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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)
x Quarterly Report Pursuant To Section 13 Or 15(d) Of The Securities Exchange Act Of 1934

For the quarterly period ended September 30,  2009

¨ Transition Report Under Section 13 Or 15(d) Of The Securities Exchange Act Of 1934

For the transition period ________ to ________

                                                  COMMISSION FILE NUMBER 000- 52766

EMPIRICAL VENTURES, INC.
(Exact name of small business issuer as specified in its charter)

NEVADA

27-0143340

(State or other jurisdiction of incorporation or

(IRS Employer Identification No.)

organization)

  

  

  

355 Galbraith Close

Edmonton Alberta

(Address of principal executive offices)

  

  

(780)

Issuer's telephone number

NOT APPLICABLE
(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 twelve months (or for such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes x No ¨

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

State the number of shares outstanding of each of the issuer's classes of common equity, as of the
latest practicable date: As of September 30, 2009, the Issuer had 10,086,662 Shares of Common
Stock outstanding.

Transitional Small Business Disclosure Format (check one): Yes ¨ No x









PART I - FINANCIAL INFORMATION

ITEM 1.          FINANCIAL STATEMENTS.


EMPIRICAL VENTURES, INC.

  (A Development Stage Company)

BALANCE SHEETS


 

 

 

 

 

 

 

September 30,

 

       June 30,                       

 

 

 

 

 

 

 

2009

 

2009

 

 

 

 

 

 

 

(Unaudited)

 

Audited

ASSETS

 

 

Current Assets

 

 

 

 

 

 

 

 

Cash

 

 

 

 

 $                      15

 

 $                      33

 

 

 

 

 

 

 

 

 

 

 

 

Total Current Assets

 

 

 

                         15

 

                         33

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 

 

 

 

 $                      15

 

 $                      33

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

Current Liabilities

 

 

 

 

 

 

 

 

Bank overdraft

 

 

 

 

 $                         -

 

 $                         -

 

Accounts payable and accrued expenses

 

 

15,000

 

12,500

 

Related party loan payable

 

 

 

36,529

 

36,529

 

 

 

 

 

 

 

 

 

 

 

 

Total Current Liabilities

 

 

 

                     51,529

 

                  49,029

 Commitments and Contingencies

 

 

 

 

 

Stockholders' Deficit

 

 

 

 

 

 

 

Preferred stock, $.001 par value 10,000,000 shares authorized

 

 

 

no shares issued and outstanding

 

 

                          -   

 

                          -   

 

Common stock, $.001 par value 50,000,000 shares authorized

 

 

 

 

10,086,662 shares issued and outstanding

 

 

10,087

 

                  10,087

 

Additional paid-in capital

 

 

 

                  88,213

 

                  88,213

 

Deficit accumulated during the development stage

 

 

(149,796)

 

(147,296)

 

 

 

 

 

 

 

 

 

 

 

 

Total Stockholders' Deficit

 

 

                 (51,514)

 

                 (48,996)

 

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities and Stockholders' Deficit

 

 

 $                      15

 

 $                      33

 

 

 

 

 

 

 

 

 

 


                                                                      See accompanying notes

                                                                                      F-1

EMPIRICAL VENTURES, INC.

  (A Development Stage Company)

 

 

 

 

 

 

 

 

 

 

 

STATEMENT OF OPERATIONS

 

 

 

 


 

 

 

 

For the Three

For the Three

 For the Period

 

 

 

 

Months Ended

Months Ended

 from April 14,

 

 

 

 

September 30,, 2009

September 30,, 2008

 2004 (inception)

 

 

 

 

 

 

 to September 30,, 2009

 

 

 

 

 

 

 

REVENUES

 

 $                         -   

 $                         -   

 $                         -   

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

General and administrative expenses

2,518

2,519

                  149,796

 

Impairment of intangible asset

                            -   

                            -   

                      6,500

 

 

 

 

 

 

 

 

 

Total operating expenses

                      2,518

                      2,519

                  156,296

 

 

 

 

 

 

 

Net loss before provision for income taxes

                     (2,518)

                     (2,519)

                 (156,296)

 

 

 

 

 

 

 

Provision for income taxes

                            -   

                            -   

                            -   

 

 

 

 

 

 

 

Net loss

 

 

                     (2,518)

                     (2,519)

                 (156,296)

 

 

 

 

 

 

 

Weighted average common shares outstanding -

 

 

 

 

Basic and diluted

 

             10,086,662

               9,586,662

               9,835,977

 

 

 

 

 

 

 

Net loss per share – basic and diluted

 $                    (0.00)

 $                    (0.00)

 $                    (0.01)

 

 

 

 

 

 

 


                                                                                 

See accompanying notes



                                                                                               F-2









EMPIRICAL VENTURES, INC.

  (A Development Stage Company)

STATEMENT OF CASH FLOWS



 

 

 

 

 

 

Three Months

Nine Months

 For the Period

 

 

 

 

 

 

Ended

Ended

 from April 14,

 

 

 

 

 

 

 September 30, 2009

September 30,, 2008

 2004 (inception)

 

 

 

 

 

 

 

 

 to September 30, 2009

Cash Flows From Operating Activities

 

   

 

 

 

Net loss

 

 

 

 $                  (2,518)

 $                  (2,519)

                 (149,796)

 

 

Impairment of intangible asset

 

                              -

                            -   

                      6,500

 

Changes in current assets and current liabilities:

 

 

 

 

 

Accounts payable and accrued expenses

 

                     (2,518)

                     (2,519)

                    15,000

 

 

Technology purchase payable

 

                            -   

                            -   

                            -   

 

 

 

 

 

 

 

 

 

Net Cash Provided by (Used In) Operating Activities

                     (2,518)

                          (19)

                 (128,296)

 

 

 

 

 

 

 

 

 

Cash Flows From Investing Activities

 

 

 

 

 

Payment for technology rights

 

 

                            -   

                            -   

                   (15,000)

 

Bank overdraft

 

 

 

 

                           19

                            -   

 

 

 

 

 

 

 

 

 

Net Cash Used In Investing Activities

 

 

                            -   

                   (15,000)

 

 

 

 

 

 

 

 

 

Cash Flows From Financing Activities:

 

 

 

 

 

Proceeds from related party loans

 

                            -   

                            -   

                    36,529

 

Proceeds from the issuance of common stock

 

                            -   

                            -   

                    96,800

 

 

 

 

 

 

 

 

 

Net Cash Provided By Financing Activities

 

                            -   

                            -   

                  133,329

 

 

 

 

 

 

 

 

 

Increase (Decrease) in Cash and Cash Equivalents

 

                           18

                          (19)

                           15

 

 

 

 

 

 

 

 

 

Cash and Cash Equivalents, Beginning of Period

 

                           33

                            -   

                            -   

 

 

 

 

 

 

 

 

 

Cash and Cash Equivalents, End of Period

 

 $                        15

 $                         -   

 $                        15

Supplemental Disclosure of Cash Flow Information:

 

 

 

 

Cash paid for interest

 

 

 $                         -   

 $                         -   

 $                         -   

 

Cash paid for income taxes

 

 

 $                         -   

 $                         -   

 $                         -   


                                                                            See accompanying notes


                                                                                         F-3



EMPIRICAL VENTURES, INC.

(A Development Stage Company)

NOTES TO THE FINANCIAL STATEMENTS

For the Three Months ended September 30, 2009

(Unaudited)


NOTE 1 - NATURE OF OPERATIONS


Organization  


Empirical Ventures, Inc. (the “Company”) was incorporated in Nevada on April 14, 2004.  The Company a development stage company. The Company’s plan is to commercialize an enterprise and related software applications. The Company is in the early stages of the software application and infrastructure build out, and has not as yet engaged in revenue producing activities.  The Company will provide products and services to enable the travel and tourism industries to more effectively manage all travel and tourism related services.  The Company’s objective is to complete development and pre-marketing activities and to actively market and support a commercial product and to earn revenues from the travel and tourism industries or other related organizations worldwide via the Internet from the Company’s website.


Going Concern


The accompanying financial statements have been prepared assuming the Company will continue as a going concern.  As shown in the accompanying financial statements, the Company has no sales and has incurred a net loss of $2,518 for the period ended September 30, 2009; and a net accumulated loss of $ 149,796 for the period from April 14, 2004 (inception) to September 30, 2009. The future of the Company is dependent upon its ability to obtain financing and upon future profitable operations from the development of an online office service.  Management has plans to seek additional capital through a private placement and public offering of its common stock. These factors raise substantial doubt that the Company will be able to continue as a going concern.


Management's plans for the continuation of the Company as a going concern include financing the Company's operations through issuance of its common stock. If the Company is unable to complete its financing requirements or achieve revenue as projected, it will then modify its expenditures and plan of operations to coincide with the actual financing completed and actual operating revenues. There are no assurances, however, with respect to the future success of these plans.  Unless otherwise indicated, amounts provided in these notes to the financial statements pertain to continuing operations. The Company is not currently earning any revenues.




                                                                                F-4








EMPIRICAL VENTURES, INC.

(A Development Stage Company)

NOTES TO THE FINANCIAL STATEMENTS

For the Three Months ended September 30, 2009

(Unaudited)

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES


Basis of Presentation


These financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States and are expressed in United States (US) dollars. The Company has not produced any revenue from its principal business and is an exploration stage company as defined by the Statement of Financial Accounting Standards (SFAS) No. 7. “Accounting and Reporting by Development Stage Enterprises”.


Principles of Consolidation


The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary Empirical Ventures Ltd., (EVL), a Company incorporated under the Company Act of British Columbia on May 13, 2004.  All inter-company transactions have been eliminated.


Use of Estimates


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


Cash and Cash Equivalents


Cash and cash equivalents consist of cash and highly liquid investments with original maturities of three months or less.


Impaired Asset Policy


The Company periodically reviews its long-lived assets when applicable to determine if any events or changes in circumstances have transpired which indicate that the carrying value of its assets may not be recoverable, pursuant to guidance established in SFAS 144, "Accounting for the Impairment or Disposal of Long-lived Assets". The Company determines impairment by comparing the undiscounted future cash flows estimated to be generated by its assets to their respective carrying amounts. If impairment is deemed to exist, the assets will be written down to fair value. During the period ended September 30, 2009, the Company determined that the carrying amount of the License purchased were in excess of its estimated fair value and recognized an impairment loss on intangible asset costs of $0.




                                                                     F-5


EMPIRICAL VENTURES, INC.

(A Development Stage Company)

NOTES TO THE FINANCIAL STATEMENTS

For the Three Months ended September 30, 2009

(Unaudited)

Start-up Expenses


The Company has adopted Statement of Position No. 98-5 ("SOP 98-5"), "Reporting the Costs of Start-up Activities," which requires that costs associated with start-up activities be expensed as incurred. Accordingly, start-up costs associated with the Company's formation have been included in the Company's general and administrative expenses for the period from inception on April 14, 2004 to September 30, 2009.


Foreign Currency Translation


The Company’s functional currency is the Canadian dollar as substantially all of the Company’s operations are in Canada.  The Company used the United States dollar as its reporting currency for consistency with registrants of the Securities and Exchange Commission and in accordance with the SFAS No. 53 “Foreign Currency Translation”.


Assets and liabilities that are denominated in a foreign currency are translated at the exchange rate in effect at the year end and capital accounts are translated at historical rates.  Income statement accounts are translated at the average rates of exchange prevailing during the period.  Translation adjustments from the use of different exchange rates from period to period are included in the Comprehensive Income statement account in Consolidated Stockholder’s Equity, if applicable. There were no translation adjustments as of September 30, 2009.


Transactions undertaken in currencies other than the functional currency of the entity are translated using the exchange rate in effect as of the transaction date.  If applicable, exchange gains and losses are included in other items on the Consolidated Statements of Operations. There were no exchange gains or losses as of September 30, 2009.


Loss per Share


The Company computed basic and diluted loss per share amounts for September 30, 2009 pursuant to the SFAS No. 128, “Earnings per Share.”  There are no potentially dilutive shares outstanding and, accordingly, dilutive per share amounts have not been presented in the accompanying statements of operations.


Fair Value of Financial Instruments


SFAS No. 107, “Disclosures about Fair Value of Financial Instruments,” requires disclosures of information regarding the fair value of certain financial instruments for which it is practicable to estimate the value.  For purpose of this disclosure, the fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between wil willing parties, other than in a forced sale of liquidation.


                                                                F-6


EMPIRICAL VENTURES, INC.

(A Development Stage Company)

NOTES TO THE FINANCIAL STATEMENTS

For the Three ended September 30, 2009

(Unaudited)


The company accounts for certain assets and liabilities at fair value. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market. We categorize each of our fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety. These levels are:                        

Level 1—inputs are based upon unadjusted quoted prices for identical instruments traded in active markets. Our Level 1 non-derivative investments primarily include domestic and international equities, U.S. treasuries, exchange-traded mutual funds, and agency securities. Our Level 1 derivative assets and liabilities include those traded on exchanges.

Level 2—inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques (e.g. the Black-Scholes model) for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs including interest rate curves, foreign exchange rates, and forward and spot prices for currencies and commodities. Our Level 2 non-derivative investments consist primarily of corporate notes and bonds, foreign government bonds, mortgage-backed securities, commercial paper, and certain agency securities. Our Level 2 derivative assets and liabilities primarily include certain over-the-counter options, futures, and swap contracts.

Level 3—inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques, including option pricing models and discounted cash flow models. Our Level 3 non-derivative assets primarily comprise investments in certain corporate bonds. We value these corporate bonds using internally developed valuation models, inputs to which include interest rate curves, credit spreads, stock prices, and volatilities. Unobservable inputs used in these models are significant to the fair values of the investments. Our Level 3 derivative assets and liabilities primarily comprise derivatives for foreign equities. In certain cases, market-based observable inputs are not available and we use management judgment to develop assumptions to determine fair value for these derivatives.

Comprehensive Loss


SFAS No.130, “Reporting Comprehensive Income,” establishes standards for the reporting and display of comprehensive loss and its components in the financial statements.  As of September 30, 2009 the Company has no items that represent comprehensive loss and therefore, has not included a schedule of comprehensive loss in financial statements.  



                                                                              F-7

EMPIRICAL VENTURES, INC.

(A Development Stage Company)

NOTES TO THE FINANCIAL STATEMENTS

For the Three ended September 30, 2009

(Unaudited)

Income Taxes


Income taxes are recognized in accordance with SFAS 109, "Accounting for Income Taxes", whereby deferred income tax liabilities or assets at the end of each period are determined using the tax rate expected to be in effect when the taxes are actually paid or recovered. A valuation allowance is recognized on deferred tax assets when it is more likely than not that some or all of these deferred tax assets will not be realized.


Recent Accounting Pronouncements


Recent accounting pronouncements that the Company has adopted or will be required to adopt in the future are summarized below.



Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles


In June 2009, the Financial Accounting Standards Board issued Statement “FASB” issued Statement No. 168, “The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles” (“SFAS No. 168”).  SFAS No. 168 will become the single source of authoritative nongovernmental U.S. generally accepted accounting principles (“GAAP”), superseding existing FASB, American Institute of Certified Public Accountants (“AICPA”), Emerging Issues Task Force (“EITF”), and related accounting literature.  SFAS No. 168 reorganizes the thousands of GAAP pronouncements into roughly 90 accounting topics and displays them using a consistent structure.  Also included is relevant Securities and Exchange Commission guidance organized using the same topical structure in separate sections.  SFAS No. 168 will be effective for financial statements issued for reporting periods that end after September 15, 2009.  This statement had an impact on the Company’s financial statements since all references to authoritative accounting literature have been referenced in accordance with SFAS No. 168.


Subsequent Events


In May 2009, the Financial Accounting Standards Board (FASB) issued SFAS No. 165, “Subsequent Events” (“SFAS No. 165”) This Statement establishes general standards of accounting for and disclosures of events that occur after the balance sheet date but before financial statements are issued or are available to be issued.  It requires the disclosure of the date through which an entity has evaluated subsequent events and the basis for that date and is effective for interim and annual periods ending after June 15, 2009. The Company has adopted SFAS No. 165 and it did not have a material effect on its consolidated financial statements.


                                                                              F-8

EMPIRICAL VENTURES, INC.

(A Development Stage Company)

NOTES TO THE FINANCIAL STATEMENTS

For the Three ended September 30, 2009

(Unaudited)

Interim Disclosure about Fair Value of Financial Instruments

In April 2009, the FASB issued FASB Staff Position “FSP” No. SFAS 107-1 and Accounting Principles Board (APB) 28-1, “Interim Disclosures about Fair Value of Financial Instruments”.  This FSP amends SFAS No. 107 to require disclosures about fair values of financial instruments for interim reporting periods as well as in annual financial statements.  The FSP also amends Accounting Principles Board Opinions “APB Opinion” No. 28 to require those disclosures in summarized financial information at interim reporting periods. This FSP becomes effective for interim reporting periods ending after June15, 2009, with early adoption permitted

for periods ending after March 15, 2009.  The Company has adopted “FSP” No. SFAS 107-1 and APB 28-1 and it did not have a material effect on its consolidated financial statements.


NOTE 3 – TECHNOLOGY PURCHASE AGREEMENT PAYABLE


By an agreement dated May 18, 2004 the Company purchased software, known as “Darrwin” in consideration of payment to the Vendor of $5,000 and 100,000 common shares of the Company.  In addition, the Company will grant the vendor a 2% royalty on net sales of any product that uses any portion of the technology.  The agreement was subsequently amended and calls for the cancellation of the 100,000 common shares, the sum of $3,000 payable upon execution of the agreement, and a non-refundable sum of $10,000 paid on August 22, 2006.  As of September 30, 2009, there is no balance due.


NOTE 4 – STOCKHOLDERS’ EQUITY


On May 7, 2004 the Company issued 5,000,000 of its common shares to its founder for cash of $5,000.


On September 30, 2004, the Company issued 3,820,000 of its common shares for cash of $57,300.


On September 30, 2004, the Company issued 100,000 of its common stock in conjunction with a Technology Purchase Agreement.  Per the agreement, these shares were issued at $.015.  In accordance with an amendment to the original agreement, these shares were subsequently cancelled during the year ended September 30, 2005.


On July 23, 2004, the Company issued 766,662 of its common shares for cash of $11,000.


On December 30, 2008 the Company Issued a total of 500,000 common shares to two individuals at $0.05 per share the net proceeds received by the company was $25,000.  




                                                                              F-9

EMPIRICAL VENTURES, INC.

(A Development Stage Company)

NOTES TO THE FINANCIAL STATEMENTS

For the Three ended September 30, 2009

(Unaudited)


Common stockholders are entitled to 1 vote per common share held. There are no special rights or privileges afforded to common share holders.


NOTE 5– RELATED PARTY LOAN


Amounts due from or to related parties as of the date of each balance sheet are non interest bearing and there are no fixed terms of repayment.


On October 16, 2007 the company received $36,000 cash from a shareholder loan to continue its operations. The loan is funded by the President and non interest bearing.


On November 28, 2008 the company received $79 cash from a shareholder loan to continue its operations. The loan is funded by the President and non interest bearing.


On September 4, 2009 the company received $450 cash from a shareholder loan to continue its operations. The loan is funded by the President and non interest bearing.   


As of September 30, 2009, the Company had a total of $36,529 due to related parties.  None of the debt owed to related parties has been paid in part or in whole.



















                                                                              F-10

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.

Cautionary Statement Regarding Forward-Looking Statements

Certain statements contained in this Quarterly Report constitute "forward-looking statements". These statements, identified by words such as “plan”, "anticipate," "believe," "estimate," "should," "expect" and similar expressions, include our expectations and objectives regarding our future financial position, operating results and business strategy. These statements reflect the current views of management with respect to future events and are subject to risks, uncertainties and other factors that may cause our actual results, performance or achievements, or industry results, to be materially different from those described in the forward-looking statements. Such risks and uncertainties include those set forth under this caption "Management's Discussion and Analysis or Plan of Operation" and elsewhere in this Quarterly Report. We do not intend to update the forward-looking information to reflect actual results or changes in the factors affecting such forward-looking information. We advise you to carefully review the reports and documents we file from time to time with the Securities and Exchange Commission (the “SEC”).

As used in this Quarterly Report, the terms "we", "us", "our", “the Company” and “Empirical” mean Empirical Ventures, Inc. unless otherwise indicated. All dollar amounts in this Quarterly Report are in U.S. dollars unless otherwise stated.

Introduction

The following discussion and analysis summarizes our plan of operation for the next twelve months, our results of operations for the three-month period ended September 30, 2009. This discussion should be read in conjunction with the Management’s Discussion and Analysis or Plan of Operation.

Empirical Ventures, Inc. is a corporation formed under the laws of the State of Nevada on, April 14, 2004 whose principal executive offices are located in Edmonton Alberta, Canada. Our principal business is the development, marketing and of a software product called Darrwin.

About Our Business

We are a development stage company.  We have produced no revenues to date, and have not begun revenue producing activities.  We have had extremely limited operations and have relied on the sale of our securities and loans or capital infusions from our officers and directors to fund our operations to date. Our auditors have included in their report covering our financial statements for the period from incorporation to June 30, 2009, that there is substantial doubt about our ability to continue as a going concern. Our business plan is to further develop and commercialize the Darrwin Software Program. The Darrwin Software Program, which provides reservation and support services to the hospitality and tourism industries via the internet.  We intend to become an Application Service Provider, hosting the program on our servers, and providing access and data storage from our facilities to hotels and motels, as well as civic and regional tourism bureaus in the U.S. and Canada. At the time of the acquisition our program was operational on Windows NT and Windows 2000 and capable of a full array of tourism based services, including reservation services and lodges and ticketing local sporting events and activities To date we have spent a total of $12,840 on software development, $1950 website development and other related costs. We anticipate spending approximately $235,000 in the next five months for similar purposes that are contingent on the receipt of additional funding.


2

Plan of Operation

Financial Plan

As of September 30, 2009 we had a cash balance $15 and have earned no revenue from operations. Since our inception on April 14, 2004 to June 30, 2006 we have raised $96,800 in equity financing via distributions of unregistered securities to Canadian investors using exemptions provided under Regulation S and under British Columbia, Alberta and Saskatchewan Multilateral Instrument 45-103 Part 2 in Canada. During the next twelve months we will need additional funds and we are seeking these additional funds via, private placements or loans from our sole officer and director or current shareholders or potentially an initial public offering. No arrangements for additional funds have been completed.

Software Development Plan

We have commenced development work to upgrade the Darrwin software program. To date we accomplished the following tasks in preparation to migrate the existing code to the windows XP Professional format. To date we have: separated the original source code which was combined with other software and placed it on CD; organized and analyzed files and libraries flagging any corrupted files for repair or recovery of data; recovered or corrected any corrupted files and libraries; tested boot libraries and executable libraries in preparation for migration to XP Professional.


Originally 150 hours of programming time was budgeted for two computer scientists to complete the migration to Windows XP at a cost of $52,500. To date we have incurred approximately 214 hours of programming time by one programmer at a cost of $12,840 on the upgrade of the Darrwin software program. It is estimated we will need approximately 80 to 100 additional hours of development time at a cost of $60 per hour to complete our upgrade to Windows XP. We currently do not have enough cash on hand to complete this programming. We estimate that the migration to Widows XP will be completed by the end of 2008 and additional testing for system stability will carry on through the first quarter of 2008 and is contingent upon receipt of additional funding.


Additional upgrades include, upgrade Billing system; upgrade hotel booking system; upgrade hotel and event conformation system; upgrade airline interconnect; enhance system interface.  We will explore these additional upgrades upon completion of our upgrade to XP Professional and is contingent upon receipt of additional funding. Without additional funding, would lengthen the time frame needed to complete our business plan.

Website Development Plan

Our preliminary Marketing website was posted online in May 2007 with all components of the website functioning properly. The cost associated with developing the website was approximately $1,950. Our Marketing web site incorporates information about ourselves and our product. We will continue researching possible locations for a suitable test site for our software program.






3

Our test site will allow potential customers the ability to tryout the features and usability of our software prior to purchasing. We have identified the environment and method for developing the software test, and have identified companies or individuals that have the ability to complete such a software test site. We have estimated the cost of our test site to be $5,000, bringing our total cost of website development to $6,950. Currently, this site is not functioning, due to upgrades to the Darrwin software program.


Our website address on the Internet at www.darrwin-travel.com

Website Hosting Plan

Our website will be hosted by Network Solutions and will be charging us approximately $15 per month to host our website. Over the next twelve months the cost of hosting our website will be $180

Marketing Plan

We plan to undertake the development of a logo and other art

and to develop a look and feel for our brochures and web site and that we will incorporate into an advertising and marketing campaign.  We anticipate that initial marketing expenses, including travel for the first year will be approximately $50,000.  We anticipate that the marketing materials and campaign would be designed by an outside marketing consulting firm.

Accounting and Audit Plan

We intend to continue to have our outside consultant assist in the preparation of our quarterly and annual financial statements and have these financial statements reviewed or audited by our independent auditor. Our outside consultant charges us $1,000 to assist in the preparation of our quarterly financial statements and $2,500 to assist in the preparation of our annual financial statements. Our independent auditor charges us approximately $2,000 to review our quarterly financial statements and approximately $7,500 to audit our annual financial statements. In the next twelve months, we anticipate spending approximately $18,500 to pay for our accounting and audit requirements.

SEC Filing Plan

We have become a reporting company in 2007. Our SB-2 was declared effective on August 13, 2007. This means that we will file documents with the US Securities and Exchange Commission on a quarterly basis. We expect to incur filing costs of approximately $650 per quarter to support our quarterly and annual filings. In the next twelve months, we anticipate spending approximately $5,000 for legal costs to pay for three quarterly filings, one annual filing.

Currently, we do not have any financing arrangements in place and there is no assurance that we will be able to achieve sufficient financing required to proceed with our plan of operation. If we do not obtain the necessary financing, then our plan of operation will be scaled back according to the amount of funds available. Our inability to raise the necessary financing may restrict our ability to complete product development and market our product.





4


RESULTS OF OPERATIONS First Quarter Summary

                                                         3 Months Ended

                                                        September 30, 2009               2008

Revenue                                                        $Nil                          $NIl 

Expenses                                                      (2,518)                     (2,519)

Net Income (Loss)                                    $((2,518)                   $(2,519)

Revenues

We have not earned any revenue to date and we do not anticipate earning revenue until we have completed commercial development and upgrades of our Darrwin software program. We are presently in the development stage of our business and we can provide no assurance that we will be able to complete commercial development or successfully sell or license products incorporating our Darrwin software program, once development upgrades are complete.

Operating Costs and Expenses


Our expenses decreased by $1 during the three-month period ended September 30, 2009 over the same period ended September 30, 2008 This decrease is primarily the result of decreases in the amount of professional fees incurred by us.

In accordance with SEC Staff Accounting Bulletin Topics 1:B and 5:T, we are required to report all costs of conducting our business.. For the three months ended September 30, 2009, we recorded contributed executive services expenses of $.0 of services that were provided to us without charge.

Subject to our ability to obtain additional financing, of which there is no assurance, we expect that our product and business development activities will continue to increase over the course of the current fiscal year. As such, we expect that our operating expenses will also continue to increase at a significant rate.

We anticipate our operating expenses will increase as we undertake our plan of operations and continue to implement our business plan. The increase will be attributable to increased product and business development activities and the professional fees associated with complying with our reporting obligations under the Securities Exchange Act of 1934 (the “Exchange Act”).








5




LIQUIDITY AND CAPITAL RESOURCES

Working Capital                               At September 30, 2009          At June 30, 2009

 

Current  Assets                                            $ 15                                 $33

 

Current Liabilities                                     (51,529)                            $49,029

 

Working Capital (Deficit)                         (51,514)                           (48,996 )


Cash Flows

  

Three Months Ended September 30                                                                         2009           2008

Cash Flows from (used in) Operating Activities                                              $(2,518)             (2,519)

Cash Flows from (used in) Investing Activities                                                --                         --

Cash Flows from (used in) Financing Activities                                               0                          0

Net Increase (decrease) in Cash During Period                                               $18                    (19)

 

The increase in our working capital deficit at September 30, 2009 as compared to our fiscal year ended June 30, 2009 is primarily a result of the fact that we had no sources of revenue and limited sources of financing during the period. As a result, we were required to use existing cash reserves in order to meet our obligations during the period. As of September 30, 2009, the date of our most recently available financial statements, we had cash on hand of $15 Since our inception, we have used sales of our common stock and loans from our sole officer and director to raise money for our operations and for our acquisition. We have not attained profitable operations and are dependent upon obtaining financing to pursue our plan of operation.

We anticipate spending approximately $235,000 over the next twelve months in pursuing our plan of operation. This amount is in excess of our current working capital reserves and we have not earned any revenues to date and do not anticipate earning revenues until we have completed commercial development of our product. Accordingly, we will require additional financing in order to fund our plan of operation. We anticipate that any additional financing will likely be in the form of equity financing as substantial debt financing will not be as available at this stage of our business.

OFF-BALANCE SHEET ARRANGEMENTS

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








6

CRITICAL ACCOUNTING POLICIES

The financial statements presented with this Quarterly Report on Form 10-Q have been prepared in accordance with generally accepted accounting principles in the United States of America for interim financial information.

These financial statements do not include all information and footnote disclosures required for an annual set of financial statements prepared under United States generally accepted accounting principles. In the opinion of our management, all adjustments (consisting solely of normal recurring accruals) considered necessary for a fair presentation of the financial position, results of operations and cash flows as at September 30, 2009 and for all periods presented in the attached financial statements, have been included. Interim results for the three-month period ended September 30, 2009 are not necessarily indicative of the results that may be expected for the fiscal year as a whole.

We have identified certain accounting policies, described below, that are most important to the portrayal of our current financial condition and results of operations. Our significant accounting policies are disclosed in the notes to the consolidated financial statements included with this Quarterly Report on Form 10-Q.

Use of Estimates

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

Foreign Currency Translation

Transaction amounts denominated in foreign currencies are translated at exchange rates prevailing at transaction dates. Carrying values of monetary assets and liabilities are adjusted at each balance sheet date to reflect the exchange rate at that date. Non-monetary assets and liabilities are translated at the exchange rate on the original transaction date. Gains and losses from restatement of foreign currency monetary assets and liabilities are included in the statements of operations. Revenues and expenses are translated at the rates of exchange prevailing on the dates such items are recognized in the statement of operations.

Contributed Executive Services

Pursuant to SAB topic 1:B(1) and the last paragraph of SAB 5:T, we are required to report all costs of conducting our business. Accordingly, we record the fair value of contributed executive services provided to us at no cost as compensation expense, with a corresponding increase to additional paid-in capital, in the year which the services are provided.





7


RISK FACTORS

Need For Financing

We do not currently have the financial resources to complete our plan of operation for the next twelve months. We anticipate that we will require financing in the amount of $235,000 in order to fund our plan of operation over the next twelve months. We presently do not have any financing arrangements

in place and there is no assurance that we will be able to obtain sufficient financing on terms acceptable to us or at all. If further financing is not available or obtainable, our ability to meet our financial obligations and pursue our plan of operation will be substantially limited and investors may lose a substantial portion or all of their investment.

Limited Operating History, Risks Of A New Business Venture

We were incorporated on April 14, 2004 and, prior to our acquisition of Darrwin, we had been involved primarily in organizational activities and in seeking business opportunities and products. We have not earned any revenues to date.

Potential investors should be aware of the difficulties normally encountered by a new enterprise and the high rate of failure of such enterprises. The potential for future success must be considered in light of the problems, expenses, difficulties complications and delays encountered in connection with the development of a business in the area in which we intend to operate and in connection with the formation and commencement of operations of a new business in general. These include, but are not limited to, unanticipated problems relating to research and development programs, marketing, approvals by government agencies, competition and additional costs and expenses that may exceed current estimates. There is no history upon which to base any assumption as to the likelihood that our business will prove successful, and there can be no assurance that we will generate any operating revenues or ever achieve profitable operations.

Our Business Operations, Assets and Personnel Are Located Outside The United States

Although we are incorporated in the United States, all of our current operating activities are conducted in, and all of our assets and personnel are located in, Canada. As such, investors in our securities may experience difficulty in enforcing judgments or liabilities against the Company or our personnel under United States securities laws.










8



Our corporate headquarters are located in Edmonton Alberta, Canada As we are a Nevada corporation, we are required to maintain a resident agent in the State of Nevada for the purpose of receiving service of process. Under Section 78.090 of the Nevada Revised Statutes, all legal process and any demand or notice authorized by law to be served upon the Company may be served upon our resident agent in Nevada. Our resident agent for this purpose is Nevada Agency and Trust 50 West Liberty Street, Suite 880 Reno Nevada 89501.

As a Nevada corporation, we are subject to the laws of the United States, including the federal securities laws of the United States, and to the jurisdiction of United States courts. As such, investors may bring proceedings against us, and enforce judgments obtained against us, in United States courts.

Generally, original actions to enforce liabilities under United States federal securities laws may not be brought in a Canadian court. Such actions must be brought in a court in the United States with applicable jurisdiction. Persons obtaining judgments against us in United States courts, including judgments obtained under United States federal securities laws, will then be required to bring an application in a Canadian court to enforce such judgments in Canada.

Competition Is Intense And We May Be Unable To Achieve Market Acceptance

The business environment in which we intend to operate is highly competitive. Currently, there exists a number of software products similar to ours and we expect to experience competition from a number of established companies involved in the software development industry. Certain of our potential competitors will have greater technical, financial, marketing, sales and other resources than us.

In addition, while the software development industry is a mature one, we are unable to provide assurances that our target customers and markets will accept our technologies or will purchase our products and services in sufficient quantities to achieve profitability. If a significant market fails to develop or develops more slowly than we anticipate, we may be unable to recover the losses incurred to develop products and we may be unable to meet our operational expenses. Acceptance of our products by companies and other organizations will depend upon a number of factors, including the cost competitiveness of our products, customer reluctance to try new products or services, or the emergence of more competitive or effective products.

Rapid Technological Changes  Could Make Our Product Obsolete

The software development industry is characterized by rapid technological change and intense competition. New technologies, products and industry standards will develop at a rapid pace which could make our planned products obsolete. Our future success will depend upon our ability to develop and introduce product enhancements to address the needs of customers. Material delays in introducing product enhancements may cause customers to forego purchases of our product and purchase those of competitors.







9

Dependence On Key Personnel

Our success will largely depend on the performance of our directors and officers and our key consultants. Our success will also depend on our ability to attract and retain highly skilled technical, research, management, regulatory compliance, sales and marketing personnel. Competition for such personnel is intense. The loss of the services of such personnel or the inability to attract and retain other key personnel could impair the development of our business, operating results and financial condition.

ITEM 3.                CONTROLS AND PROCEDURES.

Evaluation Of Disclosure Controls And Procedures

As of the end of the period covered by this report, our management carried out an evaluation, under the supervision and with the participation of our principal executive officer and principal financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act). Based on this evaluation, our principal executive officer and principal financial officer has concluded that our disclosure controls and procedures are, as of the date covered by this Quarterly Report, effective to ensure that the information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC rules and forms.

Changes In Internal Controls Over Financial Reporting

In connection with the evaluation of our internal controls during our last fiscal quarter, our principal executive officer and principal financial officer has determined that there have been no changes to our internal controls over financial reporting that has materially affected, or is reasonably likely to materially effect, our internal controls over financial reporting.

















10

PART II - OTHER INFORMATION

ITEM 1.                LEGAL PROCEEDINGS.

None.

ITEM 2.                UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

none.

ITEM 3.                DEFAULTS UPON SENIOR SECURITIES.

None.

ITEM 4.                SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

None.

ITEM 5.                OTHER INFORMATION.

Other Events

ITEM 6.                EXHIBITS AND REPORTS ON FORM 8-K.


Exhibit Number      Description of Exhibit  


1.1

Certification of Chief Executive Officer and Chief Financial Officer as adopted pursuant to Section 302 of   

           the Sarbanes-Oxley Act of 2002.  

0.1

Certification of Chief Executive Officer and Chief Financial Officer as adopted pursuant to Section 906 of

             the Sarbanes-Oxley Act of 2002.


REPORTS ON FORM 8-K

The Company has not filed Current Reports on Form 8-K during the fiscal quarter ended September 30, 2009,

















11

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.

  

EMPIRICAL VENTURES, INC.

  

Date November 23, 2009                       By:

/s/    Derek Ward                               

Derek ward

                                                                         Chief Executive Officer, Chief Financial Officer

                                                                         President, Director (Principal Executive Officer

                                                                         and Principal Accounting Officer)