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EX-32.1 - ADVANCED CREDIT TECHNOLOGIES INCact10qex321033112.htm
EX-31.1 - ADVANCED CREDIT TECHNOLOGIES INCact10qex311033112.htm


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM l0-Q
(Mark One)
[ x ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF1934 for the quarterly period ended March 31, 2012
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE AC T OF 1934 for the transition period from ________________ to ___________________.

Commission File Number. 333-170132

ADVANCED CREDIT TECHNOLOGIES INC.
(Exact name of Registrant as Specified in its Charter)
Nevada
26-2118480
(State or Other Jurisdiction of
Incorporation or Organization)
(IRS Employer
Identification No.)
   
1915 Plaza Drive
Suite 202
Eagan, Minnesota 55122
 
 
55122
(Address of principal executive offices)
(Zip Code)

Registrant's telephone number, including area code: (651) 905-2932
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. Yes [ X ] 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 during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Yes [ X ] No [ ]
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule l2b-2 of the Exchange Act. (Check one):
Large Accelerated filer [ ] Accelerated filer [ ] Non-accelerated filer [ ] Smaller reporting company [ X ]
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [ X ]
As of March 31, 2012, there were 20,751,500 shares of the issuer’s common stock outstanding.

 

 
 
1

 
 
ADVANCED CREDIT TECHNOLOGIES INC
 
FORM 10-Q
 
FOR THE FISCAL QUARTER ENDED MARCH 31, 2012
 
TABLE OF CONTENTS         
                                               PAGE #
 
PART I
4
   
ITEM 1      FINANCIAL STATEMENTS
4
   
ITEM 2     MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND  RESULTS OF OPERATIONS
11
   
ITEM 3     QUANTITATIVE AND QULAITATIVE DISCLOSURES ABOUT MARKET RISKS
13
 
 
ITEM 4     CONTROLS AND PROCEDURES
13
   
PART II
14
   
ITEM 1     LEGAL PROCEEDINGS
14
   
ITEM 1A   RISK FACTORS
14
   
ITEM 2     UNREGISTERED SALE OF EQUITY SECURITIES AND USE OF PROCEEDS
14
   
ITEM 3    DEFAULTS UP0N SENIOR SECURITIES
14
   
ITEM 4    (REMOVED AND RESERVED)
14
   
ITEM 5  OTHER INFORMATION
14
   
ITEM 6    EXHIBITS
14
   
SIGNATURES
15

 
 
2

 
 
Special Note Regarding Forward-Looking Statements
This Quarterly Report on Form 10-Q, including "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Item 2 of Part I of this report include forward-looking statements. These statements 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 forward-looking statements.

In some cases, you can identify forward-looking statements by terminology such as "may," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "proposed," "intended," or "continue" or the negative of these terms or other comparable terminology. You should read statements that contain these words carefully, because they discuss our expectations about our future operating results or our future financial condition or state other "forward-looking" information. There may be events in the future that we are not able to accurately predict or control. Before you invest in our securities, you should be aware that the occurrence of any of the events described in this Quarterly Report could substantially harm our business, results of operations and financial condition, and that upon the occurrence of any of these events, the trading price of our securities could decline and you could lose all or part of your investment. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, growth rates, levels of activity, performance or achievements. We are under no duty to update any of the forward-looking statements after the date of this Quarterly Report to conform these statements to actual results.

 

 
 
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PART I
 
ITEM 1 FINANCIAL STATEMENTS
Advanced Credit Technologies Inc
Balance Sheet
(Unaudited)
   
March-12
   
December-12
 
   
2012
   
2011
 
Assets
           
             
Current assets
           
Cash in bank
  $ 12,968       23,416  
                 
Total assets
    12,968       23,416  
                 
Liabilities and stockholders' deficit
               
                 
Current liabilities
               
Accrued expenses
    0       0  
Notes payable - Related parties
    0       0  
Accrued interest
    0       0  
Due to related parties
    0       0  
                 
Total liabilities
    0       0  
                 
Stockholders' deficit
               
Common stock 100,000,000, $.001 par value shares authorized, 20,751,500 and 20,161,000 issued
               
and outstanding respectivley for March 31, 2012 and December 31, 2011
    15,000       15,000  
                 
Additional paid-in capital
    473,554       402,554  
Common stock subscriptions received
    0       0  
Deficit accumulated during the development stage
    (475,586 )     (394,138 )
                 
Total stockholders' deficit
    12,968       23,416  
                 
Total liabilities and stockholders' deficit
  $ 12,968       23,416  

 
See notes to consolidated financial statements

 
 
4

 
 
             
Advanced Credit Technologies, Inc.
Statements of Operations
           
(Unaudited)
           
             
   
Three Months
   
Three Months
 
   
Ended
   
Ended
 
   
March 31, 2012
   
March 31, 2011
 
             
Revenues
    2,404       1,028  
Commissions paid
    0       0  
Gross margin
    2,404       1,028  
                 
Operating expenses
               
Professional fee
    15,593       1,029  
Consulting fees
    -       -  
Officer's compensation
    25,570       11,640  
Travel and entertainment
    3,037       2,481  
Rent
    1,800       1,950  
Computer and internet
    982       755  
Research and development
    15,784       3,500  
Office supplies and expenses
    4,166       3,117  
Other operating expenses
    1,920       1,227  
Total operating expenses
    68,852       25,699  
                 
Loss from operations
    (66,448 )     (24,671 )
                 
Interest expense
    0       0  
                 
Net loss
    (66,448 )     (24,671 )
                 
Earnings per share Weighted Average
    (0.003 )     (0.001 )
                 
Weighted average shares outstanding
    20,709,221       17,894,735  

 
See notes to consolidated financial statements

 
 
5

 

 
Advanced Credit Technologies
           
Statements of Cash Flows
           
(Unaudited)
           
             
   
3 Months Ending
   
3 Months Ending
 
   
March 31, 2012
   
March 31, 2011
 
Cash flows used by operating activities:
           
Net loss
    (66,448 )     (24,671 )
Adjustments to reconcile net loss to
               
  net cash provided by operations
               
Stock issued for consulting services
    0       0  
Changes in liabilities
    0       0  
Accrued expenses
    0       0  
Accrued Interest Payment
    0       0  
Accrued interest
    0       0  
                 
Net cash provided by operations
    (66,448 )     (24,671 )
                 
Cash flows from financing activities:
               
Proceeds from common stock issuance
    56,000       17,500  
Repayment of related party loans
    0       0  
Proceeds from related party loans
    0       0  
                 
Cash flows from financing activities
    56,000       17,500  
                 
Increase in cash
    (10,448 )     (7,171 )
                 
Cash – Beginning
    23,416       12,215  
                 
Cash – Ending
    12,968       5,044  
 
 
See notes to consolidated financial statements

 

 
6

 

 
NOTES TO  CONSOLIDATED FINANCIAL STATEMENTS
 

A. NATURE OF BUSINESS

Advanced Credit Technologies, Inc. (the “Company” or “ACT”) is a development stage company which has commenced operations . The Company was organized under the laws of the state of Nevada on February 25, 2008. We formed our Company for the purpose of offering an easy to- use technology platform that streamlines the credit management process. We also intend to offer additional e-books and Facebook applications for other financial products to compliment our system. We have launched our products and are generating minimal revenues. Our primary source of revenue initially will be generated business to business from the wholesale industry whereby third parties would pay us a monthly fee for access to our software which will be white labeled for them. This is intended to create brand loyalty by offering customers access to our credit management platform. Our retail portal and social media applications will take longer to generate revenue. Marketing to individual clients and individual end users requires more time and one to one communication.
 
With the ongoing problems in the overall economy ( unemployment at 9.1 % as of August 31st 2011 according to the Labor Dept. ) combined with tightening underwriting and credit criteria from those who lend monies to the public at large we are marketing a common sense solution to these problems. In October of 2011 the Company will be launching its phase II software platform as a solution to both business and consumers to assist them in understanding the credit ratings system, and offer these solutions at a very minimal cost to all parties concerned. Our current retail portal ( 700creditmd ) will be replaced by ( www.turnscor.com ) and our wholesale portal ( mycmtool ) will be replaced by ( www.turnscorpro.com ). These phase II portals not only have a new user interface but also increase  brand awareness and name recognition. In addition to the new user interface we have upgraded the software to enhance the user experience and simplify the overall process. The Company is well aware that everyone ( business owners/consumers ) learns at a different pace, which is why our phase II has a complete “Training Center” to assist the wholesale/retail users of the various products to successfully navigate the software. We have developed a personalized e-book, a complete “video” series, and finally a “live” application demonstration of the software to empower success by all those that use the application.
 
Wholesale Application: The Company has developed ( www.turnscorpro.com ) to assist large, medium, and small businesses across the country to offer a solution to clients who want to purchase a product or service but cannot due to a sub par credit rating. Most business owners have no alternative but to let these clients leave without offering a solution. The Company developed (www.turnscorpro.com) to solve this problem. By “giving” away a complimentary software license they( company ) now have an opportunity to help not only the potential client, but to get referrals from that client. In addition to that, the software gives the company the ability to communicate with them via the portal ( www.turnscorpro.com ) and offer coaching solutions to keep them on task. The Company believes that based on the difficult economy that many businesses are losing sales everyday based on the poor credit ratings of the public at large, thus opening a small window for the wholesale market. From auto, independent insurance, real estate, to mortgage lending. These companies paying a small monthly license fee to access a “white label” software (The Company software that is a licensed opportunity option that can be branded on their company’s name) to offer “free” (software access) to the public at large is the cornerstone of our wholesale model. By educating the business owner about credit and its importance to the economy at large the Company believes it will have a positive impact and be in line with its mission statement.
 
 
 
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Retail Application: The Company has developed ( www.turnscor.com ) to assist the average everyday consumer to understand the credit ratings system and the effects it has on their ability to access credit. The first thing that needed to be addressed was the regulatory framework that is the ( Fair Credit Reporting Act ) and how it affects a personal credit profile. The Company has provided links inside of the “Training Center” to all of the regulatory aspects of the (FCRA). The basic structure says that “creditors” and the 3 major reporting agencies ( Trans Union, Experian, and Equifax ) must provide a true and accurate picture of your personal credit profile, in essence, it must be 100% accurate and verifiable to stay posted in your file. This information is what determines your personal credit score ( FICO ), which determines your “cost of borrowing”. The Company software simply provides a narrative for the average consumer to understand, get access, and force the “creditors” and 3 major credit bureaus to update their credit file to reflect accurate, current data. All items that are outdated, erroneous, and not factual must be removed. Typically the FCRA allows for 30 days for this process to be completed. Once the consumer ( end user ) has access to the portal they can begin the process. The software provides the following:  ( a personalized e-book, video tutorials, and a “live” demonstration of the actual software are provided to enhance the user experience ). The first step in the process is to “access” your personal credit profile, we provide links to ( www.annualcreditreport.com ) which is sponsored by the FTC and is free, as well as ( www.mycreditkeeper.com ) which is a fee based site but gives you a comprehensive view of your personal credit profile from all 3 repositories as well as your credit scores. Complete descriptions are provided in the “Training Center” as to a consumers options and benefits. Once the consumer has accessed a copy of his/her personal credit profile they will need to identify errors, outdated information, and erroneous items and then input them into the “system”. Once this is completed the auto selection mechanism will select items to submit to the repositories ( credit bureaus )  and create all of the documentation you will need to correct your personal credit profile. The “system” will send you automated reminders on a scheduled basis so that you follow the guidelines set forth in the FCRA. The auto selection mechanism developed into the software will allow the consumer to follow a specific schedule without having to “remember” a specific date, or procedure to be compliant with the FCRA. The Company believes that this is a highly beneficial feature and will be a great benefit to the end users ( consumers ). In addition to this feature, the “Training Center” has many additional features to assist the consumer. How to set up a “monthly budget”, FAQ's, Video Library Q&A, and a direct e-mail for customer support. All in an effort to empower the average consumer to get back on track financially, and becoming a positive productive part of his/her community. In conclusion, ( www.turnscor.com ) allows the average everyday consumer to understand the ( FCRA ) and follow specific steps to remove outdated, erroneous, and inaccurate items from his/her personal credit profiles. The Company believes that providing a simple, safe, secure software platform with a basic narrative so everyone can understand the process that it will have a positive impact on our society as a whole and provide a steady stream of income for the Company.
 
We maintain a sophisticated back office component that can be accessed by anyone with minimal computer experience. Clients will see how simple the ACT software program is to use especially when compared to traditional routes of credit management. We believe this will establish a brand loyalty to any additional products we will offer in the future.


B. BASIS OF PRESENTATION
 
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States of America generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q. Accordingly, the condensed consolidated financial statements do not include all of the information and footnotes required for complete financial statements.
 
In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three  month period ended March 31, 2012 are not necessarily indicative of the results that may be expected for the year ending December 31, 2012. The  Balance Sheet as of December31, 2011 was derived from the audited financial statements as of such date, but does not include all of the information and footnotes required by GAAP. For further information, refer to the Financial Statements and footnotes thereto included in our Form 10-K as of and for the year ended December 31, 2011.
 
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Those estimates and assumptions include estimates for reserves of noncollectable accounts, accruals for potential liabilities and assumptions made in valuing stock instruments issued for services.
 
 
 
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C. GOING CONCERN
 
The accompanying financial statements have been prepared assuming the Company will continue as a going concern. During the three months ended March 31, 2012, the Company had a net loss of $66,448.00. On March 31, 2012, the Company had a working capital 12,968.00 and a stockholders’ deficiency of $473,554.00. The Company believes its cash and forecasted cash flow from operations will not be sufficient to continue operations through fiscal 2012 without continued external investment. The Company will require additional funds to continue its operations through fiscal 2012 and to continue to develop its existing projects and plans to raise such funds by finding additional investors to purchase the Company’s securities, generating sufficient sales revenue, implementing dramatic cost reductions or any combination thereof. There is no assurance that the Company will be successful in raising such funds, generating the necessary sales or reducing major costs. Further, if the Company is successful in raising such funds from sales of equity securities, the terms of these sales may cause significant dilution to existing holders of common stock. The condensed consolidated financial statements do not include any adjustments that may result from this uncertainty.

D. SIGNIFICANT ACCOUNTING POLICIES
 
Net Loss per Common Share:

Basic earnings (loss) per share is computed by dividing the net income (loss) applicable to common stockholders by the weighted average number of shares of common stock outstanding during the year.

For the three months ended March 31, 2012 and 2011 the calculations of basic loss per share were (.003) and
( .001)  for March 31, 2011 and 2010, respectively.

Recent Accounting Pronouncements
 
In May 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (ASU) No. 2011-04, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs”. ASU No. 2011-4 does not require additional fair value measurements and is not intended to establish valuation standards or affect valuation practices outside of financial reporting. The ASU is effective for interim and annual periods beginning after December 15, 2011. The Company will adopt the ASU as required. The ASU will affect the Company’s fair value disclosures, but will not affect the Company’s results of operations, financial condition or liquidity.
 
In June 2011, the FASB issued ASU No. 2011-05, “Presentation of Comprehensive Income”. The ASU eliminates the option to present the components of other comprehensive income as part of the statement of changes in shareholders’ equity, and instead requires consecutive presentation of the statement of net income and other comprehensive income either in a continuous statement of comprehensive income or in two separate but consecutive statements. ASU No. 2011-5 is effective for interim and annual periods beginning after December 15, 2011. The Company will adopt the ASU as required. It will have no affect on the Company’s results of operations, financial condition or liquidity.
 
In September 2011, the FASB issued ASU 2011-08, “Testing Goodwill for Impairment”, an update to existing guidance on the assessment of goodwill impairment. This update simplifies the assessment of goodwill for impairment by allowing companies to consider qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount before performing the two step impairment review process. It also amends the examples of events or circumstances that would be considered in a goodwill impairment evaluation. The amendments are effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. Early adoption is permitted. The Company is currently evaluating the affects adoption of ASU 2011-08 may have on its goodwill impairment testing.
 
Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the AICPA, and the Securities Exchange Commission (the "SEC") did not or are not believed by management to have a material impact on the Company's present or future consolidated financial statements.
 

 
 
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E. NOTES PAYABLE
 
The Company  has not incurred any debt during this accounting period and does not owe any debt from previous years of operation.
 
F. STOCK-BASEDCOMPENSATION
 
Our named executive officers did not exercise any options, nor did any unvested shares of stock vest, during fiscal quarter of January -  March  2012.  Our named executive officers do not have any stock options or unvested shares of stock of the Company.
 
G. LEGAL PROCEEDINGS
 
We are not currently a party to any legal proceedings.  ACT’s officers and directors have not been convicted in any criminal proceedings nor has they been permanently or temporarily enjoined, barred, suspended or otherwise limited from involvement in any type of business, securities or banking activities.

The Company’s officers and directors have not been convicted of violating any federal or state securities or commodities law.

There are no known pending legal or administrative proceedings against the Company.

H. AGREEMENTS

The company has  secured its first celebrity endorsement of the TurnScor product. Bern Nadette Stanis  has written a financial book, and has determined that TurnScor would is a viable solution in conjunction with her book. The company has  signed a joint marketing agreement and is creating a web site for her TEAM.
 

 
10

 
 

ITEM 2  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

As of March 31, 2012, the Company reported an increase in revenues compared to the period ended March 31, 2011.   The Company has experienced an increase in business.  We further expect our business to grow as corporate profits increase based on the fact that many businesses’ profits are advertising driven.

To date, the Company has successfully implemented its business plan and is attempting to secure additional funding to continue the expansion process. Management believes there is a current trend for increased advertising and web development related services based upon recent increased corporate profits.   Most businesses rely on advertising of some sort to increase their respective revenue models.  Web development and on-line marketing services are the Company’s primary sources of revenue and management expects these numbers to increase as economic growth increases.

The Company’s ability to expand operations is somewhat dependent upon capital to hire additional sales representatives without additional capital. If Company does not produce sufficient cash flow to support its operations over the next 12 months, the Company will need to raise additional capital by issuing capital stock in exchange for cash in order to continue as a going concern.  There are no formal or informal agreements to attain such financing. The Company cannot assure any investor that, if needed, sufficient financing can be obtained or, if obtained, that it will be on reasonable terms.
 
Advanced Credit Technologies  management may incur software development costs within the next 12 months.

Advanced Credit Technologies currently does not own any significant plant or equipment that it would seek to sell in the near future.  

Advanced Credit Technologies management anticipates hiring employees or independent contractors over the next 12 months as needed. Currently, the Company believes the services provided by its officers and directors appear sufficient at this time.

The Company has no plans to seek a business combination with another entity in the foreseeable future, however, may entertain strategic acquisitions in the marketing and advertising sector which compliments its business plan.
 
Operational Expenses
The operational expenses had an increase from $25,699 to $68,852 for the 1st fiscal quarter 2012 to the first fiscal
quarter 2011.  This increase was due to increase in legal filing fees of professional services, officer’s compensation and research and development costs.  Travel, rent, office supplies and expenses, and computer and internet expenses where similar in amount as compared to the two fiscal periods.

Liquidity and Capital Resources

We believe we need to raise additional capital to supplement our business expansions.  The Company’s minimum capital requirements for the next twelve (12) months is $150,000.  With current revenues, the Company is able to continue business operations and with $150,000, the Company will be able to implement its expansion model.   An additional estimated $10,000 will be required to meet the reporting requirements of the Company.  Any funding received over and above the estimated $160,000 in reporting requirements will accelerate the implementation of our expansion primarily by enabling us to hire additional sales representatives and to pay marketing and software development costs.   The Company plans to raise these funds through either debt or equity financing.
 
 
 
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Impact of Inflation
 
We believe that the rate of inflation has had negligible effect on us.  We believe we can absorb most, if not all, increased non-controlled operating costs by operating our Company in the most efficient manner possible.

Liquidity and Capital Resources

The following table sets forth our liquidity and capital resources as of March  31, 2012:
         
Cash and cash equivalents
 
$
12,968
 
Total assets
   
12,968
 
Total liabilities
   
 
Total shareholders’ (deficit)
   
12,968
 

Cash Flows from Operating Activities
 
Operating expenditures during the period covered by this report include general and administrative costs (See “Financial Statements). 

Cash Flows from Investing Activities
 
We made no investments as of March 31, 2012.
 
Cash Flows from Financing Activities
 
We have financed our operations from the issuance of equity securities.  Net cash provided by financing activities for the period January1, 2011  through March 31, 2012 was $56,000.00, which relates to the sale of shares of common stock to shareholders in private transactions exempt from registration pursuant to Rule 504 of Regulation D of the Securities Act of 1933, as amended.

Intangible Assets

There were no intangible assets during the period January 1, 2012 through March 31, 2012.

Material Commitments
 
There were no material commitments for the period January 1, 2012 through March 31, 2012.

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 effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.
 
 
 
12

 
 
Critical Accounting Policies
 
Our financial statements and accompanying notes have been prepared in accordance with United States generally accepted accounting principles applied on a consistent basis. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods.
 

We regularly evaluate the accounting policies and estimates that we use to prepare our financial statements. In general, management's estimates are based on historical experience, on information from third party professionals, and on various other assumptions that are believed to be reasonable under the facts and circumstances. Actual results could differ from those estimates made by management.

Recent Accounting Pronouncements
 
In May 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (ASU) No. 2011-04, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs”. ASU No. 2011-4 does not require additional fair value measurements and is not intended to establish valuation standards or affect valuation practices outside of financial reporting. The ASU is effective for interim and annual periods beginning after December 15, 2011. The Company will adopt the ASU as required. The ASU will affect the Company’s fair value disclosures, but will not affect the Company’s results of operations, financial condition or liquidity.
 
In June 2011, the FASB issued ASU No. 2011-05, “Presentation of Comprehensive Income”. The ASU eliminates the option to present the components of other comprehensive income as part of the statement of changes in shareholders’ equity, and instead requires consecutive presentation of the statement of net income and other comprehensive income either in a continuous statement of comprehensive income or in two separate but consecutive statements. ASU No. 2011-5 is effective for interim and annual periods beginning after December 15, 2011. The Company will adopt the ASU as required. It will have no affect on the Company’s results of operations, financial condition or liquidity.
 
In September 2011, the FASB issued ASU 2011-08, “Testing Goodwill for Impairment”, an update to existing guidance on the assessment of goodwill impairment. This update simplifies the assessment of goodwill for impairment by allowing companies to consider qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount before performing the two step impairment review process. It also amends the examples of events or circumstances that would be considered in a goodwill impairment evaluation. The amendments are effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. Early adoption is permitted. The Company is currently evaluating the affects adoption of ASU 2011-08 may have on its goodwill impairment testing. Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the AICPA, and the Securities Exchange Commission (the "SEC") did not or are not believed by management to have a material impact on the Company's present or future consolidated financial statements.

 
ITEM 3  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
 
A smaller reporting company is not required to provide the information required by this Item 3.

ITEM 4   CONTROLS AND PROCEDURES
 
We maintain disclosure controls and procedures that are designed to ensure that the information required to be disclosed in the reports that we file under the Securities Exchange Act of 1934 (the "Exchange Act") is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures.  In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can only provide reasonable assurance of achieving the desired control objectives, and in reaching a reasonable level of assurance, management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.
 
As required by SEC Rule 13a-15(b), we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of our first fiscal quarter covered by this report. Based on the foregoing, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective at the reasonable assurance level.
 
There has been no change in our internal controls over financial reporting during our first fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting.
 
 
 
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PART II
ITEM 1 LEGAL PROCEEDINGS
 
The Company is not currently involved in any legal proceedings.

ITEM 1A RISK FACTORS
 
A smaller reporting company is not required to provide the information required by this Item.
 
ITEM 2. UNREGISTERED SALE OF EQUITY SECURITIES AND USE OF PROCEEDS
 
The Company raised $56,000.00 through by the private sale of stock and use for the operations of  the Company.

ITEM 3 DEFAULTS UPON SENIOR SECURITIES
 
The  Company has no Senior Securities or any other debt related to the business.

ITEM 4 (REMOVED AND RESERVED)

ITEM 5 OTHER INFORMATION
 
NONE

ITEM 6 EXHIBITS
 
31.1
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
   
32.1**
Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
   
101.1 +
The following financial information from Advanced Credit Technology Inc  Quarterly Report on Form 10-Q for the quarter ended March  31, 2011 formatted in XBRL: (i) Consolidated Balance Sheets at March  31, 2012 and December 31, 2011; (ii) Consolidated Statement of Operations for the three and three months ended March 31, 2012 and 2011; (iii) Consolidated Statement of Stockholders’ Deficit as at March 31, 2012; (iv) Consolidated Statements of Cash Flows for the three months ended March 31, 2012 and 2011; (v) Notes to the Financial Statements.
**In accordance with SEC Release 33-8238, Exhibit 32.1 and 32.1 are being furnished and not filed.
+ Furnished herewith. XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.
 

 
 
 
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SIGNATURES
 
In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on the 9th day of May, 2012.
 
 
ADVANCED CREDIT TECHNOLOGIES, INC.
   
       
 
By:
/s/ Chris Jackson
 
   
Chris Jackson
 
   
President and Chief Operating Officer
 
       
 
Pursuant to the requirements of the Securities Act of 1933, this report has been signed by the following persons in the capacities and on the dates indicated.
 
Signature
 
Title
 
       
/s/ Chris Jackson  
 
Principal Executive Officer
 
Chris Jackson  
 
Principal Financial Officer
Principal Accounting Officer and Director
 
       
/s/ Enrico Giordano 
 
Treasurer and Director
 
Enrico Giordano 
     
       

 

 

 
 
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