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EX-32.1 - EXHIBIT 32.1 SECTION 906 CERTIFICATIONS - B4MC GOLD MINES INCf123111k_ex32z1.htm
EX-31.1 - EXHIBIT 31 SECTION 302 CERTIFICATIONS - B4MC GOLD MINES INCf123111k_ex31z1.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM 10-K


 X   ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended: December 31, 2011


     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from           to            


Commission File No. 33-1773NY


Heavenly Hot Dogs, Inc.

(Name of registrant in its charter)


Nevada

87-0674571

(State or other jurisdiction

(I.R.S. Employer Identification No.)

of incorporation or organization)

 


2469 E. Fort Union Blvd., Suite 214

Salt Lake City, UT 84121

(Address of principal executive offices)


Issuer’s telephone number: (801)274-1011


Securities Registered under Section 12(b) of the Exchange Act:  None.


Securities Registered under Section 12(g) of the Exchange Act:  None


Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

     Yes   X   No


Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

     Yes   X   No


Note – checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Exchange Act from their obligations under those Sections.





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        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).

   X  Yes        No


Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulations S-K (§ 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.    X .


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       

Accelerated filer      .

Non-accelerated filer        (Do not check is 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 Act).

 X  Yes        No


State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the registrant’s most recently completed second fiscal quarter.  The aggregate market value of the common stock held by non-affiliates of the Company is $132,367 based on the most recent trading price of the Company’s common stock of $.53 on June 30, 2011.


Note. – If a determination as to whether a particular person or entity is an affiliate cannot be made without involving unreasonable effort and expense, the aggregate market value of the common stock held by non-affiliates may be calculated on the basis of assumptions reasonable under the circumstances, provided that the assumptions are set forth in this Form.


APPLICABLE ONLY TO REGISTRANTS INVOLVED IN BANKRUPTCY

PROCEEDING DURING THE PRECEDING FIVE YEARS:


Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 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.

     Yes        No


(APPLICABLE ONLY TO CORPORATE REGISTRANTS)


Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date:

                          

Class

Outstanding as of February 24, 2012

Common Stock, $.001 par value

749,350


DOCUMENTS INCORPORATED BY REFERENCE


List hereunder the following documents if incorporated by reference and the Part of the Form 10-K (e.g., Part I, Part II, etc.) into which the document is incorporated: (1) Any annual report to security holders; (2) Any proxy or information statement; and (3) Any prospectus filed pursuant to Rule 424(b) or (c) under the Securities Act of 1933. The listed documents should be clearly described for identification purposes (e.g., annual report to security holders for fiscal year ended December 24, 1980).





2



PART I


ITEM 1.  BUSINESS.


Business Development


References to “we,” “us,” “our” or the “Company” in this report refer to Heavenly Hot Dogs, Inc., a Nevada corporation


History - The Company was incorporated under the laws of the State of Delaware on April 2, 1987 as BK Ventures, Inc. and was organized to create a corporate vehicle to seek and acquire a business opportunity. In March 1988, The Company completed a public offering of 15,785,667 units at $.015 per unit.  Each unit consisted of one share of common stock, three A warrants to purchase three shares of common stock at $.25 per share, and three B warrants to purchase three shares of common stock at $.05 per share. The A warrants had an expiration date of March 24, 1989, while the B warrants had an expiration date of March 24, 1990.


On May 20, 1988 the Company acquired approximately 93.4% of the outstanding shares of Heavenly Hot Dogs, Inc. (HHD), a Colorado corporation, incorporated on March 11, 1985.  On June 30, 1988 the Company agreed to issue an additional 13,464,000 shares of its common stock in exchange for the remaining 6.6% outstanding shares of HHD.  On June 3, 1988 HHD changed its name from Heavenly Hot Dogs, Inc. to HHD, Inc.  On June 7, 1988, the Company changed its name from BK Ventures, Inc. to Heavenly Hot Dogs, Inc.  As a result of the acquisition of HHD, there was a complete change in control of the Company, as HHD’s officers and directors replaced the Company’s officers and directors.


HHD operated as a subsidiary of the Company and attempted to manufacture self-contained fiberglass buildings which would provide for walk-up and drive-thru sales of premium Chicago style hot dogs and related fast food products.  The Company planned to sell franchises for the retail sale of its Chicago style hot dogs.  The Company discontinued these operations during 1990 and has been inactive since that time.  The Company is currently seeking potential business ventures. The Company is considered to have re-entered into a new development stage on January 1, 1991.  The Company’s management failed to complete annual reports with the State of Delaware and Colorado, of which both had suspended the Company’s charter with the states.


In December 1999 the sole officer and director of the Company resigned and selected new management.  In March 2000, the new management brought the Company current in its reporting with the State of Delaware, which has reinstated the Company’s charter.


In June 2000, the Company’s officers and directors resigned and selected new management. The Company also changed its domicile from Delaware to Nevada in June 2000.


In March 2001, the Company effected a one for ten thousand reverse stock split. No shareholder of record was reversed below one hundred shares. All shareholders with less than one hundred pre-split shares were not affected by the reverse.


On July 1, 2002, the Company effected a reverse acquisition with Trapper’s Pizza, Inc., a Utah corporation. Trapper’s Pizza, LLC was organized as a Limited Liability Company on February 24, 2002 in the State of Utah. On July 1, 2002 Trapper’s Pizza, LLC filed articles of conversion with the State of Utah, which dissolved the LLC and organized the corporation.


On February 18, 2003, the Company filed a lawsuit in the Third District Court in Salt Lake City, Utah, against Trapper’s Pizza, Inc., and its sole officer and director, Trabert S. Turner, to rescind the acquisition with Trapper’s Pizza, Inc., to be effective December 31, 2002, based upon materially inaccurate disclosures made prior to the acquisition during the Company’s due diligence.  On March 4, 2003, Trapper’s Pizza, Inc. and Trabert S. Turner entered into a Stipulation with the Company, agreeing to a rescission of the acquisition agreement.  A stipulated Order and Judgment was prepared and delivered for signature and entry by the Third District Court, to formally rescind the acquisition as of December 31, 2002. The Court signed the Order and Judgment on March 4, 2003.  Entry of the Order and Judgment returned the Company back to the status it was immediately prior to the reverse acquisition of Trapper’s Pizza, Inc.


As a result of the foregoing, the Company has had no business operations, and is actively seeking merger or acquisition candidates.




3



Principal Products or Services and Their Markets


None; not applicable


Competition, Competitive Position in the Industry and Methods of Competition


None; not applicable


Dependence on One or a Few Major Customers


None; not applicable


Patents, Trademarks, Licenses, Franchises, Concessions, Royalty Agreements or Labor Contracts, Including Duration


None; not applicable


Need For Any Government Approval of Principal Products or Services


None; not applicable


Effect of Existing or Probable Governmental Regulations on Business


None; not applicable


Time Spent During the Last Two Fiscal Years on Research and Development Activities


None; not applicable


Costs and Effects of Compliance with Environmental Laws (federal, state and local)


None; not applicable


Number of Total Employees and Number of Full-Time Employees


None


ITEM 1A.  RISK FACTORS.


The Company’s business is subject to numerous risk factors, including the following.


The Company has had very limited operating history and no revenues or earnings from operations. The Company has no significant assets or financial resources. The Company will, in all likelihood, sustain operating expenses without corresponding revenues, at least until the consummation of a business combination. This may result in the Company incurring a net operating loss which will increase continuously until the Company can consummate a business combination with a target company. There is no assurance that the Company can identify such a target company and consummate such a business combination.


Our proposed business plan is speculative in nature.  The success of the Company’s proposed plan of operation will depend to a great extent on the operations, financial condition and management of the identified target company. While management will prefer business combinations with entities having established operating histories, there can be no assurance that the Company will be successful in locating candidates meeting such criteria. In the event the Company completes a business combination, of which there can be no assurance, the success of the Company’s operations will be dependent upon management of the target company and numerous other factors beyond the Company’s control.




4



The Company is and will continue to be an insignificant participant in the business of seeking mergers with and acquisitions of business entities. A large number of established and well-financed entities, including venture capital firms, are active in mergers and acquisitions of companies which may be merger or acquisition target candidates for the Company. Nearly all such entities have significantly greater financial resources, technical expertise and managerial capabilities than the Company and, consequently, the Company will be at a competitive disadvantage in identifying possible business opportunities and successfully completing a business combination. Moreover, the Company will also compete with numerous other small public companies in seeking merger or acquisition candidates.


The Company has no current arrangement, agreement or understanding with respect to engaging in a merger with or acquisition of a specific business entity. There can be no assurance that the Company will be successful in identifying and evaluating suitable business opportunities or in concluding a business combination. Management has not identified any particular industry or specific business within an industry for evaluation by the Company. There is no assurance that the Company will be able to negotiate a business combination on terms favorable to the Company. The Company has not established a specific length of operating history or a specified level of earnings, assets, net worth or other criteria which it will require a target company to have achieved, or without which the Company would not consider a business combination with such business entity. Accordingly, the Company may enter into a business combination with a business entity having no significant operating history, losses, limited or no potential for immediate earnings, limited assets, negative net worth or other negative characteristics.


Our management has limited time to devote to our business.  While seeking a business combination, management anticipates devoting only a limited amount of time per month to the business of the Company. The Company’s sole officer has not entered into a written employment agreement with the Company and he is not expected to do so in the foreseeable future. The Company has not obtained key man life insurance on its officer and director. Notwithstanding the combined limited experience and time commitment of management, loss of the services of this individual would adversely affect development of the Company’s business and its likelihood of continuing operations.


The Company’s officer and director participates in other business ventures which may compete directly with the Company. Additional conflicts of interest and non-arms length transactions may also arise in the future.  Management has adopted a policy that the Company will not seek a merger with, or acquisition of, any entity in which any member of management serves as an officer, director or partner, or in which they or their family members own or hold any ownership interest.


Reporting requirements may delay or preclude an acquisition.  Section 13 of the Securities Exchange Act of 1934 (the “Exchange Act”) requires companies subject thereto to provide certain information about significant acquisitions including certified financial statements for the company acquired covering one or two years, depending on the relative size of the acquisition. The time and additional costs that may be incurred by some target companies to prepare such financial statements may significantly delay or essentially preclude consummation of an otherwise desirable acquisition by the Company. Acquisition prospects that do not have or are unable to obtain the required audited statements may not be appropriate for acquisition so long as the reporting requirements of the Exchange Act are applicable.


The Company has neither conducted, nor have others made available to it, market research indicating that demand exists for the transactions contemplated by the Company. Even in the event demand exists for a merger or acquisition of the type contemplated by the Company, there is no assurance the Company will be successful in completing any such business combination.


The Company’s proposed operations, even if successful, will in all likelihood result in the Company engaging in a business combination with only one business entity. Consequently, the Company’s activities will be limited to those engaged in by the business entity which the Company merges with or acquires. The Company’s inability to diversify its activities into a number of areas may subject the Company to economic fluctuations within a particular business or industry and therefore increase the risks associated with the Company’s operations.


Potential for being classified an Investment Company.  Although the Company will be subject to regulation under the Exchange Act, management believes the Company will not be subject to regulation under the Investment Company Act of 1940, insofar as the Company will not be engaged in the business of investing or trading in securities. In the event the Company engages in business combinations which result in the Company holding passive investment interests in a number of entities, the Company could be subject to regulation under the Investment Company Act of 1940. In such event, the Company would be required to register as an investment company and could be expected to incur significant registration and compliance costs. The Company has obtained no formal determination from the Securities and Exchange Commission as to the status of the Company under the Investment Company Act of 1940 and, consequently, any violation of such Act could subject the Company to material adverse consequences.




5



A business combination involving the issuance of the Company’s common stock will, in all likelihood, result in shareholders of a target company obtaining a controlling interest in the Company. Any such business combination may require shareholders of the Company to sell or transfer all or a portion of the Company’s common stock held by them. The resulting change in control of the Company will likely result in removal of the present officer and director of the Company and a corresponding reduction in or elimination of his participation in the future affairs of the Company.  Currently, there are no pending acquisitions, business combinations or mergers.


The Company’s primary plan of operation is based upon a business combination with a business entity which, in all likelihood, will result in the Company issuing securities to shareholders of such business entity. The issuance of previously authorized and unissued common stock of the Company would result in reduction in percentage of shares owned by the present shareholders of the Company and would most likely result in a change in control or management of the Company.


Federal and state tax consequences will, in all likelihood, be major considerations in any business combination the Company may undertake. Currently, such transactions may be structured so as to result in tax-free treatment to both companies, pursuant to various federal and state tax provisions. The Company intends to structure any business combination so as to minimize the federal and state tax consequences to both the Company and the target company; however, there can be no assurance that such business combination will meet the statutory requirements of a tax-free reorganization or that the parties will obtain the intended tax-free treatment upon a transfer of stock or assets. A non-qualifying reorganization could result in the imposition of both federal and state taxes which may have an adverse effect on both parties to the transaction.


Management of the Company will request that any potential business opportunity provide audited financial statements. One or more attractive business opportunities may choose to forego the possibility of a business combination with the Company rather than incur the expenses associated with preparing audited financial statements. In such case, the Company may choose to obtain certain assurances as to the target company’s assets, liabilities, revenues and expenses prior to consummating a business combination, with further assurances that audited financial statements would be provided after closing of such a transaction.  Closing documents relative thereto may include representations that the audited financial statements will not materially differ from the representations included in such closing documents.


Our stock is subject to the Penny Stock rules, which impose significant restrictions on the Broker-Dealers and may affect the resale of our stock.   Our stock is subject to Penny Stock trading rules, and investors will experience resale restrictions and a lack of liquidity. A penny stock is generally a stock that:


·

is not listed on a national securities exchange or Nasdaq;


·

is listed in “pink sheets” or on the NASD OTC Bulletin Board;


·

has a price per share of less than $5.00; and


·

is issued by a company with net tangible assets less than $5 million.


The penny stock trading rules impose additional duties and responsibilities upon broker-dealers and salespersons effecting purchase and sale transactions in common stock and other equity securities, including:


·

determination of the purchaser’s investment suitability;


·

delivery of certain information and disclosures to the purchaser; and


·

receipt of a specific purchase agreement from the purchaser prior to effecting the purchase transaction.


Due to the Penny Stock rules, many broker-dealers will not effect transactions in penny stocks except on an unsolicited basis.  When our common stock becomes subject to the penny stock trading rules,


·

such rules may materially limit or restrict the ability to resell our common stock, and


·

the liquidity typically associated with other publicly traded equity securities may not exist.


It is possible that a liquid market for our stock will never develop and you will not be able to sell your stock.  There is no assurance a market will be made in our stock.  If no market exists, you will not be able to sell your shares publicly, making your investment of little or no value.




6



ITEM 1B.  UNRESOLVED STAFF COMMENTS.


None.


ITEM 2.  PROPERTIES.


The Company has not had to rent office space. Our Transfer Agent, Action Stock Transfer, is allowing the Company to use its address as the Company’s mailing address, as needed, at no cost to the Company.  


ITEM 3.  LEGAL PROCEEDINGS.


The Company is not the subject of any pending legal proceedings; and to the knowledge of management, no proceedings are presently contemplated against the Company by any federal, state or local governmental agency.


Further, to the knowledge of management, no director or executive officer is party to any action in which any has an interest adverse to the Company.


ITEM 4.  (REMOVED AND RESERVED)


PART II


ITEM 5.  MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.


Market Information


During the past five years, there has been a very limited “public market” for shares of common stock of the Company.  The Company trades on the Over-the-Counter Bulletin Board under the symbol “HHDG”.



Quarter Ended


CLOSING BID

CLOSING ASK

 

High

Low

High

Low


2010



 

 


March

.06

.05

1.01

1.01


June

.06

.051

1.01

.90


September

.21

.051

.90

.75


December

.21

.20

.75

.55


2011



 

 


March

.75

.20

3.00

.54


June

.75

.53

2.00

1.01


September

.53

.53

1.22

.89


December

.53

.31

1.01

.90


The above quotations, as provided by OTC Markets Group, Inc., represent prices between dealers and do not include retail markup, markdown or commission.  In addition, these quotations do not represent actual transactions.




7



Holders


The number of record holders of the Company’s common stock as of December 31, 2011 was 906; this number does not include an indeterminate number of stockholders whose shares are held by brokers in street name.  The holders of common stock are entitled to one vote for each share held of record on all matters submitted to a vote of stockholders. Holders of the common stock have no preemptive rights and no right to convert their common stock into any other securities. There are no redemption or sinking fund provisions applicable to the common stock.


Dividends


There are no present material restrictions that limit the ability of the Company to pay dividends on common stock or that are likely to do so in the future. The Company has not paid any dividends with respect to its common stock, and does not intend to pay dividends in the foreseeable future.


Securities Authorized for Issuance Under Equity Compensation Plans


None.


Recent Sales or Purchases of Unregistered Securities


None


ITEM 6.  SELECTED FINANCIAL DATA.


Since we are a “smaller reporting company,” as defined by SEC regulation, we are not required to provide the information required by this Item.


ITEM 7.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.


FORWARD-LOOKING STATEMENTS


The statements made below with respect to our outlook for fiscal 2012 and beyond represent “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934 and are subject to a number of risks and uncertainties. These include, among other risks and uncertainties, whether we will be able to generate sufficient cash flow from our operations or other sources to fund our working capital needs, maintain existing relationships with our lender, successfully introduce and attain market acceptance of any new products, attract and retain qualified personnel both in our existing markets and in new territories in an extremely competitive environment, and potential obsolescence of our technologies.


In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “could,” “would,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “projects,” “predicts,” “potential” and similar expressions intended to identify forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by such forward-looking statements. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Also, these forward-looking statements represent our estimates and assumptions only as of the date of this report. Except as otherwise required by law, we expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained in this report to reflect any change in our expectations or any change in events, conditions or circumstances on which any of our forward-looking statements are based.  We qualify all of our forward-looking statements by these cautionary statements.


Plan of Operation


The Company is seeking to acquire assets or shares of an entity actively engaged in business which generates revenues. The Company has no particular acquisitions in mind and has not entered into any negotiations regarding such an acquisition. None of the Company’s officers, directors, promoters or affiliates have engaged in any substantive contact or discussions with any representative of any other company regarding the possibility of an acquisition or merger between the Company and such other company as of the date of this quarterly report.  The Board of Directors intends to obtain certain assurances of value of the target entity’s assets prior to consummating such a transaction.  Any business combination or transaction will likely result in a significant issuance of shares and substantial dilution to present stockholders of the Company.


The Company has, and will continue to have, no capital with which to provide the owners of business opportunities with any significant cash or other assets. However, management believes the Company will be able to offer owners of acquisition candidates



8



the opportunity to acquire a controlling ownership interest in a publicly registered company without incurring the cost and time required to conduct an initial public offering. The owners of the acquisition candidate will, however, incur significant legal and accounting costs in connection with the acquisition of a business opportunity, including the costs of preparing Form 8-K’s, 10-K’s, 10-Q’s, agreements and related reports and documents.


Liquidity and Capital Resources


The Company remains in the development stage and has experienced no significant change in liquidity or capital resources or stockholders’ equity since re-entering of development stage. The Company anticipates that it needs ten to twelve thousand dollars for the next twelve months to cover its reporting obligations. The Company’s balance sheet as of December 31, 2011, reflects total assets of $0. The Company has no cash or line of credit, other than that which present management may agree to extend to or invest in the Company, nor does it expect to have one before a merger is effected.  The Company will carry out its business plan as discussed above. The Company cannot predict to what extent its liquidity and capital resources will be diminished prior to the consummation of a business combination or whether its capital will be further depleted by the operating losses (if any) of the business entity which the Company  may eventually acquire.


Results of Operations


During the period from January 1, 2011 through December 31, 2011, the Company has engaged in no significant operations other than maintaining its reporting status with the SEC and seeking a business combination.  No revenues were received by the Company during this period.


The Company had a net loss of $16,977 for the year ended December 31, 2011 as compared to a loss of $11,845 for the period in 2010. The losses for both periods are comprised of legal, accounting, XBRL and professional expenses required to perform its reporting obligations.


The Company anticipates that until a business combination is completed with an acquisition candidate, it will not generate revenues, and may continue to operate at a loss after completing a business combination, depending upon the performance of the acquired business.


The Company received related party advances of $12,620 during the year ended December 31, 2011 and $8,045 for the same period in 2010.  A total of $79,066 is now owed by the Company for related party advances.  These funds are due and payable upon demand and have a stated interest rate of 6%. Accrued interest to-date is $16,775.


Off-Balance Sheet Arrangements


We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future material effect on our financial condition, results of operations or liquidity.


Need For Additional Financing


Based upon current management’s willingness to extend credit to the Company and/or invest in the Company until a business combination is completed, the Company believes that its existing capital will be sufficient to meet the Company’s cash needs required for the costs of compliance with the reporting requirements of the Securities Exchange Act of 1934, as amended, and for the costs of accomplishing its goal of completing a business combination, for an indefinite period of time. Accordingly, in the event the Company is able to complete a business combination during this period, it anticipates that its existing capital will be sufficient to allow it to accomplish the goal of completing a business combination. There is no assurance, however, that the available funds will ultimately prove to be adequate to allow it to complete a business combination, and once a business combination is completed, the Company’s needs for additional financing are likely to increase substantially.  In addition, as current management is under no obligation to continue to extend credit to the Company and/or invest in the Company, there is no assurance that such credit or investment will continue or that it will continue to be sufficient for future periods.




9



ITEM 7A.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.


 

Since we have no assets and do not have any investments in eligible portfolio companies there is no quantitative information, as of the end of December 31, 2011, about market risk that has any impact on our present business. Once we begin making investments in eligible portfolio companies there will be market risk sensitive instruments and we will disclose the applicable market risk information at that time.


ITEM 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.


The required financial statements are included following the signature page of this Form 10-K.


ITEM 9.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND

FINANCIAL DISCLOSURE.


The Company has had no disagreements with its certified public accountants with respect to accounting practices or procedures or financial disclosure.


ITEM 9A. CONTROLS AND PROCEDURES.  


Management’s Annual Report on Internal Control over Financial Reporting


The Company’s management is responsible for establishing and maintaining adequate internal control over financial reporting for the Company. Our disclosure controls and procedures are designed to ensure that information required to be disclosed in reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC.


Our principal executive officer and principal financial officer (one person) has assessed the effectiveness of our internal control over financial reporting as of December 31, 2011, following the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control - Integrated Framework. Based on our assessment under the framework in Internal Control - Integrated Framework, our management, including our Board of Directors and principal financial and executive officer has concluded that our internal control over financial reporting was effective as of December 31, 2011.


Evaluation of Disclosure Controls and Procedures


Our principal executive officer and principal financial officer (one person) has reviewed the effectiveness of our "disclosure controls and procedures" (as defined in the Securities Exchange Act of 1934 Rules 13a-14(c) and 15d-14(c)) as of the end of the period covered by this report and has concluded that the disclosure controls and procedures are effective to ensure that material information relating to the Company is recorded, processed, summarized, and reported in a timely manner. There were no significant changes in our internal controls or in other factors that could significantly affect these controls subsequent to the last day they were evaluated by our principal executive officer and principal financial officer.


Changes in Internal Control over Financial Reporting


There have been no changes in the Company's internal control over financial reporting during the last quarterly period covered by this report that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.


ITEM 9B. OTHER INFORMATION


No event occurred during the fourth quarter of the fiscal year ended December 31, 2011 that would have required disclosure in a report on Form 8-K.




10



PART III


ITEM 10.  DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.


Identification of Directors and Executive Officers


The following table sets forth, the names and the nature of all positions and offices held by all directors and executive officers of the Company for the year ending December 31, 2011 and to the date hereof,  and the period or periods  during which each such director or executive officer served in his or her respective positions.



Name and age


Position and background


Elwood Shepard, 74


Sole Officer and Director since June 2000



Mr. Shepard has been the General Contractor and President of Designer Construction, Inc. since 1998. Designer Construction specializes in residential and commercial remodeling. He has extensive experience in the construction field and in day-to-day management of corporations.


Term of Office


The term of office of the current directors shall continue until new directors are elected or appointed.


Involvement in Certain Legal Proceedings


During the past five years, no present or former director, person nominated to become a director, executive officer, promoter or control person of the Company:


(1) Was a general partner or executive officer of any business by or against which any bankruptcy  petition was filed, whether at the time of such filing or two years prior thereto;


(2) Was convicted in a criminal proceeding or named the subject of a pending criminal proceeding (excluding traffic violations and other minor offenses);


(3) Was the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated,  of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his involvement in any type of business, securities or banking activities; and


(4) Was the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated,  of any federal or state authority barring, suspending or otherwise limiting for more than 60 days the right of such person to engage in any activity described above under this Item, or to be associated with persons engaged in any such activity;


(5) Was found by a court of competent jurisdiction (in a civil action), the Commission or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended, or vacated.


Financial Expert


The Company has no audit committee financial expert, as defined under Section 228.401, serving on its audit committee because it has no audit committee and is not required to have an audit committee because it is not a listed security as defined in Section 240.10A-3.


Code of Ethics


We have a Code of Ethics which was adopted in 2004 and is filed as an Exhibit (incorporated by reference) to this 10-K.




11



ITEM 11.  EXECUTIVE COMPENSATION


No current or prior officer or director has received any remuneration or compensation from the Company in the past three years, nor has any member of the Company’s management been granted any option or stock appreciation right. Accordingly, no tables relating to such items have been included within this Item. None of our employees are subject to a written employment agreement nor has any officer received a cash salary since our founding.


The Summary Compensation Table shows certain compensation information for services rendered in all capacities for the fiscal periods ended December 31, 2011, 2010 and 2009. Other than as set forth herein, no executive officer's salary and bonus exceeded $100,000 in any of the applicable years. The following information includes the dollar value of base salaries, bonus awards, the number of stock options granted and certain other compensation, if any, whether paid or deferred.


  

  

Annual Compensation

  

Long Term Compensation

  

  

  

  

  

  

Awards

  

Payouts

   

Name and

Principal Position


Year


Salary

($)


Bonus

($)


Other Annual

Compensation

($)

 

Restricted Stock

Awards

($)

Securities Underlying Options SARs

(#)

 


LTIP Payouts

($)


All Other

Compensation

($)

  

  

  

  

  

  

  

  

  

  

  

Elwood Shepard

Director, President, Secretary, Treasurer

2011

-0-

-0-

-0-

 

-0-

-0-

 

-0-

-0-

2010

-0-

-0-

-0-

 

-0-

-0-

 

-0-

-0-

2009

-0-

-0-

-0-

 

-0-

-0-

 

-0-

-0-


Compensation of Directors


There are no arrangements pursuant to which any of the Company’s directors were compensated during the Company’s last completed fiscal year or the previous two fiscal years for any service provided as director.


Termination of Employment and Change of Control Arrangement


There are no compensatory plans or arrangements, including payments to be received from the Company, with respect to any former employees, officers or directors which would in any way result in payments to any such person because of his or her resignation, retirement or other termination of such person’s employment with the Company or its subsidiaries, or any change in control of the Company, or a change in the person’s responsibilities following a change in control of the Company.


ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.


Security Ownership of Certain Beneficial Owners


The following table sets forth the shareholdings of those persons who own more than five percent of the Company’s common stock as of the date hereof:


Number and Percentage of Shares Beneficially Owned


Name and Address                    


# of Shares


% of Class


Elwood Shepard                          


499,600


66.67%




12



Security Ownership of Management


The following table sets forth the shareholdings of the Company’s directors and executive officers as the date hereof:        


Number and Percentage of Shares Beneficially Owned


Name


# of Shares


% of Class



Direct


Indirect



Elwood Shepard                       


499,600


0


66.67%


All directors and executives officers as a group


499,600


0


66.67%


ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, DIRECTOR INDEPENDENCE.


Transactions with Management and Others


The Company has not had to rent office space. Our transfer agent, Action Stock Transfer, is allowing the Company to use their address as the Company’s mailing address, as needed, at no cost to the Company.  


Certain Business Relationships


The Company received advances of $12,620 in 2011 and $8,045 in 2010.  A total of $79,066 is now owed by the Company for advances.  These funds are due and payable upon demand and have a stated interest rate of 6%. Accrued interest to-date is $16,775.


Indebtedness of Management


None; not applicable


Conflicts of Interest


None of our key personnel is required to commit full time to our affairs and, accordingly, these individuals may have conflicts of interest in allocating management time among their various business activities.  In the course of their other business activities, certain key personnel may become aware of investment and business opportunities which may be appropriate for presentation to us, as well as the other entities with which they are affiliated.  As such, they may have conflicts of interest in determining to which entity a particular business opportunity should be presented.  


Each officer and director is, so long as he is an officer or director, subject to the restriction that all opportunities contemplated by our plan of operation that come to his attention, either in the performance of his duties or in any other manner, will be considered opportunities of, and be made available to us and the companies that he is affiliated with on an equal basis.  A breach of this requirement will be a breach of the fiduciary duties of the officer or director.  If we or the companies to which the officer or director is affiliated each desire to take advantage of an opportunity, then the applicable officer or director would abstain from negotiating and voting upon the opportunity.  However, the officer or director may still take advantage of opportunities if we should decline to do so.  Except as set forth above, we have not adopted any other conflict of interest policy in connection with these types of transactions


ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES.


Audit Fee


The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of Heavenly Hot Dogs, Inc.’s annual financial statement and review of financial statements included in Heavenly Hot Dogs, Inc.’s 10-Q reports and services normally provided by the accountant in connection with statutory and regulatory filings or engagements were $7,500 for fiscal year ended 2011 and $7,000 for fiscal year ended 2010.


Audit-Related Fees


The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit or review of Heavenly Hot Dogs, Inc.’s financial statements that are not reported above were $0 for fiscal year ended 2011 and $0 for fiscal year ended 2010.



13




Tax Fees


The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning were $0 for fiscal year ended 2011 and $0 for fiscal year ended 2010.


All Other Fees


The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported above were $0 for fiscal year ended 2011 and $0 for fiscal year ended 2010.


We do not have an audit committee currently serving and as a result our board of directors performs the duties of an audit committee.  Our board of directors will evaluate and approve in advance, the scope and cost of the engagement of an auditor before the auditor renders audit and non-audit services.  We do not rely on pre-approval policies and procedures.


PART IV


ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES.


(a)  Exhibits


Copies of the following documents are included as exhibits to this report.


Exhibit

No.

Title of Document

Location

3.1

Articles of Incorporation and Amendments thereto

*

3.2

By-Laws

*

4.1

Form of Stock Certificate

*

10.1

Agreement and Plan of Reorganization – Trappers Pizza

**

14.1

Code of Ethics

***

31.1

Certification of the Principal Executive Officer/ Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

Attached

32.1

Certification of the Principal Executive Officer/ Principal Financial Officer pursuant to U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002****

Attached

101.INS

XBRL Instance Document*****

Attached

101.SCH

XBRL Taxonomy Extension Schema Document*****

Attached

101.CAL

XBRL Taxonomy Extension Calculation Linkbase Document*****

Attached

101.DEF

XBRL Taxonomy Extension Definition Linkbase Document*****

Attached

101.LAB

XBRL Taxonomy Extension Label Linkbase Document*****

Attached

101.PRE

XBRL Taxonomy Extension Presentation Linkbase Document*****

Attached


*

Incorporated by reference. Filed as exhibit to S-1 Registration Statement filed September 8, 1987

**

Incorporated by reference. Filed as exhibit 99 to Form 8-K filed July 5, 2002

***

Incorporated by reference. Filed as exhibit to 2003 10-KSB filed March 30, 2004

****

The Exhibit attached to this Form 10-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to liability under that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.

*****

XBRL information is furnished and not filed for purposes of Sections 11 and 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934, and is not subject to liability under those sections, is not part of any registration statement or prospectus to which it relates and is not incorporated or deemed to be incorporated by reference into any registration statement, prospectus or other document.


(b)  Reports on Form 8-K


None


(c)  Financial Statement Schedules


None




14



SIGNATURES


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


 

HEAVENLY HOT DOGS, INC.

 

 

 

 

Date: February 24, 2012

By: /s/ Elwood Shepard     

 

Elwood Shepard,

President, Chief Executive Officer and

Chief Financial Officer

(Principal Executive Officer and

Principal Financial Officer)



Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated:



Date: February 24, 2012

By: /s/ Elwood Shepard     

 

Elwood Shepard, Director



15
















HEAVENLY HOT DOGS, INC.

[A Development Stage Company]


FINANCIAL STATEMENTS


DECEMBER 31, 2011












HEAVENLY HOT DOGS, INC.

[A Development Stage Company]





CONTENTS




PAGE



Report of Independent Registered Public Accounting Firm


F-2


Balance Sheets, December 31, 2011 and 2010


F-3


Statements of Operations, for the years ended December 31, 2011 and 2010 and from the re-entering of development stage on January 1, 1991 through December 31, 2011


F-4


Statement of Stockholders’ Equity (Deficit), from the re-entering of development stage on January 1, 1991 through December 31, 2011


F-5


Statements of Cash Flows, for the years ended December 31, 2011 and 2010 and from the re-entering of development stage on January 1, 1991 through December 31, 2011


F-6


Notes to Financial Statements


F-7







F-1













REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM




Board of Directors

Heavenly Hot Dogs, Inc.

Salt Lake City, Utah


We have audited the accompanying balance sheets of Heavenly Hot Dogs, Inc. [a development stage company] as of December 31, 2011 and 2010 and the related statements of operations, stockholders' equity (deficit) and cash flows for each of the years in the two-year period ended December 31, 2011 and for the period from the re-entering the development stage on January 1, 1991 through December 31, 2011. Heavenly Hot Dogs, Inc.’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 audits 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.  An audit 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, as well as evaluating the overall financial statement presentation.  We believe that our audits provide 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 Heavenly Hot Dogs, Inc. as of December 31, 2011 and 2010 and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2011 and for the period from the re-entering of development stage on January 1, 1991 through December 31, 2011, in conformity with accounting principles generally accepted in the United States of America.


The accompanying financial statements have been prepared assuming Heavenly Hot Dogs, Inc. will continue as a going concern. As discussed in Note 4 to the financial statements, Heavenly Hot Dogs, Inc. has incurred losses since re-entering the development stage, has a working capital deficit and has not yet established profitable operations.  These factors raise substantial doubt about the ability of the Company to continue as a going concern.  Management’s plans in regards to these matters are also described in Note 4.  The financial statements do not include any adjustments that might result from the outcome of these uncertainties.


/s/ Pritchett, Siler & Hardy, P.C.


PRITCHETT, SILER & HARDY, P.C.


Salt Lake City, Utah

February 24, 2012



F-2




HEAVENLY HOT DOGS, INC.

[A Development Stage Company]


BALANCE SHEETS


ASSETS

 

 

 

 

 

 

December 31,

 

December 31,

 

 

2011

 

2010

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

   Cash

$

-

$

-

 

 

 

 

 

      Total Current Assets

 

-

 

-

 

 

 

 

 

      Total Assets

$

-

$

-

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

   Accounts payable

$

1,600

$

1,600

   Advances payable - related party

 

79,066

 

66,446

   Accrued interest - related party

 

16,775

 

12,418

 

 

 

 

 

      Total Current Liabilities

 

97,441

 

80,464

 

 

 

 

 

STOCKHOLDERS’ DEFICIT

 

 

 

 

 

 

 

 

 

   Common stock, 750,000,000 shares authorized, $.001 par value, 749,350 shares issued and outstanding

 

749

 

749

   Capital in excess of par value

 

2,207,466

 

2,207,466

   Retained deficit

 

(2,166,215)

 

(2,166,215)

   Deficit accumulated during the development stage

 

(139,441)

 

(122,464)

 

 

 

 

 

      Total Stockholders’ Deficit

 

(97,441)

 

(80,464)

 

 

 

 

 

      Total Liabilities and Stockholders’ Deficit

$

-

$

-


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




F-3




HEAVENLY HOT DOGS, INC.

[A Development Stage Company]


STATEMENTS OF OPERATIONS


 

 

 

 

 

 

Cumulative

 

 

 

 

 

 

from the

 

 

 

 

 

 

Re-entering

 

 

 

 

 

 

of

 

 

 

 

 

 

Development

 

 

 

 

 

 

Stage on

 

 

For the Year

 

January 1,

 

 

Ended

 

1991 through

 

 

December 31,

 

December 31,

 

 

2011

 

2010

 

2011

 

 

 

 

 

 

 

Revenue

$

-

$

-

$

-

 

 

 

 

 

 

 

Total Revenue

 

-

 

-

 

-

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

     General And Administrative

 

12,620

 

8,045

 

122,666

 

 

 

 

 

 

 

Loss Before Other Income (Expense)

 

(12,620)

 

(8,045)

 

(122,666)

 

 

 

 

 

 

 

Other Income (Expense):

 

 

 

 

 

 

     Interest Expense

 

(4,357)

 

(3,800)

 

(16,775)

 

 

 

 

 

 

 

Loss Before Income Taxes

 

(16,977)

 

(11,845)

 

(139,441)

 

 

 

 

 

 

 

Current Income Tax Expense

 

-

 

-

 

-

 

 

 

 

 

 

 

Deferred Income Tax Expense

 

-

 

-

 

-

 

 

 

 

 

 

 

Net Loss

$

(16,977)

$

(11,845)

$

(139,441)

 

 

 

 

 

 

 

Loss Per Common Share – Basic and Diluted

$

(0.02)

$

(0.02)

 

 

 

 

 

 

 

 

 

Weighted Average Number Of Common Shares Outstanding – Basic and Diluted

 

749,350

 

749,350

 

 


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




F-4




HEAVENLY HOT DOGS, INC.

 [A Development Stage Company]


STATEMENT OF STOCKHOLDERS’ EQUITY (DEFICIT)

FROM THE RE-ENTERING OF DEVELOPMENT STAGE ON

JANUARY 1, 1991 THROUGH DECEMBER 31, 2011


 

 

 

 

Deficit Accumulated During the Development  

 

Common Stock

Capital in Excess of  

Retained  

Treasury Stock

 

Shares

Amount ($)

Par Value ($)

Deficit ($)

Stage ($)

Shares

Amount ($)

BALANCE, January 1, 1991

37,933

38

2,193,740

(2,166,215)

-

(1,575)

(27,563)

Net loss for the period ended December 31, 1991

-

-

-

-

-

-

-

BALANCE, December 31, 1991

37,933

38

2,193,740

(2,166,215)

-

(1,575)

(27,563)

Net loss for the year ended December 31, 1992

-

-

-

-

-

-

-

BALANCE, December 31, 1992

37,933

38

2,193,740

(2,166,215)

-

(1,575)

(27,563)

Net loss for the year ended December 31, 1993

-

-

-

-

-

-

-

BALANCE, December 31, 1993

37,933

38

2,193,740

(2,166,215)

-

(1,575)

(27,563)

Net loss for the year ended December 31, 1994

-

-

-

-

-

-

-

BALANCE, December 31, 1994

37,933

38

2,193,740

(2,166,215)

-

(1,575)

(27,563)

Net loss for the year ended December 31, 1995

-

-

-

-

-

-

-

BALANCE, December 31, 1995

37,933

38

2,193,740

(2,166,215)

-

(1,575)

(27,563)

Net loss for the year ended December 31, 1996

-

-

-

-

-

-

-

BALANCE, December 31, 1996

37,933

38

2,193,740

(2,166,215)

-

(1,575)

(27,563)

Net loss for the year ended December 31, 1997

-

-

-

-

-

-

-

BALANCE, December 31, 1997

37,933

38

2,193,740

(2,166,215)

-

(1,575)

(27,563)

Net loss for the year ended December 31, 1998

-

-

-

-

-

-

 

BALANCE, December 31, 1998

37,933

38

2,193,740

(2,166,215)

-

(1,575)

(27,563)

Net loss for the year ended December 31, 1999

-

-

-

-

-

-

 

BALANCE, December 31, 1999

37,933

38

2,193,740

(2,166,215)

-

(1,575)

(27,563)

Common stock  issued for services rendered valued at $30,000 or $1.00 per share, April 2000

30,000

30

29,970

-

-

-

-

Common stock issued  for services rendered valued at $7,000, or  $1.00 per share, June 2000

7,000

7

6,993

-

-

-

-

Net loss for the year ended   December 31, 2000

-

-

-

-

(41,000)

-

-

BALANCE, December 31, 2000

74,933

75

2,230,703

(2,166,215)

(41,000)

(1,575)

(27,563)

Common stock issued as part of reverse stock split, March 2001

175,992

176

(176)

-

-

-

-

Common stock issued for services rendered valued at $5,000, or  $.01 per share,  March 2001

500,000

500

4,500

-

-

-

-

Cancellation of treasury stock, August 2001

(1,575)

(2)

(27,561)

-

-

1,575

27,563

Net loss for the year ended  December 31, 2001

-

-

-

-

(13,146)

-

-

BALANCE, December 31, 2001

749,350

749

2,207,466

(2,166,215)

(54,146)

-

-

Net loss for the year ended  December 31, 2002

-

-

-

-

(5,271)

-

-

BALANCE, December 31, 2002

749,350

749

2,207,466

(2,166,215)

(59,417)

-

-

Net loss for the year ended  December 31, 2003

-

-

-

-

(4,710)

-

-

BALANCE, December 31, 2003

749,350

749

2,207,466

(2,166,215)

(64,127)

-

-

Net loss for the year ended December 31, 2004

-

-

-

-

(5,422)

-

-

BALANCE, December 31, 2004

749,350

749

2,207,466

(2,166,215)

(69,549)

-

-

Net loss for the year ended December 31, 2005

-

-

-

-

(4,410)

-

-

BALANCE, December 31, 2005

749,350

749

2,207,466

(2,166,215)

(73,959)

-

-

Net loss for the year ended December 31, 2006

-

-

-

-

(7,772)

-

-

BALANCE, December 31, 2006

749,350

749

2,207,466

(2,166,215)

(81,731)

-

-

Net loss for the year ended December 31, 2007

-

-

-

-

(8,972)

-

-

BALANCE, December 31, 2007

749,350

749

2,207,466

(2,166,215)

(90,703)

-

-

Net loss for the year ended December 31, 2008

-

-

-

-

(9,495)

-

-

BALANCE, December 31, 2008

749,350

749

2,207,466

(2,166,215)

(100,198)

-

-

Net loss for the year ended December 31, 2009

-

-

-

-

(10,421)

-

-

BALANCE, December 31, 2009

749,350

749

2,207,466

(2,166,215)

(110,619)

-

-

Net loss for the year ended December 31, 2010

-

-

-

-

(11,845)

-

-

BALANCE, December 31, 2010

749,350

749

2,207,466

(2,166,215)

(122,464)

-

-

Net loss for the year ended December 31, 2011

-

-

-

-

(16,977)

-

-

BALANCE, December 31, 2011

749,350

749

2,207,466

(2,166,215)

(139,441)

-

-


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



F-5




HEAVENLY HOT DOGS, INC.

[A Development Stage Company]


STATEMENTS OF CASH FLOWS


 

 

 

 

 

 

Cumulative

 

 

 

 

 

 

from the

 

 

 

 

 

 

Re-entering

 

 

 

 

 

 

of

 

 

 

 

 

 

Development

 

 

 

 

 

 

Stage on

 

 

For the Year

 

January 1,

 

 

Ended

 

1991 through

 

 

December 31,

 

December 31,

 

 

2011

 

2010

 

2011

 

 

 

 

 

 

 

Cash Flows From Operating Activities:

 

 

 

 

 

 

Net loss

$

(16,977)

$

(11,845)

$

(139,441)

Adjustments to reconcile net loss to

 

 

 

 

 

 

  net cash used by operating activities:

 

 

 

 

 

 

Non-cash expense

 

-

 

-

 

42,000

Changes in assets and liabilities:

 

 

 

 

 

 

Increase in accounts payable

 

-

 

-

 

1,600

Increase in accrued interest

 

4,357

 

3,800

 

16,775

Net Cash (Used) by Operating Activities

 

(12,620)

 

(8,045)

 

(79,066)

 

 

 

 

 

 

 

Cash Flows From Investing Activities:

 

 

 

 

 

 

Net Cash (Used) by Investing Activities

 

-

 

-

 

-

 

 

 

 

 

 

 

Cash Flows From Financing Activities:

 

 

 

 

 

 

    Advances – related party

 

12,620

 

8,045

 

79,066

Net Cash Provided by Financing Activities

 

12,620

 

8,045

 

79,066

 

 

 

 

 

 

 

Net Increase in Cash

 

-

 

-

 

-

 

 

 

 

 

 

 

Cash at Beginning of the Period

 

-

 

-

 

-

 

 

 

 

 

 

 

Cash at End of the Period

$

-

$

-

$

-

 

 

 

 

 

 

 

Supplemental Disclosures of Cash Flow Information:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash paid during the period for:

 

 

 

 

 

 

Interest

$

-

$

-

$

-

Income taxes

$

                 -

$

                 -

$

-


Supplemental Schedule of Noncash Investing and Financing Activities:


For 2011:

None.


For 2010:

None.




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






F-6




HEAVENLY HOT DOGS, INC.

[A Development Stage Company]


NOTES TO FINANCIAL STATEMENTS


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


Organization – Heavenly Hot Dogs, Inc. (“the Company”) was organized under the laws of the State of Delaware on April 2, 1987.  In June 2000, the Company changed its domicile from Delaware to Nevada.  The Company attempted to sell franchises for the retail sale of its Chicago style hot dogs. The Company discontinued these operations during 1990 and had been inactive since that time until its acquisition of Trapper’s Pizza, Inc. on July 1, 2002. In March 2003, the Company rescinded the acquisition of Trapper’s Pizza, Inc. The Company currently has no ongoing operations and is considered to be a development stage company as defined by ASC Topic No. 270.


Restatement / Rescinded Acquisition - On July 1, 2002, the Company entered into an acquisition agreement with Trapper’s Pizza, Inc. The Company issued 3,000,000 shares of common stock for all of the outstanding shares of Trapper’s Pizza, Inc. In March 2003, the Company and Trapper’s Pizza, Inc. agreed to rescind the acquisition agreement. The Company received and cancelled the previously issued 3,000,000 shares of common stock and has excluded all transactions involving Trapper’s Pizza, Inc. from these financial statements.


Cash and Cash Equivalents - The Company considers all highly liquid debt investments purchased with a maturity of three months or less to be cash equivalents.


Income Taxes - The Company accounts for income taxes in accordance with ASC Topic No. 740, “Accounting for Income Taxes” [See Note 2].


The Company adopted the provisions of ASC Topic No. 740, “Accounting for Income Taxes”, on January 1, 2007. As a result of the implementation of ASC Topic No. 740, the Company recognized approximately no increase in the liability for unrecognized tax benefits.


The Company has no tax positions at December 31, 2011 and 2010 for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility.


The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses.  During the years ended December 31, 2011 and 2010, the Company recognized no interest and penalties.  The Company had no accruals for interest and penalties at December 31, 2011, and 2010. All tax years starting with 2008 are open for examination.


Loss Per Share - The computation of loss per share is based on the weighted average number of shares outstanding during the period presented in accordance with ASC Topic No. 260, “Earnings Per Share” [See Note 6].


Accounting Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures 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 estimated by management.


Recently Enacted Accounting Standards – The FASB established the Accounting Standards Codification (“Codification” or “ASC”) as 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 in the United States (“GAAP”).  Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) issued under authority of federal securities laws are also sources of GAAP for SEC registrants.  Existing GAAP was not intended to be changed as a result of the Codification, and accordingly the change did not impact our financial statements.  The ASC does change the way the guidance is organized and presented.


Accounting Standards Update (“ASU”) No. 2009-2 through ASU No. 2011-12 contain technical corrections to existing guidance or affect guidance to specialized industries or entities were recently issued.  These updates have no current applicability to the Company or their effect on the financial statements would not have been significant.






F-7




 HEAVENLY HOT DOGS, INC.

[A Development Stage Company]


NOTES TO FINANCIAL STATEMENTS


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued


Restatement – In March 2001, the Company effected a 1 for 10,000 reverse stock split. The financial statements have been restated, for all the periods presented, to reflect the stock split [See Note 5].


NOTE 2 - INCOME TAXES


The Company accounts for income taxes in accordance with ASC Topic No. 740, “Income Taxes.” ASC Topic No. 740, requires the Company to provide a net deferred tax asset/liability equal to the expected future tax benefit/expense of temporary reporting differences between book and tax accounting methods and any available operating loss or tax credit carryforwards.


The Company has available at December 31, 2011, unused operating loss carryforwards of approximately $98,400, which may be applied against future taxable income and which expire in various years through 2031. However, if certain substantial changes in the Company’s ownership should occur, there could be an annual limitation on the amount of net operating loss carryforward which can be utilized. The amount of and ultimate realization of the benefits from the operating loss carryforwards for income tax purposes is dependent, in part, upon the tax laws in effect, the future earnings of the Company and other future events, the effects of which cannot be determined.  Because of the uncertainty surrounding the realization of the loss carryforwards the Company has established a valuation allowance equal to the tax effect of the loss carryforwards (approximately $14,800 and $12,200, respectively) at December 31, 2011 and 2010 and, therefore, no deferred tax asset has been recognized for the loss carryforwards.  The change in the valuation allowance is approximately $2,600 for the year ended December 31, 2011.


NOTE 3 - RELATED PARTY TRANSACTIONS


Management Compensation – The Company did not pay any compensation to its officers and directors during the years ended December 31, 2011 and 2010.


Office Space - The Company has not had to rent office space.  Our transfer agent, Action Stock Transfer, is allowing the Company to use its address as the Company’s mailing address, as needed, at no cost to the Company.


Advances Payable – The Company received advances of $12,620 in 2011 and $8,045 in 2010.  A total of $79,066 and $66,446 was owed at December 31, 2011 and 2010 by the Company for advances.  These funds are due and payable upon demand and have a stated interest rate of 6%.  Accrued interest to date was $16,775 and $12,418 at December 31, 2011 and 2010.


NOTE 4 – GOING CONCERN


The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate continuation of the Company as a going concern.  However, the Company has no on-going operations and has incurred losses since re-entering into a new development stage on January 1, 1991.  Further, the Company has no working capital to pay its expenses and has current liabilities in excess of current assets.  These factors raise substantial doubt about the ability of the Company to continue as a going concern.  In this regard, management is proposing to raise any necessary additional funds not provided by operations through loans or through sales of its common stock or through a possible business combination with another company.  There is no assurance that the Company will be successful in raising this additional capital or achieving profitable operations. The financial statements do not include any adjustments that might result from the outcome of these uncertainties.




F-8




HEAVENLY HOT DOGS, INC.

[A Development Stage Company]


NOTES TO FINANCIAL STATEMENTS


NOTE 5 – CAPITAL STOCK


Common stock – The Company has authorized 750,000,000 shares of common stock, $.001 par value. At December 31, 2011, the Company had 749,350 shares issued and outstanding.


In August 2001, the Company cancelled 1,575 shares of common stock which had been previously repurchased for $27,563, or $17.50 per share.


During March 2001, the Company issued 500,000 shares of its previously authorized but unissued common stock for services rendered, valued at $5,000, or $.01 per share.


In March 2001, the Company effected a 10,000 for 1 reverse stock split. Any shareholder with less than 100 shares of pre-split common stock was not affected. For shareholders with less than 100 post-split shares, the Company issued 175,992 shares of its previously authorized but unissued common stock bringing them to a minimum of 100 shares.  The financial statements for all periods presented have been restated to reflect the stock split.


In June 2000, the Company issued 7,000 shares of its previously authorized but unissued common stock to an officer for services rendered, valued at $7,000, or $1.00 per share.


During April 2000, the Company issued 30,000 shares of its previously authorized but unissued common stock for services rendered, valued at $30,000, or $1.00 per share.


NOTE 6 – LOSS PER SHARE


The following data show the amounts used in computing loss per share and the effect on income and the weighted average number of shares of dilutive potential common stock for the years ended December 31, 2011 and 2010:


 

 

For the Year Ended December 31,

 

 

2011

 

2010

Loss from continuing operations available

to common stockholders (numerator)

$

(16,977)

$

(11,845)

 

 

 

 

 

Weighted average number of common

shares outstanding  used in loss per share

during the period (denominator)

 

749,350

 

749,350

                

Dilutive loss per share was not presented, as the Company had no common equivalent shares for all periods presented that would affect the computation of diluted loss per share.


NOTE 7 - SUBSEQUENT EVENT


The Company has evaluated subsequent events from the balance sheet date through the date the financial statements were issued and determined there were no items to report.



F-9