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EXCEL - IDEA: XBRL DOCUMENT - VRDT CorpFinancial_Report.xls
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
 

 
FORM 10-Q
 


[x]
QUARTERLY REPORT UNDER SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOR ENDED SEPTEMBER 30, 2012

[  ]
TRANSITION REPORT UNDER SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITIION PERIOD FROM                      TO                      
 
Commission File number: 000-52677
 
 
VRDT CORPORATION
(Exact name of registrant as specified in its charter)

Delaware
 
45-2405975
(State or other jurisdiction of incorporation)
 
(I.R.S. Employer Identification No.)

 
12223 Highland Avenue, Suite 106-542, Rancho Cucamonga, California  91739
(Address of principal executive offices)

(909) 786-1981
(Issuer’s telephone number)
 
Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 (the “Exchange Act”) during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes [x]   No [  ]
 
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [x] No [  ]
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.  (Check one):

Large accelerated filer
[  ]
Accelerated filer                      [  ]
 
Non-accelerated filer
[  ]
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 []   No [ x ]
 
 
1

 

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.      

Not applicable.
APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date.  

As of November 19, 2012 the Company has 126,610,141 shares of Class A Common Stock outstanding and no other classes of common stock.
 
 
2

 
 
TABLE OF CONTENTS
 
VRDT CORPORATION
(A DEVELOPMENT STAGE COMPANY)
 
Part I – Financial Information
    Page
Item 1
Financial Statements
4
     
 
Consolidated Balance Sheets as of September 30, 2012 and March 31, 2012
5
     
 
Consolidated Statements of Operations for the Three Months and Six Months Ended September 30, 2012, and 2011
6
     
 
Statement of Stockholder’s Equity for the Period from Inception through September 30, 2012
7
     
 
Consolidated Statements of Cash Flows for the Six Months Ended September 30, 2012, and 2011
9
     
 
Notes to the Financial Statements
11
     
Item 2
Management’s Discussion and Analysis of Financial Condition and Results of Operations
19
     
Item 3
Quantitative and Qualitative Disclosures about Market Risk
22
     
Item 4
Controls and Procedures
22
     
Part II – Other Information
     
Item 1
Legal Proceedings
24
     
 
Item 1A. Risk Factors
24
     
Item 2
Unregistered Sales Of Equity Securities And Use Of Proceeds
24
     
Item 3
Defaults Upon Senior Securities
24
     
Item 4
Mine Safety Disclosure
24
     
Item 5
Other Information
24
     
Item 6
Exhibits
24

 
3

 

 
PART I
 
ITEM 1.        FINANCIAL STATEMENTS
 
The Financial Statements of the Company required to be filed with this 10-Q Quarterly Report were prepared by management and commence below, together with related notes. In the opinion of management, the Financial Statements fairly present the financial condition of the Company.
 
 
4

 

VRDT Corporation
(A Development Stage Company)
Balance Sheet
 
   
September 30, 2012
   
March 31, 2012
 
         
(Audited)
 
ASSETS
           
             
CURRENT ASSETS:
           
             
Cash
  $ 7,317     $ 36,447  
Accounts Receivable
    20,710       0  
Inventory
    28,399       0  
Prepaid expenses
    7,477,572       5,403,921  
Note Receivable
    220,773       215,383  
                 
Total Current Assets
    7,754,771       5,655,751  
                 
PROPERTY AND EQUIPMENT, NET
    21,656       48,144  
                 
OTHER ASSETS
               
                 
Deposits
    6,270       6,270  
Long Term Warrant Expense
    5,204,863       0  
Intangibles
    194,944       0  
                 
Total Other Assets
    5,406,077       6,270  
                 
TOTAL ASSETS
  $ 13,182,504     $ 5,710,165  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY / (DEFICIT)                
                 
CURRENT LIABILITIES:
               
                 
Accounts payable and accrued expenses
  $ 2,422,823     $ 3,142,645  
Accounts payable and accrued expenses - Related party
    0       20,679  
Deposits from stockholders
    10,000       0  
Notes Payable
    95,000       95,000  
Notes Payable - Related parties
    463,552       942,759  
                 
Total Current Liabilities
    2,991,375       4,201,083  
                 
LONG TERM LIABILITIES:
               
                 
Notes Payable - Related parties
    555,458       0  
                 
Total Current Liabilities
    555,458       0  
                 
STOCKHOLERS' EQUITY / (DEFICIT)
         
                 
Common Stock, .001 par value: 989,999,995 shares authorized:  126,610,141 and 120,946,840 shares issued and outstanding as of September 30, 2012, and March 31, 2012, respectively
    126,610       120,947  
Additional paid-in capital
    27,059,483       19,607,273  
Deficit accumulated during the development stage
    (17,550,422 )     (18,219,138 )
                 
Total Stockholders' Equity / (Deficit)
    9,635,671       1,509,082  
                 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY / (DEFICIT)   $ 13,182,504     $ 5,710,165  
 
See the accompanying notes to the financial statements
 
 
5

 

VRDT Corporation
(A Development Stage Company)
Consolidated Statement of Operations
 
   
Three Months Ended
September 30,
   
Six Months Ended
September 30,
 
   
2012
   
2011
   
2012
   
2011
 
                         
Sales
    22,585       0       22,585       0  
Cost of sales
    (7,134 )     0       (7,134 )     0  
                                 
Gross profit
    15,451       0       15,451       0  
                                 
Operating Expenses
                               
                                 
Depreciation and amortization
    7,628       788       9,509       838  
General and administrative expenses
    (2,013,513 )     1,619,659       (943,872 )     2,269,512  
Impairment of goodwill
    0       0       0       3,833,722  
                                 
Total operating expenses
    (2,005,885 )     1,620,447       (934,363 )     6,104,072  
                                 
Income / (Loss) from Operations
    2,021,336       (1,620,447 )     949,814       (6,104,072 )
                                 
Other Income / (Expense)
                               
                                 
Interest Income
    2,710       0       5,390       0  
Interest (expense)
    (230,064 )     (4,195 )     (238,070 )     (8,549 )
Interest (expense) - Related parties
    (26,729 )     (2,474 )     (48,418 )     (6,745 )
                                 
Total Other Income / (Expense)
    (254,083 )     (6,669 )     (281,098 )     (15,294 )
                                 
Income / (Loss) before Income Taxes
    1,767,253       (1,627,116 )     668,716       (6,119,366 )
                                 
Provisions for Income Taxes
    0       0       0       0  
                                 
Net Income / (Loss)
    1,767,253       (1,627,116 )     668,716       (6,119,366 )
                                 
Net Income / (Loss) Per Share:
                               
Basic and Diluted
    0.01       (0.02 )     0.01       (0.12 )
                                 
Weighted Average Shares Outstanding
                               
Basic and Diluted
    125,915,267       73,112,717       125,402,097       49,186,046  

See the accompanying notes to the financial statements
 
 
6

 
 
VRDT Corporation
Statement of Stockholder's Equity
For the Period August 19, 1999 (Inception) to September 30, 2012
 
   
Common Stock
   
Additional
Paid-in
   
Accumulated
   
Total 
Stockholders'
 
   
Shares
   
Amount
    Capital     Deficit     Equity  
                               
Balance at inception, August 19, 1999
    0     $ 0     $ 0     $ 0     $ 0  
Issuance of common stock
    2,000       2       18               20  
Net loss
                            (84,021 )     (84,021 )
                                         
Balance at December 31, 1999
    2,000       2       18       (84,021 )     (84,001 )
Net loss
                            (230,879 )     (230,879 )
                                         
Balance at December 31, 2000
    2,000       2       18       (314,900 )     (314,880 )
Net loss
                            (494,816 )     (494,816 )
                                         
Balance at December 31, 2001
    2,000       2       18       (809,716 )     (809,696 )
Net loss
                            (384,590 )     (384,590 )
                                         
Balance at December 31, 2002
    2,000       2       18       (1,194,306 )     (1,194,286 )
Reclassification of debt to equity
    4,300       4       1,581,979       0       1,581,983  
Net loss
                            (736,364 )     (736,364 )
                                         
Balance at December 31, 2003
    6,300       6       1,581,997       (1,930,670 )     (348,667 )
Net loss
                            (205,994 )     (205,994 )
                                         
Balance at December 31, 2004
    6,300       6       1,581,997       (2,136,664 )     (554,661 )
Net loss
                            (1,592,469 )     (1,592,469 )
                                         
Balance at December 31, 2005
    6,300       6       1,581,997       (3,729,133 )     (2,147,130 )
Net loss
                            (1,376,529 )     (1,376,529 )
                                         
Balance at March 31, 2006
    6,300       6       1,581,997       (5,105,662 )     (3,523,659 )
Shares issued for services
    88,285       88       123,511               123,599  
Expenses paid by related party
                    515,000               515,000  
Stock issued as dividend
    2,636,564       2,637       (2,637 )             0  
Conversion of SKRM Interactive payable to equity
                    4,382,718               4,382,718  
Net loss
                            (1,810,502 )     (1,810,502 )
                                         
Balance at March 31, 2007
    2,731,149       2,731       6,600,589       (6,916,164 )     (312,844 )
Stock issued for debt
    669,577       670       1,673,250               1,673,920  
Net loss
                            (1,596,320 )     (1,596,320 )
                                         
Balance at March 31, 2008
    3,400,726       3,401       8,273,839       (8,512,484 )     (235,244 )
Net loss
                            (6,954 )     (6,954 )
                                         
Balance at March 31, 2009
    3,400,726       3,401       8,273,839       (8,519,438 )     (242,198 )
                                         
Conversion of Martin debt
    300,000       300       60,700               61,000  
Net loss
                            (73,636 )     (73,636 )
                                         
Balance at March 31, 2010
    3,700,726       3,701       8,334,539       (8,593,074 )     (254,834 )

See the accompanying notes to the financial statements
 
 
7

 
 
VRDT Corporation
Statement of Stockholder's Equity - continued
For the Period August 19, 1999 (Inception) to September 30, 2012
 
   
Common Stock
    Additional Paid-in     Accumulated     Total Stockholders'  
   
Shares
   
Amount
   
Capital
   
Deficit
   
Equity
 
                               
Stock-based compensation - Non-Emp
                79,500             79,500  
Net loss
                        (115,118 )     (115,118 )
                                     
Balance at March 31, 2011
    3,700,726       3,701       8,414,039       (8,708,192 )     (290,452 )
                                         
Treasury Stock - Redemption and cancellation
    (1,700,000 )     (1,700 )     (848,300 )             (850,000 )
Issuance of common stock
    46,021,000       46,021       5,242,780       0       5,288,800  
Shares issued for services
    14,015,500       14,016       1,442,405       0       1,456,420  
Restricted Stock - Employees & Directors
    53,650,000       53,650       5,311,350       0       5,365,000  
Exercised warrants
    259,614       260       0       0       260  
Conversion of debt to equity
    5,000,000       5,000       45,000       0       50,000  
Net (Loss) / Income
                            (9,510,946 )     (9,510,946 )
                                         
Balance at March 31, 2012
    120,946,840       120,947       19,607,273       (18,219,138 )     1,509,082  
                                         
Issuance of common stock
                                       
- 1st Quarter
    910,115       910       154,190               155,100  
- 2nd Quarter
    553,186       553       43,454               44,007  
                                         
Issuance of common stock
    1,463,301       1,463       197,644       0       199,107  
                                         
Shares issued for services
                                       
- 1st Quarter
    2,880,000       2,880       285,120               288,000  
- 2nd Quarter
    20,000       20       4,529               4,549  
                                         
Shares issued for services
    2,900,000       2,900       289,649       0       292,549  
                                         
Exercised warrants
                                       
- 1st Quarter
                                    0  
- 2nd Quarter
    300,000       300       2,700               3,000  
                                         
Exercised warrants
    300,000       300       2,700       0       3,000  
                                         
Investment in Subsidiary
                                       
- 1st Quarter
                                    0  
- 2nd Quarter
    1,000,000       1,000       199,000               200,000  
- 2nd Quarter -
                    (25,735 )             (25,735 )
                                         
Investment in Subsidiary
    1,000,000       1,000       173,265       0       174,265  
                                         
Issuance of GEM warrants
                    6,788,952               6,788,952  
                                         
Net profit/(loss)
                                       
- 1st Quarter
                            (1,098,537 )     (1,098,537 )
- 2nd Quarter
                            1,767,253       1,767,253  
                                         
Net (Loss) / Income
                            668,716       668,716  
                                         
Balance at September 30, 2012
    126,610,141       126,610       27,059,483       (17,550,422 )     9,635,671  
 
See the accompanying notes to the financial statements
 
 
8

 
 
VRDT Corporation
Consolidated Statement of Cash Flows
 
   
Six Months Ended
 
   
September 30,
 
   
2012
   
2011
 
CASH FLOWS FROM OPERATIONS:
           
             
Net Income / (Loss)
    668,716       (6,119,365 )
                 
Adjustments to reconcile net income / (loss) to net cash used in operating activities:
 
                 
Depreciation & Amortization
    9,509       838  
Impairment of Goodwill
    0       3,833,722  
Interest expense - amortization of warrants
    226,298       0  
Issurance of warrants for services
    3,000       0  
Common stock issued for services
    292,549       537,800  
Assumption of liabilities over value of assets
    (25,735 )     (833,722 )
Changes in Assets & Liabilities:
               
Decrease / (Increase) in accounts receivable
    (20,710 )     0  
Decrease / (Increase) in inventory
    (28,399 )     0  
Decrease / (Increase) in prepaid expenses
    (715,861 )     (153,680 )
Decrease / (Increase) in note receivable
    (5,390 )     0  
(Decrease) / Increase in accounts payable and accrued expenses
    (719,821 )     1,617,767  
(Decrease) / Increase in shareholder deposits
    10,000       0  
(Decrease) / Increase in interest payable to stockholder
    (20,679 )     6,745  
(Decrease) / Increase in notes payable related party - current
    76,251       0  
Net cash provided / (used) by operating activities
    (250,272 )     (1,109,896 )
                 
CASH FLOWS FROM INVESTING:
               
                 
Purchase of property plant and equip
    22,535       (9,459 )
Intangibles
    (500 )     0  
Net cash used in investing activities
    22,035       (9,459 )
                 
CASH FLOWS FROM FINANCING:
               
                 
Net proceeds from notes payable - other
    0       145,000  
Proceeds from inssuance of common stock
    199,107       1,033,050  
Net cash from financing activities
    199,107       1,178,050  
                 
Net Increase / (Decrease) in cash
    (29,130 )     58,695  
                 
CASH AT BEGINNING OF PERIOD
    36,447       101  
                 
CASH AT END OF PERIOD
    7,317       58,796  
 
See the accompanying notes to the financial statements
 
 
9

 
 
VRDT Corporation
Consolidated Statement of Cash Flows - Continued
 
 
   
Six Months Ended
 
   
September 30,
 
   
2012
   
2011
 
SUPPLEMENTAL CASH FLOW INFORMATION:
           
             
Common stock issued for services
  $ 292,549     $ -  
Common stock issued for investment in subsidiary
  $ 200,000     $ -  
Warrants issued to acquire line of credit
  $ 6,788,952     $ -  
Decrease in accrued salaries
  $ 2,433,496     $ -  
 
See the accompanying notes to the financial statements
 
 
10

 
NOTES TO FINANCIAL STATEMENTS
 
NOTE 1.                      BASIS OF PRESENTATION AND RECENT ACCOUNTING PRONOUNCEMENTS
 
The accompanying unaudited financial statements of VRDT Corporation (the “Company”) have been prepared in accordance with generally accepted accounting principles for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. The results of operations for the interim period ended September 30, 2012 shown in this report are not necessarily indicative of results to be expected for the full fiscal year ending March 31, 2013. In the opinion of the Company’s management, the information contained herein reflects all adjustments necessary for a fair presentation of the Company’s results of operations, financial position and cash flows. The Company has reclassified certain amounts previously reported in our financial statements to conform to the current presentation. The unaudited interim financial statements should be read in conjunction with the audited financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2012, and Management’s Discussion and Analysis of Financial Condition and Results of Operations.
 
The consolidated financial statements include by full consolidation all domestic and foreign entities controlled by the Company (i.e., all subsidiaries).  The following list includes all entities controlled by the Company:
 
Verdant Industries, Inc., a Delaware corporation;
Verdant Ecosystem, Inc, a Delaware corporation;
Verdant (Hong Kong) Ltd.; a Hong Kong corporation; and
Verdant (China) Ltd., a People’s Republic of China corporation;
24Tech Corporation, Inc., a California corporation. (acquired September 1, 2012 – results included effective September 1, 2012)
All material intercompany transactions have been eliminated.
 
NOTE 2.                      REVENUE RECOGNITION
 
The Company recognizes revenue in accordance with the Securities and Exchange Commission Staff Accounting Bulletin (SAB) number 104, which states that revenues are generally recognized when it is realized and earned.  Specifically, the Company recognizes revenue when services are performed and projects are completed and accepted by the customer.  Revenues are earned from the sale of electric vehicles and other related technologies and services, and the sale of computer hardware and software and other related technologies and services.
 
The Company recognizes revenue when it is realized or realizable and earned.  The Company considers revenue realized or realizable and earned when all of the following criteria are met:
 
 
o
persuasive evidence of an arrangement exists,
 
o
the product has been shipped or the services have been rendered to the customer,
 
o
the sales price is fixed or determinable, and
 
o
collectability is reasonably assured.
 
Generally, services are provided to listed clients that have contracted with the Company.  Certain service calls billed on an hourly basis when the service call is completed and the client acknowledges the problem has been solved.  Sales and installation of equipment are billed when the equipment has been installed and accepted by the client.
 
 
11

 
NOTES TO FINANCIAL STATEMENTS
 
NOTE 3.                      RECENTLY ENACTED ACCOUNTING PRONOUNCEMENTS
 
We have reviewed the FASB issued Accounting Standards Update (“ASU”) accounting pronouncements and interpretations thereof that have effectiveness dates during the periods reported and in future periods. The Company has carefully considered the new pronouncements that alter previous generally accepted accounting principles and does not believe that any new or modified principles will have a material impact on the corporation’s reported financial position or operations in the near term.  The applicability of any standard is subject to the formal review of our financial management and certain standards are under consideration.  Reference is made to these recent accounting pronouncements as if they are set forth therein in their entirety.
 
NOTE 4.                      RECLASSIFICATIONS
 
Certain prior year amounts have been reclassified to conform to the current year presentation.
 
NOTE 5.                      GOING CONCERN
 
The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.  The Company realized profits of $668,716, for the six months ended September 30, 2012 and sustained losses of $9,510,946 for the year ended March 31, 2012. The Company had an accumulated deficit of $17,550,422 at September 30, 2012.  These factors raise substantial doubt about the ability of the Company to continue as a going concern for a reasonable period of time.  The Company is highly dependent on its ability to continue to obtain investment capital and loans from an affiliate and shareholder in order to fund the current and planned operating levels.  The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.  The Company’s continuation as a going concern is dependent upon its ability to bring in income generating activities and its ability to continue receiving investment capital to sustain its current level of operations.   No assurance can be given that the Company will be successful in these efforts.
 
Management intends to raise additional operating funds through equity and/or debt offerings.  However, there can be no assurance management will be successful in its endeavors.  Ultimately, the Company will need to achieve profitable operations in order to continue as a going concern.
 
There are no assurances that the Company will be able to either (1) achieve a level of revenues adequate to generate sufficient cash flow from operations; or (2) obtain additional financing through either private placement, public offerings and/or bank financing necessary to support its working capital requirements.  To the extent that funds generated from operations and any private placements, public offerings and/or bank financing are insufficient, the Company will have to raise additional working capital.  No assurance can be given that additional financing will be available, or if available, will be on terms acceptable to the Company.  If adequate working capital is not available, the Company may be required to curtail its operations. 
 
NOTE 6.                      GOODWILL
 
Goodwill represents the excess of the cost of the amount paid over the acquired assets over the fair value of their net assets at the dates of acquisitions, plus the assumption of certain liabilities. Under ASC 350, Goodwill and Other Intangible Assets, the Company is required to annually assess the carrying value of goodwill to determine if impairment in value has occurred.
 
 
12

 
NOTES TO FINANCIAL STATEMENTS
 
The Company determined that its Goodwill was impaired and recorded an impairment charge of $3,833,722 for the three months ended June 30, 2011.
 
NOTE 7.                      INTANGIBLES
 
The Company acquired 24Tech on September 1, 2012, for 1,000,000 shares of VRDT stock valued at $200,000. This consideration was classified as Intangibles associated with 24Tech’s client list. This Intangible will be amortized over 36 months.
 
 
13

 
NOTES TO FINANCIAL STATEMENTS
 
NOTE 8.                      NOTES PAYABLE-RELATED PARTIES
 
The Company’s related party notes payable consist of the following:
 
   
September 30, 2012
   
March 31, 2012
 
             
Note payable, 14% interest, principal and interest due montly commencing January 1, 2014, and due April 15, 2017.
  $ 17,153     $ 0  
                 
Note payable, 12% interest, principal and interest due monthly commencing January 1, 2013, and due June 1, 2014. (1)
  $ 170,486     $ 142,759  
                 
Note payable, 12% interest, principal and interest due monthly commencing January 1, 2013, and due June 1, 2014. Interst payment due 8/31/2012 of 10% of funds raised between date of extension and 8/31/2012 up to $10,000.
    831,370       800,000  
                 
    $ 1,019,009     $ 942,759  
                 
Current portion of notes payable
  $ 463,552          
                 
Non current portion of notes payable
  $ 555,457          
 
(1)                 This note is convertible into 881,744 shares of common stock for its cancellation and the conversion price is based on the 10-day volume-weighted average price (“VWAP”) of the Company’s common stock or $0.16, whichever is less.  The accrued interest shall be converted at the same rate.
 
 
 
The Company failed to make the interest payment due August 31, 2012.
 
 
14

 
NOTES TO FINANCIAL STATEMENTS
 
NOTE 9.                      NOTES PAYABLE
 
The Company’s notes payable consists of the following:
 
   
September 30, 2012
   
March 31, 2012
 
             
Notes payable, 15% interest, principle and interest due April 19, 2012
  $ 45,000     $ 45,000  
                 
Note payable, 10% interest, principle and interest due March 18, 2012
    50,000       50,000  
    $ 95,000     $ 95,000  
 
 
 
Each of two (2) unsecured convertible promissory notes identified in this Note 9 are convertible to common stock of the Company at one-tenth of one percent of the Company’s initial private placement offering, which, in this case, was $0.10 per share.  As such, the notes are convertible to common stock of the Company at $0.01 per share.  The $45,000 note bears interest at 15% per annum and the $50,000 note bears interest at 10% per annum.   The notes are scheduled to be converted on or before April 12, 2013 and March 18, 2013, respectively.
 
NOTE 10.                    INCOME TAXES
 
The application of income tax law is inherently complex. Laws and regulation in this area are voluminous and are often ambiguous. As such, the Company is required to make many subjective assumptions and judgments regarding the income tax exposures. Because interpretations of, and guidance surrounding, income tax laws and regulations change over time, changes in the subjective assumptions and judgments can materially affect amounts recognized in the balance sheets and statements of income.
 
The Company uses the liability method to account for income tax expense. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse.  Valuation allowances are established for deferred tax assets if, after assessment of available positive and negative evidence, it is more likely than not that the deferred tax asset will not be fully realized.
 
Due to various changes in ownership over the years, management does not believe that any significant net operating losses from prior years will be recognized.  The current year losses should have created federal tax benefits for net operating losses and various deferrals in the amount of approximately $3,200,000.  A valuation allowance in an equal amount has been recognized for the year ended March 31, 2012.
 
The Company is currently open to audit under the statute of limitations by the Internal Revenue Service for the years ending March 31, 2009 through 2012. The Company state income tax returns are open to audit under the statute of limitations for the years ending March 31, 2009 through 2012.
 
 The Company recognizes interest and penalties related to income taxes in income tax expense. The Company knew of no incurred penalties and interest for the three months ended September 30, 2012.
 
 
15

 
NOTES TO FINANCIAL STATEMENTS
 
NOTE 11.                    PREPAID EXPENSES
 
The Company issued certain restricted stock to various officers and key persons to assist with a registration statement.   The value of the stock issued has been recorded as a prepaid expense until such time as the shares have been earned.  The items identified as prepaid expenses are current as Registrant anticipates filing an S-8 registration statement immediately upon the effectiveness of a S-1 registration statement registering many of the outstanding shares of currently restricted common stock.  Registrant anticipates that any S-1 registration statement will be effective within four (4) months of the filing date thereof. Registrant anticipates that it should shortly be in a position to file “Form 10-type” information to effectively cure its status as a “shell” company, at which time the Company   shall proceed to file its anticipated S-1 registration statement.  Upon the effectiveness of the S-1 registration statement, the Company shall file an S-8 registration statement registering the amount of shares identified herein as prepaid expenses according to the vesting schedules of the restricted stock agreements pursuant to which the restricted common stock identified as prepaid expenses have been issued.  The Registrant therefore expects that the prepaid expenses shall vest within one (1) year of the date hereof and are therefore properly categorized as current prepaid expenses. The value of the restricted stock recorded as prepaid expense is $5,365,000.
 
During the three months ended September 30, 2012, the Company issued 12,000,000 warrants to GEM in consideration for a line of credit of up to $30 million. These warrants were valued at $6,788,952, using Black-Scholes option pricing model. These warrants will be expensed over the five year life of the warrants. The portion of the warrants to be expensed in the twelve month period, $1,357,790, was recorded as a prepaid expense. That portion of the warrant expense to be realized over periods after the next twelve months, $5,204,863, as of September 30, 2012, was recorded as Long TermWarrant Expense.
 
On October 1, 2012, the Board of Directors retroactively reduced the salaries of all employees to the California minimum for exempt employees, currently $16 per hour, to the employees’ date of hire. Advances made to employees were reclassified from a contra to Deferred Salaries to Employee Advances. Any advance which had been reported for tax purposes were written off. A repayment plan will be negotiated with each employee. Repayment can be made through a formal note with the Company, deductions from future salaries and bonuses, or through Company repurchase of employee stock. If the employee so elects, the Employee Advance will be written off and the employee will accept the tax consequences in the then-current tax year. The amount reclassified as Employee Advances was $698,782.
 
The balances of Prepaid Expenses for September 30, 2012and March 31, 2012 has been summarized below:
 
             
   
Balance As Of
 
   
September 30, 2012
   
March 31, 2012
 
             
Insurance
    42,049       32,071  
Employee Advances
    698,782       0  
Current Portion Warrant Expense
    1,357,790       0  
Deferred Employee Restricted Stock Grants
    4,765,000       4,765,000  
Deferred Directors' Fees
    600,000       600,000  
Other Prepaid Items
    13,951       6,850  
                 
Total Prepaid Expense
    7,477,572       5,403,921  
                 
 
NOTE 12.                    RELATED PARTY TRANSACTIONS
 
The Company has, from time to time, contracted with 24Tech Corporation for the latter to perform information technology services for the Company.  Larry Pendleton, the Company’s Chief Information Officer, is a principal of 24Tech Corporation.  The board of directors of the Company is fully aware of Mr. Pendleton’s interest in 24Tech Corporation and has deemed the terms of the Company’s contractual relationship with 24Tech Corporation to be fair and reasonable and in the best interests of the Company. During the three months ended June 30, 2012, The Company purchased $3,686 of services from 24Tech. The amount due to 24Tech as of June 30, 2012, was $4,549, compared to $854 at March 31, 2012.
 
During the three months ended September 30, 2012, the Company acquired 24Tech for 1,000,000 shares of VRDT stock, with acquisition value set at $200,000.
 
NOTE 13.                      SUBSEQUENT EVENTS
 
The Company has evaluated its activities, pursuant to ASC 855, and has determined that there are no additional reportable subsequent events.
 
 
16

 
NOTES TO FINANCIAL STATEMENTS
 
NOTE 14.                    STOCKHOLDERS’ EQUITY
 
Common Stock
 
The Company has authorized 989,999,995 shares of common stock, of which 126,610,141 shares of Class A Common Stock have been issued and are outstanding as of November 15, 2012.   As of November 15, 2012, the Company has no other classes of common stock authorized, issued or outstanding.
 
Preferred Stock
 
The Company is authorized to issue up to ten million five (10,000,005) shares of preferred stock with a par value of One Thousandths of One Cent ($0.001).  As of November 15, 2012, the Company has no series of preferred stock designated and no shares of preferred stock issued or outstanding.
 
Warrants
 
During the quarter ended September 30, 2012, the Company issued 12,000,000 new warrants to GEM.
 
On August 2, 2012, the Company granted 12,000,000 warrants to GEM in consideration for a credit line of up to $30 million. The warrants were valued at $0.566 per warrant or $6,788,952  using a Black-Scholes option-pricing model with the following assumptions:
 
Stock Price
  $ 0.60  
Expected Term (Years)
    3  
Expected Volatility
    228 %
Dividend Yield
    0  
Risk Free Interest Rate
    0.31 %
Strike Price   $ 0.85  
 
The expected term equals three years of the five year contractual term for this non-employee grant. The volatility is based on comparable volatility of other companies since the Company was not yet trading and had no historical volatility.
 
   
Number of Warrants
   
Weighted Average Exercise Price
   
Weighted Average Remaining Contractual Terms
   
Aggregate Intrinsic Value
 
                         
Granted
    12,000,000                    
Exercised
                         
Exchanged for Shares
    0                    
Expired
    0                    
                           
Outstanding at September 30, 2012
    12,000,000     $ 0.85       4.83       (3,000,000 )
                                 
Exercisable at September 30, 2012
    12,000,000     $ 0.85       4.83       (3,000,000 )
Weighted Average Grant Date Fair Value
          $ 0.566                  
 
 
17

 
NOTES TO FINANCIAL STATEMENTS
 
During the quarter ended June 30, 2011, and prior to the acquisition of Verdant Industries, Inc., Verdant Industries, Inc. issued 600,000 warrants, having a de minimus value, to two (2) members of its advisory board. The warrants were assumed by the Company during the acquisition of the assets and liabilities of Verdant Industries, Inc. The warrants are convertible to common stock of the Company at a strike price of $0.01 per share and, as of the date of this Report, 300,000 of said warrants have been exercised by one (1) holder as set forth in Note 13 herein.
 
Prior to the acquisition of Verdant Industries, Inc., for the year ending March 31, 2011, the Company granted warrants to non-employee individuals and entities as follows:
 
On February 18, 2011, the Company granted 500,000 warrants to five non-employees. The warrants were valued at $0.159 per warrant or $79,500 using a Black-Scholes option-pricing model with the following assumptions:
 
Stock Price
  $ 0.16  
Expected Term (Years)
    5  
Expected Volatility
    252.35 %
Dividend Yield
    0  
Risk Free Interest Rate
    1.125 %
 
The expected term equals the contractual terms for this non-employee grant. The volatility is based on comparable volatility of other companies since the Company was not yet trading and had no historical volatility.
 
 
18

 
NOTES TO FINANCIAL STATEMENTS
 
   
Number of Warrants
   
Weighted Average Exercise Price
   
Weighted Average Remaining Contractual Terms
   
Aggregate Intrinsic Value
 
                         
Outstanding at March 31, 2010
                       
Granted
    500,000     $ 0.16              
Exercised
                           
Exchanged for Shares
                           
Expired
                           
                             
Outstanding at March 31, 2011
    500,000     $ 0.16       4.87       70,000  
                                 
Granted
    0                          
Exercised
                               
Exchanged for Shares
    (300,000 )   $ 0.16                  
Expired
    0                          
                                 
Outstanding at March 31, 2012
    200,000     $ 0.16       3.87       28,000  
                                 
Granted
    0                          
Exercised
                               
Exchanged for Shares
    0                          
Expired
    0                          
                                 
Outstanding at September 30, 2012
    200,000     $ 0.16       3.42       26,000  
                                 
Exercisable at September 30, 2012
    200,000     $ 0.16       3.42       26,000  
Weighted Average Grant Date Fair Value
    $ 0.16                  
 
 
ITEM 2.        MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
 
Forward-looking Statements

Statements made in this Quarterly Report which are not purely historical are forward-looking statements with respect to the goals, plan objectives, intentions, expectations, financial condition, results of operations, future performance and our business, including, without limitation, (i) our ability to raise capital, and (ii) statements preceded by, followed by or that include the words “may,” “would,” “could,” “should,” “expects,” “projects,” “anticipates,” “believes,” “estimates,” “plans,” “intends,” “targets” or similar expressions.

Forward-looking statements involve inherent risks and uncertainties, and important factors (many of which are beyond our control) that could cause actual results to differ materially from those set forth in the forward-looking statements, including the following, general economic or industry conditions, nationally and/or in the communities in which we may conduct business, changes in the interest rate environment, legislation or regulatory requirements, conditions of the securities markets, our ability to raise capital, changes in accounting principles, policies or guidelines, financial or political instability, acts of war or terrorism, other economic, competitive, governmental, regulatory and technical factors affecting our current or potential business and related matters.
 
 
19

 

Accordingly, results actually achieved may differ materially from expected results in these statements.  Forward-looking statements speak only as of the date they are made. The Company does not undertake, and specifically disclaim, any obligation to update any forward-looking statements to reflect events or circumstances occurring after the date of such statements.
 
Results of Operations for the Three Months Ended September 30, 2012 as Compared to the Three Months Ended September 30, 2011.
 
Overview
 
Total revenues changed to $22,585 for the three months ended September 30, 2012, from $0 for the three months ended September 30, 2011. The revenue for the three months ended September 30, 2012, were from computer services and parts by the Company’s newly acquired subsidiary 24Tech and from sales of battery systems.
 
Cost of goods increased to $7,134 for the three months ended September 30, 2012, from $0 for the three months ended September 30, 2011. The cost of goods sold for the three months ended September 30, 2012, were associated with computer services and parts by the Company’s newly acquired subsidiary 24Tech and from sales of battery systems.
 
Gross profit increased to $15,451 for the three months ended September 30, 2012, from $0 for the three months ended September 30, 2011. Gross margin increased to 68% for the three months ended September 30, 2012, from 0% for the three months ended September 30, 2011.
 
Total operating expenses decreased to $(2,005,885) for the three months ended September 30, 2012 from $1,620,447  for the three months ended September 30, 2011. This decrease was primarily attributable to a salary action taken by the Board of Directors during the three months ended September 30, 2012.
 
Net profit for the three months ended September 30,2012, was $1,767,253, from a net loss for the three months ended September 30, 2011 of $1,627,116. The increase in profitability was associated with the salary action taken by the Board of Directors.
 
Salary Action
 
At a Board Meeting dated October 1, 2012, the Board of Directors retroactively reduced the salaries of all employees to the California minimum for exempt employees, currently $16 per hour, to the employees’ date of hire. Advances made to employees were reclassified from a contra to Deferred Salaries to Employee Advances. Any advance which had been reported for tax purposes were written off. A repayment plan will be negotiated with each employee. Repayment can be made through a formal note with the Company, deductions from future salaries and bonuses, or through Company repurchase of employee stock. If the employee so elects, the Employee Advance will be written off and the employee will accept the tax consequences in the then-current tax year. All accrued salaries at the new rate will be accrued until such time as the Board of Directors determines that the Company is adequately funded. At such time, all deferred accrued salaries will be paid and new salaries will be established by the Compensation Committee of the Board of Directors following the recommendations of management.
 
The net impact of this salary action resulted in a reduction in accrued Salaries and Payroll Taxes of $2,433,496.
 
 
20

 
 
The resulting balances of Accrued Salaries and Employee Advances due to this salary action are reflected in the following table.
 
     
Employee
         
Accrued
 
     
Advances
         
Salaries
 
     
as of
   
Annual
   
as of
 
     
9/30/2012
   
Salary
   
9/30/2012
 
                     
Steve Aust
President
  $ 134,000     $ 33,280     $ 56,960  
Bryon Bliss
Secretary, Chief of Staff and Executive Vice President
    95,250       33,280       43,264  
David Edgar
Chief Technology Officer
    37,000       33,280       56,960  
Dan Elliott
Chief Production Officer
    148,300       33,280       56,960  
Dennis Hogan
Chief Financial Officer
    0       33,280       52,992  
Robert Kasprzak
Chief Legal Officer
    39,698       33,280       50,048  
Dan Malstrom
Chief Marketing Officer
    53,000       33,280       54,272  
Larry Pendleton
Chief Information Officer
    4,000       33,280       17,280  
Total All Officers
      511,248       266,240       388,736  
All Other Employees
      187,534       332,800       363,904  
Total Employees
    $ 698,782     $ 599,040     $ 752,640  

 
 
Liquidity and Capital Resources
 
As of September 30, 2012, the Company had cash of $7,317 and working capital of $4,763,396. Net profit was $1,767,253 for the three months ended September 30, 2012. The Company generated a negative cash flow from operations of $70,702 for three months ended September 30, 2012. The negative cash flow from operating activities for the period is primarily attributable to the Company’s general operating expense.  During the three months ended September 30, 2012, the Company reclassed $24,639 in property, plant and equipment to inventory. During the quarter ended September 30, 2012, the Company raised $44,007 from a private placement it made by selling shares of its common stock.
 
Results of Operations for the Six Months Ended September 30, 2012 as Compared to the Six Months Ended September 30, 2011.
 
Overview
 
Total revenues changed to $22,585 for the six months ended September 30, 2012, from $0 for the six months ended September 30, 2011. The revenue for the six months ended September 30, 2012, were from computer services and parts by the Company’s newly acquired subsidiary 24Tech and from sales of battery systems.
 
Cost of goods increased to $7,134 for the six months ended September 30, 2012, from $0 for the six months ended September 30, 2011. The cost of goods sold for the six months ended September 30, 2012, were associated with computer services and parts by the Company’s newly acquired subsidiary 24Tech and from sales of battery systems.
 
 
21

 
 
Gross profit increased to $15,451 for the six months ended September 30, 2012, from $0 for the six months ended September 30, 2011. Gross margin increased to 68% for the six months ended September 30, 2012, from 0% for the six months ended September 30, 2011.
 
Total operating expenses decreased to $(934,363) for the six months ended September 30, 2012 from $6,104,072 for the six months ended September 30, 2011. This decrease was primarily attributable to the $3,833,722 write-off of Goodwill for the six months ended September 30, 2011 and the salary action taken in the six months ended September 30, 2012.
 
Net profit for the six months ended September 30, 2012, was $668,716, compared to a net loss of $6,119,366 for the six months ended September 30, 2011.
 
Liquidity and Capital Resources
 
As of September 30, 2012, the Company had cash of $7,317 and working capital of $4,763,396. Net profit was $663,160 for the six months ended September 30, 2012. The Company generated a negative cash flow from operations of $76,251 for six months ended September 30, 2012. The negative cash flow from operating activities for the period is primarily attributable to the Company’s increase in accrued salaries and consulting fees.  During the six months ended September 30, 2012, the Company invested $2,104 in property, plant and equipment and reclassed $24,639 in property, plant and equipment to inventory. During the six months ended September 30, 2012, the Company raised $199,107 from a private placement it made by selling shares of its common stock.
 
Going Concern
 
The accompanying unaudited financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.  The Company realized income of $22,585 and profit of $668,716 for the six months ended September 30, 2012 compared to income of $0 and losses of $6,119,366 for the six months ended September 30, 2011.  The Company had an accumulated deficit of $17,550,422 at September 30, 2012.  The accompanying unaudited financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the
 
These factors raise substantial doubt about the ability of the Company to continue as a going concern for a reasonable period of time.  The Company is highly dependent on its ability to continue to obtain investment capital in order to fund the current and planned operating levels.  The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company’s continuation as a going concern is dependent upon its ability to bring in income generating activities and its ability to continue receiving investment capital to sustain its current level of operations.  No assurance can be given that the Company will be successful in these efforts.
 
ITEM 3.        QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
 
As the Company is a “smaller reporting company,” this item is inapplicable.
 
ITEM 4.        CONTROLS AND PROCEDURES
 
Evaluation of Disclosure Controls and Procedures
 
The Company’s Chief Executive Officer and Chief Financial Officer have evaluated the effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a-15I and 15d-15(e) under the Exchange Act) as of the quarter ending September 30, 2012 covered by this Form 10-Q. Based upon such evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, the Company’s disclosure controls and procedures were not effective as required under Rules 13a-15(e) and 15d-15(e) under the Exchange Act.
 
 
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Management’s Report on Internal Control Over Financial Reporting
 
Management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) of the Company. Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America.
 
The Company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States of America, and that receipts and expenditures of the Company are being made only in accordance with authorizations of its management and directors; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements.
 
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
 
Management is still in the process of evaluating its internal controls over financial reporting, based on the framework in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this ongoing evaluation, management has concluded that the Company’s internal control over financial reporting were not effective as of September 30, 2012 under the criteria set forth in the Internal Control—Integrated Framework.  The determination was made partially due to the small size of the company and a lack of segregation of duties.
 
Changes in Internal Control over Financial Reporting
 
Except as set forth above, there were no changes in our internal control over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
 
Limitations on the Effectiveness of Controls
 
The Company’s management, including the CEO and CFO, does not expect that our disclosure controls and procedures or our internal control over financial reporting will prevent or detect all error and all fraud.  A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system’s objectives will be met.  Further, the design of the control system must reflect that there are resource constraints and that the benefits must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the company have been detected.  These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake.  Controls can also be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of controls.  The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.  Projections of any evaluation of controls effectiveness to future periods are subject to risks.  Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies or procedures. 
 
 
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PART II- OTHER INFORMATION
 
ITEM 1.          LEGAL PROCEEDINGS
 
None.
 
ITEM 1A.       RISK FACTORS
 
As the Company is a “smaller reporting company,” this item is inapplicable.  Nonetheless, there are no material changes from the risk factors previously disclosed in the Registrant’s Form 10-K for the year ending March 31, 2012.
 
ITEM 2.          UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
 
During the quarter ended September 30, 2012, the Company issued 350,386 shares of restricted common stock through a private placement, pursuant to the exemption from registration provided by Section 4(2) of the Securities Act and Rule 506 promulgated thereunder, at a valuation of $0.01 per share for a total consideration of $3,507, and 202,500 shares of restricted common stock through a private placement, pursuant to the exemption from registration provided by Section 4(2) of the Securities Act and Rule 506 promulgated thereunder, at a valuation of $0.20 per share for a total consideration of $40,500.  During the quarter ended September 30, 2012, the Company issued 20,000 shares of restricted common stock to various consultants for services, pursuant to the exemption from the registration requirements of Section 5 of the Securities Act provided by Section 4(2) of the Securities Act and Rule 506 of Regulation D promulgated thereunder, at a valuation of $0.2275 per share for a total consideration of $4,529.  During the quarter ended September 30, 2012, the Company issued 1,000,000 shares of restricted common stock through a private placement, pursuant to the exemption from registration provided by Section 4(2) of the Securities Act and Rule 506 promulgated thereunder, at a valuation of $0.20 per share for a total consideration of $200,000 for the acquisition of 24Tech. The monies raised through the above-referenced private placement were used for general operating expenses.
 
 
ITEM 3.          DEFAULTS UPON SENIOR SECURITIES.
 
None.
 
ITEM 4.          MINE SAFETY DISCLOSURES
 
None.
 

 
ITEM 5.          OTHER INFORMATION
 
None.
 
 
ITEM 6.  
EXHIBITS
Number
Description
   
31.1 (2)
Certification of Chief Executive Officer of the Company as required by Rule 13a-14(1) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2 (2)
Certification of Chief Financial Officer of the Company as required by Rule 13a-14(1) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1 (2)
Certification of Chief Executive Officer of the Company pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and Section 1350 Of 18 U.S.C. 63
32.2 (2)
Certification of Chief Financial Officer of the Company pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and Section 1350 Of 18 U.S.C. 63
101.INS* XBRL Instance
101.SCH* XBRL Taxonomy Extension Schema
101.CAL* XBRL Taxonomy Extension Calculation
101.DEF* XBRL Taxonomy Extension Definition
101.LAB* XBRL Taxonomy Extension Labels
101.PRE* XBRL Taxonomy Extension Presentation
* XBRL information is furnished and not filed or a part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.
 
 
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SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this report has been signed below by the following persons on behalf of the Company and in the capacities and on the date indicated.
 
 

 
         
VRDT CORPORATION
   
  
     
Date: November 19, 2012
By:  
/s/ Graham Norton-Standen
   
Graham Norton-Standen
   
Executive Chairman
     
Date: November 19, 2012
By:  
/s/ Dennis Hogan
   
Dennis Hogan
   
Chief Financial Officer
 

 
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