Redify Group, Inc. - FORM 10-Q

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EX-32 - 906 CERTIFICATION - Redify Group, Inc.	ex32.htm
EX-31 - 302 CERTIFICATION OF THE CEO - Redify Group, Inc.	ex311.htm
EX-31 - 302 CERTIFICATION OF THE CFO - Redify Group, Inc.	ex312.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT of 1934

For the quarterly period ended: March 31, 2011

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

For the transition period from to

Commission file Number: 0-19470

TGFIN HOLDINGS, INC.

(Exact name of registrant as specified in its Charter)



Delaware	13-4069968
(State or other Jurisdiction of Incorporation or organization)	(I.R.S. Employer Identification No.)

101 North Main Street, Suite B

Smithfield, Utah 84335

(Address of Principal Executive Offices)

(435) 563-8080

(Registrant’s Telephone Number, including area code)

Indicate by check mark whether the Registrant (1) has 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 Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. (1) Yes [X] No [ ]

Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§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:

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 [ ] No [X]

Applicable Only to Registrants Involved in Bankruptcy Proceedings During the Preceding Five Years

Not applicable.

Outstanding Shares

At May 14, 2011 there were 23,321,045 shares of the Registrant's Common Stock and 50,400 shares of Series 1 Class A 8% Cumulative Preferred Stock outstanding.

TGFIN HOLDINGS, INC. AND SUBSIDIARY

TABLE OF CONTENTS

PAGE

PART I. FINANCIAL INFORMATION

Item 1. Consolidated Financial Statements

Unaudited Condensed Consolidated Balance Sheet

as of March 31, 2011 and Audited Consolidated

Balance Sheet as of December 31, 2010 4

Unaudited Condensed Consolidated Statements of

Operations, for the Three Month Periods

Ended March 31, 2011 and 2010 5

Unaudited Condensed Consolidated Statements of Cash

Flows, for the Three Month Periods Ended

March 31, 2011 and 2010 6

Notes to Unaudited Condensed Consolidated

Financial Statements 8

Item 2. Management's Discussion and Analysis of Financial

Condition or Plan of Operation 12

Item 3. Quantitative and Qualitative Disclosures About

Market Risks 13

Item 4. Controls and Procedures 13

PART II. OTHER INFORMATION 15

SIGNATURES 16

PART I FINANCIAL INFORMATION

ITEM 1 CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2011

TGFIN HOLDINGS, INC. AND SUBSIDIARY

(A Development Stage Company)

CONDENSED CONSOLIDATED BALANCE SHEETS

March 31, December 31,

2011 2010

------------- ------------

(Unaudited)

ASSETS

Current Assets:

Cash and cash equivalents $ 3,666 3,692

Prepaid expenses - 463

------------ ------------

Total Current Assets 3,666 4,155

Software, net of $4,449 and

$3,449 of Accumulated

Amortization, respectively 7,551 8,551

------------ ------------

Total Assets $ 11,217 $ 12,706

============ ============

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:

Accounts payable $ 13,057 $ 9,153

Accrued expenses 1,789 1,204

Stock compensation payable 15,000 13,000

Convertible notes payable 31,500 31,500

------------ -----------

Total Current Liabilities 61,346 54,857

----------- -----------

Stockholders' Equity:

Preferred stock ($0.01 par value)

1,000,000 shares authorized,

50,500 shares issued

and outstanding 504 504

Common stock ($.01 par value),

50,000,000 shares authorized,

23,321,045 and 23,321,045 issued and

outstanding, respectively 233,210 233,210

Additional paid-in-capital 3,859,782 3,847,782

Retained deficit prior to

development stage (1,077,064) (1,077,064)

Retained deficit during

development stage (3,066,561) (3,046,584)

----------- ------------

Total Stockholders' Equity (50,129) (42,151)

----------- ------------

Total Liabilities and

Stockholders' Equity $ 11,217 $ 12,706

=========== ============

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

TGFIN HOLDINGS, INC. AND SUBSIDIARY

(A Development Stage Company)

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

From

Inception

Of the

Development

For the Stage on

Three Months Ended April 1, 2003

March 31, to

2011 2010 March 31, 2011

REVENUES $ 44 $ 67 $ 308

---------- ----------- ------------

COST OF GOODS SOLD - - -

---------- ----------- ------------

GROSS PROFIT $ 44 $ 67 $ 308

---------- ----------- ------------

EXPENSES

Payroll and related $ 14,000 $ 21,731

Selling, General &

Administrative 1,262 13,487

Legal and Professional 3,760 5,926

Amortization 1,000 -

---------- -----------

TOTAL OPERATING

EXPENSE 20,022 41,144 3,203,934

---------- ----------- -----------

OPERATING LOSS (19,978) (41,077) (3,203,626)

---------- ----------- -----------

OTHER INCOME:

INTEREST INCOME 1 10 137,065

---------- ----------- -----------

TOTAL OTHER INCOME 1 10 137,065

---------- ----------- -----------

NET LOSS $ (19,977) $ (41,067) $(3,066,561)

========== =========== ===========

BASIC AND

DILUTED INCOME

LOSS PER SHARE: $ (0.00) $ (0.00)

========== ===========

Weighted Average

Number of shares

Outstanding 23,321,045 23,310,045

========== ===========

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

TGFIN HOLDINGS, INC. AND SUBSIDIARY

(A Development Stage Company)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

From

Inception

Of the

For The Development

Three Months Ended Stage on

March 31, April 1, 2003 to

2011 2010 March 31, 2011

Cash Flows from Operating Activities:

Net Loss $ (19,977) $ (41,067) $ (3,066,561)

Adjustments to reconcile

net loss to net cash used

in operating activities:

Amortization of deferred

compensation - - 13,751

Amortization of software 1,000 - 4,449

Compensation costs of

common stock issued to

employees and consultants 2,000 1,000 150,355

Cost of donated services 12,000 17,000 67,000

Cost of common stock

issued to shareholders - - 16,500

Changes in assets and

liabilities:

Decrease (increase)in:

Accounts receivable - (67) 31,250

Prepaid expenses 463 (2,172) 14,752

Deposits - 500 -

Increase (decrease)in:

Accounts payable and

accrued expenses 4,488 5,027 (212,648)

---------- ---------- -----------

Net Cash Used In Operating

Activities (26) (19,779) (2,981,152)

--------- ---------- ----------

Net Cash Provided By

Investing Activities: - - -

--------- ---------- ----------

Cash Flows From Financing

Activities:

Convertible notes payable - - 31,500

--------- ---------- ----------

Net Decrease

In Cash and Cash

Equivalents (26) (19,779) (2,949,652)

Cash and Cash Equivalents,

Beginning of Period 3,692 23,505 2,953,318

--------- ---------- ----------

Cash and Cash Equivalents,

End of Period $ 3,666 $ 3,726 $ 3,666

========= ========== ==========

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

TGFIN HOLDINGS, INC. AND SUBSIDIARY

(A Development Stage Company)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)

(Unaudited)

From

Inception

Of the

Development

For The Stage on

Three Months Ended April 1, 2003

March 31, To

2011 2010 March 31, 2011

Cash Paid During

the Period For:

Income Taxes $ - $ - $ 12,609

========== ========== ===========

Interest $ - $ - $ -

========== ========== ===========

Supplemental

Disclosures of

Non-cash Investing and

Financing Activities:

Common stock issued

For accrued liabilities $ - $ - $ 51,230

========== ========== ==========

Common stock issued to

Prior Shareholders $ - $ - $ 16,500

========== ========== ==========

Conversion of Preferred

Stock

$ - $ - $ 2

========== ========== ==========

Common stock options

Issued for software

Purchase $ - $ - $ 5,114

========== ========== ==========

Software acquired with

Common stock options $ - $ - $ 12,000

========== ========== ==========

The accompanying notes are an integral part of these condensed consolidated Financial Statements.

TGFIN HOLDINGS, INC. AND SUBSIDIARY

(A Development Stage Company)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2011 and DECEMBER 31, 2010

NOTE 1: THE COMPANY AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The Company

The Company consists of TGFIN Holdings, Inc. ("TGFIN") and its sole and

wholly-owned operating subsidiary, TradinGear.Com Incorporated ("TradinGear", together, the "Company"). TGFIN was incorporated under the laws of Delaware in March 1985 (originally as Mark, Inc.). TradinGear was incorporated under the laws of the State of Delaware on July 7, 1999. TGFIN Holdings, Inc. previously a shell company, other than a business combination related shell company, as those terms are defined in Rule 12b-2 under the Exchange Act (17 CFR 240.12b-2) completed a transaction on February 19, 2010 that had the effect of causing it to cease to be a shell company, as defined in Rule 12b-2 by reactivating its previously inactive operating subsidiary, Tradingear.com Incorporated (“Tradingear”) in order to resume its previous business of developing software, under a new d/b/a: iDEV3.

TradinGear produces software applications (“Apps”) for telephones and other hand-held devices.

Condensed financial statements

The accompanying financial statements have been prepared by the Company without audit. They include information of TGFIN and TradinGear. In the opinion of management, all material adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position at March 31, 2011 and the results of operations and cash flows for the three month periods ended March 31, 2011 and 2010 have been made.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company's December 31, 2010 audited financial statements. The results of operations for the periods ended March 31, 2011 and 2010 are not necessarily indicative of the operating results for the respective full years.

Revenue recognition

The company sells its current software at the Online Apple Store, which records all sales made on a daily basis. The company recognizes its portion of the sales as revenue as of the date of the sale.

TGFIN HOLDINGS, INC. AND SUBSIDIARY

(A Development Stage Company)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2011 and DECEMBER 31, 2010

NOTE 2: COMMITMENTS AND CONTINGENCIES

Litigation

In the normal course of business, there may be various legal actions and proceedings pending which seek damages against the Company. As of March 31, 2011 there were no other claims asserted or threatened against the Company.

NOTE 3: GOING CONCERN QUALIFICATION

The Company has been a Development Stage Company since April 1, 2003. It has continuously sought an acceptable merger or acquisition candidate during that period and has incurred losses each year. For the quarter ended March 31, 2011 the company lost $19,977 and had a Retained Deficit of $4,143,625. The company’s cash reserves of $3,666 as of March 31, 2011 are not adequate to fund all of the anticipated expenses for the year ending December 31, 2011. See NOTE 8: SUSEQUENT EVENT: On May 20, 2011 the company received additional cash in the form of Convertible Notes payable for $7,000. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result from the outcome of this uncertainty.

The company plans to merge with, acquire existing Apps or companies, and continue to operate during the year ending December 31, 2011. Should the acquired or merged operating entity not have sufficient resources of its own to fund the combined entity’s operations, the Company will issue stock to raise sufficient operating capital if sufficient capital is not raised from operations.

NOTE 4: INTANGIBLE ASSETS

A Former Officer of the Company contributed Intangible Assets to the Company valued at his predecessor’s cost of $12,000. These assets consist of selected iphone Applications. The Company has capitalized these intangible assets and is amortizing them over a 3 year period. During the quarter ended March 31, 2011 and 2010, the Company recorded Amortization expense of $1,000 and -0-, respectively.

TGFIN HOLDINGS, INC. AND SUBSIDIARY

(A Development Stage Company)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2011 and DECEMBER 31, 2010

(Continued)

NOTE 5: CONVERTIBLE NOTES PAYABLE

March 31,

2011 2010

Convertible 8% Demand Notes Payable $ 31,500 $ -

---------- ---------

Total Notes payable $ 31,500 $ -

========== =========

The Convertible 8% Notes Payable were originated on April 1, May 3, June 22, and August 18, 2010 for $5,000, $10,000, $5,000, and $11,500, respectively, to reflect working capital funding provided by Sam Gaer, the company’s single largest shareholder. The Notes are convertible into common stock of TGFIN at $.03 per share at any time at the holder’s option. Accrued interest related to these notes as of March 31, 2011 was $1,789.

NOTE 6: STOCK OPTIONS AND WARRANTS

A summary of the status of the Company's outstanding stock options and warrants (all of which were exercisable) as of March 31, 2011 and 2010 and changes during the years then ended, is presented below:

2011 2010

Weighted Weighted

Average Average

Exercise Exercise

Shares Price Shares Price

Outstanding, beginning of

quarter 600,000 $ 0.03 - $ -

Granted - - 600,000 0.03

Expired/Cancelled - - - -

Exercised - - - -

------- ------ ------- --------

Outstanding end of

Quarter 600,000 $ 0.03 600,000 $ 0.03

======== ====== ======= ========

Exercisable 600,000 $ 0.03 600,000 $ 0.03

======== ====== ======= ========

NOTE 7: CAPITAL STOCK

Common stock

The authorized capital stock of the Company consists of 50,000,000 shares of common stock, par value $.01 per share, of which 23,321,045 were outstanding at March 31, 2011.

GFIN HOLDINGS, INC. AND SUBSIDIARY

(A Development Stage Company)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2011 and DECEMBER 31, 2010

(Continued)

Common stock (continued)

On January 1, 2011 the Company awarded 100,000 shares of common stock to each Director in accordance with a Board Resolution. The shares were valued at the market price at the date of issuance of $.01 per share, resulting in compensation expense of $2,000, and since as of May 14, 2011, the shares have not been issued, stock compensation payable of $2,000 has been accrued for the quarter.

Preferred stock

The Series 1 Class A 8% Cumulative Convertible Preferred Stock has a par value of $0.01 per share. As of March 31, 2011 there were 50,400 shares outstanding. Holders of preferred shares are entitled to cumulative dividends of 8% per annum on the stated value of the stock, designated at $7 per share. Dividends are payable semi-annually on September 15 and March 15. No dividends have been paid since March 15, 1993, resulting in dividends in arrears at March 31, 2011 of approximately $508,032 or $10.08 per share. Dividends are not payable on any other class of stock ranking junior to the preferred stock until the full cumulative dividend requirements of the preferred stock have been satisfied. The preferred stock carries a liquidation preference equal to its stated value plus any unpaid dividends. Holders of the preferred stock are entitled to one-tenth of a vote for each share of preferred stock held. The Company may, at its option, redeem at any time all shares of the preferred stock or some of them upon notice to each preferred stockholder at a per share price equal to the stated value ($7.00) plus all accrued and unpaid dividends thereon (whether or not declared) to the date fixed for redemption, subject to certain other provisions and requirements. Preferred Shares may be converted into Common Shares on a one share of Preferred Stock for two shares of Common Stock basis.

NOTE 8: SUBSEQUENT EVENTS

On May 20, 2011 the company received additional cash in the form of Convertible Notes payable for $7,000. The Convertible Notes are payable on Demand, bear interest at 8% per annum and are convertible into common stock at $.015 per share at any time the holder desires.

PART 1 FINANCIAL INFORMATION (Continued)

ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS AND PLAN OF OPERATIONS

Management's Discussion and Analysis:

The following discussion should be read in conjunction with the consolidated historical financial statements of the Company and related notes thereto included elsewhere in this Form 10-Q and the Annual Report on Form 10-K for the year ended December 31, 2010. This discussion contains forward-looking statements regarding the business and industry of the Company within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current plans and expectations of the Company and involve risks and uncertainties that could cause actual future activities and results of operations to be materially different from those set forth in the forward-looking statements.

The information set forth and discussed below for the three months ended March 31, 2011 and March 31, 2010 is derived from the consolidated financial statements included elsewhere herein. The financial information set forth and discussed below is un-audited but, in the opinion of management, reflects all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of such information. The results of operations of the Company for the fiscal quarter ended March 31, 2011 may not be indicative of results expected for the entire fiscal year ended December 31, 2011.

Liquidity and Capital Resources:

At its current level of operations, the Company will need to begin profitable operations, borrow and or raise additional capital during the next fiscal year.

Capital expenditures planned for the current year are not expected to be significantly different than those of the previous year.

Results of Operations:

Operating costs of $20,022 for the three months ended March 31, 2011 decreased $21,122, or 51.3%, versus those of the three months ended March 31, 2010 due primarily to the following: 1) a reduction in the amount and imputed cost of donated labor; 2) a decease in Selling, General and Administrative expenses of $12,225, or 90.6% due primarily to a decrease in insurance expense of $6,267 or 93.1%; and 3) a decrease in Legal and Professional expenses of $2,167 or 36.6%.

PLAN OF OPERATIONS

Management's Plans are to seek App providers who wish to “equitize” their Apps’ potential by selling their developed App(s) for shares in TGFIN.

The company will always be open to other merger or acquisition candidates, depending upon the circumstances and opportunity offered. Management's main objective is to seek to increase shareholder value. All viable alternatives will be evaluated, including, but not limited to: investments, mergers, purchases, or the offering of Company securities, etc. Alternatives that provide existing shareholders with the greatest potential benefit will be favored.

Management encourages its shareholders to communicate directly with the Company for its typical investor relations, including address changes and for general corporate information by calling or writing to the Company at its administrative offices or by posting a message to idev3.com. Management also encourages shareholders to keep their address current with the Company.

DISCLOSURE REGARDING FORWARD LOOKING STATEMENTS

This quarterly report includes forward looking statements which involve risks and uncertainties. Such statements can be identified by the use of forward-looking language such as "will likely result", "may", "are expected to", "is anticipated", "estimate", "believes", "projected", or similar words. All statements other than statements of historical fact included in this section, are forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been

correct. The Company's actual results could differ materially from those anticipated in any such forward-looking statements as a result of various risks, including, without limitation, the dependence on a single line of business; the failure to close proposed financing; rapid technological change; inability to attract and retain key personnel; the potential for significant fluctuations in operating results; the loss of a major customer; and the potential volatility of the Company's common stock.

ITEM 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The company does not operate and its only assets are fully insured interest-bearing checking and savings accounts. Therefore, this item is not applicable given the company’s current operations.

ITEM 4: CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

As of the end of the period covered by this quarterly report, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934 (the “Exchange Act”)), and management necessarily applied its judgment in assessing the costs and benefits of such controls and procedures, which, by their nature, can provide only reasonable assurance regarding management’s control objectives. You should note

that the design of any system of controls is based in part upon certain assumptions about the likelihood of future events, and we cannot assure you that any design will succeed in achieving its stated goals under all potential future conditions, regardless of how remote. Based upon the foregoing evaluation, our Chief Executive Officer and the Chief Financial Officer 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 rules and forms of the SEC, and to provide reasonable assurance 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 disclosure.

Internal Control Over Financial Reporting

There were no changes in internal control over financial reporting that occurred during the first quarter of 2011 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II OTHER INFORMATION

ITEM 1 Legal Proceedings

Company.

ITEM 1A. Risk Factors

This item is not required of smaller reporting companies.

ITEM 2 Unregistered Sales of Equity Securities and Use of Proceeds

None

ITEM 3 Defaults on Senior Securities

Holders of Series 1 Class A 8% Cumulative Convertible Preferred Stock are entitled to receive cumulative dividends at the annual rate of $.56 per share, payable semi-annually on September 15 and March 15 of each year beginning September 15, 1992. Unpaid dividends have resulted in aggregate dividends in arrears of $508,032. The potential liability for dividends in arrears is contingent upon the Company's declaration of a dividend. The company does not plan to declare a dividend.

ITEM 4 Removed and Reserved

ITEM 5 Other Information.

None.

ITEM 6 Exhibits

Exhibits

31.1 302 Certification

31.2 302 Certification

32 Certification of Chief Executive Officer and Chief Financial

Officer Pursuant to 18 U.S.C. Section 1350, Section 906 of the

Sarbanes-Oxley Act of 2002

SIGNATURES

In accordance with the requirements of the Exchange Act, the Registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: May 23, 2011

TGFIN Holdings, Inc.

(Registrant)

By_/s/ Scott Emerson Lybbert_

Scott Emerson Lybbert, President

Principal Executive Officer,

Principal Financial Officer

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