Attached files
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EX-32.2 - Tia IV, Inc | v170601_ex32-2.htm |
EX-32.1 - Tia IV, Inc | v170601_ex32-1.htm |
EX-31.1 - Tia IV, Inc | v170601_ex31-1.htm |
EX-31.2 - Tia IV, Inc | v170601_ex31-2.htm |
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
10-K
(Mark One)
x
|
ANNUAL
REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
For the
fiscal year ended: September 30, 2009
¨
|
TRANSITION
REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
For the
transition period from ________ to ________
Commission
File No. 000-52288
TIA
IV, INC.
|
Name
of Small Business Issuer in its
Charter
|
Delaware
|
76-0836770
|
|||
State
or other jurisdiction of
incorporation
or organization
|
I.R.S.
Employer Identification
No.
|
1761 Victory Blvd.,
|
10314
|
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Issuer’s
telephone number: (718) 442-6272
Securities
registered under Section 12(b) of the Exchange Act:
None
Securities
registered under Section 12(g) of the Exchange Act:
Common Stock, par value
$0.0001 per share
(Title of
Class)
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 Exchange Act. ¨ Yes x No
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 if disclosure of delinquent filers pursuant to Item 405 of
Regulation 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 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 x
|
(Do
not check if a smaller reporting company)
|
Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act). ¨ Yes
x
No
The
aggregate market value of the voting and non-voting common equity held by
non-affiliates of Tia IV, Inc. (consisting solely of 21,636,483 shares of common
stock, $0.0001 par value) was approximately $2,164 based on the par value of
such common stock ($000.1) as of September 30, 2009.
APPLICABLE
ONLY TO REGISTRANTS INVOLVED IN BANKRUPTCY
PROCEEDINGS
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. Not Applicable
(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.At December 31, 2009 there were
165,186,483 shares of common stock outstanding.
DOCUMENTS
INCORPORATED BY REFERENCE
None,
except for the following (i) 8K/A filed on October 27, 2009 as relates to
Securities Purchase Agreement; (ii) 8K/A filed on October 16, 2009 as relates to
Change of Certifying Accountant; and (iii) 8K/A filed December 22, 2009 as
relates to Unregistered Sales of Equity Securities.
Table of
Contents
PART
I
|
3
|
|
Item
1.
|
Business
|
3 |
Item
1A
|
Risk
Factors
|
6
|
Item
1B
|
Unresolved
Staff Comments
|
8 |
Item
2.
|
Properties
|
9
|
Item
3.
|
Legal
Proceedings
|
9
|
Item
4.
|
Submission
of Matters to a Vote of Security Holders
|
9
|
PART
II
|
9 | |
Item
5.
|
Market
for Registrant’s Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities
|
9 |
Item
6.
|
Selected
Financial Data
|
10
|
Item
7.
|
Management
Discussion and Analysis of Financial Condition and Results of
Operations
|
10 |
Item
7A.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
14
|
Item
8.
|
Financial
Statements and Supplementary Data
|
14
|
Item
9.
|
Changes
in and Disagreements with Accountants on Accounting and Financial
Disclosure
|
15 |
Item
9A(T)
|
Controls
and Procedures
|
15
|
Item
9B.
|
Other
Information
|
16
|
PART
III
|
16
|
|
Item
10.
|
Directors,
Executive Officers, Corporate Governance
|
16
|
Item
11.
|
Executive
Compensation
|
19
|
Item
12.
|
Security
Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters
|
20 |
Item
13.
|
Certain
Relationships and Related Transactions, and Director
Independence
|
20 |
Item
14.
|
Principal
Accountant Fees and Services
|
20
|
PART
IV
|
||
Item
15.
|
Exhibits
and Financial Statement Schedules
|
21
|
Signatures
|
22
|
2
PART
I
Forward-Looking
Statements
This
annual report on Form 10-K, any press releases and any information provided
periodically in writing or verbally by our officers or our agents contain
statements which constitute forward-looking statements. The words “may”,
“would”, “could”, “will”, “expect”, “estimate”, “anticipate”, “believe”,
“intend”, “plan”, “goal”, and similar expressions and variations thereof are
intended to specifically identify forward-looking statements. These statements
appear in a number of places in this Form 10-K and include all statements that
are not statements of historical fact regarding the intent, belief or current
expectations of us, our directors or our officers, with respect to, among other
things: (i) our liquidity and capital resources; (ii) our financing
opportunities and plans; (iii) our ability to generate revenues; (iv) market and
other trends affecting our future financial condition or plan of operation; and
(v) our growth and operating strategy.
Investors
and prospective investors are cautioned that any such forward-looking statements
are not guarantees of future performance and involve risks and uncertainties,
and that actual results may differ materially from those projected in the
forward-looking statements as a result of various factors. The factors that
might cause such differences include, among others, those set forth in Part II,
Item 7 of this annual report on Form 10-K, entitled “Management’s Discussion and
Analysis or Plan of Operation”, and including, without limitation, the “Risk
Factors” beginning on page 5 of this annual report. Except as required by law,
we undertake no obligation to update any of the forward-looking statements in
this Form 10-K after the date of this report.
ITEM
1. BUSINESS
Tia IV,
Inc. (the "Company", “We, “Our”, "Registrant”, or “National
Mitigation Specialists" or “NMS”) was incorporated in the State of Delaware on
August 17, 2006. From inception to August 2008, the Company had been engaged in
organizational efforts and obtaining initial financing. On August 20, 2008 we
entered into and consummated a Securities Purchase Agreement (“SPA”). Under the
terms of the Purchase Agreement, Ralph Porretti, Jim McAlinden and Peter Ng
acquired 13,500,000 common shares of the Company at $.0001 per share. Mr.
Porretti is the Company’s current Chief Executive Officer and Director; Mr.
McAlinden is the Company’s current President, Chief Financial Officer, and
Director; Mr. NG is the Company’s current Secretary, Vice President and
Director. Mrs. Mary Passalaqua, our sole officer, director and
shareholder before consummation of the SPA submitted her resignation letter that
became effective after the consummation of the SPA. The current
officers and directors are those persons indicted in Item 10
hereof. Our certificate of incorporation and by-laws continues to be
those of the Company. We are governed by the corporate law of the State of
Delaware. The Company began operating as d/b/a National Mitigation
Specialists.
GENERAL
OVERVIEW
National
Mitigation Specialists is a financial advisory firm dedicated to assisting both
homeowners and financial mortgage institutions in the prevention of property
foreclosures.
3
Mission
The
Company hopes to achieve this goal by marketing the first integrated debt
mitigation package that provides, under the umbrella of the National Mitigation
Specialists brand name, both mortgage and unsecured debt (credit cards and
credit lines) modification services. This stands in contrast to the current
industry practice of focusing solely on mortgage mitigation, which fails to
address the homeowner’s total financial burden and offers the lending
institutions only a partial assessment of the risks involved.
Target
The
Company currently pursues a geographic rollout strategy focusing initially on
the Eastern region of the US, i.e., New York, Boston, Washington, D.C. and
Florida and then expanding into the balance of the top foreclosure markets. Key
targets will be cities and counties with the highest foreclosure and
unemployment rates.
Method
of Operation
a.
|
Strategic
Alliances with Mortgage
Institutions:
|
To
reinforce its marketing/distribution efforts and strengthen its brand awareness
and authority image, NMS has developed relationships with the Mitigation and
Underwriting Departments of key Financial Lending Institutions in the mortgage
field.
b.
|
Businesss/Revenue
Model:
|
NMS
intends to and has been generating its revenues directly from clients seeking
loan modification services. The price is $2,750 per modification
program. Once an analysis is completed of the client’s financial
condition, NMS renegotiates loan amounts and new payment schedules with the
effected mortgage lenders and/or credit card companies. The sales
core of the NMS business model will be a 100 seat national call
center. Its location will be selected on an opportunistic basis with
maintenance of a low overhead a key decision factor.
c.
|
Home
Owners in Foreclosure - Summary Plan of
Action;
|
i.
|
NMS
consultants contact client, review financials and prepare modification
program
|
ii.
|
Call
center fields queries and refers them to NMS consultants;
and
|
iii.
|
NMS
consultants contact mortgage lenders and credit card companies to
renegotiate debt and monthly
payments.
|
d.
|
The
Mortgage Modification Process
|
1.
|
Initial Consultation –
The Call Center fields inquiries and alerts the Company. A NMS
Consultant calls the prospect at no cost and obtains basic details of the
foreclosure situation to determine if its modification services are
applicable and whether the prospect wants to make use of
them.
|
4
2.
|
Post Assessment &
Evaluation –The Prospect hires NMS and a determination is made as
to the best approach to take to resolve his/her financial
problems. Part of this determination is the evaluation of a
hardship letter prepared by the Client explaining the cause of his/her
financial difficulties. This is supported by a detailed
analysis of the Client’s situation including a rundown of his/her expenses
and income.
|
3.
|
Lender Notification –
At this stage of the process the Client’s lender is
contacted. Once the lender accepts NMS as an intermediary, the
NMS Consultant begins to work directly with the lender to get the debt
relief that is needed to avoid
foreclosure.
|
4.
|
Documentation
Preparation – NMS puts together a total financial profile of the
Client for submission to the
lender.
|
5.
|
Proposal Submission –
At this state NMS submits the Client’s financial profile to the lender for
review and consideration.
|
6.
|
Negotiations – Here NMS
negotiates with the lender to find the best possible financial payment
plan to avoid a foreclosure. The Client is kept totally in the
loop during this process to insure that the final terms of the
negotiations are acceptable. The lending institution should
welcome the professional approach that NMS takes at this point in the
modification process and normally accepts the deal as suggested or
modified. This allows for the property owner to maintain
his/her payments current and keeps the bank’s liquidity
flowing.
|
7.
|
Resolution – NMS
presents the Client with the agreed upon solution and necessary documents
from the lender to sign.
|
Reporting
Company/Restricted Stock Issuance
We are a
reporting company under Section 12(g) of the Securities Exchange Act of 1934, as
amended (“ Exchange Act”) and we are current in our reporting under the Exchange
Act.
Each of
our shares issued in the SPA is restricted stock, and the holder thereof may not
sell, transfer or otherwise dispose of such shares without registration under
the Securities Act of 1933, as amended (the“ Securities Act ”) or an available
exemption therefrom. No registration statement covering these securities has
been filed with the Securities and Exchange Commission (the “ SEC ”) or with any
state securities commission. See also Form 8K/A filed December 22,
2009.
Competition
Competition
in our industry is intense and most of our competitors have greater financial
and other resources than do we. Competition will come from a wide variety of
debt mitigation firms many of which have more employees, finances and other
resources and greater name recognition that we do.
5
Additionally
due to the current financial situation in the U.S. regarding both mortgage
defaults and credit card defaults numerous companies have been offering their
services to persons in default through constant and enumerable radio
broadcasts.
Intellectual
Property
There are
no patents or trademarks.
Employees
In addition to the Company’s three
officers and directors, the Company retains the services of fourteen additional
employees. Nine employees are sales consultants and five are mortgage and
debt negotiators.
Advertising
We spent
$61,334 for the fiscal year ended September 30, 2009 on TV, mailing lists and
newspaper advertising.
Revenue,
Clientele and Manner of Payment
Revenues
for fiscal year ended September 30, 2009 amounted to $159,013 of which $146,738
related to mitigation services while $12,270 related to debt
negotiation. During such fiscal year, we had approximately seventy
resolution s with lenders on behalf of our clients.The majority of resolutions
received were on behalf of customers located in New York
and New Jersey. Payments by such customers to us were made by check,
post dated check and credit cards.
Website
Further
information regarding our current and proposed activities may be found on our
website: www.nmspecialists.com
which provides information relating to our Company, its integrated debt
modification programs and debt negotiation and what we believe to be customer
benefits.
ITEM
1A. RISK FACTORS
1.
|
Unless We Can Reverse Our
History Of Losses, We May Have To Discontinue
Operations.
|
If we are
unable to achieve or sustain profitability, or if operating losses increase in
the future, we may not be able to remain a viable company and may have to
discontinue operations. Our expenses have historically exceeded our revenues and
we have had losses from inception, August 17, 2006, to September 30, 2008
totaling $55,009. As of September 30, 2009 we had an accumulated deficit of
($433,180). Our net losses were, $25,542 and $378,171 for years ended September
30, 2008 and 2009 respectively.
6
We May Not Succeed Or Become
Profitable.
|
We will
need to generate significant revenues to achieve profitability and we may be
unable to do so. Even if we do achieve profitability, we may not be able to
sustain or increase profitability in the future. We expect that our expenses
will continue to increase and there is no guarantee that we will not experience
operating losses and negative cash flow from operations for this fiscal year or
for the foreseeable future. If we do not achieve or sustain profitability, then
we may be unable to continue our operations.
3.
|
We May Need Additional Capital
Financing In The Future.
|
We may be
required to seek additional financing in the future to respond to increased
expenses or shortfalls in anticipated revenues, product responses to competitive
pressures, develop new or enhanced products, or take advantage of unanticipated
acquisition opportunities. We cannot be certain we will be able to find such
additional financing on reasonable terms, or at all. If we are unable to obtain
additional financing when needed, we could be required to modify our business
plan in accordance with the extent of available financing.
Because Our Officers And
Directors Are Indemnified Against Certain Losses, We May Be Exposed To
Costs Associated With
Litigation.
|
If our
directors or officers become exposed to liabilities and invokes their
indemnification provisions, we could be exposed to additional unreimbursable
costs, including legal fees. Our articles of incorporation and bylaws provide
that our directors and officers will not be liable to us or to any shareholder
and will be indemnified and held harmless for any consequences of any act or
omission by the directors and officers unless the act or omission constitutes
gross negligence or willful misconduct. Extended or protracted litigation could
have a material adverse effect on our cash flow.
5.
|
The Report Of Our Independent
Auditors Indicates Uncertainty Concerning Our Ability To Continue As A
Going Concern.
|
Our
independent auditors report indicates that there is substantial doubt about our
ability to continue as a going concern. This may impair our ability to implement
our business plan, and we may never achieve significant revenues and therefore
remain a going concern.
6.
|
Possible Issuance Of Additional
Shares Could Dilute Stockholders’ Ownership
Percentage
|
We
currently have 165,186,483 Shares of common stock outstanding. There are
currently no other material plans, agreements, commitments or undertakings with
respect to the issuance of additional shares of common stock or securities
convertible into shares of our common stock. Additional shares could be issued
in the future, and the result of the issuance of additional shares would be to
further dilute the percentage ownership of our common stock held by our
stockholders.
7
7.
|
If A Market For Our Common
Stock Does Not Develop, Shareholders May Be Unable To Sell Their
Shares.
|
There is
currently no market for our common stock and no market may develop. We currently
plan to apply for listing of our common stock on the OTC Bulletin Board
maintained by FINRA. However, our shares may not be traded on the bulletin board
or, if traded, a public market may not materialize. If no market is ever
developed for our shares, it will be difficult for shareholders to sell their
stock. In such a case, shareholders may find that they are unable to achieve
benefits from their investment.
8.
|
The Board Of Directors Power To
Issue Preferred Stock, Could Dilute The Ownership Of Existing Shareholders
And This May Inhibit Potential Acquiror Of The
Company.
|
Our
articles of incorporation grant the board of directors the power to issue
preferred stock with terms and conditions, including voting rights that they
deem appropriate. The exercise of the discretion of the board to issue preferred
stock and/or common stock could dilute the ownership rights and the voting
rights of current shareholders. In addition, this power could be used by the
Board to inhibit potential acquisitions by a third party.
9.
|
There Is No Public Market For
Our Common Stock.
|
Our
common stock currently is not publicly traded. However, a trading market for the
shares may develop in the future. If a public market does develop the public
market will establish trading prices for our common stock. An active public
market for our common stock may not develop or be sustained.
10.
|
We Do Not Intend To Pay
Dividends On Our Common
Stock.
|
We have
never declared or paid any cash dividend on our capital stock. We currently
intend to retain any future earnings and do not expect to pay any dividends in
the foreseeable future. Any determination to pay dividends in the future will be
made at the discretion of our board of directors and will depend on our results
of operations, financial conditions, contractual restrictions, restrictions
imposed by applicable law and other factors our board deems relevant.
Shareholders must be prepared to rely on sales of their common stock after price
appreciation to earn an investment return, which may never occur. If our common
stock does not appreciate in value, or if our common stock loses value, our
stockholder may lose some or all of their investment in our shares.
An
investment in the Company is highly speculative in nature and involves an
extremely high degree of risk.
ITEM
1B. UNRESOLVED STAFF
COMMENTS
None
8
ITEM
2. PROPERTIES
The
Company rents approximately 1,800 sq. ft. of office space at 1171 Victory Blvd.,
Staten Island, NY 10314. The lease is a three year non-renewable lease which
commenced July 1, 2009 and terminates May 31, 2012 with payments as follows:
July 1, 2009 to May 31, 2010: $2,800 per month: July 1, 2010 to May 31, 2011:
$2,884 per month and July 1, 2011 to May 31, 2012: $2,971 per month. We do not
own any real property. We are also required to carry $1,000,000 General Public
Liability Insurance.
ITEM
3. LEGAL
PROCEEDINGS.
As of the
date of this annual report on Form 10-K for the fiscal year ended September 30,
2009, there were no pending material legal proceedings to which we were a party
and we are not aware that any were contemplated.
ITEM
4. SUBMISSION OF
MATTERS TO A VOTE OF SECURITY HOLDERS.
No
matters were submitted during the fourth quarter of the fiscal year covered by
this annual report on Form 10-K to a vote of our security holders, through the
solicitation of proxies or otherwise.
PART
II
ITEM
5.
|
MARKET
FOR REGISTRANTS’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER
PURCHASES OF EQUITY SECURITIES.
|
The
Company's common stock is not trading on any public trading market or stock
exchange
As of the
fiscal year ended September 30, 2009 we had approximately 177 shareholders of
record (excluding the number of persons or entities holding shares of our common
stock in nominee or street name through one or more brokerage
firms).
Dividends
We have
neither declared nor paid any cash dividends on our shares of common stock and
do not anticipate declaring or paying any dividends in the foreseeable future.
The decision to declare future dividends, if any, will depend upon our results
of operations, financial condition, current and future anticipated capital
requirements, contractual restrictions, restrictions imposed by applicable law
and other factors that our board of directors may deem relevant.
Equity
Incentive Plans
We have
not authorized the issuance of any of our securities in connection with any form
of equity compensation plan.
9
Recent
Sales of Unregistered Securities
During
the year ended September 30, 2009 we did not have any sales of securities that
were not registered under the Securities Act of 1933, as amended except as
reported in our Form 8-KA filed December 22, 2009.
Purchases
of Equity Securities
There
were no repurchases of equity securities during the fiscal year ended September
30, 2009.
ITEM
6 SELECTED
FINANCIAL DATA
The
registrant qualifies as a smaller reporting company as defined by Rule 229.10(f)(1), and is not required
to provide the information required by this Item.
ITEM
7.
|
MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF
OPERATIONS
|
The
following discussion and analysis of our financial condition and results of
operations should be read in conjunction with our audited financial statements,
related notes, and other detailed information included elsewhere in this annual
report on Form 10-K. Our financial statements have been prepared in accordance
with United States generally accepted accounting principles (“GAAP”),
contemplate that we will continue as a going concern, and do not contain any
adjustments that might result if we were unable to continue as a going
concern. However our independent registered public accounting firm
has added explanatory paragraphs in Note 2 of our audited financial statements
for the fiscal years ended September 30, 2009 and 2008, respectively, raising
substantial doubt as to our ability to continue as a going concern. Certain
information contained below and elsewhere in this annual report on Form 10-K,
including information regarding our plans and strategy for our business,
constitute forward-looking statements. See "Note Regarding Forward-Looking
Statements.”
OVERVIEW
Results
of Operations
The
primary reason for the significant increase in sales, operating losses, cost of
sales, selling general and administrative expenses and interest expense were all
primarily if not entirely due to the fact that we were a shell until entry into
Securities Purchase Agreement in August 2008 with business operations commencing
shortly thereafter. See aforesaid Form 8K/A as filed October 27,
2008.
Sales/Net
Profit
The total
sales for Tia IV, Inc., a Delaware corporation, for the fiscal year ended
September 30, 2009, were $146,738 compared to $0 for the fiscal year ended
September 30, 2008; an increase in sales of
$146,738. Operating net loss for the year ended September 30, 2009
was $378,171 or net operating loss per share $.0042, compared to a net operating
loss for the fiscal year ended September 30, 2008 of $25,542, or a net operating
loss per share of $.0009.
10
Cost of
Sales
Cost of
sales for the fiscal year ended September 30, 2009 was $71,697 compared to cost
of sales for the fiscal year ended September 30, 2008 in the amount of $0; a
increase of $71,697.
Selling, General and
Administrative Expenses
Selling,
general and administrative expenses for the fiscal years ended September 30,
2009 and 2008 were $448,507 and $24,035, respectively; an increase of $424,472
.
Interest
Expense
Interest
expense for the fiscal years ended September 30, 2009 and 2008 were $16,980 and
$1,507, respectively: an increase of $15,473.
Liquidity and Capital
Resources
At
September 30, 2009, we had cash and cash equivalents of $11,112, compared to
$1,093 at September 30, 2008, an increase of $10,019.
During
the fiscal year ended September 30, 2009, cash used by operating activities was
$15,234, consisting primarily of the Net Loss of $378,171 offset
by:
|
·
|
Non-cash
charges related to Depreciation charges of $1,305, Amortization of
Financing Costs $10,628, Imputed Interest costs $389 and Stock based
Compensation of $49,582.
|
Cash used
in Investment Activities during the fiscal year ended September 30, 2009 was
($9,170)
|
·
|
Purchase
of Property and Equipment $9,170
|
Cash
provided by Financing Activities during the fiscal year ended September 30, 2009
was $34,423
|
·
|
Proceeds
from the sale of common stock was
$21,100
|
|
·
|
Proceeds
from Note Payable –Related Party was
$27,000
|
|
·
|
Repayment
of Note Payable-Related Party was
$20,000
|
|
·
|
Proceeds
from Loan Payable-Related Party was
$8,800
|
|
·
|
Repayment
of Loan Payable-Related Party was
$3,800
|
Our
long-term working capital and capital requirements will depend upon numerous
factors, including our efforts to continue to improve operational efficiency and
conserve cash.
11
Off-Balance Sheet
Arrangements
As of the
fiscal year ended September 30, 2009, we did not have any off-balance sheet
arrangements as defined in Item 303(c)(2) of Regulation S-B.
Critical Accounting
Policies
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 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.
Our
management routinely makes judgments and estimates about the effects of matters
that are inherently uncertain. As the number of variables and assumptions
affecting the probable future resolution of the uncertainties increase, these
judgments become even more subjective and complex. We have identified the
following accounting policies, described below, as the most critical to an
understanding of our current financial condition and results of
operations.
Revenue Recognition
Policies
The
Company will derive its primary revenue from performing client services of which
primarily consist of mortgage mitigation and unsecured debt mitigation
sources.
Recent
Accounting Pronouncements
In
February 2007, the FASB issued SFAS No. 159, The Fair Value for Financial Assets
and Financial Liabilities—including an amendment of FASB Statement No.
115. This statement permits entities to choose to measure many
financial instruments and certain other items at value. The objective
is to improve financial reporting by providing entities with the opportunity to
mitigate volatility in reported earnings caused by measuring related assets and
liabilities differently without having to apply complex hedge accounting
provisions. This Statement is expected to expand the use of fair
value measurement, which is consistent with the FASB’s long-term measurement
objectives for accounting for financial instruments. Effective as of
the beginning of an entity’s first fiscal year that begins after November 15,
2007. Early adoption is permitted as of the beginning of a fiscal year that
begins on or before November 15, 2007, provided the entity also elects to apply
the provisions of FASB Statement No. 157, Fair Value Measurements. No entity is
permitted to apply the Statement retrospectively to fiscal years preceding the
effective date unless the entity chooses early adoption. Adoption of this
standard is not expected to have a material effect on our results of operations
or its financial condition.
In
December 2007, the FASB issued SFAS No. 141(revised 2007), Business Combinations
(“SFAS 141R”). SFAS No. 141R will significantly change the accounting for
business combinations in a number of areas including the treatment of contingent
consideration, contingencies, acquisition costs, IPR&D and restructuring
costs. In addition, under SFAS No. 141R, changes in deferred tax asset valuation
allowances and acquired income tax uncertainties in a business combination after
the measurement period will impact income tax expense. SFAS No. 141R is
effective for fiscal years beginning after December 15,
2008. Adoption of this standard is not expected to have a material
effect on our results of operations or its financial condition.
12
In
December 2007, the FASB issued SFAS No.160, Noncontrolling Interests in
Consolidated Financial Statements, and an amendment of ARB No. 51. SFAS No. 160
will change the accounting and reporting for minority interests, which will be
recharacterized as noncontrolling interests (NCI) and classified as a component
of equity. This new consolidation method will significantly change the account
with minority interest holders. SFAS No. 160 is effective for fiscal years
beginning after December 15, 2008. Adoption of this standard is not expected to
have a material effect on our results of operations or its financial
condition.
In
February 2008, the FASB issued Staff Position No. 157-2, Effective Date of FASB
Statement No. 157 (“FSP 157-2”) that defers the effective date of applying the
provisions of SFAS 157 to the fair value measurement of non-financial assets and
non-financial liabilities, except those that are recognized or disclosed at fair
value in the financial statements on a recurring basis (or at least annually),
until fiscal years beginning after November 15, 2008. The Company is
currently evaluating the effect that the adoption of FSP 157-2 will have on its
results of operations and financial condition, but does not expect it to have a
material impact.
In
March 2008, the FASB issued SFAS No. 161, “Disclosures about
Derivative Instruments and Hedging Activities — an amendment to FASB Statement
No. 133.” SFAS No. 161 is intended to improve financial standards for
derivative instruments and hedging activities by requiring enhanced disclosures
to enable investors to better understand their effects on an entity’s financial
position, financial performance, and cash flows. Entities are required to
provide enhanced disclosures about: (a) how and why an entity uses
derivative instruments; (b) how derivative instruments and related hedged
items are accounted for under Statement 133 and its related interpretations; and
(c) how derivative instruments and related hedged items affect an entity’s
financial position, financial performance, and cash flows. It is effective for
financial statements issued for fiscal years beginning after November 15,
2008, with early adoption encouraged. The adoption of this statement, which is
expected to occur in the first quarter of 2009, is not expected to have a
material effect on the Company’s financial statements.
In May
2008, the FASB issued SFAS No. 162, “The Hierarchy of Generally Accepted
Accounting Principles.” SFAS No. 162 identifies the sources of accounting
principles and the framework for selecting the principles to be used in the
preparation of financial statements of nongovernmental entities that are
presented in conformity with generally accepted accounting principles in the
United States. It is effective 60 days following the SEC’s approval of the
Public Company Accounting Oversight Board amendments to AU Section 411, “The
Meaning of Present Fairly in Conformity With Generally Accepted Accounting
Principles.” The adoption of this statement is not expected to have a material
effect on the Company’s financial statements.
13
In
May 2008, the FASB issued SFAS No. 163, “Accounting for Financial
Guarantee Insurance Contracts — An interpretation of FASB Statement
No. 60.” SFAS No. 163 requires that an insurance enterprise recognize
a claim liability prior to an event of default when there is evidence that
credit deterioration has occurred in an insured financial obligation. It also
clarifies how Statement No. 60 applies to financial guarantee insurance
contracts, including the recognition and measurement to be used to account for
premium revenue and claim liabilities, and requires expanded disclosures about
financial guarantee insurance contracts. It is effective for financial
statements issued for fiscal years beginning after December 15, 2008,
except for some disclosures about the insurance enterprise’s risk-management
activities. SFAS No. 163 requires that disclosures about the
risk-management activities of the insurance enterprise be effective for the
first period beginning after issuance. Except for those disclosures, earlier
application is not permitted. The adoption of this statement is not expected to
have a material effect on the Company’s financial statements.
On
October, 2008, the FASB issued Staff Position No. 157-3, “Determining the Fair
Value of a Financial Asset When Market for that Asset is not Active”, Effective
upon issuance, including prior periods for which financial statements have not
been issued. The Company is currently evaluating the effect that the adoption of
FSP of 157-3 will have on its results of operations and financial condition, but
does not expect it to have a material impact.
ITEM
7A.
|
QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK
|
Pursuant
to Item 305(e) of Regulation S-K (§ 229.305(e)), the Company is not required to
provide the information required by this Item as it is a “smaller reporting
company,” as defined by Rule 229.10(f)(1).
ITEM
8. FINANCIAL
STATEMENTS.
INDEX TO FINANCIAL
STATEMENTS
TIA IV,
INC.
Page
|
|
REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
|
F-1
|
FINANCIAL
STATEMENTS
|
|
Balance
Sheet as of September 30, 2009 and September 30, 2008
|
F-2
|
Statements
of Operations for the Years Ended September 30, 2009 and 2008 and for the
3 month periods ended September 30, 2009 and 2008
|
F-3
|
Statements
of Changes in Stockholders’ Deficiency for the period from August 17, 2006
(Date of Inception) to September 30, 2009
|
F-4
|
Statements
of Cash Flows for the Years Ended September 30, 2009 and
2008
|
F-5
|
NOTES
TO FINANCIAL STATEMENTS
|
F-6
to F-13
|
14
REPORT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM
To the
Board of Directors
TIA IV,
Inc.
I have
audited the accompanying balance sheets of TIA IV, Inc. (“The Company”) as of
September 30, 2009, and the related statements of income, stockholders’ equity
and comprehensive income, and cash flows for the years ended September 30, 2009
and 2008. These financial statements are the responsibility of the
company’s management. My responsibility is to express an opinion on these
financial statements based on my audits.
I
conducted my audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that I 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. My 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, I express no such opinion. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. I believe that my
audits provide a reasonable basis for my opinion.
In my
opinion, the financial statements referred to above present fairly, in all
material respects, the financial position of TIA IV, Inc. as of September 30,
2009, and the results of its operations and its cash flows for the years ended
September 30, 2009 and 2008 in conformity with accounting principles generally
accepted in the United States of America.
The
accompanying financial statements have been prepared assuming that the Company
will continue as a going concern. As more fully described in Note 2,
the Company has incurred a deficit accumulated during the development stage of
$55,009 and cash flows used in operating activities of $41,164 during the
development stage. These factors raise substantial doubt about the
Company’s ability to continue as a going concern. Management’s plans
regarding those matters are also described in Note 2. The financial
statements do not include any adjustments that might result from the outcome of
this uncertainty.
Traci J.
Anderson, CPA
Huntersville,
NC
December
18, 2009
F-1
TIA
IV, INC.
|
BALANCE
SHEET
|
FOR
THE YEARS ENDED SEPTEMBER 30, 2009 AND
2008
|
For
the Year
Ended
September
30,
2009
|
For
the Year
Ended
September
30,
2008
|
|||||||
ASSETS
|
||||||||
CURRENT
ASSETS:
|
||||||||
CASH
|
$ | 11,112 | $ | 1,093 | ||||
ACCOUNTS
RECEIVABLE
|
6,779 | 0 | ||||||
PREPAID
EXPENSES
|
94,485 | 0 | ||||||
TOTAL
CURRENT ASSETS
|
112,376 | 1,093 | ||||||
OTHER
ASSETS:
|
||||||||
PROPERTY
AND EQUIPMENT, NET
|
7,865 | 0 | ||||||
SECURITY
DEPOSIT
|
3,610 | 0 | ||||||
DEFERRED
FINANCING COSTS, NET
|
5,572 | 0 | ||||||
TOTAL
OTHER ASSETS
|
17,047 | 0 | ||||||
TOTAL
ASSETS
|
$ | 129,423 | $ | 1,093 | ||||
LIABILITIES
AND STOCKHOLDERS' DEFICIENCY
|
||||||||
CURRENT
LIABILITIES
|
||||||||
ACCOUNTS
PAYABLE
|
10,750 | 11,298 | ||||||
ACCRUED
EXPENSES
|
189,507 | 0 | ||||||
NOTE
PAYABLE - RELATED PARTY
|
7,000 | 0 | ||||||
LOANS
PAYABLE - STOCKHOLDERS
|
23,208 | 18,208 | ||||||
LOAN
PAYABLE - OTHERS
|
10,000 | 10,000 | ||||||
UNEARNED
REVENUES
|
216,948 | 0 | ||||||
TOTAL
LIABILITIES
|
457,413 | 39,506 | ||||||
STOCKHOLDERS'
DEFICIENCY
|
||||||||
Perferred
stock, $.0001 par value; 10,000,000 shares authorized
-0-issued
|
||||||||
Common
stock, $.0001 par value; 250,000,000 shares authorized, 157,686,483 and
16,390,628 shares issued and outstanding at Sept. 30, 2009 and
2008
|
15,767 | 1,639 | ||||||
Additional
Paid in Capital
|
89,423 | 14957 | ||||||
Accumulated
Deficit
|
(433,180 | ) | (55,009 | ) | ||||
TOTAL
STOCKHOLDERS' DEFICIENCY
|
(327,990 | ) | (38,413 | ) | ||||
TOTAL
LIABILITIES AND STOCKHOLDERS' DEFICIENCY
|
$ | 129,423 | $ | 1,093 |
The
accompanying notes are an integral part of these Financial
Statements
F-2
TIA
IV, INC.
|
STATEMENT
OF OPERATIONS
Three
Months Ended September 30
|
Year
Ended September 30
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
MITIGATION
REVENUE
|
$ | 85,395 | $ | 0 | $ | 146,738 | $ | 0 | ||||||||
DEBT
NEGOTIATION REVENUE
|
4,520 | 0 | 12,275 | 0 | ||||||||||||
TOTAL
REVENUES
|
89,915 | 0 | 159,013 | 0 | ||||||||||||
DIRECT
COSTS
|
(36,526 | ) | 0 | (71,697 | ) | 0 | ||||||||||
GROSS
PROFIT
|
53,389 | 0 | 87,316 | 0 | ||||||||||||
EXPENSES:
|
||||||||||||||||
OFFICE
EXPENSES
|
(53,404 | ) | 0 | (108,640 | ) | 0 | ||||||||||
RENT
EXPENSE
|
(13,200 | ) | 0 | (20,150 | ) | 0 | ||||||||||
ADVERTISING
EXPENSE
|
(23,984 | ) | 0 | (61,334 | ) | 0 | ||||||||||
BANK
SERVICE CHARGES
|
(391 | ) | 0 | (1,277 | ) | 0 | ||||||||||
TRAVEL
& ENTERTAINMENT EXPENSES
|
(1,032 | ) | 0 | (3,301 | ) | 0 | ||||||||||
CONSULTING
EXPENSES
|
(2,400 | ) | 0 | (9,443 | ) | 0 | ||||||||||
VEHICLE
EXPENSES
|
0 | 0 | (357 | ) | 0 | |||||||||||
REPAIRS
AND MAINTENANCE
|
(8,209 | ) | 0 | (10,523 | ) | 0 | ||||||||||
UTILITIES
|
(1,556 | ) | 0 | (4,039 | ) | 0 | ||||||||||
TELEPHONE
|
(2,428 | ) | 0 | (8,940 | ) | 0 | ||||||||||
ASSOCIATION
DUES
|
0 | 0 | (430 | ) | 0 | |||||||||||
MANAGEMENT
FEES
|
(134,400 | ) | 0 | (162,500 | ) | 0 | ||||||||||
ACCOUNTING
FEES
|
(45,431 | ) | (4,053 | ) | (50,649 | ) | (15,000 | ) | ||||||||
LEGAL
FEES
|
(1,320 | ) | 0 | (5,619 | ) | (3,309 | ) | |||||||||
OTHER
FORMATION COSTS
|
0 | (3,034 | ) | 0 | (5,726 | ) | ||||||||||
SELLING,
GENERAL & ADMINISTRATIVE EXPENSES
|
(287,757 | ) | (7,087 | ) | (447,202 | ) | (24,035 | ) | ||||||||
DEPRECIATION
EXPENSE
|
(422 | ) | (1,305 | ) | 0 | |||||||||||
TOTAL
EXPENSES
|
(288,178 | ) | (7,087 | ) | (448,507 | ) | (24,035 | ) | ||||||||
NET
LOSS FROM OPERATIONS
|
(234,789 | ) | (7,087 | ) | (361,191 | ) | (24,035 | ) | ||||||||
OTHER
INCOME/(EXPENSE)
|
||||||||||||||||
INTEREST
EXPENSE
|
(3,089 | ) | (415 | ) | (16,980 | ) | (1,507 | ) | ||||||||
NET
OTHER INCOME (EXPENSE)
|
(3,089 | ) | (415 | ) | (16,980 | ) | (1,507 | ) | ||||||||
NET
LOSS
|
$ | (237,878 | ) | $ | (7,502 | ) | $ | (378,171 | ) | $ | (25,542 | ) | ||||
WEIGHTED
AVERAGE NUMBER OF SHARES
|
||||||||||||||||
OUTSTANDING-BASIC
AND DILUTED
|
90,562,092 | 2,766,138 | 90,562,092 | 2,766,138 | ||||||||||||
NET
LOSS PER SHARE-BASIC AND DILUTED
|
$ | (0.0026 | ) | $ | (0.0027 | ) | $ | (0.0042 | ) | $ | (0.0009 | ) |
The
accompanying notes are an integral part of these Financial
Statements
F-3
TIA IV,
INC.
STATEMENT
OF CHANGES IN STOCKHOLDERS’ DEFICIENCY
FOR THE
PERIOD FROM AUGUST 17, 2006 (DATE OF INCEPTION) TO SEPTEMBER 30,
2009
Common
Stock
|
Shares
Amount
|
Additional
Paid
in
Capital
|
Deficit
Accumulated
During
the
Development
Stage
|
Deficit
Accumulated
During
Operations
|
Total
Stockholders'
Deficiency
|
|||||||||||||||||||
Common
Shares Issued on August 28, 2006 at $0.0001 per share
|
1,000,000 | $ | 100 | $ | 100 | |||||||||||||||||||
Net
Loss for the Period ended September 30, 2006
|
- | - | - | (365 | ) | (365 | ) | |||||||||||||||||
Balance
at September 30, 2006
|
1,000,000 | 100 | - | (365 | ) | (265 | ) | |||||||||||||||||
Imputed
Interest on loans from stockholders
|
- | - | 932 | - | 932 | |||||||||||||||||||
Net
Loss for the Year ended September 30, 2007
|
- | - | - | (29,102 | ) | (29,102 | ) | |||||||||||||||||
Balance
at September 30, 2007
|
1,000,000 | 100 | 932 | (29,467 | ) | - | (28,435 | ) | ||||||||||||||||
Common
Shares Issued on August 20, 2008 at $0.0001 per share
|
13,500,000 | 1,350 | - | - | - | 1,350 | ||||||||||||||||||
Common
Shares Issued in connection with separation agreement
|
||||||||||||||||||||||||
on
August 20, 2008 at $0.0001 per share
|
1,500,000 | 150 | - | - | - | 150 | ||||||||||||||||||
Common
Shares Issued on August 20, 2008 at $0.03 per share
|
386,628 | 39 | 11,560 | - | - | 11,599 | ||||||||||||||||||
Common
Shares Issued on August 20, 2008 at $0.25 per share
|
4,000 | - | 1,000 | - | - | 1,000 | ||||||||||||||||||
Imputed
Interest on loans from stockholders
|
- | - | 1,465 | - | - | 1,465 | ||||||||||||||||||
Net
Loss for the Year ended September 30, 2008
|
- | - | - | (25,542 | ) | - | (25,542 | ) | ||||||||||||||||
Balance
at October 1, 2008
|
16,390,628 | $ | 1,639 | $ | 14,957 | $ | (55,009 | ) | - | $ | (38,413 | ) | ||||||||||||
Common
Shares Sold & Issued at $0.030 per share
|
93,330 | 9 | 2,791 | - | - | 2,800 | ||||||||||||||||||
Common
Shares Issued for services at $0.030 per share
|
183,025 | 18 | 5,473 | - | - | 5,491 | ||||||||||||||||||
Common
Shares Issued as per note payable at $0.030 per share
|
540,000 | 54 | 16,146 | 16,200 | ||||||||||||||||||||
Common
Shares Issued for creation of website at $0.030 per share
|
50,000 | 5 | 1,495 | 1,500 | ||||||||||||||||||||
Imputed
Interest on loans from stockholders
|
- | - | 427 | - | - | 427 | ||||||||||||||||||
Net
loss for the quarter ended December 31, 2008
|
- | - | - | - | (56,712 | ) | (56,712 | ) | ||||||||||||||||
Balance
December 31, 2008
|
17,256,983 | $ | 1,725 | $ | 41,289 | $ | (55,009 | ) | $ | (56,712 | ) | $ | (68,707 | ) | ||||||||||
Common
Shares Issued at $0.030 per share
|
135,500 | 14 | 4,052 | 4,066 | ||||||||||||||||||||
Imputed
Interest on loans from stockholders
|
448 | 448 | ||||||||||||||||||||||
Net
loss for the quarter ended March 31, 2009
|
(52,230 | ) | (52,230 | ) | ||||||||||||||||||||
Balance
March 31, 2009
|
17,392,483 | 1,739 | 45,789 | (55,009 | ) | (108,942 | ) | (116,423 | ) | |||||||||||||||
Common
Shares Issued at $0.10 per share to Bob stein
|
30,000 | 3 | 2,997 | 3,000 | ||||||||||||||||||||
Imputed
Interest on loans from stockholders
|
374 | 374 | ||||||||||||||||||||||
Net
loss for the quarter ended June 30, 2009
|
(31,351 | ) | (31,351 | ) | ||||||||||||||||||||
17,422,483 | 1,742 | 49,160 | (55,009 | ) | (140,293 | ) | (144,400 | ) | ||||||||||||||||
Common
Shares Issued as Compensation
|
125,231,000 | 12,523 | 23,077 | 35,600 | ||||||||||||||||||||
Common
Shares Sold and Issued
|
15,033,000 | 1,503 | 16,797 | 18,300 | ||||||||||||||||||||
Imputed
Interest on loans from stockholders
|
389 | 389 | ||||||||||||||||||||||
Net
loss for the quarter ended September 30, 2009
|
(237,878 | ) | (237,878 | ) | ||||||||||||||||||||
157,686,483
|
15,769
|
89,423
|
(55,009
|
) |
(378,171
|
) |
(327,989
|
) |
The
accompanying notes are an integral part of these financial
statements.
F-4
TIA
IV, INC.
|
STATEMENT
OF CASH FLOWS
For the Year Ended
September 30, 2009
|
For the Year Ended
September 30, 2008
|
|||||||
CASH
FLOWS FROM OPERATING ACTIVITIES
|
||||||||
NET
LOSS
|
$ | (378,171 | ) | $ | (25,542 | ) | ||
Adjustment
to reconcile net loss to net cash used in operating
activities
|
||||||||
Depreciation
Expense
|
1,305 | 0 | ||||||
Amortization
of Financing Costs
|
10,628 | 0 | ||||||
Imputed
Interest Costs
|
1,638 | 1,465 | ||||||
Stock
based compensation
|
48,156 | 150 | ||||||
Changes
in assets and liabilities :
|
||||||||
Increase
in Accounts Receivable
|
(6,779 | ) | 0 | |||||
Increase
in Prepaid Expenses
|
(94,485 | ) | 0 | |||||
Increase
in Security Deposits
|
(3,610 | ) | 0 | |||||
Increase
(Decrease) in Accounts Payable
|
(548 | ) | 6,963 | |||||
Increase
in Accrued Expenses
|
189,507 | 0 | ||||||
Increase
in Unearned Revenues
|
216,948 | 0 | ||||||
NET
CASH USED IN OPERATING ACTIVITIES
|
(15,411 | ) | (16,964 | ) | ||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Purchase
of Property and Equipment
|
(7,670 | ) | 0 | |||||
NET
CASH USED IN INVESTING ACTIVITIES
|
(7,670 | ) | 0 | |||||
CASH
FLOWS FROM FINANCING ACTIVITIES
|
||||||||
Proceeds
from the sale of common stock
|
21,100 | 13,949 | ||||||
Proceeds
from Note Payable related party
|
27,000 | 4,087 | ||||||
Repayment
of Note Payable - Related Party
|
(20,000 | ) | 0 | |||||
Proceeds
from Loan Payable - Related Party
|
8,800 | 0 | ||||||
Repayment
of Loan Payable - Related Party
|
(3,800 | ) | 0 | |||||
NET
CASH PROVIDED BY FINANCING ACTIVITIES
|
33,100 | 18,036 | ||||||
NET
INCREASE (DECREASE) IN CASH
|
10,019 | 1,072 | ||||||
CASH
AT BEGINNING
|
1,093 | 21 | ||||||
CASH
AT END
|
$ | 11,112 | $ | 1,093 |
The
accompanying notes are an integral part of these Financial
Statements
F-5
TIA IV,
INC.
NOTES TO
FINANCIAL STATEMENTS
NOTE
1 - Organization, Business and Operations
Tia IV,
Inc. (the “Company”) was incorporated in Delaware on August 17, 2006, with an
objective to acquire, or merge with, an operating business. On August
20, 2008
we entered into and consummated a Securities Purchase Agreement. Under the terms
of the Purchase Agreement, Ralph Porretti, Jim McAlinden and Peter Ng acquired
13,500,000 common shares of the Company at $.0001 per share. Our certificate of
incorporation and bi-laws will continue to be those of the Company. We will be
governed by the corporate law of the State of Delaware. The Company is a
financial advisory firm dedicated to assisting both homeowners and financial
mortgage Institutions in preventing foreclosures, and is doing business as
National Mitigation Specialists.
The
Company, was a "blank check" company until August 20, 2008. The Securities and
Exchange Commission (“SEC”) defines such a company as “a development stage
company” that has no specific business plan or purpose, or has indicated that
its business plan is to engage in a merger or acquisition with an unidentified
company or companies, or other entity or person; and is issued ‘penny stock,’ as
defined in Rule 3a51-1 under the Securities Exchange Act of 1934. Many states
have enacted statutes, rules and regulations limiting the sale of securities of
"blank check" companies in their respective jurisdictions. Management did not
intend to undertake any efforts to cause a market to develop in its securities,
either debt or equity, until the Company concluded a business combination which
occurred in August 2008.
NOTE
2 - Development Stage Company/Going Concern
As of and
prior to September 30, 2008 the Company did not generate any revenues;
accordingly, the Company was considered a development stage enterprise as
defined in Financial Accounting Standards Board No. 7, "Accounting and Reporting
for Development Stage Companies." In October 2008 the Company emerged from a
development stage company by commencing operations. The Company is subject to a
number of risks similar to those of other companies in an early stage of
development.
The
accompanying financial statements have been prepared assuming that the Company
will continue as a going concern. As of September 30, 2009, the
Company did not generated positive cash flow from operations, and was until
then, totally dependent upon debt and equity funding to finance operations.
These factors raise substantial doubt about the Company’s continued existence as
a going concern. The accompanying financial statements do not include any
adjustments that might be necessary should the Company be unable to continue as
a going concern.
The
Company had commenced operations in October 2008 and plans on using cash flow
from operations activities to fund the Company. However management believes the
Company will still be dependent upon debt and equity funding to finance
operations for at least the next twelve months. There can be no assurances that
the Company will be able to reverse its operating losses or cash flow
deficiencies.
F-6
NOTE
3 - Summary of Significant Accounting Policies
Income
Taxes
Effective
October 1, 2007, the Company adopted the provisions of FASB Interpretation No.
48, “Accounting for Uncertainty in Income Taxes, an Interpretation of FASB
Statement No. 109” (“FIN No. 48”). FIN No. 48 clarifies the accounting for
uncertainty in income taxes recognized in a company’s financial statements and
prescribes a recognition threshold and measurement attribute for the financial
statement recognition and measurement of a tax position taken or expected to be
taken in a tax return. For those benefits to be recognized, a tax position must
be more likely than not to be sustained upon examination by taxing
authorities.
In
accordance with FIN 48, interest costs related to unrecognized tax benefits are
required to be calculated (if applicable) and would be classified as “Interest
Expense” in the Statements of Operations. Penalties would be recognized as
component of “General and Administrative expenses”.
The
Company files income tax returns in the United States, State of Delaware, State
of New York, and The City of New York.
The
Adoption of the provision of FIN 48 did not have a material impact on the
Company’s financial position and results of operations. As of September 30, 2009
no liability for unrecognized tax benefits was required to be
recorded.
The
Company utilizes the liability method of accounting for income taxes. Under the
liability method, deferred income taxes are determined based on the differences
between the bases of assets and liabilities for financial reporting and income
tax purposes. The Company recognized a deferred tax asset of approximately
$148,000 as of September 30, 2009, primarily relating to costs incurred during
its first year of operation. The ultimate realization of deferred tax assets is
dependent upon the generation of future taxable income during the periods in
which temporary differences become deductible. The Company considers projected
future taxable income and tax planning strategies in making this assessment. At
present, the Company does not have a history of income to conclude that is more
likely than not that the Company will be able to realize its tax
benefits; therefore, a valuation allowance of $148,000 was established for the
full value of the deferred tax asset. For the year ended September 30, 2009, the
valuation allowance increased by approximately $129,000. A valuation allowance
will be maintained until sufficient positive evidence exists to support the
reversal of any portion or all of the valuation allowance net of appropriate
reserves. Should the Company be profitable in the future periods with
supportable trends, the valuation allowance will be reversed
accordingly.
A
reconciliation of the expected federal statutory rate of 34% to the Company’s
actual rate as reported for each of the periods presented is as
follows:
F-7
Year
Ended
September
30,
2009
|
Year
Ended
September
30,
2008
|
|||||||
Expected
Statutory Rate
|
34.0 | % | 34.0 | % | ||||
State
income tax rate, net of federal benefit
|
7.1 | % | 7.1 | % | ||||
City
income tax rate, net of federal benefit
|
8.5 | % | 8.5 | % | ||||
49.6 | % | 49.6 | % | |||||
Valuation
Allowance
|
-49.6 | % | -49.6 | % | ||||
Net
Actual Rate
|
0.0 | % | 0.0 | % |
Loss
per Common Share
Basic and
diluted net loss per common share is computed by dividing the net loss by the
weighted-average number of shares of common stock outstanding during the
period.
Use
of 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 and disclosure of contingent assets and liabilities at the date of
the financial statements and reported amounts of revenue and expenses during the
reporting period. Actual results could differ from those estimates.
On
October, 2008, the FASB issued Staff Position No. 157-3, “Determining the Fair
Value of a Financial Asset When Market for that Asset is not Active”, Effective
upon issuance, including prior periods for which financial statements have not
been issued. The Company is currently evaluating the effect that the adoption of
FSP of 157-3 will have on its results of operations and financial condition, but
does not expect it to have a material impact.
In May
2008, the FASB issued SFAS No. 162, “The Hierarchy of Generally Accepted
Accounting Principles.” SFAS No. 162 identifies the sources of accounting
principles and the framework for selecting the principles to be used in the
preparation of financial statements of nongovernmental entities that are
presented in conformity with generally accepted accounting principles in the
United States. It is effective 60 days following the SEC’s approval of the
Public Company Accounting Oversight Board amendments to AU Section 411, “The
Meaning of Present Fairly in Conformity With Generally Accepted Accounting
Principles.” The adoption of this statement is not expected to have a material
effect on the Company’s financial statements.
F-8
In
May 2008, the FASB issued SFAS No. 163, “Accounting for Financial
Guarantee Insurance Contracts — An interpretation of FASB Statement
No. 60.” SFAS No. 163 requires that an insurance enterprise recognize
a claim liability prior to an event of default when there is evidence that
credit deterioration has occurred in an insured financial obligation. It also
clarifies how Statement No. 60 applies to financial guarantee insurance
contracts, including the recognition and measurement to be used to account for
premium revenue and claim liabilities, and requires expanded disclosures about
financial guarantee insurance contracts. It is effective for financial
statements issued for fiscal years beginning after December 15, 2008,
except for some disclosures about the insurance enterprise’s risk-management
activities. SFAS No. 163 requires that disclosures about the
risk-management activities of the insurance enterprise be effective for the
first period beginning after issuance. Except for those disclosures, earlier
application is not permitted. The adoption of this statement is not expected to
have a material effect on the Company’s financial statements.
In
March 2008, the FASB issued SFAS No. 161, “Disclosures about
Derivative Instruments and Hedging Activities — an amendment to FASB Statement
No. 133.” SFAS No. 161 is intended to improve financial standards for
derivative instruments and hedging activities by requiring enhanced disclosures
to enable investors to better understand their effects on an entity’s financial
position, financial performance, and cash flows. Entities are required to
provide enhanced disclosures about: (a) how and why an entity uses
derivative instruments; (b) how derivative instruments and related hedged
items are accounted for under Statement 133 and its related interpretations; and
(c) how derivative instruments and related hedged items affect an entity’s
financial position, financial performance, and cash flows. It is effective for
financial statements issued for fiscal years beginning after November 15,
2008, with early adoption encouraged. The adoption of this statement, which is
expected to occur in the first quarter of 2009, is not expected to have a
material effect on the Company’s financial statements.
In
February 2008, the FASB issued Staff Position No. 157-2, Effective Date of FASB
Statement No. 157 (“FSP 157-2”) that defers the effective date of applying the
provisions of SFAS 157 to the fair value measurement of non-financial assets and
non-financial liabilities, except those that are recognized or disclosed at fair
value in the financial statements on a recurring basis (or at least annually),
until fiscal years beginning after November 15, 2008. The Company is
currently evaluating the effect that the adoption of FSP 157-2 will have on its
results of operations and financial condition, but does not expect it to have a
material impact.
In December 2007, the FASB
issued SFAS No. 160, Noncontrolling Interests in
Consolidated Financial Statements—an amendment of ARB No. 51,
(“SFAS 160”), which amends Accounting Research
Bulletin No. 51, Consolidated Financial Statements
(“ARB No. 51”) ,
to establish accounting and reporting standards for the noncontrolling
interest in a subsidiary and for the deconsolidation of a subsidiary. This
standard defines a noncontrolling interest, previously referred to as minority
interest, as the portion of equity in a subsidiary not attributable, directly or
indirectly, to a parent. SFAS 160 requires, among other items, that a
noncontrolling interest be included in the consolidated balance sheet within
equity separate from the parent’s equity; consolidated net income to be reported
at amounts inclusive of both the parent’s and noncontrolling interest’s shares
and, separately, the amounts of consolidated net income attributable to the
parent and noncontrolling interest all on the consolidated statement of income;
and if a subsidiary is deconsolidated, any retained noncontrolling equity
investment in the former subsidiary be measured at fair value and a gain or loss
be recognized in net income based on such fair value. SFAS 160 is effective
for fiscal years beginning after December 15, 2008, which corresponds to
the Company’s calendar year beginning January 1, 2009. The Company is
currently evaluating the effect that the adoption of SFAS 160 will have on its
results of operations and financial condition, but does not expect it to have a
material impact.
F-9
In
December 2007, the FASB issued SFAS No. 141(R), “Business Combinations”
(“SFAS No. 141R”). SFAS 141R retains the fundamental requirements in SFAS
141 that the acquisition method of accounting (which SFAS 141 called the
purchase method ) be used for all business combinations and for an acquirer to
be identified for each business combination. SFAS 141R also establishes
principles and requirements for how the acquirer: (a) recognizes and
measures in its financial statements the identifiable assets acquired, the
liabilities assumed, and any non-controlling interest in the acquiree;
(b) improves the completeness of the information reported about a business
combination by changing the requirements for recognizing assets acquired and
liabilities assumed arising from contingencies; (c) recognizes and measures
the goodwill acquired in the business combination or a gain from a bargain
purchase; and (d) determines what information to disclose to enable users
of the financial statements to evaluate the nature and financial effects of the
business combination. SFAS No. 141R applies prospectively to business
combinations for which the acquisition date is on or after the beginning of the
first annual reporting period beginning on or after December 15, 2008 (for
acquisitions closed on or after January 1, 2009 for the Company). Early
application is not permitted. The Company is currently evaluating the potential
impact of adopting SFAS 141(R) on its financial statements.
In
February 2007, the FASB issued SFAS 159, “The Fair Value Option for
Financial Assets and Financial Liabilities” (“SFAS 159”). SFAS 159 provides
companies with an option to report selected financial assets and liabilities at
fair value and establishes presentation and disclosure requirements designed to
facilitate comparisons between companies that choose different measurement
attributes for similar types of assets and liabilities. SFAS 159 is effective
for fiscal years beginning after November 15, 2007. The Company is in the
process of evaluating the impact of the adoption of this statement on the
Company’s results of operations and financial condition.
NOTE
4 – Loan Payable Stockholder
The
Company received $18,208 in loans from one of its stockholders from July 28,
2008 through September 30, 2009. The loan is due on demand and has no
stated interest rate. The Company has recorded an imputed interest rate
of 8.25% per annum on this loan.
In
October and November 2008 the Company received loans from its Secretary totaling
$3,800. The loan was due on demand and has no stated interest rate, the full
amount was repaid in July, 2009. The Company has recorded an imputed interest
rate of 8.25% per annum on this loan.
The
Company received a $5,000 loan from its Chief Executive Officer in September
2009. The loan is due on demand and has a stated interest rate of 8%. The
company has recorded imputed interest at the rate of 8% per annum on this
loan.
F-10
NOTE
5 – Loan Payable – Other
On March
16, 2007 the Company received a $10,000 loan from an outside party. The loan is
non-interest bearing and with no stated repayment date. The
Company has not recorded imputed interest on this loan.
NOTE
6 – Note Payable – Related Party / Deferred Financing Costs, Net
On
October 6, 2008, the Company executed an unsecured note from the spouse of the
secretary totaling $27,000. The Company is to pay $35,000, including simple
interest at the rate of 28% per annum on the unpaid balance, the balance of the
note that remains outstanding as of September 30, 2009 is $7,000; the Company
issued 540,000 shares of common stock as stated in the Note. The stock was
issued on December 23, 2008 at $0.03 per share, and recorded as a deferred
financing cost in the amount of $16,200. A summary of the deferred
financing costs as of September 30, 2009 and accumulated amortization is as
follows:
F-11
NOTE
5 – Loan Payable – Other
On March
16, 2007 the Company received a $10,000 loan from an outside party. The loan is
non-interest bearing and with no stated repayment date. The
Company has not recorded imputed interest on this loan.
NOTE
6 – Note Payable – Related Party / Deferred Financing Costs, Net
On
October 6, 2008, the Company executed an unsecured note from the spouse of the
secretary totaling $27,000. The Company is to pay $35,000, including simple
interest at the rate of 28% per annum on the unpaid balance, the balance of the
note that remains outstanding as of September 30, 2009 is $7,000; the Company
issued 540,000 shares of common stock as stated in the Note. The stock was
issued on December 23, 2008 at $0.03 per share, and recorded as a deferred
financing cost in the amount of $16,200. A summary of the deferred
financing costs as of September 30, 2009 and accumulated amortization is as
follows:
F-12
Value
allocated to deferred financing cost
|
$
|
16,200
|
||
Less:
accumulated amortization
|
(10,628
|
)
|
||
Deferred
Financing Costs, Net
|
$
|
5,572
|
These
deferred financing costs are being amortized over the term of the note.
Amortization expense with respect to deferred financing costs amounted to
$10,628, for the year ended September 30, 2009, and is included as a component
of interest expenses in the accompanying statement of operations.
NOTE
7 – Stockholders Equity
Preferred
Stock
The
Company is authorized to issue 10,000,000 shares of preferred stock with such
designations, voting and other rights and preferences as may be determined from
time to time by the Board of Directors.
Common
Stock
During
the Fiscal year ended September 30, 2009
|
·
|
During
the quarter ended December 31, 2008, the Company issued 773,025 shares at
$0.03 per share for a total of $23,191. Of those shares, 540,000 were
issued in conjunction with a note payable (see Note 6) for a total of
$16,200, 50,000 were issued in exchange for setup of company website for a
total of $1,500, and 183,025 were issued for services rendered for a total
of $5,491 There were 93,330 shares sold at $0.03 per share for a total of
$2,800
|
|
·
|
During
the quarter ended March 31, 2009, the Company issued 135,500 shares at
$0.03 per share for services rendered for a total of
$4,066
|
|
·
|
During
the Quarter ended June 30, 2009, the Company issued 30,000 shares for
services rendered at $0.10 per share for a total of
$3,000
|
|
·
|
125,231,000
shares of common stock, at $0.000184 per share, totaling $23,077.
125,000,000 were issued to the three officers and directors. 231,000
shares were issued for services rendered, the total value was $35,600.
There were 15,033,000 shares sold and issued at $0.0011 per share for a
total of $18,300
|
NOTE
8 – Subsequent Events
In
October 2009 the Company issued 7,500,000 shares for services rendered at $0.03
per share for a total of $225,000.
F-13
On
October 12, 2009 the Company changed its certifying accountants from Marcum LLP
to Traci J. Anderson, CPA. Please refer to 8 K/A report filed on October 12,
2009.
ITEM 9.
|
CHANGES
IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE.
|
There
were no events or disagreements requiring disclosure under Item 304(b) of
Regulation S-B during the fiscal year ended September 30, 2009. For
additional information regarding the change in our certifying accountants,
reference is made to our Current Report on Form 8-K/A filed on October 12,
2009.
ITEM
9A(T)
|
CONTROLS
AND PROCEDURES.
|
We
maintain disclosure controls and procedures designed to ensure that information
required to be disclosed in reports filed under the Securities Exchange Act of
1934 (“Exchange Act”) is recorded, processed, summarized and reported within the
specified time periods. Our Chief Executive Officer and Ralph Porretti and Jim
McAlinden our President and Principal Financial Officer, are responsible for
establishing and maintaining our disclosure controls and procedures. The
controls and procedures established by us are designed to provide reasonable
assurance that information required to be disclosed by the issuer in the reports
that it files or submits under the Exchange Act is recorded, processed,
summarized and reported within the time periods specified in the Commission’s
rules and forms.
Under
the supervision and with the participation of our management, including the
Chief Executive Officer and President and Principal Financial Officer, we have
evaluated the effectiveness of our disclosure controls and procedures as
required by Exchange Act Rule 13a-15(b) as of the end of the period covered by
this report. Based on that evaluation, the Chief Executive Officer and President
and Chief Financial Officer have concluded that these disclosure controls and
procedures are effective.
Our
management is responsible for establishing and maintaining adequate internal
control over financial reporting for the company. Internal control over
financial reporting is a process to provide reasonable assurance regarding the
reliability of our financial reporting for external purposes in accordance with
accounting principles generally accepted in the United States of America.
Internal control over financial reporting includes maintaining records that in
reasonable detail accurately and fairly reflect our transactions; providing
reasonable assurance that transactions are recorded as necessary for preparation
of our financial statements; providing reasonable assurance that receipts and
expenditures of company assets are made in accordance with management
authorization; and providing reasonable assurance that unauthorized acquisition,
use, or disposition of company assets that could have a material effect on our
financial statements would be prevented or detected on a timely basis. Because
of its inherent limitations, internal control over financial reporting is not
intended to provide absolute assurance that a misstatement of our financial
statements would be prevented or detected. Our annual report
does not include an attestation report of the Company’s registered public
accounting firm regarding internal control over financial reporting pursuant to
the temporary rules set forth by the Securities and Exchange Commission that
permit the Company to provide only management’s report on the annual
report.
15
As of the
end of the period covered by this report, the Chief Executive Officer and
Principal Financial Officer evaluated the effectiveness of our disclosure
controls and procedures. We evaluated and assessed the effectiveness of our
internal control over financial reporting as of September 30, 2009,
using criteria set forth in the Internal Control—Integrated
Framework issued by the Committee of Sponsoring Organizations of the
Treadway Commission (COSO). Based on the evaluation, the Certifying
Officers concluded that our disclosure controls and procedures were effective to
provide reasonable assurance that information required to be disclosed by us in
the reports that we file or submit under the Exchange Act is recorded,
processed, summarized and reported, within the time periods specified in the
applicable rules and forms, and that it is accumulated and communicated to our
management, including the Certifying Officers, as appropriate to allow timely
decisions regarding required disclosure.
The Chief
Executive Officer, President and Principal Financial Officer has also concluded,
based on his evaluation of our controls and procedures that as of September 30,
2009, our internal controls over financial reporting are effective and provide a
reasonable assurance of achieving their objective.
The Chief
Executive Officer and President and Principal Financial Officer has also
concluded that there was no change in our internal controls over financial
reporting identified in connection with the evaluation that occurred during our
fourth fiscal quarter that has materially affected, or is reasonably likely to
materially affect, our internal control over financial reporting.
Item9B.
|
Other
Information.
|
None
PART
III
Item
10.
|
Directors,
Executive Officers and Corporate
Governance.
|
Executive
Officers and Directors
The
following table sets forth information regarding our executive officers and
directors as of September 30, 2009.
Name
|
Age
|
Position
|
||
Ralph
Porretti
|
61
|
Director,
Chief Executive Officer
|
||
James
McAlinden
|
60
|
Director,
President and Chief Financial Officer
|
||
Peter
Ng
|
32
|
Director, Secretary
and Vice President of
Operations
|
16
Ralph
Porretti, CEO
Ralph
Porretti has extensive multi-industry credentials at the senior management level
in the mortgage, telecom, and real estate fields in both line management and
consulting capacities. Prior to starting NMM, key management positions
included:
|
·
|
Consultant
to Manhattan Mitigation, Inc. from 2/07 to
6/08
|
|
·
|
Managing
Partner at Verde Funding Corporation and President of its Real Estate
Division 2/02 to 1/07.
|
|
·
|
President
and CEO of Best Telecom Installations, Inc. The Company specialized in the
installation of payphone systems and counted the City of New York and
AT&T as its clients 1/99 to
1/02
|
|
·
|
In
1995 Ralph joined American Telecom as a manager and left
l0/98.
|
|
·
|
In
1984 Founded and was President of RD&J Communications, a
switch based long distance carrier service with over 250 employees and
gross sales of $30 million. The Company was sold in 1995 to Davel
Communications, the largest payphone provider in the
U.S.
|
Ralph is
a bottom line manager with marketing, sales and interpersonal skills and a
successful track record in managing startups and promoting
innovation.
He is a
graduate of the International Data Processing Institute, holds an Associate
Brokers License, and is a Member of the Staten Island Board of
Realtors.
Jim
McAlinden, President & Chief Financial Officer
Background
– Jim is an accounting and finance leader with a proven start-up and turn-around
record. His focus has been developing and implementing growth and cost reduction
programs that improve profitability and leverage asset portfolios to maximize
competitive advantage. Over the last 15 years he has held senior positions e.g.
President and/or Chief Financial Officer with three different OTC NASDAQ Firms.
Jim was President of Nexgen Biofuels, Inc. and held various positions such as
CFO and Chief Operating Officer from August 2006 through February 2008. Jim held
various consulting positions before joining Nexgen. In January 2002
Jim joined AirNet Wireless, Inc in 2002 and served as its President until
AirNet’s merger with AIT Wireless. Jim served as CFO for AIT Wireless until
December 2005. Jim has a Bachelors Degree in Accounting from
Sir George Williams (Concordia) University.
McAlinden
and Porretti worked hand and hand (during the 1980’s and 1990’s) in owning and
operating Rd & J Communications, Inc., one of the fastest growing privately
held communication companies in the United States. This team has worked in many
capacities through the years on various projects. Their combined experience and
mutual respect gives them a significant advantage in managing the startup and
expanding operations of NMS.
17
Peter NG,
Secretary and Vice President Operations
Background - Peter has worked in a
senior management position for Manhattan Mitigation Corp a successful major
mortgage mitigation firm during 2007-2008. He was in charge of the complete
daily operations for this start up firm from hiring a new operational staff to
training and the structuring of the staff’s daily activities. Peter’s
previous experience is in the mortgage financing industry holding senior
management positions with Guaranteed Home Mortgage Company from 10/01 to 2/02
and again from 2/04 to 3/08. From 12/02 to 1/04 Peter served as a senior manager
at Berkshire Financial Group, Inc. Porretti and NG have worked together in the
financial industry over the last 7 years
Family
Relationships
There are
no family relationships among any of our directors or executive
officers.
Legal
Proceedings
During
the past five years, none of our directors, executive officers or control
persons has been involved in any of the following
events:
|
·
|
any
bankruptcy petition filed by or against any business of which such person
was an executive officer either at the time of the bankruptcy or within
two years prior to that time;
|
|
·
|
any
conviction in a criminal proceeding or being subject to a pending criminal
proceeding (excluding traffic violations and other minor
offenses);
|
|
·
|
being
subject to 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
|
|
·
|
being
found by a court of competent jurisdiction (in a civil action), the
Securities and Exchange 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.
|
Audit
Committee
As of the
date of this annual report for the fiscal year ended September, 30, 2009, we
have no standing committees and our entire board of directors serves as our
audit and compensation committees.
18
ITEM
11.
|
EXECUTIVE
COMPENSATION.
|
The
following table sets forth all compensation awarded, paid to or earned by our
Chief Executive Officer, who was our only executive officer during the fiscal
year ended September 30, 2009.
Summary Compensation Table
|
|||||||||||||||||||||||||||||||||
Name and principal position
|
Year
|
Salary ($)
|
Bonus ($)
|
Stock Awards
($)
|
Option Awards
($)
|
Non-Equity
Incentive
Plan
Compen-
sation
($)
|
Non-
qualified
Deferred
Compen-
sation
Earnings
($)
|
All Other
Compen-
sation
($)
|
Total
Compensation
($)
|
||||||||||||||||||||||||
Ralph
Porretti, Chief Executive Officer
|
2009
|
$ | 52,000 | — | — | — | — | — | — | $ | 52,000 | ||||||||||||||||||||||
James
McAlinden, President and CFO
|
2009
|
$ | 52,000 | — | — | — | — | — | — | $ | 52,000 | ||||||||||||||||||||||
Peter
Ng, VP Operations
|
2009
|
$ | 52,000 | — | — | — | — | — | — | $ | 52,000 |
The
following table sets forth certain information concerning unexercised options,
stock that has not vested, and equity incentive plan awards for each of our
named executive officers outstanding as of September 30, 2009.
Outstanding Equity Awards at Fiscal Year-End
|
||||||||||||||||||||||||||||||||||||
Option Awards
|
Stock Awards
|
|||||||||||||||||||||||||||||||||||
Name
|
Number of
securities
underlying
unexercised
options (#)
Exercisable
|
Number of
securities
underlying
unexercised
options (#)
Unexercisable
|
Equity
Incentive
Plan
Awards:
Number of
Securities
underlying
unexercised
unearned
options (#)
|
Option
exercise
price ($)
|
Option
expiration
date
|
Number
of shares
or units
of stock
that have
not
vested
(#)
|
Market
value of
shares or
units of
stock that
have not
vested
($)
|
Equity
incentive
plan
awards:
number
of
unearned
shares,
units or
other
rights
that have
not
vested
(#)
|
Equity
incentive
plan
awards:
Market
or payout
value of
unearned
shares,
units or
other
rights
that have
not
vested
($)
|
|||||||||||||||||||||||||||
Ralph
Porretti, Chief Executive Officer
|
— | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
James
McAlinden, President & CFO
|
— | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Peter
Ng, VP Operations
|
— | — | — | — | — | — | — | — | — |
Director
Compensation
No salary
or regular compensation is paid to our directors. Pursuant to our bylaws, our
directors are eligible to be reimbursed for their actual out-of-pocket expenses
incurred in attending board meetings and other director functions, as well as
fixed fees and other compensation to be determined by our board of directors. No
such compensation or expense reimbursements have been requested by our directors
or paid to date.
19
ITEM
12.
|
SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED
STOCKHOLDER MATTERS.
|
The
following table sets forth certain information regarding the beneficial
ownership of our common stock as of November 30, 2009. The information in this
table provides the ownership information for:
|
·
|
each
person known by us to be the beneficial owner of more than 5% of our
common stock;
|
|
·
|
each
of our directors and executive officers;
and
|
|
·
|
all
of our directors and executive officers as a
group.
|
Beneficial
ownership has been determined in accordance with the rules and regulations of
the SEC and includes voting or investment power with respect to our common stock
and those rights to acquire additional shares within sixty days. Unless
otherwise indicated, the persons named in the table below have sole voting and
investment power with respect to the number of shares of common stock indicated
as beneficially owned by them, except to the extent such power may be shared
with a spouse. Common stock beneficially owned and percentage ownership are
based on 165,186,483 shares of common stock currently outstanding and no
additional shares potentially acquired within sixty days.
Name and address of beneficial owner (1)
|
Amount and nature of
beneficial ownership
|
Percent of Class
|
||||||
Ralph
Porretti
|
44,366,667 | 26.9 | % | |||||
James
McAlinden
|
46,166,666 | 27.9 | % | |||||
Peter
Ng
|
45,516,667 | 27.6 | % | |||||
JW
Financial
|
15,000,000 | 9.1 | % | |||||
All
officers and directors as a group
|
136,050,000 | 82.4 | % |
(1)
|
The
address of each person listed is care of Tia IV, Inc., 1761 Victory Blvd.,
Staten Island, NY
10314.
|
ITEM
13.
|
CERTAIN
RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR
INDEPENDENCE.
|
We have
determined that our directors, Ralph Porretti, James McAlinden and
Peter Ng are not independent based on an analysis of the standards for
independence set forth in Section 121A of the American Stock Exchange Company
Guide.
ITEM
14.
|
PRINCIPAL
ACCOUNTANT FEES AND SERVICES.
|
The
following table sets forth the aggregate amount of various professional fees
billed by our principal accountants with respect to our last two fiscal
years:
20
Year Ended September 30
|
2009
|
2008
|
||||||||||||||
(Marcum)
|
(Anderson) (5)
|
(Marcum)
|
(Anderson) (5)
|
|||||||||||||
Audit
Fees (1)
|
$ | $ | 10,000 | $ | 15,000 | $ | - | |||||||||
Audit
Related Fees (2)
|
- | - | - | - | ||||||||||||
Tax
Fees (3)
|
- | - | - | |||||||||||||
All
Other Fees (4)
|
40,649 | - | - | |||||||||||||
Total
Accounting Fees and Services
|
$ | 40,649 | $ | 10,000 | $ | 15,000 | $ | - |
|
(1)
|
Audit
Fees: These are fees for professional services for the audit of
our annual financial statements, and for the review of the financial
statements included in our filings on Forms 10-QSB (now 10-Q), and for
services that are normally provided in connection with statutory and
regulatory filings or engagements.
|
|
(2)
|
Audit-related
Fees: These are fees for the assurances and related services
reasonably related to the performance of the audit or the review of our
financial statements.
|
|
(3)
|
Tax
Fees: These are fees for professional services with respect to
tax compliance, tax advice, and tax
planning.
|
|
(4)
|
All
Other Fees: These are fees for permissible work that does not
fall within any of the other fee categories, i.e., Audit Fees,
Audit-related Fees or Tax Fees.
|
|
(5)
|
All
Audit Fees are approved by our board of directors. For the
fiscal year ended September 30, 2008, Marcum, LLP served as our
independent accountant. As previously disclosed in a current
report on Form 8-K filed with the SEC on October 12, 2009,the company
discharged Marcum, LLP and we appointed Traci J. Anderson CPA as our new
independent accountant for the fiscal year ended September 30,
2009.
|
Pre-Approval
Policy for Audit and Non-Audit Services
We do not
have a standing audit committee, and the full Board performs all functions of an
audit committee, including the pre-approval of all audit and non-audit services
before we engage an accountant.
PART
IV
ITEM 15.
EXHIBITS AND FINANCIAL STATEMETN SCHEDULES.
No.
|
Description
of Exhibit
|
31.1
|
Certification
of Chief Executive Officer and Director,
|
32.1
|
Certification
of Chief Accounting
Officer
|
21
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.
Date: January
5, 2010
|
||
Tia
IV, Inc.
|
||
By:
|
/s/
James McAlinden
|
|
James
McAlinden
|
||
President
and Chief Financial
Officer
|
22