Attached files
| file | filename |
|---|---|
| 8-K/A - UV FLU TECHNOLOGIES INC | v210450_8ka.htm |
| EX-99.2 - UV FLU TECHNOLOGIES INC | v210450_ex99-2.htm |
RxAir
Industries, LLC
Financial
Statements
December
31, 2009 and September 30, 2010
RxAir
Industries, LLC
Financial
Statements
|
Report
of Independent Registered Public Accounting Firm
|
1
|
|
|
Balance
Sheets - December 31, 2009 and September 30, 2010
|
2
|
|
|
Statements
of Operations - September 9, 2009 (inception) to December 31, 2009 and
January 1, 2010 to September 30, 2010
|
3
|
|
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Statements
of Members' Equity - September 9, 2009 (inception) to December 31, 2009
and January 1, 2010 to September 30, 2010
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4
|
|
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Statements
of Cash Flows - September 9, 2009 (inception) to December 31, 2009 and
January 1, 2010 to September 30, 2010
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5
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Notes
to Financial Statements
|
6
|
To the
Board of Directors and Stockholders
RxAir
Industries, LLC
Dallas,
Texas
REPORT OF
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We have
audited the balance sheet of RxAir Industries, LLC as of December 31, 2009 and
September 30, 2010 and the related statements of operations, members’ equity,
and cash flows for the period from September 9, 2009 (inception) to December 31,
2009 and for the nine months ended September 30, 2010. RxAir
Industries, LLC’s management is responsible for these financial
statements. Our responsibility is to express an opinion on these
financial statements based on our audits.
We
conducted our audit in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. The
Company is not required to have, nor were we engaged to perform, an audit of its
internal control over financial reporting. Our audit included
consideration of internal control over financial reporting as a basis for
designing audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the Company’s
internal control over financial reporting. Accordingly, we express no
such opinion. Our audit of the financial statements includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
In our
opinion, the financial statements referred to above present fairly, in all
material respects, the financial position of RxAir Industries, LLC as of
December 31, 2009 and September 30, 2010 and the results of its operations,
members’ equity, and cash flows for the period from September 9, 2009
(inception) to December 31, 2009 and for the nine months ended September 30,
2010 in conformity with accounting principles generally accepted in the United
States of America.
The
accompanying financial statements have been prepared assuming that the Company
will continue as a going concern. As discussed in Note 2 to the financial
statements, the Company has a minimal amount of cash and
revenues. These factors raise substantial doubt about the Company’s
ability to continue as a going concern. Management’s plans in regard
to these matters are also described in Note 2. The financial
statements do not include any adjustments that might result from the outcome of
this uncertainty.
/s/
Weaver & Martin, LLC
Weaver
& Martin, LLC
Kansas
City, Missouri
December
6, 2010
1
Balance
Sheet
|
December 31,
|
September 30,
|
|||||||
|
2009
|
2010
|
|||||||
|
Assets:
|
||||||||
|
Current
assets:
|
||||||||
|
Cash
|
$ | 2,954 | $ | 5,177 | ||||
|
Accounts
receivable
|
10,099 | 3,946 | ||||||
|
Inventory
|
29,800 | 45,886 | ||||||
|
Total
current assets
|
42,853 | 55,009 | ||||||
|
Fixed
assets, net of accumulation depreciation of $170 and $627 as of December
31, 2009 and September 30, 2010, respectively.
|
2,740 | 2,420 | ||||||
|
Trademark
|
- | 950 | ||||||
|
Deposits
|
4,380 | 4,380 | ||||||
| $ | 49,973 | $ | 62,758 | |||||
|
Liabilities
and Shareholder's Equity:
|
||||||||
|
Current
liabilities:
|
||||||||
|
Accounts
payable
|
$ | 7,475 | $ | 11,715 | ||||
|
Unearned
revenue
|
- | 24,375 | ||||||
|
Note
payable - current portion
|
7,179 | 4,641 | ||||||
|
Notes
payable - related party
|
5,238 | 12,238 | ||||||
|
Total
current liabilities
|
19,891 | 52,969 | ||||||
|
Notes
payable
|
19,870 | 16,382 | ||||||
|
Commitments
and contingencies:
|
||||||||
|
Members'
equity:
|
||||||||
|
Contributed
capital
|
100 | 100 | ||||||
|
Retained
earnings
|
10,112 | (6,692 | ) | |||||
|
Total
members' equity
|
10,212 | (6,592 | ) | |||||
| $ | 49,973 | $ | 62,758 | |||||
See notes
to financial statements
2
Statement
Of Operations
|
For the period
|
||||||||
|
from Sept. 9, 2009
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For the nine
|
|||||||
|
(inception) to
|
month period
|
|||||||
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December 31,
|
ended
|
|||||||
|
2009
|
Sept. 30, 2010
|
|||||||
|
Revenues,
net of discounts
|
$ | 58,165 | $ | 113,578 | ||||
|
Cost
of sales
|
13,345 | 15,834 | ||||||
|
Gross
profit
|
44,819 | 97,744 | ||||||
|
General
and administrative expenses
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34,166 | 113,413 | ||||||
|
Loss
from operations
|
10,654 | (15,669 | ) | |||||
|
Other
income (expense):
|
||||||||
|
Interest
expense
|
(542 | ) | (1,134 | ) | ||||
| (542 | ) | (1,134 | ) | |||||
|
Loss
before income tax
|
10,112 | (16,804 | ) | |||||
|
Provision
for Income tax expense
|
- | - | ||||||
|
Net
income (loss)
|
$ | 10,112 | $ | (16,804 | ) | |||
See notes
to financial statements.
3
Statement
Of Members' Equity
For
the period of September 9, 2009 (inception) to December 31, 2009 and from
January 1, 2010 to September 30, 2010
|
Paid in
|
Retained
|
Total
|
||||||||||
|
Capital
|
Earnings
|
Equity
|
||||||||||
|
Balance,
September 9, 2009 (inception)
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$ | - | $ | - | $ | - | ||||||
|
Contributed
capital
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100 | - | 100 | |||||||||
|
Net
income for the period
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- | 10,112 | 10,112 | |||||||||
|
Balance,
December 31, 2009
|
$ | 100 | $ | 10,112 | $ | 10,212 | ||||||
|
Net
loss for the period
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- | (16,804 | ) | (16,804 | ) | |||||||
|
Balance,
September 30, 2010
|
$ | 100 | $ | (6,692 | ) | $ | (6,592 | ) | ||||
See notes
to financial statements.
4
Statement
of Cash Flows
|
For the period
|
||||||||
|
from Sept. 9, 2009
|
For the nine
|
|||||||
|
(inception) to
|
month period
|
|||||||
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December 31,
|
ended
|
|||||||
|
2009
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Sept. 30, 2010
|
|||||||
|
Operating
activities:
|
||||||||
|
Net
income (loss)
|
$ | 10,112 | $ | (16,804 | ) | |||
|
Adjustments
to reconcile net loss to cash flows from operating
activities:
|
||||||||
|
Depreciation
expense
|
170 | 457 | ||||||
|
Change
in assets and liabilities-
|
||||||||
|
Accounts
receivable
|
(9,409 | ) | 6,153 | |||||
|
Inventory
|
(8,400 | ) | (16,086 | ) | ||||
|
Trademark
|
- | (950 | ) | |||||
|
Accounts
payable
|
7,475 | 4,241 | ||||||
|
Unearned
revenue
|
- | 24,375 | ||||||
|
Cash
provided by (used in) operating activities
|
(52 | ) | 1,386 | |||||
|
Investing
activities:
|
||||||||
|
Acquisitions
of fixed assets
|
- | (137 | ) | |||||
|
Cash
provided by (used in) investment activities
|
- | (137 | ) | |||||
|
Financing
activities:
|
||||||||
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Contributed
capital
|
100 | - | ||||||
|
Proceeds
from notes payable - related party
|
21,000 | 50,600 | ||||||
|
Payments
on notes payable
|
(2,332 | ) | (6,026 | ) | ||||
|
Payments
on notes payable - related party
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(15,762 | ) | (43,600 | ) | ||||
|
Cash
provided by (used in) financing activities
|
3,006 | 974 | ||||||
|
Increase
in cash
|
2,954 | 2,223 | ||||||
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Cash,
beginning of period
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- | 2,954 | ||||||
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Cash,
end of period
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$ | 2,954 | $ | 5,177 | ||||
|
Supplemental
cash flow information:
|
||||||||
|
Interest
paid
|
$ | 542 | $ | 1,134 | ||||
|
Income
taxes paid
|
$ | - | $ | - | ||||
|
Notes
payable issued for assets
|
$ | 29,380 | $ | - | ||||
See notes
to financial statements.
5
RxAir
Industries, LLC
Notes
to Financial Statements
For
the Period of September 9, 2009 (inception) to December 31, 2009
and
the Nine Months Ended September 30, 2010
Note
1 – Company Organization and Summary of Significant Accounting
Policies
Organization
RxAir
Industries, LLC (“RxAir”) was organized in Nevada on September 9, 2009 as a
limited liability Company. Our principle offices are located in
Dallas, Texas.
Cash and cash
equivalents
Cash and
cash equivalents include all cash balances in non-interest bearing accounts and
money-market accounts. The Company places its temporary cash investments with
quality financial institutions. At times such investments may be in
excess of Federal Deposit Insurance Corporation (FDIC) insurance limit. The
Company does not believe it is exposed to any significant credit risk on cash
and cash equivalents. For the purpose of the statements of cash flows, all
highly liquid investments with an original maturity of three months or less are
considered to be cash equivalents. There were no cash equivalents as of December
31, 2009 and September 30, 2010.
Revenue
recognition
It is the
Company’s policy that revenues will be recognized in accordance with ASC
subtopic 605-10, “Revenue Recognition”. The company will therefore
recognize revenue from sales of product upon delivery to its customers where the
fee is fixed or determinable, and collectability is probable. Cash payments
received in advance will be recorded as unearned revenue.
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 the financial statements and
the reported amounts of revenue and expenses during the reporting
period. Actual results could differ from those
estimates.
Fair value of financial
instruments
Fair
value estimates discussed herein are based upon certain market assumptions and
pertinent information available to management as of December 31, 2009 and
September 30, 2010. The respective carrying value of certain on-balance-sheet
financial instruments approximated their fair values. These financial
instruments include cash, accounts payable and amounts due to related
party. Fair values were assumed to approximate carrying values
because they are short term in nature and their carrying amounts approximate
fair values or they are payable on demand. See Note 7 for further
details.
(6)
Inventories
Inventories are
stated at the lower of cost or market. As of December 31, 2009, we
had $29,800 in raw materials. As of September 30, 2010, we had
$18,220 of finished goods and $27,666 of raw materials. Inventory is
reviewed for obsolescence at the end of each reporting period. There
was no obsolete inventory as of December 31, 2009 or September 30,
2010.
Property, Plant, and
Equipment
Property,
plant, and equipment are stated at cost. Provisions for depreciation
and amortization are computed using the straight-line method over the estimated
useful lives of five years. Maintenance and repairs are charged to expense as
incurred. Depreciation expense was $170 and $457 for the period ended December
31, 2009 and September 30, 2010, respectively.
Accounts
receivable
Accounts
receivable are carried on a gross basis, with no discounting, less an allowance
for doubtful accounts. We estimate the allowance for doubtful accounts based on
existing economic conditions, the financial conditions of the customers, and the
amount and the age of past due accounts. Receivables are considered
past due if full payment is not received by the contractual due
date. Past due accounts are generally written off against the
allowance for doubtful accounts only after all collection attempts have been
exhausted. There is no collateral held by us for accounts
receivable. There was no allowance for doubtful accounts as of
December 31, 2009 or September 30, 2010.
Deferred Revenue and
Deposits
Included
in liabilities is unearned revenue in the amount of $0 and $24,375 as of
December 31, 2009 and September 30, 2010, respectively. This unearned
revenue relates to a distribution agreement covering the period from July 1,
2010 to June 30, 2011 for a total amount of $32,500. The unearned
revenue will be taken into income evenly over the one-year period of the
agreement.
Impairment of long-lived
assets
The
Company reviews its long-lived assets periodically to determine potential
impairment by comparing the carrying value of the long-lived assets with the
estimated future cash flows expected to result from the use of the assets,
including cash flows from disposition. Should the sum of the expected future
cash flows be less than the carrying value, the Company would recognize an
impairment loss. An impairment loss would be measured by comparing the amount by
which the carrying value exceeds the fair value of the long-lived assets and
intangibles. The Company recognized no impairment losses in the
periods ended December 31, 2009 and September 30, 2010.
Income
Taxes
We are
taxed under the provisions of a Limited Liability Company of the Internal
Revenue Code. Under those provisions we do not pay federal or in many
cases state income taxes as the income tax liability is passed directly to
owners of the company.
(7)
Recent
pronouncements
On
July 1, 2009, FASB issued SFAS No. 168, “The FASB Accounting Standards
Codification and the Hierarchy of Generally Accepted Accounting Principles”,
also known as FASB Accounting Standards Codification (“ASC”) 105, “Generally
Accepted Accounting Principles” (“ASC 105”) (the Codification”). ASC 105
establishes the exclusive authoritative reference for U.S. GAAP for use in
financial statements, except for SEC rules and interpretive releases, which are
also authoritative GAAP for SEC registrants. The Codification will supersede all
existing non-SEC accounting and reporting standards. Management has determined
that adoption of this pronouncement has not material impact on the financial
statements.
The FASB
issued ASC subtopic 855-10 (formerly SFAS 165 “Subsequent
Events”), incorporating guidance on subsequent events into authoritative
accounting literature and clarifying the time following the balance sheet date
which management reviewed for events and transactions that may require
disclosure in the financial statements. The standard increased our
disclosure by requiring disclosure reviewing subsequent events. ASC
855-10 is included in the “Subsequent Events” accounting guidance.
In April
2009, the FASB issued ASC subtopic 820-10 (formerly Staff Position
No. FAS 157-4, Determining Fair Value When Volume and Level of
Activity for the Asset or Liability Have Significantly Decreased and Identifying
Transactions That Are Not Orderly”). ASC 820-10 provides guidance on how to
determine the fair value of assets and liabilities when the volume and level of
activity for the asset/liability has significantly decreased. FSP 157-4
also provides guidance on identifying circumstances that indicate a transaction
is not orderly. In addition, FSP 157-4 requires disclosure in interim and
annual periods of the inputs and valuation techniques used to measure fair value
and a discussion of changes in valuation techniques. The Company is evaluating
the effect of the adoption of FSP 157-4 and determined that it did not have
a material impact on its results of operations and financial
position.
In
July 2006, the FASB issued ASC subtopic 740-10 (formerly Interpretation No.
(“FIN”) 48, “Accounting for Uncertainty in Income Taxes”). ASC 740-10 sets
forth a recognition threshold and valuation method to recognize and measure an
income tax position taken, or expected to be taken, in a tax return. The
evaluation is based on a two-step approach. The first step requires an entity to
evaluate whether the tax position would “more likely than not,” based upon its
technical merits, be sustained upon examination by the appropriate taxing
authority. The second step requires the tax position to be measured at the
largest amount of tax benefit that is greater than 50 percent likely of being
realized upon ultimate settlement. In addition, previously recognized benefits
from tax positions that no longer meet the new criteria would no longer be
recognized. The application of this Interpretation will be considered a change
in accounting principle with the cumulative effect of the change recorded to the
opening balance of retained earnings in the period of adoption. Adoption of this
new standard did not have a material impact on our financial position, results
of operations or cash flows.
(8)
In April
2008, the FASB issued ASC 815-40 (formerly Emerging Issues Task Force (“EITF”)
07-05, "Determining whether an
Instrument (or Embedded Feature) Is Indexed to an Entity’s Own Stock").
ASC815-40 applies to any freestanding financial instruments or embedded features
that have the characteristics of a derivative, and to any freestanding financial
instruments that are potentially settled in an entity’s own common stock. ASC
815-40 is effective for financial statements issued for fiscal years beginning
after December 15, 2008. The adoption of this pronouncement did not
have a material impact on our financial position, results of operations or cash
flows.
In
June 2009, the FASB issued ASC 105 Accounting Standards
Codification TM and the
Hierarchy of Generally Accepted Accounting Principles. The FASB
Accounting Standards Codification TM (the “Codification”) has become the source
of authoritative accounting principles recognized by the FASB to be applied by
nongovernmental entities in the preparation of financial statements in
accordance with Generally Accepted Accounting Principles (“GAAP”). All existing
accounting standard documents are superseded by the Codification and any
accounting literature not included in the Codification will not be
authoritative. Rules and interpretive releases of the SEC issued under the
authority of federal securities laws, however, will continue to be the source of
authoritative generally accepted accounting principles for SEC registrants.
Effective September 30, 2009, all references made to GAAP in our
consolidated financial statements will include references to the new
Codification. The Codification does not change or alter existing GAAP and,
therefore, will not have an impact on our financial position, results of
operations or cash flows.
In June
2009, the FASB issued changes to the consolidation guidance applicable to a
variable interest entity (VIE). FASB ASC Topic 810, "Consolidation," amends the
guidance governing the determination of whether an enterprise is the primary
beneficiary of a VIE, and is, therefore, required to consolidate an entity, by
requiring a qualitative analysis rather than a quantitative analysis. The
qualitative analysis will include, among other things, consideration of who has
the power to direct the activities of the entity that most significantly impact
the entity's economic performance and who has the obligation to absorb losses or
the right to receive benefits of the VIE that could potentially be significant
to the VIE. This standard also requires continuous reassessments of whether an
enterprise is the primary beneficiary of a VIE. FASB ASC 810 also requires
enhanced disclosures about an enterprise's involvement with a VIE. Topic 810 is
effective as of the beginning of interim and annual reporting periods that begin
after November 15, 2009. This will not have an impact on the Company’s financial
position, results of operations or cash flows.
(9)
In June
2009, the FASB issued Financial Accounting Standards Codification No. 860 -
Transfers and Servicing. FASB ASC No. 860 improves the relevance,
representational faithfulness, and comparability of the information that a
reporting entity provides in its financial statements about a transfer of
financial assets; the effects of a transfer on its financial position, financial
performance, and cash flows; and a transferor's continuing involvement, if any,
in transferred financial assets. FASB ASC No. 860 is effective as of the
beginning of each reporting entity's first annual reporting period that begins
after November 15, 2009, for interim periods within that first annual reporting
period and for interim and annual reporting periods thereafter. The adoption of
FASB ASC No. 860 will not have an impact on our financial
statements.
Year end
The
Company has adopted December 31 as its year end.
Note
2 – Going Concern
The
accompanying financial statements have been prepared in conformity with
generally accepted accounting principles which contemplate continuation of the
company as a going concern. We have limited cash resources as of
September 30, 2010. In view of the matters described above,
recoverability of a major portion of the recorded asset amounts shown in the
accompanying balance sheet is dependent upon our continued operations, which in
turn is dependent upon our ability to raise additional capital and obtain
financing. The financial statements do not include any adjustments relating to
the recoverability and classification of recorded asset amounts or amounts and
classification of liabilities that might be necessary should we be unable to
continue as a going concern.
Note
3 – Acquisition and Notes Payable
In
September of 2009, we acquired assets in a transaction with an unrelated third
party. Assets acquired were $21,400 of inventory, $2,910 of fixed
assets, $4,380 in deposits on a lease we assumed less $780 in related
liabilities, $5,690 in accounts receivable, and a patent and various
intellectual property. No value was assigned to the patent and
intellectual property. We paid for the acquisition with
the issuance of $5,000 and two notes payable. Total assets acquired
were $33,600 for which we paid $5,000 and issued two notes payable in the amount
of $28,600.
The first
note payable was in the amount of $25,000. The note bears interest at
6.5% and is due in 60 monthly installments of $489.15. The note
matures in October of 2014.
As of
December 31, 2009, there was $24,291 due on the note with $4,421 of that amount
being a current liability. As of September 30, 2010, there was
$21,023 due on the note with $4,641 of that amount being a current
liability. The note is secured only by the sole patent that is owned
by RxAir.
The
second note payable was in the amount of $3,600. The note bears no
interest as long as it was paid off prior to May 12, 2010 which it
was. As of December 31, 2009, there was $2,758 due on the note with
$2,758 of that amount being a current liability. The note was paid in
full prior to September 30, 2010.
(10)
Interest
expense for the periods ended December 31, 2009 and September 30, 2010 relating
to these notes and the related party note discussed in Note 4 was $542 and
$1,134, respectively.
Note
4 – Note Payable - Related Party
In
September of 2009, we received a note payable in the amount of $15,000 from the
owner of our company. The note bears interest of 8%, is due on
demand, and is secured by all the assets of the Company. The balance
due as of December 31, 2009 was $5,238. During the nine months ended
September 30, 2010, we borrowed another $7,000 on this note. The
balance as of September 30, 2010 was $12,238.
During
the period ended December 31, 2009, the company had borrowed $6,000 under
various short-term loans with an entity owned by our owner. All of
the funds were paid back prior to December 31, 2009.
During
the nine months ended September 30, 2010, the company had borrowed $43,600 under
various short-term loans with an entity owned by our owner. All of
the funds were paid back prior to September 30, 2010.
Note
5– Members’ Equity
The
Company is 100% owned by The Red Oak Trust.
At
inception, the owner contributed $100 to the Company to begin
operations.
Note 6 – Lease Commitments and
Related Party Transactions
During
the period ended December 31, 2009 and the nine months ended September 30, 2010,
the Company leased its operating headquarters. The current lease is
for the period of May 1, 2010 to April 30, 2011 at a rate of $1,460 per
month. We have a security deposit in the amount of $4,380 on this
lease. We also rent an office under a second lease which is covered
by a lease for the period of July 1, 2010 to December 31, 2010 at a rate of $150
per month.
Future
minimum rental payments due under these two leases are $4,830 for the remainder
of 2010 and $5,840 for 2011.
Rent
expense for the periods ended December 31, 2009 and September 30, 2010 was
$4,530 and $14,500, respectively.
During
the periods ended December 31, 2009 and September 30, 2010, we had borrowed
funds from our owner and an entity owned by our owner. See Note 4 for
further details.
During
the nine months ended September 30, 2010, an entity indirectly owned by our
owner was paid $38,464 for the leasing of three employees.
(11)
Note
7 – Fair Value Measurements
The
Company adopted ASC Topic 820-10 to measure the fair value of certain of its
financial assets required to be measured on a recurring basis. The
adoption of ASC Topic 820-10 did not impact the Company’s financial condition or
results of operations. ASC Topic 820-10 establishes a fair value
hierarchy that prioritizes the inputs to valuation techniques used to measure
fair value. The hierarchy gives the highest priority to unadjusted
quoted prices in active markets for identical assets or liabilities (Level 1
measurements) and the lowest priority to unobservable inputs (Level 3
measurements). ASC Topic 820-10 defines fair value as the price that
would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants on the measurement date. A
fair value measurement assumes that the transaction to sell the asset or
transfer the liability occurs in the principal market for the asset or
liability. The three levels of the fair value hierarchy under ASC
Topic 820-10 are described below:
Level
1 – Valuations based on quoted prices in active markets for identical
assets or liabilities that an entity has the ability to access.
Level
2 – Valuations based on quoted prices for similar assets and liabilities in
active markets, quoted prices for identical assets and liabilities in markets
that are not active, or other inputs that are observable or can be corroborated
by observable data for substantially the full term of the assets or
liabilities.
Level
3 – Valuations based on inputs that are supportable by little or no market
activity and that are significant to the fair value of the asset or
liability.
The
following table presents a reconciliation of all assets and liabilities measured
at fair value on a recurring basis as of December 31, 2009:
|
Level 1
|
Level 2
|
Level 3
|
Fair Value
|
|||||||||||||
|
Cash
|
$ | 2,954 | $ | - | $ | - | $ | 2,954 | ||||||||
|
Accounts
receivable
|
- | 10,099 | - | 10,099 | ||||||||||||
|
Accounts
payable
|
- | 7,475 | - | 7,475 | ||||||||||||
|
Notes
payable
|
- 2 | 32,287 | - | 32,287 | ||||||||||||
|
Total
|
$ | 2,954 | $ | 49,861 | $ | - | $ | 52,815 | ||||||||
(12)
The
following table presents a reconciliation of all assets and liabilities measured
at fair value on a recurring basis as of September 30, 2010:
|
Level 1
|
Level 2
|
Level 3
|
Fair Value
|
|||||||||||||
|
Cash
|
$ | 5,177 | $ | - | $ | - | $ | 5,177 | ||||||||
|
Accounts
receivable
|
- | 3,946 | - | 3,946 | ||||||||||||
|
Accounts
payable
|
- | 11,715 | - | 11,715 | ||||||||||||
|
Notes
payable
|
- 2 | 33,261 | - | 33,261 | ||||||||||||
|
Total
|
$ | 5,177 | $ | 48,922 | $ | - | $ | 54,099 | ||||||||
Note
8 – Subsequent events
In
preparing these financial statements, the Company evaluated events and
transactions for potential recognition or disclosure through December 6, 2010,
the date the financial statements were issued.
(13)