Attached files
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EX-32 - Target Acquisitions I, Inc. | v166693_ex32.htm |
EX-31 - Target Acquisitions I, Inc. | v166693_ex31.htm |
U.S.
SECURITIES AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
10-Q
x QUARTERLY REPORT UNDER
SECTION 13 OR 15(d) OF THE
SECURITIES
EXCHANGE ACT OF 1934
For the
quarterly period ended September 30, 2009
o TRANSITION REPORT UNDER
SECTION 13 OR 15(d) OF THE
SECURITIES
EXCHANGE ACT OF 1934
For the
transition period from to
Commission
file number 000-53328
Target Acquisitions I,
Inc.
(Exact
name of small business issuer as specified in its charter)
Delaware
(State or
other jurisdiction of incorporation or organization)
26-2895640
(I.R.S.
Employer Identification Number)
122 Ocean Park Blvd., #307,
Santa Monica, CA 90405
(Address
of Principal Offices)
(310)
396-1691
(Issuer’s
Telephone Number)
No
change
(Former
name, former address and former fiscal year, if changed since last
report)
Check
whether the issuer (1) filed all reports required to be filed by Section 13 or
15(d) of the Exchange Act during the past 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has been subject
to such filing requirements for the past 90 days. Yes x No o.
Indicate
by check mark whether the registrant has submitted electronically and posted on
its corporate Website, if any, every interactive
Data File required to be submitted and posted pursuant to
Rule 405 of Regulation S-T during the preceding
12 months
(or for such shorter period that the registrant was
required to submit and post such files). o Yes No o
Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer or a smaller reporting company. See
the definitions of “large accelerated filer,” “accelerated filer” and “smaller
reporting company” in Rule 12b-2 of the Exchange Act.
Large
Accelerated Filer
o
|
Accelerated
Filer o
|
Non-Accelerated
Filer
o (Do
not check if a
smaller
reporting
company)
|
Smaller
Reporting Company
þ
|
Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act). Yes x No o.
APPLICABLE
ONLY TO CORPORATE ISSUERS
State the
number of shares outstanding of each of the issuer’s classes of common equity,
as of the latest practicable date: 5,000,000 shares of common stock, par value
$.001 per share, outstanding as of November 10, 2009.
Transitional Small Business Disclosure
Format (Check one): Yes o No x
TARGET
ACQUISITIONS I, INC.
-
INDEX -
PART I – FINANCIAL
INFORMATION:
|
||
Item
1.
|
Financial
Statements (unaudited):
|
|
Balance
Sheets as of September 30, 2009 and December 31, 2008
|
F-1
|
|
Statements
of Operations for the three and nine month periods ended September 30,
2009 and for the Cumulative Period from Inception (June 27, 2008) to
September 30, 2009
|
F-2
|
|
Statements
of Cash Flows for the nine month period ended September 30, 2009 and for
the Cumulative Period from Inception (June 27, 2008) to September 30,
2009
|
F-3
|
|
Notes to Financial
Statements
|
F-4
|
|
Item 2.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
1
|
Item
3.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
3
|
Item 4A(T). Controls and
Procedures
|
3
|
|
PART II – OTHER
INFORMATION:
|
4
|
|
|
||
Item
1.
|
Legal
Proceedings
|
4
|
Item
2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
4
|
Item
3.
|
Defaults
Upon Senior Securities
|
4
|
Item
4.
|
Submission
of Matters to a Vote of Security Holders
|
5
|
Item
5.
|
Other
Information
|
5
|
Item 6.
|
Exhibits
|
5
|
Signatures
|
5
|
TARGET
ACQUISITIONS I, INC.
(A
Development Stage Company)
BALANCE
SHEETS
(Unaudited)
September
30,
|
December
31,
|
|||||||
2009
|
2008
|
|||||||
(unaudited)
|
(audited)
|
|||||||
ASSETS
|
||||||||
CURRENT
ASSETS:
|
||||||||
Cash
and cash equivalents
|
$ | - | $ | 275 | ||||
TOTAL
ASSETS
|
$ | - | $ | 275 | ||||
LIABILITIES
AND STOCKHOLDER’S EQUITY (DEFICIT)
|
||||||||
CURRENT
LIABILITIES
|
||||||||
Accounts
payable
|
$ | 6.366 | $ | 2,654 | ||||
TOTAL
LIABILITIES
|
6,366 | 2,654 | ||||||
STOCKHOLDER’S
EQUITY (DEFICIT):
|
||||||||
Preferred
stock, $.001 par value; 10,000,000 shares authorized; none issued and
outstanding
|
- | |||||||
Common
stock, $.001 par value; 100,000,000 shares authorized; 5,000,000 shares
issued and outstanding
|
5,000 | 5,000 | ||||||
Additional
paid-in capital
|
175 | 175 | ||||||
Deficit
accumulated during the development stage
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(11,541 | ) | (7,554 | ) | ||||
TOTAL
STOCKHOLDER’S EQUITY (DEFICIT)
|
(6,366 | ) | 2,379 | |||||
TOTAL
LIABILITIES AND STOCKHOLDER’S EQUITY (DEFICIT)
|
$ | - | $ | 275 |
See
notes to unaudited financial statements.
F-1
TARGET
ACQUISITIONS I, INC.
(A
Development Stage Company)
Statements
of Operations
(Unaudited)
Three Mos.
Ended
September
30,
2009
|
Three Mos.
Ended
September
30,
2008
|
Nine Mos.
Ended
September
30,
2009
|
June 27,
2008
(Inception)
through
September
30,
2009
|
|||||||||||||
Revenues
|
$ | - | $ | - | $ | - | $ | - | ||||||||
Operating
Expenses
|
||||||||||||||||
General
and administrative
|
1,177 | 2,986 | 3,987 | 11,541 | ||||||||||||
Net
Operating Expenses
|
1,177 | 2,986 | 3,987 | 11,541 | ||||||||||||
Net
Loss
|
$ | (1,177 | ) | $ | (2,986 | ) | $ | (3,987 | ) | $ | (11,541 | ) | ||||
Basic
and Diluted Net Loss per share
|
$ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | |||||||
Weighted
average number of common shares outstanding
|
5,000,000 | 5,000,000 | 5,000,000 |
Note: The
Company’s inception was June 27, 2008 and as a result there is no period 0f 2008
comparable to the nine
months ended September 30, 2009
See notes
to unaudited financial statements
F-2
TARGET
ACQUISITIONS I, INC.
(A
Development Stage Company)
STATEMENTS
OF CASH FLOWS
(unaudited)
For the
Nine
Months
ended
September
30, 2009
|
For the
Cumulative
Period from
Inception
(June 27,
2008)
through
September
30,
2009
|
|||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net
loss
|
$ | (3,987 | ) | $ | (11,541 | ) | ||
Changes
in:
|
||||||||
Accounts
payable
|
2,962 | 5,616 | ||||||
Net
cash used by operating activities
|
(1,025 | ) | (5,925 | ) | ||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Shareholder
advances
|
750 | 750 | ||||||
Proceeds
from the issuance of common stock
|
- | 5,000 | ||||||
Additional
paid-in capital, cash contribution
|
- | 175 | ||||||
Net
cash provided by financing activities
|
750 | 5,925 | ||||||
NET
DECREASE IN CASH AND CASH EQUIVALENTS
|
(275 | ) | - | |||||
Cash
and cash equivalents at beginning of period
|
275 | - | ||||||
CASH
AND CASH EQUIVALENTS AT END OF PERIOD
|
$ | - | $ | - | ||||
Supplemental
Disclosures of Cash Flow Information
|
||||||||
Non-cash
Financing Activities:
|
||||||||
None
|
Note: The
Company’s inception was June 27, 2008 and as a result there is no period 0f 2008
comparable to the nine
months ended September 30, 2009
See
notes to unaudited financial statements.
F-3
TARGET
ACQUISITIONS I, INC.
(A
Development Stage Company)
NOTES
TO FINANCIAL STATEMENTS
(Unaudited)
NOTE 1
|
-
|
ORGANIZATION
AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES:
|
(a)
|
Organization
and Business:
|
Target
Acquisitions I, Inc. (“the Company”) was incorporated in the state of Delaware
on June 27, 2008 for the purpose of raising capital that is intended to be used
in connection with its business plan which may include a possible merger,
acquisition or other business combination with an operating
business.
The
Company is currently in the development stage. All activities of the Company to
date relate to its organization, initial funding and share
issuances.
(b)
|
Basis
of Presentation:
|
The
accompanying Interim Financial Statements are unaudited and have been prepared
in accordance with accounting principles generally accepted for interim
financial statement presentation and in accordance with the instructions to
Regulations S-K. Accordingly, they do not include all of the
information and footnotes required by accounting principles generally accepted
in the United States for complete financial statement presentation. In the
opinion of management, all adjustments for a fair statement of the results and
operations and financial position for the interim periods presented have been
included. All such adjustments are of a normal recurring nature. The
financial information should be read in conjunction with the Financial
Statements and notes thereto included in the Company’s Form 10-K Annual Report
for the year ended December 31, 2008 and the Company’s Registration Statement on
Form 10. The September 30, 2009 consolidated financial statements presented
herein may not be indicative of the results of the Company for the year ending
December 31, 2009. This Quarterly Report on Form 10-Q should be read
in conjunction with the Form 10-K Annual Report which incorporates audited
financial statements for the period ended December 31, 2008 for the
Company.
|
(c)
|
Going
Concern:
|
The
accompanying financial statements have been prepared on a going concern basis,
which assumes the Company will realize its assets and discharge its liabilities
in the normal course of business. As reflected in the accompanying financial
statements, the Company has a deficit accumulated during the development stage
of $11,541, used cash from operations of $5,925 since its inception, and has a
working capital deficit of $6,366 at September 30, 2009. The Company’s ability
to continue as a going concern is dependent upon its ability to generate future
profitable operations and/or to obtain the necessary financing to meet its
obligations and repay its liabilities arising from normal business operations
when they come due. The Company’s ability to continue as a going concern is also
dependent on its ability to find a suitable target company and enter into a
possible reverse merger with such company. Management’s plan includes obtaining
additional funds by equity financing through a reverse merger transaction and/or
related party advances, however there is no assurance of additional funding
being available. These conditions raise substantial doubt about the Company’s
ability to continue as a going concern. The accompanying financial statements do
not include any adjustments that might arise as a result of this
uncertainty.
F-4
TARGET
ACQUISITIONS I, INC.
(A
Development Stage Company)
NOTES
TO FINANCIAL STATEMENTS
(Unaudited)
NOTE 1
|
-
|
ORGANIZATION
AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Continued):
|
(d)
|
Use
of Estimates:
|
The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the balance sheet and
reported amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates.
(e)
|
Cash
and Cash Equivalents:
|
For
purposes of the statement of cash flows, the Company considers highly liquid
financial instruments purchased with a maturity of three months or less to be
cash equivalents. There were no cash equivalents outstanding as of
September 30, 2009 and December 31, 2008, respectively.
(f)
|
Income
Taxes:
|
The
Company utilizes the liability method of accounting for income taxes. Under the
liability method deferred tax assets and liabilities are determined based on the
differences between financial reporting basis and the tax basis of the assets
and liabilities and are measured using enacted tax rates and laws that will be
in effect, when the differences are expected to reverse. An allowance against
deferred tax assets is recognized, when it is more likely than not, that such
tax benefits will not be realized.
(g)
|
Loss
per Common Share:
|
Basic
loss per share is calculated using the weighted-average number of common shares
outstanding during each reporting period. Diluted loss per share includes
potentially dilutive securities such as outstanding options and warrants, using
various methods such as the treasury stock or modified treasury stock method in
the determination of dilutive shares outstanding during each reporting period.
The Company does not have any potentially dilutive instruments for this
reporting period.
(h)
|
Fair
Value of Financial
Instruments:
|
The
carrying value of cash equivalents approximates fair value due to the short
period of time to maturity.
NOTE 2
|
-
|
CAPITAL
STOCK:
|
The total
number of shares of capital stock which the Company has authority to issue is
one hundred ten million (110,000,000). These shares are divided into two classes
with 100,000,000 shares designated as common stock at $.001 par value (the
“Common Stock”) and 10,000,000 shares designated as preferred stock at $.001 par
value (the “Preferred Stock”). The Preferred stock of the Company shall be
issued by the Board of Directors of the Company in one or more classes or one or
more series within any class and such classes or series shall have such voting
powers, full or limited, or no voting powers, and such designations,
preferences,
limitations or restrictions as the Board of Directors of the Company may
determine, from time to time.
F-5
TARGET
ACQUISITIONS I, INC.
(A
Development Stage Company)
NOTES
TO FINANCIAL STATEMENTS
(Unaudited)
NOTE 2
|
-
|
CAPITAL
STOCK (Continued):
|
Holders
of shares of Common stock shall be entitled to cast one vote for each share held
at all stockholders’ meetings for all purposes, including the election of
directors. The Common Stock does not have cumulative voting rights.
No holder
of shares of stock of any class shall be entitled as a matter of right to
subscribe for or purchase or receive any part of any new or additional issue of
shares of stock of any class, or of securities convertible into shares of stock
of any class, whether now hereafter authorized or whether issued for money, for
consideration other than money, or by way of dividend.
On June
27, 2008, the Company issued 5,000,000 shares of Common stock to four
shareholders at a purchase price of $.001 per share, for an aggregate purchase
price of $5,000.
NOTE 3
|
-
|
RECENT
ACCOUNTING PRONOUNCEMENTS:
|
Recently
issued accounting pronouncements
FASB
Accounting Standards Codification
(Accounting
Standards Update (“ASU”) 2009-01)
In
June 2009, FASB approved the FASB Accounting Standards Codification (“the
Codification”) as the single source of authoritative nongovernmental GAAP. All
existing accounting standard documents, such as FASB, American Institute of
Certified Public Accountants, Emerging Issues Task Force and other related
literature, excluding guidance from the SEC, have been superseded by the
Codification. All other non-grandfathered, non-SEC accounting literature not
included in the Codification has become nonauthoritative. The Codification did
not change GAAP, but instead introduced a new structure that combines all
authoritative standards into a comprehensive, topically organized online
database. The Codification is effective for interim or annual periods ending
after September 15, 2009, and impacts the Company’s financial statements as
all future references to authoritative accounting literature will be referenced
in accordance with the Codification. There have been no changes to the content
of the Company’s financial statements or disclosures as a result of implementing
the Codification during the quarter ended October 6, 2009.
As a
result of the Company’s implementation of the Codification during the quarter
ended September 30, 2009, previous references to new accounting standards and
literature are no longer applicable. In the current quarter financial
statements, the Company will provide reference to both new and old guidance to
assist in understanding the impacts of recently adopted accounting literature,
particularly for guidance adopted since the beginning of the current fiscal year
but prior to the Codification.
F-6
TARGET
ACQUISITIONS I, INC.
(A
Development Stage Company)
NOTES
TO FINANCIAL STATEMENTS
(Unaudited)
NOTE 3
|
-
|
RECENT
ACCOUNTING PRONOUNCEMENTS
(Continued):
|
Subsequent
Events
(Included
in ASC 855 “Subsequent Events”, previously SFAS No. 165 “Subsequent
Events”)
ASC 855
established general standards of accounting for and disclosure of events that
occur after the balance sheet date, but before the financial statements are
issued or available to be issued (“subsequent events”). An entity is required to
disclose the date through which subsequent events have been evaluated and the
basis for that date. For public entities, this is the date the financial
statements are issued. ASC 855 does not apply to subsequent events or
transactions that are within the scope of other GAAP and did not result in
significant changes in the subsequent events reported by the Company. ASC 855
became effective for interim or annual periods ending after June 15, 2009
and did not impact the Company’s consolidated financial statements. The Company
evaluated for subsequent events through November 16, 2009, the issuance
date of the Company’s financial statements.
F-7
Item
2. Management’s Discussion and Analysis of Financial Condition and Results of
Operations.
Target
Acquisitions I, Inc. (“we”, “our”, “us” or the “Company”) was organized as a
vehicle to investigate and, if such investigation warrants, acquire a target
company or business seeking the perceived advantages of being a publicly held
corporation. Our principal business objective for the next 12 months and beyond
such time will be to achieve long-term growth potential through a combination
with a business rather than immediate, short-term earnings. The Company will not
restrict our potential candidate target companies to any specific business,
industry or geographical location and, thus, may acquire any type of
business.
Results of
Operations
For the
quarter and nine-month period ending September 30, 2009, the Company had no
activities that produced revenues from operations.
For the
quarter ending September 30, 2009, the Company recorded general and
administrative expenses of $1,177 a net loss of $1,177.
For the
nine-month period ending September 30, 2009, the Company recorded general and
administrative expenses of $3,987 a net loss of $3,987.
For the
period from inception (June 27, 2008) through September 30, 2009, the Company
had no activities that produced revenues from operations and had a net loss of
$11,541 due to legal, accounting, audit and other professional service fees
incurred in relation to the formation of the Company, the filing of the
Company’s Registration Statement on Form 10 filed in August 2008 and the
Company’s periodic reports filed with the U. S. Securities and Exchange
Commission.
Liquidity
and Capital Resources
As of
September 30, 2009, the Company had no assets and liabilities of
$6,366.
The
following is a summary of the Company's cash flows from operating, investing,
and financing activities:
For the
Nine-month Period ended September 30, 2009
Operating
activities
|
$ | (1,025 | ) | |
Investing
activities
|
- | |||
Financing
activities
|
$ | 750 | ||
Net
effect on cash
|
$ | (275 | ) |
For the
Cumulative Period from Inception (June 27, 2008) through September 30,
2009
Operating
activities
|
$ | (5,925 | ) | |
Investing
activities
|
- | |||
Financing
activities
|
$ | 5,925 | ||
Net
effect on cash
|
$ | - |
1
The
Company has nominal assets and has generated no revenues since inception. The
Company is also dependent upon the receipt of capital investment or other
financing to fund its ongoing operations and to execute its business plan of
seeking a combination with a private operating company. If continued funding and
capital resources are unavailable at reasonable terms, the Company may not be
able to implement its plan of operations.
Plan
of Operations
The
Company currently does not engage in any business activities that provide cash
flow. The costs of investigating and analyzing business combinations for the
next 12 months and beyond such time will be paid with money in our
treasury.
During
the next twelve months we anticipate incurring costs related to:
(i)
|
filing
of reports under the Securities Exchange Act of 1934, as amended (the
“Exchange Act”), and
|
(ii)
|
consummating an
acquisition.
|
We
believe we will be able to meet these costs through use of funds in our
treasury, through deferral of fees by certain service providers and additional
amounts, as necessary, to be loaned to or invested in us by our sole
stockholder, management or other investors.
The
Company may consider a business which has recently commenced operations, is a
developing company in need of additional funds for expansion into new products
or markets, is seeking to develop a new product or service, or is an established
business which may be experiencing financial or operating difficulties and is in
need of additional capital. In the alternative, a business combination may
involve the acquisition of, or merger with, a company which does not need
substantial additional capital, but which desires to establish a public trading
market for its shares, while avoiding, among other things, the time delays,
significant expense, and loss of voting control which may occur in a public
offering.
Since our
Registration Statement on Form 10 became effective, our sole officer and sole
director have had limited contact or discussions with representatives of other
entities regarding a business combination with us. Any target business that is
selected may be a financially unstable company or an entity in its early stages
of development or growth, including entities without established records of
sales or earnings. In that event, we will be subject to numerous risks inherent
in the business and operations of financially unstable and early stage or
potential emerging growth companies. In addition, we may effect a business
combination with an entity in an industry characterized by a high level of risk,
and, although our management will endeavor to evaluate the risks inherent in a
particular target business, there can be no assurance that we will properly
ascertain or assess all significant risks.
The
Company anticipates that the selection of a business combination will be complex
and extremely risky. Because of general economic conditions, rapid technological
advances being made in some industries and shortages of available capital, our
management believes that there are numerous firms seeking even the limited
additional capital which we will have and/or the perceived benefits of becoming
a publicly traded corporation. Such perceived benefits of becoming a publicly
traded corporation include, among other things, facilitating or improving the
terms on which additional equity financing may be obtained, providing liquidity
for the principals of and investors in a business, creating a means for
providing incentive stock options or similar benefits to key employees, and
offering greater flexibility in structuring acquisitions, joint ventures and the
like through the issuance of stock. Potentially available business combinations
may occur in many different industries and at various stages of development, all
of which will make the task of comparative investigation and analysis of such
business opportunities extremely difficult and complex.
2
Off-Balance
Sheet Arrangements
The
Company does not have any off-balance sheet arrangements that have or are
reasonably likely to have a current or future effect on the Company’s financial
condition, changes in financial condition, revenues or expenses, results of
operations, liquidity, capital expenditures or capital resources that are
material to investors.
ITEM
3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK
As a
“smaller reporting company” as defined by Item 10 of Regulation S-K, the Company
is not required to provide information required by this Item.
Item 4A(T). CONTROLS AND
PROCEDURES
Our
management is responsible for establishing and maintaining adequate internal
control over financial reporting. Internal control over financial
reporting is defined in Rule 13a-15(f) or 15d-15(f) promulgated under the
Securities Exchange Act of 1934 as a process designed by, or under the
supervision of, the company’s principal executive and principal financial
officers and effected by the company’s board of directors, management and other
personnel, to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external
purposes in accordance with accounting principles generally accepted in the
United States of America and includes those policies and procedures
that:
|
·
|
Pertain
to the maintenance of records that in reasonable detail accurately and
fairly reflect the transactions and dispositions of the assets of the
company;
|
|
·
|
Provide
reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with accounting
principles generally accepted in the United States of America and that
receipts and expenditures of the company are being made only in accordance
with authorizations of management and directors of the company; and
Provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use or disposition of the company’s assets that
could have a material effect on the financial
statements.
|
Because
of its inherent limitations, internal control over financial reporting may not
prevent or detect misstatements. Projections of any evaluation of
effectiveness to future periods are subject to the risk that controls may become
inadequate because of changes in conditions, or that the degree of compliance
with the policies or procedures may deteriorate. All internal control
systems, no matter how well designed, have inherent
limitations. Therefore, even those systems determined to be effective
can provide only reasonable assurance with respect to financial statement
preparation and presentation. Because of the inherent limitations of
internal control, there is a risk that material misstatements may not be
prevented or detected on a timely basis by internal control over financial
reporting. However, these inherent limitations are known features of the
financial reporting process. Therefore, it is possible to design into
the process safeguards to reduce, though not eliminate, this risk.
As of
September 30, 2009, management assessed the effectiveness of our internal
control over financial reporting based on the criteria for effective internal
control over financial reporting established in Internal Control—Integrated
Framework issued by the Committee of Sponsoring Organizations of the Treadway
Commission ("COSO") and SEC guidance on conducting such
assessments. Based on that evaluation, they concluded that, during
the period covered by this report, such internal controls and procedures may not
be effective to detect the inappropriate application of US GAAP rules as more
fully described below. This was due to deficiencies that existed in
the design or operation of our internal controls over financial reporting that
adversely affected our internal controls and that may be considered to be
material weaknesses.
3
The
matters involving internal controls and procedures that our management
considered to be material weaknesses under the standards of the Public Company
Accounting Oversight Board were: (1) lack of a functioning audit committee due
to a lack of a majority of independent members and a lack of a majority of
outside directors on our board of directors, resulting in ineffective oversight
in the establishment and monitoring of required internal controls and procedures
and (2) inadequate segregation of duties consistent with control
objectives. The aforementioned material weaknesses were identified by
our Chief Executive Officer in connection with the review of our financial
statements as of September 30, 2009.
Management
believes that the material weakness set forth in items (1) and (2) above did not
have an effect on our financial results. However, management believes
that the lack of a functioning audit committee and the lack of a majority of
outside directors on our board of directors results in ineffective oversight in
the establishment and monitoring of required internal controls and procedures,
which could result in a material misstatement in our financial statements in
future periods.
Management’s Remediation
Initiatives
In an
effort to remediate the identified material weaknesses and other deficiencies
and enhance our internal controls, we have initiated, or plan to initiate, the
following series of measures:
When
warranted by our cash flow and operations, we will create a position to
segregate duties consistent with control objectives and will increase our
personnel resources and technical accounting expertise within the accounting
function when funds are available to us. And, at such time, we plan
to appoint one or more outside directors to our board of directors who shall be
appointed to an audit committee resulting in a fully functioning audit committee
who will undertake the oversight in the establishment and monitoring of required
internal controls and procedures such as reviewing and approving estimates and
assumptions made by management when funds are available to us.
Management
believes that the appointment of one or more outside directors, who shall be
appointed to a fully functioning audit committee, will remedy the lack of a
functioning audit committee and a lack of a majority of outside directors on our
Board.
Due to
uncertainties related to the future operations of the Company, we cannot predict
a date when these initiatives will be at least partially, if not fully,
implemented. We plan to again review our internal controls by
December 31, 2010.
Changes in Internal
Control Over Financial Reporting
There
were no changes (including corrective actions with regard to significant
deficiencies or material weaknesses) in our internal controls over financial
reporting that occurred during the third quarter of fiscal 2009 that has
materially affected, or is reasonably likely to materially affect, our internal
control over financial reporting.
PART II — OTHER
INFORMATION
Item
1. Legal Proceedings.
To the
best knowledge of the sole officer and sole director, the Company is not a party
to any legal proceeding or litigation.
Item 2. Unregistered Sales of Equity
Securities and Use of Proceeds. None.
Item 3. Defaults Upon Senior
Securities. None.
4
Item 4. Submission of Matters to a
Vote of Security Holders. None.
Item 5. Other Information.
None.
Item
6. Exhibits.
Exhibit
No.
|
Description
|
|
31
|
Certification
of the Company’s Principal Executive Officer and Principal Financial
Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, with
respect to the registrant’s Quarterly Report on Form 10-Q for the quarter
ended September 30, 2009.
|
|
32
|
Certification
of the Company’s Principal Executive Officer and Principal
Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant
to Section 906 of the Sarbanes Oxley Act of
2002.
|
SIGNATURES
In
accordance with the requirements of the Exchange Act, the registrant caused this
report to be signed on its behalf by the undersigned, thereunto duly
authorized.
Dated:
November 16, 2009
|
||
TARGET
ACQUISITIONS I, INC.
|
||
By:
|
/s/ Geoffrey
Alison
|
|
Geoffrey
Alison
|
||
President
|
5
EXHIBIT
INDEX
Exhibit
No.
|
Description
|
|
31
|
Certification
of Principal Executive Officer and Principal Financial Officer filed
pursuant to Section 302 of the Sarbanes-Oxley Act of
2002.
|
|
32
|
Certification
of Principal Executive Officer and Principal Financial Officer furnished
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002.
|
6