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EXCEL - IDEA: XBRL DOCUMENT - INFRASTRUCTURE DEVELOPMENTS CORP. | Financial_Report.xls |
EX-31 - EXHIBIT - INFRASTRUCTURE DEVELOPMENTS CORP. | exhibit31.htm |
EX-32 - EXHIBIT - INFRASTRUCTURE DEVELOPMENTS CORP. | exhibit32.htm |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
þ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the
quarterly period ended September 30, 2012.
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: 000-52936
INFRASTRUCTURE DEVELOPMENTS CORP.
(Exact name of registrant as specified in its charter)
Nevada
27-1034540
(State or other jurisdiction of
(I.R.S. Employer
incorporation or organization)
Identification No.)
299 S. Main Street, 13th Floor, Salt Lake City, Utah 84111
(Address of principal executive offices) (Zip Code)
(801) 488-2006
(Registrants telephone number, including area code)
n/a
(Former name, former address and former fiscal year, if changes since last report)
Indicate by check mark whether the registrant: (1) filed all reports required to be filed by Section 13 or
15(d) of the Exchange Act during the past 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 o.
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 as defined by Rule 12b-2 of the Exchange Act:
Large accelerated filer o Accelerated filer o Non-accelerated filer o 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 o No þ
Indicate the number of shares outstanding of each of the issuers classes of common stock, as of the latest
practicable date. The number of shares outstanding of the issuers common stock, $0.001 par value (the
only class of voting stock), at November 19, 2012, was 394,198,899.
1
TABLE OF CONTENTS
PART 1- FINANCIAL INFORMATION
Item1.
3
Consolidated Balance Sheets as of September 30, 2012 (Unaudited) and December
4
31, 2011 (audited)
Unaudited Consolidated Statements of Operations for the three and nine month
5
periods ended September 30, 2012 and September 30, 2011
Unaudited Consolidated Statements of Cash Flows for the nine month periods
6
ended September 30, 2012 and September 30, 2011
7
Item 2.
Managements Discussion and Analysis of Financial Condition and Results of
14
Operations
Item 3.
Quantitative and Qualitative Disclosures about Market Risk
19
Item 4.
Controls and Procedures
19
PART II-OTHER INFORMATION
Item 1.
Legal Proceedings
20
Item 1A.
Risk Factors
20
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
23
Item 3.
Defaults Upon Senior Securities
23
Item 4.
Mine Safety Disclosures
23
Item 5.
OTHER Information
23
Item 6.
24
25
Index to Exhibits
26
2
PART I FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
As used herein, the terms Company, we, our, and us refer to Infrastructure Developments Corp.,
a Nevada corporation, and our subsidiaries and predecessors, unless otherwise indicated. In the opinion of
management, the accompanying unaudited financial statements included in this Form 10-Q reflect all
adjustments (consisting only of normal recurring accruals) necessary for a fair presentation of the results
of operations for the periods presented. The results of operations for the periods presented are not
necessarily indicative of the results to be expected for the full year.
3
Infrastructure Developments Corp.
Condensed Consolidated Balance Sheets
As of
As of
September 30, 2012
December 31, 2011*
Assets
(Unaudited)
Current assets:
Cash
$
8,109
$
42,690
Prepaid expenses
7,406
32,406
Other current assets
9,612
14,709
Total current assets
25,128
89,805
Investment in unconsolidated entity
19,301
-
Total assets
44,429
89,805
Liabilities and Stockholders' Equity
Current liabilities:
Notes Payable
293,426
328,226
Accounts payable
-
27,856
Accrued expenses
46,690
40,079
Total current liabilities
340,117
396,161
Long-term debt
-
-
Total liabilities
340,117
396,161
Commitments and contingencies
-
-
Shareholders' Equity
Common stock:
Authorized: 500,000,000 common shares, $0.001
Issued: 394,198,899
394,199
300,263
Additional paid-in capital
8,517,189
8,473,865
Retained earnings
(9,207,076)
(9,080,484)
Equity Funds
(295,688)
(306,357)
$
44,429
$
89,805
* The Balance Sheet as of December 31, 2011 has been derived from the audited financial statements of that date.
The accompanying notes are an integral part of these consolidated financial statements.
4
Infrastructure Developments Corp.
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Ended
Nine Months Ended
September 30
September 30
September 30
September 30
2012
2011
2012
2011
Revenues:
Contract Income
$
-
$
-
$
-
$
300,492
Project Management Contracts
-
279,728
56,300
270,951
Total revenues
-
279,728
56,300
571,443
Direct costs - commissions and services
-
256,525
61,186
636,894
Gross profit
-
23,203
(4,886)
(65,451)
Operating expenses:
General, selling and administrative expenses
16,169
34,809
74,310
642,439
Salaries and wages
6,000
66,698
31,100
200,486
Bad debt Expenses (Power Track)
-
-
-
524,685
Total operating expenses
22,169
101,507
105,410
1,367,610
Income (Loss) from operations
(22,169)
(78,305)
(110,296)
(1,433,062)
Other income (expense):
Interest expense/(Expense)
(400)
(39,136)
(17,295)
(55,713)
Loss in Inventory Write Down
-
-
-
(1,981,604)
Loss in Sale of assets
-
(1,091,071)
Write off of Fixed Assets
-
-
-
(1,244,703)
Other income (expense)
-
-
1,000
338,713
Total other income (expense)
(400)
(39,136)
(16,295)
(4,034,378)
(Loss) Income before Income Taxes
(22,569)
(117,441)
(126,591)
(5,467,440)
Provision for income taxes
-
-
-
-
NET INCOME/(LOSS)
$
(22,569) $
(117,441)
$ (126,591) $ (5,467,440)
Basic Income (Loss) Per share
(0.00)
(0.00)
(0.00)
(0.05)
Fully Diluted Income (Loss)Per share
(0.00)
(0.00)
(0.00)
(0.05)
Basic Weighted Avg. No. of Shares O/S
395,198,899
122,037,129
358,988,069
120,762,376
Fully Diluted Weighted Avg. No. of Shares O/S
395,198,899
122,037,129
358,988,069
120,762,376
The accompanying notes are an integral part of these consolidated financial statements.
5
Infrastructure Developments Corp.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Nine Month Ending
September 30,
September 30,
2012
2011
Cash flows from operating activities:
Net income ( loss)
$
(126,591)
$
(5,467,439)
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization
-
38,169
(Gain)Loss on disposition of assets
-
2,335,774
Changes in operating Assets and Liabilities:
Decrease (increase) in:
Accounts receivable
-
358,541
Inventories
-
1,981,604
Prepaid expenses
25,000
111,648
Other current assets
5,097
191,840
Increase (decrease) in:
Notes Payable
(34,800)
(2,122,926)
Accounts payable
(27,856)
(402,320)
Accrued liabilities
6,611
16,424
Net cash provided by (used in) operating activities
(152,539)
(2,958,683)
Cash flows from investing activities:
Proceeds from sale of Fixed Assets
-
412,448
Investments in Unconsolidated Entity
(19,301)
-
Net cash provided by (used in) investing activities
(19,301)
412,448
Cash flows from financing activities:
Common stock issued Against Debt and Cash
137,260
159,420
Increase (Decrease) in long Term Debt
-
2,409,003
Net cash provided by (used in) financing activities
137,260
2,568,423
Net increase (decrease) in cash and cash equivalents
(34,581)
22,188
Cash and cash equivalents at beginning of year
42,690
72,868
Cash and cash equivalents at end of year
$
8,109
$
95,057
The accompanying notes are an integral part of these consolidated financial statement
6
INFRASTRUCTURE DEVELOPMENTS CORP.
Condensed Notes to the Financial Statements (Unaudited)
September 30, 2012
. NOTE 1 - ORGANIZATION AND HISTORY
Infrastructure Developments Corp. (the Company), formerly 1 st Home Buy and Sell Ltd., was
incorporated under the laws of the state of Nevada on August 10, 2006. The Company changed
its name to Infrastructure Developments Corp. on March 1, 2010.
On April 14, 2010, the Company and Interspec International, Inc. (Interspec, formerly Intelspec
International, Inc.), a Nevada corporation, engaged in engineering, construction, and project
management executed a stock exchange agreement, whereby the Company agreed to acquire
100% of the issued and outstanding shares of Interspec in exchange for 14,000,000 shares of the
Companys common stock. Because the owners of Interspec became the principal shareholders of
the Company through the transaction, Interspec is considered the acquirer for accounting
purposes and this transaction is accounted for as a reverse acquisition or recapitalization of
Interspec.
The Company is a global engineering and project management business that provides
services through a network of branch offices and subsidiaries located in markets where the
Company either has active projects, is bidding on projects, or is investigating project
opportunities.
NOTE 2 GOING CONCERN
The accompanying consolidated financial statements have been prepared on a going concern
basis, which contemplates the realization of assets and liabilities in the normal course of business.
Accordingly, they do not include any adjustments relating to the realization of the carrying value
of assets or the amounts and classification of liabilities that might be necessary should the
Company be unable to continue as a going concern. The Company has accumulated losses and
working capital and cash flows from operations are negative which raises doubt as to the validity
of the going concern assumptions. These financials do not include any adjustments to the carrying
value of the assets and liabilities, the reported revenues and expenses and balance sheet
classifications used that would be necessary if the going concern assumption were not
appropriate; such adjustments could be material.
NOTE 3 SIGNIFICANT ACCOUNTING POLICIES
a.
Principles of Consolidation
The consolidated financial statements herein include the operations of Intelspec and the
consolidated operations of the Company and its wholly-owned subsidiaries. All intercompany
transactions and balances have been eliminated in consolidation.
b.
Cash and Cash Equivalents
The Company considers all highly liquid investments with original maturities to the Company of
three months or less to be cash equivalents.
7
INFRASTRUCTURE DEVELOPMENTS CORP.
Condensed Notes to the Financial Statements (Unaudited)
September 30, 2012
NOTE 3 SIGNIFICANT ACCOUNTING POLICIES (Continued)
c.
Accounts Receivable
Accounts receivable are carried at original invoice amount less an estimate made for doubtful
receivables based on a review of all outstanding amounts on a monthly basis. Specific reserves
are estimated by management based on certain assumptions and variables, including the
customers financial condition, age of the customers receivables, and changes in payment
histories. Trade receivables are written off when deemed uncollectible. Recoveries of trade
receivables previously written off are recorded when received.
A trade receivable is considered to be past due if any portion of the receivable balance has not
been received by the contractual pay date. Interest is not charged on trade receivables that are
past due.
d.
Property and Equipment
Property and equipment are recorded at cost, less accumulated depreciation. Depreciation and
amortization on capital leases and property and equipment are determined using the straight line
method over the estimated useful lives (usually ten years) of the assets or terms of the leases.
Expenditures for maintenance and repairs are expensed when incurred and betterments are
capitalized. Gains and losses on the sale of property and equipment are reflected in operations.
e.
Revenue Recognition
Revenues from Sales and Services consist of revenues earned in the Companys activity as
Project & Construction Equipment Management & Operations, and misc. services provided. All
Sales/Service revenue is recognized when the sale/service is complete and the Company has
determined that the sale/service proceeds are collectible.
f.
Stock Based Compensation
The Company adopted SFAS No. 123-R effective January 1, 2006 using the modified prospective
method. Under this transition method, stock compensation expense includes compensation
expense for all stock-based compensation awards granted on or after January 1,2006, based on the
grant-date fair value estimated in accordance with the provisions of SFAS No. 123-R.
The Company issued no compensatory options to its employees during the period ended
September 30, 2012.
g.
Foreign Exchange
The Companys reporting currency is the United States dollar. The Companys functional
currency is also the U.S. Dollar. (USD) Transactions denominated in foreign currencies are
translated into USD and recorded at the foreign exchange rate prevailing at the date of the
transaction. Monetary assets and liabilities denominated in foreign currencies, which are stated at
historical cost, are translated into USD at the foreign exchange rates prevailing at the balance
sheet date. Realized and unrealized foreign exchange differences arising on translation are
recognized in the income statement.
8
INFRASTRUCTURE DEVELOPMENTS CORP.
Condensed Notes to the Financial Statements (Unaudited)
September 30, 2012
NOTE 3 SIGNIFICANT ACCOUNTING POLICIES (Continued)
h.
Advertising
The Company expenses the cost of advertising as incurred. For the period ended September 30,
2012, the Company had no advertising expenses.
i.
Income Taxes
The Company accounts for income taxes using the asset and liability method. Under the asset and
liability method, deferred tax assets and liabilities are recognized for future tax consequences
attributable to differences between the financial statement carrying amounts of existing assets and
liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using
enacted tax rates expected to apply to taxable income in the years in which those temporary
differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities
of a change in tax rates is recognized in income in the period that includes the enactment date.
j.
Income per Common Share
The computation of basic earnings per common share is based on the weighted average number
of shares outstanding during each year. The computation of diluted earnings per common share is
based on the weighted average number of shares outstanding during the year, plus the common
stock equivalents that would arise from the exercise of stock options and warrants outstanding,
using the treasury stock method and the average market price per share during the year.
k.
Impairment of Long-Lived Assets
The Company reviews long-lived assets such as property, equipment, investments and definite-
lived intangibles for impairment annually and whenever events or changes in circumstances
indicate that the carrying value of an asset may not be recoverable. As required by Statement of
Financial Accounting Standards No. 144, the Company uses an estimate of the future
undiscounted net cash flows of the related asset or group of assets over their remaining economic
useful lives in measuring whether the assets are recoverable. If the carrying amount of an asset
exceeds its estimated future cash flows, an impairment charge is recognized for the amount by
which the carrying amount exceeds the estimated fair value of the asset. Impairment of long-lived
assets is assessed at the lowest levels for which there are identifiable cash flows that are
independent of other groups of assets.
l.
Impairment of Long-Lived Assets
Assets to be disposed of are reported at the lower of the carrying amount or fair value, less the
estimated costs to sell. In addition, depreciation of the asset ceases. During the period ended
September 30, 2012, $0 was written off from the Companys long-lived assets.
9
INFRASTRUCTURE DEVELOPMENTS CORP.
Condensed Notes to the Financial Statements (Unaudited)
September 30, 2012
NOTE 3 SIGNIFICANT ACCOUNTING POLICIES (Continued)
m.
Concentration of Credit Risk and Significant Customers
Financial instruments, which potentially subject the Company to concentration of credit risk,
consist primarily of receivables and notes receivable. In the normal course of business, the
Company provides credit terms to its customers. Accordingly, the Company performs ongoing
credit evaluations of its customers and maintains allowances for possible losses which, when
realized, have been within the range of management's expectations.
The Company maintains its cash in bank deposit accounts, which, at times, may exceed federally
insured limits. The Company has not experienced any losses in such accounts and believes it is
not exposed to any significant credit risk on cash and cash equivalents.
NOTE 4 ESTIMATES
The preparation of financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and
assumptions that affect certain reported amounts. Accordingly, actual results could differ from
those estimates.
NOTE 5 SHORT-TERM NOTES PAYABLE AND LINES OF CREDIT
On May 9, 2012, the Company issued a promissory note in the amounts of $20,000 to Asher
Enterprises, Inc., an unrelated party, at an interest rate of 8%, with an option to convert the
outstanding balance into shares of the Companys common stock with a discount off the market
price at the time of conversion. At September 30, 2012, the full amount remains outstanding
under the notes.
The Company has from time to time short-term borrowings from various unrelated and related
entities. These advances are non-interest bearing, unsecured and due upon demand. Because of
the short-term nature of the notes the Company has not imputed an interest rate.
NOTE 6 REVERSE ACQUISITION
On April 14, 2010, the Company, Interspec and those shareholders of Interspec holding a majority of
its outstanding shares closed a transaction pursuant to that certain Share Exchange Agreement,
whereby the Company acquired up to 100% of the outstanding shares of Interspecs common
stock from the shareholders of Interspec in exchange for an aggregate of 14,000,000 shares of its
common stock. As a result of closing the transaction the former shareholders of Interspec held at
closing approximately 70% of the Companys issued and outstanding common stock.
NOTE 7 LITIGATION
The Company may become or is subject to investigations, claims or lawsuits ensuing out of the
conduct of its business. The Company is currently not aware of any such items, which it believes
could have a material effect on its financial position.
10
INFRASTRUCTURE DEVELOPMENTS CORP.
Condensed Notes to the Financial Statements (Unaudited)
September 30, 2012
NOTE 8 RELATED PARTY TRANSACTIONS
The Company had no payable to related parties as of September 30, 2012
NOTE 9 FAIR VALUE OF FINANCIAL INSTRUMENTS
The Companys financial instruments consist of cash, investments, receivables, payables, and
notes payable. The carrying amount of cash, investments, receivables, and payables
approximates fair value because of the short-term nature of these items. The carrying amount of
Long-term notes payable approximates fair value as the individual borrowings bear interest at
market interest rates.
NOTE 10 RECENT ACCOUNTING PRONOUNCEMENTS
We have examined all recent accounting pronouncements and believe that none of them will have
a material impact on the financial statements of Infrastructure Developments Corp.
NOTE 11 STOCKHOLDERS' EQUITY
a.
Authorized
The Company is authorized to issue 500,000,000 shares of $0.001 par value common stock and
10,000,000 shares of preferred stock, par value $0.001 per share. All common stock shares have
equal voting rights, are non-assessable and have one vote per share. Voting rights are not
cumulative and, therefore, the holders of more than 50% of the common stock could, if they
choose to do so, elect all of the directors of the Company.
b.
Outstanding
On June 11, 2010, the Company effected a 6-to-1 forward split of its 20,000,000 issued
and outstanding common shares, resulting in 120,000,000 common shares on a post split
basis. Shares and per share amounts have been retroactively restated to reflect the 6-for-1
forward stock split.
On June 17, 2011, the Company issued 125,000 shares of common stock to an unrelated
party for consulting services at $0.001 per share.
As of June 30, 2011, the Company had 120,125,000 shares of common stock issued and
outstanding.
On August 11, 2011, the Company issued 374,065 shares of common stock to an
unrelated party against 8% Convertible Note.
On August 17, 2011, the Company issued 397,727 shares of common stock to an
unrelated party against 8% Convertible Note.
11
INFRASTRUCTURE DEVELOPMENTS CORP.
Condensed Notes to the Financial Statements (Unaudited)
September 30, 2012
NOTE 11 STOCKHOLDERS' EQUITY (Continued)
b.
Outstanding (Continued)
On August 22, 2011, the Company issued 526,316 shares of common stock to an
unrelated party against 8% Convertible Note.
On August 31, 2011, the Company issued 821,918 shares of common stock to an
unrelated party against 8% Convertible Note.
On September 06, 2011, the Company issued 165,000 shares of common stock against
Cash Subscription.
On September 26, 2011, the Company issued 1,331,334 shares of common stock against
Cash Subscription.
On September 29, 2011, the Company issued 665,000 shares of common stock against
Cash Subscription.
On October 11, 2011, the Company issued 1,351,351 shares of common stock to an
unrelated party against 8% Convertible Note.
On October 13, 2011, the Company issued 3,666,000 shares of common stock against
Debt Settlement.
On October 19, 2011, the Company issued 831,000 shares of common stock against Cash
Subscription.
On November 02, 2011, the Company issued 1,527,778 shares of common stock to an
unrelated party against 8% Convertible Note.
On November 10, 2011, the Company issued 331,667 shares of common stock against
Cash Subscription.
On November 21, 2011, the Company issued 165,699,842 shares of common stock to a
related party against 6% Convertible Promissory Note.
On December 08, 2011, the Company issued 2,448,980 shares of common stock to an
unrelated party against 8% Convertible Note.
As of December 31, 2011, the Company had 300,262,978 shares of common stock issued
and outstanding
On February 2, 2012, the Company issued 5,882,353 shares of common stock to an
unrelated party against 8% Convertible Note.
On March 15, 2012, the Company issued 5,050,505 shares of common stock to an
unrelated party against 8% Convertible Note.
On March 20, 2012, the Company issued 4,040,404 shares of common stock to an
unrelated party against 8% Convertible Note.
On March 26, 2012, the Company issued 6,071,429 shares of common stock to an
unrelated party against 8% Convertible Note.
On April 11, 2012, the Company issued 3,017,334 shares of common stock to an
unrelated party for services.
On April 17, 2012, the Company issued 7,142,857 shares of common stock to an
unrelated party against 8% Convertible Note.
On April 30, 2012, the Company issued 6,428,571 shares of common stock to an
unrelated party against 8% Convertible Note.
On May 2, 2012, the Company issued 3,250,000 shares of common stock to an unrelated
party against 8% Convertible Note.
On May 3, 2012, the Company issued 8,333,333 shares of common stock to an unrelated
party against 8% Convertible Note.
12
INFRASTRUCTURE DEVELOPMENTS CORP.
Condensed Notes to the Financial Statements (Unaudited)
September 30, 2012
NOTE 11 STOCKHOLDERS' EQUITY (Continued)
b.
Outstanding (Continued)
On May 16, 2012, the Company issued 11,111,111 shares of common stock to an
unrelated party against 8% Convertible Note.
On May 22, 2012, the Company issued 11,764,706 shares of common stock to an
unrelated party against 8% Convertible Note.
On May 25, 2012, the Company issued 16,129,032 shares of common stock to an
unrelated party against 8% Convertible Note.
On June 13, 2012, the Company issued 5,714,286 shares of common stock to an
unrelated party against 8% Convertible Note.
As of September 30, 2012, the Company had 394,198,899 shares of common stock issued
and outstanding
NOTE 12 CONVERSION OF NOTES TO EQUITY
On November 21, 2011, the Company's board of directors authorized the issuance of
165,699,842 shares of common stock to WWA Group, Inc. (WWA Group), valued at
$2,477,544 or $0.014952 per share on conversion of a convertible promissory note (Note)
issued to WWA Group on May 17, 2011.
NOTE 13 CHANGE IN FISCAL YEAR END
On February 6, 2012, the Company changed its fiscal year end from June 30 to December 31.
The change became effective at the end of the quarter ended December 31, 2011.
NOTE 14 SUBSEQUENT EVENTS
There are no significant subsequent events following September 30, 2012.
13
ITEM 2.
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
This Managements Discussion and Analysis of Financial Condition and Results of Operations and other
parts of this quarterly report contain forward-looking statements that involve risks and uncertainties.
Forward-looking statements can be identified by words such as anticipates, expects, believes,
plans, predicts, and similar terms. Forward-looking statements are not guarantees of future
performance and our actual results may differ significantly from the results discussed in the forward-
looking statements. Factors that might cause such differences include but are not limited to those
discussed in the subsection entitled Forward-Looking Statements and Factors That May Affect Future
Results and Financial Condition below. The following discussion should be read in conjunction with our
financial statements and notes thereto included in this report. All information presented herein is based on
our quarterly period ended September 30, 2012. Our fiscal year end is December 31.
Beginning in 2008 we targeted a wide variety of private and government funded jobs in the Middle East,
particularly in the U.A.E., but the substantial economic slowdown in these markets shifted our focus to
U.S. government contracts and subcontracts in Southeast Asia. However, because of the narrow profit
margins on our U.S. Navy contracts in Southeast Asia, as well as our competition in the area, we have
suspended bidding on such projects at this time. We will bid on specialty contracts as they arise and we
will continue to market prefabricated housing as opportunities arise.
Our prefabricated housing business is focused around the marketing and sale of Wing Houses in North
America, the Middle East and parts of South-East Asia as a distributor pursuant to an agreement with the
Renhe Group. The units are marketed as mobile offices or living space that fold into a standard container
with all ISO fittings in place for easy transport.
Wing Houses can be placed anywhere with a swing lift and opened into 80 square meters of a living or
working environment within four to five hours for a wide range of applications, including:
living space
office space
on site showrooms
restaurants
worker accommodation
forward operations base
Although the Company is yet to conclude a sale of a Wing House, it and its affiliates have generated over
one hundred leads since April and have quoted approximately ten such leads with pricing details. We
expect to issue formal invoices and realize sales of the Wing Houses in the near future.
The Company has more recently begun focusing on the Company's alternative engine fuels operations in
Thailand and the United States. The Company's first big step into the alternative fuels business is with
operations at its facility in Chonburi, Thailand with the diesel to CNG conversion of a huge
250Kva/200Kw Cummins diesel generator at the end of 2011. We expect to expand CNG operations with
additional generator acquisitions, conversions and sales in Thailand in the coming months.
14
On July 1, 2011, the Company entered into a memorandum of understanding with Cleanfield Energy, Inc.
("Cleanfield"), as amended on July 7, 2011. The Company committed to providing Cleanfield with
interim funding to cover expenses for the furtherance of the business plan. At the end of 2011 we opened
a conversion location with Cleanfield in Tempe, Arizona. When this facility becomes fully established,
the Company intends to establish a regional network of conversion facilities and fueling points. This
expansion will use a number of proven devices, including fully owned branches, franchises, and
innovative joint ventures. We acquired 75% of Cleanfield on June 4, 2012 pursuant to a debt settlement
agreement.
For the nine month period ended September 30, 2012:
(i)
The Company received its final payment for the U.S. Navys Lido Phase II Project in
Indonesia and made final payments to our subcontractors.
(ii)
On February 1, 2012, the Company entered into a Share Exchange Agreement (dated January
11, 2012) to aquire InterMedia Development Corporation ("InterMedia"), a media production
company and defense contractor based in Fairfax, Virginia. In July 2012, the Company
determined that it would no pursue the closing of the acquisition of InterMedia. Based upon
the review of due diligence the Company determined that it would not be possible to raise the
funds required to expand InterMedia as agreed. Accordingly, both parties determined it was
in their best interests not to proceed with the acquisition.
(iii)
On February 6, 2012, the Company changed its fiscal year end from June 30 to December 31.
The report covering the transition period was filed on Form 10-K for the six-month period
between June 30, 2011 and December 31, 2012.
(iv)
On July 25, 2012, the Company pre-paid in full an outstanding $19,000 convertible note.
(v)
On August 16, 2012, the Company's board of directors accepted the resignation of the
Company's CEO and member of the board of directors, Thomas R. Morgan, and on August
15, 2012, accepted the resignation of the Company's CFO and Principal Accounting Officer,
Digamber Naswa. The Company's board of directors appointed Eric Montandon as CEO,
CFO and Principal Accounting Officer.
(vi)
Since July 2012, the Company has been preparing for an expected company acquisition,
which has been delayed due to a depository chill placed upon the Company's common stock
by The Depository Trust Company (DTC) since August 22, 2012. The Company's counsel
has been corresponding with the DTC to remove the depositor chill.
Net Losses
Net loss for the three month period ended September 30, 2012 was $22,569 as compared to $117,440 for
the three month period ended September 30, 2011, a decrease of 81%. Net loss for the nine month period
ended September 30, 2012 was $126,591 as compared to $5,467,439 for the nine month period ended
September 30, 2011, a decrease of 98%. The decrease in net loss over the comparable periods is due to
decreases in operating expenses and the absence of losses associated with Power Track Projects FZEs
("Power Track") business in the current three and nine month periods. Net loss in the previous and nine
month period was primarily due to costs associated with Power Tracks business. The Company is
confident that it will transition to net income in the next twelve months based on the anticipated
development of CNG related activities in the U.S. and Thailand.
15
Net Revenues
Net revenues for the three month period ended September 30, 2012 were $0 as compared to $279,728 for
the three month period ended September 30, 2011. Net revenues for the nine month period ended
September 30, 2012 were $56,300 as compared to $571,443 for the nine month period ended September
30, 2011, a decrease of 90%. The decrease in net revenues over the comparable periods can be attributed
to a decrease in management contract revenue related to Lido Phase II. We expect net revenues to
increase over the next twelve months as a result of our development of CNG related activities in the U.S.
and Thailand.
Gross Profit/ Loss
Gross profit for the three month period ended September 30, 2012 was $0 as compared to $23,203 for the
three month period ended September 30, 2011. Gross loss for the nine month period ended September 30,
2012 was $4,886 as compared to $65,451 for the nine month period ended September 30, 2011, a
decrease of 93%. The decrease in gross loss in the current periods is due to costs from our Lido Phase II
project which exceeded revenues. We expect to transition to gross profits over the next twelve months in
step with our expected realization of CNG related revenues.
Operating Expenses
Operating expenses for the three month period ended September 30, 2012 decreased to $22,169 from
$101,507 for the three month period ended September 30, 2011, a decrease of 78%. Operating expenses
for the nine month period ended September 30, 2012 decreased to $105,410 from $1,367,610 for the nine
month period ended September 30, 2011, a decrease of 92%. Operating expenses are from general, selling
and administrative expenses, salaries and wages, and depreciation and amortization expense. Over the
three and nine month periods general, selling and administrative expenses decreased to $16,169 from
$34,809 and to $74,310 from $642,439, respectively. Over the three and nine month periods salaries and
wages decreased to $6,000 from $66,698 and to $31,100 from $200,486, respectively. Over the nine
month periods our Power Track bad debt expenses decreased to $0 from $524,685. We expect operating
expenses to increase in the near term as we develop CNG related operations.
Other Expenses
Other expenses for the three month period ended September 30, 2012 were $400 compared to $39,136 for
the three month period ended September 30, 2011. Other expenses for the nine month period ended
September 30, 2012 were $16,295 compared to $4,034,378 for the nine month period ended September
30, 2011. The decrease was primarily due to a losses in the previous periods from Power Tracks
inventory write down and the write down of Power Tracks fixed assets (crushing and mobile
earthmoving equipment, a mobile labor camp, trucks, generators, and compressors for use in Power
Tracks mining operations).
Liquidity and Capital Resources
Our financial statements have been prepared assuming that we will continue as a going concern and,
accordingly, do not include adjustments relating to the recoverability and realization of assets and
classification of liabilities that might be necessary should we be unable to continue operations.
16
As of September 30, 2012, we had a working capital deficit of $314,989. Our current assets were $25,128
consisting of cash of $8,109, prepaid expenses of $7,406 and other current assets of $9,612. Our total
assets were $44,429 consisting of current assets and investments of $19,301. Our current and total
liabilities were $340,117 consisting of notes payable of $293,426 and accrued expenses of $46,690.
Stockholders deficit was $295,688 as of September 30, 2012.
Cash flows used in operating activities for the nine month period ending September 30, 2012 were
$152,539 compared to $2,958,683 for the nine month period ending September 30, 2011. Cash flow used
in operating activities in the current period is primarily due to net losses, and changes in operating assets
and liabilities of both a decrease in notes payable and accounts payable. We expect to transition to cash
flow provided by operations over the next twelve months once we transition from net losses to net
income.
Cash flows used in investing activities for the nine month period ending September 30, 2012 were
$19,301 compared to cash flows provided by investing activities of $412,446 for the nine month period
ending September 30, 2012. Cash flow used in investing activities in the current period is due to loans to
Cleanfield. We expect to use cash flow in investing activities over the next twelve months as we develop
CNG operations in the U.S. and Thailand.
Cash flows provided by financing activities for the nine month period ending September 30, 2012 were
$137,260 as compared to $2,568,423 for the nine month period ending September 30, 2011. Cash flows
provided by financing activities in the current period are attributable to common stock issued against debt
and cash. In the previous period cash flow provided by financing activities was due to long term debt
owed to WWA Group. We expect to realize cash flows provided by financing activities over the next
twelve months in connection with a potential company acquisition.
Our current assets are insufficient to meet the Companys business objectives over the next twelve
months. We need a minimum of $100,000 in debt or equity financing to maintain operations and to fulfill
our business plan. Although, we have no commitments or arrangements for this level of financing, our
shareholders remain the most likely source of loans or equity placements to ensure our continued
operation though such support can in no way be assured. Our inability to obtain additional financing will
have a material adverse affect on our business operations.
We have no lines of credit or other bank financing arrangements in place.
We have no commitments for future capital expenditures that were material at the end of the period.
We have no defined benefit plan or contractual commitment with any of our officers or directors.
We have no current plans for the purchase or sale of any plant or equipment.
We have no current plans to make any changes in the number of employees.
We do not expect to pay cash dividends in the foreseeable future.
Future Company Financings
We will continue to rely on debt or equity sales to continue to fund our business operations even though
the issuance of additional shares will result in dilution to our existing stockholders.
17
Company Reporting Obligations
We do not anticipate any contingency upon which it would voluntarily cease filing reports with the
Securities and Exchange Commission as it is in the interest of the Company to report its affairs quarterly,
annually and currently to provide accessible public information to interested parties.
Off-Balance Sheet Arrangements
We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or
future effect on our financial condition, changes in financial condition, revenues or expenses, results of
operations, liquidity, capital expenditures or capital resources that are material to investors.
Interest Rates
Interest rates are generally controlled. The majority of our debt is owed to a related party at a fixed
interest rate so fluctuations in interest rates do not impact our result of operations at this time. However,
we may need to rely on bank financing or other debt instruments in the future in which case fluctuations
in interest rates could have a negative impact on our results of operations.
Forward Looking Statements and Factors That May Affect Future Results and Financial Condition
The statements contained in the section titled Managements Discussion and Analysis of Financial
Condition and Results of Operations and elsewhere in this annual report, with the exception of historical
facts, are forward looking statements. We are ineligible to rely on the safe-harbor provision of the Private
Litigation Reform Act of 1995 for forward looking statements made in this annual report. Forward-
looking statements reflect our current expectations and beliefs regarding our future results of operations,
performance, and achievements. These statements are subject to risks and uncertainties and are based
upon assumptions and beliefs that may or may not materialize. These statements include, but are not
limited to, statements concerning:
our financial performance;
the sufficiency of existing capital resources;
our ability to fund cash requirements for future operations;
uncertainties related to the growth of our business and the acceptance of our services;
our ability to achieve and maintain an adequate customer base to generate sufficient revenues to
maintain and expand operations;
the volatility of the stock market; and
general economic conditions.
We wish to caution readers that our operating results are subject to various risks and uncertainties that
could cause our actual results to differ materially from those discussed or anticipated including the factors
set forth in the section entitled Risk Factors included elsewhere in this report. We also wish to advise
readers not to place any undue reliance on the forward looking statements contained in this report, which
reflect our beliefs and expectations only as of the date of this report. We assume no obligation to update
or revise these forward-looking statements to reflect new events or circumstances or any changes in our
beliefs or expectations, other than is required by law.
18
Going Concern
Our auditors included an explanatory statement in their report on the Companys consolidated financial
statements for the transition periods ended December 31, 2011 and 2010 and the years ended June 30,
2011 and 2010, expressing an opinion as to our ability to continue as a going concern as a result of a
working capital deficit, negative cash flows, and accumulated net losses. Our ability to continue as a
going concern is subject to the ability of the Company to transition to net income in 2012 and obtaining
additional funding from outside sources. Managements plan to address the Companys ability to continue
as a going concern includes (i) increasing our gross profit; (ii) financing from private placement sources;
and (iii) converting outstanding debt to equity. Although the Company believes that it will be able to
remain a going concern, through the methods discussed above, there can be no assurances that such
methods will prove successful.
Recent Accounting Pronouncements
Please see Note 10 to our consolidated financial statements for recent accounting pronouncements.
ITEM 3.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK
Not required.
ITEM 4.
CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
In connection with the preparation of this report on Form 10-Q, an evaluation was carried out by the
Companys management, with the participation of the chief executive officer and the chief financial
officer, of the effectiveness of the Companys disclosure controls and procedures (as defined in Rules
13a-15(e) under the Securities Exchange Act of 1934 (Exchange Act)). Disclosure controls and
procedures are designed to ensure that information required to be disclosed in reports filed or submitted
under the Exchange Act is recorded, processed, summarized, and reported within the time periods
specified in the Commissions rules and forms and that such information is accumulated and
communicated to management, including the chief executive officer and chief financial officer, to allow
timely decisions regarding required disclosures.
Based on that evaluation, the Companys management concluded, as of the end of the period covered by
this report, that the Companys disclosure controls and procedures were not effective in recording,
processing, summarizing, and reporting information required to be disclosed, within the time periods
specified in the Commissions rules and forms, and that such information was not accumulated and
communicated to management, including the chief executive officer and chief financial officer, to allow
timely decisions regarding required disclosures.
Changes in Internal Control over Financial Reporting
There have been no changes in internal control over financial reporting (as defined in Rule 13a-15(f) of
the Exchange Act) during the period ended September 30, 2012, that materially affected, or are
reasonably likely to materially affect, the Companys internal control over financial reporting.
19
PART II OTHER INFORMATION
ITEM 1.
LEGAL PROCEEDINGS
None.
ITEM 1A.
RISK FACTORS
Our operations and securities are subject to a number of risks. Below we have identified and discussed the
material risks that we are likely to face. Should any of the following risks occur, they will adversely affect
our operations, business, financial condition and/or operating results as well as the future trading price
and/or the value of our securities.
Risk Factors Relating To Our Business
The Companys ability to continue as a going concern is in question
Our auditors included an explanatory statement in their report on our consolidated financial statements for
the six month transition periods ended December 31, 2011 and 2010 and the years ended June 30, 2011
and 2010, stating that there are certain factors which raise substantial doubt about the Companys ability
to continue as a going concern. These factors include a working capital deficit, negative cash flows, and
accumulated losses.
We depend on the recruitment and retention of qualified personnel, and our failure to attract and retain
such personnel could seriously harm our business.
Due to the specialized nature of our businesses, our future performance is highly dependent upon the
continued services of our key personnel and executive officers, the development of additional
management personnel, and the recruitment and retention of new qualified engineering, manufacturing,
marketing, sales, and management personnel for our operations. Competition for personnel is intense, and
we may not be successful in attracting or retaining qualified personnel. In addition, key personnel may be
required to receive security clearances and substantial training in order to work on government sponsored
programs or perform related tasks. The loss of key employees, our inability to attract new qualified
employees or adequately train employees, or the delay in hiring key personnel could impair our ability to
prepare bids for new projects, fill orders, or develop new products.
International and political events may adversely affect our operations.
To date our revenue is derived entirely from non-United States operations, which exposes us to risks
inherent in doing business in each of the countries in which we transact business. The occurrence of any
of the risks described below could have a material adverse effect on our results of operations and financial
condition. Operations in countries other than the United States are subject to various risks peculiar to each
country. With respect to any particular country, these risks may include:
20
expropriation and nationalization of our assets in that country;
political and economic instability;
civil unrest, acts of terrorism, force majeure, war, or other armed conflict;
natural disasters, including those related to earthquakes and flooding;
inflation;
currency fluctuations, devaluations, and conversion restrictions;
confiscatory taxation or other adverse tax policies;
governmental activities that limit or disrupt markets, restrict payments, or limit the movement of
funds;
governmental activities that may result in the deprivation of contract rights; and
governmental activities that may result in the inability to obtain or retain licenses required for
operation.
We are subject to significant foreign exchange and currency risks that could adversely affect our
operations and our ability to reinvest earnings from operations, and our ability to limit our foreign
exchange risk through hedging transactions may be limited.
A sizable portion of our consolidated revenue and consolidated operating expenses are in foreign
currencies. As a result, we are subject to significant risks, including:
foreign exchange risks resulting from changes in foreign exchange rates and the implementation
of exchange controls; and
limitations on our ability to reinvest earnings from operations in one country to fund the capital
needs of our operations in other countries.
Risks Relating to Our Common Stock
Our stock price is volatile.
The market price of our common stock is highly volatile and could fluctuate widely in price in response to
various factors, many of which are beyond our control, including the following:
services offered by us or our competitors;
additions or departures of key personnel;
our ability to execute its business plan;
operating results that fall below expectations;
loss of any strategic relationship;
industry developments;
economic and other external factors; and
period-to-period fluctuations in our financial results.
In addition, the securities markets have from time to time experienced significant price and volume
fluctuations that are unrelated to the operating performance of particular companies. These market
fluctuations may also materially and adversely affect the market price of our common stock.
21
We incur significant expenses as a result of the Sarbanes-Oxley Act of 2002, which expenses may
continue to negatively impact our financial performance.
We incur significant legal, accounting and other expenses as a result of the Sarbanes-Oxley Act of 2002,
as well as related rules implemented by the Commission, which control the corporate governance
practices of public companies. Compliance with these laws, rules and regulations, including compliance
with Section 404 of the Sarbanes-Oxley Act of 2002, as discussed in the following risk factor, has
increased our expenses, including legal and accounting costs, and made some activities more time-
consuming and costly.
FINRA sales practice requirements may limit a stockholders ability to buy and sell our stock.
The Financial Industry Regulatory Authority (FINRA) has adopted rules that relate to the application of
the Commissions penny stock rules in trading our securities and require that a broker/dealer have
reasonable grounds for believing that the investment is suitable for that customer, prior to recommending
the investment. Prior to recommending speculative, low priced securities to their non-institutional
customers, broker/dealers must make reasonable efforts to obtain information about the customers
financial status, tax status, investment objectives and other information. Under interpretations of these
rules, the FINRA believes that there is a high probability that speculative, low priced securities will not be
suitable for at least some customers. The FINRA requirements make it more difficult for broker/dealers to
recommend that their customers buy our common stock, which may have the effect of reducing the level
of trading activity and liquidity of our common stock. Further, many brokers charge higher transactional
fees for penny stock transactions. As a result, fewer broker/dealers may be willing to make a market in
our common stock, reducing a stockholders ability to resell shares of our common stock.
Our internal controls over financial reporting are not considered effective, which conclusion could result
in a loss of investor confidence in our financial reports and in turn have an adverse effect on our stock
price.
Pursuant to Section 404 of the Sarbanes-Oxley Act of 2002 we are required to furnish a report by our
management on our internal controls over financial reporting. Such report must contain, among other
matters, an assessment of the effectiveness of our internal controls over financial reporting as of the end
of the year, including a statement as to whether or not our internal controls over financial reporting are
effective. This assessment must include disclosure of any material weaknesses in our internal controls
over financial reporting identified by management. For the three month period ending September 30,
2012, we were unable to assert that our internal controls were effective. Accordingly, our shareholders
could lose confidence in the accuracy and completeness of our financial reports, which in turn could
cause our stock price to decline.
Our past and future capital funding needs have resulted in dilution to existing shareholders.
We have realized funding from Asher Enterprises, Inc. ("Asher"), in the form of convertible notes, which
has been converted into shares of our common stock. Additionally, we will need to realize capital funding
over the next year to further our business plan. We intend to raise this capital through equity offerings,
debt placements or joint ventures. Should we secure a commitment to provide us with capital, such
commitment may obligate us to issue shares of our common stock, warrants or create other rights to
acquire our common stock. The issuances to Asher and any new issuances of our common stock result in
a dilution of our existing shareholders interests.
22
Our common stock is currently deemed to be penny stock, which makes it more difficult for investors
to sell their shares.
Our common stock is and will be subject to the penny stock rules adopted under section 15(g) of the
Exchange Act. The penny stock rules apply to companies whose common stock is not listed on the
NASDAQ Stock Market or other national securities exchange and trades at less than $5.00 per share or
that have tangible net worth of less than $5,000,000 ($2,000,000 if the company has been operating for
three or more years). These rules require, among other things, that brokers who trade penny stock to
persons other than established customers complete certain documentation, make suitability inquiries of
investors and provide investors with certain information concerning trading in the security, including a
risk disclosure document and quote information under certain circumstances. Many brokers have decided
not to trade penny stocks because of the requirements of the penny stock rules and, as a result, the number
of broker-dealers willing to act as market makers in such securities is limited. If the Company remains
subject to the penny stock rules for any significant period, it could have an adverse effect on the market, if
any, for our securities. If our securities are subject to the penny stock rules, investors will find it more
difficult to dispose of the Companys securities.
The elimination of monetary liability against our directors, officers and employees under Nevada law and
the existence of indemnification rights for our directors, officers and employees may result in substantial
expenditures by the Company and may discourage lawsuits against our directors, officers and employees.
Our certificate of incorporation contains a specific provision that eliminates the liability of directors for
monetary damages to the Company and the Companys stockholders; further, the Company is prepared to
give such indemnification to its directors and officers to the extent provided by Nevada law. The
Company may also have contractual indemnification obligations under its employment agreements with
its executive officers. The foregoing indemnification obligations could result in the Company incurring
substantial expenditures to cover the cost of settlement or damage awards against directors and officers,
which the Company may be unable to recoup. These provisions and resultant costs may also discourage
the Company from bringing a lawsuit against directors and officers for breaches of their fiduciary duties
and may similarly discourage the filing of derivative litigation by the Companys stockholders against the
Companys directors and officers even though such actions, if successful, might otherwise benefit the
Company and its stockholders.
ITEM 2.
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
None.
ITEM 3.
DEFAULTS ON SENIOR SECURITIES
None.
ITEM 4.
MINE SAFETY DISCLOSURES
Not applicable.
ITEM 5.
OTHER INFORMATION
None.
23
ITEM 6.
Exhibits required to be attached by Item 601 of Regulation S-K are listed in the Index to Exhibits on page
26 of this Form 10-Q, and are incorporated herein by this reference.
24
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.
Infrastructure Developments Corp.
Date
/s/ Eric Montandon
November 19, 2012
By: Eric Montandon
Its: Chief Executive Officer, Chief Financial Officer,
Principal Accounting Officer and Director
25
INDEX TO EXHIBITS
Number
Description
3.1.1*
Articles of Incorporation filed with the Nevada Secretary of State on August 10, 2006. Incorporated by reference as
Exhibits to the Form SB-1 filed on May 11, 2007.
3.1.2*
Certificate of Amendment to the Articles of Incorporation filed with the Nevada Secretary of State on April 23,
2007. Incorporated by reference to the Companys Registration Statement on Form SB-1 filed with the Commission
on May 11, 2007.
3.1.3*
The Certificate of Amendment to the Companys Articles of Incorporation was filed with the Secretary of State of
the Nevada on March 1, 2010. Incorporated by reference to the Companys Definitive Information Statement on
Schedule 14C as filed with the Commission on February 2, 2010.
3.1.4*
The Certificate of Amendment to the Companys Articles of Incorporation was filed with the Secretary of State of
the Nevada on April 9, 2010. Incorporated by reference to the Companys current Report on Form 8-K as filed with
the Commission on April 14, 2010.
3.2*
Bylaws. Incorporated by reference to the Companys Registration Statement on Form SB-1 filed with the
Commission on May 11, 2007.
10.1*
Securities Purchase Agreement, dated July 1, 2008, between Interspec, Interspec LLC and Tom Morgan.
Incorporated by reference to our current Report on Form 8-K as filed with the Commission on April 26, 2010.
10.2*
Employment Agreement, dated August 1, 2008, between Interspec and Tom Morgan. Incorporated by reference to
the Companys current Report on Form 8-K as filed with the Commission on April 26, 2010.
10.3*
Share Exchange Agreement dated April 1, 2010, between the Company and Interspec. Incorporated by reference to
the Companys current Report on Form 8-K as filed with the Commission on April 8, 2010.
10.4*
Promissory Note with WWA Group, Inc., dated May 17, 2011. Incorporated by reference to the Companys Form
10-Q filed with the Commission on May 23, 2011.
10.5*
Security Purchase Agreement and Convertible Promissory Note with Asher Enterprises, Inc. Incorporated by
reference to the Companys Form 10-K filed with the Commission on October 7, 2011.
10.6*
Memorandum of Understanding and Addendum with Cleanfield Energy, Inc. Incorporated by reference to the
Companys Form 10-K filed with the Commission on October 7, 2011.
10.7*
Accord and Satisfaction with Thomas R. Morgan. Incorporated by reference to the Companys Form 10-Q filed with
the Commission on November 18, 2011.
10.8*
Share Exchange Agreement with InterMedia Development Corporation (dated January 11, 2012) entered into on
February 1, 2012. Incorporated by reference to the Companys Form 8-K filed with the Commission on February 13,
2012.
10.9*
Debt Settlement Agreement with Morningstar Corporate Communications (dated April 11, 2012). Incorporated by
reference to the Company's Form 10-Q filed with the Commission on May 15, 2012.
10.10
Debt Settlement Agreement with Cleanfield Communications (dated June 4, 2012). Incorporated by reference to the
Company's Form 10-Q filed with the Commission on August 20, 2012.
14*
Code of Ethics adopted October 6, 2011. Incorporated by reference to the Companys Form 10-K filed with the
Commission on October 7, 2011.
21*
Subsidiaries. Incorporated by reference to the Companys current Report on Form 8-K as filed with the Commission
on April 26, 2010.
Certification of the Chief Executive Officer pursuant to Rule 13a-14 of the Securities and Exchange Act of 1934, as
amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (attached).
Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906
of the Sarbanes-Oxley Act of 2002 (attached).
101. INS XBRL Instance Document
101. PRE XBRL Taxonomy Extension Presentation Linkbase
101. LAB XBRL Taxonomy Extension Label Linkbase
101. DEF XBRL Taxonomy Extension Label Linkbase
101. CAL XBRL Taxonomy Extension Label Linkbase
101. SCH XBRL Taxonomy Extension Schema
*
Incorporated by reference from previous filings of the Company.
Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed furnished and not filed or part of a
registration statement or prospectus for purposes of Section 11 or 12 of the Securities Act of 1933, or deemed furnished and
not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, and otherwise is not subject to liability under
these sections.
26