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EX-31 - 302 CERTIFICATION CEO - Redify Group, Inc. | ex311qa.htm |
EX-31 - 302 CERTIFICATION CFO - Redify Group, Inc. | ex312qa.htm |
EX-32 - 906 CERTIFICATION - Redify Group, Inc. | ex32qa610.htm |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q /A
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT of 1934
For the quarterly period ended: June 30, 2010
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file Number: 0-19470
TGFIN HOLDINGS, INC.
(Exact name of registrant as specified in its Charter)
Delaware |
13-4069968 |
(State or other Jurisdiction of Incorporation or organization) | (I.R.S. Employer Identification No.) |
101 North Main Street, Suite B
Smithfield, Utah 84335
(Address of Principal Executive Offices)
( 435) 563-8080
(Registrants Telephone Number, including area code)
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act 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. (1) Yes [X] 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:
Large accelerated filer [ ]
Accelerated filer [ ]
Non-accelerated filer [ ]
Smaller reporting company [X]
(Do not check if a smaller reporting company)
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [X]
Applicable Only to Registrants Involved in Bankruptcy Proceedings During the Preceding Five Years
Not applicable.
1
Outstanding Shares
At August 14, 2010 there were 23,321,045 shares of the Registrant's Common Stock and 50,400 shares of Series 1 Class A 8% Cumulative Preferred Stock outstanding.
EXPLANATORY NOTE
We are amending this 10Q to update the dates of the certifications.
TGFIN HOLDINGS, INC. AND SUBSIDIARY
TABLE OF CONTENTS
PAGE
PART I. FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements
Unaudited Condensed Consolidated Balance Sheet
as of June 30, 2010 and Audited Consolidated
Balance Sheet as of December 31, 2009 3
Unaudited Condensed Consolidated Statements of
Operations, for the Three and Six Month Periods
Ended June 30, 2010 and 2009 4
Unaudited Condensed Consolidated Statements of Cash
Flows, for the Six Month Periods Ended
June 30, 2010 and 2009 5
Notes to Unaudited Condensed Consolidated
Financial Statements 7
Item 2. Management's Discussion and Analysis of Financial
Condition or Plan of Operation 12
Item 3. Quantitative and Qualitative Disclosures About
Market Risks 13
Item 4. Controls and Procedures 13
PART II. OTHER INFORMATION 14
SIGNATURES 14
PART I FINANCIAL INFORMATION
ITEM 1 CONSOLIDATED FINANCIAL STATEMENTS
2
June 30, 2010
TGFIN HOLDINGS, INC. AND SUBSIDIARY
(A Development Stage Company)
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, December 31,
2010 2009
------------- ------------
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 3,744 23,505
Accounts receivable 155 -
Prepaid expenses 9,767 1,272
------------ ------------
Total Current Assets 13,666 24,777
Software, net of $1,449 of
Accumulated amortization 10,551 -
Deposits - 500
------------ ------------
Total Assets $ 24,217 $ 25,277
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 13,491 $ 2,696
Accrued expenses 171 438
Stock compensation payable 3,000 -
Convertible notes payable 20,000 -
------------ -----------
Total Current Liabilities 36,662 3,134
----------- -----------
Stockholders' Equity:
Preferred stock ($0.01 par value)
1,000,000 shares authorized,
50,400 shares issued
and outstanding 504 504
Common stock ($.01 par value),
50,000,000 shares authorized,
23,321,045 and 23,321,045 issued and
outstanding, respectively 233,210 233,210
Additional paid-in-capital 3,821,782 3,780,783
Retained deficit prior to
development stage (1,077,064) (1,077,064)
Retained deficit during
development stage (2,990,877) (2,915,290)
----------- ------------
Total Stockholders' Equity (12,445) 22,143
----------- ------------
Total Liabilities and
Stockholders' Equity $ 24,217 $ 25,277
=========== ============
The accompanying notes are an integral part of these condensed consolidated financial statements.
3
TGFIN HOLDINGS, INC. AND SUBSIDIARY
(A Development Stage Company)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
From
Inception
Of the
Development
For the For the Stage on
Three Months Ended Six Months Ended April 1, 2003
June 30, June 30, to
2010 2009 2010 2009 June 30, 2010
REVENUES $ 155 $ - $ 222 - $ 222
-------- --------- ------- --------- -----------
COST OF GOODS SOLD - - - -
-------- --------- ------- ---------
GROSS PROFIT $ 155 $ - $ 222 - $ 222
-------- --------- ------- --------- -----------
EXPENSES
Payroll and related $ 14,173 $ 55,379 $ 35,904 $ 128,401
Selling, General &
Administrative 10,780 28,162 24,266 53,488
Legal and
Professional 8,276 8,987 14,202 22,534
Amortization 1,449 - 1,449 -
-------- -------- -------- ---------
TOTAL OPERATING
EXPENSE 34,678 92,528 75,821 204,423 3,128,159
-------- -------- -------- --------- -----------
OPERATING LOSS ( 34,523) ( 92,528) (75,599) (204,423) (3,127,937)
-------- -------- -------- --------- -----------
OTHER INCOME:
INTEREST INCOME 3 311 12 898 137,060
-------- -------- -------- --------- ----------
TOTAL OTHER INCOME 3 311 12 898 137,060
--------- -------- -------- --------- ----------
NET LOSS $(34,520) $( 92,217)$(75,587) $(203,525) $(2,990,877)
======== ========= ======== ========= ===========
BASIC AND
DILUTED INCOME
LOSS PER SHARE: $ (0.00) $ (0.00) $ (0.00) $ (0.01)
======== ========= ======== =========
Weighted Average
Number of shares
Outstanding 23,321,045 23,220,845 23,321,045 23,171,121
========== ========== ========== ==========
The accompanying notes are an integral part of these condensed consolidated financial statements.
4
TGFIN HOLDINGS, INC. AND SUBSIDIARY
(A Development Stage Company)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
From
Inception
Of the
Development
For The Stage on
Six Months Ended April 1, 2003
June 30, To
2010 2009 June 30, 2010
Cash Flows from
Operating Activities:
Net Loss $ (75,587) $ (203,525) $ (2,990,877)
Adjustments to reconcile
net loss to net cash used
in operating activities:
Amortization of deferred
compensation - - 13,751
Compensation costs of
common stock issued to
employees and consultants 3,000 7,000 138,355
Cost of donated services 29,000 - 29,000
Cost of common stock
issued to shareholders - - 16,500
Amortization expense 1,449 - 1,449
Changes in assets and
liabilities:
Decrease (increase)in:
Accounts receivable (155) - 31,095
Prepaid expenses (8,495) 748 4,985
Deposits 500 - -
Increase (decrease)in:
Accounts payable and
accrued expenses 10,527 1,476 (213,832)
--------- --------- ----------
Net Cash Used In Operating
Activities (39,761) (194,301) (2,969,574)
---------- ---------- -----------
Net Cash Provided By
Investing Activities: - - -
---------- ---------- -----------
Cash Flows From Financing
Activities:
Proceeds from the issuance
Of Convertible Notes
Payable 20,000 - 20,000
---------- ---------- -----------
Net Cash From Financing
Activities 20,000 - 20,000
---------- ---------- -----------
Net Decrease
In Cash and Cash
Equivalents (19,761) (194,301) (2,949,574)
Cash and Cash Equivalents,
Beginning of Period 23,505 316,795 2,953,318
---------- ---------- ----------
Cash and Cash Equivalents,
End of Period $ 3,744 $ 122,494 $ 3,744
========== ========== ==========
The accompanying notes are an integral part of these condensed consolidated financial statements.
5
TGFIN HOLDINGS, INC. AND SUBSIDIARY
(A Development Stage Company)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
(Unaudited)
From
Inception
Of the
Development
For The Stage on
Six Months Ended April 1, 2003
June 30, To
2010 2009 June 30, 2010
Cash Paid During
the Period For:
Income Taxes $ - $ - $ 12,609
========== ========== ===========
Interest $ - $ - $ -
========== ========== ===========
Supplemental
Disclosures of
Non-cash Investing and
Financing Activities:
Common stock issued
For accrued liabilities $ - $ - $ 51,230
========== ========== ==========
Common stock issued to
Prior Shareholders $ - $ - $ 16,500
========== ========== ==========
Conversion of Preferred
Stock $ 2 $ - $ 2
========== ========== ==========
Cost of donated services $ 29,000 $ - $ 29,000
========== ========== ==========
Common stock options
Issued for software
Purchase $ 5,114 $ - $ 5,114
========== ========== =========
Software acquired with
Common stock options $ 12,000 $ - $ 12,000
========== ========== ==========
The accompanying notes are an integral part of these condensed consolidated Financial Statements.
6
TGFIN HOLDINGS, INC. AND SUBSIDIARY
(A Development Stage Company)
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2010 and DECEMBER 31, 2009
NOTE 1: THE COMPANY AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The Company
The Company consists of TGFIN Holdings, Inc. ("TGFIN") and its sole and
wholly-owned operating subsidiary, TradinGear.Com Incorporated ("TradinGear",
together, the "Company"). TGFIN was incorporated under the laws of Delaware in March 1985 (originally as Mark, Inc.). TradinGear was incorporated under the laws of the State of Delaware on July 7, 1999. TGFIN Holdings, Inc. previously a shell company, other than a business combination related shell company, as those terms are defined in Rule 12b-2 under the Exchange Act (17 CFR 240.12b-2) completed a transaction on February 19, 2010 that had the effect of causing it to cease to be a shell company, as defined in Rule 12b-2 by reactivating its previously inactive operating subsidiary, Tradingear.com Incorporated (Tradingear) in order to resume its previous business of developing software, under a new d/b/a: iDEV3. TradinGear produces software applications (Apps) for telephones and other hand-held devices.
Condensed financial statements
The accompanying financial statements have been prepared by the Company
without audit. They include information of TGFIN and TradinGear. In the
opinion of management, all material adjustments (which include only normal
recurring adjustments) necessary to present fairly the financial position at
June 30, 2010 and the results of operations and cash flows for the three and six month periods ended June 30, 2010 and 2009 have been made.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with accounting principles generally
accepted in the United States of America have been condensed or omitted. It
is suggested that these condensed financial statements be read in conjunction
with the financial statements and notes thereto included in the Company's
December 31, 2009 audited financial statements. The results of operations for
the periods ended June 30, 2010 and 2009 are not necessarily indicative
of the operating results for the respective full years.
7
TGFIN HOLDINGS, INC. AND SUBSIDIARY
(A Development Stage Company)
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2010 and DECEMBER 31, 2009
(Continued)
Revenue recognition
The company sells its current software at the Online Apple Store, which records all sales made on a daily basis. The company recognizes its portion of the sales as revenue as of the date of the sale.
NOTE 2: COMMITMENTS AND CONTINGENCIES
Litigation
In the normal course of business, there may be various legal actions and proceedings pending which seek damages against the Company. As of June 30, 2010 there were no other claims asserted or threatened against the Company.
NOTE 3: GOING CONCERN QUALIFICATION
The Company had been a Development Stage Company since April 1, 2003. It had continuously sought an acceptable merger or acquisition candidate during that period and had incurred losses each year. For the quarter ended June 30, 2010 the company lost $34,520 and had a Retained Deficit of $4,067,941. The companys cash reserves of $3,744 as of June 30, 2010 are not adequate to fund all of the anticipated expenses for the year ending December 31, 2010. See NOTE 7: SUSEQUENT EVENT: On August 18, 2010 the company received additional cash in the form of Convertible Notes payable for $11,500. Nevertheless, these conditions raise substantial doubt about the Companys ability to continue as a going concern. The accompanying financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result from the outcome of this uncertainty.
The company plans to merge with, acquire existing Apps or companies, and continue to operate during the year ending December 31, 2010. Should the acquired or merged operating entity not have sufficient resources of its own to fund the combined entitys operations, the Company will issue stock to raise sufficient operating capital if sufficient capital is not raised from operations.
8
TGFIN HOLDINGS, INC. AND SUBSIDIARY
(A Development Stage Company)
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2010 and DECEMBER 31, 2009
NOTE 4: RELATED PARTY TRANSACTIONS
On February 19, 2010 the company entered into a Material Definitive Agreement to purchase software applications in exchange for 600,000 options to purchase shares of TGFIN Common Stock at $.03 per share at any time between August 19, 2010 and August 12, 2013. The software applications, known as SportsCast Baseball and SportsCast Basketball were purchased from Gaer Consulting Group, a Related Party. Gaer Consulting Group is wholly-owned by Sam Gaer, TGFINs largest single shareholder. SportsCast Baseball and SportsCast basketball are new software applications with no previous operating history. The software has been recorded at predecessor cost as required for a related party transaction. The Company estimated the fair value of the stock options as of the agreement date by using the Black-Scholes option pricing model. See also NOTE 7: SUBSEQUENT EVENT for description of funding provided by Sam Gaer to the company.
Convertible Notes Payable
June 30,
2010 2009
Convertible 8% Demand Notes Payable $ 20,000 $ -
---------- ---------
Total Notes payable $ 20,000 $ -
========== =========
The Convertible 8% Notes Payable were originated on April 1, May 3, and June 22, 2010 for $5,000; $10,000; and $5,000, respectively, to reflect working capital funding provided by Sam Gaer, the companys single largest shareholder. The Notes are convertible into common stock of TGFIN at $.03 per share at any time at the holders option. Accrued interest related to these notes for the six months ended June 30, 2010 was $171.
NOTE 5: PROVISION FOR INCOME TAXES
The Company files income tax returns in the U.S. Federal jurisdiction, and the state of Utah. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2005.
The Company adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes, on January 1, 2007. Deferred income taxes have been provided by temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used
9
TGFIN HOLDINGS, INC. AND SUBSIDIARY
(A Development Stage Company)
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2010 and DECEMBER 31, 2009
NOTE 5: PROVISION FOR INCOME TAXES (continued)
for tax purposes. To the extent allowed by GAAP, we provide valuation allowances against the deferred tax assets for amounts when the realization is uncertain.
Included in the balance at June 30, 2010, are no tax positions for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility.
The Company's policy is to recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses.
NOTE 6: CAPITAL STOCK
Common stock
The authorized capital stock of the Company consists of 50,000,000 shares of common stock, par value $.01 per share, of which 23,321,045 were outstanding at June 30, 2010.
On February 19, 2010 the company issued 600,000 options to purchase common shares of TGFIN Common Stock at $.03 per share at any time between August 19, 2010 and August 12, 2013. See also NOTE 4: RELATED PARTY TRANSACTION.
On January 1 and April 1, 2010 the Company requested 100,000 shares of common stock for each a Director and Officer in accordance with a Board Resolution. The shares were valued at the market price at the date of issuance of $.01 and $.02 per share, respectively, resulting in compensation expense of $3,000. As of August 14, 2010 the shares have not been issued, resulting in Stock Compensation Payable of $3,000.
Preferred stock
The Series 1 Class A 8% Cumulative Convertible Preferred Stock has a par value of $0.01 per share. As of June 30, 2010 there were 50,400 shares outstanding. Holders of preferred shares are entitled to cumulative dividends of 8% per annum on the stated value of the stock, designated at $7 per share. Dividends are payable semi-annually on September 15 and March 15. No dividends have been paid since March 15, 1993, resulting in dividends in arrears at June 30, 2010 of approximately $479,808 or $9.52 per share.
Dividends are not payable on any other class of stock ranking junior to the preferred stock until the full cumulative dividend requirements of the preferred stock have been satisfied. The preferred stock carries a liquidation preference equal to its stated value plus any unpaid dividends. Holders of the preferred stock are entitled to one-tenth of a vote for each share of preferred stock held. The Company may, at its option, redeem at any time all shares of the preferred stock or some of them upon notice to each preferred stockholder at a per share price equal to the stated value ($7.00) plus all accrued and unpaid dividends thereon (whether or not declared) to the date fixed for redemption, subject to certain other provisions and
10
TGFIN HOLDINGS, INC. AND SUBSIDIARY
(A Development Stage Company)
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2010 and DECEMBER 31, 2009
NOTE 6: CAPITAL STOCK (Continued)
requirements. Preferred Shares may be converted into Common Shares on a one share of Preferred Stock for two shares of Common Stock basis.
NOTE 7: SUBSEQUENT EVENT
Management has evaluated subsequent events pursuant to the requirements of ASC Topic 855 and has determined that other than the event described below, no other material subsequent events exist.
On August 18, 2010 the company received additional cash in the form of Convertible Notes payable for $11,500. The Convertible Notes are payable on Demand, bear interest at 8% per annum and are convertible into common stock at $.03 per share at any time the holder desires.
11
PART 1 FINANCIAL INFORMATION (Continued)
ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS AND PLAN OF OPERATIONS
Management's Discussion and Analysis:
The following discussion should be read in conjunction with the consolidated historical financial statements of the Company and related notes thereto included elsewhere in this Form 10-Q and the Annual Report on Form 10-K for the year ended December 31, 2009. This discussion contains forward-looking statements regarding the business and industry of the Company within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current plans and expectations of the Company and involve risks and uncertainties that could cause actual future activities and results of operations to be materially different from those set forth in the forward-looking statements.
The information set forth and discussed below for the three and six months ended June 30, 2010 and 2009, is derived from the consolidated financial statements included elsewhere herein. The financial information set forth and discussed below is un-audited but, in the opinion of management, reflects all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of such information. The results of operations of the Company for the fiscal quarter ended June 30, 2010 may not be indicative of results expected for the entire fiscal year ended December 31, 2009.
Liquidity and Capital Resources:
At its current level of operations, the Company will need to begin profitable operations and or raise additional capital during the next fiscal year.
Capital expenditures planned for the current year are not expected to be significantly different than those of the previous year.
Results of Operations:
Operating costs of $34,678 for the three months ended June 30, 2010 decreased $57,850, or 62.5%, versus those of the three months ended June 30, 2009 due primarily to the following: 1) a decrease in payroll and related expense of $41,206, or 74.4% (net of an increase of $12,000, or 100%, in the non-cash cost of donated labor) due primarily to a reduction in workload and the voluntary reduction in salaries taken by the companys employee and officers and 2) a decease in Selling, General and Administrative expenses of $17,382, or 61.7% due primarily to a decrease in travel and meals and entertainment expenses of $13,459 or 97.8%.
Operating costs of $75,821 for the six months ended June 30, 2010 decreased $128,602, or 62.9%, versus those of the six months ended June 30, 2009 due primarily to the following: 1) a decrease in payroll and related expense of $92,497, or 72% (net of an increase of $29,000, or 100%, in the non-cash cost of donated labor) due primarily to a reduction in workload and the voluntary reduction in salaries taken by the companys employee and officers; 2) a decease in Selling, General and Administrative expenses of $29,222, or 54.6% due primarily to a decrease in travel and meals and entertainment expenses of $23,707 or 97.1%; and a decrease in Legal and Professional expenses of $8,332, or 37% due primarily to a decrease in legal expense of $12,000, or 100%.
12
PLAN OF OPERATIONS
Management's Plans are to seek App providers who wish to equitize their Apps potential by selling their developed App(s) for shares in TGFIN.
The company will always be open to other merger or acquisition candidates, depending upon the circumstances and opportunity offered. Management's main objective is to seek to increase shareholder value. All viable alternatives will be evaluated, including, but not limited to: investments, mergers, purchases, or the offering of Company securities, etc. Alternatives that provide existing shareholders with the greatest potential benefit will be favored.
Management encourages its shareholders to communicate directly with the Company for its typical investor relations, including address changes and for general corporate information by calling or writing to the Company at its administrative offices or by posting a message to idev3.com. Management also encourages shareholders to keep their address current with the Company.
DISCLOSURE REGARDING FORWARD LOOKING STATEMENTS
This quarterly report includes forward looking statements which involve risks and uncertainties. Such statements can be identified by the use of forward-looking language such as "will likely result", "may", "are expected to", "is anticipated", "estimate", "believes", "projected", or similar words. All statements other than statements of historical fact included in this section, are forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been
correct. The Company's actual results could differ materially from those anticipated in any such forward-looking statements as a result of various risks, including, without limitation, the dependence on a single line of business; the failure to close proposed financing; rapid technological change; inability to attract and retain key personnel; the potential for significant fluctuations in operating results; the loss of a major customer; and the potential volatility of the Company's common stock.
ITEM 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The company does not operate and its only assets are fully insured interest-bearing checking and savings accounts. Therefore, this item is not applicable given the companys current operations.
ITEM 4: CONTROLS AND PROCEDURES
Disclosure Controls and Procedures
As of the end of the period covered by this quarterly report, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934 (the Exchange Act)), and management necessarily applied its judgment in assessing the costs and benefits of such controls and procedures, which, by their nature, can provide only reasonable assurance regarding managements control objectives. You
13
should note that the design of any system of controls is based in part upon certain assumptions about the likelihood of future events, and we cannot assure you that any design will succeed in achieving its stated goals under all potential future conditions, regardless of how remote. Based upon the foregoing evaluation, our Chief Executive Officer and the Chief Financial Officer concluded that our disclosure controls and procedures were effective to provide reasonable assurance that 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 rules and forms of the SEC, and to provide reasonable assurance that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.
Internal Control Over Financial Reporting
There were no changes in internal control over financial reporting that occurred during the first or second quarter of 2010 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
PART II OTHER INFORMATION
ITEM 1 Legal Proceedings
In the normal course of business, there may be various legal actions and
proceedings pending which seek damages against the Company. As of June 30, 2010 there were no other claims asserted or threatened against the
Company.
ITEM 1A. Risk Factors
This item is not required of smaller reporting companies.
ITEM 2 Unregistered Sales of Equity Securities and Use of Proceeds
None
ITEM 3 Defaults on Senior Securities
Holders of Series 1 Class A 8% Cumulative Convertible Preferred Stock are entitled to receive cumulative dividends at the annual rate of $.56 per share, payable semi-annually on September 15 and March 15 of each year beginning September 15, 1992. Unpaid dividends have resulted in aggregate dividends in arrears of $479,808. The potential liability for dividends in arrears is contingent upon the Company's declaration of a dividend. The company does not plan to declare a dividend.
ITEM 4 Removed and Reserved.
ITEM 5 Other Information.
None.
14
ITEM 6 Exhibits
Exhibits
31.1 302 Certification
31.2 302 Certification
32 Certification of Chief Executive Officer and Chief Financial
Officer Pursuant to 18 U.S.C. Section 1350, 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.
Date: December 21 , 2010
TGFIN Holdings, Inc.
(Registrant)
By_/s/ Scott Emerson Lybbert_
Scott Emerson Lybbert, President
Principal Executive Officer,
Principal Financial Officer
15