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EX-32 - CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 - AFFORDABLE GREEN HOMES INTERNATIONALexhibit_32.htm
EX-31.2 - CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO THE SECURITIES EXCHANGE ACT OF 1934, RULES 13A-14(A) AND 15D-14(A), AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 - AFFORDABLE GREEN HOMES INTERNATIONALexhibit_31-2.htm
EXCEL - IDEA: XBRL DOCUMENT - AFFORDABLE GREEN HOMES INTERNATIONALFinancial_Report.xls
EX-31.1 - CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO THE SECURITIES EXCHANGE ACT OF 1934, RULES 13A-14(A) AND 15D-14(A), AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 - AFFORDABLE GREEN HOMES INTERNATIONALexhibit_31-1.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

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

For the Quarterly Period Ended September 30, 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: 333-144765
AFFORDABLE GREEN HOMES INTERNATIONAL 

(Exact name of registrant as specified in its charter)

Nevada
87-0785410
(State or other jurisdiction of incorporation or organization)
(IRS Employer Identification No.)

1325 Spruce St, Suite 200
Riverside, California 92507 

 (Address of principal executive offices)

(951) 538-8362 

(Registrant’s telephone number, including area code)

Indicate by check mark whether the issuer:  (1) 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  o No x

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 o No x

 
1

 


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

Large accelerated filer 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 o No x

State the number of shares outstanding of each of the registrants classes of common equity, as of the latest practicable date: 12,925,000 shares of common stock with a par value of $.0001 outstanding as of September 30, 2011.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
2

 

AFFORDABLE GREEN HOMES INTERNATIONAL

FORM 10-Q
FOR THE QUARTER ENDED SEPTEMBER 30, 2011
TABLE OF CONTENTS


   Page
PART I – FINANCIAL INFORMATION
4
   
ITEM 1 – FINANCIAL STATEMENTS
4
   
ITEM 2 – MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
10
   
ITEM 3 – Quantitative and Qualitative Disclosures About Market Risk
14
   
ITEM 4 – CONTROLS AND PROCEDURES
14
   
PART II – OTHER INFORMATION
15
   
ITEM 1 – LEGAL PROCEEDINGS
15
   
ITEM 1A – RISK FACTORS
15
   
ITEM 2 – UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
15
   
ITEM 3 – DEFAULTS UPON SENIOR SECURITIES
15
   
ITEM 4 – (REMOVED AND RESERVED)
15
   
ITEM 5 – OTHER INFORMATION
15
   
ITEM 6 – EXHIBITS
15

 
3

 

PART I – FINANCIAL INFORMATION
 
 ITEM 1 – FINANCIAL STATEMENTS

AFFORDABLE GREEN HOMES INTERNATIONAL
 
(A Development Stage Company)
 
BALANCE SHEETS
 
             
             
     March 31, 2011    
Sept. 30, 2011
 
         
(Unaudited)
 
             
ASSETS
           
   Current assets
           
      Cash
  $ -     $ 208  
     Total currnt assets
    -       208  
                 
       Inventory
    100,000       100,000  
             Total Assets
  $ 100,000     $ 100,208  
                 
                 
LIABILITIES & STOCKHOLDERS' EQUITY
               
                 
Current liabilities
               
      Bank Overdraft
  $ 2,254     $ -  
      Accounts payable
    7,612       9,764  
      Related party payables
    276,346       303,914  
      Customer deposits
    32,000       32,000  
      Accued interest payable
    38,621       46,871  
      Notes payable
    165,000       165,000  
             Total current liabilties
    521,833       557,549  
                 
Total Liabilities
    521,833       557,549  
                 
Stockholders' Equity
               
      Common stock, $.0001 par value;
               
          25,000,000 shares authorized;
               
          12,925,000 shares issued
               
          and outstanding
    1,293       1,293  
      Additional paid in capital
    135,457       135,457  
      Deficit accumulated during the
               
         development stage
    (558,583 )     (594,091 )
                 
Total Stockholders' Equity
    (421,833 )     (457,341 )
                 
Total Liabilities and Stockholders' Equity
  $ 100,000     $ 100,208  
                 
                 
The accompanying notes are an integral part of the financial statements.
 
 
 
 
 
 
 
4

 
 
AFFORDABLE GREEN HOMES INTERNATIONAL
(A Development Stage Company)
STATEMENTS OF OPERATIONS
(Unaudited)
                               
                           
Period From
 
                           
Oct. 10, 2006
 
   
Three Months
   
Three Months
   
Six Months
   
Six Months
   
(Inception)
 
   
Ended
   
Ended
   
Ended
   
Ended
   
To
 
   
Sept. 30, 2010
   
Sept. 30, 2011
   
Sept. 30, 2010
   
Sept. 30, 2011
   
Sept. 30, 2011
 
                               
Revenues
  $ -     $ -     $ -     $ -     $ -  
      -       -       -       -       -  
                                         
Operating expenses:
                                       
     Amortization & depreciation
    -       -       -       -       -  
     General and administrative
    24,959       12,244       27,169       27,258       547,220  
      24,959       12,244       27,169       27,258       547,220  
                                         
Gain (loss) from operations
    (24,959 )     (12,244 )     (27,169 )     (27,258 )     (547,220 )
                                         
Other income (expense):
                                       
      Interest expense
    (4,375 )     (4,125 )     (8,750 )     (8,250 )     (46,871 )
      (4,375 )     (4,125 )     (8,750 )     (8,250 )     (46,871 )
Income (loss) before
                                       
     Provision for income taxes
    (29,334 )     (16,369 )     (35,919 )     (35,508 )     (594,091 )
                                         
Provision for income tax
    -       -       -       -       -  
                                         
Net income (loss)
  $ (29,334 )   $ (16,369 )   $ (35,919 )   $ (35,508 )   $ (594,091 )
                                         
Net income (loss) per share
                                       
(Basic and fully diluted)
  $ (0.00 )   $ (0.00 )   $ (0.00 )   $ (0.00 )        
                                         
Weighted average number of
                                       
common shares outstanding
    12,925,000       12,925,000       12,925,000       12,925,000          
                                         
                                         
                                         
                                         
                                         
                                         
The accompanying notes are an integral part of the financial statements.
 
 
 
 
5

 



AFFORDABLE GREEN HOMES INTERNATIONAL
(A Development Stage Company)
STATEMENTS OF CASH FLOWS
(Unaudited)
                   
               
Period From
 
               
Oct. 10, 2006
 
   
Six Months
   
Six Months
   
(Inception)
 
   
Ended
   
Ended
   
To
 
   
Sept. 30, 2010
   
Sept. 30, 2011
   
Sept. 30, 2011
 
                   
Cash Flows From Operating Activities:
                 
     Net income (loss)
  $ (35,919 )   $ (35,508 )   $ (594,091 )
                         
     Adjustments to reconcile net loss to
                       
     net cash provided by (used for)
                       
     operating activities:
                       
          Inventory
                    (100,000 )
          Bank overdraft
    -       (2,254 )     -  
          Accounts payable
    -       2,152       9,764  
          Related party payables
    23,463       27,568       303,914  
          Accrued payables
    12,257       8,250       46,871  
          Customer deposits
    -       -       32,000  
          Compensatory stock issuances
    -       -       38,000  
               Net cash provided by (used for)
                       
               operating activities
    (199 )     208       (263,542 )
                         
                         
Cash Flows From Investing Activities:
                       
      -       -       -  
               Net cash provided by (used for)
                       
               investing activities
    -       -       -  
                         
                         
                         
                         
(Continued On Following Page)
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of the financial statements.
 
 


 
6

 


AFFORDABLE GREEN HOMES INTERNATIONAL
(A Development Stage Company)
STATEMENTS OF CASH FLOWS
(Unaudited)
 
 
(Continued From Previous Page)
                   
                   
               
Period From
 
               
Oct. 10, 2006
 
   
Six Months
   
Six Months
   
(Inception)
 
   
Ended
   
Ended
   
To
 
   
Sept. 30, 2009
   
Sept. 30, 2011
   
Sept. 30, 2011
 
                   
Cash Flows From Financing Activities:
                 
          Sales of common stock
    -       -       98,750  
          Notes payable - borrowings
    -       -       175,000  
          Notes payable - payments
    -       -       (10,000 )
               Net cash provided by (used for)
                       
               financing activities
    -       -       263,750  
                         
Net Increase (Decrease) In Cash
    (199 )     208       208  
                         
Cash At The Beginning Of The Period
    238       -       -  
                         
Cash At The End Of The Period
  $ 39     $ 208     $ 208  
                         
                         
Schedule Of Non-Cash Investing And Financing Activities
                       
                         
None
                       
                         
                         
Supplemental Disclosure
                       
                         
Cash paid for interest
  $ -     $ -     $ -  
Cash paid for income taxes
  $ -     $ -     $ -  
                         
                         
                         
                         
                         
                         
                         
                         
The accompanying notes are an integral part of the financial statements.
 
 
 
 
7

 
AFFORDABLE GREEN HOMES INTERNATIONAL
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
(Unaudited)


NOTE 1. ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

Affordable Green Homes International (the “Company”), was incorporated in the State of Nevada on October 10, 2006. The Company is in business to build affordable family homes for lower income workers in Mexico and South American countries by using low cost structural concrete insulated panels as the basic construction methodology. The Company plans to purchase land for development, and to market and build finished homes using local labor.

Basis of Presentation

The accompanying unaudited financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and disclosures required by generally accepted accounting principles for complete financial statements. All adjustments which are, in the opinion of management, necessary for a fair presentation of the results of operations for the interim periods have been made and are of a recurring nature unless otherwise disclosed herein. The results of operations for such interim periods are not necessarily indicative of operations for a full year.

Cash and cash equivalents

The Company considers all highly liquid investments with an original maturity of three months or less as cash equivalents.

Accounts receivable

The Company reviews accounts receivable periodically for collectability and establishes an allowance for doubtful accounts and records bad debt expense when deemed necessary.

Property and equipment

Property and equipment are recorded at cost and depreciated under straight line methods over each item's estimated useful life.

Revenue recognition

Revenue is recognized on an accrual basis as earned under contract terms.









 
8

 
AFFORDABLE GREEN HOMES INTERNATIONAL
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
(Unaudited)


NOTE 1. ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued):

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect 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.

Income tax

The Company accounts for income taxes pursuant to ASC 740. Under ASC 740 deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

Net income (loss) per share

The net income (loss) per share is computed by dividing the net income (loss) by the weighted average number of shares of common outstanding. Warrants, stock options, and common stock issuable upon the conversion of the Company's preferred stock (if any), are not included in the computation if the effect would be anti-dilutive and would increase the earnings or decrease loss per share.

Financial Instruments

The carrying value of the Company’s financial instruments as reported in the accompanying balance sheet approximates fair value.
 

 
 
9

 

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

Our Management’s Discussion and Analysis contains not only statements that are historical facts, but also statements that are forward-looking (within the meaning of Section 27A of the Securities Act of 1933 (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”)).  Forward-looking statements are, by their very nature, uncertain and risky.  These risks and uncertainties include international, national and local general economic and market conditions; demographic changes; our ability to sustain, manage, or forecast growth; raw material costs and availability; new product development and introduction; existing government regulations and changes in, or the failure to comply with, government regulations; adverse publicity; competition; the loss of significant customers or suppliers; fluctuations and difficulty in forecasting operating results; changes in business strategy or development plans; business disruptions; the ability to attract and retain qualified personnel; the ability to protect technology; and other risks that might be detailed from time to time in our filings with the Securities and Exchange Commission (“SEC”).

Although the forward-looking statements in this report reflect the good faith judgment of our management, such statements can only be based on facts and factors currently known by them.  Consequently, and because forward-looking statements are inherently subject to risks and uncertainties, the actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements.  You are urged to carefully review and consider the various disclosures made by us in this report and in our other reports as we attempt to advise interested parties of the risks and factors that may affect our business, financial condition, and results of operations and prospects.

As used in this Quarterly Report, the terms “we,” “us,” and “our,” mean Affordable Green Homes International unless otherwise indicated.

Overview

We were incorporated on October 10, 2006 in the state of Nevada in order to develop real properties and construction technologies.

The Business

We are engaged in the business of construction of residential, commercial and industrial structures using “Structural Concrete Insulated Panel” technology (“SCIP”).   We initially intend to provide moderate- to low-cost housing in the Northern Panhandle of Texas around the Stinnett/Perryton area where an acute housing shortage currently exists, and in the area of Galveston, Texas, which has been affected by Hurricane Ike.  Homes utilizing SCIP technology are constructed with high quality, lightweight, prefabricated panels.  The interior and exterior surfaces of the panels are covered with a concrete coating, designed and tested to resist hurricanes, tornados and earthquakes.  When the homes are completed, they are more structurally sound than wood or concrete alone and can typically be constructed in less than 30 days.

We intend to operate three business units:

 
1.
A SCIP manufacturing unit;
 
2.
A construction unit based in the Northern Panhandle of Texas, primarily around the Stinnett/Perryton area; and
 
3.
A construction unit based in the Galveston, Texas area.

SCIP Manufacturing:   In 2007, Ron Bell built a SCIP home near Crystal Beach, Texas, directly on the Gulf Coast approximately ten miles northeast of Galveston.  The home was built on pilings that were designed so that a hurricane-type high surf would pass underneath and not injure the structure of the home.  This home was the only house within several blocks to survive Hurricane Ike. This house in Crystal Beach has significantly raised the awareness of construction using SCIP technology in those areas prone to hurricanes, tornados and earthquakes.  Officials from the Federal Emergency Management Agency (FEMA) as well as Texas Tech University have visited the Crystal Beach House to inspect it and discuss a wide range of topics concerning using this type of construction all along the Gulf Coast.

 
 
10

 
 
ITEM 2 – MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - continued
 
Construction Unit – Northern Texas Panhandle:  There is an acute housing shortage in the Northern Panhandle of Texas.  This is due to a number of factors:

 
1.
Conoco-Phillips – seven to ten year plant expansion
 
2.
Chevron – seven to ten year plant expansion
 
3.
Two Carbon Black plants within ten miles of Stinnett
 
4.
New plastics plant within ten miles of Stinnett
 
5.
New aircraft plant (Osprey Project) within 20 miles of Stinnett

Due to this acute shortage, we believe that there will be high demand for our construction of medium sized houses (i.e., those ranging from 1200 to 1500 sq. ft.) in the area.  Our management has met with the Mayor of Stinnett as well as the President of the Stinnett Community Development Corporation, and both have confirmed that there is a demand for the type of housing we can deliver.  We are currently working to locate residential lots to begin construction by the summer of 2012.

Construction Unit – Galveston Area:   Because Hurricane Ike created a great deal of destruction and devastation in the general area, there are a large number of homes and commercial structures that need to be rebuilt.  We are currently in discussions with several major insurance carriers about rebuilding homes which utilize SCIP technology.

Research and Development Activities and Costs

We have not incurred any costs to date relative to research and development activities.  We plan to undertake research and development activities during the summer 2012 in order to improve our manufacturing process as well as to develop low environmental impact building components.

Critical Accounting Policies

Our discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have been prepared in accordance with accounting principles generally accepted in the U.S.  The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, and expenses.  In consultation with our Board of Directors, we have identified several accounting principles that we believe are key to understanding of our financial statements.  These important accounting policies require management's most difficult, subjective judgments.

Development Stage Enterprise

We are a development stage enterprise, as defined ASC 915, “Accounting and Reporting By Development Stage Enterprises.”

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities 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.

Stock Issued for Non-Cash Transactions

It is our policy to value stock issued for non-cash transactions, such as services, at the fair market value of the goods or services received or the consideration granted, whichever is more readily determinable, at the date the transaction is negotiated.  There were no shares of common stock issued for services during the fiscal year ended March 31, 2011.

 
 
11

 
 
ITEM 2 – MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - continued
 
Going Concern

Our financial statements are prepared using generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business.  Our ability to continue as a going concern is dependent upon our ability to locate sources of capital, and attain future profitable operations.  Our management is currently initiating their business plan.  The accompanying financial statements do not include any adjustments that might be necessary should we be unable to continue as a going concern.

Results of Operations

You should read the selected financial data set forth below along with our discussion and our financial statements and the related notes.  We have derived the financial data from our unaudited financial statements.  We believe the financial data shown in the table below include all adjustments consisting only of normal recurring adjustments, that we consider necessary for a fair presentation of such information. Operating results for the period are not necessarily indicative of the results that may be expected in the future.

Results for the Three Months Ended September 30, 2011 Compared to the Three Months Ended September 30, 2010
 
                                                                   
Three Months Ended   Three Months Ended       Increase/  
  
September 30, 2011   
  September 30, 2010
     (Decrease)  
Revenue
  $ 0     $ 0     $ 0  
Operating expenses
    12,244       24,959     $ (12,715
Net (loss)
    12,244       24,959     $ (12,715
Net (loss) per share
  $ (0   $ (0   $ (0
 
Revenues

We had revenues from operations in the amount of $0 for the three months ended September 30, 2011 as compared to revenues of $0 for the three months ended September 30, 2010.

Operating Expenses

Operating expenses decreased by $12,715 to $12,244 for the three months ended September 30, 2011, as compared to $24,959 for the three months ended September 30, 2010.  The decrease arose from a reduction in fees from consulting, accounting and legal.

Net Loss

We had a net loss of $16,369 for the three months ended September 30, 2011 compared to a net loss of $29,334 for the three months ended September 30, 2010.

Results for the Six Months Ended September 30, 2011 Compared to the Six Months Ended September 30, 2010
 
                                                                              
Six Months Ended     Six Months Ended    
Increase/
 
 
September 30, 2011
   
September 30, 2010
    (Decrease)  
Revenue
  $ 0     $ 0     $ 0  
Operating expenses
    27,258       27,169     $ 89  
Net (loss)
    27,258       27,169     $ 89  
Net (loss) per share
  $ (0   $ (0   $ (0
Revenues

We had revenues from operations in the amount of $0 for the six months ended September 30, 2011 as compared to revenues of $0 for the six months ended September 30, 2010.

Operating Expenses

Operating expenses increased by $89 to $27,258 for the six months ended September 30, 2011, as compared to $27,169 for the six months ended September 30, 2010.

Net Loss

We had a net loss of $35,508 for the six months ended September 30, 2011 compared to a net loss of $35,919 for the six months ended September 30, 2010.

 
 
 
 
 
12

 
 
ITEM 2 – MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - continued
 
Liquidity and Capital Resources

We currently have no material commitments for capital expenditures and have no fixed expenses.

Working capital is summarized and compared as follows:
 
 
September 30,
   
September 30,
 
   
2011
    2010  
             
Current assets
  $ 0     $ 358  
Current liabilities
    557,549       479,882  
Deficit
  $ (557,549 )   $ (479,524 )

The changes in our working capital are primarily due to an increase in related party payables and accrued interest payable.

Changes in cash flows are summarized as follows:

Our net cash provided by operations was $208 for the six months ended September 30, 2011 as compared to $120 used by operations for the six months ended September 30, 2010.

During the six months ended September 30, 2011, we experienced a net loss of $35,508.  This included operating expenses in the amount of $27,258 and interest expense of $8,250.

During the six months ended September 30, 2010, we experienced a net loss of $35,919.  This included operating expenses in the amount of $27,169 and interest expense of $8,750.

Cash provided by financing activities for the six months ended September 30, 2011 and 2010 was $0 and $0, respectively.

As of September 30, 2010 and 2011, we owed related parties $249,184 and $303,914, respectively, for working capital advances which were provided to us on an interest-free basis.

We had total principal due under all notes payable at September 30, 2010 and 2011 of $175,000 and $165,000, respectively, all currently due, with accrued interest payable of $30,371 and $46,871, respectively. Interest expense under all notes payable in the fiscal quarters ended September 30, 2010 and 2011 was $4,375 and $4,125, respectively.

At September 30, 2010 and 2011, we had $90,000 in unsecured notes payable due to a corporation controlled by an officer, bearing interest at 10% per annum, plus a 10% fee for late repayment which has been incurred, with all principal and interest currently due.

At September 30, 2010 and 2011, we had $85,000 and $75,000, respectively, in unsecured notes payable due to several individuals, bearing interest at 10% per annum, and with all principal and interest currently due. One of these notes is in the amount of $10,000 and is convertible at $0.10 per share at any time prior to repayment and in the sole discretion of the note holder. The note also carries a 10% fee for late payment which has now been incurred. A second note which is in the amount of $50,000 allows the note holder, in their sole discretion, to take repayment in either cash or 600,000 shares of our common stock.

There was no net cash used or provided from investing activities for the six months ended September 30, 2011 or 2010.

 
 
 
 
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ITEM 3 – QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information under this item.

ITEM 4 – CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Our Chief Executive Officer and Chief Financial Officer have evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934) as of the end of period covered by this report.  Based upon such evaluation,  the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective to ensure that the information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
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PART II – OTHER INFORMATION

ITEM 1 – LEGAL PROCEEDINGS

To the best knowledge of management, there are no litigation matters pending or threatened against us, nor are we aware of any governmental authority contemplating any legal proceeding against us.

ITEM 1A – RISK FACTORS

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 (the “Exchange Act”) and are not required to provide the information under this item.

ITEM 2 – UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

There have been no events which are required to be reported under this item.

ITEM 3 – DEFAULTS UPON SENIOR SECURITIES

There have been no events which are required to be reported under this item.

ITEM 4 – (REMOVED AND RESERVED)


ITEM 5 – OTHER INFORMATION

There have been no events which are required to be reported under this item.

ITEM 6 – EXHIBITS

Exhibits:

Exhibit No.
Description
Certification of Chief Executive Officer Pursuant to the Securities Exchange Act of 1934, Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
Certification of Chief Financial Officer Pursuant to the Securities Exchange Act of 1934, Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS
XBRL Instance Document
101.SCH
XBRL Taxonomy Extension Schema
101.CAL
XBRL Taxonomy Extension Calculation Linkbase
101.DEF
XBRL Taxonomy Extension Definition Linkbase
101.LAB
XBRL Taxonomy Extension Labels Linkbase
101.PRE
XBRL Taxonomy Extension Presentation Linkbase

 
 
 
 
 
 

 
 
15

 

SIGNATURES

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

AFFORDABLE GREEN HOMES INTERNATIONAL


/s/ Michael P Vahl         

Michael P. Vahl
Chief Executive Officer and President
(Principal Executive Officer)

Date:  March 19, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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