
Term loan – long term $ 46,531  
Note 5 – Term Loan – a related party

On November 4, 2011, the Company entered into a loan terms Agreement (“Agreement”) with a shareholder of the Company to settle a loan payable in the amount of $74,062. Pursuant to the Agreement, the terms of repayment were amended to specify that ten per cent (10%) of the gross proceeds of any prospective debt or equity financing undertaken by the Company would be applied to the repayment of the principal of this loan until fully repaid. The term loan is unsecured, non-interest bearing and requires that any balance remaining outstanding on November 4, 2016 would then be fully due and payable.

The Company’s management has estimated the repayment of the principal of the loan to be approximately $20,000, $25,000 and $25,000 in fiscal years 2012-2014 respectively with the balance of $4,062 being repaid during the first quarter of fiscal 2015 based on the anticipated prospective debt or equity financings. Management has determined the net present value of the term loan as at the date of restructuring to be $58,229 by discounting the future anticipated repayments at a relative market rate of 11.68% . As a result of the restructuring, the Company recorded $15,833 of additional paid-in capital. During the year ended December 31, 2011, the Company recorded interest accretion of $1,115.

A summary of term loan is as follows:

    December 31, 2011  
Term loan – face value $  74,062  
Effective interest rate – 11.68%   (15,833 )
Net present value   58,229  
Interest accretion   1,115  
Total   59,344  
Current portion   14,146  
Term loan – long term $  45,198  

 

XML 36 R15.htm IDEA: XBRL DOCUMENT v2.4.0.6
Income Taxes
12 Months Ended 1 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Online Disruptive Technologies Inc. [Member]
Dec. 31, 2009
Relationshipscoreboard.com Entertainment Inc. [Member]
Income Taxes [Text Block]

Note 9 – Income Taxes

The Company is subject to income tax laws in the U.S. The Company incurred a net loss for the year ended December 31, 2011 and therefore did not incur income tax expense.

A reconciliation of the federal statutory income tax, at the statutory rate of 15% to the Company’s effective income tax rate, for the years ended December 31, 2011 and 2010 are as follows:

      For the year ended     For the year ended December  
      December 31, 2011     31, 2010  
           
  Net loss from operations   (100,394 )   (66,056 )
  Statutory tax rate   15%     15%  
  Income tax recovery   (15,059 )   (9,908 )
  Non-deductible item   1,097     451  
  Benefits not recognized   13,962     9,457  
  Income tax expense (recovery)   -     -  

The significant components of deferred income tax assets (liabilities) are as follows:

      December 31, 2011     December 31, 2010  
           
  Non-capital loss carry forwards   25,698     11,284  
  Valuation allowance   (25,698 )   (11,284 )
  Deferred income tax assets   -     -  

 

The valuation allowances for deferred tax assets as of December 31, 2011 and 2010 were $25,698 and $11,284, respectively. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible.

As at December 31, 2011, the Company has non-capital loss carry forwards totalling $171,317 available to reduce taxable income otherwise calculated in future years. These losses expire from 2029 to 2031.

Note 8 – Income Taxes

The Company is subject to income tax laws in the U.S. The Company incurred a net loss for the year ended December 31, 2010 and therefore did not incur income tax expense.

A reconciliation of the federal statutory income tax, at the statutory rate of 15% to the Company’s effective income tax rate, for the year ended December 31, 2010 and for the period from November 16, 2009 to December 31, 2009 is as follows:

            For the period from  
      For the year ended     November 16, 2009 to  
      December 31, 2010     December 31, 2009  
           
  Net loss from operations   (66,056 )   (1,179 )
  Statutory tax rate   15%     15%  
  Income tax recovery   (9,908 )   (177 )
  Non-deductible item   451     -  
  Benefits not recognized   9,457     177  
  Income tax expense (recovery)   -     -  

The significant components of deferred income tax assets (liabilities) are as follows:

      December 31, 2010     December 31, 2009  
           
  Non-capital loss carry forwards   11,284     177  
  Valuation allowance   (11,284 )   (177 )
  Deferred income tax assets   -     -  

The valuation allowances for deferred tax assets as of December 31, 2010 and 2009 were $11,284 and $177 respectively. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible.

As at December 31, 2010, the Company has non-capital loss carry forwards totalling $75,227 available to reduce taxable income otherwise calculated in future years. These losses expire from 2029 to 2030.

Note 5 – Income Taxes

The Company is subject to income tax laws in the U.S. The Company incurred a net loss for the period from November 16, 2009 to December 31, 2009 and therefore did not incur income tax expense.

A reconciliation of the federal statutory income tax, at the statutory rate of 15% to the Company’s effective income tax rate, for the period from November 16, 2009 to December 31, 2009 is as follows:

    For the period from  
    November 16, 2009  
    (inception) to  
    December 31, 2009  
  $    
Net loss from operations   (3,163 )
Statutory tax rate   15%  
Income tax recovery   (475 )
Unrecognized benefits of non-capital losses   475  
Income tax expense   -  

The significant components of deferred income tax assets (liabilities) are as follows:

    December 31, 2009  
  $    
Non-capital loss carry forwards   475  
Valuation allowance   (475 )
Deferred income tax asset   -  

The valuation allowance for deferred tax assets as of December 31, 2009 was $475. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible.

As at December 31, 2009, the Company has non-capital loss carry forwards of $3,163 available to reduce taxable income otherwise calculated in future years. This loss expires in 2029.

Note 5 – Income Taxes

The Company is subject to income tax laws in the U.S. The Company incurred a net loss for the period from November 16, 2009 to December 31, 2009 and therefore did not incur income tax expense.

A reconciliation of the federal statutory income tax, at the statutory rate of 15% to the Company’s effective income tax rate, for the period from November 16, 2009 to December 31, 2009 is as follows:

    For the period from  
    November 16,  
    2009(inception) to   
    December 31, 2009  
  $    
Net loss from operations   (1,179 )
Statutory tax rate   15%  
Income tax recovery   (177 )
Unrecognized benefit for non-capital losses   177  
Income tax expense   -  

The significant components of future income tax assets (liabilities) are as follows:

    December 31, 2009  
  $    
Non-capital loss carry forwards   177  
Valuation allowance   (177 )
Deferred income tax asset   -  

The valuation allowance for deferred tax assets as of December 31, 2009 was $177. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible.

As at December 31, 2009, the Company has non-capital loss carry forwards of $1,179 available to reduce taxable income otherwise calculated in future years. This loss expires in 2029.

XML 37 R13.htm IDEA: XBRL DOCUMENT v2.4.0.6
Related Party Transactions
3 Months Ended 12 Months Ended 1 Months Ended
Mar. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Relationshipscoreboard.com Entertainment Inc. [Member]
Related Party Transactions [Text Block]

Note 7 – Related Party Transactions

See Note 5 and 6.

Note 7 – Related Party Transactions

See Note 5 and 6.

Note 6 – Related Party Transactions

See Note 5.

Note 3 – Related Party Transactions

There were no related party transactions for the period ended December 31, 2009.

Subsequent to the December 31, 2009, the Company borrowed a loan of $400 from a director and shareholder of the Company.

XML 38 R14.htm IDEA: XBRL DOCUMENT v2.4.0.6
Stockholders Equity
3 Months Ended 12 Months Ended 1 Months Ended
Mar. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Online Disruptive Technologies Inc. [Member]
Dec. 31, 2009
Relationshipscoreboard.com Entertainment Inc. [Member]
Stockholders Equity [Text Block]

Note 8 – Stockholders’ Equity

On March 24, 2010, the Company issued 16,000,000 common shares (restricted shares) to the sole shareholder of RS to effect the acquisition and RTO. Prior to the acquisition and RTO (Note 1 and 2), RS engaged in the following equity transactions which have been restated using the exchange ratio established in the acquisition agreement to reflect 16,000,000 common shares issued in the reverse acquisition:

  - On November 16, 2009, RS issued 1,000 common shares at $0.0001 per share for total proceeds of $0.10.
     
  - On December 5, 2009, RS issued 15,999,000 common shares at $0.000025 per share for total proceeds of $400.

Prior to the acquisition and RTO (Note 1 and 2), the Company engaged in the followings equity transactions:

  -

On November 16, 2009, the Company issued 100 common shares at $0.001 per share for total proceeds of $0.10.

  -

On December 2, 2009, the Company issued 200,000 common shares at $0.01 per share for total proceeds of $2,000.

  -

On January 7, 2010, the Company issued 1,800,000 common shares at $0.01 per share for total proceeds of $18,000.

Upon the acquisition and RTO, 2,000,100 common shares issued by the Company prior to the acquisition were considered as a recapitalization to RS.

On February 24, 2011, the Company issued 6,000,000 common shares at $0.01 per share for total proceeds of $60,000.

 

Share subscription received

During the three month ended March 31, 2012, the Company received loan proceeds of from a shareholder of the Company. The amount is unsecured and non-interest bearing. The loan shall be converted to common stock of the Company at the same per share price applicable to the next issuance by the Company of common shares (the “Next Equity Financing”). Such conversion shall take place contemporaneous with the closing of the Next Equity Financing with the subject common shares being issued to such persons as directed by the lender. The loan does not entail any fixed repayment term and shall be retired upon the loan conversion.

The Company’s intent towards the above $25,000 loan is to issue the common shares of the Company at the same per share price applicable to the next issuance by the Company of common shares. Therefore, the Company has considered the loan amount as a share subscription received and recorded it as part of shareholders’ equity.

Note 8 – Stockholders’ Equity

On March 24, 2010, the Company issued 16,000,000 common shares (restricted shares) to the sole shareholder of RS to effect the acquisition and RTO. Prior to the acquisition and RTO (Note 1 and 2), RS engaged in the following equity transactions which have been restated using the exchange ratio established in the acquisition agreement to reflect 16,000,000 common shares issued in the reverse acquisition:

  • On November 16, 2009, RS issued 1,000 common shares at $0.0001 per share for total proceeds of $0.10.
  • On December 5, 2009, RS issued 15,999,000 common shares at $0.000025 per share for total proceeds of $400.

Prior to the acquisition and RTO (Note 1 and 2), the Company engaged in the followings equity transactions:

  • On November 16, 2009, the Company issued 100 common shares at $0.001 per share for total proceeds of $0.10.
  • On December 2, 2009, the Company issued 200,000 common shares at $0.01 per share for total proceeds of $2,000.
  • On January 7, 2010, the Company issued 1,800,000 common shares at $0.01 per share for total proceeds of $18,000.

Upon the acquisition and RTO, 2,000,100 common shares issued by the Company prior to the acquisition were considered as a recapitalization to RS.

On February 24, 2011, the Company issued 6,000,000 common shares at $0.01 per share for total proceeds of $60,000.

Note 7 – Stockholders’ Equity

On March 24, 2010, the Company issued 16,000,000 common shares to the sole shareholder of RS to effect the acquisition and RTO. Prior to the acquisition and RTO (Note 1 and 2), RS engaged in the following equity transactions which have been restated using the exchange ratio established in the acquisition agreement to reflect 16,000,000 common shares issued in the reverse acquisition:

  • On November 16, 2009, RS issued 1,000 common shares at $0.0001 per share for total proceeds of $0.1.
  • On December 5, 2009, RS issued 15,999,000 common shares at $0.000025 per share for total proceeds of $400.

Prior to the acquisition and RTO (Note 1 and 2), the Company engaged in the followings equity transactions:

  • On November 16, 2009, the Company issued 100 common shares at $0.001 per share for total proceeds of $0.10.
  • On December 2, 2009, the Company issued 200,000 common shares at $0.01 per share for total proceeds of $2,000.
  • On January 7, 2010, the Company issued 1,800,000 common shares at $0.01 per share for total proceeds of $18,000.

Upon the acquisition and RTO, 2,000,100 common shares issued by the Company prior to the acquisition were considered as a recapitalization to RS.

Note 4 – Stockholders’ Equity

On November 16, 2009, the Company issued 100 common shares at $0.001 per share for total proceeds of $0.1.

On December 2, 2009, the Company issued 200,000 common shares at $0.01 per share for total proceeds of $2,000.

Note 4 – Shareholders’ Equity

On November 16, 2009, the Company issued 100 common shares at $0.001 per share for total proceeds of $0.1.

On December 5, 2009, the Company issued 1,599,900 common shares at $0.00025 per share for total proceeds of $400.

XML 39 R16.htm IDEA: XBRL DOCUMENT v2.4.0.6
Commitments And Guarantees
3 Months Ended 12 Months Ended 1 Months Ended
Mar. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Online Disruptive Technologies Inc. [Member]
Dec. 31, 2009
Relationshipscoreboard.com Entertainment Inc. [Member]
Commitments And Guarantees [Text Block]

Note 9 – Commitments and Guarantees

The Company did not become a guarantor to any parties as at March 31, 2012.

Effective November 1, 2011, the Company entered into a consulting agreement with 1367826 Ontario Limited (“OntarioCo”) and Robbie Manis, pursuant to which OntarioCo is to provide certain consulting services to our company including: sourcing and implementing new business opportunities; raising financing reasonably required from time to time by our company; coordinating all required accounting, reporting and disclosure; and fulfilling any other needed administrative functions. As consideration for the performance of the consulting services under the agreement, we agreed to pay OntarioCo the sum of $4,166.67 per month for the duration of the agreement, exclusive of any applicable sales tax. The agreement is for an indefinite period unless terminated by either party with sixty days advance written notice to the other party.

Effective November 1, 2011, we entered into a consulting agreement with Kerry Chow, pursuant to which Kerry Chow will provide certain consulting services to our company including: maintaining the accounting books and records on behalf of our company and our subsidiaries; preparing consolidated quarterly and annual financial statements for our company and our subsidiaries as well as assisting in the preparation of the related disclosure documents; coordinating the quarterly reviews and annual audits on behalf of our company and our subsidiaries; coordinating the preparation and filing of the annual income tax returns of our company and our subsidiaries; and any other accounting-related functions. As consideration for the performance of the consulting services under the agreement, we agreed to pay Kerry Chow the sum of $833.33 per month for the duration of the agreement, exclusive of any applicable sales tax. The agreement is for an indefinite period unless terminated by either party with sixty days advance written notice to the other party.

See Note 10.

Note 10 – Commitments and Guarantees

The Company did not become a guarantor to any parties as at December 31, 2011.

Effective November 1, 2011, we entered into a consulting agreement with 1367826 Ontario Limited (“OntarioCo”) and Robbie Manis, pursuant to which OntarioCo is to provide certain consulting services to our company including: sourcing and implementing new business opportunities; raising financing reasonably required from time to time by our company; coordinating all required accounting, reporting and disclosure; and fulfilling any other needed administrative functions. As consideration for the performance of the consulting services under the agreement, we agreed to pay OntarioCo the sum of US$4,166.67 per month for the duration of the agreement, exclusive of any applicable sales tax. The agreement is for an indefinite period unless terminated by either party with sixty days advance written notice to the other party.

Effective November 1, 2011, we entered into a consulting agreement with Kerry Chow, pursuant to which Kerry Chow will provide certain consulting services to our company including: maintaining the accounting books and records on behalf of our company and our subsidiaries; preparing consolidated quarterly and annual financial statements for our company and our subsidiaries as well as assisting in the preparation of the related disclosure documents; coordinating the quarterly reviews and annual audits on behalf of our company and our subsidiaries; coordinating the preparation and filing of the annual income tax returns of our company and our subsidiaries; and any other accounting-related functions. As consideration for the performance of the consulting services under the agreement, we agreed to pay Kerry Chow the sum of US$833.33 per month for the duration of the agreement, exclusive of any applicable sales tax. The agreement is for an indefinite period unless terminated by either party with sixty days advance written notice to the other party.

See Note 11.

Note 10 – Commitments and Guarantees

The Company did not enter into any commitments nor did it become a guarantor to any parties as at December 31, 2010.

Note 7 – Commitments and Guarantees

The Company did not enter into any commitments nor did it become a guarantor to any parties during the period ended December 31, 2009.

Note 7 – Commitments and Guarantees

The Company did not enter into any commitments nor did it become a guarantor to any parties during the fiscal year ended December 31, 2009.

XML 40 R5.htm IDEA: XBRL DOCUMENT v2.4.0.6
Statement of Cash Flows (USD $)
1 Months Ended 3 Months Ended 12 Months Ended 13 Months Ended 25 Months Ended 28 Months Ended
Dec. 31, 2009
Mar. 31, 2012
Mar. 31, 2011
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2010
Dec. 31, 2011
Mar. 31, 2012
Cash flow from Operating Activities                
Net loss for the period $ (1,179) $ (35,376) $ (14,475) $ (100,394) $ (66,056) $ (67,235) $ (167,629) $ (203,005)
Imputed interest 0 1,652 1,626 7,314 3,009 3,009 10,323 11,975
Amortization - website development costs   748 0 1,994   0 1,994 2,742
Changes in non-cash working capital items:                
Increase in accounts payable and accrued liabilities 787 23,534 (2,160) (17,030) 8,700 9,487 (7,543) 15,991
Net Cash (Used in) Operating Activities (392) (9,442) (15,009) (108,116) (54,347) (54,739) (162,855) (172,297)
Cash flow from Financing Activities                
Common shares issued, net of issuance costs 400 0 60,000 60,000 0 400 60,400 60,400
Increase in loan payable - related parties 0 0 0 42,600 56,862 56,862 99,462 99,462
Share subscription received   25,000 0         25,000
Net Cash Provided by Financing Activities 400 25,000 60,000 102,600 56,862 57,262 159,862 184,862
Cash flow from Investing Activities                
Cash acquired on acquisition of subsidiary 0 0 0 0 14,910 14,910 14,910 14,910
Website development costs 0 0 0 (650) (3,775) (3,775) (4,425) (4,425)
Net Cash Provided by Investing Activities 0 0 0 (650) 11,135 11,135 10,485 10,485
Net Increase in Cash and Cash equivalents 8 15,558 44,991 (6,166) 13,650 13,658 7,492 23,050
Cash and Cash equivalents, Beginning of Period 0 7,492 13,658 13,658 8 0 0 0
Cash and Cash equivalents, End of Period 8 23,050 58,649 7,492 13,658 13,658 7,492 23,050
Supplementary Information                
Interest Paid 0 0 0 0 0 0 0 0
Income Taxes Paid 0 0 0 0 0 0 0 0
Online Disruptive Technologies Inc. [Member]
               
Cash flow from Operating Activities                
Net loss for the period (3,163)              
Changes in non-cash working capital items:                
Increase in accounts payable and accrued liabilities 599              
Net Cash (Used in) Operating Activities (2,564)              
Cash flow from Financing Activities                
Common shares issued, net of issuance costs 2,000              
Increase in loan payable - related parties 2,142              
Net Cash Provided by Financing Activities 4,142              
Cash flow from Investing Activities                
Net Increase in Cash and Cash equivalents 1,578              
Cash and Cash equivalents, Beginning of Period 0         0 0 0
Cash and Cash equivalents, End of Period 1,578              
Supplementary Information                
Interest Paid 0              
Income Taxes Paid 0              
Relationshipscoreboard.com Entertainment Inc. [Member]
               
Cash flow from Operating Activities                
Net loss for the period (1,179)              
Changes in non-cash working capital items:                
Increase in accounts payable and accrued liabilities 787              
Net Cash (Used in) Operating Activities (392)              
Cash flow from Financing Activities                
Common shares issued, net of issuance costs 400              
Net Cash Provided by Financing Activities 400              
Cash flow from Investing Activities                
Net Increase in Cash and Cash equivalents 8              
Cash and Cash equivalents, Beginning of Period 0         0 0 0
Cash and Cash equivalents, End of Period 8              
Supplementary Information                
Interest Paid 0              
Income Taxes Paid $ 0              
XML 41 R10.htm IDEA: XBRL DOCUMENT v2.4.0.6
Website Development Costs
3 Months Ended 12 Months Ended
Mar. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Website Development Costs [Text Block]

Note 4 – Website Development Costs

The Company incurred and capitalized costs of $8,975 ( December 31, 2011 - $8,975) related to its ongoing website development. As at May 1, 2011, the development of the initial phase of the website was substantially completed. As such, the Company began amortizing the website cost over the estimated useful life of 3 years. As at March 31, 2012, the Company incurred amortization cost amounting to $2,742 and the net cost of the web development asset of $6,233 is reflected on the consolidated balance sheet.

    As of March 31, 2012  
    Opening balance     Addition     Amortization     Ending balance  
Website development costs $ 8,325   $ 650   $ 2,742   $ 6,233  
                         
    As of December 31, 2011  
    Opening balance     Addition     Amortization     Ending balance  
Website development costs $ 8,325   $ 650   $ 1,994   $ 6,981  

 

Note 4 – Website Development Costs

The Company incurred and capitalized costs of $8,975 (2010 - $8,325) related to its ongoing website development. As at May 1 2011, the development of the initial phase of the website was substantially completed. As such, the Company began amortizing the website cost over the estimated useful life of 3 years. As at December 31, 2011, the Company incurred amortization cost amounting to $1,994 and the net cost of the web development asset of $6,981 is reflected on the balance sheet.

          As of December 31, 2011        
    Opening balance     Addition     Amortization     Ending balance  
Website development costs $  8,325   $  650   $  1,994   $  6,981  

          As of December 31, 2010        
    Opening balance     Addition     Amortization     Ending balance  
Website development costs $  -   $  8,325   $  -   $  8,325  

 

Note 4 – Website Development Costs

During the 201 fiscal year, the Company incurred and capitalized $8,325 related to its ongoing website development. Upon the completion of the website, the capitalized website costs will be amortized over its estimated useful life of 3 years. As at December 31, 2010, the website has not yet been completed.

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