---

---

U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

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

 

For the quarterly period ended January 31, 2015

 

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

 

For the transition period from

 

Commission File No. 000-53070

AFH ACQUISITION VII, INC.

(Name of registrant in its charter)

 

Delaware		42-1743424
(State or other jurisdiction of incorporation or formation)		(I.R.S. employer identification number)

 

269 S. Beverly Drive, Ste #1600, Beverly Hills, CA 90212

---

(Address of principal executive offices)

 

(310) 475-3500

---

(Registrant’s telephone number, including area code)

 

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

☒ 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 (Section 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).

☒  Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☒

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

☒  Yes ☐ No

 

State the number of shares outstanding of each of the issuer’s classes of common equity, as of March 17, 2015: 6,483,218 shares of common stock.

 

---

AFH ACQUISITION VII, Inc.

- INDEX -

 

		Page
PART I – FINANCIAL INFORMATION:
Item 1.	Financial Statements	F-1
Item 2.	Management’s Discussion and Analysis or Plan of Operation	1
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	2
Item 4.	Controls and Procedures	2
PART II – OTHER INFORMATION:
Item 1.	Legal Proceedings	3
Item 1A.	Risk Factors	3
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	3
Item 3.	Defaults Upon Senior Securities	3
Item 4.	Mine Safety Disclosures	3
Item 5.	Other Information	3
Item 6.	Exhibits	3
Signatures		4

 

 

 

 

AFH ACQUISITION VII, INC.

(A DELAWARE CORPORATION)

---

FINANCIAL REPORTS

AT

JANUARY 31, 2015

---

 

 

 

 

 

AFH ACQUISITION VII INC.
(A DELAWARE CORPORATION)
TABLE OF CONTENTS
Condensed Balance Sheet at January 31, 2015 and October 31, 2014 (Unaudited)		F-3
Condensed Statements of Operations for the Three Months Ended January 31, 2015 and 2014 (Unaudited)		F-4
Condensed Statements of Cash Flows for the Three Months Ended January 31, 2015 and 2014 (Unaudited)		F-5
Notes to Condensed Financial Statements (Unaudited)		F-6

 

 

 

 

 

PART I – FINANCIAL INFORMATION

 

AFH ACQUISITION VII, INC.
(A DELAWARE CORPORATION)
CONDENSED BALANCE SHEETS - UNAUDITED
	January 31,			October 31,
	2015			2014
ASSETS
Deferred Expense		62,695			62,695
Total Assets	$	62,695		$	62,695
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Liabilities
Accrued Expenses	$	84,717		$	84,467
Due to Parent		9,593			8,553
Total Liabilities		94,310			93,020
Stockholders’ Deficit
Preferred Stock:  $.001 Par; 20,000,000 Shares Authorized,
-0- Issued and Outstanding		—			—
Common Stock:  $.001 Par; 100,000,000 Shares Authorized;
6,483,218 and 5,000,000 Issued and Outstanding at January 31, 2015 and October 31, 2014, respectively		6,483			6,483
Additional Paid-In-Capital		2,984,953			2,984,953
Deficit		(3,023,051)			(3,021,761)
Total Stockholders’ Deficit		(31,615)			(30,325)
Total Liabilities and Stockholders’ Deficit	$	62,695		$	62,695

 

 

AFH ACQUISITION VII, INC.
(A DELAWARE CORPORATION)
CONDENSED STATEMENTS OF OPERATIONS - UNAUDITED
		For the Three Months Ended
		January 31,
	2015			2014
Revenues	$	—		$	—
Expenses
Reverse Merger Expenses		—			52,253
Legal and Professional		1,290			3,027
Office Expenses		—			36
Total Expenses	$	1,290		$	55,316
Net Loss for the Period Before Taxes	$	(1,290)		$	(55,316)
Franchise Tax	$	—		$	—
Net Loss for the Period After Taxes	$	(1,290)		$	(55,316)
Loss per Share - Basic and Diluted	$	(0.00)		$	(0.01)
Weighted Average Common Shares Outstanding		6,483,218			6,483,218

 

 

 

AFH ACQUISITION VII, INC.
(A DELAWARE CORPORATION)
CONDENSED STATEMENTS OF CASH FLOWS - UNAUDITED
		For the Three Months Ended
		January 31,
	2015			2014
Cash Flows from Operating Activities
Net Loss for the Period	$	(1,290)		$	(55,316)
Changes in Assets and Liabilities:
Accrued Expenses		250			53,865
Net Cash Flows used by Operating Activities		(1,040)			(1,451)
Cash Flows from Financing Activities
Cash Advance by (Repayment to) Parent		1,040			1,198
Net Cash Flows from Financing Activities		1,040			1,198
Net Change in Cash		—			(253)
Cash - Beginning of Period					513
Cash - End of Period	$	—		$	260
Cash Paid During the Period for:
Interest	$	—		$	—
Income Taxes	$	—		$	—

 

 

 

AFH ACQUISITION VII, INC.

(A DELAWARE Corporation)

 

 

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

 

 

Note 1 - The Company

AFH Acquisition VII, Inc., a development stage company (the “Company”), was incorporated under the laws of the State of Delaware on September 24, 2007. The Company is 57.84% owned by AFH Holding & Advisory, LLC (the “Parent”). The financial statements presented represent only those transactions of AFH Acquisition VII, Inc.

 

As a blank check company, the Company’s business is to pursue a business combination through acquisition, or merger with, an existing company. As of the date of the financial statements, the Company is not conducting negotiations with any target business. No assurances can be given that the Company will be successful in locating or negotiating with any target company.

Since inception, the Company has been engaged in organizational efforts.

 

During October of 2012, AFH Holding& Advisory, LLC (“AFH Advisory”), a major shareholder of the Company, entered into a letter of intent (the “LOI”) and subsequent amendments with two target companies. The targets expressed a reluctance to proceed forward under the terms of the LOI, as amended. As such, there is a substantial likelihood that AFH will not effect the acquisition and that the Reverse Merger will not be consummated. For this reason, AFH has decided to pursue other targets to acquire.

 

The condensed financial statements of AFH ACQUISITION VII, Inc., (the “Company”) included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in conjunction with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. The condensed balance sheet information as of October 31, 2014 was derived from the audited condensed financial statements included in Form 10-K. These condensed financial statements should be read in conjunction with the annual audited condensed financial statements and the notes thereto included in the Company’s annual report on Form 10-K for the year ended October 31, 2014, and other reports filed with the SEC.

 

The accompanying unaudited interim financial statements reflect all adjustments of a normal and recurring nature which are, in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows of the Company for the interim periods presented. The results of operations for these periods are not necessarily comparable to, or indicative of, results of any other interim period or for the fiscal year taken as a whole. Certain information that is not required for interim financial reporting purposes has been omitted.

 

Note 2 - Summary of Significant Accounting Policies

		Method of Accounting
		The Company maintains its books and prepares its financial statements on the accrual basis of accounting.

AFH ACQUISITION VII, INC.

(A DELAWARE Corporation)

 

 

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

 

 

Note 2 - Summary of Significant Accounting Policies – continued

Cash and Cash Equivalents

Cash and cash equivalents include time deposits, certificates of deposit, and all highly liquid debt instruments with original maturities of three months or less. The Company maintains cash and cash equivalents at financial institutions, which periodically may exceed federally insured amounts.

 

Loss per Common Share

Loss per common share is computed in accordance with FASB ASC 260-10, by dividing income (loss) available to common stockholders by weighted average number of common shares outstanding for each period.

 

Use of Estimates

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

 

		Organizational Costs
		Organizational costs represent management, consulting, legal, accounting, and filing fees incurred to date in the formation of the company. Organizational costs are expensed as incurred in accordance with FASB ASC 720-15.

 

		Income Taxes
		The Company accounts for income taxes in accordance with FASB ASC 740-10, using the asset and liability approach, which requires recognition of deferred tax liabilities and assets for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of such assets and liabilities. This method utilizes enacted statutory tax rates in effect for the year in which the temporary differences are expected to reverse and gives immediate effect to changes in income tax rates upon enactment. Deferred tax assets are recognized, net of any valuation allowance, for temporary differences and net operating loss and tax credit carry forwards. Deferred income tax expense represents the change in net deferred assets and liability balances.

 

AFH ACQUISITION VII, INC.

(A DELAWARE Corporation)

 

 

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

 

 

Note 2 - Summary of Significant Accounting Policies – continued

		Income Taxes - continued
		The Company's short-term and long-term deferred tax liability is based on the calculation of the deferred taxes on the Company's unrealized gain on available-for-sale securities using a 40% effective tax rate based on a 31% federal income tax rate (net of state tax deduction) combined with an 8.84% California state income tax rate. The Company recognizes a deferred tax asset (through changes in the valuation allowance) for the exact amount of the deferred tax liability.  The classification of these deferred taxes is concurrent with the classification of investments for which the unrealized gain is derived. For balance sheet presentation, current deferred tax assets and liabilities have been offset and presented as a single amount and non-current deferred tax assets and liabilities within each tax jurisdiction have been offset and presented as a single amount.
		When tax returns are filed, it is highly probable that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained.  The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions.  Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority.  The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits along with any associated interest and penalties that would be payable to the taxing authorities upon examination.  As of January 31, 2015, the Company had no unrecognized tax benefits, and the Company had no positions which, in the opinion of management, would be reversed if challenged by a taxing authority. The Company’s evaluation of tax positions was performed for those tax years which remain open to audit.  The Company may from time to time, be assessed interest or penalties by the taxing authorities, although any such assessments historically have been minimal and immaterial to the Company’s financial results.  In the event the Company is assessed interest and/or penalties, such amounts will be classified as income tax expense in the financial statements

 

 

AFH ACQUISITION VII, INC.

(A DELAWARE Corporation)

 

 

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

 

Note 2 - Summary of Significant Accounting Policies – continued

		Financial Instruments
		The Company’s financial instruments consist of cash and due to parent. Unless otherwise noted, it is management’s opinion that the Company is not exposed to significant interest, currency or credit risks arising from these financial instruments. The fair value of these financial instruments approximates their carrying value, unless otherwise noted.

		Recent Pronouncements
		The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position, or cash flow.

 

Note 3 - Equity Securities

Holders of shares of common stock shall be entitled to cast one vote for each common share held at all stockholder’s meetings for all purposes, including the election of directors. The common stock does not have cumulative voting rights.

 

The preferred stock of the Company shall be issued by the Board of Directors of the Company in one or more classes or one or more series within any class and such classes or series shall have such voting powers, full or limited, or no voting powers, and such designations, preferences, limitations or restrictions as the Board of Directors of the Company may determine, from time to time.

 

No holder of shares of stock of any class shall be entitled as a matter of right to subscribe for or purchase or receive any part of any new or additional issue of shares of stock of any class, or of securities convertible into shares of stock or any class, whether now hereafter authorized or whether issued for money, for consideration other than money, or by way of dividend.

 

In October 2012, The Company commenced a private placement offering (the “Offering”) to several accredited investors (the “Purchasers”) for up to 500,000 Shares (the “Maximum Offering”) for aggregate proceeds equal to $1,000,000 (the “Maximum Offering Amount”). On January 31, 2013, an amendment to the offering was made to increase the offering to 1,300,000 shares and proceeds of $2,600,000. As of October 31, 2013, the Company entered into subscription agreements for the issuance of 907,850 shares of common stock at a per share price of $2.00 per share for gross proceeds of $1,815,700 (the “Private Placement. The shares of our common stock sold in the Private Placement were not registered under the Securities Act of 1933, as amended (the “Securities Act”).

 

On March 26, 2013, the Company entered into an agreement to issue 167,000 shares of common stock in connection with consideration given in relation to a note with Park Place Motor Ltd. These shares were issued in May 2013 and valued at $334,000.

AFH ACQUISITION VII, INC.

(A DELAWARE Corporation)

 

 

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

 

Note 3 - Equity Securities – continued

In September 2012, the Company’s parent received $45,000 in proceeds to enter into subscription agreements for the issuance of shares of the Company’s common stock, which resulted in additional reverse merger expenses of $771,736. The shares were issued in May 2013.

 

Note 4 - Going Concern

The Company’s condensed financial statements have been presented on the basis that it is a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has reported recurring losses from operations. As a result, there is an accumulated deficit of $3,023,051 at January 31, 2015.

 

The Company’s continued existence is dependent upon its ability to raise capital or acquire a marketable company. The financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern.

Note 5 – Deferred Expenses

Deferred expenses represents funds received by the Company for reverse merger expenses that were forwarded to the parent company and which have not yet been allocated to fees incurred with the transaction described in Note A. It is expected that all funds will be used for expenses within the next year.

Note 6 – Due to Parent

Due to parent represents cash advances from AFH Holding & Advisory LLC and totaled $9,523 and $-0- as of January 31, 2015 and October 31, 2014, respectively. AFH Holding & Advisory LLC is the majority shareholder of the Company. There are no repayment terms.

Note 7 – Reverse Merger Expenses

Reverse merger expenses represent cash from the private placement offering (see Note C) which were used towards fees in relation to the LOI (see Note A). $1,200,000 of such proceeds will be kept by the parent, AFH Holding & Advisory. The $1,200,000 has been reflected as a consulting fee in the accompanying financial statements. The remaining proceeds from the Private Placement Finances will be used for expenses incurred by AFH in connection with the Private Financing, the Business Combination and all related going public expenses. The expenses incurred to date have been reflected under Reverse Merger Expenses in the accompanying financial statements with any remainder in deferred expenses.

 

 

AFH ACQUISITION VII, INC.

(A DELAWARE Corporation)

 

 

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

 

 

Note 8 – Income Taxes

The provision (benefit) for income taxes consists of the following for the three months ended January 31, 2015 and for the year ended October 31, 2014:

 

			January 31, 2015			October 31, 2014
Current	U.S.		$	—		$	—
Deferred	U.S.			—			—
Total			$	—		$	—

 

		A valuation allowance for the net deferred tax assets has been recorded as it is more likely than not that these benefits will not be realized through future operations.
		Deferred tax assets consist of the following as of January 31, 2015 and October 31, 2014:

		January 31, 2015				October 31, 2014
Net operating loss carryforward		$	(1,204,401	)		$	(1,203,887)
general business tax credit			—				—
Accrued expenses			—				—
Other			—				—
			(1,204,401	)			(1,203,887)
Valuation allowance			1,204,401				1,203,887
Total		$	—			$	$—

 

As of January 31, 2015 and October 31, 2014, the Company had net operating loss carryforwards (“NOL”) for federal and state reporting purposes of approximately $1,204,401 and $1,203,887, respectively, which expire in various years through 2035. The Federal and state tax codes provide for restrictive limitations on the annual utilization of NOLs to offset taxable income when the stock ownership of a company significantly changes, as defined.

 

AFH ACQUISITION VII, INC.

(A DELAWARE Corporation)

 

 

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

 

 

Note 8 – Income Taxes - continued

 

During the three months ended January 31, 2015 and for the year ended October 31, 2014, the valuation allowance increased by $514 and $24,442, respectively.

 

The income tax provision effective rate of 0% differs from that computed using the 31% federal income tax rate (net of state tax deduction) combined with an 8.84% California state income tax rate, due to the following:

 

		January 31, 2015				October 31, 2014
Tax benefit at statutory federal rate		$	(400	)		$	(19,019	)
State taxes, net of federal tax benefit			(114	)			(5,423	)
Increase (decrease) in valuation allowance			514				24,442
Other			—				—
Permanent Items			—				—
General business tax credit			—				—
Total		$	—			$	—

 

 

  

Item 2.

Management’s Discussion and Analysis or Plan of Operation.

 

Plan of Operation

 

The Company has not restricted its search for any specific kind of businesses, and it may acquire a business which is in its preliminary or development stage, which is already in operation, or in essentially any stage of its business life. It is impossible to predict the status of any business in which the Company may become engaged, in that such business may need to seek additional capital, may desire to have its shares publicly traded, or may seek other perceived advantages which the Company may offer.

 

In implementing a structure for a particular business acquisition, the Company may become a party to a merger, consolidation, reorganization, joint venture, or licensing agreement with another corporation or entity.

It is anticipated that any securities issued in any such business combination would be issued in reliance upon exemption from registration under applicable federal and state securities laws. In some circumstances, however, as a negotiated element of its transaction, the Company may agree to register all or a part of such securities immediately after the transaction is consummated or at specified times thereafter. If such registration occurs, it will be undertaken by the surviving entity after the Company has entered into an agreement for a business combination or has consummated a business combination. The issuance of additional securities and their potential sale into any trading market which may develop in the Company's securities may depress the market value of the Company's securities in the future if such a market develops, of which there is no assurance. However, if the Company cannot effect a non-cash acquisition, the Company may have to raise funds from a private offering of its securities under Rule 506 of Regulation D. There is no assurance the Company would obtain any such equity funding.

 

The Company will participate in a business combination only after the negotiation and execution of appropriate agreements. Negotiations with a target company will likely focus on the percentage of the Company which the target company shareholders would acquire in exchange for their shareholdings.

 

Although the terms of such agreements cannot be predicted, generally such agreements will require certain representations and warranties of the parties thereto, will specify certain events of default, will detail the terms of closing and the conditions which must be satisfied by the parties prior to and after such closing and will include miscellaneous other terms. Any merger or acquisition effected by the Company can be expected to have a significant dilutive effect on the percentage of shares held by the Company's shareholders at such time.

 

During October of 2012, AFH Holding & Advisory, LLC (“AFH Advisory”), a major shareholder of the Company, entered into a letter of intent (the “LOI”) and subsequent amendments with two target companies. The targets expressed a reluctance to proceed forward under the terms of the LOI, as amended. As such, there is a substantial likelihood that AFH will not effect the acquisition and that the Reverse Merger will not be consummated. For this reason, AFH has decided to pursue other targets to acquire.

 

Results of Operations

 

The Company has not conducted any active operations since inception, except for its efforts to locate suitable acquisition candidates. No revenue has been generated by the Company from September 24, 2007 (Inception) to January 31, 2015. It is unlikely the Company will have any revenues unless it is able to effect an acquisition or merger with an operating company, of which there can be no assurance. It is management’s assertion that these circumstances may hinder the Company’s ability to continue as a going concern. The Company’s plan of operation for the next twelve months shall be to continue its efforts to locate suitable acquisition candidates.

 

For the three months ended January 31, 2015, the Company had a net loss of $1,290, consisting of legal, accounting, audit, other professional service fees and expenses incurred in relation to the filing of the Company’s Quarterly Reports on Form 10-Q. 

For the three months ended January 31, 2014, the Company had a net loss of $55,316, consisting of legal, accounting, audit, other professional service fees and expenses incurred in relation to the filing of the Company’s Quarterly Reports on Form 10-Q and reverse merger expenses which represent cash from the private placement offering (see financial statements Note C) which were used towards fees in relation to the LOI (see financial statements Note A). $1,200,000 of such proceeds will be kept by the parent, AFH Holding & Advisory.

 

For the period from September 24, 2007 (Inception) to January 31, 2015, the Company had a net loss of $3,023,051 comprised exclusively of legal, accounting, audit, other professional service fees and other organizational costs and expenses incurred in relation to the formation of the Company, the filing of the Company’s Quarterly Reports on Form 10-Q and Annual Report on Form 10-K and reverse merger expenses which represent cash from the private placement offering (see financial statements Note C) which were used towards fees in relation to the LOI (see financial statements Note A). $1,200,000 of such proceeds will be kept by the parent, AFH Holding & Advisory.

 

Liquidity and Capital Resources

 

At January 31, 2015, the Company had no capital resources and will rely upon the issuance of common stock and additional capital contributions from shareholders to fund administrative expenses pending acquisition of an operating company.

 

Management anticipates seeking out a target company through solicitation. Such solicitation may include newspaper or magazine advertisements, mailings and other distributions to law firms, accounting firms, investment bankers, financial advisors and similar persons, the use of one or more World Wide Web sites and similar methods. No estimate can be made as to the number of persons who will be contacted or solicited. Management may engage in such solicitation directly or may employ one or more other entities to conduct or assist in such solicitation. Management and its affiliates will pay referral fees to consultants and others who refer target businesses for mergers into public companies in which management and its affiliates have an interest. Payments are made if a business combination occurs, and may consist of cash or a portion of the stock in the Company retained by management and its affiliates, or both.

 

 

The Company and/or shareholders will supervise the search for target companies as potential candidates for a business combination. The Company and/or shareholders may pay as their own expenses any costs incurred in supervising the search for a target company. The Company and/or shareholders may enter into agreements with other consultants to assist in locating a target company and may share stock received by it or cash resulting from the sale of its securities with such other consultants.

 

Due to the uncertainty of our ability to meet our operational expenses, in their report on our audited financial statements as of and for the years ended October 31, 2014 and 2013, our independent auditors included an explanatory paragraph regarding concerns about our ability to continue as a going concern. Our financial statements contain additional note disclosures describing the circumstances that led to this disclosure by our independent auditors. There is substantial doubt about our ability to continue as a going concern as we have losses for the three months ended January 31, 2015 totaling $1,290 as well as an accumulated deficit since inception amounting to $3,023,051 and negative working capital of $31,615.

 

Off-Balance Sheet Arrangements

 

The Company does not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on the Company’s financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

 

Not applicable.

 

Item 4.

Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

We maintain a system of disclosure controls and procedures designed for the purpose of ensuring that information required to be disclosed in our SEC reports is recorded, processed, summarized and reported within the time periods specified in the SEC’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.

 

As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of the Company’s management, including its Chief Executive Officer and Interim Chief Financial Officer, the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934). Based on that evaluation, our Chief Executive Officer and Interim Chief Financial Officer concluded that our disclosure controls and procedures was effective as of January 31, 2015.

 

Changes in Internal Controls.

 

There have been no significant changes to the Company’s internal controls over financial reporting that occurred during our last fiscal quarter ended January 31, 2015, that materially affected, or were reasonably likely to materially affect, our internal controls over financial reporting.

 

 

PART II – OTHER INFORMATION

Item 1.

Legal Proceedings.

 None

 

Item 1A.

Risk Factors.

 As a smaller reporting company we are not required to provide this information

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds.

 None

 

Item 3.

Defaults Upon Senior Securities.

None

 

Item 4.

Mine Safety Disclosures.

Not Applicable

 

Item 5.

Other Information.

None

 

Item 6.

Exhibits.

 

(a) Exhibits required by Item 601 of Regulation S-K.

 

Exhibit		Description
31.1		Certification of the Company’s Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, with respect to the registrant’s Report on Form 10-Q for the quarter ended January 31, 2015.*
32.1		Certification of the Company’s Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*

101.INS		XBRL Instance Document
101.SCH		XBRL Taxonomy Extension Schema Document
101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF		XBRL Taxonomy Extension Definition Linkbase Document
101.LAB		XBRL Taxonomy Extension Label Linkbase Document
101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document

* Filed Herewith

 

 

SIGNATURES

 

In accordance with 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.

 

	AFH ACQUISITION VII, INC.
Dated: March 17, 2015	By:	/s/ Amir F. Heshmatpour
		Amir F. Heshmatpour President and Director Principal Executive Officer Principal Financial Officer Principal Accounting Officer