Pinpoint Advance CORP - FORM 10-K

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EXCEL - IDEA: XBRL DOCUMENT - Pinpoint Advance CORP	Financial_Report.xls
EX-32.1 - EXHIBIT 32.1 - Pinpoint Advance CORP	v307263_ex32-1.htm
EX-31.1 - EXHIBIT 31.1 - Pinpoint Advance CORP	v307263_ex31-1.htm
EX-32.2 - EXHIBIT 32.2 - Pinpoint Advance CORP	v307263_ex32-2.htm
EX-31.2 - EXHIBIT 31.2 - Pinpoint Advance CORP	v307263_ex31-2.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-K

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

For The fiscal year ended December 31, 2011

o	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: 000-52562

Pinpoint Advance Corp.

(Exact name of registrant as specified in its charter)

Delaware	33-1144642
(State or other jurisdiction of	(I.R.S. Employer Identification No.)
incorporation or organization)

4 Maskit Street
Herzeliya, Israel	46700
(Address of principal executive offices)	(Zip Code)

972 9-9500245

Registrant’s telephone number, including area code

Securities registered pursuant to Section 12(b) of the Act: None

Securities registered pursuant to Section 12(g) of the Act:

Title of each Class

Common Stock, $.0001 par value per share

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ¨ No x

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 ¨ No x

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

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

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

Large accelerated filer o	Accelerated filer o
Non-accelerated filer o	Smaller reporting company x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes x No o.

The aggregate market value of the outstanding common stock, other than shares held by persons who may be deemed affiliates of the registrant, computed by reference to the closing sales price for the Registrant’s Common Stock on June 30, 2011, as reported on the OTC Bulletin Board, was approximately $0.

As of March 21, 2012, there were 3,484,402 shares of common stock, par value $.0001 per share, of the registrant outstanding.

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 x

TABLE OF CONTENTS

PART I
Item 1	Business	2
Item 1A	Risk Factors	5
Item 1B	Unresolved Staff Comments	11
Item 2	Properties	11
Item 3	Legal Proceedings	11
Item 4	Mine Safety Disclosure	12

PART II
Item 5	Market For Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	13
Item 6	Selected Financial Data	13
Item 7	Management’s Discussion and Analysis of Financial Condition and Results of Operations	13
Item 7A	Quantitative and Qualitative Disclosures About Market Risk	17
Item 8	Financial Statements and Supplementary Data	17
Item 9	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	17
Item 9A	Controls and Procedures	17
Item 9B	Other Information	19

PART III
Item 10	Directors and Executive Officers and Corporate Governance	19
Item 11	Executive Compensation	21
Item 12	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	21
Item 13	Certain Relationships and Related Transactions, and Director Independence	22
Item 14	Principal Accounting Fees and Services	23

PART IV
Item 15	Exhibits and Financial Statement Schedules	24

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Annual Report on Form 10-K (“Annual Report”) includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can be identified by the use of forward-looking terminology, including the words “believes,” “estimates,” “anticipates,” “expects,” “intends,” “plans,” “may,” “will,” “potential,” “projects,” “predicts,” “continue,” or “should,” or, in each case, their negative or other variations or comparable terminology. Such statements include, but are not limited to, any statements relating to our ability to consummate any acquisition or other business combination and any other statements that are not statements of current or historical facts. These statements are based on management’s current expectations, but actual results may differ materially due to various factors, including, but not limited to, our:

being a development stage company with no operating history;

dependence on key personnel, some of whom may join us following an initial transaction, if any;

personnel allocating their time to other businesses and potentially having conflicts of interest with our business;

potentially being unable to obtain financing to complete an initial transaction, if any;

limited pool of prospective target businesses;

potential change in control if we acquire one or more target businesses for stock;

delisting of our securities from the OTC Bulletin Board or our inability to have our securities quoted on the OTC Bulletin Board or any exchange following a business combination;

financial performance following an initial transaction, if any; or

those other risks and uncertainties detailed in the Registrant’s filings with the Securities and Exchange Commission.

By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. We caution you that forward-looking statements are not guarantees of future performance and that our actual results of operations, financial condition and liquidity, and developments in the industry in which we operate may differ materially from those made in or suggested by the forward-looking statements contained in this Annual Report on Form 10-K. In addition, even if our results of operations, financial condition and liquidity, and developments in the industry in which we operate are consistent with the forward-looking statements contained in this Annual Report on Form 10-K, those results or developments may not be indicative of results or developments in subsequent periods.

These forward-looking statements are subject to numerous risks, uncertainties and assumptions about us described in our filings with the Securities and Exchange Commission. The forward-looking events we discuss in this Annual Report on Form 10-K speak only as of the date of such statement and might not occur in light of these risks, uncertainties and assumptions. Except as required by applicable law, we undertake no obligation and disclaim any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

PART I

Item 1. Business

Overview

Pinpoint Advance Corp. (the “Company”, “we”, or “us”) is a blank check company. We were organized under the laws of the State of Delaware on September 6, 2006. We were formed for the purpose of acquiring, merging with, engaging in a capital stock exchange with, purchasing all or substantially all of the assets of, or engaging in any other similar business combination with a business that has operations or facilities located in Israel or which is a company operating outside of Israel, specifically in Europe, which management believes would benefit from establishing operations or facilities in Israel, preferably in the technology sector (“Business Combination”). On May 18, 2009, our Second Amended and Restated Certificate of Incorporation became effective, to (i) effectuate the redemption of shares (“IPO Shares”) issued in the Company’s initial public offering (“IPO”) for cash from the trust account (“Trust Account”) in the amount per share of $9.91 (the “Redemption”), and in connection with the Redemption, distribute to holders of the IPO Shares one new share of common stock (“New Common Stock”) for every eight IPO Shares redeemed; (ii) create a new class of common stock called Class A Common Stock and exchange each share of common stock issued by the Company prior to its IPO (“Founder Shares”) for five shares of Class A Common Stock; and (iii) eliminate the blank check company restrictions by amending Article THIRD and deleting Article SIXTH in its entirety to allow for the continuation of our corporate existence.

On May 19, 2009, we (i) completed the distribution of cash from our Trust Account in the aggregate amount of $28,491,250 to holders of 2,875,000 IPO Shares, which IPO Shares were redeemed and then cancelled, and (ii) issued an aggregate of 359,402 shares of New Common Stock in connection with the Redemption. Holders of the New Common Stock currently own approximately 10% of the Company’s aggregate outstanding common equity. All units issued in the IPO were split into their respective common stock and warrants, with the common stock being redeemed as described above. The Company’s warrants expired on April 19, 2011.

On May 19, 2009, we issued an aggregate of 3,125,000 shares of Class A Common Stock in exchange for surrender and cancellation of 625,000 Founder Shares. The Class A Common Stock has the same rights, preferences and privileges as the New Common Stock. Holders of the New Common Stock and Class A Common Stock will vote together as one class on all matters (including the election of directors) submitted to a vote of the stockholders. Our management has operated the Company since its formation and has over 100 years of combined experience in operating public companies. Our management has agreed not to accept compensation until consummation of a business combination.

Business

All activity from inception (September 6, 2006) through May 19, 2009 was related to the Company’s formation and capital raising activities and seeking a suitable Business Combination. Following the approval of our stockholders to continue our existence at a meeting of stockholders held on May 15, 2009, our objective is to achieve long-term growth potential through one or more combinations with operating companies or businesses. We will not restrict our search for potential candidates to companies engaged in any specific business, industry or geographical location and, thus, may acquire any type of business. We also will continue to pursue certain claims of the Company against a third party, as described below.

Our executive offices are located at 4 Maskit Street, Herzeliya, Israel 46700 and our telephone number at that location is 972-9-9500245. We currently have a website at www.pinpointac.com and consequently we make available on the Internet materials that we file with or furnish to the Securities and Exchange Commission. We will still provide electronic or paper copies of such materials free of charge upon request.

On October 27, 2008, the Company announced it had executed a letter of intent to effectuate a Business Combination with a privately-held company with its headquarters in Israel (the “LOI”). All parties to the LOI negotiated the terms of a definitive agreement and in fact, a definitive agreement (the “Agreement”) was executed by all parties to the LOI. However, one of the parties (the “Objecting Party”) to the Agreement claimed it never released its signature thereto and has since indicated that it no longer wishes to pursue the proposed business combination.

The Company believes a binding, definitive agreement was executed by all parties. However, because one of the parties had indicated its position that no binding agreement existed and that it did not wish to continue with negotiations, the Company determined to liquidate the Trust Account established by the Company for the benefit of its public stockholders, and return funds to the holders of shares of the Company’s common stock issued in the IPO, in accordance with its IPO prospectus and the terms of its amended and restated certificate of incorporation.

The Company’s Amended and Restated Certificate of Incorporation provided for mandatory liquidation of the Company in the event that the Company did not consummate a Business Combination within 18 months from the date of the consummation of its IPO, or 24 months from the consummation of the IPO, if certain extension criteria had been satisfied. In October 2008 the Company announced its termination of a letter of intent for potential business combination plans as well as its plan to distribute the amount held in the Trust Fund to its stockholders and to adopt a plan for continued corporate existence.

At a special meeting held on May 15, 2009, a majority of the Company’s stockholders voted in favor of the proposal to remove the blank check company restrictions from the Company’s charter, thereby allowing the Company to continue its corporate existence. In accordance with stockholder approval of the Company’s proposals, on May 19, 2009 the Company effectuated the Redemption in the amount of $9.91 per share from the Trust Account, and distributed one share of New Common Stock for every eight IPO Shares redeemed, for an aggregate of 359,402 shares of New Common Stock. The stockholders also approved the creation of the Class A Stock and the exchange of each share of common stock owned by the Company’s founder for five shares of Class A Stock, for an aggregate of 3,125,000 shares of Class A Stock.

On December 8, 2009, the Company and others, filed a lawsuit against the Objecting Party, Elbit Systems Holdings Ltd. ("Elbit") and others, in the Petah Tikva District Court of Israel (“Court”), for damages in the amount of NIS 37.7 million (USD $10 million) (the "Lawsuit"). The Lawsuit is based on the following factual background:

That following a period of extensive negotiations between inter alia, the Company and Elbit, a July 2008 Letter of Intent was signed, which contemplated inter alia, the Company’s purchase from Elbit of 31% of Kinetics, Ltd., i.e. 18,716 Ordinary Shares of Kinetics Ltd. (the "Kinetics Shares"), for a price of $26 million. Following said purchase, a merger between the Company and Kinetics was to be effectuated;

That the Company, as a blank check company and in order to fulfill its duty to obtain timely stockholders approval, was compelled to finalize a Business Combination by October 18, 2008;

That based on the Letter of Intent, and a belief at the time of Elbit's good faith, the Company continued negotiating a definitive agreement with all parties involved in the transaction;

That after lengthy negotiations, a definitive agreement was finalized and signed in early October 2008;

That Elbit's signature on the definitive agreement was allegedly withheld based on Elbit's claim that it had "just received" information about a new order that would raise the forecast of Kinetics' profits in 2009; and

That Elbeit’s remained a shareholder of Kinetics Shares after October 18, 2008.

The Lawsuit is in preliminary stages. The Lawsuit seeks reparation for damages caused to plaintiffs as a result of defendants' lack of good faith in negotiations, and requests that the Court hold that defendants materially breached the definitive agreement, that defendants are estopped from denying that the definitive agreement was finalized, and that defendants acted with fraud, and alternatively, with recklessness and without good faith (based inter alia, on representations made during negotiations). The Lawsuit also alleges that Elbit was unjustly enriched by its conduct, and that any enrichment as a result of Elbit's retention of the Kinetics Shares belongs to the Company.

On February 22, 2011, the defendants filed a Statement of Defense. Pursuant to Court suggestion, the parties have submitted their dispute to non-binding mediation, before Professor Nily Cohen. The mediation was unsuccessful. The lawsuit was referred back to court.

The Company continues to review new business opportunities for a potential business combination. The analysis of new business opportunities has and will be undertaken by or under the supervision of our officers and directors. We have unrestricted flexibility in seeking, analyzing and participating in potential business opportunities. In our efforts to analyze potential target companies or businesses, we will consider, among others, the following factors:

	(i)	Potential for growth, indicated by new technology, anticipated market expansion or new products;

	(ii)	Competitive position as compared to other firms of similar size and experience within the relevant industry segment as well as within the industry as a whole;

	(iii)	Strength and diversity of management, either in place or scheduled for recruitment;

	(iv)	Capital requirements and anticipated availability of required funds, to be provided by us or from operations, through the sale of additional securities, through joint ventures or similar arrangements or from other sources;

	(v)	The cost of participation by us as compared to the perceived tangible and intangible values;

	(vi)	The extent to which the business opportunities can be advanced;

	(vii)	The accessibility of required management expertise, personnel, raw materials, services, professional assistance and other required items; and

	(viii)	Other relevant factors that we identify.

In applying the foregoing criteria, no one of which will be controlling, management will attempt to analyze all factors and circumstances and make a determination based upon reasonable investigative measures and available data. Potentially available business opportunities may occur in many different industries, and at various stages of development, all of which will make the task of comparative investigation and analysis of such business opportunities extremely difficult and complex. Due to our limited capital we may not discover or adequately evaluate adverse facts about any opportunity evaluated or, ultimately, any transaction consummated.

Form of Acquisition

The manner in which we participate in an opportunity will depend upon the nature of the opportunity, our respective needs and desires and the promoters of the opportunity, and our relative negotiating strength and that of such promoters.

In the event the Company enters into a definitive agreement to acquire an operating company, the acquisition may not require stockholder approval, even if it constituted a change in control of the Company, provided the Company’s common stock is not then listed on a national exchange and the acquisition is structured so as not to require a stockholder vote under the Delaware code. Accordingly, stockholders may not be entitled to vote on any future acquisitions by the Company.

It is likely that we will participate in a business opportunity through the issuance of our common stock or other securities. Although the terms of any such transaction cannot be predicted, it should be noted that in certain circumstances the criteria for determining whether or not an acquisition is a so-called “tax free” reorganization under Section 368(a)(l) of the Internal Revenue Code of 1986, as amended (the “Code”), depends upon whether the owners of the acquired business own 80% or more of the voting stock of the surviving entity. If a transaction were structured to take advantage of these provisions rather than other “tax free” provisions provided under the Code, our then-existing stockholders would, in such circumstances retain 20% or less of the total issued and outstanding shares of the surviving entity. Under other circumstances, depending upon the relative negotiating strength of the parties, our then-existing stockholders may retain substantially less than 20% of the total issued and outstanding shares of the surviving entity. This will result in substantial additional dilution to the equity of our then-existing stockholders.

If we were to pursue a “tax-free” reorganization as described above, our then-existing stockholders would not have control of a majority of our voting shares following a reorganization transaction. As part of such a transaction, all or a majority of our directors may resign and new directors may be appointed without any vote by our stockholders.

In the case of an acquisition of stock or assets not involving a statutory merger or consolidation directly involving us, the transaction may be accomplished upon the sole determination of management without any vote or approval by our stockholders. In the case of a statutory merger or consolidation directly involving us, it will likely be necessary to call a stockholders’ meeting and obtain the approval of the holders of a majority of our outstanding shares. The necessity to obtain such stockholder approval may result in delay and additional expense in the consummation of any proposed transaction and will also give rise to certain appraisal rights to dissenting stockholders. Most likely, management will seek to structure any such transaction so that no stockholder approval is required.

It is anticipated that the investigation of specific business opportunities and the negotiation, drafting and execution of relevant agreements, disclosure documents and other instruments will require substantial management time and attention and substantial costs for third party professionals, accountants, attorneys and others. If a decision is made not to participate in a specific business opportunity, these costs theretofore incurred in the related investigation would not be recoverable. Furthermore, even if an agreement is reached for the participation in a specific business opportunity, the failure to consummate that transaction may result in our loss of the related costs incurred.

We presently have no employees apart from the officers named elsewhere herein. Our officers and directors are engaged in outside business activities and anticipate that they will devote very limited time to our business until a business opportunity has been identified. We expect no significant changes in the number of our employees other than such changes, if any, incident to a business combination.

Item 1A. Risk Factors

There are statements in this Annual Report that are not strictly historical in nature and are forward-looking statements. These statements may include, but are not limited to, statements about the timing of the commencement, enrollment, and completion of our clinical trials for our product candidates; the progress or success of our product development programs; the status of regulatory approvals for our product candidates; the timing of product launches; our ability to protect our intellectual property, if any and operate our business without infringing upon the intellectual property rights of others; and our estimates for future performance, anticipated operating losses, future revenues, capital requirements, and our needs for additional financing. In some cases, you can identify forward-looking statements by terms such as “anticipates,” “believes,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts,” “projects,” “should,” “will,” “would,” “goal,” or other variations of these terms (including their use in the negative) or by discussions of strategies, plans or intentions. These statements are only predictions based on current information and expectations and involve a number of risks and uncertainties. The underlying information and expectations are likely to change over time.

Factors that could cause actual results to differ materially from what is expressed or forecasted in our forward-looking statements include, but are not limited to, the following:

Risks Associated With Our Business

Our business is difficult to evaluate because we have no operating history.

As we have no operating history or revenue and only minimal assets following the liquidation of our Trust Account, there is a risk that we will be unable to continue as a going concern and consummate a business combination. We have had no recent operating history nor any revenues or earnings from operations since inception. Following the distribution of the Trust Account, we have had no significant assets or financial resources. We will, in all likelihood, sustain operating expenses without corresponding revenues, at least until the consummation of a business combination. We cannot assure you that we can identify a suitable business opportunity and consummate a business combination and, therefore, our net operating losses may increase significantly. The report of our independent registered public accountants on our financial statements includes an explanatory paragraph stating that our ability to continue as a going concern is dependent on the consummation of the business combination or raising substantial additional funds.

Our business will have no revenues unless and until we execute a business combination with an operating company or business at the earliest.

We are a development stage shell company and have had no revenues from operations. We may not realize any revenues unless and until we successfully execute a business combination with an operating company or business at the earliest.

There is competition for those private companies suitable for a business combination of the type contemplated by management.

We are in a highly competitive market for a small number of business opportunities which could reduce the likelihood of consummating a successful business combination. We are and will continue to be an insignificant participant in the business of seeking business combinations with small private and public entities. A large number of established and well-financed entities, including small public companies and venture capital firms, are active in mergers and acquisitions of companies that may be desirable target candidates for us. Nearly all these entities have significantly greater financial resources, technical expertise and managerial capabilities than we do; consequently, we will be at a competitive disadvantage in identifying possible business opportunities and successfully completing a business combination. These competitive factors may reduce the likelihood of our identifying and consummating a successful business combination.

There are relatively low barriers to becoming a blank check company or shell company, thereby increasing the competitive market for a small number of business opportunities.

There are relatively low barriers to becoming a blank check company or shell company. A newly incorporated company with a single stockholder and sole officer and director may become a blank check company or shell company by voluntarily subjecting itself to the SEC reporting requirements by filing and seeking effectiveness of a Form 10 with the SEC, thereby registering its common stock pursuant to Section 12(g) of the Exchange Act. Assuming no comments to the Form 10 have been received from the SEC, the registration statement is automatically deemed effective 60 days after filing the Form 10 with the SEC. The relative ease and low cost with which a company can become a blank check or shell company can increase the already highly competitive market for a limited number of private businesses that seek to consummate a business combination with a public company.

Because a majority of our management's prior business experience has been limited to segments of the technology industry, they may lack the necessary experience to consummate an acquisition with a business in other segments or an alternative industry.

A significant portion of our management’s prior business experience has been limited to certain segments of the technology industry, notably software, telecommunication, media services, IT services, Internet and consumer products. If we locate an attractive business combination unrelated to these segments of the technology industry, our management may not have the necessary experience to adequately assess the merits or risks of the industries or segments in which the business operates.

We have no existing agreement for a business combination or other transaction.

We have no arrangement, agreement or understanding with respect to engaging in a business combination with a private or public entity. No assurances can be given that we will successfully identify and evaluate suitable business opportunities or that we will conclude a business combination. Management has not identified any particular industry or specific business within an industry for evaluation. We cannot guarantee that we will be able to negotiate a business combination on favorable terms, and there is consequently a risk that funds allocated to the purchase of our shares will not be invested in a company with active business operations.

The time and cost of preparing the target to prepare financial statements necessary to consummate a business combination with us may preclude us from entering into a business combination with the most attractive target companies.

Target companies that fail to comply with SEC reporting requirements may delay or preclude a business combination. Sections 13 and 15(d) of the Exchange Act require reporting companies to provide certain information about significant acquisitions, including certified financial statements for the acquired company, covering one, two, or three years, depending on the relative size of the acquisition. The time and additional costs that may be incurred by some target entities to prepare such statements may significantly delay or essentially preclude consummation of a business combination. Otherwise suitable prospects that do not have or are unable to obtain the required audited statements may be inappropriate for a business combination so long as the reporting requirements of the Exchange Act are applicable.

Any potential business combination with a foreign company may subject us to additional risks.

If we enter into a business combination with a foreign concern, we will be subject to risks inherent in business operations outside of the United States. These risks include, for example, currency fluctuations, regulatory problems, punitive tariffs, unstable local tax policies, trade embargoes, risks related to shipment of raw materials and finished goods across national borders and cultural and language differences. Foreign economies may differ favorably or unfavorably from the United States economy in growth of gross national product, rate of inflation, market development, rate of savings, and capital investment, resource self-sufficiency and balance of payments positions, and in other respects.

Our stockholders may be held liable for claims by third parties against us to the extent of distributions received by them.

Under the Delaware General Corporation Law, stockholders may be held liable for claims by third parties against a corporation to the extent of distributions received by them in the distribution of the Trust Account. If the corporation complies with certain procedures set forth in Section 280 of the Delaware General Corporation Law intended to ensure that it makes reasonable provision for all claims against it, including a 60-day notice period during which any third-party claims can be brought against the corporation, a 90-day period during which the corporation may reject any claims brought, and an additional 150-day waiting period before any liquidating distributions are made to stockholders, any liability of stockholders with respect to a liquidating distribution is limited to the lesser of such stockholder’s pro rata share of the claim or the amount distributed to the stockholder, and any liability of the stockholder would be barred after the third anniversary of the dissolution. We did not comply with those procedures in the liquidation and distribution of the Trust Account. Because we did not comply with Section 280, we obtained stockholder approval to comply with Section 281(b) of the Delaware General Corporation Law, requiring us to adopt a plan of dissolution that will provide for our payment, based on facts known to us at such time, of (i) all existing claims, (ii) all pending claims and (iii) all claims that may be potentially brought against us within the subsequent 10 years. Because we are a blank check company, the claims that could be made against us are significantly limited and the likelihood that any claim that would result in any liability extending to the trust is minimal. However, because we did not comply with Section 280, our public stockholders could potentially be liable for any claims to the extent of distributions received by them in the Trust Account liquidation and any such liability of our stockholders will likely extend beyond the third anniversary of such dissolution. Accordingly, we cannot assure you that third parties will not seek to recover from our public stockholders amounts owed to them by us.

We may issue shares of our capital stock or debt securities to complete an acquisition, which would reduce the equity interest of our stockholders and likely cause a change in control of our ownership.

Our Second Amended and Restated Certificate of Incorporation authorizes the issuance of up to 15,000,000 shares of common stock, par value $.0001 per share, 5,000,000 shares of Class A Stock, par value $.0001 per share, and 1,000,000 shares of preferred stock, par value $.0001 per share. As of December 31, 2011, there were 14,640,598 authorized but unissued shares of our common stock available for issuance, 1,875,000 shares of Class A Stock and all of the 1,000,000 shares of preferred stock available for issuance. The issuance of additional shares of our common stock, Class A Stock or any number of shares of our preferred stock:

may significantly reduce the equity interest of our stockholders;

will likely cause a change in control if a substantial number of our shares of common stock are issued, which may affect, among other things, our ability to use our net operating loss carry forwards, if any, and most likely also result in the resignation or removal of our present officers and directors; and

may adversely affect prevailing market prices for our common stock.

Additionally, if we finance the purchase of assets or operations through the issuance of debt securities, it could result in:

default and foreclosure on our assets if our operating revenues after an acquisition were insufficient to pay our debt obligations;

acceleration of our obligations to repay the indebtedness even if we have made all principal and interest payments when due if the debt security contained covenants that required the maintenance of certain financial ratios or reserves and any such covenant were breached without a waiver or renegotiation of that covenant;

our immediate payment of all principal and accrued interest, if any, if the debt security was payable on demand; and

our inability to obtain additional financing, if necessary, if the debt security contained covenants restricting our ability to obtain additional financing while such security was outstanding.

We may have insufficient resources to cover our operating expenses and the expenses of consummating an acquisition.

Following the distribution of the Trust Account, we are in need of additional financing to fund our operating expenses. If we do not have sufficient funds available to fund our expenses, we may be forced to obtain additional financing, either from our management or the existing stockholders or from third parties. We may not be able to obtain additional financing and our existing stockholders and management are not obligated to provide any additional financing. If we do not have sufficient proceeds and cannot find additional financing, we may be forced to dissolve and liquidate prior to consummating a business combination.

We may be unable to obtain additional financing, if required, to complete a business combination or to fund the operations and growth of the target business, which could compel us to restructure the transaction or abandon a particular business combination.

To the extent that additional financing proves to be unavailable when and if needed to consummate a particular business combination, we would be compelled to restructure the transaction or abandon that particular business combination and seek an alternative target business candidate. In addition, if we consummate a business combination, we may require additional financing to fund the operations or growth of the target business. The failure to secure additional financing could have a material adverse effect on the continued development or growth of the target business. None of our officers, directors or stockholders is required to provide any financing to us prior to, in connection with or after a business combination.

Our ability to effect a business combination and to execute any potential business plan afterwards will be dependent upon the efforts of our key personnel, some of whom may join us following a business combination and whom we would have only a limited ability to evaluate.

Our ability to effect a business combination will be totally dependent upon the efforts of our key personnel. The future role of our key personnel following an acquisition, however, cannot presently be fully ascertained. Although we expect most of our management and other key personnel to remain associated with us following an acquisition, we may employ other personnel following the business combination. While we intend to closely scrutinize any additional individuals we engage after a business combination, we cannot assure you that our assessment of these individuals will prove to be correct. Moreover, our current management will only be able to remain with the combined company after the consummation of a business combination if they are able to negotiate terms with the combined company as part of any such combination. If we acquired a target business in an all-cash transaction, it would be more likely that current members of management would remain with us if they chose to do so. If a business combination were structured as a merger whereby the stockholders of the target company were to control the combined company following a business combination, it may be less likely that management would remain with the combined company unless it was negotiated as part of the transaction via the acquisition agreement, an employment or consulting agreement or other arrangement. The determination to remain as officers of the resulting business will be made prior to the completion of the transaction and will depend upon the appropriateness or necessity of current management to remain. In making the determination as to whether current management should remain with us following the business combination, management will analyze the experience and skill set of the target business’ management and negotiate as part of the business combination that certain members of current management remain if it is believed that it is in the best interests of the combined company post-business combination. If management negotiates to be retained post-business combination as a condition to any potential business combination, such negotiations may result in a conflict of interest.

An acquisition of an operating company may not require the approval of our stockholders, so you may not be entitled to vote on such a business combination.

In the event the Company enters into a definitive agreement to acquire an operating company, the acquisition may not require stockholder approval, even if it constitutes a change in control of the Company, provided the Company’s common stock is not then listed on a national exchange and the acquisition is structured so as not to require a stockholder vote under the Delaware code. Accordingly, stockholders may not be entitled to vote on any future acquisition by, or of, the Company.

Other than their relationship with us, none of our officers or directors has ever been associated with a blank check company which could adversely affect our ability to consummate a business combination.

Other than their relationship with us, none of our officers or directors has ever been associated with a blank check company. Accordingly, you may not have sufficient information with which to evaluate the ability of our management team to identify and complete a business combination. Our management’s limited experience in operating a blank check company could adversely affect our ability to consummate a business combination and force us to dissolve and liquidate.

Our officers and directors may allocate their time to other businesses thereby causing conflicts of interest in their determination as to how much time to devote to our affairs. This could have a negative impact on our ability to consummate a business combination.

Our officers and directors are not required to commit their full time to our affairs, which may result in a conflict of interest in allocating their time between our operations and other businesses. We do not intend to have any full time employees prior to the consummation of a business combination. Each of our officers are engaged in several other business endeavors and are not obligated to contribute any specific number of hours per week to our affairs. If our officers’ other business affairs require them to devote more substantial amounts of time to such affairs, it could limit their ability to devote time to our affairs and could have a negative impact on our ability to consummate a business combination. We cannot assure you that these conflicts will be resolved in our favor.

Because our common stock is considered a penny stock and is subject to the SEC’s penny stock rules broker-dealers may experience difficulty in completing customer transactions and trading activity in our securities may be adversely affected.

After the distribution of the Trust Account, our net tangible assets were less than $5,000,000 and our common stock has had a market price per share of less than $5.00, thus transactions in our common stock were and continue to be subject to the “penny stock” rules promulgated under the Securities Exchange Act of 1934, as amended. Under these rules, broker-dealers who recommend such securities to persons other than institutional accredited investors must:

make a special written suitability determination for the purchaser;

receive the purchaser’s written agreement to a transaction prior to sale;

provide the purchaser with risk disclosure documents which identify certain risks associated with investing in “penny stocks” and which describe the market for these “penny stocks” as well as a purchaser’s legal remedies; and

obtain a signed and dated acknowledgment from the purchaser demonstrating that the purchaser has actually received the required risk disclosure document before a transaction in a “penny stock” can be completed.

Broker-dealers in our common stock may find it difficult to effectuate customer transactions and trading activity in our securities may be adversely affected. As a result, the market price of our securities may be depressed, and you may find it more difficult to sell our securities.

Our officers and directors currently own shares of our Class A Stock and thus may influence certain actions requiring a stockholder vote.

Our officers and directors collectively hold approximately 80% of our voting power by virtue of their ownership of Class A Stock. This ownership interest, together with any other acquisitions of our shares of common stock (or warrants which are subsequently exercised), could allow our officers or directors to influence the outcome of matters requiring stockholder approval, including the election of directors and approval of significant corporate transactions after completion of our initial business combination. The interests of our officers or directors and your interests may not always align and taking actions which require approval of a majority of our stockholders, such as selling our company, may be more difficult to accomplish.

If our existing stockholders (including those officers and directors who have purchased warrants in the private placement) exercise their registration rights, it may have an adverse effect on the market price of our common stock and the existence of these rights may make it more difficult to effect a business combination.

Our existing stockholders, including our officers and directors who have purchased warrants in the private placement, are entitled to require us to register the resale of such warrants as well as their shares of common stock at any time after the date on which their shares are released from escrow. If such existing stockholders exercise their registration rights with respect to all of their shares of common stock (including those 1,500,000 shares of common stock issuable upon exercise of warrants included as part of the insider warrants), then there will be an additional 2,125,000 shares of common stock eligible for trading in the public market and we will bear the costs of registering such securities. The presence of this additional number of shares of common stock eligible for trading in the public market may have an adverse effect on the market price of our common stock. In addition, the existence of these rights may make it more difficult to effectuate a business combination or increase the cost of the target business, as the stockholders of the target business may be discouraged from entering into a business combination with us or will request a higher price for their securities as a result of these registration rights and the potential future effect their exercise may have on the trading market for our common stock.

There has been a very limited public trading market for our securities, and the market for our securities may continue to be limited and may be sporadic and highly volatile.

Prior to May 19, 2009, there was a limited public market for our common stock, which was quoted on the Over the Counter Bulletin Board (“OTCBB”). Following the liquidation of our Trust Account, there has not been any public trading in the common stock. We cannot assure you that an active market for our shares will be established or maintained in the future. If we are unable to establish a public market for our common stock, holders will have no or limited liquidity. Holders of our common stock may have to bear a complete loss of the value of their investment in us.

If we are able to establish a public market, the market price of our common stock may be volatile, which could cause the value of our common stock to decline. Securities markets experience significant price and volume fluctuations. This market volatility, as well as general economic conditions, could cause the market price of our common stock to fluctuate substantially. Many factors beyond our control may significantly affect the market price of our shares. These factors include:

price and volume fluctuations in the stock markets;

changes in our earnings or variations in operating results;

any shortfall in revenue or increase in losses from levels expected by securities analysts;

changes in regulatory policies or law;

operating performance of companies comparable to us; and

general economic trends and other external factors.

Even if an active market for our common stock is established, stockholders may have to sell their shares at prices substantially lower than the price they paid for the shares or might otherwise receive than if an active public market existed.

There is doubt about our ability to continue our activities as a going concern.

We are a development stage company with no operating history, and our business plan is to consummate a business combination. Our continuation as a going concern is dependent upon developing or acquiring profitable operations. Due to the uncertainty of our ability to meet our current operating expenses and the capital expenses noted herein, there is doubt about our ability to continue as a going concern. Our financial statements contain additional note disclosures describing the status of the company.

Item 1B. Unresolved Staff Comments.

Not applicable.

Item 2. Properties.

Until October 25, 2008, the 18 month anniversary of the completion of our IPO, we leased office space at which we maintain our executive offices at 4 Maskit Street, Herzeliya, Israel. The costs for this space was included in the $7,500 per-month fee New Pole Ltd., an affiliate of Ronen Zadok, our Chief Financial Officer, charged us for general and administrative services. After October 25, 2008 and until December 31, 2011, New Pole Ltd. continued to permit our use of such space, and to provide us with general and administrative services and permits our continued use of this space and provides general and administrative services free of charge. We consider our current office space adequate for our current operations.

Item 3. Legal Proceedings.

That following a period of extensive negotiations between inter alia, the Company and Elbit, a July 2008 Letter of Intent was signed, which contemplated inter alia, the Company purchase from Elbit of 31% of Kinetics, Ltd., i.e. 18,716 Ordinary Shares of Kinetics Ltd. (the "Kinetics Shares"), for a price of $26 million. Following said purchase, a merger between the Company and Kinetics was to be effectuated;

That the Company, as a blank check company and in order to fulfill its duty to obtain timely stockholders' approval, was compelled to finalize a Business Combination by October 18, 2008;

That based on the Letter of Intent, and a belief at the time of Elbit's good faith, the Company continued negotiating a definitive agreement with all parties involved in the transaction;

That after lengthy negotiations, a definitive agreement was finalized and signed in early October 2008;

That Elbit's signature on the definitive agreement was withheld based on Elbit's claim that it had "just received" information about a new order that would raise the forecast of Kinetics' profits in 2009; and

That Elbeit’s remained a shareholder of Kinetics Shares after October 18, 2008.

Item 4. Mine Safety Disclosures

Not applicable.

PART II

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

Market Information

On May 19, 2009, all Units were split into their respective warrant and common stock components. On May 19, 2009, holders of the Company’s common stock had their stock exchanged eight for one for shares of New Common Stock. On May 19, 2009, holders of our founder stock were issued Class A Stock in exchange for such founder stock. As of March 13, 2012, there was no public market for our New Common Stock and Class A Stock. Our warrants commenced public trading on June 1, 2007. Following the distribution of the Trust Account on May 19, 2009, there was no market for our warrants due to the sporadic and limited trading in such warrants. The warrants expired on April 19, 2011.

Holders

On March 21, 2012, there were six holders of record of our common stock, including the Class A Stock.

Dividends

We have not paid any dividends on our common stock to date and do not intend to pay dividends prior to the completion of a business combination. The payment of dividends in the future will be contingent upon our revenues and earnings, if any, capital requirements and general financial condition subsequent to completion of a business combination. The payment of any dividends subsequent to a business combination will be within the discretion of the board of directors. It is the present intention of our board of directors to retain all earnings, if any, for use in our business operations and, accordingly, our board does not anticipate declaring any dividends in the foreseeable future.

Recent Sales of Unregistered Equity Securities

None.

Securities Authorized for Issuance Under Equity Compensation Plans

None.

Repurchases of Equity Securities

None.

Item 6. Selected Financial Data

Not applicable.

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Caution Regarding Forward-Looking Information

Certain statements contained in this annual filing, including, without limitation, statements containing the words "believes", "anticipates", "expects" and words of similar import, constitute forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

Such factors include, among others, the following: international, national and local general economic and market conditions: our ability to successfully make and integrate acquisitions; existing government regulations and changes in, or the failure to comply with, government regulations; adverse publicity; competition; fluctuations and difficulty in forecasting operating results; changes in business strategy or development plans; business disruptions; the ability to attract and retain qualified personnel; and other factors referenced in this and previous filings.

Given these uncertainties, readers of this Form 10-K and investors are cautioned not to place undue reliance on such forward-looking statements. The Company disclaims any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements contained herein to reflect future events or developments.

The following discussion should be read in conjunction with the Company’s Financial Statements and footnotes thereto contained in this report.

Overview

We were formed as a blank check company on September 6, 2006 for the purpose of acquiring, merging with, engaging in a capital stock exchange with, purchasing all or substantially all of the assets of, or engaging in any other similar business combination with a business that has operations or facilities located in Israel or which is a company operating outside of Israel, which management believes would benefit from establishing operations or facilities in Israel, preferably in the technology sector. From inception to October 2008, our principal business activities related to our formation, capital raising and seeking a Business Combination target.

The Company’s principal activities from inception through May 19, 2009 were related to the Company’s formation, capital raising activities and the Business Combination.

In the IPO, the Company sold to the public 2,875,000 Units at a price of $10.00 per Unit. Each Unit consisted of one share and one warrant. Each warrant entitled the holder to purchase one share of the Company's common stock at a price of $7.50. Proceeds from the IPO and the Private Placement totaled approximately $28.5 million, which was net of approximately $1.6 million in underwriting fees and other expenses paid at closing. The Company also sold to the underwriters for $100 an option to purchase up to 125,000 Units.

The Company had agreed that $28.37 million or $9.91 per Unit sold in the IPO was to be held in the Trust Account, of which $0.30 per Unit of the compensation to underwriters was deferred until consummation of the Business Combination. The deferred compensation to underwriters was forfeited due to the Company’s inability to consummate a Business Combination within the time allotted in its Amended and Restated Certificate of Incorporation.

On October 27, 2008, the Company announced it had executed an LOI to effectuate a Business Combination with Elbit. All parties to the LOI negotiated the terms of a definitive agreement and in fact, a definitive agreement was executed by all parties to the LOI. However, Elbit claimed it never released its signature thereto and indicated it no longer wished to pursue the proposed Business Combination.

The Company believes a binding, definitive agreement was executed by all parties. However, Elbit indicated its position that no binding agreement existed and that it did not wish to continue with negotiations, and therefore, the Company was unable to consummate the Business Combination.

On December 8, 2009, the Company and others, filed the Lawsuit in the Petah Tikva District Court of Israel, for damages in the amount of NIS 37.7 million (USD $10 million).

On February 22, 2011 the defendants filed a Statement of Defense. Pursuant to Court suggestion, the parties have submitted their dispute to non-binding mediation, before Professor Nily Cohen. The mediation was unsuccessful. The lawsuit was referred back to court.

On May 19, 2009 the Company effectuated the redemption of the shares of common stock issued in the IPO in the amount of $9.91 per share from the Trust Account and distributed one share of New Common Stock for every eight common shares then held for an aggregate of 359,402 shares of New Common Stock. The stockholders also approved the creation of a new class of common stock called Class A Stock. The founders of the Company exchanged each share of common stock held by them for five shares of Class A Stock, for an aggregate of 3,125,000 shares of Class A Stock.

Results of Operations

Net loss of $(81,743) and $(72,323) reported for the years ended December 31, 2011 and 2010 respectively, consists for each year primarily of $75,272 and $67,264 of expenses for administrative services; $492 and $393 for franchise taxes; and $0 and $0 for federal income taxes, respectively.

Gross proceeds from the IPO were $30,250,000 (including the over-allotment option and warrants sold privately). We paid a total of $1,349,900 in underwriting discounts and commissions, and approximately $449,000 was paid for costs and expenses related to the IPO. After deducting the underwriting discounts and commissions and the offering expenses, the total net proceeds to us from the IPO were approximately $28,451,000, of which $28,366,000 was deposited into the Trust Account. The remaining proceeds were used for business, legal and accounting due diligence on prospective acquisitions and general and administrative expenses prior to the redemption of the common stock.

Commencing on April 19, 2007 and terminating at the eighteen month anniversary of our IPO in October 2008, we began incurring a fee from New Pole Ltd., an affiliate of Ronen Zadok, our chief financial officer, of $7,500 per month for providing us with office space and certain general and administrative services. Currently, New Pole Ltd. permits our continued use of the office space free of charge. In addition, Mr. Zadok advanced $151,210 to us for payment on our behalf of IPO expenses. This amount was repaid following the IPO from the net proceeds of the IPO.

On May 19, 2009, the Company effectuated the redemption of the shares of common stock issued in the IPO in the amount of $9.91 per share from the Trust Account. The Company’s warrants expired on April 19, 2011.

Liquidity and Capital Resources

At December 31, 2011, the Company had $849 in cash, current liabilities of $222,706 and a working capital deficit of $218,248. Further, the Company has incurred, and expects to continue to incur, costs. The Company did not hold any cash equivalents as of December 31, 2011. These factors, among others, indicate that the Company may be unable to continue operations as a going concern unless the Company is able to obtain further financing. The directors of the Company have in the past loaned money to the Company to finance its operations. They may but are not obligated to provide additional funds to the company. As of the date of this Report, there were no commitments from any of the directors to provide such funds. If the Company is unable to obtain financing on favorable terms, or at all, it will not be able to continue operating with its current resources. Management has no current plans to raise additional capital.

The Company's restricted cash and cash equivalents were held in the Trust Account until May 19, 2009 and were invested in a money market fund. The Company recognized interest income of $1,359,678 from inception (September 6, 2006) to May 19, 2009. The Company distributed all cash from its Trust Account as part of the Redemption.

The cash and cash equivalent held in the Trust Account prior to May 19, 2009 was generated by the proceeds from the IPO of approximately $28,750,000, the proceeds of the sale of founder securities of $1,500,000, and $1,365,361 of interest earned on such funds.

The warrants issued in the IPO expired on April 19, 2011.

In connection with the IPO, our underwriter agreed to defer payment of the remaining three percent (3%) of the gross proceeds ($862,500) until completion of a Business Combination. Due to the inability of the Company to consummate a Business Combination within the allotted time, the 3% deferred fee was forfeited by the underwriter and was returned to our public stockholders from the Trust Account upon the distribution of the Trust Account.

Following the distribution of the Trust Account, we are in need of additional financing to fund our operating expenses. If we do not have sufficient funds available to fund our expenses, we may be forced to obtain additional financing, either from our management or from third parties. We may not be able to obtain additional financing and our existing stockholders and management are not obligated to provide any additional financing. If we do not have sufficient proceeds and cannot find additional financing, we may be forced to dissolve and liquidate prior to consummating a business combination.

We may need additional financing to complete a business combination. We cannot assure you that such financing would be available on acceptable terms, if at all. To the extent additional financing proves to be unavailable when needed to consummate a particular business combination, we would be compelled to restructure the transaction or abandon that particular business combination and seek an alternative target business candidate. In addition, if we consummate a business combination, we may require additional financing to fund the operations or growth of the target business.

Other than contractual obligations incurred in the ordinary course of business, we do not have any other long-term contractual obligations.

Critical Accounting Policies

Our financial statements have been prepared in accordance with accounting principles generally accepted in the United States. These generally accepted accounting principles require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Our significant accounting policies are described in the notes to the consolidated financial statements included in this report. Judgments and estimates of uncertainties are required in applying our accounting policies in many areas. Management has discussed the development and selection of these policies with the Company’s Board of Directors and the Board of Directors has reviewed the Company’s disclosures of these policies. There have been no material changes to the critical accounting policies or estimates reported in the Management’s Discussion and Analysis section of the audited financial statements for the year ended December 31, 2008 as filed with the Securities and Exchange Commission.

Recent Accounting Pronouncements

The Company does not believe any recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying financial statements.

Off-Balance Sheet Arrangements

None.

Contractual Obligations

We do not have any long term debt, capital lease obligations, operating lease obligations, purchase obligations or other long term liabilities. We entered into a Service Agreement with New Pole Ltd., requiring us to pay $7,500 per month. The agreement terminated on the eighteen month anniversary of our IPO in October 2008. However, New Pole Ltd. continued to permit our use of our office space and provided general and administrative services upon the same terms and conditions until December 2008. Currently, New Pole Ltd. permits our continued use of this space free of charge.

Other than contractual obligations incurred in the ordinary course of business, we do not have any other long-term contractual obligations.

Item 7A. Quantitative and Qualitative Disclosure about Market Risk

Not applicable.

Item 8. Financial Statements and Supplementary Data

Reference is made to our financial statements beginning on page F-1 of this report.

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.

None.

Item 9A. Controls and Procedures

Disclosure Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of our management, including our Chief Executive Officer and our Chief Financial Officer, (together, the “Certifying Officers”), we carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Based on the foregoing, our Certifying Officers concluded that our disclosure controls and procedures were effective as of the end of the period covered by this Annual Report.

Disclosure controls and procedures are controls and other procedures designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is accumulated and communicated to management, including our Certifying Officers, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure.

Management’s Report on Internal Controls Over Financial Reporting

Our Certifying Officers are responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rule 13a-15(f) of the Exchange Act.

Internal control over financial reporting is promulgated under the Exchange Act as a process designed by, or under the supervision of, our Certifying Officers and effected by our board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles and includes those policies and procedures that:

Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of our assets;

Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and

Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition or disposition of our assets that could have a material effect on the financial statements.

Readers are cautioned that internal control over financial reporting, no matter how well designed, has inherent limitations and may not prevent or detect misstatements. Therefore, even effective internal control over financial reporting can only provide reasonable assurance with respect to the financial statement preparation and presentation.

Our management, under the supervision and with the participation of our Certifying Officers, has evaluated the effectiveness of our internal controls over financial reporting as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) as of the end of the period covered by this Annual Report based upon the framework in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on such evaluation, our management has made an assessment that our internal control over financial reporting is not effective as of December 31, 2011.

There is a lack of segregation of duties at the Company due to the small number of employees dealing with general administrative and financial matters and general controls over information technology security and user access. This constitutes a material weakness in internal controls over financial reporting. Furthermore, the Company’s Chief Financial Officer is the only person with an appropriate level of accounting knowledge, experience and training in the selection, application and implementation of generally accepted accounting principles as it relates to complex transactions and financial reporting requirements. Management will continue to evaluate the segregation of duties issues considering the cost involved to remediate them.

This Annual Report does not include an attestation report of the Company’s registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Company’s registered public accounting firm, pursuant to the SEC’s rules for smaller reporting companies.

Changes in Internal Controls

During the quarter ended December 31, 2011, there have been no changes in our internal control over financial reporting (as defined in Rule 13-15(f) of the Securities Exchange Act) that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Item 9B. Other Information.

None.

PART III

Item 10. Directors, Executive Officers and Corporate Governance.

Directors and Executive Officers

Our current directors and executive officers are listed below. None of such persons are, or have been, involved with any other blank check companies.

Name	Age	Position
Adiv Baruch	50	President, Chief Executive Officer and Director
Ronen Zadok	52	Chief Financial Officer, Secretary and Director
Yoav Schwalb	52	Director
Yaron Schwalb	48	Chief Technology Officer and Director

Mr. Adiv Baruch has been our President, Chief Executive Officer and a Director since inception. Since February 2004, he has been a director, and from January 1, 2004 until November 2006, he served as the President and CEO, of B.O.S., a company publicly traded on both NASDAQ and the Tel Aviv Stock Exchange (BOSC). Through its wholly owned subsidiaries, B.O.S. delivers connectivity from IBM iSeries computers to personal computers and mobile devices and provides solutions in RFID, semiconductors, electronic components, CCD, imaging, networking, telecom and automation. From 1999 to 2003, he served as Executive Vice President, Business Development of Ness Technologies (NASDAQ: NSTC), an international provider of comprehensive end-to-end IT services and solutions. Ness offers a unique global delivery model of innovative, high-quality, value-added services that enable organizations to attain sustainable competitive advantage. He has served as founder and an executive or director for several information technology companies and Internet start-ups. Mr. Baruch is actively involved as the chairman of The Israel Export and International Cooperation Institute, Hi-Tech and Telecom Division, and acted as board member of the IEIC. Currently Mr Baruch is a member of the IEIC audit committee. Mr. Baruch serves as a director in several public and private companies, including Tapuz, the Israeli community and mobile portal, all of which are public traded companies listed on the Tel Aviv Stock Exchange. He is also acting as the Chairman of Pilat Group ltd (Pilat:TASE), a leading HR software solutions company providing evaluation and screening services, recruiting and assignment services, and consulting to an organization’s human resources department in areas such as performance, ability, placement and compensation. He is also a director of Win Global Markets, Inc., which is quoted on the OTC Bulletin Board under the symbol WGMI. Win Global Markets Inc. owns proprietary software which enables online trading of binary options. Investors can trade on an array of financial assets, such as Stocks, Indices, Futures, Commodities and Foreign Currencies quoted on leading financial exchanges around the world. He is also a board member of Mango Dsp. Since 2004 he has been a partner in Signum Ltd. Mr. Baruch has a B.Sc. in Information Systems and Industrial Engineering from the Technion - Israel Institute of Technology.

Mr. Ronen Zadok has been our Chief Financial Officer, Secretary and Director since inception. From October 1999 to 2005, he was a managing partner in Signum Ltd., a privately held company focusing on turnaround management services for corporations. Currently, he is a Director in Applisonix, a listed company on the Tel Aviv Stock Exchange (TASE: APLS) and Meteor Agriculture Nets. Since 2005, he has been a managing partner of New Pole Ltd., a privately held investment company. From October 2002 to May 2004, he was a director of Ness Technologies (NASDAQ: NSTC). From 1995 to October 1999, Mr. Zadok was CEO and a Director of Clal-Ipex, a joint venture company with Clal (Israel's largest conglomerate at that time), specializing in IT professional and outsourcing services. From July 1992 to 1995, Mr. Zadok was the CFO and Co-Founder of Ipex Israel Ltd., a software and IT services company which was acquired by Ness Technologies. From 1990 to 1992, Mr. Zadok was Director of Marketing - financial services for Ipex ITG Australia, an IT products, services and outsourcing company. Mr. Zadok holds a B.A. in Economics and Business Administration, a B.A. in accounting and an MBA in finance and accounting, all from Tel Aviv University.

Mr. Yoav Schwalb has been a Director of our company since inception. From February 2004 to February 2005, he served as a director of Volante (recently acquired by Commander Communications) (ASX: CDR), one of Australia's largest information technology providers. Mr. Schwalb has been a director of SiMetra Farm Ltd., an Israeli biotech company, since 2006. Since 2005, he has been a managing partner of New Pole Ltd., a privately held investment company. From October 2002 through February 2004, Mr. Schwalb was an Executive Vice President of Ipex ITG Australia, leading the business development unit. In such capacity, Mr. Schwalb was charged with overall control of sales and marketing as well as the development and initiation of new business areas. From October 1999 to February 2002, he served as a Director of Ness Technologies (NASDAQ: NSTC). From October 1993 to October 1999, Mr. Schwalb served as the CEO and Director of Ipex Israel Ltd., an Israeli high-tech company (which later merged with Ness Technologies). Yoav Schwalb is the brother of Yaron Schwalb, our Chief Technology Officer and a director.

Mr. Yaron Schwalb has been our Chief Technology Officer and a Director since inception. Mr. Schwalb has been a director of SiMetra Farm Ltd., an Israeli biotech company, since 2006. Since 2005, he has been a managing partner of New Pole Ltd., a privately held investment company. From February 2004 to September 2005, Mr. Schwalb was CTO and Technical Director of the Ipex division of Volante (AMEX: VGL), one of Australia's largest information technology providers. From 2006, he has served as a partner of New Pole Ltd., a newly formed, privately held investment company. From 1985 to 2004, he was co-founder and CTO of Ipex ITG Australia. Mr. Schwalb received his B.Com from Melbourne University (Australia). Yaron Schwalb is the brother of Yoav Schwalb, a director of our company.

Number and Terms of Office of Directors.

Our board of directors consists of four members: Messrs. Yaron Schwalb, Yoav Schwalb, Adiv Baruch and Ronen Zadok. Member of our board of directors will serve for a term of one year or until the next annual meeting of our stockholders at which their successors will be duly elected and qualified.

None of these individuals has been a principal of or affiliated with a public company or blank check company that executed a business plan similar to our business plan and none of these individuals is currently affiliated with such an entity.

Section 16(a) Beneficial Ownership Reporting Compliance.

Section 16(a) of the Securities Exchange Act of 1934, as amended, requires our officers, directors and persons who beneficially own more than ten percent of our common stock to file reports of ownership and changes in ownership with the SEC. These reporting persons are also required to furnish us with copies of all Section 16(a) forms they file.

To our knowledge, based solely upon our review of the copies of such reports furnished to us, we believe that all of our officers, directors and greater than ten percent stockholders have complied with the applicable Section 16(a) reporting requirements in a timely manner.

Board Committees

Our board of directors in its entirety will act as the audit committee and compensation committee. We may establish an audit committee and a compensation committee upon consummation of a business combination. At that time our board of directors intends to adopt charters for these committees. Prior to such time we do not intend to establish either one. Accordingly, there will not be a separate committee comprised of some members of our board of directors with specialized accounting and financial expertise to meet, analyze and discuss solely financial matters concerning potential target businesses. We do not feel a compensation committee is necessary prior to a business combination as there is no salary, fees or other compensation being paid to our officers or directors prior to a business combination.

The Company has not implemented any changes to the procedures by which stockholders may recommend nominees for the Company’s board of directors.

Audit Committee and Audit Committee Financial Expert

The Board of Directors, which is performing the equivalent functions of an audit committee, has pre-approved all audit services provided by the independent auditors, and the compensation, fees and terms for such services. No permitted non-audit services were provided or approved by the Board of Directors. We do not have a Audit Committee Financial Expert at this time and will not have one until we consummate a business combination.

Code of Conduct.

We have adopted a code of conduct and ethics applicable to our directors, officers and employees in accordance with applicable federal securities laws. We have filed copies of our code of ethics and committee charters as an exhibit to our registration statement on Form S-1, which we filed with the Securities and Exchange Commission on October 20, 2006. This document may be reviewed by accessing such filing at the SEC Web site at www.sec.gov. In addition, a copy of the code of ethics shall be provided without charge upon request to us.

Item 11. Executive Compensation.

Compensation Discussion and Analysis

The Company’s officers and directors do not currently and have not in the last completed fiscal year received any compensation for services rendered to the Company. In future periods, subsequent to the consummation of a business combination, the Company anticipates that it will pay compensation to its officers and directors.

Compensation Committee Interlocks and Insider Participation and Compensation Committee Report

We do not feel a compensation committee is necessary prior to a business combination as there is no salary, fees or other compensation currently being paid to our officers or directors other than as disclosed in this Annual Report. The entire board has reviewed and discussed the Compensation Discussion and Analysis with management and based on the review and discussions of this item, the board of directors believes the Compensation Discussion and Analysis should be included in this Annual Report.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

The following table sets forth information regarding the beneficial ownership of the New Common Stock and Class A Stock as of March 22, 2012, based on information contained in filings pursuant to Section 13(d) and 13(g) of the Exchange Act, with respect to the beneficial ownership of shares of such securities by:

•

each person known by us to be the beneficial owner of more than 5% of our outstanding shares

of common stock;

•

each of our officers and directors; and

•

all our officers and directors as a group.

Unless otherwise indicated, we believe that all persons named in the table have sole voting and investment power with respect to all shares of common stock beneficially owned by them.

Beneficial Ownership of Securities

Name and Address of Beneficial Owner (1)	No. of Shares (2)	Percentage of Common Stock (3)

Ronen Zadok	703,125	20.18%

Adiv Baruch	703,125	20.18%

Yaron Schwalb	703,125	20.18%

Yoav Schwalb	703,125	20.18%

All directors and executive officers as a group (4 individuals)	2,812,500	80.72%

(1)

Unless otherwise indicated, the business address of each of the individuals is 4 Maskit Street, Herzeliya, Israel 46700.

(2)

Unless otherwise indicated, all ownership is direct beneficial ownership of Class A Stock.

(3)

The percentage ownership is calculated based on 3,484,402 shares of New Common Stock and Class A Stock that have voting rights and; does not include the shares of common stock underlying the insider warrants sold in the private placement.

There are no securities authorized for issuance under equity compensation plans.

Changes in Control

None.

Item 13. Certain Relationships and Related Transactions, and Director Independence.

Certain Relationships and Related Transactions

Immediately after our IPO, our existing stockholders, which include all of our officers and directors, collectively, beneficially owned 20.0% of the then issued and outstanding shares of our common stock. On May 19, 2009, our executive officers and directors and their affiliates who purchased or received shares of our common stock prior to our IPO, increased their beneficial ownership from 20% to approximately 90% and the aggregate percentage of the Company’s outstanding voting securities and the ownership of all other stockholders decreased from 80% to approximately 10%. Because of this ownership change, holders of Class A Stock will be able to effectively influence the outcome of all matters requiring approval by our stockholders, including the election of directors and approval of significant corporate transactions other than approval of a business combination. The Company’s warrants expired on April 19, 2011.

Messrs. Baruch, Zadok, Yoav Schwalb, Yaron Schwalb and Perry are deemed our “parents” and “promoters” as these terms are defined under the federal securities laws.

Director Independence.

Although the Company’s securities are listed on the Over-the-Counter Bulletin Board and we are therefore not required to have a majority of independent directors, we apply the NYSE AMEX standard for independent directors to determine which, if any, of our directors are independent pursuant to such definition. The NYSE AMEX defines an independent director generally as a person other than an officer or employee of the company or its subsidiaries or any other individual having a relationship, which, in the opinion of the company’s board of directors would interfere with the director’s exercise of independent judgment in carrying out the responsibilities of a director.

The Company has determined that all of our directors are not independent directors as defined under the NYSE AMEX Rule 803.

Any affiliated transactions will be on terms no less favorable to us than could be obtained from independent parties. Any affiliated transactions must be approved by a majority of our independent and disinterested directors.

Item 14. Principal Accounting Fees and Services.

During the fiscal year ended December 31, 2011, the firm of BDO Seidman LLP which we refer to as BDO, was our principal accountant. BDO manages and supervises the audit and audit staff, and is exclusively responsible for the opinion rendered in connection with its examination. The following is a summary of fees paid or to be paid to BDO for services rendered.

Audit Fees. Audit fees consist of fees billed for professional services rendered for the audit of our year-end financial statements and services that are normally provided by Ziv Haft a BDO member firm in connection with statutory and regulatory filings. We have been billed approximately $11,000 in connection with our December 31, 2011 year end audit and we were billed approximately $11,000 in connection with our December 31, 2010 year end audit.

Audit-Related Fees. Audit-related services consist of fees billed for assurance and related services that are reasonably related to performance of the audit or review of our financial statements and are not reported under “Audit Fees.” These services include attest services that are not required by statute or regulation and consultations concerning financial accounting and reporting standards. There were no aggregate fees billed for audit-related services rendered by BDO in the fiscal year ended December 31, 2011 or December 31, 2010.

Tax Fees. Fees for professional services rendered by BDO for tax compliance, tax planning and tax advice for the fiscal year ended December 31, 2011 were approximately $2,000. Such fees for the fiscal year ended December 31, 2010 were $3,000.

All Other Fees. There were no fees billed by BDO for any other professional services rendered from the date of our inception through December 31, 2011.

PART IV

Item 15. Exhibits, Financial Statement Schedules.

(a) The following documents are filed as part of this report:

(1) Financial Statements.

The following financial statements of the Company are referenced in Item 8 and begin on page F-1 of this report:

		Page

Report of Independent Registered Public Accounting Firm		F-1

Balance Sheets		F-2

Statements of Operations		F-3

Statements of Stockholders’ Equity		F-4

Statements of Cash Flows		F-5

Notes to Financial Statements		F-6

(2) Financial Statement Schedules.

All schedules are omitted for the reason that the information is included in the financial statements or the notes thereto or that they are not required or are not applicable.

(3) Exhibits.

Exhibit No.	Description

1.1	Underwriting Agreement. (1)
3.1	Second Amended and Restated Certificate of Incorporation. (2)
3.2	Bylaws. (2)
4.1	Specimen Unit Certificate. (2)
4.2	Specimen Common Stock Certificate. (2)
4.3	Specimen Warrant Certificate. (2)
4.4	Warrant Agreement between American Stock Transfer & Trust Company and the Registrant. (1)
4.5	Unit Option Purchase Agreement between the Registrant and Maxim Group LLC. (1)
10.1.1	Letter Agreement among the Registrant, Maxim Group LLC and Adiv Baruch. (2)

10.1.2	Letter Agreement among the Registrant, Maxim Group LLC and Yoav Schwalb. (2)
10.1.3	Letter Agreement among the Registrant, Maxim Group LLC and Ronen Zadok. (2)
10.1.4	Letter Agreement among the Registrant, Maxim Group LLC and Yaron Schwalb. (2)
10.1.5	Letter Agreement among the Registrant, Maxim Group LLC and Jacob Perry. (2)
10.2	Investment Management Trust Agreement between American Stock & Trust Company and the Registrant. (1)
10.3	Stock Escrow Agreement between the Registrant, American Stock Transfer & Trust Company and the founding stockholders. (1)
10.4	Registration Rights Agreement among the Registrant and the founding stockholders. (1)
10.5	Lease/Office Services Agreement dated October 18, 2006 by and among the Registrant and New Pole Ltd. (4)
10.6	Amended and Restated Subscription Agreement between the Registrant and certain officers and directors of the Registrant. (2)
14	Code of Ethics (3)
23.1	Consent of Ziv Haft, a BDO member firm.*
31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*
31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted to Section 906 of the Sarbanes-Oxley Act of 2002*
32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted to Section 906 of the Sarbanes-Oxley Act of 2002*

*	Filed herewith.
(1)	Incorporated by reference to the Registrant’s Current Report on Form 8-K filed on April 27, 2007.
(2)	Incorporated by reference to the Registrant’s Registration Statement of Form S-1 filed on February 21, 2007.
(3)	Incorporated by reference to the Registrant’s Registration Statement on Form S-1 filed on November 30, 2006.
(4)	Incorporated by reference to the Registrant’s Registration Statement on Form S-1 filed on October 20, 2006.
(5)	Incorporated by reference to the Registrant’s Proxy Statement on Form 14A filed on April 8, 2009.

PINPOINT ADVANCE CORP.

(A development stage corporation)

FINANCIAL STATEMENTS
as of December 31, 2011

In U.S. Dollars

INDEX

		Page

Report of Independent Registered Public Accounting Firm		F-2

Balance Sheets		F-3

Statements of Operations		F-4

Statements of Changes in Stockholders’ Equity		F-5

Statements of Cash Flows		F-6

Notes to Financial Statements		F-7

F-1

Report of independent Registered Public Accounting Firm

Board of Directors and Stockholders
PINPOINT ADVANCE CORP.

We have audited the accompanying balance sheets of PINPOINT ADVANCE CORP. a corporation in the development stage (The “Company”) as of December 31, 2011 and 2010 and the related statements of operations, stockholders’ equity, and cash flows for the each of the two years in the period ended December 31, 2011 and for the period from inception (September 6, 2006) to December 31, 2011. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2011 and 2010 and the results of its operations and its cash flows for the each of the two years in the period and for the period from inception (September 6, 2006) to December 31, 2011, 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. The Company has a remaining cash balance of $849, current liabilities of $222,706, accumulated deficit of $218,598. The possibility that such further financing and acquisitions will not be consummated raises substantial doubt as to its ability to continue as a going concern. Management’s plans regarding those matters are also described in Note 1.

Tel-Aviv, Israel

March 27, 2012

Ziv Haft

Certified Public Accountants (Isr.)

BDO Member Firm

F-2

PINPOINT ADVANCE CORP.

(A development stage corporation)

BALANCE SHEETS

	December 31, 2011			December 31, 2010

ASSETS

Current assets
Cash	$	849		$	15,636
Deposit		317			317
Prepaid expense and other accounts receivable		3,292			3,958
Total Assets	$	4,458		$	19,911

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accrued expenses and other accounts payable		20,467			19,980

Related party		202,239			136,436

Total current liabilities		222,706			156,416

Commitments and Contingencies (Note 3)

Stockholders’ Deficiency (Note 4)

Preferred stock – $.0001 par value; 1,000,000 authorized; none issued or outstanding

Common stock $.0001 par value; 15,000,000

Authorized, 359,402 issued and outstanding;		37			37

Common stock, Class A, $0.0001 par value, 5,000,000 Authorized, 3,125,000 issued and outstanding;		313			313

Deficit accumulated during the development stage		(218,598	)		(136,855	)

Total stockholders’ deficit		(218,248	)		(136,505	)

Total liabilities and stockholders' deficiency	$	4,458		$	19,911

The accompanying notes should be read in conjunction with the financial statements

F-3

PINPOINT ADVANCE CORP.

(A development stage corporation)

STATEMENTS OF OPERATIONS

		For the year ended December 31, 2011			For the year ended December 31, 2010			For the period from September 6, 2006 (inception) to December 31, 2011

State franchise tax	$	492		$	393		$	110,725
Formation and operating costs		-			-			1,000
Other general and administrative expenses		75,272			67,264			1,427,675
Bank charges and interest expense		5,979			4,666			13,546
Loss from operation		(81,743	)		(72,323	)		(1,552,946	)
Interest income		-			-			1,359,678
Loss before provision for income tax		(81,743	)		(72,323	)		(193,268	)

Provision for income tax		-			-			4,444

Net loss for the period	$	(81,743	)	$	(72,323	)		$((197,712)
Accretion of trust fund relating to common stock subject to possible redemption					-			(3,042	)
Net loss attributable to other common stockholders	$	(81,743	)	$	(72,323	)		$((200,754)

Net loss per share -
Basic and diluted	$	(0.02	)	$	(0.02	)

Weighted average shares outstanding
Basic and diluted		3,484,402			3,484,402

The accompanying notes should be read in conjunction with the financial statements

F-4

(A development stage corporation)

STATEMENTS OF CHANGES IN STOCKHOLDERS’ (DEFICIT) EQUITY

For the period from September 6, 2006 (inception) to December 31, 2011

	Common stock						Common stock, Class A				Additional Paid-in capital			Deficit accumulated during the development stage			Total Stockholders’ equity
	Shares			Amount			Shares		Amount

Balance September 6, 2006 (inception)		---		$	---						$	---		$	---		$	---

Common stock issued September 6, 2006 at $.0001 per share		828,125			83			---		---		24,917						25,000

Net loss for the period															(8,140	)		(8,140	)

Balances at December 31, 2006		828,125			83			---		---		24,917			(8,140	)		16,860

Shares decreased as a result of a reverse split		(203,125	)		(20	)		---		---		20			---			---

Proceeds from sale of underwriter’s purchase option		---			---			---		---		100			---			100

Proceeds from issuance of warrants		---			---			---		---		1,500,000			---			1,500,000

Sale of 2,875,000 units through public offering net of underwriter’s discount and offering expenses and net of $8,506,963 of proceeds allocable to 862,212 shares of common stock subject to possible conversion		2,012,788			201			---		---		17,475,949			---			17,476,150

Net income for the period (audited)		---			---			---		---		---			397,249			397,249

Accretion of trust fund relating to common stock subject to possible conversion		---			---			---		---		---			(118,777	)		(118,777	)

Balances at December 31, 2007		2,637,788			264			---		---		19,000,986			270,332			19,271,582

Net loss for the period (audited)		---			---			---		---		---			(387,073	)		(387,073	)

Accretion of trust fund relating to common stock subject to possible conversion		---			---			---		---		---			115,735			115,735

Reclassification of underwriting and legal fees to additional paid-in capital		---			---			---		---		962,500			---			962,500

Reclassification of common stock value subject to redemption to current liability		---			---			---		---		(19,963,486	)		(17,758	)		(19,981,244	)

Balances at December 31, 2008		2,637,788			264			---		---		---			(18,764	)		(18,500	)

Reclassification of redeemable shares		862,212			86			---		---		---			(86	)		---

The accompanying notes should be read in conjunction with the financial statements

F-5

PINPOINT ADVANCE CORP.

(A development stage corporation)

STATEMENTS OF CHANGES IN STOCKHOLDERS’ (DEFICIT) EQUITY

For the period from September 6, 2006 (inception) to December 31, 2011

	Common stock						Common stock, Class A				Additional Paid-in capital			Deficit accumulated during the development stage			Total Stockholders’ equity
	Shares			Amount			Shares		Amount

Shares decrease as a result of reverse split		(2,515,598	)		(251	)		---		---		251			---			---

Return and cancellation of initial stockholders common stock		(625,000	)		(62	)		---		---		62			---			---

Issuance of common stock to initial stockholders		---			---			3,125,000		313		(313	)		---			---

Net loss for the period (audited)		---			---			---		---		---			(45,682	)		(45,682	)

Balances at December 31, 2009		359,402		$	37			3,125,000		313		---		$	(64,532	)	$	(64,182	)

Net Loss for the period (audited)															72,323			72,323

Balances at December 31,2010		359,402		$	37			3,125,000		313		---		$	(136,855	)		(136,505	)

Net Loss for the period (audited)		-			-			-		-		-			81,743			(81,743	)

Balances at December 31, 2011		359,402			37			3,125,000		313		-			(218,598	)		(218,248	)

The accompanying notes should be read in conjunction with the financial statements

F-6

PINPOINT ADVANCE CORP.

(A development stage corporation)

STATEMENTS OF CASH FLOWS

							For the period from
	For the year			For the year			September 6, 2006
	ended			ended			(inception) to
	December 31, 2011			December 31, 2010			December 31, 2011
OPERATING ACTIVITIES

Net Loss for the period	$	(81,743	)	$	(72,323	)		(197,712	)
Increase in accrued expenses and other
accounts payable		66,290			7,421			432,867
(Increase) Decrease in prepaid expenses
and other accounts receivable		666			72,467			(3,291	)
Net cash provided (used) in
operating activities		(14,787	)		7,565			231,864

INVESTING ACTIVITIES
Cash contributed to Trust Fund		-			-
Net cash used in investing activities		-			-

FINANCING ACTIVITIES
Proceeds from issuance of common stock to
initial stockholders		-			-			25,000
Proceeds from loans from related party		-			-			151,210
Payment of loans from related party		-			-			(151,210	)
Deposit		-			-			(317	)
Short term bank credit		-			-			-
Payment of Deferred offering cost		-			-			(210,161	)
Proceeds from issuance of insider
warrants		-			-			1,500,000
Proceeds from purchase of
underwriter’s purchase option		-			-			100
Redemption of common stock								(28,491,250	)
Portion of net proceeds from sale of
units through public offering
allocable to shares of common stock
subject to possible conversion		-			-			8,506,963
Net proceeds from sale of units through
public offering allocable to:		-			-
Stockholders’ equity								18,438,650
Net cash provided by financing activities		-			-		$	(231,015	)

Net increase (Decrease) in cash		(14,787	)		7,565			849
Cash
Beginning of period		15,636			8,071			-
End of period		849			15,636			849
Fair value of underwriter’s purchase option
included in offering costs		-			-			738,750
Deferred legal fees against additional paid-
in capital		-			-			100,000
Deferred underwriting fees against
additional paid-in capital		-			-			862,500
Cash paid during the period for income
taxes		-			-			25,205
Cash paid during the period for interest		-			-			5,953

The accompanying notes should be read in conjunction with the financial statements

F-7

PINPOINT ADVANCE CORP.

(A development stage corporation)

NOTES TO FINANCIAL STATEMENTS

NOTE 1-DISCUSSION OF THE COMPANY’S ACTIVITIES

Organization and activities: Pinpoint Advance Corp. (the “Company”) was incorporated in Delaware on September 6, 2006, as a blank check company that was formed for the purpose of acquiring, merging with, engaging in a capital stock exchange with, purchasing all or substantially all of the assets of, or engaging in any other similar business combination with a business that has operations or facilities located in Israel or which is a company operating outside of Israel, specifically in Europe, which management believes would benefit from establishing operations or facilities in Israel, preferably in the technology sector (“Target Business”). All activity from inception (September 6, 2006) through December 31, 2011 was related to the Company’s formation and capital raising activities. The Company has selected December 31 as its fiscal year end.

The Company is considered to be a development stage company and as such the financial statements presented herein are presented in accordance with Statement of Financial Accounting Standards ASC 915 "Development Stage Entities" (formerly SFAS No. 7).

The registration statement for the Company’s initial public offering (“Offering”) was declared effective on April 19, 2007. On April 25, 2007, the Company completed a private placement ("Private placement") and received net proceed of $1.5 million. The Company consummated the Offering on April 25, 2007 for net proceeds of approximately $27 million (including the over allotment).

On October 27, 2008, the Company announced it had executed a letter of intent to effectuate a business combination with a privately-held company with its headquarters in Israel (the "LOI"). All parties to the LOI negotiated the terms of a definitive agreement and in fact, a definitive agreement (the "Agreement") was executed by all parties to the LOI. However, one of the parties to the Agreement claimed it never released its signature thereto and has since indicated that it no longer wished to pursue the proposed business combination.

The Company believes a binding, definitive agreement was executed by all parties and is currently reviewing all available legal options. However, because one of the parties has indicated its position that no binding agreement exists and that it does not wish to continue with negotiations at this time, the Company liquidated the trust account established by the Company for the benefit of its public stockholders, and returned funds to the holders of shares of the Company common stock issued in the Offering, in accordance with its Offering prospectus and the terms of its amended and restated certificate of incorporation.

At a Special Meeting held on May 15, 2009, a majority of the Company stockholders voted in favor of the proposal to remove the blank check company restrictions from the Company’s charter, thereby allowing the Company to continue its corporate existence. In accordance with stockholder approval of the Company’s proposals, on May 19, 2009 the Company effectuated the redemption of the shares of common stock issued in the Offering in an amount of $9.91 per share from the Company’s trust account and distribution of one share of new common stock for every eight Offering shares redeemed. The stockholders also approved the creation of a new class of common stock called Class A Common Stock and exchanged each share of common stock held by the initial stockholders for five shares of Class A Common Stock. The rights of the Class A Common Stock are identical to the new common share rights.

All the warrants issued in the Offering expired unexercised on April 19, 2011 and were canceled.

F-8

PINPOINT ADVANCE CORP.

(A development stage corporation)

NOTES TO FINANCIAL STATEMENTS-Continued

Going concern consideration As indicated in the accompanying financial statements, at December 31, 2011, the Company had $849 in cash, current liabilities of $222,706 and working capital deficit of $218,598. Further, the Company has incurred and expects to continue to incur costs. These factors, among others, indicate that the Company may be unable to continue operations as a going concern unless further financing, whether from related parties or other sources, is consummated.

NOTE 2-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Cash and Cash Equivalents—Cash and cash equivalents are deposits with financial institutions as well as short-term money market instruments with maturities of three months or less when purchased. The Company did not hold any cash equivalents as of December 31, 2011.

Trust Account-The Company's restricted cash and cash equivalents was held in the Trust Account until May 19, 2009 and was invested in a money market fund. The Company recognized interest income $1,359,678 from inception (September 6, 2006) to May 19, 2009 on such money market fund, which is included in interest income on the accompanying statements of operations.

Concentration of Credit Risk-financial instruments that potentially subject the Company to a significant concentration of credit risk consist primarily of cash and cash equivalents. The Company may maintain deposits in federally insured financial institutions in excess of federally insured limits. However, management believes the Company is not exposed to significant credit risk due to the financial position of the depository institutions in which those deposits are held.

Net Income per Share-Basic loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period.

Fair Value of Financial Instruments-the fair values of the Company’s assets and liabilities that qualify as financial instruments under ASC 825 "Financial Instrument" (SFAS No. 107) “Disclosures about Fair Value of Financial Instrument,” approximate their carrying amounts presented in the balance sheet at December 31, 2011.

Use of Estimates-The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that effect certain reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Income Taxes-Deferred income tax assets and liabilities are computed for differences between the financial statement and tax basis of assets and liabilities that will result in future taxable or deductible amounts and are based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred income tax assets to the amount expected to be realized.

Recently Issued Accounting Standards Updates

In May 2011, the FASB issued Accounting Standards Update (ASU) 2011-04, "Amendments to Achieve Common Fair Value. Measurement and Disclosure Requirements in U.S. GAAP and IFRS (ASU 2011-04) that clarifies the application of existing guidance and disclosure requirements, changes certain fair value measurement principles and requires additional disclosures about fair value measurements. ASU 2011-04 will be effective for interim and annual periods beginning on or after December 15, 2011 and therefore is effective for the Company in its first quarter of fiscal 2012 and will be applied prospectively. The Company does not expect its adoption of ASU 2011-04 to have a material impact on its financial statements.

F-9

PINPOINT ADVANCE CORP.

(A development stage corporation)

NOTES TO FINANCIAL STATEMENTS-Continued

NOTE 3- COMMITMENTS AND CONTINGENCIES

On December 8, 2009, the Company and others, filed a lawsuit against Elbit Systems Holdings Ltd. ("Elbit") and others, in the Petah Tikva District Court of Israel, for damages in the amount of NIS 37.7 million ($10 million) (the "Lawsuit"). The Lawsuit is based on the following factual background:

That following a period of extensive negotiations between inter alia, the Company and Elbit, a July 2008 Letter of Intent was signed, which contemplated inter alia, the Company purchase from Elbit of 31% of Kinetics, i.e. 18,716 Ordinary Shares of Kinetics Ltd. (the "Kinetics Shares"), in the amount of $ 26 million Following said purchase, a merger between the Company and Kinetics was to be effectuated;

That the Company, as a Blank Check company and in order to fulfill its duty to obtain timely shareholders' approval, was compelled to finalize the deal by October 18, 2008;

That based on the Letter of Intent, and a belief at the time of Elbit's good faith, the Company continued negotiating

That after lengthy negotiations, a definitive agreement was finalized, and signed, in early October 2009;

That Elbit's signature on the definitive agreement was withheld, based on Elbit's claim that it had "just received" information about a new order that would raise the forecast of Kinetics' profits in 2009;

That Elbit’s remained a shareholder of Kinetics Shares after October 18, 2008.

The Lawsuit seeks reparation for damages caused to plaintiffs as a result of defendants' lack of good faith in negotiations, and requests that the Court hold that defendants materially breached the definitive agreement, that defendants are estopped from denying that the definitive agreement was finalized, and that defendants acted with fraud, and alternatively, with recklessness. The Lawsuit also alleges that Elbit was unjustly enriched by its conduct, and that any enrichment as a result of Elbit's retention of the Kinetics Shares belongs to the Company.

The Lawsuit is in preliminary stages. Defendants have filed a Statement of Defense, and pursuant to Court suggestion, the parties have submitted their dispute to mediation. The mediation was unsuccessful. The lawsuit was referred back to court. Therefore the Company cannot opine on the likelihood of success at the present time.

F-10

PINPOINT ADVANCE CORP.

(A development stage corporation)

NOTES TO FINANCIAL STATEMENTS-Continued

NOTE 4-STOCKHOLDER’S EQUITY

In its Offering, effective April 19, 2007 (closed on April 25, 2007), the Company sold to the public 2,875,000 Units (the “Units” or a “Unit”) at a price of $10.00 per Unit. Each unit consisted of one share and one warrant. Each warrant entitles the holder to purchase one share of the Company's common stock at a price of $7.50. Proceeds from the Offering and the Private placement totaled approximately $28.5 million, which was net of approximately $1.6 million in underwriting fees and other expenses paid at closing.

The Company also sold to underwriters for $100 an option to purchase up to 125,000 Units.

On May 19, 2009 in accordance with stockholder consent, the Company effectuated the exchange and redemption of its capital stock whereby holders of stock in the Offering received one share of new common stock for eight shares held and issued one share of Class A common stock for each share of common stock purchased prior to the Company’s Offering for an aggregate of 359,402 shares of new common stock and 3,125,000 shares of Class A common stock. The class A share rights are identical to the new common share rights.

All the warrants issued in the Offering expired unexercised on April 19, 2011 and were canceled.

NOTE 5-CAPITAL STOCK

Preferred Stock

The Company is authorized to issue up to 1,000,000 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

On February 20, 2007, the number of outstanding shares decreased from 828,125 shares to 625,000 shares as a result of a reverse split of the Company's common stock.

On April 25, 2007, the number of outstanding shares was 3,125,000 after consummating the Offering.

On May 2, 2007, the number of outstanding shares was 3,500,000 after exercising the over-allotment option.

On May 19, 2009, the number of outstanding shares was decreased from 3,500,000 to 359,402 as a result of a reverse split of 8 to 1 of the Offering shares, and as result of returned cancellation of initial stockholders common stock.

Class A Common Stock

On May 19, 2009, the number of outstanding share was 3,125,000 after issuance of common stock to initial stockholders.

NOTE 6- SUBSEQUENT EVENTS

The Company evaluated subsequent events through the date the financial statement were issued, no material events were found.

F-11

SIGNATURES

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

	Pinpoint Advance CORP.

	By:	/s/ Adiv Baruch
Dated: March 27, 2012		Name: Adiv Baruch Title: Chief Executive Officer (Principal Executive Officer)

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

Signature	Title	Date

/s/ Adiv Baruch	President and Chief Executive Officer	March 27, 2012
Adiv Baruch	(principal executive officer)

/s/ Ronen Zadok	Chief Financial Officer and	March 27, 2012
Ronen Zadok	Secretary (principal financial and accounting officer)

/s/ Yoav Schwalb	Director	March 27, 2012
Yoav Schwalb

/s/ Yaron Schwalb	Director	March 27, 2012
Yaron Schwalb

Pinpoint Advance CORP - FORM 10-K - March 30, 2012

Attached files

Pinpoint Advance CORP Reports