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EX-31 - EXHIBIT 31 CERTIFICATION - ExeLED Holdings Inc.exhibit31.htm
EX-32 - EXHIBIT 32 CERTIFICATION - ExeLED Holdings Inc.exhibit32.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

_______________


FORM 10-Q/A

_______________

(Mark One)


x

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


For the quarterly period ended December 31, 2011


OR


o

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


For the transition period from ___________ to ___________


VERILINK CORPORATION

(Exact name of registrant as specified in its charter)


 

Delaware

 

000-28562

 

94-2857548

(State or other jurisdiction of incorporation or organization)

 

(Commission File No.)

 

(I.R.S. Employer Identification No.)


501 South Johnstone, Suite 501, Bartlesville, Oklahoma 74003

 (Address of Principal Executive Offices)

_______________


(918) 336-1773

(Issuer Telephone number)

_______________


(Former Name or Former Address if Changed Since Last Report)


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 þ  No ¨


Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes  þ  No o


Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.


Large accelerated filer

¨

Accelerated filer

¨

Non-accelerated filer

¨

Smaller reporting company

þ


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


The number of shares outstanding of the Issuers common stock as of February 7, 2012 was 26,104,100 shares of common stock.



EXPLANATORY NOTE


The Company is filing this Amendment on Form 10-Q/A to the Company's quarterly report on Form 10-Q for the period ended December 31, 2011 filed with the Securities and Exchange Commission on the 10h day of February, 2012, to furnish Exhibit 101 to the Form 10-Q in accordance with Rule 405 of Regulation S-T.  Exhibit 101 consists of the following materials from the Company's Form 10-Q, formatted in XBRL (eXtensible Business Reporting Language):


101.INS

XBRL Instance Document

101.SCH

XBRL Taxonomy Schema

101.CAL

XBRL Taxonomy Calculation Linkbase

101.DEF

XBRL Taxonomy Definition Linkbase

101.LAB

XBRL Taxonomy Label Linkbase

101.PRE

XBRL Taxonomy Presentation Linkbase


This Amendment speaks as of the original filing date, does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update in any way disclosures made in the Form 10-Q.


Pursuant to Rule 406T of Regulation S-T, the interactive data filed attached as Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.




PART I


Item 1.  Financial Statements



VERILINK CORPORATION

(An Exploration Stage Company)


BALANCE SHEETS

(unaudited)


 

 

December 31, 2011

 

June 30,

 2011

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

Advances from shareholder

$               47,015

 

$               47,015

 

Accrued liabilities

8,563

 

6,683

 

 

 

 

 

 

TOTAL CURRENT LIABILITIES

$               55,578

 

$               53,698

 

 

 

 

 

STOCKHOLDERS' DEFICIT

 

 

 

 

Preferred stock, par value $0.01, authorized: 1,000,000 shares, no shares  issued or outstanding

$                         -

 

$                         -

 

Common stock: $0.01 par value; 60,000,000 shares authorized; 26,104,100 shares issued and outstanding, respectively

261,041

 

261,041

 

Additional paid-in capital

90,804,820

 

90,797,923

 

Accumulated other comprehensive loss

(63,201)

 

(63,201)

 

Accumulated deficit from prior operations

(91,024,442)

 

(91,024,442)

 

Deficit accumulated during the exploration stage

(33,796)

 

(25,019)

 

 

 

 

 

 

TOTAL STOCKHOLDERS' DEFICIT

(55,578)

 

(53,698)

 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT

$                         -

 

$                         -




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




VERILINK CORPORATION

(An Exploration Stage Company)


STATEMENTS OF EXPENSES

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

From Inception (February 13, 2009) to 12/31/11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Three Months Ended December 31,

 

 Six Months Ended, December 31,

 

 

 

 

 

2011

 

 

2010

 

 

2011

 

 

2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expenses

$

            1,995

 

$

2,181

 

$

6,897

 

$

6,456

 

$

25,233

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating loss

 

 

(1,995)

 

 

(2,181)

 

 

(6,897)

 

 

(6,456)

 

 

(25,233)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(940)

 

 

(1,742)

 

 

(1,880)

 

 

(2,549)

 

 

(8,563)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET LOSS

 

 $

(2,935)

 

$

(3,923)

 

$

(8,777)

 

$

(9,005)

 

$

(33,796)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share, basic and fully diluted

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

 

 

Weighted average number of shares outstanding

 

 

26,104,100

 

 

26,104,100

 

 

26,104,100

 

 

26,104,100

 

 

 



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







VERILINK CORPORATION

(An Exploration Stage Company)


STATEMENTS OF CASH FLOWS

(unaudited)



 

 

 

 

 Six Months Ended

 

From Inception (February 13, 2009) to December 31,2011

 

 

 

 

December 31, 2011

 

 

December 31, 2010

 

 

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 Net loss

 

$

(8,777)

 

$

(9,005)

 

$

(33,796)

 

 

 

 

 

 

 

 

 

 

 

 

 Adjustments to reconcile net loss with cash used in operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in operating assets and liabilities:

Accounts payable and accrued liabilities

 

 

1,880

 

 

2,549

 

 

7,597

 

 

 

 

 

 

 

 

 

 

 

 

 Net cash used in operating activities

 

 

(6,897)

 

 

(6,456)

 

 

(26,199)

 

 

 

 

 

 

 

 

 

 

 

 CASH FLOWS FROM FINANCING ACTIVITIES

 

 Advances from shareholder

 

 

-

 

 

6,456

 

 

19,302

 

 Shareholder-paid expenses

 

 

6,897

 

 

-

 

 

6,897

 

 

 

 

 

 

 

 

 

 

 

 

 Net cash provided by financing activities

 

 

6,897

 

 

6,456

 

 

26,199

 

 

 

 

 

 

 

 

 

 

 

 

 NET INCREASE / (DECREASE) IN CASH

 

 

-

 

 

-

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 Cash at beginning of period

 

 

-

 

 

-

 

 

-

 

 Cash at end of period

 

 $

-

 

$

-

 

$

-

 

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL DISCLOSURES

 

Cash paid for interest

 

$

-

 

$

-

 

$

-

 

Cash paid for income taxes

 

 

-

 

 

-

 

 

-




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




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VERILINK CORPORATION

(An Exploration Stage Company)


NOTES TO FINANCIAL STATEMENTS

(Unaudited)


Note 1 - Basis of Presentation


The accompanying unaudited interim financial statements of Verilink Corporation (the “Company”), have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto contained in Verilink's Annual Report filed with the SEC on Form 10-K. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which substantially duplicate the disclosure contained in the audited financial statements for the year ended June 30, 2011 as reported in the Form 10-K have been omitted.


Note 2 -

Going Concern


The accompanying financial statements have been prepared on a going concern basis which contemplates continuity of operations, realization of assets and liquidation of liabilities in the ordinary course of business and do not reflect adjustments that might result if we were not to continue as a going concern. Moreover, the company does not have any operations.  These factors raise substantial doubt about Verlink’s ability to continue as a going concern.


Note 3 – Related Party Transactions


As of December 31, 2011, the Company currently has related party advances of $47,015 due to IACE Investments Two Inc., an 80% shareholder, for operating expenses paid on the Company’s behalf. The related party advances bear an interest rate of 8%, are unsecured and are payable upon demand.  As of December 31, 2011, the Company has accrued $8,563 in interest due to IACE since emerging from bankruptcy.



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Item 2.  Management’s Discussion and Analysis


CAUTIONARY STATEMENT FOR PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF THE PRIVATE LITIGATION REFORM ACT OF 1995. Statements contained in this filing that are not based on historical fact, including without limitation statements containing the words "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect" and similar words, constitute "forward-looking statements". These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements. These factors include, among others, the following: general economic and business conditions in which Verilink Corporation ("we", "Verilink" or “Company”) operates; technology changes; the competition we face; changes in our business strategy or development plans; existing governmental regulations and changes in, or our failure to comply with, governmental regulations; liability and other claims asserted against us; and other factors referenced in our filings with the Securities and Exchange Commission.


Description of Business.


Verilink Corporation is an exploration stage company that is engaged in the acquisition, exploration and development of mineral properties.   As of the date of this filing, we have not generated any revenues after emerging from Bankruptcy.  Due to depressed market conditions associated with the cost of acquiring oil and gas properties, the Company’s management elected to become an exploration stage company to acquire certain options on oil and gas leases at far more favorable terms than in the State of Colorado. As reported by the Company on Form 8K filed on February 10 2009, the Company entered into an Agreement with Osage Land to acquire certain oil and gas leases in Phillips County, State of Colorado.  Management is currently negotiating with several entities to determine if a joint venture or similar agreement is feasible to develop the leases. Verilink intends to conduct geophysical operations on approximately three (3) square miles of the leases covered under the Agreement.  This is commonly referred to as seismic testing and will be used to determine the location of any Niobrara gas structures.  If gas structures are determined to be present, Management for Verilink intends to evaluate their suitability with various professionals to determine if drilling is warranted.


Verilink Corporation was incorporated on October 26, 1986 in the state of Delaware.  We and our former subsidiary, Larscom Incorporated, a Delaware corporation, filed  Voluntary Petitions for Relief under Chapter 11 of Title 11 of the United States Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Northern District of Alabama (the “Court”), Case numbers 06-50866 and 06-80567 (the “Case” or “Cases”)..The Bankruptcy Court issued an Order Confirming the Second Amended Joint Plan of Reorganization on December 6, 2006.


Pursuant to the Plan, on June 27, 2008, the Company implemented a 1/2581 reverse stock split; issued 25,000,000 restricted shares of common stock to IACE Investments Two, Inc.; issued 1,000,000 shares of common stock and 5,000,000 warrants to Venture Funds I, Inc.; issued 75,000 shares of common stock to the Bankruptcy Trustee; issued 100 shares of common stock to each class 7 unsecured creditor; and replaced all former directors and officer with James Ditanna.


On June 27, 2008, the Company’s symbol changed from “VERLQ” to “VERL” to reflect the emergence from Bankruptcy.


Verilink, as of the date of this report, is an exploration stage company that has not generated any revenue since emerging from Bankruptcy. Management recognizes the possibility that, if additional funds are not raised, Verilink’s assets could have to be liquidated or otherwise reduced.  


In January 2009, the Company began to negotiate with several oil and natural gas companies to acquire mineral interest to further explore and develop. On February 10, 2009, as reported on form 8K on February 10, 2009, Verilink entered into an Option Agreement (the “Agreement”) with Osage Land Company (“Osage Land”) to acquire 90% of the oil and gas leases covering approximately 3,912 acres of oil and gas leases located primarily in Phillips County, State of Colorado. The leases being acquired reserves a 1/8th  royalty to the mineral interest holders and 6.25% overriding royalty interest to Osage Land.  Verilink intends to conduct geophysical operations on at least two (2) square miles of the leases covered under the Agreement with Osage Land. As of the date of this filing, the Company has been unable to secure funding necessary to conduct any operations related to seismic testing. The Company is currently negotiating with energy exploration companies to determine if a joint venture or agreement is feasible to further develop the leases located in Colorado.  


The primary term of the leases is for a five (5) year period from 2007 to 2012.  Osage Land is to receive $80 per net mineral acre which was originally due on or before the 10th day of July 2009 but has now been extended to March 31, 2011, and will also receive a 10% carried working interest on the first well in each prospect or particular tract of land.  Osage Land will also receive the option to participate with a 10% working interest on each additional well within a prospect.  The option to exchange common shares for the payment obligation called for under the Agreement remains open and subject to further negotiation with Osage



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Land.  The Agreement contains customary representations, warnings, covenants and default conditions.  Subject to certain conditions and exceptions, the Agreement may be terminated prior to completion in the event that (a) the parties to the Agreement mutually consent to the termination, (b) a closing under the Agreement has not occurred prior to the close of business on July 10, 2009 as extended to March 31, 2011, (c) there is a failure to perform certain covenants, (d) there is a material breach, or (e) there exists certain title and/or environmental defects, as applicable.


PLAN OF OPERATIONS


During the six months ended December 31, 2011, the Company is continuing negotiations with a private natural resources exploration company regarding a potential joint venture or acquisition.


IACE Investments Two Inc, an 80% shareholder, paid $6,897 of the Company’s compliance costs during the six months ended December 31, 2011.


LIQUIDITY AND CAPITAL RESOURCES


Verilink had no cash or other current assets at December 31, 2011.


Item 3.  Quantitative and Qualitative Disclosures About Market Risk

 

Not applicable.


Item 4.  Controls and Procedures.


Evaluation of Disclosure Controls and Procedures


As required by Rule 13a-15 under the Exchange Act, we have carried out an evaluation of the effectiveness of the design and operation of our company’s disclosure controls and procedures as of the end of the period covered by this quarterly report, being December 31, 2011.   This evaluation was carried out under the supervision and with the participation of our company’s sole officer and director.


As part of such evaluation, management considered the matters discussed below relating to internal control over financial reporting.  Based on this evaluation, our Company's Sole Director/President and Principal Accounting Officer have concluded that our Company's disclosure controls and procedures were not effective as of December 31, 2011, due to lack of employees to segregate duties related to preparing the financial reports.  Management is attempting to correct this weakness by merging with a suitable candidate.  Management with the assistance of its Securities Counsel will closely monitor all future filings to ensure that the company filings are made on a timely manner.


Based upon that evaluation, our president and sole officer concluded that our company’s disclosure controls and procedures are not effective.  


Changes in Internal Control Over Financial Reporting


There were no changes in our internal control over financial reporting during the period ended December 31, 2011 that have materially affected or are reasonably likely to materially affect, our internal control over financial reporting.




6




PART II. OTHER INFORMATION



Item 1.  Legal Proceedings


Verilink is not currently a party to any legal proceeding.



Item 1A.  Risk Factors


There have been no material changes in our risk factors since June 30, 2011. See risk factors at June 30, 2011, within our Form 10-K.



Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds


None



Item 3.  Defaults Upon Senior Securities


None



Item 4.  Submission of Matters to a Vote of Securities Holders


None



Item 5.  Other Information


None



Item 6.  Exhibits


Exhibit Number

Description of Exhibit

31

Certification of Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) under the Securities Exchange Act of 1934


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




* * * * *




7






SIGNATURES


Pursuant to the requirements 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.

VERILINK CORPORATION



Date: July 24, 2012

By:

/s/ James Ditanna

James Ditanna

Sole Director/President

(Principal Financial and Accounting Officer)




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