AFFORDABLE GREEN HOMES INTERNATIONAL - FORM 10-Q

Attached files

file	filename
EX-32.2 - CERTIFICATION PURSUANT TO 18 U.S.C. 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 - AFFORDABLE GREEN HOMES INTERNATIONAL	exhibit_32-2.htm
EX-31.1 - CERTIFICATE OF PRINCIPAL EXECUTIVE OFFICER - AFFORDABLE GREEN HOMES INTERNATIONAL	exhibit_31-1.htm
EX-31.2 - CERTIFICATE OF PRINCIPAL ACCOUNTING OFFICER - AFFORDABLE GREEN HOMES INTERNATIONAL	exhibit_31-2.htm
EX-32.1 - CERTIFICATION PURSUANT TO 18 U.S.C. 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 - AFFORDABLE GREEN HOMES INTERNATIONAL	exhibit_32-1.htm

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 December 31, 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: 333-144765

AFFORDABLE GREEN HOMES INTERNATIONAL, INC.

(Exact name of registrant as specified in its charter)

Nevada	87-0785410
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

1325 Spruce St, Suite 200

Riverside, CA 92507

(Address of principal executive office)

(951) 538-8362

(Issuer's telephone number)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

x Yes o No

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

o Yes o No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. 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	x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

o Yes x No

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.

o Yes o No

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

The number of outstanding shares of the Registrant's common stock, $0.001 par value, as of December 31, 2009 was 12,925,000.

AFFORDABLE GREEN HOMES INTERNATIONAL, INC.

TABLE OF CONTENTS

PART I:	FINANCIAL INFORMATION	Page

Item 1.	Financial Statements	4

Item 2.	Managements Discussion and Analysis of Financial Condition and Results of Operations	10

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	12

Item 4T.	Controls and Procedures	12

PART II:	OTHER INFORMATION	12

Item 1.	Legal Proceedings	12

Item 1A.	Risk Factors	12

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	12

Item 3.	Defaults upon Senior Securities	12

Item 4.	Submission of Matters for a Vote of Security Holders	12

Item 5.	Other Information	12

Item 6.	Exhibits	13

SIGNATURES		13

This Form 10-Q contains forward-looking statements within the meaning of the "safe harbor" provisions under Section 21E of the Securities Exchange Act of 1934. We use forward-looking statements in our description of our plans and objectives for future operations and assumptions underlying these plans and objectives. Forward-looking terminology includes the words "may," "expects," "believes," "anticipates," "intends," "projects," or similar terms, variations of such terms or the negative of such terms. These forward-looking statements are based on management's current expectations and are subject to factors and uncertainties, which could cause actual results to differ materially from those, described in such forward-looking statements. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained in this Form 10-Q to reflect any change in our expectations or any changes in events, conditions or circumstances on which any forward-looking statement is based. Factors, which could cause such results to differ materially from those described in the forward-looking statements, and elsewhere,, are incorporated by reference into this Form 10-Q. The term the "Company" includes Affordable Green Homes International, Inc.

PART I: FINANCIAL INFORMATION

Item 1.

Financial Statements

In the opinion of management, the accompanying unaudited condensed financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the Company's financial position as of December 31, 2009 and the results of its operations and cash flows for the three months ended December 31, 2009 have been made. Operating results for the three months ended December 31, 2009 are not necessarily indicative of the results that may be expected for the year ended March 31, 2010.

AFFORDABLE GREEN HOMES INTERNATIONAL

(A Development Stage Company)

FINANCIAL STATEMENTS

(Unaudited)

Quarter Ended December 31, 2009

TABLE OF CONTENTS

	Page

Balance Sheets - March 31, 2009 and December 31, 2009 (Unaudited)	5

Statements of Operations (Unaudited) - Three and Nine Months Ended December 31, 2009 and 2008 and the Period from October 10, 2006 (Inception) to December 31, 2009	6

Statements of Cash Flows (Unaudited) - Nine Months Ended December 31, 2009 and 2008 and the Period from October 10, 2006 (Inception) to December 31, 2009	7

Notes to Financial Statements	8

AFFORDABLE GREEN HOMES INTERNATIONAL
(A Development Stage Company)
BALANCE SHEETS


				Dec. 31, 2009
	March 31, 2009			(Unaudited)

ASSETS
Current assets
Cash	$	1,084		$	845
Total current Assets		1,084			845

Construction in Progress		-			158,681
Total Assets	$	1,084		$	159,526


LIABILITIES & STOCKHOLDERS' EQUITY

Current liabilities
Accounts payable	$	-		$	-
Accounts payable - related parties		76,084			265,746
Accrued interest payable		-			5,875
Notes payable		-			145,000
Total current liabilities		76,084			416,621

Total Liabilities		76,084			416,621

Stockholders' Equity
Common stock, $.0001 par value;
25,000,000 shares authorized;
12,925,000 shares issued
and outstanding		1,293			1,293
Additional paid in capital		135,457			135,457
Deficit accumulated during the
development stage		(211,750	)		(393,845	)

Total Stockholders' Equity		(75,000	)		(257,095	)

Total Liabilities and Stockholders' Equity	$	1,084		$	159,526







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

AFFORDABLE GREEN HOMES INTERNATIONAL
(A Development Stage Company)
STATEMENTS OF OPERATIONS
(Unaudited)

													Period From
													Oct. 10, 2006
	Three Months			Three Months			Nine Months			Nine Months			(Inception)
	Ended			Ended			Ended			Ended			To
	Dec. 31, 2008			Dec. 31, 2009			Dec. 31, 2008			Dec. 31, 2009			Dec. 31, 2009

Revenues	$	-		$	-		$	-		$	-		$	-
		-			-			-			-			-

Operating expenses:
Amortization & depreciation		-			-			-			-			-
General and administrative		15,329			13,941			52,737			176,220			387,970
		15,329			13,941			52,737			176,220			387,970

Gain (loss) from operations		(15,329	)		(13,941	)		(52,737	)		(176,220	)		(387,970	)

Other income (expense):		-			(2,125	)		-			(5,875	)		(5,875	)
Interest expense		-			(2,125	)		-			(5,875	)		(5,875	)

Income (loss) before
provision for income taxes		(15,329	)		(16,066	)		(52,737	)		(182,095	)		(393,845	)

Provision for income tax		-			-			-			-			-

Net income (loss)	$	(15,329	)	$	(16,066	)	$	(52,737	)	$	(182,095	)	$	(393,845	)

Net income (loss) per share
(Basic and fully diluted)	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.01	)

Weighted average number of
common shares outstanding		12,925,000			12,925,000			12,647,222			12,925,000





















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

AFFORDABLE GREEN HOMES INTERNATIONAL
(A Development Stage Company)
STATEMENTS OF CASH FLOWS
(Unaudited)

							Period From
							Oct. 10, 2006
	Nine Months			Nine Months			(Inception)
	Ended			Ended			To
	Dec. 31, 2008			Dec. 31, 2009			Dec. 31, 2009

Cash Flows From Operating Activities:
Net income (loss)	$	(52,737	)	$	(182,095	)	$	(393,845	)

Adjustments to reconcile net loss to
net cash provided by (used for)
operating activities:
Amortization & depreciation
Bank overdraft		(229	)		-			-
Accounts payables		2,706			-			-
Related party payables		29,127			189,662			265,746
Accrued interest payable		-			5,875			5,875
Compensatory stock issuances								38,000
Net cash provided by (used for)
operating activities		(21,133	)		13,442			(84,224	)


Cash Flows From Investing Activities:
Construction in progress		-			(158,681	)		(158,681	)
Net cash provided by (used for)
investing activities		-			(158,681	)		(158,681	)


Cash Flows From Financing Activities:
Notes payable - borrowings		-			145,000			145,000
Notes payable - payments		-			-
Sales of common stock		22,500			-			98,750
Net cash provided by (used for)
financing activities		22,500			145,000			243,750

Net Increase (Decrease) In Cash		1,367			(239	)		845

Cash At The Beginning Of The Period		-			1,084			-

Cash At The End Of The Period	$	1,367		$	845		$	845


Schedule Of Non-Cash Investing And Financing Activities

None


Supplemental Disclosure

Cash paid for interest	$	-		$	-		$	-
Cash paid for income taxes	$	-		$	-		$	-





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

AFFORDABLE GREEN HOMES INTERNATIONAL

(A Development Stage Company)

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

NOTE 1. ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

Affordable Green Homes International (the “Company”), was incorporated in the State of Nevada on October 10, 2006. The Company is in business to build affordable family homes in weather affected states in the Southern and Southwestern United States, Mexico and South American countries by using low cost structural concrete insulated panels as the basic construction methodology. The Company plans to purchase land for development, and to market and build finished homes using local labor.

Basis of Presentation

The accompanying unaudited financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and disclosures required by generally accepted accounting principles for complete financial statements. All adjustments which are, in the opinion of management, necessary for a fair presentation of the results of operations for the interim periods have been made and are of a recurring nature unless otherwise disclosed herein. The results of operations for such interim periods are not necessarily indicative of operations for a full year.

Cash and cash equivalents

The Company considers all highly liquid investments with an original maturity of three months or less as cash equivalents.

Accounts receivable

The Company reviews accounts receivable periodically for collectability and establishes an allowance for doubtful accounts and records bad debt expense when deemed necessary.

Property and equipment

Property and equipment are recorded at cost and depreciated under straight line methods over each item's estimated useful life.

Revenue recognition

Revenue is recognized on an accrual basis as earned under contract terms.

AFFORDABLE GREEN HOMES INTERNATIONAL

(A Development Stage Company)

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

NOTE 1. ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued):

Use of Estimates

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

Income tax

The Company accounts for income taxes under Statement of Financial Accounting Standards No. 109 (“SFAS 109”). Under SFAS 109 deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

Net income (loss) per share

The net income (loss) per share is computed by dividing the net income (loss) by the weighted average number of shares of common outstanding. Warrants, stock options, and common stock issuable upon the conversion of the Company's preferred stock (if any), are not included in the computation if the effect would be anti-dilutive and would increase the earnings or decrease loss per share.

Financial Instruments

The carrying value of the Company’s financial instruments as reported in the accompanying balance sheet, approximates fair value.

Item 2.

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

This analysis should be read in conjunction with the condensed consolidated financial statements, the notes thereto, and the financial statements and notes thereto included in the Company's Registration Statement on Form SB-2, as amended, initially filed on July 23, 2007. Post-effective amendment no. 2 to form SB-2 on form S-1 registration statement under the securities act of 1933 was filed on July 8, 2008. All non-historical information contained in this annual report is a forward-looking statement. The forward-looking statements contained herein are subject to certain risks and uncertainties that could cause the actual results to differ materially from those reflected in the forward-looking statements.

Results of Operations

Total revenue was $0 for the quarter ended December 31, 2009 as compared to $0 for the year ended March 31 2009. The Company completed construction of its first house in Stinnett, Texas and the house has been sold. Escrow is scheduled to close on Feb 5, 2010. We have acquired the land and started on-site grading for the next two houses, also in Stinnett, Texas. Officer and Administrative Compensation was donated during this period and the Company did not book any accrued compensation. Total Assets were $159,526 at December 31, 2009 as compared to $1,084 at March 31, 2009.

Plan of Operations

Affordable Green Homes International, Inc. (“AGHI”) was founded on the basis of developing properties and technologies in an environmentally responsible yet profitable manner and is engaged in the business of construction of Residential, Commercial and Industrial structures using Structural Concrete Insulated Panel (SCIP) Technology. Affordable Green Homes International, Inc. was incorporated in the State of Nevada on October 10, 2006. We intend to provide moderate to low cost housing in the Panhandle of Texas where an acute housing shortage currently exists, and in the Hurricane affected areas of Galveston, Texas area. These homes are built out of high quality lightweight prefabricated Structural Concrete Insulated Panels (SCIP’s). The interior and exterior surfaces of the panels are covered with a concrete coating, designed and tested to resist hurricanes, tornados and earthquakes. When the homes are completed they are significantly more structurally sound than wood or concrete alone and can typically be constructed in less than 30 days. We are convinced that there is a real need for homes like these in the economically burgeoning areas in which we are concentrating.

The company intends to operate 3 business units:

	1.	A SCIP manufacturing unit
	2.	A construction unit based in the Northern Panhandle of Texas, primarily around the Stinnett/Perryton Area.
	3.	A construction unit based in the Galveston, Texas area. This unit will do reconstruction following Hurricane Ike.

SCIP Manufacturing: The Company believes that construction using SCIP technology will start its real growth in 2010. In 2007, Ron Bell built a SCIP home near Crystal Beach. Crystal Beach is directly on the Gulf Coast approximately 10 miles northeast of Galveston. The home was built on pilings that were designed so that a hurricane type high surf would pass underneath and not injure the structure of the home. This house was the only one within several blocks to survive Hurricane Ike untouched. The Crystal Beach House has raised the awareness of construction using this technology in areas prone to hurricanes, tornados and earthquakes. It is our intention to be the leader in this industry. FEMA officials as well as the Structures group from Texas Tech University have both been to the house to inspect it and discuss a wide range of topics concerning using this type of construction all along the gulf coast.

Northern Texas Panhandle: There is an acute housing shortage in the Northern Panhandle of Texas. This is due to a number of factors:

	1.	Conoco-Phillips – 7 to 10 year plant expansion
	2.	Chevron – 7 to 10 year plant expansion
	3.	Wind Generation – T. Boone Pickens and others building massive wind farms within 10 miles of Stinnett (north, east and west of town)
	4.	Two Carbon Black plants within 10 miles of Stinnett
	5.	New plastics plant within 10 miles of Stinnett
	6.	New aircraft plant (Osprey Project) within 20 miles of Stinnett

Item 2.

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

Plan of Operations - continued

All of the motels and apartments are booked solid and have been for over a year. The company feels that building some medium size houses, 1200-1500 sq ft, as well as one (1) to three (3) 40 unit 2 story motels would sell quickly in this area. Ron Bell (our highly qualified consultant for this area) has met with the Mayor of Stinnett as well as the President of the Stinnett Community Development Corporation, and both have told him that there is a great demand for the products that we can deliver. We have acquired three (3) building lots in Stinnett close to the home that was completed in October, 2009 and have started construction on another two additional homes on the lots owned by the Company. We believe that the company can build and sell 8-10 single family dwellings as well as 1 - 40 unit motel in 2010. There is potential to build a housing community a few miles outside of Stinnett that will have over 250 single family dwellings.

Galveston Area: A major opportunity presented itself with Hurricane Ike. There is a great deal of devastation in the general area and there will be a large number of homes and commercial structures that will need to be rebuilt following the hurricane. Affordable Green Homes will be at the center of the rebuilding. In 2007, Ron Bell built a SCIP home near Crystal Beach. Crystal Beach is directly on the Gulf Coast approximately 10 miles northeast of Galveston. The home was built on pilings so that a hurricane type high surf would pass underneath and not injure the structure of the home. We are also in discussions with major insurance carriers about rebuilding homes with our type of construction.

RESULTS:

The response our company has received from our panel building process is positive. The costs to build are lower than concrete block or stucco, and the actual construction building time is twice as fast.

Our consultants have estimated that there is a real need for our product. Our company has just completed a video that explains the product and demonstrates the construction of affordable homes and privacy walls.

EXPENDITURES

The following chart provides an overview of our budgeted expenditures using our existing cash resources, by significant area of activity for each quarter, over the next 12 months:

ITEMS	Jan-Mar		Apr-Jun		Jul-Sep		Oct-Dec		12 Month Total
Legal/Accounting		10,000		7,500		10,000		10,000		37,500

Transfer Agent		500		500		500		500		2,000

Web Site Development		0		2500		500		500		3,500

Office Rent		500		500		500		500		2,000

Travel Expenses		5,000		5,000		10,000		10,000		30,000

Video Production		500		500		500		500		2,000

Advertising		1,000		1,000		1,000		1,000		4,000

Office Equipment & Supplies		200		200		200		200		800

TOTALS:	$	17,700	$	17,700	$	23,200	$	23,200	$	81,800

LIQUIDITY and CASH RESOURCES:

The company has raised enough capital to build the next two houses in Stinnett, TX. We are currently seeking financing to build two more houses in Stinnett as well as three to five houses in Perryton, TX. We are also looking to raise capital to allow us to scale the company to be able to construct 20-40 homes at a time.

How long Affordable Green Homes will be able to satisfy its cash requirements depends on how quickly our company can generate investment capital or revenue and how much revenue can be generated. Although there can be no assurance at the present, the company plans to be in a position to generate construction revenues by February 2010.

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Not required.

Item 4T.

Controls and Procedures

As required by Rule 13a-15 under the Securities Exchange Act of 1934, as of the end of the period covered by this quarterly report, our management concluded its evaluation of the effectiveness of the design and operation of our disclosure controls and procedures. Disclosure controls and procedures are controls and procedures designed to reasonably assure that information required to be disclosed in our reports filed under the Securities Exchange Act of 1934, such as this quarterly report, is recorded, processed, summarized and reported within the time periods prescribed by SEC rules and regulations, and to reasonably assure that such information is accumulated and communicated to our management, including our President, to allow timely decisions regarding required disclosure.

As of the evaluation date, our CEO who also serves as our principal financial and accounting officer, concluded that we do not maintain disclosure controls and procedures that are effective in providing reasonable assurance that information required to be disclosed in our reports under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods prescribed by SEC rules and regulations, and that such information is accumulated and communicated to our management to allow timely decisions regarding required disclosure. Our CEO is not a financial or accounting professional, and we do not have any other employees, including a chief financial officer, comptroller or similarly titled senior financial officer, or any accounting personnel sufficiently trained in the application of generally accepted accounting principles. As a result of our limited financial resources, we do not anticipate that we will be in a position to engage such properly trained professional accounting personnel or a senior financial officer in the foreseeable future. Until we are able to engage a qualified financial officer, and/or properly trained accounting staff, we may continue to experience material weaknesses in our disclosure controls that may result in errors in our financial statements in future periods.

There were no significant changes in our internal controls or in other factors that could significantly affect those controls since the most recent evaluation of such controls.

PART II: OTHER INFORMATION

Item1.

Legal Proceedings

None

Item1A.

Risk Factors

Not required

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

None

Item 6.

Exhibits

Exhibit #	Description

31.1	Certificate of Principal Executive Officer

31.2	Certificate of Principal Accounting Officer

32.1	Certification Pursuant to 18 U.S.C. 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.2	Certification Pursuant to 18 U.S.C. 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

SIGNATURES

In accordance with Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized

	AFFORDABLE GREEN HOMES INTERNATIONAL, INC. (Registrant)

Date: January 21, 2010	By:	/s/ Michael P Vahl
		Michael P Vahl, CEO/President

AFFORDABLE GREEN HOMES INTERNATIONAL - FORM 10-Q - January 26, 2010

Attached files

AFFORDABLE GREEN HOMES INTERNATIONAL Reports